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isoplexis-amendedpostxip

Execution Version   1  4814-9458-5556  7027014  WARRANT CERTIFICATE  THIS WARRANT CERTIFICATE AND THE SECURITIES ISSUABLE UPON EXERCISE OF  THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED  UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED  FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR  ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS  EFFECTIVE UNDER THE SECURITIES ACT AND IS QUALIFIED UNDER APPLICABLE  STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE  REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE  SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE  STATE AND FOREIGN LAW.  Warrant Shares Issuable: 811,374 Shares of Common Stock  Warrant Certificate No.: 2  Issue Date: December 30, 2020 (the “Issue Date”)  FOR VALUE RECEIVED, IsoPlexis Corporation, a Delaware corporation (the  “Company”), hereby certifies that Perceptive Credit Holdings III, LP or any of its registered  assigns (collectively, the “Holder”) is entitled to purchase from the Company up to 811,374 duly  authorized, validly issued, fully paid and nonassessable shares of the Company’s Common Stock  at the applicable per share Exercise Price (defined below), all subject to the terms, conditions and  adjustments set forth below in this Warrant Certificate.  Certain capitalized terms used herein are  defined in Section 1.    The original warrant certificate for 97,504 shares of Series D Preferred Stock (the  “Original Warrant Certificate”) was issued on the Issue Date pursuant to the terms of the Credit  Agreement and Guaranty, dated as of December 30, 2020 (as amended or otherwise modified from  time to time, the “Credit Agreement”), among the Company, as the borrower, the guarantors from  time to time party thereto, the lenders from time to time party thereto and Perceptive Credit  Holdings III, LP, as administrative agent.  On October 12, 2021, the Company completed its initial  public offering pursuant to which all shares of the Company’s outstanding Series D Preferred  Stock were automatically converted into shares of the Company’s Common Stock, and pursuant  to the terms of the Original Warrant Certificate, such warrant became exercisable for 811,374  shares of Common Stock at an exercise price of $9.62.  In connection with the Third Amendment  to the Credit Agreement dated as of  March 30, 2022 (the “Amendment Date”), the Company and  the Holder have agreed to (i) lower the Exercise Price from $9.62 per share to $6.00 per share and  (ii) re-issue the Original Warrant Certificate in the form of this Warrant Certificate (this “Warrant  Certificate”) reflecting the aggregate number of shares of Common Stock, and the revised Exercise  Price, in effect as of the Amendment Date.  This Warrant Certificate amends and replaces the  Original Warrant Certificate in its entirety.  For the avoidance of doubt, the Issue Date shall remain  December 30, 2020 for all purposes hereunder.   Section 1. Definitions.  The following terms when used herein have the following meanings:  

 

2  “Aggregate Exercise Price” means, with respect to any exercise of this Warrant Certificate  for Warrant Shares, an amount equal to the product of (i) the number of Warrant Shares in respect  of which this Warrant Certificate is then being exercised pursuant to Sections 3 multiplied by  (ii) the Exercise Price.  “Bloomberg” has the meaning set forth within the definition of VWAP.  “Board” means the board of directors of the Company.  “Business Day” means any day, except a Saturday, Sunday or legal holiday, on which  banking institutions in the city of New York, New York are authorized or obligated by law or  executive order to close.  “Cashless Exercise” has the meaning set forth in Section 3(b).  “Change in Control” means a transaction or series of related transactions in which a  Person, or a group of related Persons, that is not an affiliate of the Company or a stockholder,  director or officer of the Company or an affiliate thereof, acquires from stockholders of the  Company shares representing more than fifty percent (50%) of the outstanding voting power of  the Company  “Common Stock” means the common stock, par value $0.001 per share, of the Company,  and any capital stock into which such Common Stock shall have been converted, exchanged or  reclassified following the date hereof.  “Common Stock Deemed Outstanding” means, at any given time, the sum of (i) the  number of shares of Common Stock actually outstanding at such time, plus (ii) the number of  shares of Common Stock issuable upon exercise of Options actually outstanding at such time, plus  (iii) the number of shares of Common Stock issuable upon conversion or exchange of Convertible  Securities actually outstanding at such time (treating as actually outstanding any Convertible  Securities issuable upon exercise of Options actually outstanding at such time), in each case,  regardless of whether the Options or Convertible Securities are actually exercisable at such time;  provided that Common Stock Deemed Outstanding at any given time shall not include shares  owned or held by or for the account of the Company or any of its wholly owned subsidiaries.  “Common Stock Equivalents” means any securities of the Company which would entitle  the holder thereof to acquire at any time Common Stock, including, without limitation, the Warrant  Shares and any other debt, preferred stock, right, option, warrant or other instrument that is at any  time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to  receive, Common Stock.  “Company” has the meaning set forth in the preamble.    “Convertible Securities” means any debt, equity or other securities that are, directly or  indirectly, convertible into or exchangeable for Common Stock.  “Credit Agreement” has the meaning set forth in the preamble.  

 

3  “Demand Registration” has the meaning set forth in Section 6(b).  “DTC” means the Depository Trust Company.  “DWAC” has the meaning set forth in Section 3(i).  “Excluded Issuance” means (i) shares of Common Stock issued or issuable to officers,  directors and employees of, or consultants to, the Company pursuant to stock grants, option plans,  purchase plans or other employee stock incentive programs or arrangements approved by the  Board or upon exercise of options or warrants granted to such parties pursuant to any such plan or  arrangement; (ii) shares of Common Stock issued upon the exercise or conversion of Options or  Convertible Securities outstanding as of the Issue Date, (iii) shares of Common Stock issued or  issuable pursuant to any event for which adjustment is made pursuant to Section 4, and (iv) any  issuance of Warrant Shares upon the exercise of this Warrant Certificate.     “Exercise Certificate” has the meaning set forth in Section 3(a)(i).  “Exercise Date” means, for any given exercise of this Warrant Certificate, whether in  whole or in part, the date on which the conditions to such exercise as set forth in Section 3 shall  have been satisfied at or prior to 5:00 p.m., Eastern time, on a Business Day, including, without  limitation, the receipt by the Company of the Exercise Certificate and the applicable Aggregate  Exercise Price.    “Exercise Period” has the meaning set forth in Section 2.  “Exercise Price” means a per share price equal to $6.00.  “Fair Market Value” means, if the Company’s equity securities are listed on a Trading  Market, as of any particular Trading Day, (i) the VWAP of such equity securities for such day or  (ii) if there have been no sales on any Trading Market on any such day, the average of the highest  bid and lowest asked prices for the Company’s equity securities on all applicable Trading Markets  at the end of such day.  If the Company’s equity securities are not listed, quoted or otherwise  available for trading, the “Fair Market Value” of the applicable class of equity securities shall be  the fair market value, per share, of such equity securities as determined jointly by the Board and  the Holder.  “FAST” has the meaning set forth in Section 3(i).  “Fundamental Change” means any event or circumstance that constitutes or results in (i) a  Change in Control or (ii) a Liquidity Event.  “Holder” has the meaning set forth in the preamble.  “Investors Rights Agreement” means that certain Sixth Amended and Restated Investors’  Rights Agreement by and among the Company, certain investors party thereto, and certain other  parties dated as of December 30, 2020, as amended.  “Issue Date” has the meaning set forth in the preamble.  

 

4  “Liquidity Event” means:   (a) a merger or consolidation in which the Company is a constituent party or a subsidiary  of the Company is a constituent party and the Company issues shares of its capital stock pursuant  to such merger or consolidation, except for (i) any such merger or consolidation with an entity that  is an affiliate of the Company or an affiliate of any shareholder of the Company or (ii) any such  merger or consolidation involving the Company or a subsidiary in which the shares of capital stock  of the Company outstanding immediately prior to such merger or consolidation continue to  represent, or are converted into or exchanged for shares of capital stock that represent, immediately  following such merger or consolidation, at least a majority, by voting power, of the capital stock  of (1) the surviving or resulting corporation; or (2) if the surviving or resulting corporation is a  wholly owned subsidiary of another corporation immediately following such merger or  consolidation, the parent corporation of such surviving or resulting corporation;   (b) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or  series of related transactions, by the Company or any subsidiary of the Company to an independent  third party that is not an affiliate of the Company or an affiliate of any shareholder of the company  of all or substantially all the assets of the Company and its subsidiaries taken as a whole or the sale  or disposition (whether by merger, consolidation or otherwise) of one or more subsidiaries of the  Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are  held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license  or other disposition is to a wholly owned subsidiary of the Company; or   (c) the liquidation, dissolution or winding up of the Company, whether voluntary or  involuntary.  For the avoidance of doubt, a public offering of the capital stock of the Company or of any  entity into which the Company has been merged or consolidated, shall not constitute a “Liquidity  Event” for the purpose of this Warrant.  “Marketable Securities” means securities that (a) are tradable on an established national  U.S. or non-U.S. stock exchange or reported through NASDAQ or a comparable established non- U.S. over-the-counter trading system and (b) are not subject to restrictions on transfer under the  Securities Act or contractual restrictions on transfer.  “Nasdaq” means The Nasdaq Stock Market, Inc.  “Options” means any warrants or other rights or options to subscribe for or purchase  Common Stock or Convertible Securities.  “OTC Bulletin Board” means the National Association of Securities Dealers, Inc. OTC  Bulletin Board.  “Person” means any individual, sole proprietorship, partnership, limited liability company,  corporation, joint venture, trust, incorporated organization or government or department or agency  thereof.    

 

5  “Prospectus” means the prospectus or prospectuses included in any Registration  Statement, as amended or supplemented by any prospectus supplement with respect to the terms  of the offering of any portion of the Registrable Securities covered by such Registration Statement  and by all other amendments and supplements to the prospectus, including post-effective  amendments and all material incorporated by reference in such prospectus or prospectuses.  “Purchase Rights” has the meaning set forth in Section 5.  “Registrable Securities” shall mean (i) the Warrant Shares issuable upon the exercise of  this Warrant Certificate and (ii) those securities defined as “Registrable Securities” under the  Investors Rights Agreement.  The parties hereto agree that, as such term is used in this Warrant  Certificate and as such term is used in the Investors Rights Agreement, the Warrant Shares shall  be deemed to be Registrable Securities for the purposes of the registration rights set forth in the  Investors Rights Agreement at all times that the Holder has the right to acquire or obtain from the  Company the Warrant Shares, whether or not such acquisition has actually been effected.    “Registration Statement” means any registration statement of the Company which covers  any of the Registrable Securities, including the Prospectus, amendments and supplements to such  Registration Statement, including post-effective amendments, all exhibits and all materials  incorporated by reference in such Registration Statement.   “Right of First Refusal and Co-Sale Agreement” means that certain Sixth Amended and  Restated Right of First Refusal and Co-Sale Agreement by and among the Company, certain  investors party thereto, and certain other parties dated as of December 30, 2020, as amended.  “SEC” means the Securities and Exchange Commission or any successor thereto.  “Securities Act” means the Securities Act of 1933, as amended.  “Successor Entity” means, with respect to any Fundamental Change as a result of which  the Company will not be the surviving entity, the successor entity resulting from such Fundamental  Change.  “Trading Day” means a day on which the principal Trading Market is open for trading.  “Trading Market” means Nasdaq or, if the Company’s equity securities are not listed on  Nasdaq, such other principal US or foreign exchange or market (including the OTC Bulletin  Board) on which the Company’s equity securities are quoted or available for trading.  “Transfer Agent” has the meaning set forth in Section 3(c)(ii).  “Unlegended Shares” has the meaning set forth in Section 12(a)(iii).  “Unrestricted Conditions” has the meaning set forth in Section 12(a)(ii).  “VWAP” means, for any security as of any day or period of days (as the case may be), the  volume weighted average sale price on Nasdaq as reported by, or based upon data reported by  Bloomberg Financial Markets or an equivalent, reliable reporting service reasonably acceptable to  

 

6  the Holder and the Company (collectively, “Bloomberg”) or, if Nasdaq is not the principal trading  market for such security, the volume weighted average sale price of such security on the principal  securities exchange or trading market where such security is listed or traded as reported by  Bloomberg or, if no volume weighted average sale price is reported for such security by  Bloomberg, then the last closing trade price of such security as reported by Bloomberg, or, if no  last closing trade price is reported for such security by Bloomberg, the average of the bid prices of  any market makers for such security that are listed in the over the counter market by the Financial  Industry Regulatory Authority, Inc. or on the OTC Bulletin Board (or any successor) or in the  “pink sheets” (or any successor) by the OTC Markets Group, Inc.; provided that if VWAP cannot  be calculated for such security on such date in the manner provided above, the VWAP shall be the  fair market value as mutually determined by the Company and the Holder.  “Warrant” or “Warrant Certificate” means this Warrant Certificate and all subsequent  warrant certificates issued upon division, combination or transfer of, or in substitution for, this  Warrant Certificate.  “Warrant Register” has the meaning set forth in Section 7.  “Warrant Shares” means the shares of Common Stock, or other capital stock of the  Company then purchasable upon exercise of this Warrant Certificate in accordance with the terms  of this Warrant Certificate.  Section 2. Term of Warrant Certificate.  Subject to the terms and conditions hereof, at any  time or from time to time on or after the Issue Date and prior to 5:00 p.m., Eastern time, on the  tenth anniversary of such date or, if such day is not a Business Day, on the next preceding Business  Day (the “Exercise Period”), the Holder of this Warrant Certificate may exercise this Warrant  Certificate for all or any part of the Warrant Shares purchasable hereunder (subject to adjustment  as provided herein).    Section 3. Exercise of Warrant Certificate.    (a) Exercise Procedure.  This Warrant Certificate may be exercised from time to time  on any Business Day during the Exercise Period, for all or any part of the unexercised Warrant  Shares, upon:  (i) delivery to the Company at its then principal executive office of an Exercise  Certificate in the form attached hereto as Exhibit A (each, an “Exercise Certificate”), duly  completed (including specifying the number of Warrant Shares to be purchased) and executed; and  (ii) payment to the Company of the Aggregate Exercise Price in accordance  with Section 3(b).  (b) Payment of the Aggregate Exercise Price.  Payment of the Aggregate Exercise  Price shall be made, at the option of the Holder as expressed in the Exercise Certificate, by any of  the following methods:   

 

7  (i) by delivery to the Company of a certified or official bank check payable to  the order of the Company or by wire transfer of immediately available funds to an account  designated in writing by the Company, in the amount of such Aggregate Exercise Price;  (ii) by instructing the Company to withhold a number of Warrant Shares then  issuable upon exercise of this Warrant Certificate with an aggregate Fair Market Value as of the  Exercise Date equal to such Aggregate Exercise Price;  (iii) by surrendering to the Company (x) Warrant Shares previously acquired by  the Holder with an aggregate Fair Market Value as of the Exercise Date equal to such Aggregate  Exercise Price or (y) any other securities or any debt of the Company (including shares of Common  Stock) having a value as of the Exercise Date equal to the Aggregate Exercise Price (which value  in the case of debt, shall be the principal amount thereof plus accrued and unpaid interest, and in  the case of shares of Common Stock, shall be the Fair Market Value thereof); or  (iv) any combination of the foregoing.  In the event of any withholding of Warrant Shares or surrender of other equity securities  pursuant to Section 3(b)(ii), (iii) or (iv) (solely to the extent of such withholding or surrender, a  “Cashless Exercise”) where the number of shares whose value is equal to the Aggregate Exercise  Price is not a whole number, the number of shares withheld by or surrendered to the Company  shall be rounded up to the nearest whole share and the Company shall make a cash payment to the  Holder (by delivery of a certified or official bank check or by wire transfer of immediately  available funds) based on the incremental fraction of a share being so withheld by or surrendered  to the Company in an amount equal to the product of (x) such incremental fraction of a share being  so withheld or surrendered multiplied by (y) in the case of Common Stock, the Fair Market Value  per Warrant Share as of the Exercise Date, and, in all other cases, the value thereof as of the  Exercise Date determined in accordance with Section 3(b)(iii)(y).  For purposes of Rule 144, it is acknowledged and agreed that (i) the Warrant Shares  issuable upon any exercise of this Warrant Certificate in any Cashless Exercise transaction shall  be deemed to have been acquired on the Issue Date, and (ii) the holding period for any Warrant  Shares issuable upon the exercise of this Warrant Certificate in any Cashless Exercise transaction  shall be deemed to have commenced on the Issue Date.  (c) Delivery of Stock Certificates.    (i) With respect to any exercise of this Warrant Certificate by the Holder, upon  receipt by the Company of an Exercise Certificate and delivery of the Aggregate Exercise Price  (in accordance with Section 3(b)), the Company shall, within two (2) Business Days, issue and  deliver (or cause its Transfer Agent to issue and deliver) in accordance with the terms hereof to or  upon the order of the Holder that number Warrant Shares for the portion of this Warrant Certificate  so exercised on such date, together with cash in lieu of any fraction of a share, as provided in  Section 3(d).  The stock certificate or certificates so delivered shall be, to the extent possible, in  such denomination or denominations as the exercising Holder shall reasonably request in the  Exercise Certificate and shall be registered in the name of the Holder or, subject to compliance  with Section 8, such other Person’s name as shall be designated in the Exercise Certificate.  This  

 

8  Warrant Certificate shall be deemed to have been exercised and such certificate or certificates of  Warrant Shares shall be deemed to have been issued, and the Holder or any other Person so  designated to be named therein shall be deemed to have become a holder of record of such Warrant  Shares for all purposes, as of the Exercise Date.    (ii) If, at the time of exercise, the Company has a Transfer Agent, then upon the  exercise of this Warrant Certificate in whole or in part, the Company shall, at its own cost and  expense, take all necessary action, including obtaining and delivering an opinion of counsel, to  assure that the Company’s transfer agent (the “Transfer Agent”) shall issue Warrant Shares in the  name of the Holder (or its nominee) or such other Persons as designated by the Holder (in  compliance with Section 8) and in such denominations to be specified in the applicable Exercise  Certificate. The Company represents and warrants that no instructions other than the foregoing  instructions will be given to the Transfer Agent and that, unless waived by the Holder, this Warrant  Certificate and the Warrant Shares will, if eligible at such time, be free-trading, and freely  transferable, and will not contain a legend restricting the resale or transferability of the Warrant  Shares if the Unrestricted Conditions are met.  (d) Fractional Shares.  The Company shall not be required to issue a fractional  Warrant Share upon exercise of any Warrant Certificate.  As to any fraction of a Warrant Share  that the Holder would otherwise be entitled to purchase upon such exercise, the Company shall  pay to such Holder an amount in cash (by delivery of a certified or official bank check or by wire  transfer of immediately available funds) equal to the product of (i) such fraction multiplied by  (ii) the Fair Market Value of one Warrant Share on the Exercise Date.  (e) Surrender of this Warrant Certificate; Delivery of New Warrant Certificate.    (i) The Holder shall not be required to physically surrender this Warrant  Certificate to the Company until the Holder has purchased all of the Warrant Shares available  hereunder and this Warrant Certificate has been exercised in full, in which case, the Holder shall,  at the written request of the Company, surrender this Warrant Certificate to the Company for  cancellation within three (3) Business Days after the date the final Exercise Certificate is delivered  to the Company.  Partial exercises of this Warrant Certificate resulting in purchases of a portion  of the total number of Warrant Shares available hereunder shall have the effect of lowering the  outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable  number of Warrant Shares purchased.  The Holder and the Company shall maintain records  showing the number of Warrant Shares purchased and the date of such purchases.  The Holder and  any assignee, by acceptance of this Warrant Certificate, acknowledge and agree that, by reason of  the provisions of this Section 3(e), following the purchase of a portion of the Warrant Shares  hereunder, the number of Warrant Shares available for purchase hereunder at any given time may  be less than the amount stated on the face hereof.    (ii) Notwithstanding the foregoing, the Holder may request that the Company  (and the Company shall), at the time of delivery of the certificate or certificates representing the  Warrant Shares being issued in accordance with Section 3(c), deliver to the Holder a new Warrant  Certificate evidencing the rights of the Holder to purchase the unexpired and unexercised Warrant  Shares called for by this Warrant Certificate.  Unless otherwise agreed upon by the Holder in its  

 

9  sole discretion, such new Warrant Certificate shall in all other respects be identical to this Warrant  Certificate.   (f) Valid Issuance of Warrant Certificate and Warrant Shares; Payment of  Taxes.  The Company hereby represents, covenants and agrees:  (i) This Warrant Certificate is, and any Warrant Certificate issued in  substitution for or replacement of this Warrant Certificate shall be, upon issuance, duly authorized  and validly issued.  (ii) All Warrant Shares issuable upon the exercise of this Warrant Certificate  (or any substitute or replacement Warrant Certificate) pursuant to the terms hereof shall be, upon  issuance, and the Company shall take all such actions as may be necessary or appropriate in order  that such Warrant Shares are, validly issued, fully paid and non-assessable, issued without  violation of any preemptive or similar rights of any stockholder of the Company and free and clear  of all taxes, liens and charges.  (iii) The Company shall take all such actions as may be necessary to ensure that  all such Warrant Shares are issued without violation by the Company of any applicable law or  governmental regulation or any requirements of any Trading Market upon which shares of  Common Stock or other securities constituting Warrant Shares may be listed at the time of such  exercise (except for official notice of issuance which shall be immediately delivered by the  Company upon each such issuance).  (iv) The Company shall cause the Warrant Shares, immediately upon such  exercise, to be listed on any Trading Market upon which shares of Common Stock or other  securities constituting Warrant Shares are listed at the time of such exercise.  (v) The Company shall pay all expenses in connection with, and all taxes and  other governmental charges that may be imposed with respect to, the issuance or delivery of  Warrant Shares upon exercise of this Warrant Certificate.  (g) Conditional Exercise.  Notwithstanding any other provision hereof, if an exercise  of any portion of this Warrant Certificate is to be made in connection with a public offering or a  Fundamental Change, such exercise may, at the election of the Holder, be conditioned upon the  consummation of such transaction, in which case such exercise shall not be deemed to be effective  until immediately prior to the consummation of such transaction.  (h) Reservation of Shares.  During the Exercise Period, the Company shall at all times  reserve and keep available out of its authorized but unissued shares of Common Stock or other  securities constituting Warrant Shares, solely for the purpose of issuance upon the exercise of this  Warrant Certificate, the maximum number of Warrant Shares issuable upon the exercise of this  Warrant Certificate, and the par value per Warrant Share shall at all times be less than or equal to  the Exercise Price.  The Company shall not increase the par value of any Warrant Shares receivable  upon the exercise of this Warrant Certificate above the Exercise Price, and shall take all such  actions as may be necessary or appropriate in order that the Company may validly and legally issue  fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant  Certificate.  

 

10  (i) Delivery of Electronic Shares.  If the Company has a Transfer Agent and the  Transfer Agent is participating in the DTC Fast Automated Securities Transfer (“FAST”) program,  upon written request of the Holder and in lieu of delivering physical certificates representing any  shares of Common Stock (including any Warrant Shares) to be delivered under or in connection  with this Warrant Certificate, the Company shall use its commercially reasonable efforts to cause  the Transfer Agent to electronically transmit the such Common Stock to the Holder by crediting  the account of the Holder’s prime broker with the DTC through its Deposit Withdrawal Agent  Commission (“DWAC”) system.  The time periods for delivery described herein shall apply to the  electronic transmittals described herein. Any delivery not effected by electronic transmission shall  be effected by delivery of physical certificates.  (j) Dispute Resolution.  In the case of any dispute as to the determination of Fair  Market Value, any closing sales price or VWAP of the Company’s Common Stock, the arithmetic  calculation of the Exercise Price or any other computation required to be made hereunder, in the  event the Holder and the Company are unable to settle such dispute within five (5) Business Days,  then either party may elect to submit the disputed matter(s) for resolution to a mutually agreeable  investment bank.  Such investment bank’s determination of such disputed matter(s) shall be  binding upon all parties absent demonstrable error, and the Company and the Holder shall each  pay one half of the fees and costs of such investment banker.  (k) Automatic Exercise on a Liquidity Event.  If a Liquidity Event occurs with  respect to the Company at any time prior to the expiration of the Exercise Period and there remain  any Warrant Shares subject to this Warrant Certificate then, provided that the Fair Market Value  of one Warrant Share (as determined in connection with the Liquidity Event) is greater than the  Exercise Price:  (i) if the consideration to be received by the holders of the Company’s equity  securities constituting Warrant Shares is cash and/or Marketable Securities, this Warrant shall be  deemed automatically exercised, in full, without the requirement to deliver any Exercise  Certificate, immediately prior to the closing of such Liquidity Event and the Holder shall receive,  in the same proportions as the holders of the Company’s equity securities constituting Warrant  Shares, such amounts of cash and/or Marketable Securities as the holders of the Company’s equity  securities constituting Warrant Shares (and if the holders of such equity securities are given any  choice as to the cash or Marketable Securities to be received in such Liquidity Event, then the  Holder shall be given the same choice); and  (ii) if the consideration to be received by the holders of the Company’s equity  securities constituting Warrant Shares is not cash and/or Marketable Securities (an “Illiquid  Sale”), then, unless exercised by the Holder (in the Holder’s sole discretion) prior to the  consummation of such Illiquid Sale, (x) this Warrant shall remain outstanding and (y) upon any  subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant  Share that would have been issuable upon such exercise immediately prior to the occurrence of  such Illiquid Sale, at the option of the Holder, the number of shares of equity securities of the  successor or acquiring corporation or of the Company, if it is the surviving corporation, and any  additional consideration (the “Alternate Consideration”) receivable as a result of such Illiquid  Sale by a holder of the number of shares of Warrant Shares for which this Warrant is exercisable  immediately prior to such Illiquid Sale.  For purposes of any such exercise, the determination of  

 

11  the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based  on the amount of Alternate Consideration issuable in respect of one (1) share of the equity  securities constituting Warrant Shares in such Illiquid Sale, and the Company shall apportion the  Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative  value of any different components of the Alternate Consideration.  If holders of equity securities  constituting Warrant Shares are given any choice as to the securities, cash or property to be  received in an Illiquid Sale, then the Holder shall be given the same choice as to the Alternate  Consideration it receives upon any exercise of this Warrant following such Illiquid Sale.  The  Company shall cause any Successor Entity in an Illiquid Sale to assume in writing all of the  obligations of the Company under this Warrant pursuant to written agreements in form and  substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable  delay) prior to such Illiquid Sale and shall, at the option of the Holder, deliver to the Holder in  exchange for this Warrant a security of the Successor Entity evidenced by a written instrument  substantially similar in form and substance to this Warrant which is exercisable for a corresponding  number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the  shares of equity securities receivable upon exercise of this Warrant (without regard to any  limitations on the exercise of this Warrant) prior to such Illiquid Sale, and with an exercise price  which applies the Exercise Price hereunder to such shares of capital stock (but taking into account  the relative value of the shares of Common Stock pursuant to such Illiquid Sale and the value of  such shares of capital stock, such number of shares of capital stock and such Exercise Price being  for the purpose of protecting the economic value of this Warrant immediately prior to the  consummation of such Illiquid Sale), and which is reasonably satisfactory in form and substance  to the Holder. Upon the occurrence of any such Illiquid Sale, the Successor Entity shall succeed  to, and be substituted for (so that from and after the date of such Illiquid Sale, the provisions of  this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may  exercise every right and power of the Company and shall assume all of the obligations of the  Company under this Warrant with the same effect as if such Successor Entity had been named as  the Company herein.    (l) Automatic Exercise Prior to Expiration.  If immediately prior to the expiration  of the Exercise Period there remain any Warrant Shares subject to this Warrant Certificate, and as  of such time, the Fair Market Value of one Warrant Share is greater than the then applicable  Exercise Price, then this Warrant Certificate shall be deemed to have been automatically exercised  by the Holder, in full, immediately prior to the expiration of the Exercise Period on a Cashless  Exercise basis for the full number of remaining Warrant Shares, without the requirement for the  delivery of an Exercise Certificate.    (m) Holder’s Exercise Limitations. The Company shall not effect any exercise of this  Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to  this Section 3 or otherwise, to the extent that after giving effect to such issuance after exercise as  set forth on the applicable Exercise Certificate, the Holder (together with the Holder’s affiliates,  and any other persons acting as a group together with the Holder or any of the Holder’s affiliates),  would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For  purposes of the foregoing sentence, the number of shares of Common Stock Equivalents  beneficially owned by the Holder and its affiliates shall include the number of shares of Common  Stock Equivalents issuable upon exercise of this Warrant with respect to which such determination  is being made, but shall exclude the number of shares of Common Stock Equivalents which would  

 

12  be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially  owned by the Holder or any of its affiliates, and (ii) exercise or conversion of the unexercised or  nonconverted portion of any other securities of the Company (including, without limitation, any  other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to  the limitation contained herein beneficially owned by the Holder or any of its affiliates.  Except as  set forth in the preceding sentence, for purposes of this Section 3(m), beneficial ownership shall  be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations  promulgated thereunder, it being acknowledged by the Holder that the Company is not  representing to the Holder that such calculation is in compliance with Section 13(d) of the  Exchange Act and the Holder is solely responsible for any schedules required to be filed in  accordance therewith.  To the extent that the limitation contained in this Section 3(m) applies, the  determination of whether this Warrant is exercisable (in relation to other securities owned by the  Holder together with any affiliates) and of which portion of this Warrant is exercisable shall be in  the sole discretion of the Holder, and the submission of an Exercise Certificate shall be deemed to  be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities  owned by the Holder together with any affiliates) and of which portion of this Warrant is  exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall  have no obligation to verify or confirm the accuracy of such determination.  In addition, a  determination as to any group status as contemplated above shall be determined in accordance with  Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For  purposes of this Section 3(m), in determining the number of outstanding shares of Common Stock,  a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the  Company’s most recent periodic or annual report filed with the SEC, as the case may be, (B) a  more recent public announcement by the Company, or (C) a more recent written notice from the  Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.   Upon the written request of a Holder, the Company shall within three (3) Business Days confirm  orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In  any case, the number of outstanding shares of Common Stock shall be determined after giving  effect to the conversion or exercise of securities of the Company, including this Warrant, by the  Holder or its affiliates since the date as of which such number of outstanding shares of Common  Stock was reported.  The “Beneficial Ownership Limitation” shall be 9.99% of the number of  shares of Common Stock and Common Stock Equivalents outstanding immediately after giving  effect to the applicable issuance of Warrant Shares issuable upon exercise of this Warrant if at the  time of exercise the Company is a “reporting issuer” under the Securities Exchange Act of 1934.   The provisions of this paragraph shall be construed and implemented in a manner otherwise than  in strict conformity with the terms of this Section 3(m) to correct this paragraph (or any portion  hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation  herein contained or to make changes or supplements necessary or desirable to properly give effect  to such limitation. The limitations contained in this paragraph shall apply to a successor holder of  this Warrant.  Section 4. Anti-Dilution Adjustments.    (a) Adjustment to Exercise Price and Number of Warrant Shares Upon Dividend,  Subdivision or Combination of Common Stock.  If the Company shall, at any time or from time  to time after the Issue Date, (i) pay a dividend or make any other distribution upon the Common  Stock or any other capital stock of the Company payable in shares of Common Stock or in Options  

 

13  or Convertible Securities, or (ii) subdivide (by any stock split, recapitalization or otherwise) its  outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect  immediately prior to any such dividend, distribution or subdivision shall be proportionately  reduced and the number of Warrant Shares issuable upon exercise of this Warrant Certificate shall  be proportionately increased.  If the Company at any time combines (by combination, reverse stock  split or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the  Exercise Price in effect immediately prior to any such combination shall be proportionately  increased and the number of Warrant Shares issuable upon exercise of this Warrant Certificate  immediately prior to such combination shall be proportionately decreased.  Any adjustment under  this Section 4(a) shall become effective at the close of business on the date the dividend,  subdivision or combination becomes effective.    (b) Adjustment to Exercise Price and Number of Warrant Shares Upon  Reorganization or Reclassification.   (i) Unless the Holder otherwise consents (in its sole discretion), the event of  any (A) capital reorganization of the Company, (B) reclassification of the stock of the Company  (other than a change in par value or from par value to no par value or from no par value to par  value or as a result of a stock dividend or subdivision, split-up or combination of shares), (C)  Fundamental Change or (D) other similar transaction, including a Liquidity Event in which the  Warrant Certificate is not exercised (each an “Adjustment Event”), in each case which entitles the  holders of Common Stock to receive (either directly or upon subsequent liquidation) stock,  securities or assets with respect to or in exchange for Common Stock:  (1) this Warrant Certificate shall, immediately after such  Adjustment Event remain outstanding and shall thereafter, in lieu of or in addition to (as the case  may be) the number of Warrant Shares then exercisable under this Warrant Certificate, be  exercisable for the kind and number of shares of stock or other securities or assets of the Company  resulting from such transaction to which the Holder would have been entitled upon such  Adjustment Event if the Holder had exercised this Warrant Certificate in full immediately prior to  the time of such Adjustment Event and acquired the applicable number of Warrant Shares then  issuable hereunder as a result of such exercise (without taking into account any limitations or  restrictions on the exercisability of this Warrant Certificate); and  (2) appropriate adjustment (in form and substance reasonably  satisfactory to the Holder) shall be made with respect to the Holder’s rights under this Warrant  Certificate to insure that the provisions of this Section 4 shall thereafter be applicable, as nearly  as possible, to this Warrant Certificate in relation to any shares of stock, securities or assets  thereafter acquirable upon exercise of this Warrant Certificate.  The provisions of this Section 4(b) shall similarly apply to successive Adjustment  Events and the Company shall not effect such Adjustment Event unless, prior to the consummation  of such transaction, the successor entity has assumed the obligations of the Company under this  Warrant Certificate by delivering to the Holder a written instrument substantially similar to this  Warrant Certificate and reasonably satisfactory to the Holder.    

 

14  (ii) Notwithstanding anything to the contrary contained herein, with respect to  any corporate event or other transaction contemplated by this Section 4(b), the Holder shall have  the right to elect, prior to the consummation of such event or transaction, to exercise its rights  under Section 2 instead of giving effect to Section 4(b)(i).  (c) Certain Events.  If any event of the type contemplated by the provisions of this  Section 4 but not expressly provided for by such provisions (including, without limitation, the  granting of stock appreciation rights, phantom stock rights or other rights with equity features)  occurs, then the Board shall make an appropriate adjustment in the Exercise Price and the number  of Warrant Shares issuable upon exercise of this Warrant Certificate so as to protect the rights of  the Holder in a manner consistent with the provisions of this Section 4; provided that no such  adjustment pursuant to this Section 4(c) shall increase the Exercise Price or decrease the number  of Warrant Shares issuable hereunder as otherwise determined pursuant to this Section 4.  (d) Certificate as to Adjustment.    (i) As promptly as reasonably practicable following any adjustment of the  Exercise Price or the number of Warrant Shares issuable upon exercise of this Warrant Certificate,  but in any event not later than three (3) Business Days thereafter, the Company shall furnish to the  Holder a certificate of an executive officer setting forth in reasonable detail such adjustment and  the facts upon which it is based and certifying the calculation thereof.  (ii) As promptly as reasonably practicable following the receipt by the  Company of a written request by the Holder, but in any event not later than three (3) Business  Days thereafter, the Company shall furnish to the Holder a certificate of an executive officer  certifying the Exercise Price then in effect and the number of Warrant Shares for which this  Warrant Certificate is exercisable, or the amount, if any, of other shares of stock, securities or  assets then issuable upon exercise of this Warrant Certificate.    (e) Notices.  In the event that the Company shall take a record of the holders of its  Common Stock (or other capital stock or securities at the time issuable upon exercise of this  Warrant Certificate):  (i) for the purpose of entitling or enabling them to receive any dividend or other  distribution, to vote at a meeting (or by written consent), to receive any right to subscribe for or  purchase any shares of capital stock of any class or any other securities, or to receive any other  security; or   (ii) approving or enabling any capital reorganization of the Company, any  reclassification of the Common Stock of the Company or any Fundamental Change;  then, and in each such case, the Company shall send or cause to be sent to the Holder at least thirty  (30) days prior to the applicable record date or the applicable expected effective date, as the case  may be, for the event, a written notice specifying, as the case may be, (A) the record date for such  dividend, distribution, meeting or consent or other right or action, and a description of such  dividend, distribution or other right or action to be taken at such meeting or by written consent, or  (B) the effective date on which such Fundamental Change is proposed to take place, and the date,  if any is to be fixed, as of which the books of the Company shall close or a record shall be taken  

 

15  with respect to which the holders of record of Common Stock (or such other capital stock or  securities at the time issuable upon exercise of this Warrant Certificate) shall be entitled to  exchange their shares of Common Stock (or such other capital stock or securities) for securities or  other property deliverable upon such Fundamental Change, and the amount per share and character  of such exchange applicable to this Warrant Certificate and the Warrant Shares.  Section 5. Purchase Rights.  In addition to any adjustments pursuant to Section 4, if at any  time the Company grants, issues or sells (other than in an Excluded Issuance) any shares of  Common Stock, Options, Convertible Securities or rights to purchase capital stock, securities or  other property over which the holders of Common Stock have a preemptive purchase right (the  “Purchase Rights”), then the Holder shall be entitled (but not required) to acquire, upon the same  terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder would  have acquired if the Holder had held the number of Warrant Shares acquirable upon complete  exercise of this Warrant Certificate immediately before the date on which a record is taken for the  grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which  the record holders of Common Stock are to be determined for the grant, issue or sale of such  Purchase Rights.  Section 6. Registration Rights.   (a) Investors Rights Agreement.  The Company and the Holder agree that, as of the  Issue Date:  (i) The Warrant Shares and the Holder shall have certain registration rights  pursuant to and as set forth in the Investors Rights Agreement, including rights to have the Warrant  Shares issuable upon exercise of this Warrant Certificate included in a Registration Statement  initiated pursuant to Section 2.1 (Demand Registration) or Section 2.2 (Company Registration) of  the Investors Rights Agreement;  (ii) The Holder shall be deemed to be a “Holder” and a “Major Investor” for the  purpose of exercising all rights granted to “Holders” and “Major Investors” (as defined in the  Investors Rights Agreement) under the Investors Rights Agreement;   (iii) The Warrant Shares shall be “Registrable Securities” under the Investors  Rights Agreement for the purpose of exercising all rights attached to the Registrable Securities  under the Investors Rights Agreement, including prior to exercise of this Warrant Certificate,  provided that, for the avoidance of doubt, the Holder may not require that the Warrant Shares be  registered on a Trading Market unless and until this Warrant Certificate has been validly exercised  with respect to the Warrant Shares to be so registered and such Warrant Shares are eligible to be  so registered in accordance with applicable law; and  (iv) The provisions set forth in the Investors Rights Agreement, or any similar  or replacement agreement relating to the registration rights of Registrable Securities (including the  Warrant Shares), may not be amended, modified or waived without the prior written consent of  Holder unless such amendment, modification or waiver affects the rights associated with the  Warrant Shares in the same manner as such amendment, modification, or waiver affects the rights  associated with all other shares of the same series and class as the Warrant Shares.  

 

16  (b) Rule 144 Reporting.  For the avoidance of doubt, the Holder shall be a “Holder”  (as defined in the Investors Rights Agreement) for all purposes of Section 2.9 (Reports Under  Exchange Act) of the Investors Rights Agreement.  Section 7. Warrant Register.  The Company shall keep and properly maintain at its principal  executive offices a register (the “Warrant Register”) for the registration of this Warrant Certificate  and any transfers thereof.  The Company may deem and treat the Person in whose name this  Warrant Certificate is registered on such register as the Holder thereof for all purposes, and the  Company shall not be affected by any notice to the contrary, except any assignment, division,  combination or other transfer of this Warrant Certificate effected in accordance with the provisions  of this Warrant Certificate.  Section 8. Transfer of Warrant Certificate.  Subject to Section 12 hereof, this Warrant  Certificate and all rights hereunder are transferable, in whole or in part, by the Holder without  charge to the Holder, upon surrender of this Warrant Certificate to the Company at its then  principal executive offices with a properly completed and duly executed Assignment in the form  attached hereto as Exhibit B, together with funds sufficient to pay any transfer taxes described in  Section 3(f)(v) in connection with the making of such transfer.  Upon such compliance, surrender  and delivery and, if required, such payment, the Company shall execute and deliver a new Warrant  Certificate or Warrant Certificates in the name of the assignee or assignees and in the  denominations specified in such instrument of assignment, and shall issue to the assignor a new  Warrant Certificate evidencing the portion of this Warrant Certificate, if any, not so assigned and  this Warrant Certificate shall promptly be cancelled.    Section 9. The Holder Not Deemed a Stockholder; Limitations on Liability; Right to  Receive Stockholder Notices.  Except as otherwise specifically provided herein, prior to the  issuance to the Holder of the Warrant Shares to which the Holder is then entitled to receive upon  the due exercise of this Warrant Certificate, the Holder shall not be entitled to vote or receive  dividends or be deemed the holder of shares of capital stock of the Company for any purpose, nor  shall anything contained in this Warrant Certificate be construed to confer upon the Holder, as  such, any of the rights of a stockholder of the Company or any right to vote, give or withhold  consent to any corporate action (whether any reorganization, issue of stock, reclassification of  stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive  dividends or subscription rights, or otherwise.  In addition, nothing contained in this Warrant  Certificate shall be construed as imposing any liabilities on the Holder to purchase any securities  (upon exercise of this Warrant Certificate or otherwise) or as a stockholder of the Company,  whether such liabilities are asserted by the Company or by creditors of the Company.   Notwithstanding this Section 9, the Company shall provide the Holder with copies of the same  notices and other information given to the stockholders of the Company generally,  contemporaneously with the giving thereof to the stockholders, including without limitation the  financial information set forth in Section 3.1 of the Investors Rights Agreement and notices  relating to any right of first offer or tag along right set forth in the Investors Rights Agreement and  the Right of First Refusal and Co-Sale Agreement.    

 

17  Section 10. Replacement on Loss; Division and Combination.    (a) Replacement of Warrant Certificate on Loss.  Upon receipt of evidence  reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant  Certificate and upon delivery of an indemnity reasonably satisfactory to it (it being understood that  a written indemnification agreement or affidavit of loss of the Holder shall be a sufficient  indemnity) and, in case of mutilation, upon surrender of such Warrant Certificate for cancellation  to the Company, the Company at its own expense shall execute and deliver to the Holder, in lieu  hereof, a new Warrant Certificate of like tenor and exercisable for an equivalent number of Warrant  Shares as this Warrant Certificate so lost, stolen, mutilated or destroyed; provided that, in the case  of mutilation, no indemnity shall be required if this Warrant Certificate in identifiable form is  surrendered to the Company for cancellation.  (b) Division and Combination of Warrant Certificate.  Subject to compliance with  the applicable provisions of this Warrant Certificate as to any transfer or other assignment which  may be involved in such division or combination, this Warrant Certificate may be divided or,  following any such division of this Warrant Certificate, subsequently combined with other Warrant  Certificates, upon the surrender of this Warrant Certificate or Warrant Certificates to the Company  at its then principal executive offices, together with a written notice specifying the names and  denominations in which new Warrant Certificates are to be issued, signed by the respective  Holders or their agents or attorneys.  Subject to compliance with the applicable provisions of this  Warrant Certificate as to any transfer or assignment which may be involved in such division or  combination, the Company shall at its own expense execute and deliver a new Warrant Certificate  or Warrant Certificates in exchange for this Warrant Certificate or Warrant Certificates so  surrendered in accordance with such notice.  Such new Warrant Certificate or Warrant Certificates  shall be of like tenor to the surrendered Warrant Certificate or Warrant Certificates and shall be  exercisable in the aggregate for an equivalent number of Warrant Shares as this Warrant Certificate  or Warrant Certificates so surrendered in accordance with such notice.    Section 11. No Impairment.  The Company shall not, by amendment of its Certificate of  Incorporation or Bylaws, through any shareholders, voting or similar agreement, or through any  reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or  any other voluntary action, avoid or seek to avoid the observance or performance of any of the  terms to be observed or performed by it hereunder, but shall at all times in good faith assist in the  carrying out of all the provisions of this Warrant Certificate and in the taking of all such action as  may reasonably be requested by the Holder in order to protect the exercise rights of the Holder  against dilution or other impairment, consistent with the tenor and purpose of this Warrant  Certificate.  Section 12. Compliance with the Securities Act.    (a) Agreement to Comply with the Securities Act, etc.    (i) Legend.  The Holder, by acceptance of this Warrant Certificate, agrees to  comply in all respects with the provisions of this Section 12 and the restrictive legend requirements  set forth on the face of this Warrant Certificate and further agrees that such Holder shall not offer,  sell or otherwise dispose of this Warrant Certificate or any Warrant Shares to be issued upon  

 

18  exercise hereof except under circumstances that will not result in a violation of the Securities Act.   Subject to clause (ii) below, this Warrant Certificate and all Warrant Shares issued upon exercise  of this Warrant Certificate (unless registered under the Securities Act) shall be stamped or  imprinted with a legend in substantially the following form:  “THIS WARRANT CERTIFICATE AND THE SECURITIES ISSUABLE  UPON EXERCISE OF THIS WARRANT CERTIFICATE HAVE NOT  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED (THE “ACT”), OR QUALIFIED UNDER ANY STATE OR  FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR  SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE  TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION  STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER  THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND  FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE  REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS  UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS  UNDER APPLICABLE STATE AND FOREIGN LAW AND, IF THE  COMPANY REQUESTS, AN OPINION SATISFACTORY TO THE  COMPANY TO SUCH EFFECT HAS BEEN RENDERED BY  COUNSEL.”   (ii) Removal of Restrictive Legends.  Neither this Warrant Certificate nor any  certificates evidencing Warrant Shares or any other shares of Common Stock issuable or  deliverable under or in connection with this Warrant Certificate shall contain any legend restricting  the transfer thereof (including the legend set forth above in clause (i)) in any of the following  circumstances:  (A) while a Registration Statement covering the sale or resale of Warrant Shares  is effective under the Securities Act, (B) following any sale of this Warrant Certificate, any  Warrant Shares or any other shares of Common Stock issued or delivered to the Holder under or  in connection here with pursuant to Rule 144, (C) if this Warrant Certificate, Warrant Shares or  any other such share of Common Stock are eligible for sale under Rule 144(b)(1), or (D) if such  legend is not required under applicable requirements of the Securities Act (including judicial  interpretations and pronouncements issued by the staff of the SEC) (collectively, the “Unrestricted  Conditions”). The Company shall at its own cost and expense cause its counsel to issue a legal  opinion to the Transfer Agent if required by such Transfer Agent to effect the issuance of Warrant  Shares or the or any other shares of equity securities issuable or deliverable under or in connection  with this Warrant Certificate, as applicable, without a restrictive legend or removal of the legend  hereunder.  If the Unrestricted Conditions are met at the time of issuance of this Warrant  Certificate, the Warrant Shares or such other shares of equity securities, then this Warrant  Certificate, Warrant Shares or other equity securities, as the case may be, shall be issued free of  all legends.    (iii) Replacement Warrant Certificate.  The Company agrees that at such time  as the Unrestricted Conditions have been satisfied it shall promptly (but in any event within three  (3) Business Days) following written request from the Holder issue a replacement Warrant  Certificate or replacement Warrant Shares or replacement shares in respect of such other Common  Stock, as the case may be, free of all restrictive legends.  

 

19  (iv) Sale of Unlegended Shares.  The Holder agrees that the removal of the  restrictive legend from this Warrant Certificate and any certificates representing securities as set  forth in Section 12(a)(ii) above is predicated upon the Company’s reliance that the Holder will  sell this Warrant Certificate or any such securities pursuant to either an effective Registration  Statement or otherwise pursuant to the requirements of the Securities Act, including any applicable  prospectus delivery requirements, or an exemption therefrom, and that if such securities are sold  pursuant to a Registration Statement, they will be sold in compliance with the plan of distribution  set forth therein.  (b) Representations of the Holder.  In connection with the issuance of this Warrant  Certificate, the Holder specifically represents, as of the date hereof, to the Company by acceptance  of this Warrant Certificate as follows:  (i) The Holder is an “accredited investor” as defined in Rule 501 of Regulation  D promulgated under the Securities Act.  The Holder is acquiring this Warrant Certificate and the  Warrant Shares to be issued upon exercise hereof for investment for its own account and not with  a view towards, or for resale in connection with, the public sale or distribution of this Warrant  Certificate or the Warrant Shares, except pursuant to sales registered or exempted under the  Securities Act.    (ii) The Holder understands and acknowledges that this Warrant Certificate and  the Warrant Shares to be issued upon exercise hereof are “restricted securities” under the federal  securities laws inasmuch as they are being acquired from the Company in a transaction not  involving a public offering and that, under such laws and applicable regulations, such securities  may be resold without registration under the Securities Act only in certain limited circumstances.   In addition, the Holder represents that it is familiar with Rule 144 under the Securities Act, as  presently in effect, and understands the resale limitations imposed thereby and by the Securities  Act.  (iii) The Holder acknowledges that it can bear the economic and financial risk  of its investment for an indefinite period, and has such knowledge and experience in financial or  business matters that it is capable of evaluating the merits and risks of the investment in this  Warrant Certificate and the Warrant Shares.  The Holder has had an opportunity to ask questions  and receive answers from the Company regarding the terms and conditions of the offering of this  Warrant Certificate and the business, properties, prospects and financial condition of the Company.  Section 13. Representations, Warranties and Covenants of the Company.  The Company  represents, warrants and covenants to the Holder that:   (i) the Company has the legal capacity or corporate power and authority to  enter into this Warrant Certificate and to carry out its obligations hereunder.  The Company is duly  organized and validly existing under the laws of its jurisdiction of organization, and the execution  of this Warrant Certificate and the consummation of the transactions contemplated herein have  been duly authorized by all necessary action. No other act or proceeding, corporate or otherwise,  on its part is necessary to authorize the execution of this Warrant Certificate or the consummation  of any of the transactions contemplated hereby thereby. This Warrant Certificate has been duly  

 

20  executed by the Company and constitutes its legal, valid and binding obligation, enforceable  against it in accordance with the terms of this Warrant Certificate;   (ii) no consent, waiver, approval, authorization, exemption, registration, license  or declaration is required to be made or obtained by the Company, other than those which have  been made or obtained, in connection with (i) the execution or enforceability of this Warrant  Certificate or (ii) the consummation of any of the transactions contemplated hereby;  (iii) as of the date hereof, and after giving effect to the transactions contemplated  hereby, Schedule I to the Original Warrant Certificate set forth (a) the authorized capital stock of  the Company; (b) the number of shares of capital stock issued and outstanding; (c) the number of  shares of capital stock issuable pursuant to the Company’s stock plans; and (d) the number of  shares of capital stock issuable and reserved for issuance pursuant to securities exercisable for, or  convertible into or exchangeable for any shares of capital stock of the Company. All of the issued  and outstanding shares of capital stock of the Company have been duly authorized and are validly  issued, are fully paid and nonassessable and, as of the Issue Date and except as set forth on  Schedule I are not subject to any preemptive rights, rights of first refusal or similar rights, and  were issued in compliance with applicable state and federal securities laws and any rights of third  parties. Except as described on Schedule I, as of the Issue Date, there are no outstanding warrants,  options, convertible securities or other rights, agreements or arrangements of any character under  which the Company and any of its subsidiaries is or may be obligated to issue any equity securities  of any kind and neither the Company nor any of its subsidiaries is currently in negotiations for the  issuance of any equity securities of any kind;  (iv) all Warrant Shares issuable and deliverable pursuant to this Warrant  Certificate shall, upon issuance and the payment of the applicable Exercise Price in accordance  with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable and  free from all taxes, liens and charges created by the Company in respect of the original issuance  thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue);  (v) the issuance of this Warrant Certificate shall constitute full authority to its  officers who are charged with the duty of executing stock certificates to execute and issue the  necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this  Warrant Certificate;  (vi) the Warrant Shares, when issued and paid for in accordance with the terms  of this Warrant Certificate, will be issued free and clear of all security interests, claims, liens and  other encumbrances other than restrictions imposed by applicable securities laws;  (vii) the Company will take all such action as may be reasonably necessary to  assure that the shares constituting Warrant Shares may be issued as provided herein without  violation of any applicable law or regulation, or of any requirements of any securities exchange or  automated quotation system upon which the shares constituting Warrant Shares may be listed.    Section 14. Notices.  All notices, requests, consents, claims, demands, waivers and other  communications hereunder shall be in writing and shall be deemed to have been given: (a) when  delivered by hand (with written confirmation of receipt); (b) when received by the addressee if  

 

21  sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by  facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal  business hours of the recipient, and on the next Business Day if sent after normal business hours  of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return  receipt requested, postage prepaid.  Such communications must be sent to the respective parties at  the addresses indicated below (or at such other address for a party as shall be specified in a notice  given in accordance with this Section 14).    If to the Company: IsoPlexis Corporation  35 Northeast Industrial Road  Branford, Connecticut 06405  Attention: John Strahley  E-mail: john.strahley@isoplexis.com      with a copy to: Wiggin and Dana LLP  One Century Tower  265 Church Street  New Haven, Connecticut 06510  Attention: Evan Kipperman  E-mail: ekipperman@wiggin.com    If to the Holder: Perceptive Credit Holdings III, LP  c/o Perceptive Advisors LLC  51 Astor Place, 10th Floor  New York, NY 10003  Attention: Sandeep Dixit  E-mail: Sandeep@perceptivelife.com   PCOFReporting@perceptivelife.com     with a copy to: Chapman and Cutler LLP   1270 Avenue of the Americas   New York, NY 10020   Attention: Nicholas Whitney   whitney@chapman.com    Section 15. Cumulative Remedies.  Except to the extent expressly provided in Section 8 to  the contrary, the rights and remedies provided in this Warrant Certificate are cumulative and are  not exclusive of, and are in addition to and not in substitution for, any other rights or remedies  available at law, in equity or otherwise.    Section 16. Equitable Relief.  Each of the Company and the Holder acknowledges that a  breach or threatened breach by such party of any of its obligations under this Warrant Certificate  would give rise to irreparable harm to the other party hereto for which monetary damages would  not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach  by such party of any such obligations, the other party hereto shall, in addition to any and all other  rights and remedies that may be available to it in respect of such breach, be entitled to seek  

 

22  equitable relief, including a restraining order, an injunction, specific performance and any other  relief that may be available from a court of competent jurisdiction.  The Holder and the Company  further acknowledge and agree that (i) the amount of loss or damages likely to be incurred by the  Holder as a result of the Company’s breach of any its obligations hereunder is incapable or is  difficult to precisely estimate and (ii) the parties hereto are sophisticated business parties and have  been represented by sophisticated and able legal and financial counsel and negotiated this  Agreement at arm’s length.  Section 17. Entire Agreement.  This Warrant Certificate constitutes the sole and entire  agreement of the parties to this Warrant Certificate with respect to the subject matter contained  herein, and supersedes all prior and contemporaneous understandings and agreements, both written  and oral, with respect to such subject matter.    Section 18. Successor and Assigns.  This Warrant Certificate and the rights evidenced hereby  shall be binding upon and shall inure to the benefit of the parties hereto and the successors of the  Company and the successors and permitted assigns of the Holder.  Such successors and/or  permitted assigns of the Holder shall be deemed to be a “Holder” for all purposes hereunder.    Section 19. No Third-Party Beneficiaries.  This Warrant Certificate is for the sole benefit of  the Company and the Holder and their respective successors and, in the case of the Holder,  permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any  other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by  reason of this Warrant Certificate.  Section 20. Headings.  The headings in this Warrant Certificate are for reference only and shall  not affect the interpretation of this Warrant Certificate.  Section 21. Amendment and Modification; Waiver.  Except as otherwise provided herein,  this Warrant Certificate may only be amended, modified or supplemented by an agreement in  writing signed by each party hereto.  No waiver by the Company or the Holder of any of the  provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so  waiving.  No waiver by any party shall operate or be construed as a waiver in respect of any failure,  breach or default not expressly identified by such written waiver, whether of a similar or different  character, and whether occurring before or after that waiver.  No failure to exercise, or delay in  exercising, any rights, remedy, power or privilege arising from this Warrant Certificate shall  operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right,  remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise  of any other right, remedy, power or privilege.    Section 22. Severability.  If any term or provision of this Warrant Certificate is invalid, illegal  or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect  any other term or provision of this Warrant Certificate or invalidate or render unenforceable such  term or provision in any other jurisdiction.    Section 23. Governing Law.  This Warrant Certificate shall be governed by and construed in  accordance with the internal laws of the State of New York without giving effect to any choice or  

 

23  conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that  would cause the application of laws of any jurisdiction other than those of the State of New York.    Section 24. Submission to Jurisdiction.  Any legal suit, action or proceeding arising out of or  based upon this Warrant Certificate or the transactions contemplated hereby may be instituted in  the federal courts of the United States of America or the courts of the State of New York in each  case located in the city of New York and County of New York, and each party irrevocably submits  to the exclusive jurisdiction of such courts in any such suit, action or proceeding.  Service of  process, summons, notice or other document by certified or registered mail to such party’s address  set forth herein shall be effective service of process for any suit, action or other proceeding brought  in any such court.  The parties irrevocably and unconditionally waive any objection to the laying  of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not  to plead or claim in any such court that any such suit, action or proceeding brought in any such  court has been brought in an inconvenient forum.  Section 25. Waiver of Jury Trial.  EACH OF THE COMPANY AND THE HOLDER  ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS  WARRANT CERTIFICATE IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND,  THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT  MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR  RELATING TO THIS WARRANT CERTIFICATE OR THE TRANSACTIONS CONTEMPLATED HEREBY.  Section 26. Counterparts.  This Warrant Certificate may be executed in counterparts, each of  which shall be deemed an original, but all of which together shall be deemed to be one and the  same agreement.  A signed copy of this Warrant Certificate delivered by facsimile, e-mail or other  means of electronic transmission shall be deemed to have the same legal effect as delivery of an  original signed copy of this Warrant Certificate.  Section 27. No Strict Construction.  This Warrant Certificate shall be construed without  regard to any presumption or rule requiring construction or interpretation against the party drafting  an instrument or causing any instrument to be drafted.    [SIGNATURE PAGE FOLLOWS]  

 

  Amended Warrant Signature Page  IN WITNESS WHEREOF, the Company has duly executed this Warrant Certificate on  the Amendment Date.  ISOPLEXIS CORPORATION      By _______________________________________  Name:  Title:  DocuSign Envelope ID: 3772F203-FF12-40EC-9873-4362F6E56143 John Strahley Chief Financial Officer 

 

  Amended Warrant Signature Page    Accepted and agreed,    PERCEPTIVE CREDIT HOLDINGS III, LP    By: Perceptive Credit Opportunities GP, LLC,   its general partner        By _______________________________________  Name: Sandeep Dixit  Title: Chief Credit Officer      By _______________________________________  Name: Sam Chawla  Title: Portfolio Manager  DocuSign Envelope ID: F5B9B0CC-3A9E-482D-94DA-85176B676379 

 

  A-1    Exhibit A   to Warrant Certificate  FORM OF EXERCISE CERTIFICATE  (To be signed only upon exercise of Warrant Certificate)    To: ________________  The undersigned, as holder of a right to purchase shares of Common Stock of IsoPlexis  Corporation, a Delaware corporation (the “Company”), pursuant to that certain Warrant Certificate  of the Company, dated as of December 30, 2020 and bearing Warrant Certificate No. [__] (the  “Warrant Certificate”), hereby irrevocably elects to exercise the purchase right represented by  such Warrant Certificate for, and to purchase thereunder, [________ (_____)] shares of Common  Stock of the Company and herewith makes payment of [___________ Dollars ($________)]  therefor by the following method:  (Check all that apply):  ______ (check if applicable) The undersigned hereby elects to make payment of the  Aggregate Exercise Price of [__________ Dollars ($_______)] for [(______)] shares of Common  Stock using the method described in Section 3(b)(i).  ______ (check if applicable) The undersigned hereby elects to make payment of the  Aggregate Exercise Price of [__________ Dollars ($_______)] for [(______)] shares of Common  Stock using the method described in Section 3(b)(ii).  ______ (check if applicable) The undersigned hereby elects to make payment of the  Aggregate Exercise Price of [__________ Dollars ($_______)] for [(______)] shares of Common  Stock using the method described in Section 3(b)(iii).    Unless otherwise defined herein, capitalized terms have the meanings provided in the  Warrant Certificate.  DATED: ______________  PERCEPTIVE CREDIT HOLDINGS III, LP    By _______________________________________  Name:  Title:  

 

  B-1     Exhibit B  to Warrant Certificate  FORM OF ASSIGNMENT  THE UNDERSIGNED, Perceptive Credit Holdings III, LP, is the holder (in such capacity,  the “Holder”) of a warrant certificate issued by IsoPlexis Corporation, a Delaware corporation (the  “Company”), bearing Warrant Certificate No.  [__] (the “Warrant Certificate”), entitling the  Holder to purchase up to [___] shares of the Company’s Common Stock.  Unless otherwise  defined, capitalized terms used herein have the meanings ascribed thereto in the Warrant  Certificate.    FOR VALUE RECEIVED, the Holder hereby sells, assigns and transfers to [NAME OF  ASSIGNEE] (the “Assignee”) the right to acquire [all Warrant Shares entitled to be purchased  upon exercise of the Warrant Certificate] [______ of the Warrant Shares entitled to be purchased  upon exercise of the Warrant Certificate].  In furtherance of the foregoing assignment, the Holder  hereby irrevocably instructs the Company to (i) memorialize such assignment on the Warrant  Register as required pursuant to Section 7 of the Warrant Certificate, and (ii) pursuant to Section 8  of the Warrant Certificate, execute and deliver to the Assignee [and the Holder] a new Warrant  Certificate [new Warrant Certificates] reflecting the foregoing assignment ([each] a “Substitute  Warrant Certificate”).    The Assignee acknowledges and agrees that its Substitute Warrant Certificate and the  Warrant Shares to be issued upon exercise thereof are being acquired for investment and that the  Assignee will not offer, sell or otherwise dispose of its Substitute Warrant Certificate or any  Warrant Shares to be issued upon exercise or conversion thereof except under circumstances which  will not result in a violation of the Securities Act or any applicable state securities laws.  The  Assignee represents and warrants for the benefit of the Company that the Assignee is an  “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the  Securities Act of 1933, as amended.  To the extent required pursuant to Section 12 of the Warrant Certificate, the Assignee  acknowledges and agrees that a restrictive legend shall be applied to the Assignee’s Substitute  Warrant and the Warrant Shares issuable upon exercise of such certificate substantially consistent  with the legend set forth in Section 12(a)(i).         [SIGNATURE PAGE FOLLOWS]     

 

B-2  PERCEPTIVE CREDIT HOLDINGS III, LP      By _______________________________________  Name:  Title:    Accepted and agreed,    [NAME OF ASSIGNEE]      By _______________________________________  Name:  Title:isoplexis-3rdamendmentth

EXECUTION VERSION  4886-8962-4086  7027014  THIRD AMENDMENT TO CREDIT AGREEMENT AND GUARANTY  This Third Amendment to Credit Agreement and Guaranty (herein, this “Agreement”) is  entered into as of March 30, 2022 (the “Third Amendment Effective Date”), by and among  IsoPlexis Corporation, a Delaware corporation (the “Borrower”), the Lenders party hereto (each  a “Lender” and collectively, the “Lenders”) and Perceptive Credit Holdings III, LP, a Delaware  limited partnership, as a lender and as administrative agent for the Lenders (in such capacity,  together with its successors and assigns, the “Administrative Agent”).  R E C I T A L S:   A. The Lenders have extended credit to the Borrower on the terms and conditions set  forth in that certain Credit Agreement and Guaranty, dated as of December 30, 2020 (the  “Existing Credit Agreement”; the Existing Credit Agreement as amended by the First  Amendment to Credit Agreement and Guaranty, dated as of May 27, 2021, the Second  Amendment to Credit Agreement and Guaranty, dated as of October 29, 2021, and this  Agreement, the “Credit Agreement”).       B.  The Borrower has requested that the Administrative Agent and the Lenders agree to  amend certain provisions of the Existing Credit Agreement.    C.  The parties hereto agree to amend the Existing Credit Agreement pursuant to the  terms of this Agreement.  NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of  which is hereby acknowledged, the parties hereto agree as follows:    1. Incorporation of Recitals; Defined Terms.  The parties hereto acknowledge that  the Recitals set forth above are true and correct in all material respects.  The defined terms in the  Recitals set forth above are hereby incorporated into this Agreement by reference.  All other  capitalized terms used herein without definition shall have the same meanings herein as such  terms have in the Credit Agreement.     2. Third Amendment to Existing Credit Agreement.  Upon satisfaction of the  conditions set forth in Section 5 hereof, the Borrower, the Lenders and the Administrative Agent  hereby agree that the Existing Credit Agreement is hereby amended by incorporating the changes  shown on the marked copy of the Existing Credit Agreement attached hereto as Annex A.   Deletions of text in the Existing Credit Agreement as amended hereby are indicated by struck- through red text, and insertions of text as amended hereby are indicated by underlined blue text.   Attached hereto as Annex B is a clean copy of the Credit Agreement conformed through the  Third Amendment.  Exhibit B to the Existing Credit Agreement is hereby amended and replaced  in its entirety with the Exhibit B attached hereto as Annex C. Schedule 1 to the Existing Credit  Agreement is hereby amended and replaced in its entirety with Schedule 1 hereto.       3. Acknowledgement of Liens.  The Borrower hereby acknowledges and agrees that  the Obligations owing to the Administrative Agent and the Lenders arising out of or in any  

 

-2-  manner relating to the Loan Documents shall continue to be secured by the Liens granted as  security therefor in the Loan Documents, to the extent provided for in the Loan Documents  heretofore executed and delivered by the Borrower; and nothing herein contained shall in any  manner affect or impair the priority of the Liens created and provided for thereby as to the  indebtedness, obligations, and liabilities which would be secured thereby prior to giving effect to  this Agreement.      4. Representations And Warranties.  In order to induce the Administrative Agent  and the Lenders to enter into this Agreement, the Borrower hereby represents and warrants to the  Administrative Agent and the Lenders as follows:  (A) After giving effect to this Agreement, the representations and warranties  of the Borrower contained in Article 7 of the Credit Agreement and in each other Loan  Document shall be true and correct in all material respects on and as of the date hereof;  provided that to the extent that such representations and warranties specifically refer to an  earlier date, they shall be true and correct in all material respects as of such earlier date;  provided further that any representation and warranty that is qualified as to “materiality”,  “Material Adverse Effect” or similar language shall be true and correct (after giving effect  to any qualification therein) in all respects on such respective dates.   (B) The execution, delivery and performance of this Agreement has been duly  authorized by all necessary corporate action on the part of, and duly executed and  delivered by, the Borrower.    (C) No Default or Event of Default has occurred and is continuing or shall  occur and be continuing immediately after giving effect to this Agreement.     5. Conditions Precedent.  The effectiveness of this Agreement is subject to the  satisfaction of the following conditions precedent:  (A) The Administrative Agent and the Lenders shall have received executed  counterparts of this Agreement duly executed and delivered by the Borrower.  (B) The Administrative Agent and the Lenders shall have received (i) certified  copies of the Organizational Documents of Borrower and resolutions of the board of  directors (or similar governing body or committee of the board of directors, as applicable)  of Borrower approving and authorizing the execution, delivery and performance of this  Third Amendment and the Amended and Restated Warrant Certificate, certified as of the  Third Amendment Effective Date by its secretary or assistant secretary as being in full  force and effect without modification or amendment and (ii) a good standing certificate  and/or compliance certificate from the applicable Governmental Authority of Borrower’s  jurisdiction of formation, dated a recent date prior to the Third Amendment Effective  Date.  

 

-3-  (C) The Administrative Agent shall have received a Borrowing Notice, in  accordance with Section 2.01(c)(ii) of the Credit Agreement, requesting the Borrowing of  the Tranche C Loan duly executed by a Responsible Officer of Borrower.  (D) The Administrative Agent shall have received the duly executed Amended  and Restated Warrant Certificate that, among other things, grants the holder thereof the  right to purchase 811,374 shares of common stock of the Borrower.    6. Reference to and Effect on the Loan Documents; No Novation.  (A) This Agreement constitutes a Loan Document.  On and after the date  hereof, words of like import referring to the Credit Agreement, and each reference in the  other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of  like import referring to the Credit Agreement shall mean and be a reference to the Credit  Agreement after giving effect to this Agreement.  (B) Except as specifically set forth in this Agreement, the Credit Agreement  and the other Loan Documents shall remain in full force and effect and are hereby ratified  and confirmed.  (C) Except as expressly set forth in this Agreement, the Loan Documents and  all of the obligations of the Obligors thereunder and the rights and benefits of the  Administrative Agent and the Lenders thereunder remain in full force and effect. This  Agreement is not a novation nor is it to be construed as a release, waiver or modification  of any of the terms, conditions, representations, warranties, covenants, rights or remedies  set forth in the Loan Documents, except as specifically set forth herein. Without limiting  the foregoing, the Obligors agree to comply with all of the terms, conditions, and  provisions of the Loan Documents except to the extent such compliance is irreconcilably  inconsistent with the express provisions of this Agreement. This Agreement may not be  amended, supplemented, or otherwise modified except by a written agreement entered into  in accordance with Section 13.04 of the Credit Agreement. THIS AGREEMENT REPRESENTS  THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY  EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE  PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.    7. Headings.  The headings in this Agreement are included for convenience of  reference only and will not affect in any way the meaning or interpretation of this Agreement.    8. Governing Law.  This Agreement, and all questions concerning the construction,  validity, enforcement and interpretation of this Agreement shall be governed by and construed  and enforced in accordance with the internal laws of the State of New York.    9.  Incorporation of Sections 13.10 and 13.11 of the Credit Agreement.  The  provisions set forth in Sections 13.10 (Jurisdiction, Service of Process and Venue) and 13.11  (Waiver of Jury Trial) of the Credit Agreement shall apply to this Agreement in all respects.    

 

-4-  10. 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,  shall be deemed to be an original, and all of which, when taken together, shall constitute but one  and the same Agreement.  Delivery of an executed counterpart of this Agreement by facsimile,  DocuSign or a scanned copy by electronic mail shall be equally as effective as delivery of an  original executed counterpart of this Agreement.     11. Severability.  If any term or other provision of this Agreement is invalid, illegal or  incapable of being enforced by any rule of law, or public policy, all other conditions and  provisions of this Agreement will nevertheless remain in full force and effect so long as the  economic or legal substance of the transactions contemplated hereby is not affected in any  manner adverse to any party.  Upon such determination that any term or other provision is  invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to  modify this Agreement so as to effect the original intent of the parties as closely as possible in an  acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent  possible.      12. Binding Effect.  This Agreement will be binding upon and inure to the benefit of  and is enforceable by the respective successors and permitted assigns of the parties hereto.    [SIGNATURE PAGES TO FOLLOW]  

 

[Signature Page to Third Amendment to Credit Agreement and Guaranty]  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly  executed and delivered by their respective officers thereunto duly authorized as of the date first  written above.  ISOPLEXIS CORPORATION, as Borrower  By: ___________________________________    Name:   Title:      DocuSign Envelope ID: 3772F203-FF12-40EC-9873-4362F6E56143 John Strahley Chief Financial Officer 

 

[Signature Page to Third Amendment to Credit Agreement and Guaranty]      PERCEPTIVE CREDIT HOLDINGS III, LP,  as Administrative Agent and Lender    By:  Perceptive Credit Opportunities GP, LLC,  its general partner  By: ___________________________________    Name: Sandeep Dixit   Title: Chief Credit Officer     By: ___________________________________    Name: Sam Chawla   Title: Portfolio Manager       DocuSign Envelope ID: F5B9B0CC-3A9E-482D-94DA-85176B676379 

 

  SCHEDULE 1      SCHEDULE 1  TO   CREDIT AGREEMENT  TRANCHE A LOAN COMMITMENTS  LENDER TRANCHE LOAN A COMMITMENT  Perceptive Credit Holdings III, LP $25,000,000  TOTAL $25,000,000    TRANCHE B LOAN COMMITMENTS  LENDER TRANCHE LOAN B COMMITMENT  Perceptive Credit Holdings III, LP $10,000,000  TOTAL $10,000,000     TRANCHE C LOAN COMMITMENTS  LENDER TRANCHE LOAN C COMMITMENT  Perceptive Credit Holdings III, LP $7,500,000  TOTAL $7,500,000  TRANCHE D LOAN COMMITMENTS  LENDER TRANCHE LOAN D COMMITMENT  Perceptive Credit Holdings III, LP $7,500,000  TOTAL $7,500,000  WARRANT SHARES  LENDER NUMBER OF WARRANT SHARES  Perceptive Credit Holdings III, LP 811,374  TOTAL 811,374  

 

        ANNEX A    Marked Credit Agreement  

 

EXECUTION VERSION 4853-2066-2739  7027014 CREDIT AGREEMENT AND GUARANTY1 DATED AS OF DECEMBER 30, 2020 AMONG ISOPLEXIS CORPORATION, AS BORROWER, THE GUARANTORS FROM TIME TO TIME PARTY HERETO, AS GUARANTORS, THE LENDERS FROM TIME TO TIME PARTY HERETO, AS LENDERS, AND PERCEPTIVE CREDIT HOLDINGS III, LP, AS ADMINISTRATIVE AGENT AND AS A LENDER $50,000,000 1 Conformed to reflect changes from the First Amendment to Credit Agreement and Guaranty, dated as of May 27,  2021, andthe Second Amendment to Credit Agreement and Guaranty, dated as of October 29, 2021 and the  Third Amendment to Credit Agreement and Guaranty, dated as of March 30, 2022.  

 

-i- TABLE OF CONTENTS SECTION HEADING PAGE ARTICLE I DEFINITIONS .................................................................................................1 Section 1.01. Certain Defined Terms...........................................................................1 Section 1.02. Accounting Terms and Principles........................................................25 Section 1.03. Interpretation........................................................................................25 Section 1.04. Divisions ..............................................................................................26 ARTICLE 2 THE COMMITMENTS....................................................................................26 Section 2.01. Loans....................................................................................................26 Section 2.02. Proportionate Shares ............................................................................28 Section 2.03. Fees ......................................................................................................28 Section 2.04. Notes ................................................................................................2829 Section 2.05. Use of Proceeds................................................................................2829 ARTICLE 3 PAYMENTS OF PRINCIPAL AND INTEREST ................................................2829 Section 3.01. Repayment .......................................................................................2829 Section 3.02. Interest..................................................................................................29 Section 3.03. Prepayments.........................................................................................30 ARTICLE 4 PAYMENTS, ETC..........................................................................................33 Section 4.01. Payments ..............................................................................................33 Section 4.02. Computations .......................................................................................34 Section 4.03. Notices .................................................................................................34 Section 4.04. Set-Off..................................................................................................34 ARTICLE 5 YIELD PROTECTION, ETC. ...........................................................................34 Section 5.01. Additional Costs ..................................................................................34 Section 5.02. Illegality ...........................................................................................3536 Section 5.03. Taxes ....................................................................................................36 Section 5.04. Delay in Requests ................................................................................40 ARTICLE 6 CONDITIONS PRECEDENT ............................................................................40 Section 6.01. Conditions to Tranche A Loan; Closing Date......................................40 Section 6.02. Conditions to Tranche B Loan; Tranche B Loan Borrowing Date......43 Section 6.03. Conditions to Tranche C Loan; Tranche C Loan Borrowing Date..4344 Section 6.04. Conditions to Tranche D Loan; Tranche D Loan Borrowing Date .....44 ARTICLE 7 REPRESENTATIONS AND WARRANTIES....................................................4445 Section 7.01. Power and Authority ........................................................................4546 Section 7.02. Authorization; Enforceability ..........................................................4546 

 

-ii- Section 7.03. Governmental and Other Approvals; No Conflicts .........................4546 Section 7.04. Financial Statements; Projections; Material Adverse Change.........4546 Section 7.05. Properties .........................................................................................4647 Section 7.06. No Actions or Proceedings ..............................................................4748 Section 7.07. Compliance with Laws and Agreements .........................................4849 Section 7.08. Taxes ................................................................................................4849 Section 7.09. Full Disclosure .................................................................................4849 Section 7.10. Regulation ........................................................................................4849 Section 7.11. Solvency...........................................................................................4950 Section 7.12. Subsidiaries ......................................................................................4950 Section 7.13. Indebtedness and Liens ....................................................................4950 Section 7.14. Material Agreements........................................................................4950 Section 7.15. Restrictive Agreements....................................................................4950 Section 7.16. Real Property ...................................................................................4950 Section 7.17. Pension and Other Plans ..................................................................4950 Section 7.18. Collateral; Security Interest .............................................................5051 Section 7.19. Capitalization ...................................................................................5051 Section 7.20. Insurance ..........................................................................................5051 Section 7.21. Certain Fees .....................................................................................5051 Section 7.22. Sanctions Laws ................................................................................5152 Section 7.23. Anti-Corruption Laws......................................................................5152 Section 7.24. Anti-Terrorism Laws .......................................................................5152 ARTICLE 8 AFFIRMATIVE COVENANTS AND FINANCIAL COVENANTS.......................5152 Section 8.01. Financial Statements and Other Information ...................................5152 Section 8.02. Notices of Material Events...............................................................5455 Section 8.03. Existence; Maintenance of Properties, Etc ......................................5657 Section 8.04. Payment of Obligations....................................................................5758 Section 8.05. Insurance ..........................................................................................5758 Section 8.06. Books and Records; Inspection Rights ............................................5758 Section 8.07. Compliance with Laws ....................................................................5859 Section 8.08. Licenses............................................................................................5859 Section 8.09. Action under Environmental Laws ..................................................5859 Section 8.10. Use of Proceeds................................................................................5859 Section 8.11. Certain Obligations Respecting Subsidiaries; Further Assurances;  Intellectual Property.........................................................................5859 Section 8.12. Termination of Non-Permitted Liens...............................................6061 Section 8.13. Non-Consolidation...........................................................................6061 Section 8.14. Anti-Terrorism and Anti-Corruption Laws......................................6061 Section 8.15. Financial Covenants.........................................................................6061 Section 8.16. Maintenance of Material Agreements, Intellectual Property, Etc....6162 Section 8.17. Cash Management............................................................................6162 Section 8.18. Board Observer Rights.....................................................................6263 Section 8.19. Post-Closing Obligations .................................................................6263 

 

-iii- ARTICLE 9 NEGATIVE COVENANTS ..........................................................................6263 Section 9.01. Indebtedness.....................................................................................6263 Section 9.02. Liens.................................................................................................6364 Section 9.03. Fundamental Changes and Acquisitions..........................................6566 Section 9.04. Lines of Business .............................................................................6566 Section 9.05. Investments ......................................................................................6667 Section 9.06. Restricted Payments.........................................................................6768 Section 9.07. Payments of Indebtedness................................................................6769 Section 9.08. Change in Fiscal Year......................................................................6869 Section 9.09. Sales of Assets, Etc ..........................................................................6869 Section 9.10. Transactions with Affiliates.............................................................6970 Section 9.11. Restrictive Agreements....................................................................6970 Section 9.12. Organizational Documents, Material Agreements...........................6970 Section 9.13. Operating Leases..............................................................................7071 Section 9.14. Sales and Leasebacks.......................................................................7071 Section 9.15. Hazardous Material..........................................................................7071 Section 9.16. Accounting Changes ........................................................................7071 Section 9.17. Compliance with ERISA..................................................................7071 Section 9.18. Deposit Accounts .............................................................................7071 Section 9.19. Outbound Licenses...........................................................................7071 Section 9.20. Inbound Licenses .............................................................................7072 ARTICLE 10 EVENTS OF DEFAULT ..............................................................................7172 Section 10.01. Events of Default .............................................................................7172 Section 10.02. Remedies..........................................................................................7374 Section 10.03. Prepayment Premium and Redemption Price ..................................7475 ARTICLE 11 GUARANTEE............................................................................................7475 Section 11.01. The Guarantee..................................................................................7475 Section 11.02. Obligations Unconditional ...............................................................7475 Section 11.03. Reinstatement...................................................................................7576 Section 11.04. Subrogation ......................................................................................7577 Section 11.05. Remedies..........................................................................................7677 Section 11.06. Instrument for the Payment of Money .............................................7677 Section 11.07. Continuing Guarantee ......................................................................7677 Section 11.08. Rights of Contribution .....................................................................7677 Section 11.09. General Limitation on Guarantee Obligations.................................7778 ARTICLE 12 ADMINISTRATIVE AGENT........................................................................7778 Section 12.01. Appointment ....................................................................................7778 Section 12.02. Rights as a Lender............................................................................7778 Section 12.03. Exculpatory Provisions ....................................................................7879 Section 12.04. Reliance by Administrative Agent...................................................7980 Section 12.05. Delegation of Duties ........................................................................7980 

 

-iv- Section 12.06. Resignation of Agent .......................................................................7980 Section 12.07. Non-Reliance on Administrative Agent and Other Lenders............8081 Section 12.08. Administrative Agent May File Proofs of Claim.............................8081 Section 12.09. Collateral and Guaranty Matters; Appointment of Administrative Agent ..........................................................................................................8182 ARTICLE 13 MISCELLANEOUS ....................................................................................8283 Section 13.01. No Waiver........................................................................................8283 Section 13.02. Notices .............................................................................................8283 Section 13.03. Expenses, Indemnification, Etc........................................................8283 Section 13.04. Amendments, Etc.............................................................................8384 Section 13.05. Successors and Assigns....................................................................8485 Section 13.06. Survival ............................................................................................8788 Section 13.07. Captions ...........................................................................................8788 Section 13.08. Counterparts.....................................................................................8788 Section 13.09. GOVERNING LAW........................................................................8788 Section 13.10. JURISDICTION, SERVICE OF PROCESS AND VENUE ...........8889 Section 13.11. WAIVER OF JURY TRIAL............................................................8889 Section 13.12. WAIVER OF IMMUNITY..............................................................8889 Section 13.13. Entire Agreement .............................................................................8990 Section 13.14. Severability ......................................................................................8990 Section 13.15. No Fiduciary Relationship ...............................................................8990 Section 13.16. USA Patriot Act ...............................................................................8990 Section 13.17. Treatment of Certain Information; Confidentiality..........................8990 Section 13.18. Releases of Guarantees and Liens....................................................9091 Section 13.19. Acknowledgement and Consent to Bail-In of Affected Financial  Institutions .......................................................................................9192 SCHEDULES: SCHEDULE 1 — Commitments and Warrant Shares SCHEDULE 2 — Notice Addresses SCHEDULE 7.03 — Certain Consents SCHEDULE 7.05(b) — Obligor Intellectual Property SCHEDULE 7.12 — Subsidiaries SCHEDULE 7.13A — Existing Indebtedness SCHEDULE 7.13B — Existing Liens SCHEDULE 7.14 — Material Agreements SCHEDULE 7.15 — Restrictive Agreements SCHEDULE 7.16 — Real Property SCHEDULE 7.17 — Pension Matters SCHEDULE 7.19 — Capitalization SCHEDULE 7.21 — Broker’s Fee SCHEDULE 8.19 — Post-Closing Obligations SCHEDULE 9.05 — Existing Investments SCHEDULE 9.10 — Transactions with Affiliates 

 

-v- EXHIBITS: EXHIBIT A — Form of Guarantee Assumption Agreement EXHIBIT B — Form of Borrowing Notice EXHIBIT C — Form of Note EXHIBIT D — Form of U.S. Tax Compliance Certificate EXHIBIT E — Form of Compliance Certificate EXHIBIT F — Form of Assignment Agreement EXHIBIT G — Form of Security Agreement EXHIBIT H-1 — Form of Patent & Trademark Security Agreement EXHIBIT H-2 — Form of Copyright Security Agreement EXHIBIT I — Form of Collateral Questionnaire 

 

CREDIT AGREEMENT AND GUARANTY, dated as of December 30, 2020 (this “Agreement”),  among ISOPLEXIS CORPORATION, a Delaware corporation (“Borrower”), certain Guarantors from  time to time parties hereto, the lenders from time to time party hereto (each, as a “Lender” and  collectively, the “Lenders”), and PERCEPTIVE CREDIT HOLDINGS III, LP, a Delaware limited  partnership (“Perceptive”), as administrative agent for the Lenders (in such capacity, together  with its successors and assigns, the “Administrative Agent”). WITNESSETH: Borrower has requested the Lenders to make term loans to Borrower, and the Lenders are  prepared to make such loans on and subject to the terms and conditions hereof.  Accordingly, the  parties agree as follows: ARTICLE I DEFINITIONS Section 1.01. Certain Defined Terms.  As used herein, the following terms have the  following respective meanings: “Accounting Change” has the meaning set forth in Section 1.02. “Accounting Change Notice” has the meaning set forth in Section 1.02. “Acquisition” means any transaction, or any series of related transactions, by which any  Person directly or indirectly, by means of a take-over bid, tender offer, amalgamation, merger,  purchase of assets, or similar transaction having the same effect as any of the foregoing, (a)  acquires all or substantially all of the assets of any Person engaged in any business, (b) acquires all  or substantially all of a business line or unit or division of any other Person, (c) acquires control of  securities of a Person engaged in a business representing more than 50% of the ordinary voting  power for the election of directors or other governing body if the business affairs of such Person  are managed by a Board or other governing body, or (d) acquires control of more than 50% of the  ownership interest in any Person engaged in any business that is not managed by a Board or other  governing body. “Act” has the meaning set forth in Section 13.16. “Administrative Agent” has the meaning set forth in the introduction hereto. “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution. “Affiliate” means, with respect to a specified Person, another Person that directly, or  indirectly through one or more intermediaries, Controls or is Controlled by or is under common  

 

-2- Control with the Person specified. “Agreement” has the meaning set forth in the introduction hereto. “Amended and Restated Warrant Certificate” means the amended and restated warrant,  delivered to the Administrative Agent on the Third Amendment Effective Date that, among other  things, grants the holder thereof the right to purchase the number of shares of common stock of  Borrower as indicated on the Warrant Shares table on Schedule 1, as the Amended and Restated  Warrant Certificate may be further amended, replaced or otherwise modified pursuant to the terms  thereof. “Anti-Corruption Laws” means all laws, rules and regulations of any jurisdiction  applicable to the Obligors and their Affiliates concerning or relating to bribery or corruption,  including, without limitation, the Foreign Corrupt Practices Act of 1977, as amended. “Anti-Terrorism Laws” means any laws or regulations relating to terrorism or money  laundering, including, without limitation the Bank Secrecy Act (31 U.S.C. §§ 5311 et seq.), the  Money Laundering Control Act of 1986 (18 U.S.C. §§ 1956 et seq.), the USA Patriot Act and any  similar law enacted in the United States after the date of this Agreement. “Applicable Margin” means 9.50% per annum, as such percentage may be increased by  Section 3.02(d). “Approved Fund” means any Person (other than a natural person) that is engaged in  making, purchasing, holding or investing in bank loans and similar extensions of credit in the  ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate  of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. “Asset Sale” has the meaning set forth in Section 9.09. “Assignment Agreement” means an assignment and assumption entered into by a Lender  and an assignee of such Lender in substantially the form of Exhibit F. “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution. “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the  European Union, the implementing law, regulation, rule or requirement for such EEA Member  Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with  respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from  time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the  resolution of unsound or failing banks, investment firms or other financial institutions or their  affiliates (other than through liquidation, administration or other insolvency proceedings). “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy.” 

 

-3- “Beneficial Ownership Regulation” has the meaning set forth in Section 13.16. “Benefit Plan” means any employee benefit plan as defined in Section 3(3) of ERISA to  which any Obligor or Subsidiary thereof incurs or otherwise has any obligation or liability,  contingent or otherwise. “Board” means, with respect to any Person, the board of directors (or equivalent  governing body) of such Person or any Committee thereof. “Borrower” has the meaning set forth in the introduction hereto. “Borrowing” means a borrowing consisting of a Tranche A Loan made by the Lenders on  the Closing Date, a Tranche B Loan made by the Lenders on the Tranche B Loan Borrowing Date,  a Tranche C Loan made by the Lenders on the Tranche C Loan Borrowing Date or a Tranche CD  Loan made by the Lenders on the Tranche CD Loan Borrowing Date, as applicable. “Borrowing Notice” means a notice substantially in the form attached hereto as Exhibit B. “Business Day” means a day (other than a Saturday or Sunday) on which commercial  banks are not authorized or required to close in New York City and, when determined in  connection with notices and determinations in respect of LIBOR or any Loan or any funding,  Interest Period or any payments in respect of the Loans, that is also a day on which dealings in  dollar deposits are carried on in the London interbank market. “Capital Lease Obligations” means, as to any Person, the obligations of such Person to  pay rent or other amounts under a lease of (or other agreement conveying the right to use) real  and/or personal Property which obligations are required to be classified and accounted for as a  capital lease on a balance sheet of such Person under GAAP and, for purposes of this Agreement,  the amount of such obligations shall be the capitalized amount thereof, determined substantially in  accordance with GAAP; provided that any obligations that were not required to be included on the  balance sheet of such Person as capital lease obligations when incurred (whether now outstanding  or at any time incurred or entered into) but are subsequently re-characterized as capital lease  obligations due to a change in accounting rules under GAAP after the Closing Date shall for all  purposes hereunder not be treated as a Capital Lease Obligation. “Casualty Event” means any actual or constructive loss, condemnation, destruction,  confiscation, requisition, seizure or forfeiture of all or any material portion of the assets of  Borrower or any other Obligor, excluding only those assets, individually or in the aggregate,  subject to any such event during any calendar year with a fair market value as of the date thereof  equal to or less than $1,000,000. “Change of Control” means (a) any “person” or “group” (within the meaning of Rule  13d-5 of the Exchange Act as in effect on the date hereof) shall own, directly or indirectly,  beneficially or of record, shares representing 40% or more of the aggregate ordinary voting power  represented by the issued and outstanding Equity Interests of Borrower, (b) Borrower ceases to  directly own, beneficially and of record, 100% of the issued and outstanding Equity Interests of  

 

-4- each of its Subsidiaries, or (c) during any period of twelve (12) consecutive calendar months, the  occupation of a majority of the seats (other than vacant seats) on the Board of Borrower by Persons  who were neither (i) nominated by the Board of Borrower, nor (ii) appointed by directors on the  Board of Borrower on the Closing Date. “Chinese Subsidiary” means IsoPlexis Trading Co., Ltd.  “Claims” includes claims, litigation, demands, complaints, grievances, actions,  applications, suits, causes of action, orders, charges, indictments, prosecutions, information  (brought by a public prosecutor without grand jury indictment) or other similar processes,  assessments or reassessments. “CLIA” means the Clinical Laboratory Improvement Amendments (CLIA) of 1988, as  amended from time to time, and the rules, regulations, guidelines, guidance documents and  compliance policy guides issued or promulgated thereunder. “Closing Date” means the Business Day on which all of the conditions set forth in Section  6.01 have been satisfied or waived by the Lenders and the Tranche A Loan is made. “Closing Fee” has the meaning set forth in Section 2.03. “Code” means the Internal Revenue Code of 1986, as amended from time to time. “Collateral” means any Property in which a Lien is purported to be granted under any of  the Security Documents (or all such Property, as the context may require). “Collateral Questionnaire” means that certain Collateral Questionnaire and certification  by a Responsible Officer of Borrower substantially in the form of attached hereto as Exhibit I and  otherwise in form and substance satisfactory to the Administrative Agent. “Commitment” means, with respect to each Lender, such Lender’s (a) Tranche A Loan  Commitment, (b) Tranche B Loan Commitment and, (c) Tranche C Loan Commitment and (d)  Tranche D Loan Commitment, and “Commitments” means all such commitments of all Lenders.   The aggregate Commitments of all Lenders as of the FirstThird Amendment Effective Date after  giving effect to the Tranche A Loan made on the Closing Date, the Tranche B Term Loan made on  the Tranche B Borrowing Date and the Tranche BC Term Loan made on the Tranche BC  Borrowing Date is $15,000,0007,500,000. “Committee” means, with respect to any board of directors (or other governing body), any  committee thereof duly authorized to act on behalf of such board of directors (or other governing  body). “Commodity Account” has the meaning set forth in the Security Agreement. “Compliance Certificate” has the meaning set forth in Section 8.01(d). 

 

-5- “Connection Income Taxes” means Other Connection Taxes that are imposed on or  measured by net income (however denominated) or that are franchise Taxes or branch profits  Taxes. “Contracts” means any contract, license, lease, agreement, obligation, promise,  undertaking, understanding, arrangement, document, commitment, entitlement or engagement  under which a Person has, or will have, any liability or contingent liability (in each case, whether  written or oral, express or implied, and whether in respect of monetary or payment obligations,  performance obligations or otherwise), excluding the Loan Documents. “Control” means, in respect of a particular Person, the possession, directly or indirectly, of  the power to direct or cause the direction of the management or policies of such Person, whether  through the ability to exercise voting power, by contract or otherwise.  “Controlling” and  “Controlled” have meanings correlative thereto. “Controlled Account” has the meaning set forth in Section 8.17(a)(i). “Copyrights” has the meaning set forth in the Security Agreement. “Default” means any Event of Default and any event that, upon the giving of notice, the  lapse of time or both, would constitute an Event of Default. “Default Rate” has the meaning set forth in Section 3.02(d). “Deposit Account” has the meaning set forth in the Security Agreement and relates to such  accounts located and/or maintained in the United States of America. “Designated Person” means a person or entity: (a) listed in the annex to, or otherwise targeted by the provisions of, the  Executive Order (as disclosed by World-Check or another reputable commercially  available database); (b) named as a “Specially Designated National and Blocked Person” on the  most current list published by OFAC at its official website or any replacement website or  other replacement official publication of such list (as disclosed by World-Check or another  reputable commercially available database); or (c) with which the Lenders are prohibited from dealing or otherwise engaging  in any transaction by any Economic Sanctions Laws. “Device” means any instrument, apparatus, implement, machine, contrivance, implant, in  vitro reagent or other similar or related item, including any component, part or accessory,  developed by the Obligors. “Disqualified Equity Interests” means, with respect to any Person, any Equity Interest of  

 

-6- such Person that, by its terms (or by the terms of any security or other Equity Interest into which it  is convertible or for which it is exchangeable upon exercise or otherwise), or upon the happening  of any event or condition (i) matures or is mandatorily redeemable (other than solely for Qualified  Equity Interests), including pursuant to a sinking fund obligation or otherwise, (ii) is redeemable at  the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in  part, (iii) provides for the scheduled payments of dividends or other distributions in cash or other  securities that would constitute Disqualified Equity Interests, or (iv) is or becomes convertible into  or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified  Equity Interests, in each case, prior to the date that is one hundred and eighty (180) days after the  Stated Maturity Date; provided that, if such Equity Interests are issued pursuant to any plan for the  benefit of directors, officers, employees or consultants of such Person or by any such plan to such  directors, officers, employees or consultants, such Equity Interests shall not constitute  Disqualified Equity Interests solely because they may be required to be repurchased by such  Person upon the death, disability, retirement or termination of employment or service of such  director, officer, employee or consultant. “Dollars” and “$” means lawful money of the United States of America. “Domestic Subsidiary” means any Subsidiary that is organized under the laws of the  United States, any state thereof or the District of Columbia. “Economic Sanctions Laws” means: (a) the Executive Order, the International Emergency Economic Powers Act  (50 U.S.C. §§ 1701 et seq.), the Trading with the Enemy Act (50 U.S.C. App. §§ 1 et seq.),  any other law or regulation promulgated thereunder from time to time and administered by  OFAC and any similar law enacted in the United States after the date of this Agreement;  and (b) any other similar applicable law now or hereafter enacted in any other  applicable jurisdiction. “EEA Financial Institution” means (a) any credit institution or investment firm established  in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority,  (b) any entity established in an EEA Member Country which is a parent of an institution described  in clause (a) of this definition, or (c) any financial institution established in an EEA Member  Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and  is subject to consolidated supervision with its parent. “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway. “EEA Resolution Authority” means any public administrative authority or any person  entrusted with public administrative authority of any EEA Member Country (including any  delegee) having responsibility for the resolution of any EEA Financial Institution. 

 

-7- “Environmental Law” means any federal, state, provincial or local governmental law, rule,  regulation, order, writ, judgment, injunction or decree relating to pollution or protection of the  environment or the treatment, storage, disposal, release, threatened release or handling of  hazardous materials, and all local laws and regulations related to environmental matters and any  specific agreements entered into with any competent authorities which include commitments  related to environmental matters. “Equity Interest” means, with respect to any Person, any and all shares, interests,  participations or other equivalents, including membership interests (however designated, whether  voting or nonvoting), of equity of such Person, including, if such Person is a partnership,  partnership interests (whether general or limited) and any other interest or participation that  confers on a Person the right to receive a share of the profits and losses of, or distributions of  property of, such partnership, but excluding debt securities convertible or exchangeable into such  equity. “ERISA” means the United States Employee Retirement Income Security Act of 1974, as  amended. “ERISA Affiliate” means, collectively, any Obligor, Subsidiary thereof, and any Person  under common control, or treated as a single employer, with any Obligor or Subsidiary thereof,  within the meaning of Section 414(b), (c), (m) or (o) of the Code. “ERISA Event” means (i) a reportable event as defined in Section 4043 of ERISA with  respect to a Title IV Plan, excluding, however, such events as to which the PBGC by regulation has  waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of  the occurrence of such event; (ii) the applicability of the requirements of Section 4043(b) of  ERISA with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, to any  Title IV Plan where an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c)  of ERISA is reasonably expected to occur with respect to such plan within the following thirty (30)  days; (iii) a withdrawal by any Obligor or any ERISA Affiliate thereof from a Title IV Plan or the  termination of any Title IV Plan resulting in liability under Sections 4063 or 4064 of ERISA; (iv)  the withdrawal of any Obligor or any ERISA Affiliate thereof in a complete or partial withdrawal  (within the meaning of Section 4203 and 4205 of ERISA) from any Multiemployer Plan if there is  any potential liability therefore, or the receipt by any Obligor or any ERISA Affiliate thereof of  notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section  4241 or 4245 of ERISA; (v) the filing of a notice of intent to terminate, the treatment of a plan  amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of  proceedings by the PBGC to terminate a Title IV Plan or Multiemployer Plan; (vi) the imposition  of liability on any Obligor or any ERISA Affiliate thereof pursuant to Sections 4062(e) or 4069 of  ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the failure by any  Obligor or any ERISA Affiliate thereof to make any required contribution to a Plan, or the failure  to meet the minimum funding standard of Section 412 of the Code with respect to any Title IV  Plan (whether or not waived in accordance with Section 412(c) of the Code) or the failure to make  by its due date a required installment under Section 430 of the Code with respect to any Title IV  Plan or the failure to make any required contribution to a Multiemployer Plan; (viii) the  determination that any Title IV Plan is considered an at-risk plan or a plan in endangered to critical  

 

-8- status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305  of ERISA; (ix) an event or condition which might reasonably be expected to constitute grounds  under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer,  any Title IV Plan or Multiemployer Plan; (x) the imposition of any liability under Title I or Title  IV of ERISA, other than PBGC premiums due but not delinquent under Section 4007 of ERISA,  upon any Obligor or any ERISA Affiliate thereof; (xi) an application for a funding waiver under  Section 303 of ERISA or an extension of any amortization period pursuant to Section 412 of the  Code with respect to any Title IV Plan; (xii) the occurrence of a non-exempt prohibited transaction  under Sections 406 or 407 of ERISA for which any Obligor or any Subsidiary thereof may be  directly or indirectly liable; (xiii) a violation of the applicable requirements of Section 404 or 405  of ERISA or the exclusive benefit rule under Section 401(a) of the Code by any fiduciary or  disqualified person for which any Obligor or any ERISA Affiliate thereof may be directly or  indirectly liable; (xiv) the occurrence of an act or omission which could give rise to the imposition  on any Obligor or any ERISA Affiliate thereof of fines, penalties, Taxes or related charges under  Chapter 43 of the Code or under Sections 409, 502(c), (i) or (1) or 4071 of ERISA; (xv) the  assertion of a material claim (other than routine claims for benefits) against any Plan or the assets  thereof, or against any Obligor or any Subsidiary thereof in connection with any such plan; (xvi)  receipt from the IRS of notice of the failure of any Qualified Plan to qualify under Section 401(a)  of the Code, or the failure of any trust forming part of any Qualified Plan to fail to qualify for  exemption from taxation under Section 501(a) of the Code; (xvii) the imposition of any lien (or the  fulfillment of the conditions for the imposition of any lien) on any of the rights, properties or assets  of any Obligor or any ERISA Affiliate thereof, in either case pursuant to Title I or IV, including  Section 302(f) or 303(k) of ERISA or to Section 401(a)(29) or 430(k) of the Code; or (xviii) the  establishment or amendment by any Obligor or any Subsidiary thereof of any “welfare plan,” as  such term is defined in Section 3(1) of ERISA, that provides post-employment welfare benefits in  a manner that would increase the liability of any Obligor, other than those benefits required under  the Consolidated Omnibus Budget Reconciliation Act. “ERISA Funding Rules” means the rules regarding minimum required contributions  (including any installment payment thereof) to Title IV Plans, as set forth in Sections 412, 430,  431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA. “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor Person), as in effect from time to time. “Event of Default” has the meaning set forth in Section 10.01. “Excess Funding Guarantor” has the meaning set forth in Section 11.08. “Excess Payment” has the meaning set forth in Section 11.08. “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations promulgated thereunder. “Excluded Accounts” means deposit accounts exclusively used for payroll, payroll taxes  and other employee wage and benefit payments to or for the benefit of the employees of Borrower  

 

-9- and its Subsidiaries. “Excluded Taxes” means any of the following Taxes imposed on or with respect to a  Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed  on or measured by net income (however denominated), franchise Taxes and branch profits Taxes  in each case (i) imposed as a result of such Recipient being organized under the laws of, or having  its principal office or, in the case of a Lender, its applicable lending office located in, the  jurisdiction imposing such Tax or (ii) that are Other Connection Taxes, (b) any U.S. federal  withholding Taxes that are imposed on amounts payable to Lender to the extent that the obligation  to withhold amounts existed on the date that (i) Lender became a “Lender” under this Agreement  or (ii) Lender changes its lending office, except in each case to the extent Lender is a direct or  indirect assignee of any other Lender that was entitled, at the time the assignment of such other  Lender became effective, to receive additional amounts under Section 5.03 or Lender was entitled  to receive additional amounts under Section 5.03 immediately before it changed its lending office,  (c) any Taxes imposed in connection with FATCA, and (d) Taxes attributable to such Recipient’s  failure to comply with Section 5.03(e). “Executive Order” means the US Executive Order No. 13224 on Blocking Property and  Prohibiting Transactions with Persons who commit, Threaten to Commit, or Support Terrorism. “Expense Deposit” means a cash deposit in the amount of $50,000 made by Borrower to  an Affiliate of Perceptive Advisors LLC pursuant to the Proposal Letter for the prepayment of the  Lenders’ costs and expenses (payable pursuant to Section 13.03(a) and/or the Proposal Letter)  incurred prior to the Closing Date. “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement  (or any amended or successor version that is substantively comparable and not materially more  onerous to comply with), any current or future regulations or official interpretations thereof, any  agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory  legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or  convention among Governmental Authorities entered into in connection with the implementation  of the foregoing. “First Amendment” means the First Amendment to Credit Agreement and Guaranty, dated  as of May 27, 2021, among Borrower, the Lenders and the Administrative Agent.  “First Amendment Effective Date” means May 27, 2021.  “Foreign Lender” means a Lender that is not a U.S. Person. “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary. “GAAP” means generally accepted accounting principles in the United States of America,  as in effect from time to time, set forth in the opinions and pronouncements of the Accounting  Principles Board and the American Institute of Certified Public Accountants, in the statements and  pronouncements of the Financial Accounting Standards Board and in such other statements by  

 

-10- such other entity as may be in general use by significant segments of the accounting profession that  are applicable to the circumstances as of the date of determination.  Subject to Section 1.02, all  references to “GAAP” shall be to GAAP applied consistently with the principles used in the  preparation of the financial statements described in Section 7.04(a). “Governmental Approval” means any consent, authorization, approval, order, license,  franchise, permit, certification, accreditation, registration, clearance, exemption, filing or notice  that is issued or granted by or from (or pursuant to any act of) any Governmental Authority,  including any application or submission related to any of the foregoing. “Governmental Authority” means any nation, government, branch of power (whether  executive, legislative or judicial), state, municipality or other political subdivision thereof and any  entity exercising executive, legislative, judicial, monetary, regulatory or administrative functions  of or pertaining to government, including without limitation regulatory authorities, governmental  departments, agencies, commissions, bureaus, officials, ministers, courts, bodies, boards, tribunals  and dispute settlement panels, and other law-, rule- or regulation-making organizations or entities  of any State, territory, county, city or other political subdivision of the United States. “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or  otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any  Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner,  whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a)  to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness  or other obligation or to purchase (or to advance or supply funds for the purchase of) any security  for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of  assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain  working capital, equity capital or any other financial statement condition or liquidity of the  primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or  (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such  Indebtedness or obligation; provided, that the term Guarantee shall not include endorsements for  collection or deposit in the Ordinary Course of Business. “Guarantee Assumption Agreement” means a Guarantee Assumption Agreement  substantially in the form of Exhibit A by an entity that, pursuant to Section 8.11(a), is required to  become a “Guarantor”. “Guaranteed Obligations” has the meaning set forth in Section 11.01. “Guarantor” means, collectively, each Subsidiary of Borrower on the Closing Date or  joined as a Guarantor from time to time pursuant to Section 8.11(a). “Hazardous Material” means any substance, element, chemical, compound, product,  solid, gas, liquid, waste, by-product, pollutant, contaminant or material which is hazardous or  toxic, and includes, without limitation, (a) asbestos, polychlorinated biphenyls and petroleum  (including crude oil or any fraction thereof) and (b) any material classified or regulated as  “hazardous” or “toxic” or words of like import pursuant to an Environmental Law. 

 

-11- “Hedging Agreement” means any interest rate exchange agreement, foreign currency  exchange agreement, commodity price protection agreement or other interest or currency  exchange rate or commodity price hedging arrangement. “Immaterial Foreign Subsidiary” means, as of any date, any Foreign Subsidiary for which  (a) the consolidated total assets of such Foreign Subsidiary and its Subsidiaries, when taken  together with the consolidated total assets of all other Immaterial Foreign Subsidiaries their  subsidiaries, is not in excess of 5.0% of the consolidated total assets of the Borrower and its  Subsidiaries and (b) the aggregate amount of the Total Revenue of such Foreign Subsidiary and its  subsidiaries on a consolidated basis, when taken together with the contribution to Total Revenue  of all other Immaterial Foreign Subsidiaries and their Subsidiaries on a consolidated basis, is not in  excess of 5.0% of Total Revenue of the Borrower and its Subsidiaries, in each case as of the last  day of any four quarter period; provided that notwithstanding the foregoing, at no time shall any  Guarantor existing on the Closing Date or joined hereto pursuant to Section 8.11 subsequently be  deemed an Immaterial Foreign Subsidiary. “Indebtedness” of any Person means, without duplication, (a) all obligations of such  Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,  notes, loan agreements or similar instruments, (c) all obligations of such Person upon which  interest charges are customarily paid, (d) all obligations of such Person under conditional sale or  other title retention agreements relating to Property acquired by such Person, (e) all obligations of  such Person in respect of the deferred purchase price of Property or services (excluding current  accounts payable incurred in the Ordinary Course of Business not overdue by more than one  hundred twenty (120) days), (f) all Indebtedness of others secured by (or for which the holder of  such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on  Property owned or acquired by such Person, whether or not the Indebtedness secured thereby has  been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease  Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an  account party in respect of letters of credit and letters of guaranty, (j) obligations under any  Hedging Agreement, currency swaps, forwards, futures or derivatives transactions, (k) all  obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (l) all  obligations of such Person under license or other agreements containing a guaranteed minimum  payment or purchase by such Person, (m) any Disqualified Equity Interests of such Person, (n) any  earnout obligation at the time such obligation is both required to be reflected as a liability on the  balance sheet of such Person in accordance with  GAAP and not paid after becoming due and  payable and (o) all other obligations required to be classified as indebtedness of such Person under  GAAP.  The Indebtedness of any Person shall, without duplication, include the Indebtedness of  any other entity (including any partnership in which such Person is a general partner) to the extent  such Person is liable therefor as a result of such Person’s ownership interest in or other relationship  with such entity, except to the extent the terms of such Indebtedness provide that such Person is not  liable therefor. “Indemnified Party” has the meaning set forth in Section 13.03(b). “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with  respect to any payment made by or on account of any Obligation and (b) to the extent not otherwise  

 

-12- described in clause (a), Other Taxes. “Ineligible Assignee” means (a) a natural person or (b) the Obligors or any of their  respective Affiliates. “Information” has the meaning set forth in Section 13.17. “Insolvency Proceeding” means (a) any case, action or proceeding before any court or  other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,  receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the  benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement  in respect of any Person’s creditors generally or any substantial portion of such Person’s creditors,  in each case undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code. “Intellectual Property” means all Patents, Trademarks, Copyrights, industrial designs,  Technical Information, whether registered or not, whether domestic or foreign, including all of the  following: (a) applications, registrations, amendments and extensions relating to any  Intellectual Property; (b) rights and privileges arising under any applicable Laws with respect to any  Intellectual Property; (c) rights to sue for or collect any damages from any past, present or future  infringements of any Intellectual Property; and (d) rights of the same or similar effect or nature as described above in any  jurisdiction corresponding to any Intellectual Property throughout the world. “Interest Period” means, (a) initially, the period beginning on (and including) the Closing  Date and ending on (and including) the last day of the calendar month in which the Closing Date  occurs, and (b) thereafter, the period beginning on (and including) the first day of each succeeding  calendar month and ending on the earlier of (and including) (x) the last day of such calendar month  and (y) the Maturity Date. “Invention” means any novel, inventive or useful art, apparatus, method, process, machine  (including any article or Device), manufacture or composition of matter, or any novel, inventive  and useful improvement in any art, method, process, machine (including any article or Device),  manufacture or composition of matter. “Investment” means, for any Person: (a) the acquisition (whether for cash, Property,  services or securities or otherwise) of Equity Interests, bonds, notes, debentures, partnership or  other ownership interests or other securities of any other Person or any agreement to make any  such acquisition (including any “short sale” or any sale of any securities at a time when such  securities are not owned by the Person entering into such sale); (b) the making of any deposit with,  

 

-13- or advance, loan, assumption of debt or other extension of credit to, any other Person (including  the purchase of Property from another Person subject to an understanding or agreement,  contingent or otherwise, to resell such Property to such Person), but excluding any such advance,  loan or extension of credit in the nature of an ordinary course trade receivable having a term not  exceeding ninety (90) days arising in connection with the sale of services, inventory or supplies by  such Person in the Ordinary Course of Business; (c) the entering into of any Guarantee of, or other  contingent obligation with respect to, Indebtedness or other liability of any other Person and  (without duplication) any amount committed to be advanced, lent or extended to such Person; (d)  entering into any joint venture; or (e) the entering into of any Hedging Agreement.  The amount of  an Investment will be determined at the time the Investment is made without giving effect to any  subsequent changes in value. “IRS” means the U.S. Internal Revenue Service or any successor agency, and to the extent  relevant, the U.S. Department of the Treasury. “Laws” means, collectively, all international, foreign, federal, state, provincial, territorial,  municipal and local statutes, treaties, rules, regulations, ordinances, codes and administrative or  judicial precedents or authorities, including the interpretation or administration thereof by any  Governmental Authority charged with the enforcement, interpretation or administration thereof,  and all applicable administrative orders, directed duties, requests, licenses, authorizations and  permits of, and agreements with, any Governmental Authority, in each case whether or not having  the force of law. “Lenders” has the meaning set forth in the introduction hereto. “LIBOR” means, for any Interest Period, the rate per annum (rounded upwards if  necessary, to the next 1/100%) equal to the London interbank offered rate for one-month deposits  in Dollars appearing on the appropriate Bloomberg screen or the Dow Jones Markets Telerate  Page 3750 as of 11:00 a.m. (London time) two (2) Business Days prior to the commencement of  any Interest Period; provided, that in the event that such rate does not appear on the appropriate  Bloomberg screen or the Dow Jones Markets Telerate Page 3750 (or otherwise on the Dow Jones  Markets screen) at such time, “LIBOR” shall be determined by reference to such other comparable  publicly available service for displaying the offered rate for deposit in Dollars in the London  interbank market as may be selected by the Administrative Agent; provided, further, that in no  event shall LIBOR be less than 1.75%. “Lien” means any mortgage, lien, pledge, charge or other security interest, or any lease,  title retention agreement, mortgage, restriction, easement, right-of-way, option or adverse claim  (of ownership or possession) or other encumbrance of any kind or character whatsoever or any  preferential arrangement that has the practical effect of creating a security interest. “Loan Documents” means, collectively, this Agreement, the Notes, the Security  Documents, any Guarantee Assumption Agreement, the Warrant Certificate and any subordination  agreement, intercreditor agreement or other present or future document, instrument, agreement or  certificate delivered to any Lender in connection with this Agreement or any of the other Loan  Documents, in each case, as amended, restated, supplemented or otherwise modified. 

 

-14- “Loan Exposure” means, with respect to any Lender, as of any date of determination, the  outstanding principal amount of the Loans of such Lender; provided, at any time prior to the  making of the Loans, the Loan Exposure of any Lender shall be equal to such Lender’s  Commitment. “Loans” means the Tranche A Loan, Tranche B Loan and the, Tranche C Loan and  Tranche D Loan. “Loss” means judgments, debts, liabilities, expenses, costs, damages or losses, contingent  or otherwise, whether liquidated or unliquidated, matured or unmatured, disputed or undisputed,  contractual, legal or equitable, including loss of value, professional fees, including fees and  disbursements of legal counsel on a full indemnity basis, and all costs incurred in investigating or  pursuing any Claim or any proceeding relating to any Claim. “Majority Lenders” means, at any time, one or more Lenders having or holding Loan  Exposure and representing more than 50% of the aggregate Loan Exposure of all Lenders. “Margin Stock” means “margin stock” within the meaning of Regulations U and X. “Material Adverse Change” and “Material Adverse Effect” mean a material adverse  change in or effect on (a) the business, financial condition, operations and performance of the  Obligors taken as a whole, (b) the ability of any Obligor to perform its obligations under any Loan  Document, (c) the value of the Property comprising Collateral (taken as a whole), or (d) the  legality, validity, binding effect or enforceability of the Loan Documents or the rights and  remedies of any Lender under any of the Loan Documents. “Material Agreement” means (a) any Contract which is listed in Schedule 7.14, (b) any  other Contract to which any Obligor is a party or a beneficiary from time to time, or to which any  assets or properties of any Obligor is bound, the loss or termination of which would reasonably be  expected to result in a Material Adverse Effect, (c) any other Contract to which any Obligor is a  party or a guarantor (or equivalent) whether existing as of the date hereof or in the future that  during any period of twelve (12) consecutive months is reasonably expected to (i) result in  payments or receipts (including royalty, licensing or similar payments) made to any Obligor in an  aggregate amount in excess of $1,000,000 or (ii) require payments or expenditures (including  royalty, licensing or similar payments) made by any Obligor in an aggregate amount in excess of  $1,000,000, (d) the Patent Purchase Agreement, (e) the Supply Agreement and (f) the QIAGEN  Assumption Agreement.  “Material Indebtedness” means, at any time, any Indebtedness of any Obligor, the  outstanding principal amount of which, individually or in the aggregate, exceeds $250,000. “Material Intellectual Property” means all Obligor Intellectual Property, including those  described in Schedule 7.05(b), whether currently owned or licensed, or acquired, developed or  otherwise licensed or obtained after the date hereof (a) necessary for the operation of the business  of any Obligor as currently conducted or as currently contemplated to be conducted, (b) the loss of  which would reasonably be expected to have or result in a Material Adverse Effect or (c) that has a  

 

-15- fair market value in excess of $1,000,000. “Maturity Date” means the earlier to occur of (a) the Stated Maturity Date, and (b) the date  on which the Loans are accelerated pursuant to Section 10.02. “Multiemployer Plan” means any multiemployer plan, as defined in Section 400l(a)(3) of  ERISA, to which any ERISA Affiliate incurs or otherwise has any obligation or liability,  contingent or otherwise. “Net Cash Proceeds” means,  (a) with respect to the incurrence or issuance of any Indebtedness incurred by an  Obligor not permitted under Section 9.01, the excess, if any, of (i) the sum of the cash received in  connection with such incurrence or issuance over (ii) the investment banking fees, underwriting  discounts, commissions, costs and other reasonable expenses and other customary expenses  (including reasonable attorney’s, accountant’s and other similar professional advisor’s fees),  incurred by such Obligor in connection with such incurrence or issuance to third parties (other than  any other Obligor or any of their respective Affiliates), (b) with respect to any Casualty Event, the amount of cash proceeds actually received  from time to time by or on behalf of an Obligor after deducting therefrom only (i) actual costs and  expenses related thereto incurred by such Obligor in connection therewith and (ii) Taxes paid or  payable in connection therewith, and (c) with respect to any Asset Sale, the excess, if any, of (i) cash proceeds received in  respect of such Asset Sale (including cash proceeds subsequently received (as and when received))  over (ii) the sum of (A) the direct costs of such Asset Sale then payable by the recipient of such  proceeds excluding amounts payable to any Obligor, (B) sales and use taxes paid or payable by  such recipient as a result thereof, (C) amounts required to be applied to repay principal, interest  and prepayment premiums and penalties on Indebtedness secured by a Permitted Lien on the  properties subject to such Asset Sale and (D) amounts reserved or deposited in escrow with respect  to indemnity payments or price adjustments until such amounts are released to the Obligors. “Note” means a promissory note executed and delivered by Borrower to any Lender in the  form attached hereto as Exhibit C. “Obligations” means, with respect to any Obligor, all amounts, obligations (including,  without limitation, all Warrant Obligations), liabilities, covenants and duties of every type and  description owing by such Obligor to any Lender or any other Indemnified Party hereunder,  arising out of, under, or in connection with, any Loan Document, whether direct or indirect  (regardless of whether acquired by assignment), absolute or contingent, due or to become due,  whether liquidated or not, now existing or hereafter arising and however acquired, and whether or  not evidenced by any instrument for the payment of money, including, without duplication, (a) all  Loans, (b) all interest on the Loans (including interest at the Default Rate), whether or not accruing  after the filing of any petition in bankruptcy or after the commencement of any insolvency,  reorganization or similar proceeding, and whether or not a claim for post-filing or post-petition  

 

-16- interest is allowed in any such proceeding, (c) any Prepayment Premium, and (d) all other fees,  expenses (including fees, charges and disbursement of counsel), interest, commissions, charges,  costs, disbursements, indemnities and reimbursement of amounts paid and other sums chargeable  to such Obligor under any Loan Document. “Obligor Intellectual Property” means Intellectual Property owned by or licensed to any  of the Obligors. “Obligors” means, collectively, Borrower, each Guarantor and each of their respective  successors and permitted assigns. “OFAC” means the Office of Foreign Assets Control of the U.S. Department of the  Treasury (or any successor thereto). “Ordinary Course of Business” means, with respect to the Obligors, the ordinary course of  business generally consistent with past custom and practice (including with respect to nature,  scope, magnitude, quantity and frequency). “Organizational Documents” means (a) with respect to any corporation, its certificate or  articles of incorporation or organization, as amended, and its by-laws, as amended, (b) with respect  to any limited partnership, its certificate of limited partnership, as amended, and its partnership  agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as  amended, and (d) with respect to any limited liability company, its articles of organization, as  amended, and its operating agreement, as amended.  In the event any term or condition of this  Agreement or any other Loan Document requires any Organizational Document to be certified by  a secretary of state or similar government official, the reference to any such “Organizational  Document” shall only be to a document of a type customarily certified by such government  official. “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result  of a present or former connection between such Recipient and the jurisdiction imposing such Tax  (other than connections arising solely from such Recipient having executed, delivered, become a  party to, performed its obligations under, received payments under, received or perfected a  security interest under, engaged in any other transaction pursuant to or enforced any Loan  Document, or sold or assigned an interest in any Loan or Loan Document). “Other Taxes” means all present or future stamp, court or documentary, intangible,  recording, filing or similar Taxes that arise from any payment made under, from the execution,  delivery, performance, enforcement or registration of, from the receipt or perfection of a security  interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are  Other Connection Taxes imposed with respect to an assignment (other than an assignment made  pursuant to Section 5.03(g)). “Participant” has the meaning set forth in Section 13.05(e). “Participant Register” has the meaning set forth in Section 13.05(f). 

 

-17- “Patent Purchase Agreement” means that certain asset purchase agreement, as in effect on  the First Amendment Effective Date, by and among Borrower, as QIAGEN Sciences, LLC, a  Delaware limited liability company, and QIAGEN GmbH, a German corporation, collectively as  sellers, dated as of May 12, 2021, whereby Borrower purchased all rights, privileges, title and  interest in and to certain patents, along with the inventions described and claimed in the patents,  and all rights to income, royalties and damages for infringement of the patents (the “QIAGEN  Patents”).  “Patents” has the meaning set forth in the Security Documents. “Payment Date” means the last day of each Interest Period; provided that if such last day  of such Interest Period is not a Business Day, then the Payment Date for such Interest Period will  be the next succeeding Business Day. “PBGC” means the United States Pension Benefit Guaranty Corporation referred to and  defined in ERISA and any successor entity performing similar functions. “Perceptive” has the meaning set forth in the introduction hereto. “Permits” means all permits, licenses, registrations, certificates, orders, approvals,  authorizations, consents, waivers, franchises, variances and similar rights issued by or obtained  from any Governmental Authority or any other Person, including, without limitation, those  relating to Environmental Laws. “Permitted Acquisition” means any Acquisition by any Obligor or any of its  wholly-owned Subsidiaries, by (a) purchase, merger, amalgamation, license or otherwise, of all or  substantially all of the assets of, all of the Equity Interests of, or a business line or unit or a division  of, any Person or (b) license arrangement for the rights to use, develop, market or otherwise  commercialize any Patents, Trademarks, Copyrights or other Intellectual Property (other than  ordinary course, over the counter software license arrangements); provided that: (i) immediately prior to, and immediately after giving effect thereto, no  Default shall have occurred and be continuing or would result therefrom; (ii) all transactions in connection therewith shall be consummated, in all  material respects, in accordance with all applicable Laws and in conformity in all material  respects with all applicable Governmental Approvals; (iii) in the case of the Acquisition of all of the Equity Interests of such Person,  all of the Equity Interests (except for any such securities in the nature of directors’  qualifying shares required pursuant to applicable Law) acquired, or otherwise issued by  such Person or any newly formed Subsidiary of such Obligor in connection with such  Acquisition, shall be owned 100% by an Obligor or any other Subsidiary of Borrower, and  Borrower shall have taken, or caused to be taken, as of the date such Person becomes a  Subsidiary of an Obligor, each of the actions set forth in Section 8.11, if applicable;  

 

-18- (iv) such Person (in the case of an Acquisition of Equity Interests) or assets (in  the case of an Acquisition of assets or a division) (i) shall be engaged or used, as the case  may be, in the same business or lines of business in which Borrower and/or its Subsidiaries  are engaged or a business reasonably and substantially related thereto or (ii) shall have a  similar customer base as Borrower and/or its Subsidiaries;  (v) Borrower shall have provided the Administrative Agent with at least ten  (10) Business Days’ prior written notice of any such Acquisition, together with summaries,  prepared in reasonable detail, of all due diligence conducted by or on behalf of Borrower or  the applicable Subsidiary prior to such Acquisition; (vi) all of the assets or Equity Interests acquired in connection with such  Acquisition shall be of a U.S. Person; (vii) the Acquisition shall have been approved by the Board or other governing  body or controlling Person of the Person acquired or the Person from whom such assets or  division is acquired; and (viii) on a pro forma basis after giving effect to such Acquisition, Borrower and  its Subsidiaries shall be in compliance with Section 8.15.  “Permitted Cash Equivalent Investments” means (a) marketable direct obligations issued  or unconditionally guaranteed by the United States or any agency or any State thereof having  maturities of not more than two (2) years from the date of acquisition, (b) commercial paper with  an average maturity of no more than one (1) year and having the highest rating from either  Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) any money market funds  or other investment vehicles whose principal investments are in investments described in clauses  (a) or (b) above, and (d) certificates of deposit maturing no more than one (1) year after issue. “Permitted Indebtedness” means any Indebtedness permitted under Section 9.01. “Permitted Licenses” means (a) licenses of over-the-counter software that is commercially  available to the public, (b) licenses for the use of Obligor Intellectual Property, in each case,  entered into in the Ordinary Course of Business or as otherwise may be approved by the applicable  Obligor’s Board and so long as (i) no Event of Default has occurred and is continuing at the time  such license is entered into and (ii) such license does not materially impair the Lenders from  exercising their rights under any of the Loan Documents and (c) licenses pursuant to the Supply  Agreement. “Permitted Liens” means any Liens permitted under Section 9.02. “Permitted Priority Liens” means (a) Liens permitted under Section 9.02(d), (e), (f) or (g)  and (b) Liens permitted under Section 9.02(b); provided that such Liens are also of the type  described in Section 9.02(d), (e), (f) or (g). “Permitted Refinancing” means, with respect to any Indebtedness permitted to be  

 

-19- refinanced, extended, renewed or replaced hereunder, any refinancings, extensions, renewals and  replacements of such Indebtedness; provided that such refinancing, extension, renewal or  replacement shall not (a) increase the outstanding principal amount of the Indebtedness being  refinanced, extended, renewed or replaced, (b) contain terms relating to outstanding principal  amount, amortization, interest rate or equivalent yield, maturity, collateral security (if any) or  subordination (if any), or other material terms that, taken as a whole, are less favorable in any  material respect to any Obligor or the Lenders than the terms of any agreement or instrument  governing the Indebtedness being refinanced, (c) contain any new requirement to grant any Lien or  to give any Guarantee that was not an existing requirement of the Indebtedness being refinanced  and (d) after giving effect to such refinancing, extension, renewal or replacement, no Default shall  have occurred (or could reasonably be expected to occur) as a result thereof. “Person” means any individual, corporation, company, voluntary association, partnership,  limited liability company, joint venture, trust, unincorporated organization or Governmental  Authority or other entity of whatever nature. “PFIC” has the meaning set forth in Section 8.01(j). “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)  subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of  ERISA, and in respect of which Borrower or any ERISA Affiliate is (or, if such plan were  terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in  Section 3(5) of ERISA. “Prepayment Premium” has the meaning set forth in Section 3.03(a)(i). “Pro Rata Share” has the meaning set forth in Section 11.08. “Prohibited Payment” means any bribe, rebate, payoff, influence payment, kickback or  other payment or gift of money or anything of value (including meals or entertainment) to any  officer, employee or ceremonial office holder of any government or instrumentality thereof,  political party or supra-national organization (such as the United Nations), any political candidate,  any royal family member or any other person who is connected or associated personally with any  of the foregoing that is prohibited under any Requirement of Law. “Projections” has the meaning set forth in Section 7.04(b). “Property” of any Person means any property or assets, or interest therein, of such Person. “Proportionate Share” means, with respect to any Lender, the percentage obtained by  dividing (a) the Loan Exposure of such Lender then in effect by (b) the aggregate Loan Exposure  of all Lenders then in effect. “Proposal Letter” means the letter agreement, dated November 27, 2020, among  Borrower and Perceptive Advisors LLC, regarding the transactions contemplated hereby and the  outline of proposed terms and conditions attached thereto. 

 

-20- “Publicly Reporting Company” means an issuer generally subject to the public reporting  requirements of the Exchange Act. “QIAGEN Assumption Agreement” means that certain assumption agreement dated as of  May 12, 2021 by and among Borrower, QIAGEN Sciences, LLC, a Delaware limited liability  company and QIAGEN GmbH.  “Qualified Equity Interest” means, with respect to any Person, any Equity Interest of such  Person that is not a Disqualified Equity Interest. “Qualified Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA)  other than a Multiemployer Plan (i) that is or was at any time maintained or sponsored by any  Obligor or any ERISA Affiliate thereof or to which any Obligor or any ERISA Affiliate thereof  has ever made, or was ever obligated to make, contributions, and (ii) that is intended to be tax  qualified under Section 401(a) of the Code. “Qualified Public Offering” means the initial firm-commitment underwritten public  offering of common Equity Interests of the Borrower pursuant to an effective registration  statement filed with the SEC in accordance with the Securities Act of 1933, raising net cash  proceeds of at least $50,000,000, and in connection with such offering the common Equity  Interests of the Borrower is listed for trading on the Nasdaq Stock Market’s National Market, the  New York Stock Exchange, or another exchange or marketplace acceptable to the Administrative  Agent in its sole discretion. “Recipient” means any Lender or the Administrative Agent. “Redemption Date” has the meaning set forth in Section 3.03(a). “Redemption Price” has the meaning set forth in Section 3.03(a). “Register” has the meaning set forth in Section 13.05(d). “Regulation T” means Regulation T of the Board of Governors of the Federal Reserve  System, as amended. “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve  System, as amended. “Regulation X” means Regulation X of the Board of Governors of the Federal Reserve  System, as amended. “Representatives” has the meaning set forth in Section 13.17. “Requirement of Law” means, as to any Person, any Law applicable to or binding upon  such Person or any of its Properties or revenues. 

 

-21- “Resignation Effective Date” has the meaning set forth in Section 12.06(a). “Responsible Officer” of any Person means each of the president, chief executive officer  and chief financial officer of such Person. “Restricted Payment” means any dividend or other distribution (whether in cash,  securities or other Property) with respect to any Equity Interest of Borrower or any of its  Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking  fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,  cancellation or termination of any such shares of capital stock of Borrower or any of its  Subsidiaries or any option, warrant or other right to acquire any such shares of capital stock of  Borrower or any of its Subsidiaries. “Restrictive Agreement” means any indenture, agreement, instrument or other binding  arrangement that prohibits, restricts or imposes any condition upon (a) the ability of any Obligor to  create, incur or permit to exist any Lien upon any of its Property (other than (i) customary  provisions in contracts (including without limitation leases and in-bound licenses of Intellectual  Property) restricting the assignment thereof, (ii) restrictions or conditions imposed by any  agreement governing secured Permitted Indebtedness permitted under Section 9.01(g), to the  extent that such restrictions or conditions apply only to the Property securing such Indebtedness  and (iii) software and other Intellectual Property licenses pursuant to which an Obligor is the  licensee of the relevant software or Intellectual Property, as the case may be (in which case, any  prohibition or limitation shall relate only to the assets or rights subject to the applicable license  and/or the license itself)), or (b) the ability of any Obligor to pay dividends or other distributions  with respect to any shares of its Equity Interests or to make or repay loans or advances to any  Obligor or to Guarantee Indebtedness of any Obligor. “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority. “Sanctions” means economic or financial sanctions, requirements or trade embargoes  imposed, administered or enforced from time to time by Governmental Authorities (including, but  not limited to, OFAC, the U.S. Department of State and the U.S. Department of Commerce). “Sanctions Laws” means all laws, rules, regulations and requirements of any jurisdiction  applicable to the Obligors or any party to the Loan Documents concerning or relating to Sanctions,  terrorism or money laundering. “SEC” means United States Securities and Exchange Commission. “Second Amendment” means the Second Amendment to Credit Agreement and Guaranty,  dated as of October 29, 2021, among Borrower, the Lenders and the Administrative Agent.  “Securities Account” has the meaning set forth in the Security Agreement. “Security Agreement” means the Security Agreement, dated as of the date hereof, in  

 

-22- substantially the form of Exhibit G, among the Obligors, the Lenders and the Administrative  Agent, granting a security interest in the personal Property constituting Collateral thereunder in  favor of the Administrative Agent for the benefit of the Lenders. “Security Documents” means, collectively, the Security Agreement, each Short-Form IP  Security Agreement, and each other security document, control agreement or financing statement  executed to perfect Liens in favor of the Administrative Agent for the benefit of the Lenders. “Short-Form IP Security Agreements” means short-form copyright, patent or trademark  (as the case may be) security agreements, dated as of the date hereof, in substantially the form of  Exhibits H-1 and H-2, entered into by one or more Obligors in favor of the Administrative Agent  for the benefit of the Lenders, each in form and substance satisfactory to the Administrative Agent. “Solvent” means, with respect to any Person at any time, that (a) the present fair saleable  value of the Property of such Person is greater than the total amount of liabilities (including  contingent liabilities) of such Person, (b) the present fair saleable value of the Property of such  Person is not less than the amount that will be required to pay the probable liability of such Person  on its debts as they become absolute and matured, and (c) such Person has not incurred and does  not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s  ability to pay as such debts and liabilities mature. “Stated Maturity Date” means the fifth (5th) anniversary of the Closing Date; provided  that if such date shall occur on a day that is not a Business Day, then the Stated Maturity Date shall  be the immediately succeeding Business Day. “Subsidiary” means, with respect to any Person (the “parent”) at any time of  determination, any other Person of which more than 50% of the outstanding capital stock of such  other Person having ordinary voting powers, determined on a fully diluted basis, is at the time  directly or indirectly owned or controlled by the parent.  Unless the context otherwise specifically  requires, the term “Subsidiary” shall be a reference to a Subsidiary of Borrower. “Supply Agreement” means that certain supply agreement, as in effect on the First  Amendment Effective Date, by and between QIAGEN GmbH, dated as of May 12, 2021, whereby  Borrower (a) licenses certain rights in the QIAGEN Patents to QIAGEN GmbH and (b) purchases  certain reagents incorporating the QIAGEN Patents.  “Taxes” means all present or future taxes, levies, imposts, duties, deductions,  withholdings (including backup withholding), assessments, fees or other charges imposed by any  Governmental Authority, including any interest, additions to tax or penalties applicable thereto. “Technical Information” means all trade secrets and other proprietary or confidential  information, which may include any information of a scientific, technical, or business nature in  any form or medium, standards and specifications, conceptions, ideas, innovations, discoveries,  Invention disclosures, all documented research, developmental, demonstration or engineering  work, data, plans, specifications, reports, summaries, experimental data, manuals, models,  samples, know-how, technical information, systems, methodologies, computer programs or  

 

-23- information technology. “Third Amendment” means the Third Amendment to Credit Agreement and Guaranty,  dated as of March 30, 2022, among Borrower, the Lenders and the Administrative Agent.  “Third Amendment Effective Date” means March 30, 2022.  “Title IV Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA)  other than a Multiemployer Plan (a) that is or was at any time maintained or sponsored by any  Obligor or any ERISA Affiliate thereof or to which any Obligor or any ERISA Affiliate thereof  has ever made, or was obligated to make, contributions, and (b) that is or was subject to Section  412 of the Code, Section 302 of ERISA or Title IV of ERISA. “Total Revenue” means, with respect to the Obligors, all amounts paid to and received by  such Person in the ordinary course of business that, in accordance with GAAP, would be classified  as net revenue. “Trademarks” has the meaning set forth in the Security Documents. “Tranche A Loan” means each loan advanced by a Lender pursuant to Section 2.01(a).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche A Loan on any date of determination shall mean the aggregate principal amount of the  Tranche A Loan made pursuant to Section 2.01(a) that has not yet been repaid as of such date. “Tranche A Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche A Loan and “Tranche A Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche A Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche A Loan Commitments as of the  Closing Date is $25,000,000. “Tranche B Loan” means each loan advanced by a Lender pursuant to Section 2.01(b).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche B Loan on any date of determination shall mean the aggregate principal amount of the  Tranche B Loan made pursuant to Section 2.01(b) that has not yet been repaid as of such date. “Tranche B Loan Borrowing Date” means with respect to the Tranche B Loan, the  Business Day on which all conditions set forth in Section 6.02 have been satisfied or waived by the  Lenders and the Tranche B Loan is made hereunder. “Tranche B Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche B Loan and “Tranche B Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche B Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche B Loan Commitments as of the First  Amendment Effective Date is $10,000,000. “Tranche B Loan Commitment Termination Date” means May 28, 2021. 

 

-24- “Tranche C Loan” means each loan advanced by a Lender pursuant to Section 2.01(c).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche C Loan on any date of determination shall mean the aggregate principal amount of the  Tranche C Loan made pursuant to Section 2.01(c) that has not yet been repaid as of such date. “Tranche C Loan Borrowing Date” means with respect to the Tranche C Loan, the  Business Day on which all conditions set forth in Section 6.03 have been satisfied or waived by the  Lenders and the Tranche C Loan is made hereunderThird Amendment Effective Date. “Tranche C Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche C Loan and “Tranche C Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche C Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche C Loan Commitments as of the First  Amendment Effectiveafter giving effect to the Tranche C Term Loan made on the Tranche C Loan  Borrowing Date is $15,000,0000. “Tranche D Loan” means each loan advanced by a Lender pursuant to Section 2.01(d).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche D Loan on any date of determination shall mean the aggregate principal amount of the  Tranche D Loan made pursuant to Section 2.01(d) that has not yet been repaid as of such date. “Tranche D Loan Borrowing Date” means with respect to the Tranche D Loan, the  Business Day on which all conditions set forth in Section 6.04 have been satisfied or waived by the  Lenders and the Tranche D Loan is made hereunder. “Tranche D Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche D Loan and “Tranche D Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche D Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche D Loan Commitments as of the  Third Amendment Effective Date is $7,500,000. “Tranche CD Loan Commitment Termination Date” means MarchJune 3130, 2022. “Transactions” means the execution, delivery and performance by each Obligor of this  Agreement and the other Loan Documents to which such Obligor is a party and the other  transactions contemplated hereby and thereby, including disbursement and application of the  proceeds of the Loans. “UK Financial Institution” means any BRRD Undertaking (as such term is defined under  the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom  Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook  (as amended from time to time) promulgated by the United Kingdom Financial Conduct  Authority, which includes certain credit institutions and investment firms, and certain affiliates of  such credit institutions or investment firms. “UK Resolution Authority” means the Bank of England or any other public administrative  

 

-25- authority having responsibility for the resolution of any UK Financial Institution. “Unrestricted Cash” means the balance of unencumbered cash (other than cash  encumbered by the Liens granted to the Lenders pursuant to the Loan Documents) and Permitted  Cash Equivalent Investments (which for greater certainty shall not include any undrawn credit  lines), in each case, to the extent held in a Controlled Account. “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30)  of the Code. “U.S. Tax Compliance Certificate” has the meaning set forth in Section 5.03(f)(ii)(B)(3). “Warrant Certificate” means the warrant to be delivered to the Administrative Agent  pursuant to Section 6.01(i) that, among other things, grants the holder thereof the right to purchase  the number of shares of Series D Preferred Stock of Borrower as indicated on the Warrant Shares  table on Schedule 1, as theAmended and Restated Warrant Certificate may be amended, replaced  or otherwise modified pursuant to the terms thereof. “Warrant Obligations” means, with respect to Borrower, all of its Obligations arising out  of, under or in connection with, any Warrant Certificate. “Withdrawal Liability” means, at any time, any liability incurred (whether or not assessed)  by any ERISA Affiliate and not yet satisfied or paid in full at such time with respect to any  Multiemployer Plan pursuant to Section 4201 of ERISA. “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down  and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect  to the United Kingdom,  any powers of the applicable Resolution Authority  under the Bail-In  Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial  Institution  or any contract or instrument under which that liability arises, to convert all or part of  that liability into shares, securities or obligations of that person or any other person, to provide that  any such contract or instrument is to have effect as if a right had been exercised under it or to  suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers. Section 1.02. Accounting Terms and Principles.  All accounting determinations required to  be made pursuant hereto shall, unless expressly otherwise provided herein, be made substantially  in accordance with GAAP.  If, after the date hereof, any change occurs in GAAP or in the  application thereof (an “Accounting Change”) and such change would cause any amount required  to be determined for the purposes of the covenants to be maintained or calculated pursuant to  Article 8 or 9 to be materially different than the amount that would be determined prior to such  change, then Borrower will provide a detailed notice of such change (an “Accounting Change  Notice”) to the Administrative Agent in conjunction with the next required delivery of financial  statements pursuant to Section 8.01.  If Borrower requests an amendment to any provision hereof  

 

-26- to eliminate the effect of any Accounting Change occurring after the Closing Date or in the  application thereof on the operation of such provision, regardless of whether any Accounting  Change Notice is given before or after such Accounting Change or in the application thereof, then  the Administrative Agent and Borrower agree that they will negotiate in good faith amendments to  the provisions of this Agreement that are directly affected by such Accounting Change with the  intent of having the respective positions of the Administrative Agent and Borrower after such  Accounting Change conform as nearly as possible to their respective positions as of the date of this  Agreement and, until any such amendments have been agreed upon, (a) the provisions in this  Agreement shall be calculated as if no such Accounting Change had occurred and (b) Borrower  shall provide to the Administrative Agent a written reconciliation in form and substance  reasonably satisfactory to the Administrative Agent, between calculations of any baskets and other  requirements hereunder before and after giving effect to such Accounting Change. All components of financial calculations made to determine compliance with this Agreement shall  be adjusted to include or exclude, as the case may be, without duplication, such components of  such calculations attributable to any Acquisition or disposition of assets consummated after the  first day of the applicable period of determination and prior to the end of such period, as  determined in good faith by Borrower based on assumptions expressed therein and that were  reasonable based on the information available to Borrower at the time of preparation of the  Compliance Certificate setting forth such calculations. Section 1.03. Interpretation.  For all purposes of this Agreement, except as otherwise  expressly provided herein or unless the context otherwise requires, (a) the terms defined in this  Agreement include the plural as well as the singular and vice versa; (b) words importing gender  include all genders; (c) any reference to a Section, Article, Annex, Schedule or Exhibit refers to a  Section or Article of, or Annex, Schedule or Exhibit to, this Agreement; (d) any reference to “this  Agreement” refers to this Agreement, including all Annexes, Schedules and Exhibits hereto, and  the words herein, hereof, hereto and hereunder and words of similar import refer to this Agreement  and its Annexes, Schedules and Exhibits as a whole and not to any particular Section, Article,  Annex, Schedule, Exhibit or any other subdivision; (e) references to days, months and years refer  to calendar days, months and years, respectively; (f) all references herein to “include” or  “including” shall be deemed to be followed by the words “without limitation”; (g) the word “from”  when used in connection with a period of time means “from and including” and the word “until”  means “to but not including”; and (h) accounting terms not specifically defined herein shall be  construed substantially in accordance with GAAP (except for the term “property,” which shall be  interpreted as broadly as possible, including, in any case, cash, securities, other assets, rights under  contractual obligations and permits and any right or interest in any property, except where  otherwise noted).  Unless otherwise expressly provided herein, references to organizational  documents, agreements (including the Loan Documents) and other contractual instruments shall  be deemed to include all subsequent amendments, restatements, extensions, supplements and other  modifications thereto permitted by the Loan Documents. Section 1.04. Divisions.  For all purposes under the Loan Documents, in connection with  any division or plan of division under Delaware law (or any comparable event under a different  jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset,  right, obligation or liability of a different Person, then it shall be deemed to have been transferred  

 

-27- from the original Person to the subsequent Person and (b) if any new Person comes into existence,  such new Person shall be deemed to have been organized on the first date of its existence by the  holders of its Equity Interests at such time. ARTICLE 2 THE COMMITMENTS Section 2.01. Loans. (a) Tranche A Loan. (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche A Loan to Borrower on the Closing Date in  Dollars in a principal amount equal to such Lender’s Tranche A Loan Commitment.  No  Lender shall have an obligation to make a Tranche A Loan in excess of such Lender’s  Tranche A Loan Commitment. (ii) Subject to the terms and conditions of this Agreement (including Section  6.01), Borrower shall deliver to the Administrative Agent a fully executed Borrowing  Notice no later than 5 p.m. (New York City time) at least one (1) Business Day in advance  of the Closing Date. (iii) Borrower may make one borrowing under the Tranche A Loan  Commitment which shall be on the Closing Date.  Subject to Section 3.03, all amounts  owed hereunder with respect to the Tranche A Loan shall be paid in full no later than the  Maturity Date.  Each Lender’s Tranche A Loan Commitment shall terminate immediately  and without further action on the Closing Date after giving effect to the funding of such  Lender’s Tranche A Loan Commitment on such date. (b) Tranche B Loan. (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche B Loan to Borrower on the Tranche B Loan  Borrowing Date in Dollars in a principal amount equal to such Lender’s Tranche B Loan  Commitment.  No Lender shall have an obligation to make a Tranche B Loan in excess of  such Lender’s Tranche B Loan Commitment. (ii) Subject to the terms and conditions of this Agreement (including Section  6.02), Borrower shall deliver to the Administrative Agent a fully executed Borrowing  Notice no later than 5 p.m. (New York City time) at least three (3) Business Days in  

 

-28- advance of the proposed Tranche B Loan Borrowing Date. (iii) Borrower may make one borrowing under the Tranche B Loan  Commitment which shall be on the Tranche B Loan Borrowing Date. Subject to Section  3.03, all amounts owed hereunder with respect to the Tranche B Loan shall be paid in full  no later than the Maturity Date.  Each Lender’s Tranche B Loan Commitment shall  terminate immediately and without further action on the earlier of (x) the Tranche B Loan  Borrowing Date after giving effect to the funding of such Lender’s Tranche B Loan  Commitment on such date and (y) the Tranche B Loan Commitment Termination Date. (c) Tranche C Loan. (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche C Loan to Borrower on the Tranche C Loan  Borrowing Date in Dollars in a principal amount equal to such Lender’s Tranche C Loan  Commitment.  No Lender shall have an obligation to make a Tranche C Loan in excess of  such Lender’s Tranche C Loan Commitment. (ii) Subject to the terms and conditions of this Agreement (including Section  6.03), Borrower shall deliver to the Administrative Agent a fully executed Borrowing  Notice no later than 5 p.m. (New York City time) at least three (3) Business Days in  advance of the proposed Tranche C Loan Borrowing Date. (iii) Borrower may make one borrowing under the Tranche C Loan  Commitment which shall be on the Tranche C Loan Borrowing Date. Subject to Section  3.03, all amounts owed hereunder with respect to the Tranche C Loan shall be paid in full  no later than the Maturity Date.   (d) Tranche D Loan. (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche D Loan to Borrower on the Tranche D Loan  Borrowing Date in Dollars in a principal amount equal to such Lender’s Tranche D Loan  Commitment.  No Lender shall have an obligation to make a Tranche D Loan in excess of  such Lender’s Tranche D Loan Commitment. (ii) Subject to the terms and conditions of this Agreement (including Section  6.04), Borrower shall deliver to the Administrative Agent a fully executed Borrowing  Notice no later than 5 p.m. (New York City time) at least three (3) Business Days in  advance of the proposed Tranche D Loan Borrowing Date. (iii) Borrower may make one borrowing under the Tranche D Loan  Commitment which shall be on the Tranche D Loan Borrowing Date. Subject to Section  3.03, all amounts owed hereunder with respect to the Tranche D Loan shall be paid in full  

 

-29- no later than the Maturity Date.  Each Lender’s Tranche CD Loan Commitment shall  terminate immediately and without further action on the earlier of (x) the Tranche CD Loan  Borrowing Date after giving effect to the funding of such Lender’s Tranche CD Loan  Commitment on such date and (y) the Tranche CD Loan Commitment Termination Date. (ce) Any principal amount of any Loans borrowed under Section 2.01(a), 2.01(b), 2.01(c)  or 2.01(cd) hereof and subsequently repaid or prepaid may not be reborrowed. Section 2.02. Proportionate Shares.  All Loans shall be made, and all participations  purchased, by the Lenders simultaneously and proportionately to their respective Proportionate  Shares, it being understood that no Lender shall be responsible for any default by any other Lender  in such other Lender’s obligation to make a Loan hereunder or purchase a participation required  hereby nor shall the Commitment of any Lender be increased or decreased as a result of a default  by any other Lender in such other Lender’s obligation to make a Loan requested hereunder or  purchase a participation required hereby. Section 2.03. Fees.  On the Closing Date, Borrower shall pay to the Administrative Agent  (out of the proceeds of the Tranche A Loan advanced by such Lenders on the Closing Date) for  distribution to each Lender in accordance with its pro rata share of Loans, a non-refundable fee  (the “Closing Fee”) in the amount of $750,000.  Payment of the Closing Fee shall be in addition to  such fees, costs and expenses due and payable pursuant to Section 12.03. Section 2.04. Notes.  Upon the request of any Lender, Borrower shall prepare, execute and  deliver to such Lender one or more Notes evidencing the Loans payable to such Lender (or if  requested by it, to it and its registered assigns). Section 2.05. Use of Proceeds.  Borrower shall use the proceeds of the Loans (a) for  general working capital purposes and corporate purposes, (b) to refinance certain existing  Indebtedness on the Closing Date and (c) to pay, in accordance with the funds flow attached to the  Borrowing Notice, fees, costs and expenses incurred in connection with the Transactions. ARTICLE 3 PAYMENTS OF PRINCIPAL AND INTEREST Section 3.01. Repayment.  There will be no scheduled repayments of principal on the Loans  prior to the Maturity Date.  The entire outstanding principal amount of the Loans, together with all  accrued and unpaid interest thereon, will be due and payable on the Maturity Date. Section 3.02. Interest. (a) Interest Generally.  Borrower agrees to pay to the Lenders interest in cash on the  outstanding principal amount of the Loans for each Interest Period at a rate per annum equal to the  sum of (i) LIBOR plus (ii) the Applicable Margin. (b) LIBOR Not Determinable.  If on or before the day on which LIBOR is to be  

 

-30- determined, the Majority Lenders reasonably determine that (i) LIBOR cannot be determined for  any reason, (ii) LIBOR will not adequately and fairly reflect the cost of maintaining the Loans or  (iii) Dollar deposits in the principal amount of the Loans are not available in the London interbank  market, the Majority Lenders shall, as soon as practicable thereafter, give written notice of such  determination to Borrower and the Administrative Agent.  Upon any such determination, LIBOR  shall be LIBOR as of the end of the immediately preceding Interest Period and shall at all times  thereafter bear interest at LIBOR as of the end of the immediately preceding Interest Period.  Each  determination by the Majority Lenders hereunder shall be conclusive and binding absent manifest  error. (c) Replacement to LIBOR.  If at any time the Administrative Agent reasonably  determines (which determination shall be conclusive absent manifest error) that (i) the  circumstances set forth in clause (b)(i) of this Section have arisen and such circumstances are  unlikely to be temporary or (ii) the circumstances set forth in clause (b)(i) of this Section have not  arisen but the supervisor for the administrator of LIBOR has made a public statement identifying a  specific date after which LIBOR shall no longer be used for determining interest rates for loans,  then the Administrative Agent and Borrower shall endeavor to establish an alternate rate of interest  to LIBOR that gives due consideration to the then-prevailing market convention for determining a  rate of interest for syndicated loans in the United States at such time, and shall enter into an  amendment to this Agreement to reflect such alternate rate of interest and such other related  changes to this Agreement as may be applicable; provided that, if such alternate rate of interest  shall be less than 1.75%, such rate shall be deemed to be 1.75% for the purposes of this  Agreement.  Notwithstanding anything to the contrary in Section 13.04, such amendment shall  become effective without any further action or consent of any other party to this Agreement so  long as the Administrative Agent shall not have received, within five (5) Business Days of the date  notice of such alternate rate of interest is provided to the Lenders, a written notice from the  Majority Lenders stating that such Lenders object to such amendment. (d) Default Interest.  Notwithstanding the foregoing, upon the occurrence and during the  continuance of any Event of Default, the Applicable Margin shall increase automatically by 4.00%  per annum (the interest rate, as increased pursuant to this Section 3.02(d), being the “Default  Rate”).  Notwithstanding any other provision herein, if interest is required to be paid at the Default  Rate, it shall also be paid entirely in cash.  If any Obligation is not paid when due under any  applicable Loan Document, the amount thereof shall accrue interest at the Default Rate. Payment  or acceptance of the increased rates of interest provided for in this Section 3.02(d) is not a  permitted alternative to timely payment and shall not constitute a waiver of any Default or  otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender. (e) Payment Dates.  Accrued interest on the Loans shall be payable in arrears on each  Payment Date with respect to the most recently completed Interest Period in cash, and upon the  payment or prepayment of the Loans (on the principal amount being so paid or prepaid); provided  that interest payable at the Default Rate shall be payable from time to time on demand by the  Majority Lenders. (f) Maximum Rate.  Notwithstanding any other provision of this Agreement, in no event  will any interest or rates referred to herein exceed the maximum interest rate permitted by  

 

-31- applicable Law.  If such maximum interest rate would be exceeded by the terms hereof, the rates of  interest payable hereunder will be reduced to the extent necessary so that such rates (together with  any fees or other amounts which are construed by a court of competent jurisdiction to be interest or  in the nature of interest) equal the maximum interest rate permitted by applicable Law and any  overpayment of interest received by the Lenders before such rates are so construed will be applied,  forthwith after determination of such overpayment, to pay all then outstanding interest, and  thereafter to pay outstanding principal. Section 3.03. Prepayments. (a) Optional Prepayments.  (i) Borrower shall have the right to optionally prepay in  whole or in part (in a minimum amount of $500,000 and integral multiples of $100,000 in excess  of that amount for each partial prepayment, or, if less, the entire outstanding principal amount of  the Loans) the outstanding principal amount of the Loans on any Business Day (a “Redemption  Date”) for an amount equal to the sum of (x) the aggregate principal amount of the Loans being  prepaid, (y) the prepayment premium set forth in clause (ii) below (the “Prepayment Premium”)  and (z) any accrued but unpaid interest in respect of the aggregate principal amount of the Loans  being prepaid (such aggregate amount, the “Redemption Price”).  The applicable Prepayment  Premium shall be an amount calculated pursuant to Section 3.03(a)(ii). (ii) If the Redemption Date occurs: (A) on or prior to the first anniversary of the Closing Date, the  Prepayment Premium shall be an amount equal to seven percent (7%) of the  aggregate outstanding principal amount of the Loans being prepaid on such  Redemption Date; (B) after the first anniversary of the Closing Date and on or prior to the  second anniversary of the Closing Date, the Prepayment Premium shall be an  amount equal to six percent (6%) of the aggregate outstanding principal amount of  the Loans being prepaid on such Redemption Date; (C) after the second anniversary of the Closing Date and on or prior to  the third anniversary of the Closing Date, the Prepayment Premium shall be an  amount equal to four percent (4%) of the aggregate outstanding principal amount of  the Loans being prepaid on such Redemption Date; (D) after the third anniversary of the Closing Date and on or prior to the  fourth anniversary of the Closing Date, the Prepayment Premium shall be an  amount equal to three percent (3%) of the aggregate outstanding principal amount  of the Loans being prepaid on such Redemption Date; and (E) after the fourth anniversary of the Closing Date and prior to the  Stated Maturity Date, the Prepayment Premium shall be an amount equal to two  percent (2%) of the aggregate outstanding principal amount of the Loans being  

 

-32- prepaid on such Redemption Date. No Prepayment Premium shall be due with respect to repayment of the Loans on the Stated Maturity Date. (iii) Payment of any Prepayment Premium under this Section 3.03 constitutes  liquidated damages, not unmatured interest or a penalty, as the actual amount of damages  to the Lenders as a result of the relevant triggering event, prepayment or repayment would  be impracticable and extremely difficult to ascertain.  Accordingly, any Prepayment  Premium hereunder is provided by mutual agreement of the Obligors and the Lenders as a  reasonable estimation and calculation of such actual lost profits and other actual damages  of the Lenders.  Without limiting the generality of the foregoing, it is understood and  agreed that upon the occurrence of any prepayment event, any Prepayment Premium shall  be automatically and immediately due and payable as though any prepaid or repaid portion  of the Loans were voluntarily prepaid as of such date and shall constitute part of the  Obligations secured by the Collateral.  Any Prepayment Premium shall also be  automatically and immediately due and payable if the Loans are satisfied or released by  foreclosure (whether by power of judicial proceeding or otherwise), deed in lieu of  foreclosure or by any other means.  EACH OBLIGOR HEREBY EXPRESSLY WAIVES  (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF  ANY PRESENT OR FUTURE STATUTE OR OTHER LAW THAT PROHIBITS OR  MAY PROHIBIT THE COLLECTION OF THE FOREGOING PREPAYMENT  PREMIUM IN CONNECTION WITH ANY SUCH EVENTS.  Borrower and the other  Obligors expressly agree (to the fullest extent it and they may lawfully do so) that with  respect to any Prepayment Premium payable under the terms of this Agreement: (A) such  Prepayment Premium is reasonable and is the product of an arm’s length transaction  between sophisticated business parties, ably represented by counsel; (B) such Prepayment  Premium shall be payable notwithstanding the then-prevailing market rates at the time  payment is made; (C) there has been a course of conduct between the Lenders and the  Obligors giving specific consideration in this transaction for such agreement to pay such  Prepayment Premium; and (D) the Obligors shall be estopped hereafter from claiming  differently than as agreed to in this paragraph.  The Obligors expressly acknowledge that  their agreement to pay such Prepayment Premium as herein described is a material  inducement to the Lenders to provide the Commitments and to make the Loans. (b) Mandatory Prepayments.  Borrower shall prepay the Loans in amounts as provided  below, plus the Prepayment Premium on the principal amount of the Loans being prepaid  (calculated in accordance with Section 3.03(a)(ii), it being agreed that the relevant payment date  shall be deemed to be the “Redemption Date” for purposes of such calculation), plus any accrued  but unpaid interest and fees then due and owing, as follows: (i) In the event of any Casualty Event, an amount equal to 100% of the Net  Cash Proceeds received by any Obligor with respect thereto; provided, however, so long as  no Default has occurred and is continuing, within one hundred eighty (180) days after  receipt of such Net Cash Proceeds, the Obligors may apply the Net Cash Proceeds of any  casualty policy up to $1,000,000 with respect to any loss, but not exceeding $2,000,000 in  

 

-33- the aggregate for all losses under all casualty policies during the term of this Agreement,  toward the replacement or repair of destroyed or damaged property; provided, further, that  any such replaced or repaired property shall be Collateral in which the Administrative  Agent for the benefit of the Lenders has been granted a security interest under the Security  Documents. (ii) In the event any Obligor incurs Indebtedness other than Indebtedness that is  permitted by Section 9.01 hereof, 100% of the Net Cash Proceeds thereof received by such  Obligor.  For the avoidance of doubt, any partial prepayment made pursuant to this Section  3.03(b)(ii) shall not be deemed to be a consent to any such incurrence of Indebtedness or a  cure or waiver of any Event of Default which occurs in connection therewith, it being  understood that any such Event of Default may only be waived with the express consent of  the Majority Lenders. (iii) In the event any Obligor consummates an Asset Sale other than an Asset  Sale that is permitted by Section 9.09 hereof (other than Section 9.09(i)), 100% of the Net  Cash Proceeds received by such Obligor in connection with such Asset Sale; provided,  however, so long as no Default has occurred and is continuing, within one hundred eighty  (180) days after receipt of such Net Cash Proceeds, the Obligors may use such Net Cash  Proceeds not exceeding $500,000 in the aggregate for all Asset Sales during the term of  this Agreement, to purchase, replace, repair or restore properties or assets used in the  Obligors’ businesses; provided, further, that any such purchased, replaced, repaired or  restored property shall be Collateral in which the Administrative Agent for the benefit of  the Lenders has been granted a security interest under the Security Documents.  For the  avoidance of doubt, any partial prepayment made pursuant to this Section 3.03(b)(iii) shall  not be deemed to be a consent to any Asset Sale or a cure or waiver of any Event of Default  which occurs in connection therewith, it being understood that any such Event of Default  may only be waived with the express consent of the Majority Lenders. ARTICLE 4 PAYMENTS Section 4.01. Payments. (a) Payments Generally.  Each payment of principal, interest and other amounts to be  made by the Obligors under this Agreement or any other Loan Document shall be made in Dollars,  in immediately available funds, without deduction, set off or counterclaim, to the deposit account  of the Administrative Agent specified to Borrower from time to time, not later than 2:00 p.m.  (Eastern time) on the date on which such payment shall become due (each such payment made  after such time on such due date to be deemed to have been made on the next succeeding Business  Day). (b) Application of Payments.  Each payment under this Agreement or any other Loan  Document shall be applied in the following order of priority, with proceeds being applied to a  succeeding level of priority only if amounts owing pursuant to the immediately preceding level of  

 

-34- priority have been paid in full in cash: (i) first, to the payment of any unpaid costs and expenses referred to in Section  13.03(a) then due and owing; (ii) second, in reduction of Borrower’s obligation to pay any unpaid interest  and any fees then due and owing including, without limitation, (x) interest payable  pursuant to Section 3.02(d) and (y) any Prepayment Premium, if applicable; (iii) third, in reduction of Borrower’s obligation to pay any Claims or Losses  referred to in Section 13.03(b) then due and owing; (iv) fourth, to the payment of unpaid principal of the Loans on a pro rata basis; (v) fifth, in reduction of any other Obligation then due and owing; and (vi) sixth, to Borrower or such other Persons as may lawfully be entitled to or  directed by Borrower to receive the remainder. Unless otherwise directed by the Majority Lenders, all payments of principal, interest and fees  under this Agreement and the other Loan Documents shall be made by the Obligors to the Lenders  pro rata in accordance with the Lenders’ respective Proportionate Shares of such payments. (c) Non-Business Days.  If the due date of any payment under this Agreement (whether in  respect of principal, interest, fees, costs or otherwise) would otherwise fall on a day that is not a  Business Day, such date shall be extended to the next succeeding Business Day, and, in the case of  any payment accruing interest, interest thereon shall be payable for the period of such extension. Section 4.02. Computations.  All computations of interest and fees hereunder shall be  computed on the basis of a year of 360 days and actual days elapsed during the period for which  payable. Section 4.03. Notices.  Each notice of optional prepayment shall be effective only if  received by the Lenders not later than 2:00 p.m. (Eastern time) on the date three (3) Business Days  prior to the date of prepayment.  Each notice of optional prepayment shall specify the amount to be  prepaid and the date of prepayment. Section 4.04. Set-Off. (a) Set-Off Generally.  Upon the occurrence and during the continuance of any Event of  Default, the Administrative Agent, the Lenders and each of their respective Affiliates are hereby  authorized at any time and from time to time, to the fullest extent permitted by Law, to set off and  apply any and all deposits (general or special, time or demand, provisional or final) at any time  held and other indebtedness at any time owing by the Lenders or such Affiliates to or for the credit  or the account of any Obligor against any and all of the Obligations, whether or not the Lenders  shall have made any demand and although such Obligations may be unmatured.  Any Person  

 

-35- exercising rights of set-off hereunder agrees to promptly notify Borrower after any such set-off  and application, provided that the failure to give such notice shall not affect the validity of such  set-off and application.  The rights of the Lenders and their respective Affiliates under this Section  4.04 are in addition to other rights and remedies (including other rights of set-off) that the Lenders  and their respective Affiliates may have. (b) Exercise of Rights Not Required.  Nothing contained herein shall require the  Administrative Agent, the Lenders or any of their respective Affiliates to exercise any such right or  shall affect the right of such Persons to exercise, and retain the benefits of exercising, any such  right with respect to any other indebtedness or obligation of any Obligor. ARTICLE 5 YIELD PROTECTION Section 5.01. Additional Costs. (a) Change in Requirements of Law Generally.  If, on or after the date hereof, the  adoption of any Requirement of Law, or any change in any Requirement of Law, or any change in  the interpretation or administration thereof by any court or other Governmental Authority charged  with the interpretation or administration thereof, or compliance by any Lender (or its lending  office) with any request or directive (whether or not having the force of law) of any such  Governmental Authority, shall impose, modify or deem applicable any reserve (including any  such requirement imposed by the Board of Governors of the Federal Reserve System), special  deposit, contribution, insurance assessment or similar requirement, in each case that becomes  effective after the date hereof, against assets of, deposits with or for the account of, or credit  extended by, a Lender (or its lending office) or shall impose on a Lender (or its lending office) any  other condition affecting the Loans or the Commitment, not as a result of any action or inaction on  the part of such Lender, and the result of any of the foregoing is to increase the cost to any Lender  of making or maintaining its portion of the Loans, or to reduce the amount of any sum received or  receivable by any Lender under this Agreement or any other Loan Document, by an amount  reasonably deemed by such Lender in good faith to be material (other than (i) Indemnified Taxes,  (ii) Taxes described in clauses (b) through (d) of the definition of “Excluded Taxes” and (iii)  Connection Income Taxes), then Borrower shall, without duplication, pay to such Lender on  demand therefor such additional amount or amounts as will compensate such Lender for such  increased cost or reduction.  Notwithstanding anything herein to the contrary, (x) the Dodd-Frank  Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives  thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives  promulgated by the Bank for International Settlements, the Basel Committee on Banking  Supervision (or any successor or similar authority) or the United States or foreign regulatory  authorities, in each case pursuant to Basel III, shall in each case be deemed to constitute a change  in Requirements of Law for all purposes of this Section 5.01, regardless of the date enacted,  adopted or issued. (b) Change in Capital Requirements.  If a Lender shall have determined that, on or after  the date hereof, the adoption of any Requirement of Law regarding capital adequacy, or any  

 

-36- change therein, or any change in the interpretation or administration thereof by any Governmental  Authority charged with the interpretation or administration thereof, or any request or directive  regarding capital adequacy (whether or not having the force of law) of any such Governmental  Authority, in each case that becomes effective after the date hereof, has or would have the effect of  reducing the rate of return on capital of a Lender (or its parent) as a consequence of a Lender’s  obligations hereunder or the Loans to a level below that which a Lender (or its parent) could have  achieved but for such adoption, change, request or directive by an amount reasonably deemed by it  to be material, then Borrower shall pay to such Lender on demand therefor such additional amount  or amounts as will compensate such Lender (or its parent) for such reduction. (c) Notification by Lender.  The Lenders will promptly notify Borrower of any event of  which it has knowledge, occurring after the date hereof, which will entitle a Lender to  compensation pursuant to this Section 5.01.  Before giving any such notice pursuant to this Section  5.01(c) such Lender shall designate a different lending office if such designation (x) will, in the  reasonable judgment of such Lender, avoid the need for, or reduce the amount of, such  compensation and (y) will not, in the reasonable judgment of such Lender, be materially  disadvantageous to such Lender.  A certificate of the Lender claiming compensation under this  Section 5.01, setting forth the amount or amounts to be paid to it hereunder, shall be conclusive  and binding on Borrower in the absence of manifest error. Section 5.02. Illegality.  Notwithstanding any other provision of this Agreement, in the  event that on or after the date hereof the adoption of or any change in any Requirement of Law or  in the interpretation or application thereof by any competent Governmental Authority shall make it  unlawful for a Lender or its lending office to make or maintain the Loans (and, in the opinion of  such Lender, the designation of a different lending office would either not avoid such  unlawfulness or would be disadvantageous to such Lender), then such Lender shall promptly  notify Borrower thereof following which (a) the Lender’s Commitment shall be suspended until  such time as such Lender may again make and maintain the Loans hereunder and (b) if such  Requirement of Law shall so mandate, the Loans shall be prepaid by Borrower on or before such  date as shall be mandated by such Requirement of Law in an amount equal to the Redemption  Price applicable on the date of such prepayment in accordance with Section 3.03(a); provided that  no Prepayment Premium pursuant to Section 3.03(a)(ii) shall be due with respect thereto. Section 5.03. Taxes. (a) Payments Free of Taxes.  Any and all payments by or on account of any Obligation  shall be made without deduction or withholding for any Taxes, except as required by applicable  Law.  If any applicable Law (as determined in the good faith discretion of the Administrative  Agent) requires the deduction or withholding of any Tax from any such payment by an Obligor,  then such Obligor shall be entitled to make such deduction or withholding and shall timely pay the  full amount deducted or withheld to the relevant Governmental Authority in accordance with  applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by such Obligor shall  be increased as necessary so that after such deduction or withholding for Indemnified Taxes has  been made (including such deductions and withholdings for Indemnified Taxes applicable to  additional sums payable under this Section 5.03) the applicable Recipient receives an amount  equal to the sum it would have received had no such deduction or withholding for Indemnified  

 

-37- Taxes been made.  For purposes of this Section, the term “applicable Law” includes FATCA. (b) Payment of Other Taxes by Borrower.  Borrower shall timely pay to the relevant  Governmental Authority in accordance with applicable Law, or at the option of the Administrative  Agent, timely reimburse it for, Other Taxes. (c) Evidence of Payments.  As soon as practicable after any payment of Taxes by  Borrower to a Governmental Authority, as a withholding Tax pursuant to this Section 5.03,  Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt  issued by such Governmental Authority evidencing such payment, or a copy of the return  reporting such payment or other evidence of such payment reasonably satisfactory to the  Administrative Agent. (d) Indemnification.  Borrower shall reimburse and indemnify each Recipient, within ten  (10) days after demand therefor, for the full amount of any Indemnified Taxes (including  Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section  5.03) payable or paid by such Recipient or required to be withheld or deducted from a payment to  such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or  not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant  Governmental Authority.  A certificate as to the amount of such payment or liability delivered to  Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent  on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. (e) Indemnification by the Lender.  Each Lender shall severally indemnify the  Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes  attributable to such Lender (but only to the extent that Borrower has not already indemnified the  Administrative Agent for such Indemnified Taxes and without limiting the obligation of Borrower  to do so), and (ii) any Taxes attributable to such Lender, in each case, that are payable or paid by  the Administrative Agent in connection with any Loan Document, and any reasonable expenses  arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally  imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of  such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive  absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and  apply any and all amounts at any time owing to such Lender under any Loan Document or  otherwise payable by the Administrative Agent to such Lender from any other source against any  amount due to the Administrative Agent under this paragraph (e). (f) Status of Lenders.  (i) Any Lender that is entitled to an exemption from, or reduction  of withholding Tax with respect to payments made under any Loan Document shall deliver to  Borrower and the Administrative Agent at the time or times reasonably requested by Borrower or  the Administrative Agent such properly completed and executed documentation reasonably  requested by Borrower or the Administrative Agent as will permit such payments to be made  without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably  requested by Borrower or the Administrative Agent, shall deliver such other documentation  prescribed by applicable Law or as reasonably requested by Borrower or the Administrative Agent  as will enable Borrower or the Administrative Agent to determine whether or not such Lender is  

 

-38- subject to backup withholding or information reporting requirements.  Notwithstanding anything  to the contrary in the preceding two sentences, the completion, execution and submission of such  documentation (other than such documentation set forth in Section 5.03(f)(ii)(A), (B) or (D)) shall  not be required if in the Lender’s reasonable judgment such completion, execution or submission  would subject such Lender to any material unreimbursed cost or expense or would materially  prejudice the legal or commercial position of such Lender. (ii) Without limiting the generality of the foregoing: (A) any Lender that is a U.S. Person shall deliver to Borrower and the  Administrative Agent on or prior to the date on which such Lender becomes a Lender  under this Agreement (and from time to time thereafter upon the reasonable request of  Borrower or the Administrative Agent), duly completed, valid, executed copies of IRS  Form W-9 (or successor form) certifying that such Lender is exempt from U.S. Federal  backup withholding Tax; (B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to Borrower and the Administrative Agent (in such number of copies as shall be requested  by the Recipient) on or prior to the date on which such Foreign Lender becomes a Lender  under this Agreement (and from time to time thereafter upon the reasonable request of  Borrower or the Administrative Agent), whichever of the following is applicable: (1) in the case of a Foreign Lender claiming the benefits of an income  Tax treaty to which the United States is a party (x) with respect to payments of  interest under any Loan Document, duly completed, valid executed copies of IRS  Form W-8BEN (or successor form) or IRS Form W-8BEN-E (or successor form)  establishing an exemption from, or reduction of, U.S. Federal withholding Tax  pursuant to the “interest” article of such Tax treaty and (y) with respect to any other  applicable payments under any Loan Document, duly completed, valid, executed  originals of IRS Form W-8BEN (or successor form) or IRS Form W-8BEN-E (or  successor form) establishing an exemption from, or reduction of, U.S. Federal  withholding Tax pursuant to the “business profits” or “other income” article of  such Tax treaty; (2) duly completed, valid, executed copies of IRS Form W-8ECI (or  successor form); (3) in the case of a Foreign Lender claiming the benefits of the  exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate  substantially in the form of Exhibit D to the effect that such Foreign Lender is not a  “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent  shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of the Code,  or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code  (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form  W-8BEN (or successor form) or IRS Form W-8BEN-E (or successor form); or 

 

-39- (4) to the extent a Foreign Lender is not the beneficial owner, duly  completed, valid, executed copies of IRS Form W-8IMY (or successor form),  accompanied by IRS Form W-8ECI (or successor form), IRS Form W-8BEN (or  successor form), IRS Form W-8BEN-E (or successor form), a U.S. Tax  Compliance Certificate, IRS Form W-9 (or successor form), and/or other  certification documents from each beneficial owner, as applicable; provided that if  the Foreign Lender is a partnership and one or more direct or indirect partners of  such Foreign Lender are claiming the portfolio interest exemption, such Foreign  Lender may provide a U.S. Tax Compliance Certificate on behalf of each such  direct and indirect partner; (C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to Borrower and the Administrative Agent (in such number of copies as shall be requested  by the Recipient) on or prior to the date on which such Foreign Lender becomes a Lender  under this Agreement (and from time to time thereafter upon the reasonable request of  Borrower or the Administrative Agent), executed copies of any other form prescribed by  applicable Law as a basis for claiming exemption from or a reduction in U.S. Federal  withholding Tax, duly completed, together with such supplementary documentation as  may be prescribed by applicable Law to permit Borrower or the Administrative Agent to  determine the withholding or deduction required to be made; and (D) if a payment made to a Lender under any Loan Document would be subject  to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply  with the applicable reporting requirements of FATCA (including those contained in  Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to  Borrower and the Administrative Agent at the time or times prescribed by Law and at such  time or times reasonably requested by Borrower or the Administrative Agent such  documentation prescribed by applicable Law (including as prescribed by Section  1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by  Borrower or the Administrative Agent as may be necessary for Borrower or the  Administrative Agent to comply with its obligations under FATCA and to determine that  such Lender has complied with such Lender’s obligations under FATCA or to determine  the amount, if any, to deduct and withhold from such payment.  Solely for purposes of this  clause (D), “FATCA” shall include any amendments made to FATCA after the date of this  Agreement. Each Recipient agrees that if any form or certification it previously delivered expires or becomes  obsolete or inaccurate in any respect, it shall promptly update such form or certification or  promptly notify Borrower and the Administrative Agent in writing of its legal inability to do so. (g) Treatment of Certain Refunds.  If any party to this Agreement determines, in its sole  discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been  indemnified pursuant to this Section 5.03 (including by the payment of additional amounts  pursuant to this Section 5.03), it shall pay to the indemnifying party an amount equal to such  refund (but only to the extent of indemnity payments made under this Section with respect to the  Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such  

 

-40- indemnified party and without interest (other than any interest paid by the relevant Governmental  Authority with respect to such refund).  Such indemnifying party, upon the written request of such  indemnified party, shall repay to such indemnified party the amount paid over pursuant to this  paragraph (plus any penalties, interest or other charges imposed by the relevant Governmental  Authority) in the event that such indemnified party is required to repay such refund to such  Governmental Authority.  Notwithstanding anything to the contrary in this Section 5.03(g), in no  event will the indemnified party be required to pay any amount to an indemnifying party pursuant  to this Section 5.03(g) the payment of which would place the indemnified party in a less favorable  net after-Tax position than the indemnified party would have been in if the Tax subject to  indemnification and giving rise to such refund had not been deducted, withheld or otherwise  imposed and the indemnification payments or additional amounts giving rise to such refund had  never been paid.  This Section 5.03(g) shall not be construed to require any indemnified party to  make available its Tax returns (or any other information relating to its Taxes that it deems  confidential) to the indemnifying party or any other Person. (h) Mitigation Obligations.  If Borrower is required to pay any Indemnified Taxes or  additional amounts to any Lender or to any Governmental Authority for the account of any Lender  pursuant to Section 5.01 or this Section 5.03, then such Lender shall (at the request of Borrower)  use commercially reasonable efforts to designate a different lending office for funding or booking  its Loans hereunder or to assign and delegate its rights and obligations hereunder to another of its  offices, branches or Affiliates if, in the sole reasonable judgment of such Lender, such designation  or assignment and delegation would (i) eliminate or reduce amounts payable pursuant to Section  5.01 or this Section 5.03, as the case may be, in the future, (ii) not subject such Lender to any  unreimbursed cost or expense and (iii) not otherwise be disadvantageous to such Lender. (i) Survival.  Each party’s obligations under this Article 5 shall survive the resignation or  replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a  Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all  Obligations under any Loan Document. Section 5.04. Delay in Requests.  Failure or delay on the part of any Lender to demand  compensation pursuant to this Article 5 shall not constitute a waiver of such Lender’s right to  demand such compensation; provided that Borrower shall not be required to compensate a Lender  pursuant to this Article for any increased costs incurred or reductions suffered more than six (6)  months prior to the date that such Lender notifies Borrower of the change in Law giving rise to  such increased costs or reductions, and of such Lender’s intention to claim compensation therefor  (except that, if the change in Law giving rise to such increased costs or reductions is retroactive,  then the six (6) month period referred to above shall be extended to include the period of  retroactive effect thereof). ARTICLE 6 CONDITIONS PRECEDENT Section 6.01. Conditions to Tranche A Loan; Closing Date.  The obligation of each Lender  to make the Tranche A Loan on the Closing Date shall not become effective until the following  

 

-41- conditions precedent shall have been reasonably satisfied or waived in writing by the  Administrative Agent (which satisfaction or waiver may be made simultaneously with the making  of the Tranche A Loan hereunder): (a) Organization and Capitalization.  The organizational structure and  pro-forma capitalization of the Obligors, after giving effect to the Transactions, as set forth  on Schedule 7.19 shall be satisfactory to the Administrative Agent. (b) Terms of Material Agreements.  The Administrative Agent shall be satisfied  in its sole discretion with the terms and conditions of all of the Obligors’ Material  Agreements. (c) No Law Restraining Transactions.  No applicable Law or regulation shall  restrain, prevent or, in the reasonable judgment of the Administrative Agent, impose  materially adverse conditions upon the Transactions. (d) Lien Searches.  The Administrative Agent shall be satisfied with Lien  searches regarding the Obligors made prior to the Closing Date. (e) Documentary Deliveries.  The Administrative Agent shall have received the  following documents, each of which shall be in form and substance satisfactory to the  Administrative Agent: (i) Agreement.  This Agreement duly executed and delivered by  Borrower and each of the other parties hereto. (ii) Security Documents.   (A) The Security Documents, including, without limitation, the  Security Agreement, each Short-Form IP Security Agreement and  financing statements, each in form and substance satisfactory to the  Administrative Agent and duly executed and delivered by each of the  Obligors and the other parties thereto. (B) The Collateral Questionnaire, duly executed and delivered  by a Responsible Officer of Borrower, substantially in the form of Exhibit I  hereto and otherwise in form and substance satisfactory to the  Administrative Agent. (C) Without limitation, all other documents and instruments  reasonably required to perfect the Administrative Agent’s Lien on, and  security interest in, the Collateral required to be delivered on or prior to the  Closing Date shall have been duly executed and delivered and be in proper  form for filing, and shall create in favor of the Administrative Agent, a  perfected Lien on, and security interest in, the Collateral, subject to no  Liens other than Permitted Liens. 

 

-42- (iii) Note.  Any Notes requested in accordance with Section 2.04. (iv) Approvals.  Borrower shall certify to the Administrative Agent that  all material licenses, consents, authorizations and approvals of, and notices to and  filings and registrations with, any Governmental Authority (including all foreign  exchange approvals) in connection with the Transactions have been made or  obtained, and all material third-party consents and approvals, necessary in  connection with the execution, delivery and performance by the Obligors of the  Loan Documents and the Transactions have been obtained. (v) Organizational Documents. (A) Certified copies of the  Organizational Documents of each Obligor and of resolutions of the Board (or  similar governing body) of each Obligor approving and authorizing the execution,  delivery and performance of this Agreement and each of the other Loan Documents  to which it is a party, certified as of the Closing Date by a Responsible Officer of  such Obligor as being in full force and effect without modification or amendment;  (B) a good standing certificate and/or compliance certificate from the applicable  Governmental Authority of each Obligor’s (x) jurisdiction of incorporation and (y)  jurisdiction(s) in which it is qualified as a foreign corporation or other entity to do  business (except where failure to be in good standing would not, either individually  or in the aggregate, reasonably be expected to have a Material Adverse Effect),  each dated a recent date prior to the Closing Date; and (C) such other documents as  the Administrative Agent may reasonably request. (vi) Incumbency Certificate.  A certificate of each Obligor as to the  authority, incumbency and specimen signatures of the persons who have executed  the Loan Documents and any other documents in connection herewith on behalf of  the Obligors. (vii) Opinion of Counsel.  A favorable opinion, dated as of the Closing  Date, of Wiggin and Dana LLP, counsel to each Obligor in form reasonably  acceptable to the Administrative Agent and its counsel. (viii) Evidence of Insurance.  Certificates from Borrower’s insurance  broker or other evidence satisfactory to the Administrative Agent that all insurance  required to be maintained pursuant to Section 8.05 is in full force and effect. (ix) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(a)(ii) duly executed and  delivered by a Responsible Officer of Borrower, in form and substance satisfactory  to the Administrative Agent. (f) Due Diligence.  The Administrative Agent shall have received and be  satisfied with all due diligence regarding the Obligors (including without limitation  historical financial statements, Projections, technical, operational, legal, intellectual  property, commercial market forecasts, clinical and regulatory assessments, supply chain,  

 

-43- securities, labor, Tax, litigation, environmental, reimbursement and regulatory authority  matters) in its sole discretion. (g) Indebtedness.  As of the Closing Date, after giving effect to the  Transactions, no Obligor shall have Indebtedness other than the Obligations and any  Indebtedness specified on Schedule 7.13A.  All amounts due or outstanding in respect of  any Indebtedness other than the Obligations and any Indebtedness specified on Schedule  7.13A shall have been repaid in full, all commitments (if any) in respect thereof terminated,  all guarantees (if any) thereof discharged and released and all security therefor (if any)  released, together with all fees and other amounts owing thereon, or documentation in form  and substance satisfactory to the Administrative Agent to effect such release upon such  repayment and termination shall have been delivered to the Administrative Agent. (h) Closing Fees, Expenses, Etc.  The Lenders and their Affiliates shall have  received for their own account, the Closing Fee and all fees, costs and expenses due  (including applicable attorney costs and the reasonable and documented out-of-pocket fees  and expenses of any other advisors to the Lenders) and payable pursuant to Section 13.03,  after deducting therefrom the Expense Deposit. (i) Warrant Certificate.  The Administrative Agent shall have received the  executed Warrant Certificate, dated as of the Closing Date. (j) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Closing Date; provided that to the extent that such  representations and warranties specifically refer to an earlier date, they shall be true and  correct in all material respects as of such earlier date; provided further that any  representation and warranty that is qualified as to “materiality”, “Material Adverse Effect”  or similar language shall be true and correct (after giving effect to any qualification  therein) in all respects. (k) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom. (l) Miscellaneous.  The Administrative Agent and each Lender shall have  received such other opinions, instruments, certificates and documents as the  Administrative Agent or such Lender shall have reasonably requested with prior notice to  Borrower. (m) Equity Raise.  Borrower shall have completed the Series D preferred equity  raise on terms and provisions reasonably satisfactory to the Administrative Agent, which  results in minimum gross cash proceeds to Borrower of at least $75,000,000. Section 6.02. Conditions to Tranche B Loan; Tranche B Loan Borrowing Date.  The  obligation of each Lender to make the Tranche B Loan on the Tranche B Loan Borrowing Date  shall not become effective until the following conditions precedent shall have been satisfied or  

 

-44- waived in writing by the Administrative Agent (which satisfaction or waiver may be made  simultaneously with the making of the Tranche B Loan hereunder): (a) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(b)(ii) requesting the Borrowing of the  Tranche B Loan duly executed by a Responsible Officer of Borrower and Borrower’s  updated Schedules to this Agreement (if any), in form and substance satisfactory to the  Administrative Agent. (b) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Tranche B Loan Borrowing Date; provided that to the  extent that such representations and warranties specifically refer to an earlier date, they  shall be true and correct in all material respects as of such earlier date; provided further that  any representation and warranty that is qualified as to “materiality”, “Material Adverse  Effect” or similar language shall be true and correct (after giving effect to any qualification  therein) in all respects. (c) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom. Section 6.03. Conditions to Tranche C Loan; Tranche C Loan Borrowing Date.  The  obligation of each Lender to make the Tranche C Loan on the Tranche C Loan Borrowing Date  shall not become effective until the following conditions precedent shall have been satisfied or  waived in writing by the Administrative Agent (which satisfaction or waiver may be made  simultaneously with the making of the Tranche C Loan hereunder): (a) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(c)(ii) requesting the Borrowing of the  Tranche C Loan duly executed by a Responsible Officer of Borrower and Borrower’s  updated Schedules to this Agreement (if any), in form and substance satisfactory to the  Administrative Agent. (b) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Tranche C Loan Borrowing Date; provided that to the  extent that such representations and warranties specifically refer to an earlier date, they  shall be true and correct in all material respects as of such earlier date; provided further that  any representation and warranty that is qualified as to “materiality”, “Material Adverse  Effect” or similar language shall be true and correct (after giving effect to any qualification  therein) in all respects. (c) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom. (d) Expenses, Etc.  The Lenders and their Affiliates shall have received for their  

 

-45- own account, all fees, costs and expenses due (including applicable attorney costs and the  reasonable and documented out-of-pocket fees and expenses of any other advisors to the  Lenders) and payable pursuant to Section 13.03. Section 6.04. Conditions to Tranche D Loan; Tranche D Loan Borrowing Date.  The  obligation of each Lender to make the Tranche D Loan on the Tranche D Loan Borrowing Date  shall not become effective until the following conditions precedent shall have been satisfied or  waived in writing by the Administrative Agent (which satisfaction or waiver may be made  simultaneously with the making of the Tranche D Loan hereunder): (a) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(d)(ii) requesting the Borrowing of the  Tranche D Loan duly executed by a Responsible Officer of Borrower and Borrower’s  updated Schedules to this Agreement (if any), in form and substance satisfactory to the  Administrative Agent. (b) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Tranche D Loan Borrowing Date; provided that to the  extent that such representations and warranties specifically refer to an earlier date, they  shall be true and correct in all material respects as of such earlier date; provided further that  any representation and warranty that is qualified as to “materiality”, “Material Adverse  Effect” or similar language shall be true and correct (after giving effect to any qualification  therein) in all respects. (c) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom. (d) Officer’s Certificate.  A certificate, dated as of the Tranche CD Borrowing  Date and signed by a Responsible Officer of Borrower, confirming compliance with the  conditions set forth in this Section 6.036.04. (e) Milestone.  The Administrative Agent shall have received evidence  satisfactory to the Administrative Agent that Borrower has received Total Revenue of at  least $20,000,000 for the twelve (12) month period most recently endedis in pro-forma  compliance with the revenue covenant in Section 8.15(b) for the fiscal quarter ending  March 31, 2022. (f) Expenses, Etc.  The Lenders and their Affiliates shall have received for their  own account, all fees, costs and expenses due (including applicable attorney costs and the  reasonable and documented out-of-pocket fees and expenses of any other advisors to the  Lenders) and payable pursuant to Section 13.03. The borrowing of the Loans shall constitute a certification by Borrower to the effect that the  conditions set forth in Section 6.01, Section 6.02, Section 6.03 and Section 6.036.04, as applicable,  have been fulfilled as of the Closing Date, the Tranche B Loan Borrowing Date, the Tranche C  

 

-46- Loan Borrowing Date or the Tranche CD Loan Borrowing Date, or waived by the Administrative  Agent on behalf of the Lenders, as applicable. ARTICLE 7 REPRESENTATIONS AND WARRANTIES In order to induce the Lenders to enter into this Agreement and to extend the Loans  hereunder, each Obligor represents and warrants to the Administrative Agent and the Lenders, on  the Closing Date, on the Tranche B Loan Borrowing Date, on the Tranche C Loan Borrowing Date  and on the Tranche CD Loan Borrowing Date, as applicable, that the following statements are true  and correct: Section 7.01. Power and Authority.  Each Obligor and each of its Subsidiaries (a) is duly  organized, validly existing and in good standing under the Laws of its jurisdiction of organization,  (b) has all requisite corporate (or equivalent) power, and has all material governmental licenses,  authorizations, consents and approvals necessary to own its assets and carry on its business as now  being or as proposed to be conducted except to the extent that failure to have the same would not  reasonably be expected to have a Material Adverse Effect, (c) is qualified to do business and is in  good standing in all jurisdictions in which the nature of the business conducted by it makes such  qualification necessary except where failure to so qualify would not (either individually or in the  aggregate) reasonably be expected to have a Material Adverse Effect, and (d) has full power,  authority and legal right to make and perform each of the Loan Documents and, in the case of  Borrower, to borrow the Loans hereunder. Section 7.02. Authorization; Enforceability.  The Transactions are within each Obligor’s  corporate (or equivalent) powers and have been duly authorized by all necessary corporate (or  equivalent) action and, if required, by all necessary shareholder or other equity holder action.  The  Loan Documents have been duly executed and delivered by each Obligor party thereto and  constitutes, and each of the other Loan Documents to which it is a party when executed and  delivered by such Obligor will constitute, a legal, valid and binding obligation of such Obligor,  enforceable against each Obligor in accordance with its terms, except as such enforceability may  be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar Laws of general  applicability affecting the enforcement of creditors’ rights and (b) the application of general  principles of equity (regardless of whether such enforceability is considered in a proceeding in  equity or at law). Section 7.03. Governmental and Other Approvals; No Conflicts.  The Transactions (a) do  not require any consent or approval of, registration or filing with, or any other action by, any  Governmental Authority or any other Person, except for (i) such as have been obtained or made  and are in full force and effect, (ii) filings and recordings in respect of perfecting or recording the  Liens created pursuant to the Security Documents and (iii) those consents listed on Schedule 7.03,  (b) will not violate any Requirement of Law or the Organizational Documents of any Obligor or  any order of any Governmental Authority, other than any such violations that, individually or in  the aggregate, would not reasonably be expected to have a Material Adverse Effect, (c) will not  violate or result in a default under any Material Agreement, or give rise to a right thereunder to  

 

-47- require any payment to be made by any such Person, and (d) will not result in the creation or  imposition of any Lien (other than Permitted Liens) on any asset of any Obligor or any of its  Subsidiaries. Section 7.04. Financial Statements; Projections; Material Adverse Change. (a) Financial Statements.  Borrower has heretofore furnished to the Administrative  Agent certain financial statements as provided for in Section 8.01.  Such financial statements  present fairly, in all material respects, the financial position and results of operations and cash  flows of the Obligors as of such dates and for such periods substantially in accordance with  GAAP, subject to quarterly or year-end adjustments and the absence of footnotes.  No Obligor has  any material contingent liabilities or liabilities for taxes, long-term lease or unusual forward or  long-term commitments not disclosed in the aforementioned financial statements. (b) Projections.  On and as of the Closing Date, the projections of the Obligors  (collectively, the “Projections”) are based on good faith estimates and assumptions made by the  management of Borrower; provided, the Projections are not to be viewed as facts and that actual  results during the period or periods covered by the Projections may differ from such Projections  and that the differences may be material; provided, further, as of the Closing Date, the  management of Borrower believes that the Projections are reasonable and attainable. (c) No Material Adverse Change.  Since December 31, 2019, no event, circumstance or  change has occurred that has caused or evidences, either in individually or in the aggregate, a  Material Adverse Change. Section 7.05. Properties. (a) Property Generally.  Each Obligor has good and marketable fee simple title to, or  valid leasehold or license interests in, all its real and personal Property material to its business,  subject only to Permitted Liens and except as would not reasonably be expected to interfere with  its ability to conduct its business as currently conducted or to utilize such properties for their  intended purposes.   (b) Intellectual Property.  (i) Schedule 7.05(b) lists, with respect to each Obligor, all  United States and foreign registrations of and applications for Patents, Trademarks, Copyrights,  and industrial designs that are Obligor Intellectual Property, including the applicable jurisdiction,  registration or application number and date, as applicable thereto, a designation as to whether it is  Material Intellectual Property, and a designation as to whether it is licensed or owned by Obligor. (ii) Each Obligor (A) owns or possesses all legal and beneficial rights, title and interest in  and to Material Intellectual Property designated on Schedule 7.05(b) as being owned by such  Obligor and (B) has the right to use the Material Intellectual Property licensed to such Obligor, in  each case free and clear of any Liens or Claims of any kind, other than Permitted Liens. (iii) To Obligors’ knowledge, the Material Intellectual Property does not violate any  license or infringe any valid and enforceable Intellectual Property right of another. 

 

-48- (iv) Other than with respect to the Material Agreements, or as permitted by this  Agreement, the Obligors have not assigned or otherwise transferred ownership of, or agreed to  assign or otherwise transfer ownership of, any Material Intellectual Property, in whole or in part, to  any Person who is not an Obligor. (v) Other than as set forth on Schedule 7.05(b), the Obligors have not received any  written communications, nor is there any pending or, to each Obligor’s knowledge, threatened  action in writing, suit, proceeding or claim in writing by another, alleging that any of the Obligors  has violated, infringed, diluted or misappropriated any Intellectual Property of another. (vi) There is no pending or, to any Obligor’s knowledge, threatened action in writing, suit,  proceeding or claim in writing by another: (a) challenging an Obligor’s rights in or to any Material  Intellectual Property owned by such Obligor; or (b) challenging the validity, enforceability or  scope of any Material Intellectual Property owned by an Obligor. (vii) Each Obligor has taken commercially reasonable precautions to protect the secrecy,  confidentiality and value of the Material Intellectual Property (including without limitation, by  requiring that all relevant current and former employees, contractors and consultants of the  Obligors execute written confidentiality and invention assignment Contracts). (viii) Each Obligor has complied with the material terms of each Material Agreement  pursuant to which Intellectual Property has been licensed to the Obligors (which material terms  shall include, but not be limited to, pricing and duration of the agreement). (ix) All maintenance fees, annuities, and the like due or payable on the Patents within  Material Intellectual Property have been timely paid or the failure to so pay was the result of an  intentional decision by the applicable Obligor, which would not reasonably be expected to result in  a Material Adverse Change.  All documents and instruments necessary to register or apply for or  renew registration of all Patents, Trademarks and Copyrights within the Material Intellectual  Property have been validly executed, delivered and filed in a timely manner with the United States  Patent and Trademark Office or the United States Copyright Office, as applicable. (x) To each Obligor’s knowledge, there are no material defects in any of the Patents  within Material Intellectual Property and no such Patents within Material Intellectual Property  have ever been finally adjudicated to be invalid, unpatentable or unenforceable for any reason in  any administrative, arbitration, judicial or other proceeding. (xi) To each Obligor’s knowledge, no Obligor has received any written notice asserting  that the Patents within the Material Intellectual Property are invalid, unpatentable or unenforceable  and, to each Obligor’s knowledge, no Obligor has engaged in any conduct, or omitted to perform  any necessary act, the result of which would invalidate or render unpatentable or unenforceable  any such Patent within the Material Intellectual Property. (xii) Each employee and consultant has signed a written agreement assigning to the  applicable Obligor all intellectual property rights that are related to such Obligor’s business as now  conducted and as presently proposed to be conducted and confidentiality provisions protecting  

 

-49- trade secrets and confidentiality information of the Obligors. (xiii) To the knowledge of each Obligor, no third party is infringing upon or  misappropriating, or violating any material license or agreement with such Obligor relating to any  Material Intellectual Property. Section 7.06. No Actions or Proceedings. (a) Litigation.  There is no litigation, investigation or enforcement proceeding pending or  threatened in writing with respect to any Obligor by or before any Governmental Authority or  arbitrator (i) that either individually or in the aggregate would reasonably be expected to have a  Material Adverse Effect or (ii) that involves this Agreement or the Transactions. (b) Environmental Matters.  The operations and the real Property of the Obligors comply  with all applicable Environmental Laws, except to the extent the failure to so comply, either  individually or in the aggregate, would not reasonably be expected to have a Material Adverse  Effect.  To each Obligor’s knowledge, there have been no conditions, occurrences or release of  Hazardous Materials which would reasonably be expected to have a Material Adverse Effect. (c) Labor Matters.  No Obligor has engaged in unfair labor practices and there are no  pending or, to any Obligor’s knowledge, threatened in writing labor actions, disputes, grievance or  arbitration proceedings involving the employees of any Obligor, in each case that would  reasonably be expected to have a Material Adverse Effect.  There is no material strike or work  stoppage in existence or threatened in writing against any Obligor. Section 7.07. Compliance with Laws and Agreements.  Each Obligor is in compliance with  all Requirements of Law (including CLIA and Environmental Laws) and all Contracts binding  upon it or its Property, except (other than with respect to Material Intellectual Property) where the  failure to do so, individually or in the aggregate, would not reasonably be expected to result in a  Material Adverse Effect. Section 7.08. Taxes.  Each Obligor has timely filed or caused to be filed all federal income  and other material Tax returns and reports required to have been filed and has paid or caused to be  paid all federal income and other material Taxes required to have been paid by it, except Taxes that  are being contested in good faith by appropriate proceedings and for which such Obligor has set  aside on its books adequate reserves with respect thereto substantially in accordance with GAAP. Section 7.09. Full Disclosure.  Borrower has disclosed to the Lenders all Material  Agreements to which any Obligor is party, and all other matters to its knowledge, that, individually  or in the aggregate, would reasonably be expected to result in a Material Adverse Effect.  None of  the reports, financial statements, certificates or other information furnished by or on behalf of the  Obligors to the Lenders in connection with the negotiation of this Agreement and the other Loan  Documents or delivered hereunder or thereunder (as modified or supplemented by other  information so furnished) contains any material misstatement of material fact or omits to state any  material fact necessary to make the statements therein, in the light of the circumstances under  which they were made, not misleading; provided that, with respect to projected financial  

 

-50- information, Borrower represents only that such information was prepared in good faith based  upon assumptions believed to be reasonable at the time. Section 7.10. Regulation. (a) Investment Company Act.  No Obligor is an “investment company” as defined in, or  subject to regulation under, the Investment Company Act of 1940. (b) Margin Stock.  No Obligor is engaged principally, or as one of its important activities,  in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of  buying or carrying Margin Stock, and no part of the proceeds of the Loans will be used to buy or  carry any Margin Stock in violation of Regulation T, U or X. Section 7.11. Solvency.  The Obligors, on a consolidated basis, are and, immediately after  giving effect to the Borrowings, the use of proceeds thereof, and the consummation of the  Transactions, will be, Solvent. Section 7.12. Subsidiaries.  Except as set forth on Schedule 7.12 (as such Schedule may be  updated by Borrower from time to time), Borrower has no direct or indirect Subsidiaries. Section 7.13. Indebtedness and Liens.  Set forth on Schedule 7.13A is a complete and  correct list of all Permitted Indebtedness of each Obligor described in Section 9.01(b) as of the  date hereof.  Set forth on Schedule 7.13B is a complete and correct list of all Permitted Liens  described in Section 9.02(b) granted by an Obligor with respect to its respective Property and  outstanding as of the date hereof. Section 7.14. Material Agreements.  Set forth on Schedule 7.14 (as such Schedule may be  updated by Borrower from time to time) is a complete and correct list of (i) each Material  Agreement and (ii) each Contract creating or evidencing any Material Indebtedness, together with  a summary reference to the product or purpose of each such Material Agreement and such  Contract, to which an Obligor is a party.  Accurate and complete copies of each such Contract  listed on such schedule have been made available to the Lenders.  No Obligor is in default in any  material respect under any such Material Agreement or such Contract creating or evidencing any  Material Indebtedness listed on such schedule, and no Obligor has knowledge of any default in any  material respect by any counterparty to such Material Agreement or such Contract.  Except as  otherwise disclosed on Schedule 7.14 (as such Schedule may be updated by Borrower from time to  time), all material vendor purchase agreements and provider Contracts of the Obligors, and all  Material Agreements including a grant of rights under any Intellectual Property to an Obligor, are  in full force and effect without material modification from the form in which the same were  disclosed to the Lenders. Section 7.15. Restrictive Agreements.  None of the Obligors is party to any Restrictive  Agreement, except (i) those listed on Schedule 7.15 or otherwise permitted under Section 9.11, (ii)  restrictions and conditions imposed by Law or by the Loan Documents, (iii) any stockholder  agreement or investor rights agreement, charter, by laws or other organizational documents of an  Obligor and (iv) limitations associated with Permitted Liens. 

 

-51- Section 7.16. Real Property.  No Obligor or any of its Subsidiaries owns or leases (as  tenant thereof) any real Property on the date hereof, except as described on Schedule 7.16. Section 7.17. Pension and Other Plans.  Schedule 7.17 sets forth, as of the date hereof, a  complete and correct list of, and that separately identifies, (a) all Title IV Plans, (b) all  Multiemployer Plans and (c) all material Benefit Plans.  Each Benefit Plan, and each trust  thereunder, intended to qualify for Tax exempt status under Section 401 or 501 of the Code or  other Requirements of Law so qualifies.  Except for those that would not, in the aggregate, have a  Material Adverse Effect, (x) each Benefit Plan is in compliance with applicable provisions of  ERISA, the Code and other Requirements of Law, (y) there are no existing or pending (or to the  knowledge of any Obligor or Subsidiary thereof, threatened) claims (other than routine claims for  benefits in the normal course), sanctions, actions, lawsuits or other proceedings or investigation  involving any Benefit Plan to which any Obligor or Subsidiary thereof incurs or otherwise has or  would have an obligation or any liability or Claim and (z) no ERISA Event is reasonably expected  to occur.  Borrower and each of its ERISA Affiliates has met all applicable requirements under the  ERISA Funding Rules with respect to each Title IV Plan, and no waiver of the minimum funding  standards under the ERISA Funding Rules has been applied for or obtained.  As of the most recent  valuation date for any Title IV Plan, the funding target attainment percentage (as defined in  Section 430(d)(2) of the Code) is at least 60%, and neither Borrower nor any of its ERISA  Affiliates knows of any facts or circumstances that would reasonably be expected to cause the  funding target attainment percentage to fall below 60% as of the most recent valuation date.  As of  the date hereof, no ERISA Event has occurred in connection with which obligations and liabilities  (contingent or otherwise) remain outstanding.  No ERISA Affiliate would have any Withdrawal  Liability as a result of a complete withdrawal from any Multiemployer Plan on the date this  representation is made. Section 7.18. Collateral; Security Interest.  Each Security Document is effective to create  in favor of the Administrative Agent for the benefit of the Lenders a legal, valid and enforceable  security interest in the Collateral subject thereto and each such security interest is perfected to the  extent required by (and has the priority required by) the applicable Security Document, subject to  Permitted Liens.  The Security Documents collectively are effective to create in favor of the  Administrative Agent for the benefit of the Lenders a legal, valid and enforceable security interest  in the Collateral, which upon the filing of financing statements and other similar statements filed in  the appropriate offices, such security interests are perfected security interests (subject only to  Permitted Liens) to the extent that such perfection may be obtained by such filing. Section 7.19. Capitalization.  All of the issued and outstanding securities of each Obligor  have been duly authorized, are validly issued, fully paid, and non-assessable.  As of the Closing  Date and except as set forth on Schedule 7.19, there are no outstanding or authorized options,  warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other  contracts or commitments that could require the Obligors to issue, sell, or otherwise cause to  become outstanding any of their ownership interests.  There are no outstanding or authorized stock  appreciation, phantom stock, profit participation, or similar rights with respect to the Obligors.   None of the Equity Interests in any Obligor has been mortgaged, assigned or pledged in favor of  any Person, other than pursuant to the Security Agreement. 

 

-52- Section 7.20. Insurance.  Each Obligor has obtained (and is maintaining), insurance for its  assets (including the Collateral) and business as required under the Loan Documents. Section 7.21. Certain Fees.  Except as described on Schedule 7.21, no broker’s or finder’s  fee will be payable in connection with the execution and delivery of this Agreement. Section 7.22. Sanctions Laws.  Obligors and, to the knowledge of the Obligors, any  director, officer or employee of an Obligor acting on behalf of the Obligors, are in compliance with  the Sanctions Laws. Section 7.23. Anti-Corruption Laws.  No Obligor nor any of its Subsidiaries has, nor, to the  knowledge of any Responsible Officer of any Obligor, has any director, officer, agent or employee  of any Obligor acting on behalf of such Obligor (i) taken any action, directly or indirectly, that  would result in a violation by such Persons of the Anti-Corruption Laws, (ii) made, offered to  make, promised to make or authorized the payment or giving of, directly or indirectly, any  Prohibited Payment or (iii) been subject to any investigation by any Governmental Authority with  regard to any actual or alleged Prohibited Payment. Section 7.24. Anti-Terrorism Laws.  The Obligors (i) have taken reasonable measures to  ensure compliance with applicable Economic Sanctions Laws and Anti-Terrorism Laws, (ii) are  not Designated Persons and (iii) have not used any part of the proceeds from any advance on  behalf of any Designated Person or has not used, directly by it or indirectly through any  Subsidiary, such proceeds in connection with any investment in, or any transactions or dealings  with, any Designated Person. ARTICLE 8 AFFIRMATIVE COVENANTS AND FINANCIAL COVENANTS Each Obligor covenants and agrees with the Lenders that, until the Commitments have  expired or been terminated and all Obligations (other than the Warrant Obligations and inchoate  indemnity obligations) have been paid in full in cash: Section 8.01. Financial Statements and Other Information.  It will furnish to the  Administrative Agent for distribution to the Lenders: (a) as soon as available and in any event within thirty-five (35) days after the  end of each month prior to a Qualified Public Offering, the consolidated balance sheet of  the Obligors as of the end of each such month, and the related consolidated statements of  income and cash flows of the Obligors for such month and the portion of the fiscal year  through the end of such month, all in reasonable detail and setting forth in comparative  form the figures for the corresponding period in the preceding fiscal year, together with a  certificate of a Responsible Officer of Borrower stating that such financial statements  fairly present in all material respects the financial condition of the Obligors as at such date  and the results of operations of the Obligors for the period ended on such date and have  been prepared substantially in accordance with GAAP consistently applied, subject to  

 

-53- changes resulting from normal, quarterly or year-end adjustments and except for the  absence of notes; (b) as soon as available and in any event within forty-five (45) days after the  end of the first three fiscal quarters of each fiscal year, the consolidated balance sheet of the  Obligors as of the end of such quarter, and the related consolidated statements of income  and cash flows of the Obligors for such quarter and the portion of the fiscal year through  the end of such quarter, all in reasonable detail and setting forth in comparative form the  figures for the corresponding period in the preceding fiscal year, together with (i) a  certificate of a Responsible Officer of Borrower stating that such financial statements  fairly present in all material respects the financial condition of the Obligors as at such date  and the results of operations of the Obligors for the period ended on such date and have  been prepared substantially in accordance with GAAP consistently applied, subject to  changes resulting from normal quarterly or year-end adjustments and except for the  absence of footnotes and (ii) a management’s discussion and analysis of the financial  condition and results of operations, including the Obligors’ liquidity and capital resources;  provided that, if the Borrower is a Publicly Reporting Company, the Borrower’s filing of a  Quarterly Report on Form 10-Q with the SEC shall be deemed to satisfy the requirements  of this Section 8.01(b) on the date on which such report is first available via the SEC’s  EDGAR system or a successor system related thereto; (c) as soon as available and in any event within one hundred fifty (150) days  after the end of each fiscal year, the consolidated balance sheet of the Obligors as of the end  of such fiscal year, and the related consolidated statements of income, shareholders’ equity  and cash flows of the Obligors for such fiscal year, prepared substantially in accordance  with GAAP consistently applied, all in reasonable detail and setting forth in comparative  form the figures for the previous fiscal year, accompanied by (i) a report and opinion  thereon of Cohn Reznick LLP or another independent certified public accountant  acceptable to the Administrative Agent, which report and opinion shall be prepared in  accordance with generally accepted auditing standards and shall not be subject to any  “going concern” or like qualification or exception (other than solely with respect to, or  expressly resulting solely from, the repayment of the Loans on the Stated Maturity Date) or  any qualification or exception as to the scope of such audit and (ii) a management’s  discussion and analysis of the financial condition and results of operations, including the  Obligors’ liquidity and capital resources; provided that, if the Borrower is a Publicly  Reporting Company, the Borrower’s filing of a Yearly Report on Form 10-K with the SEC  shall be deemed to satisfy the requirements of this Section 8.01(c) on the date on which  such report is first available via the SEC’s EDGAR system or a successor system related  thereto; (d) within thirty-five (35) days after the end of each month, a compliance  certificate of a Responsible Officer of Borrower as of the end of the applicable accounting  period (which delivery may, unless a Lender requests executed originals, be by electronic  communication including email and shall be deemed to be an original authentic  counterpart thereof for all purposes) in the form of Exhibit E (a “Compliance Certificate”)  which, for purposes of clarification, shall (i) demonstrate the Obligors’ compliance with  

 

-54- Section 8.15(a) in respect of such month, (ii) for each month end that coincides with the  end of a fiscal quarter of Borrower, state that the representations and warranties made by  the Obligors in Article 7 are true in all material respects on and as of the date thereof;  provided that to the extent that such representations and warranties specifically refer to an  earlier date, they shall be true and correct in all material respects as of such earlier date;  provided further that any representation and warranty that is qualified as to “materiality”,  “Material Adverse Effect” or similar language shall be true and correct (after giving effect  to any qualification therein) in all respects, (iii) for each month end that coincides with the  end of a fiscal quarter of Borrower, demonstrate Borrower’s compliance with Section  8.15(b) in respect of such fiscal quarter and (iv) for each month end that coincides with the  end of a fiscal year of Borrower, provide Obligors’ updated Schedules to this Agreement  (if any); (e) promptly, and in any event within five (5) Business Days after receipt  thereof by an Obligor, copies of each notice or other correspondence received from any  securities regulator or exchange to the authority of which an Obligor is subject concerning  any investigation or possible investigation or other inquiry by such agency regarding  financial or other operational results of such Obligor; (f) the information regarding insurance maintained by the Obligors as and  when required under Section 8.05; (g) promptly following the Lenders’ written request at any time, proof of the  Obligors’ compliance with Section 8.15(a); (h) within ten (10) days of delivery, copies of all periodic reports distributed by  Borrower to its shareholders generally; provided that (i) any such material may be redacted  by Borrower to exclude information relating to the Loan Documents or the Lenders and (ii)  the Lenders shall not be entitled to receive statements, reports and notices relating to topics  that (x) are subject to attorney-client privilege or (y) present a conflict of interest for the  Lenders; (i) a financial forecast for the Obligors for each fiscal year, including  forecasted balance sheets, statements of income and cash flows of the Obligors, all of  which shall be prepared on a consolidated basis and delivered not later than February 28 of  such fiscal year; (j) promptly following any Lender’s written request, certification that such  Obligor is not a passive foreign investment company (“PFIC”) within the meaning of  Sections 1291 through 1297 of the Code, or, if such Obligor determines that it is a PFIC,  such information as would allow the Lender to make a qualified electing fund election with  respect to the stock of the Obligor;  (k) after Borrower becomes a Publicly Reporting Company, within five (5)  Business Days of filing, provide access (via posting and/or links on Borrower’s web site)  to all reports on Form 10-K and Form 10-Q filed with the SEC, any Governmental  

 

-55- Authority succeeding to any or all of the functions of the SEC or with any national  securities exchange; and within five (5) Business Days of filing, provide notice and access  (via posting and/or links on Borrower’s web site) to all reports on Form 8-K filed with the  SEC, and copies of (or access to, via posting and/or links on Borrower’s web site) all other  reports, proxy statements and other materials filed by Borrower with the SEC, any  Governmental Authority succeeding to any of the functions of the SEC or with any  national securities exchange; (l) promptly after the receipt thereof, a copy of any “management letter”  received from its certified public accounts and the management’s response thereto; and (m) such other information respecting the operations, properties, business or  condition (financial or otherwise) of the Obligors (including with respect to the Collateral)  as the Lenders may from time to time reasonably request. Section 8.02. Notices of Material Events.  It will furnish to the Administrative Agent for  distribution to the Lenders written notice of the following promptly after a Responsible Officer of  an Obligor first learns of the existence of: (a) the occurrence of any Default or Event of Default; (b) the occurrence of any event with respect to any Obligor’s Property resulting  in a Loss, to the extent not covered by insurance, aggregating $250,000 or more; (c) (i) any proposed Acquisition by any Obligor that would reasonably be  expected to result in environmental liability under Environmental Laws in excess of  $250,000, and (ii) in each case, to the extent that any of the following would reasonably be  expected to result in liability in excess of $250,000:  (A) spillage, leakage, discharge,  disposal, leaching, migration or release of any Hazardous Material required to be reported  to any Governmental Authority under applicable Environmental Laws, and (B) all actions,  suits, claims, notices of violation, hearings, investigations or proceedings pending, or  threatened in writing against or affecting any Obligor or any of its Subsidiaries or with  respect to the ownership, use, maintenance and operation of their respective businesses,  operations or properties, relating to Environmental Laws or Hazardous Material; (d) the assertion of any environmental matter by any Person in writing against,  or with respect to the activities of, any Obligor or any of its Subsidiaries and any alleged  violation of or non-compliance with any Environmental Laws or any permits, licenses or  authorizations, in each case, which would reasonably be expected to involve damages in  excess of $250,000 other than any environmental matter or alleged violation that, if  adversely determined, would not (either individually or in the aggregate) have a Material  Adverse Effect; (e) the filing or commencement of any action, suit or proceeding by or before  any arbitrator or Governmental Authority against or directly affecting any Obligor or any  of its Subsidiaries, in each case, that would reasonably be expected to result in a Material  

 

-56- Adverse Effect; (f) (i) on or prior to any filing by any ERISA Affiliate of any notice of intent to  terminate any Title IV Plan, a copy of such notice and (ii) promptly, and in any event  within ten (10) days, after any Responsible Officer of any ERISA Affiliate knows or has  reason to know that a request for a minimum funding waiver under Section 412 of the Code  has been filed with respect to any Title IV Plan or Multiemployer Plan, a notice (which  may be made by telephone if promptly confirmed in writing) describing such waiver  request and any action that any ERISA Affiliate proposes to take with respect thereto,  together with a copy of any notice filed with the PBGC or the IRS pertaining thereto; (g) within five (5) Business Days of obtaining written notice or knowledge  thereof, (i) the termination of any Material Agreement; (ii) the receipt by any Obligor or  any of its Subsidiaries of a written notice under any Material Agreement (and a copy  thereof) asserting a default by such Obligor or any of its Subsidiaries where such alleged  default would permit such counterparty to terminate such Material Agreement; (iii) the  entering into any new Material Agreement by an Obligor (and a copy thereof); or (iv) any  amendment to a Material Agreement that would be materially adverse to the Lenders (and  a copy thereof) (which includes, but is not limited to, any amendments to provisions  relating to pricing and term), provided that notices required under this subsection (g) may  be delivered with Borrower’s monthly Compliance Certificate unless any of the foregoing  events would reasonably be expected to have a Material Adverse Effect; (h) any product recalls, safety alerts, corrections, withdrawals, marketing  suspensions, removals or the like conducted, to be undertaken or issued by any Obligor or  any of its Subsidiaries, whether or not at the request, demand or order of any Governmental  Authority; (i) within five (5) Business Days of obtaining written notice or knowledge  thereof, any infringement or other violation by any Person of any Obligor Intellectual  Property that would reasonably be expected to result in a Material Adverse Effect; (j) within five (5) Business Days of obtaining written notice or knowledge  thereof, a material licensing agreement or arrangement entered into by any Obligor or any  of its Subsidiaries in connection with any material infringement or alleged infringement of  the Intellectual Property of another Person; (k) within five (5) Business Days of obtaining written notice or knowledge  thereof, any written claim by any Person that the conduct of any Obligor’s (or any  Subsidiary thereof) business, including the development, manufacture, use, sale or other  commercialization of any product, infringes any Intellectual Property of such Person,  except to the extent any such claim would not reasonably be expected to result in a Material  Adverse Effect; (l) the reports and notices as and when required by the Security Documents; 

 

-57- (m) within thirty (30) days of the date thereof, or, if earlier, on the date of  delivery of any financial statements pursuant to Section 8.01, notice of any material change  in accounting policies or financial reporting practices by the Obligors; (n) promptly after the occurrence thereof, notice of any labor controversy  resulting in or threatening to result in any strike, work stoppage, boycott, shutdown or  other material labor disruption against or involving an Obligor (or any Subsidiary thereof); (o) any other development that results in, or would reasonably be expected to  result in, a Material Adverse Effect; (p) concurrently with the delivery of financial statements under Section  8.01(a), (b) or (c), the creation or other acquisition of any Intellectual Property by any  Obligor or any Subsidiary after the date hereof and during such prior fiscal year which is  registered or becomes registered or the subject of an application for registration with the  United States Copyright Office or the United States Patent and Trademark Office, as  applicable, or with any other equivalent foreign Governmental Authority; and (q) any change to any Obligor’s ownership of Deposit Accounts, Securities  Accounts and Commodity Accounts, by delivering to the Lenders an updated Schedule 7 to  the Security Agreement setting forth a complete and correct list of all such accounts as of  the date of such change. Each notice delivered under this Section 8.02 shall be accompanied by a statement of a  Responsible Officer of Borrower setting forth in reasonable detail the event or development  requiring such notice and any action taken or proposed to be taken with respect thereto. Notwithstanding any contrary provision of this Agreement or any other Loan Document  (including, without limitation, Sections 8.01 and 8.02), until such time as the Administrative  Agent provides written notice to Borrower that it no longer desires to receive information that  constitutes material non-public information, Borrower shall provide any information required  pursuant to the terms hereof, including any information that may be material non-public  information, to the Administrative Agent; provided, that notwithstanding the foregoing, Borrower  shall at all times comply with Section 8.01(d)(i)-(iii), 8.01(k) and 8.02(a). Section 8.03. Existence; Maintenance of Properties, Etc.  (a) It will, and will cause each of  its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full  force and effect its legal existence; provided that the foregoing shall not prohibit any merger,  amalgamation, consolidation, liquidation or dissolution permitted under Section 9.03. (b) It shall, and shall cause each of its Subsidiaries to, maintain and preserve all rights,  licenses, permits, privileges and franchises material to the conduct of its business, and maintain  and preserve all of its assets and properties necessary to the conduct of its business in good  working order and condition, ordinary wear and tear and damage from casualty or condemnation  excepted. 

 

-58- (c) It shall, and shall cause each of its Subsidiaries to, use commercially reasonable  efforts to cause each new employee and contractor to execute and deliver a customary  confidentiality, non-disclosure and Intellectual Property assignment agreement that includes a  waiver of moral rights. Section 8.04. Payment of Obligations.  It will, and will cause each of its Subsidiaries to,  pay and discharge (i) all federal income and other material Taxes, fees, assessments and  governmental charges or levies imposed upon it or upon its properties or assets prior to the date on  which penalties attach thereto, and all lawful claims for labor, materials and supplies which, if  unpaid, might become a Lien (other than a Permitted Lien) upon any properties or assets of any  Obligor, except to the extent such Taxes, fees, assessments or governmental charges or levies, or  such claims, are being contested in good faith by appropriate proceedings and are adequately  reserved against substantially in accordance with GAAP, (ii) all lawful claims which, if unpaid,  would by Law become a Lien upon its Property not constituting a Permitted Lien and (iii) all other  obligations if the failure to discharge such obligation would reasonably be expected to result in a  Material Adverse Effect. Section 8.05. Insurance.  At its own cost and expense, it will, and will cause each of its  Subsidiaries, to obtain and maintain, with financially sound and reputable insurers, insurance of  the kinds, and in the amounts, as are consistent with customary practices and standards of its  industry in the same or similar locations, it being understood and agreed that the insurance held by  the Obligors on the Closing Date is deemed to fulfill this requirement on the date hereof.  All of the  insurance policies required pursuant to this Section 8.05 will name the Administrative Agent as a  “loss payee,” “additional insured” or “mortgagee,” as applicable and as its interests may appear.   Borrower will use its commercially reasonable efforts to ensure, or to cause others to ensure, that  all insurance policies required pursuant to this Section 8.05 shall provide that they shall not be  terminated or cancelled nor shall any policy be materially changed in a manner adverse to the  insured Person without at least thirty (30) days’ written notice to insured Person and the  Administrative Agent.  Receipt of notice of termination or cancellation of any such insurance  policies shall entitle the Administrative Agent to renew any such policies, all in accordance with  the first sentence of this Section 8.05 or otherwise to obtain similar insurance in place of such  policies, in each case at the expense of Borrower (payable within three (3) Business Days of  Borrower’s receipt of written demand therefor) and, unless an Event of Default has occurred and is  continuing, with the prior written consent of Borrower (such consent not to be unreasonably  withheld).  The amount of any such expenses shall accrue interest at the Default Rate if not paid  when due and shall constitute “Obligations.” All of the insurance policies required hereby will be  evidenced by one or more certificates of insurance, together with appropriate loss payee or  additional insured clauses or endorsements in favor of the Administrative Agent as required by this  Section, delivered to the Administrative Agent on or before the Closing Date (or, with respect to  such endorsements, within the time period set forth in Section 8.19) and at such other times as the  Administrative Agent may request from time to time. Section 8.06. Books and Records; Inspection Rights.  It will, and will cause each of its  Subsidiaries to, keep proper books of record and account in which full, true and correct entries are  made of all dealings and transactions in relation to its business and activities.  It will, and will  cause each of its Subsidiaries to, permit any representatives designated by the Administrative  

 

-59- Agent, upon reasonable prior notice and at reasonable times, to visit and inspect its properties, to  examine and make extracts from its books and records, and to discuss its affairs, finances and  condition with its officers and independent accountants, all at such reasonable times during normal  business hours and with reasonable advance notice as the Administrative Agent may request.  It  will, and will cause each of its Subsidiaries to, pay all reasonable and documented out-of-pocket  expenses incurred by the Administrative Agent (a) so long as no Default has occurred and is  continuing, for no more than two (2) such inspections each calendar year and (b) during a  continuing Default, all such inspections. Section 8.07. Compliance with Laws.  (a) It will, and will cause each of its Subsidiaries to,  (i) comply in all material respects with all Requirements of Law (including Environmental Laws)  and (ii) comply in all material respects with all terms of outstanding Indebtedness and all Material  Agreements, except (other than with respect to Material Intellectual Property) where the failure to  do so, individually or in the aggregate, would not reasonably be expected to result in a Material  Adverse Effect. (b) Each Obligor will maintain, and will cause each of its Subsidiaries to maintain, all  records required to be maintained by a Governmental Authority, except where failure to do so,  individually or in the aggregate, would not reasonably be expected to have a Material Adverse  Effect. Section 8.08. Licenses.  It will, and will cause each of its Subsidiaries to, obtain and  maintain all licenses, authorizations, consents, filings, exemptions, registrations and other  Governmental Approvals necessary in connection with the execution, delivery and performance of  the Loan Documents, the consummation of the Transactions or the operation and conduct of its  business and ownership of its properties, except where failure to do so would not reasonably be  expected to have a Material Adverse Effect. Section 8.09. Action under Environmental Laws.  It will, and will cause each of its  Subsidiaries to, upon a Responsible Officer becoming aware of the release of any Hazardous  Materials or the existence of any environmental liability under applicable Environmental Laws  with respect to their respective businesses, operations or properties, take all actions, at their cost  and expense, as shall be required by applicable Law to investigate and clean up the condition of  their respective businesses, operations or properties, including all required removal, containment  and remedial actions, and restore their respective businesses, operations or properties to a  condition, in each case in material compliance with applicable Environmental Laws. Section 8.10. Use of Proceeds.  The proceeds of the Loans will be used only as provided in  Section 2.05.  No part of the proceeds of the Loans will be used, whether directly or indirectly, for  any purpose that violates any of the Regulations of the Board of Governors of the Federal Reserve  System, including Regulations T, U and X. Section 8.11. Certain Obligations Respecting Subsidiaries; Further Assurances;  Intellectual Property. (a) Subsidiaries.  It will take such action, and will cause each of its Subsidiaries to take  

 

-60- such action, from time to time as shall be necessary to ensure that all Subsidiaries are “Guarantors”  hereunder.  Without limiting the generality of the foregoing, in the event that any Obligor shall  form or acquire any new Subsidiary, it and its Subsidiaries will promptly and in any event within  fifteen (15) days (or such longer time as consented to by the Administrative Agent in writing) of  the formation or Acquisition of such Subsidiary: (i) cause such new Subsidiary to become a “Guarantor” hereunder, and a  “Grantor” under the Security Documents, pursuant to a Guarantee Assumption Agreement; (ii) take such action or cause such Subsidiary to take such action (including  delivering such Equity Interests together with undated transfer powers executed in blank)  as shall be necessary to create and perfect valid and enforceable first priority (subject to  Permitted Priority Liens) Liens on substantially all of the personal Property of such new  Subsidiary as collateral security for the obligations of such new Subsidiary hereunder; (iii) to the extent that the parent of such Subsidiary is not a party to the Security  Documents or has not otherwise pledged Equity Interests in its Subsidiaries in accordance  with the terms of the Security Documents and this Agreement, cause the parent of such  Subsidiary to execute and deliver a pledge agreement in favor of the Lenders, in respect of  all outstanding issued shares of such Subsidiary; and (iv) deliver such proof of corporate action, incumbency of officers, opinions of  counsel and other documents as is consistent with those delivered by each Obligor pursuant  to Section 6.01 or as the Majority Lenders shall have requested; provided, that solely with respect to any Subsidiary that is an Immaterial Foreign Subsidiary, no  such actions shall be required other than a pledge by owner of such Immaterial Foreign Subsidiary  of 100% of the Equity Interests of such Immaterial Foreign Subsidiary, which pledge shall, at the  Administrative Agent’s discretion be perfected under the Law of such Immaterial Foreign  Subsidiary’s jurisdiction of formation.  For the avoidance of doubt, in the event that any  Subsidiary ceases to qualify as an Immaterial Foreign Subsidiary, it shall be required to comply  with clauses (a)(i)-(iii) hereof as if it was formed or Acquired on the date it ceased to qualify as an  Immaterial Foreign Subsidiary. (b) Further Assurances.  It will, and will cause each of its Subsidiaries to, take such  action from time to time as shall reasonably be requested in writing by the Majority Lenders to  effectuate the purposes and objectives of this Agreement.  Without limiting the generality of the  foregoing, it will, and will cause each Person that is required to be a Guarantor to, take such action  from time to time (including executing and delivering such assignments, security agreements,  control agreements and other instruments) as shall be reasonably requested in writing by the  Majority Lenders to create, in favor of the Lenders, perfected security interests and Liens (subject  to Permitted Liens) in substantially all of the personal Property of such Obligor as collateral  security for the Obligations; provided that any such security interest or Lien shall be subject to the  relevant requirements of the Security Documents. (c) Intellectual Property.  In the event that any Obligor creates, develops or acquires  

 

-61- Obligor Intellectual Property during the term of this Agreement, then the provisions of this  Agreement shall automatically apply thereto and any such Obligor Intellectual Property shall  automatically constitute part of the Collateral under the Security Documents, without further  action by any party, in each case from and after the date of such creation, development or  acquisition (except that any representations or warranties of any Obligor shall apply to any such  Obligor Intellectual Property only from and after the date, if any, subsequent to such acquisition  that such representations and warranties are brought down or made anew as provided herein).  In  the event that any Obligor holds or acquires Obligor Intellectual Property during the term of this  Agreement, then, upon the request of the Administrative Agent, such Obligor shall take any action  as shall be reasonably necessary and reasonably requested by the Administrative Agent to ensure  that the provisions of this Agreement and the Security Agreement shall apply thereto and any such  Obligor Intellectual Property shall constitute part of the Collateral under the Security Documents Section 8.12. Termination of Non-Permitted Liens.  In the event that any Responsible  Officer of Borrower shall become aware or be notified by the Lenders of the existence of any  outstanding Lien against any Property of any Obligor, which Lien is not a Permitted Lien, such  Obligor shall use its best efforts to promptly terminate or cause the termination of such Lien. Section 8.13. Non-Consolidation.  It will, and will cause each of its Subsidiaries to, (i)  maintain entity records and books of account separate from those of any other entity which is an  Affiliate of such entity; and (ii) not commingle its funds or assets with those of any other entity  which is an Affiliate of such entity. Section 8.14. Anti-Terrorism and Anti-Corruption Laws.  No Obligor shall engage in any  transaction that violates any of the applicable prohibitions set forth in any Economic Sanctions  Law, Anti-Terrorism Law, or the US Foreign Corrupt Practices Act of 1977 (15 USC. §§ 78dd-1  et seq.).  None of the funds or assets of such Obligor or any Subsidiary that are used to repay the  Loans shall constitute property of, or shall be beneficially owned by, any Designated Person or, to  such Obligor’s knowledge, be the direct proceeds derived from any transactions that violate the  prohibitions set forth in any applicable Economic Sanctions Law, and no Designated Person shall  have any direct or indirect interest in such Obligor insofar as such interest would violate any  Economic Sanctions Laws applicable to such Obligor. Section 8.15. Financial Covenants.   (a) Minimum Liquidity.  Borrower shall ensure that the Obligors shall have aggregate  Unrestricted Cash of not less than $3,000,000 at all times. (b) Minimum Total Revenue. As of the end of the fiscal quarter ended March 31, 2022  and each fiscal quarter thereafter, the Obligors shall maintain, on a consolidated basis, Total  Revenue for the twelve (12) month period most recently ended on such date of not less than the  amount set forth in the table below: Twelve-Month Period Ended Minimum Total Revenue 

 

-62- Twelve-Month Period Ended Minimum Total Revenue March 31, 2022 $16,797,000 June 30, 2022 $18,256,000 September 30, 2022 $21,722,000 December 31, 2022 $26,545,000 March 31, 2023 $30,179,000 June 30, 2023 $35,221,000 September 30, 2023 $40,649,000 December 31, 2023 $46,660,000 March 31, 2024 $51,615,000 June 30, 2024 $57,102,000 September 30, 2024 $63,486,000 December 31, 2024 $71,575,000 March 31, 2025 $85,526,000 June 30, 2025 $92,295,000 September 30, 2025 $99,058,000 December 31, 2025 $106,016,000 Section 8.16. Maintenance of Material Agreements, Intellectual Property, Etc.  Such  Obligor will, and will cause each of its Subsidiaries (to the extent applicable) to:  (i) maintain in  full force and effect for the term thereof all Material Agreements, or other rights necessary for the  current operations of such Obligor’s or such Subsidiary’s business, as the case may be and (ii)  maintain in full force and effect all Material Intellectual Property owned or controlled by such  Obligor or any such Subsidiary that is used in and necessary for the current operations of such  Obligor’s or such Subsidiary’s business, as the case may be; provided that Borrower may  terminate the Supply Agreement in accordance with its terms if such termination would not be  reasonably expected to adversely affect the Lenders in any material respect.  

 

-63- Section 8.17. Cash Management.  It will: (a) subject to Section 8.19, maintain all Deposit Accounts, Securities Accounts,  Commodity Accounts and lockboxes (other than Excluded Accounts) with a bank or financial  institution that has executed and delivered to the Administrative Agent an account control  agreement, in form and substance reasonably acceptable to the Administrative Agent (each such  Deposit Account, Securities Account, Commodity Account and lockbox, a “Controlled  Account”); and (b) deposit promptly, and in any event no later than five (5) Business Days after the date  of receipt thereof, all cash, checks, drafts or other similar items of payment relating to or  constituting payments made in respect of any and all accounts and other rights and interests into  Controlled Accounts. Section 8.18. Board Observer Rights  Until the Obligations have been paid in full in cash,  Borrower shall permit the Administrative Agent on behalf of all of the Lenders (the “Observer”)  to attend and observe (but not vote) at all meetings of Borrower’s (or any Subsidiary’s, as  applicable) Board or any Committee, whether in person, by telephone or otherwise as requested by  the Observer.  Borrower and such Subsidiaries shall notify the Observer in writing at the same time  as furnished to members of the applicable Board or Committee of (i) the date and time for each  general or special meeting of any such Board or Committee and (ii) the adoption of any resolutions  or actions by any such Board or any such Committee by written consent (describing, in reasonable  detail, the nature and substance of such action).  Borrower and each of its Subsidiaries shall  concurrently deliver to the Observer all notices and any materials delivered to the official members  of such Board or Committee in connection with a meeting or action to be taken by written consent,  including a draft of any material resolutions or actions proposed to be adopted by written consent.   The Observer shall be free prior to such meeting or adoption by written consent to contact  members of any applicable Board or Committee and discuss the pending actions to be taken.   Notwithstanding the foregoing, the Observer shall not be entitled to receive materials relating to,  or be in attendance for, any discussions relating to topics which (x) are subject to attorney client  privilege or (y) present a conflict of interest for the Observer.  All such discussions and materials  shall be subject to the confidentiality provisions set forth in Section 13.17. Section 8.19. Post-Closing Obligations.  Within the time periods specified on Schedule  8.19 (as each may be extended by the Administrative Agent in its sole discretion), complete such  undertakings as are set forth on Schedule 8.19. ARTICLE 9 NEGATIVE COVENANTS Each Obligor covenants and agrees with the Administrative Agent and the Lenders that,  until the Commitments have expired or been terminated and all Obligations (other than the  Warrant Obligations and inchoate indemnity obligations) have been paid in full in cash: Section 9.01. Indebtedness.  It will not, and will not permit any of its Subsidiaries to,  

 

-64- create, incur, assume or permit to exist any Indebtedness, whether directly or indirectly, except: (a) the Obligations; (b) Indebtedness existing on the date hereof and set forth in Schedule 7.13A  and Permitted Refinancings thereof; (c) accounts payable to trade creditors for goods and services and current  operating liabilities (not the result of the borrowing of money) incurred in the Ordinary  Course of Business; (d) Indebtedness consisting of guarantees resulting from endorsement of  negotiable instruments for collection by it or any of its Subsidiaries in the Ordinary Course  of Business; (e) unsecured Indebtedness of an Obligor to any other Obligor; provided such  Indebtedness is pledged to the Administrative Agent for the benefit of the Lenders under  the Security Agreement and otherwise subordinate in right of payment to the Obligations; (f) Guarantees by any Obligor of Indebtedness of any other Obligor; (g) purchase money Indebtedness and Capital Lease Obligations; provided that  (i) if secured, the collateral therefor consists solely of the assets being financed, the  products and proceeds thereof and books and records related thereto, (ii) in the case of  purchase money Indebtedness, such Indebtedness shall not constitute less than 75% of the  aggregate consideration paid with respect to such asset, and (iii) the aggregate outstanding  principal amount of such Indebtedness does not exceed $1,000,0007,000,000 at any time; (h) unsecured workers’ compensation claims, payment obligations in  connection with health, disability or other types of social security benefits, unemployment  or other insurance obligations, reclamation and statutory obligations, in each case incurred  in the Ordinary Course of Business; (i) Indebtedness under Hedging Agreements permitted pursuant to Section  9.05(f); (j) Indebtedness approved in advance in writing by the Majority Lenders; (k) Indebtedness of Borrower and its Subsidiaries with respect to corporate  credit cards not to exceed $250,000 at any time outstanding;  (l) Indebtedness of Borrower pursuant to the minimum purchase and  termination fee provisions of the Supply Agreement; and (m) so long as no Default shall have occurred and is continuing at the time of  such Indebtedness is incurred, or after giving effect thereto, other unsecured Indebtedness  

 

-65- in an aggregate principal amount not to exceed $500,000 at any time outstanding.  Section 9.02. Liens.  It will not, and will not permit any of its Subsidiaries to, create, incur,  assume or permit to exist any Lien on any Property now owned by it, except: (a) Liens securing the Obligations; (b) any Lien on any Property of any Obligor existing on the date hereof and set  forth in Schedule 7.13B; provided that (i) no such Lien shall extend to any other Property  of such Obligor and (ii) any such Lien shall secure only those obligations which it secures  on the date hereof and extensions, renewals and replacements thereof that do not increase  the outstanding principal amount thereof; (c) Liens securing Indebtedness permitted under Section 9.01(g); provided that  such Liens are restricted solely to the collateral described in Section 9.01(g); (d) Liens imposed by Law which were incurred in the Ordinary Course of  Business, including (but not limited to) carriers’, warehousemen’s, landlords’ and  mechanics’ liens, liens relating to leasehold improvements and other similar liens arising in  the Ordinary Course of Business and which (i) do not in the aggregate materially detract  from the value of the Property subject thereto or materially impair the use thereof in the  operations of the business of such Person or (ii) are being contested in good faith by  appropriate proceedings, which proceedings have the effect of preventing the forfeiture or  sale of the Property subject to such liens and for which adequate reserves have been made  if required substantially in accordance with GAAP; (e) Liens, pledges or deposits made in the Ordinary Course of Business in  connection with bids, contracts, leases, appeal bonds, workers’ compensation,  unemployment insurance or other similar social security legislation; (f) Liens securing Taxes, assessments and other governmental charges, the  payment of which is not yet due or is being contested in good faith by appropriate  proceedings promptly initiated and diligently conducted and for which such reserve or  other appropriate provisions, if any, as shall be required by GAAP shall have been made; (g) servitudes, easements, rights of way, restrictions and other similar  encumbrances on real Property imposed by applicable Laws and encumbrances consisting  of zoning or building restrictions, easements, licenses, restrictions on the use of Property or  minor imperfections in title thereto which, in the aggregate, are not material, and which do  not in any case materially detract from the value of the Property subject thereto or interfere  with the ordinary conduct of the business of any of the Obligors; (h) bankers’ liens, rights of setoff and similar Liens incurred in the Ordinary  Course of Business and arising in connection with the Obligors’ deposit accounts or  securities accounts held at financial institutions solely to secure payment of fees and  similar costs and expenses of such financial institutions with respect to such accounts; 

 

-66- (i) Liens in connection with transfers permitted under Section 9.09; (j) any judgment lien or lien arising from decrees or attachments not  constituting an Event of Default; (k) leases or subleases of real property granted in the Ordinary Course of  Business, and leases, subleases, nonexclusive licenses or sublicenses of personal property  (other than Intellectual Property) granted in the Ordinary Course of Business; (l) Liens in favor of customs and revenue authorities arising as a matter of law  to secure the payment of custom duties in connection with the importation of goods, not  securing an amount in the aggregate in excess of $100,000 at any given time; (m) Liens on a deposit account of the Obligors and the cash and cash  equivalents therein, in each case, securing Indebtedness described in Section 9.01(k); and (n) Permitted Licenses solely to the extent that such Permitted License would  constitute a Lien; provided that no Lien otherwise permitted under any of the foregoing Sections 9.02 (excluding  Sections 9.02(a) and 9.02(n)) shall apply to any Material Intellectual Property. Section 9.03. Fundamental Changes and Acquisitions.  It will not, and will not permit any  of its Subsidiaries to, (i) enter into or consummate any transaction of merger, amalgamation or  consolidation, including without limitation, a reverse-triangular merger, or other similar  transaction or series of related transactions, (ii) liquidate, wind up or dissolve itself (or suffer any  liquidation or dissolution) (including in connection with any division or plan of division under  Delaware law or any comparable event under a different jurisdiction’s laws), (iii) make or  consummate any Acquisition, (iv) make any initial public offering that is not a Qualified Public  Offering or (v) sell or issue any Disqualified Equity Interests, except: (a) Investments permitted under Section 9.05; (b) Permitted Acquisitions for (i) aggregate cash consideration not to exceed  $2,000,000 and (ii) total consideration not to exceed $5,000,000, in each case, for the  course of this Agreement;  (c) the merger, amalgamation or consolidation of any Obligor with or into any  other Obligor, provided that (i) if Borrower is a party to such merger, amalgamation or  consolidation, Borrower shall be the surviving entity and (ii) if a Domestic Subsidiary is a  party to such merger, amalgamation or consolidation with a Foreign Subsidiary, the  Domestic Subsidiary shall be the surviving entity; and (d) the purchase of the QIAGEN Patents pursuant to the Patent Purchase  Agreement. 

 

-67- Section 9.04. Lines of Business.  It will not, and will not permit any of its Subsidiaries to,  engage to any material extent in any business other than the business engaged in on the date hereof  by such Obligor, or a business reasonably related, incidental or complementary thereto or  reasonable extensions thereof. Section 9.05. Investments.  It will not, and will not permit any of its Subsidiaries to, make,  directly or indirectly, or permit to remain outstanding any Investments except: (a) Investments outstanding on the date hereof and identified in Schedule 9.05  and any modification, replacement, renewal or extension thereof to the extent not  involving new or additional Investments; (b) operating deposit accounts with banks; (c) extensions of credit in the nature of accounts receivable or notes receivable  arising from the sales of goods or services in the Ordinary Course of Business; (d) Permitted Cash Equivalent Investments; (e) (i)  Investments consisting of 100% of the ownership of the Equity Interests  of its Subsidiaries, (ii) intercompany Investments by Borrower or a Subsidiary in any  Guarantor or (iii) Investments by Borrower or any Subsidiary acquired in connection with  a Permitted Acquisition; (f) Hedging Agreements entered into in the ordinary course of any Obligor’s  financial planning solely to hedge interest rate risks (and not for speculative purposes) in  respect of Permitted Indebtedness and in aggregate amount for all such Hedging  Agreements not in excess of $500,000; (g) Investments consisting of prepaid expenses, negotiable instruments held for  collection or deposit, security deposits with utilities, landlords and other like Persons, and  deposits in connection with workers’ compensation and similar deposits, in each case made  in the Ordinary Course of Business; (h) Investments received in connection with any Insolvency Proceedings in  respect of any customers, suppliers or clients and in settlement of delinquent obligations of,  and other disputes with, customers, suppliers or clients; (i) Investments permitted under Section 9.01(e) and Section 9.03; (j) 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; (k) 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  

 

-68- 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 in an aggregate amount not to exceed $100,000 for subclauses (i) and (ii)  in any fiscal year;  (l) so long as no Default shall have occurred and is continuing at the time of  such Investment, or after giving effect thereto, Investments in Immaterial Foreign  Subsidiaries in an aggregate amount not to exceed $250,000 in any fiscal year; and (m) so long as no Default shall have occurred and is continuing at the time of  such Investment, or after giving effect thereto, other Investments in an amount not to  exceed $100,000 in any fiscal year; and  (n) so long as no Default shall have occurred and is continuing at the time of  such Investment, or after giving effect thereto, Investments in the Chinese Subsidiary in an  aggregate amount not to exceed: (i) $2,000,000 in the fiscal year ending December 31,  2022 and (ii) $2,500,000 in any fiscal year thereafter.  Section 9.06. Restricted Payments.  It will not, and will not permit any of its Subsidiaries  to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, other  than: (a) dividends and stock splits with respect to any Equity Interests of Borrower  or any of its Subsidiaries payable solely in additional shares of its Qualified Equity  Interests; (b) any Restricted Payment by a Subsidiary to Borrower; (c) any purchase, redemption, retirement, or other Acquisition by Borrower or  any of its Subsidiaries of shares of its capital stock or other Equity Interests with the  proceeds received from a substantially concurrent issue of new shares of its capital stock or  other Equity Interests; (d) dividends paid by any Guarantor to any other Obligor; (e) cashless exercises of options and warrants; (f) 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 in an aggregate amount not to exceed $100,000 in any  fiscal year;  (g) the making of cash payments in lieu of the issuance of fractional shares  upon the conversion of convertible securities (or in connection with the exercise of  warrants or similar securities) not to exceed $25,000 in any fiscal year; and 

 

-69- (h) the issuance of the Warrant Certificate and cash payments made to redeem,  purchase, repurchase or retire the Warrant Obligations in accordance with the terms of the  Warrant Certificate. Section 9.07. Payments of Indebtedness.  It will not, and will not permit any of its  Subsidiaries to, make any payments in respect of any Material Indebtedness other than (i)  payments of the Obligations and (ii) so long as no Default has occurred and is continuing or would  result therefrom, scheduled payments of other Permitted Indebtedness and, in the case of  repayment of intercompany Indebtedness permitted in reliance upon Section 9.01(e), subject to  any subordination agreement entered into in connection therewith. Section 9.08. Change in Fiscal Year.  It will not, and will not permit any of its Subsidiaries  to, change the last day of its fiscal year from that in effect on the date hereof, without prior written  notice to the Administrative Agent, except to change the fiscal year of a Subsidiary acquired in  connection with a Permitted Acquisition to conform its fiscal year to that of Borrower. Section 9.09. Sales of Assets, Etc.  It will not, and will not permit any of its Subsidiaries to,  sell, lease, exclusively license (in terms of geography or field of use), as a licensor, transfer  (including in connection with any division or plan of division under Delaware law or any  comparable event under a different jurisdiction’s laws) or otherwise dispose of any of its Property  (including accounts receivable and Equity Interests of Subsidiaries), or forgive, release or  compromise any amount owed to any Obligor or any of its Subsidiaries, in each case, in one  transaction or series of transactions (any thereof, an “Asset Sale”), except: (a) transfers of cash in the Ordinary Course of Business for equivalent value; (b) sales or leases of products and services in the Ordinary Course of Business  on ordinary business terms; (c) the forgiveness, release or compromise of any amount owed to any Obligor  in the Ordinary Course of Business; (d) entering into, or becoming bound, by a Permitted License to the extent not  otherwise prohibited by this Agreement; (e) development and other collaborative arrangements where such  arrangements provide for the license or disclosure of Patents, Trademarks, Copyrights or  other Intellectual Property rights of any Obligor in the Ordinary Course of Business and  consistent with general market practices where such license requires periodic payments  based on per unit sales of a product over a period of time; provided that such licenses must  be true licenses that do not result in a legal transfer of title of the licensed Property or  otherwise constitute sales transactions in substance,; (f) a sale, lease, exclusive license, transfer or other disposition (including by  way of abandonment, cancellation or trade-in) of any Property that is obsolete, worn out,  surplus or no longer used or useful in connection with the business of the Obligors or with  

 

-70- respect to which a newer and improved version is available; (g) dispositions resulting from Casualty Events; (h) any transaction permitted under Section 9.02, 9.03, 9.05 and 9.20; and (i) so long as no Default shall have occurred and is continuing at the time of  such Asset Sale, or after giving effect thereto, Asset Sales of other property not to exceed  $250,000 in the aggregate per fiscal year. Section 9.10. Transactions with Affiliates.  It will not, and will not permit any of its  Subsidiaries to, sell, lease, license or otherwise transfer any assets to, or purchase, lease, license or  otherwise acquire any assets from, or otherwise engage in any other transactions with, any of its  Affiliates, except: (a) transactions between or among the Obligors; (b) any transaction permitted under Section 9.01, 9.05, 9.06 or 9.09; (c) customary compensation and indemnification of, and other employment  arrangements with, directors, officers and employees of any Obligor in the Ordinary  Course of Business; (d) transactions upon fair and reasonable terms that are no less favorable to any  Obligor than would be obtained in a comparable arm’s-length transaction with a Person not  an Affiliate;  (e) the transactions set forth on Schedule 9.10; and (f) cash equity contributions by Borrower’s investors in Borrower or its  Subsidiaries (other than Disqualified Equity Interests).  Section 9.11. Restrictive Agreements.  It will not, and will not permit any of its Subsidiaries  to, directly or indirectly, enter into, incur or permit to exist any Restrictive Agreement other than  (i) restrictions and conditions imposed by Law or by the Loan Documents, (ii) Restrictive  Agreements listed on Schedule 7.15, (iii) any stockholder agreement or investor rights agreement,  charter, by laws or other organizational documents of an Obligor or (iv) limitations associated with  Permitted Liens or with any transaction permitted under Section 9.01, 9.03, 9.05, 9.06 or 9.09. Section 9.12. Organizational Documents, Material Agreements.  (a) It will not, and will  not permit any of its Subsidiaries to, enter into any amendment to or modification of any  Organizational Document that would be reasonably expected to adversely affect the Lenders in  any material respect, without the prior written consent of the Administrative Agent. (b) It will not, and will not permit any of its Subsidiaries to (i) enter into any  material waiver, amendment or modification of any Material Agreement (including, but not  

 

-71- limited to, any amendments to provisions relating to pricing and term) that would be reasonably  expected to adversely affect the Lenders in any material respect or (ii) take or omit to take any  action that results in the termination of, or permits any other Person to terminate, any Material  Agreement or Material Intellectual Property that would be reasonably expected to adversely affect  the Lenders in any material respect, without, in each case, the prior written consent of the  Administrative Agent; provided that Borrower may terminate the Supply Agreement in  accordance with its terms if such termination would not be reasonably expected to adversely affect  the Lenders in any material respect.  Section 9.13. Operating Leases.  It will not, and will not permit any of its Subsidiaries to,  make any expenditures in respect of operating leases, except for: (a) real estate operating leases entered into in the Ordinary Course of Business;  and (b) operating leases that would not cause the Obligors, on a consolidated basis,  to make payments exceeding $500,000 in any fiscal year. Section 9.14. Sales and Leasebacks.  Except as permitted by Section 9.01(g), it will not,  and will not permit any of its Subsidiaries to, become liable, directly or indirectly, with respect to  any lease, whether an operating lease or a Capital Lease Obligation, of any Property (whether real,  personal, or mixed), whether now owned or hereafter acquired, which (i) any Obligor has sold or  transferred or is to sell or transfer to any other Person and (ii) any Obligor intends to use for  substantially the same purposes as Property which has been or is to be sold or transferred. Section 9.15. Hazardous Material.  It will not, and will not permit any of its Subsidiaries  to, use, generate, manufacture, install, treat, release, store or dispose of any Hazardous Material,  except in compliance with all applicable Environmental Laws or where the failure to comply  would not reasonably be expected to result in a Material Adverse Change. Section 9.16. Accounting Changes.  It will not, and will not permit any of its Subsidiaries  to, make any significant change in accounting treatment, except as required or permitted by  GAAP. Section 9.17. Compliance with ERISA.  No ERISA Affiliate shall cause or suffer to exist  (a) any event that would result in the imposition of a Lien with respect to any Title IV Plan or  Multiemployer Plan or (b) any other ERISA Event that would, in the aggregate, have a Material  Adverse Effect.  No Obligor or any Subsidiary thereof shall cause or suffer to exist any event that  could result in the imposition of a Lien with respect to any Benefit Plan that would have a Material  Adverse Effect. Section 9.18. Deposit Accounts.  It will not, and will not permit any of its Subsidiaries to,  establish or maintain any bank account that is not a Controlled Account (other than an Excluded  Account) and will not, and will not permit any of its Subsidiaries to, deposit proceeds in a bank  account that is not a Controlled Account; provided, up to two (2) months of payroll expenses may  be on deposit in Excluded Accounts in the aggregate at any time. 

 

-72- Section 9.19. Outbound Licenses.  It will not, and will not permit any of its Subsidiaries to,  enter into or become bound by any outbound license or agreement unless such outbound license or  agreement is a Permitted License. Section 9.20. Inbound Licenses.  It will not, and will not permit any of its Subsidiaries to,  enter into or become bound by any inbound license or agreement (other than Permitted Licenses)  unless (i) no Default has occurred and is continuing, (ii) such Obligor has provided written notice  to the Administrative Agent of the material terms of such license or agreement with a description  of its anticipated and projected impact on such Obligor’s business or financial condition, and (iii)  such Obligor has taken such commercially reasonable actions as the Administrative Agent may  reasonably request to obtain the consent of, or waiver by, any Person whose consent or waiver is  necessary for the Administrative Agent to be granted a valid and perfected security interest in such  license or agreement allowing the Administrative Agent to fully exercise its rights under any of the  Loan Documents in the event of a disposition or liquidation of the rights, assets or property that is  the subject of such license or agreement; provided that the aggregate amounts to be paid under all  such inbound licenses pursuant to this Section 9.20 shall not exceed an amount equal to  $1,000,000 per fiscal year. ARTICLE 10 EVENTS OF DEFAULT Section 10.01. Events of Default.  Each of the following events shall constitute an “Event of  Default”: (a) Borrower shall fail to pay any principal on the Loan when and as the same  shall become due and payable, whether at the due date thereof or at a date fixed for  prepayment thereof or otherwise; or (b) any Obligor shall fail to pay any Obligation (other than an amount referred  to in Section 10.01(a)) when and as the same shall become due and payable, and such  failure shall continue unremedied for a period of three (3) Business Days; or (c) any representation or warranty made by or on behalf of an Obligor or any of  its Subsidiaries in or in connection with this Agreement or any other Loan Document or  any amendment or modification hereof or thereof, or in any report, certificate, financial  statement or other document furnished pursuant to or in connection with this Agreement or  any other Loan Document or any amendment or modification hereof or thereof, shall: (i)  prove to have been incorrect when made or deemed made to the extent that such  representation or warranty contains any materiality or Material Adverse Effect qualifier; or  (ii) prove to have been incorrect in any material respect when made or deemed made to the  extent that such representation or warranty does not otherwise contain any materiality or  Material Adverse Effect qualifier; or (d) any Obligor shall fail to observe or perform any covenant, condition or  agreement contained in Sections 8.01, 8.02, 8.03(a) (with respect to such Obligor’s  

 

-73- existence), 8.10, 8.11, 8.13, 8.15, 8.17, 8.18, 8.19 or Article 9; or (e) any Obligor shall fail to observe or perform any covenant, condition or  agreement contained in this Agreement (other than those specified in Section 10.01(a), (b)  or (d)) or any other Loan Document, and, in the case of any failure that is capable of cure,  such failure shall continue unremedied for a period of thirty (30) or more days; or (f) any Obligor shall fail to make any payment in respect of any Material  Indebtedness, when and as the same shall become due and payable after giving effect to  any applicable grace or cure period as originally provided by the terms of such  Indebtedness; or (g) (i) any material breach of, or “event of default” or similar event under, the  Contract governing any Material Indebtedness shall occur and such breach or “event of  default” or similar event shall continue unremedied, uncured or unwaived after a period of  five (5) Business Days after the expiration of any cure period thereunder, or (ii) any event  or condition occurs (A) that results in any Material Indebtedness becoming due prior to its  scheduled maturity or (B) that enables or permits (with or without the giving of notice, the  lapse of time or both) the holder or holders of such Material Indebtedness or any trustee or  agent on its or their behalf to cause such Material Indebtedness to become due, or to require  the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled  maturity; provided that this Section 10.01(h) shall not apply to secured Indebtedness that  becomes due as a result of the voluntary sale or transfer of the Property securing such  Material Indebtedness; or (h) any Obligor or any of its Subsidiaries: (i) ceases to be Solvent, or generally does not or becomes unable to pay  its debts or meet its liabilities as the same become due, or admits in writing its  inability to pay its debts generally, or declares any general moratorium on its  indebtedness, or proposes a compromise or arrangement or deed of company  arrangement between it and any class of its creditors; or (ii) shall (A) voluntarily commence any proceeding or file any petition  seeking liquidation, reorganization or other relief under any Federal, state or  foreign bankruptcy, insolvency, receivership or similar law now or hereafter in  effect, (B) consent to the institution of, or fail to contest in a timely and appropriate  manner, any proceeding or petition described in Section 10.01(i), (C) apply for or  consent to the appointment of a receiver, trustee, custodian, sequestrator,  conservator or similar official for an Obligor or for a substantial part of its assets,  (D) file an answer admitting the material allegations of a petition filed against it in  any such proceeding, (E) make a general assignment for the benefit of creditors or  (F) take any action for the purpose of effecting any of the foregoing; or (i) an involuntary proceeding shall be commenced or an involuntary petition  shall be filed seeking (i) liquidation, reorganization or other relief in respect of an Obligor  

 

-74- or any Subsidiary of an Obligor or its debts, or of a substantial part of its assets, under any   Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or  hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,  conservator or similar official for an Obligor or any Subsidiary of an Obligor or for a  substantial part of its assets, and, in any such case, such proceeding or petition shall  continue undismissed for sixty (60) days or an order or decree approving or ordering any of  the foregoing shall be entered; or (j) one or more judgments for the payment of money in an aggregate amount in  excess of $250,000 (excluding any amounts covered by insurance as to which the  applicable carrier has accepted coverage) shall be rendered against any Obligor or any  combination thereof and the same shall remain undischarged for a period of forty-five (45)  consecutive days during which execution shall not be effectively stayed, or any action shall  be legally taken by a judgment creditor to attach or levy upon any assets of any Obligor to  enforce any such judgment; or (k) an ERISA Event shall have occurred that, when taken together with all  other ERISA Events that have occurred, would reasonably be expected to result in liability  of the Obligors and their Subsidiaries in an aggregate amount exceeding (i) $250,000 in  any year or (ii) $500,000 for all periods until repayment of all Obligations (other than the  Warrant Obligations); or (l) a Change of Control shall have occurred; or (m) a Material Adverse Change shall have occurred; or (n) (i) any Lien created by any of the Security Documents shall at any time not  constitute a valid and perfected Lien in favor of the Administrative Agent on Collateral  with an aggregate value in excess of $250,000, free and clear of all other Liens (other than  Permitted Liens) except due to the action or inaction of the Administrative Agent or any  Lender(s), (ii) except as permitted herein the Security Documents or any Guarantee of any  of the Obligations shall for whatever reason cease to be in full force and effect, or (iii) any  of the Security Documents or any Guarantee of any of the Obligations, or the enforceability  thereof, shall be repudiated or contested by any Obligor. Section 10.02. Remedies.  (a) Upon the occurrence of any Event of Default, then, and in  every such event (other than an Event of Default described in Section 10.01(h) or (i)), and at any  time thereafter during the continuance of such event, the Majority Lenders may, by notice to  Borrower, take either or both of the following actions, at the same or different times: (i) terminate  the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare  the Loans then outstanding to be due and payable in whole (or in part, in which case any principal  not so declared to be due and payable may thereafter be declared to be due and payable), and  thereupon the principal of the Loans so declared to be due and payable, together with accrued  interest thereon and all fees and other Obligations, shall become due and payable immediately (in  the case of the Loans, at the Redemption Price therefor), without presentment, demand, protest or  other notice of any kind, all of which are hereby waived by each Obligor. 

 

-75- (b) Upon the occurrence of any Event of Default described in Section 10.01(h) or (i), the  Commitments shall automatically terminate and the principal amount of the Loans then  outstanding, together with accrued interest thereon and all fees and other Obligations, shall  automatically become due and payable immediately (in the case of the Loans, at the Redemption  Price therefor), without presentment, demand, protest or other notice of any kind, all of which are  hereby waived by each Obligor. (c) If any Lender collects any money or property pursuant to this Article 10, they shall  pay out the money or property in the order set forth in Section 4.01(b). Section 10.03. Prepayment Premium and Redemption Price.  For the avoidance of doubt,  any Prepayment Premium (as a component of the Redemption Price) shall be due and payable at  any time the Loans become due and payable prior to the Stated Maturity Date for any reason,  whether due to acceleration pursuant to the terms of this Agreement (in which case it shall be due  immediately, upon the giving of notice to Borrower in accordance with Section 10.02(a), or  automatically, in accordance with Section 10.02(b)), by operation of law or otherwise (including,  without limitation, on account of any bankruptcy filing), except as otherwise specified herein.  In  view of the impracticability and extreme difficulty of ascertaining the actual amount of damages to  the Lenders or profits lost by the Lenders as a result of such acceleration, and by mutual agreement  of the parties as to a reasonable estimation and calculation of the lost profits or damages of the  Lenders, any Prepayment Premium shall be due and payable upon such date.  Each Obligor hereby  waives any defense to payment, whether such defense may be based in public policy, ambiguity, or  otherwise.  The Obligors and the Lenders acknowledge and agree that any Prepayment Premium  due and payable in accordance with this Agreement shall not constitute unmatured interest,  whether under Section 502(b)(3) of the Bankruptcy Code or otherwise.  Each Obligor further  acknowledges and agrees, and waives any argument to the contrary, that payment of such amount  does not constitute a penalty or an otherwise unenforceable or invalid obligation. ARTICLE 11 GUARANTEE Section 11.01. The Guarantee.  The Guarantors hereby jointly and severally guarantee to the  Administrative Agent and each Lender, and its successors and assigns, the prompt payment in full  when due (whether at stated maturity, by acceleration or otherwise) of the principal of and interest  on the Loans, all fees and other amounts and Obligations from time to time owing to the  Administrative Agent and any Lender by Borrower under this Agreement or under any other Loan  Document and by any other Obligor under any of the Loan Documents, in each case strictly in  accordance with the terms thereof (such obligations being herein collectively called the  “Guaranteed Obligations”).  The Guarantors hereby further jointly and severally agree that if  Borrower shall fail to pay in full when due (whether at stated maturity, by acceleration or  otherwise) any of the Guaranteed Obligations, the Guarantors will promptly pay the same, without  any demand or notice whatsoever, and that in the case of any extension of time of payment or  renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due  (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such  extension or renewal. 

 

-76- Section 11.02. Obligations Unconditional.  The obligations of the Guarantors under Section  11.01 are absolute and unconditional, joint and several, irrespective of the value, genuineness,  validity, regularity or enforceability of the obligations of Borrower under this Agreement or any  other agreement or instrument referred to herein, or any substitution, release or exchange of any  other guarantee of or security for any of the Guaranteed Obligations, and, to the fullest extent  permitted by applicable Law, irrespective of any other circumstance whatsoever that might  otherwise constitute a legal or equitable discharge or defense of a surety or Guarantor, it being the  intent of this Section 11.02 that the obligations of the Guarantors hereunder shall be absolute and  unconditional, joint and several, under any and all circumstances.  Without limiting the generality  of the foregoing, it is agreed that the occurrence of any one or more of the following shall not alter  or impair the liability of the Guarantors hereunder, which shall remain absolute and unconditional  as described above: (a) at any time or from time to time, without notice to the Guarantors, the time  for any performance of or compliance with any of the Guaranteed Obligations shall be  extended, or such performance or compliance shall be waived; (b) any of the acts mentioned in any of the provisions of this Agreement or any  other agreement or instrument referred to herein shall be done or omitted; (c) the maturity of any of the Guaranteed Obligations shall be accelerated, or  any of the Guaranteed Obligations shall be modified, supplemented or amended in any  respect, or any right under this Agreement or any other agreement or instrument referred to  herein shall be waived or any other guarantee of any of the Guaranteed Obligations or any  security therefor shall be released or exchanged in whole or in part or otherwise dealt with;  or (d) any lien or security interest granted to, or in favor of, any Lender as security  for any of the Guaranteed Obligations shall fail to be perfected. The Guarantors hereby expressly waive diligence, presentment, demand of payment,  protest and all notices whatsoever, and any requirement that the Administrative Agent or any  Lender exhaust any right, power or remedy or proceed against Borrower under this Agreement or  any other agreement or instrument referred to herein, or against any other Person under any other  guarantee of, or security for, any of the Guaranteed Obligations. Section 11.03. Reinstatement.  The obligations of the Guarantors under this Article 11 shall  be automatically reinstated if and to the extent that for any reason any payment by or on behalf of  Borrower in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by  any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in  bankruptcy or reorganization or otherwise, and the Guarantors jointly and severally agree that they  will indemnify the Administrative Agent and each Lender on demand for all reasonable  out-of-pocket costs and expenses (including reasonable fees of counsel) incurred by such Persons  in connection with such rescission or restoration, including any such reasonable out-of-pocket  costs and expenses incurred in defending against any claim alleging that such payment constituted  a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar  

 

-77- Law. Section 11.04. Subrogation.  The Guarantors hereby jointly and severally agree that, until  the payment and satisfaction in full of all Guaranteed Obligations (other than the Warrant  Obligations) and the expiration and termination of the Commitments, they shall not exercise any  right or remedy arising by reason of any performance by them of their guarantee in Section 11.01,  whether by subrogation or otherwise, against Borrower or any other guarantor of any of the  Guaranteed Obligations or any security for any of the Guaranteed Obligations. Section 11.05. Remedies.  The Guarantors jointly and severally agree that, as between the  Guarantors, on one hand, and the Lenders, on the other hand, the obligations of Borrower under  this Agreement and under the other Loan Documents may be declared to be forthwith due and  payable as provided in Article 10 (and shall be deemed to have become automatically due and  payable in the circumstances provided in Article 10) for purposes of Section 11.01  notwithstanding any stay, injunction or other prohibition preventing such declaration (or such  obligations from becoming automatically due and payable) as against Borrower and that, in the  event of such declaration (or such obligations being deemed to have become automatically due and  payable), such obligations (whether or not due and payable by Borrower) shall forthwith become  due and payable by the Guarantors for purposes of Section 11.01. Section 11.06. Instrument for the Payment of Money.  Each Guarantor hereby acknowledges  that the guarantee in this Article 11 constitutes an instrument for the payment of money, and  consents and agrees that each Lender, at its sole option, in the event of a dispute by such Guarantor  in the payment of any moneys due hereunder, shall have the right to proceed by motion for  summary judgment in lieu of complaint pursuant to N.Y. Civ. Prac. L&R § 3213. Section 11.07. Continuing Guarantee.  The guarantee in this Article 11 is a continuing  guarantee, and shall apply to all Guaranteed Obligations whenever arising. Section 11.08. Rights of Contribution.  The Guarantors hereby agree, as between  themselves, that if any Guarantor shall become an Excess Funding Guarantor (as defined below)  by reason of the payment by such Guarantor of any Guaranteed Obligations, each other Guarantor  shall, on demand of such Excess Funding Guarantor (but subject to the next sentence), pay to such  Excess Funding Guarantor an amount equal to such Guarantor’s Pro Rata Share (as defined below  and determined, for this purpose, without reference to the properties, debts and liabilities of such  Excess Funding Guarantor) of the Excess Payment (as defined below) in respect of such  Guaranteed Obligations.  The payment obligation of a Guarantor to any Excess Funding Guarantor  under this Section 11.08 shall be subordinate and subject in right of payment to the prior payment  in full of the obligations of such Guarantor under the other provisions of this Article 11 and such  Excess Funding Guarantor shall not exercise any right or remedy with respect to such excess until  payment and satisfaction in full of all of such obligations. For purposes of this Section 11.08, (i) “Excess Funding Guarantor” means, in respect of  any Guaranteed Obligations, a Guarantor that has paid an amount in excess of its Pro Rata Share of  such Guaranteed Obligations, (ii) “Excess Payment” means, in respect of any Guaranteed  Obligations, the amount paid by an Excess Funding Guarantor in excess of its Pro Rata Share of  

 

-78- such Guaranteed Obligations and (iii) “Pro Rata Share” means, as of the date of determination,  for any Guarantor, the ratio (expressed as a percentage) of (x) the amount by which the aggregate  present fair saleable value of all properties of such Guarantor (excluding any shares of stock of any  other Guarantor) exceeds the amount of all the debts and liabilities of such Guarantor (including  contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of  such Guarantor hereunder and any obligations of any other Guarantor that have been Guaranteed  by such Guarantor) to (y) the amount by which the aggregate fair saleable value of all properties of  all of the Guarantors exceeds the amount of all the debts and liabilities (including contingent,  subordinated, unmatured and unliquidated liabilities, but excluding the obligations of Borrower  and the Guarantors hereunder and under the other Loan Documents) of all of the Guarantors,  determined (A) with respect to any Guarantor that is a party hereto on the Closing Date, as of such  date, and (B) with respect to any other Guarantor, as of the date such Guarantor becomes a  Guarantor hereunder. Section 11.09. General Limitation on Guarantee Obligations.  In any action or proceeding  involving any provincial, territorial or state corporate law, or any state or federal bankruptcy,  insolvency, reorganization or other Law affecting the rights of creditors generally, if the  obligations of any Guarantor under Section 11.01 would otherwise, taking into account the  provisions of Section 11.08, be held or determined to be void, invalid or unenforceable, or  subordinated to the claims of any other creditors, on account of the amount of its liability under  Section 11.01, then, notwithstanding any other provision hereof to the contrary, the amount of  such liability shall, without any further action by such Guarantor, the Administrative Agent, the  Lenders or any other Person, be automatically limited and reduced to the highest amount that is  valid and enforceable and not subordinated to the claims of other creditors as determined in such  action or proceeding. ARTICLE 12 ADMINISTRATIVE AGENT Section 12.01. Appointment.  Each of the Lenders hereby irrevocably appoints Perceptive to  act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and  authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers  as are delegated to the Administrative Agent by the terms hereof or thereof, together with such  actions and powers as are reasonably incidental thereto.  The provisions of this Article 12 are  solely for the benefit of the Administrative Agent and the Lenders, and neither Borrower nor any  other Obligor will have rights as a third-party beneficiary of any of such provisions.  It is  understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or  any other similar term) with reference to the Administrative Agent is not intended to connote any  fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable  Law.  Instead, such term is used as a matter of market custom, and is intended to create or reflect  only an administrative relationship between contracting parties.  Section 12.02. Rights as a Lender.  The Person serving as the Administrative Agent  hereunder will have the same rights and powers in its capacity as a Lender as any other Lender and  may exercise the same as though it were not the Administrative Agent, and the term “Lender” or  

 

-79- “Lenders” will, unless otherwise expressly indicated or unless the context otherwise requires,  include the Person serving as the Administrative Agent hereunder in its individual capacity to the  extent such Person is a Lender.  The Lenders acknowledge and agree that such Person and its  Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor  or in any other advisory capacity for, and generally engage in any kind of business with, Borrower,  the other Obligors or any other Subsidiaries or Affiliates of the Obligors as if such Person were not  the Administrative Agent hereunder and without any duty to account therefor to the Lenders.  Section 12.03. Exculpatory Provisions.  (a) The Administrative Agent will not have any  duties or obligations except those expressly set forth herein and in the other Loan Documents, and  its duties hereunder are administrative in nature.  Without limiting the generality of the foregoing,  the Administrative Agent: (i) will not be subject to any fiduciary or other implied duties, regardless of  whether a Default has occurred and is continuing; (ii) will not have any duty to take any discretionary action or exercise any  discretionary powers, except discretionary rights and powers expressly contemplated  hereby or by the other Loan Documents that the Administrative Agent is required to  exercise as directed in writing by the Majority Lenders (or such other number or  percentage of the Lenders as will be expressly provided for herein or in the other Loan  Documents); provided that the Administrative Agent will not be required to take any action  that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to  liability or that is contrary to any Loan Document or applicable Law, including any action  that may be in violation of the automatic stay under any Insolvency Proceeding; and (iii) will not, except as expressly set forth herein and in the other Loan  Documents, have any duty to disclose, and will not be liable for the failure to disclose, any  information relating to the Obligors or any of its Subsidiaries or Affiliates that is  communicated to or obtained by the Person serving as the Administrative Agent or any of  its Affiliates in any capacity. (b) The Administrative Agent will not be liable for any action taken or not taken by it (i)  with the consent or at the request of the Majority Lenders (or such other number or percentage of  the Lenders as will be necessary, or as the Administrative Agent believes in good faith will be  necessary, under the circumstances), or (ii) in the absence of its own gross negligence or willful  misconduct as determined by a court of competent jurisdiction by final and non-appealable  judgment.  The Administrative Agent will be deemed not to have knowledge of any Default unless  and until notice describing such Default is given to the Administrative Agent in writing by  Borrower or a Lender. (c) The Administrative Agent will not be responsible for or have any duty to ascertain or  inquire into (i) any statement, warranty or representation made in or in connection with this  Agreement or any other Loan Document, (ii) the contents of any certificate, report or other  document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the  performance or observance of any of the covenants, agreements or other terms or conditions set  

 

-80- forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,  effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,  instrument or document or (v) the satisfaction of any condition set forth in Article 6 or elsewhere  herein, other than to confirm receipt of items expressly required to be delivered to the  Administrative Agent. Section 12.04. Reliance by Administrative Agent.  The Administrative Agent will be entitled  to rely upon, and will not incur any liability for relying upon, any notice, request, certificate,  consent, statement, instrument, document or other writing (including any electronic message,  Internet or intranet website posting or other distribution) believed by it to be genuine and to have  been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also  may rely upon any statement made to it orally or by telephone and believed by it to have been  made by the proper Person, and will not incur any liability for relying thereon.  In determining  compliance with any condition hereunder to the making of the Loans that by its terms must be  fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition  is satisfactory to such Lender unless the Administrative Agent has received notice to the contrary  from such Lender prior to the making of such Loans.  The Administrative Agent may consult with  legal counsel (who may be counsel for Borrower), independent accountants and other experts  selected by it, and will not be liable for any action taken or not taken by it in accordance with the  advice of any such counsel, accountants or experts. Section 12.05. Delegation of Duties.  The Administrative Agent may perform any and all of  its duties and exercise its rights and powers hereunder or under any other Loan Document by or  through any one or more sub-agents appointed by the Administrative Agent.  The Administrative  Agent and any such sub-agent may perform any and all of its duties and exercise its rights and  powers by or through their respective Affiliates.  The exculpatory provisions of this Section will  apply to any such sub-agent and to the Affiliates of the Administrative Agent and any such  sub-agent, and will apply to their respective activities in connection with the syndication of the  facility as well as activities as Administrative Agent.  The Administrative Agent will not be  responsible for the negligence or misconduct of any sub-agents except to the extent that a court of  competent jurisdiction determines in a final and non-appealable judgment that the Administrative  Agent acted with gross negligence or willful misconduct in the selection of such sub-agents. Section 12.06. Resignation of Agent.  (a) The Administrative Agent may at any time give  notice of its resignation to the Lenders and Borrower, which notice shall set forth the effective date  of such resignation (the “Resignation Effective Date”), such date not to be earlier than the thirtieth  (30th) day following the date of such notice.  The Majority Lenders and Borrower shall mutually  agree upon a successor to the Administrative Agent.  If the Majority Lenders and Borrower are  unable to so mutually agree and no successor shall have been appointed within twenty-five (25)  days after the retiring Administrative Agent gives notice of its resignation, then the retiring  Administrative Agent may (but will not be obligated to), on behalf of the Lenders, appoint a  successor Administrative Agent it shall designate (in its reasonable discretion after consultation  with Borrower and the Majority Lenders).  Whether or not a successor has been appointed, such  resignation will become effective in accordance with such notice on the Resignation Effective  Date. 

 

-81- (b) With effect from the Resignation Effective Date (i) the retiring Administrative Agent  will be discharged from its duties and obligations hereunder and under the other Loan Documents  (except that in the case of any Collateral held by the Administrative Agent on behalf of the Lenders  under any of the Loan Documents, the retiring Administrative Agent will continue to hold such  Collateral until such time as a successor Administrative Agent is appointed) and (ii) except for any  indemnity payments owed to the retiring Administrative Agent, all payments, communications  and determinations provided to be made by, to or through the Administrative Agent will instead be  made by or to each Lender directly, until such time, if any, as the Majority Lenders appoint a  successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s  appointment as Administrative Agent hereunder, such successor will succeed to and become  vested with all of the rights, powers, privileges and duties of the retiring Administrative Agent  (other than any rights to indemnity payments owed to the retiring Administrative Agent), and the  retiring Administrative Agent will be discharged from all of its duties and obligations hereunder or  under the other Loan Documents.  The fees payable by Borrower to a successor Administrative  Agent will be the same as those payable to its predecessor unless otherwise agreed between  Borrower and such successor.  After the retiring Administrative Agent’s resignation hereunder and  under the other Loan Documents, the provisions of this Article 12 and Sections 13.03 and 13.06  will continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and  their respective Affiliates in respect of any actions taken or omitted to be taken by any of them  while the retiring Administrative Agent was acting as Administrative Agent.  Section 12.07. Non-Reliance on Administrative Agent and Other Lenders.  Each Lender  acknowledges that it has, independently and without reliance upon the Administrative Agent or  any other Lender or any of their Affiliates and based on such documents and information as it has  deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each  Lender also acknowledges that it will, independently and without reliance upon the Administrative  Agent or any other Lender or any of their Affiliates and based on such documents and information  as it will from time to time deem appropriate, continue to make its own decisions in taking or not  taking action under or based upon this Agreement, any other Loan Document or any related  agreement or any document furnished hereunder or thereunder. Section 12.08. Administrative Agent May File Proofs of Claim.  In case of the pendency of  any Insolvency Proceeding or any other judicial proceeding relative to Borrower, the  Administrative Agent (irrespective of whether the principal of the Loans will then be due and  payable as herein expressed or by declaration or otherwise and irrespective of whether the  Administrative Agent has made any demand on Borrower) will be entitled and empowered (but  not obligated), by intervention in such proceeding or otherwise:  (a) to file and prove a claim for the whole amount of the principal and interest  owing and unpaid in respect of the Loans and all other Obligations that are owing and  unpaid hereunder or under any other Loan Document and to file such other documents as  may be necessary or advisable in order to have the claims of the Lenders and the  Administrative Agent (including any claim for the reasonable compensation, expenses,  disbursements and advances of the Lenders and the Administrative Agent and their  respective agents and counsel and all other amounts due the Lenders and the  Administrative Agent under this Agreement or any other Loan Document) allowed in such  

 

-82- judicial proceeding; and (b) to collect and receive any monies or other property payable or deliverable  on any such claims and to distribute the same. Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official  in any such judicial proceeding is hereby authorized by each Lender to make any payments of the  type described above in this Section 12.08 to the Administrative Agent and, in the event that the  Administrative Agent consents to the making of such payments directly to the Lenders, to pay to  the Administrative Agent any amount due for the reasonable compensation, expenses,  disbursements and advances of the Administrative Agent and its agents and counsel, and any other  amounts due the Administrative Agent under this Agreement or any other Loan Document. Section 12.09. Collateral and Guaranty Matters; Appointment of Administrative Agent.  (a)  Without limiting the provisions of Section 12.08, the Lenders irrevocably agree as follows:  (i) the Administrative Agent is authorized, at its option and in its discretion, to  release any Lien on any property granted to or held by the Administrative Agent under any  Loan Document (A) on the date when all Obligations have been satisfied in full in cash  (other than Warrant Obligations and contingent obligations as to which no claims have  been asserted), (B) that is sold or otherwise disposed of or to be sold or otherwise disposed  of as part of or in connection with any sale or other disposition permitted under the Loan  Documents, or (C) subject to Sections 13.01 and 13.04, if approved, authorized or ratified  in writing by the Majority Lenders; and (ii) the Administrative Agent is authorized, at its option and discretion, to  release any Guarantor from its obligations hereunder if such Person ceases to be a  Subsidiary as a result of a transaction permitted under the Loan Documents. Upon request by the Administrative Agent at any time, each Lender will confirm in writing  the Administrative Agent’s authority to release or subordinate its interest in particular types or  items of Collateral, or to release any Guarantor from its obligations under its guaranty pursuant to  this Section 12.09. (b) The Administrative Agent will not be responsible for or have a duty to ascertain or  inquire into any representation or warranty regarding the existence, value or collectability of the  Collateral, the existence, priority or perfection of the Administrative Agent’s Lien thereon, or any  certificate prepared by any Obligor in connection therewith, nor will the Administrative Agent be  responsible or liable to the Lenders for any failure to monitor or maintain any portion of the  Collateral. (c) Each Lender hereby appoints the Administrative Agent as its collateral agent under  each of the Security Documents and agrees that, in so acting, the Administrative Agent will have  all of the rights, protections, exculpations, indemnities and other benefits provided to the  Administrative Agent under this Agreement, and hereby authorizes and directs the Administrative  Agent, on behalf of such Lender and all Lenders, without the necessity of any notice to or further  

 

-83- consent from any of the Lenders, from time to time to (i) take any action with respect to any  Collateral or any Security Document which may be necessary to perfect and maintain perfected the  Liens on the Collateral granted pursuant to any such Security Document or protect and preserve  the Administrative Agent’s ability to enforce the Liens or realize upon the Collateral, (ii) act as  collateral agent for each Lender for purposes of acquiring, holding, enforcing and perfecting all  Liens created by the Loan Documents and all other purposes stated therein, (iii) enter into  intercreditor or subordination agreements, as the case may be, in connection with Indebtedness  permitted pursuant to Sections 9.01(e) and 9.01(l), as applicable, (iv) enter into non-disturbance or  similar agreements in connection with licensing agreements and arrangements permitted by this  Agreement and the other Loan Documents and (v) otherwise to take or refrain from taking any and  all action that the Administrative Agent shall deem necessary or advisable in fulfilling its role as  collateral agent under any of the Security Documents. ARTICLE 13 MISCELLANEOUS Section 13.01. No Waiver.  No failure on the part of the Administrative Agent or the Lenders  to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or  privilege under any Loan Document shall operate as a waiver thereof, nor shall any single or  partial exercise of any right, power or privilege under any Loan Document preclude any other or  further exercise thereof or the exercise of any other right, power or privilege.  The remedies  provided herein are cumulative and not exclusive of any remedies provided by Law. Section 13.02. Notices.  All notices, requests, instructions, directions and other  communications provided for herein (including any modifications of, or waivers, requests or  consents under, the Loan Documents) shall be given or made in writing (including by telecopy or  electronic mail) delivered, if to Borrower, another Obligor, the Administrative Agent or the  Lenders, to its address specified on Schedule 2 hereto or its Guarantee Assumption Agreement, as  the case may be, or at such other address as shall be designated by such party in a notice to the  other parties.  Except as otherwise provided in this Agreement, all such communications shall be  deemed to have been duly given upon receipt of a legible copy thereof, in each case given or  addressed as aforesaid.  Section 13.03. Expenses, Indemnification . (a) Expenses.  Borrower agrees to pay or reimburse (i) the Administrative Agent and the  Lenders for all of their reasonable and documented out of pocket costs and expenses (including the  reasonable fees and expenses of Chapman and Cutler LLP, counsel to the Administrative Agent)  in connection with (x) the negotiation, preparation, execution and delivery of this Agreement and  the other Loan Documents and the making of the Loans (exclusive of post-closing costs); provided  that, so long as the Borrowing of the Tranche A Loan is made, such fees shall be credited against  the Expense Deposit paid by Borrower, (y) post-closing costs and (z) the negotiation or  preparation of any amendment, modification, supplement or waiver of any of the terms of this  Agreement or any of the other Loan Documents (whether or not consummated) and (ii) the  Administrative Agent and the Lenders for all of their reasonable and documented out of pocket  

 

-84- costs and expenses (including the reasonable fees and expenses of legal counsel) in connection  with any enforcement or collection proceedings resulting from the occurrence of an Event of  Default. (b) Indemnification.  Each Obligor hereby indemnifies the Administrative Agent, the  Lenders, their respective Affiliates, and their respective directors, officers, employees, attorneys,  agents and advisors (each, an “Indemnified Party”) from and against, and agrees to hold them  harmless against, any and all Claims and Losses of any kind (including reasonable fees and  disbursements of counsel), joint or several, that is incurred by or asserted or awarded against any  Indemnified Party, in each case arising out of or in connection with or relating to any investigation,  litigation or proceeding or the preparation of any defense with respect thereto arising out of or in  connection with or relating to this Agreement or any of the other Loan Documents or the  Transactions or any use made or proposed to be made with the proceeds of the Loans, whether or  not such investigation, litigation or proceeding is brought by an Obligor, any of its shareholders or  creditors, an Indemnified Party or any other Person, or an Indemnified Party is otherwise a party  thereto, and whether or not any of the conditions precedent set forth in Article 6 are satisfied or the  other Transactions contemplated by this Agreement are consummated, except to the extent such  Claim or Loss is found in a final, non-appealable judgment by a court of competent jurisdiction to  have resulted from any Indemnified Party’s gross negligence or willful misconduct.  No Obligor  shall assert any claim against any Indemnified Party, on any theory of liability, for consequential,  indirect, special or punitive damages arising out of or otherwise relating to this Agreement or any  of the other Loan Documents or any of the Transactions or the actual or proposed use of the  proceeds of the Loans.  This Section shall not apply to Taxes other than Taxes relating to a  non-Tax Claim or Loss governed by this Section 13.03(b). Section 13.04. Amendments.  Except as otherwise expressly provided in this Agreement, any  provision of this Agreement or any other Loan Document (except for the Warrant Certificate,  which may be amended, modified, waived or supplemented in accordance with the terms thereof)  may be amended, modified, waived or supplemented only by an instrument in writing signed by  Borrower, the Administrative Agent and the Majority Lenders; provided that: (a) no amendment, waiver or consent shall, unless in writing and signed by all  of the Lenders, do any of the following at any time: (i) change the percentage of (x) the Commitments or (y) the aggregate  unpaid principal amount of the Loans that, in each case, shall be required for the  Lenders or any of them to take any action hereunder (including pursuant to any  change to the definition of “Majority Lenders”); (ii) release one or more Guarantors (or otherwise limit such Guarantors’  liability with respect to the Obligations owing to the Lenders under the Guarantees)  if such release or limitation is in respect of all or substantially all of the value  represented by the Guarantees to the Lenders; (iii) release, or subordinate the Lenders’ Liens in, all or substantially all  of the Collateral in any transaction or series of related transactions (other than in  

 

-85- connection with any sale of Collateral permitted herein); or (iv) amend any provision of this Section 13.04; (b) no amendment, waiver or consent shall, unless in writing and signed by  each Lender specified below for such amendment, waiver or consent: (i) increase the Commitments of a Lender without the consent of such  Lender; (ii) reduce the principal of, or stated rate of interest on, or any  Prepayment Premium payable on, the Loans owed to a Lender or any fees or other  amounts stated to be payable hereunder or under the other Loan Documents to such  Lender without the consent of such Lender; (iii) postpone any date scheduled for any payment of principal of, or  interest on, the Loans, any date scheduled for payment or for any date fixed for any  payment of fees hereunder (excluding the due date of any mandatory prepayment  of a Loan), in each case payable to a Lender without the consent of such Lender; (iv) change the order of application of prepayment of the Loans from the  application thereof set forth in the applicable provisions of Section 4.01(b)(ii) in  any manner that adversely affects the Lenders without the consent of holders of a  majority of the Commitments or Loans outstanding or otherwise change any  provision requiring the pro rata distributions hereunder among the Lenders without  all Lenders’ consent; or (v) modify Section 2.02 without the consent of each Lender directly and  adversely affected thereby. Section 13.05. Successors and Assigns. (a) General.  The provisions of this Agreement shall be binding upon and inure to the  benefit of the parties hereto and their respective successors and assigns permitted hereby, except  that (i) no Obligor may assign or otherwise transfer any of its rights or obligations hereunder  without the prior written consent of the Administrative Agent and each Lender (and any attempted  assignment or transfer by such Obligor without such consent shall be null and void) and (ii) no  Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance  with this Section.  Nothing in this Agreement, expressed or implied, shall be construed to confer  upon any Person (other than the parties hereto, their respective successors and assigns permitted  hereby, Participants (to the extent provided in paragraph (e) of this Section) and, to the extent  expressly contemplated hereby, the Indemnified Parties of the Lenders) any legal or equitable  right, remedy or claim under or by reason of this Agreement. (b) Amendments to Loan Documents; Majority Lender Vote.  Each of the Lenders and the  Obligors agrees to enter into such amendments to the Loan Documents, and such additional  

 

-86- Security Documents and other instruments and agreements, in each case in form and substance  reasonably acceptable to the Lenders and the Obligors, as shall reasonably be necessary to  implement and give effect to any assignment made by any Lender (or any direct or indirect  assignee thereof) from time to time under this Section 13.05. (c) Assignments by Lenders.  (i) Subject to the conditions set forth in paragraph (c)(ii)  below, any Lender may assign to one or more Persons (other than an Ineligible Assignee) all or a  portion of its rights and obligations under the Loan Documents (including all or a portion of its  Commitment and the Loans at the time owing to it) with the prior written consent (such consent  not to be unreasonably withheld) of the Administrative Agent, provided that no consent of the  Administrative Agent shall be required for an assignment of any Commitment or of all or any  portion of a Loan to a Lender, an Affiliate of a Lender or an Approved Fund. (ii) Assignments shall be subject to the following additional conditions: (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or  an assignment of the entire remaining amount of the assigning Lender’s Commitment or  Loans, the amount of the Commitment or Loans of the assigning Lender subject to each  such assignment (determined as of the date the Assignment Agreement with respect to such  assignment is delivered to the Administrative Agent) shall not be less than $500,000,  unless the Administrative Agent otherwise consents; (B) each partial assignment shall be made as an assignment of a proportionate  part of all the assigning Lender’s rights and obligations under this Agreement and the other  Loan Documents; and (C) the parties to each assignment shall execute and deliver to the  Administrative Agent (with a copy to the Borrower, provided that the failure to give such  copy to the Borrower shall not affect the validity of such Assignment Agreement) an  Assignment Agreement in form and substance reasonably satisfactory to Administrative  Agent. (iii) Subject to acceptance and recording thereof pursuant to paragraph (d) of this Section,  from and after the effective date specified in each Assignment Agreement, the assignee thereunder  shall be a party hereto and, to the extent of the interest assigned by such Assignment Agreement,  have the rights and obligations of a Lender under the Loan Documents, and the assigning Lender  thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released  from its obligations under the Loan Documents (and, in the case of an Assignment Agreement  covering all of the assigning Lender’s rights and obligations under the Loan Documents, such  Lender shall cease to be a party hereto).  Any assignment or transfer by a Lender of rights or  obligations under the Loan Documents that does not comply with this Section 13.05 shall be  treated for purposes of the Loan Documents as a sale by such Lender of a participation in such  rights and obligations in accordance with paragraph (e) of this Section. (d) Register.  The Administrative Agent, acting for this purpose as a non-fiduciary agent  of Borrower, shall maintain at one of its offices a copy of each Assignment Agreement delivered to  

 

-87- it and a register for the recordation of the names and addresses of the Lenders, and the  Commitment of, and principal amount (and stated interest) of the Loans owing to, each Lender  pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be  conclusive absent manifest error, and Borrower, the Administrative Agent, and the Lenders shall  treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender  hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register  shall be available for inspection by Borrower and any Lender, at any reasonable time and from  time to time upon reasonable prior notice.  No assignment shall be effective for purposes of this  Agreement unless (i) it has been recorded in the Register as provided in this paragraph and (ii) any  written consent to such assignment required by paragraph (b) of this Section has been obtained. (e) Participations.  Any Lender may at any time, without the consent of, or notice to,  Borrower, sell participations to any Person (a “Participant”), other than an Ineligible Assignee, in  all or a portion of such Lender’s rights and obligations under the Loan Documents (including all or  a portion of its Commitment and the Loans owing to it); provided that (i) such Lender’s obligations  under the Loan Documents shall remain unchanged, (ii) such Lender shall remain solely  responsible to the other parties hereto for the performance of such obligations and (iii) Borrower  shall continue to deal solely and directly with such Lender in connection therewith. (f) Any agreement or instrument pursuant to which a Lender sells such a participation  shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve  any amendment, modification or waiver of any provision of this Agreement; provided that such  agreement or instrument may provide that such Lender will not, without the consent of the  Participant, agree to any amendment, modification or waiver that would (i) increase or extend the  term of such Lender’s Commitment, (ii) extend the date fixed for the payment of principal of or  interest on the Loans or any portion of any fee hereunder payable to the Participant, (iii) reduce the  amount of any such payment of principal, or (iv) reduce the rate at which interest is payable  thereon to a level below the rate at which the Participant is entitled to receive such interest.   Borrower agrees that each Participant shall be entitled to the benefits of Section 5.03 (subject to  the requirements and limitations therein, including the requirements under Section 5.03(f) (it being  understood that the documentation required under Section 5.03(f) shall be delivered to Borrower  and the participating Lender)) to the same extent as if it were a Lender and had acquired its interest  by assignment pursuant to Section 13.05(a), provided that such Participant (A) agrees to be subject  to the provisions of Section 5.03(h) as if it were an assignee under Section 13.05(a); and (B) shall  not be entitled to receive any greater payment under Section 5.03, with respect to any participation,  than its participating Lender would have been entitled to receive, unless the sale of the  participation to such Participant is made with Borrower’s prior written consent.  To the extent  permitted by Law, each Participant also shall be entitled to the benefits of Section 4.04(a) as  though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose  as a non-fiduciary agent of Borrower, maintain a register on which it enters the name and address  of each Participant and the principal amounts (and stated interest) of each Participant’s interest in  the Loans or other obligations under the Loan Documents (the “Participant Register”); provided  that no Lender shall have any obligation to disclose all or any portion of the Participant Register  (including the identity of any Participant or any information relating to a Participant’s interest in  any commitments, loans, letters of credit or its other obligations under any Loan Document) to any  Person except to the extent that such disclosure is necessary to establish that such commitment,  

 

-88- loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the  United States Treasury Regulations.  The entries in the Participant Register shall be conclusive  absent manifest error, and such Lender shall treat each Person whose name is recorded in the  Participant Register as the owner of such participation for all purposes of this Agreement  notwithstanding any notice to the contrary. (g) Certain Pledges.  Subject to Section 13.05(d), the Lenders may at any time pledge or  assign a security interest in all or any portion of its rights under this Agreement and any other Loan  Document to secure obligations of the Lenders, including any pledge or assignment to secure  obligations to a Federal Reserve Bank or another central bank; provided that no such pledge or  assignment shall release the Lenders from any of their obligations hereunder or substitute any such  pledgee or assignee for the Lenders as a party hereto. Section 13.06. Survival.  The obligations of Borrower under Sections 5.01, 5.02, 5.03,  13.03, 13.05, 13.09, 13.10, 13.11, 13.12, 13.13, 13.14 and Article 11 (solely to the extent  guaranteeing any of the obligations under the foregoing Sections) shall survive the repayment of  the Obligations and the termination of the Commitments and, in the case of any Lender’s  assignment of any interest in the Commitments or the Loans hereunder, shall survive, in the case of  any event or circumstance that occurred prior to the effective date of such assignment, the making  of such assignment, notwithstanding that such Lenders may cease to be a “Lender” hereunder.  In  addition, each representation and warranty made, or deemed to be made by a notice of the Loans,  herein or pursuant hereto shall survive the making of such representation and warranty. Section 13.07. Captions.  The table of contents and captions and section headings appearing  herein are included solely for convenience of reference and are not intended to affect the  interpretation of any provision of this Agreement. Section 13.08. Counterparts.  This Agreement may be executed in any number of  counterparts, all of which taken together shall constitute one and the same instrument and any of  the parties hereto may execute this Agreement by signing any such counterpart. Delivery of an  executed signature page of this Agreement by facsimile transmission, electronic transmission (in  PDF format) or DocuSign shall be effective as delivery of a manually executed counterpart hereof.   The words “execution,” “signed,” “signature,” and words of like import in any Assignment  Agreement shall be deemed to include electronic signatures or the keeping of records in electronic  form, each of which shall be of the same legal effect, validity or enforceability as a manually  executed signature or the use of a paper-based recordkeeping system, as the case may be, to the  extent and as provided for in any applicable Law, including the Federal Electronic Signatures in  Global and National Commerce Act, the New York State Electronic Signatures and Records Act,  or any other similar state laws based on the Uniform Electronic Transactions Act. Section 13.09. GOVERNING LAW.  THIS AGREEMENT AND THE OTHER LOAN  DOCUMENTS, THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND  THEREUNDER, AND ALL CLAIMS, DISPUTES AND MATTERS ARISING HEREUNDER  OR THEREUNDER OR RELATED HERETO OR THERETO, SHALL BE GOVERNED BY,  AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK  APPLICABLE TO CONTRACTS EXECUTED IN AND TO BE PERFORMED ENTIRELY  

 

-89- WITHIN THAT STATE, WITHOUT REFERENCE TO CONFLICTS OF LAWS PROVISIONS  (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). Section 13.10. JURISDICTION, SERVICE OF PROCESS AND VENUE. (a) SUBMISSION TO JURISDICTION.  EACH OBLIGOR AGREES THAT ANY  SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY  OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY OR ANY JUDGMENT ENTERED  BY ANY COURT IN RESPECT THEREOF SHALL BE BROUGHT IN THE SUPREME  COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR IN THE  UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK  AND IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF EACH  SUCH COURT FOR THE PURPOSE OF ANY SUCH SUIT, ACTION, PROCEEDING OR  JUDGMENT. (b) Alternative Process.  Nothing herein shall in any way be deemed to limit the ability of  the Lenders to serve any such process or summonses in any other manner permitted by applicable  Law. (c) WAIVER OF VENUE, ETC.  EACH OBLIGOR IRREVOCABLY WAIVES TO  THE FULLEST EXTENT PERMITTED BY LAW ANY OBJECTION THAT IT MAY NOW  OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUIT, ACTION OR  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER  LOAN DOCUMENT AND HEREBY FURTHER IRREVOCABLY WAIVES TO THE  FULLEST EXTENT PERMITTED BY LAW ANY CLAIM THAT ANY SUCH SUIT, ACTION  OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN  INCONVENIENT FORUM.  A FINAL JUDGMENT (IN RESPECT OF WHICH TIME FOR  ALL APPEALS HAS ELAPSED) IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL  BE CONCLUSIVE AND MAY BE ENFORCED IN ANY COURT TO THE JURISDICTION  OF WHICH SUCH OBLIGOR IS OR MAY BE SUBJECT, BY SUIT UPON JUDGMENT. Section 13.11. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER  LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR  THEREBY. Section 13.12. WAIVER OF IMMUNITY.  TO THE EXTENT THAT ANY OBLIGOR  MAY BE OR BECOME ENTITLED TO CLAIM FOR ITSELF OR ITS PROPERTY OR  REVENUES ANY IMMUNITY ON THE GROUND OF SOVEREIGNTY OR THE LIKE  FROM SUIT, COURT JURISDICTION, ATTACHMENT PRIOR TO JUDGMENT,  ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT OR EXECUTION OF A  JUDGMENT, AND TO THE EXTENT THAT IN ANY SUCH JURISDICTION THERE MAY  BE ATTRIBUTED SUCH AN IMMUNITY (WHETHER OR NOT CLAIMED), SUCH  OBLIGOR HEREBY IRREVOCABLY AGREES NOT TO CLAIM AND HEREBY  

 

-90- IRREVOCABLY WAIVES SUCH IMMUNITY WITH RESPECT TO ITS OBLIGATIONS  UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. Section 13.13. Entire Agreement.  This Agreement and the other Loan Documents constitute  the entire agreement among the parties with respect to the subject matter hereof and thereof and  supersede any and all previous agreements and understandings, oral or written, relating to the  subject matter hereof.  Each Obligor acknowledges, represents and warrants that in deciding to  enter into this Agreement and the other Loan Documents or in taking or not taking any action  hereunder or thereunder, it has not relied, and will not rely, on any statement, representation,  warranty, covenant, agreement or understanding, whether written or oral, of or with the Lenders  other than those expressly set forth in this Agreement and the other Loan Documents. Section 13.14. Severability.  If any provision hereof is found by a court to be invalid or  unenforceable, to the fullest extent permitted by applicable Law the parties agree that such  invalidity or unenforceability shall not impair the validity or enforceability of any other provision  hereof. Section 13.15. No Fiduciary Relationship.  The Administrative Agent, each Lender and  their Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have  economic interests that conflict with those of the Obligors, their stockholders and/or their  Affiliates (collectively, solely for purposes of this paragraph, the “Obligors”). The Obligors  acknowledge that the Lenders have no fiduciary relationship with, or fiduciary duty to, any  Obligor arising out of or in connection with this Agreement or the other Loan Documents, and the  relationship between each Lender and each Obligor are solely that of creditors and debtors.  This  Agreement and the other Loan Documents do not create a joint venture among the parties. Section 13.16. USA Patriot Act.  The Administrative Agent and the Lenders hereby notify  the Obligors that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.  107-56 (signed into law October 26, 2001)) (the “Act”) and 31 C.F.R. § 1010.230 (the “Beneficial  Ownership Regulation”), they are required to obtain, verify and record information that identifies  the Obligors, which information includes the name and address of each Obligor and other  information that will allow the Administrative Agent and such Lender to identify each Obligor in  accordance with the Act and Beneficial Ownership Regulation, including a beneficial ownership  certification in form and substance acceptable to the Administrative Agent. Section 13.17. Treatment of Certain Information; Confidentiality.  The Lenders agree to  maintain the confidentiality of the Information (as defined below), except that Information may be  disclosed to (a) its Affiliates and to its and its Affiliates’ respective partners, directors, officers,  employees, agents, trustees, advisors and representatives (collectively, “Representatives”) (it  being understood that the Persons to whom such disclosure is made will be informed of the  confidential nature of such information and instructed to keep such Information confidential), (b)  to the extent requested by any regulatory authority purporting to have jurisdiction over it  (including any self-regulatory authority, such as FINRA or the National Association of Insurance  Commissioners) or any exchange, (c) to the extent required by the applicable Laws or by any  subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise  of any remedies hereunder or under any other Loan Document or any action or proceeding relating  

 

-91- to this Agreement or any other Loan Document or the enforcement of rights hereunder or  thereunder, (f) subject to an agreement containing provisions substantially the same as those in this  Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any  of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or  its advisors) to any swap or derivative transaction relating to Borrower or any Guarantor and its  obligation, (g) with the consent of Borrower or (h) to the extent such Information (x) becomes  publicly available other than as a result of a breach of this Section or (y) becomes available to the  Lender, or any of its respective Representatives on a nonconfidential basis from a source other  than Borrower or any other Obligor.  For purposes of this Section, “Information” means all  information received from an Obligor relating such Obligor or its Subsidiary or any of their  respective businesses, except that the term “Information” shall not include, and the Lenders shall  not be subject to any confidentiality obligation with respect to any information that (i) is or  becomes available to the Lender or any of its Representatives on a nonconfidential basis prior to  disclosure by an Obligor or its Subsidiary, (ii) becomes available to a Lender or any of its  Representatives after disclosure by Borrower or any other Obligor from a source that, to the  knowledge of such Lender, is not subject to a confidentiality obligation to Borrower or such other  Obligor (iii) is or becomes publicly available other than as a result of a breach by such Lender, or  (iv) is developed by a Lender or any of its Representatives.  Any Person required to maintain the  confidentiality of Information as provided in this Section shall be considered to have complied  with its obligation to do so if such Person has exercised the same degree of care to maintain the  confidentiality of such Information as such Person would accord to its own confidential  information. In the case of any Lender that has elected to receive material non-public information  pursuant to the last paragraph of Section 8.02, such Lender acknowledges that (a) the Information  may include material non-public information concerning an Obligor or its Subsidiary, as the case  may be, (b) it has developed compliance procedures regarding the use of material non-public  information and (c) it will handle such material non-public information in accordance with  applicable Law, including United States federal and state securities Laws. Section 13.18. Releases of Guarantees and Liens.  (a) Notwithstanding anything to the  contrary contained herein or in any other Loan Document, each Lender agrees, and the  Administrative Agent is hereby irrevocably authorized by each Lender and given a limited power  of attorney by each Lender to perform the actions described hereafter in this Section 13.18  (without requirement of notice to or consent of any Lender except as expressly required by Section  13.04) to take any action reasonably requested by Borrower having the effect of releasing any  Collateral or Obligations (i) to the extent necessary to permit consummation of any transaction not  prohibited by any Loan Document or that has been consented to by the Lenders or (ii) under the  circumstances described in paragraph (b) below. (b) At such time as the Loans and the other Obligations (other than the inchoate  indemnity obligations) under the Loan Documents shall have been paid in full in cash and the  Commitments have been terminated, the Collateral shall be released from the Liens created by the  Security Documents, and the Security Documents and all obligations (other than those expressly  stated to survive such termination) of the Administrative Agent and each Obligor under the  Security Documents shall terminate, all without delivery of any instrument or performance of any  

 

-92- act by any Person. Section 13.19. Acknowledgement and Consent to Bail-In of Affected Financial Institutions.   Notwithstanding anything to the contrary in any Loan Document or in any other agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any  liability of any Affected Financial Institution arising under any Loan Document, to the extent such  liability is unsecured, may be subject to the write-down and conversion powers of the applicable  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by the  applicable Resolution Authority to any such liabilities arising hereunder which may be  payable to it by any party hereto that is an Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if  applicable: (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or a portion of, such liability into shares or other  instruments of ownership in such Affected Financial Institution, its parent  undertaking, or a bridge institution that may be issued to it or otherwise conferred  on it, and that such shares or other instruments of ownership will be accepted by it  in lieu of any rights with respect to any such liability under this Agreement or any  other Loan Document; or (iii) the variation of the terms of such liability in connection with the  exercise of the write-down and conversion powers of the Applicable Resolution  Authority. [Remainder of the Page Intentionally Left Blank; Signature Pages Follow] 

 

[Signature Page to Credit Agreement and Guaranty] IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed  and delivered as of the day and year first above written. BORROWER: ISOPLEXIS CORPORATION By:____________________________________ Name: Title:   

 

[Signature Page to Credit Agreement and Guaranty] PERCEPTIVE CREDIT HOLDINGS III, LP,  as Administrative Agent and a Lender By: Perceptive Credit Opportunities GP, LLC,  its general partner By:_________________________________ Name: Sandeep Dixit Title: Chief Credit Officer By:_________________________________ Name: Sam Chawla Title: Portfolio Manager 

 

  ANNEX B    Conformed Credit Agreement    (Third Amendment)         

 

EXECUTION VERSION    4853-2066-2739   7027014        CREDIT AGREEMENT AND GUARANTY1      DATED AS OF      DECEMBER 30, 2020      AMONG      ISOPLEXIS CORPORATION,  AS BORROWER,      THE GUARANTORS FROM TIME TO TIME PARTY HERETO,  AS GUARANTORS,      THE LENDERS FROM TIME TO TIME PARTY HERETO,  AS LENDERS,      AND      PERCEPTIVE CREDIT HOLDINGS III, LP,  AS ADMINISTRATIVE AGENT AND AS A LENDER      $50,000,000            1 Conformed to reflect changes from the First Amendment to Credit Agreement and Guaranty, dated as of May 27,  2021, the Second Amendment to Credit Agreement and Guaranty, dated as of October 29, 2021 and the Third  Amendment to Credit Agreement and Guaranty, dated as of March 30, 2022.   

 

  -i-  TABLE OF CONTENTS  SECTION HEADING PAGE  ARTICLE I DEFINITIONS ................................................................................................. 1  Section 1.01. Certain Defined Terms .......................................................................... 1  Section 1.02. Accounting Terms and Principles ....................................................... 25  Section 1.03. Interpretation ....................................................................................... 26  Section 1.04. Divisions .............................................................................................. 27  ARTICLE 2 THE COMMITMENTS ................................................................................... 27  Section 2.01. Loans ................................................................................................... 27  Section 2.02. Proportionate Shares ............................................................................ 29  Section 2.03. Fees ...................................................................................................... 29  Section 2.04. Notes .................................................................................................... 29  Section 2.05. Use of Proceeds ................................................................................... 29  ARTICLE 3 PAYMENTS OF PRINCIPAL AND INTEREST ................................................... 29  Section 3.01. Repayment ........................................................................................... 29  Section 3.02. Interest ................................................................................................. 30  Section 3.03. Prepayments ........................................................................................ 31  ARTICLE 4 PAYMENTS .................................................................................................. 34  Section 4.01. Payments .............................................................................................. 34  Section 4.02. Computations ....................................................................................... 35  Section 4.03. Notices ................................................................................................. 35  Section 4.04. Set-Off ................................................................................................. 35  ARTICLE 5 YIELD PROTECTION .................................................................................... 35  Section 5.01. Additional Costs .................................................................................. 35  Section 5.02. Illegality ............................................................................................... 36  Section 5.03. Taxes .................................................................................................... 37  Section 5.04. Delay in Requests ................................................................................ 41  ARTICLE 6 CONDITIONS PRECEDENT ............................................................................ 41  Section 6.01. Conditions to Tranche A Loan; Closing Date ..................................... 41  Section 6.02. Conditions to Tranche B Loan; Tranche B Loan Borrowing Date ..... 44  Section 6.03. Conditions to Tranche C Loan; Tranche C Loan Borrowing Date ..... 44  Section 6.04. Conditions to Tranche D Loan; Tranche D Loan Borrowing Date ..... 45  ARTICLE 7 REPRESENTATIONS AND WARRANTIES ....................................................... 46  Section 7.01. Power and Authority ............................................................................ 46  Section 7.02. Authorization; Enforceability .............................................................. 46  

 

  -ii-  Section 7.03. Governmental and Other Approvals; No Conflicts ............................. 47  Section 7.04. Financial Statements; Projections; Material Adverse Change ............ 47  Section 7.05. Properties ............................................................................................. 48  Section 7.06. No Actions or Proceedings .................................................................. 49  Section 7.07. Compliance with Laws and Agreements ............................................. 50  Section 7.08. Taxes .................................................................................................... 50  Section 7.09. Full Disclosure ..................................................................................... 50  Section 7.10. Regulation ............................................................................................ 50  Section 7.11. Solvency .............................................................................................. 50  Section 7.12. Subsidiaries .......................................................................................... 50  Section 7.13. Indebtedness and Liens ........................................................................ 50  Section 7.14. Material Agreements ........................................................................... 51  Section 7.15. Restrictive Agreements ....................................................................... 51  Section 7.16. Real Property ....................................................................................... 51  Section 7.17. Pension and Other Plans ...................................................................... 51  Section 7.18. Collateral; Security Interest ................................................................. 52  Section 7.19. Capitalization ....................................................................................... 52  Section 7.20. Insurance .............................................................................................. 52  Section 7.21. Certain Fees ......................................................................................... 52  Section 7.22. Sanctions Laws .................................................................................... 52  Section 7.23. Anti-Corruption Laws ......................................................................... 52  Section 7.24. Anti-Terrorism Laws ........................................................................... 52  ARTICLE 8 AFFIRMATIVE COVENANTS AND FINANCIAL COVENANTS .......................... 53  Section 8.01. Financial Statements and Other Information ....................................... 53  Section 8.02. Notices of Material Events .................................................................. 55  Section 8.03. Existence; Maintenance of Properties, Etc .......................................... 58  Section 8.04. Payment of Obligations ....................................................................... 58  Section 8.05. Insurance .............................................................................................. 58  Section 8.06. Books and Records; Inspection Rights ................................................ 59  Section 8.07. Compliance with Laws ........................................................................ 59  Section 8.08. Licenses ............................................................................................... 60  Section 8.09. Action under Environmental Laws ...................................................... 60  Section 8.10. Use of Proceeds ................................................................................... 60  Section 8.11. Certain Obligations Respecting Subsidiaries; Further Assurances;  Intellectual Property ............................................................................ 60  Section 8.12. Termination of Non-Permitted Liens .................................................. 61  Section 8.13. Non-Consolidation .............................................................................. 61  Section 8.14. Anti-Terrorism and Anti-Corruption Laws ......................................... 62  Section 8.15. Financial Covenants ............................................................................ 62  Section 8.16. Maintenance of Material Agreements, Intellectual Property, Etc. ...... 63  Section 8.17. Cash Management ............................................................................... 63  Section 8.18. Board Observer Rights ........................................................................ 63  Section 8.19. Post-Closing Obligations ..................................................................... 64  

 

  -iii-  ARTICLE 9 NEGATIVE COVENANTS .............................................................................. 64  Section 9.01. Indebtedness ........................................................................................ 64  Section 9.02. Liens .................................................................................................... 65  Section 9.03. Fundamental Changes and Acquisitions ............................................. 67  Section 9.04. Lines of Business ................................................................................. 67  Section 9.05. Investments .......................................................................................... 67  Section 9.06. Restricted Payments ............................................................................ 69  Section 9.07. Payments of Indebtedness ................................................................... 69  Section 9.08. Change in Fiscal Year ......................................................................... 69  Section 9.09. Sales of Assets, Etc .............................................................................. 69  Section 9.10. Transactions with Affiliates ................................................................ 70  Section 9.11. Restrictive Agreements ....................................................................... 71  Section 9.12. Organizational Documents, Material Agreements .............................. 71  Section 9.13. Operating Leases ................................................................................. 71  Section 9.14. Sales and Leasebacks .......................................................................... 72  Section 9.15. Hazardous Material ............................................................................. 72  Section 9.16. Accounting Changes ............................................................................ 72  Section 9.17. Compliance with ERISA ..................................................................... 72  Section 9.18. Deposit Accounts ................................................................................. 72  Section 9.19. Outbound Licenses .............................................................................. 72  Section 9.20. Inbound Licenses ................................................................................. 72  ARTICLE 10 EVENTS OF DEFAULT .................................................................................. 73  Section 10.01. Events of Default ................................................................................. 73  Section 10.02. Remedies ............................................................................................. 75  Section 10.03. Prepayment Premium and Redemption Price ...................................... 75  ARTICLE 11 GUARANTEE ............................................................................................... 76  Section 11.01. The Guarantee ..................................................................................... 76  Section 11.02. Obligations Unconditional ................................................................... 76  Section 11.03. Reinstatement ...................................................................................... 77  Section 11.04. Subrogation .......................................................................................... 77  Section 11.05. Remedies ............................................................................................. 77  Section 11.06. Instrument for the Payment of Money ................................................. 78  Section 11.07. Continuing Guarantee .......................................................................... 78  Section 11.08. Rights of Contribution ......................................................................... 78  Section 11.09. General Limitation on Guarantee Obligations .................................... 78  ARTICLE 12 ADMINISTRATIVE AGENT ........................................................................... 79  Section 12.01. Appointment ........................................................................................ 79  Section 12.02. Rights as a Lender ............................................................................... 79  Section 12.03. Exculpatory Provisions ........................................................................ 79  Section 12.04. Reliance by Administrative Agent ...................................................... 80  Section 12.05. Delegation of Duties ............................................................................ 81  

 

  -iv-  Section 12.06. Resignation of Agent ........................................................................... 81  Section 12.07. Non-Reliance on Administrative Agent and Other Lenders ............... 82  Section 12.08. Administrative Agent May File Proofs of Claim ................................ 82  Section 12.09. Collateral and Guaranty Matters; Appointment of Administrative  Agent ................................................................................................... 83  ARTICLE 13 MISCELLANEOUS ........................................................................................ 84  Section 13.01. No Waiver ........................................................................................... 84  Section 13.02. Notices ................................................................................................. 84  Section 13.03. Expenses, Indemnification .................................................................. 84  Section 13.04. Amendments ........................................................................................ 85  Section 13.05. Successors and Assigns ....................................................................... 86  Section 13.06. Survival ................................................................................................ 89  Section 13.07. Captions ............................................................................................... 89  Section 13.08. Counterparts ........................................................................................ 89  Section 13.09. GOVERNING LAW ........................................................................... 89  Section 13.10. JURISDICTION, SERVICE OF PROCESS AND VENUE ............... 89  Section 13.11. WAIVER OF JURY TRIAL ............................................................... 90  Section 13.12. WAIVER OF IMMUNITY ................................................................. 90  Section 13.13. Entire Agreement ................................................................................. 90  Section 13.14. Severability .......................................................................................... 91  Section 13.15. No Fiduciary Relationship ................................................................... 91  Section 13.16. USA Patriot Act ................................................................................... 91  Section 13.17. Treatment of Certain Information; Confidentiality ............................. 91  Section 13.18. Releases of Guarantees and Liens ....................................................... 92  Section 13.19. Acknowledgement and Consent to Bail-In of Affected Financial  Institutions ........................................................................................... 92    SCHEDULES:  SCHEDULE 1 — Commitments and Warrant Shares  SCHEDULE 2 — Notice Addresses  SCHEDULE 7.03 — Certain Consents  SCHEDULE 7.05(b) — Obligor Intellectual Property  SCHEDULE 7.12 — Subsidiaries  SCHEDULE 7.13A — Existing Indebtedness  SCHEDULE 7.13B — Existing Liens  SCHEDULE 7.14 — Material Agreements  SCHEDULE 7.15  — Restrictive Agreements  SCHEDULE 7.16 — Real Property  SCHEDULE 7.17 — Pension Matters  SCHEDULE 7.19 — Capitalization  SCHEDULE 7.21 — Broker’s Fee  SCHEDULE 8.19 — Post-Closing Obligations  SCHEDULE 9.05 — Existing Investments  SCHEDULE 9.10 — Transactions with Affiliates    

 

  -v-  EXHIBITS:  EXHIBIT A — Form of Guarantee Assumption Agreement  EXHIBIT B — Form of Borrowing Notice  EXHIBIT C — Form of Note  EXHIBIT D — Form of U.S. Tax Compliance Certificate  EXHIBIT E — Form of Compliance Certificate  EXHIBIT F — Form of Assignment Agreement  EXHIBIT G — Form of Security Agreement  EXHIBIT H-1 — Form of Patent & Trademark Security Agreement  EXHIBIT H-2 — Form of Copyright Security Agreement  EXHIBIT I — Form of Collateral Questionnaire    

 

    CREDIT AGREEMENT AND GUARANTY, dated as of December 30, 2020 (this “Agreement”),  among ISOPLEXIS CORPORATION, a Delaware corporation (“Borrower”), certain Guarantors from  time to time parties hereto, the lenders from time to time party hereto (each, as a “Lender” and  collectively, the “Lenders”), and PERCEPTIVE CREDIT HOLDINGS III, LP, a Delaware limited  partnership (“Perceptive”), as administrative agent for the Lenders (in such capacity, together with  its successors and assigns, the “Administrative Agent”).  WITNESSETH:  Borrower has requested the Lenders to make term loans to Borrower, and the Lenders are  prepared to make such loans on and subject to the terms and conditions hereof.  Accordingly, the  parties agree as follows:  ARTICLE I    DEFINITIONS   Section 1.01. Certain Defined Terms.  As used herein, the following terms have the  following respective meanings:  “Accounting Change” has the meaning set forth in Section 1.02.  “Accounting Change Notice” has the meaning set forth in Section 1.02.  “Acquisition” means any transaction, or any series of related transactions, by which any  Person directly or indirectly, by means of a take-over bid, tender offer, amalgamation, merger,  purchase of assets, or similar transaction having the same effect as any of the foregoing,  (a) acquires all or substantially all of the assets of any Person engaged in any business, (b) acquires  all or substantially all of a business line or unit or division of any other Person, (c) acquires control  of securities of a Person engaged in a business representing more than 50% of the ordinary voting  power for the election of directors or other governing body if the business affairs of such Person  are managed by a Board or other governing body, or (d) acquires control of more than 50% of the  ownership interest in any Person engaged in any business that is not managed by a Board or other  governing body.  “Act” has the meaning set forth in Section 13.16.  “Administrative Agent” has the meaning set forth in the introduction hereto.  “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution.  

 

  -2-  “Affiliate” means, with respect to a specified Person, another Person that directly, or  indirectly through one or more intermediaries, Controls or is Controlled by or is under common  Control with the Person specified.  “Agreement” has the meaning set forth in the introduction hereto.  “Amended and Restated Warrant Certificate” means the amended and restated warrant,  delivered to the Administrative Agent on the Third Amendment Effective Date that, among other  things, grants the holder thereof the right to purchase the number of shares of common stock of  Borrower as indicated on the Warrant Shares table on Schedule 1, as the Amended and Restated  Warrant Certificate may be further amended, replaced or otherwise modified pursuant to the terms  thereof.  “Anti-Corruption Laws” means all laws, rules and regulations of any jurisdiction  applicable to the Obligors and their Affiliates concerning or relating to bribery or corruption,  including, without limitation, the Foreign Corrupt Practices Act of 1977, as amended.  “Anti-Terrorism Laws” means any laws or regulations relating to terrorism or money  laundering, including, without limitation the Bank Secrecy Act (31 U.S.C. §§ 5311 et seq.), the  Money Laundering Control Act of 1986 (18 U.S.C. §§ 1956 et seq.), the USA Patriot Act and any  similar law enacted in the United States after the date of this Agreement.  “Applicable Margin” means 9.50% per annum, as such percentage may be increased by  Section 3.02(d).  “Approved Fund” means any Person (other than a natural person) that is engaged in  making, purchasing, holding or investing in bank loans and similar extensions of credit in the  ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate  of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.  “Asset Sale” has the meaning set forth in Section 9.09.  “Assignment Agreement” means an assignment and assumption entered into by a Lender  and an assignee of such Lender in substantially the form of Exhibit F.  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.  “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European  Union, the implementing law, regulation, rule or requirement for such EEA Member Country from  time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the  United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time)  and any other law, regulation or rule applicable in the United Kingdom relating to the resolution  of unsound or failing banks, investment firms or other financial institutions or their affiliates (other  than through liquidation, administration or other insolvency proceedings).  

 

  -3-  “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy.”  “Beneficial Ownership Regulation” has the meaning set forth in Section 13.16.  “Benefit Plan” means any employee benefit plan as defined in Section 3(3) of ERISA to  which any Obligor or Subsidiary thereof incurs or otherwise has any obligation or liability,  contingent or otherwise.  “Board” means, with respect to any Person, the board of directors (or equivalent governing  body) of such Person or any Committee thereof.  “Borrower” has the meaning set forth in the introduction hereto.  “Borrowing” means a borrowing consisting of a Tranche A Loan made by the Lenders on  the Closing Date, a Tranche B Loan made by the Lenders on the Tranche B Loan Borrowing Date,  a Tranche C Loan made by the Lenders on the Tranche C Loan Borrowing Date or a Tranche D  Loan made by the Lenders on the Tranche D Loan Borrowing Date, as applicable.  “Borrowing Notice” means a notice substantially in the form attached hereto as Exhibit B.  “Business Day” means a day (other than a Saturday or Sunday) on which commercial  banks are not authorized or required to close in New York City and, when determined in  connection with notices and determinations in respect of LIBOR or any Loan or any funding,  Interest Period or any payments in respect of the Loans, that is also a day on which dealings in  dollar deposits are carried on in the London interbank market.  “Capital Lease Obligations” means, as to any Person, the obligations of such Person to  pay rent or other amounts under a lease of (or other agreement conveying the right to use) real  and/or personal Property which obligations are required to be classified and accounted for as a  capital lease on a balance sheet of such Person under GAAP and, for purposes of this Agreement,  the amount of such obligations shall be the capitalized amount thereof, determined substantially  in accordance with GAAP; provided that any obligations that were not required to be included on  the balance sheet of such Person as capital lease obligations when incurred (whether now  outstanding or at any time incurred or entered into) but are subsequently re-characterized as capital  lease obligations due to a change in accounting rules under GAAP after the Closing Date shall for  all purposes hereunder not be treated as a Capital Lease Obligation.  “Casualty Event” means any actual or constructive loss, condemnation, destruction,  confiscation, requisition, seizure or forfeiture of all or any material portion of the assets of  Borrower or any other Obligor, excluding only those assets, individually or in the aggregate,  subject to any such event during any calendar year with a fair market value as of the date thereof  equal to or less than $1,000,000.  “Change of Control” means (a) any “person” or “group” (within the meaning of Rule 13d- 5 of the Exchange Act as in effect on the date hereof) shall own, directly or indirectly, beneficially  or of record, shares representing 40% or more of the aggregate ordinary voting power represented  

 

  -4-  by the issued and outstanding Equity Interests of Borrower, (b) Borrower ceases to directly own,  beneficially and of record, 100% of the issued and outstanding Equity Interests of each of its  Subsidiaries, or (c) during any period of twelve (12) consecutive calendar months, the occupation  of a majority of the seats (other than vacant seats) on the Board of Borrower by Persons who were  neither (i) nominated by the Board of Borrower, nor (ii) appointed by directors on the Board of  Borrower on the Closing Date.  “Chinese Subsidiary” means IsoPlexis Trading Co., Ltd.   “Claims” includes claims, litigation, demands, complaints, grievances, actions,  applications, suits, causes of action, orders, charges, indictments, prosecutions, information  (brought by a public prosecutor without grand jury indictment) or other similar processes,  assessments or reassessments.  “CLIA” means the Clinical Laboratory Improvement Amendments (CLIA) of 1988, as  amended from time to time, and the rules, regulations, guidelines, guidance documents and  compliance policy guides issued or promulgated thereunder.  “Closing Date” means the Business Day on which all of the conditions set forth in  Section 6.01 have been satisfied or waived by the Lenders and the Tranche A Loan is made.  “Closing Fee” has the meaning set forth in Section 2.03.  “Code” means the Internal Revenue Code of 1986, as amended from time to time.  “Collateral” means any Property in which a Lien is purported to be granted under any of  the Security Documents (or all such Property, as the context may require).  “Collateral Questionnaire” means that certain Collateral Questionnaire and certification  by a Responsible Officer of Borrower substantially in the form of attached hereto as Exhibit I and  otherwise in form and substance satisfactory to the Administrative Agent.  “Commitment” means, with respect to each Lender, such Lender’s (a) Tranche A Loan  Commitment, (b) Tranche B Loan Commitment, (c) Tranche C Loan Commitment and (d) Tranche  D Loan Commitment, and “Commitments” means all such commitments of all Lenders.  The  aggregate Commitments of all Lenders as of the Third Amendment Effective Date after giving  effect to the Tranche A Loan made on the Closing Date, the Tranche B Term Loan made on the  Tranche B Borrowing Date and the Tranche C Term Loan made on the Tranche C Borrowing Date  is $7,500,000.  “Committee” means, with respect to any board of directors (or other governing body), any  committee thereof duly authorized to act on behalf of such board of directors (or other governing  body).  “Commodity Account” has the meaning set forth in the Security Agreement.  

 

  -5-  “Compliance Certificate” has the meaning set forth in Section 8.01(d).  “Connection Income Taxes” means Other Connection Taxes that are imposed on or  measured by net income (however denominated) or that are franchise Taxes or branch profits  Taxes.  “Contracts” means any contract, license, lease, agreement, obligation, promise,  undertaking, understanding, arrangement, document, commitment, entitlement or engagement  under which a Person has, or will have, any liability or contingent liability (in each case, whether  written or oral, express or implied, and whether in respect of monetary or payment obligations,  performance obligations or otherwise), excluding the Loan Documents.  “Control” means, in respect of a particular Person, the possession, directly or indirectly,  of the power to direct or cause the direction of the management or policies of such Person, whether  through the ability to exercise voting power, by contract or otherwise.  “Controlling” and  “Controlled” have meanings correlative thereto.  “Controlled Account” has the meaning set forth in Section 8.17(a)(i).  “Copyrights” has the meaning set forth in the Security Agreement.  “Default” means any Event of Default and any event that, upon the giving of notice, the  lapse of time or both, would constitute an Event of Default.  “Default Rate” has the meaning set forth in Section 3.02(d).  “Deposit Account” has the meaning set forth in the Security Agreement and relates to such  accounts located and/or maintained in the United States of America.  “Designated Person” means a person or entity:   (a) listed in the annex to, or otherwise targeted by the provisions of, the  Executive Order (as disclosed by World-Check or another reputable commercially  available database);   (b) named as a “Specially Designated National and Blocked Person” on the  most current list published by OFAC at its official website or any replacement website or  other replacement official publication of such list (as disclosed by World-Check or another  reputable commercially available database); or   (c) with which the Lenders are prohibited from dealing or otherwise engaging  in any transaction by any Economic Sanctions Laws.  “Device” means any instrument, apparatus, implement, machine, contrivance, implant, in  vitro reagent or other similar or related item, including any component, part or accessory,  developed by the Obligors.  

 

  -6-  “Disqualified Equity Interests” means, with respect to any Person, any Equity Interest of  such Person that, by its terms (or by the terms of any security or other Equity Interest into which  it is convertible or for which it is exchangeable upon exercise or otherwise), or upon the happening  of any event or condition (i) matures or is mandatorily redeemable (other than solely for Qualified  Equity Interests), including pursuant to a sinking fund obligation or otherwise, (ii) is redeemable  at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in  part, (iii) provides for the scheduled payments of dividends or other distributions in cash or other  securities that would constitute Disqualified Equity Interests, or (iv) is or becomes convertible into  or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified  Equity Interests, in each case, prior to the date that is one hundred and eighty (180) days after the  Stated Maturity Date; provided that, if such Equity Interests are issued pursuant to any plan for the  benefit of directors, officers, employees or consultants of such Person or by any such plan to such  directors, officers, employees or consultants, such Equity Interests shall not constitute Disqualified  Equity Interests solely because they may be required to be repurchased by such Person upon the  death, disability, retirement or termination of employment or service of such director, officer,  employee or consultant.  “Dollars” and “$” means lawful money of the United States of America.  “Domestic Subsidiary” means any Subsidiary that is organized under the laws of the  United States, any state thereof or the District of Columbia.  “Economic Sanctions Laws” means:   (a) the Executive Order, the International Emergency Economic Powers Act  (50 U.S.C. §§ 1701 et seq.), the Trading with the Enemy Act (50 U.S.C. App. §§ 1 et seq.),  any other law or regulation promulgated thereunder from time to time and administered by  OFAC and any similar law enacted in the United States after the date of this Agreement;  and   (b) any other similar applicable law now or hereafter enacted in any other  applicable jurisdiction.  “EEA Financial Institution” means (a) any credit institution or investment firm established  in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority,  (b) any entity established in an EEA Member Country which is a parent of an institution described  in clause (a) of this definition, or (c) any financial institution established in an EEA Member  Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and  is subject to consolidated supervision with its parent.  “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “EEA Resolution Authority” means any public administrative authority or any person  entrusted with public administrative authority of any EEA Member Country (including any  delegee) having responsibility for the resolution of any EEA Financial Institution.  

 

  -7-  “Environmental Law” means any federal, state, provincial or local governmental law, rule,  regulation, order, writ, judgment, injunction or decree relating to pollution or protection of the  environment or the treatment, storage, disposal, release, threatened release or handling of  hazardous materials, and all local laws and regulations related to environmental matters and any  specific agreements entered into with any competent authorities which include commitments  related to environmental matters.  “Equity Interest” means, with respect to any Person, any and all shares, interests,  participations or other equivalents, including membership interests (however designated, whether  voting or nonvoting), of equity of such Person, including, if such Person is a partnership,  partnership interests (whether general or limited) and any other interest or participation that confers  on a Person the right to receive a share of the profits and losses of, or distributions of property of,  such partnership, but excluding debt securities convertible or exchangeable into such equity.  “ERISA” means the United States Employee Retirement Income Security Act of 1974, as  amended.  “ERISA Affiliate” means, collectively, any Obligor, Subsidiary thereof, and any Person  under common control, or treated as a single employer, with any Obligor or Subsidiary thereof,  within the meaning of Section 414(b), (c), (m) or (o) of the Code.  “ERISA Event” means (i) a reportable event as defined in Section 4043 of ERISA with  respect to a Title IV Plan, excluding, however, such events as to which the PBGC by regulation  has waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days  of the occurrence of such event; (ii) the applicability of the requirements of Section 4043(b) of  ERISA with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, to any  Title IV Plan where an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c)  of ERISA is reasonably expected to occur with respect to such plan within the following thirty  (30) days; (iii) a withdrawal by any Obligor or any ERISA Affiliate thereof from a Title IV Plan  or the termination of any Title IV Plan resulting in liability under Sections 4063 or 4064 of ERISA;  (iv) the withdrawal of any Obligor or any ERISA Affiliate thereof in a complete or partial  withdrawal (within the meaning of Section 4203 and 4205 of ERISA) from any Multiemployer  Plan if there is any potential liability therefore, or the receipt by any Obligor or any ERISA  Affiliate thereof of notice from any Multiemployer Plan that it is in reorganization or insolvency  pursuant to Section 4241 or 4245 of ERISA; (v) the filing of a notice of intent to terminate, the  treatment of a plan amendment as a termination under Section 4041 or 4041A of ERISA, or the  commencement of proceedings by the PBGC to terminate a Title IV Plan or Multiemployer Plan;  (vi) the imposition of liability on any Obligor or any ERISA Affiliate thereof pursuant to  Sections 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA;  (vii) the failure by any Obligor or any ERISA Affiliate thereof to make any required contribution  to a Plan, or the failure to meet the minimum funding standard of Section 412 of the Code with  respect to any Title IV Plan (whether or not waived in accordance with Section 412(c) of the Code)  or the failure to make by its due date a required installment under Section 430 of the Code with  respect to any Title IV Plan or the failure to make any required contribution to a Multiemployer  Plan; (viii) the determination that any Title IV Plan is considered an at-risk plan or a plan in  endangered to critical status within the meaning of Sections 430, 431 and 432 of the Code or  

 

  -8-  Sections 303, 304 and 305 of ERISA; (ix) an event or condition which might reasonably be  expected to constitute grounds under Section 4042 of ERISA for the termination of, or the  appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan; (x) the imposition  of any liability under Title I or Title IV of ERISA, other than PBGC premiums due but not  delinquent under Section 4007 of ERISA, upon any Obligor or any ERISA Affiliate thereof;  (xi) an application for a funding waiver under Section 303 of ERISA or an extension of any  amortization period pursuant to Section 412 of the Code with respect to any Title IV Plan; (xii) the  occurrence of a non-exempt prohibited transaction under Sections 406 or 407 of ERISA for which  any Obligor or any Subsidiary thereof may be directly or indirectly liable; (xiii) a violation of the  applicable requirements of Section 404 or 405 of ERISA or the exclusive benefit rule under  Section 401(a) of the Code by any fiduciary or disqualified person for which any Obligor or any  ERISA Affiliate thereof may be directly or indirectly liable; (xiv) the occurrence of an act or  omission which could give rise to the imposition on any Obligor or any ERISA Affiliate thereof  of fines, penalties, Taxes or related charges under Chapter 43 of the Code or under Sections 409,  502(c), (i) or (1) or 4071 of ERISA; (xv) the assertion of a material claim (other than routine claims  for benefits) against any Plan or the assets thereof, or against any Obligor or any Subsidiary thereof  in connection with any such plan; (xvi) receipt from the IRS of notice of the failure of any  Qualified Plan to qualify under Section 401(a) of the Code, or the failure of any trust forming part  of any Qualified Plan to fail to qualify for exemption from taxation under Section 501(a) of the  Code; (xvii) the imposition of any lien (or the fulfillment of the conditions for the imposition of  any lien) on any of the rights, properties or assets of any Obligor or any ERISA Affiliate thereof,  in either case pursuant to Title I or IV, including Section 302(f) or 303(k) of ERISA or to  Section 401(a)(29) or 430(k) of the Code; or (xviii) the establishment or amendment by any  Obligor or any Subsidiary thereof of any “welfare plan,” as such term is defined in Section 3(1) of  ERISA, that provides post-employment welfare benefits in a manner that would increase the  liability of any Obligor, other than those benefits required under the Consolidated Omnibus Budget  Reconciliation Act.  “ERISA Funding Rules” means the rules regarding minimum required contributions  (including any installment payment thereof) to Title IV Plans, as set forth in Sections 412, 430,  431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.  “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor Person), as in effect from time to time.  “Event of Default” has the meaning set forth in Section 10.01.  “Excess Funding Guarantor” has the meaning set forth in Section 11.08.  “Excess Payment” has the meaning set forth in Section 11.08.  “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations promulgated thereunder.  

 

  -9-  “Excluded Accounts” means deposit accounts exclusively used for payroll, payroll taxes  and other employee wage and benefit payments to or for the benefit of the employees of Borrower  and its Subsidiaries.  “Excluded Taxes” means any of the following Taxes imposed on or with respect to a  Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed  on or measured by net income (however denominated), franchise Taxes and branch profits Taxes  in each case (i) imposed as a result of such Recipient being organized under the laws of, or having  its principal office or, in the case of a Lender, its applicable lending office located in, the  jurisdiction imposing such Tax or (ii) that are Other Connection Taxes, (b) any U.S. federal  withholding Taxes that are imposed on amounts payable to Lender to the extent that the obligation  to withhold amounts existed on the date that (i) Lender became a “Lender” under this Agreement  or (ii) Lender changes its lending office, except in each case to the extent Lender is a direct or  indirect assignee of any other Lender that was entitled, at the time the assignment of such other  Lender became effective, to receive additional amounts under Section 5.03 or Lender was entitled  to receive additional amounts under Section 5.03 immediately before it changed its lending office,  (c) any Taxes imposed in connection with FATCA, and (d) Taxes attributable to such Recipient’s  failure to comply with Section 5.03(e).  “Executive Order” means the US Executive Order No. 13224 on Blocking Property and  Prohibiting Transactions with Persons who commit, Threaten to Commit, or Support Terrorism.  “Expense Deposit” means a cash deposit in the amount of $50,000 made by Borrower to  an Affiliate of Perceptive Advisors LLC pursuant to the Proposal Letter for the prepayment of the  Lenders’ costs and expenses (payable pursuant to Section 13.03(a) and/or the Proposal Letter)  incurred prior to the Closing Date.  “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement  (or any amended or successor version that is substantively comparable and not materially more  onerous to comply with), any current or future regulations or official interpretations thereof, any  agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory  legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or  convention among Governmental Authorities entered into in connection with the implementation  of the foregoing.  “First Amendment” means the First Amendment to Credit Agreement and Guaranty, dated  as of May 27, 2021, among Borrower, the Lenders and the Administrative Agent.   “First Amendment Effective Date” means May 27, 2021.   “Foreign Lender” means a Lender that is not a U.S. Person.  “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.  “GAAP” means generally accepted accounting principles in the United States of America,  as in effect from time to time, set forth in the opinions and pronouncements of the Accounting  

 

  -10-  Principles Board and the American Institute of Certified Public Accountants, in the statements and  pronouncements of the Financial Accounting Standards Board and in such other statements by  such other entity as may be in general use by significant segments of the accounting profession  that are applicable to the circumstances as of the date of determination.  Subject to Section 1.02,  all references to “GAAP” shall be to GAAP applied consistently with the principles used in the  preparation of the financial statements described in Section 7.04(a).  “Governmental Approval” means any consent, authorization, approval, order, license,  franchise, permit, certification, accreditation, registration, clearance, exemption, filing or notice  that is issued or granted by or from (or pursuant to any act of) any Governmental Authority,  including any application or submission related to any of the foregoing.  “Governmental Authority” means any nation, government, branch of power (whether  executive, legislative or judicial), state, municipality or other political subdivision thereof and any  entity exercising executive, legislative, judicial, monetary, regulatory or administrative functions  of or pertaining to government, including without limitation regulatory authorities, governmental  departments, agencies, commissions, bureaus, officials, ministers, courts, bodies, boards, tribunals  and dispute settlement panels, and other law-, rule- or regulation-making organizations or entities  of any State, territory, county, city or other political subdivision of the United States.  “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or  otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any  Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner,  whether directly or indirectly, and including any obligation of the guarantor, direct or indirect,  (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such  Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of)  any security for the payment thereof, (b) to purchase or lease property, securities or services for  the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof,  (c) to maintain working capital, equity capital or any other financial statement condition or  liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or  other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty  issued to support such Indebtedness or obligation; provided, that the term Guarantee shall not  include endorsements for collection or deposit in the Ordinary Course of Business.  “Guarantee Assumption Agreement” means a Guarantee Assumption Agreement  substantially in the form of Exhibit A by an entity that, pursuant to Section 8.11(a), is required to  become a “Guarantor”.  “Guaranteed Obligations” has the meaning set forth in Section 11.01.  “Guarantor” means, collectively, each Subsidiary of Borrower on the Closing Date or  joined as a Guarantor from time to time pursuant to Section 8.11(a).  “Hazardous Material” means any substance, element, chemical, compound, product,  solid, gas, liquid, waste, by-product, pollutant, contaminant or material which is hazardous or  toxic, and includes, without limitation, (a) asbestos, polychlorinated biphenyls and petroleum  

 

  -11-  (including crude oil or any fraction thereof) and (b) any material classified or regulated as  “hazardous” or “toxic” or words of like import pursuant to an Environmental Law.  “Hedging Agreement” means any interest rate exchange agreement, foreign currency  exchange agreement, commodity price protection agreement or other interest or currency exchange  rate or commodity price hedging arrangement.  “Immaterial Foreign Subsidiary” means, as of any date, any Foreign Subsidiary for which  (a) the consolidated total assets of such Foreign Subsidiary and its Subsidiaries, when taken  together with the consolidated total assets of all other Immaterial Foreign Subsidiaries their  subsidiaries, is not in excess of 5.0% of the consolidated total assets of the Borrower and its  Subsidiaries and (b) the aggregate amount of the Total Revenue of such Foreign Subsidiary and  its subsidiaries on a consolidated basis, when taken together with the contribution to Total Revenue  of all other Immaterial Foreign Subsidiaries and their Subsidiaries on a consolidated basis, is not  in excess of 5.0% of Total Revenue of the Borrower and its Subsidiaries, in each case as of the last  day of any four quarter period; provided that notwithstanding the foregoing, at no time shall any  Guarantor existing on the Closing Date or joined hereto pursuant to Section 8.11 subsequently be  deemed an Immaterial Foreign Subsidiary.  “Indebtedness” of any Person means, without duplication, (a) all obligations of such  Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,  notes, loan agreements or similar instruments, (c) all obligations of such Person upon which  interest charges are customarily paid, (d) all obligations of such Person under conditional sale or  other title retention agreements relating to Property acquired by such Person, (e) all obligations of  such Person in respect of the deferred purchase price of Property or services (excluding current  accounts payable incurred in the Ordinary Course of Business not overdue by more than one  hundred twenty (120) days), (f) all Indebtedness of others secured by (or for which the holder of  such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on  Property owned or acquired by such Person, whether or not the Indebtedness secured thereby has  been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease  Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an  account party in respect of letters of credit and letters of guaranty, (j) obligations under any  Hedging Agreement, currency swaps, forwards, futures or derivatives transactions, (k) all  obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (l) all  obligations of such Person under license or other agreements containing a guaranteed minimum  payment or purchase by such Person, (m) any Disqualified Equity Interests of such Person, (n) any  earnout obligation at the time such obligation is both required to be reflected as a liability on the  balance sheet of such Person in accordance with  GAAP and not paid after becoming due and  payable and (o) all other obligations required to be classified as indebtedness of such Person under  GAAP.  The Indebtedness of any Person shall, without duplication, include the Indebtedness of  any other entity (including any partnership in which such Person is a general partner) to the extent  such Person is liable therefor as a result of such Person’s ownership interest in or other relationship  with such entity, except to the extent the terms of such Indebtedness provide that such Person is  not liable therefor.  “Indemnified Party” has the meaning set forth in Section 13.03(b).  

 

  -12-  “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with  respect to any payment made by or on account of any Obligation and (b) to the extent not otherwise  described in clause (a), Other Taxes.  “Ineligible Assignee” means (a) a natural person or (b) the Obligors or any of their  respective Affiliates.  “Information” has the meaning set forth in Section 13.17.  “Insolvency Proceeding” means (a) any case, action or proceeding before any court or  other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,  receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the  benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement  in respect of any Person’s creditors generally or any substantial portion of such Person’s creditors,  in each case undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code.  “Intellectual Property” means all Patents, Trademarks, Copyrights, industrial designs,  Technical Information, whether registered or not, whether domestic or foreign, including all of the  following:   (a) applications, registrations, amendments and extensions relating to any  Intellectual Property;   (b) rights and privileges arising under any applicable Laws with respect to any  Intellectual Property;   (c) rights to sue for or collect any damages from any past, present or future  infringements of any Intellectual Property; and   (d) rights of the same or similar effect or nature as described above in any  jurisdiction corresponding to any Intellectual Property throughout the world.  “Interest Period” means, (a) initially, the period beginning on (and including) the Closing  Date and ending on (and including) the last day of the calendar month in which the Closing Date  occurs, and (b) thereafter, the period beginning on (and including) the first day of each succeeding  calendar month and ending on the earlier of (and including) (x) the last day of such calendar month  and (y) the Maturity Date.  “Invention” means any novel, inventive or useful art, apparatus, method, process, machine  (including any article or Device), manufacture or composition of matter, or any novel, inventive  and useful improvement in any art, method, process, machine (including any article or Device),  manufacture or composition of matter.  “Investment” means, for any Person: (a) the acquisition (whether for cash, Property,  services or securities or otherwise) of Equity Interests, bonds, notes, debentures, partnership or  other ownership interests or other securities of any other Person or any agreement to make any  

 

  -13-  such acquisition (including any “short sale” or any sale of any securities at a time when such  securities are not owned by the Person entering into such sale); (b) the making of any deposit with,  or advance, loan, assumption of debt or other extension of credit to, any other Person (including  the purchase of Property from another Person subject to an understanding or agreement, contingent  or otherwise, to resell such Property to such Person), but excluding any such advance, loan or  extension of credit in the nature of an ordinary course trade receivable having a term not exceeding  ninety (90) days arising in connection with the sale of services, inventory or supplies by such  Person in the Ordinary Course of Business; (c) the entering into of any Guarantee of, or other  contingent obligation with respect to, Indebtedness or other liability of any other Person and  (without duplication) any amount committed to be advanced, lent or extended to such Person; (d)  entering into any joint venture; or (e) the entering into of any Hedging Agreement.  The amount  of an Investment will be determined at the time the Investment is made without giving effect to  any subsequent changes in value.  “IRS” means the U.S. Internal Revenue Service or any successor agency, and to the extent  relevant, the U.S. Department of the Treasury.  “Laws” means, collectively, all international, foreign, federal, state, provincial, territorial,  municipal and local statutes, treaties, rules, regulations, ordinances, codes and administrative or  judicial precedents or authorities, including the interpretation or administration thereof by any  Governmental Authority charged with the enforcement, interpretation or administration thereof,  and all applicable administrative orders, directed duties, requests, licenses, authorizations and  permits of, and agreements with, any Governmental Authority, in each case whether or not having  the force of law.  “Lenders” has the meaning set forth in the introduction hereto.  “LIBOR” means, for any Interest Period, the rate per annum (rounded upwards if  necessary, to the next 1/100%) equal to the London interbank offered rate for one-month deposits  in Dollars appearing on the appropriate Bloomberg screen or the Dow Jones Markets Telerate Page  3750 as of 11:00 a.m. (London time) two (2) Business Days prior to the commencement of any  Interest Period; provided, that in the event that such rate does not appear on the appropriate  Bloomberg screen or the Dow Jones Markets Telerate Page 3750 (or otherwise on the Dow Jones  Markets screen) at such time, “LIBOR” shall be determined by reference to such other comparable  publicly available service for displaying the offered rate for deposit in Dollars in the London  interbank market as may be selected by the Administrative Agent; provided, further, that in no  event shall LIBOR be less than 1.75%.  “Lien” means any mortgage, lien, pledge, charge or other security interest, or any lease,  title retention agreement, mortgage, restriction, easement, right-of-way, option or adverse claim  (of ownership or possession) or other encumbrance of any kind or character whatsoever or any  preferential arrangement that has the practical effect of creating a security interest.  “Loan Documents” means, collectively, this Agreement, the Notes, the Security  Documents, any Guarantee Assumption Agreement, the Warrant Certificate and any subordination  agreement, intercreditor agreement or other present or future document, instrument, agreement or  

 

  -14-  certificate delivered to any Lender in connection with this Agreement or any of the other Loan  Documents, in each case, as amended, restated, supplemented or otherwise modified.  “Loan Exposure” means, with respect to any Lender, as of any date of determination, the  outstanding principal amount of the Loans of such Lender; provided, at any time prior to the  making of the Loans, the Loan Exposure of any Lender shall be equal to such Lender’s  Commitment.  “Loans” means the Tranche A Loan, Tranche B Loan, Tranche C Loan and Tranche D  Loan.  “Loss” means judgments, debts, liabilities, expenses, costs, damages or losses, contingent  or otherwise, whether liquidated or unliquidated, matured or unmatured, disputed or undisputed,  contractual, legal or equitable, including loss of value, professional fees, including fees and  disbursements of legal counsel on a full indemnity basis, and all costs incurred in investigating or  pursuing any Claim or any proceeding relating to any Claim.  “Majority Lenders” means, at any time, one or more Lenders having or holding Loan  Exposure and representing more than 50% of the aggregate Loan Exposure of all Lenders.  “Margin Stock” means “margin stock” within the meaning of Regulations U and X.  “Material Adverse Change” and “Material Adverse Effect” mean a material adverse  change in or effect on (a) the business, financial condition, operations and performance of the  Obligors taken as a whole, (b) the ability of any Obligor to perform its obligations under any Loan  Document, (c) the value of the Property comprising Collateral (taken as a whole), or (d) the  legality, validity, binding effect or enforceability of the Loan Documents or the rights and remedies  of any Lender under any of the Loan Documents.  “Material Agreement” means (a) any Contract which is listed in Schedule 7.14, (b) any  other Contract to which any Obligor is a party or a beneficiary from time to time, or to which any  assets or properties of any Obligor is bound, the loss or termination of which would reasonably be  expected to result in a Material Adverse Effect, (c) any other Contract to which any Obligor is a  party or a guarantor (or equivalent) whether existing as of the date hereof or in the future that  during any period of twelve (12) consecutive months is reasonably expected to (i) result in  payments or receipts (including royalty, licensing or similar payments) made to any Obligor in an  aggregate amount in excess of $1,000,000 or (ii) require payments or expenditures (including  royalty, licensing or similar payments) made by any Obligor in an aggregate amount in excess of  $1,000,000, (d) the Patent Purchase Agreement, (e) the Supply Agreement and (f) the QIAGEN  Assumption Agreement.   “Material Indebtedness” means, at any time, any Indebtedness of any Obligor, the  outstanding principal amount of which, individually or in the aggregate, exceeds $250,000.  “Material Intellectual Property” means all Obligor Intellectual Property, including those  described in Schedule 7.05(b), whether currently owned or licensed, or acquired, developed or  

 

  -15-  otherwise licensed or obtained after the date hereof (a) necessary for the operation of the business  of any Obligor as currently conducted or as currently contemplated to be conducted, (b) the loss  of which would reasonably be expected to have or result in a Material Adverse Effect or (c) that  has a fair market value in excess of $1,000,000.  “Maturity Date” means the earlier to occur of (a) the Stated Maturity Date, and (b) the  date on which the Loans are accelerated pursuant to Section 10.02.  “Multiemployer Plan” means any multiemployer plan, as defined in Section 400l(a)(3) of  ERISA, to which any ERISA Affiliate incurs or otherwise has any obligation or liability,  contingent or otherwise.  “Net Cash Proceeds” means,   (a)  with respect to the incurrence or issuance of any Indebtedness incurred by an  Obligor not permitted under Section 9.01, the excess, if any, of (i) the sum of the cash received in  connection with such incurrence or issuance over (ii) the investment banking fees, underwriting  discounts, commissions, costs and other reasonable expenses and other customary expenses  (including reasonable attorney’s, accountant’s and other similar professional advisor’s fees),  incurred by such Obligor in connection with such incurrence or issuance to third parties (other than  any other Obligor or any of their respective Affiliates),  (b)  with respect to any Casualty Event, the amount of cash proceeds actually received  from time to time by or on behalf of an Obligor after deducting therefrom only (i) actual costs and  expenses related thereto incurred by such Obligor in connection therewith and (ii) Taxes paid or  payable in connection therewith, and  (c)  with respect to any Asset Sale, the excess, if any, of (i) cash proceeds received in  respect of such Asset Sale (including cash proceeds subsequently received (as and when received))  over (ii) the sum of (A) the direct costs of such Asset Sale then payable by the recipient of such  proceeds excluding amounts payable to any Obligor, (B) sales and use taxes paid or payable by  such recipient as a result thereof, (C) amounts required to be applied to repay principal, interest  and prepayment premiums and penalties on Indebtedness secured by a Permitted Lien on the  properties subject to such Asset Sale and (D) amounts reserved or deposited in escrow with respect  to indemnity payments or price adjustments until such amounts are released to the Obligors.  “Note” means a promissory note executed and delivered by Borrower to any Lender in the  form attached hereto as Exhibit C.  “Obligations” means, with respect to any Obligor, all amounts, obligations (including,  without limitation, all Warrant Obligations), liabilities, covenants and duties of every type and  description owing by such Obligor to any Lender or any other Indemnified Party hereunder, arising  out of, under, or in connection with, any Loan Document, whether direct or indirect (regardless of  whether acquired by assignment), absolute or contingent, due or to become due, whether liquidated  or not, now existing or hereafter arising and however acquired, and whether or not evidenced by  any instrument for the payment of money, including, without duplication, (a) all Loans, (b) all  

 

  -16-  interest on the Loans (including interest at the Default Rate), whether or not accruing after the  filing of any petition in bankruptcy or after the commencement of any insolvency, reorganization  or similar proceeding, and whether or not a claim for post-filing or post-petition interest is allowed  in any such proceeding, (c) any Prepayment Premium, and (d) all other fees, expenses (including  fees, charges and disbursement of counsel), interest, commissions, charges, costs, disbursements,  indemnities and reimbursement of amounts paid and other sums chargeable to such Obligor under  any Loan Document.  “Obligor Intellectual Property” means Intellectual Property owned by or licensed to any  of the Obligors.  “Obligors” means, collectively, Borrower, each Guarantor and each of their respective  successors and permitted assigns.  “OFAC” means the Office of Foreign Assets Control of the U.S. Department of the  Treasury (or any successor thereto).  “Ordinary Course of Business” means, with respect to the Obligors, the ordinary course  of business generally consistent with past custom and practice (including with respect to nature,  scope, magnitude, quantity and frequency).  “Organizational Documents” means (a) with respect to any corporation, its certificate or  articles of incorporation or organization, as amended, and its by-laws, as amended, (b) with respect  to any limited partnership, its certificate of limited partnership, as amended, and its partnership  agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as  amended, and (d) with respect to any limited liability company, its articles of organization, as  amended, and its operating agreement, as amended.  In the event any term or condition of this  Agreement or any other Loan Document requires any Organizational Document to be certified by  a secretary of state or similar government official, the reference to any such “Organizational  Document” shall only be to a document of a type customarily certified by such government official.  “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result  of a present or former connection between such Recipient and the jurisdiction imposing such Tax  (other than connections arising solely from such Recipient having executed, delivered, become a  party to, performed its obligations under, received payments under, received or perfected a security  interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or  sold or assigned an interest in any Loan or Loan Document).  “Other Taxes” means all present or future stamp, court or documentary, intangible,  recording, filing or similar Taxes that arise from any payment made under, from the execution,  delivery, performance, enforcement or registration of, from the receipt or perfection of a security  interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are  Other Connection Taxes imposed with respect to an assignment (other than an assignment made  pursuant to Section 5.03(g)).  “Participant” has the meaning set forth in Section 13.05(e).  

 

  -17-  “Participant Register” has the meaning set forth in Section 13.05(f).  “Patent Purchase Agreement” means that certain asset purchase agreement, as in effect on  the First Amendment Effective Date, by and among Borrower, as QIAGEN Sciences, LLC, a  Delaware limited liability company, and QIAGEN GmbH, a German corporation, collectively as  sellers, dated as of May 12, 2021, whereby Borrower purchased all rights, privileges, title and  interest in and to certain patents, along with the inventions described and claimed in the patents,  and all rights to income, royalties and damages for infringement of the patents (the “QIAGEN  Patents”).   “Patents” has the meaning set forth in the Security Documents.  “Payment Date” means the last day of each Interest Period; provided that if such last day  of such Interest Period is not a Business Day, then the Payment Date for such Interest Period will  be the next succeeding Business Day.  “PBGC” means the United States Pension Benefit Guaranty Corporation referred to and  defined in ERISA and any successor entity performing similar functions.  “Perceptive” has the meaning set forth in the introduction hereto.  “Permits” means all permits, licenses, registrations, certificates, orders, approvals,  authorizations, consents, waivers, franchises, variances and similar rights issued by or obtained  from any Governmental Authority or any other Person, including, without limitation, those relating  to Environmental Laws.  “Permitted Acquisition” means any Acquisition by any Obligor or any of its wholly-owned  Subsidiaries, by (a) purchase, merger, amalgamation, license or otherwise, of all or substantially  all of the assets of, all of the Equity Interests of, or a business line or unit or a division of, any  Person or (b) license arrangement for the rights to use, develop, market or otherwise  commercialize any Patents, Trademarks, Copyrights or other Intellectual Property (other than  ordinary course, over the counter software license arrangements); provided that:  (i) immediately prior to, and immediately after giving effect thereto, no Default  shall have occurred and be continuing or would result therefrom;  (ii) all transactions in connection therewith shall be consummated, in all  material respects, in accordance with all applicable Laws and in conformity in all material  respects with all applicable Governmental Approvals;  (iii) in the case of the Acquisition of all of the Equity Interests of such Person,  all of the Equity Interests (except for any such securities in the nature of directors’  qualifying shares required pursuant to applicable Law) acquired, or otherwise issued by  such Person or any newly formed Subsidiary of such Obligor in connection with such  Acquisition, shall be owned 100% by an Obligor or any other Subsidiary of Borrower, and  

 

  -18-  Borrower shall have taken, or caused to be taken, as of the date such Person becomes a  Subsidiary of an Obligor, each of the actions set forth in Section 8.11, if applicable;   (iv) such Person (in the case of an Acquisition of Equity Interests) or assets (in  the case of an Acquisition of assets or a division) (i) shall be engaged or used, as the case  may be, in the same business or lines of business in which Borrower and/or its Subsidiaries  are engaged or a business reasonably and substantially related thereto or (ii) shall have a  similar customer base as Borrower and/or its Subsidiaries;   (v) Borrower shall have provided the Administrative Agent with at least  ten (10) Business Days’ prior written notice of any such Acquisition, together with  summaries, prepared in reasonable detail, of all due diligence conducted by or on behalf of  Borrower or the applicable Subsidiary prior to such Acquisition;  (vi) all of the assets or Equity Interests acquired in connection with such  Acquisition shall be of a U.S. Person;  (vii) the Acquisition shall have been approved by the Board or other governing  body or controlling Person of the Person acquired or the Person from whom such assets or  division is acquired; and  (viii) on a pro forma basis after giving effect to such Acquisition, Borrower and  its Subsidiaries shall be in compliance with Section 8.15.   “Permitted Cash Equivalent Investments” means (a) marketable direct obligations issued  or unconditionally guaranteed by the United States or any agency or any State thereof having  maturities of not more than two (2) years from the date of acquisition, (b) commercial paper with  an average maturity of no more than one (1) year and having the highest rating from either Standard  & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) any money market funds or other  investment vehicles whose principal investments are in investments described in clauses (a) or (b)  above, and (d) certificates of deposit maturing no more than one (1) year after issue.  “Permitted Indebtedness” means any Indebtedness permitted under Section 9.01.  “Permitted Licenses” means (a) licenses of over-the-counter software that is commercially  available to the public, (b) licenses for the use of Obligor Intellectual Property, in each case,  entered into in the Ordinary Course of Business or as otherwise may be approved by the applicable  Obligor’s Board and so long as (i) no Event of Default has occurred and is continuing at the time  such license is entered into and (ii) such license does not materially impair the Lenders from  exercising their rights under any of the Loan Documents and (c) licenses pursuant to the Supply  Agreement.  “Permitted Liens” means any Liens permitted under Section 9.02.  

 

  -19-  “Permitted Priority Liens” means (a) Liens permitted under Section 9.02(d), (e), (f) or (g)  and (b) Liens permitted under Section 9.02(b); provided that such Liens are also of the type  described in Section 9.02(d), (e), (f) or (g).  “Permitted Refinancing” means, with respect to any Indebtedness permitted to be  refinanced, extended, renewed or replaced hereunder, any refinancings, extensions, renewals and  replacements of such Indebtedness; provided that such refinancing, extension, renewal or  replacement shall not (a) increase the outstanding principal amount of the Indebtedness being  refinanced, extended, renewed or replaced, (b) contain terms relating to outstanding principal  amount, amortization, interest rate or equivalent yield, maturity, collateral security (if any) or  subordination (if any), or other material terms that, taken as a whole, are less favorable in any  material respect to any Obligor or the Lenders than the terms of any agreement or instrument  governing the Indebtedness being refinanced, (c) contain any new requirement to grant any Lien  or to give any Guarantee that was not an existing requirement of the Indebtedness being refinanced  and (d) after giving effect to such refinancing, extension, renewal or replacement, no Default shall  have occurred (or could reasonably be expected to occur) as a result thereof.  “Person” means any individual, corporation, company, voluntary association, partnership,  limited liability company, joint venture, trust, unincorporated organization or Governmental  Authority or other entity of whatever nature.  “PFIC” has the meaning set forth in Section 8.01(j).  “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)  subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of  ERISA, and in respect of which Borrower or any ERISA Affiliate is (or, if such plan were  terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in  Section 3(5) of ERISA.  “Prepayment Premium” has the meaning set forth in Section 3.03(a)(i).  “Pro Rata Share” has the meaning set forth in Section 11.08.  “Prohibited Payment” means any bribe, rebate, payoff, influence payment, kickback or  other payment or gift of money or anything of value (including meals or entertainment) to any  officer, employee or ceremonial office holder of any government or instrumentality thereof,  political party or supra-national organization (such as the United Nations), any political candidate,  any royal family member or any other person who is connected or associated personally with any  of the foregoing that is prohibited under any Requirement of Law.  “Projections” has the meaning set forth in Section 7.04(b).  “Property” of any Person means any property or assets, or interest therein, of such Person.  

 

  -20-  “Proportionate Share” means, with respect to any Lender, the percentage obtained by  dividing (a) the Loan Exposure of such Lender then in effect by (b) the aggregate Loan Exposure  of all Lenders then in effect.  “Proposal Letter” means the letter agreement, dated November 27, 2020, among Borrower  and Perceptive Advisors LLC, regarding the transactions contemplated hereby and the outline of  proposed terms and conditions attached thereto.  “Publicly Reporting Company” means an issuer generally subject to the public reporting  requirements of the Exchange Act.  “QIAGEN Assumption Agreement” means that certain assumption agreement dated as of  May 12, 2021 by and among Borrower, QIAGEN Sciences, LLC, a Delaware limited liability  company and QIAGEN GmbH.   “Qualified Equity Interest” means, with respect to any Person, any Equity Interest of such  Person that is not a Disqualified Equity Interest.  “Qualified Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA)  other than a Multiemployer Plan (i) that is or was at any time maintained or sponsored by any  Obligor or any ERISA Affiliate thereof or to which any Obligor or any ERISA Affiliate thereof  has ever made, or was ever obligated to make, contributions, and (ii) that is intended to be tax  qualified under Section 401(a) of the Code.  “Qualified Public Offering” means the initial firm-commitment underwritten public  offering of common Equity Interests of the Borrower pursuant to an effective registration statement  filed with the SEC in accordance with the Securities Act of 1933, raising net cash proceeds of at  least $50,000,000, and in connection with such offering the common Equity Interests of the  Borrower is listed for trading on the Nasdaq Stock Market’s National Market, the New York Stock  Exchange, or another exchange or marketplace acceptable to the Administrative Agent in its sole  discretion.  “Recipient” means any Lender or the Administrative Agent.  “Redemption Date” has the meaning set forth in Section 3.03(a).  “Redemption Price” has the meaning set forth in Section 3.03(a).  “Register” has the meaning set forth in Section 13.05(d).  “Regulation T” means Regulation T of the Board of Governors of the Federal Reserve  System, as amended.  “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve  System, as amended.  

 

  -21-  “Regulation X” means Regulation X of the Board of Governors of the Federal Reserve  System, as amended.  “Representatives” has the meaning set forth in Section 13.17.  “Requirement of Law” means, as to any Person, any Law applicable to or binding upon  such Person or any of its Properties or revenues.  “Resignation Effective Date” has the meaning set forth in Section 12.06(a).  “Responsible Officer” of any Person means each of the president, chief executive officer  and chief financial officer of such Person.  “Restricted Payment” means any dividend or other distribution (whether in cash, securities  or other Property) with respect to any Equity Interest of Borrower or any of its Subsidiaries, or any  payment (whether in cash, securities or other Property), including any sinking fund or similar  deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or  termination of any such shares of capital stock of Borrower or any of its Subsidiaries or any option,  warrant or other right to acquire any such shares of capital stock of Borrower or any of its  Subsidiaries.  “Restrictive Agreement” means any indenture, agreement, instrument or other binding  arrangement that prohibits, restricts or imposes any condition upon (a) the ability of any Obligor  to create, incur or permit to exist any Lien upon any of its Property (other than (i) customary  provisions in contracts (including without limitation leases and in-bound licenses of Intellectual  Property) restricting the assignment thereof, (ii) restrictions or conditions imposed by any  agreement governing secured Permitted Indebtedness permitted under Section 9.01(g), to the  extent that such restrictions or conditions apply only to the Property securing such Indebtedness  and (iii) software and other Intellectual Property licenses pursuant to which an Obligor is the  licensee of the relevant software or Intellectual Property, as the case may be (in which case, any  prohibition or limitation shall relate only to the assets or rights subject to the applicable license  and/or the license itself)), or (b) the ability of any Obligor to pay dividends or other distributions  with respect to any shares of its Equity Interests or to make or repay loans or advances to any  Obligor or to Guarantee Indebtedness of any Obligor.  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.  “Sanctions” means economic or financial sanctions, requirements or trade embargoes  imposed, administered or enforced from time to time by Governmental Authorities (including, but  not limited to, OFAC, the U.S. Department of State and the U.S. Department of Commerce).  “Sanctions Laws” means all laws, rules, regulations and requirements of any jurisdiction  applicable to the Obligors or any party to the Loan Documents concerning or relating to Sanctions,  terrorism or money laundering.  

 

  -22-  “SEC” means United States Securities and Exchange Commission.  “Second Amendment” means the Second Amendment to Credit Agreement and Guaranty,  dated as of October 29, 2021, among Borrower, the Lenders and the Administrative Agent.   “Securities Account” has the meaning set forth in the Security Agreement.  “Security Agreement” means the Security Agreement, dated as of the date hereof, in  substantially the form of Exhibit G, among the Obligors, the Lenders and the Administrative  Agent, granting a security interest in the personal Property constituting Collateral thereunder in  favor of the Administrative Agent for the benefit of the Lenders.  “Security Documents” means, collectively, the Security Agreement, each Short-Form IP  Security Agreement, and each other security document, control agreement or financing statement  executed to perfect Liens in favor of the Administrative Agent for the benefit of the Lenders.  “Short-Form IP Security Agreements” means short-form copyright, patent or trademark  (as the case may be) security agreements, dated as of the date hereof, in substantially the form of  Exhibits H-1 and H-2, entered into by one or more Obligors in favor of the Administrative Agent  for the benefit of the Lenders, each in form and substance satisfactory to the Administrative Agent.  “Solvent” means, with respect to any Person at any time, that (a) the present fair saleable  value of the Property of such Person is greater than the total amount of liabilities (including  contingent liabilities) of such Person, (b) the present fair saleable value of the Property of such  Person is not less than the amount that will be required to pay the probable liability of such Person  on its debts as they become absolute and matured, and (c) such Person has not incurred and does  not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability  to pay as such debts and liabilities mature.  “Stated Maturity Date” means the fifth (5th) anniversary of the Closing Date; provided  that if such date shall occur on a day that is not a Business Day, then the Stated Maturity Date shall  be the immediately succeeding Business Day.  “Subsidiary” means, with respect to any Person (the “parent”) at any time of  determination, any other Person of which more than 50% of the outstanding capital stock of such  other Person having ordinary voting powers, determined on a fully diluted basis, is at the time  directly or indirectly owned or controlled by the parent.  Unless the context otherwise specifically  requires, the term “Subsidiary” shall be a reference to a Subsidiary of Borrower.  “Supply Agreement” means that certain supply agreement, as in effect on the First  Amendment Effective Date, by and between QIAGEN GmbH, dated as of May 12, 2021, whereby  Borrower (a) licenses certain rights in the QIAGEN Patents to QIAGEN GmbH and (b) purchases  certain reagents incorporating the QIAGEN Patents.   

 

  -23-  “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings  (including backup withholding), assessments, fees or other charges imposed by any Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.  “Technical Information” means all trade secrets and other proprietary or confidential  information, which may include any information of a scientific, technical, or business nature in  any form or medium, standards and specifications, conceptions, ideas, innovations, discoveries,  Invention disclosures, all documented research, developmental, demonstration or engineering  work, data, plans, specifications, reports, summaries, experimental data, manuals, models,  samples, know-how, technical information, systems, methodologies, computer programs or  information technology.  “Third Amendment” means the Third Amendment to Credit Agreement and Guaranty,  dated as of March 30, 2022, among Borrower, the Lenders and the Administrative Agent.   “Third Amendment Effective Date” means March 30, 2022.   “Title IV Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA)  other than a Multiemployer Plan (a) that is or was at any time maintained or sponsored by any  Obligor or any ERISA Affiliate thereof or to which any Obligor or any ERISA Affiliate thereof  has ever made, or was obligated to make, contributions, and (b) that is or was subject to  Section 412 of the Code, Section 302 of ERISA or Title IV of ERISA.  “Total Revenue” means, with respect to the Obligors, all amounts paid to and received by  such Person in the ordinary course of business that, in accordance with GAAP, would be classified  as net revenue.  “Trademarks” has the meaning set forth in the Security Documents.  “Tranche A Loan” means each loan advanced by a Lender pursuant to Section 2.01(a).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche A Loan on any date of determination shall mean the aggregate principal amount of the  Tranche A Loan made pursuant to Section 2.01(a) that has not yet been repaid as of such date.  “Tranche A Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche A Loan and “Tranche A Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche A Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche A Loan Commitments as of the  Closing Date is $25,000,000.  “Tranche B Loan” means each loan advanced by a Lender pursuant to Section 2.01(b).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche B Loan on any date of determination shall mean the aggregate principal amount of the  Tranche B Loan made pursuant to Section 2.01(b) that has not yet been repaid as of such date.  

 

  -24-  “Tranche B Loan Borrowing Date” means with respect to the Tranche B Loan, the  Business Day on which all conditions set forth in Section 6.02 have been satisfied or waived by  the Lenders and the Tranche B Loan is made hereunder.  “Tranche B Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche B Loan and “Tranche B Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche B Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche B Loan Commitments as of the  First Amendment Effective Date is $10,000,000.  “Tranche B Loan Commitment Termination Date” means May 28, 2021.  “Tranche C Loan” means each loan advanced by a Lender pursuant to Section 2.01(c).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche C Loan on any date of determination shall mean the aggregate principal amount of the  Tranche C Loan made pursuant to Section 2.01(c) that has not yet been repaid as of such date.  “Tranche C Loan Borrowing Date” means with respect to the Tranche C Loan, the Third  Amendment Effective Date.  “Tranche C Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche C Loan and “Tranche C Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche C Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche C Loan Commitments after giving  effect to the Tranche C Term Loan made on the Tranche C Loan Borrowing Date is $0.  “Tranche D Loan” means each loan advanced by a Lender pursuant to Section 2.01(d).   For purposes of clarification, any calculation of the aggregate outstanding principal amount of the  Tranche D Loan on any date of determination shall mean the aggregate principal amount of the  Tranche D Loan made pursuant to Section 2.01(d) that has not yet been repaid as of such date.  “Tranche D Loan Borrowing Date” means with respect to the Tranche D Loan, the  Business Day on which all conditions set forth in Section 6.04 have been satisfied or waived by  the Lenders and the Tranche D Loan is made hereunder.  “Tranche D Loan Commitment” means the commitment of a Lender to make or otherwise  fund a Tranche D Loan and “Tranche D Loan Commitments” means such commitments of all  Lenders in the aggregate.  The amount of each Lender’s Tranche D Loan Commitment, if any, is  set forth on Schedule 1.  The aggregate amount of the Tranche D Loan Commitments as of the  Third Amendment Effective Date is $7,500,000.  “Tranche D Loan Commitment Termination Date” means June 30, 2022.  “Transactions” means the execution, delivery and performance by each Obligor of this  Agreement and the other Loan Documents to which such Obligor is a party and the other  

 

  -25-  transactions contemplated hereby and thereby, including disbursement and application of the  proceeds of the Loans.  “UK Financial Institution” means any BRRD Undertaking (as such term is defined under  the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential  Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended  from time to time) promulgated by the United Kingdom Financial Conduct Authority, which  includes certain credit institutions and investment firms, and certain affiliates of such credit  institutions or investment firms.  “UK Resolution Authority” means the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.  “Unrestricted Cash” means the balance of unencumbered cash (other than cash  encumbered by the Liens granted to the Lenders pursuant to the Loan Documents) and Permitted  Cash Equivalent Investments (which for greater certainty shall not include any undrawn credit  lines), in each case, to the extent held in a Controlled Account.  “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30)  of the Code.  “U.S. Tax Compliance Certificate” has the meaning set forth in Section 5.03(f)(ii)(B)(3).  “Warrant Certificate” means the Amended and Restated Warrant Certificate.  “Warrant Obligations” means, with respect to Borrower, all of its Obligations arising out  of, under or in connection with, any Warrant Certificate.  “Withdrawal Liability” means, at any time, any liability incurred (whether or not assessed)  by any ERISA Affiliate and not yet satisfied or paid in full at such time with respect to any  Multiemployer Plan pursuant to Section 4201 of ERISA.  “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down  and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect  to the United Kingdom,  any powers of the applicable Resolution Authority  under the Bail-In  Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial  Institution  or any contract or instrument under which that liability arises, to convert all or part of  that liability into shares, securities or obligations of that person or any other person, to provide that  any such contract or instrument is to have effect as if a right had been exercised under it or to  suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers.   Section 1.02. Accounting Terms and Principles.  All accounting determinations required to  be made pursuant hereto shall, unless expressly otherwise provided herein, be made substantially  

 

  -26-  in accordance with GAAP.  If, after the date hereof, any change occurs in GAAP or in the  application thereof (an “Accounting Change”) and such change would cause any amount required  to be determined for the purposes of the covenants to be maintained or calculated pursuant to  Article 8 or 9 to be materially different than the amount that would be determined prior to such  change, then Borrower will provide a detailed notice of such change (an “Accounting Change  Notice”) to the Administrative Agent in conjunction with the next required delivery of financial  statements pursuant to Section 8.01.  If Borrower requests an amendment to any provision hereof  to eliminate the effect of any Accounting Change occurring after the Closing Date or in the  application thereof on the operation of such provision, regardless of whether any Accounting  Change Notice is given before or after such Accounting Change or in the application thereof, then  the Administrative Agent and Borrower agree that they will negotiate in good faith amendments  to the provisions of this Agreement that are directly affected by such Accounting Change with the  intent of having the respective positions of the Administrative Agent and Borrower after such  Accounting Change conform as nearly as possible to their respective positions as of the date of  this Agreement and, until any such amendments have been agreed upon, (a) the provisions in this  Agreement shall be calculated as if no such Accounting Change had occurred and (b) Borrower  shall provide to the Administrative Agent a written reconciliation in form and substance reasonably  satisfactory to the Administrative Agent, between calculations of any baskets and other  requirements hereunder before and after giving effect to such Accounting Change.  All components of financial calculations made to determine compliance with this Agreement shall  be adjusted to include or exclude, as the case may be, without duplication, such components of  such calculations attributable to any Acquisition or disposition of assets consummated after the  first day of the applicable period of determination and prior to the end of such period, as determined  in good faith by Borrower based on assumptions expressed therein and that were reasonable based  on the information available to Borrower at the time of preparation of the Compliance Certificate  setting forth such calculations.   Section 1.03. Interpretation.  For all purposes of this Agreement, except as otherwise  expressly provided herein or unless the context otherwise requires, (a) the terms defined in this  Agreement include the plural as well as the singular and vice versa; (b) words importing gender  include all genders; (c) any reference to a Section, Article, Annex, Schedule or Exhibit refers to a  Section or Article of, or Annex, Schedule or Exhibit to, this Agreement; (d) any reference to “this  Agreement” refers to this Agreement, including all Annexes, Schedules and Exhibits hereto, and  the words herein, hereof, hereto and hereunder and words of similar import refer to this Agreement  and its Annexes, Schedules and Exhibits as a whole and not to any particular Section, Article,  Annex, Schedule, Exhibit or any other subdivision; (e) references to days, months and years refer  to calendar days, months and years, respectively; (f) all references herein to “include” or  “including” shall be deemed to be followed by the words “without limitation”; (g) the word “from”  when used in connection with a period of time means “from and including” and the word “until”  means “to but not including”; and (h) accounting terms not specifically defined herein shall be  construed substantially in accordance with GAAP (except for the term “property,” which shall be  interpreted as broadly as possible, including, in any case, cash, securities, other assets, rights under  contractual obligations and permits and any right or interest in any property, except where  otherwise noted).  Unless otherwise expressly provided herein, references to organizational  documents, agreements (including the Loan Documents) and other contractual instruments shall  

 

  -27-  be deemed to include all subsequent amendments, restatements, extensions, supplements and other  modifications thereto permitted by the Loan Documents.   Section 1.04. Divisions.  For all purposes under the Loan Documents, in connection with  any division or plan of division under Delaware law (or any comparable event under a different  jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset,  right, obligation or liability of a different Person, then it shall be deemed to have been transferred  from the original Person to the subsequent Person and (b) if any new Person comes into existence,  such new Person shall be deemed to have been organized on the first date of its existence by the  holders of its Equity Interests at such time.    ARTICLE 2    THE COMMITMENTS   Section 2.01. Loans.   (a) Tranche A Loan.    (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche A Loan to Borrower on the Closing Date in  Dollars in a principal amount equal to such Lender’s Tranche A Loan Commitment.  No  Lender shall have an obligation to make a Tranche A Loan in excess of such Lender’s  Tranche A Loan Commitment.    (ii) Subject to the terms and conditions of this Agreement (including Section  6.01), Borrower shall deliver to the Administrative Agent a fully executed Borrowing  Notice no later than 5 p.m. (New York City time) at least one (1) Business Day in advance  of the Closing Date.    (iii) Borrower may make one borrowing under the Tranche A Loan  Commitment which shall be on the Closing Date.  Subject to Section 3.03, all amounts  owed hereunder with respect to the Tranche A Loan shall be paid in full no later than the  Maturity Date.  Each Lender’s Tranche A Loan Commitment shall terminate immediately  and without further action on the Closing Date after giving effect to the funding of such  Lender’s Tranche A Loan Commitment on such date.   (b) Tranche B Loan.    (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche B Loan to Borrower on the Tranche B Loan  

 

  -28-  Borrowing Date in Dollars in a principal amount equal to such Lender’s Tranche B Loan  Commitment.  No Lender shall have an obligation to make a Tranche B Loan in excess of  such Lender’s Tranche B Loan Commitment.    (ii) Subject to the terms and conditions of this Agreement (including Section  6.02), Borrower shall deliver to the Administrative Agent a fully executed Borrowing  Notice no later than 5 p.m. (New York City time) at least three (3) Business Days in  advance of the proposed Tranche B Loan Borrowing Date.    (iii) Borrower may make one borrowing under the Tranche B Loan Commitment  which shall be on the Tranche B Loan Borrowing Date. Subject to Section 3.03, all  amounts owed hereunder with respect to the Tranche B Loan shall be paid in full no later  than the Maturity Date.  Each Lender’s Tranche B Loan Commitment shall terminate  immediately and without further action on the earlier of (x) the Tranche B Loan Borrowing  Date after giving effect to the funding of such Lender’s Tranche B Loan Commitment on  such date and (y) the Tranche B Loan Commitment Termination Date.   (c) Tranche C Loan.    (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche C Loan to Borrower on the Tranche C Loan  Borrowing Date in Dollars in a principal amount equal to such Lender’s Tranche C Loan  Commitment.  No Lender shall have an obligation to make a Tranche C Loan in excess of  such Lender’s Tranche C Loan Commitment.    (ii) Subject to the terms and conditions of this Agreement (including Section  6.03), Borrower shall deliver to the Administrative Agent a fully executed Borrowing  Notice no later than 5 p.m. (New York City time) at least three (3) Business Days in  advance of the proposed Tranche C Loan Borrowing Date.    (iii) Borrower may make one borrowing under the Tranche C Loan Commitment  which shall be on the Tranche C Loan Borrowing Date. Subject to Section 3.03, all  amounts owed hereunder with respect to the Tranche C Loan shall be paid in full no later  than the Maturity Date.     (d) Tranche D Loan.    (i) Subject to the terms and conditions of this Agreement and relying on the  representations and warranties set forth herein, each Lender, severally and not jointly,  agrees to provide its share of the Tranche D Loan to Borrower on the Tranche D Loan  Borrowing Date in Dollars in a principal amount equal to such Lender’s Tranche D Loan  Commitment.  No Lender shall have an obligation to make a Tranche D Loan in excess of  such Lender’s Tranche D Loan Commitment.  

 

  -29-    (ii) Subject to the terms and conditions of this Agreement (including  Section 6.04), Borrower shall deliver to the Administrative Agent a fully executed  Borrowing Notice no later than 5 p.m. (New York City time) at least three (3) Business  Days in advance of the proposed Tranche D Loan Borrowing Date.    (iii) Borrower may make one borrowing under the Tranche D Loan  Commitment which shall be on the Tranche D Loan Borrowing Date. Subject to  Section 3.03, all amounts owed hereunder with respect to the Tranche D Loan shall be paid  in full no later than the Maturity Date.  Each Lender’s Tranche D Loan Commitment shall  terminate immediately and without further action on the earlier of (x) the Tranche D Loan  Borrowing Date after giving effect to the funding of such Lender’s Tranche D Loan  Commitment on such date and (y) the Tranche D Loan Commitment Termination Date.   (e) Any principal amount of any Loans borrowed under Section 2.01(a), 2.01(b), 2.01(c)  or 2.01(d) hereof and subsequently repaid or prepaid may not be reborrowed.   Section 2.02. Proportionate Shares.  All Loans shall be made, and all participations  purchased, by the Lenders simultaneously and proportionately to their respective Proportionate  Shares, it being understood that no Lender shall be responsible for any default by any other Lender  in such other Lender’s obligation to make a Loan hereunder or purchase a participation required  hereby nor shall the Commitment of any Lender be increased or decreased as a result of a default  by any other Lender in such other Lender’s obligation to make a Loan requested hereunder or  purchase a participation required hereby.   Section 2.03. Fees.  On the Closing Date, Borrower shall pay to the Administrative Agent  (out of the proceeds of the Tranche A Loan advanced by such Lenders on the Closing Date) for  distribution to each Lender in accordance with its pro rata share of Loans, a non-refundable fee  (the “Closing Fee”) in the amount of $750,000.  Payment of the Closing Fee shall be in addition  to such fees, costs and expenses due and payable pursuant to Section 12.03.   Section 2.04. Notes.  Upon the request of any Lender, Borrower shall prepare, execute and  deliver to such Lender one or more Notes evidencing the Loans payable to such Lender (or if  requested by it, to it and its registered assigns).   Section 2.05. Use of Proceeds.  Borrower shall use the proceeds of the Loans (a) for general  working capital purposes and corporate purposes, (b) to refinance certain existing Indebtedness on  the Closing Date and (c) to pay, in accordance with the funds flow attached to the Borrowing  Notice, fees, costs and expenses incurred in connection with the Transactions.  ARTICLE 3    PAYMENTS OF PRINCIPAL AND INTEREST   Section 3.01. Repayment.  There will be no scheduled repayments of principal on the Loans  prior to the Maturity Date.  The entire outstanding principal amount of the Loans, together with all  accrued and unpaid interest thereon, will be due and payable on the Maturity Date.  

 

  -30-   Section 3.02. Interest.   (a) Interest Generally.  Borrower agrees to pay to the Lenders interest in cash on the  outstanding principal amount of the Loans for each Interest Period at a rate per annum equal to the  sum of (i) LIBOR plus (ii) the Applicable Margin.   (b) LIBOR Not Determinable.  If on or before the day on which LIBOR is to be  determined, the Majority Lenders reasonably determine that (i) LIBOR cannot be determined for  any reason, (ii) LIBOR will not adequately and fairly reflect the cost of maintaining the Loans or  (iii) Dollar deposits in the principal amount of the Loans are not available in the London interbank  market, the Majority Lenders shall, as soon as practicable thereafter, give written notice of such  determination to Borrower and the Administrative Agent.  Upon any such determination, LIBOR  shall be LIBOR as of the end of the immediately preceding Interest Period and shall at all times  thereafter bear interest at LIBOR as of the end of the immediately preceding Interest Period.  Each  determination by the Majority Lenders hereunder shall be conclusive and binding absent manifest  error.   (c) Replacement to LIBOR.  If at any time the Administrative Agent reasonably  determines (which determination shall be conclusive absent manifest error) that (i) the  circumstances set forth in clause (b)(i) of this Section have arisen and such circumstances are  unlikely to be temporary or (ii) the circumstances set forth in clause (b)(i) of this Section have not  arisen but the supervisor for the administrator of LIBOR has made a public statement identifying  a specific date after which LIBOR shall no longer be used for determining interest rates for loans,  then the Administrative Agent and Borrower shall endeavor to establish an alternate rate of interest  to LIBOR that gives due consideration to the then-prevailing market convention for determining a  rate of interest for syndicated loans in the United States at such time, and shall enter into an  amendment to this Agreement to reflect such alternate rate of interest and such other related  changes to this Agreement as may be applicable; provided that, if such alternate rate of interest  shall be less than 1.75%, such rate shall be deemed to be 1.75% for the purposes of this Agreement.   Notwithstanding anything to the contrary in Section 13.04, such amendment shall become  effective without any further action or consent of any other party to this Agreement so long as the  Administrative Agent shall not have received, within five (5) Business Days of the date notice of  such alternate rate of interest is provided to the Lenders, a written notice from the Majority Lenders  stating that such Lenders object to such amendment.   (d) Default Interest.  Notwithstanding the foregoing, upon the occurrence and during the  continuance of any Event of Default, the Applicable Margin shall increase automatically by 4.00%  per annum (the interest rate, as increased pursuant to this Section 3.02(d), being the “Default  Rate”).  Notwithstanding any other provision herein, if interest is required to be paid at the Default  Rate, it shall also be paid entirely in cash.  If any Obligation is not paid when due under any  applicable Loan Document, the amount thereof shall accrue interest at the Default Rate. Payment  or acceptance of the increased rates of interest provided for in this Section 3.02(d) is not a permitted  alternative to timely payment and shall not constitute a waiver of any Default or otherwise  prejudice or limit any rights or remedies of the Administrative Agent or any Lender.  

 

  -31-   (e) Payment Dates.  Accrued interest on the Loans shall be payable in arrears on each  Payment Date with respect to the most recently completed Interest Period in cash, and upon the  payment or prepayment of the Loans (on the principal amount being so paid or prepaid); provided  that interest payable at the Default Rate shall be payable from time to time on demand by the  Majority Lenders.   (f) Maximum Rate.  Notwithstanding any other provision of this Agreement, in no event  will any interest or rates referred to herein exceed the maximum interest rate permitted by  applicable Law.  If such maximum interest rate would be exceeded by the terms hereof, the rates  of interest payable hereunder will be reduced to the extent necessary so that such rates (together  with any fees or other amounts which are construed by a court of competent jurisdiction to be  interest or in the nature of interest) equal the maximum interest rate permitted by applicable Law  and any overpayment of interest received by the Lenders before such rates are so construed will  be applied, forthwith after determination of such overpayment, to pay all then outstanding interest,  and thereafter to pay outstanding principal.   Section 3.03. Prepayments.   (a) Optional Prepayments.  (i) Borrower shall have the right to optionally prepay in  whole or in part (in a minimum amount of $500,000 and integral multiples of $100,000 in excess  of that amount for each partial prepayment, or, if less, the entire outstanding principal amount of  the Loans) the outstanding principal amount of the Loans on any Business Day (a “Redemption  Date”) for an amount equal to the sum of (x) the aggregate principal amount of the Loans being  prepaid, (y) the prepayment premium set forth in clause (ii) below (the “Prepayment Premium”)  and (z) any accrued but unpaid interest in respect of the aggregate principal amount of the Loans  being prepaid (such aggregate amount, the “Redemption Price”).  The applicable Prepayment  Premium shall be an amount calculated pursuant to Section 3.03(a)(ii).   (ii) If the Redemption Date occurs:  (A) on or prior to the first anniversary of the Closing Date, the  Prepayment Premium shall be an amount equal to seven percent (7%) of the  aggregate outstanding principal amount of the Loans being prepaid on such  Redemption Date;  (B) after the first anniversary of the Closing Date and on or prior to the  second anniversary of the Closing Date, the Prepayment Premium shall be an  amount equal to six percent (6%) of the aggregate outstanding principal amount of  the Loans being prepaid on such Redemption Date;  (C) after the second anniversary of the Closing Date and on or prior to  the third anniversary of the Closing Date, the Prepayment Premium shall be an  

 

  -32-  amount equal to four percent (4%) of the aggregate outstanding principal amount  of the Loans being prepaid on such Redemption Date;  (D) after the third anniversary of the Closing Date and on or prior to the  fourth anniversary of the Closing Date, the Prepayment Premium shall be an  amount equal to three percent (3%) of the aggregate outstanding principal amount  of the Loans being prepaid on such Redemption Date; and  (E) after the fourth anniversary of the Closing Date and prior to the  Stated Maturity Date, the Prepayment Premium shall be an amount equal to two  percent (2%) of the aggregate outstanding principal amount of the Loans being  prepaid on such Redemption Date.    No Prepayment Premium shall be due with respect to repayment of the Loans on  the Stated Maturity Date.  (iii) Payment of any Prepayment Premium under this Section 3.03 constitutes  liquidated damages, not unmatured interest or a penalty, as the actual amount of damages  to the Lenders as a result of the relevant triggering event, prepayment or repayment would  be impracticable and extremely difficult to ascertain.  Accordingly, any Prepayment  Premium hereunder is provided by mutual agreement of the Obligors and the Lenders as a  reasonable estimation and calculation of such actual lost profits and other actual damages  of the Lenders.  Without limiting the generality of the foregoing, it is understood and agreed  that upon the occurrence of any prepayment event, any Prepayment Premium shall be  automatically and immediately due and payable as though any prepaid or repaid portion of  the Loans were voluntarily prepaid as of such date and shall constitute part of the  Obligations secured by the Collateral.  Any Prepayment Premium shall also be  automatically and immediately due and payable if the Loans are satisfied or released by  foreclosure (whether by power of judicial proceeding or otherwise), deed in lieu of  foreclosure or by any other means.  EACH OBLIGOR HEREBY EXPRESSLY WAIVES  (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF  ANY PRESENT OR FUTURE STATUTE OR OTHER LAW THAT PROHIBITS OR  MAY PROHIBIT THE COLLECTION OF THE FOREGOING PREPAYMENT  PREMIUM IN CONNECTION WITH ANY SUCH EVENTS.  Borrower and the other  Obligors expressly agree (to the fullest extent it and they may lawfully do so) that with  respect to any Prepayment Premium payable under the terms of this Agreement: (A) such  Prepayment Premium is reasonable and is the product of an arm’s length transaction  between sophisticated business parties, ably represented by counsel; (B) such Prepayment  Premium shall be payable notwithstanding the then-prevailing market rates at the time  payment is made; (C) there has been a course of conduct between the Lenders and the  Obligors giving specific consideration in this transaction for such agreement to pay such  Prepayment Premium; and (D) the Obligors shall be estopped hereafter from claiming  differently than as agreed to in this paragraph.  The Obligors expressly acknowledge that  their agreement to pay such Prepayment Premium as herein described is a material  inducement to the Lenders to provide the Commitments and to make the Loans.  

 

  -33-   (b) Mandatory Prepayments.  Borrower shall prepay the Loans in amounts as provided  below, plus the Prepayment Premium on the principal amount of the Loans being prepaid  (calculated in accordance with Section 3.03(a)(ii), it being agreed that the relevant payment date  shall be deemed to be the “Redemption Date” for purposes of such calculation), plus any accrued  but unpaid interest and fees then due and owing, as follows:   (i) In the event of any Casualty Event, an amount equal to 100% of the Net  Cash Proceeds received by any Obligor with respect thereto; provided, however, so long  as no Default has occurred and is continuing, within one hundred eighty (180) days after  receipt of such Net Cash Proceeds, the Obligors may apply the Net Cash Proceeds of any  casualty policy up to $1,000,000 with respect to any loss, but not exceeding $2,000,000 in  the aggregate for all losses under all casualty policies during the term of this Agreement,  toward the replacement or repair of destroyed or damaged property; provided, further, that  any such replaced or repaired property shall be Collateral in which the Administrative  Agent for the benefit of the Lenders has been granted a security interest under the Security  Documents.   (ii) In the event any Obligor incurs Indebtedness other than Indebtedness that  is permitted by Section 9.01 hereof, 100% of the Net Cash Proceeds thereof received by  such Obligor.  For the avoidance of doubt, any partial prepayment made pursuant to this  Section 3.03(b)(ii) shall not be deemed to be a consent to any such incurrence of  Indebtedness or a cure or waiver of any Event of Default which occurs in connection  therewith, it being understood that any such Event of Default may only be waived with the  express consent of the Majority Lenders.   (iii) In the event any Obligor consummates an Asset Sale other than an Asset  Sale that is permitted by Section 9.09 hereof (other than Section 9.09(i)), 100% of the Net  Cash Proceeds received by such Obligor in connection with such Asset Sale; provided,  however, so long as no Default has occurred and is continuing, within one hundred eighty  (180) days after receipt of such Net Cash Proceeds, the Obligors may use such Net Cash  Proceeds not exceeding $500,000 in the aggregate for all Asset Sales during the term of  this Agreement, to purchase, replace, repair or restore properties or assets used in the  Obligors’ businesses; provided, further, that any such purchased, replaced, repaired or  restored property shall be Collateral in which the Administrative Agent for the benefit of  the Lenders has been granted a security interest under the Security Documents.  For the  avoidance of doubt, any partial prepayment made pursuant to this Section 3.03(b)(iii) shall  not be deemed to be a consent to any Asset Sale or a cure or waiver of any Event of Default  which occurs in connection therewith, it being understood that any such Event of Default  may only be waived with the express consent of the Majority Lenders.  

 

  -34-  ARTICLE 4    PAYMENTS   Section 4.01. Payments.   (a) Payments Generally.  Each payment of principal, interest and other amounts to be  made by the Obligors under this Agreement or any other Loan Document shall be made in Dollars,  in immediately available funds, without deduction, set off or counterclaim, to the deposit account  of the Administrative Agent specified to Borrower from time to time, not later than 2:00 p.m.  (Eastern time) on the date on which such payment shall become due (each such payment made  after such time on such due date to be deemed to have been made on the next succeeding Business  Day).   (b) Application of Payments.  Each payment under this Agreement or any other Loan  Document shall be applied in the following order of priority, with proceeds being applied to a  succeeding level of priority only if amounts owing pursuant to the immediately preceding level of  priority have been paid in full in cash:   (i) first, to the payment of any unpaid costs and expenses referred to in  Section 13.03(a) then due and owing;   (ii) second, in reduction of Borrower’s obligation to pay any unpaid interest and  any fees then due and owing including, without limitation, (x) interest payable pursuant to  Section 3.02(d) and (y) any Prepayment Premium, if applicable;   (iii) third, in reduction of Borrower’s obligation to pay any Claims or Losses  referred to in Section 13.03(b) then due and owing;   (iv) fourth, to the payment of unpaid principal of the Loans on a pro rata basis;   (v) fifth, in reduction of any other Obligation then due and owing; and   (vi) sixth, to Borrower or such other Persons as may lawfully be entitled to or  directed by Borrower to receive the remainder.  Unless otherwise directed by the Majority Lenders, all payments of principal, interest and fees  under this Agreement and the other Loan Documents shall be made by the Obligors to the Lenders  pro rata in accordance with the Lenders’ respective Proportionate Shares of such payments.   (c) Non-Business Days.  If the due date of any payment under this Agreement (whether  in respect of principal, interest, fees, costs or otherwise) would otherwise fall on a day that is not  a Business Day, such date shall be extended to the next succeeding Business Day, and, in the case  of any payment accruing interest, interest thereon shall be payable for the period of such extension.  

 

  -35-   Section 4.02. Computations.  All computations of interest and fees hereunder shall be  computed on the basis of a year of 360 days and actual days elapsed during the period for which  payable.   Section 4.03. Notices.  Each notice of optional prepayment shall be effective only if  received by the Lenders not later than 2:00 p.m. (Eastern time) on the date three (3) Business Days  prior to the date of prepayment.  Each notice of optional prepayment shall specify the amount to  be prepaid and the date of prepayment.   Section 4.04. Set-Off.   (a) Set-Off Generally.  Upon the occurrence and during the continuance of any Event of  Default, the Administrative Agent, the Lenders and each of their respective Affiliates are hereby  authorized at any time and from time to time, to the fullest extent permitted by Law, to set off and  apply any and all deposits (general or special, time or demand, provisional or final) at any time  held and other indebtedness at any time owing by the Lenders or such Affiliates to or for the credit  or the account of any Obligor against any and all of the Obligations, whether or not the Lenders  shall have made any demand and although such Obligations may be unmatured.  Any Person  exercising rights of set-off hereunder agrees to promptly notify Borrower after any such set-off  and application, provided that the failure to give such notice shall not affect the validity of such  set-off and application.  The rights of the Lenders and their respective Affiliates under this  Section 4.04 are in addition to other rights and remedies (including other rights of set-off) that the  Lenders and their respective Affiliates may have.   (b) Exercise of Rights Not Required.  Nothing contained herein shall require the  Administrative Agent, the Lenders or any of their respective Affiliates to exercise any such right  or shall affect the right of such Persons to exercise, and retain the benefits of exercising, any such  right with respect to any other indebtedness or obligation of any Obligor.  ARTICLE 5    YIELD PROTECTION   Section 5.01. Additional Costs.   (a) Change in Requirements of Law Generally.  If, on or after the date hereof, the  adoption of any Requirement of Law, or any change in any Requirement of Law, or any change in  the interpretation or administration thereof by any court or other Governmental Authority charged  with the interpretation or administration thereof, or compliance by any Lender (or its lending  office) with any request or directive (whether or not having the force of law) of any such  Governmental Authority, shall impose, modify or deem applicable any reserve (including any such  requirement imposed by the Board of Governors of the Federal Reserve System), special deposit,  contribution, insurance assessment or similar requirement, in each case that becomes effective  after the date hereof, against assets of, deposits with or for the account of, or credit extended by, a  Lender (or its lending office) or shall impose on a Lender (or its lending office) any other condition  affecting the Loans or the Commitment, not as a result of any action or inaction on the part of such  

 

  -36-  Lender, and the result of any of the foregoing is to increase the cost to any Lender of making or  maintaining its portion of the Loans, or to reduce the amount of any sum received or receivable by  any Lender under this Agreement or any other Loan Document, by an amount reasonably deemed  by such Lender in good faith to be material (other than (i) Indemnified Taxes, (ii) Taxes described  in clauses (b) through (d) of the definition of “Excluded Taxes” and (iii) Connection Income  Taxes), then Borrower shall, without duplication, pay to such Lender on demand therefor such  additional amount or amounts as will compensate such Lender for such increased cost or reduction.   Notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and  Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in  connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank  for International Settlements, the Basel Committee on Banking Supervision (or any successor or  similar authority) or the United States or foreign regulatory authorities, in each case pursuant to  Basel III, shall in each case be deemed to constitute a change in Requirements of Law for all  purposes of this Section 5.01, regardless of the date enacted, adopted or issued.   (b) Change in Capital Requirements.  If a Lender shall have determined that, on or after  the date hereof, the adoption of any Requirement of Law regarding capital adequacy, or any change  therein, or any change in the interpretation or administration thereof by any Governmental  Authority charged with the interpretation or administration thereof, or any request or directive  regarding capital adequacy (whether or not having the force of law) of any such Governmental  Authority, in each case that becomes effective after the date hereof, has or would have the effect  of reducing the rate of return on capital of a Lender (or its parent) as a consequence of a Lender’s  obligations hereunder or the Loans to a level below that which a Lender (or its parent) could have  achieved but for such adoption, change, request or directive by an amount reasonably deemed by  it to be material, then Borrower shall pay to such Lender on demand therefor such additional  amount or amounts as will compensate such Lender (or its parent) for such reduction.   (c) Notification by Lender.  The Lenders will promptly notify Borrower of any event of  which it has knowledge, occurring after the date hereof, which will entitle a Lender to  compensation pursuant to this Section 5.01.  Before giving any such notice pursuant to this  Section 5.01(c) such Lender shall designate a different lending office if such designation (x) will,  in the reasonable judgment of such Lender, avoid the need for, or reduce the amount of, such  compensation and (y) will not, in the reasonable judgment of such Lender, be materially  disadvantageous to such Lender.  A certificate of the Lender claiming compensation under this  Section 5.01, setting forth the amount or amounts to be paid to it hereunder, shall be conclusive  and binding on Borrower in the absence of manifest error.   Section 5.02. Illegality.  Notwithstanding any other provision of this Agreement, in the  event that on or after the date hereof the adoption of or any change in any Requirement of Law or  in the interpretation or application thereof by any competent Governmental Authority shall make  it unlawful for a Lender or its lending office to make or maintain the Loans (and, in the opinion of  such Lender, the designation of a different lending office would either not avoid such unlawfulness  or would be disadvantageous to such Lender), then such Lender shall promptly notify Borrower  thereof following which (a) the Lender’s Commitment shall be suspended until such time as such  Lender may again make and maintain the Loans hereunder and (b) if such Requirement of Law  shall so mandate, the Loans shall be prepaid by Borrower on or before such date as shall be  

 

  -37-  mandated by such Requirement of Law in an amount equal to the Redemption Price applicable on  the date of such prepayment in accordance with Section 3.03(a); provided that no Prepayment  Premium pursuant to Section 3.03(a)(ii) shall be due with respect thereto.   Section 5.03. Taxes.   (a) Payments Free of Taxes.  Any and all payments by or on account of any Obligation  shall be made without deduction or withholding for any Taxes, except as required by applicable  Law.  If any applicable Law (as determined in the good faith discretion of the Administrative  Agent) requires the deduction or withholding of any Tax from any such payment by an Obligor,  then such Obligor shall be entitled to make such deduction or withholding and shall timely pay the  full amount deducted or withheld to the relevant Governmental Authority in accordance with  applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by such Obligor shall  be increased as necessary so that after such deduction or withholding for Indemnified Taxes has  been made (including such deductions and withholdings for Indemnified Taxes applicable to  additional sums payable under this Section 5.03) the applicable Recipient receives an amount  equal to the sum it would have received had no such deduction or withholding for Indemnified  Taxes been made.  For purposes of this Section, the term “applicable Law” includes FATCA.   (b) Payment of Other Taxes by Borrower.  Borrower shall timely pay to the relevant  Governmental Authority in accordance with applicable Law, or at the option of the Administrative  Agent, timely reimburse it for, Other Taxes.   (c) Evidence of Payments.  As soon as practicable after any payment of Taxes by  Borrower to a Governmental Authority, as a withholding Tax pursuant to this Section 5.03,  Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt  issued by such Governmental Authority evidencing such payment, or a copy of the return reporting  such payment or other evidence of such payment reasonably satisfactory to the Administrative  Agent.   (d) Indemnification.  Borrower shall reimburse and indemnify each Recipient, within ten  (10) days after demand therefor, for the full amount of any Indemnified Taxes (including  Indemnified Taxes imposed or asserted on or attributable to amounts payable under this  Section 5.03) payable or paid by such Recipient or required to be withheld or deducted from a  payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto,  whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the  relevant Governmental Authority.  A certificate as to the amount of such payment or liability  delivered to Borrower by a Lender (with a copy to the Administrative Agent), or by the  Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent  manifest error.   (e) Indemnification by the Lender.  Each Lender shall severally indemnify the  Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes  attributable to such Lender (but only to the extent that Borrower has not already indemnified the  Administrative Agent for such Indemnified Taxes and without limiting the obligation of Borrower  to do so), and (ii) any Taxes attributable to such Lender, in each case, that are payable or paid by  

 

  -38-  the Administrative Agent in connection with any Loan Document, and any reasonable expenses  arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally  imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of  such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive  absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and  apply any and all amounts at any time owing to such Lender under any Loan Document or  otherwise payable by the Administrative Agent to such Lender from any other source against any  amount due to the Administrative Agent under this paragraph (e).   (f) Status of Lenders.  (i) Any Lender that is entitled to an exemption from, or reduction  of withholding Tax with respect to payments made under any Loan Document shall deliver to  Borrower and the Administrative Agent at the time or times reasonably requested by Borrower or  the Administrative Agent such properly completed and executed documentation reasonably  requested by Borrower or the Administrative Agent as will permit such payments to be made  without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably  requested by Borrower or the Administrative Agent, shall deliver such other documentation  prescribed by applicable Law or as reasonably requested by Borrower or the Administrative Agent  as will enable Borrower or the Administrative Agent to determine whether or not such Lender is  subject to backup withholding or information reporting requirements.  Notwithstanding anything  to the contrary in the preceding two sentences, the completion, execution and submission of such  documentation (other than such documentation set forth in Section 5.03(f)(ii)(A), (B) or (D)) shall  not be required if in the Lender’s reasonable judgment such completion, execution or submission  would subject such Lender to any material unreimbursed cost or expense or would materially  prejudice the legal or commercial position of such Lender.   (ii) Without limiting the generality of the foregoing:   (A) any Lender that is a U.S. Person shall deliver to Borrower and the  Administrative Agent on or prior to the date on which such Lender becomes a Lender under  this Agreement (and from time to time thereafter upon the reasonable request of Borrower  or the Administrative Agent), duly completed, valid, executed copies of IRS Form W-9 (or  successor form) certifying that such Lender is exempt from U.S. Federal backup  withholding Tax;   (B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to Borrower and the Administrative Agent (in such number of copies as shall be requested  by the Recipient) on or prior to the date on which such Foreign Lender becomes a Lender  under this Agreement (and from time to time thereafter upon the reasonable request of  Borrower or the Administrative Agent), whichever of the following is applicable:   (1) in the case of a Foreign Lender claiming the benefits of an income  Tax treaty to which the United States is a party (x) with respect to payments of  interest under any Loan Document, duly completed, valid executed copies of IRS  Form W-8BEN (or successor form) or IRS Form W-8BEN-E (or successor form)  establishing an exemption from, or reduction of, U.S. Federal withholding Tax  pursuant to the “interest” article of such Tax treaty and (y) with respect to any other  

 

  -39-  applicable payments under any Loan Document, duly completed, valid, executed  originals of IRS Form W-8BEN (or successor form) or IRS Form W-8BEN-E (or  successor form) establishing an exemption from, or reduction of, U.S. Federal  withholding Tax pursuant to the “business profits” or “other income” article of such  Tax treaty;   (2) duly completed, valid, executed copies of IRS Form W-8ECI (or  successor form);   (3) in the case of a Foreign Lender claiming the benefits of the  exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate  substantially in the form of Exhibit D to the effect that such Foreign Lender is not  a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent  shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of the Code,  or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code  (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form  W-8BEN (or successor form) or IRS Form W-8BEN-E (or successor form); or   (4) to the extent a Foreign Lender is not the beneficial owner, duly  completed, valid, executed copies of IRS Form W-8IMY (or successor form),  accompanied by IRS Form W-8ECI (or successor form), IRS Form W-8BEN (or  successor form), IRS Form W-8BEN-E (or successor form), a U.S. Tax Compliance  Certificate, IRS Form W-9 (or successor form), and/or other certification  documents from each beneficial owner, as applicable; provided that if the Foreign  Lender is a partnership and one or more direct or indirect partners of such Foreign  Lender are claiming the portfolio interest exemption, such Foreign Lender may  provide a U.S. Tax Compliance Certificate on behalf of each such direct and  indirect partner;   (C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver  to Borrower and the Administrative Agent (in such number of copies as shall be requested  by the Recipient) on or prior to the date on which such Foreign Lender becomes a Lender  under this Agreement (and from time to time thereafter upon the reasonable request of  Borrower or the Administrative Agent), executed copies of any other form prescribed by  applicable Law as a basis for claiming exemption from or a reduction in U.S. Federal  withholding Tax, duly completed, together with such supplementary documentation as may  be prescribed by applicable Law to permit Borrower or the Administrative Agent to  determine the withholding or deduction required to be made; and   (D) if a payment made to a Lender under any Loan Document would be subject  to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply  with the applicable reporting requirements of FATCA (including those contained in  Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to  Borrower and the Administrative Agent at the time or times prescribed by Law and at such  time or times reasonably requested by Borrower or the Administrative Agent such  documentation prescribed by applicable Law (including as prescribed by  

 

  -40-  Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably  requested by Borrower or the Administrative Agent as may be necessary for Borrower or  the Administrative Agent to comply with its obligations under FATCA and to determine  that such Lender has complied with such Lender’s obligations under FATCA or to  determine the amount, if any, to deduct and withhold from such payment.  Solely for  purposes of this clause (D), “FATCA” shall include any amendments made to FATCA  after the date of this Agreement.  Each Recipient agrees that if any form or certification it previously delivered expires or becomes  obsolete or inaccurate in any respect, it shall promptly update such form or certification or  promptly notify Borrower and the Administrative Agent in writing of its legal inability to do so.   (g) Treatment of Certain Refunds.  If any party to this Agreement determines, in its sole  discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been  indemnified pursuant to this Section 5.03 (including by the payment of additional amounts  pursuant to this Section 5.03), it shall pay to the indemnifying party an amount equal to such refund  (but only to the extent of indemnity payments made under this Section with respect to the Taxes  giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified  party and without interest (other than any interest paid by the relevant Governmental Authority  with respect to such refund).  Such indemnifying party, upon the written request of such  indemnified party, shall repay to such indemnified party the amount paid over pursuant to this  paragraph (plus any penalties, interest or other charges imposed by the relevant Governmental  Authority) in the event that such indemnified party is required to repay such refund to such  Governmental Authority.  Notwithstanding anything to the contrary in this Section 5.03(g), in no  event will the indemnified party be required to pay any amount to an indemnifying party pursuant  to this Section 5.03(g) the payment of which would place the indemnified party in a less favorable  net after-Tax position than the indemnified party would have been in if the Tax subject to  indemnification and giving rise to such refund had not been deducted, withheld or otherwise  imposed and the indemnification payments or additional amounts giving rise to such refund had  never been paid.  This Section 5.03(g) shall not be construed to require any indemnified party to  make available its Tax returns (or any other information relating to its Taxes that it deems  confidential) to the indemnifying party or any other Person.   (h) Mitigation Obligations.  If Borrower is required to pay any Indemnified Taxes or  additional amounts to any Lender or to any Governmental Authority for the account of any Lender  pursuant to Section 5.01 or this Section 5.03, then such Lender shall (at the request of Borrower)  use commercially reasonable efforts to designate a different lending office for funding or booking  its Loans hereunder or to assign and delegate its rights and obligations hereunder to another of its  offices, branches or Affiliates if, in the sole reasonable judgment of such Lender, such designation  or assignment and delegation would (i) eliminate or reduce amounts payable pursuant to  Section 5.01 or this Section 5.03, as the case may be, in the future, (ii) not subject such Lender to  any unreimbursed cost or expense and (iii) not otherwise be disadvantageous to such Lender.   (i) Survival.  Each party’s obligations under this Article 5 shall survive the resignation  or replacement of the Administrative Agent or any assignment of rights by, or the replacement of,  

 

  -41-  a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all  Obligations under any Loan Document.   Section 5.04. Delay in Requests.  Failure or delay on the part of any Lender to demand  compensation pursuant to this Article 5 shall not constitute a waiver of such Lender’s right to  demand such compensation; provided that Borrower shall not be required to compensate a Lender  pursuant to this Article for any increased costs incurred or reductions suffered more than six (6)  months prior to the date that such Lender notifies Borrower of the change in Law giving rise to  such increased costs or reductions, and of such Lender’s intention to claim compensation therefor  (except that, if the change in Law giving rise to such increased costs or reductions is retroactive,  then the six (6) month period referred to above shall be extended to include the period of retroactive  effect thereof).  ARTICLE 6    CONDITIONS PRECEDENT   Section 6.01. Conditions to Tranche A Loan; Closing Date.  The obligation of each Lender  to make the Tranche A Loan on the Closing Date shall not become effective until the following  conditions precedent shall have been reasonably satisfied or waived in writing by the  Administrative Agent (which satisfaction or waiver may be made simultaneously with the making  of the Tranche A Loan hereunder):   (a) Organization and Capitalization.  The organizational structure and pro- forma capitalization of the Obligors, after giving effect to the Transactions, as set forth on  Schedule 7.19 shall be satisfactory to the Administrative Agent.   (b) Terms of Material Agreements.  The Administrative Agent shall be satisfied  in its sole discretion with the terms and conditions of all of the Obligors’ Material  Agreements.   (c) No Law Restraining Transactions.  No applicable Law or regulation shall  restrain, prevent or, in the reasonable judgment of the Administrative Agent, impose  materially adverse conditions upon the Transactions.   (d) Lien Searches.  The Administrative Agent shall be satisfied with Lien  searches regarding the Obligors made prior to the Closing Date.   (e) Documentary Deliveries.  The Administrative Agent shall have received the  following documents, each of which shall be in form and substance satisfactory to the  Administrative Agent:   (i) Agreement.  This Agreement duly executed and delivered by  Borrower and each of the other parties hereto.   (ii) Security Documents.    

 

  -42-  (A) The Security Documents, including, without limitation, the  Security Agreement, each Short-Form IP Security Agreement and financing  statements, each in form and substance satisfactory to the Administrative  Agent and duly executed and delivered by each of the Obligors and the other  parties thereto.  (B) The Collateral Questionnaire, duly executed and delivered  by a Responsible Officer of Borrower, substantially in the form of Exhibit I  hereto and otherwise in form and substance satisfactory to the  Administrative Agent.  (C) Without limitation, all other documents and instruments  reasonably required to perfect the Administrative Agent’s Lien on, and  security interest in, the Collateral required to be delivered on or prior to the  Closing Date shall have been duly executed and delivered and be in proper  form for filing, and shall create in favor of the Administrative Agent, a  perfected Lien on, and security interest in, the Collateral, subject to no Liens  other than Permitted Liens.   (iii) Note.  Any Notes requested in accordance with Section 2.04.   (iv) Approvals.  Borrower shall certify to the Administrative Agent that  all material licenses, consents, authorizations and approvals of, and notices to and  filings and registrations with, any Governmental Authority (including all foreign  exchange approvals) in connection with the Transactions have been made or  obtained, and all material third-party consents and approvals, necessary in  connection with the execution, delivery and performance by the Obligors of the  Loan Documents and the Transactions have been obtained.   (v) Organizational Documents. (A) Certified copies of the  Organizational Documents of each Obligor and of resolutions of the Board (or  similar governing body) of each Obligor approving and authorizing the execution,  delivery and performance of this Agreement and each of the other Loan Documents  to which it is a party, certified as of the Closing Date by a Responsible Officer of  such Obligor as being in full force and effect without modification or amendment;  (B) a good standing certificate and/or compliance certificate from the applicable  Governmental Authority of each Obligor’s (x) jurisdiction of incorporation and (y)  jurisdiction(s) in which it is qualified as a foreign corporation or other entity to do  business (except where failure to be in good standing would not, either individually  or in the aggregate, reasonably be expected to have a Material Adverse Effect),  each dated a recent date prior to the Closing Date; and (C) such other documents as  the Administrative Agent may reasonably request.   (vi) Incumbency Certificate.  A certificate of each Obligor as to the  authority, incumbency and specimen signatures of the persons who have executed  

 

  -43-  the Loan Documents and any other documents in connection herewith on behalf of  the Obligors.   (vii) Opinion of Counsel.  A favorable opinion, dated as of the Closing  Date, of Wiggin and Dana LLP, counsel to each Obligor in form reasonably  acceptable to the Administrative Agent and its counsel.   (viii) Evidence of Insurance.  Certificates from Borrower’s insurance  broker or other evidence satisfactory to the Administrative Agent that all insurance  required to be maintained pursuant to Section 8.05 is in full force and effect.   (ix) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(a)(ii) duly executed and  delivered by a Responsible Officer of Borrower, in form and substance satisfactory  to the Administrative Agent.   (f) Due Diligence.  The Administrative Agent shall have received and be  satisfied with all due diligence regarding the Obligors (including without limitation  historical financial statements, Projections, technical, operational, legal, intellectual  property, commercial market forecasts, clinical and regulatory assessments, supply chain,  securities, labor, Tax, litigation, environmental, reimbursement and regulatory authority  matters) in its sole discretion.   (g) Indebtedness.  As of the Closing Date, after giving effect to the  Transactions, no Obligor shall have Indebtedness other than the Obligations and any  Indebtedness specified on Schedule 7.13A.  All amounts due or outstanding in respect of  any Indebtedness other than the Obligations and any Indebtedness specified on  Schedule 7.13A shall have been repaid in full, all commitments (if any) in respect thereof  terminated, all guarantees (if any) thereof discharged and released and all security therefor  (if any) released, together with all fees and other amounts owing thereon, or documentation  in form and substance satisfactory to the Administrative Agent to effect such release upon  such repayment and termination shall have been delivered to the Administrative Agent.   (h) Closing Fees, Expenses, Etc.  The Lenders and their Affiliates shall have  received for their own account, the Closing Fee and all fees, costs and expenses due  (including applicable attorney costs and the reasonable and documented out-of-pocket fees  and expenses of any other advisors to the Lenders) and payable pursuant to Section 13.03,  after deducting therefrom the Expense Deposit.   (i) Warrant Certificate.  The Administrative Agent shall have received the  executed Warrant Certificate, dated as of the Closing Date.   (j) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Closing Date; provided that to the extent that such  representations and warranties specifically refer to an earlier date, they shall be true and  

 

  -44-  correct in all material respects as of such earlier date; provided further that any  representation and warranty that is qualified as to “materiality”, “Material Adverse Effect”  or similar language shall be true and correct (after giving effect to any qualification therein)  in all respects.   (k) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom.   (l)  Miscellaneous.  The Administrative Agent and each Lender shall have  received such other opinions, instruments, certificates and documents as the Administrative  Agent or such Lender shall have reasonably requested with prior notice to Borrower.   (m) Equity Raise.  Borrower shall have completed the Series D preferred equity  raise on terms and provisions reasonably satisfactory to the Administrative Agent, which  results in minimum gross cash proceeds to Borrower of at least $75,000,000.   Section 6.02. Conditions to Tranche B Loan; Tranche B Loan Borrowing Date.  The  obligation of each Lender to make the Tranche B Loan on the Tranche B Loan Borrowing Date  shall not become effective until the following conditions precedent shall have been satisfied or  waived in writing by the Administrative Agent (which satisfaction or waiver may be made  simultaneously with the making of the Tranche B Loan hereunder):   (a) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(b)(ii) requesting the Borrowing of the  Tranche B Loan duly executed by a Responsible Officer of Borrower and Borrower’s  updated Schedules to this Agreement (if any), in form and substance satisfactory to the  Administrative Agent.   (b) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Tranche B Loan Borrowing Date; provided that to the  extent that such representations and warranties specifically refer to an earlier date, they  shall be true and correct in all material respects as of such earlier date; provided further  that any representation and warranty that is qualified as to “materiality”, “Material Adverse  Effect” or similar language shall be true and correct (after giving effect to any qualification  therein) in all respects.   (c) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom.   Section 6.03. Conditions to Tranche C Loan; Tranche C Loan Borrowing Date.  The  obligation of each Lender to make the Tranche C Loan on the Tranche C Loan Borrowing Date  shall not become effective until the following conditions precedent shall have been satisfied or  

 

  -45-  waived in writing by the Administrative Agent (which satisfaction or waiver may be made  simultaneously with the making of the Tranche C Loan hereunder):   (a) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(c)(ii) requesting the Borrowing of the  Tranche C Loan duly executed by a Responsible Officer of Borrower and Borrower’s  updated Schedules to this Agreement (if any), in form and substance satisfactory to the  Administrative Agent.   (b) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Tranche C Loan Borrowing Date; provided that to the  extent that such representations and warranties specifically refer to an earlier date, they  shall be true and correct in all material respects as of such earlier date; provided further  that any representation and warranty that is qualified as to “materiality”, “Material Adverse  Effect” or similar language shall be true and correct (after giving effect to any qualification  therein) in all respects.   (c) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom.   (d) Expenses, Etc.  The Lenders and their Affiliates shall have received for their  own account, all fees, costs and expenses due (including applicable attorney costs and the  reasonable and documented out-of-pocket fees and expenses of any other advisors to the  Lenders) and payable pursuant to Section 13.03.   Section 6.04. Conditions to Tranche D Loan; Tranche D Loan Borrowing Date.  The  obligation of each Lender to make the Tranche D Loan on the Tranche D Loan Borrowing Date  shall not become effective until the following conditions precedent shall have been satisfied or  waived in writing by the Administrative Agent (which satisfaction or waiver may be made  simultaneously with the making of the Tranche D Loan hereunder):   (a) Borrowing Notice.  The Administrative Agent shall have received a  Borrowing Notice in accordance with Section 2.01(d)(ii) requesting the Borrowing of the  Tranche D Loan duly executed by a Responsible Officer of Borrower and Borrower’s  updated Schedules to this Agreement (if any), in form and substance satisfactory to the  Administrative Agent.   (b) Representations and Warranties.  The representations and warranties of the  Obligors contained in Article 7 or any other Loan Document shall be true and correct in all  material respects on and as of the Tranche D Loan Borrowing Date; provided that to the  extent that such representations and warranties specifically refer to an earlier date, they  shall be true and correct in all material respects as of such earlier date; provided further  that any representation and warranty that is qualified as to “materiality”, “Material Adverse  Effect” or similar language shall be true and correct (after giving effect to any qualification  therein) in all respects.  

 

  -46-   (c) No Default.  No Default shall exist, or would result from such proposed  Borrowing or from the application of the proceeds therefrom.   (d) Officer’s Certificate.  A certificate, dated as of the Tranche D Borrowing  Date and signed by a Responsible Officer of Borrower, confirming compliance with the  conditions set forth in this Section 6.04.   (e) Milestone.  The Administrative Agent shall have received evidence  satisfactory to the Administrative Agent that Borrower is in pro-forma compliance with the  revenue covenant in Section 8.15(b) for the fiscal quarter ending March 31, 2022.   (f) Expenses, Etc.  The Lenders and their Affiliates shall have received for their  own account, all fees, costs and expenses due (including applicable attorney costs and the  reasonable and documented out-of-pocket fees and expenses of any other advisors to the  Lenders) and payable pursuant to Section 13.03.  The borrowing of the Loans shall constitute a certification by Borrower to the effect that the  conditions set forth in Section 6.01, Section 6.02, Section 6.03 and Section 6.04, as applicable,  have been fulfilled as of the Closing Date, the Tranche B Loan Borrowing Date, the Tranche C  Loan Borrowing Date or the Tranche D Loan Borrowing Date, or waived by the Administrative  Agent on behalf of the Lenders, as applicable.  ARTICLE 7    REPRESENTATIONS AND WARRANTIES  In order to induce the Lenders to enter into this Agreement and to extend the Loans  hereunder, each Obligor represents and warrants to the Administrative Agent and the Lenders, on  the Closing Date, on the Tranche B Loan Borrowing Date, on the Tranche C Loan Borrowing Date  and on the Tranche D Loan Borrowing Date, as applicable, that the following statements are true  and correct:   Section 7.01. Power and Authority.  Each Obligor and each of its Subsidiaries (a) is duly  organized, validly existing and in good standing under the Laws of its jurisdiction of organization,  (b) has all requisite corporate (or equivalent) power, and has all material governmental licenses,  authorizations, consents and approvals necessary to own its assets and carry on its business as now  being or as proposed to be conducted except to the extent that failure to have the same would not  reasonably be expected to have a Material Adverse Effect, (c) is qualified to do business and is in  good standing in all jurisdictions in which the nature of the business conducted by it makes such  qualification necessary except where failure to so qualify would not (either individually or in the  aggregate) reasonably be expected to have a Material Adverse Effect, and (d) has full power,  authority and legal right to make and perform each of the Loan Documents and, in the case of  Borrower, to borrow the Loans hereunder.   Section 7.02. Authorization; Enforceability.  The Transactions are within each Obligor’s  corporate (or equivalent) powers and have been duly authorized by all necessary corporate (or  

 

  -47-  equivalent) action and, if required, by all necessary shareholder or other equity holder action.  The  Loan Documents have been duly executed and delivered by each Obligor party thereto and  constitutes, and each of the other Loan Documents to which it is a party when executed and  delivered by such Obligor will constitute, a legal, valid and binding obligation of such Obligor,  enforceable against each Obligor in accordance with its terms, except as such enforceability may  be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar Laws of general  applicability affecting the enforcement of creditors’ rights and (b) the application of general  principles of equity (regardless of whether such enforceability is considered in a proceeding in  equity or at law).   Section 7.03. Governmental and Other Approvals; No Conflicts.  The Transactions (a) do  not require any consent or approval of, registration or filing with, or any other action by, any  Governmental Authority or any other Person, except for (i) such as have been obtained or made  and are in full force and effect, (ii) filings and recordings in respect of perfecting or recording the  Liens created pursuant to the Security Documents and (iii) those consents listed on Schedule 7.03,  (b) will not violate any Requirement of Law or the Organizational Documents of any Obligor or  any order of any Governmental Authority, other than any such violations that, individually or in  the aggregate, would not reasonably be expected to have a Material Adverse Effect, (c) will not  violate or result in a default under any Material Agreement, or give rise to a right thereunder to  require any payment to be made by any such Person, and (d) will not result in the creation or  imposition of any Lien (other than Permitted Liens) on any asset of any Obligor or any of its  Subsidiaries.   Section 7.04. Financial Statements; Projections; Material Adverse Change.   (a) Financial Statements.  Borrower has heretofore furnished to the Administrative Agent  certain financial statements as provided for in Section 8.01.  Such financial statements present  fairly, in all material respects, the financial position and results of operations and cash flows of the  Obligors as of such dates and for such periods substantially in accordance with GAAP, subject to  quarterly or year-end adjustments and the absence of footnotes.  No Obligor has any material  contingent liabilities or liabilities for taxes, long-term lease or unusual forward or long-term  commitments not disclosed in the aforementioned financial statements.   (b) Projections.  On and as of the Closing Date, the projections of the Obligors  (collectively, the “Projections”) are based on good faith estimates and assumptions made by the  management of Borrower; provided, the Projections are not to be viewed as facts and that actual  results during the period or periods covered by the Projections may differ from such Projections  and that the differences may be material; provided, further, as of the Closing Date, the management  of Borrower believes that the Projections are reasonable and attainable.   (c) No Material Adverse Change.  Since December 31, 2019, no event, circumstance or  change has occurred that has caused or evidences, either in individually or in the aggregate, a  Material Adverse Change.  

 

  -48-   Section 7.05. Properties.   (a) Property Generally.  Each Obligor has good and marketable fee simple title to, or  valid leasehold or license interests in, all its real and personal Property material to its business,  subject only to Permitted Liens and except as would not reasonably be expected to interfere with  its ability to conduct its business as currently conducted or to utilize such properties for their  intended purposes.     (b) Intellectual Property.  (i) Schedule 7.05(b) lists, with respect to each Obligor, all  United States and foreign registrations of and applications for Patents, Trademarks, Copyrights,  and industrial designs that are Obligor Intellectual Property, including the applicable jurisdiction,  registration or application number and date, as applicable thereto, a designation as to whether it is  Material Intellectual Property, and a designation as to whether it is licensed or owned by Obligor.   (ii) Each Obligor (A) owns or possesses all legal and beneficial rights, title and interest  in and to Material Intellectual Property designated on Schedule 7.05(b) as being owned by such  Obligor and (B) has the right to use the Material Intellectual Property licensed to such Obligor, in  each case free and clear of any Liens or Claims of any kind, other than Permitted Liens.   (iii) To Obligors’ knowledge, the Material Intellectual Property does not violate any  license or infringe any valid and enforceable Intellectual Property right of another.   (iv) Other than with respect to the Material Agreements, or as permitted by this  Agreement, the Obligors have not assigned or otherwise transferred ownership of, or agreed to  assign or otherwise transfer ownership of, any Material Intellectual Property, in whole or in part,  to any Person who is not an Obligor.   (v) Other than as set forth on Schedule 7.05(b), the Obligors have not received any  written communications, nor is there any pending or, to each Obligor’s knowledge, threatened  action in writing, suit, proceeding or claim in writing by another, alleging that any of the Obligors  has violated, infringed, diluted or misappropriated any Intellectual Property of another.   (vi) There is no pending or, to any Obligor’s knowledge, threatened action in writing, suit,  proceeding or claim in writing by another: (a) challenging an Obligor’s rights in or to any Material  Intellectual Property owned by such Obligor; or (b) challenging the validity, enforceability or  scope of any Material Intellectual Property owned by an Obligor.   (vii) Each Obligor has taken commercially reasonable precautions to protect the secrecy,  confidentiality and value of the Material Intellectual Property (including without limitation, by  requiring that all relevant current and former employees, contractors and consultants of the  Obligors execute written confidentiality and invention assignment Contracts).   (viii) Each Obligor has complied with the material terms of each Material Agreement  pursuant to which Intellectual Property has been licensed to the Obligors (which material terms  shall include, but not be limited to, pricing and duration of the agreement).  

 

  -49-   (ix) All maintenance fees, annuities, and the like due or payable on the Patents within  Material Intellectual Property have been timely paid or the failure to so pay was the result of an  intentional decision by the applicable Obligor, which would not reasonably be expected to result  in a Material Adverse Change.  All documents and instruments necessary to register or apply for  or renew registration of all Patents, Trademarks and Copyrights within the Material Intellectual  Property have been validly executed, delivered and filed in a timely manner with the United States  Patent and Trademark Office or the United States Copyright Office, as applicable.   (x) To each Obligor’s knowledge, there are no material defects in any of the Patents  within Material Intellectual Property and no such Patents within Material Intellectual Property  have ever been finally adjudicated to be invalid, unpatentable or unenforceable for any reason in  any administrative, arbitration, judicial or other proceeding.   (xi) To each Obligor’s knowledge, no Obligor has received any written notice asserting  that the Patents within the Material Intellectual Property are invalid, unpatentable or unenforceable  and, to each Obligor’s knowledge, no Obligor has engaged in any conduct, or omitted to perform  any necessary act, the result of which would invalidate or render unpatentable or unenforceable  any such Patent within the Material Intellectual Property.   (xii) Each employee and consultant has signed a written agreement assigning to the  applicable Obligor all intellectual property rights that are related to such Obligor’s business as now  conducted and as presently proposed to be conducted and confidentiality provisions protecting  trade secrets and confidentiality information of the Obligors.   (xiii) To the knowledge of each Obligor, no third party is infringing upon or  misappropriating, or violating any material license or agreement with such Obligor relating to any  Material Intellectual Property.   Section 7.06. No Actions or Proceedings.   (a) Litigation.  There is no litigation, investigation or enforcement proceeding pending  or threatened in writing with respect to any Obligor by or before any Governmental Authority or  arbitrator (i) that either individually or in the aggregate would reasonably be expected to have a  Material Adverse Effect or (ii) that involves this Agreement or the Transactions.   (b) Environmental Matters.  The operations and the real Property of the Obligors comply  with all applicable Environmental Laws, except to the extent the failure to so comply, either  individually or in the aggregate, would not reasonably be expected to have a Material Adverse  Effect.  To each Obligor’s knowledge, there have been no conditions, occurrences or release of  Hazardous Materials which would reasonably be expected to have a Material Adverse Effect.   (c) Labor Matters.  No Obligor has engaged in unfair labor practices and there are no  pending or, to any Obligor’s knowledge, threatened in writing labor actions, disputes, grievance  or arbitration proceedings involving the employees of any Obligor, in each case that would  reasonably be expected to have a Material Adverse Effect.  There is no material strike or work  stoppage in existence or threatened in writing against any Obligor.  

 

  -50-   Section 7.07. Compliance with Laws and Agreements.  Each Obligor is in compliance with  all Requirements of Law (including CLIA and Environmental Laws) and all Contracts binding  upon it or its Property, except (other than with respect to Material Intellectual Property) where the  failure to do so, individually or in the aggregate, would not reasonably be expected to result in a  Material Adverse Effect.   Section 7.08. Taxes.  Each Obligor has timely filed or caused to be filed all federal income  and other material Tax returns and reports required to have been filed and has paid or caused to be  paid all federal income and other material Taxes required to have been paid by it, except Taxes  that are being contested in good faith by appropriate proceedings and for which such Obligor has  set aside on its books adequate reserves with respect thereto substantially in accordance with  GAAP.   Section 7.09. Full Disclosure.  Borrower has disclosed to the Lenders all Material  Agreements to which any Obligor is party, and all other matters to its knowledge, that, individually  or in the aggregate, would reasonably be expected to result in a Material Adverse Effect.  None of  the reports, financial statements, certificates or other information furnished by or on behalf of the  Obligors to the Lenders in connection with the negotiation of this Agreement and the other Loan  Documents or delivered hereunder or thereunder (as modified or supplemented by other  information so furnished) contains any material misstatement of material fact or omits to state any  material fact necessary to make the statements therein, in the light of the circumstances under  which they were made, not misleading; provided that, with respect to projected financial  information, Borrower represents only that such information was prepared in good faith based  upon assumptions believed to be reasonable at the time.   Section 7.10. Regulation.   (a) Investment Company Act.  No Obligor is an “investment company” as defined in, or  subject to regulation under, the Investment Company Act of 1940.   (b) Margin Stock.  No Obligor is engaged principally, or as one of its important activities,  in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of  buying or carrying Margin Stock, and no part of the proceeds of the Loans will be used to buy or  carry any Margin Stock in violation of Regulation T, U or X.   Section 7.11. Solvency.  The Obligors, on a consolidated basis, are and, immediately after  giving effect to the Borrowings, the use of proceeds thereof, and the consummation of the  Transactions, will be, Solvent.   Section 7.12. Subsidiaries.  Except as set forth on Schedule 7.12 (as such Schedule may be  updated by Borrower from time to time), Borrower has no direct or indirect Subsidiaries.   Section 7.13. Indebtedness and Liens.  Set forth on Schedule 7.13A is a complete and  correct list of all Permitted Indebtedness of each Obligor described in Section 9.01(b) as of the  date hereof.  Set forth on Schedule 7.13B is a complete and correct list of all Permitted Liens  

 

  -51-  described in Section 9.02(b) granted by an Obligor with respect to its respective Property and  outstanding as of the date hereof.   Section 7.14. Material Agreements.  Set forth on Schedule 7.14 (as such Schedule may be  updated by Borrower from time to time) is a complete and correct list of (i) each Material  Agreement and (ii) each Contract creating or evidencing any Material Indebtedness, together with  a summary reference to the product or purpose of each such Material Agreement and such  Contract, to which an Obligor is a party.  Accurate and complete copies of each such Contract  listed on such schedule have been made available to the Lenders.  No Obligor is in default in any  material respect under any such Material Agreement or such Contract creating or evidencing any  Material Indebtedness listed on such schedule, and no Obligor has knowledge of any default in  any material respect by any counterparty to such Material Agreement or such Contract.  Except as  otherwise disclosed on Schedule 7.14 (as such Schedule may be updated by Borrower from time  to time), all material vendor purchase agreements and provider Contracts of the Obligors, and all  Material Agreements including a grant of rights under any Intellectual Property to an Obligor, are  in full force and effect without material modification from the form in which the same were  disclosed to the Lenders.   Section 7.15. Restrictive Agreements.  None of the Obligors is party to any Restrictive  Agreement, except (i) those listed on Schedule 7.15 or otherwise permitted under Section 9.11,  (ii) restrictions and conditions imposed by Law or by the Loan Documents, (iii) any stockholder  agreement or investor rights agreement, charter, by laws or other organizational documents of an  Obligor and (iv) limitations associated with Permitted Liens.   Section 7.16. Real Property.  No Obligor or any of its Subsidiaries owns or leases (as tenant  thereof) any real Property on the date hereof, except as described on Schedule 7.16.   Section 7.17. Pension and Other Plans.  Schedule 7.17 sets forth, as of the date hereof, a  complete and correct list of, and that separately identifies, (a) all Title IV Plans, (b) all  Multiemployer Plans and (c) all material Benefit Plans.  Each Benefit Plan, and each trust  thereunder, intended to qualify for Tax exempt status under Section 401 or 501 of the Code or  other Requirements of Law so qualifies.  Except for those that would not, in the aggregate, have a  Material Adverse Effect, (x) each Benefit Plan is in compliance with applicable provisions of  ERISA, the Code and other Requirements of Law, (y) there are no existing or pending (or to the  knowledge of any Obligor or Subsidiary thereof, threatened) claims (other than routine claims for  benefits in the normal course), sanctions, actions, lawsuits or other proceedings or investigation  involving any Benefit Plan to which any Obligor or Subsidiary thereof incurs or otherwise has or  would have an obligation or any liability or Claim and (z) no ERISA Event is reasonably expected  to occur.  Borrower and each of its ERISA Affiliates has met all applicable requirements under the  ERISA Funding Rules with respect to each Title IV Plan, and no waiver of the minimum funding  standards under the ERISA Funding Rules has been applied for or obtained.  As of the most recent  valuation date for any Title IV Plan, the funding target attainment percentage (as defined in  Section 430(d)(2) of the Code) is at least 60%, and neither Borrower nor any of its ERISA  Affiliates knows of any facts or circumstances that would reasonably be expected to cause the  funding target attainment percentage to fall below 60% as of the most recent valuation date.  As  of the date hereof, no ERISA Event has occurred in connection with which obligations and  

 

  -52-  liabilities (contingent or otherwise) remain outstanding.  No ERISA Affiliate would have any  Withdrawal Liability as a result of a complete withdrawal from any Multiemployer Plan on the  date this representation is made.   Section 7.18. Collateral; Security Interest.  Each Security Document is effective to create  in favor of the Administrative Agent for the benefit of the Lenders a legal, valid and enforceable  security interest in the Collateral subject thereto and each such security interest is perfected to the  extent required by (and has the priority required by) the applicable Security Document, subject to  Permitted Liens.  The Security Documents collectively are effective to create in favor of the  Administrative Agent for the benefit of the Lenders a legal, valid and enforceable security interest  in the Collateral, which upon the filing of financing statements and other similar statements filed  in the appropriate offices, such security interests are perfected security interests (subject only to  Permitted Liens) to the extent that such perfection may be obtained by such filing.   Section 7.19. Capitalization.  All of the issued and outstanding securities of each Obligor  have been duly authorized, are validly issued, fully paid, and non-assessable.  As of the Closing  Date and except as set forth on Schedule 7.19, there are no outstanding or authorized options,  warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts  or commitments that could require the Obligors to issue, sell, or otherwise cause to become  outstanding any of their ownership interests.  There are no outstanding or authorized stock  appreciation, phantom stock, profit participation, or similar rights with respect to the Obligors.   None of the Equity Interests in any Obligor has been mortgaged, assigned or pledged in favor of  any Person, other than pursuant to the Security Agreement.   Section 7.20. Insurance.  Each Obligor has obtained (and is maintaining), insurance for its  assets (including the Collateral) and business as required under the Loan Documents.   Section 7.21. Certain Fees.  Except as described on Schedule 7.21, no broker’s or finder’s  fee will be payable in connection with the execution and delivery of this Agreement.   Section 7.22. Sanctions Laws.  Obligors and, to the knowledge of the Obligors, any  director, officer or employee of an Obligor acting on behalf of the Obligors, are in compliance  with the Sanctions Laws.   Section 7.23. Anti-Corruption Laws.  No Obligor nor any of its Subsidiaries has, nor, to the  knowledge of any Responsible Officer of any Obligor, has any director, officer, agent or employee  of any Obligor acting on behalf of such Obligor (i) taken any action, directly or indirectly, that  would result in a violation by such Persons of the Anti-Corruption Laws, (ii) made, offered to  make, promised to make or authorized the payment or giving of, directly or indirectly, any  Prohibited Payment or (iii) been subject to any investigation by any Governmental Authority with  regard to any actual or alleged Prohibited Payment.   Section 7.24. Anti-Terrorism Laws.  The Obligors (i) have taken reasonable measures to  ensure compliance with applicable Economic Sanctions Laws and Anti-Terrorism Laws, (ii) are  not Designated Persons and (iii) have not used any part of the proceeds from any advance on behalf  of any Designated Person or has not used, directly by it or indirectly through any Subsidiary, such  

 

  -53-  proceeds in connection with any investment in, or any transactions or dealings with, any  Designated Person.  ARTICLE 8    AFFIRMATIVE COVENANTS AND FINANCIAL COVENANTS  Each Obligor covenants and agrees with the Lenders that, until the Commitments have  expired or been terminated and all Obligations (other than the Warrant Obligations and inchoate  indemnity obligations) have been paid in full in cash:   Section 8.01. Financial Statements and Other Information.  It will furnish to the  Administrative Agent for distribution to the Lenders:   (a) as soon as available and in any event within thirty-five (35) days after the  end of each month prior to a Qualified Public Offering, the consolidated balance sheet of  the Obligors as of the end of each such month, and the related consolidated statements of  income and cash flows of the Obligors for such month and the portion of the fiscal year  through the end of such month, all in reasonable detail and setting forth in comparative  form the figures for the corresponding period in the preceding fiscal year, together with a  certificate of a Responsible Officer of Borrower stating that such financial statements fairly  present in all material respects the financial condition of the Obligors as at such date and  the results of operations of the Obligors for the period ended on such date and have been  prepared substantially in accordance with GAAP consistently applied, subject to changes  resulting from normal, quarterly or year-end adjustments and except for the absence of  notes;   (b) as soon as available and in any event within forty-five (45) days after the  end of the first three fiscal quarters of each fiscal year, the consolidated balance sheet of  the Obligors as of the end of such quarter, and the related consolidated statements of  income and cash flows of the Obligors for such quarter and the portion of the fiscal year  through the end of such quarter, all in reasonable detail and setting forth in comparative  form the figures for the corresponding period in the preceding fiscal year, together with (i)  a certificate of a Responsible Officer of Borrower stating that such financial statements  fairly present in all material respects the financial condition of the Obligors as at such date  and the results of operations of the Obligors for the period ended on such date and have  been prepared substantially in accordance with GAAP consistently applied, subject to  changes resulting from normal quarterly or year-end adjustments and except for the  absence of footnotes and (ii) a management’s discussion and analysis of the financial  condition and results of operations, including the Obligors’ liquidity and capital resources;  provided that, if the Borrower is a Publicly Reporting Company, the Borrower’s filing of  a Quarterly Report on Form 10-Q with the SEC shall be deemed to satisfy the requirements  of this Section 8.01(b) on the date on which such report is first available via the SEC’s  EDGAR system or a successor system related thereto;  

 

  -54-   (c) as soon as available and in any event within one hundred fifty (150) days  after the end of each fiscal year, the consolidated balance sheet of the Obligors as of the  end of such fiscal year, and the related consolidated statements of income, shareholders’  equity and cash flows of the Obligors for such fiscal year, prepared substantially in  accordance with GAAP consistently applied, all in reasonable detail and setting forth in  comparative form the figures for the previous fiscal year, accompanied by (i) a report and  opinion thereon of Cohn Reznick LLP or another independent certified public accountant  acceptable to the Administrative Agent, which report and opinion shall be prepared in  accordance with generally accepted auditing standards and shall not be subject to any  “going concern” or like qualification or exception (other than solely with respect to, or  expressly resulting solely from, the repayment of the Loans on the Stated Maturity Date)  or any qualification or exception as to the scope of such audit and (ii) a management’s  discussion and analysis of the financial condition and results of operations, including the  Obligors’ liquidity and capital resources; provided that, if the Borrower is a Publicly  Reporting Company, the Borrower’s filing of a Yearly Report on Form 10-K with the SEC  shall be deemed to satisfy the requirements of this Section 8.01(c) on the date on which  such report is first available via the SEC’s EDGAR system or a successor system related  thereto;   (d) within thirty-five (35) days after the end of each month, a compliance  certificate of a Responsible Officer of Borrower as of the end of the applicable accounting  period (which delivery may, unless a Lender requests executed originals, be by electronic  communication including email and shall be deemed to be an original authentic counterpart  thereof for all purposes) in the form of Exhibit E (a “Compliance Certificate”) which, for  purposes of clarification, shall (i) demonstrate the Obligors’ compliance with  Section 8.15(a) in respect of such month, (ii) for each month end that coincides with the  end of a fiscal quarter of Borrower, state that the representations and warranties made by  the Obligors in Article 7 are true in all material respects on and as of the date thereof;  provided that to the extent that such representations and warranties specifically refer to an  earlier date, they shall be true and correct in all material respects as of such earlier date;  provided further that any representation and warranty that is qualified as to “materiality”,  “Material Adverse Effect” or similar language shall be true and correct (after giving effect  to any qualification therein) in all respects, (iii) for each month end that coincides with the  end of a fiscal quarter of Borrower, demonstrate Borrower’s compliance with Section  8.15(b) in respect of such fiscal quarter and (iv) for each month end that coincides with the  end of a fiscal year of Borrower, provide Obligors’ updated Schedules to this Agreement  (if any);   (e) promptly, and in any event within five (5) Business Days after receipt  thereof by an Obligor, copies of each notice or other correspondence received from any  securities regulator or exchange to the authority of which an Obligor is subject concerning  any investigation or possible investigation or other inquiry by such agency regarding  financial or other operational results of such Obligor;   (f) the information regarding insurance maintained by the Obligors as and  when required under Section 8.05;  

 

  -55-   (g) promptly following the Lenders’ written request at any time, proof of the  Obligors’ compliance with Section 8.15(a);   (h) within ten (10) days of delivery, copies of all periodic reports distributed by  Borrower to its shareholders generally; provided that (i) any such material may be redacted  by Borrower to exclude information relating to the Loan Documents or the Lenders and  (ii) the Lenders shall not be entitled to receive statements, reports and notices relating to  topics that (x) are subject to attorney-client privilege or (y) present a conflict of interest for  the Lenders;   (i) a financial forecast for the Obligors for each fiscal year, including  forecasted balance sheets, statements of income and cash flows of the Obligors, all of  which shall be prepared on a consolidated basis and delivered not later than February 28  of such fiscal year;   (j) promptly following any Lender’s written request, certification that such  Obligor is not a passive foreign investment company (“PFIC”) within the meaning of  Sections 1291 through 1297 of the Code, or, if such Obligor determines that it is a PFIC,  such information as would allow the Lender to make a qualified electing fund election with  respect to the stock of the Obligor;    (k) after Borrower becomes a Publicly Reporting Company, within five (5)  Business Days of filing, provide access (via posting and/or links on Borrower’s web site)  to all reports on Form 10-K and Form 10-Q filed with the SEC, any Governmental  Authority succeeding to any or all of the functions of the SEC or with any national  securities exchange; and within five (5) Business Days of filing, provide notice and access  (via posting and/or links on Borrower’s web site) to all reports on Form 8-K filed with the  SEC, and copies of (or access to, via posting and/or links on Borrower’s web site) all other  reports, proxy statements and other materials filed by Borrower with the SEC, any  Governmental Authority succeeding to any of the functions of the SEC or with any national  securities exchange;   (l) promptly after the receipt thereof, a copy of any “management letter”  received from its certified public accounts and the management’s response thereto; and   (m) such other information respecting the operations, properties, business or  condition (financial or otherwise) of the Obligors (including with respect to the Collateral)  as the Lenders may from time to time reasonably request.   Section 8.02. Notices of Material Events.  It will furnish to the Administrative Agent for  distribution to the Lenders written notice of the following promptly after a Responsible Officer of  an Obligor first learns of the existence of:   (a) the occurrence of any Default or Event of Default;  

 

  -56-   (b) the occurrence of any event with respect to any Obligor’s Property resulting  in a Loss, to the extent not covered by insurance, aggregating $250,000 or more;   (c) (i) any proposed Acquisition by any Obligor that would reasonably be  expected to result in environmental liability under Environmental Laws in excess of  $250,000, and (ii) in each case, to the extent that any of the following would reasonably be  expected to result in liability in excess of $250,000:  (A) spillage, leakage, discharge,  disposal, leaching, migration or release of any Hazardous Material required to be reported  to any Governmental Authority under applicable Environmental Laws, and (B) all actions,  suits, claims, notices of violation, hearings, investigations or proceedings pending, or  threatened in writing against or affecting any Obligor or any of its Subsidiaries or with  respect to the ownership, use, maintenance and operation of their respective businesses,  operations or properties, relating to Environmental Laws or Hazardous Material;   (d) the assertion of any environmental matter by any Person in writing against,  or with respect to the activities of, any Obligor or any of its Subsidiaries and any alleged  violation of or non-compliance with any Environmental Laws or any permits, licenses or  authorizations, in each case, which would reasonably be expected to involve damages in  excess of $250,000 other than any environmental matter or alleged violation that, if  adversely determined, would not (either individually or in the aggregate) have a Material  Adverse Effect;   (e) the filing or commencement of any action, suit or proceeding by or before  any arbitrator or Governmental Authority against or directly affecting any Obligor or any  of its Subsidiaries, in each case, that would reasonably be expected to result in a Material  Adverse Effect;   (f) (i) on or prior to any filing by any ERISA Affiliate of any notice of intent  to terminate any Title IV Plan, a copy of such notice and (ii) promptly, and in any event  within ten (10) days, after any Responsible Officer of any ERISA Affiliate knows or has  reason to know that a request for a minimum funding waiver under Section 412 of the Code  has been filed with respect to any Title IV Plan or Multiemployer Plan, a notice (which  may be made by telephone if promptly confirmed in writing) describing such waiver  request and any action that any ERISA Affiliate proposes to take with respect thereto,  together with a copy of any notice filed with the PBGC or the IRS pertaining thereto;   (g) within five (5) Business Days of obtaining written notice or knowledge  thereof, (i) the termination of any Material Agreement; (ii) the receipt by any Obligor or  any of its Subsidiaries of a written notice under any Material Agreement (and a copy  thereof) asserting a default by such Obligor or any of its Subsidiaries where such alleged  default would permit such counterparty to terminate such Material Agreement; (iii) the  entering into any new Material Agreement by an Obligor (and a copy thereof); or (iv) any  amendment to a Material Agreement that would be materially adverse to the Lenders (and  a copy thereof) (which includes, but is not limited to, any amendments to provisions  relating to pricing and term), provided that notices required under this subsection (g) may  

 

  -57-  be delivered with Borrower’s monthly Compliance Certificate unless any of the foregoing  events would reasonably be expected to have a Material Adverse Effect;   (h) any product recalls, safety alerts, corrections, withdrawals, marketing  suspensions, removals or the like conducted, to be undertaken or issued by any Obligor or  any of its Subsidiaries, whether or not at the request, demand or order of any Governmental  Authority;   (i) within five (5) Business Days of obtaining written notice or knowledge  thereof, any infringement or other violation by any Person of any Obligor Intellectual  Property that would reasonably be expected to result in a Material Adverse Effect;   (j) within five (5) Business Days of obtaining written notice or knowledge  thereof, a material licensing agreement or arrangement entered into by any Obligor or any  of its Subsidiaries in connection with any material infringement or alleged infringement of  the Intellectual Property of another Person;   (k) within five (5) Business Days of obtaining written notice or knowledge  thereof, any written claim by any Person that the conduct of any Obligor’s (or any  Subsidiary thereof) business, including the development, manufacture, use, sale or other  commercialization of any product, infringes any Intellectual Property of such Person,  except to the extent any such claim would not reasonably be expected to result in a Material  Adverse Effect;   (l) the reports and notices as and when required by the Security Documents;   (m) within thirty (30) days of the date thereof, or, if earlier, on the date of  delivery of any financial statements pursuant to Section 8.01, notice of any material change  in accounting policies or financial reporting practices by the Obligors;   (n) promptly after the occurrence thereof, notice of any labor controversy  resulting in or threatening to result in any strike, work stoppage, boycott, shutdown or other  material labor disruption against or involving an Obligor (or any Subsidiary thereof);   (o) any other development that results in, or would reasonably be expected to  result in, a Material Adverse Effect;   (p) concurrently with the delivery of financial statements under  Section 8.01(a), (b) or (c), the creation or other acquisition of any Intellectual Property by  any Obligor or any Subsidiary after the date hereof and during such prior fiscal year which  is registered or becomes registered or the subject of an application for registration with the  United States Copyright Office or the United States Patent and Trademark Office, as  applicable, or with any other equivalent foreign Governmental Authority; and   (q) any change to any Obligor’s ownership of Deposit Accounts, Securities  Accounts and Commodity Accounts, by delivering to the Lenders an updated Schedule 7  

 

  -58-  to the Security Agreement setting forth a complete and correct list of all such accounts as  of the date of such change.  Each notice delivered under this Section 8.02 shall be accompanied by a statement of a  Responsible Officer of Borrower setting forth in reasonable detail the event or development  requiring such notice and any action taken or proposed to be taken with respect thereto.  Notwithstanding any contrary provision of this Agreement or any other Loan Document  (including, without limitation, Sections 8.01 and 8.02), until such time as the Administrative Agent  provides written notice to Borrower that it no longer desires to receive information that constitutes  material non-public information, Borrower shall provide any information required pursuant to the  terms hereof, including any information that may be material non-public information, to the  Administrative Agent; provided, that notwithstanding the foregoing, Borrower shall at all times  comply with Section 8.01(d)(i)-(iii), 8.01(k) and 8.02(a).   Section 8.03. Existence; Maintenance of Properties, Etc.  (a) It will, and will cause each of  its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full  force and effect its legal existence; provided that the foregoing shall not prohibit any merger,  amalgamation, consolidation, liquidation or dissolution permitted under Section 9.03.   (b) It shall, and shall cause each of its Subsidiaries to, maintain and preserve all rights,  licenses, permits, privileges and franchises material to the conduct of its business, and maintain  and preserve all of its assets and properties necessary to the conduct of its business in good working  order and condition, ordinary wear and tear and damage from casualty or condemnation excepted.   (c) It shall, and shall cause each of its Subsidiaries to, use commercially reasonable  efforts to cause each new employee and contractor to execute and deliver a customary  confidentiality, non-disclosure and Intellectual Property assignment agreement that includes a  waiver of moral rights.   Section 8.04. Payment of Obligations.  It will, and will cause each of its Subsidiaries to,  pay and discharge (i) all federal income and other material Taxes, fees, assessments and  governmental charges or levies imposed upon it or upon its properties or assets prior to the date  on which penalties attach thereto, and all lawful claims for labor, materials and supplies which, if  unpaid, might become a Lien (other than a Permitted Lien) upon any properties or assets of any  Obligor, except to the extent such Taxes, fees, assessments or governmental charges or levies, or  such claims, are being contested in good faith by appropriate proceedings and are adequately  reserved against substantially in accordance with GAAP, (ii) all lawful claims which, if unpaid,  would by Law become a Lien upon its Property not constituting a Permitted Lien and (iii) all other  obligations if the failure to discharge such obligation would reasonably be expected to result in a  Material Adverse Effect.   Section 8.05. Insurance.  At its own cost and expense, it will, and will cause each of its  Subsidiaries, to obtain and maintain, with financially sound and reputable insurers, insurance of  the kinds, and in the amounts, as are consistent with customary practices and standards of its  industry in the same or similar locations, it being understood and agreed that the insurance held by  

 

  -59-  the Obligors on the Closing Date is deemed to fulfill this requirement on the date hereof.  All of  the insurance policies required pursuant to this Section 8.05 will name the Administrative Agent  as a “loss payee,” “additional insured” or “mortgagee,” as applicable and as its interests may  appear.  Borrower will use its commercially reasonable efforts to ensure, or to cause others to  ensure, that all insurance policies required pursuant to this Section 8.05 shall provide that they  shall not be terminated or cancelled nor shall any policy be materially changed in a manner adverse  to the insured Person without at least thirty (30) days’ written notice to insured Person and the  Administrative Agent.  Receipt of notice of termination or cancellation of any such insurance  policies shall entitle the Administrative Agent to renew any such policies, all in accordance with  the first sentence of this Section 8.05 or otherwise to obtain similar insurance in place of such  policies, in each case at the expense of Borrower (payable within three (3) Business Days of  Borrower’s receipt of written demand therefor) and, unless an Event of Default has occurred and  is continuing, with the prior written consent of Borrower (such consent not to be unreasonably  withheld).  The amount of any such expenses shall accrue interest at the Default Rate if not paid  when due and shall constitute “Obligations.” All of the insurance policies required hereby will be  evidenced by one or more certificates of insurance, together with appropriate loss payee or  additional insured clauses or endorsements in favor of the Administrative Agent as required by  this Section, delivered to the Administrative Agent on or before the Closing Date (or, with respect  to such endorsements, within the time period set forth in Section 8.19) and at such other times as  the Administrative Agent may request from time to time.   Section 8.06. Books and Records; Inspection Rights.  It will, and will cause each of its  Subsidiaries to, keep proper books of record and account in which full, true and correct entries are  made of all dealings and transactions in relation to its business and activities.  It will, and will  cause each of its Subsidiaries to, permit any representatives designated by the Administrative  Agent, upon reasonable prior notice and at reasonable times, to visit and inspect its properties, to  examine and make extracts from its books and records, and to discuss its affairs, finances and  condition with its officers and independent accountants, all at such reasonable times during normal  business hours and with reasonable advance notice as the Administrative Agent may request.  It  will, and will cause each of its Subsidiaries to, pay all reasonable and documented out-of-pocket  expenses incurred by the Administrative Agent (a) so long as no Default has occurred and is  continuing, for no more than two (2) such inspections each calendar year and (b) during a  continuing Default, all such inspections.   Section 8.07. Compliance with Laws.  (a) It will, and will cause each of its Subsidiaries to,  (i) comply in all material respects with all Requirements of Law (including Environmental Laws)  and (ii) comply in all material respects with all terms of outstanding Indebtedness and all Material  Agreements, except (other than with respect to Material Intellectual Property) where the failure to  do so, individually or in the aggregate, would not reasonably be expected to result in a Material  Adverse Effect.   (b) Each Obligor will maintain, and will cause each of its Subsidiaries to maintain, all  records required to be maintained by a Governmental Authority, except where failure to do so,  individually or in the aggregate, would not reasonably be expected to have a Material Adverse  Effect.  

 

  -60-   Section 8.08. Licenses.  It will, and will cause each of its Subsidiaries to, obtain and  maintain all licenses, authorizations, consents, filings, exemptions, registrations and other  Governmental Approvals necessary in connection with the execution, delivery and performance  of the Loan Documents, the consummation of the Transactions or the operation and conduct of its  business and ownership of its properties, except where failure to do so would not reasonably be  expected to have a Material Adverse Effect.   Section 8.09. Action under Environmental Laws.  It will, and will cause each of its  Subsidiaries to, upon a Responsible Officer becoming aware of the release of any Hazardous  Materials or the existence of any environmental liability under applicable Environmental Laws  with respect to their respective businesses, operations or properties, take all actions, at their cost  and expense, as shall be required by applicable Law to investigate and clean up the condition of  their respective businesses, operations or properties, including all required removal, containment  and remedial actions, and restore their respective businesses, operations or properties to a  condition, in each case in material compliance with applicable Environmental Laws.   Section 8.10. Use of Proceeds.  The proceeds of the Loans will be used only as provided in  Section 2.05.  No part of the proceeds of the Loans will be used, whether directly or indirectly, for  any purpose that violates any of the Regulations of the Board of Governors of the Federal Reserve  System, including Regulations T, U and X.   Section 8.11. Certain Obligations Respecting Subsidiaries; Further Assurances;  Intellectual Property.   (a) Subsidiaries.  It will take such action, and will cause each of its Subsidiaries to take  such action, from time to time as shall be necessary to ensure that all Subsidiaries are “Guarantors”  hereunder.  Without limiting the generality of the foregoing, in the event that any Obligor shall  form or acquire any new Subsidiary, it and its Subsidiaries will promptly and in any event within  fifteen (15) days (or such longer time as consented to by the Administrative Agent in writing) of  the formation or Acquisition of such Subsidiary:   (i) cause such new Subsidiary to become a “Guarantor” hereunder, and a  “Grantor” under the Security Documents, pursuant to a Guarantee Assumption Agreement;   (ii) take such action or cause such Subsidiary to take such action (including  delivering such Equity Interests together with undated transfer powers executed in blank)  as shall be necessary to create and perfect valid and enforceable first priority (subject to  Permitted Priority Liens) Liens on substantially all of the personal Property of such new  Subsidiary as collateral security for the obligations of such new Subsidiary hereunder;   (iii) to the extent that the parent of such Subsidiary is not a party to the Security  Documents or has not otherwise pledged Equity Interests in its Subsidiaries in accordance  with the terms of the Security Documents and this Agreement, cause the parent of such  Subsidiary to execute and deliver a pledge agreement in favor of the Lenders, in respect of  all outstanding issued shares of such Subsidiary; and  

 

  -61-   (iv) deliver such proof of corporate action, incumbency of officers, opinions of  counsel and other documents as is consistent with those delivered by each Obligor pursuant  to Section 6.01 or as the Majority Lenders shall have requested;  provided, that solely with respect to any Subsidiary that is an Immaterial Foreign Subsidiary, no  such actions shall be required other than a pledge by owner of such Immaterial Foreign Subsidiary  of 100% of the Equity Interests of such Immaterial Foreign Subsidiary, which pledge shall, at the  Administrative Agent’s discretion be perfected under the Law of such Immaterial Foreign  Subsidiary’s jurisdiction of formation.  For the avoidance of doubt, in the event that any Subsidiary  ceases to qualify as an Immaterial Foreign Subsidiary, it shall be required to comply with clauses  (a)(i)-(iii) hereof as if it was formed or Acquired on the date it ceased to qualify as an Immaterial  Foreign Subsidiary.   (b) Further Assurances.  It will, and will cause each of its Subsidiaries to, take such action  from time to time as shall reasonably be requested in writing by the Majority Lenders to effectuate  the purposes and objectives of this Agreement.  Without limiting the generality of the foregoing,  it will, and will cause each Person that is required to be a Guarantor to, take such action from time  to time (including executing and delivering such assignments, security agreements, control  agreements and other instruments) as shall be reasonably requested in writing by the Majority  Lenders to create, in favor of the Lenders, perfected security interests and Liens (subject to  Permitted Liens) in substantially all of the personal Property of such Obligor as collateral security  for the Obligations; provided that any such security interest or Lien shall be subject to the relevant  requirements of the Security Documents.   (c) Intellectual Property.  In the event that any Obligor creates, develops or acquires  Obligor Intellectual Property during the term of this Agreement, then the provisions of this  Agreement shall automatically apply thereto and any such Obligor Intellectual Property shall  automatically constitute part of the Collateral under the Security Documents, without further action  by any party, in each case from and after the date of such creation, development or acquisition  (except that any representations or warranties of any Obligor shall apply to any such Obligor  Intellectual Property only from and after the date, if any, subsequent to such acquisition that such  representations and warranties are brought down or made anew as provided herein).  In the event  that any Obligor holds or acquires Obligor Intellectual Property during the term of this Agreement,  then, upon the request of the Administrative Agent, such Obligor shall take any action as shall be  reasonably necessary and reasonably requested by the Administrative Agent to ensure that the  provisions of this Agreement and the Security Agreement shall apply thereto and any such Obligor  Intellectual Property shall constitute part of the Collateral under the Security Documents   Section 8.12. Termination of Non-Permitted Liens.  In the event that any Responsible  Officer of Borrower shall become aware or be notified by the Lenders of the existence of any  outstanding Lien against any Property of any Obligor, which Lien is not a Permitted Lien, such  Obligor shall use its best efforts to promptly terminate or cause the termination of such Lien.   Section 8.13. Non-Consolidation.  It will, and will cause each of its Subsidiaries to,  (i) maintain entity records and books of account separate from those of any other entity which is  

 

  -62-  an Affiliate of such entity; and (ii) not commingle its funds or assets with those of any other entity  which is an Affiliate of such entity.   Section 8.14. Anti-Terrorism and Anti-Corruption Laws.  No Obligor shall engage in any  transaction that violates any of the applicable prohibitions set forth in any Economic Sanctions  Law, Anti-Terrorism Law, or the US Foreign Corrupt Practices Act of 1977 (15 USC. §§ 78dd-1  et seq.).  None of the funds or assets of such Obligor or any Subsidiary that are used to repay the  Loans shall constitute property of, or shall be beneficially owned by, any Designated Person or, to  such Obligor’s knowledge, be the direct proceeds derived from any transactions that violate the  prohibitions set forth in any applicable Economic Sanctions Law, and no Designated Person shall  have any direct or indirect interest in such Obligor insofar as such interest would violate any  Economic Sanctions Laws applicable to such Obligor.   Section 8.15. Financial Covenants.     (a) Minimum Liquidity.  Borrower shall ensure that the Obligors shall have aggregate  Unrestricted Cash of not less than $3,000,000 at all times.   (b) Minimum Total Revenue. As of the end of the fiscal quarter ended March 31, 2022  and each fiscal quarter thereafter, the Obligors shall maintain, on a consolidated basis, Total  Revenue for the twelve (12) month period most recently ended on such date of not less than the  amount set forth in the table below:    Twelve-Month Period Ended Minimum Total Revenue  March 31, 2022 $16,797,000   June 30, 2022 $18,256,000   September 30, 2022 $21,722,000   December 31, 2022 $26,545,000   March 31, 2023 $30,179,000   June 30, 2023 $35,221,000   September 30, 2023 $40,649,000   December 31, 2023 $46,660,000   March 31, 2024 $51,615,000   June 30, 2024 $57,102,000  September 30, 2024 $63,486,000    December 31, 2024 $71,575,000    

 

  -63-  Twelve-Month Period Ended Minimum Total Revenue  March 31, 2025 $85,526,000    June 30, 2025 $92,295,000    September 30, 2025 $99,058,000    December 31, 2025 $106,016,000     Section 8.16. Maintenance of Material Agreements, Intellectual Property, Etc.  Such  Obligor will, and will cause each of its Subsidiaries (to the extent applicable) to:  (i) maintain in  full force and effect for the term thereof all Material Agreements, or other rights necessary for the  current operations of such Obligor’s or such Subsidiary’s business, as the case may be and  (ii) maintain in full force and effect all Material Intellectual Property owned or controlled by such  Obligor or any such Subsidiary that is used in and necessary for the current operations of such  Obligor’s or such Subsidiary’s business, as the case may be; provided that Borrower may terminate  the Supply Agreement in accordance with its terms if such termination would not be reasonably  expected to adversely affect the Lenders in any material respect.    Section 8.17. Cash Management.  It will:   (a) subject to Section 8.19, maintain all Deposit Accounts, Securities Accounts,  Commodity Accounts and lockboxes (other than Excluded Accounts) with a bank or financial  institution that has executed and delivered to the Administrative Agent an account control  agreement, in form and substance reasonably acceptable to the Administrative Agent (each such  Deposit Account, Securities Account, Commodity Account and lockbox, a “Controlled  Account”); and   (b) deposit promptly, and in any event no later than five (5) Business Days after the date  of receipt thereof, all cash, checks, drafts or other similar items of payment relating to or  constituting payments made in respect of any and all accounts and other rights and interests into  Controlled Accounts.    Section 8.18. Board Observer Rights  Until the Obligations have been paid in full in cash,  Borrower shall permit the Administrative Agent on behalf of all of the Lenders (the “Observer”)  to attend and observe (but not vote) at all meetings of Borrower’s (or any Subsidiary’s, as  applicable) Board or any Committee, whether in person, by telephone or otherwise as requested  by the Observer.  Borrower and such Subsidiaries shall notify the Observer in writing at the same  time as furnished to members of the applicable Board or Committee of (i) the date and time for  each general or special meeting of any such Board or Committee and (ii) the adoption of any  resolutions or actions by any such Board or any such Committee by written consent (describing,  in reasonable detail, the nature and substance of such action).  Borrower and each of its  

 

  -64-  Subsidiaries shall concurrently deliver to the Observer all notices and any materials delivered to  the official members of such Board or Committee in connection with a meeting or action to be  taken by written consent, including a draft of any material resolutions or actions proposed to be  adopted by written consent.  The Observer shall be free prior to such meeting or adoption by  written consent to contact members of any applicable Board or Committee and discuss the pending  actions to be taken.  Notwithstanding the foregoing, the Observer shall not be entitled to receive  materials relating to, or be in attendance for, any discussions relating to topics which (x) are subject  to attorney client privilege or (y) present a conflict of interest for the Observer.  All such  discussions and materials shall be subject to the confidentiality provisions set forth in Section  13.17.   Section 8.19. Post-Closing Obligations.  Within the time periods specified on Schedule  8.19 (as each may be extended by the Administrative Agent in its sole discretion), complete such  undertakings as are set forth on Schedule 8.19.  ARTICLE 9    NEGATIVE COVENANTS  Each Obligor covenants and agrees with the Administrative Agent and the Lenders that,  until the Commitments have expired or been terminated and all Obligations (other than the Warrant  Obligations and inchoate indemnity obligations) have been paid in full in cash:   Section 9.01. Indebtedness.  It will not, and will not permit any of its Subsidiaries to, create,  incur, assume or permit to exist any Indebtedness, whether directly or indirectly, except:   (a) the Obligations;   (b) Indebtedness existing on the date hereof and set forth in Schedule 7.13A  and Permitted Refinancings thereof;   (c) accounts payable to trade creditors for goods and services and current  operating liabilities (not the result of the borrowing of money) incurred in the Ordinary  Course of Business;   (d) Indebtedness consisting of guarantees resulting from endorsement of  negotiable instruments for collection by it or any of its Subsidiaries in the Ordinary Course  of Business;   (e) unsecured Indebtedness of an Obligor to any other Obligor; provided such  Indebtedness is pledged to the Administrative Agent for the benefit of the Lenders under  the Security Agreement and otherwise subordinate in right of payment to the Obligations;   (f) Guarantees by any Obligor of Indebtedness of any other Obligor;  

 

  -65-   (g) purchase money Indebtedness and Capital Lease Obligations; provided that  (i) if secured, the collateral therefor consists solely of the assets being financed, the  products and proceeds thereof and books and records related thereto, (ii) in the case of  purchase money Indebtedness, such Indebtedness shall not constitute less than 75% of the  aggregate consideration paid with respect to such asset, and (iii) the aggregate outstanding  principal amount of such Indebtedness does not exceed $7,000,000 at any time;   (h) unsecured workers’ compensation claims, payment obligations in  connection with health, disability or other types of social security benefits, unemployment  or other insurance obligations, reclamation and statutory obligations, in each case incurred  in the Ordinary Course of Business;   (i) Indebtedness under Hedging Agreements permitted pursuant to Section  9.05(f);   (j) Indebtedness approved in advance in writing by the Majority Lenders;   (k) Indebtedness of Borrower and its Subsidiaries with respect to corporate  credit cards not to exceed $250,000 at any time outstanding;     (l) Indebtedness of Borrower pursuant to the minimum purchase and  termination fee provisions of the Supply Agreement; and   (m) so long as no Default shall have occurred and is continuing at the time of  such Indebtedness is incurred, or after giving effect thereto, other unsecured Indebtedness  in an aggregate principal amount not to exceed $500,000 at any time outstanding.    Section 9.02. Liens.  It will not, and will not permit any of its Subsidiaries to, create, incur,  assume or permit to exist any Lien on any Property now owned by it, except:   (a) Liens securing the Obligations;   (b) any Lien on any Property of any Obligor existing on the date hereof and set  forth in Schedule 7.13B; provided that (i) no such Lien shall extend to any other Property  of such Obligor and (ii) any such Lien shall secure only those obligations which it secures  on the date hereof and extensions, renewals and replacements thereof that do not increase  the outstanding principal amount thereof;   (c) Liens securing Indebtedness permitted under Section 9.01(g); provided that  such Liens are restricted solely to the collateral described in Section 9.01(g);   (d) Liens imposed by Law which were incurred in the Ordinary Course of  Business, including (but not limited to) carriers’, warehousemen’s, landlords’ and  mechanics’ liens, liens relating to leasehold improvements and other similar liens arising  in the Ordinary Course of Business and which (i) do not in the aggregate materially detract  from the value of the Property subject thereto or materially impair the use thereof in the  

 

  -66-  operations of the business of such Person or (ii) are being contested in good faith by  appropriate proceedings, which proceedings have the effect of preventing the forfeiture or  sale of the Property subject to such liens and for which adequate reserves have been made  if required substantially in accordance with GAAP;   (e) Liens, pledges or deposits made in the Ordinary Course of Business in  connection with bids, contracts, leases, appeal bonds, workers’ compensation,  unemployment insurance or other similar social security legislation;   (f) Liens securing Taxes, assessments and other governmental charges, the  payment of which is not yet due or is being contested in good faith by appropriate  proceedings promptly initiated and diligently conducted and for which such reserve or  other appropriate provisions, if any, as shall be required by GAAP shall have been made;   (g) servitudes, easements, rights of way, restrictions and other similar  encumbrances on real Property imposed by applicable Laws and encumbrances consisting  of zoning or building restrictions, easements, licenses, restrictions on the use of Property  or minor imperfections in title thereto which, in the aggregate, are not material, and which  do not in any case materially detract from the value of the Property subject thereto or  interfere with the ordinary conduct of the business of any of the Obligors;   (h) bankers’ liens, rights of setoff and similar Liens incurred in the Ordinary  Course of Business and arising in connection with the Obligors’ deposit accounts or  securities accounts held at financial institutions solely to secure payment of fees and similar  costs and expenses of such financial institutions with respect to such accounts;   (i) Liens in connection with transfers permitted under Section 9.09;   (j) any judgment lien or lien arising from decrees or attachments not  constituting an Event of Default;   (k) leases or subleases of real property granted in the Ordinary Course of  Business, and leases, subleases, nonexclusive licenses or sublicenses of personal property  (other than Intellectual Property) granted in the Ordinary Course of Business;   (l) Liens in favor of customs and revenue authorities arising as a matter of law  to secure the payment of custom duties in connection with the importation of goods, not  securing an amount in the aggregate in excess of $100,000 at any given time;   (m) Liens on a deposit account of the Obligors and the cash and cash equivalents  therein, in each case, securing Indebtedness described in Section 9.01(k); and   (n) Permitted Licenses solely to the extent that such Permitted License would  constitute a Lien;  

 

  -67-  provided that no Lien otherwise permitted under any of the foregoing Sections 9.02 (excluding  Sections 9.02(a) and 9.02(n)) shall apply to any Material Intellectual Property.   Section 9.03. Fundamental Changes and Acquisitions.  It will not, and will not permit any  of its Subsidiaries to, (i) enter into or consummate any transaction of merger, amalgamation or  consolidation, including without limitation, a reverse-triangular merger, or other similar  transaction or series of related transactions, (ii) liquidate, wind up or dissolve itself (or suffer any  liquidation or dissolution) (including in connection with any division or plan of division under  Delaware law or any comparable event under a different jurisdiction’s laws), (iii) make or  consummate any Acquisition, (iv) make any initial public offering that is not a Qualified Public  Offering or (v) sell or issue any Disqualified Equity Interests, except:   (a) Investments permitted under Section 9.05;   (b) Permitted Acquisitions for (i) aggregate cash consideration not to exceed  $2,000,000 and (ii) total consideration not to exceed $5,000,000, in each case, for the  course of this Agreement;    (c) the merger, amalgamation or consolidation of any Obligor with or into any  other Obligor, provided that (i) if Borrower is a party to such merger, amalgamation or  consolidation, Borrower shall be the surviving entity and (ii) if a Domestic Subsidiary is a  party to such merger, amalgamation or consolidation with a Foreign Subsidiary, the  Domestic Subsidiary shall be the surviving entity; and   (d) the purchase of the QIAGEN Patents pursuant to the Patent Purchase  Agreement.   Section 9.04. Lines of Business.  It will not, and will not permit any of its Subsidiaries to,  engage to any material extent in any business other than the business engaged in on the date hereof  by such Obligor, or a business reasonably related, incidental or complementary thereto or  reasonable extensions thereof.   Section 9.05. Investments.  It will not, and will not permit any of its Subsidiaries to, make,  directly or indirectly, or permit to remain outstanding any Investments except:   (a) Investments outstanding on the date hereof and identified in Schedule 9.05  and any modification, replacement, renewal or extension thereof to the extent not involving  new or additional Investments;   (b) operating deposit accounts with banks;   (c) extensions of credit in the nature of accounts receivable or notes receivable  arising from the sales of goods or services in the Ordinary Course of Business;   (d) Permitted Cash Equivalent Investments;  

 

  -68-   (e) (i)  Investments consisting of 100% of the ownership of the Equity Interests  of its Subsidiaries, (ii) intercompany Investments by Borrower or a Subsidiary in any  Guarantor or (iii) Investments by Borrower or any Subsidiary acquired in connection with  a Permitted Acquisition;   (f) Hedging Agreements entered into in the ordinary course of any Obligor’s  financial planning solely to hedge interest rate risks (and not for speculative purposes) in  respect of Permitted Indebtedness and in aggregate amount for all such Hedging  Agreements not in excess of $500,000;   (g) Investments consisting of prepaid expenses, negotiable instruments held for  collection or deposit, security deposits with utilities, landlords and other like Persons, and  deposits in connection with workers’ compensation and similar deposits, in each case made  in the Ordinary Course of Business;   (h) Investments received in connection with any Insolvency Proceedings in  respect of any customers, suppliers or clients and in settlement of delinquent obligations  of, and other disputes with, customers, suppliers or clients;   (i) Investments permitted under Section 9.01(e) and Section 9.03;   (j) 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;   (k) 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 in an aggregate amount not to exceed $100,000 for subclauses (i) and  (ii) in any fiscal year;    (l) so long as no Default shall have occurred and is continuing at the time of  such Investment, or after giving effect thereto, Investments in Immaterial Foreign  Subsidiaries in an aggregate amount not to exceed $250,000 in any fiscal year; and   (m) so long as no Default shall have occurred and is continuing at the time of  such Investment, or after giving effect thereto, other Investments in an amount not to  exceed $100,000 in any fiscal year; and    (n) so long as no Default shall have occurred and is continuing at the time of  such Investment, or after giving effect thereto, Investments in the Chinese Subsidiary in an  aggregate amount not to exceed: (i) $2,000,000 in the fiscal year ending December 31,  2022 and (ii) $2,500,000 in any fiscal year thereafter.   

 

  -69-   Section 9.06. Restricted Payments.  It will not, and will not permit any of its Subsidiaries  to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, other  than:   (a) dividends and stock splits with respect to any Equity Interests of Borrower  or any of its Subsidiaries payable solely in additional shares of its Qualified Equity  Interests;   (b) any Restricted Payment by a Subsidiary to Borrower;   (c) any purchase, redemption, retirement, or other Acquisition by Borrower or  any of its Subsidiaries of shares of its capital stock or other Equity Interests with the  proceeds received from a substantially concurrent issue of new shares of its capital stock  or other Equity Interests;   (d) dividends paid by any Guarantor to any other Obligor;   (e) cashless exercises of options and warrants;   (f) 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 in an aggregate amount not to exceed $100,000 in any fiscal  year;    (g) the making of cash payments in lieu of the issuance of fractional shares  upon the conversion of convertible securities (or in connection with the exercise of  warrants or similar securities) not to exceed $25,000 in any fiscal year; and   (h) the issuance of the Warrant Certificate and cash payments made to redeem,  purchase, repurchase or retire the Warrant Obligations in accordance with the terms of the  Warrant Certificate.   Section 9.07. Payments of Indebtedness.  It will not, and will not permit any of its  Subsidiaries to, make any payments in respect of any Material Indebtedness other than  (i) payments of the Obligations and (ii) so long as no Default has occurred and is continuing or  would result therefrom, scheduled payments of other Permitted Indebtedness and, in the case of  repayment of intercompany Indebtedness permitted in reliance upon Section 9.01(e), subject to  any subordination agreement entered into in connection therewith.   Section 9.08. Change in Fiscal Year.  It will not, and will not permit any of its Subsidiaries  to, change the last day of its fiscal year from that in effect on the date hereof, without prior written  notice to the Administrative Agent, except to change the fiscal year of a Subsidiary acquired in  connection with a Permitted Acquisition to conform its fiscal year to that of Borrower.   Section 9.09. Sales of Assets, Etc.  It will not, and will not permit any of its Subsidiaries to,  sell, lease, exclusively license (in terms of geography or field of use), as a licensor, transfer  

 

  -70-  (including in connection with any division or plan of division under Delaware law or any  comparable event under a different jurisdiction’s laws) or otherwise dispose of any of its Property  (including accounts receivable and Equity Interests of Subsidiaries), or forgive, release or  compromise any amount owed to any Obligor or any of its Subsidiaries, in each case, in one  transaction or series of transactions (any thereof, an “Asset Sale”), except:   (a) transfers of cash in the Ordinary Course of Business for equivalent value;   (b) sales or leases of products and services in the Ordinary Course of Business  on ordinary business terms;   (c) the forgiveness, release or compromise of any amount owed to any Obligor  in the Ordinary Course of Business;   (d) entering into, or becoming bound, by a Permitted License to the extent not  otherwise prohibited by this Agreement;   (e) development and other collaborative arrangements where such  arrangements provide for the license or disclosure of Patents, Trademarks, Copyrights or  other Intellectual Property rights of any Obligor in the Ordinary Course of Business and  consistent with general market practices where such license requires periodic payments  based on per unit sales of a product over a period of time; provided that such licenses must  be true licenses that do not result in a legal transfer of title of the licensed Property or  otherwise constitute sales transactions in substance,;   (f) a sale, lease, exclusive license, transfer or other disposition (including by  way of abandonment, cancellation or trade-in) of any Property that is obsolete, worn out,  surplus or no longer used or useful in connection with the business of the Obligors or with  respect to which a newer and improved version is available;   (g) dispositions resulting from Casualty Events;   (h) any transaction permitted under Section 9.02, 9.03, 9.05 and 9.20; and   (i) so long as no Default shall have occurred and is continuing at the time of  such Asset Sale, or after giving effect thereto, Asset Sales of other property not to exceed  $250,000 in the aggregate per fiscal year.   Section 9.10. Transactions with Affiliates.  It will not, and will not permit any of its  Subsidiaries to, sell, lease, license or otherwise transfer any assets to, or purchase, lease, license  or otherwise acquire any assets from, or otherwise engage in any other transactions with, any of  its Affiliates, except:   (a) transactions between or among the Obligors;   (b) any transaction permitted under Section 9.01, 9.05, 9.06 or 9.09;  

 

  -71-   (c) customary compensation and indemnification of, and other employment  arrangements with, directors, officers and employees of any Obligor in the Ordinary  Course of Business;   (d) transactions upon fair and reasonable terms that are no less favorable to any  Obligor than would be obtained in a comparable arm’s-length transaction with a Person  not an Affiliate;    (e) the transactions set forth on Schedule 9.10; and   (f) cash equity contributions by Borrower’s investors in Borrower or its  Subsidiaries (other than Disqualified Equity Interests).    Section 9.11. Restrictive Agreements.  It will not, and will not permit any of its Subsidiaries  to, directly or indirectly, enter into, incur or permit to exist any Restrictive Agreement other than  (i) restrictions and conditions imposed by Law or by the Loan Documents, (ii) Restrictive  Agreements listed on Schedule 7.15, (iii) any stockholder agreement or investor rights agreement,  charter, by laws or other organizational documents of an Obligor or (iv) limitations associated with  Permitted Liens or with any transaction permitted under Section 9.01, 9.03, 9.05, 9.06 or 9.09.   Section 9.12. Organizational Documents, Material Agreements.  (a) It will not, and will  not permit any of its Subsidiaries to, enter into any amendment to or modification of any  Organizational Document that would be reasonably expected to adversely affect the Lenders in  any material respect, without the prior written consent of the Administrative Agent.   (b) It will not, and will not permit any of its Subsidiaries to (i) enter into any  material waiver, amendment or modification of any Material Agreement (including, but not limited  to, any amendments to provisions relating to pricing and term) that would be reasonably expected  to adversely affect the Lenders in any material respect or (ii) take or omit to take any action that  results in the termination of, or permits any other Person to terminate, any Material Agreement or  Material Intellectual Property that would be reasonably expected to adversely affect the Lenders  in any material respect, without, in each case, the prior written consent of the Administrative  Agent; provided that Borrower may terminate the Supply Agreement in accordance with its terms  if such termination would not be reasonably expected to adversely affect the Lenders in any  material respect.    Section 9.13. Operating Leases.  It will not, and will not permit any of its Subsidiaries to,  make any expenditures in respect of operating leases, except for:   (a) real estate operating leases entered into in the Ordinary Course of Business;  and   (b) operating leases that would not cause the Obligors, on a consolidated basis,  to make payments exceeding $500,000 in any fiscal year.  

 

  -72-   Section 9.14. Sales and Leasebacks.  Except as permitted by Section 9.01(g), it will not,  and will not permit any of its Subsidiaries to, become liable, directly or indirectly, with respect to  any lease, whether an operating lease or a Capital Lease Obligation, of any Property (whether real,  personal, or mixed), whether now owned or hereafter acquired, which (i) any Obligor has sold or  transferred or is to sell or transfer to any other Person and (ii) any Obligor intends to use for  substantially the same purposes as Property which has been or is to be sold or transferred.   Section 9.15. Hazardous Material.  It will not, and will not permit any of its Subsidiaries  to, use, generate, manufacture, install, treat, release, store or dispose of any Hazardous Material,  except in compliance with all applicable Environmental Laws or where the failure to comply  would not reasonably be expected to result in a Material Adverse Change.   Section 9.16. Accounting Changes.  It will not, and will not permit any of its Subsidiaries  to, make any significant change in accounting treatment, except as required or permitted by GAAP.   Section 9.17. Compliance with ERISA.  No ERISA Affiliate shall cause or suffer to exist  (a) any event that would result in the imposition of a Lien with respect to any Title IV Plan or  Multiemployer Plan or (b) any other ERISA Event that would, in the aggregate, have a Material  Adverse Effect.  No Obligor or any Subsidiary thereof shall cause or suffer to exist any event that  could result in the imposition of a Lien with respect to any Benefit Plan that would have a Material  Adverse Effect.   Section 9.18. Deposit Accounts.  It will not, and will not permit any of its Subsidiaries to,  establish or maintain any bank account that is not a Controlled Account (other than an Excluded  Account) and will not, and will not permit any of its Subsidiaries to, deposit proceeds in a bank  account that is not a Controlled Account; provided, up to two (2) months of payroll expenses may  be on deposit in Excluded Accounts in the aggregate at any time.   Section 9.19. Outbound Licenses.  It will not, and will not permit any of its Subsidiaries to,  enter into or become bound by any outbound license or agreement unless such outbound license  or agreement is a Permitted License.   Section 9.20. Inbound Licenses.  It will not, and will not permit any of its Subsidiaries to,  enter into or become bound by any inbound license or agreement (other than Permitted Licenses)  unless (i) no Default has occurred and is continuing, (ii) such Obligor has provided written notice  to the Administrative Agent of the material terms of such license or agreement with a description  of its anticipated and projected impact on such Obligor’s business or financial condition, and  (iii) such Obligor has taken such commercially reasonable actions as the Administrative Agent  may reasonably request to obtain the consent of, or waiver by, any Person whose consent or waiver  is necessary for the Administrative Agent to be granted a valid and perfected security interest in  such license or agreement allowing the Administrative Agent to fully exercise its rights under any  of the Loan Documents in the event of a disposition or liquidation of the rights, assets or property  that is the subject of such license or agreement; provided that the aggregate amounts to be paid  under all such inbound licenses pursuant to this Section 9.20 shall not exceed an amount equal to  $1,000,000 per fiscal year.   

 

  -73-  ARTICLE 10    EVENTS OF DEFAULT   Section 10.01. Events of Default.  Each of the following events shall constitute an “Event of  Default”:   (a) Borrower shall fail to pay any principal on the Loan when and as the same  shall become due and payable, whether at the due date thereof or at a date fixed for  prepayment thereof or otherwise; or   (b) any Obligor shall fail to pay any Obligation (other than an amount referred  to in Section 10.01(a)) when and as the same shall become due and payable, and such  failure shall continue unremedied for a period of three (3) Business Days; or   (c) any representation or warranty made by or on behalf of an Obligor or any  of its Subsidiaries in or in connection with this Agreement or any other Loan Document or  any amendment or modification hereof or thereof, or in any report, certificate, financial  statement or other document furnished pursuant to or in connection with this Agreement  or any other Loan Document or any amendment or modification hereof or thereof, shall:  (i) prove to have been incorrect when made or deemed made to the extent that such  representation or warranty contains any materiality or Material Adverse Effect qualifier;  or (ii) prove to have been incorrect in any material respect when made or deemed made to  the extent that such representation or warranty does not otherwise contain any materiality  or Material Adverse Effect qualifier; or   (d) any Obligor shall fail to observe or perform any covenant, condition or  agreement contained in Sections 8.01, 8.02, 8.03(a) (with respect to such Obligor’s  existence), 8.10, 8.11, 8.13, 8.15, 8.17, 8.18, 8.19 or Article 9; or   (e) any Obligor shall fail to observe or perform any covenant, condition or  agreement contained in this Agreement (other than those specified in Section 10.01(a), (b)  or (d)) or any other Loan Document, and, in the case of any failure that is capable of cure,  such failure shall continue unremedied for a period of thirty (30) or more days; or   (f) any Obligor shall fail to make any payment in respect of any Material  Indebtedness, when and as the same shall become due and payable after giving effect to  any applicable grace or cure period as originally provided by the terms of such  Indebtedness; or   (g) (i) any material breach of, or “event of default” or similar event under, the  Contract governing any Material Indebtedness shall occur and such breach or “event of  default” or similar event shall continue unremedied, uncured or unwaived after a period of  five (5) Business Days after the expiration of any cure period thereunder, or (ii) any event  or condition occurs (A) that results in any Material Indebtedness becoming due prior to its  scheduled maturity or (B) that enables or permits (with or without the giving of notice, the  

 

  -74-  lapse of time or both) the holder or holders of such Material Indebtedness or any trustee or  agent on its or their behalf to cause such Material Indebtedness to become due, or to require  the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled  maturity; provided that this Section 10.01(h) shall not apply to secured Indebtedness that  becomes due as a result of the voluntary sale or transfer of the Property securing such  Material Indebtedness; or   (h) any Obligor or any of its Subsidiaries:   (i) ceases to be Solvent, or generally does not or becomes unable to pay  its debts or meet its liabilities as the same become due, or admits in writing its  inability to pay its debts generally, or declares any general moratorium on its  indebtedness, or proposes a compromise or arrangement or deed of company  arrangement between it and any class of its creditors; or   (ii) shall (A) voluntarily commence any proceeding or file any petition  seeking liquidation, reorganization or other relief under any Federal, state or foreign  bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (B)  consent to the institution of, or fail to contest in a timely and appropriate manner,  any proceeding or petition described in Section 10.01(i), (C) apply for or consent  to the appointment of a receiver, trustee, custodian, sequestrator, conservator or  similar official for an Obligor or for a substantial part of its assets, (D) file an  answer admitting the material allegations of a petition filed against it in any such  proceeding, (E) make a general assignment for the benefit of creditors or (F) take  any action for the purpose of effecting any of the foregoing; or   (i) an involuntary proceeding shall be commenced or an involuntary petition  shall be filed seeking (i) liquidation, reorganization or other relief in respect of an Obligor  or any Subsidiary of an Obligor or its debts, or of a substantial part of its assets, under any   Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or  hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,  conservator or similar official for an Obligor or any Subsidiary of an Obligor or for a  substantial part of its assets, and, in any such case, such proceeding or petition shall  continue undismissed for sixty (60) days or an order or decree approving or ordering any  of the foregoing shall be entered; or   (j) one or more judgments for the payment of money in an aggregate amount  in excess of $250,000 (excluding any amounts covered by insurance as to which the  applicable carrier has accepted coverage) shall be rendered against any Obligor or any  combination thereof and the same shall remain undischarged for a period of forty-five  (45) consecutive days during which execution shall not be effectively stayed, or any action  shall be legally taken by a judgment creditor to attach or levy upon any assets of any  Obligor to enforce any such judgment; or   (k) an ERISA Event shall have occurred that, when taken together with all other  ERISA Events that have occurred, would reasonably be expected to result in liability of  

 

  -75-  the Obligors and their Subsidiaries in an aggregate amount exceeding (i) $250,000 in any  year or (ii) $500,000 for all periods until repayment of all Obligations (other than the  Warrant Obligations); or   (l) a Change of Control shall have occurred; or   (m) a Material Adverse Change shall have occurred; or   (n) (i) any Lien created by any of the Security Documents shall at any time not  constitute a valid and perfected Lien in favor of the Administrative Agent on Collateral  with an aggregate value in excess of $250,000, free and clear of all other Liens (other than  Permitted Liens) except due to the action or inaction of the Administrative Agent or any  Lender(s), (ii) except as permitted herein the Security Documents or any Guarantee of any  of the Obligations shall for whatever reason cease to be in full force and effect, or (iii) any  of the Security Documents or any Guarantee of any of the Obligations, or the enforceability  thereof, shall be repudiated or contested by any Obligor.   Section 10.02. Remedies.  (a) Upon the occurrence of any Event of Default, then, and in  every such event (other than an Event of Default described in Section 10.01(h) or (i)), and at any  time thereafter during the continuance of such event, the Majority Lenders may, by notice to  Borrower, take either or both of the following actions, at the same or different times: (i) terminate  the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare  the Loans then outstanding to be due and payable in whole (or in part, in which case any principal  not so declared to be due and payable may thereafter be declared to be due and payable), and  thereupon the principal of the Loans so declared to be due and payable, together with accrued  interest thereon and all fees and other Obligations, shall become due and payable immediately (in  the case of the Loans, at the Redemption Price therefor), without presentment, demand, protest or  other notice of any kind, all of which are hereby waived by each Obligor.   (b) Upon the occurrence of any Event of Default described in Section 10.01(h) or (i), the  Commitments shall automatically terminate and the principal amount of the Loans then  outstanding, together with accrued interest thereon and all fees and other Obligations, shall  automatically become due and payable immediately (in the case of the Loans, at the Redemption  Price therefor), without presentment, demand, protest or other notice of any kind, all of which are  hereby waived by each Obligor.   (c) If any Lender collects any money or property pursuant to this Article 10, they shall  pay out the money or property in the order set forth in Section 4.01(b).   Section 10.03. Prepayment Premium and Redemption Price.  For the avoidance of doubt,  any Prepayment Premium (as a component of the Redemption Price) shall be due and payable at  any time the Loans become due and payable prior to the Stated Maturity Date for any reason,  whether due to acceleration pursuant to the terms of this Agreement (in which case it shall be due  immediately, upon the giving of notice to Borrower in accordance with Section 10.02(a), or  automatically, in accordance with Section 10.02(b)), by operation of law or otherwise (including,  without limitation, on account of any bankruptcy filing), except as otherwise specified herein.  In  

 

  -76-  view of the impracticability and extreme difficulty of ascertaining the actual amount of damages  to the Lenders or profits lost by the Lenders as a result of such acceleration, and by mutual  agreement of the parties as to a reasonable estimation and calculation of the lost profits or damages  of the Lenders, any Prepayment Premium shall be due and payable upon such date.  Each Obligor  hereby waives any defense to payment, whether such defense may be based in public policy,  ambiguity, or otherwise.  The Obligors and the Lenders acknowledge and agree that any  Prepayment Premium due and payable in accordance with this Agreement shall not constitute  unmatured interest, whether under Section 502(b)(3) of the Bankruptcy Code or otherwise.  Each  Obligor further acknowledges and agrees, and waives any argument to the contrary, that payment  of such amount does not constitute a penalty or an otherwise unenforceable or invalid obligation.  ARTICLE 11    GUARANTEE   Section 11.01. The Guarantee.  The Guarantors hereby jointly and severally guarantee to the  Administrative Agent and each Lender, and its successors and assigns, the prompt payment in full  when due (whether at stated maturity, by acceleration or otherwise) of the principal of and interest  on the Loans, all fees and other amounts and Obligations from time to time owing to the  Administrative Agent and any Lender by Borrower under this Agreement or under any other Loan  Document and by any other Obligor under any of the Loan Documents, in each case strictly in  accordance with the terms thereof (such obligations being herein collectively called the  “Guaranteed Obligations”).  The Guarantors hereby further jointly and severally agree that if  Borrower shall fail to pay in full when due (whether at stated maturity, by acceleration or  otherwise) any of the Guaranteed Obligations, the Guarantors will promptly pay the same, without  any demand or notice whatsoever, and that in the case of any extension of time of payment or  renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due  (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such  extension or renewal.   Section 11.02. Obligations Unconditional.  The obligations of the Guarantors under  Section 11.01 are absolute and unconditional, joint and several, irrespective of the value,  genuineness, validity, regularity or enforceability of the obligations of Borrower under this  Agreement or any other agreement or instrument referred to herein, or any substitution, release or  exchange of any other guarantee of or security for any of the Guaranteed Obligations, and, to the  fullest extent permitted by applicable Law, irrespective of any other circumstance whatsoever that  might otherwise constitute a legal or equitable discharge or defense of a surety or Guarantor, it  being the intent of this Section 11.02 that the obligations of the Guarantors hereunder shall be  absolute and unconditional, joint and several, under any and all circumstances.  Without limiting  the generality of the foregoing, it is agreed that the occurrence of any one or more of the following  shall not alter or impair the liability of the Guarantors hereunder, which shall remain absolute and  unconditional as described above:   (a) at any time or from time to time, without notice to the Guarantors, the time  for any performance of or compliance with any of the Guaranteed Obligations shall be  extended, or such performance or compliance shall be waived;  

 

  -77-   (b) any of the acts mentioned in any of the provisions of this Agreement or any  other agreement or instrument referred to herein shall be done or omitted;   (c) the maturity of any of the Guaranteed Obligations shall be accelerated, or  any of the Guaranteed Obligations shall be modified, supplemented or amended in any  respect, or any right under this Agreement or any other agreement or instrument referred  to herein shall be waived or any other guarantee of any of the Guaranteed Obligations or  any security therefor shall be released or exchanged in whole or in part or otherwise dealt  with; or   (d) any lien or security interest granted to, or in favor of, any Lender as security  for any of the Guaranteed Obligations shall fail to be perfected.  The Guarantors hereby expressly waive diligence, presentment, demand of payment,  protest and all notices whatsoever, and any requirement that the Administrative Agent or any  Lender exhaust any right, power or remedy or proceed against Borrower under this Agreement or  any other agreement or instrument referred to herein, or against any other Person under any other  guarantee of, or security for, any of the Guaranteed Obligations.   Section 11.03. Reinstatement.  The obligations of the Guarantors under this Article 11 shall  be automatically reinstated if and to the extent that for any reason any payment by or on behalf of  Borrower in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by  any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in  bankruptcy or reorganization or otherwise, and the Guarantors jointly and severally agree that they  will indemnify the Administrative Agent and each Lender on demand for all reasonable out-of- pocket costs and expenses (including reasonable fees of counsel) incurred by such Persons in  connection with such rescission or restoration, including any such reasonable out-of-pocket costs  and expenses incurred in defending against any claim alleging that such payment constituted a  preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar  Law.   Section 11.04. Subrogation.  The Guarantors hereby jointly and severally agree that, until  the payment and satisfaction in full of all Guaranteed Obligations (other than the Warrant  Obligations) and the expiration and termination of the Commitments, they shall not exercise any  right or remedy arising by reason of any performance by them of their guarantee in Section 11.01,  whether by subrogation or otherwise, against Borrower or any other guarantor of any of the  Guaranteed Obligations or any security for any of the Guaranteed Obligations.   Section 11.05. Remedies.  The Guarantors jointly and severally agree that, as between the  Guarantors, on one hand, and the Lenders, on the other hand, the obligations of Borrower under  this Agreement and under the other Loan Documents may be declared to be forthwith due and  payable as provided in Article 10 (and shall be deemed to have become automatically due and  payable in the circumstances provided in Article 10) for purposes of Section 11.01  notwithstanding any stay, injunction or other prohibition preventing such declaration (or such  obligations from becoming automatically due and payable) as against Borrower and that, in the  event of such declaration (or such obligations being deemed to have become automatically due  

 

  -78-  and payable), such obligations (whether or not due and payable by Borrower) shall forthwith  become due and payable by the Guarantors for purposes of Section 11.01.   Section 11.06. Instrument for the Payment of Money.  Each Guarantor hereby acknowledges  that the guarantee in this Article 11 constitutes an instrument for the payment of money, and  consents and agrees that each Lender, at its sole option, in the event of a dispute by such Guarantor  in the payment of any moneys due hereunder, shall have the right to proceed by motion for  summary judgment in lieu of complaint pursuant to N.Y. Civ. Prac. L&R § 3213.   Section 11.07. Continuing Guarantee.  The guarantee in this Article 11 is a continuing  guarantee, and shall apply to all Guaranteed Obligations whenever arising.   Section 11.08. Rights of Contribution.  The Guarantors hereby agree, as between  themselves, that if any Guarantor shall become an Excess Funding Guarantor (as defined below)  by reason of the payment by such Guarantor of any Guaranteed Obligations, each other Guarantor  shall, on demand of such Excess Funding Guarantor (but subject to the next sentence), pay to such  Excess Funding Guarantor an amount equal to such Guarantor’s Pro Rata Share (as defined below  and determined, for this purpose, without reference to the properties, debts and liabilities of such  Excess Funding Guarantor) of the Excess Payment (as defined below) in respect of such  Guaranteed Obligations.  The payment obligation of a Guarantor to any Excess Funding Guarantor  under this Section 11.08 shall be subordinate and subject in right of payment to the prior payment  in full of the obligations of such Guarantor under the other provisions of this Article 11 and such  Excess Funding Guarantor shall not exercise any right or remedy with respect to such excess until  payment and satisfaction in full of all of such obligations.  For purposes of this Section 11.08, (i) “Excess Funding Guarantor” means, in respect of  any Guaranteed Obligations, a Guarantor that has paid an amount in excess of its Pro Rata Share  of such Guaranteed Obligations, (ii) “Excess Payment” means, in respect of any Guaranteed  Obligations, the amount paid by an Excess Funding Guarantor in excess of its Pro Rata Share of  such Guaranteed Obligations and (iii) “Pro Rata Share” means, as of the date of determination,  for any Guarantor, the ratio (expressed as a percentage) of (x) the amount by which the aggregate  present fair saleable value of all properties of such Guarantor (excluding any shares of stock of  any other Guarantor) exceeds the amount of all the debts and liabilities of such Guarantor  (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the  obligations of such Guarantor hereunder and any obligations of any other Guarantor that have been  Guaranteed by such Guarantor) to (y) the amount by which the aggregate fair saleable value of all  properties of all of the Guarantors exceeds the amount of all the debts and liabilities (including  contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of  Borrower and the Guarantors hereunder and under the other Loan Documents) of all of the  Guarantors, determined (A) with respect to any Guarantor that is a party hereto on the Closing  Date, as of such date, and (B) with respect to any other Guarantor, as of the date such Guarantor  becomes a Guarantor hereunder.   Section 11.09. General Limitation on Guarantee Obligations.  In any action or proceeding  involving any provincial, territorial or state corporate law, or any state or federal bankruptcy,  insolvency, reorganization or other Law affecting the rights of creditors generally, if the  

 

  -79-  obligations of any Guarantor under Section 11.01 would otherwise, taking into account the  provisions of Section 11.08, be held or determined to be void, invalid or unenforceable, or  subordinated to the claims of any other creditors, on account of the amount of its liability under  Section 11.01, then, notwithstanding any other provision hereof to the contrary, the amount of such  liability shall, without any further action by such Guarantor, the Administrative Agent, the Lenders  or any other Person, be automatically limited and reduced to the highest amount that is valid and  enforceable and not subordinated to the claims of other creditors as determined in such action or  proceeding.  ARTICLE 12    ADMINISTRATIVE AGENT   Section 12.01. Appointment.  Each of the Lenders hereby irrevocably appoints Perceptive to  act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and  authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers  as are delegated to the Administrative Agent by the terms hereof or thereof, together with such  actions and powers as are reasonably incidental thereto.  The provisions of this Article 12 are solely  for the benefit of the Administrative Agent and the Lenders, and neither Borrower nor any other  Obligor will have rights as a third-party beneficiary of any of such provisions.  It is understood  and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other  similar term) with reference to the Administrative Agent is not intended to connote any fiduciary  or other implied (or express) obligations arising under agency doctrine of any applicable Law.   Instead, such term is used as a matter of market custom, and is intended to create or reflect only  an administrative relationship between contracting parties.    Section 12.02. Rights as a Lender.  The Person serving as the Administrative Agent  hereunder will have the same rights and powers in its capacity as a Lender as any other Lender  and may exercise the same as though it were not the Administrative Agent, and the term “Lender”  or “Lenders” will, unless otherwise expressly indicated or unless the context otherwise requires,  include the Person serving as the Administrative Agent hereunder in its individual capacity to the  extent such Person is a Lender.  The Lenders acknowledge and agree that such Person and its  Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor  or in any other advisory capacity for, and generally engage in any kind of business with, Borrower,  the other Obligors or any other Subsidiaries or Affiliates of the Obligors as if such Person were  not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.    Section 12.03. Exculpatory Provisions.  (a) The Administrative Agent will not have any  duties or obligations except those expressly set forth herein and in the other Loan Documents, and  its duties hereunder are administrative in nature.  Without limiting the generality of the foregoing,  the Administrative Agent:   (i) will not be subject to any fiduciary or other implied duties, regardless of  whether a Default has occurred and is continuing;  

 

  -80-   (ii) will not have any duty to take any discretionary action or exercise any  discretionary powers, except discretionary rights and powers expressly contemplated  hereby or by the other Loan Documents that the Administrative Agent is required to  exercise as directed in writing by the Majority Lenders (or such other number or percentage  of the Lenders as will be expressly provided for herein or in the other Loan Documents);  provided that the Administrative Agent will not be required to take any action that, in its  opinion or the opinion of its counsel, may expose the Administrative Agent to liability or  that is contrary to any Loan Document or applicable Law, including any action that may  be in violation of the automatic stay under any Insolvency Proceeding; and   (iii) will not, except as expressly set forth herein and in the other Loan  Documents, have any duty to disclose, and will not be liable for the failure to disclose, any  information relating to the Obligors or any of its Subsidiaries or Affiliates that is  communicated to or obtained by the Person serving as the Administrative Agent or any of  its Affiliates in any capacity.   (b) The Administrative Agent will not be liable for any action taken or not taken by it  (i) with the consent or at the request of the Majority Lenders (or such other number or percentage  of the Lenders as will be necessary, or as the Administrative Agent believes in good faith will be  necessary, under the circumstances), or (ii) in the absence of its own gross negligence or willful  misconduct as determined by a court of competent jurisdiction by final and non-appealable  judgment.  The Administrative Agent will be deemed not to have knowledge of any Default unless  and until notice describing such Default is given to the Administrative Agent in writing by  Borrower or a Lender.   (c) The Administrative Agent will not be responsible for or have any duty to ascertain or  inquire into (i) any statement, warranty or representation made in or in connection with this  Agreement or any other Loan Document, (ii) the contents of any certificate, report or other  document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the  performance or observance of any of the covenants, agreements or other terms or conditions set  forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,  effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,  instrument or document or (v) the satisfaction of any condition set forth in Article 6 or elsewhere  herein, other than to confirm receipt of items expressly required to be delivered to the  Administrative Agent.   Section 12.04. Reliance by Administrative Agent.  The Administrative Agent will be entitled  to rely upon, and will not incur any liability for relying upon, any notice, request, certificate,  consent, statement, instrument, document or other writing (including any electronic message,  Internet or intranet website posting or other distribution) believed by it to be genuine and to have  been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also  may rely upon any statement made to it orally or by telephone and believed by it to have been  made by the proper Person, and will not incur any liability for relying thereon.  In determining  compliance with any condition hereunder to the making of the Loans that by its terms must be  fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition  is satisfactory to such Lender unless the Administrative Agent has received notice to the contrary  

 

  -81-  from such Lender prior to the making of such Loans.  The Administrative Agent may consult with  legal counsel (who may be counsel for Borrower), independent accountants and other experts  selected by it, and will not be liable for any action taken or not taken by it in accordance with the  advice of any such counsel, accountants or experts.   Section 12.05. Delegation of Duties.  The Administrative Agent may perform any and all of  its duties and exercise its rights and powers hereunder or under any other Loan Document by or  through any one or more sub-agents appointed by the Administrative Agent.  The Administrative  Agent and any such sub-agent may perform any and all of its duties and exercise its rights and  powers by or through their respective Affiliates.  The exculpatory provisions of this Section will  apply to any such sub-agent and to the Affiliates of the Administrative Agent and any such  sub-agent, and will apply to their respective activities in connection with the syndication of the  facility as well as activities as Administrative Agent.  The Administrative Agent will not be  responsible for the negligence or misconduct of any sub-agents except to the extent that a court of  competent jurisdiction determines in a final and non-appealable judgment that the Administrative  Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.   Section 12.06. Resignation of Agent.  (a) The Administrative Agent may at any time give  notice of its resignation to the Lenders and Borrower, which notice shall set forth the effective date  of such resignation (the “Resignation Effective Date”), such date not to be earlier than the thirtieth  (30th) day following the date of such notice.  The Majority Lenders and Borrower shall mutually  agree upon a successor to the Administrative Agent.  If the Majority Lenders and Borrower are  unable to so mutually agree and no successor shall have been appointed within twenty-five (25)  days after the retiring Administrative Agent gives notice of its resignation, then the retiring  Administrative Agent may (but will not be obligated to), on behalf of the Lenders, appoint a  successor Administrative Agent it shall designate (in its reasonable discretion after consultation  with Borrower and the Majority Lenders).  Whether or not a successor has been appointed, such  resignation will become effective in accordance with such notice on the Resignation Effective  Date.   (b) With effect from the Resignation Effective Date (i) the retiring Administrative Agent  will be discharged from its duties and obligations hereunder and under the other Loan Documents  (except that in the case of any Collateral held by the Administrative Agent on behalf of the Lenders  under any of the Loan Documents, the retiring Administrative Agent will continue to hold such  Collateral until such time as a successor Administrative Agent is appointed) and (ii) except for any  indemnity payments owed to the retiring Administrative Agent, all payments, communications and  determinations provided to be made by, to or through the Administrative Agent will instead be  made by or to each Lender directly, until such time, if any, as the Majority Lenders appoint a  successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s  appointment as Administrative Agent hereunder, such successor will succeed to and become  vested with all of the rights, powers, privileges and duties of the retiring Administrative Agent  (other than any rights to indemnity payments owed to the retiring Administrative Agent), and the  retiring Administrative Agent will be discharged from all of its duties and obligations hereunder  or under the other Loan Documents.  The fees payable by Borrower to a successor Administrative  Agent will be the same as those payable to its predecessor unless otherwise agreed between  Borrower and such successor.  After the retiring Administrative Agent’s resignation hereunder and  

 

  -82-  under the other Loan Documents, the provisions of this Article 12 and Sections 13.03 and 13.06  will continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and  their respective Affiliates in respect of any actions taken or omitted to be taken by any of them  while the retiring Administrative Agent was acting as Administrative Agent.    Section 12.07. Non-Reliance on Administrative Agent and Other Lenders.  Each Lender  acknowledges that it has, independently and without reliance upon the Administrative Agent or  any other Lender or any of their Affiliates and based on such documents and information as it has  deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each  Lender also acknowledges that it will, independently and without reliance upon the Administrative  Agent or any other Lender or any of their Affiliates and based on such documents and information  as it will from time to time deem appropriate, continue to make its own decisions in taking or not  taking action under or based upon this Agreement, any other Loan Document or any related  agreement or any document furnished hereunder or thereunder.   Section 12.08. Administrative Agent May File Proofs of Claim.  In case of the pendency of  any Insolvency Proceeding or any other judicial proceeding relative to Borrower, the  Administrative Agent (irrespective of whether the principal of the Loans will then be due and  payable as herein expressed or by declaration or otherwise and irrespective of whether the  Administrative Agent has made any demand on Borrower) will be entitled and empowered (but  not obligated), by intervention in such proceeding or otherwise:    (a) to file and prove a claim for the whole amount of the principal and interest  owing and unpaid in respect of the Loans and all other Obligations that are owing and  unpaid hereunder or under any other Loan Document and to file such other documents as  may be necessary or advisable in order to have the claims of the Lenders and the  Administrative Agent (including any claim for the reasonable compensation, expenses,  disbursements and advances of the Lenders and the Administrative Agent and their  respective agents and counsel and all other amounts due the Lenders and the Administrative  Agent under this Agreement or any other Loan Document) allowed in such judicial  proceeding; and   (b) to collect and receive any monies or other property payable or deliverable  on any such claims and to distribute the same.  Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official  in any such judicial proceeding is hereby authorized by each Lender to make any payments of the  type described above in this Section 12.08 to the Administrative Agent and, in the event that the  Administrative Agent consents to the making of such payments directly to the Lenders, to pay to  the Administrative Agent any amount due for the reasonable compensation, expenses,  disbursements and advances of the Administrative Agent and its agents and counsel, and any other  amounts due the Administrative Agent under this Agreement or any other Loan Document.  

 

  -83-   Section 12.09. Collateral and Guaranty Matters; Appointment of Administrative Agent.   (a) Without limiting the provisions of Section 12.08, the Lenders irrevocably agree as follows:    (i) the Administrative Agent is authorized, at its option and in its discretion, to  release any Lien on any property granted to or held by the Administrative Agent under any  Loan Document (A) on the date when all Obligations have been satisfied in full in cash  (other than Warrant Obligations and contingent obligations as to which no claims have  been asserted), (B) that is sold or otherwise disposed of or to be sold or otherwise disposed  of as part of or in connection with any sale or other disposition permitted under the Loan  Documents, or (C) subject to Sections 13.01 and 13.04, if approved, authorized or ratified  in writing by the Majority Lenders; and   (ii) the Administrative Agent is authorized, at its option and discretion, to  release any Guarantor from its obligations hereunder if such Person ceases to be a  Subsidiary as a result of a transaction permitted under the Loan Documents.  Upon request by the Administrative Agent at any time, each Lender will confirm in writing  the Administrative Agent’s authority to release or subordinate its interest in particular types or  items of Collateral, or to release any Guarantor from its obligations under its guaranty pursuant to  this Section 12.09.   (b) The Administrative Agent will not be responsible for or have a duty to ascertain or  inquire into any representation or warranty regarding the existence, value or collectability of the  Collateral, the existence, priority or perfection of the Administrative Agent’s Lien thereon, or any  certificate prepared by any Obligor in connection therewith, nor will the Administrative Agent be  responsible or liable to the Lenders for any failure to monitor or maintain any portion of the  Collateral.   (c) Each Lender hereby appoints the Administrative Agent as its collateral agent under  each of the Security Documents and agrees that, in so acting, the Administrative Agent will have  all of the rights, protections, exculpations, indemnities and other benefits provided to the  Administrative Agent under this Agreement, and hereby authorizes and directs the Administrative  Agent, on behalf of such Lender and all Lenders, without the necessity of any notice to or further  consent from any of the Lenders, from time to time to (i) take any action with respect to any  Collateral or any Security Document which may be necessary to perfect and maintain perfected  the Liens on the Collateral granted pursuant to any such Security Document or protect and preserve  the Administrative Agent’s ability to enforce the Liens or realize upon the Collateral, (ii) act as  collateral agent for each Lender for purposes of acquiring, holding, enforcing and perfecting all  Liens created by the Loan Documents and all other purposes stated therein, (iii) enter into  intercreditor or subordination agreements, as the case may be, in connection with Indebtedness  permitted pursuant to Sections 9.01(e) and 9.01(l), as applicable, (iv) enter into non-disturbance  or similar agreements in connection with licensing agreements and arrangements permitted by this  Agreement and the other Loan Documents and (v) otherwise to take or refrain from taking any and  all action that the Administrative Agent shall deem necessary or advisable in fulfilling its role as  collateral agent under any of the Security Documents.  

 

  -84-  ARTICLE 13    MISCELLANEOUS   Section 13.01. No Waiver.  No failure on the part of the Administrative Agent or the Lenders  to exercise and no delay in exercising, and no course of dealing with respect to, any right, power  or privilege under any Loan Document shall operate as a waiver thereof, nor shall any single or  partial exercise of any right, power or privilege under any Loan Document preclude any other or  further exercise thereof or the exercise of any other right, power or privilege.  The remedies  provided herein are cumulative and not exclusive of any remedies provided by Law.   Section 13.02. Notices.  All notices, requests, instructions, directions and other  communications provided for herein (including any modifications of, or waivers, requests or  consents under, the Loan Documents) shall be given or made in writing (including by telecopy or  electronic mail) delivered, if to Borrower, another Obligor, the Administrative Agent or the  Lenders, to its address specified on Schedule 2 hereto or its Guarantee Assumption Agreement, as  the case may be, or at such other address as shall be designated by such party in a notice to the  other parties.  Except as otherwise provided in this Agreement, all such communications shall be  deemed to have been duly given upon receipt of a legible copy thereof, in each case given or  addressed as aforesaid.    Section 13.03. Expenses, Indemnification.   (a) Expenses.  Borrower agrees to pay or reimburse (i) the Administrative Agent and the  Lenders for all of their reasonable and documented out of pocket costs and expenses (including  the reasonable fees and expenses of Chapman and Cutler LLP, counsel to the Administrative  Agent) in connection with (x) the negotiation, preparation, execution and delivery of this  Agreement and the other Loan Documents and the making of the Loans (exclusive of post-closing  costs); provided that, so long as the Borrowing of the Tranche A Loan is made, such fees shall be  credited against the Expense Deposit paid by Borrower, (y) post-closing costs and (z) the  negotiation or preparation of any amendment, modification, supplement or waiver of any of the  terms of this Agreement or any of the other Loan Documents (whether or not consummated) and  (ii) the Administrative Agent and the Lenders for all of their reasonable and documented out of  pocket costs and expenses (including the reasonable fees and expenses of legal counsel) in  connection with any enforcement or collection proceedings resulting from the occurrence of an  Event of Default.   (b) Indemnification.  Each Obligor hereby indemnifies the Administrative Agent, the  Lenders, their respective Affiliates, and their respective directors, officers, employees, attorneys,  agents and advisors (each, an “Indemnified Party”) from and against, and agrees to hold them  harmless against, any and all Claims and Losses of any kind (including reasonable fees and  disbursements of counsel), joint or several, that is incurred by or asserted or awarded against any  Indemnified Party, in each case arising out of or in connection with or relating to any investigation,  litigation or proceeding or the preparation of any defense with respect thereto arising out of or in  connection with or relating to this Agreement or any of the other Loan Documents or the  Transactions or any use made or proposed to be made with the proceeds of the Loans, whether or  

 

  -85-  not such investigation, litigation or proceeding is brought by an Obligor, any of its shareholders or  creditors, an Indemnified Party or any other Person, or an Indemnified Party is otherwise a party  thereto, and whether or not any of the conditions precedent set forth in Article 6 are satisfied or  the other Transactions contemplated by this Agreement are consummated, except to the extent  such Claim or Loss is found in a final, non-appealable judgment by a court of competent  jurisdiction to have resulted from any Indemnified Party’s gross negligence or willful misconduct.   No Obligor shall assert any claim against any Indemnified Party, on any theory of liability, for  consequential, indirect, special or punitive damages arising out of or otherwise relating to this  Agreement or any of the other Loan Documents or any of the Transactions or the actual or  proposed use of the proceeds of the Loans.  This Section shall not apply to Taxes other than Taxes  relating to a non-Tax Claim or Loss governed by this Section 13.03(b).   Section 13.04. Amendments.  Except as otherwise expressly provided in this Agreement, any  provision of this Agreement or any other Loan Document (except for the Warrant Certificate,  which may be amended, modified, waived or supplemented in accordance with the terms thereof)  may be amended, modified, waived or supplemented only by an instrument in writing signed by  Borrower, the Administrative Agent and the Majority Lenders; provided that:   (a) no amendment, waiver or consent shall, unless in writing and signed by all  of the Lenders, do any of the following at any time:   (i) change the percentage of (x) the Commitments or (y) the aggregate  unpaid principal amount of the Loans that, in each case, shall be required for the  Lenders or any of them to take any action hereunder (including pursuant to any  change to the definition of “Majority Lenders”);   (ii) release one or more Guarantors (or otherwise limit such Guarantors’  liability with respect to the Obligations owing to the Lenders under the Guarantees)  if such release or limitation is in respect of all or substantially all of the value  represented by the Guarantees to the Lenders;   (iii) release, or subordinate the Lenders’ Liens in, all or substantially all  of the Collateral in any transaction or series of related transactions (other than in  connection with any sale of Collateral permitted herein); or   (iv) amend any provision of this Section 13.04;   (b) no amendment, waiver or consent shall, unless in writing and signed by each  Lender specified below for such amendment, waiver or consent:   (i) increase the Commitments of a Lender without the consent of such  Lender;   (ii) reduce the principal of, or stated rate of interest on, or any  Prepayment Premium payable on, the Loans owed to a Lender or any fees or other  

 

  -86-  amounts stated to be payable hereunder or under the other Loan Documents to such  Lender without the consent of such Lender;   (iii) postpone any date scheduled for any payment of principal of, or  interest on, the Loans, any date scheduled for payment or for any date fixed for any  payment of fees hereunder (excluding the due date of any mandatory prepayment  of a Loan), in each case payable to a Lender without the consent of such Lender;   (iv) change the order of application of prepayment of the Loans from the  application thereof set forth in the applicable provisions of Section 4.01(b)(ii) in  any manner that adversely affects the Lenders without the consent of holders of a  majority of the Commitments or Loans outstanding or otherwise change any  provision requiring the pro rata distributions hereunder among the Lenders without  all Lenders’ consent; or   (v) modify Section 2.02 without the consent of each Lender directly and  adversely affected thereby.   Section 13.05. Successors and Assigns.   (a) General.  The provisions of this Agreement shall be binding upon and inure to the  benefit of the parties hereto and their respective successors and assigns permitted hereby, except  that (i) no Obligor may assign or otherwise transfer any of its rights or obligations hereunder  without the prior written consent of the Administrative Agent and each Lender (and any attempted  assignment or transfer by such Obligor without such consent shall be null and void) and (ii) no  Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance  with this Section.  Nothing in this Agreement, expressed or implied, shall be construed to confer  upon any Person (other than the parties hereto, their respective successors and assigns permitted  hereby, Participants (to the extent provided in paragraph (e) of this Section) and, to the extent  expressly contemplated hereby, the Indemnified Parties of the Lenders) any legal or equitable  right, remedy or claim under or by reason of this Agreement.   (b) Amendments to Loan Documents; Majority Lender Vote.  Each of the Lenders and  the Obligors agrees to enter into such amendments to the Loan Documents, and such additional  Security Documents and other instruments and agreements, in each case in form and substance  reasonably acceptable to the Lenders and the Obligors, as shall reasonably be necessary to  implement and give effect to any assignment made by any Lender (or any direct or indirect  assignee thereof) from time to time under this Section 13.05.   (c) Assignments by Lenders.  (i) Subject to the conditions set forth in paragraph (c)(ii)  below, any Lender may assign to one or more Persons (other than an Ineligible Assignee) all or a  portion of its rights and obligations under the Loan Documents (including all or a portion of its  Commitment and the Loans at the time owing to it) with the prior written consent (such consent  not to be unreasonably withheld) of the Administrative Agent, provided that no consent of the  Administrative Agent shall be required for an assignment of any Commitment or of all or any  portion of a Loan to a Lender, an Affiliate of a Lender or an Approved Fund.  

 

  -87-   (ii) Assignments shall be subject to the following additional conditions:   (A) except in the case of an assignment to a Lender or an Affiliate of a Lender  or an assignment of the entire remaining amount of the assigning Lender’s Commitment  or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each  such assignment (determined as of the date the Assignment Agreement with respect to such  assignment is delivered to the Administrative Agent) shall not be less than $500,000, unless  the Administrative Agent otherwise consents;   (B) each partial assignment shall be made as an assignment of a proportionate  part of all the assigning Lender’s rights and obligations under this Agreement and the other  Loan Documents; and   (C) the parties to each assignment shall execute and deliver to the  Administrative Agent (with a copy to the Borrower, provided that the failure to give such  copy to the Borrower shall not affect the validity of such Assignment Agreement) an  Assignment Agreement in form and substance reasonably satisfactory to Administrative  Agent.   (iii) Subject to acceptance and recording thereof pursuant to paragraph (d) of this Section,  from and after the effective date specified in each Assignment Agreement, the assignee thereunder  shall be a party hereto and, to the extent of the interest assigned by such Assignment Agreement,  have the rights and obligations of a Lender under the Loan Documents, and the assigning Lender  thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released  from its obligations under the Loan Documents (and, in the case of an Assignment Agreement  covering all of the assigning Lender’s rights and obligations under the Loan Documents, such  Lender shall cease to be a party hereto).  Any assignment or transfer by a Lender of rights or  obligations under the Loan Documents that does not comply with this Section 13.05 shall be  treated for purposes of the Loan Documents as a sale by such Lender of a participation in such  rights and obligations in accordance with paragraph (e) of this Section.   (d) Register.  The Administrative Agent, acting for this purpose as a non-fiduciary agent  of Borrower, shall maintain at one of its offices a copy of each Assignment Agreement delivered  to it and a register for the recordation of the names and addresses of the Lenders, and the  Commitment of, and principal amount (and stated interest) of the Loans owing to, each Lender  pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall  be conclusive absent manifest error, and Borrower, the Administrative Agent, and the Lenders  shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a  Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The  Register shall be available for inspection by Borrower and any Lender, at any reasonable time and  from time to time upon reasonable prior notice.  No assignment shall be effective for purposes of  this Agreement unless (i) it has been recorded in the Register as provided in this paragraph and (ii)  any written consent to such assignment required by paragraph (b) of this Section has been obtained.   (e) Participations.  Any Lender may at any time, without the consent of, or notice to,  Borrower, sell participations to any Person (a “Participant”), other than an Ineligible Assignee, in  

 

  -88-  all or a portion of such Lender’s rights and obligations under the Loan Documents (including all  or a portion of its Commitment and the Loans owing to it); provided that (i) such Lender’s  obligations under the Loan Documents shall remain unchanged, (ii) such Lender shall remain  solely responsible to the other parties hereto for the performance of such obligations and (iii)  Borrower shall continue to deal solely and directly with such Lender in connection therewith.   (f) Any agreement or instrument pursuant to which a Lender sells such a participation  shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve  any amendment, modification or waiver of any provision of this Agreement; provided that such  agreement or instrument may provide that such Lender will not, without the consent of the  Participant, agree to any amendment, modification or waiver that would (i) increase or extend the  term of such Lender’s Commitment, (ii) extend the date fixed for the payment of principal of or  interest on the Loans or any portion of any fee hereunder payable to the Participant, (iii) reduce  the amount of any such payment of principal, or (iv) reduce the rate at which interest is payable  thereon to a level below the rate at which the Participant is entitled to receive such interest.   Borrower agrees that each Participant shall be entitled to the benefits of Section 5.03 (subject to  the requirements and limitations therein, including the requirements under Section 5.03(f) (it being  understood that the documentation required under Section 5.03(f) shall be delivered to Borrower  and the participating Lender)) to the same extent as if it were a Lender and had acquired its interest  by assignment pursuant to Section 13.05(a), provided that such Participant (A) agrees to be subject  to the provisions of Section 5.03(h) as if it were an assignee under Section 13.05(a); and (B) shall  not be entitled to receive any greater payment under Section 5.03, with respect to any participation,  than its participating Lender would have been entitled to receive, unless the sale of the participation  to such Participant is made with Borrower’s prior written consent.  To the extent permitted by  Law, each Participant also shall be entitled to the benefits of Section 4.04(a) as though it were a  Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non- fiduciary agent of Borrower, maintain a register on which it enters the name and address of each  Participant and the principal amounts (and stated interest) of each Participant’s interest in the  Loans or other obligations under the Loan Documents (the “Participant Register”); provided that  no Lender shall have any obligation to disclose all or any portion of the Participant Register  (including the identity of any Participant or any information relating to a Participant’s interest in  any commitments, loans, letters of credit or its other obligations under any Loan Document) to any  Person except to the extent that such disclosure is necessary to establish that such commitment,  loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United  States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent  manifest error, and such Lender shall treat each Person whose name is recorded in the Participant  Register as the owner of such participation for all purposes of this Agreement notwithstanding any  notice to the contrary.   (g) Certain Pledges.  Subject to Section 13.05(d), the Lenders may at any time pledge or  assign a security interest in all or any portion of its rights under this Agreement and any other Loan  Document to secure obligations of the Lenders, including any pledge or assignment to secure  obligations to a Federal Reserve Bank or another central bank; provided that no such pledge or  assignment shall release the Lenders from any of their obligations hereunder or substitute any such  pledgee or assignee for the Lenders as a party hereto.  

 

  -89-   Section 13.06. Survival.  The obligations of Borrower under Sections 5.01, 5.02, 5.03, 13.03,  13.05, 13.09, 13.10, 13.11, 13.12, 13.13, 13.14 and Article 11 (solely to the extent guaranteeing  any of the obligations under the foregoing Sections) shall survive the repayment of the Obligations  and the termination of the Commitments and, in the case of any Lender’s assignment of any interest  in the Commitments or the Loans hereunder, shall survive, in the case of any event or circumstance  that occurred prior to the effective date of such assignment, the making of such assignment,  notwithstanding that such Lenders may cease to be a “Lender” hereunder.  In addition, each  representation and warranty made, or deemed to be made by a notice of the Loans, herein or  pursuant hereto shall survive the making of such representation and warranty.   Section 13.07. Captions.  The table of contents and captions and section headings appearing  herein are included solely for convenience of reference and are not intended to affect the  interpretation of any provision of this Agreement.   Section 13.08. Counterparts.  This Agreement may be executed in any number of  counterparts, all of which taken together shall constitute one and the same instrument and any of  the parties hereto may execute this Agreement by signing any such counterpart. Delivery of an  executed signature page of this Agreement by facsimile transmission, electronic transmission (in  PDF format) or DocuSign shall be effective as delivery of a manually executed counterpart hereof.   The words “execution,” “signed,” “signature,” and words of like import in any Assignment  Agreement shall be deemed to include electronic signatures or the keeping of records in electronic  form, each of which shall be of the same legal effect, validity or enforceability as a manually  executed signature or the use of a paper-based recordkeeping system, as the case may be, to the  extent and as provided for in any applicable Law, including the Federal Electronic Signatures in  Global and National Commerce Act, the New York State Electronic Signatures and Records Act,  or any other similar state laws based on the Uniform Electronic Transactions Act.   Section 13.09. GOVERNING LAW.  THIS AGREEMENT AND THE OTHER LOAN  DOCUMENTS, THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND  THEREUNDER, AND ALL CLAIMS, DISPUTES AND MATTERS ARISING HEREUNDER  OR THEREUNDER OR RELATED HERETO OR THERETO, SHALL BE GOVERNED BY,  AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK  APPLICABLE TO CONTRACTS EXECUTED IN AND TO BE PERFORMED ENTIRELY  WITHIN THAT STATE, WITHOUT REFERENCE TO CONFLICTS OF LAWS PROVISIONS  (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).   Section 13.10. JURISDICTION, SERVICE OF PROCESS AND VENUE.   (a) SUBMISSION TO JURISDICTION.  EACH OBLIGOR AGREES THAT ANY  SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY  OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY OR ANY JUDGMENT ENTERED  BY ANY COURT IN RESPECT THEREOF SHALL BE BROUGHT IN THE SUPREME  COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR IN THE  UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK  AND IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF EACH  

 

  -90-  SUCH COURT FOR THE PURPOSE OF ANY SUCH SUIT, ACTION, PROCEEDING OR  JUDGMENT.   (b) Alternative Process.  Nothing herein shall in any way be deemed to limit the ability  of the Lenders to serve any such process or summonses in any other manner permitted by  applicable Law.   (c) WAIVER OF VENUE, ETC.  EACH OBLIGOR IRREVOCABLY WAIVES TO THE  FULLEST EXTENT PERMITTED BY LAW ANY OBJECTION THAT IT MAY NOW OR  HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUIT, ACTION OR  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER  LOAN DOCUMENT AND HEREBY FURTHER IRREVOCABLY WAIVES TO THE  FULLEST EXTENT PERMITTED BY LAW ANY CLAIM THAT ANY SUCH SUIT, ACTION  OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN  INCONVENIENT FORUM.  A FINAL JUDGMENT (IN RESPECT OF WHICH TIME FOR  ALL APPEALS HAS ELAPSED) IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL  BE CONCLUSIVE AND MAY BE ENFORCED IN ANY COURT TO THE JURISDICTION  OF WHICH SUCH OBLIGOR IS OR MAY BE SUBJECT, BY SUIT UPON JUDGMENT.   Section 13.11. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER  LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR  THEREBY.   Section 13.12. WAIVER OF IMMUNITY.  TO THE EXTENT THAT ANY OBLIGOR MAY  BE OR BECOME ENTITLED TO CLAIM FOR ITSELF OR ITS PROPERTY OR REVENUES  ANY IMMUNITY ON THE GROUND OF SOVEREIGNTY OR THE LIKE FROM SUIT,  COURT JURISDICTION, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID  OF EXECUTION OF A JUDGMENT OR EXECUTION OF A JUDGMENT, AND TO THE  EXTENT THAT IN ANY SUCH JURISDICTION THERE MAY BE ATTRIBUTED SUCH AN  IMMUNITY (WHETHER OR NOT CLAIMED), SUCH OBLIGOR HEREBY IRREVOCABLY  AGREES NOT TO CLAIM AND HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY  WITH RESPECT TO ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER  LOAN DOCUMENTS.   Section 13.13. Entire Agreement.  This Agreement and the other Loan Documents constitute  the entire agreement among the parties with respect to the subject matter hereof and thereof and  supersede any and all previous agreements and understandings, oral or written, relating to the  subject matter hereof.  Each Obligor acknowledges, represents and warrants that in deciding to  enter into this Agreement and the other Loan Documents or in taking or not taking any action  hereunder or thereunder, it has not relied, and will not rely, on any statement, representation,  warranty, covenant, agreement or understanding, whether written or oral, of or with the Lenders  other than those expressly set forth in this Agreement and the other Loan Documents.  

 

  -91-   Section 13.14. Severability.  If any provision hereof is found by a court to be invalid or  unenforceable, to the fullest extent permitted by applicable Law the parties agree that such  invalidity or unenforceability shall not impair the validity or enforceability of any other provision  hereof.   Section 13.15. No Fiduciary Relationship.  The Administrative Agent, each Lender and their  Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic  interests that conflict with those of the Obligors, their stockholders and/or their Affiliates  (collectively, solely for purposes of this paragraph, the “Obligors”). The Obligors acknowledge  that the Lenders have no fiduciary relationship with, or fiduciary duty to, any Obligor arising out  of or in connection with this Agreement or the other Loan Documents, and the relationship between  each Lender and each Obligor are solely that of creditors and debtors.  This Agreement and the  other Loan Documents do not create a joint venture among the parties.   Section 13.16. USA Patriot Act.  The Administrative Agent and the Lenders hereby notify  the Obligors that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.  107-56 (signed into law October 26, 2001)) (the “Act”) and 31 C.F.R. § 1010.230 (the “Beneficial  Ownership Regulation”), they are required to obtain, verify and record information that identifies  the Obligors, which information includes the name and address of each Obligor and other  information that will allow the Administrative Agent and such Lender to identify each Obligor in  accordance with the Act and Beneficial Ownership Regulation, including a beneficial ownership  certification in form and substance acceptable to the Administrative Agent.   Section 13.17. Treatment of Certain Information; Confidentiality.  The Lenders agree to  maintain the confidentiality of the Information (as defined below), except that Information may be  disclosed to (a) its Affiliates and to its and its Affiliates’ respective partners, directors, officers,  employees, agents, trustees, advisors and representatives (collectively, “Representatives”) (it  being understood that the Persons to whom such disclosure is made will be informed of the  confidential nature of such information and instructed to keep such Information confidential),  (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it  (including any self-regulatory authority, such as FINRA or the National Association of Insurance  Commissioners) or any exchange, (c) to the extent required by the applicable Laws or by any  subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise  of any remedies hereunder or under any other Loan Document or any action or proceeding relating  to this Agreement or any other Loan Document or the enforcement of rights hereunder or  thereunder, (f) subject to an agreement containing provisions substantially the same as those in  this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant  in, any of its rights or obligations under this Agreement or (ii) any actual or prospective  counterparty (or its advisors) to any swap or derivative transaction relating to Borrower or any  Guarantor and its obligation, (g) with the consent of Borrower or (h) to the extent such Information  (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes  available to the Lender, or any of its respective Representatives on a nonconfidential basis from a  source other than Borrower or any other Obligor.  For purposes of this Section, “Information”  means all information received from an Obligor relating such Obligor or its Subsidiary or any of  their respective businesses, except that the term “Information” shall not include, and the Lenders  shall not be subject to any confidentiality obligation with respect to any information that (i) is or  

 

  -92-  becomes available to the Lender or any of its Representatives on a nonconfidential basis prior to  disclosure by an Obligor or its Subsidiary, (ii) becomes available to a Lender or any of its  Representatives after disclosure by Borrower or any other Obligor from a source that, to the  knowledge of such Lender, is not subject to a confidentiality obligation to Borrower or such other  Obligor (iii) is or becomes publicly available other than as a result of a breach by such Lender, or  (iv) is developed by a Lender or any of its Representatives.  Any Person required to maintain the  confidentiality of Information as provided in this Section shall be considered to have complied  with its obligation to do so if such Person has exercised the same degree of care to maintain the  confidentiality of such Information as such Person would accord to its own confidential  information.  In the case of any Lender that has elected to receive material non-public information  pursuant to the last paragraph of Section 8.02, such Lender acknowledges that (a) the Information  may include material non-public information concerning an Obligor or its Subsidiary, as the case  may be, (b) it has developed compliance procedures regarding the use of material non-public  information and (c) it will handle such material non-public information in accordance with  applicable Law, including United States federal and state securities Laws.   Section 13.18. Releases of Guarantees and Liens.  (a) Notwithstanding anything to the  contrary contained herein or in any other Loan Document, each Lender agrees, and the  Administrative Agent is hereby irrevocably authorized by each Lender and given a limited power  of attorney by each Lender to perform the actions described hereafter in this Section 13.18 (without  requirement of notice to or consent of any Lender except as expressly required by Section 13.04)  to take any action reasonably requested by Borrower having the effect of releasing any Collateral  or Obligations (i) to the extent necessary to permit consummation of any transaction not prohibited  by any Loan Document or that has been consented to by the Lenders or (ii) under the circumstances  described in paragraph (b) below.   (b) At such time as the Loans and the other Obligations (other than the inchoate  indemnity obligations) under the Loan Documents shall have been paid in full in cash and the  Commitments have been terminated, the Collateral shall be released from the Liens created by the  Security Documents, and the Security Documents and all obligations (other than those expressly  stated to survive such termination) of the Administrative Agent and each Obligor under the  Security Documents shall terminate, all without delivery of any instrument or performance of any  act by any Person.   Section 13.19. Acknowledgement and Consent to Bail-In of Affected Financial Institutions.   Notwithstanding anything to the contrary in any Loan Document or in any other agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any  liability of any Affected Financial Institution arising under any Loan Document, to the extent such  liability is unsecured, may be subject to the write-down and conversion powers of the applicable  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:   (a) the application of any Write-Down and Conversion Powers by the  applicable Resolution Authority to any such liabilities arising hereunder which may be  payable to it by any party hereto that is an Affected Financial Institution; and  

 

  -93-   (b) the effects of any Bail-In Action on any such liability, including, if  applicable:   (i) a reduction in full or in part or cancellation of any such liability;   (ii) a conversion of all, or a portion of, such liability into shares or other  instruments of ownership in such Affected Financial Institution, its parent  undertaking, or a bridge institution that may be issued to it or otherwise conferred  on it, and that such shares or other instruments of ownership will be accepted by it  in lieu of any rights with respect to any such liability under this Agreement or any  other Loan Document; or   (iii) the variation of the terms of such liability in connection with the  exercise of the write-down and conversion powers of the Applicable Resolution  Authority.    [Remainder of the Page Intentionally Left Blank; Signature Pages Follow]    

 

  [Signature Page to Credit Agreement and Guaranty]    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed  and delivered as of the day and year first above written.  BORROWER:  ISOPLEXIS CORPORATION  By: ___________________________________    Name:   Title:          

 

  [Signature Page to Credit Agreement and Guaranty]    PERCEPTIVE CREDIT HOLDINGS III, LP,   as Administrative Agent and a Lender  By: Perceptive Credit Opportunities GP, LLC,   its general partner  By: ________________________________   Name: Sandeep Dixit  Title: Chief Credit Officer  By: ________________________________   Name: Sam Chawla  Title: Portfolio Manager    

 

   Exhibit B-1  ANNEX C  Exhibit B  to Credit Agreement    FORM OF BORROWING NOTICE      Date: [________________]  To: Perceptive Credit Holdings III, LP, as Administrative Agent   c/o Perceptive Advisors LLC   51 Astor Place, 10th Floor   New York, NY 10003   Attn: Sandeep Dixit   Email: Sandeep@perceptivelife.com   Email: PCOFReporting@perceptivelife.com   Re:  Borrowing under Credit Agreement  Ladies and Gentlemen:  The undersigned, ISOPLEXIS CORPORATION, a Delaware corporation (“Borrower”),  refers to the Credit Agreement and Guaranty, dated as of December 30, 2020 (as from time to  time amended, restated, supplemented or otherwise modified, the “Credit Agreement”), among  Borrower, the Guarantors from time to time party thereto, and PERCEPTIVE CREDIT HOLDINGS  III, LP, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).   The terms defined in the Credit Agreement are herein used as therein defined.  Borrower hereby gives you notice irrevocably, pursuant to Section 2.01[(a)/(b)/(c)/(d)]  of the Credit Agreement, of the borrowing of the Loans specified herein:  1. The proposed Tranche [A/B/C/D] Loan Borrowing Date is [________________].  2. The amount of the proposed Borrowing is $[________________].  3. The payment instructions with respect to the funds to be made available to  Borrower are as set forth on the Funds Flow attached hereto as Exhibit A:  4.  Borrower hereby certifies that the following statements are true on the date  hereof, and will be true on the date of the proposed borrowing of the Loans, before and after  giving effect thereto and to the application of the proceeds therefrom:  a) the representations and warranties made by the Obligors in Article 7 of the Credit  Agreement are true and correct in all material respects (except that such materiality qualifier  

 

Exhibit B-2  shall not be applicable to any representation or warranty that already is qualified or modified as  to “materiality” or “Material Adverse Effect” in the text thereof, which representation or  warranty shall be true and correct in all respects subject to such qualification) on and as of the  Tranche [A/B/C/D] Loan Borrowing Date and immediately after giving effect to the application  of the proceeds of the Borrowing, with the same force and effect as if made on and as of such  date except that to the extent that any such representation or warranty refers to a specific earlier  date in which case such representation or warranty shall be true and correct on and as of such  earlier date;  b) the conditions set forth in Section [6.01/6.02/6.03/6.04] of the Credit Agreement  have been satisfied on or prior to the Tranche [A/B/C/D] Loan Borrowing Date; and  c) no Default exists or would result from the proposed Borrowing or from the  application of the proceeds therefrom.  [signature to follow]      

 

Exhibit B-3    IN WITNESS WHEREOF, Borrower has caused this Borrowing Notice to be duly  executed and delivered as of the day and year first above written.    BORROWER:    ISOPLEXIS CORPORATION    By: _______________________________   Name:    Title:

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