Document:

Exhibit

Exhibit 10.2

SECOND AMENDMENT TO TERM LOAN, GUARANTY AND SECURITY AGREEMENT
This SECOND AMENDMENT TO LOAN, GUARANTY AND SECURITY AGREEMENT (this “Amendment”) is dated as of December 1, 2015, and is entered into by and among TURTLE BEACH CORPORATION, a Nevada corporation, formerly known as Parametric Sound Corporation (“Parametric”), VOYETRA TURTLE BEACH, INC., a Delaware corporation (“Voyetra”; and together with Parametric, individually, “US Borrower,” and individually and collectively, jointly and severally, “US Borrowers”), TURTLE BEACH EUROPE LIMITED, a company limited by shares and incorporated in England and Wales with company number 03819186 (“Turtle Beach,” also referred to hereinafter as “UK Borrower”; and together with US Borrowers, individually, “Borrower,” and individually and collectively, “Borrowers”), VTB HOLDINGS, INC., a Delaware corporation (“VTB”, individually, a “US Guarantor,” and individually and collectively, jointly and severally, “US Guarantors”; and together with US Borrowers, individually, a “UK Guarantor,” and individually and collectively, jointly and severally, “UK Guarantors”; UK Guarantors and US Guarantors, individually, a “Guarantor,” and individually and collectively, “Guarantors”), CRYSTAL FINANCIAL SPV LLC, CRYSTAL FINANCIAL LLC and the other lenders party to the Term Loan Agreement (as such term is defined below) from time to time (collectively, “Lenders”), and CRYSTAL FINANCIAL LLC, as agent, collateral agent and security trustee for Lenders (in such capacities, together with its successors and assigns in such capacities, “Agent”). 
WHEREAS, Borrowers, Guarantors, Agent, and Lenders have entered into that certain Term Loan, Guaranty and Security Agreement, dated as of July 22, 2015, as amended by that certain First Amendment to Term Loan, Guaranty and Security Agreement, dated as of November 2, 2015 (the “First Amendment”) (as further amended, restated, or otherwise modified from time to time, the “Term Loan Agreement”); and
WHEREAS, Borrowers have requested that Agent and Lenders agree to enter into certain amendments to the Term Loan Agreement.
NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in the Term Loan Agreement and this Amendment, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
ARTICLE I

DEFINITIONS

Initially capitalized terms used but not otherwise defined in this Amendment have the respective meanings set forth in the Term Loan Agreement, as amended hereby.
ARTICLE II

AMENDMENTS TO TERM LOAN AGREEMENT

2.01.    New/Amended Definitions.
(a)    Section 1.1 of the Term Loan Agreement is hereby amended by inserting the following defined terms in the appropriate alphabetical order therein:

Hypersound Division EBITDA:  for any period, EBITDA for the Hypersound Division (as determined in a manner consistent with the definition of “EBITDA” above, but solely with respect to items attributable to the Hypersound Division); provided, however, that calculation of EBITDA for the Hypersound Division shall be determined in accordance with methodology used in the projections delivered to Agent on or prior to the Closing Date or in such other manner acceptable to Agent in its discretion.
Second Amendment: that certain Second Amendment to Term Loan, Guaranty and Security Agreement, dated as of December 1, 2015, by and among Borrowers, Guarantors, Lenders and Agent.
Second Amendment Effective Date: as defined in the Second Amendment.
Second Amendment Specified Mandatory Prepayment Date: as defined in the Second Amendment.
(b)    The definition of “ABL Revolver Cure Net Proceeds” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(c)    The definition of “Availability Block” set forth in Section 1.1 of the Term Loan Amendment is hereby is hereby deleted in its entirety and the following is inserted in lieu thereof:
“Availability Block:  the sum of (i) an amount equal to (x) prior to January 1, 2016, $8,000,000, and (y) from and after January 1, 2016, $9,000,000, and (ii) the Seasonal Availability Block then in effect.
(d)    The definition of “Cure Amount” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(e)    The definition of “Cure Availability Block” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(f)    The definition of “Cure Expiration Date” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(g)    The definition of “Cure Month” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(h)    The definition of “Cure Net Proceeds” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(i)    The definition of “Cure Notice Date” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(j)    The definition of “Seasonal Availability Block” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof:
Seasonal Availability Block: (i) for the period commencing on (and including) February 15 of each calendar year and ending on (and including) March 16 of such 

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calendar year (other than for calendar year 2016, as set forth in clause (ii) hereof), $8,000,000, (ii) for the period commencing on (and including) February 15, 2016, through (and including) March 16, 2016, zero (0), and (iii) at all other times, zero (0).
(k)    The definition of “Simultaneous Equity Cure” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(l)    The definition of “Specified Financial Covenants” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(m)    The definition of “Term Loan Cure Net Proceeds” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety.
(n)    Clause (a)(ii) in the definition of “UK Maximum Borrowing Amount” set forth in Section 1.1 of the Term Loan Agreement is hereby amended by deleting the text “minus the UK Availability Reserve” in such clause (a)(ii). 
(o)    The definition of “US Maximum Borrowing Amount” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof: 
“US Maximum Borrowing Availability:  an amount equal to the lesser of (a) the sum of (i) the aggregate US Term Exposure, plus (ii) the result of the ABL US Revolver Commitments then in effect (or, if such commitments have been terminated, the aggregate ABL Revolver Usage), minus the Availability Block and (b) the US Borrowing Base at such time.”
(p)    The definition of “US Term Loan Deficiency Reserve” set forth in Section 1.1 of the Term Loan Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof:
US Term Loan Deficiency Reserve:  the “US Term Loan Deficiency Reserve” as defined in the ABL Revolver Loan Agreement as in effect on the Closing Date, as amended on the Second Amendment Effective Date, and without giving effect to any further amendments or modifications of such definition or any component definitions (or any sub-component definitions) thereof which would make more credit available to any of the Obligors.
2.02.    Amendment to Section 5.3.5.  The text of Section 5.3.5 of the Term Loan Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof:
[Reserved].
2.03.    Amendments to Section 8.1.2.      Section 8.1.2 of the Term Loan Agreement is hereby amended by deleting the text “the “Temporary Availability Block”, the “Seasonal Availability Block” or the “Cure Availability Block” ” that appears therein in its entirety and the following is inserted in lieu thereof:
“the “Temporary Availability Block”, or the “Seasonal Availability Block””.

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2.04.    Amendments to Section 10.3.  Section 10.3 of the Term Loan Agreement is hereby amended as follows:
(a)    Section 10.3.1 of the Term Loan Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof:
10.3.1    EBITDA.  Commencing with the month ending October 31, 2016, maintain an EBITDA for Parent and its Subsidiaries on a consolidated basis (measured monthly as of the last day of each month for the trailing twelve month period then-ended) in an amount not less than the amount set forth in the table below opposite such date:
	
		
	Trailing Twelve-Month Period Ending
	Required EBITDA

	October 31, 2016
	($3,637,000)

	November 30, 2016
	($3,091,000)

	December 31, 2016
	($1,673,000)

	January 31, 2017
	($924,000)

	February 28, 2017
	($79,000)

	March 31, 2017
	$1,968,000

	April 30, 2017, May 31, 2017, and June 30, 2017
	$18,700,000

	July 31, 2017, August 31, 2017, and September 30, 2017
	$19,500,000

	October 31, 2017 and the last day of each month thereafter
	$20,000,000

(b)    Section 10.3.2 of the Term Loan Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof:
10.3.2    Minimum Headset Division EBITDA. Commencing with the month ending October 31, 2016, maintain a Headset Division EBITDA (measured monthly as of the last day of each month for the trailing twelve month period then-ended) in an amount not less than the amount set forth in the table below opposite such date:
	
		
	Trailing Twelve-Month Period Ending
	Headset Division EBITDA

	October 31, 2016
	$9,346,000

	November 30, 2016
	$8,917,000

	December 31, 2016
	$9,584,000

	January 31, 2017
	$9,693,000

	February 28, 2017
	$9,553,000

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	March 31, 2017
	$10,555,000

	April 30, 2017, May 31, 2017, June 30, 2017, July 31, 2017, August 31, 2017, and September 30, 2017
	$18,000,000

	October 31, 2017, November 30, 2017, and December 31, 2017
	$19,000,000

	January 31, 2018, February 28, 2018, and March 31, 2018
	$19,250,000

	April 30, 2018, May 31, 2018, and June 30, 2018
	$19,500,000

	July 31, 2018 and the last day of each month thereafter
	$20,000,000

(c)    Section 10.3.3 of the Term Loan Agreement is hereby amended by adding the following sentence at the end of such Section 10.3.3:
Notwithstanding the foregoing in this Section 10.3.3, Consolidated Leverage Ratio shall not be tested pursuant to this Section 10.3.3 solely for the periods ending December 31, 2015, January 31, 2016, February 29, 2016, March 31, 2016, April 30, 2016, May 31, 2016, June 30, 2016, July 31, 2016, August 31, 2016, September 30, 2016, October 31, 2016, November 30, 2016, December 31, 2016, January 31, 2017, February 28, 2017, and March 31, 2017.
(d)    Section 10.3.4 of the Term Loan Agreement is hereby amended by deleting the amount “$7,200,000” under the heading “Capital Expenditure” and opposite the date “December 31, 2016” in the table appearing in such Section in its entirety and the amount “$5,750,000” is inserted in lieu thereof in such table.
(e)    Section 10.3 of the Term Loan Agreement is hereby amended to insert the following new Sections 10.3.7, 10.3.8 and 10.3.9 immediately after Section 10.3.6 contained therein:
10.3.7    Alternate EBITDA #2.  Commencing with the month ending December 31, 2015, and continuing through (and including) the month ending September 30, 2016, maintain EBITDA in the amount set forth below for each such month, measured on a period-to-date basis commencing on November 1, 2015, and ending on the last day of each such month:
	
		
	Month-Ending Testing Date
	Required EBITDA

	December 31, 2015
	$8,000,000

	January 31, 2016
	$4,774,000

	February 29, 2016
	$2,050,000

	March 31, 2016
	($1,512,000)

	April 30, 2016
	($3,737,000)

	May 31, 2016
	($5,709,000)

	June 30, 2016
	($7,777,000)

	July 31, 2016
	($9,046,000)

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	August 31, 2016
	($8,573,000)

	September 30, 2016
	($7,889,000)

10.3.8    Alternate Headset Division EBITDA #2. Commencing with the month ending December 31, 2015, and continuing through (and including) the month ending September 30, 2016, maintain Headset Division EBITDA in the amount set forth below for each such month, measured on a period-to-date basis commencing on November 1, 2015, and ending on the last day of each such month:
	
		
	Month-Ending Testing Date
	Required Headset Division EBITDA

	December 31, 2015
	$10,760,000

	January 31, 2016
	$8,824,000

	February 29, 2016
	$7,363,000

	March 31, 2016
	$5,044,000

	April 30, 2016
	$3,939,000

	May 31, 2016
	$3,045,000

	June 30, 2016
	$1,989,000

	July 31, 2016
	$1,644,000

	August 31, 2016
	$2,981,000

	September 30, 2016
	$4,472,000

10.3.9    HYPERSOUND DIVISION EBITDA.  
(a)    Commencing with the month ending December 31, 2015, and continuing through (and including) the month ending September 30, 2016, maintain Hypersound Division EBITDA in the amount set forth below for each such month, measured on a period-to-date basis commencing on November 1, 2015, and ending on the last day of each such month:
	
		
	Month-Ending Testing Date
	Required Hypersound Division EBITDA

	December 31, 2015
	($2,760,000)

	January 31, 2016
	($4,051,000)

	February 29, 2016
	($5,313,000)

	March 31, 2016
	($6,555,000)

	April 30, 2016
	($7,676,000)

	May 31, 2016
	($8,754,000)

	June 30, 2016
	($9,766,000)

	July 31, 2016
	($10,689,000)

	August 31, 2016
	($11,553,000)

	September 30, 2016
	($12,361,000)

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(b)    Commencing with the month ending October 31, 2016, maintain Hypersound Division EBITDA (measured monthly as of the last day of each month for the trailing twelve month period then-ended) in an amount not less than the amount set forth in the table below opposite such date:
	
		
	Trailing Twelve-Month Period Ending
	Required Hypersound Division EBITDA

	October 31, 2016
	($12,983,000)

	November 30, 2016
	($12,009,000)

	December 31, 2016
	($11,258,000)

	January 31, 2017
	($10,617,000)

	February 28, 2017
	($9,632,000)

	March 31, 2017
	($8,587,000)

2.05.    Amendment to Section 12.6. Section 12.6 (Limited Right to Cure) of the Term Loan Agreement is hereby deleted in its entirety.
2.06.    Amendment to Section 13.8. Section 13.8.1 of the Term Loan Agreement is hereby amended by deleted the penultimate sentence contained therein and inserting the following in lieu thereof:
On the effective date of its resignation or removal, the retiring or removed Agent shall be discharged from its duties and obligations hereunder but shall continue to have all rights and protections under the Loan Documents with respect to actions taken or omitted to be taken by it while Agent, including the indemnification set forth in Section 14.2, and all rights and protections under this Section 13.
2.07.    Amendment to Section 5.02 of First Amendment.  Section 5.02 of the First Amendment is hereby amended by deleting each reference to “November 30, 2015” in such Section 5.02 and substituting the date “December 7, 2015” in lieu thereof.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Each Obligor hereby represents and warrants to Agent and each Lender, as of the date hereof, as follows:
3.01.    Representations and Warranties. After giving effect to this Amendment, the representations and warranties set forth in Section 9 of the Term Loan Agreement and in each other Loan Document are true and correct in all material respects on and as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate solely to an earlier date.
3.02.    No Defaults. After giving effect to this Amendment, each Obligor is in compliance with all terms and conditions of the Term Loan Agreement and the other Loan Documents on its part to be observed and performed and no Default or Event of Default has occurred and is continuing.

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3.03.    Authority and Pending Actions. The execution, delivery, and performance by each Obligor of this Amendment has been duly authorized by each such Obligor (as applicable) and there is no action pending or any judgment, order, or decree in effect which is likely to restrain, prevent, or impose materially adverse conditions upon the performance by any Obligor of its obligations under the Term Loan Agreement or the other Loan Documents.
3.04.    Enforceability. This Amendment constitutes the legal, valid, and binding obligation of each Obligor, enforceable against each such Obligor in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization, or other similar laws affecting the enforcement of creditors’ rights or by the effect of general equitable principles.
ARTICLE IV

CONDITIONS PRECEDENT AND FURTHER ACTIONS

4.01.    Conditions Precedent. This Amendment shall not be binding upon Agent, Lenders or any Obligor until each of the following conditions precedent have been satisfied in form and substance satisfactory to Agent (such date, the “Second Amendment Effective Date”):
(a)    The representations and warranties contained herein and in the Term Loan Agreement, as amended hereby, shall be true and correct in all material respects as of the date hereof, after giving effect to this Amendment, as if made on such date, except for such representations and warranties limited by their terms to a specific date;
(b)    Each Obligor shall have delivered to the Agent duly executed counterparts of this Amendment which, when taken together, bear the authorized signatures of the Obligors, the Agent, and the Lenders;
(c)    Obligors shall have delivered to Agent a fully-executed copy of an amendment to the ABL Revolver Loan Agreement substantially similar to this Amendment (the “Seventh Amendment to ABL Revolver Loan Agreement”) and otherwise acceptable to Agent and Lenders;
(d)    The Agent shall have received a fully-executed and effective amendment to the Intercreditor Agreement in form and substance satisfactory to the Agent and Lenders; and 
(e)    Obligors shall have paid to Agent, for the benefit of itself and Lenders, a fee in the amount of $150,000 (the “Second Amendment Fee”) in immediately available funds, which Second Amendment Fee each Obligor hereby expressly agrees and acknowledges shall be fully earned as of the Second Amendment Effective Date.
4.02.    Further Actions. Each of the parties to this Amendment agrees that at any time and from time to time upon the written request of any other party, it will execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to affect the purposes of this Amendment.
ARTICLE V
FFIRMATIVE COVENANTS 

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5.01.    Equity Infusion and/or Additional Third Lien Debt. 
(f)    The Obligors hereby covenant and agree that, on or prior to January 29, 2016 (the “Second Amendment Specified Mandatory Prepayment Date”), (a) US Obligors shall receive net proceeds of not less than $10,000,000 in the form of (i) additional equity capital, in form and substance, and on terms, satisfactory to Agent in all respects and/or (ii) additional debt financing from either Sponsor or the other Third Lien Creditors pursuant to the Third Lien Subordinated Note(s) and the other Third Lien Loan Documents, which shall be in form and substance, and on terms (including subordination terms), satisfactory to the Agent in all respects and (b) the net proceeds of any such equity capital and/or additional Third Lien Debt in an aggregate amount of not less than $10,000,000 shall be applied as a mandatory prepayment of the ABL Revolver Loans outstanding on the Second Amendment Specified Mandatory Prepayment Date (and solely to the extent that the outstanding principal balance of ABL Revolver Loans has been reduced by such mandatory prepayment to, or is, $0, such net proceeds may be received as cash to the balance sheet of the US Obligors for use as working capital in the business of the US Obligors) (such transaction, and all matters related thereto, entered into in connection therewith or contemplated thereby, collectively, the “Additional Liquidity Transaction”).
(g)    The Obligors hereby covenant and agree to (i) provide the Agent with status updates with respect to the Additional Liquidity Transaction on (w) December 15, 2015, (x) December 31, 2015, (y) January 8, 2016 and (z) January 15, 2016, and as otherwise reasonably requested by the Agent, and such status updates shall be in scope and detail satisfactory to the Agent in all respects, and (ii) deliver to the Agent all presentations prepared for, or delivered to, investors or potential investors in connection the Additional Liquidity Transaction, including, without limitation, that certain presentation used by Oppenheimer with certain investors, promptly after such preparation and/or delivery, and deliver to the Agent any other written materials in connection with the Additional Liquidity Transaction as the Agent may request from time to time.
ARTICLE VI

COSTS AND EXPENSES

Without limiting the terms and conditions of the Loan Documents, notwithstanding anything in the Loan Documents to the contrary, Obligors jointly and severally agree to pay on demand: (a) all reasonable costs and expenses incurred by Agent in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant to this Amendment and any and all subsequent amendments, modifications, and supplements to this Amendment, including, without limitation, the reasonable costs and fees of Agent’s legal counsel; and (b) all reasonable costs and expenses reasonably incurred by Agent in connection with the enforcement or preservation of any rights under the Term Loan Agreement, this Amendment, and/or the other Loan Documents, including, without limitation, the reasonable costs and fees of Agent’s legal counsel.
ARTICLE VII

MISCELLANEOUS

7.01.    No Course of Dealing. The consents and waivers set forth herein are a one-time accommodation only.  The consents and waivers herein are not a consent to any other deviation of the terms and conditions of the Term Loan Agreement or any other Loan Document unless otherwise expressly agreed to by Agent and Lenders in writing.

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7.02.    Cross-References. References in this Amendment to any Section are, unless otherwise specified, to such Section of this Amendment.
7.03.    Instrument Pursuant to Term Loan Agreement. This Amendment is a Loan Document executed pursuant to the Term Loan Agreement and shall (unless otherwise expressly indicated herein) be construed, administered, and applied in accordance with the terms and provisions of the Term Loan Agreement.  Any failure by the Obligors to comply with any of the terms and conditions of this Amendment, including, without limitation, any of the undertakings set forth in Article V hereof, shall constitute an immediate Event of Default.
7.04.    Acknowledgment of the Obligors. Each Obligor hereby represents and warrants that the execution and delivery of this Amendment and compliance by such Obligor with all of the provisions of this Amendment: (a) are within the powers and purposes of such Obligor; (b) have been duly authorized or approved by the board of directors (or other appropriate governing body) of such Obligor; and (c) when executed and delivered by or on behalf of such Obligor will constitute valid and binding obligations of such Obligor, enforceable in accordance with its terms. Each Obligor reaffirms its obligations to perform and pay all amounts due to Agent or Lenders under the Loan Documents (including, without limitation, its obligations under any promissory note evidencing any of the Loans) in accordance with the terms thereof, as amended and modified hereby.
7.05.    Loan Documents Unmodified. Each of the amendments provided herein shall apply and be effective only with respect to the provisions of the Loan Document specifically referred to by such amendments. Except as otherwise specifically modified by this Amendment, all terms and provisions of the Term Loan Agreement and all other Loan Documents, as modified hereby, shall remain in full force and effect and are hereby ratified and confirmed in all respects. Nothing contained in this Amendment shall in any way impair the validity or enforceability of the Loan Documents, as modified hereby, or alter, waive, annul, vary, affect, or impair any provisions, conditions, or covenants contained therein or any rights, powers, or remedies granted therein, except as otherwise specifically provided in this Amendment. Subject to the terms of this Amendment, any lien and/or security interest granted to Agent, for the benefit of Lenders and the other Secured Parties, in the Collateral set forth in the Loan Documents shall remain unchanged and in full force and effect and the Term Loan Agreement and the other Loan Documents shall continue to secure the payment and performance of all of the Obligations.
7.06.    Parties, Successors and Assigns. This Amendment represents the agreement of Obligors, Agent and each Lender signatory hereto with respect to the subject matter hereof, and there are no promises, undertakings, representations, or warranties relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents. This Amendment shall be binding upon and inure to the benefit of Obligors, Agent, Lenders, and their respective successors and assigns, except that (a) no Borrower shall have the right to assign its rights or delegate its obligations under any Loan Documents; and (b) any assignment by a Lender must be made in compliance with Section 14.3 of the Term Loan Agreement.
7.07.    Counterparts. This Amendment may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of a signature page of this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of such agreement. This Amendment may be executed and delivered by facsimile or electronic mail, and will have the same force and effect as manually signed originals.

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7.08.    Headings. The headings, captions, and arrangements used in this Amendment are for convenience only, are not a part of this Amendment, and shall not affect the interpretation hereof.
7.09.    Miscellaneous. This Amendment is subject to the general provisions set forth in the Term Loan Agreement, including, but not limited to, Sections 15.14, 15.15, and 15.16.
7.10.    Severability. Wherever possible, each provision of the Loan Documents shall be interpreted in such manner as to be valid under Applicable Law. If any provision is found to be invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the remaining provisions of the Loan Documents shall remain in full force and effect.
7.11.    Release.
(a)    EACH OBLIGOR HEREBY IRREVOCABLY RELEASES AND FOREVER DISCHARGES AGENT, LENDERS AND THEIR AFFILIATES, AND EACH SUCH PERSON’S RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, MEMBERS, ATTORNEYS AND REPRESENTATIVES (EACH, A “RELEASED PERSON”) OF AND FROM ALL DAMAGES, LOSSES, CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, ACTIONS OR CAUSES OF ACTION WHATSOEVER (EACH, A “CLAIM”) THAT SUCH OBLIGOR MAY NOW HAVE OR CLAIM TO HAVE AGAINST ANY RELEASED PERSON ON THE DATE OF THIS AMENDMENT, WHETHER KNOWN OR UNKNOWN, OF EVERY NATURE AND EXTENT WHATSOEVER, FOR OR BECAUSE OF ANY MATTER OR THING DONE, OMITTED OR SUFFERED TO BE DONE OR OMITTED BY ANY OF THE RELEASED PERSONS THAT BOTH (1) OCCURRED PRIOR TO OR ON THE DATE OF THIS AMENDMENT AND (2) IS ON ACCOUNT OF OR IN ANY WAY CONCERNING, ARISING OUT OF OR FOUNDED UPON THE TERM LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT.
(b)    EACH OBLIGOR INTENDS THE ABOVE RELEASE TO COVER, ENCOMPASS, RELEASE, AND EXTINGUISH, INTER ALIA, ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION THAT MIGHT OTHERWISE BE RESERVED BY THE CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
(c)    EACH OBLIGOR ACKNOWLEDGES THAT IT MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO THOSE NOW KNOWN OR BELIEVED TO BE TRUE WITH RESPECT TO SUCH CLAIMS, DEMANDS, OR CAUSES OF ACTION, AND AGREES THAT THIS AMENDMENT AND THE ABOVE RELEASE ARE AND WILL REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING ANY SUCH DIFFERENCES OR ADDITIONAL FACTS.
7.12.    Total Agreement. This Amendment, the Term Loan Agreement, and all other Loan Documents constitute the entire agreement, and supersede all prior understandings and agreements, among the parties relating to the subject matter hereof.

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7.13.    Amendment to ABL Revolver Loan Agreement. Each of the undersigned Lenders and the Agent hereby acknowledge that as of the Second Amendment Effective Date, the Obligors, the ABL Revolver Agent and the ABL Revolver Lenders are agreeing to the Seventh Amendment to Loan Agreement in the form attached hereto as Annex I.  The Agent and the Lenders hereby acknowledge and consent to the Seventh Amendment to ABL Revolver Loan Agreement, including, without limitation, for purposes of the Intercreditor Agreement.  
[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the day and year first written above.
BORROWERS:

TURTLE BEACH CORPORATION, 
a Nevada corporation

By: /s/ Juergen Stark     
Name:      Juergen Stark 
Title:     Chief Executive Officer 

VOYETRA TURTLE BEACH, INC.,  
a Delaware corporation

By: /s/ Juergen Stark     
Name:      Juergen Stark 
Title:     Chief Executive Officer 

TURTLE BEACH EUROPE LIMITED,  
a company limited by shares and incorporated in England and Wales

By: /s/ Juergen Stark     
Name:      Juergen Stark 
Title:     Chief Executive Officer 

AGENT AND LENDERS:

CRYSTAL FINANCIAL LCC, as Agent 

By: /s/ Mirko Andric     
Name:  Mirko Andric 
Title: Managing Director 

CRYSTAL FINANCIAL SPV LLC, as a Lender

By: /s/ Mirko Andric     
Name:  Mirko Andric 
Title: Managing Director 

CRYSTAL FINANCIAL LLC, as a Lender

By: /s/ Mirko Andric     
Name:  Mirko Andric 
Title: Managing Director 

GUARANTOR CONSENT
The undersigned hereby consents to the foregoing Amendment and hereby (a) confirms and agrees that notwithstanding the effectiveness of the foregoing Amendment, each Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that, on and after the effectiveness of the foregoing Amendment, each reference in any Loan Document to the “Term Loan Agreement,” “thereunder,” “thereof” or words of like import shall mean and be a reference to the Term Loan Agreement, as amended by the foregoing Amendment, (b) confirms and agrees that the pledge and security interest in the Collateral granted by it pursuant to any Security Documents to which it is a party shall continue in full force and effect, (c) acknowledges and agrees that such pledge and security interest in the Collateral granted by it pursuant to such Security Documents shall continue to secure the Obligations purported to be secured thereby, as amended or otherwise affected hereby, and (d) agrees to be bound by the release set forth in Section 7.11 of the Amendment.

VTB HOLDINGS, INC., a Delaware corporation

By: /s/ Juergen Stark     
Name:  Juergen Stark 
Title: Chief Executive Officer 

Guarantor Consent to Second Amendment to Term Loan, Guaranty and Security Agreement

ANNEX I
SEVENTH AMENDMENT TO ABL REVOLVER LOAN AGREEMENT

Please see attached.Exhibit 4.1

POSITIVEID CORPORATION

 

 

CERTIFICATE OF DESIGNATIONS OF PREFERENCES,

RIGHTS AND LIMITATIONS

OF

SERIES J CONVERTIBLE PREFERRED STOCK

 

 

The undersigned, William J. Caragol and
Allison F. Tomek, hereby certify that:

 

1.They
are the Chief Executive Officer and Secretary, respectively, of PositiveID Corporation, a Delaware corporation (the “Corporation”).

 

2.The
Corporation is authorized to issue 5,000,000 shares of preferred stock. There are currently 2,500 shares of preferred stock designated
and all of these designated shares are shares of Series I Convertible Preferred Stock. Currently there are 1,625 shares of Series
I Convertible Preferred Stock issued and outstanding.

 

3.The
following resolutions were duly adopted by the Board of Directors:

 

WHEREAS, the Certificate
of Incorporation of the Corporation provides for a class of its authorized stock known as preferred stock, comprised of 5,000,000
shares of $0.01 par value preferred stock (the “Preferred Stock”), issuable from time to time in one or more
series;

 

WHEREAS, the Board
of Directors of the Corporation is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights
and terms of redemption and liquidation preferences of any wholly unissued series of Preferred Stock and the number of shares constituting
any series and the designation thereof, of any of them;

 

WHEREAS, it is the
desire of the Board of Directors of the Corporation, pursuant to its authority as aforesaid in accordance with Section 151 of the
General Corporation Law of the State of Delaware, and as set forth in this Certificate of Designations of Preferences, Rights and
Limitations of Series J Convertible Preferred Stock, to designate the rights, preferences, restrictions and other matters relating
to the Series J Convertible Preferred Stock, which will consist of 2,500 shares of Series J Convertible Preferred Stock, par value
$0.01 per share, which the Corporation has the authority to issue, as follows:

 

NOW, THEREFORE, BE
IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a series of Preferred Stock for cash or exchange
of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters
relating to such series of Preferred Stock as follows:

 

I.Terms of Preferred Stock.

 

A.Designation
and Amount. The series of Preferred Stock will be designated as the Corporation’s Series J Convertible Preferred
Stock (the “Series J Preferred Stock”) and the number of shares so designated will be 1,700, with an initial
liquidation, or stated, value of $1,000 per share (“Stated Value”) which will not be subject to increase without
the consent of the holders (each a “Holder” and collectively, the “Holders”) of a majority
of the outstanding shares of Series J Preferred Stock.

 

     

     

    

 

B.Ranking
and Voting. 

 

1.Ranking.
The Series J Preferred Stock will, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank:
(a) senior with respect to dividends and right of liquidation with the Corporation’s Common Stock (“Common Stock”),
(b) pari passu with respect to dividends and right of liquidation with the Corporation’s Series I Convertible Preferred Stock;
and (c) junior with respect to dividends and right of liquidation to all existing and future indebtedness of the Corporation. Without
the prior written consent of Holders holding a majority of the outstanding shares of Series J Preferred Stock, the Company may
not issue any Preferred Stock that is senior to the Series J Preferred Stock in right of dividends and liquidation.

 

2.Voting.
Series J Preferred Stock shall be non-voting on any matters requiring shareholder vote.

 

C.Dividends.
Series J Preferred Stock will be not be entitled to dividends.

 

D.Protective
Provision. So long as any shares of Series J Preferred Stock are outstanding, the Corporation will not, without the affirmative
approval of the Holders of a majority of the shares of Series J Preferred Stock then outstanding (voting as a class), (i) alter
or change adversely the powers, preferences or rights given to the Series J Preferred Stock or alter or amend this Certificate
of Designations, (ii) authorize or create any class of stock ranking as to distribution of dividends senior to the Series J Preferred
Stock, (iii) amend its articles of incorporation or other charter documents in breach of any of the provisions hereof, (iv) increase
the authorized number of shares of Series J Preferred Stock, (v) liquidate, dissolve or wind-up the business and affairs of the
Corporation, or effect any Deemed Liquidation Event (as defined below), or (vi) enter into any agreement with respect to any of
the foregoing.

 

1.A “Deemed
Liquidation Event” will mean: (a) a merger or consolidation in which the Corporation is a constituent party or a subsidiary
of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such merger or consolidation,
except any such merger or consolidation involving the Corporation or a subsidiary in which the shares of capital stock of the Corporation
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 the surviving or resulting corporation or, 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; or (b) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related
transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation
and its subsidiaries taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries
of the Corporation if substantially all of the assets of the Corporation 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 Corporation.

 

2.The Corporation
will not have the power to effect a Deemed Liquidation Event referred to in Section I.D.1 unless the agreement or plan of
merger or consolidation for such transaction provides that the consideration payable to the stockholders of the Corporation will
be allocated among the holders of capital stock of the Corporation in accordance with Section I.E.

 

    	 	2	 

     

    

 

E.Liquidation.

 

1.Upon any
liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, after payment or provision for payment
of debts and other liabilities of the Corporation, and after payment or provision for any liquidation preference payable to the
holders of any Preferred Stock ranking senior upon liquidation to the Series J Preferred Stock, but prior to any distribution or
payment made to the holders of Common Stock or the holders of any Preferred Stock ranking junior upon liquidation to the Series
J Preferred Stock by reason of their ownership thereof, the Holders of Series J Preferred Stock will be entitled to be paid out
of the assets of the Corporation available for distribution to its stockholders an amount with respect to each share of Series
J Preferred Stock equal to the Stated Value thereof.

 

2.If, upon
any liquidation, dissolution or winding up of the Corporation, the assets of the Corporation will be insufficient to make payment
in full to all Holders, then such assets will be distributed among the Holders at the time outstanding, ratably in proportion to
the full amounts to which they would otherwise be respectively entitled.

 

F.Redemption.

 

1.Corporation’s
Redemption Option.  At any time after the date of the issuance of shares of Series J Preferred Stock (each respectively
an “Issuance Date”), the Corporation will have the right, at the Corporation’s option, to redeem all or
any portion of the shares of Series J Preferred Stock at a price per share equal to 100% of the Stated Value of the shares being
redeemed.

 

2.Mechanics
of Redemption. If the Corporation elects to redeem any of the Holders’ Series J Preferred Stock then outstanding,
it will deliver written notice thereof via email or overnight courier (“Notice of Redemption at Option of Corporation”)
to each Holder whose shares are to be redeemed, which Notice of Redemption at Option of Corporation will indicate (a) the number
of shares of Series J Preferred Stock that the Corporation is electing to redeem, (b) the date upon which the applicable redemption
price will be paid, and (c) the amount of the applicable redemption price. 

 

3.Payment of
Redemption Price. Upon receipt by any Holder of a Notice of Redemption at Option of Corporation, such Holder will promptly
submit to the Corporation such Holder’s Series J Preferred Stock certificates. Upon receipt of such Holder’s Series
J Preferred Stock certificates, the Corporation will pay the applicable redemption price to such Holder in cash.

 

G.Conversion.

 

1.Mechanics
of Conversion.

 

a.To convert
the shares of the Series J Preferred Stock into shares of Common Stock on any date following the six month anniversary of the Issuance
Date (the “Conversion Date”), the Holder shall (A) transmit by facsimile (or otherwise deliver) for receipt
on or prior to 11:59 p.m., Eastern Time on such date, a copy of a fully executed notice of conversion (the “Conversion
Notice”) to the Corporation’s designated transfer agent (the “Transfer Agent”) with a copy thereto
to the Corporation and (b) surrender to a common carrier for delivery to the Transfer Agent at such time the original certificates
representing the shares of the Series J Preferred Stock being converted (or a letter attesting to their loss, theft or destruction
with respect to such shares in the case of their loss, theft or destruction) (the “Series J Certificate”), duly
endorsed for transfer.

 

    	 	3	 

     

    

 

b.Upon receipt
by the Corporation of a copy of the Conversion Notice, the Corporation shall immediately send, via facsimile, a confirmation of
receipt of such Conversion Notice to the Holder and the Transfer Agent, which confirmation shall constitute an instruction to the
Transfer Agent to process such Conversion Notice in accordance with the terms herein. Upon receipt by the Transfer Agent of the
Series J Certificates to be converted pursuant to the Conversion Notice, the Transfer Agent shall, within three business days following
the date of receipt, issue and surrender to a common carrier for overnight delivery to the address as specified in the Conversion
Notice, a certificate registered in the name of the Holder or its designee for a number of shares of Common Stock to which the
Holder shall be entitled. If the number of the shares of the Series J Preferred Stock represented by the Series J Certificate(s)
submitted for conversion is greater than the number of Preferred Stock being converted, then the Transfer Agent shall, as soon
as practicable and in no event later than three (3) business days after receipt of the Series J Certificate(s), issue and deliver
to the Holder a new Series J Certificate representing the number of the shares of the Series J Preferred Stock not converted. The
Holder shall be responsible for any legal opinion required by the Transfer Agent related to the issuance of the Conversion Shares.

 

c.The Holder
shall pay any and all taxes that may be payable with respect to the issuance and delivery of the Common Stock upon the conversion
of the shares of the Series J Preferred Stock.

 

2.Payment and
Issuance Upon Conversion. In the event of a conversion of any Series J Preferred Stock, the Corporation shall issue to
such Holder a number of Conversion Shares equal to (i) the Stated Value multiplied by (ii) the number of shares of Series J Preferred
Stock held by such Holder and subject to the Holder Conversion Notice, divided by (iii) the Conversion Price with respect to such
Series J Preferred Stock, subject to the Conversion Limitations described in Section I.G.3.

 

3.Conversion
Limitations. (a) Any conversion will be limited by: (i) Holder may not make more than one conversion every five Trading
Days, and (ii) the amount of Conversion Shares at any conversion may not be more than the Conversion Limit.

 

(b) Trading Market Limitations.
Unless permitted by the applicable rules and regulations of the principal securities market on which the Common Stock is then listed
or traded, in no event shall the Company issue upon conversion of or otherwise to any holder of the Series J Preferred Stock more
than the maximum number of shares of Common Stock that the Company can issue pursuant to any rule of the principal United States
securities market on which the Common Stock is then traded (the “Maximum Share Amount”), which shall be 4.99% of the
total shares outstanding, subject to equitable adjustment from time to time for stock splits, stock dividends, combinations, capital
reorganizations and similar events relating to the Common Stock occurring after the date hereof.

 

4.Stock Splits.
If the Corporation at any time and from time to time on or after the Issuance Date subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the
Conversion Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Conversion Shares
will be proportionately increased. If the Corporation at any time and from time to time on or after the first Issuance Date combines
(by combination, reverse stock split, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased
and the number of Conversion Shares will be proportionately decreased. Any adjustment under this Section I.G.4 shall become
effective at the close of business on the date the subdivision or combination becomes effective.

 

    	 	4	 

     

    

 

5.Definitions.
 For purposes of this Section I, the following terms shall have the following meanings:

 

a.“Conversion
Limit” means the total number of shares of Common Stock traded over the five (5) Trading Days preceding the Conversion
Notice multiplied by 5%.

 

b.“Conversion
Price” means a price per share of Common Stock equal to 100% of the arithmetic average of the volume weighted average
price of the Common Stock for the fifteen Trading Days prior to the six month anniversary of the Issuance Date.

 

c.“Conversion
Shares” means shares of Common Stock issuable upon conversion of Series J Preferred Stock.

 

d.“Trading
Day” means any day on which the Common Stock is traded on the Trading Market; provided that it shall not include any
day on which the Common Stock is (i) scheduled to trade for less than 5 hours, or (ii) suspended from trading.

 

e.“Trading
Market” means the OTC Bulletin Board, the OTCQB, the OTC Pink Sheets, the NASDAQ Capital Market, the NASDAQ Global Market,
the NASDAQ Global Select Market, the NYSE Amex, or the New York Stock Exchange, whichever is at the time the principal trading
exchange or market for the Common Stock. All Trading Market data shall be measured as provided by the appropriate function of the
Bloomberg Professional service of Bloomberg Financial Markets or its successor performing similar functions.

 

H.Stock Register.
The Corporation will keep at its principal office, or at the offices of the transfer agent, a register of the Series J Preferred
Stock, which shall be prima facie indicia of ownership of all outstanding shares of Series J Preferred Stock. Upon the surrender
of any certificate representing Series J Preferred Stock at such place, the Corporation, at the request of the record Holder of
such certificate, will execute and deliver (at the Corporation’s expense) a new certificate or certificates in exchange therefor
representing in the aggregate the number of shares represented by the surrendered certificate. Each such new certificate will be
registered in such name and will represent such number of shares as is requested by the Holder of the surrendered certificate and
will be substantially identical in form to the surrendered certificate.

 

II.Miscellaneous.

 

A.Notices.
Any and all notices to the Corporation will be addressed to the Corporation’s Chief Executive Officer at the Corporation’s
principal place of business on file with the Secretary of State of the State of Delaware. Any and all notices or other communications
or deliveries to be provided by the Corporation to any Holder hereunder will be in writing and delivered personally, by electronic
mail or facsimile, sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile telephone
number or address of such Holder appearing on the books of the Corporation, or if no such facsimile telephone number or address
appears, at the principal place of business of the Holder. Any notice or other communication or deliveries hereunder will be deemed
given and effective on the earliest of (1) the date of transmission, if such notice or communication is delivered via facsimile
at the facsimile telephone number specified in this Section II.A prior to 5:30 p.m. Eastern Time, (2) the first business
day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number
specified in this section later than 5:30 p.m. but prior to 11:59 p.m. Eastern Time on such date, (3) the second business day following
the date of mailing, if sent by nationally recognized overnight courier service, or (4) upon actual receipt by the party to whom
such notice is required to be given.

 

    	 	5	 

     

    

 

B.Lost or
Mutilated Preferred Stock Certificate. Upon receipt of evidence reasonably satisfactory to the Corporation (an affidavit
of the registered Holder will be satisfactory) of the ownership and the loss, theft, destruction or mutilation of any certificate
evidencing shares of Series J Preferred Stock, and in the case of any such loss, theft or destruction upon receipt of indemnity
reasonably satisfactory to the Corporation (provided that if the Holder is a financial institution or other institutional investor
its own agreement will be satisfactory) or in the case of any such mutilation upon surrender of such certificate, the Corporation
will, at its expense, execute and deliver in lieu of such certificate a new certificate of like kind representing the number of
shares of such class represented by such lost, stolen, destroyed or mutilated certificate and dated the date of such lost, stolen,
destroyed or mutilated certificate.

 

C.Headings.
The headings contained herein are for convenience only and will not be deemed to limit or affect any of the provisions hereof.

 

RESOLVED, FURTHER,
that the chairman, chief executive officer, chief financial officer, president or any vice-president, and the secretary or any
assistant secretary, of the Corporation be and they hereby are authorized and directed to prepare and file a Designation of Preferences,
Rights and Limitations of Series J Preferred Stock in accordance with the foregoing resolution and the provisions of Delaware law.

 

IN WITNESS WHEREOF,
the undersigned have executed this Certificate this 7th day of December, 2015.

 

 

	Signed:  	/s/ William J. Caragol	 
	Name:	William J. Caragol	 
	Title:  	Chief Executive Officer	 
	 	 	 
	 	 	 
	Signed: 	/s/ Allison F. Tomek 	 
	Name: 	Allison F. Tomek	 
	Title:  	Secretary	 

 

 

    	 	6

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