Document:

FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

 Exhibit 10.4 
 SEACHANGE INTERNATIONAL, INC. 
 Non-Qualified Stock Option Agreement 
 for Employees 
 SeaChange
International, Inc., a Delaware corporation (the “Company”), hereby grants as of <date> to <name> (the “Employee”), an option to purchase a maximum of <number> shares (the “Option Shares”) of its
Common Stock, $.01 par value (“Common Stock”), at the price of $ per share, on the following terms and conditions: 
 1. Grant Under the 2005 Equity Compensation and Incentive Plan. This option is granted pursuant to and is governed by the Company’s 2005 Equity Compensation and Incentive Plan (the “Plan”) and, unless the
context otherwise requires, terms used herein shall have the same meaning as in the Plan. Determinations made in connection with this option pursuant to the Plan shall be governed by the Plan as it exists on this date. 
 2. Grant as Non-Qualified Stock Option; Other Options. This option shall be treated for federal income tax purposes as a Non-Qualified
Option (rather than an incentive stock option). This option is in addition to any other options heretofore or hereafter granted to the Employee by the Company or any Subsidiary (as defined in the Plan), but a duplicate original of this instrument
shall not effect the grant of another option. 
 3. Vesting of Option if Employment Continues. For the purpose of determining
the vesting of the option granted hereunder, the vesting date will be <date> (the “Vesting Date”) and the option will vest over three years. If the Employee has continued to be employed by the Company or any Subsidiary on the
following dates, the Employee may exercise this option for the number of shares of Common Stock set opposite the applicable date: 
  

					
	Less than one year from the Vesting Date	  	    -        	  	No Shares
			
	One year from the Vesting Date	  	    -        	  	33.33%
			
	 Each subsequent quarter following
 one year from the
Vesting Date
	  	    -        	  	 an additional 8.34% of the total
 number of shares
granted

 Notwithstanding the foregoing, in accordance with and subject to the provisions of the Plan, the Compensation and
Option Committee (the “Committee”) may, in its discretion, accelerate the date that any installment of this option becomes exercisable. The foregoing rights are cumulative and, while the Employee continues to be employed by the Company or
any Subsidiary, this option may be exercised on or before the date which is 7 years from the date this option is granted. All of the foregoing rights are subject to Sections 4 and 5, as appropriate, if the Employee ceases to be employed by the
Company or any Subsidiary. 

 4. Termination of Employment. 
 (a) Termination Other Than for Cause. If the Employee ceases to be employed by the Company or any Subsidiary, other than by reason of death
or disability as defined in Section 5 or termination for Cause as defined in Section 4(c), no further installments of this option shall become exercisable, and this option shall terminate (and may no longer be exercised) after the passage
of three months from the Employee’s last day of employment, but in no event later than the scheduled expiration date. In such a case, the Employee’s only rights hereunder shall be those which are properly exercised before the termination
of this option. 
 (b) Termination for Cause. If the employment of the Employee is terminated for Cause (as defined in
Section 4(c)), this option shall terminate upon the Employee’s receipt of written notice of such termination and shall thereafter not be exercisable to any extent whatsoever. 
 (c) Definition of Cause. “Cause” shall mean conduct involving one or more of the following: (i) the substantial and
continuing failure of the Employee, after notice thereof, to render services to the Company or Subsidiary in accordance with the terms or requirements of his or her employment; (ii) disloyalty, gross negligence, willful misconduct, dishonesty
or breach of fiduciary duty to the Company or Subsidiary; (iii) the commission of an act of embezzlement or fraud; (iv) deliberate disregard of the rules or policies of the Company or Subsidiary which results in direct or indirect loss,
damage or injury to the Company or Subsidiary; (v) the unauthorized disclosure of any trade secret or confidential information of the Company or Subsidiary; or (vi) the commission of an act which constitutes unfair competition with the
Company or Subsidiary or which induces any customer or supplier to breach a contract with the Company or Subsidiary. 
 5. Death;
Disability.  
 (a) Death. If the Employee dies while in the employ of the Company or any Subsidiary, this option may be
exercised, to the extent otherwise exercisable on the date of his or her death, by the Employee’s estate, personal representative or beneficiary to whom this option has been assigned pursuant to Section 10, at any time within 180 days
after the date of death, but not later than the scheduled expiration date. 
 (b) Disability. If the Employee ceases to be
employed by the Company or any Subsidiary by reason of his or her disability (as defined in the Plan), this option may be exercised, to the extent otherwise exercisable on the date of the termination of his or her employment, at any time within
180 days after such termination, but not later than the scheduled expiration date. 
 (c) Effect of Termination. At the
expiration of the 180-day period provided in paragraph (a) or (b) of this Section 5 or the scheduled expiration date, whichever is the earlier, this option shall terminate (and shall no longer be exercisable) and the only rights
hereunder shall be those as to which the option was properly exercised before such termination. 
  

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 6. Partial Exercise. This option may be exercised in part at any time and from time to time
within the above limits, except that this option may not be exercised for a fraction of a share unless such exercise is with respect to the final installment of stock subject to this option and cash in lieu of a fractional share must be paid, in
accordance with Paragraph 3(d) of the Plan, to permit the Employee to exercise completely such final installment. Any fractional share with respect to which an installment of this option cannot be exercised because of the limitation contained in the
preceding sentence shall remain subject to this option and shall be available for later purchase by the Employee in accordance with the terms hereof. 
 7. Payment of Price. 
 (a) Manner of Payment. The option price shall be
paid in the following manner: 
  

	 	(i)	by either cash, check or fund transfer from the Employee’s account maintained with a Company-designated third party commercial provider (the “Third Party Commercial
Provider”); 

  

	 	(ii)	subject to paragraph 7(b) below, by delivery of shares of the Company’s Common Stock having a fair market value (as determined by the Committee) equal as of the date of
exercise to the option price; 

  

	 	(iii)	by delivery of an assignment satisfactory in form and substance to the Company of a sufficient amount of the proceeds from the sale of the Option Shares and an instruction to the
broker or selling agent to pay that amount to the Company; or 

  

	 	(iv)	by any combination of the foregoing. 

 (b)
Limitations on Payment by Delivery of Common Stock: If the Employee delivers Common Stock held by the Employee (“Old Stock”) to the Company in full or partial payment of the option price, and the Old Stock so delivered is
subject to restrictions or limitations imposed by agreement between the Employee and the Company, an equivalent number of Option Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the extent that the Employee
paid for the Option Shares by delivery of Old Stock, in addition to any restrictions or limitations imposed by this Agreement. Notwithstanding the foregoing, the Employee may not pay any part of the exercise price hereof by transferring Common Stock
to the Company unless such Common Stock has been owned by the Employee free of any substantial risk of forfeiture for at least six months. 
 8. Method of Exercising Option. Subject to the terms and conditions of this Agreement, this option may be exercised (i) by written notice to the Company at its principal executive office, (ii) by written notice to
such transfer agent as the Company shall designate or 

  

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(iii) by notification of the Third Party Commercial Provider in accordance with the procedures approved by the Company and of which the Employee shall have
ongoing access by means of accessing the Employee’s account maintained with the Third Party Commercial Provider. Such notice shall state the election to exercise this option and the number of Option Shares for which it is being exercised and
shall be signed (either in writing or by electronic transmission) by the person or persons so exercising this option. Such notice shall be accompanied by payment of the full purchase price of such shares, and the Company shall deliver a certificate
or certificates representing such shares as soon as practicable after the notice shall be received. Such certificate or certificates shall be registered in the name of the person or persons so exercising this option (or, if this option shall be
exercised by the Employee and if the Employee shall so request in the notice exercising this option, such certificate or certificates shall be registered in the name of the Employee and another person jointly, with right of survivorship). In the
event this option shall be exercised, pursuant to Section 5 hereof, by any person or persons other than the Employee, such notice shall be accompanied by appropriate proof of the right of such person or persons to exercise this option.

 9. Option Not Transferable. This option is not transferable or assignable except by will or by the laws of descent and
distribution. During the Employee’s lifetime only the Employee can exercise this option. 
 10. No Obligation to Exercise
Option. The grant and acceptance of this option imposes no obligation on the Employee to exercise it. 
 11. No Obligation to
Continue Employment. Neither the Plan, this Agreement, nor the grant of this option imposes any obligation on the Company or any Subsidiary to continue the Employee in employment. 
 12. No Rights as Stockholder until Exercise. The Employee shall have no rights as a stockholder with respect to the Option Shares until
such time as the Employee has exercised this option in accordance with Section 8. Except as is expressly provided in the Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be made for dividends or
similar rights for which the record date is prior to such date of exercise. 
 13. Capital Changes and Business Successions.
The Plan contains provisions covering the treatment of options in a number of contingencies such as stock splits and mergers. Provisions in the Plan for adjustment with respect to stock subject to options and the related provisions with respect
to successors to the business of the Company are hereby made applicable hereunder and are incorporated herein by reference. 
 14.
Withholding Taxes. If the Company or any Subsidiary in its discretion determines that it is obligated to withhold any tax in connection with the exercise of this option, or in connection with the transfer of, or the lapse of restrictions
on, any Common Stock or other property acquired pursuant to this option, the Employee hereby agrees that the Company or any Subsidiary may withhold from the Employee’s wages or other remuneration the appropriate amount of tax. At the discretion
of the Company or Subsidiary, the amount required to be withheld may be withheld in cash from such wages or other remuneration or in kind from the 

  

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Common Stock or other property otherwise deliverable to the Employee on exercise of this option. The Employee further agrees that, if the Company or any
Subsidiary does not withhold an amount from the Employee’s wages or other remuneration sufficient to satisfy the withholding obligation of the Company or Subsidiary, the Employee will make reimbursement on demand, in cash, for the amount
underwithheld. 
 15. Arbitration. Any dispute, controversy, or claim arising out of, in connection with, or relating to the
performance of this Agreement or its termination shall be settled by arbitration in the Commonwealth of Massachusetts, pursuant to the rules then obtaining of the American Arbitration Association. Any award shall be final, binding and
conclusive upon the parties and a judgment rendered thereon may be entered in any court having jurisdiction thereof. 
 16. Provision
of Documentation to Employee. By signing this Agreement (either in writing or by electronic transmission) the Employee acknowledges receipt of a copy of this Agreement and a copy of the Plan. 
 17. Miscellaneous. 
 (a)
Notices. Except as explicitly provided for herein or in the Plan, all notices hereunder shall be in writing and shall be deemed given when sent by certified or registered mail, postage prepaid, return receipt requested, to the address set
forth below. The addresses for such notices may be changed from time to time by written notice given in the manner provided for herein. 
 (b) Entire Agreement; Modification. This Agreement constitutes the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between
the parties relating to the subject matter of this Agreement. This Agreement may be modified, amended or rescinded only by a written agreement executed by both parties (either in writing or by electronic transmission). 
 (c) Severability. The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity,
legality or enforceability of any other provision. 
 (d) Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth in Section 9 hereof. 
 (e) Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to the principles of the conflicts of
laws thereof. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

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 IN WITNESS WHEREOF, the Company and the Employee have caused this instrument to be executed as of the
date first above written. 
  

											
	  
	 		 		 	SEACHANGE INTERNATIONAL, INC.
					
	Signature of Employee	 		 		 		 	
					
	  
	 		 		 	By:	 	  

				
	Print Name of Employee	 		 		 	    Signature
				
	  
	 		 		 	  

			
	Street Address	 		 	Name of Officer
				
		 		 		 	  

	  
	 		 		 	Title
	City                                
State                                 Zip Code	 	

  

 - 6 -AMENDMENT NO. 8 TO LOAN AND SECURITY AGREEMENT

 Exhibit 10.15 
 EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT 
 DATED OCTOBER 22, 2001 
 This Eighth Amendment to Loan and Security Agreement (the “Eighth Amendment”) is made as of this 14th day of April, 2006 by and between SeaChange
International, Inc., a Delaware corporation with its principal place of business at 50 Nagog Park, Acton, Massachusetts 01720 (the “Borrower”) and Citizens Bank of Massachusetts, a bank with offices at 28 State Street, Boston,
Massachusetts (the “Lender”) in consideration of the mutual covenants contained herein and the benefits to be derived herefrom. Unless otherwise specified, all capitalized terms shall have the same meaning herein as set forth in the
Agreement (as defined below). 
 W I T N E S S E T H: 
 WHEREAS, on October 22, 2001, the Borrower and the Lender entered into a loan arrangement (the “Loan Arrangement”) as evidenced by, amongst other documents and instruments, a certain Loan and Security
Agreement as amended by a First Amendment to Loan and Security Agreement dated June 14, 2002, a Second Amendment and Waiver to Loan and Security Agreement dated April 21, 2003, a Third Amendment to Loan and Security Agreement dated
December 1, 2003, a Fourth Amendment to Loan and Security Agreement effective as of December 1, 2005, a Fifth Amendment to Loan and Security Agreement effective as of January 31, 2006, a Sixth Amendment to Loan and Security Agreement
effective as of March 1, 2006, and a Seventh Amendment to Loan and Security Agreement effective as of April 1, 2006 (as may be further amended from time to time, the “Agreement”) by and between the Borrower and the Lender
pursuant to which the Lender agreed to provide certain financial accommodations to or for the benefit of the Borrower; and 
 WHEREAS, the
Borrower has requested that the Lender amend certain terms and conditions of the Agreement all as set forth herein, and 
 WHEREAS, the
Lender has agreed to so amend the Agreement provided the Borrower and the Lender entered into this Eighth Amendment; and 
 NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  

	 	1.	Section 5(k) of the Agreement is hereby amended by deleting “one eighth of one percent (.125%) per annum” and replacing it with “one fourth of one percent (.25%)
per annum”. 

	 	2.	Section 13 of the Agreement is hereby supplemented by adding subsection (z) at the end: 

 “(z) The Borrower shall cause all material domestic subsidiaries to guaranty the Obligations of the Borrower to the Bank in the form of
Exhibit Guaranty annexed hereto. Borrower shall pledge 65% of its interest in all material foreign subsidiaries in the form of Exhibit Pledge Agreement annexed hereto. All guaranties and pledges shall be accompanied by such due
diligence as requested by the Lender. As used herein a “material subsidiary” shall be a direct or indirect subsidiary of the Borrower that owns ten percent (10%) or more of the total assets (exclusive of goodwill and client contracts)
of the Borrower at the most recent quarter end or contributes at least ten percent (10%) of the total sales of the Borrower for the trailing twelve (12) month period at most recent quarter end. A foreign subsidiary shall be any direct or
indirect subsidiary of the Borrower that is not incorporated or organized under the laws of the United States of America, any state thereof or the District of Columbia. The Borrower shall notify the Bank in writing upon a subsidiary becoming a
material subsidiary and shall include in its quarterly compliance certificate a list of all subsidiaries with a designation of which subsidiary is a material subsidiary.” 
  

	 	3.	Section 14(c) of the Agreement is hereby deleted and replaced with: 

 “(c) (Capital Expenditures) for the fiscal year ending January 31, 2006 make, directly or indirectly, capital expenditures in an aggregate amount greater than $15,000,000.00, and for the fiscal
year ending January 31, 2007 and thereafter, $7,500,000.00, annually, tested annually.” 
  

	 	4.	Section 14(d) of the Agreement is hereby deleted and replaced with the following: 

 “(d) (Modified Quick Ratio) permit the Modified Quick Ratio to be less than the following: 
 (i) for the quarter ending January 31, 2006 - 1.5x 
 (ii) for the quarters ending
April 30, 2006 and July 31, 2006 - 1.75x; and 
 (iii) for the quarter ending October 31, 2006 and each quarter
thereafter- 2.0X 
 As used herein the “Modified Quick Ratio” shall mean the ratio of (a) non restricted cash,
plus (b) acceptable short-term and long-term marketable securities, and (c) accounts receivable to (d) current liabilities plus without duplication total outstandings under the Line of Credit. Marketable securities shall include

  

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securities issued by the United States government or agency, state and municipal obligations, or corporate debt securities approved by the Bank.”

  

	 	5.	Section 14(e) of the Agreement is hereby amended by deleting the EBITDA requirements contained therein and replacing them with the following: 

 “(e) (Minimum EBITDA) Permit EBITDA to be equal to or less than the amounts for the periods listed below: 
 (i) quarter ending July 31, 2006 - $1.00 
 (ii) combined for the two quarters ending July 31, 2006 and October 31, 2006 - $2,000,000.00 
 (iii) combined for the three quarters ending July 31, 2006, October 31, 2007 and January 31, 2006 - $2,900,000.00 
 (iv) thereafter $4,000,000.00 for each rolling four quarter thereafter, tested quarterly.” 
  

	 	6.	Section 14(f) of the Agreement is hereby deleted and replaced with: 

 “(f) (Net Loss) commencing with the Borrower’s fiscal quarter ending January 31, 2006 and continuing on a cumulative basis for each of the fiscal quarters thereafter until four
(4) fiscal quarters after the quarter ending January 31, 2006, and then for each trailing four quarters thereafter, permit cumulative net losses of greater than: 
 (i) quarter ending January 31, 2006 - $7,500,000.00 
 (ii) quarter ending April 30, 2007 - $7,500,000.00 
 (iii) quarter ending
July 31, 2007 - $9,500,000.00 
 (iv) quarter ending October 31, 2007 - $9,500,000.00 
 (v) thereafter for each rolling four quarters - $7,500,000.00.” 
  

	 	7.	Section 14(l) of the Agreement is hereby supplemented by adding after subparagraph (z) the following: 

 “if the Borrower’s cash and acceptable marketable securities are less than $40,000,000.00 or would be less than $40,000,000.00
after the investment.” 
  

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	 	8.	Section 14(o)(d) of the Agreement is hereby amended by deleting subsection (iv) and replacing with the following: 

 “and (iv) the Borrower’s cash and acceptable marketable securities would be greater than $40,000,000.00 after completion of the
contemplated acquisition.” 
  

	 	9.	Section 19(a) of the Agreement is hereby amended by deleting: 

 “April 28, 2006” 
 and replacing it with: 
 “June 30, 2007”. 
  

	 	10.	The Compliance Certificate annexed to the Agreement as Exhibit 2 is hereby deleted and replaced by the attached Exhibit 2. 

  

	 	11.	The Borrower hereby agrees that the liabilities, obligations and indemnity of the Borrower under the Agreement shall be secured by any and all collateral now or hereafter granted to
the Lender by the Borrower. 

  

	 	12.	The Borrower and each guarantor signing below hereby acknowledge and agree that the Borrower has no offsets, defenses or counterclaims against the Lender with respect to the Loan
Arrangement or otherwise, and to the extent that the Borrower or guarantor has any such offsets, defenses or counterclaims against the Lender, then the Borrower and each guarantor hereby affirmatively WAIVES and RENOUNCES any such
offsets, defenses or counterclaims. 

  

	 	13.	This Eighth Amendment and all other documents executed in connection herewith incorporate all discussions and negotiations between the Borrower and the Lender either expressed or
implied, concerning the matters contained herein and in such other instruments, any statute, custom or use to the contrary notwithstanding. No such discussions or negotiations shall limit, modify or otherwise effect the provisions hereof. The
modification amendment, or waiver of any provision of this Eighth Amendment, the Agreement or any provision under any other agreement or document entered into between the Borrower and the Lender shall not be effective unless executed in writing by
the party to be charged with such modification, amendment or waiver, and if such party be the Lender, then by a duly authorized officer thereof. 

  

	 	14.	Except as specifically modified herein, the Agreement shall remain in full force and effect as originally written, and the Borrower hereby ratifies and confirms all terms and
conditions contained in the Agreement. 

  

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	 	15.	This Eighth Amendment shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts and shall take effect as a sealed instrument.

 IN WITNESS WHEREOF, the parties hereof have set their hands and seals as of the date first written above. 
  

			
	 SEACHANGE INTERNATIONAL, INC.

		
	 By:
	 	 /s/ Kevin Bisson

	 Name:
	 	 Kevin Bisson

	 Title:
	 	 Treasurer

	
	 CITIZENS BANK OF MASSACHUSETTS

		
	 By:
	 	/s/ William M. Clossey
	 Name:
	 	William M. Clossey
	 Title:
	 	 Vice President

  

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 The undersigned guarantor hereby consents to the foregoing Eighth Amendment and acknowledge that its
guaranty remains in full force and effect and that the guarantor remains obligated thereunder. 
  

			
	 DIGITAL VIDEO ARTS, LTD.

		
	 By:
	 	 /s/ Kevin Bisson

	 Name:
	 	 Kevin Bisson

	 Title:
	 	 Treasurer

	
	 SeaChange Systems, Inc.

		
	 By:
	 	 /s/ Kevin Bisson

	 Name:
	 	 Kevin Bisson

	 Title:
	 	 Treasurer

  

 -6-

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