Document:

Agreement relating to Retention and Noncompetition

 Exhibit 10.52 
 EXECUTION COPY 
 SECOND AMENDMENT TO AGREEMENT RELATING TO RETENTION AND

 NONCOMPETITION AND OTHER COVENANTS 
 Second Amendment (the “Second Amendment”), dated as of October 24, 2012 (the “Effective Date”), to Agreement Relating to Retention and Noncompetition and Other
Covenants by and among Lazard Ltd, a company incorporated under the Laws of Bermuda (“PubliCo”), Lazard Group LLC, a Delaware limited liability company and successor to Lazard LLC (“Lazard”), on its behalf and on
behalf of their subsidiaries and affiliates (collectively with PubliCo, Lazard and its and their predecessors and successors, the “Firm”), and Kenneth M. Jacobs (the “Executive”), dated as of March 18, 2005,
and amended on March 23, 2010 (as amended, this “Agreement”); and 
 WHEREAS, the Firm and the Executive
wish to amend this Agreement to modify Schedule I to such Agreement to extend the term of certain provisions of Schedule I of this Agreement beyond March 23, 2013, eliminate the golden parachute excise tax gross-up provision and revise certain
other terms. 
 NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Executive, PubliCo and Lazard hereby agree as follows: 

Effective as of the Effective Date, Schedule I of this Agreement shall hereby be amended and restated in its entirety in the form
attached hereto. 
 IN WITNESS WHEREOF, the Executive and the Board of Directors of each of Lazard and PubliCo have caused this
Second Amendment to be executed and delivered on the date first above written. 
 October 24, 2012 

 

							
		 		 		 	/s/ Kenneth M. Jacobs
		 		 		 	Kenneth M. Jacobs

  

							
	October 24, 2012	 		 	LAZARD LTD,
				
		 		 	by	 	/s/ Scott D. Hoffman
		 		 		 	 Scott D. Hoffman
 Managing
Director and General Counsel

  

							
	October 24, 2012	 		 	 LAZARD GROUP LLC (on its behalf, and on
 behalf of its subsidiaries and affiliates),

				
		 		 	by	 	/s/ Scott D. Hoffman
		 		 		 	 Scott D. Hoffman
 Managing
Director and General Counsel

 SCHEDULE I 

 

			
	Name (as per Preamble):	  	Mr. Kenneth M. Jacobs

 Effective upon the effective date of the Second Amendment to this Agreement (the “Second
Amendment Effective Date”), this Schedule I shall take effect and its provisions shall constitute binding and enforceable agreements of the Firm. 
 1. Schedule Term. For purposes of this Schedule I, the “Schedule Term” shall mean the period from the Second Amendment Effective Date through March 31, 2016, subject to
earlier termination in accordance with this Agreement. Notwithstanding the foregoing, upon a Change in Control (as defined below), the Schedule Term shall automatically be renewed so that the Schedule Term is not less than two years from the
effective date of such Change in Control. 
 2. Compensation. Notwithstanding anything to the contrary contained in
Sections 3(c)(i) and (ii) of this Agreement, subject to the Executive’s continued employment with the Firm, during the Schedule Term, the Executive shall be entitled to receive (i) an annual base salary of not less than $900,000
(“Base Salary”) and (ii) so long as the Executive remains employed by the Firm through the end of the applicable fiscal year of Lazard (except as otherwise provided below in this Schedule I), an annual bonus to be determined
under the terms of the applicable annual bonus plan of Lazard on the same basis as annual bonuses are determined for other executive officers of PubliCo. Any such annual bonus awarded to the Executive shall be paid as follows: (A) subject to
significant changes in applicable legal requirements or prevailing market compensation practices following the Second Amendment Effective Date, the first $2.1 million of any annual bonus award (or, in the event the Base Salary is increased, the
amount equal to $3 million less the amount of the Base Salary paid to the Executive for the applicable fiscal year of Lazard for which the annual bonus was awarded) shall be paid in cash at the time cash bonuses are normally paid by Lazard for such
fiscal year (and in all events no earlier than January 1st, and no later than March 15th, of the year following the applicable fiscal year for which the bonus is awarded), and (B) any remaining portion of any such annual bonus that is
not paid in cash shall be paid in the form and on the terms and conditions as determined by the Compensation Committee of the Board of Directors of PubliCo (the “Compensation Committee”) in consultation with the Executive. For purposes
hereof, the term Base Salary shall refer to Base Salary as in effect from time to time, including any increases thereto. Notwithstanding anything to the contrary contained in Section 3(c)(iv) of this Agreement, subject to the Executive’s
continued employment, the Executive shall continue to be eligible to participate in the employee retirement and welfare benefit plans and programs of the type made available to the senior most executives of the Firm generally, in accordance with
their terms and as such plans and programs may be in effect from time to time, including, without limitation, savings, profit-sharing and other retirement plans or programs, 401(k), medical, dental, flexible spending account, hospitalization,
short-term and long-term disability and life insurance plans. In addition, during the Schedule Term, subject to the Executive’s continued employment, the Executive, shall continue to be entitled to receive fringe benefits and perquisites on the
same basis as applied to the Executive immediately prior to the Second Amendment Effective Date subject to the terms of the policies adopted by the Compensation Committee as in effect from time to time. 

  
 2 

 3. Severance Pay and Benefits under Certain Circumstances. Notwithstanding anything
to the contrary contained in Section 3(d) of this Agreement, in the event that during the Schedule Term the Executive’s employment with the Firm is terminated by the Firm without Cause or by the Executive for Good Reason (in each case, as
defined below) (a “Qualifying Termination”), Lazard shall pay the Executive (subject to the Executive delivering a waiver and release in accordance with this paragraph 3 of this Schedule I in the event such Qualifying Termination
occurs prior to a Change in Control), in a lump sum in cash on the 61st day after the Date of Termination (as defined below), the aggregate of the following amounts: (i) any unpaid Base Salary through the Date of Termination; (ii) any
earned and unpaid bonus amounts for fiscal years of Lazard completed prior to the Date of Termination (determined in accordance with paragraph 2 of this Schedule I and with any such bonus to be paid in full in cash); and (iii) the product of
(1) the “Severance Multiple” (as defined below) and (2) the sum of (x) the Base Salary and (y) the average annual bonus (or, to the extent applicable, cash distributions, and including any bonuses paid in the
form of equity-based or fund interest awards based on the grant date value of such awards in accordance with the normal valuation methodology used by Lazard) paid or payable (including any such amounts that may be deferred under any plan or
arrangement of the Firm) to the Executive for the two completed fiscal years of Lazard immediately preceding the fiscal year during which occurs the Date of Termination (the “Average Bonus”). In addition, upon a Qualifying
Termination, for a period of months equal to the product of (A) 12 and (B) the Severance Multiple (the “Benefit Continuation Period”), the Executive and his eligible dependents shall continue to be eligible to participate
in the medical and dental benefit plans of Lazard on the same basis as the Executive participated in such plans immediately prior to the Date of Termination. Following the Benefit Continuation Period in the case of a Qualifying Termination, or the
Date of Termination in the case of any other termination during the Term other than a termination for Cause, for the remainder of the Executive’s life and that of his current spouse, the Executive, his spouse and his eligible dependents shall
continue to be eligible to participate in the medical and dental benefit plans of Lazard on the same basis as the Executive participated in such plans immediately prior to the Date of Termination to the extent that the applicable plan permits such
continued participation for all or any portion of such period (it being agreed that Lazard will use its reasonable best efforts to cause such continued coverage to be permitted under the applicable plan for the entire period); provided,
however, that the Executive (or the Executive’s current spouse or estate, as applicable) shall be solely responsible for the full cost of all premiums related to the coverage provided in this sentence. 

In addition, in the case of (a) a Qualifying Termination during the Schedule Term or (b) the Executive’s death or
termination due to Disability during the Schedule Term, with respect to the fiscal year of Lazard during which the Date of Termination occurs, the Executive or his estate, as applicable, shall receive a pro-rata annual bonus payable in cash
determined as follows: 
 (i) if, with respect to the fiscal year during which the Date of Termination occurs
(other than (x) as a result of the Executive’s death or Disability or (y) following a Change in Control), (A) the Executive was reasonably expected by Lazard to be a “covered employee” (within the meaning of
Section 162(m) of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder (the “Code”)) prior to his Date of Termination, and (B) the annual bonus that the Executive was eligible to receive
for such year was originally intended by Lazard to satisfy the performance-based exception under Section 162(m) of the Code (without regard to any entitlement to payment upon termination of employment), the Executive’s pro-rata annual
bonus shall 

  
 3 

 
equal the product of (1) the amount determined by the Compensation Committee based on the Firm’s actual performance for the fiscal year of the Firm in which the Date of Termination
occurs on the same basis as annual bonuses are determined for other executive officers of the Firm (which, subject to the limits on any such bonus due to the level of satisfaction of the performance goals previously established for purposes of
Section 162(m) of the Code, shall not represent (on an annualized basis) a percentage of the Executive’s bonus for the fiscal year preceding the fiscal year in which the Date of Termination occurs that is lower than the average
corresponding percentage applicable to active executives of Lazard who received bonuses for such prior fiscal year in amounts within 5% of the Executive’s bonus for such prior fiscal year), and (2) a fraction, the numerator of which is the
number of days elapsed in the fiscal year of Lazard in which occurs the Date of Termination through the Date of Termination, and the denominator of which is 365 (the “Pro-Ration Fraction”); or 

(ii) if, either (A) with respect to the fiscal year during which the Date of Termination occurs, (1) the
Executive is not reasonably expected by Lazard to be a “covered employee” (within the meaning of Section 162(m) of the Code) prior to his Date of Termination or (2) such termination is a result of the Executive’s death or
Disability or occurs following a Change in Control or (B) the annual bonus that the Executive was eligible to receive for the year in which the Date of Termination occurs was not originally intended by Lazard to satisfy the performance-based
exception under Section 162(m) of the Code, the pro-rata annual bonus shall equal the product of (x) the Average Bonus and (y) the Pro-Ration Fraction. 
 The pro-rata annual bonus determined pursuant to clause (i) or (ii) above, as applicable, shall be paid at such time or times as Lazard otherwise makes incentive payments for such fiscal year
(and in all events no earlier than January 1st, and no later than March 15th, of the year following the year in which the Date of Termination occurs). 
 Notwithstanding the foregoing, the payments and benefits (other than any earned and unpaid compensation described in clauses (i) and (ii) of the first paragraph of this paragraph 3 of this
Schedule I) payable to the Executive pursuant to this paragraph 3 of this Schedule I upon a Qualifying Termination prior to a Change in Control shall be subject to and conditioned upon the Executive having delivered to the Firm, no later than the
60th day after the Date of Termination, a waiver and general release of claims in favor of the Firm and its affiliates in the form attached hereto as Exhibit A that has become effective and irrevocable in accordance with its terms (such
requirement to execute a release, the “Release Requirement”). Notwithstanding the foregoing, the Release Requirement shall lapse upon a Change in Control. 
 For all purposes of this Agreement, including without limitation, Sections 2(g)(ii) and 5(a), and for all purposes of the outstanding equity-based awards, fund interest awards and any similar awards held
by the Executive as of the Date of Termination (as defined in this Schedule I) (collectively, the “Awards”), a resignation by the Executive for Good Reason during the Term shall be treated as a termination of the Executive by the
Firm without Cause or as a Termination of Employment by the Firm other than for Cause (as such phrase or similar phrases are defined in the Plan (as defined in paragraph 4 of this Schedule I) or the award agreements governing the Awards), as
applicable. 

  
 4 

 In no event shall the Executive be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to the Executive under any of the provisions of this paragraph 3 of this Schedule I and such amounts shall not be reduced whether or not the Executive obtains other employment. Except as provided in
Section 16(f) of this Agreement, the Firm’s obligation to make the payments and provide the benefits provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Firm may have against the Executive. 
 4. Certain
Definitions. For purposes of this Agreement and this Schedule I, as applicable, the following terms shall have the following meanings: 
 “Change in Control” shall have the meaning assigned to it in the Lazard 2008 Incentive Compensation Plan, as it may be amended from time to time, or any successor plan thereto (the
“Plan”). 
 Notwithstanding the definition of “Date of Termination” set forth in Section 5 of
this Agreement, for all purposes of this Agreement, including Section 5, and this Schedule I, “Date of Termination” shall mean (i) if the Executive’s employment is terminated by the Firm for Cause, the date of receipt
of the written notice of termination from the Firm or any later date specified therein within thirty (30) days after the Executive’s receipt of such notice, as the case may be, (ii) if the Executive’s employment is terminated by
the Firm other than for Cause or Disability, the date on which the Firm notifies the Executive in writing of such termination, (iii) if the Executive’s employment is voluntarily terminated by the Executive without Good Reason, the date as
specified by the Executive in the notice of termination, which date shall not be less than three months after the Executive notifies the Firm in writing of such termination, unless waived in writing by the Firm, (iv) if the Executive’s
employment is terminated by the Executive for Good Reason, the earlier of (A) the last day of the cure period (assuming no cure has occurred) and (B) the date Lazard formally notifies the Executive in writing that it does not intend to
cure, unless Lazard and the Executive agree to a later date, which shall in no event be later than thirty (30) days following the first to occur of the dates set forth in clauses (A) and (B) of this clause (iv), and (v) if the
Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the date on which the Executive’s employment due to Disability is effective for purposes of the
applicable long-term disability plan of the Firm, as the case may be. The Firm and the Executive shall take all steps necessary (including with regard to any post-termination services by the Executive) to ensure that any termination of the
Executive’s employment described in this Agreement, including this Schedule I, constitutes a “separation from service” within the meaning of Section 409A of the Code, and notwithstanding anything contained herein (or in this
Agreement) to the contrary, (x) to the extent that any amounts owed to the Executive under this Agreement (including this Schedule I) are payable upon his termination of employment and are subject to Section 409A of the Code, then to the
extent required in order to comply with Section 409A of the Code, such amounts shall not be payable to the Executive unless and until his termination of employment constitutes a “separation from service,” within the meaning of
Section 409A of the Code, including, without limitation, the default presumptions thereof and (y) the date on which such separation from service takes place shall be the “Date of Termination.” 

  
 5 

 Notwithstanding the definition of “Cause” set forth in Section 2(g)(iv) of
this Agreement, for all purposes of this Agreement, including Section 2(g)(iv) and this Schedule I, “Cause” shall mean: (A) conviction of the Executive of, or a guilty or nolo contendere plea (or the equivalent in a
non-United States jurisdiction) by the Executive to, a felony (or the equivalent in a non-United States jurisdiction), or of any other crime that legally prohibits the Executive from working for the Firm; (B) breach by the Executive of a
regulatory rule that materially adversely affects the Executive’s ability to perform his duties to the Firm; (C) willful and deliberate failure on the part of the Executive (other than any such failure resulting from incapacity due to
physical or mental illness or following the Firm’s termination of the Executive other than for Cause or the Executive’s termination for Good Reason in accordance with this Schedule I) (i) to perform his employment duties in any
material respect or (ii) to follow specific reasonable directions received from the Board of Directors of PubliCo, in each case following written notice to the Executive of such failure and, if such failure is curable, the Executive’s
failing to cure such failure within a reasonable time (but in no event less than thirty (30) days after actual receipt by Executive of such written notice); or (D) a breach of the Covenants that is (individually or combined with other such
breaches) demonstrably and materially injurious to Lazard or any of its affiliates. No act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad
faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Firm. Notwithstanding the foregoing, with respect to the events described in clauses (B), (C)(i) and (D) hereof, the
Executive’s acts or failure to act shall not constitute Cause to the extent taken (or not taken) based upon the direct instructions of the Board of Directors of PubliCo or upon the direct advice of counsel to the Firm. Except in the case of a
termination of the Executive’s employment under clause (A) of the definition of Cause, the cessation of employment of the Executive following a Change in Control shall not be deemed to be for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the entire membership of the board of directors or similar governing body of the entity that is the ultimate parent of the Firm
(such board, referred to as the “Applicable Board”) finding that, in the good faith opinion of the Applicable Board, circumstances constituting Cause exist. 
 “Good Reason” shall mean (i) the assignment to the Executive of any duties inconsistent in any material respect with the Executive’s positions (including status, offices, titles
and reporting requirements), authority, duties or responsibilities from those contemplated by Section 3(b) of this Agreement, or any other action by the Firm which results in a material diminution in such positions (including status, offices,
titles and reporting requirements), authority, duties or responsibilities from those contemplated by Section 3(b) of this Agreement, (ii) a material breach by the Firm of the terms of this Agreement, including, without limitation, any
material failure by the Firm to comply with paragraph 2 of this Schedule I or the nondisparagement covenant in Section 8 of this Agreement, (iii) without the Executive’s written consent, any requirement that the Executive’s
principal place of employment be relocated to a location that increases the Executive’s commute from his primary residence by more than thirty (30) miles or (iv) failure of the Firm to continue, following the expiration of the
Schedule Term, the Executive’s employment as Chief Executive Officer of PubliCo and Lazard and Chairman of the Board of Directors of PubliCo pursuant to an agreement (which, for the avoidance of doubt, may be in a form similar to this Schedule
I) having terms and conditions that are reasonable and customary at the time of such expiration, except that, in the event the Executive rejects an offer of continued employment consistent with the foregoing, Good Reason shall not exist pursuant to
this clause 

  
 6 

 
(iv). In the event of a termination for Good Reason (other than pursuant to clause (iv) of the definition of Good Reason), the notice requirements of Section 1 of this Agreement shall
not apply. For the avoidance of doubt, in the event of a termination for Good Reason pursuant to clause (iv) of the definition of Good Reason, the notice requirements of Section 1 of this Agreement shall apply. Notwithstanding the
foregoing, a termination for Good Reason shall not have occurred unless (i) the Executive gives written notice to Lazard of termination of employment within ninety (90) days after the Executive first becomes aware of the occurrence of the
circumstances constituting Good Reason, specifying in reasonable detail the circumstances constituting Good Reason, and Lazard has failed within thirty (30) days after receipt of such notice to cure (if capable of cure) the circumstances
constituting Good Reason, and (ii) the Executive’s “separation from service” (within the meaning of Section 409A of the Code) occurs no later than two years following the initial existence of one or more of the circumstances
giving rise to Good Reason. 
 “Severance Multiple” shall equal two (2). 

5. Certain Limitations on Payments. In the event that it is determined by the reasonable computation by a nationally recognized
certified public accounting firm that shall be selected by the Firm prior to any transaction constituting a change of control (which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate such change of
control) and reasonably acceptable to the Executive (the “Accountant”), which determination shall be certified by the Accountant and set forth in a certificate delivered to the Executive setting forth in reasonable detail the basis
of the Accountant’s determinations, that the aggregate amount of the payments, distributions, benefits and entitlements in the nature of compensation (within the meaning of Section 280G(B)(2) of the Code) by the Firm or any affiliate to or
for the Executive’s benefit (including any payment, distribution, benefit or entitlement made by any person or entity effecting a change of control), in each case, that constitute “parachute payments” within the meaning of
Section 280G of the Code (such payments, the “Parachute Payments”) that, but for this paragraph 5 of this Schedule I, would be payable to the Executive, exceeds the greatest amount of Parachute Payments that could be paid to
the Executive without giving rise to any liability for any excise tax imposed by Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law (such tax or taxes being hereafter collectively
referred to as the “Excise Tax”), then the aggregate amount of Parachute Payments payable to the Executive shall equal the amount that produces the greatest after-tax benefit to the Executive after taking into account first any
positions to mitigate such Excise Tax (including, without limitation, mitigation under a “reasonable compensation” analysis) and second any Excise Tax payable by the Executive. For the avoidance of doubt, this provision shall reduce the
amount of Parachute Payments otherwise payable to the Executive, only if doing so would place the Executive in a better net after-tax economic position as compared with not doing so (taking into account the Excise Tax payable in respect of such
Parachute Payments). The Firm shall reduce or eliminate the Parachute Payments, as necessary, by first reducing or eliminating the portion of the Parachute Payments provided under this Agreement (the “Agreement Payments”) that are
payable in cash and then by reducing or eliminating the non-cash portion of the Agreement Payments, in each case, in reverse order beginning with payments or benefits that are to be paid the furthest in time from the Date of Termination. For
purposes of reducing the Parachute Payments to the Executive, only the Agreement Payments (and no other Parachute Payments) shall be reduced. 

  
 7 

 In connection with making determinations under this paragraph 5 of this Schedule I and
determining the Excise Tax (if any), the Accountant shall take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the change of control, including, without limitation, the restrictive
covenants applicable to the Executive under this Agreement and any other non-competition provisions that may apply to the Executive, and the Firm shall cooperate in the valuation of any such services, including any restrictive covenants. The Firm
and the Executive agree that the severance payments payable to the Executive in connection with a Change in Control pursuant to paragraph 3 of this Schedule I are in consideration for, among other things, the restrictions and obligations set forth
in Sections 4, 5, 6, 7, 8 and 9 of this Agreement, and that, for purposes of any such restrictions, the notice period (if any) prior to the Date of Termination is intended to and functions as an extension of the period of restriction on the
Executive. All fees and expenses of the Accountant in implementing the provisions of this paragraph 5 of this Schedule I shall be borne by the Firm, and the Firm shall reimburse the Executive for all reasonable legal fees incurred with respect to
the calculations under this paragraph 5 of this Schedule I and any reasonable legal and accounting fees incurred with respect to disputes related thereto. 
 6. Section 409A. It is the intention of the parties that the payments and benefits to which the Executive could become entitled pursuant to this Agreement (including this Schedule I), as well
as the termination of the Executive’s employment under this Agreement, comply with or are exempt from Section 409A of the Code. Any payments that qualify for the “short-term deferral” exception, the “separation pay”
exception or another exception under Section 409A of the Code shall be paid pursuant to the applicable exception. For purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of
compensation under this Agreement shall be treated as a separate payment of compensation for purposes of Section 409A of the Code. In this regard, notwithstanding anything in this Agreement to the contrary, all cash amounts (and cash
equivalents) that become payable under paragraph 3 of this Schedule I on account of the Executive’s termination of employment which is an “involuntary separation from service” (within the meaning of Treasury Regulation
Section 1.409A-1(n)) shall be paid as provided under paragraph 3 of this Schedule I and in no event later than March 15 of the year following the year in which the Date of Termination occurs. In the event the parties determine that the
terms of this Agreement, including this Schedule I, do not comply with Section 409A of the Code, they will negotiate reasonably and in good faith to amend the terms of this Agreement and/or Schedule I such that they comply with, or are exempt
from, Section 409A of the Code (in a manner that attempts to minimize the economic impact of such amendment on the Executive and the Firm) within the time period permitted by the applicable Treasury Regulations and in accordance with IRS Notice
2010-6 and other applicable guidance. All expenses or other reimbursements owed to the Executive under this Agreement (including this Schedule I) shall be for expenses incurred during the Executive’s lifetime or within ten years after his
death, shall be payable in accordance with the Firm’s policies in effect from time to time, but in any event, to the extent required in order to comply with Section 409A of the Code, and shall be made on or prior to the last day of the
taxable year following the taxable year in which such expenses were incurred by the Executive. In addition, to the extent required in order to comply with Section 409A of the Code, no such reimbursement or expenses eligible for reimbursement in
any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year and the Executive’s right to reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.
Notwithstanding any other provision of this Schedule I or this Agreement, if (i) the Executive is to receive 

  
 8 

 
payments or benefits by reason of his separation from service (as such term is defined in Section 409A of the Code) other than as a result of his death, (ii) the Executive is a
“specified employee” within the meaning of Section 409A of the Code (as determined in accordance with the methodology established by the Firm as in effect on the date of the Executive’s separation from service) for the period in
which the payment or benefit would otherwise commence, and (iii) such payment or benefit would otherwise subject the Executive to any tax, interest or penalty imposed under Section 409A of the Code (or any regulation promulgated
thereunder) if the payment or benefit would commence within six months of a termination of the Executive’s employment, then such payment or benefit will instead be paid, with interest at the applicable federal rate provided for in
Section 7872(f)(2)(A) of the Code (“Interest”) determined as of the Date of Termination, as provided below in this paragraph 6 of this Schedule I. Such payments or benefits that would have otherwise been required to be made
during such six-month period will be paid to the Executive (or his estate, as the case may be) in one lump sum payment or otherwise provided to the Executive (or his estate, as the case may be) on the earlier of (A) the first business day that
is six months and one day after the Executive’s separation from service or (B) the fifth business day following the Executive’s death. Thereafter, the payments and benefits will continue, if applicable, for the relevant period set
forth in this Agreement or this Schedule I, as the case may be. 
 7. Miscellaneous. 

Section 3(b). Section 3(b) of this Agreement is hereby amended to replace the first sentence thereof with the following:
During the Schedule Term (as defined in Schedule I attached hereto), the Executive shall continue to (i) serve as the Chief Executive Officer of PubliCo and Lazard, with such authority, duties and responsibilities as are consistent with
the authority, duties and responsibilities exercised by the Executive in his capacity as Chief Executive Officer on the Second Amendment Effective Date (as defined in Schedule I attached hereto), including, without limitation, the authority,
duties and responsibilities that he exercises as the chief executive officer of a public company, (ii) serve as a member and as the Chairman of the Board of Directors of PubliCo, with such authority, duties and responsibilities as are
consistent with the authority, duties and responsibilities exercised by the Executive as Chairman of the Board of Directors of PubliCo on the Second Amendment Effective Date, (iii) report directly to the Board of Directors of PubliCo and
(iv) other than in respect of charitable, educational and similar activities that do not materially affect the Executive’s duties to the Firm (or in respect of directorships, trusteeships, or similar posts, in each case, that are approved
by the Board of Directors of PubliCo) shall devote his entire working time, labor, skill and energies to the business and affairs of the Firm. 
 Section 3(c)(ii). Section 3(c)(ii) of this Agreement is hereby amended to replace the reference to the “CEO” with a reference to the “Compensation Committee of the Board of
Directors of PubliCo” and to delete the parenthetical that follows. 
 Section 5(a). Noncompetition.
Section 5(a) of this Agreement is hereby amended and restated in its entirety to read as follows: The Executive acknowledges and recognizes the highly competitive nature of the businesses of the Firm. The Executive further acknowledges and
agrees that in the course of the Executive’s employment with the Firm, the Executive has been and shall be provided with access to sensitive and proprietary information about the clients, prospective clients, knowledge capital and business
practices of the Firm, and has been and shall 

  
 9 

 
be provided with the opportunity to develop relationships with clients, prospective clients, consultants, employees, representatives and other agents of the Firm, and the Executive further
acknowledges that such proprietary information and relationships are extremely valuable assets in which the Firm has invested and shall continue to invest substantial time, effort and expense. Accordingly, the Executive hereby reaffirms and agrees
that while employed by the Firm (including during any applicable notice period) and thereafter until (i) three months after the Date of Termination for any reason other than a termination by the Firm without Cause or by the Executive for Good
Reason or (ii) one month after the Date of Termination by the Firm without Cause or by the Executive for Good Reason (such period, the “Noncompete Restriction Period”), the Executive shall not, directly or indirectly, on the
Executive’s behalf or on behalf of any other person, firm, corporation, association or other entity, as an employee, director, advisor, partner, consultant or otherwise, engage in a “Competing Activity,” or acquire or maintain any
ownership interest in, a “Competitive Enterprise”; provided, however, that, notwithstanding the foregoing, in the event of a termination by the Executive for Good Reason pursuant to clause (iv) of the definition of Good
Reason, the provisions of clause (i) of this sentence shall apply rather than the provisions of clause (ii) of this sentence. For purposes of this Agreement, (i) “Competing Activity” means the providing of services or
performance of activities for a Competitive Enterprise in a line of business that is similar to any line of business to which the Executive provided services to the Firm in a capacity that is similar to the capacity in which the Executive acted for
the Firm while employed by the Firm, and (ii) “Competitive Enterprise” shall mean a business (or business unit) that (A) engages in any activity or (B) owns or controls a significant interest in any entity that
engages in any activity, that in either case, competes anywhere with any activity in which the Firm is engaged up to and including the Executive’s Date of Termination. Further, notwithstanding anything in this Section 5, the Executive
shall not be considered to be in violation of this Section 5 solely by reason of owning, directly or indirectly, any stock or other securities of a Competitive Enterprise (or comparable interest, including a voting or profit participation
interest, in any such Competitive Enterprise) if the Executive’s interest does not exceed 5% of the outstanding capital stock of such Competitive Enterprise (or comparable interest, including a voting or profit participation interest, in such
Competitive Enterprise). 
 Section 6. Nonsolicitation of Clients. Section 6 of this Agreement is hereby
amended to replace the definition of “Client” with the following definition: “Client” means any client or prospective client of the Firm, whether or not the Firm has been engaged by such Client pursuant to a written
agreement; provided that an entity which is not a client of the Firm shall be considered a “prospective client” for purposes of this sentence only if the Firm made a presentation or written proposal to such entity during the
12-month period preceding the Date of Termination or was preparing to make such a presentation or proposal at the time of the Date of Termination. 
 Section 8. Nondisparagement. Section 8 of this Agreement is hereby amended to add the following sentences immediately following the first sentence of such section: The Firm
(including, without limitation, any designated spokespersons) and the directors and executive officers of the Firm shall not make any comments or statements to the press, other employees of the Firm, any individual or entity with whom the Firm has a
business relationship or any other person that is disparaging to the Executive or his reputation, except for truthful statements as may be required by law. The Firm acknowledges that the nondisparagement provision in favor of the Executive under
this Section 8 is reasonable in light of all of the circumstances and 

  
 10 

 
imposes no undue hardship on the Firm. Accordingly, the Executive shall have the same enforcement rights and remedies with respect to such nondisparagement provision as the Firm has with respect
to the Covenants (including, for the avoidance of doubt, the rights and remedies set forth in Sections 11 and 13). Further, such nondisparagement provision shall be subject to reformation on the same basis as the Covenants pursuant to
Section 10(a). 
 8. Section 12. Arbitration. Section 12 of this Agreement is hereby amended
(i) to replace all references to the New York Stock Exchange, Inc.” and the “NYSE” with references to the “Financial Industry Regulatory Authority” and “FINRA,” as applicable, and (ii) to add the
following sentences at the end of such section: Prior to a Change in Control (as defined in Schedule I attached hereto), each party shall bear its own costs and expenses of any such arbitration. Following a Change in Control, Lazard shall pay
to the Executive, as incurred, all legal fees and expenses reasonably incurred by the Executive or with respect to the Executive during his lifetime or within ten years after his death in connection with any contest by Lazard, the Executive or
others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including any action to compel arbitration or enforce any arbitration award or as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement, and whether or not any such contest is under Section 12 or 13 of this Agreement or otherwise), plus Interest (as defined in Schedule I attached hereto) determined
as of the date such legal fees and expenses were incurred; provided that, the Executive shall promptly repay to Lazard all such amounts if the Executive fails to prevail on at least one material issue in dispute in any such contest.

 Section 16(b). Paragraphs 2, 3, 4, 5 and 6 of this Schedule I are hereby added to the list of sections in
Section 16(b) of this Agreement. 
 Section 16(d). Section 16(d) of this Agreement is hereby amended to
replace all references to the “CEO” with references to the “Board of Directors of PubliCo”. 

Section 16(f). Section 16(f) of this Agreement is hereby amended to add the following words at the end thereof:
“except to the extent such withholding or offset is not permitted under Section 409A of the Code without the imposition of additional taxes or penalties on the Executive.” 

Section 16(i). Section 16 of this Agreement is hereby amended to add the following new subsection: 

(i) Notwithstanding any provision of this Agreement to the contrary, to the minimum extent necessary to ensure the
provision of non-taxable benefits under Section 105(h) of the Code or any similar law, the Firm shall be entitled to alter the manner in which medical benefits are provided to the Executive following termination of his employment;
provided that in no event shall the after-tax cost to the Executive of such benefits be greater than the cost applicable to similarly situated executives of the Firm who have not terminated employment or, following a Change in Control (as
defined in Schedule I attached hereto), the cost applicable to the Executive immediately prior to the Change in Control, if more favorable to the Executive. 

  
 11 

 9. Counterparts. This Second Amendment may be executed in any number of
counterparts, each of which shall be an original and all of which, when taken together, will constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Second Amendment by facsimile transmission or
electronic means (including by “pdf”) shall be effective as delivery of a manually executed counterpart of this Second Amendment. 

  
 12 

 /s/ KMJ Initialed by the Executive 
 /s/ SDH Initialed by Lazard 
 /s/ SDH Initialed by PubliCo 

  
 13Loan and Security Agreement

 Exhibit 10.1 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT is made and dated as
of October 30, 2012 and is entered into by and among IDENTIVE GROUP, INC., a Delaware corporation (“Parent”), and each of the Domestic Subsidiaries listed on Schedule 1.1 hereto (together with Parent, hereinafter collectively referred
to as “Borrower”), and HERCULES TECHNOLOGY GROWTH CAPITAL, INC., a Maryland corporation (“Lender”). 

RECITALS 

A.         Borrower has requested that Lender make available to Borrower a loan in an aggregate
principal amount of up to Ten Million ($10,000,000) (the “Term Loan”); and 

B.         Lender is willing to make the Term Loan to Borrower on the terms and conditions set
forth in this Agreement. 
 AGREEMENT 
 NOW, THEREFORE, Borrower and Lender agree as follows: 
 SECTION
1.  DEFINITIONS AND RULES OF CONSTRUCTION 

1.1         Unless otherwise defined herein, the following capitalized terms
shall have the following meanings: 
 “Accounts” means all presently existing and hereafter arising accounts,
contract rights, payment intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by
Borrower and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing. 

“Account Control Agreement(s)” means any agreement entered into by and among the Lender, Borrower and a third party Bank or
other institution (including a Securities Intermediary) in which Borrower maintains a Deposit Account or an account holding Investment Property and which grants Lender a perfected first priority security interest in the subject account or accounts.

 “ACH Authorization” means the ACH Debit Authorization Agreement in substantially the form of Exhibit G.

 “ACH Failure” means (i) the failure of the Automated Clearing House (ACH) system to effect a transfer of
funds requested by Lender to be used to satisfy all or part of Borrower’s obligations to pay principal and interest due hereunder, or (ii) a failure by Lender to initiate debit entries for the periodic payments of such principal or
interest. 
 “Acquisition” means any acquisition by Borrower of a majority voting interest of the outstanding equity
interests in, all or substantially all the assets of, or all or substantially all the assets constituting a division or line of business of a Person. 
 “Advance(s)” means a Term Loan Advance. 
 “Advance Date”
means the funding date of any Advance. 
 “Advance Request” means a request for an Advance submitted by Parent to
Lender in substantially the form of Exhibit A. 

 “Agreement” means this Loan and Security Agreement, as amended from time to time.

 “Assignee” has the meaning given to it in Section 11.13. 

“Borrower” has the meaning given to it in the recitals to this Agreement. 

“Borrower Products” means all products, software, service offerings, technical data or technology currently being designed,
manufactured or sold by Borrower or which Borrower intends to sell, license, or distribute in the future including any products or service offerings under development, collectively, together with all products, software, service offerings, technical
data or technology that have been sold, licensed or distributed by Borrower since its incorporation. 
 “Cash” means
all cash and liquid funds. 
 “Change in Control” means any (i) reorganization, recapitalization, consolidation
or merger (or similar transaction or series of related transactions) of Borrower or any Subsidiary, sale or exchange of outstanding shares (or similar transaction or series of related transactions) of Borrower or any Subsidiary in which the holders
of Borrower or Subsidiary’s outstanding shares immediately before consummation of such transaction or series of related transactions do not, immediately after consummation of such transaction or series of related transactions, retain shares
representing more than fifty percent (50%) of the voting power of the surviving entity of such transaction or series of related transactions (or the parent of such surviving entity if such surviving entity is wholly owned by such parent), in
each case without regard to whether Borrower or Subsidiary is the surviving entity, or (ii) sale or issuance by Borrower of new shares of Preferred Stock of Borrower to investors, none of whom are current investors in Borrower, and such new
shares of Preferred Stock are senior to all existing Preferred Stock and Common Stock with respect to liquidation preferences, and the aggregate liquidation preference of the new shares of Preferred Stock is more than fifty percent (50%) of the
aggregate liquidation preference of all shares of Preferred Stock of Borrower. 
 “Claims” has the meaning given to
it in Section 11.10. 
 “Closing Date” means the date of this Agreement. 

“Collateral” means the property described in Section 3. 

“Commitment Fee” means $75,000, which fee is due to Lender on or prior to the Closing Date, and shall be deemed fully earned
on such date regardless of the early termination of this Agreement. 
 “Confidential Information” has the meaning
given to it in Section 11.12. 
 “Contingent Obligation” means, as applied to any Person, any direct or indirect
liability, contingent or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including any such obligation directly or indirectly guaranteed, endorsed, co-made or
discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued
for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to
protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course
of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support
arrangement. 

  
 2 

 “Copyright License” means any written agreement granting any right to use any
Copyright or Copyright registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
 “Copyrights” means all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State thereof, or of any other country. 

“Cost Centers” means the entities listed on Schedule 1.2. 

“Current Assets” means, as of any applicable date, all amounts that should, in accordance with GAAP, be included as current
assets on the balance sheet of Borrower (excluding inter-company balances) as at such date, excluding Accounts that the account debtor has failed to pay in full within 90 days of invoice date and net of allowance of obsolete assets with respect to
inventory. 
 “Current Liabilities” means, as of any applicable date, all amounts that should, in accordance with
GAAP, be included as current liabilities on the balance sheet of Borrower (excluding inter-company balances), as at such date. 

“Current Ratio” means the ratio of Current Assets to Current Liabilities. 

“Deposit Accounts” means any “deposit accounts,” as such term is defined in the UCC, and includes any checking
account, savings account, or certificate of deposit. 
 “Disclosure Letter” means the Disclosure Letter delivered by
Borrower on the Closing Date. 
 “Domestic Subsidiary” means any Subsidiary organized under the laws of the United
States of America, any State thereof or the District of Columbia. 
 “Dormant Subsidiary” means any Domestic
Subsidiary that (a) is not actively engaged in any business, (b) does not have assets with an aggregate book value in excess of $50,000 (net of liabilities) or annual revenues in excess of $50,000, and (c) has no third party
indebtedness outstanding (other than minimal corporate expenses incurred in the ordinary course of business). 

“EBITDA” means with respect to any fiscal period an amount equal to the sum of (a) consolidated net income (loss) of
Parent and its Subsidiaries for such fiscal period determined in accordance with GAAP, plus (b) in each case to the extent deducted in the calculation of Parent’s consolidated net income and without duplication, (i) depreciation and
amortization for such period, plus (ii) income tax expense for such period, plus (iii) consolidated total interest expense for such period, plus to the extent approved by Lender in each case (iv) non-cash stock based compensation,
impairment of goodwill, loss on disposal of assets and acquisition related expenses. 
 “ERISA” is the Employee
Retirement Income Security Act of 1974, and its regulations. 
 “End of Term Charge” has the meaning given to it in
Section 2.5. 
 “Event of Default” has the meaning given to it in Section 9. 

“Facility Charge” means one and one-half percent (1.50%) of the Maximum Term Loan Amount. 

“Financial Statements” has the meaning given to it in Section 7.1. 

“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.

  
 3 

 “Indebtedness” means indebtedness of any kind, including (a) all
indebtedness for borrowed money or the deferred purchase price of property or services (excluding trade credit entered into in the ordinary course of business due within sixty (60) days), including reimbursement and other obligations with
respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all Contingent Obligations. 

“Initial Term Loan Advance” has the meaning given to it in Section 2.1(a). 

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other
bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

“Intellectual Property” means all of Borrower’s Copyrights; Trademarks; Patents; Licenses; trade secrets and inventions;
mask works; Borrower’s applications therefor and reissues, extensions, or renewals thereof; and the goodwill associated with any of the foregoing, together with Borrower’s rights to sue for past, present and future infringement of
Intellectual Property and the goodwill associated therewith. 
 “Intellectual Property Security Agreement” means an
Intellectual Property Security Agreement made by Borrower in favor of Lender. 
 “Interest Only Period” is the period
commencing on the Closing Date and ending on the last day of the sixth month following the Closing Date. 

“Investment” means any beneficial ownership (including stock, partnership or limited liability company interests) of or in any
Person, or any loan, advance or capital contribution to any Person or the acquisition of all, or substantially all, of the assets of another Person. 
 “Joinder Agreements” means for each Subsidiary that becomes a Borrower, a completed and executed Joinder Agreement in substantially the form attached hereto as Exhibit F. 

“Lender” has the meaning given to it in the preamble to this Agreement. 

“License” means any Copyright License, Patent License, Trademark License or other license of rights or interests. 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance,
levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, and any lease in the nature of a security interest.

 “Loan” means the Advances made under this Agreement. 

“Loan Documents” means this Agreement, the Intellectual Property Security Agreement, the Pledge Agreement, the Term Notes, the
ACH Authorization, the Account Control Agreements, the Joinder Agreements, all UCC Financing Statements, and any other documents executed in connection with the Secured Obligations or the transactions contemplated hereby, as the same may from time
to time be amended, modified, supplemented or restated. 
 “Material Adverse Effect” means a material adverse effect
upon: (i) the business, operations, properties, assets or condition (financial or otherwise) of Borrower when taken in the aggregate; or (ii) the ability of Borrower to perform the Secured Obligations in accordance with the terms of the
Loan Documents, or the ability of Lender to enforce any of its rights or remedies with respect to the Secured Obligations; or (iii) a material portion of the Collateral or Lender’s Liens on a material portion of the Collateral or the
priority of such Liens. 

  
 4 

 “Maximum Term Loan Amount” means Ten Million and No/100 Dollars ($10,000,000).

 “Maximum Rate” shall have the meaning assigned to such term in Section 2.3. 

“Note(s)” means a Term Note. 
 “Parent” has the meaning given to it in the recitals to this Agreement. 

“Patent License” means any written agreement granting any right with respect to any invention on which a Patent is in
existence or a Patent application is pending, in which agreement Borrower now holds or hereafter acquires any interest. 

“Patents” means all letters patent of, or rights corresponding thereto, in the United States or in any other country, all
registrations and recordings thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States or any other country. 
 “Permitted Acquisition” means any Acquisition, so long as: (a) at least twenty (20) days prior to the consummation of such acquisition, Borrower shall have delivered to Lender
(i) notice of such acquisition, and (ii) a description of the terms of such acquisition (including without limitation, the purchase price and method and structure of payment thereof); (b) Borrower provides to Lender evidence
satisfactory to Lender that such acquisition is accretive to EBITDA (as measured on a trailing twelve month basis) and consistent with the terms of the Borrower’s business plan; (c) in the case of an Acquisition of another Person formed
under the laws of a jurisdiction other than the United States of America, (i) the consideration for the purchase price of such Acquisition consists solely of equity interests of Borrower, (ii) the board of directors (or other comparable
governing body) of such other Person shall have duly approved such acquisition, and (iii) if such entity becomes a first tier Foreign Subsidiary then such entity’s parent entity pledges sixty-five percent (65%) of such entity’s
equity interest to Lender; (d) in the case of an Acquisition of a Person formed under the laws of one of the states of the United States of America, (i) the board of directors (or other comparable governing body) of such other Person shall
have duly approved such acquisition, (ii) such entity enters into a Joinder Agreement and becomes a Borrower under this Agreement, and (iii) such entity’s parent entity pledges one hundred percent (100%) of such entity’s
equity interest; (e) after giving effect to and the consummation of the Permitted Acquisition, the Borrower (i) is in pro forma compliance with the covenants set forth in Section 7.14 and (ii) has a balance of Cash of not less
than $2,500,000 in Deposit Accounts or accounts holding Investment Property, with respect to which Lender has Account Control Agreements and which are covered by ACH Authorizations; (f) no Event of Default exists immediately prior to, or would
exist immediately after giving effect to, such acquisition; (g) the representations and warranties made or deemed made by Borrower under the Loan Documents, shall be true and correct in all material respects on and as of the date of such
acquisition and after giving effect thereto with the same force and effect as if made on and as of such date; (h) such acquisition is consummated in accordance with applicable law; (i) the purchase price of such Permitted Acquisition is no
more than $15,000,000 individually and no more than $45,000,000 in the aggregate during the term of this Agreement; provided, that Lender shall not unreasonably withhold reasonably requested increases to the purchase price amounts set forth in this
clause (i); and (i) Borrower has delivered to Lender at closing of the Permitted Acquisition a certificate of Parent’s Chief Executive Officer or Chief Financial Officer certifying to compliance with clauses (b) through
(i) above. 
 “Permitted Indebtedness” means: (i) Indebtedness of Borrower in favor of Lender arising under
this Agreement or any other Loan Document; (ii) Indebtedness existing on the Closing Date which is disclosed in Schedule 1A; (iii) Indebtedness of up to $500,000 outstanding at any time secured by a lien described in clause (vii) of
the defined term “Permitted Liens,” provided such Indebtedness does not exceed the lesser of the cost or fair market value of the Equipment financed with such Indebtedness; (iv) Indebtedness to trade creditors incurred in the ordinary
course of business, including Indebtedness incurred in the ordinary course of business with corporate credit cards; (v) Indebtedness that also constitutes a Permitted Investment; (vi) Subordinated Indebtedness; (vii) reimbursement
obligations in connection with letters of credit that are secured by cash or cash equivalents and issued on behalf of a Borrower or a Subsidiary thereof in an amount not to exceed $500,000 at any time outstanding, (viii) Contingent Obligations
consisting of guarantees by Parent of its Subsidiaries’ real property leases and equipment leases incurred in the ordinary course of business; (ix) other Indebtedness in an amount not to exceed $500,000 at any time outstanding, and
(x) extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose materially more burdensome terms upon Borrower or its Subsidiary, as the case
may be. 

  
 5 

 “Permitted Investment” means: (i) Investments existing on the Closing Date
which are disclosed in Schedule 1B; (ii) (a) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof maturing within one year from the date of acquisition
thereof, (b) commercial paper maturing no more than one year from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service,
(c) certificates of deposit issued by any bank with assets of at least $500,000,000 maturing no more than one year from the date of investment therein, and (d) money market accounts; (iii) repurchases of stock from former employees,
directors, or consultants of Borrower under the terms of applicable repurchase agreements at the original issuance price of such securities in an aggregate amount not to exceed $250,000 in any fiscal year, provided that no Event of Default has
occurred, is continuing or would exist after giving effect to the repurchases; (iv) Investments accepted in connection with Permitted Transfers; (v) Investments (including debt obligations) received in connection with the bankruptcy or
reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business; (vi) Investments consisting of notes receivable
of, or prepaid royalties and other credit extensions, to customers and suppliers who are not affiliates, in the ordinary course of business, provided that this subparagraph (vi) shall not apply to Investments of Borrower in any Subsidiary;
(vii) Investments consisting of loans not involving the net transfer on a substantially contemporaneous basis of cash proceeds to employees, officers or directors relating to the purchase of capital stock of Borrower pursuant to employee stock
purchase plans or other similar agreements approved by Borrower’s Board of Directors; (viii) Investments consisting of travel advances in the ordinary course of business; (ix) Investments in newly-formed Subsidiaries organized in the
United States, provided that such Subsidiaries enter into a Joinder Agreement promptly after their formation by Borrower and execute such other documents as shall be reasonably requested by Lender; (x) Investments in a Borrower;
(xi) funding to non-Borrower Cost Centers and funding to Subsidiaries organized outside of the United States so long as (1) the Current Ratio is equal to or greater than 1.0 to 1.0 before the funding of a Term Loan Advance, (2) after
funding of a Term Loan Advance the Current Ratio is equal to or greater than 1.0 to 1.0, and (3) Borrower has a balance of Cash of not less than $2,500,000 in Deposit Accounts or accounts holding Investment Property, with respect to which
Lender has Account Control Agreements and which are covered by ACH Authorizations; (xii) Permitted Acquisitions; and (xiii) additional Investments that do not exceed $1,000,000 in the aggregate at any one time. 

“Permitted Liens” means any and all of the following: (i) Liens in favor of Lender; (ii) Liens existing on the
Closing Date which are disclosed in Schedule 1C; (iii) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; provided, that Borrower
maintains adequate reserves therefor in accordance with GAAP; (iv) Liens securing claims or demands of materialmen, artisans, mechanics, carriers, warehousemen, landlords and other like Persons arising in the ordinary course of Borrower’s
business and imposed without action of such parties; provided, that the payment thereof is not yet required; (v) Liens arising from judgments, decrees or attachments in circumstances which do not constitute an Event of Default hereunder;
(vi) the following deposits, to the extent made in the ordinary course of business: deposits under worker’s compensation, unemployment insurance, social security and other similar laws, or to secure the performance of bids, tenders or
contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure statutory
obligations (other than liens arising under ERISA or environmental liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds; (vii) Liens on Equipment or software or other intellectual property constituting
purchase money liens and liens in connection with capital leases securing Indebtedness permitted in clause (iii) of “Permitted Indebtedness”; (viii) Liens incurred in connection with Subordinated Indebtedness; (ix) leasehold
interests in leases or subleases and licenses granted in the ordinary course of business and not interfering in any material respect with the business of the licensor; (x) Liens in favor of customs and revenue authorities arising as a matter of
law to secure payment of custom duties that are promptly paid on or before the date they become due; (xi) Liens on insurance proceeds securing the payment of financed insurance premiums that are promptly paid on or before the date they become
due (provided that such Liens extend only to such insurance proceeds and not to any other property or assets); (xii) statutory and common law rights of set-off and other similar rights as to deposits of cash and securities in favor of banks,
other depository institutions and brokerage firms; (xiii) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business so long as they

  
 6 

 
do not materially impair the value or marketability of the related property; (xiv) Liens on cash or cash equivalents securing obligations permitted under clause (vii) of the definition
of Permitted Indebtedness; and (xv) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (i) through (xi) above; provided, that any extension,
renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced (as may have been reduced by any payment thereon) does not increase.

 “Permitted Transfers” means (i) sales of Inventory in the normal course of business, (ii) non-exclusive
licenses and similar arrangements for the use of Intellectual Property in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than
territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States in the ordinary course of business, or (iii) dispositions of worn-out, obsolete or surplus Equipment at fair market value in
the ordinary course of business, and (iv) other transfers of assets having a fair market value of not more than $500,000 in the aggregate in any fiscal year. 
 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, other entity
or government. 
 “Pledge Agreement” means that certain Pledge Agreement made by Borrower in favor of Lender.

 “Preferred Stock” means at any given time any equity security issued by Borrower that has any rights, preferences
or privileges senior to Borrower’s common stock. 
 “Prepayment Charge” shall have the meaning assigned to such
term in Section 2.5. 
 “Prime Rate” means the prime rate as reported in The Wall Street Journal. 

“Receivables” means (i) all of Borrower’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations,
letters of credit, proceeds of any letter of credit, and Letter of Credit Rights, and (ii) all customer lists, software, and business records related thereto. 
 “Revenue” means consolidated revenue of Parent and its Subsidiaries determined in accordance with GAAP. 
 “Secured Obligations” means Borrower’s obligations under this Agreement and any Loan Document, including any obligation to pay any amount now owing or later arising. 

“Subordinated Indebtedness” means Indebtedness subordinated to the Secured Obligations in amounts and on terms and conditions
satisfactory to Lender in its sole discretion. 
 “Subsidiary” means an entity, whether corporate, partnership,
limited liability company, joint venture or otherwise, in which a Borrower owns or controls 50% or more of the outstanding voting securities, including each entity listed on Schedule 1 hereto. 

“Success Fee” has the meaning given to it in Section 2.6. 

“Term Loan Advance” means any Term Loan funds advanced under this Agreement. 

“Term Loan Interest Rate” means for any day a per annum rate of interest equal to the greater of either (i) the Prime
Rate plus 7.75%, and (ii) 11.00%. 
 “Term Loan Maturity Date” means November 1, 2015. 

“Term Note” means a Secured Term Promissory Note each in substantially the form of Exhibit B. 

  
 7 

 “Trademark License” means any written agreement granting any right to use any
Trademark or Trademark registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
 “Trademarks” means all trademarks (registered, common law or otherwise) and any applications in connection therewith, including registrations, recordings and applications in the United States
Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof. 
 “UCC” means the Uniform Commercial Code as the same is, from time to time, in effect in the State of California; provided, that in the event that, by reason of mandatory provisions of law, any
or all of the attachment, perfection or priority of, or remedies with respect to, Lender’s Lien on any Collateral is governed by the Uniform Commercial Code as the same is, from time to time, in effect in a jurisdiction other than the State of
California, then the term “UCC” shall mean the Uniform Commercial Code as in effect, from time to time, in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies
and for purposes of definitions related to such provisions. 
 Unless otherwise specified, all references in this Agreement or
any Annex or Schedule hereto to a “Section,” “subsection,” “Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding Section, subsection, Exhibit, Annex, or Schedule in or to this Agreement.
Unless otherwise specifically provided herein, any accounting term used in this Agreement or the other Loan Documents shall have the meaning customarily given such term in accordance with GAAP, and all financial computations hereunder shall be
computed in accordance with GAAP, except as noted in Section 7.1. Unless otherwise defined herein or in the other Loan Documents, terms that are used herein or in the other Loan Documents and defined in the UCC shall have the meanings given to
them in the UCC. 
 SECTION 2.  THE LOAN 

2.1         Term Loan. 

(a)         Advances.  Subject to the terms and conditions of this
Agreement, Lender will make, and Borrower agrees to draw, a Term Loan Advance in the amount of $7,500,000 on the Closing Date (the “Initial Term Loan Advance”). Provided that with respect to Parent and its Subsidiaries on a consolidated
basis, (i) Revenue is at least $95,000,000 on September 30, 2013 measured on a trailing 12 month basis, (ii) EBITDA is at least $3,500,000 on September 30, 2013 measured on a trailing 12 month basis, and (iii) the Current
Ratio is equal to or greater than 1.0 to 1.0 on September 30, 2013, and subject to the terms and conditions of this Agreement, beginning October 1, 2013 and continuing until December 31, 2013, Borrower may request one additional Term
Loan Advance in an aggregate amount up to $2,500,000. The aggregate outstanding Term Loan Advances may be up to the Maximum Term Loan Amount. If Borrower’s business and working capital requirements continue to increase over the term of this
Agreement, then provided that (i) Term Loan Advances to Borrower are equal to an aggregate amount of $10,000,000, (ii) Borrower is in compliance with all the terms and provisions set forth herein and in each of the other Loan Documents,
and (iii) no Event of Default shall have occurred and be continuing, Borrower may request up to an additional $10,000,000 in Term Loan Advances, which shall be subject to Lender’s investment committee approval in its sole discretion and
satisfaction of any additional conditions Lender may require. 

(b)         Advance Request.  To obtain a Term Loan Advance, Parent
shall complete, sign and deliver an Advance Request (at least five business days before the Advance Date) and Term Note to Lender. Lender shall fund the Term Loan Advance in the manner requested by the Advance Request provided that each of the
conditions precedent to such Term Loan Advance is satisfied as of the requested Advance Date. 

(c)         Interest.  The principal balance of each Term Loan Advance
shall bear interest thereon from such Advance Date at the Term Loan Interest Rate based on a year consisting of 360 days, with interest computed daily based on the actual number of days elapsed. The Term Loan Interest Rate will float and change on
the day the Prime Rate changes from time to time. 

  
 8 

 (d)
        Payment.  Borrower will pay interest on each Term Loan Advance on the first business day of each month, beginning the month after the Advance Date. Borrower shall repay the aggregate Term
Loan principal balance of the Initial Term Loan Advance that is outstanding on the last day of the Interest Only Period in 30 equal monthly installments of principal and interest beginning on the first business day of the month after expiration of
the Interest Only Period, and continuing on the first business day of each month thereafter. Borrower shall repay the aggregate Term Loan principal balance of each Term Loan Advance made after the Closing Date in equal monthly installments of
principal and interest amortized evenly over a certain period beginning the first business day of each month, beginning the month after the applicable Advance Date and continuing on the first business day of each month thereafter until the Term Loan
Maturity Date. The entire Term Loan principal balance and all accrued but unpaid interest hereunder, shall be due and payable on Term Loan Maturity Date. Borrower shall make all payments under this Agreement without setoff, recoupment or deduction
and regardless of any counterclaim or defense. Lender will initiate debit entries to Parent’s account as authorized on the ACH Authorization on each payment date of all periodic obligations payable to Lender under each Term Note or Term
Advance. 
 2.2         Maximum Interest.  Notwithstanding any
provision in this Agreement, any Term Note, or any other Loan Document, it is the parties’ intent not to contract for, charge or receive interest at a rate that is greater than the maximum rate permissible by law that a court of competent
jurisdiction shall deem applicable hereto (which under the laws of the State of California shall be deemed to be the laws relating to permissible rates of interest on commercial loans) (the “Maximum Rate”). If a court of competent
jurisdiction shall finally determine that Borrower has actually paid to Lender an amount of interest in excess of the amount that would have been payable if all of the Secured Obligations had at all times borne interest at the Maximum Rate, then
such excess interest actually paid by Borrower shall be applied as follows: first, to the payment of principal outstanding on the Term Notes; second, after all principal is repaid, to the payment of Lender’s accrued interest, costs, expenses,
professional fees and any other Secured Obligations; and third, after all Secured Obligations are repaid, the excess (if any) shall be refunded to Borrower. 
 2.3         Default Interest.  If any payment is not paid on the scheduled payment date, an amount equal to five percent (5%) of the past due amount
shall be payable on demand. In addition, upon the occurrence and during the continuation of an Event of Default hereunder, all Secured Obligations, including principal, interest, compounded interest, and professional fees, shall bear interest at a
rate per annum equal to the rate set forth in Section 2.1(c), plus five percent (5%) per annum. In the event any interest is not paid when due hereunder, delinquent interest shall be added to principal and shall bear interest on interest,
compounded at the rate set forth in Section 2.1(c), or Section 2.3, as applicable. 
 2.4
        Prepayment.  At its option upon at least 7 business days prior notice to Lender, Borrower may prepay all, but not less than all, of the outstanding Advances by paying the entire principal
balance, all accrued and unpaid interest, together with a prepayment charge equal to the following percentage of the Advance amount being prepaid: if such Advance amounts are prepaid in any of the first twelve (12) months following the Closing
Date, 2%; after twelve (12) months but prior to twenty four (24) months, 1% (each, a “Prepayment Charge”); and thereafter, 0%. Borrower agrees that the Prepayment Charge is a reasonable calculation of Lender’s lost profits
in view of the difficulties and impracticality of determining actual damages resulting from an early repayment of the Advances. 
 2.5         End of Term Charge.  Borrower shall pay Lender an end of term charge equal to five percent (5%) of the Maximum Term Loan Amount in three
(3) equal installments on each annual anniversary date of the Closing Date beginning on October 30. 2013 (the “End of Term Charge”); provided, however, on the earliest to occur of (a) the date that Borrower prepays the
outstanding Secured Obligations, or (b) the date that the Secured Obligations become due and payable, the entire amount of the End of Term Charge shall be immediately due and payable to Lender. Notwithstanding the required payment dates of the
End of Term Charge, the End of Term Charge shall be deemed earned by Lender as of the Closing Date. 
 2.6
        Success Fee.  Borrower shall pay Lender a success fee equal to five percent (5%) of the Maximum Term Loan Amount in three (3) equal installments on each annual anniversary date of
the Closing Date beginning on October 30, 2013 (the “Success Fee”); provided, however, on the earliest to occur of (a) the date that Borrower prepays the outstanding Secured Obligations, or (b) the date that the Secured

  
 9 

 
Obligations become due and payable, the entire amount of the Success Fee shall be immediately due and payable to Lender. Notwithstanding the required payment dates of the Success Fee, the Success
Fee shall be deemed earned by Lender as of the Closing Date. 
 2.7
        Facility Charge.  On the Closing Date, Borrower shall pay the Facility Charge; provided however, Lender shall credit fifty percent (50%) of the Facility Charge to Borrower only if the
aggregate Term Loan Advances (subject to payments under Section 2.1(d)) are repaid in full on and not before the Term Loan Maturity Date. 
 SECTION 3.  SECURITY INTEREST 
 3.1
        As security for the prompt, complete and indefeasible payment when due (whether on the payment dates or otherwise) of all the Secured Obligations, Borrower grants to Lender a security interest in all
of Borrower’s right, title, and interest in and to the following personal property whether now owned or hereafter acquired, including without limitation the following (collectively, the “Collateral”): (a) Receivables;
(b) Equipment; (c) Fixtures; (d) General Intangibles; (e) Inventory; (f) Investment Property (but excluding thirty-five percent (35%) of the equity interests of any Foreign Subsidiary that constitutes a Permitted
Investment; (g) Deposit Accounts; (h) Cash; (i) Goods; and all other tangible and intangible personal property of Borrower whether now or hereafter owned or existing, leased, consigned by or to, or acquired by, Borrower and wherever
located, and any of Borrower’s property in the possession or under the control of Lender; and, to the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents,
profits and products of each of the foregoing. 
 3.2
        Notwithstanding the foregoing, the term “Collateral” shall not include Borrower’s right, title or interest in, and Borrower shall not be required to grant a Lien upon any lease, license,
contract or other agreement to which Borrower is a party or any of Borrower’s rights or interests thereunder if and for so long as the valid grant of a Lien therein to Lender is prohibited as a matter of law or under the terms of such lease,
license, contract or other agreement (including where the violation of any such prohibition would result in the termination of the applicable lease, license, contract or other agreement), and such prohibition has not been or is not waived or the
consent of the other party to such lease, license, contract or other agreement, has not been or is not otherwise obtained; provided, that the exclusions set forth in this Section 3.2 shall in no way be construed (a) to apply if any
described prohibition is unenforceable under applicable laws, including Section 9-406, 9-407 or 9-408 of the UCC, (b) to apply after the cessation of any such prohibition, and upon the cessation of such prohibition, such property shall
automatically become part of the Collateral, (c) so as to limit, impair or otherwise affect Lender’s Lien upon Borrower’s rights or interests in or to monies due or to become due under any described lease, license, contract or other
agreement (including any Accounts), or (d) to limit, impair or otherwise affect Lender’s Lien upon any of Borrower’s rights or interest in and to any proceeds from the sale, license, lease or other disposition of any such lease,
license, contract or other agreement. 
 SECTION 4.  CONDITIONS PRECEDENT TO LOAN 

The obligations of Lender to make the Loan hereunder are subject to the satisfaction by Borrower of the following conditions: 

4.1         Initial Advance.  On or prior to the Closing Date, Borrower
shall have delivered to Lender the following: 
 (a)         executed
originals of the Loan Documents, Account Control Agreements, a legal opinion of Borrower’s counsel, and all other documents and instruments reasonably required by Lender to effectuate the transactions contemplated hereby or to create and
perfect the Liens of Lender with respect to all Collateral, in all cases in form and substance reasonably acceptable to Lender; 
 (b)         certified copy of resolutions of Borrower’s board of directors or equivalent governing body evidencing approval of the Loan and other transactions
evidenced by the Loan Documents; 

  
 10 

 (c)         certified copies of the
Certificate of Incorporation and the Bylaws, or equivalent documents, as amended through the Closing Date, of Borrower; 
 (d)         a certificate of good standing for Borrower from Borrower’s state of incorporation or formation and similar certificates from all other
jurisdictions in which it does business and where the failure to be qualified would have a Material Adverse Effect; 
 (e)         payment of the Facility Charge and reimbursement of Lender’s current expenses reimbursable pursuant to this Agreement, which amounts may be
deducted from the initial Term Loan Advance; and 
 (f)         such
other documents as Lender may reasonably request. 
 4.2         All
Advances.  On each Advance Date: 
 (a)         Lender shall
have received (i) an Advance Request and a Term Note for the relevant Advance as required by Section 2.1(b), each duly executed by Borrower’s Chief Executive Officer or Chief Financial Officer, and (ii) any other documents Lender
may reasonably request. 
 (b)         The representations and
warranties set forth in this Agreement and in Section 5 shall be true and correct in all material respects on and as of the Advance Date with the same effect as though made on and as of such date, except to the extent such representations and
warranties expressly relate to an earlier date. 
 (c)         Borrower
shall be in compliance with all the terms and provisions set forth herein and in each other Loan Document on its part to be observed or performed, and at the time of and immediately after such Advance no Event of Default shall have occurred and be
continuing. 
 (d)         Each Advance Request shall be deemed to
constitute a representation and warranty by Borrower on the relevant Advance Date as to the matters specified in paragraphs (b) and (c) of this Section 4.2 and as to the matters set forth in the Advance Request. 

4.3         No Default.  As of the Closing Date and each Advance Date,
(i) no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default and (ii) no event that has had or could reasonably be expected to have a Material Adverse Effect
has occurred and is continuing. 
 SECTION 5.  REPRESENTATIONS AND WARRANTIES OF BORROWER 

Borrower represents and warrants that: 
 5.1         Corporate Status.  Borrower is a corporation or limited liability company duly organized, legally existing and in good standing under the laws
of its state of formation or incorporation, and is duly qualified as a foreign corporation in all jurisdictions in which the nature of its business or location of its properties require such qualifications and where the failure to be qualified could
reasonably be expected to have a Material Adverse Effect. Borrower’s present name, former names (if any), locations, place of formation, tax identification number, organizational identification number and other information are correctly set
forth in Exhibit C, as may be updated by Borrower in a written notice (including any Compliance Certificate) provided to Lender after the Closing Date. 
 5.2         Collateral.  Borrower owns the Collateral, free of all Liens, except for Permitted Liens. Borrower has the power and authority to grant to
Lender a Lien in the Collateral as security for the Secured Obligations. 

  
 11 

 5.3
        Consents.  Borrower’s execution, delivery and performance of the Term Notes, this Agreement and all other Loan Documents, (i) have been duly authorized by all necessary corporate
action of Borrower, (ii) will not result in the creation or imposition of any Lien upon the Collateral, other than Permitted Liens and the Liens created by this Agreement and the other Loan Documents, (iii) do not violate any provisions of
Borrower’s charter documents, bylaws, or any, law, regulation, order, injunction, judgment, decree or writ to which Borrower is subject and (iv) except as described on Schedule 5.3, do not violate any contract or agreement or require the
consent or approval of any other Person. The individual or individuals executing the Loan Documents are duly authorized to do so. 
 5.4         Material Adverse Effect.  No event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is
continuing. Borrower is not aware of any event likely to occur that is reasonably expected to result in a Material Adverse Effect. 
 5.5         Actions Before Governmental Authorities.  Except as described on Schedule 5.5, there are no actions, suits or proceedings at law or in equity
or by or before any governmental authority now pending or, to the knowledge of Borrower, threatened against or affecting Borrower or its property. 
 5.6         Laws.  Borrower is not in violation of any law, rule or regulation, or in default with respect to any judgment, writ, injunction or decree of
any governmental authority, where such violation or default is reasonably expected to result in a Material Adverse Effect. Borrower is not in default in any manner under any provision of any agreement or instrument evidencing indebtedness, or any
other material agreement to which it is a party or by which it is bound. 
 5.7
        Information Correct and Current.  No information, report, Advance Request, financial statement, exhibit or schedule furnished, by or on behalf of Borrower to Lender in connection with any
Loan Document or included therein or delivered pursuant thereto contained, contains or will contain any material misstatement of fact or omitted, omits or will omit to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were, are or will be made, not misleading at the time such statement was made or deemed made. Additionally, any and all financial or business projections provided by Parent to Lender shall be (i) provided in
good faith and based on the most current data and information available to Parent, and (ii) the most current of such projections provided to Parent’s Board of Directors. 

5.8         Tax Matters.  Except as described on Schedule 5.8, Borrower
(a) has filed all federal, state and local tax returns that it is required to file, (b) has duly paid or fully reserved for all taxes or installments thereof (including any interest or penalties) as and when due, which have or may become
due pursuant to such returns, and (c) has paid or fully reserved for any tax assessment received by Borrower for the three (3) years preceding the Closing Date, if any (including any taxes being contested in good faith and by appropriate
proceedings). 
 5.9         Intellectual Property
Claims.  Borrower is the sole owner of, or otherwise has the right to use, the Intellectual Property. Except as described on Schedule 5.9,(i) each of the material Copyrights, Trademarks and Patents is valid and enforceable, (ii) no
material part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and (iii) no claim has been made to Borrower that any material part of the Intellectual Property violates the rights of any third party.
Exhibit D is a true, correct and complete list of each of Borrower’s Patents, registered Trademarks, registered Copyrights, and material agreements under which Borrower licenses Intellectual Property from third parties (other than
shrink-wrap software licenses), together with application or registration numbers, as applicable, owned by Borrower or any Subsidiary, in each case as of the Closing Date. Borrower is not in material breach of, nor has Borrower failed to perform any
material obligations under, any of the foregoing contracts, licenses or agreements and, to Borrower’s knowledge, no third party to any such contract, license or agreement is in material breach thereof or has failed to perform any material
obligations thereunder. 
 5.10         Intellectual
Property.  Except as described on Schedule 5.10, Borrower has, or in the case of any proposed business, will have, all material rights with respect to Intellectual Property necessary in the operation or conduct of Borrower’s business
as currently conducted and proposed to be conducted by 

  
 12 

 
Borrower. Without limiting the generality of the foregoing, and in the case of Licenses, except for restrictions that are unenforceable under Division 9 of the UCC, Borrower has the right, to the
extent required to operate Borrower’s business, to freely transfer, license or assign Intellectual Property without condition, restriction or payment of any kind (other than license payments in the ordinary course of business) to any third
party, and Borrower owns or has the right to use, pursuant to valid licenses, all software development tools, library functions, compilers and all other third-party software and other items that are used in the design, development, promotion, sale,
license, manufacture, import, export, use or distribution of Borrower Products. 
 5.11
        Borrower Products.  Except as described on Schedule 5.11, no Intellectual Property owned by Borrower or Borrower Product has been or is subject to any actual or, to the knowledge of Borrower,
threatened litigation, proceeding (including any proceeding in the United States Patent and Trademark Office or any corresponding foreign office or agency) or outstanding decree, order, judgment, settlement agreement or stipulation that restricts in
any manner Borrower’s use, transfer or licensing thereof or that may affect the validity, use or enforceability thereof. There is no decree, order, judgment, agreement, stipulation, arbitral award or other provision entered into in connection
with any litigation or proceeding that obligates Borrower to grant licenses or ownership interest in any future Intellectual Property related to the operation or conduct of the business of Borrower or Borrower Products. Borrower has not received any
written notice or claim, or, to the knowledge of Borrower, oral notice or claim, challenging or questioning Borrower’s ownership in any Intellectual Property (or written notice of any claim challenging or questioning the ownership in any
licensed Intellectual Property of the owner thereof) or suggesting that any third party has any claim of legal or beneficial ownership with respect thereto nor, to Borrower’s knowledge, is there a reasonable basis for any such claim. Neither
Borrower’s use of its Intellectual Property nor the production and sale of Borrower Products materially infringes the Intellectual Property or other rights of others. 

5.12         Financial Accounts.  Schedule 7.12, as may be updated by
Borrower in a written notice provided to Lender after the Closing Date, is a true, correct and complete list of (a) all banks and other financial institutions at which Borrower maintains Deposit Accounts and (b) all institutions at which
Borrower maintains an account holding Investment Property, and such exhibit correctly identifies the name, address and telephone number of each bank or other institution, the name in which the account is held, a description of the purpose of the
account, and the complete account number therefor. 
 5.13
        Employee Loans.  Borrower has no outstanding loans to any employee, officer or director of Borrower nor has Borrower guaranteed the payment of any loan made to an employee, officer or
director of Borrower by a third party. 
 5.14         Capitalization
and Subsidiaries.  Borrower’s capitalization as of the Closing Date is set forth on Schedule 5.14 annexed hereto. Borrower does not own any stock, partnership interest or other securities of any Person, except for Permitted
Investments. Attached as Schedule 5.14, as may be updated by Borrower in a written notice provided after the Closing Date, is a true, correct and complete list of each Subsidiary. 

5.15         Dormant Subsidiaries.  Each Dormant Subsidiary (a) is
not actively engaged in any business, (b) has no assets with a book value in excess of $50,000 or annual revenues in excess of $50,000, and (c) has no third party indebtedness outstanding (other than minimal corporate expenses incurred in
the ordinary course of business). 
 SECTION 6.  INSURANCE; INDEMNIFICATION 

6.1         Coverage.  Borrower shall cause to be carried and
maintained commercial general liability insurance, on an occurrence form, against risks customarily insured against in Borrower’s line of business. Such risks shall include the risks of bodily injury, including death, property damage, personal
injury, advertising injury, and contractual liability per the terms of the indemnification agreement found in Section 6.3. Borrower must maintain a minimum of $2,000,000 of commercial general liability insurance for each occurrence. Borrower
has and agrees to maintain a minimum of $2,000,000 of directors and officers’ insurance for each occurrence and $5,000,000 in the aggregate. So long as there are any Secured Obligations 

  
 13 

 
outstanding, Borrower shall also cause to be carried and maintained insurance upon the Collateral, insuring against all risks of physical loss or damage howsoever caused, in an amount not less
than the full replacement cost of the Collateral, provided that such insurance may be subject to standard exceptions and deductibles. Borrower shall also carry and maintain a fidelity insurance policy in an amount not less than $100,000. 

6.2         Certificates.  Borrower shall deliver to Lender
certificates of insurance that evidence Borrower’s compliance with its insurance obligations in Section 6.1 and the obligations contained in this Section 6.2. Borrower’s insurance certificate shall state Lender is an additional
insured for commercial general liability, an additional insured and a loss payee for all risk property damage insurance, subject to the insurer’s approval, a loss payee for fidelity insurance, and a loss payee for property insurance and
additional insured for liability insurance for any future insurance that Borrower may acquire from such insurer. Attached to the certificates of insurance will be additional insured endorsements for liability and lender’s loss payable
endorsements for all risk property damage insurance and fidelity. All certificates of insurance will provide for a minimum of thirty (30) days advance written notice to Lender of cancellation (10 days for cancellation due to non-payment of
premiums) or any other change adverse to Lender’s interests. Any failure of Lender to scrutinize such insurance certificates for compliance is not a waiver of any of Lender’s rights, all of which are reserved. 

6.3         Indemnity.  Borrower agrees to indemnify and hold Lender
and its officers, directors, employees, agents, in-house attorneys, representatives and shareholders harmless from and against any and all claims, costs, expenses, damages and liabilities (including such claims, costs, expenses, damages and
liabilities based on liability in tort, including strict liability in tort), including reasonable attorneys’ fees and disbursements and other costs of investigation or defense (including those incurred upon any appeal), that may be instituted
or asserted against or incurred by Lender or any such Person as the result of credit having been extended, suspended or terminated under this Agreement and the other Loan Documents or the administration of such credit, or in connection with or
arising out of the transactions contemplated hereunder and thereunder, or any actions or failures to act in connection therewith, or arising out of the disposition or utilization of the Collateral, excluding in all cases claims resulting solely from
Lender’s gross negligence or willful misconduct. Borrower agrees to pay, and to save Lender harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all excise, sales or other similar taxes
(excluding taxes imposed on or measured by the net income of Lender) that may be payable or determined to be payable with respect to any of the Collateral or this Agreement. 
 SECTION 7.  COVENANTS OF BORROWER 
 Borrower agrees as
follows: 
 7.1         Financial Reports.  Borrower shall
furnish to Lender the financial statements and reports listed hereinafter (the “Financial Statements”): 
 (a)         as soon as practicable (and in any event within 30 days) after the end of each month, unaudited interim and year-to-date financial statements as of the
end of such month of Parent and its Subsidiaries (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income accompanied by a report detailing any material contingencies (including
the commencement of any material litigation by or against Borrower) or any other occurrence that would reasonably be expected to have a Material Adverse Effect, all certified by Parent’s Chief Executive Officer or Chief Financial Officer to the
effect that they have been prepared in accordance with GAAP, except (i) for certain non-GAAP accounting practices used by Borrower consistent with its historical practices and consistently applied; (ii) for the absence of footnotes,
(iii) that they are subject to normal year end adjustments, and (iv) they do not contain certain non-cash items that are customarily included in quarterly and annual financial statements; 

(b)         as soon as practicable (and in any event within 45 days) after the
end of each calendar quarter, unaudited interim and year-to-date financial statements as of the end of such calendar quarter of Parent and its Subsidiaries (prepared on a consolidated and consolidating basis, if applicable), including balance sheet
and related statements of income and cash flows accompanied by a report detailing any material 

  
 14 

 
contingencies (including the commencement of any material litigation by or against Borrower) or any other occurrence that would reasonably be expected to have a Material Adverse Effect, certified
by Parent’s Chief Executive Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP, except (i) for the absence of footnotes, (ii) that they are subject to normal year end adjustments;

 (c)         as soon as practicable (and in any event within one
hundred fifty (150) days) after the end of each fiscal year, unqualified (other than the going concern qualification for the quarter ended June 30, 2012) audited financial statements as of the end of such year of Parent and its
Subsidiaries (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income and cash flows, and setting forth in comparative form the corresponding figures for the preceding fiscal year,
certified by a firm of independent certified public accountants selected by Parent and reasonably acceptable to Lender, accompanied by any management report from such accountants; 

(d)         as soon as practicable (and in any event within 30 days) after the
end of each month, a Compliance Certificate in the form of Exhibit E; 
 (e)
        as soon as practicable (and in any event within 15 days) after the end of each month, a report showing agings of accounts receivable and accounts payable of Borrower; 

(f)         promptly after the sending or filing thereof, as the case may be,
copies of any proxy statements, financial statements or reports that Parent has made available to holders of its Preferred Stock and copies of any regular, periodic and special reports or registration statements that Parent files with the Securities
and Exchange Commission or any governmental authority that may be substituted therefor, or any national securities exchange; 
 (g)         at the same time and in the same manner as it gives to its directors, copies of all notices, minutes, consents and other materials that Parent provides
to its directors in connection with meetings of the Board of Directors, and within 30 days after each such meeting, minutes of such meeting; and 
 (h)         financial and business projections promptly following their approval by Borrower’s Board of Directors, as well as budgets, operating plans and
other financial information reasonably requested by Lender. 
 Borrower shall not make any change in its (a) accounting
policies or reporting practices, except as required by GAAP or (b) fiscal years or fiscal quarters. The fiscal year of Borrower shall end on December 31. 
 The executed Compliance Certificate may be sent via facsimile to Lender at (650) 473-9194 or via e-mail to tfissori @herculestech.com. All Financial Statements required to be delivered pursuant to
clauses (a), (b) and (c) shall be sent via e-mail to financialstatements@herculestech.com with a copy to tfissori@herculestech.com provided, that if e-mail is not available or sending such Financial Statements via e-mail is not
possible, they shall be sent via facsimile to Lender at: (866) 468-8916, attention Chief Credit Officer. 

7.2         Access to Books and Records; Management Rights.  Borrower
shall permit any representative that Lender authorizes, including its attorneys and accountants, to inspect the Collateral and examine and make copies and abstracts of the books of account and records of Borrower at reasonable times and upon
reasonable notice during normal business hours. In addition, any such representative shall have the right to meet with management and officers of Borrower to discuss such books of account and records. In addition, Lender shall be entitled at
reasonable times and intervals to consult with and advise the management and officers of Borrower concerning significant business issues affecting Borrower. Such consultations shall not unreasonably interfere with Borrower’s business
operations. The parties intend that the rights granted Lender shall constitute “management rights” within the meaning of 29 C.F.R Section 2510.3-101(d)(3)(ii), but that any advice, recommendations or participation by Lender with
respect to any business issues shall not be deemed to give Lender, nor be deemed an exercise by Lender of, control over Borrower’s management or policies. 

  
 15 

 7.3         Further
Assurances;  Defend Collateral.  Borrower shall from time to time execute, deliver and file, alone or with Lender, any financing statements, security agreements, collateral assignments, notices, control agreements, or other
documents to perfect or give the highest priority to Lender’s Lien on the Collateral. Borrower hereby authorizes Lender to file any financing statements, continuation statements or amendments thereto that indicate the Collateral as all assets
of Borrower or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction, or as being of an equal or lesser scope or with greater detail.
Borrower shall from time to time procure any instruments or documents as may be requested by Lender, and take all further action that may be necessary or desirable, or that Lender may reasonably request, to perfect and protect the Liens granted
hereby and thereby. Borrower shall protect and defend Borrower’s title to the Collateral and Lender’s Lien thereon against all Persons claiming any interest adverse to Borrower or Lender other than Permitted Liens. 

7.4         Indebtedness.  Borrower shall not create, incur, assume,
guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on Borrower an obligation to prepay any
Indebtedness, except for the conversion of Indebtedness into equity securities and the payment of cash in lieu of fractional shares in connection with such conversion. 

7.5         Collateral.  Borrower shall at all times keep the
Collateral, and all other property and assets used in Borrower’s business or in which Borrower now or hereafter holds any interest free and clear from any legal process or Liens whatsoever (except for Permitted Liens), and shall give Lender
prompt written notice of any legal process affecting the Collateral, such other property and assets, or any Liens thereon. Borrower shall cause its Subsidiaries to protect and defend such Subsidiary’s title to its assets from and against all
Persons claiming any interest adverse to such Subsidiary, and Borrower shall cause its Subsidiaries at all times to keep such Subsidiary’s property and assets free and clear from any legal process or Liens whatsoever (except for Permitted
Liens), and shall give Lender prompt written notice of any legal process affecting such Subsidiary’s assets. Borrower shall not agree with any Person other than Lender not to encumber its property. 

7.6         Investments.  Borrower shall not directly or indirectly
acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments. 
 7.7         Distributions.  Borrower shall not, and shall not allow any Subsidiary to, (a) repurchase or redeem any class of stock or other equity
interest other than pursuant to employee, director or consultant repurchase plans or other similar agreements, provided, however, in each case the repurchase or redemption price does not exceed the original consideration paid for such stock or
equity interest, or (b) declare or pay any cash dividend or make a cash distribution on any class of stock or other equity interest, except that a Subsidiary may pay dividends or make distributions to Borrower, or (c) lend money to any
employees, officers or directors or guarantee the payment of any such loans granted by a third party in excess of $100,000 in the aggregate or (d) waive, release or forgive any indebtedness owed by any employees, officers or directors in excess
of $100,000 in the aggregate. 
 7.8
        Transfers.  Except for Permitted Transfers, Borrower shall not voluntarily or involuntarily transfer, sell, lease, license, lend or in any other manner convey any equitable, beneficial or
legal interest in any material portion of their assets. 
 7.9
        Mergers or Acquisitions.  Except for Permitted Acquisitions, Borrower shall not merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other
business organization (other than mergers or consolidations of (a) a Subsidiary into Borrower and (b) a Foreign Subsidiary into another Foreign Subsidiary), or acquire, or permit any of its Subsidiaries to acquire, all or substantially all
of the capital stock or property of another Person. For the abundance of caution, Parent shall always remain the surviving entity. 
 7.10         Taxes.  Borrower and its Subsidiaries shall pay when due all taxes, fees or other charges of any nature whatsoever (together with any related
interest or penalties) now or hereafter imposed or assessed against Borrower, Lender or the Collateral or upon Borrower’s ownership, possession, use, operation or disposition thereof or upon Borrower’s rents, receipts or earnings arising
therefrom. Borrower shall file on or 

  
 16 

 
before the due date therefor all personal property tax returns in respect of the Collateral. Notwithstanding the foregoing, Borrower may contest, in good faith and by appropriate proceedings,
taxes for which Borrower maintains adequate reserves therefor in accordance with GAAP. 
 7.11
        Corporate Changes.  Neither Borrower nor any Subsidiary shall change its corporate name, legal form or jurisdiction of formation without twenty (20) days’ prior written notice to
Lender. Neither Borrower nor any Subsidiary shall suffer a Change in Control, except for Dormant Subsidiaries or any Foreign Subsidiary which does not materially contribute to the business of Parent and its Subsidiaries. Neither Borrower nor any
Domestic Subsidiary shall relocate its chief executive office or its principal place of business unless: (i) it has provided prior written notice to Lender; and (ii) such relocation shall be within the continental United States. Neither
Borrower nor any Domestic Subsidiary shall relocate any item of Collateral (other than (x) sales of Inventory in the ordinary course of business, (y) relocations of Equipment having an aggregate value of up to $150,000 in any fiscal year,
and (z) relocations of Collateral from a location described on Exhibit C to another location described on Exhibit C) unless (i) it has provided prompt written notice to Lender, (ii) such relocation is within the continental United
States and, (iii) if such relocation is to a third party bailee, it has delivered a bailee agreement in form and substance reasonably acceptable to Lender. 

7.12         Deposit Accounts.  Borrower nor any Subsidiary shall
maintain any Deposit Accounts, or accounts holding Investment Property, except with respect to which Lender has an Account Control Agreement. Notwithstanding anything herein to the contrary, Borrower shall have thirty (30) days after the
Closing Date to either deliver an Account Control Agreement covering each Deposit Account or account with Investment Property listed on Schedule 7.12 or close such accounts. Until all of the Account Control Agreements over the Deposit Accounts and
accounts with Investment Property in Schedule 7.12 are delivered, Borrower (i) shall not keep Cash or Cash Equivalents or Investment Property in such accounts in excess of the amounts set forth on Schedule 7.12, or (ii) shall not transfer
any Advances into a Deposit Account or account not subject to an Account Control Agreement. Notwithstanding anything herein to the contrary, Borrower shall be permitted to make investments pursuant to clause (xi) of the defined term
“Permitted Investments” subject to the conditions set forth in such clause. 
 7.13
        Subsidiaries.  Borrower shall notify Lender of each Subsidiary formed subsequent to the Closing Date and, within 15 days of formation, shall cause any such Subsidiary organized under the laws
of any State within the United States to execute and deliver to Lender a Joinder Agreement other than a Dormant Subsidiary. 

7.14         Financial Covenants. 

(a)         Minimum Revenue.  Parent and its Subsidiaries on a
consolidated group basis shall maintain at all times Revenue of at least 85% of the monthly projections for Revenue that have been approved by Parent’s Board of Directors as Lender projections for the corresponding period and attached to
Schedule 7.14 hereto (as such projections and Schedule 7.14 may be updated from time to time by Borrower and acceptable to Lender), measured on the last day of each month on a trailing six-month basis. For the fiscal years subsequent
to the fiscal year ended December 31, 2013, Parent shall deliver to Lender updated monthly projections approved by Parent’s Board of Directors as Lender projections for applicable fiscal year not less than 30 days prior to the end of
Parent’s prior fiscal year and, in connection therewith, shall update Schedule 7.14 to the extent acceptable by Lender. 
 (b)         Minimum EBITDA.  Parent and its Subsidiaries on a consolidated group basis shall maintain at all times EBITDA of not less than $1,500,000
below the projections for EBITDA that have been approved by Parent’s Board of Directors as Lender projections for the corresponding period and attached to Schedule 7.14 hereto (as such projections and Schedule 7.14 may be updated
from time to time by Borrower and acceptable to Lender), measured on the last day of each month on a trailing six-month basis. For the fiscal years subsequent to the fiscal year ended December 31, 2013, Parent shall deliver to Lender updated
monthly projections approved by Parent’s Board of Directors as lender projections for the next fiscal year not less than 30 days prior to the end of Parent’s prior fiscal year and, in connection therewith, shall update Schedule 7.14
to the extent acceptable by Lender. 

  
 17 

 (c)         Current Ratio. Borrower shall maintain
at all times a minimum Current Ratio equal to or greater than 1.00:1.00, tested on a quarterly basis. 
 7.15
        Post-Closing.  Borrower shall execute and deliver the documents and complete the tasks set forth on Schedule 7.15, in each case within the time limits specified on such schedule.

 SECTION 8.  INTENTIONALLY OMITTED. 

SECTION 9.  EVENTS OF DEFAULT 
 The occurrence of any one or more of the following events shall be an Event of Default: 
 9.1        Payments.  Borrower fails to pay any (i) principal or interest when due under this Agreement, the Notes or any of the other Loan Documents
on the due date, unless an ACH Failure shall have occurred, (ii) principal or interest within two (2) business days of receipt of Lender’s notice that such amounts are due, in the event an ACH Failure shall have occurred with respect
to any payments of principal or interest previously due, or (iii) pay any other amounts due under this Agreement on the due date; or 
 9.2         Covenants.  Borrower breaches or defaults in the performance of any covenant or Secured Obligation under this Agreement, the Term Notes, or
any of the other Loan Documents, and (a) with respect to a default under any covenant under this Agreement (other than under Sections 6, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.14 or 7.15) such default continues for more than ten (10) business
days after the earlier of the date on which (i) Lender has given notice of such default to Borrower and (ii) Borrower has actual knowledge of such default or (b) with respect to a default under any of Sections 6, 7.4, 7.5, 7.6, 7.7,
7.8, 7.9, 7.14 or 7.15, the occurrence of such default; or 
 9.3
        Material Adverse Effect.  A circumstance has occurred that would reasonably be expected to have a Material Adverse Effect; or 

9.4         Other Loan Documents.  The occurrence of any default under
any Loan Document or any other agreement between Borrower and Lender and such default continues for more than ten (10) days after the earlier of (a) Lender has given notice of such default to Borrower, or (b) Borrower has actual
knowledge of such default; or 
 9.5
        Representations.  Any representation or warranty made by Borrower in any Loan Document shall have been false or misleading in any material respect; or 

9.6         Insolvency.  Borrower (A) (i) shall make an
assignment for the benefit of creditors; or (ii) shall be unable to pay its debts as they become due, or be unable to pay or perform under the Loan Documents, or shall become insolvent; or (iii) shall file a voluntary petition in
bankruptcy; or (iv) shall file any petition, answer, or document seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation
pertinent to such circumstances; or (v) shall seek or consent to or acquiesce in the appointment of any trustee, receiver, or liquidator of Borrower or of all or any substantial part (i.e., 33-1/3% or more) of the assets or property of
Borrower; or (vi) shall cease operations of its business as its business has normally been conducted, or terminate substantially all of its employees; or (vii) Borrower or its directors or majority shareholders shall take any action
initiating any of the foregoing actions described in clauses (i) through (vi); or (B) either (i) thirty (30) days shall have expired after the commencement of an involuntary action against Borrower seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, without such action being dismissed or all orders or proceedings thereunder affecting the operations or the
business of Borrower being stayed; or (ii) a stay of any such order or proceedings shall thereafter be set aside and the action setting it aside shall not be timely appealed; or (iii) Borrower shall file any answer admitting or not
contesting the material allegations of a petition filed against Borrower in any such proceedings; or (iv) the court in which such proceedings are pending shall enter a decree or order granting the relief sought in any such proceedings; or
(v) thirty (30) days 

  
 18 

 
shall have expired after the appointment, without the consent or acquiescence of Borrower, of any trustee, receiver or liquidator of Borrower or of all or any substantial part of the properties
of Borrower without such appointment being vacated; or 
 9.7
        Attachments; Judgments.  Any portion of Borrower’s assets is attached or seized, or a levy is filed against any such assets, or a judgment or judgments is/are entered for the payment of
money, individually or in the aggregate, of at least $100,000 which is not insured, or Borrower is enjoined or in any way prevented by court order from conducting any part of its business; or 

9.8         Other Obligations.  The occurrence of any default under any
agreement and all applicable cure or grace periods, if any, have expired or obligation of Borrower involving any Indebtedness in excess of $250,000, or the occurrence of any default under any agreement or obligation of Borrower that could reasonably
be expected to have a Material Adverse Effect. 
 SECTION 10.   REMEDIES 

10.1         General.  Upon and during the continuance of any one or
more Events of Default, (i) Lender may, at its option, accelerate and demand payment of all or any part of the Secured Obligations together with a Prepayment Charge and declare them to be immediately due and payable (provided, that upon the
occurrence of an Event of Default of the type described in Section 9.6, the Notes and all of the Secured Obligations shall automatically be accelerated and made due and payable, in each case without any further notice or act), and
(ii) Lender may notify any of Borrower’s account debtors to make payment directly to Lender, compromise the amount of any such account on Borrower’s behalf and endorse Lender’s name without recourse on any such payment for
deposit directly to Lender’s account. Lender may exercise all rights and remedies with respect to the Collateral under the Loan Documents or otherwise available to it under the UCC and other applicable law, including the right to release, hold,
sell, lease, liquidate, collect, realize upon, or otherwise dispose of all or any part of the Collateral and the right to occupy, utilize, process and commingle the Collateral. All Lender’s rights and remedies shall be cumulative and not
exclusive. 
 10.2         Collection; Foreclosure.  Upon the
occurrence and during the continuance of any Event of Default, Lender may, at any time or from time to time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of, any or all of the Collateral, in its then condition or
following any commercially reasonable preparation or processing, in such order as Lender may elect. Any such sale may be made either at public or private sale at its place of business or elsewhere. Borrower agrees that any such public or private
sale may occur upon ten (10) calendar days’ prior written notice to Borrower. Lender may require Borrower to assemble the Collateral and make it available to Lender at a place designated by Lender that is reasonably convenient to Lender
and Borrower. The proceeds of any sale, disposition or other realization upon all or any part of the Collateral shall be applied by Lender in the following order of priorities: 

First, to Lender in an amount sufficient to pay in full Lender’s costs and reasonable professionals’ and advisors’ fees
and expenses as described in Section 11.11; 
 Second, to Lender in an amount equal to the then unpaid amount of the
Secured Obligations (including principal, interest, and the Default Rate interest), in such order and priority as Lender may choose in its sole discretion; and 
 Finally, after the full, final, and indefeasible payment in Cash of all of the Secured Obligations, to any creditor holding a junior Lien on the Collateral, or to Borrower or its representatives or as a
court of competent jurisdiction may direct. 
 Lender shall be deemed to have acted reasonably in the custody, preservation and disposition of
any of the Collateral if it complies with the obligations of a secured party under the UCC. 
 10.3
        No Waiver.  Lender shall be under no obligation to marshal any of the Collateral for the benefit of Borrower or any other Person, and Borrower expressly waives all rights, if any, to require
Lender to marshal any Collateral. 

  
 19 

 10.4         Cumulative
Remedies.  The rights, powers and remedies of Lender hereunder shall be in addition to all rights, powers and remedies given by statute or rule of law and are cumulative. The exercise of any one or more of the rights, powers and remedies
provided herein shall not be construed as a waiver of or election of remedies with respect to any other rights, powers and remedies of Lender. 
 SECTION 11.  MISCELLANEOUS 
 11.1
        Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective only to the extent and duration of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement. 
 11.2         Notice.  Except as otherwise
provided herein, any notice, demand, request, consent, approval, declaration, service of process or other communication (including the delivery of Financial Statements) that is required, contemplated, or permitted under the Loan Documents or with
respect to the subject matter hereof shall be in writing, and shall be deemed to have been validly served, given, delivered, and received upon the earlier of: (i) the day of transmission by facsimile or hand delivery or delivery by an overnight
express service or overnight mail delivery service; or (ii) the third calendar day after deposit in the United States mails, with proper first class postage prepaid, in each case addressed to the party to be notified as follows: 

(a)         If to Lender: 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC. 
 Legal Department 
 Attention:  Chief Legal Officer and Todd Fissori

 400 Hamilton Avenue, Suite 310 
 Palo Alto, CA 94301 
 Facsimile:  650-473-9194 

Telephone:  650-289-3060 
 (b)         If to Borrower: 
 IDENTIVE
GROUP, INC. 
 Attention:  David Wear, Chief Financial Officer 

1900-B Carnegie Avenue 
 Santa Ana, CA 92705 
 Facsimile:  949-250-7372 

Telephone:  949-250-8888 
 With a courtesy copy to: 
 Greenberg Traurig, LLP 

One International Place 
 Boston, MA 02110 
 Attention:  Barbara A. Jones, Esq. 

Facsimile:  617.897.0954 
 Telephone:  617.310.6064 
 or to such other address as each party may
designate for itself by like notice. The failure to provide the courtesy copy shall not effect the enforceability of such notice. 
 11.3         Entire Agreement; Amendments.  This Agreement, the Term Notes, and the other Loan Documents constitute the entire agreement and understanding
of the parties hereto in respect of the subject matter hereof and thereof, and supersede and replace in their entirety any prior proposals, term sheets, letters, 

  
 20 

 
negotiations or other documents or agreements, whether written or oral, with respect to the subject matter hereof or thereof (including Lender’s revised proposal letter dated August 30,
2012). None of the terms of this Agreement, the Term Notes or any of the other Loan Documents may be amended except by an instrument executed by each of the parties hereto. 

11.4         No Strict Construction.  The parties hereto have
participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 11.5         No Waiver.  The powers conferred upon Lender by this Agreement are solely to protect its rights hereunder and under the other Loan Documents
and its interest in the Collateral and shall not impose any duty upon Lender to exercise any such powers. No omission or delay by Lender at any time to enforce any right or remedy reserved to it, or to require performance of any of the terms,
covenants or provisions hereof by Borrower at any time designated, shall be a waiver of any such right or remedy to which Lender is entitled, nor shall it in any way affect the right of Lender to enforce such provisions thereafter. 

11.6         Survival.  All agreements, representations and warranties
contained in this Agreement, the Term Notes and the other Loan Documents or in any document delivered pursuant hereto or thereto shall be for the benefit of Lender and shall survive the execution and delivery of this Agreement and the expiration or
other termination of this Agreement. 
 11.7         Successors and
Assigns.  The provisions of this Agreement and the other Loan Documents shall inure to the benefit of and be binding on Borrower and its permitted assigns (if any). Borrower shall not assign its obligations under this Agreement, the Term
Notes or any of the other Loan Documents without Lender’s express prior written consent, and any such attempted assignment shall be void and of no effect. Lender may assign, transfer, or endorse its rights hereunder and under the other Loan
Documents without prior notice to Borrower, and all of such rights shall inure to the benefit of Lender’s successors and assigns. . Notwithstanding anything herein to the contrary, Lender agrees that it will not sell or assign any interest
hereunder and under the Term Note(s) and other Loan Documents to a direct competitor of Parent and its Subsidiaries, unless a default or an Event of Default has occurred and is continuing. 

11.8         Governing Law.  This Agreement, the Term Notes and the
other Loan Documents have been negotiated and delivered to Lender in the State of California, and shall have been accepted by Lender in the State of California. Payment to Lender by Borrower of the Secured Obligations is due in the State of
California. This Agreement, the Term Notes and the other Loan Documents shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles that would cause the application
of laws of any other jurisdiction. 
 11.9         Consent to
Jurisdiction and Venue.  All judicial proceedings (to the extent that the reference requirement of Section 11.10 is not applicable) arising in or under or related to this Agreement, the Term Notes or any of the other Loan Documents
may be brought in any state or federal court located in the State of California. By execution and delivery of this Agreement, each party hereto generally and unconditionally: (a) consents to nonexclusive personal jurisdiction in Santa Clara
County, State of California; (b) waives any objection as to jurisdiction or venue in Santa Clara County, State of California; (c) agrees not to assert any defense based on lack of jurisdiction or venue in the aforesaid courts; and
(d) irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement, the Term Notes or the other Loan Documents. Service of process on any party hereto in any action arising out of or relating to this Agreement
shall be effective if given in accordance with the requirements for notice set forth in Section 11.2, and shall be deemed effective and received as set forth in Section 11.2. Nothing herein shall affect the right to serve process in any
other manner permitted by law or shall limit the right of either party to bring proceedings in the courts of any other jurisdiction. 

  
 21 

 11.10         Mutual Waiver of Jury
Trial / Judicial Reference. 
 (a)         Because disputes arising in
connection with complex financial transactions are most quickly and economically resolved by an experienced and expert person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that
their disputes be resolved by a judge applying such applicable laws. EACH OF BORROWER AND LENDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER
CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY BORROWER AGAINST LENDER OR ITS ASSIGNEE OR BY LENDER OR ITS ASSIGNEE AGAINST BORROWER. This waiver extends to all such Claims, including Claims that involve Persons other than Borrower and Lender;
Claims that arise out of or are in any way connected to the relationship between Borrower and Lender; and any Claims for damages, breach of contract, tort, specific performance, or any equitable or legal relief of any kind, arising out of this
Agreement, any other Loan Document. 
 (b)         If the waiver of jury
trial set forth in Section 11.10(a) is ineffective or unenforceable, the parties agree that all Claims shall be resolved by reference to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a
mutually acceptable referee or, if the parties cannot agree, a referee selected by the Presiding Judge of the Santa Clara County, California. Such proceeding shall be conducted in Santa Clara County, California, with California rules of evidence and
discovery applicable to such proceeding. 
 (c)         In the event
Claims are to be resolved by judicial reference, either party may seek from a court identified in Section 11.9, any prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent
permitted by law notwithstanding that all Claims are otherwise subject to resolution by judicial reference. 

11.11     Professional Fees.  Borrower promises to pay Lender’s fees and expenses
necessary to finalize the loan documentation, including but not limited to reasonable attorneys fees, UCC searches, filing costs, and other miscellaneous expenses. In addition, Borrower promises to pay any and all reasonable attorneys’ and
other professionals’ fees and expenses (including fees and expenses of in house counsel) incurred by Lender after the Closing Date in connection with or related to: (a) the Loan; (b) the administration, collection, or enforcement of
the Loan; (c) the amendment or modification of the Loan Documents; (d) any waiver, consent, release, or termination under the Loan Documents; (e) the protection, preservation, sale, lease, liquidation, or disposition of Collateral or
the exercise of remedies with respect to the Collateral; (f) any legal, litigation, administrative, arbitration, or out of court proceeding in connection with or related to Borrower or the Collateral, and any appeal or review thereof; and
(g) any bankruptcy, restructuring, reorganization, assignment for the benefit of creditors, workout, foreclosure, or other action related to Borrower, the Collateral, the Loan Documents, including representing Lender in any adversary proceeding
or contested matter commenced or continued by or on behalf of Borrower’s estate, and any appeal or review thereof. 
 11.12     Confidentiality.  Lender acknowledges that certain items of Collateral and information provided to Lender by Borrower are confidential and proprietary information
of Borrower, if and to the extent such information either (x) is marked as confidential by Borrower at the time of disclosure, or (y) should reasonably be understood to be confidential (the “Confidential Information”).
Accordingly, Lender agrees that any Confidential Information it may obtain in the course of acquiring, administering, or perfecting Lender’s security interest in the Collateral shall not be disclosed to any other person or entity in any manner
whatsoever, in whole or in part, without the prior written consent of Borrower, except that Lender may disclose any such information: (a) to its own directors, officers, employees, accountants, counsel and other professional advisors and to its
affiliates if Lender in its sole discretion determines that any such party should have access to such information in connection with such party’s responsibilities in connection with the Loan or this Agreement and, provided that such recipient
of such Confidential Information either (i) agrees to be bound by the confidentiality provisions of this paragraph or (ii) is otherwise subject to confidentiality restrictions that reasonably protect against the disclosure of Confidential
Information; (b) if such information is generally available to the public; (c) if required or appropriate in any report, statement or testimony submitted to any governmental authority having or claiming to have jurisdiction over Lender;
(d) if required or appropriate in response to any summons or subpoena or in connection with any litigation, to the extent 

  
 22 

 
permitted or deemed advisable by Lender’s counsel; (e) to comply with any legal requirement or law applicable to Lender; (f) to the extent reasonably necessary in connection with
the exercise of any right or remedy under any Loan Document, including Lender’s sale, lease, or other disposition of Collateral after default; (g) to any participant or assignee of Lender or any prospective participant or assignee;
provided, that such participant or assignee or prospective participant or assignee agrees in writing to be bound by this Section prior to disclosure; or (h) otherwise with the prior consent of Borrower; provided, that any disclosure made in
violation of this Agreement shall not affect the obligations of Borrower or any of its affiliates or any guarantor under this Agreement or the other Loan Documents. 

11.13     Assignment of Rights.  Borrower acknowledges and understands that Lender may sell
and assign all or part of its interest hereunder and under the Term Note(s) and Loan Documents to any person or entity permitted in accordance with Section 11.7 hereof (an “Assignee”). After such assignment the term “Lender”
as used in the Loan Documents shall mean and include such Assignee, and such Assignee shall be vested with all rights, powers and remedies of Lender hereunder with respect to the interest so assigned; but with respect to any such interest not so
transferred, Lender shall retain all rights, powers and remedies hereby given. No such assignment by Lender shall relieve Borrower of any of its obligations hereunder. Lender agrees that in the event of any transfer by it of the Term Note(s), it
will endorse thereon a notation as to the portion of the principal of the Term Note(s), which shall have been paid at the time of such transfer and as to the date to which interest shall have been last paid thereon. 

11.14     Revival of Secured Obligations.  This Agreement and the Loan Documents shall
remain in full force and effect and continue to be effective if any petition is filed by or against Borrower for liquidation or reorganization, if Borrower becomes insolvent or makes an assignment for the benefit of creditors, if a receiver or
trustee is appointed for all or any significant part of Borrower’s assets, or if any payment or transfer of Collateral is recovered from Lender. The Loan Documents and the Secured Obligations and Collateral security shall continue to be
effective, or shall be revived or reinstated, as the case may be, if at any time payment and performance of the Secured Obligations or any transfer of Collateral to Lender, or any part thereof is rescinded, avoided or avoidable, reduced in amount,
or must otherwise be restored or returned by, or is recovered from, Lender or by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment,
performance, or transfer of Collateral had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, avoided, avoidable, restored, returned, or recovered, the Loan Documents and the Secured Obligations shall be
deemed, without any further action or documentation, to have been revived and reinstated except to the extent of the full, final, and indefeasible payment to Lender in Cash. 

11.15     Counterparts.  This Agreement and any amendments, waivers, consents or
supplements hereto may be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the
same instrument. 
 11.16     No Third Party Beneficiaries.  No provisions of the
Loan Documents are intended, nor will be interpreted, to provide or create any third-party beneficiary rights or any other rights of any kind in any person other than Lender and Borrower unless specifically provided otherwise herein, and, except as
otherwise so provided, all provisions of the Loan Documents will be personal and solely between the Lender and Borrower. 
 11.17     Publicity.  Upon Parent’s prior written consent which shall not be unreasonably withheld or delayed, Lender may use Borrower’s name and logo, and include
a brief description of the relationship between Borrower and Lender, in Lender’s marketing materials. 
 (SIGNATURES TO
FOLLOW) 

  
 23 

 IN WITNESS WHEREOF, Borrower and Lender have duly executed and delivered this Loan and
Security Agreement as of the day and year first above written. 
  

					
	BORROWER:	 	
		
	 IDENTIVE GROUP, INC.
	 	
			
	Signature:	 	     /s/ David Wear
	 	
			
	Print Name:	 	     David Wear
	 	
			
	Title:	 	     CFO
	 	

 Accepted in Palo Alto, California: 

 

					
	LENDER:	 	
		
	 HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
	 	
			
	Signature:	 	     /s/ K. Nicholas Martitsch
	 	
			
	Print Name:	 	     K. Nicholas Martitsch
	 	
			
	Title:	 	     Associate General Counsel
	 	

  
 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]