Document:

ex_185580.htm

EXHIBIT 10.1

 

AMENDMENT NO. 3

 

This AMENDMENT NO. 3, dated as of May 8, 2020 (this “Agreement”), by and among Boyd Gaming Corporation, a Nevada corporation (“Borrower”), the Guarantors, each Lender party hereto and Bank of America, N.A., as administrative agent (in such capacity, “Administrative Agent”) under the Credit Agreement (as defined below), and effective as of the Agreement Effective Date (as defined below), with effect from and after the Effective Date. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.

 

RECITALS:

 

WHEREAS, reference is hereby made to that certain Third Amended and Restated Credit Agreement, dated as of August 14, 2013 (as amended or modified by that certain Amendment No. 1 and Joinder Agreement, dated as of September 15, 2016, that certain Amendment No. 2 and Refinancing Amendment, dated as of March 29, 2017 and that certain Joinder Agreement, dated as of August 2, 2018, and as it may be amended, restated, replaced, supplemented or otherwise modified and in effect immediately prior to giving effect to the amendments contemplated by this Agreement, the “Existing Credit Agreement” and, after giving effect to the amendments contemplated by this Amendment, the “Credit Agreement”), among Borrower, the Lenders party thereto from time to time, Administrative Agent and the other parties thereto;

 

WHEREAS, Borrower desires to make certain amendments to the Existing Credit Agreement; and

 

WHEREAS, the Lenders party hereto (constituting the Required Covenant Lenders and Required Revolving Lenders under the Credit Agreement) and Administrative Agent agree to make such amendments to the Existing Credit Agreement, in each case, subject to the conditions and on the terms set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

AMENDMENTS TO EXISTING CREDIT AGREEMENT

 

SECTION 1.     Consent of Lenders.

 

(a)     Each Lender under the Existing Credit Agreement that executes and delivers a lender agreement in substantially the form attached hereto as Annex I (a “Consenting Lender Agreement” and, each such Lender, a “Consenting Lender”) hereby irrevocably agrees to the amendments to the Existing Credit Agreement provided for herein, with respect to all of such Consenting Lender’s Loans and Commitments.

 

(b)     Each Consenting Lender Agreement shall be subject to the terms and conditions of this Agreement and shall be binding upon the Lender party thereto and any successor, participant or assignee of such Lender and may not be revoked or terminated by the Lender party thereto or any such successor, participant or assignee. Each Person that executes and delivers a Consenting Lender Agreement and any permitted successor, participant or assignee of such Lender shall be a party to this Agreement as if such Person executed and delivered a counterpart hereof. Each Consenting Lender Agreement shall constitute a part of this Agreement and each signature page thereto shall constitute a signature page hereto.

 

 

 

 

SECTION 2.     Agreement Effective Date Amendments. Effective upon the occurrence of the Agreement Effective Date (as defined below), with effect from and after March 30, 2020 (the “Effective Date”) the Existing Credit Agreement is hereby amended as follows:

 

(a)     The proviso in the last sentence of the definition of “Applicable Rate” in Section 1.01 of the Existing Credit Agreement is hereby amended by (i) replacing “ and ” immediately before clause (ii) thereof with “, ” and (ii) inserting “ and (iii) during the period from May 8, 2020 until the end of the Initial Covenant Relief Period (as defined in Section 7.10(d)), Pricing Level 5 shall apply” immediately before the period at the end thereof.

 

(b)     The first sentence in the definition of “Base Rate” in Section 1.01 of the Existing Credit Agreement is hereby amended by adding the following proviso: “provided that, during the period from May 8, 2020 until the end of the Initial Covenant Relief Period, in no event shall the Base Rate with respect to the Initial Revolving Credit Facility and the Term A Facility be less than 1.50% per annum”.

 

(c)     The last proviso in the definition of “Eurodollar Rate” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated as follows: “provided, further, that in no event shall the Eurodollar Rate be less than (i) with respect to the Initial Revolving Credit Facility and the Term A Facility, (A) during the period from May 8, 2020 until the end of the Initial Covenant Relief Period, 0.50% per annum and (B) at any other time, 0.0% per annum and (ii) with respect to any other Facility, 0.00% per annum”.

 

(d)     Section 7.10 of the Existing Credit Agreement is hereby amended and restated as follows:

 

7.10     Financial Covenants. Solely for the benefit of the Covenant Lenders, so long as any Lender shall have any Commitment, any Loan or other Obligation under any Covenant Facility shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding, subject to Section 1.08:

 

(a)     Interest Coverage Ratio.

 

(i)     Subject to Section 7.10(a)(ii), Borrower shall not permit the Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to be less than 1.75 to 1.00.

 

(ii)     Notwithstanding Section 7.10(a)(i) above, during the Initial Covenant Relief Period, Borrower shall not be required to comply with Section 7.10(a)(i); provided that (1) for the avoidance of doubt, (I) if at any time during the Initial Covenant Relief Period, a default shall be made in the due observance or performance by Borrower or any Restricted Subsidiary of any Covenant Relief Period Condition or (II) if Borrower shall fail to deliver the Compliance Certificate in respect of the fiscal quarter ending June 30, 2021 on or prior to the dates required by this Agreement, then this Section 7.10(a)(ii) shall be null and void and shall be deemed to not have applied in respect of any fiscal quarter ending during the Initial Covenant Relief Period and (2) if the Initial Covenant Relief Period is terminated in accordance with clauses (ii) or (iii) of the definition thereof, then the minimum Interest Coverage Ratio levels for each fiscal quarter after the Qualifying Quarter shall be those as in effect and set forth in Section 7.10(a)(i).

 

 

 

 

(b)     Total Leverage Ratio.

 

(i)     Subject to Section 7.10(b)(ii), Borrower shall not permit the Total Leverage Ratio on the last day of any period of four fiscal quarters of the Borrower set forth below to be greater than the ratio set forth below opposite such period:

 

	
			Four Fiscal Quarters Ending

				
			Maximum Total

			Leverage Ratio

			
	
			September 30, 2016 through December 31, 2016

				
			7.75 to 1.00

			
	
			March 31, 2017 through December 31, 2017

				
			7.00 to 1.00

			
	
			March 31, 2018 through December 31, 2018

				
			6.25 to 1.00

			
	
			March 31, 2019 through December 31, 2019

				
			6.00 to 1.00

			
	
			March 31, 2020 through December 31, 2020

				
			5.75 to 1.00

			
	
			March 31, 2021 and thereafter

				
			5.50 to 1.00

			

 

 

(ii)     Notwithstanding Section 7.10(b)(i) above, (A) during the Initial Covenant Relief Period, Borrower shall not be required to comply with Section 7.10(b)(i) and (B) commencing with the fiscal quarter ending June 30, 2021, Borrower shall not permit the Total Leverage Ratio as of the last day of any fiscal quarter of Borrower to exceed 7.75:1.00; provided that, in the case of each of (A) and (B), (1) for the avoidance of doubt, (I) if at any time during the Covenant Relief Period, a default shall be made in the due observance or performance by Borrower or any Restricted Subsidiary of any Covenant Relief Period Condition or (II) if Borrower shall fail to deliver the Compliance Certificate in respect of the fiscal quarter ending June 30, 2021 on or prior to the dates required by this Agreement, then this Section 7.10(b)(ii) shall be null and void and shall be deemed to not have applied in respect of any fiscal quarter ending during the Covenant Relief Period and (2) if the Covenant Relief Period is terminated due to a termination of the Initial Covenant Relief Period in accordance with clauses (ii) or (iii) of the definition thereof or due to a termination of the Extended Covenant Relief Period in accordance with clauses (ii) or (iii) of the definition thereof, then the maximum Total Leverage Ratio levels for each fiscal quarter after the last fiscal quarter of the most recent Test Period ended prior to such termination shall be those as in effect and set forth in Section 7.10(b)(i).

 

(c)     Secured Leverage Ratio.

 

 

 

 

(i)     Subject to Section 7.10(c)(ii), Borrower shall not permit the Secured Leverage Ratio on the last day of any period of four fiscal quarters of the Borrower set forth below to be greater than the ratio set forth below opposite such period:

 

 

	
			Four Fiscal Quarters Ending

				
			Maximum Secured

			Leverage Ratio

			
	
			September 30, 2016 through December 31, 2017

				
			4.50 to 1.00

			
	
			March 31, 2018 through December 31, 2018

				
			4.00 to 1.00

			
	
			March 31, 2019 through December 31, 2019

				
			3.75 to 1.00

			
	
			March 31, 2020 and thereafter

				
			3.50 to 1.00

			

 

 

(ii)     Notwithstanding Section 7.10(c)(i) above, during the Initial Covenant Relief Period, Borrower shall not be required to comply with Section 7.10(c)(i); provided that (1) for the avoidance of doubt, (I) if at any time during the Initial Covenant Relief Period, a default shall be made in the due observance or performance by Borrower or any Restricted Subsidiary of any Covenant Relief Period Condition or (II) if Borrower shall fail to deliver the Compliance Certificate in respect of the fiscal quarter ending June 30, 2021 on or prior to the dates required by this Agreement, then this Section 7.10(c)(ii) shall be null and void and shall be deemed to not have applied in respect of any fiscal quarter ending during the Initial Covenant Relief Period and (2) if the Initial Covenant Relief Period is terminated in accordance with clauses (ii) or (iii) of the definition thereof, then the maximum Secured Leverage Ratio levels for each fiscal quarter after the Qualifying Quarter shall be those as in effect and set forth in Section 7.10(c)(i).

 

(d)     Section 7.10 Defined Terms. As used in this Section 7.10, the following terms shall have the following meanings:

 

(i)     “Covenant Relief Period” means the period commencing on the Covenant Relief Period Commencement Date and ending on the later of (i) the Initial Covenant Relief Period Termination Date and (ii) the Extended Covenant Relief Period Termination Date.

 

(ii)     “Covenant Relief Period Commencement Date” means March 30, 2020.

 

(iii)     “Covenant Relief Period Conditions” means the Borrower complies with each of the requirements listed on Schedule I to that certain Amendment No. 3 to this Agreement, dated as of May 8, 2020, among the Borrower, the Guarantors, the Lenders party thereto and the Administrative Agent.

 

 

 

 

(iv)     “Covenant Relief Period Termination Notice” means a certificate of a Responsible Officer of the Borrower that is delivered to the Administrative Agent (x) stating that the Borrower irrevocably elects to terminate the Covenant Relief Period effective as of the date on which the Administrative Agent receives such Covenant Relief Period Termination Notice and that commencing with the first fiscal quarter ending after the Qualifying Quarter, the financial covenants in Section 7.10 shall be governed by clauses (a)(i), (b)(i) and (c)(i) thereof (instead of clauses (a)(ii), (b)(ii) and (c)(ii) thereof) and (y) certifying that the Borrower would have been in compliance with the financial covenants in Section 7.10(a)(i), (b)(i) and (c)(i) as of the most recent Test Period if such financial covenants had been applicable, and setting forth in reasonable detail the computations necessary to determine such compliance.

 

(v)     “Extended Covenant Relief Period” means the period commencing on the date on which the Administrative Agent receives from the Borrower the Compliance Certificate in respect of the fiscal quarter ending June 30, 2021 and ending on the earliest of (i) the first date on which the Total Leverage Ratio is equal to or less than 6.00 to 1.00 (the “Extended Relief Period Threshold”), (ii) the date that the Administrative Agent receives a Covenant Relief Period Termination Notice from Borrower and (iii) the date upon which the Borrower fails to satisfy the Covenant Relief Period Conditions. The date on which the Extended Covenant Relief Period ends is referred to as the “Extended Covenant Relief Period Termination Date”.

 

(vi)     “Initial Covenant Relief Period” means the period commencing on the Covenant Relief Period Commencement Date and ending on the earliest of (i) the date on which the Administrative Agent receives from the Borrower the Compliance Certificate in respect of the fiscal quarter ending June 30, 2021, (ii) the date that the Administrative Agent receives a Covenant Relief Period Termination Notice from Borrower and (iii) the date upon which the Borrower fails to satisfy the Covenant Relief Period Conditions. The date on which the Initial Covenant Relief Period ends is referred to as the “Initial Covenant Relief Period Termination Date”.

 

(vii)     “Qualifying Quarter” means the last fiscal quarter of the most recent Test Period ended prior to the termination of the Initial Covenant Relief Period.

 

(e)     Notwithstanding anything to the contrary in the definition of “Consolidated EBITDA”, solely for purposes of Section 7.10(a)(ii), 7.10(b)(ii) and 7.10(c)(ii) and calculating the Extended Relief Period Threshold and the Incremental Threshold if the Initial Covenant Relief Period is terminated in accordance with clause (i) of the definition thereof, Consolidated EBITDA for the Test Period ending June 30, 2021 shall be deemed to be Consolidated EBITDA for the fiscal quarters ending March 31, 2021 and June 30, 2021 multiplied by 2, and (ii) Consolidated EBITDA for the Test Period ending September 30, 2021 shall be deemed to be Consolidated EBITDA for the fiscal quarters ending March 31, 2021, June 30, 2021 and September 30, 2021 multiplied by 4/3.

 

(f)     Notwithstanding anything to the contrary in the definition of “Consolidated EBITDA”, solely for purposes of (A) any Covenant Relief Period Termination Notice and (B) Section 7.10(a)(i), 7.10(b)(i) and 7.10(c)(i) and calculating the Extended Relief Period Threshold and the Incremental Threshold if the Initial Covenant Relief Period is terminated in accordance with clauses (ii) or (iii) of the definition thereof, (i) Consolidated EBITDA for the Test Period ending on the last day of the Qualifying Quarter, shall be deemed to be Consolidated EBITDA for the Qualifying Quarter multiplied by 4, (ii) Consolidated EBITDA for the Test Period ending on the last day of the fiscal quarter immediately following the Qualifying Quarter shall be deemed to be Consolidated EBITDA for the Qualifying Quarter and the immediately following fiscal quarter multiplied by 2 and (iii) Consolidated EBITDA for the Test Period ending on the last day of the second fiscal quarter following the Qualifying Quarter shall be deemed to be Consolidated EBITDA for the Qualifying Quarter and the two fiscal quarters following the Qualifying Quarter multiplied by 4/3.

 

 

 

 

(e)     A new Section 10.28 is hereby added to the Existing Credit Agreement as follows:

 

Section 10.28. Statement to Creditors and Investors by Boyd Gaming Regarding the Pledging of Kansas Star Casino Assets. Notwithstanding any promise, covenant, or pledge made by, any condition agreed to, or any guaranty, indenture, agreement, contract or other document executed by Boyd Gaming Corporation for the benefit of any creditor or investor to pledge Kansas Star Casino, its assets, or any assets purchased or leased by Boyd Gaming Corporation (or any predecessor entity) for Kansas Star Casino on behalf of the State of Kansas, Boyd Gaming hereby gives notice to all creditors and investors that, in the event of bankruptcy or default on any loan or other debt secured in whole or in part by Kansas Star Casino or Kansas Star Casino assets, KRGC does not waive, nor has it waived, any of the State of Kansas’ rights under law or under the lottery gaming facility management contract to secure the games and select a new casino manager.

 

SECTION 3.     Amendments to Loan Documents. Each Consenting Lender, by executing a Consenting Lender Agreement, consents to, and authorizes Borrower, each Guarantor and Administrative Agent to enter into such amendments, restatements, amendment and restatements, supplements and modifications to the exhibits and schedules to the Credit Agreement as Administrative Agent deems reasonably necessary or desirable in connection with this Agreement and the transactions contemplated hereby.

 

SECTION 4.     Additional Amendments. In addition to Sections 2 and 3 of this Article I, if the Required Lenders consent to this Agreement, then effective upon the occurrence of the Agreement Effective Date (as defined below), with effect from and after the Effective Date, the Existing Credit Agreement is hereby amended as follows:

 

(a)     Section 1.01 of the Existing Credit Agreement is hereby amended by adding the following definitions in proper alphabetical sequence:

 

“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.

 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

 

 

 

“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

 

“UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person subject to IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

 

“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

 

(b)     The definition of “Bail-In Action” is hereby amended by replacing “EEA Resolution Authority” with “Resolution Authority” and replacing “EEA Financial Institution” with “Affected Financial Institution”.

 

(c)     The definition of “Bail-In Legislation” is hereby amended and restated in its entirety as follows:

 

“Bail-In Legislation” means, (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, rule, regulation or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

 

(d)     The definition of “Consolidated EBITDA” is hereby amended by adding the following at the end thereof:

 

Notwithstanding anything to the contrary in this definition of “Consolidated EBITDA”, if the Initial Covenant Relief Period is terminated in accordance with clause (i) of the definition thereof, Consolidated EBITDA for the Test Period ending June 30, 2021 shall be deemed to be Consolidated EBITDA for the fiscal quarters ending March 31, 2021 and June 30, 2021 multiplied by 2, and (ii) Consolidated EBITDA for the Test Period ending September 30, 2021 shall be deemed to be Consolidated EBITDA for the fiscal quarters ending March 31, 2021, June 30, 2021 and September 30, 2021 multiplied by 4/3.

 

Notwithstanding anything to the contrary in this definition of “Consolidated EBITDA”, if the Initial Covenant Relief Period is terminated in accordance with clauses (ii) or (iii) of the definition thereof, (i) Consolidated EBITDA for the Test Period ending on the last day of the Qualifying Quarter, shall be deemed to be, at the Borrower’s election, (1) Consolidated EBITDA for the Qualifying Quarter multiplied by 4, (ii) Consolidated EBITDA for the Test Period ending on the last day of the fiscal quarter immediately following the Qualifying Quarter shall be deemed to be Consolidated EBITDA for the Qualifying Quarter and the immediately following fiscal quarter multiplied by 2 and (iii) Consolidated EBITDA for the Test Period ending on the last day of the second fiscal quarter following the Qualifying Quarter shall be deemed to be Consolidated EBITDA for the Qualifying Quarter and the two fiscal quarters following the Qualifying Quarter multiplied by 4/3.

 

 

 

 

(e)     The definition of “Write-Down and Conversion Powers” is hereby amended and restated in its entirety as follows:

 

“Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

 

(f)     Section 7.03 of the Existing Credit Agreement is hereby amended by adding a new clause (m) thereto as follows and replacing the reference to “(l)” in the last sentence thereof with “(m)”:

 

(m)     (i) unsecured Indebtedness or Indebtedness that is secured by the Collateral on a second priority (or other junior priority) basis to the Liens securing the Obligations, of Borrower and its Restricted Subsidiaries incurred during the Covenant Relief Period pursuant to any bail-out, support or relief plan offered by any Governmental Authority in connection with the COVID-19 pandemic so long as at the time of incurrence thereof, no Event of Default shall have occurred and be continuing after giving effect thereto and (ii) Permitted Refinancings thereof.

 

(g)     Section 7.01 of the Existing Credit Agreement is hereby amended by adding a new clause (x) at the end thereof as follows:

 

(x)     Liens securing Indebtedness incurred pursuant to Section 7.03(m) and subject to a Customary Intercreditor Agreement.

 

(h)     Section 10.26 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

 

Section 10.26. Acknowledgement and Consent to Bail-In of Affected Financial Institutions. Solely to the extent any Lender or L/C Issuer that is an EEA Financial Institution is a party to this Agreement and notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender or L/C Issuer that is an Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

 

 

 

(a)     the application of any Write-Down and Conversion Powers by an the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender or L/C Issuer that is an Affected Financial Institution; and

 

(b)     the effects of any Bail-In Action on any such liability, including, if applicable;

 

(i)      a reduction in full or in part or cancellation of any such liability;

 

(ii)      a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)     the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

 

(i)     A new Section 10.29 is hereby added to the Existing Credit Agreement as follows:

 

Section 10.29. Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States): 

 

(a)     In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

 

 

 

 

(b)     As used in this Section 10.22, the following terms have the following meanings:

 

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

 

“Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

 

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

 

SECTION 5.     Agreement of Required Revolving Lenders. Pursuant to Section 10.01(j) of the Existing Credit Agreement, the Required Revolving Lenders hereby agree that for purposes of determining compliance with Section 4.02 of the Credit Agreement in connection with any Credit Extension to be made under the Revolving Facility during the Initial Covenant Relief Period, clause (a) of the definition of “Material Adverse Effect” shall not include effects, events, occurrences, facts, conditions or changes arising out of or resulting from or in connection with the COVID-19 pandemic.

 

ARTICLE II

 

REPRESENTATION AND WARRANTIES

 

To induce the Lenders party hereto to agree to this Agreement, each of Borrower and the Guarantors represents to Administrative Agent and the Lenders that, as of the Agreement Effective Date:

 

SECTION 1.     Corporate Existence. Such Person (a) is (i) duly organized or formed and validly existing and (ii) in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party and (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in subsections (a)(i) (other than with respect to Borrower), (a)(ii), (b)(i), or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

 

 

 

SECTION 2.     Authorization; No Contravention. The execution, delivery and performance by such Person of this Agreement and any other Loan Document to which such Person is a party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) except where such conflict, breach or contravention or creation of a Lien may not reasonably be expected to have a Material Adverse Effect, conflict with or result in any breach or contravention of, or the creation of any Lien under, (i) any Contractual Obligation to which such Person is a party, or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) except where such violation may not reasonably be expected to have a Material Adverse Effect, violate any Law.

 

SECTION 3.     Binding Effect. This Agreement has been and each other Loan Document to which such Person is a party, when delivered, will have been, duly executed and delivered by such Person. Each of this Agreement and each other Loan Document to which such Person is a party, when so delivered will constitute, a legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally, and general principles of equity.

 

SECTION 4.     No Default. No Default or Event of Default has occurred and is continuing.

 

ARTICLE III

 

CONDITIONS TO THE AGREEMENT EFFECTIVE DATE

 

This Agreement shall become effective on the date (the “Agreement Effective Date”) on which each of the following conditions is satisfied or waived:

 

SECTION 1.     Execution of Counterparts. Administrative Agent shall have received (a) executed counterparts of this Agreement from each of Borrower, the Guarantors, the L/C Issuer, the Swing Line Lender and Administrative Agent and (b) executed Consenting Lender Agreements from Lenders constituting the Required Covenant Lenders and Required Revolving Lenders.

 

SECTION 2.     Costs and Expenses. To the extent invoiced at least three (3) Business Days prior to the Agreement Effective Date, all of the reasonable and documented out-of-pocket costs and expenses (including the reasonable fees, expenses and disbursements of Cahill, Gordon & Reindel LLP and one local counsel in each applicable jurisdiction reasonably deemed necessary by Administrative Agent) incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Agreement shall have been paid.

 

SECTION 3.     Payment of Fees to Lenders. Borrower shall have paid to Administrative Agent, for the account of each Lender under the Existing Credit Agreement that has executed a Consenting Lender Agreement prior to 5:00 p.m., New York City time, on May 7, 2020, a consent fee equal to 0.05% of the outstanding principal amount of such Lender’s Term A Loans and/or Revolving Commitments on the Agreement Effective Date.

 

 

 

 

SECTION 4.     No Default or Event of Default. Both immediately prior to and immediately after giving effect to this Agreement no Default or Event of Default shall have occurred and be continuing.

 

SECTION 5.     Certificate of Responsible Officer. Administrative Agent shall have received a certificate from a Responsible Officer of Borrower, certifying as to Section 4 of this Article III.

 

ARTICLE IV

 

VALIDITY OF OBLIGATIONS AND LIENS

 

SECTION 1.     Reaffirmation. Each of the Loan Parties party hereto (a) acknowledges and agrees that all of such Loan Party’s obligations under the Collateral Documents and the other Loan Documents (as amended hereby) to which it is a party are reaffirmed and remain in full force and effect on a continuous basis as amended by this Agreement, (b) reaffirms each Lien and security interest granted by it to the Administrative Agent for the benefit of the Secured Parties to secure the Secured Obligations and the Guarantees of the Obligations made by it pursuant to the Existing Credit Agreement and (c) acknowledges and agrees that the grants of Liens and security interests by and the Guarantees of the Loan Parties contained in the Existing Credit Agreement and the Collateral Documents are, and shall remain, in full force and effect after giving effect to this Agreement and the transactions contemplated hereby and thereby.

 

ARTICLE V

 

MISCELLANEOUS 

 

SECTION 1.     Amendment, Modification and Waiver. This Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of Borrower and Administrative Agent (acting at the direction of such Lenders as may be required under Section 10.01 of the Credit Agreement).

 

SECTION 2.     Entire Agreement. This Agreement, the other Loan Documents and the Consenting Lender Agreements constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

SECTION 3.     Governing Law; Jurisdiction; Etc.; Waiver of Right to Trial by Jury; Confidentiality; No Advisory or Fiduciary Responsibility. Each party hereto agrees that Sections 10.17 (Governing Law; Jurisdiction; Etc.), 10.18 (Waiver of Right to Trial by Jury), 10.08 (Confidentiality) and 10.27 (No Advisory or Fiduciary Responsibility) of the Credit Agreement shall apply to this Agreement mutatis mutandis.

 

SECTION 4.     Severability. Wherever 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 applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Agreement.

 

 

 

 

SECTION 5.     Counterparts. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed signature page to this Agreement by facsimile or other electronic transmission (including portable document format (“.pdf”) or similar format) shall be effective as delivery of a manually executed counterpart hereof. The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby (including without limitation Consenting Lender Agreements) shall be deemed to include electronic signatures and contract formations on electronic platforms approved by Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by Administrative Agent pursuant to procedures approved by it (it being understood and agreed that documents signed manually but delivered in “.pdf” or “.tif” format (or other similar formats specified by Administrative Agent) shall not constitute electronic signatures).

 

SECTION 6.     Loan Document. This Agreement shall constitute a “Loan Document” as defined in the Credit Agreement.

 

SECTION 7.     No Novation. The parties hereto expressly acknowledge that it is not their intention that this Agreement or any of the other Loan Documents executed or delivered pursuant hereto constitute a novation of any of the obligations, covenants or agreements contained in the Existing Credit Agreement or any other Loan Document, but rather constitute a modification thereof or supplement thereto pursuant to the terms contained herein. The Existing Credit Agreement and the Loan Documents, in each case as amended, modified or supplemented hereby, shall be deemed to be continuing agreements among the parties thereto, and all documents, instruments, and agreements delivered, as well as all Liens created, pursuant to or in connection with the Existing Credit Agreement and the other Loan Documents shall remain in full force and effect, each in accordance with its terms (as amended, modified or supplemented by this Agreement), unless such document, instrument, or agreement has otherwise been terminated or has expired in accordance with or pursuant to the terms of this Agreement or such document, instrument, or agreement or as otherwise agreed by the required parties hereto or thereto, it being understood that from after the occurrence of the Agreement Effective Date, with effect from and after the Effective Date, each reference in the Loan Documents to the “Credit Agreement,” “thereunder,” “thereof” (and each reference in the Credit Agreement to “this Agreement,” “hereunder,” or “hereof”) or words of like import shall mean and be a reference to the Credit Agreement.

 

[Remainder of page intentionally left blank]

 

 

 

 

 

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.

 

BOYD GAMING CORPORATION,

a Nevada corporation

 

 

By:    /s/ Josh Hirsberg                                              

Name:     Josh Hirsberg     

Title:     Executive Vice President, Treasurer and

              Chief Financial Officer

 

 

 

 

GUARANTORS:

 

 

BELLE OF ORLEANS, L.L.C.,

a Louisiana limited liability company

 

 

By:     /s/ Josh Hirsberg                                              

Name:     Josh Hirsberg     

Title:     Chief Financial Officer,

              Senior Vice President and Treasurer

 

 

BLUE CHIP CASINO, LLC,

an Indiana limited liability company

 

 

By:          /s/ Josh Hirsberg                                         

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

BOYD ACQUISITION, LLC,

a Delaware limited liability company

 

 

By:          /s/ Josh Hirsberg                                         

Name:     Josh Hirsberg     

Title:     Senior Vice President and Treasurer

 

 

BOYD ACQUISITION I, LLC,

a Delaware limited liability company

 

 

By:           /s/ Josh Hirsberg                                        

Name:     Josh Hirsberg     

Title:     Senior Vice President and Treasurer

 

 

BOYD ACQUISITION II, LLC,

a Delaware limited liability company

 

 

By:          /s/ Josh Hirsberg                                         

Name:     Josh Hirsberg     

Title:     Senior Vice President and Treasurer

 

 

 

 

 

BOYD ATLANTIC CITY, INC.,

a New Jersey corporation

 

 

By:       /s/ Josh Hirsberg                                            

Name:     Josh Hirsberg     

Title:     Vice President and Treasurer

 

 

BOYD BILOXI, LLC,

a Mississippi limited liability company

 

 

By:       /s/ Josh Hirsberg                                            

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

BOYD LOUISIANA RACING, L.L.C.,

a Louisiana limited liability company

 

 

By:        /s/ Josh Hirsberg                                           

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

BOYD RACING, L.L.C.,

a Louisiana limited liability company

 

 

By:         /s/ Josh Hirsberg                                          

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

BOYD TUNICA, INC.,

a Mississippi corporation

 

 

By:          /s/ Josh Hirsberg                                         

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

 

 

 

CALIFORNIA HOTEL AND CASINO,

a Nevada corporation

 

 

By:          /s/ Josh Hirsberg                                         

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

CALIFORNIA HOTEL FINANCE CORPORATION,

a Nevada corporation

 

 

By:         /s/ Josh Hirsberg                                          

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

COAST CASINOS, INC.,

a Nevada corporation

 

 

By:         /s/ Josh Hirsberg                                          

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

COAST HOTELS AND CASINOS, INC.,

a Nevada corporation

 

 

By:             /s/ Josh Hirsberg                                      

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

DIAMOND JO, LLC,

a Delaware limited liability company

 

 

By:            /s/ Josh Hirsberg                                       

Name:     Josh Hirsberg     

Title:     Chief Financial Officer,

              Senior Vice President and Treasurer

 

 

 

 

 

DIAMOND JO WORTH, LLC,

a Delaware limited liability company

 

 

By:          /s/ Josh Hirsberg                                         

Name:     Josh Hirsberg     

Title:     Chief Financial Officer,

              Senior Vice President and Treasurer

 

KANSAS STAR CASINO, LLC,

a Kansas limited liability company

 

 

By:        /s/ Josh Hirsberg                                           

Name:     Josh Hirsberg     

Title:     Chief Financial Officer,

              Senior Vice President and Treasurer

 

 

M.S.W., INC.,

a Nevada corporation

 

 

By:          /s/ Josh Hirsberg                                         

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

PAR-A-DICE GAMING CORPORATION,

an Illinois corporation

 

 

By:             /s/ Josh Hirsberg                                      

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

PENINSULA GAMING, LLC,

a Delaware limited liability company

 

 

By:           /s/ Josh Hirsberg                                        

Name:     Josh Hirsberg     

Title:     Chief Financial Officer,

              Senior Vice President and Treasurer

 

 

RED RIVER ENTERTAINMENT OF SHREVEPORT, L.L.C.,

a Louisiana limited liability company

 

 

By:           /s/ Josh Hirsberg                                        

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

 

 

 

SAM-WILL, INC.,

a Nevada corporation

 

 

By:         /s/ Josh Hirsberg                                          

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

THE OLD EVANGELINE DOWNS, L.L.C.,

a Louisiana limited liability company

 

 

By:       /s/ Josh Hirsberg                                            

Name:     Josh Hirsberg     

Title:     Chief Financial Officer,

              Senior Vice President and Treasurer

 

 

TREASURE CHEST CASINO, L.L.C.,

a Louisiana limited liability company

 

 

By:             /s/ Josh Hirsberg                                      

Name:     Josh Hirsberg     

Title:     Treasurer

 

 

ALIANTE GAMING, LLC,

a Nevada limited liability company

 

By: ALST Casino Holdco LLC

its managing member

 

 

By:             /s/ Josh Hirsberg                                      

Name:     Josh Hirsberg     

Title:     Executive Vice President and Treasurer

 

 

ALST CASINO HOLDCO LLC,

a Delaware limited liability company

 

 

By:           /s/ Josh Hirsberg                                        

Name:     Josh Hirsberg     

Title:     Executive Vice President / Treasurer

 

 

 

 

 

NEVADA PALACE, LLC,

a Nevada limited liability company

 

 

By:           /s/ Josh Hirsberg                                        

Name:     Josh Hirsberg

Title:     Executive Vice President and Treasurer

 

 

THE CANNERY HOTEL AND CASINO, LLC,

a Nevada limited liability company

 

 

By:            /s/ Josh Hirsberg                                       

Name:     Josh Hirsberg     

Title:     Executive Vice President and Treasurer

 

 

 

 

 

 

 

 

 

Consented to and Acknowledged by:

 

BANK OF AMERICA, N.A.

as Administrative Agent, a Lender and L/C Issuer

 

By:       /s/ Brandon Bolio                                           

Name: Brandon Bolio

Title: Director

 

 

 

 

Consented to and Acknowledged by:

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

as a Lender and Swing Line Lender

 

By:        /s/ Donald Schubert                                           

Name:  DONALD SCHUBERT

Title:  MANAGING DIRECTOR

 

 

 

 

 

 

SCHEDULE I

 

COVENANT RELIEF PERIOD CONDITIONS

 

 

(a)     The Borrower shall not permit the sum of (i) the sum of (x) unrestricted cash and Cash Equivalents of Borrower and its Restricted Subsidiaries free and clear of all Liens other than Permitted Liens, plus (y) cash and Cash Equivalents of Borrower and its Restricted Subsidiaries that are restricted in favor of the Obligations (which may include cash and Cash Equivalents securing other Indebtedness secured by a Lien on the Collateral), plus (ii) the amount by which the Aggregate Revolving Commitments exceed the sum of (x) the Outstanding Amount of Revolving Loans, (y) the Outstanding Amount of Swing Line Loans and (z) the Outstanding Amount of L/C Obligations (the “Borrower’s Liquidity), at any time during the Initial Covenant Relief Period to be less than $250,000,000.

(b)     During the Initial Covenant Relief Period, the Borrower shall furnish to the Administrative Agent (which will promptly furnish such certificate to the Covenant Lenders) (commencing with the calendar month ending May 31, 2020 and ending with (i) the calendar month ending July 31, 2021 or (ii) if the Initial Covenant Relief Period terminates in accordance with clauses (ii) or (iii) of the definition thereof prior to June 30, 2021, the last calendar month ending before the Initial Covenant Relief Period Termination Date) a certificate of a Responsible Officer of the Borrower (each, a “Minimum Liquidity Certificate”) setting forth in reasonable detail the computations necessary (as determined in good faith by the Borrower) to determine whether the Borrower and the Restricted Subsidiaries are in compliance with clause (a) of this Schedule I as of the end of each such calendar month within five (5) Business Days after the last day of each such calendar month; provided that if during any week during such period the Borrower’s Liquidity is less than $400,000,000, the Borrower shall furnish to the Administrative Agent (which will promptly furnish such certificate to the Covenant Lenders) a Minimum Liquidity Certificate as of the Friday of such week (and each succeeding week until the Borrower’s Liquidity as certified in any Minimum Liquidity Certificate delivered pursuant to this clause (b) is greater than or equal to $400,000,000) no later than Wednesday of the following week.

 

(c)     During the Covenant Relief Period, the Borrower shall not incur, or permit any Restricted Subsidiary to incur, any Incremental Equivalent Debt, Incremental Term Loan Commitment, Increased Term Loan Commitment or Increased Revolving Commitment, in each case, in reliance on the Incremental Loan Amount, in an aggregate amount at any time outstanding in excess of the sum of (i) $650,000,000 plus (ii) in the case of any such Indebtedness that is secured by a junior lien or is unsecured, an additional amount equal to the sum of (A) $350,000,000 plus (B) any additional amount if, after giving effect thereto, the First Lien Leverage Ratio would not exceed 2.70 to 1.00 on a Pro Forma Basis (the “Incremental Threshold”) (with the Incremental Loan Amount to be determined as if any Incremental Equivalent Debt is secured by Liens on a pari passu basis with the Liens securing the Secured Obligations even if such Incremental Equivalent Debt is unsecured or secured on a junior basis to the Liens securing the Secured Obligations and without netting any cash proceeds from the incurrence of such Increased Revolving Commitment, Increased Term Loan Commitment, Incremental Term Facility or Incremental Equivalent Debt and calculated as though any such Increased Revolving Commitment, Increased Term Loan Commitment, Incremental Term Facility or Incremental Equivalent Debt were fully drawn). In connection with any incurrence of Indebtedness in reliance on the foregoing, the Borrower may elect which of subsections (i), (ii)(A) and/or (ii)(B) above it has opted to rely upon to incur such Indebtedness and Borrower shall notify Administrative Agent of such election. For the avoidance of doubt, Section 1.08(d) of the Credit Agreement shall apply with respect to this paragraph.

 

 

 

 

(d)     During the Covenant Relief Period, the Borrower shall, and shall cause its Restricted Subsidiaries to prepay Loans pursuant to Section 2.05(e) of the Credit Agreement if the amount of Net Cash Proceeds the Borrower is required to use to prepay Loans pursuant to such subsection (e) is equal to or greater than $25,000,000 (rather than $50,000,000) (and at such time, the Borrower shall prepay the Loans using all such Net Cash Proceeds).

 

(e)     The Borrower shall not incur, or permit any Restricted Subsidiary to incur, Liens under Section 7.01(v) of the Credit Agreement securing obligations in an amount in excess of $25,000,000 at any one time outstanding during the Covenant Relief Period.

 

(f)     The Borrower shall not make, or permit any Restricted Subsidiary to make, any Permitted Acquisition under Section 7.02(i) during the Initial Covenant Relief Period.

 

(g)     The Borrower shall not make, or permit any Restricted Subsidiary to make, any Investments pursuant to Sections 7.02(j)(i)(y), 7.02(j)(i)(z) or 7.02(k) of the Credit Agreement during the Covenant Relief Period.

 

(h)     The Borrower shall not incur, or permit any Restricted Subsidiary to incur any Indebtedness under Section 7.03(g) of the Credit Agreement during the Covenant Relief Period.

 

(i)     The Borrower shall not incur, or permit any Restricted Subsidiary to incur any Indebtedness under Section 7.03(k) of the Credit Agreement in excess of $50,000,000 in the aggregate at any one time outstanding during the Covenant Relief Period.

 

(j)     The Borrower shall not make, or permit any Restricted Subsidiary to make, Dispositions pursuant to Section 7.05(l) of the Credit Agreement of property having a fair market value in excess $5,000,000 in any single transaction or series of related transactions during the Covenant Relief Period.

 

(k)     The Borrower shall not make, and shall not permit any Restricted Subsidiary to make, any Restricted Payments pursuant to Sections 7.06(f) and 7.06(g) of the Credit Agreement during the Covenant Relief Period.

 

(l)     The Borrower shall not make, and shall not permit any Restricted Subsidiary to make, any Junior Prepayments pursuant to Sections 7.12(h) and 7.12(i) of the Credit Agreement during the Covenant Relief Period.

 

 

 

 

 

 

 

 

ANNEX I

 

LENDER AGREEMENT – CONSENTING LENDERS

 

Reference is hereby made to Amendment No. 3, dated as of May 8, 2020 (the “Amendment”; capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Amendment), by and among Boyd Gaming Corporation, a Nevada corporation, the Guarantors, Bank of America, N.A., as Administrative Agent under the Credit Agreement and the Lenders party thereto. This Consenting Lender Agreement forms a part of the Amendment, the signature page hereto constitutes a signature page to the Amendment, and the undersigned, by its signature hereto (and any permitted successor, participant or assignee thereof), constitutes a party to the Amendment as if such Person executed and delivered a counterpart thereof.

 

By its signature below, the undersigned hereby (a) consents and agrees to the terms and conditions of the Amendment, (b) authorizes Administrative Agent to execute the Amendment and to execute any other amendments, modifications, supplements, instruments or agreements entered into in accordance with Section 3 of Article I of the Amendment, (c) represents that it is a Lender under the Existing Credit Agreement and (d) agrees that it shall be a party to the Amendment.

 

The undersigned hereby agrees that this Consenting Lender Agreement shall be binding upon the undersigned and each of its successors and any participants and assigns of its Loans or Commitments (it being understood that any such participation or assignment shall be made in accordance with Section 10.07 of the Credit Agreement), and may not be revoked or withdrawn. The undersigned agrees that it shall notify any potential successor or any participant or assignee of any of its Loans or Commitments of the effectiveness of this Consenting Lender Agreement prior to consummating any such transfer, assignment or participation. This Consenting Lender Agreement shall be irrevocable and remain in full force and effect until the Agreement Effective Date shall have occurred.

 

[Remainder of this page intentionally left blank]

 

 

 

 

 

I. Election (Check Any That Apply):

 

	
			A.REVOLVING LENDER:

			By checking the box to the right, the undersigned Lender confirms that it is a Revolving Lender.

				
			□

			
	
			B.TERM A LENDER: 

			By checking the box to the right, the undersigned Lender confirms that it is a Term A Lender.

				
			□

			

 

 

 

 

 

 

 

 

II. Signature:

 

 

 

Name of Institution: ____________________________________________________

 

 

	
			By:

				                                                  
	 	
			Name:

			
	 	
			Title:

			
	
			For any institution requiring a second signature line:

			
	
			By:

				                                                  
	 	
			Name:

			
	 	
			Title:EX-4.1

 Exhibit 4.1 

THE SECURITIES REPRESENTED BY THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, INCLUDING PURSUANT TO RULE 144 (OR, IN THE CASE OF THIS NOTE, RULE 144A) UNDER THE SECURITIES ACT OR
PURSUANT TO A PRIVATE SALE EFFECTED UNDER SECTION 4(A)(7) OF THE SECURITIES ACT OR APPLICABLE FORMAL OR INFORMAL SEC INTERPRETATION OR GUIDANCE, SUCH AS A SO-CALLED “4[a](1) AND A HALF” SALE.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN, FINANCING OR INDEBTEDNESS ARRANGEMENT SECURED BY THE SECURITIES. 

FORM OF SENIOR CONVERTIBLE NOTE 
  

			
	Issuance Date: [____]	  	Principal: U.S. $[_____]

 FOR VALUE RECEIVED, Intersect ENT, Inc., a Delaware corporation (the “Company”),
hereby, promises to pay to [___________], or its registered assigns (the “Holder”), the principal amount of [_______] ($[_____]) pursuant to, and in accordance with, the terms of that certain Facility Agreement, dated as of
May 11, 2020, by and among the Company, the Lenders party thereto, the Agent and the other parties thereto (together with all exhibits and schedules thereto and as may be amended, restated, modified and supplemented from time to time, the
“Facility Agreement”). The Company hereby promises to pay accrued and unpaid Interest (as defined below) and premium, if any, on the Principal on the dates, at the rates and in the manner provided for in the Facility Agreement
(including upon a Major Transaction Redemption, an Optional Redemption, a Major Transaction Conversion or any other conversion of this Note). The Company hereby promises to pay any Make Whole Amount that is due on the Principal in accordance with
the Facility Agreement (including upon a Major Transaction Redemption or an Optional Redemption). Pursuant to Section 2(c)(iv) hereof, the Principal amount of this Note may be less than the amount indicated
above. 
 This Senior Convertible Note (including all Senior Convertible Notes issued in exchange, transfer or replacement hereof, and as
any of the foregoing may be amended, restated, supplemented or otherwise modified from time to time, this “Note”) is one of the Senior Convertible Notes issued pursuant to the Facility Agreement (collectively, including all Senior
Convertible Notes issued in exchange, transfer or replacement thereof, and as any of the foregoing may be amended, restated, supplemented or otherwise modified from time to time, the “Notes”). All capitalized terms used and not
otherwise defined herein shall have the respective meanings set forth in the Facility Agreement. 
  

 This Note evidences a Loan issued under the Facility Agreement. Accordingly, any payment of
the Principal of this Note (it being agreed that the settlement of the Company’s obligations by delivery of Conversion Shares (as defined below) or, if applicable, Preferred Conversion Shares (as defined below) upon conversion of any Principal
of this Note shall be deemed to constitute payment of such Principal) or any payment of Interest hereon constitutes a payment of the principal amount of such Loan or interest thereon, as the case may be. 

Except as expressly set forth herein or in the Facility Agreement, the Company has no right, but under certain circumstances may have an
obligation, to make payments of Principal prior to the due date for such payments set forth in the Facility Agreement. The Facility Agreement contains provisions for acceleration of the maturity of the unpaid Principal upon the happening of certain
events. 
 1. Definitions. 

(a) Certain Defined Terms. For purposes of this Note, the following terms shall have the following meanings: 

(i) “150% Optional Redemption” means an Optional Redemption as to which only the 150% Optional Redemption Pricing Condition
has been satisfied. 
 (ii) “150% Optional Redemption Period” means the period commencing on the two-year anniversary of the Issuance Date and ending on the date that is thirty (30) days prior to the Maturity Date. 

(iii) “200% Optional Redemption” means any Optional Redemption as to which the 200% Optional Redemption Pricing Condition has
been satisfied. 
 (iv) “200% Optional Redemption Period” means the period commencing on the three-year anniversary of the
Issuance Date and ending on the date that is thirty (30) days prior to the Maturity Date. 
 (v) “Asset Sale” means a
transaction described in clause (B) of the definition of “Major Transaction” in connection with which the Company distributes assets to stockholders. 

(vi) “Bloomberg” means Bloomberg Financial Markets or an equivalent, reliable reporting service designated by the Company and
subject to the consent of the Required Note Holders (such consent not to be unreasonably withheld, conditioned or delayed). 
 (vii)
“Capital Stock” means, for any entity, any and all capital stock, shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) stock issued by that entity, but
for the avoidance of doubt, excluding any debt securities convertible into such stock. 

  
 - 2 - 

 (viii) “Closing Price” means, for any security as of any Trading Day, the
closing (last sale) price per share for such security on its Principal Market on such Trading Day (at the end of regular trading hours on such Principal Market), as reported by Bloomberg, or if no closing price per share is reported for such
security by Bloomberg, the average of the last bid and last ask price (or if more than one in either case, the average of the average last bid and average last ask prices) per share for such security on such Trading Day as reported in the composite
transactions for the principal U.S. national or regional securities exchange on which the Common Stock is traded. If such security is not listed for trading on a U.S. national or regional securities exchange on the relevant Trading Day, then the
Closing Price for such security will be the average of the mid-point of the last bid and last ask prices per share for such security in the
over-the-counter market on the relevant Trading Day as reported by OTC Markets Group or similar organization. If the Closing Price cannot be calculated for a security on
such date on any of the foregoing bases, the Closing Price of such security on such date shall be the fair market value per share of such security as mutually determined in good faith by the Board of Directors of the Company and the Required Note
Holders. 
 (ix) “Common Stock” means the common stock, par value $0.001 per share, of the Company, subject to
Section 3(e). 
 (x) “Conversion Amount” means the Principal to be converted with respect to
which this determination is being made. 
 (xi) “Conversion Price” means $15.54, subject to adjustment as provided herein.

 (xii) “Delisting Event” means any of the following: (A) the Common Stock is not listed on the Principal Market,
(B) trading in the Common Stock on the Principal Market is suspended, or (C) the Company has received a notice of delisting due to noncompliance with any material rule or regulation applicable to the trading or listing of the Common Stock
on the Principal Market and such noncompliance has not been cured as set forth in a notice from the Principal Market. 
 (xiii)
“Dollars” or “$” means United States Dollars. 
 (xiv) “Eligible Market” means the New
York Stock Exchange, Inc., the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market (or, in each case, any successor thereto). 

(xv) “Enterprise Value” means (A) the product of (x) the number of issued and outstanding shares of Common Stock on
the date the Company delivers (or by which it is obligated to deliver) the Major Transaction/Organic Change Notice (as defined in Section 3(c)) multiplied by (y) the Closing Price of the Common Stock on such date, plus
(B) the amount of the Company’s and its consolidated subsidiaries’ debt as shown on the latest consolidated financial statements of the Company and its subsidiaries filed with the SEC (the “Current Financial
Statements”), plus (C) if applicable, the aggregate liquidation preference of each class of the Company’s preferred shares, if any, less (D) the amount of cash and cash equivalents of the Company and its consolidated
subsidiaries, as shown on the Current Financial Statements. 

  
 - 3 - 

 (xvi) “Fair Market Value” means (i) with respect to any security that
is listed, quoted or traded on an Eligible Market, as of any date of determination, the Closing Price of such security on such date, and (ii) with respect to any other security or asset, the fair market value as mutually determined in good
faith by the Board of Directors of the Company and Required Note Holders, subject to the dispute resolution provisions set forth in Section 2(c)(iii) below. 

(xvii) “Freely Tradeable Preferred Shares” means shares of Series DF-1 Preferred
Stock which, at the time of issuance thereof, (a)(i) are duly authorized, validly issued, fully paid and non-assessable, (ii) are eligible for resale by the Holder, without limitation or restriction
(including any volume limitation or current public information requirement) under state or Federal securities laws, pursuant to Rule 144 under the Securities Act, and (iii) do not bear, and are not subject to, any restrictive legend, and
(b) are convertible into shares of Common Stock which, at the time of issuance thereof upon conversion of such shares of Series DF-1 Preferred Stock, will be Freely Tradeable Shares. 

(xviii) “Freely Tradeable Shares” means Shares which, at the time of issuance thereof, (i) are duly authorized, validly
issued, fully paid and non-assessable, (ii) are eligible for resale by the Holder, without limitation or restriction (including any volume limitation or current public information requirement) under state
or federal securities laws, pursuant to Rule 144 under the Securities Act or are the subject of an effective registration statement under the Securities Act covering the resale thereof, as provided for in the Registration Rights Agreement, and
(iii) do not bear, and are not subject to, any restrictive legend, stop transfer or similar restriction (assuming in the case of clauses (ii) and (iii), that such holder is not at the time of such conversion, and has not during the three
(3) months immediately prior thereto been, an Affiliate of the Company). 
 (xix) “Interest” means any interest
(including any default interest) accrued on the Principal pursuant to the terms of this Note and the Facility Agreement. 
 (xx)
“Issuance Date” means [____], regardless of any exchange or replacement hereof. 
 (xxi) “Major
Transaction” means any of the following events: 
 (A) a consolidation, merger, exchange of shares, tender or exchange offer,
recapitalization, reorganization, business combination, purchase or sale of shares or other similar event, (1) following which the holders of Common Stock, or of the voting power of voting stock immediately preceding such consolidation, merger,
exchange, recapitalization, reorganization, business combination, sale of shares or other event either (a) no longer hold a majority of the outstanding shares of Common Stock or of the shares or voting power of voting stock of the Company, or
(b) no longer have the ability to elect a majority of the Board of Directors of the Company, or (2) as a result of which the Common Stock shall be changed into (or the holders of the shares of Common Stock become entitled to receive) the
same or a different number of shares of the same or another class or classes of stock or securities of the Company or of another entity (other than to the extent the shares of Common Stock are changed or exchanged solely to reflect a change in the
Company’s jurisdiction of incorporation); 

  
 - 4 - 

 (B) the sale or transfer (including, for the avoidance of doubt, by way of an exclusive
license that is substantially equivalent to a sale), in one transaction or a series of related transactions of (i) all or substantially all of the consolidated assets of the Company (including, for the avoidance of doubt, a sale of all or
substantially all of the assets of the Company and its Subsidiaries, taken as a whole) to any Person other than one of the Company’s wholly-owned Subsidiaries or (ii) assets of the Company (including, for the avoidance of doubt, assets of
the Company and its Subsidiaries, taken as a whole) to any Person other than one of the Company’s wholly-owned Subsidiaries for a purchase price equal to more than 50% of the Enterprise Value of the Company; 

(C) the stockholders of the Company approve any plan or proposal for the liquidation, dissolution or
winding-up of the Company; 
 (D) a “person” or “group” within the meaning of
Section 13(d) of the Exchange Act, other than the Company, files any schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect “beneficial owner” as defined in Rule 13d-3 under the Exchange Act of the Company’s Capital Stock representing beneficial ownership of more than 50% of the outstanding shares of Common Stock or the shares or voting power of the Company’s
voting stock; 
 (E) the Common Stock ceases to be listed on any Eligible Market on which it is then listed and is not immediately re-listed on another Eligible Market; or 
 (F) the Common Stock ceases to be registered under
Section 12 of the Exchange Act. 
 (xxii) “Major Transaction Effective Date” means, with respect to any Major
Transaction, the date on which such Major Transaction occurs or becomes effective. 
 (xxiii) “Major Transaction Redemption
Price” means the Principal amount of this Note to be redeemed pursuant to a Major Transaction Redemption. 
 (xxiv) “Market
Disruption Event” means with respect to any Trading Day, (A) a failure by the Principal Market for the Common Stock to open for trading during its entire regular trading session, (B) the occurrence or existence prior to 1:00 p.m.,
New York City time, on such Trading Day, for more than a one half-hour period in the aggregate during regular trading hours, of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the
relevant securities exchange or otherwise) in the Common Stock or in any options, contracts or future contracts relating to the Common Stock, or (C) a failure of any sales of the Common Stock to occur on the Principal Market on such Trading
Day.  
 (xxv) “Optional Redemption Cap” means, in the case of a 150% Optional Redemption, the Holder’s Pro
Rata Share of $32,500,000 and in the case of a 200% Optional Redemption, the original Principal amount of this Note. 

  
 - 5 - 

 (xxvi) “Optional Redemption Pricing Condition” means either the 150%
Optional Redemption Pricing Condition or the 200% Optional Redemption Pricing Condition, as applicable. 
 (xxvii) “Optional
Redemption Price” means, the Principal amount of this Note to be redeemed pursuant to an Optional Redemption. 
 (xxviii)
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest enterprise value as
of the date of consummation of a Major Transaction. 
 (xxix) “Pending Redemption Period” means the period commencing on
the date an Optional Redemption Notice is delivered hereunder and earlier of the date (which shall not be prior to the applicable Optional Redemption Date) the Optional Redemption Price payable to the Holder thereunder is paid in full and the date
the Pending Redemption Period is terminated by the Holder in accordance with Section 7(d) or in accordance with Section 7(c). 

(xxx) “Preferred Stock Conversion” means a Redemption Period Conversion pursuant to a Conversion Notice that provides for the
conversion of principal into Preferred Conversion Shares (or a combination of Conversion Shares and Preferred Conversion Shares). 
 (xxxi)
“Principal” means the outstanding principal amount of this Note as of any date of determination. 
 (xxxii)
“Principal Market” means, with respect to the Common Stock, the principal Eligible Market on which the Common Stock is listed, and with respect to any other security, the principal securities exchange or trading market for such
security. 
 (xxxiii) “Redemption Period Conversion” means a conversion of principal in accordance with
Section 2 pursuant to a Conversion Notice delivered during the Pending Redemption Period. 
 (xxxiv)
“Registration Rights Agreement” means that certain Registration Rights Agreement dated as of May 11, 2020 among the Company and the Lenders party to the Facility Agreement, as the same may be amended from time to time. 

(xxxv) “Required Note Holders” means, as of any date of determination, Holders of Notes having an aggregate principal amount
of more than 50% of the outstanding principal amount of all Notes as of such date. 
 (xxxvi) “Series
DF-1 Certificate of Designation” means the Certificate of Designation of Preferences, Rights and Limitations of Series DF-1 Preferred Stock, in the form
attached as Exhibit G to the Facility Agreement. 

  
 - 6 - 

 (xxxvii) “Series DF-1 Preferred
Stock” means a series of the Company’s preferred stock designated as “Series DF-1 Preferred Stock” having the rights, privileges and benefits, and subject to the limitations, set forth
in the Series DF-1 Certificate of Designation. 
 (xxxviii) “Share Delivery Date”
means, in respect of the issuance and delivery of Conversion Shares, the Conversion Shares Delivery Date, and in respect of the issuance and delivery of Preferred Conversion Shares, the Preferred Share Delivery Date. 

(xxxix) “Shares” means shares of Common Stock. 

(xl) “Standard Settlement Period” means the standard settlement period for equity trades effected by U.S. broker-dealers,
expressed in a number of Trading Days, as in effect on the date the applicable Conversion Notice (as defined below) is received or deemed received by the Company. 

(xli) “Stock Event” means a stock split, stock combination, reclassification, payment of stock dividend, recapitalization or
other similar transaction of such character that the outstanding shares of Common Stock shall be changed into or become exchangeable for a larger or small number of shares. 

(xlii) “Successor Entity” means any Person purchasing the Company’s assets sold in a Major Transaction or a majority of
the Company’s Capital Stock in a Major Transaction, or any successor entity resulting from a Major Transaction, or if the Note is to be convertible for shares of Capital Stock of any such Person’s Parent Entity, its Parent Entity. 

(xliii) “Successor Major Transaction” means either a Takeout Major Transaction or an Asset Sale. 

(xliv) “Takeout Major Transaction” means a “Major Transaction” in which the outstanding shares of Common Stock of
the Company are converted into the right to receive cash, securities of another entity and/or other assets. 
 (xlv) “Trading
Day” means, in respect of any security, any day on which trading of such security occurs on its Principal Market; provided, that, for purposes of the satisfaction of the Optional Redemption Pricing Condition (as defined in
Section 7(a)), Trading Day shall not include any Trading Day on which there is a Market Disruption Event. 

(xlvi) “Volume Weighted Average Price” means, as of any Trading Day, (A) the volume weighted average sale price per
share of the Common Stock on the Principal Market, as reported by Bloomberg, or (B) if no volume weighted average sale price is reported for the Common Stock, then the Closing Price on such Trading Day, or, if no Closing Price is reported for
the Common Stock by Bloomberg, the average of the last bid and last ask price (or if more than one in either case, the average of the average last bid and average last ask prices) of the Common Stock on such Trading Day as reported in the composite
transactions for the principal U.S. national or regional securities exchange on which the Common Stock is traded. If the Common Stock is not listed for trading on a U.S. national or regional securities exchange on the relevant Trading Day, then the
Volume Weighted Average Price will be the average of the 

  
 - 7 - 

 
mid-point of the last bid and last ask prices of the Common Stock in the
over-the-counter market on the relevant Trading Day as reported by OTC Markets Group or similar organization. If the Volume Weighted Average Price cannot be calculated
for the Common Stock on such date in the manner provided above, the Volume Weighted Average Price shall be the fair market value per share of Common Stock as mutually determined in good faith by the Board of Directors of the Company and the Holders
holding a majority of the aggregate outstanding Principal amount of the Notes being converted for which the calculation of the Volume Weighted Average Price is required. The Volume Weighted Average Price shall be determined without regard to
after-hours trading or any other trading outside of the regular trading hours. In the event that a Stock Event is consummated during any period of consecutive Trading Days on which Volume Weighted Average Prices are being calculated, the Volume
Weighted Average Price for each Trading Day during such period prior to the effectiveness of such Stock Event shall be appropriately adjusted to reflect such Stock Event. 

(xlvii) “Withholding Date” means any date on which the Company withholds, or determines that it is required to withhold, any
Taxes as a result of any conversion of this Note or the issuance of any Shares thereupon. For the avoidance of doubt, such Taxes shall not include Taxes with respect to any interest payable as a result of such conversion or issuance. 

2. Conversion Rights. This Note may be converted into Shares and/or shares of Series DF-1
Preferred Stock, on the terms and conditions set forth in this Section 2. 
 (a) Conversion at Option of the
Holder. On or after the date hereof, the Holder shall be entitled to convert all or any part of the Principal into fully paid and nonassessable Shares (the “Conversion Shares”) and, at any time during a Pending Redemption
Period, the Holder shall be entitled to convert all or any part of the Principal into Conversion Shares and/or fully paid and nonassessable shares of Series DF-1 Preferred Stock (“Preferred Conversion
Shares”). The Company shall not issue any fraction of a Share upon any conversion; provided that the Company shall issue fractional shares of Series DF-1 Preferred Stock to the extent that a
conversion would result in the issuance of a fractional share of Series DF-1 Preferred Stock. If the issuance would result in the issuance of a fraction of a Share, then the Company shall round such fraction
of a Share up or down to the nearest whole Share (with 0.5 rounded up), and no cash payment will be made in lieu thereof where rounded down. 

(b) Conversion Rate. Subject to Section 2(c) (and, in the case of Major Transaction Conversions and
Redemption Period Conversions, the Holder’s right to receive Additional Conversion Shares as provided in Sections 3(a) and 7(e), respectively) in the number of Conversion Shares issuable upon a conversion of any portion of this
Note pursuant to Section 2, shall be determined according to the following formula (the “Conversion Rate”): 
  

	
	        Conversion Amount        
	Conversion Price

 The number of Preferred Conversion Shares issuable upon a Preferred Stock Conversion shall be set forth in the applicable
Conversion Notice and shall be determined by dividing (i) the number of Conversion Shares (including Base Conversion Shares and Additional Conversion Shares) that the Holder is otherwise entitled to receive as provided in
Section 2(a) (without regard to the 

  
 - 8 - 

 
4.985% Cap) and determines to accept in the form of Series DF-1 Preferred Stock, as set forth in the applicable Conversion Notice, divided by (ii) 1,000,
subject to proportionate adjustment to reflect any adjustment to the number of Shares into which the Preferred Conversion Shares are convertible pursuant to the Series DF-1 Certificate of Designation as of the
Conversion Date. 
 (c) Mechanics of Conversion. The conversion of this Note shall be conducted in the following manner: 

(i) Holder’s Delivery Requirements. To convert a Conversion Amount into Conversion Shares and/or, to the extent provided in
Section 7, Preferred Conversion Shares, on any date (the “Conversion Date”), the Holder shall (A) transmit by email (or otherwise deliver), for receipt on or prior to 5:00 p.m. New York City time on
such date, an unsigned copy of a written conversion notice in the form attached hereto as Exhibit A (the “Conversion Notice”) to the offices of the Company at 1555 Adams Drive, Menlo Park, CA 94025, Attention: David Lehman, Email:
dlehman@intersectent.com, or such other address or email address as the Company may designate in writing, and (B) if required by Section 2(c)(vi), surrender to a common carrier for delivery to the Company, no later
than three (3) Business Days after the Conversion Date, the original Note being converted (or an indemnification undertaking in customary form with respect to this Note in the case of its loss, theft or destruction). If the Conversion Notice
relates to a Redemption Period Conversion, the Conversion Notice shall specify the number of Conversion Shares and/or Preferred Conversion Shares into which the applicable Conversion Amount is to be converted. 

(ii) Company’s Response. Upon receipt or deemed receipt by the Company of an unsigned copy of a Conversion Notice,
the Company (I) shall promptly send, via electronic mail, a confirmation of receipt of such Conversion Notice to the Holder and the Company’s designated transfer agent (the “Transfer Agent”), which confirmation shall
constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein, and (II) on or before the second (2nd) Trading Day (or, if earlier, the
last day of the Standard Settlement Period), or in the case of clause (B), on or before the third (3rd) Trading Day, following the Conversion Date (as applicable the “Conversion Share
Delivery Date”) (A) provided that the Holder is eligible to receive such Conversion Shares through The Depository Trust Company (“DTC”) (which shall include any time at which any of the Unrestricted Conditions (as defined
below) is satisfied), credit such aggregate number of Conversion Shares to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian (DWAC) system, or
(B) if the foregoing shall not apply, issue and deliver to the address as specified in the Conversion Notice, a stock certificate, registered in the name of the Holder or its designee, for the number of Conversion Shares to which the Holder
shall be entitled. In the case of a Conversion Notice in respect of a Preferred Stock Conversion, on or before the second (2nd) Trading Day (or, if earlier, the last day of the Standard Settlement
Period) following the Conversion Date (the “Preferred Conversion Share Delivery Date”), the Company shall issue and deliver to the address as specified in the Conversion Notice, a stock certificate, registered in the name of the
Holder or its designee, for the number of Preferred Conversion Shares to which the Holder shall be entitled; provided, that, for purposes of this sentence, the Company shall be deemed to have satisfied such requirement by the Company’s initial
email delivery to the Holder, on or before the Preferred Conversion Share Delivery Date, of a .pdf copy of the front and back of each such certificate, followed promptly, and in no event later 

  
 - 9 - 

 
than the fourth (4th) Trading Day following the receipt or deemed receipt by the Company of the Conversion Notice, by delivery to the Holder
of the original stock certificate(s). The Conversion Shares will be free-trading, and freely transferable, and will not contain a legend (or be subject to stop transfer or similar instructions) restricting the resale or transferability thereof if
any of the Unrestricted Conditions is met. 
 (iii) Dispute Resolution. In the case of a dispute as to the determination of the
Conversion Price, Major Transaction Redemption Price, Successor Major Transaction Consideration, Major Transaction Company Shares, the Major Transaction Conversion Amount (including any determination as to Fair Market Value), the Optional Redemption
Price, the Redemption Period Conversion Shares or the arithmetic calculation of the Conversion Rate, the Company shall issue, or instruct the Transfer Agent to issue, as applicable, to the Holder the number of Conversion Shares (and/or Preferred
Conversion Shares, as the case may be) that is not disputed and shall transmit an explanation of the disputed determinations or arithmetic calculations to the Holder via email within two (2) Business Days of receipt or deemed receipt of the
Holder’s Conversion Notice or other date of determination. If the Holder and the Company are unable to agree upon the determination of the Conversion Price, Major Transaction Redemption Price, Successor Major Transaction Consideration, Major
Transaction Company Shares, Major Transaction Conversion Amount, the Optional Redemption Price, the Redemption Period Conversion Shares or arithmetic calculation of the Conversion Rate within one (1) Business Day of such disputed determination
or arithmetic calculation being transmitted to the Holder, then the Company shall promptly (and in any event within two (2) Business Days) submit via email (A) the disputed determination of the Conversion Price, Major Transaction
Redemption Price, Successor Major Transaction Consideration, Major Transaction Conversion Amount, the Optional Redemption Price, the Redemption Period Conversion Shares to an independent, reputable investment banking firm selected by the Company and
subject to the approval of the Required Note Holders (such consent not to be unreasonably withheld, conditioned or delayed), or (B) the disputed arithmetic calculation of the Conversion Rate to an independent registered public accounting firm
selected by the Company and, if not the Company’s auditors, subject to the approval of the Required Note Holders, as the case may be. The Company shall direct the investment bank or the accounting firm, as the case may be, to perform the
determinations or calculations and notify the Company and the Holder of the results no later than two (2) Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accounting firm’s
determination or calculation, as the case may be, shall be binding upon all parties absent manifest error. Notwithstanding anything herein to the contrary, any such final determination in respect of a dispute in connection with a Major Transaction
in which the Company is not the surviving parent entity, shall be made prior to the occurrence of such Major Transaction. Neither the Holder nor the Company shall have the right to dispute any determination pursuant to the provisions of this
Section 2(c)(iii) unless such party notifies the other party of such dispute in writing no later than two (2) Business Days after the other party notifies the Holder or the Company, as applicable, in
writing of such determination. 
 (iv) Record Holder. The Conversion Shares and/or Preferred Conversion Shares issuable upon a
conversion of this Note shall be deemed to have been issued to the Person or Persons entitled to receive such Conversion Shares or Preferred Conversion Shares, as applicable, and such Person or Persons shall be treated for all purposes as the legal
and record holder or holders of such Conversion Shares or Preferred Conversion Shares, as applicable, entitled to all rights of a holder thereof (including, in the case of Preferred Conversion Shares, conversion rights), upon delivery by the Holder
of the Conversion Notice. 

  
 - 10 - 

 (v) Company’s Failure to Timely Convert. 

(A) Cash Damages. If by the Share Delivery Date, the Company shall fail to issue and deliver a certificate to the Holder for, or, if as
required by Section 2(c)(ii) hereof the Transfer Agent shall fail to credit the Holder’s or its designee’s balance account with DTC with, the applicable number of Conversion Shares and Preferred Conversion Shares
(in each case, free of any restrictive legend, provided, in the case of conversion other than a Redemption Period Conversion, that any Unrestricted Condition is satisfied), then, in addition to all other available remedies that the Holder may pursue
hereunder and under the Facility Agreement, the Company shall pay additional damages to the Holder, in cash, for each 30 day period after the Share Delivery Date such conversion is not timely effected in an amount equal to (prorated for any partial
period) one percent (1.0%) of the product of (I) the number of Conversion Shares not issued and delivered to the Holder (or, in the case of a failure to timely issue and deliver Preferred Conversion Shares, the number of Shares issuable upon
conversion of the Preferred Conversion Shares) not issued and delivered to the Holder (in each case, free of any restrictive legend, provided, in the case of a conversion other than a Redemption Period Conversion, that any Unrestricted Condition is
satisfied) or its designee on or prior to the Share Delivery Date and to which the Holder is entitled and (II) the Volume Weighted Average Price of a share of Common Stock on the Share Delivery Date; provided that the Holder shall have no right
to any such additional damages hereunder to the extent the failure of the Company to deliver such Conversion Shares is caused by the Holder’s failure to provide complete information required to be provided by the Holder to the Company hereunder
or the inaccuracy of any such information; provided, further, that the Company shall notify a Holder as promptly as possible after the Company becomes aware of the fact that information provided by such Holder to the Company is inaccurate or
incomplete. Alternatively, in lieu of the foregoing additional damages, subject to Section 2(c)(iii), at the written election of the Holder made in the Holder’s sole discretion, if, on or after the applicable
Conversion Date, the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Conversion Shares (or, in the case of a failure to timely issue and deliver Preferred
Conversion Shares, Shares issuable upon conversion of the Preferred Conversion Shares not issued and delivered to the Holder) that such Holder anticipated receiving from the Company (such purchased shares,
“Buy-In Shares”), the Company shall (I) be obligated to promptly pay to the Holder (in addition to all other available remedies that the Holder may otherwise have), 105% of the amount by
which (A) the Holder’s total purchase price (including brokerage commissions, if any) for such Buy-In Shares exceeds (B) the net proceeds received by the Holder from the sale of a number of
shares equal to up to the number of Conversion Shares (or, in the case of a failure to timely issue and deliver Preferred Conversion Shares, the number of Shares issuable upon conversion of the Preferred Conversion Shares) such Holder was entitled
to receive but had not received on the Share Delivery Date and (II) at the option of the Holder, by notice to the Company made via email prior to receipt by the Holder of the Conversion Shares, either reinstate the portion of this Note and
equivalent number of Conversion Shares and/or Preferred Conversion Shares, as applicable, for which such conversion was not honored or deliver to the Holder the number of Shares that would have been issued had the Company timely complied with its
conversion and delivery obligations hereunder; provided that the Holder shall have no right to any such payment under clause (A) hereof to the 

  
 - 11 - 

 
extent the failure of the Company to deliver such Conversion Shares is caused by the Holder’s failure to provide complete information required to be provided by the Holder to the Company
hereunder or the inaccuracy of such information; provided, further, that the Company shall notify a Holder as promptly as possible after the Company becomes aware of the fact that information provided by such Holder to the Company is inaccurate or
incomplete. If the Company fails to pay the additional damages set forth in this Section 2(c)(v)(A) within five (5) Business Days of the date incurred, then the Holder entitled to such payments shall have the right at
any time, so long as the Company continues to fail to make such payments, to require the Company, upon written notice, to immediately issue, in lieu of such cash damages, the number of Shares (in the case of a failure relating to Conversion Shares)
or shares of Series DF-1 Preferred Stock (in the case of a failure relating to Preferred Conversion Shares) equal to the quotient of (X) the aggregate amount of the damages payments described herein
divided by (Y) the Conversion Price applicable to the conversion to which the additional damages relate. Nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver Conversion Shares upon conversion of this Note as required pursuant to the terms hereof. 

(B) Void Conversion Notice. If for any reason the Holder has not received all of the Conversion Shares and/or all of the Preferred
Conversion Shares, as applicable, prior to the tenth (10th) Business Day after the Share Delivery Date with respect to a conversion of this Note (a “Conversion Failure”), then the Holder, upon written notice to the Company by
facsimile or electronic mail (a “Void Conversion Notice”), may void its Conversion Notice with respect to, and retain or have returned, as the case may be, any portion of this Note that has not been converted pursuant to the
Holder’s Conversion Notice; provided, that the voiding of the Holder’s Conversion Notice shall not affect the Company’s obligations to make any payments that have accrued prior to the date of such Void Conversion Notice pursuant to
Section 2(c)(v)(A). 
 (C) Event of Default. A Conversion Failure shall constitute an Event of Default
under the Facility Agreement and entitle the Lenders to all payments and remedies provided under the Facility Agreement upon the occurrence of an Event of Default. 

(vi) Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion or redemption of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless all of the Principal is being converted or redeemed. The Holder and the Company shall maintain records showing the Principal converted or
redeemed and the dates of such conversions or redemptions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon any such partial conversion or redemption.
Notwithstanding the foregoing, if this Note is converted or redeemed as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Company, whereupon the Company will forthwith issue and deliver
upon the order of the Holder a new Note of like tenor, registered as the Holder may request, representing in the aggregate the remaining Principal represented by this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and
agree that, by reason of the provisions of this paragraph, following conversion or redemption of any portion of this Note, the Principal of this Note may be less than the principal amount stated on the face hereof. 

  
 - 12 - 

 (d) Legends. 

(i) Restrictive Legend. The Holder understands that, except as otherwise specified pursuant to
Section 2(d)(ii), this Note and the Conversion Shares, as applicable, may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such
securities): 
 “THE SECURITIES REPRESENTED BY THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION HEREOF MAY NOT BE
SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, INCLUDING PURSUANT TO RULE 144 (OR, IN THE CASE OF THIS NOTE, RULE
144A) UNDER THE SECURITIES ACT OR PURSUANT TO A PRIVATE SALE EFFECTED UNDER SECTION 4(A)(7) OF THE SECURITIES ACT OR APPLICABLE FORMAL OR INFORMAL SEC INTERPRETATION OR GUIDANCE, SUCH AS A SO-CALLED
“4[a](1) AND A HALF” SALE. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN, FINANCING OR INDEBTEDNESS ARRANGEMENT SECURED BY THE SECURITIES.” 

(ii) Removal of Restrictive Legend. This Note, the certificates evidencing the Conversion Shares, as applicable, shall not contain or
be subject to (and the Holder shall be entitled to removal of) any legend (or stop transfer or similar instruction) restricting the transfer thereof (including the legend set forth above in subsection 2(d)(i)): (A) while a registration
statement (including a Registration Statement, as defined in the Registration Rights Agreement) covering the sale or resale of such security is effective under the Securities Act, or (B) if the Holder provides customary certifications to the
effect that it has sold such Note and/or Conversion Shares pursuant to Rule 144, or (C) if such Note or Conversion Shares, as the case may be, are eligible for sale under Rule 144(b)(1) as set forth in customary
non-affiliate certifications provided by the Holder, or (D) if at any time on or after the date hereof that the Holder certifies that it is not an Affiliate of the Company, and has not been an Affiliate
for the preceding three months, and that the Holder’s holding period for purposes of Rule 144 and, in the case of the Conversion Shares, subsection (d)(3)(ii) thereof with respect to such Note and/or Conversion Shares is at least six
(6) months, or (E) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC) as

  
 - 13 - 

 
determined in good faith by counsel to the Company or set forth in a legal opinion delivered by Katten Muchin Rosenman LLP or other nationally recognized counsel to the Holder (collectively, the
“Unrestricted Conditions”). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after the Effective Date (as defined below), or at such other time as any of the Unrestricted Conditions has
been satisfied, if required by the Company’s Transfer Agent to effect the issuance of this Note or the Conversion Shares, as applicable, without a restrictive legend or removal of the legend hereunder. If any of the Unrestricted Conditions is
met at the time of issuance of any of the Conversion Shares, then such Conversion Shares shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as any of the Unrestricted Conditions is met or such
legend is otherwise no longer required under this Section 2(d), it will, no later than two (2) Trading Days (or, if less, the number of days comprising the Standard Settlement Period) following the delivery by the
Holder to the Company or the Transfer Agent of this Note or a certificate representing Conversion Shares, as applicable, issued with a restrictive legend, deliver or cause to be delivered to such Holder this Note and/or a certificate (or electronic
transfer) representing such shares that is free from all restrictive and other legends. For purposes hereof, “Effective Date” shall mean the date that the first Registration Statement covering the Conversion Shares that the
Company is required to file pursuant to the Registration Rights Agreement has been declared effective by the SEC. Notwithstanding anything to the contrary contained herein, all of the Conversion Shares and Preferred Conversion Shares issued pursuant
to Redemption Period Conversions shall, upon such issuance, be Freely Tradeable Shares or Freely Tradeable Preferred Shares, as applicable, and shall be issued free of all legends. 

(iii) Sale of Unlegended Shares. The Holder agrees that the removal of any restrictive legends from any securities as set forth in this
Section 2(d) is predicated upon the Company’s reliance that the Holder will sell such securities pursuant to either the registration requirements of the Securities Act or an exemption therefrom, and that if such
securities are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein. 

(e) Share Dividend, Subdivision, Combination or Reclassification. If the Company shall, at any time or from time to time,
(A) declare a dividend on the Common Stock payable in shares of its Capital Stock (including Common Stock), other than a dividend for which the Holder would be entitled to participate pursuant to Section 6, (B)
subdivide the outstanding shares of Common Stock into a larger number of shares of Common Stock, (C) consolidate or combine the outstanding shares of Common Stock into a smaller number of shares of Common Stock or (D) issue any shares of
its Capital Stock in a reclassification of the Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing corporation), then in each such case, the Conversion Price in effect
at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification shall be adjusted so that the Holder of this Note upon conversion after such date at the Conversion Price shall be
entitled to receive the aggregate number and kind of shares of the Company’s Capital Stock which, if this Note had been converted immediately prior to such date at the Conversion Price, such holder would have owned upon such conversion and been
entitled to receive by virtue of such dividend, subdivision, combination or reclassification. Any such adjustment shall become effective immediately after the record date of such dividend or the effective date of such subdivision, combination or
reclassification. Such adjustment shall be made successively whenever any event listed above shall occur. The Company shall give the Holder the same notice it provides to holders of Common Stock of any transaction described in this
Section 2(e). 

  
 - 14 - 

 (f) Notwithstanding anything herein to the contrary, the Company shall not issue to the
Holder, and the Holder may not acquire, a number of Conversion Shares upon any conversion of this Note or otherwise acquire any Shares pursuant hereto or the Facility Agreement to the extent that, upon such conversion, the number of shares of Common
Stock then beneficially owned by the Holder and its Affiliates and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act (including
shares held by any “group” of which the Holder is a member, but excluding shares beneficially owned by virtue of the ownership of securities or rights to acquire securities that have limitations on the right to convert, exercise or
purchase similar to the limitation set forth hereinafter) would exceed 4.985% of the total number of shares of Common Stock then issued and outstanding (the “4.985% Cap”); provided that the 4.985% Cap shall not apply to the
extent that the Common Stock is not deemed to constitute an “equity security” pursuant to Rule 13d-1(i) under the Exchange Act. For purposes hereof, “group” has the meaning set forth in
Section 13(d) of the Exchange Act and applicable regulations of the SEC, and the percentage beneficially owned by the Holder shall be determined in a manner consistent with the provisions of Section 13(d) of the Exchange Act. For purposes
hereof, the Holder may rely on the number of outstanding shares of Common Stock as set forth in the Company’s most recent annual report filed with the SEC, or any report filed by the Company with the SEC subsequent thereto, in each case, unless
the Company has confirmed to the Holder the number of shares of Common Stock outstanding as provided in the next sentence (in which case the Holder may rely upon such confirmation). Upon the written request of the Holder, the Company shall, within
two (2) Trading Days, confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. Each delivery of a Conversion Notice by the Holder will constitute a representation by the Holder that it has evaluated the
limitation set forth in this paragraph and determined that the issuance of the full number of Conversion Shares requested in such Conversion Notice is permitted under this paragraph. For the avoidance of doubt, the 4.985% Cap shall not limit the
number of Preferred Conversion Shares that may be issued in respect of any Preferred Stock Conversion. 
 (g) HSR Submissions. If the
Holder determines that, in connection with the conversion of this Note, it and the Company are required to file Premerger Notification Reports with the Federal Trade Commission (the “FTC”) and the United States Department of
Justice (“DOJ”) under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended, and the related rules and regulations promulgated thereunder (collectively, the “HSR Act”), the Company and Holder
(i) shall each file under the HSR Act within ten (10) Business Days of written notice from Holder to the Company that such filing is required, and (ii) shall cooperate with each other in preparing and making such filings and in
responding to reasonable inquiries of the FTC and DOJ relating to such filings. For the avoidance of doubt, the Holder shall bear all of its costs and expenses in connection with such submission, including any attorneys’ fees and filing fees
associated therewith. 

  
 - 15 - 

 3. Rights Upon Major Transaction or Organic Change. Without limiting any other rights
of the Holder under the Facility Agreement or any other Loan Document in respect of Major Transactions, in the event of a Major Transaction, then the Holder, at its option, may, (A) convert all or a portion of the outstanding Principal in
accordance with the provisions of this Section 3 (a “Major Transaction Conversion”) or (B) require the Company to redeem all or any portion of the outstanding Principal of this Note for the Major
Transaction Redemption Price as provided in this Section 3 (a “Major Transaction Redemption”). 

(a) Major Transaction Conversion. The Holder may elect a Major Transaction Conversion as follows: (1) in the case of a Successor
Major Transaction, the Holder, at its option, may elect to convert, in whole or in part, by written notice to the Company, effective immediately prior to, and conditional upon, the consummation of a Takeout Major Transaction or, in the case of an
Asset Sale, the Company’s distribution of assets to its stockholders, as applicable (a “Successor Major Transaction Conversion”), the outstanding Principal into the amount of cash and other assets and the number of securities
or other property of the Successor Entity or other entity that the Holder would have received had such Holder converted the Major Transaction Conversion Amount (as defined below) into the number of Shares equal to the Base Conversion Shares plus the
Additional Conversion Shares (each as defined below) (without regard to the 4.985% Cap or any other restriction or limitation on conversion) immediately prior to such Takeout Major Transaction or distribution of assets (as applicable) (the
“Successor Major Transaction Consideration”), and (2) in the case of any one or more Major Transactions other than a Successor Major Transaction (a “Company Share Major Transaction”), the Holder shall have the
right to convert, in whole or in part, following the occurrence of any such Major Transaction and from time to time thereafter, the outstanding Principal into a number of Shares equal to the Base Conversion Shares, plus the Additional Conversion
Shares determined with respect to any such Major Transaction and any such Major Transaction Conversion Amount (“Major Transaction Company Shares”). 

(b) Base Conversion Shares and Additional Conversion Shares. Notwithstanding anything herein to the contrary, with respect to any
conversion or deemed conversion effected in connection with a Major Transaction pursuant to Section 3(a) or during a Pending Redemption Period (i) the aggregate total number of Major Transaction Company Shares into
which all or any portion of the outstanding Principal may be converted, (ii) the aggregate number of Conversion Shares to be used for calculating the Successor Major Transaction Consideration in respect of any Major Transaction, and
(iii) the aggregate number of Conversion Shares issuable pursuant to a Conversion Notice delivered during a Pending Redemption Period shall be calculated to be the sum of (a) the number of Shares into which the outstanding Principal then
being converted would otherwise be converted as calculated under Section 2 hereof (such number of shares, the “Base Conversion Shares”), plus (b) the number of Shares equal to the product of
(x) the Additional Share Coefficient (as such term is defined and determined for each $1,000 of outstanding Principal then being converted on Schedule I attached hereto and made a part hereof) for such Major Transaction or in respect of the
applicable Optional Redemption Notice and (y) a fraction, the numerator of which is the amount of the Principal then being converted and the denominator of which is $1,000 (such number of Shares calculated in accordance with this clause (b),
the “Additional Conversion Shares”). Notwithstanding anything to the contrary contained herein, if, following a Company Share Major Transaction another Major Transaction shall occur, the Additional Share Coefficient shall be
determined by reference to such Major Transaction that results in a determination of the greatest number of Additional Conversion Shares. 

  
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 (c) Notice; Major Transaction Redemption Election; Major Transaction Conversion
Election. 
 (i) At least thirty (30) days prior to the occurrence of any Major Transaction or Organic Change, but, in any event,
one (1) Trading Day following (x) the date of the first public announcement by any Person of such Major Transaction or Organic Change if such announcement is made before 4:00 p.m., New York City time, or (y) the day following the
first public announcement by any Person of such Major Transaction or Organic Change if such announcement is made on or after 4:00 p.m., New York City time, the Company shall deliver written notice thereof via (i) email and (ii) overnight
courier to the Holder (a “Major Transaction/Organic Change Notice”); provided, however, that, with respect to any Major Transaction or Organic Change that is not a Successor Major Transaction, the applicable deadline by which the
Company must deliver the Major Transaction/Organic Change Notice shall be within one (1) Trading Day following (x) the date of the first public announcement by any Person of such Major Transaction or Organic Change if such announcement is
made before 4:00 p.m., New York City time, or (y) the day following the first public announcement by any Person of such Major Transaction or Organic Change if such announcement is made on or after 4:00 p.m., New York City time; and provided,
further, that the Company shall make a public announcement of any Major Transaction or Organic Change not later than one (1) Trading Day after the Company first has knowledge of the occurrence thereof. 

(ii) If a Major Transaction/Organic Change Notice is given (or required to be given) at any time with respect to any Major Transaction, then
at any time during the period beginning on the date the Company delivers (or by which it is obligated to deliver) such Major Transaction/Organic Change Notice and ending on the later of (1) ten (10) Trading Days prior to the occurrence of such
Major Transaction and (2) ten (10) Trading Days after the Holder’s receipt of such Major Transaction/Organic Change Notice (or, in the case of a Major Transaction that is not a Successor Major Transaction, at any time beginning on the date
the Company delivers (or by which it is obligated to deliver)) a Major Transaction/Organic Change Notice with respect thereto and ending on the sixtieth (60th) day after the later of (1) the date the Company actually delivers such Major
Transaction/Organic Change Notice and (2) the Major Transaction Effective Date in respect of such Major Transaction, the Holder may elect to require a Major Transaction Redemption by delivering written notice thereof (the “Major
Transaction Redemption Notice”) to the Company, which Major Transaction Redemption Notice shall indicate the portion of the Principal that the Holder is electing to have redeemed in a Major Transaction Redemption. 

(iii) If a Major Transaction/Organic Change Notice is given (or required to be given) in respect of a Successor Major Transaction, and the
Holder has not elected to require a Major Transaction Redemption in respect of all of the Principal, at any time during the period beginning on the date the Company delivers (or by which it is obligated to deliver) such Major Transaction/Organic
Change Notice in respect of a Major Transaction and ending on the later of (1) ten (10) Trading Days prior to the occurrence of such Major Transaction and (2) ten (10) Trading Days after the Holder’s receipt of such Major
Transaction/Organic Change Notice, the Holder may elect to require a Successor Major Transaction Conversion (in respect of all or any portion of the Principal, except any portion that the Holder has elected to be redeemed in a Major Transaction
Redemption) by delivering written notice thereof (the “Major Transaction Early Termination Notice”) to the Company, which Major Transaction Early Termination Notice shall 

  
 - 17 - 

 
indicate the portion of the Principal that Holder is electing to be treated as a Successor Major Transaction Conversion (provided, for the avoidance of doubt, that the Holder may elect a Major
Transaction Redemption in respect of a portion of the Principal and a Successor Major Transaction Conversion in respect of another portion of the Principal). If holders of any Shares are given any choice as to the securities, cash or property to be
received in a Successor Major Transaction or Organic Change, then the Holder shall be given the same choice as to the type of consideration it receives upon any conversion of this Note in connection with such Successor Major Transaction or Organic
Change. Notwithstanding anything to the contrary contained herein, the Holder shall be entitled to elect to require a Successor Major Transaction Conversion in respect of all or any portion of the Principal, even if the Company has elected to effect
an Optional Redemption with respect to all or any portion of the outstanding Principal with respect to this Note as provided in Section 7 (and, for the avoidance of doubt, there shall be no Optional Redemption with respect
to the Principal of this Note as to which the Holder has elected a Successor Major Transaction Conversion). 
 (iv) In respect of any
Company Share Major Transaction, at any time from the date the Company delivers (or is obligated to deliver) to the Holder a Major Transaction/Organic Change Notice with respect thereto, the Holder may deliver written notice of a Major Transaction
Conversion (“Major Transaction Conversion Notice”) to the Company, which Major Transaction Conversion Notice shall indicate the portion of the Principal (the “Major Transaction Conversion Amount”) that the Holder is
electing to treat as a Major Transaction Conversion (which may be of all or any portion of the Principal, except any portion that the Holder has elected to be redeemed in a Major Transaction Redemption) and the effective date of such Major
Transaction Conversion (which shall not be prior to the consummation of the applicable Company Share Major Transaction) (provided, for the avoidance of doubt, that the Holder may elect a Major Transaction Redemption in respect to a portion of the
Principal and Major Transaction Conversions in respect of other portions of the Principal). For the avoidance of doubt, the Holder shall be permitted to make successive conversions and send successive Major Transaction Conversion Notices in respect
of a Company Share Major Transaction from time to time (provided that the effective date of any such conversion shall not be prior to the consummation of the applicable Company Share Major Transaction). 

(d) Settlement of Major Transaction Consideration. Following receipt of a Major Transaction Redemption Notice or Major Transaction
Early Termination Notice from the Holder in respect of a Successor Major Transaction, the Company shall not effect the Successor Major Transaction with respect to which Holder has elected a Major Transaction Redemption or Successor Major Transaction
Conversion unless it either (a) shall first place into an escrow account with an independent escrow agent, at least three (3) Trading Days prior to the closing date of the Successor Major Transaction, the Major Transaction Redemption Price
or Successor Major Transaction Consideration (as applicable) applicable thereto, plus accrued and unpaid interest through the date of such payment or issuance, as applicable (and any other amounts payable under the Facility Agreement), or
(b) shall obtain the written agreement of the Successor Entity (which agreement shall include provisions entitling the Holder to enforce such agreement as a third party beneficiary) that payment or issuance of the Major Transaction Redemption
Price or Successor Major Transaction Consideration (as applicable) applicable thereto plus accrued and unpaid interest through the date of such payment or issuance, as applicable (and any other amounts payable under the Facility Agreement) shall be
made to the Holder concurrently with the 

  
 - 18 - 

 
consummation of such Successor Major Transaction and such payment or issuance, as the case may be, which shall be a condition precedent to the consummation of such Successor Major Transaction.
Concurrently upon closing of such Successor Major Transaction, the Company shall pay or issue, as the case may be, or instruct the escrow agent to deliver, or cause the Successor Entity to pay or issue, as applicable, the Major Transaction
Redemption Price or Successor Major Transaction Consideration (as applicable) applicable thereto, as the case may be, plus accrued and unpaid interest through the date of such payment or issuance, as applicable (and any other amounts payable under
the Facility Agreement). 
 (e) Organic Change. Any recapitalization, reorganization, reclassification, consolidation, merger, or any
other transaction, in each case, that is effected in such a way that holders of Shares are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to, or in exchange for, Shares (other than any
transaction referred to in Section 2(e) or Section 6) is referred to herein as an “Organic Change.” Without limiting any other rights of the Holder under this
Section 3 or any other provision of this Note, unless otherwise provided in writing by the Required Note Holders, prior to the consummation of any Organic Change, the Company will make appropriate provision (pursuant to
written agreements in form and substance reasonably satisfactory to the Required Note Holders and approved by the Holder prior to the consummation of such Organic Change (such approval not to be unreasonably withheld or delayed)) to ensure that the
Holder will thereafter have the right to acquire and receive, in lieu of the Shares otherwise acquirable or receivable upon the conversion of this Note (without regard to the 4.985% Cap or any other restriction or limitation on conversion; provided
that such written agreement shall contain a limitation on conversion comparable to the 4.985% Cap), such shares of stock, securities and/or assets as would have been issued or payable in such Organic Change with respect to, or in exchange for, the
number of Shares which would have been acquirable or receivable upon the conversion of this Note immediately prior to such Organic Change (without regard to the 4.985% Cap or any other restriction or limitation on conversion). The Company shall not
effect any Non-Surviving Organic Change (as defined below), unless prior to the consummation thereof, the Acquiring Entity (as defined below) provides a written agreement (in form and substance reasonably
satisfactory to the Holder) and approved by Holder prior to the consummation of such Non-Surviving Organic Change (such approval not to be unreasonably withheld, conditioned or delayed) to deliver to the
Holder, upon conversion of this Note, such shares of stock, securities and/or assets as would have been issued or payable in such Non-Surviving Organic Change with respect to, or in exchange for, the number of
Shares that would have been acquirable or receivable upon the conversion of this Note immediately prior to such Organic Change (without regard to the 4.985% Cap or any other restriction or limitation on conversion). For purposes of this Note,
“Non-Surviving Organic Change” means any Organic Change following which the Company is not a surviving entity or as a result of which the holders of the Shares are entitled to receive stock or
other securities of a new Parent Entity, but excluding for avoidance of doubt, any such Organic Change in which the consideration payable in respect of the Shares is limited to cash; and “Acquiring Entity” means the Person
purchasing assets of the Company in a Non-Surviving Organic Change or the Successor Entity resulting from any Non-Surviving Organic Change. Notwithstanding the
foregoing, in no event shall a Major Transaction as to which Holder has exercised its right to require a Major Transaction Redemption or a Successor Major Transaction Conversion in respect of all of the Principal of this Note be subject to the
provisions of this Section 3(e), and the foregoing shall not affect Holder’s right to convert this Note prior to the consummation of the Organic Change. 

  
 - 19 - 

 For the avoidance of doubt, the rights and obligations of the Company and the Holder upon
the occurrence of a Major Transaction or Organic Change are conditional upon such Major Transaction or Organic Change being consummated (or actually occurring) and in the event that a Major Transaction or Organic Change for which the Holder is given
notice is not consummated (or does not occur), then upon written notice from the Company to the Holder confirming that such Major Transaction has not and will not be consummated (or occur), all actions taken under this
Section 3 prior to such written notice in connection with such Major Transaction shall be deemed to be rescinded and null and void and the Company shall return to the Holder this Note (if previously surrendered to the
Company in connection with an anticipated Major Transaction or Organic Change under this Section 3). In the event that such Major Transaction is being consummated pursuant to an agreement between the Company (or any
Affiliate thereof) and any other Person, the Company shall not deliver the written notice contemplated by the immediately preceding sentence unless such agreement has terminated. 

(f) Conversion Right Continues. Notwithstanding anything to the contrary contained herein and without derogating any obligations or
rights herein, until the Holder receives its appropriate payment or securities, plus any accrued and unpaid interest under this Note (and any other amounts payable under the Facility Agreement), in accordance with the provisions of this
Section 3 and the Facility Agreement, this Note may be converted, in whole or in part, by the Holder into Shares, or in the event that such payments and/or shares have not been delivered prior to the consummation of the
Successor Major Transaction in which the Company is not the surviving parent entity, shares of common stock (or their equivalent) of the Successor Entity at an appropriate conversion price based upon the prevailing Conversion Price (as adjusted
hereunder) at the time of such Major Transaction and price per share or conversion ratio received by holders of Shares in the Major Transaction. 

4. Registration Failures. Upon any Registration Failure (as defined in the Registration Rights Agreement), in addition to all other
available remedies that the Holder may pursue hereunder and under the Facility Agreement, the Registration Rights Agreement and this Note, the Company shall pay additional damages to the Holder for each 30-day
period (prorated for any partial period) after the date of such Registration Failure in an amount in cash equal to one and one-half percent (1.5%) of such Holder’s original principal amount of this Note
on the date of such Registration Failure. Such payments shall accrue until the earlier of (i) such time as the Registration Failure has been cured and (ii) the date on which all of the Conversion Shares and all of the Shares issuable upon
conversion of the Preferred Conversion Shares may be sold without restriction under Rule 144 (including volume restrictions and without the need for the availability of current public information under Rule 144). All such payments that accrue under
this Section 4 shall be payable no later than five (5) Business Days following such date of accrual. 
 5.
Voting Rights. Except as required by law, the Holder shall have no voting rights with respect to any of the Conversion Shares until the Conversion Date relating to the conversion of this Note upon which such Conversion Shares are issuable.

 6. Participation. The Holder, as the holder of this Note, shall be entitled to receive such dividends paid (or cash amounts equal
to such dividends) and distributions of any kind made to the holders of Common Stock, other than dividends of, or distributions payable in, Shares, to the same extent as if the Holder had converted this Note into such Shares (without regard

  
 - 20 - 

 
to the 4.985% Cap or any other limitations on conversion herein or elsewhere and without regard to whether or not a sufficient number of shares are authorized and reserved to effect any such
conversion and issuance) and had held such Shares on the record date for such dividends and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders of Common Stock. 

7. Optional Redemption. 

(a) Subject to the terms, conditions and limitations set forth in this Section 7: 

(i) in the event that, during the 150% Optional Redemption Period each of the following is greater than 150% of the Conversion Price (the
“150% Optional Redemption Pricing Condition”): (1) the Volume Weighted Average Price of the Common Stock on each of any twenty (20) Trading Days during a period of thirty (30) consecutive Trading Days ending on the date on
which an Optional Redemption Notice (as defined below) is delivered in accordance with Section 7(b), (2) the Volume Weighted Average Price of the Common Stock on the last Trading Day of such period and (3) the Closing
Price of the Common Stock on the last Trading Day of such period; or 
 (ii) in the event that, during the 200% Optional Redemption Period
each of the following is greater than 200% of the Conversion Price (the “200% Optional Redemption Pricing Condition”): (1) the Volume Weighted Average Price of the Common Stock on each of any twenty (20) Trading Days during a
period of thirty (30) consecutive Trading Days ending on the date on which an Optional Redemption Notice (as defined below) is delivered in accordance with Section 7(b), (2) the Volume Weighted Average Price of the
Common Stock on the last Trading Day of such period and (3) the Closing Price of the Common Stock on the last Trading Day of such period, 
 then the
Company shall have the right to redeem (an “Optional Redemption”) the Principal amount of this Note for the Optional Redemption Price; provided, that such Principal amount shall not exceed the result of the applicable Optional
Redemption Cap, minus the aggregate Principal amount of this Note converted into Conversion Shares, redeemed (by Optional Redemption(s) or otherwise) and/or otherwise repaid prior to the Company’s delivery of the Optional Redemption Notice (as
defined below) in respect of such Optional Redemption. The Company shall not effect any Optional Redemption under this Note unless, contemporaneously with such Optional Redemption, the Company effects an optional redemption under the other Notes in
accordance with the terms thereof, on a pro rata basis, based upon the respective applicable Optional Redemption Caps as of the date the Optional Redemption Notice is delivered to the holders of the Notes. 

(b) To effect an Optional Redemption, the Company shall send a written notice via electronic mail to the Holder (an “Optional
Redemption Notice”) at any time between 4:00 p.m. and 5:00 p.m., New York City time, on a Trading Day on which the applicable Optional Redemption Pricing Condition is satisfied. Each Optional Redemption Notice shall certify that the 150%
Optional Redemption Pricing Condition or the 200% Optional Redemption Pricing Condition, as applicable, and each of the Additional Redemption Conditions (as defined below) 

  
 - 21 - 

 
have been satisfied (including reasonable supporting information), and shall indicate: (i) that the Company has elected to effect an Optional Redemption, (ii) the Principal amount
hereunder that the Company is electing to redeem (the “Principal Redemption Amount”), (iii) the Optional Redemption Date, (iv) the aggregate principal amount of all Notes outstanding as of the date of the Optional Redemption
Notice, (v) the aggregate principal amount of the Notes to be redeemed on the Optional Redemption Date, and (vi) if the applicable Optional Redemption is conditional upon the consummation of a transaction as permitted by
Section 7(c), a statement to such effect and a summary description of the transaction on which the applicable Optional Redemption is conditioned. Simultaneously with the delivery of an Optional Redemption Notice to the
Holder hereunder, the Company shall send an Optional Redemption Notice to the holders of each of the other Notes in respect of the applicable principal amount of such Notes. In no event shall the Company send more than four (4) Optional
Redemption Notices to the Holder, it being acknowledged and agreed that the Company shall be entitled to effect an Optional Redemption not more than four times. In no event shall the Company send any Optional Redemption Notice to the Holder during
any Pending Redemption Period. 
 (c) If the Company elects to exercise its Optional Redemption right, it shall fix (and specify in the
applicable Optional Redemption Notice) a date for redemption (an “Optional Redemption Date”), which shall be at least two (2) Trading Days prior to the Maturity Date and at least ten (10) Trading Days but no more than
sixty (60) (calendar) days following the date the applicable Optional Redemption Notice is delivered to the holders of Notes. The Optional Redemption Notice (and each optional redemption notice delivered to holders of the other Notes) shall be
irrevocable (subject to the termination right of the Holder pursuant to Section 7(d)) and, upon delivery of an Optional Redemption Notice, the Optional Redemption Price, less the sum of all Redemption Period Conversion
Amounts (as defined below), together with accrued and unpaid interest thereon through the date of payment thereof (and any other amounts payable thereon under the Facility Agreement), shall become due and payable on the Optional Redemption Date;
provided that an Optional Redemption may be conditional upon the consummation of a specified transaction, if so indicated in the applicable Optional Redemption Notice, on the proposed Optional Redemption Date, in which case the Holder shall be
entitled to provide a Conversion Notice that provides for a conversion of this Note (or any portion hereof) that is conditional upon the consummation of such transaction (with a Conversion Date that would be deemed to occur on the proposed Optional
Redemption Date); it being understood that the Holder shall be entitled to revoke any such conditional Conversion Notice at any time during the Pending Redemption Period. In the event that the Optional Redemption is conditional upon consummation of
a transaction, the Company shall notify the Holder, and publicly disclose, by no later than 8:00 a.m. (New York City time) on the Optional Redemption Date whether the applicable transaction has been consummated and, accordingly, the applicable
condition has been satisfied. For the avoidance of doubt, the condition shall only be deemed satisfied if so publicly disclosed as such, and upon public disclosure that the transaction has not been consummated and the condition has not been
satisfied, the Optional Redemption Period shall terminate and any conversion that is conditional upon such condition being satisfied shall be null and void and of no force or effect. The failure to pay in full the amount payable to the Holder on the
Optional Redemption Date shall constitute an Event of Default under the Facility Agreement. The Conversion Amount specified in each Conversion Notice delivered by the Holder during the Pending Redemption Period (a “Redemption Period
Conversion Amount”) shall reduce, on a dollar-for-dollar basis, the Principal Redemption Amount until all of such Principal Redemption Amount shall have been
converted. 

  
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 (d) Notwithstanding anything to the contrary contained herein, without the prior written
consent of the Required Note Holders, the Company shall not deliver an Optional Redemption Notice, and the Company shall not affect any Optional Redemption, (i) during the occurrence of a Delisting Event, (ii) at any time following such
time as the Company has delivered (or is obligated to deliver) a Major Transaction/Organic Change Notice in respect of a Major Transaction that has not yet been consummated or abandoned (and publicly disclosed as consummated or abandoned), (iii) at
any time following the occurrence, and during the continuance, of an Event of Default or a Default, (iv) if there shall be any Withholding Date during the Pending Redemption Period or otherwise in respect of any conversions under the Notes
during such period, (v) unless the Series DF-1 Certificate of Designation shall have been filed with the Secretary of State of the State of Delaware and become effective, and the shares of Series DF-1 Preferred Stock authorized by the Series DF-1 Certificate of Designation shall be available for issuance hereunder, (vi) unless all material nonpublic information
regarding the Company provided to the Holder (or any of its Affiliates or representatives or agents) (including any material nonpublic information that may be included in, or reflected by, the Optional Redemption Notice, which, for the avoidance of
doubt, shall include any such information with respect a transaction upon which the applicable Optional Redemption is conditioned), has been publicly disclosed in a report filed pursuant to the Exchange Act, has been otherwise publicly disclosed in
a manner calculated to reach the securities marketplace through one of the Company’s recognized channels of distribution or otherwise ceased to be material nonpublic information, (vii) unless all Shares, including Additional Conversion
Shares, and shares of Series DF-1 Preferred Stock issuable pursuant to conversions of the Notes during the Pending Redemption Period, will constitute Freely Tradeable Shares or Freely Tradeable Preferred
Shares, as applicable, upon the issuance thereof, (viii) if the Transfer Agent for the Common Stock is not participating in DTC’s Fast Automated Securities Transfer Program or (ix) if the Optional Redemption is conditional upon the
consummation of a transaction, unless the Company has entered into a binding agreement with respect to such transaction or, in the case of a financing transaction, has received a binding commitment letter in customary form with respect to such
financing transaction (collectively, the “Additional Redemption Conditions”), except to the extent the Holder has waived any such Additional Redemption Condition by written notice to the Company. If any of the Additional Redemption
Conditions is not satisfied at any time following the delivery of an Optional Redemption Notice and prior to the Optional Redemption Date in respect of Optional Redemption, the Company shall immediately notify the Holder of such failure and
(regardless of whether the Company shall have notified the Holder of such failure), by written notice delivered by the Holder to the Company at any time prior to the Optional Redemption Date, the Holder may elect to terminate the Pending Redemption
Period, whereupon the Optional Redemption Notice shall be voided, the Pending Redemption Period shall cease, and the Optional Redemption shall not be effected. For the avoidance of doubt, no such termination shall affect the Holder’s right to
receive Redemption Period Conversion Shares in respect of Conversion Notices delivered prior to the time that such termination becomes effective. 

  
 - 23 - 

 (e) Upon each conversion of this Note pursuant to a Redemption Period Conversion, the
Holder shall be entitled to receive a number of Conversion Shares equal to the Base Conversion Shares, plus the Additional Conversion Shares (collectively, the “Redemption Period Conversion Shares”); provided, that the Company shall
not be obligated to issue Additional Conversion Shares pursuant to this Section 7(e) in respect of any Conversion Amount specified in a Conversion Notice delivered during the Pending Redemption Period that exceeds the
result of the Principal Redemption Amount, minus the aggregate Principal of this Note previously converted during the Pending Redemption Period for Base Conversion Shares and Additional Conversion Shares; and provided, further, that, in lieu of
receiving any or all of the Redemption Conversion Shares (or other Conversion Shares during the Pending Redemption Period), the Holder may elect in the applicable Conversion Notice to receive Preferred Conversion Shares as provided in
Section 2(c). 
 8. Certain Provisions Related to Shares Issued Hereunder. 

(a) Sufficient Shares. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common
Stock solely for the purpose of effecting conversions of this Note, such number of shares of Common Stock as shall from time to time be sufficient to effect the conversion of the entire Principal convertible under this Note (without giving effect to
the 4.985% Cap); and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of the entire Principal convertible under this Note, the Company will use reasonable best efforts to
take such corporate action as may necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose. The Company shall also (i) at all times from the Issuance Date through
the filing of the Series DF-1 Certificate of Designation, reserve and keep available out of its authorized but undesignated and unissued shares of preferred stock, solely for the purpose of effecting
conversions of this Note, such number of shares of preferred stock as shall from time to time be sufficient to effect the maximum amount of conversions into Preferred Conversion Shares, and (ii) at all time after the filing of the Series DF-1 Certificate of Designation (including at all times during a Pending Redemption Period), reserve and keep available out of its authorized but unissued shares of Series
DF-1 Preferred Stock, solely for the purpose of effecting conversions of this Note, such number of shares of Series DF-1 Preferred Stock as shall from time to time be
sufficient to effect the maximum amount of conversions into Preferred Conversion Shares. 
 (b) Fully-Paid. The Company covenants and
agrees that, upon any conversion of this Note, all shares of Common Stock and/or Series DF-1 Preferred Stock (as applicable) issued upon such conversion shall be duly and validly issued, fully paid and
nonassessable and not subject to preemptive rights, rights of first refusal or similar rights of any Person. 
 9. Amendment; Waiver.
The terms and provisions of this Note shall not be amended or waived except in a writing signed by the Company and the Required Note Holders. 

10. Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be
cumulative and in addition to all other remedies available under this Note, the Facility Agreement, at law or in equity (including a decree of specific performance and/or other injunctive relief). No remedy contained herein shall be deemed a waiver
of compliance with the provisions giving rise to such remedy, and nothing herein shall limit the Holder’s right to pursue actual damages for any failure by the Company to comply with the terms 

  
 - 24 - 

 
of this Note. The Company covenants to the Holder that, except as may be set forth in the Facility Agreement, there shall be no characterization concerning this instrument other than as expressly
provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof and shall not, except as expressly provided herein,
be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be
inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing
economic loss and without any bond or other security being required. 
 11. Specific Shall Not Limit General; Construction. No
specific provision contained in this Note shall limit or modify any more general provision contained herein. This Note shall be deemed to be jointly drafted by the Company and all purchasers of Notes pursuant to the Facility Agreement and shall not
be construed against any Person as the drafter hereof. 
 12. Failure or Indulgence Not Waiver. No failure or delay on the part of the
Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right,
power or privilege. 
 13. Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such
notice shall be given in accordance with Section 9.1 of the Facility Agreement. 
 14. Transfers of Notes. 

(a) Registration or Exemption Required. This Note has been issued in a transaction exempt from the registration requirements of the
Securities Act and exempt from state registration or qualification under applicable state laws. None of this Note or the Conversion Shares may be pledged, transferred, sold, assigned, hypothecated or otherwise disposed of except pursuant to an
effective registration statement under the Securities Act or pursuant to an exemption from registration under the Securities Act, including pursuant to Rule 144 (or, in the case of this Note, Rule 144A) under the Securities Act or pursuant to a
private sale effected under Section 4(a)(7) of the Securities Act or applicable formal or informal SEC interpretation or guidance, such as a so-called “4(a)(1) and a half” sale. 

(b) Assignment. Subject to Section 9.4 of the Facility Agreement and to Section 14(a), the Holder may
sell, transfer, assign, pledge, hypothecate or otherwise dispose (collectively, “Transfer”; and “Transferee” shall have a correlative meaning) of this Note, in whole or in part. Holder shall deliver a written notice
to Company, substantially in the form of the Assignment attached hereto as Exhibit B, indicating the Person or Persons to whom the Note shall be Transferred and the respective principal amount of the Note to be Transferred to each assignee. The
Company shall effect the Transfer within two (2) Trading Days and shall deliver to the assignee(s) designated by Holder a Note or Notes of like tenor and terms for the appropriate principal amount. This Note and the rights evidenced hereby
shall inure to the benefit of and be 

  
 - 25 - 

 
binding upon the successors and assigns of the Holder. The provisions of this Note are intended to be for the benefit of all Holders from time to time of this Note, and shall be enforceable by
any such Holder. For avoidance of doubt, in the event Holder notifies the Company that such sale or transfer is a so-called “4(a)(1) and a half” transaction, the parties hereto agree that a legal
opinion from Katten Muchin Rosenman LLP or other nationally recognized outside counsel for the Holder delivered to the Company substantially in the form attached hereto as Exhibit C shall be the only requirement to satisfy an exemption from
registration under the Securities Act to effectuate such “4(a)(1) and a half” transaction. 
 15. Obligations of the
Company. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation or bylaws or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note or otherwise intentionally materially adversely affect the rights or remedies to which the Holder is entitled hereunder
or take any other action that has the purpose or effect of circumventing any of the rights or remedies of the Holder under this Note, including Section 3 hereof. The Company shall take all such actions as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Shares upon the conversion of this Note. 

16. Payment of Collection, Enforcement and Other Costs. If (a) this Note is placed in the hands of an attorney for collection or
enforcement or is collected or enforced through any legal proceeding; or (b) an attorney is retained to represent the Holder in any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors’
rights and involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action, including reasonable attorneys’ fees and disbursements. 

17. Cancellation. After all Principal, Interest and other amounts at any time owed under, or on account of, this Note have been paid in
full or converted into Shares in accordance with the terms hereof, this Note shall automatically be deemed cancelled, shall be surrendered to the Company for cancellation and shall not be reissued. 

18. Registered Note. This Note may be Transferred only upon notation of such Transfer on the Register, and no Transfer thereof shall be
effective until recorded therein. Until there has been a valid Transfer of this Note and of all of the rights hereunder by the Holder in accordance with this Note, the Company shall deem and treat the Holder as the absolute beneficial owner and
holder of this Note and of all of the rights hereunder for all purposes (including for the purpose of receiving all payments to be made under this Note). 

19. Waiver of Notice. To the extent permitted by law, the Company hereby waives demand, notice, presentment, protest and all other
demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Facility Agreement. 

  
 - 26 - 

 20. Governing Law. This Note shall be construed and enforced in accordance with, and
all questions concerning the construction, validity, interpretation and performance of this Note and all disputes arising hereunder shall be governed by, the laws of the State of New York, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. The Company (a) agrees that any legal action or proceeding
with respect to this Note or any other agreement, document, or other instrument executed in connection herewith, shall be brought exclusively in any state or federal court located within New York, New York, (b) irrevocably waives any objections
which the Company may now or hereafter have to the venue of any suit, action or proceeding arising out of or relating to this Note, or any other agreement, document, or other instrument executed in connection herewith, brought in the aforementioned
courts, (c) further irrevocably waives any claim that any such suit, action, or proceeding brought in any such court has been brought in an inconvenient forum and (d) hereby consents that personal service of summons or other legal process
may be made as set forth in the Facility Agreement. EACH OF THE COMPANY AND THE HOLDER (BY ACCEPTANCE HEREOF) IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT TO ENFORCE ANY PROVISION OF THIS NOTE OR ANY OTHER
TRANSACTION DOCUMENT. 
 21. Interpretative Matters. Unless the context otherwise requires, (a) all references to Sections or
Exhibits are to Sections or Exhibits contained in or attached to this Note, (b) each accounting term not otherwise defined in this Note has the meaning assigned to it in accordance with GAAP, (c) words in the singular or plural include the
singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter and (d) the use of the word “including” in this Note shall be by way of example rather
than limitation. If a Stock Event occurs during any period over which an average price is being determined, then an appropriate adjustment will be made to such average to reflect such event. All cash payments to be made pursuant to this Note shall
be made in Dollars. 
 22. Execution. A facsimile, telecopy, PDF or other reproduction of this Note may be delivered by the Company,
and an executed copy of this Note may be delivered by the Company by facsimile, email or other similar electronic transmission device pursuant to which the signature of or on behalf of the Company can be seen, and such execution and delivery shall
be considered valid, binding and effective for all purposes. The Company hereby agrees that it shall not raise the execution of facsimile, PDF or other reproduction of this Note, or the fact that any signature was transmitted by facsimile, email or
other similar electronic transmission device, as a defense to the Company’s execution of this Note. Notwithstanding the foregoing, the Company shall be required to deliver an originally executed Note to the Holder (or its designee). 

[Signature page follows] 

  
 - 27 - 

 IN WITNESS WHEREOF, the Company has caused this Senior Convertible Note to be duly executed
as of the date first set forth above. 
  

			
	COMPANY:
	
	INTERSECT ENT, INC.
		
	By:	 	              

	Name:	 	
	Title:	 	

 SIGNATURE PAGE TO SENIOR
CONVERTIBLE NOTE 

 Exhibit A 

CONVERSION NOTICE 
 Reference is made to
the Senior Convertible Note (the “Note”) of INTERSECT ENT, INC., a Delaware corporation (the “Company”), in the original principal amount of
$[                ]. In accordance with and pursuant to the Note, the undersigned hereby (i) elects to convert the Conversion Amount (as defined in the Note) of the
Note indicated below into shares of Common Stock (as defined in the Note) or Series DF-1 Preferred Stock (as defined in the Note) of the Company, as of the date specified below. 

Date of Conversion: _______________ 
 Aggregate Conversion
Amount to be converted at the Conversion Price (as defined in the Note): 
 Principal, applicable thereto, to be converted: _______________

 Please confirm the following information: 

Conversion Price: __________________ 

Number of shares of Common Stock to be issued: _______________ 

If this Conversion Notice is delivered during a Pending Redemption Period (as defined in the Note), please confirm the following information: 

Number of Base Conversion Shares:
                             

Number of Additional Conversion Shares:
                         

Number of shares of Common Stock to be issued:
                         

Number of shares of Series DF-1 Preferred Stock to be issued:
                         

Please issue shares of Common Stock into which the Note is being converted in the following name and to the following address: 

Issue to: ________________ 
 Email Address: _______________ 

DTC Details (if applicable): ______________ 
 Please issue the
shares of Series DF-1 Preferred Stock into which the Note is being converted in the following name and to the following address: 

Issue
to:                                       
                                         
                 
 Email
Address:                                      
                                        
       

Address:                        
             
 Dated: ___________________ 

 ACKNOWLEDGMENT 

The Company hereby acknowledges this Conversion Notice and hereby directs [TRANSFER AGENT] to issue the above indicated number of shares of Common Stock in
accordance with the Irrevocable Transfer Agent Instructions dated [        ], 20[_] from the Company and acknowledged and agreed to by [TRANSFER AGENT]. 

Intersect ENT, Inc. 
  

	
	By: _____________________________
	
	Name: _______________________  Title: ____________________

 Exhibit B 

ASSIGNMENT 
 (To be
executed by the registered holder desiring to transfer the Note) 
 FOR VALUE RECEIVED, the undersigned holder of the attached Senior Convertible Note (the
“Note”) hereby sells, assigns and transfers unto the person or persons below named the right to receive the principal amount of $___________ from Intersect ENT, Inc., a Delaware corporation, evidenced by the attached Note and does hereby
irrevocably constitute and appoint _______________ attorney to transfer the said Note on the books of the Company, with full power of substitution in the premises. 
  

	
	 Dated: _____________
  

	
	  
 Signature

	
	Fill in for new registration of Note:
	
	  
 Name

 

	  
  

	
	  
 Address

	
	  
 Please print name and address of
assignee

	(including zip code number)

 Exhibit C 

FORM OF OPINION 
 ,
20_____ 
 Re: Intersect ENT, Inc. (the “Company”) 

Dear Sir: 
 [_______________] (“[______________]”)
intends to transfer its Senior Convertible Note in the principal amount of $_________ (the “Note”) of the Company to ________ (“_____”) without registration under the Securities Act of 1933, as amended (the “Securities
Act”). In connection herewith, we have examined such documents and issues of law as we have deemed relevant. 
 Based on and subject to the foregoing,
we are of the opinion that the transfer of the Note by _____________ to ______________ may be effected without registration under the Securities Act: provided, however, that the Note to be transferred to __________ shall contain a legend restricting
its transferability pursuant to the Securities Act as set forth in the Note and may to a stop transfer order consistent therewith. 
 The foregoing opinion
is furnished only to ___________ and may not be used, circulated, quoted or otherwise referred to or relied upon by you for any purposes other than the purpose for which furnished or by any other person for any purpose, without our prior written
consent. 
 Very truly yours, 

 Schedule 1 

The “Additional Share Coefficient” shall mean the number of additional shares of Common Stock issuable per $1,000 of
principal amount of the Note upon a Major Transaction or in respect of a Conversion Notice delivered during a Pending Redemption Period and shall be the additional share number set forth on the chart with respect to the “Share Price
Result” on the “y” axis and the corresponding “Remaining Note Life” on the “x” axis; provided, however, that to the extent the actual Share Price Result (as defined below) falls between two data
points on the “y” axis and/or the actual Major Transaction Effective Date (or, if applicable, the date of a Major Transaction Conversion or the date a Conversion Notice is delivered during a Pending Redemption Period) falls between two
data points on the “x” axis, the “Additional Share Coefficient” shall be determined by calculating the arithmetic mean between (i) the result obtained for the Share Price Result based on the linear interpolation between the
additional share numbers corresponding to the two Share Price Result data points and (ii) the result obtained for the Remaining Note Life based on the linear interpolation between the two additional share numbers corresponding to the two
Remaining Note Life data points; and provided further, however, that in the event of any adjustment to the Conversion Price pursuant to Section 2 of this Note, the numbers of additional shares of Common
Stock issuable per $1,000 of principal amount of this Note as set forth in the chart below and the maximum number of Conversion Shares set forth in the last sentence of this Schedule 1 shall be deemed adjusted pro rata with any adjustment resulting
from the adjustment to the Conversion Price that would be made to the number of shares of Common Stock then convertible with respect to $1,000 of principal amount of this Note as calculated under Section 2 of this Note.

 For purposes of the chart below, the “Remaining Note Life” shall be (A) with respect to a Major Transaction, the number of
years remaining until the Maturity Date as of the Major Transaction Effective Date; provided, however, that in the case of a Major Transaction Conversion following a Company Share Major Transaction, the “Remaining Note Life” shall be the
number of years remaining until the Maturity Date as of the Conversion Date in respect of such Major Transaction Conversion, or (B) with respect to a Conversion Notice delivered during a Pending Redemption Period, the Trading Day on which the
Optional Redemption Notice is delivered to the Holder. 
 For purposes of the chart below, the “Share Price Result” shall be,
(A) in the case of a Major Transaction, the greater of: (i) the Closing Price of the Common Stock immediately prior to the consummation of the Major Transaction, and (ii) in the case of a Major Transaction in which holders of shares
of Common Stock receive solely cash consideration in connection with such Major Transaction, the cash amount payable per share of Common Stock in such Major Transaction and (B) in the case of a Redemption Period Conversion, the Closing Price on
the Trading Day immediately preceding the Conversion Date in respect thereof. 
 If the actual Share Price Result is greater than $50.00 per
share (subject to adjustment in the same manner as the Conversion Price as provided in Section 2 of this Note), or if the actual Share Price Result is less than $9.00 per share (subject to adjustment in the same manner as
the Conversion Price as provided in Section 2 of this Note), then the Additional Share Coefficient shall be equal to the amount applicable to $50.00 and $9.00, respectively. 

 Additional Shares per $1,000 Principal 

Remaining Note Life (Yrs) 
  

																											
	Stock
Price	 	  	 5

(5/11/2020)
	 	  	 4

(5/11/2021)
	 	  	 3

(5/11/2022)
	 	  	 2

(5/11/2023)
	 	  	 1

(5/11/2024)
	 	  	 0

(5/11/2025)
	 
	 	 Share Price Result ($)
	 
	 	9.00	 	  	 	21.9465	 	  	 	17.6966	 	  	 	13.1738	 	  	 	8.0825	 	  	 	2.7720	 	  	 	0.0000	 
	 	10.00	 	  	 	23.9763	 	  	 	19.8948	 	  	 	15.2086	 	  	 	9.9938	 	  	 	4.0763	 	  	 	0.0000	 
	 	11.00	 	  	 	25.8879	 	  	 	21.7865	 	  	 	17.2139	 	  	 	11.8949	 	  	 	5.5862	 	  	 	0.0000	 
	 	12.00	 	  	 	27.6279	 	  	 	23.6937	 	  	 	19.1399	 	  	 	13.7377	 	  	 	7.2350	 	  	 	0.0000	 
	 	13.49	 	  	 	29.9746	 	  	 	26.1722	 	  	 	21.7487	 	  	 	16.5177	 	  	 	9.9114	 	  	 	0.0000	 
	 	15.54	 	  	 	32.7185	 	  	 	29.1753	 	  	 	25.0396	 	  	 	20.0636	 	  	 	13.6317	 	  	 	0.0000	 
	 	17.50	 	  	 	27.9159	 	  	 	24.5959	 	  	 	20.7075	 	  	 	16.0075	 	  	 	10.0119	 	  	 	0.0000	 
	 	20.00	 	  	 	23.2951	 	  	 	20.2728	 	  	 	16.7285	 	  	 	12.4349	 	  	 	7.0821	 	  	 	0.0000	 
	 	22.50	 	  	 	19.8881	 	  	 	17.0867	 	  	 	13.8931	 	  	 	10.0307	 	  	 	5.3063	 	  	 	0.0000	 
	 	25.00	 	  	 	17.3171	 	  	 	14.7634	 	  	 	11.7793	 	  	 	8.3441	 	  	 	4.2049	 	  	 	0.0000	 
	 	27.50	 	  	 	15.2729	 	  	 	12.9201	 	  	 	10.2354	 	  	 	7.1091	 	  	 	3.4778	 	  	 	0.0000	 
	 	30.00	 	  	 	13.6567	 	  	 	11.4904	 	  	 	9.0047	 	  	 	6.1690	 	  	 	2.9789	 	  	 	0.0000	 
	 	35.00	 	  	 	11.2130	 	  	 	9.3676	 	  	 	7.2525	 	  	 	4.9028	 	  	 	2.3541	 	  	 	0.0000	 
	 	40.00	 	  	 	9.5242	 	  	 	7.8883	 	  	 	6.0649	 	  	 	4.0824	 	  	 	1.9879	 	  	 	0.0000	 
	 	45.00	 	  	 	8.2572	 	  	 	6.8101	 	  	 	5.2283	 	  	 	3.5134	 	  	 	1.7360	 	  	 	0.0000	 
	 	50.00	 	  	 	7.2862	 	  	 	6.0057	 	  	 	4.6013	 	  	 	3.0948	 	  	 	1.5493	 	  	 	0.0000	 

 Notwithstanding the foregoing, in no event will the aggregate number of Base Conversion Shares and Additional Conversion
Shares deliverable upon the conversion of this Note exceed, per $1,000 principal amount of this Note, 97.0686 shares of Common Stock.

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