Document:

Loan and Security Agreement, dated February 13, 2012

 Exhibit 10.1 
 LOAN AND SECURITY AGREEMENT 
 This LOAN AND SECURITY AGREEMENT (this
“Agreement”) dated as of February 13, 2012 (the “Effective Date”) among (a) SILICON VALLEY BANK, a California corporation with a loan production office located at 230 West Monroe, Suite 720,
Chicago, Illinois 60606 (“Bank”), and (b) (i) SAGENT PHARMACEUTICALS, INC., a Delaware corporation (“Sagent Delaware”) and (ii) SAGENT PHARMACEUTICALS, a Wyoming corporation
(“Sagent Wyoming”; and together with Sagent Delaware, jointly and severally, individually and collectively, “Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The
parties agree as follows: 
 1 ACCOUNTING AND OTHER TERMS 

Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following
GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or financial requirement set forth in Section 6.7 (or in any related definition) or any other provision in any Loan Document, and either Borrower or
Bank shall so request, Bank and Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP: provided, however, that until so amended, (a) such ratio
or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (b) Borrower shall provide to Bank the financial statements and other documents required under this Agreement, which shall include a
reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. Notwithstanding any other provision contained herein, to the extent that any change in GAAP after the Effective Date results
in leases which are, or would have been, classified as operating leases under GAAP as it exists on the Effective Date being classified as a capital lease under revised GAAP, such change in classification of leases from operating leases to capital
leases shall be ignored for purposes of this Agreement. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall
have the meaning provided by the Code to the extent such terms are defined therein. 
 2 LOAN AND TERMS OF PAYMENT

 2.1 Promise to Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of
all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 
 2.1.1
Revolving Advances. 
 (a) Availability. Subject to the terms and conditions of this Agreement, Bank shall make
Advances not exceeding the Availability Amount. Amounts borrowed under the Revolving Line may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 

(b) Termination; Repayment. The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all
Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable. 
 2.2 Overadvances. If, at any time, the aggregate outstanding principal amount of any Advances exceeds the lesser of either the Revolving Line or the Borrowing Base, Borrower shall
immediately pay to Bank in cash such excess. 
 2.3 Payment of Interest on the Credit Extensions. 

(a) Interest Rate; Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue
interest at a floating per annum rate equal to (x) the Base Rate plus one and one half of one percent (1.50%) or (y) the Eurodollar Rate plus two and one half of one percent (2.50%). Pursuant to the terms hereof, interest on
outstanding Advances shall be paid in arrears on each Interest Payment Date. All accrued but unpaid interest on the Revolving Line shall be due and payable on the Revolving Line Maturity Date. 

(b) Default Rate. At the election of Bank, upon the occurrence and during the continuance of an Event of Default, Obligations
shall bear interest at a rate per annum which is five percentage points (5.0%) above the rate that is otherwise applicable thereto (the “Default Rate”) unless Bank otherwise elects from time to time in

 
its sole discretion to impose a smaller increase. Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without limitation, Bank Expenses) but are
not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations. Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely
payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (c) Adjustment to Interest Rate. (i) Changes to the interest rate of any Credit Extension based on changes to the Base Rate shall be effective on the effective date of any change to the Prime
Rate and/or Federal Funds Rate (as applicable) and to the extent of any such change; and (ii) the interest rate applicable to each Eurodollar Loan shall be determined in accordance with Section 3.6(a) hereunder. Subject to Sections 3.5,
3.6 and 3.7, such rate shall apply during the entire Interest Period applicable to such Eurodollar Loan, and interest calculated thereon shall be payable on the Interest Payment Date applicable to such Eurodollar Loans. 

(d) Computation; 360-Day Year. In computing interest, the date of the making of any Credit Extension shall be included and the
date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. Interest shall be computed on the
basis of a 360-day year for the actual number of days elapsed, except with respect to interest computed under the Prime Rate, which shall be computed based upon the actual number of days occurring during the current calendar year. 

(e) Debit of Accounts. Bank may debit any of Borrower’s deposit accounts, including the Designated Deposit Account, for
principal and interest payments or, upon Bank’s reasonable attempt to notify Borrower, any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 

2.4 Fees. Borrower shall pay to Bank: 

(a) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line Facility Fee”),
payable quarterly, in arrears, on a calendar year basis, commencing on the first (1st) day of the first (1st) full calendar quarter following the calendar quarter in which the Effective Date occurs, in an amount equal to three-tenths of one percent (0.30%) per annum of the average unused portion of the
Revolving Line, as determined by Bank. The unused portion of the Revolving Line, for purposes of this calculation, shall equal the difference between (x) the Revolving Line amount (as it may be reduced from time to time) and (y) the
average for the period of the daily closing balance of the Revolving Line outstanding. Borrower shall not be entitled to any credit, rebate or repayment of any Unused Revolving Line Facility Fee previously earned by Bank pursuant to this Section
notwithstanding any termination of the Agreement or the suspension or termination of Bank’s obligation to make loans and advances hereunder; 
 (b) Early Termination Fees. The Deferred Termination Fee when due hereunder; and 
 (c) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when
due. 
 2.5 Payments. All payments (including prepayments) to be made by Borrower under any Loan Document shall be
made in immediately available funds in Dollars, without setoff or counterclaim, before 12:00 p.m. eastern time on the date when due. Payments of principal and/or interest received after 12:00 p.m. eastern time are considered received at the opening
of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid. 

3 CONDITIONS OF LOANS 
 3.1 Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form
and substance satisfactory to Bank, the following documents: 
 (a) duly executed original signatures to the Loan Documents;

 (b) duly executed original signatures to the Control Agreements; 

 (c) Each Borrower’s Operating Documents and a good standing certificate of each
Borrower, certified by the Secretary of State of the State of Delaware with respect to Sagent Delaware and the Secretary of State of the State of Wyoming with respect to Sagent Wyoming, together with certificates of foreign qualification from each
jurisdiction in which each Borrower is qualified to conduct business, in all cases dated as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (d) Secretary’s Certificate with completed Borrowing Resolutions for each Borrower; 
 (e) a payoff letter from MidCap and SVB; 
 (f) evidence that (i) the Liens
securing existing Indebtedness owed by Borrower to MidCap and/or Bank will be terminated and (ii) the documents and/or filings evidencing the perfection of such Liens, including without limitation any financing statements and/or control
agreements, have or will, concurrently with the initial Credit Extension, be terminated; 
 (g) certified copies, dated as of a
recent date, of financing statement searches, as Bank shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been
or, in connection with the initial Credit Extension, will be terminated or released; 
 (h) a legal opinion of Borrower’s
counsel dated as of the Effective Date together with the duly executed original signature thereto; 
 (i) evidence satisfactory
to Bank that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Bank; and 

(j) payment of the fees and Bank Expenses then due as specified in Section 2.4 hereof. 

For the avoidance of doubt, delivery by Sagent Delaware of stock certificates evidencing its ownership interest in Sagent Wyoming shall
not be a condition to Bank’s obligation to make the initial Credit Extension. 
 3.2 Conditions Precedent to all
Credit Extensions. Bank’s obligations to make each Credit Extension, including the initial Credit Extension, is subject to the following conditions precedent: 
 (a) timely receipt of any Notice of Borrowing and/or Payment/Advance Request; and 

(b) the representations and warranties in this Agreement shall be true, accurate, and complete in all material respects on the date of
the Notice of Borrowing and/or Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Event of
Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in this Agreement remain true, accurate, and
complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that
those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date. 
 3.3 Covenant to Deliver. Borrower agrees to deliver to Bank each item required to be delivered to Bank (a) under Section 3.1 and Section 3.2 of this Agreement as a condition
precedent to the initial Credit Extension, and (b) under Section 3.2 of this Agreement as a condition precedent to each Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item
shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion. 

3.4 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of an
Advance set forth in this Agreement, to obtain an Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. eastern time on the Funding

 
Date of the Advance. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed Notice of Borrowing and/or
Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Bank shall credit Advances to the Designated Deposit
Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. 

3.5 Conversion and Continuation Elections. 
 (a) So long as (i) no Event of Default exists; (ii) Borrower shall not have sent any notice of termination of this Agreement; and (iii) Borrower shall have complied with such customary
procedures as Bank has established from time to time for Borrower’s requests for Eurodollar Loans, Borrower may, upon irrevocable written notice to Bank: 
 (1) elect to convert on any Business Day, Base Rate Loans, in an amount equal to Five Hundred Thousand Dollars ($500,000.00) or any integral multiple of One Hundred Thousand Dollars ($100,000.00) in
excess thereof, into Eurodollar Loans; 
 (2) elect to continue on any Interest Payment Date any Eurodollar Loans maturing on
such Interest Payment Date (or any part thereof in an amount equal to Five Hundred Thousand Dollars ($500,000.00) or any integral multiple of One Hundred Thousand Dollars ($100,000.00) in excess thereof); provided, that if the
aggregate amount of Eurodollar Loans shall have been reduced, by payment, prepayment, or conversion of part thereof, to be less than One Hundred Thousand Dollars ($100,000.00), such Eurodollar Loans shall automatically convert into Base Rate Loans,
and on and after such date the right of Borrower to continue such Eurodollar Loans as, and convert such Eurodollar Loans into, Eurodollar Loans shall terminate; or 
 (3) elect to convert on any Interest Payment Date any Eurodollar Loans maturing on such Interest Payment Date into Base Rate Loans. 

(b) Borrower shall deliver a Notice of Conversion/Continuation in accordance with Section 10 to be received by Bank prior to 12:00
p.m. eastern time (i) at least three (3) Business Days in advance of the Conversion Date or Continuation Date, if any Loans are to be converted into or continued as Eurodollar Loans; and (ii) on the Conversion Date, if any Loans are
to be converted into Base Rate Loans, in each case specifying the: 
 (1) proposed Conversion Date or Continuation Date;

 (2) aggregate amount and Type of the Loans to be converted or continued; 

(3) nature of the proposed conversion or continuation; and 
 (4) duration of the requested Interest Period. 
 (c) all borrowings, conversions
and continuations of Eurodollar Loans and all selections of Interest Periods shall be made pursuant to such elections so that, (a) after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Eurodollar
Tranche shall be equal to Five Hundred Thousand Dollars ($500,000.00) or any integral multiple of One Hundred Thousand Dollars ($100,000.00) in excess thereof and (b) no more than seven (7) Eurodollar Tranches shall be outstanding at any
one time. 
 (d) If upon the expiration of any Interest Period applicable to any Eurodollar Loans, Borrower shall have timely
failed to select a new Interest Period to be applicable to such Eurodollar Loans, Borrower shall be deemed to have elected to convert such Eurodollar Loans into Base Rate Loans. 

(e) Any Eurodollar Loans shall, at Bank’s option, convert into Base Rate Loans in the event that the aggregate principal amount of
the Base Rate Loans which have been previously converted to Eurodollar Loans, or the aggregate principal amount of existing Eurodollar Loans continued, as the case may be, at the beginning of an Interest Period shall at any time during such Interest
Period exceed the Revolving Line. Borrower agrees to pay Bank, upon demand by Bank (or Bank may, at its option, charge the Designated Deposit Account or any other account Borrower maintains with Bank) any amounts required to compensate Bank for any
loss (including loss of anticipated profits), cost, or expense incurred by Bank, as a result of the conversion of Eurodollar Loans to Base Rate Loans pursuant to any of the foregoing. 

 (f) Notwithstanding anything to the contrary contained herein, Bank shall not be required to
purchase United States Dollar deposits in the London interbank market or other applicable Eurodollar Base Rate market to fund any Eurodollar Loans, but the provisions hereof shall be deemed to apply as if Bank had purchased such deposits to fund the
Eurodollar Loans. 
 3.6 Special Provisions Governing Eurodollar Loans. 

Notwithstanding any other provision of this Agreement to the contrary, the following provisions shall govern with respect to Eurodollar
Loans as to the matters covered: 
 (a) Determination of Applicable Interest Rate. As soon as practicable on each Interest
Rate Determination Date, Bank shall determine (which determination shall, absent manifest error in calculation, be final, conclusive and binding upon all parties) the interest rate that shall apply to the Eurodollar Loans for which an interest rate
is then being determined for the applicable Interest Period and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to Borrower. 
 (b) Inability to Determine Applicable Interest Rate. In the event that Bank shall have determined (which determination shall be final and conclusive and binding upon all parties hereto), on any
Interest Rate Determination Date with respect to any Eurodollar Loans, that by reason of circumstances affecting the London interbank market adequate and fair means do not exist for ascertaining the interest rate applicable to such Eurodollar Loan
on the basis provided for in the definition of Eurodollar Base Rate, Bank shall on such date give notice (by facsimile or by telephone confirmed in writing) to Borrower of such determination, whereupon (i) no Loans may be made as, or converted
to, Eurodollar Loans until such time as Bank notifies Borrower that the circumstances giving rise to such notice no longer exist, and (ii) any Notice of Borrowing or Notice of Conversion/Continuation given by Borrower with respect to Loans in
respect of which such determination was made shall be deemed to be rescinded by Borrower. 
 (c) Compensation for Breakage or
Non-Commencement of Interest Periods. Borrower shall compensate Bank, upon written request by Bank (which request shall set forth the manner and method of computing such compensation), for all reasonable losses, expenses and liabilities, if any
(including any interest paid by Bank to lenders of funds borrowed by it to make or carry its Eurodollar Loans and any loss, expense or liability incurred by Bank in connection with the liquidation or re-employment of such funds) such that Bank may
incur: (i) if for any reason (other than a default by Bank or due to any failure of Bank to fund Eurodollar Loans due to impracticability or illegality under Sections 3.7(d) and 3.7(e)) a borrowing or a conversion to or continuation of any
Eurodollar Loan does not occur on a date specified in a Notice of Borrowing or a Notice of Conversion/Continuation, as the case may be, or (ii) if any principal payment or any conversion of any of its Eurodollar Loans occurs on a date prior to
the last day of an Interest Period applicable to such Eurodollar Loan. 
 (d) Assumptions Concerning Funding of Eurodollar
Loans. Calculation of all amounts payable to Bank under this Section 3.6 and under Section 3.5 shall be made as though Bank had actually funded each of its relevant Eurodollar Loans through the purchase of a Eurodollar deposit bearing
interest at the rate obtained pursuant to the definition of Eurodollar Rate in an amount equal to the amount of such Eurodollar Loans and having a maturity comparable to the relevant Interest Period; provided, that Bank may fund
each of its Eurodollar Loans in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes of calculating amounts payable under this Section 3.6 and under Section 3.5. 

(e) Eurodollar Loans after Default. After the occurrence and during the continuance of an Event of Default, unless otherwise
agreed in writing by Bank, (i) Borrower may not elect to have any Loan be made or continued as, or converted into, a Eurodollar Loan after the expiration of any Interest Period then in effect for such Loan and (ii) subject to the
provisions of Section 3.7(c), any Notice of Conversion/Continuation given by Borrower with respect to a requested conversion/continuation that has not yet occurred shall be deemed to be rescinded by Borrower and be deemed a request to convert
or continue Loans referred to therein as Base Rate Loans. 
 3.7 Additional Requirements/Provisions Regarding Eurodollar
Loans. 
 (a) If for any reason (including voluntary or mandatory prepayment or acceleration), Bank receives all or part of
the principal amount of a Eurodollar Loan prior to the last day of the Interest Period for such Eurodollar Loan, Borrower shall immediately notify Borrower’s account officer at Bank and, on demand by Bank, pay Bank the amount (if any) by which
(i) the additional interest which would have been payable on the amount so received had it not been received until the last day of such Interest Period exceeds (ii) the interest which would have been recoverable by Bank by placing the
amount so received on deposit in the certificate of deposit markets, the 

 
offshore currency markets, or United States Treasury investment products, as the case may be, for a period starting on the date on which it was so received and ending on the last day of such
Interest Period at the interest rate determined by Bank in its reasonable discretion. Bank’s determination as to such amount shall be conclusive absent manifest error. 
 (b) Borrower shall pay Bank, within fifteen (15) days of written demand (including a statement of the type described in the immediately succeeding paragraph) by Bank, from time to time such amounts
as Bank may determine to be necessary to compensate it for any costs incurred by Bank that Bank determines are attributable to its making or maintaining of any amount receivable by Bank hereunder in respect of any Loans relating thereto (such
increases in costs and reductions in amounts receivable being herein called “Additional Costs”), in each case resulting from any Regulatory Change which: 

(i) changes the basis of taxation of any amounts payable to Bank under this Agreement in respect of any Eurodollar Loans
(except for Indemnified Taxes paid or reimbursed pursuant to Section 3.8 and the imposition of, or change in the rate with respect to, any Excluded Taxes payable by Bank); 

(ii) imposes or modifies any reserve, special deposit or similar requirements relating to any extensions of credit or
other assets of, or any deposits with, or other liabilities of Bank (including any Eurodollar Loans or any deposits referred to in the definition of Eurodollar Base Rate); or 

(iii) imposes any other condition affecting this Agreement (or any of such extensions of credit or liabilities).

 Bank will notify Borrower of any event occurring after the Effective Date which will entitle Bank to compensation pursuant to
this Section 3.7 as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. Bank will furnish Borrower with a statement setting forth the basis and amount of each request by Bank for compensation
under this Section 3.7. Determinations and allocations by Bank for purposes of this Section 3.7 of the effect of any Regulatory Change on its costs of maintaining its obligations to make Eurodollar Loans, of making or maintaining
Eurodollar Loans, or on amounts receivable by it in respect of Eurodollar Loans, and of the additional amounts required to compensate Bank in respect of any Additional Costs, shall be conclusive absent manifest error. 

(c) If Bank shall determine that the adoption or implementation of any applicable law, rule, regulation, or treaty regarding capital
adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, in each case, after the
Effective Date, or compliance by Bank (or its applicable lending office) with any respect or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank, or comparable agency, has or would have
the effect of reducing the rate of return on capital of Bank or any person or entity controlling Bank (“Bank’s Parent”) as a consequence of its obligations hereunder to a level below that which Bank (or Bank’s Parent)
could have achieved but for such adoption, change, or compliance (taking into consideration policies with respect to capital adequacy) by an amount deemed by Bank to be material, then from time to time, within fifteen (15) days after demand by
Bank, (including a statement of the type described in the last paragraph of clause (b) above), Borrower shall pay to Bank such additional amount or amounts as will compensate Bank for such reduction. A statement of Bank claiming compensation
under this Section 3.7(c) and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive absent manifest error. 
 (d) If, at any time, Bank, in its sole and absolute discretion, determines that (i) the amount of Eurodollar Loans for periods equal to the corresponding Interest Periods are not available to Bank in
the offshore currency interbank markets, or (ii) the Eurodollar Base Rate does not accurately reflect the cost to Bank of lending the Eurodollar Loans, then Bank shall promptly give notice thereof to Borrower. Upon the giving of such notice,
Bank’s obligation to make the Eurodollar Loans shall be suspended until Bank revokes such notice; provided, however, Eurodollar Loans shall not be suspended if Bank and Borrower agree in writing to a different interest rate
applicable to Eurodollar Loans. 
 (e) If it shall become unlawful for Bank to continue to fund or maintain any Eurodollar
Loans, or to otherwise perform its obligations with respect to Eurodollar Loans, upon demand by Bank, Borrower shall prepay the Eurodollar Loans in full with accrued interest thereon and all other amounts payable by Borrower hereunder (including,
without limitation, any amount payable in connection with such prepayment pursuant to Section 3.7(a)). Notwithstanding the foregoing, to the extent a determination by Bank as described above relates to a Eurodollar Loan then being requested by
Borrower pursuant to a Notice of Borrowing or a Notice of Conversion/Continuation, 

 
Borrower shall have the option, subject to the provisions of Section 3.5(c), to (i) rescind such Notice of Borrowing or Notice of Conversion/Continuation by giving notice (by facsimile
or by telephone confirmed in writing) to Bank of such rescission on the date on which Bank gives notice of its determination as described above, or (ii) modify such Notice of Borrowing or Notice of Conversion/Continuation to obtain a Base Rate
Loan or to have outstanding Loans converted into or continued as Base Rate Loans by giving notice (by facsimile or by telephone confirmed in writing) to Bank of such modification on the date on which Bank gives notice of its determination as
described above. 
 3.8 Taxes. 
 (a) All payments of principal and interest on the Credit Extensions and all other amounts payable hereunder shall be made free and clear of and without deduction for any present or future income, excise,
stamp, documentary, payroll, employment, property or franchise taxes and other taxes, fees, duties, levies, assessments, withholdings or other charges of any nature whatsoever (including interest and penalties thereon) imposed by any taxing
authority, excluding (i) taxes imposed on or measured by Bank’s income (and franchise taxes solely to the extent imposed in lieu thereof) by the jurisdictions (or any political subdivisions thereof) under which Bank is organized or in
which its principal office or applicable lending office is located or in which it conducts business (other than solely as the result of entering into any of the Loan Documents or taking any action thereunder), (ii) taxes imposed by a
jurisdiction as a result of a present or former connection between Bank and the jurisdiction of the governmental authority imposing such tax (other than any such connection arising solely from Bank having executed, delivered or performed its
obligations or received a payment under, or enforced, any Loan Document), (iii) any branch profits taxes imposed by the United States or any similar taxes imposed by another jurisdiction in which the Borrower is located, (iv) any taxes
imposed on or required to be withheld with respect to Bank as a result of Bank’s failure to comply with Section 3.8(c), (v) any withholding tax that is imposed on amounts payable to an assignee, pursuant to Section 12.1, of Bank,
pursuant to the laws in effect at the time such assignee becomes a party to this Agreement, except to the extent Bank was entitled, at the time of such assignment, to receive additional amounts from Borrower with respect to such taxes pursuant to
this Section 3.8, or (iv) any U.S. federal withholding taxes imposed by FATCA (all excluded items being called “Excluded Taxes” and all non-excluded items being called “Indemnified Taxes”). If any
withholding or deduction from any payment to be made by Borrower hereunder is required in respect of any Indemnified Taxes pursuant to any applicable law, then Borrower will: (i) pay directly to the relevant authority the full amount required
to be so withheld or deducted; (ii) within thirty (30) days, forward to Bank an official receipt or other documentation satisfactory to Bank evidencing such payment to such authority; and (iii) within thirty (30) days, pay to
Bank such additional amount or amounts as is necessary to ensure that the net amount actually received by Bank will equal the full amount Bank would have received had no such withholding or deduction been required. If any Indemnified Taxes are
directly asserted against Bank with respect to any payment received by Bank hereunder, Bank may pay such Indemnified Taxes and Borrower will, within thirty (30) days after receiving written notice thereof, pay such additional amounts (including
any penalty, interest or expense) as are necessary in order that the net amount received by Bank after the payment of such Indemnified Taxes (including any Indemnified Taxes on such additional amount) shall equal the amount Bank would have received
had such Indemnified Taxes not been asserted. 
 (b) If Borrower fails to pay any Indemnified Taxes when due to the appropriate
taxing authority or fails to remit to Bank the required receipts or other required documentary evidence, Borrowers shall indemnify Bank for any incremental Indemnified Taxes, interest or penalties that may become payable by Bank as a result of any
such failure. 
 (c) If Bank is entitled to an exemption from or reduction of withholding tax with respect to payments made
under any Loan Document, Bank shall deliver to Borrower from time to time as requested by Borrower to the extent required by applicable law, two original copies of properly completed and executed documentation as will permit such payments to be made
without withholding or at a reduced rate of withholding, provided Bank is legally entitled to complete, execute and deliver such documentation and in Bank’s judgment, such completion, execution and delivery would not materially prejudice the
legal position of Bank. In addition, Bank shall deliver such other documentation prescribed by applicable law as will enable Borrower to determine whether or not Bank is subject to backup withholding or information reporting requirements.

 (i) If required by applicable law, Bank shall deliver to Borrower, one or more properly completed and executed originals of
IRS Form W-9 certifying that Bank is exempt from U.S. federal backup withholding tax. 
 (ii) If required by applicable law, any
assignee of Bank that is not a United States Person under Section 7701(a)(30) of the Tax Code shall execute and deliver to Borrower on or prior the 

 
date on which such assignee becomes a party to this Agreement, one or more IRS Forms W-8ECI, W-8EXP, W-8BEN, W-8IMY (as applicable) and other applicable forms, certificates or documents
prescribed by the United States Internal Revenue Service certifying as to such assignee’s entitlement to a complete exemption from withholding or deduction of any taxes. 
 (iii) If a payment made to Bank under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if Bank were to fail to comply with the applicable reporting requirements of FATCA
(including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), Bank shall deliver to Borrower at the time or times prescribed by law such documentation prescribed by applicable law (including as
prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) as may be necessary for Borrower to comply with their obligations under FATCA and to determine that Bank has complied with Bank’s obligations under FATCA or to determine
the amount to deduct and withhold from such payment. Solely for purposes of this clause (ii), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

Borrower shall not be required to pay additional amounts to Bank pursuant to this Section 3.8 with respect to any United States
withholding taxes that are Indemnified Taxes to the extent that the obligation to pay such additional amounts would not have arisen but for the failure of Bank to comply with this paragraph (c). 

(d) The obligations of Borrower and Bank under this Section 3.8 are binding on any assignee of this Agreement under
Section 12.1, including any Lender. 
 4 CREATION OF SECURITY INTEREST 

4.1 Grant of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the
Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. 

Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank. Regardless
of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first
priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that are expressly permitted hereunder to have superior priority to Bank’s Lien in this Agreement). 

If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity
obligations) are satisfied in full, and, at such time, the security interest in the Collateral shall automatically terminate and all rights therein shall revert to Borrower and at Borrower’s sole cost and expense, Bank shall evidence
such termination and release as Borrower shall reasonably request. In the event (a) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (b) this Agreement is terminated, Bank
shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment for Bank Services, if any. In the event such Bank Services consist of outstanding Letters of Credit,
Borrower shall provide to Bank cash collateral in an amount equal to the sum of (i) one hundred-two percent (102.0%) of the face amount of all such Letters of Credit denominated in Dollars, plus (ii) one hundred-seven percent
(107.0%) of the Dollar Equivalent of the face amount of all such Letters of Credit denominated in Foreign Currency, plus, in each case, all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good
faith business judgment), to secure all of the Obligations relating to such Letters of Credit. 
 Any Collateral no longer owned
by Borrower pursuant to Section 7.1 shall be free of all Liens on such Collateral granted to Bank and such Liens shall be deemed to be released and terminated. At Borrower’s sole cost and expense, Bank shall promptly provide evidence of
such termination and release as Borrower shall reasonably request by amending any financing statements and all other notices of Liens previously filed by Bank to release or terminate the Liens on such Collateral. 

4.2 Priority of Security Interest. Borrower represents, warrants, and covenants that the security interest granted herein
is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that are expressly permitted hereunder to have superior priority to Bank’s Lien under this Agreement), if
and to the extent perfection may be achieved, as pertaining to the Intellectual Property of Borrower, by the filing of financing statements under the UCC in the applicable jurisdictions and the

 
recording of security agreements with the U.S. Copyright Office. If Borrower shall acquire a commercial tort claim with a value in excess of Two Hundred Fifty Thousand Dollars ($250,000.00),
Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to
be in form and substance reasonably satisfactory to Bank. 
 4.3 Authorization to File Financing Statements.
Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder. Such financing statements may indicate the Collateral as
“all assets of the Debtor” or words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Bank’s discretion. 
 5 REPRESENTATIONS AND WARRANTIES 
 Borrower represents and warrants
as follows: 
 5.1 Due Organization, Authorization; Power and Authority. Each of Borrower and each of its
Subsidiaries is duly existing and in good standing as a Registered Organization, if applicable, in its jurisdiction of incorporation or formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the
conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement,
each Borrower has delivered to Bank a completed certificate signed by such Borrower, entitled “Perfection Certificate” (individually and collectively, the “Perfection Certificate”). Borrower represents and warrants to Bank
that, except as notified by Borrower to Bank in writing in accordance with Section 7.2: (a) each Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) each Borrower is
an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth each Borrower’s organizational identification number or accurately states that
such Borrower has none; (d) the Perfection Certificate accurately sets forth each Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief
executive office); (e) except as set forth in the Perfection Certificate, each Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any
organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete in all material respects (it being understood
and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement). If Borrower is not now a Registered
Organization but later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with Borrower’s organizational identification number. The execution, delivery and performance by Borrower of the Loan Documents to which
it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law,
(iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or
affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect),
or (v) constitute an event of default under any material agreement by which Borrower is bound, in each of clauses (ii) through (v) above, except as could not reasonably be expected to have a material adverse effect on Borrower’s
business. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s business. 

5.2 Collateral. Borrower has good title to, or valid leasehold interests, or license to, or has a right to use, has rights
in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the deposit accounts with Bank, the
deposit accounts, if any, described in the Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to give Bank a perfected security interest therein. The
Accounts are bona fide, existing obligations of the Account Debtors. No portion of the Collateral in excess of Five Hundred Thousand Dollars ($500,000.00) in the aggregate is in the possession of any third party bailee (such as a warehouse) except
as otherwise provided in the Perfection Certificate. None of the components of the Collateral in excess of Five Hundred Thousand Dollars ($500,000.00) in the aggregate shall be maintained at locations other than as provided in the Perfection
Certificate or as permitted pursuant to Section 7.2, other than Inventory and Equipment in transit, in the ordinary course of Borrower’s business. All Inventory is in all material respects of good and marketable quality, free from material
defects. Borrower is the sole owner of the Intellectual Property which it owns or purports to own. Each Patent which it owns 

 
or purports to own and which is material to Borrower’s business is, to the best of Borrower’s knowledge, valid and enforceable, and no part of the Intellectual Property which Borrower
owns or purports to own and which is material to Borrower’s business has been judged invalid or unenforceable, in whole or in part. To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property
violates the rights of any third party except to the extent such claim would not reasonably be expected to have a material adverse effect on Borrower’s business. Except as noted on the Perfection Certificate, Borrower is not a party to, nor is
it bound by, any Restricted License (other than for any commercially available, over-the-counter software). 
 5.3 Accounts
Receivable; Inventory. For any Eligible Account in any Borrowing Base Certificate, all statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing such Eligible Accounts are and shall be true and
correct and all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all respects what they purport to be. If an Event of Default has occurred and is continuing, Bank may notify any Account Debtor owing
Borrower money of Bank’s security interest in such funds and verify the amount of such Eligible Account. All sales and other transactions underlying or giving rise to each Eligible Account shall comply in all material respects with all
applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are Eligible Accounts in any Borrowing Base Certificate. To the best of
Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with
their terms. For any item of Inventory consisting of “Eligible Inventory” in any Borrowing Base Certificate, such Inventory (a) consists of finished goods, in salable condition, which is not perishable, returned, consigned, obsolete,
not sellable, damaged, or defective, and is not comprised of demonstrative or custom inventory, works in progress, packaging or shipping materials, or supplies; (b) meets all applicable governmental standards having jurisdiction over such
Inventory; (c) has been manufactured in compliance with the Fair Labor Standards Act; (d) is not subject to any Liens, except the first priority Liens granted or in favor of Bank under this Agreement or any of the other Loan Documents; and
(e) is located at the locations identified by Borrower in the Perfection Certificate where it maintains Inventory (or at any location permitted under Section 7.2). 
 5.4 Litigation. Except as disclosed in writing to Bank as required by Section 6.2(j), there are no actions or proceedings pending or, to the knowledge of the Responsible Officers,
threatened in writing by or against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or its Subsidiaries in an amount exceeding, individually or in the aggregate, One Million Dollars
($1,000,000.00). 
 5.5 Financial Statements; Financial Condition. All consolidated financial statements for
Borrower and any of its Subsidiaries delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any material deterioration in
Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 

5.6 Solvency. The fair salable value (on a going concern basis) of Borrower’s assets (including goodwill minus
disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 

5.7 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an
“investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of
Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a
“subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be
expected to have a material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons,
in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and
given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted, except where the failure to obtain such consents, approvals and/or authorizations could not reasonably be expected
to have a material adverse effect on Borrower’s business. 

 5.8 Subsidiaries; Investments. Borrower does not own any stock, partnership
interest or other equity securities except for Permitted Investments. 
 5.9 Tax Returns and Payments; Pension
Contributions. Borrower has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower, except for taxes, assessments,
deposits and contributions in an aggregate amount not exceeding Five Hundred Thousand Dollars ($500,000.00) in the aggregate. Borrower may defer payment of any contested taxes in an aggregate amount not to exceed Five Hundred Thousand Dollars
($500,000.00), provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted and (b) retains reserves for such taxes on its balance sheet as
required by GAAP. Except as disclosed in writing to Bank, Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower in an
aggregate amount in excess of Five Hundred Thousand Dollars ($500,000.00). Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not
withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower in
excess of Five Hundred Thousand Dollars ($500,000.00), including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 5.10 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions to payoff in full the Existing MidCap Loans and as working capital and to fund its general business
requirements and not for personal, family, household or agricultural purposes. 
 5.11 Full Disclosure. No written
representation, warranty or other written statement of Borrower in any certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and
written statements given to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading in any material respect when taken as a
whole (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon assumptions believed by management of Borrower to be reasonable in light of the facts known by Borrower at such time are not
viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ materially from the projected or forecasted results). 
 5.12 Definition of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the
“best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers. 

6 AFFIRMATIVE COVENANTS 
 Borrower shall do all of the following: 
 6.1 Government Compliance.

 (a) Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of
formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary
comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business. 
 (b) Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Bank in
all of the Collateral. Borrower shall promptly provide copies of any such Governmental Approvals to Bank upon request by Bank. 

6.2 Financial Statements, Reports, Certificates. Deliver to Bank: 

(a) Borrowing Base Reports. Within thirty (30) days after the last day of each month, (i) aged listings of accounts
receivable and accounts payable (by invoice date) and (ii) perpetual inventory reports for the Inventory valued on a first-in, first-out basis at the lower of cost or market (in accordance with GAAP or such other inventory reports as are
requested by Bank in its good faith business judgment (the “Borrowing Base Reports”); 

 (b) Borrowing Base Certificate. Within thirty (30) days after the last day of
each month and together with the Borrowing Base Reports, a duly completed Borrowing Base Certificate signed by a Responsible Officer; 
 (c) Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated balance sheet and income statement
covering Borrower’s consolidated operations for such month certified by a Responsible Officer and in a form acceptable to Bank (the “Monthly Financial Statements”); 

(d) Monthly Compliance Certificate. Concurrently with the delivery of the Monthly Financial Statements, a duly completed
Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement as set forth in the Compliance Certificate, and setting forth
calculations showing compliance with the financial covenants set forth in Section 6.7 and such other information as Bank shall reasonably request; 
 (e) Annual Audited Financial Statements. As soon as available, but no later than one hundred twenty (120) days after the last day of Borrower’s fiscal year, audited consolidated financial
statements prepared in accordance with GAAP (except as calculations may vary from GAAP pursuant to Section 1 of this Agreement), consistently applied except as explained in an accompanying letter or footnotes, together with an unqualified
opinion on the financial statements from Ernst & Young or another independent certified public accounting firm acceptable to Bank in its reasonable discretion (the “Annual Financial Statements”); 

(f) Annual Compliance Certificate. Concurrently with the delivery of the Annual Financial Statements, a duly completed Compliance
Certificate signed by a Responsible Officer, certifying that as of the end of such fiscal year, Borrower was in full compliance with all of the terms and conditions of this Agreement as set forth in the Compliance Certificate, and setting forth
calculations showing compliance with the financial covenants set forth in Section 6.7 and such other information as Bank shall reasonably request; 
 (g) Board-Approved Projections. As soon as available, but no later than thirty (30) days after the last day of each fiscal year of Borrower, and contemporaneously with any updates or changes
thereto, (i) annual operating budgets (including, without limitation, quarterly income statements, balance sheets and cash flow statements) for the current fiscal year of Borrower, and (ii) annual financial projections for the current
fiscal year of Borrower as approved by the Board, together with any related business forecasts used in the preparation of such annual financial projections, all prepared in a form satisfactory to Bank in its reasonable discretion; 

(h) [Reserved]; 

(i) SEC Filings. Within five (5) days of filing, copies of all periodic and other reports, proxy statements and other
materials filed by Borrower with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required to be
delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which
Borrower posts such documents, or provides a link thereto, on Borrower’s website on the Internet at Borrower’s website address; 
 (j) Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or
costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, One Million Dollars ($1,000,000.00) or more; 

(k) Intellectual Property Notice. (i) Concurrently with the delivery of each Monthly Compliance Certificate and Annual
Compliance Certificate, (A) written notice of any material change in the composition of the Intellectual Property, (B) written notice of the registration of any Copyright, including any subsequent ownership right of Borrower in or to any
registered Copyright not shown in the IP Security Agreement, and (C) the registration of any Patent and/or Trademark, including any subsequent ownership right of Borrower in or to any Patent and/or Trademark not shown in the IP Security
Agreement, and (ii) prompt written notice of Borrower’s knowledge of an event that could reasonably be expected to materially and adversely affect the value of the Intellectual Property; 

 (l) [Reserved]; and 

(m) Governmental Authorities. Within five (5) days after the same are sent or received, to the extent not prohibited by
applicable law, copies of all correspondence, reports, documents and other filings with any Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have
a material effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries. 

6.3 Inventory; Returns. Keep all Inventory in good and marketable condition, free from material defects (ordinary wear and
tear, casualty and condemnation excepted). Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date (as modified from time to time in Borrower’s
reasonable business judgment, as approved by Bank in its reasonable discretion). Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than Five Hundred Thousand Dollars ($500,000.00). 

6.4 Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax returns and reports
and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes
contested or otherwise permitted pursuant to the terms of Section 5.9 hereof, and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing
and deferred compensation plans in accordance with their terms, except as otherwise permitted pursuant to the terms of Section 5.9 hereof. 
 6.5 Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request.
Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank, it being acknowledged that Borrower’s and its Subsidiaries’ insurance coverage existing on the Effective Date is satisfactory to Bank. All
property policies shall have a lender’s loss payable endorsement showing Bank as the sole loss payee and waive subrogation against Bank and shall provide that the insurer must give Bank at least thirty (30) days notice (ten (10) days
in the case of nonpayment of premium) before canceling, amending, or declining to renew its policy. All liability policies shall show, or have endorsements showing, Bank as an additional insured, and all such policies (or the lender loss payable and
additional insured endorsements) shall provide that the insurer shall give Bank at least thirty (30) days notice (ten (10) days in the case of nonpayment of premium) before canceling, amending, or declining to renew its policy. At
Bank’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. If Borrower fails to
obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this
Section 6.5, and take any action under the policies Bank deems prudent. 
 6.6 Operating Accounts. 

(a) Within ninety (90) days after the Effective Date (“Bank Account Transition Date”), maintain all of its, and its
Subsidiaries and its parent’s primary depository accounts and operating accounts (other than its lockbox and collection services accounts) with Bank and Bank’s Affiliates, which accounts maintained in the name of the Borrower shall
represent greater than fifty percent (50%) of the aggregate dollar value of Borrower’s and its Subsidiaries’ and its parents accounts at all financial institutions. In addition, within one hundred eighty (180) days after the
Effective Date (as such period may be extended in writing by Bank, in its sole discretion). Borrower shall maintain its lockbox and collection services accounts at Bank; provided that from the Bank Account Transition Date through the date such
lockbox and collection services accounts are maintained at Bank, the amounts maintained in such lockbox and collection services accounts shall be transferred to accounts maintained by Borrower at Bank by 2:00 p.m. on Friday of each week. 

(b) Provide Bank five (5) days prior-written notice before establishing any Collateral Account at or with any bank or financial
institution other than Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is
maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may
not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to (i) deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the
benefit of Borrower’s employees and identified to Bank by Borrower as such (the “Excluded Accounts”), and (ii) other deposit accounts provided the proceeds held in all such accounts does not exceed Five Hundred Thousand
Dollars ($500,000.00) in the aggregate. 

 6.7 Financial Covenants. Maintain at all times, on a consolidated basis with
respect to Borrower and its Subsidiaries: 
 (a) Adjusted Quick Ratio. An Adjusted Quick Ratio of at least (i) prior
to the occurrence of the Positive Free Cash Flow Event, 1.00 to 1.00, and (ii) on and after the occurrence of the Positive Free Cash Flow Event, 0.75 to 1.00, to be tested as of the last day of each month; and 

(b) Free Cash Flow. Free Cash Flow of at least (i) ($2,000,000.00) for each of the calendar quarters ending March 31,
2012 and June 30, 2012, and (ii) $2,000,000.00 for each calendar quarter thereafter, to be tested in each case as of the last day of each calendar quarter. 
 6.8 Protection and Registration of Intellectual Property Rights. 
 (a) Use
commercially reasonable efforts to (i) protect, defend and maintain the validity and enforceability of its Intellectual Property, other than Intellectual Property that in Borrower’s reasonable judgment is not necessary or material to
Borrower’s business; (ii) promptly advise Bank in writing of material infringements of its Intellectual Property of which Borrower becomes aware; and (iii) not allow any Intellectual Property material to Borrower’s business to be
abandoned, forfeited or dedicated to the public without Bank’s written consent. 
 (b) If Borrower (i) obtains any
Patent, registered Trademark, registered Copyright, registered mask work, or any pending application for any of the foregoing, as owner, or (ii) applies for any Patent or the registration of any Trademark, then Borrower shall promptly provide
written notice thereof to Bank and shall for such registered Intellectual Property (excluding any “intent to use” Trademark applications for which a statement of use has not been filed and accepted with the U.S. Patent and Trademark
Office) and execute such intellectual property security agreements and other documents and take such other actions as Bank shall request in its good faith business judgment to perfect and maintain a first priority perfected security interest in
favor of Bank in such property (if and to the extent perfection may be achieved, as pertaining to such property, by the filing of financing statements under the UCC in the applicable jurisdictions and the recording of security agreements with the
U.S. Copyright Office). If Borrower decides to register any Copyrights or mask works in the United States Copyright Office, Borrower shall: (x) provide Bank with at least fifteen (15) days prior written notice of Borrower’s intent to
register such Copyrights or mask works together with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); (y) execute an intellectual property security agreement and such other
documents and take such other actions as Bank may request in its good faith business judgment to perfect and maintain a first priority perfected security interest in favor of Bank in the Copyrights or mask works intended to be registered with the
United States Copyright Office (if and to the extent perfection may be achieved, as pertaining to such Copyrights or mask works, by the filing of financing statements under the UCC in the applicable jurisdictions and the recording of security
agreements with the U.S. Copyright Office); and (z) record such intellectual property security agreement with the United States Copyright Office within ten (10) days of filing the Copyright or mask work application(s) with the United
States Copyright Office. Borrower shall promptly provide to Bank copies of all applications that it files for Patents or for the registration of Trademarks, Copyrights or mask works, together with evidence of the recording of the intellectual
property security agreement necessary for Bank to perfect and maintain a first priority perfected security interest in such property (if and to the extent perfection may be achieved, as pertaining to such property, by the filing of financing
statements under the UCC in the applicable jurisdictions and the recording of security agreements with the U.S. Copyright Office). 
 (c) Provide written notice to Bank within thirty (30) days of entering or becoming bound by any Restricted License (other than a license for over-the-counter software that is commercially available
to the public). Borrower shall take such commercially reasonable steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral”
and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Bank to have the ability in the
event of a liquidation of any Collateral to dispose of such Collateral in accordance with Bank’s rights and remedies under this Agreement and the other Loan Documents. 
 6.9 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers,
employees and agents and Borrower’s books and records (other than information that is subject to attorney-client privilege or other information that Borrower is not permitted by statute, regulation or court order to disclose), to the extent
that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 

 6.10 Access to Collateral; Books and Records. Allow Bank, or its agents, at
reasonable times, on five (5) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy Borrower’s Books, provided that Borrower shall
not be required to make available to Bank under this Section 6.10 information that is subject to attorney-client privilege or other information that Borrower is not permitted by statute, regulation or court order to disclose. Such inspections
or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing. The foregoing inspections and audits shall be at Borrower’s expense, and the charge therefor shall be
Eight Hundred Fifty Dollars ($850.00) per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses. 

6.11 Formation or Acquisition of Subsidiaries. At the time that Borrower or any Guarantor forms any direct or indirect
Subsidiary or acquires any direct or indirect Subsidiary after the Effective Date, Borrower and such Guarantor shall (a) cause such new Subsidiary that is either (i) a Domestic Subsidiary or (ii) a Foreign Subsidiary which has assets
with an aggregate value of at least Ten Million Dollars ($10,000,000.00), to provide to Bank a joinder to this Agreement to cause such Subsidiary to become a co-borrower or secured Guarantor hereunder, together with such appropriate security
interests, financing statements and/or Control Agreements, all in form and substance satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject only to Permitted Liens that are expressly permitted to have superior
priority to Bank’s Lien under this Agreement) in and to the assets of such newly formed or acquired Subsidiary), (b) provide to Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial
ownership interest in such new Subsidiary, in form and substance satisfactory to Bank; provided that, in the event such Subsidiary is organized outside the United States and the aggregate value of such Subsidiary’s assets is less
than Ten Million Dollars ($10,000,000.00), such pledge shall be limited to sixty-five percent (65.0%) of the outstanding voting interests in such Subsidiary, and (c) provide to Bank all other documentation in form and substance
satisfactory to Bank, including one or more opinions of counsel satisfactory to Bank, which in Bank’s sole discretion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document,
agreement, or instrument executed or issued by any Borrower or Guarantor pursuant to this Section 6.11 shall be a Loan Document. 
 6.12 Post-Closing Conditions. On or prior to the date thereof is thirty (30) days after the Effective Date (as such period may be extended in writing by Bank, in its sole discretion),
(a) the Initial Audit, with results satisfactory to Bank in its sole discretion, shall occur, (b) Borrower shall use commercially reasonable efforts to deliver to Bank, in form and substance satisfactory to Bank in its sole discretion,
landlord consents with respect to each of Borrower’s leased locations executed by Borrower and the landlord of each such location, (c) Borrower shall deliver to Bank, in form and substance satisfactory to Bank in its sole discretion,
Control Agreements executed by each of UBS and Bank of America in favor of Bank which provides Bank a first priority perfected security interest in Borrower’s accounts maintained at each of UBS and Bank of America, and (d) Borrower shall
deliver to Bank, in form and substance satisfactory to Bank in its sole discretion, a bailee waiver in favor of Bank with respect to Collateral in possession of DDN Memphis, executed by Borrower and DDN Memphis. 

6.13 Further Assurances. Execute any further instruments and take further action as Bank reasonably requests to perfect or
continue Bank’s Lien in the Collateral (if and to the extent perfection may be achieved, as pertaining to the Intellectual Property of Borrower, by the filing of financing statements under the UCC in the applicable jurisdictions and the
recording of security agreements with the U.S. Copyright Office) or to effect the purposes of this Agreement. 
 7
NEGATIVE COVENANTS 
 Borrower shall not do any of the following without Bank’s prior written consent:

 7.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively,
“Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of surplus, worn-out or obsolete
Equipment; (c) in connection with Permitted Liens and Permitted Investments; (d) of exclusive and non-exclusive licenses for the use of the property of Borrower or its Subsidiaries each in the ordinary course of business;
(e) dispositions of cash and Cash Equivalents in the ordinary course of business; (f) the discount or write-off of accounts receivable or the sale of any such account receivables for the purpose of collection to any collection agency, in
each case in the ordinary course of business; (g) leases and subleases and any terminations thereof in the ordinary course of business and in amount and in a manner consistent with past practices; (h) abandonment of Intellectual Property
that, in management’s reasonable judgment, is not necessary or material, in the ordinary course of business; and (i) other dispositions not to exceed Five Hundred Thousand Dollars ($500,000.00) in the aggregate per fiscal year. 

 7.2 Changes in Business, Management, Ownership, or Business Locations.
(a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto or supplemental or complementary thereto or
reasonable extensions thereof; (b) liquidate or dissolve except as permitted by Section 7.3; or (c) have a change in management such that any Key Person to ceases to be actively engaged in the management of Borrower if a replacement
(including a person serving in an interim capacity) satisfactory to Borrower’s Board of Directors is not made within ninety (90) days after such Key Person’s departure from Borrower. Borrower shall not, without at least thirty
(30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Ten Thousand Dollars ($10,000.00) in Borrower’s assets or
property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Twenty Five Thousand Dollars ($25,000.00) to a bailee at a location other than to a bailee and at a location already disclosed in the
Perfection Certificate, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of
organization. If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Twenty Five Thousand Dollars ($25,000.00) to a bailee, and Bank and such bailee are not already parties to a bailee
agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower will first receive the written consent of Bank, and such bailee shall execute and deliver a bailee agreement in form and
substance satisfactory to Bank in its sole discretion. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or
permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except for Permitted Acquisitions.
A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 
 7.4 Indebtedness. Create,
incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 

7.5 Encumbrance. Create, incur, allow, or suffer any Lien on any of the Collateral, or assign or convey any right to
receive income, including the sale of any Accounts (except as permitted by Section 7.1), or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest
granted herein (except with respect to Permitted Liens, if any, that may expressly have superiority to Bank’s Lien under the terms of this Agreement), or enter into any agreement, document, instrument or other arrangement (except with or in
favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or
any Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6(b) hereof. 

7.7 Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire or
purchase any capital stock, provided, however, that the following distributions may be made: (i) at any time, dividends may be paid by any Subsidiary of Borrower to Borrower or among Borrowers, (ii) Borrower may pay dividends solely
in common stock, and (iii) Borrower may make payments in amounts necessary to permit the repurchase of the stock of former employees, directors or consultants pursuant to stock repurchase agreements in an amount not to exceed One Hundred Fifty
Thousand Dollars ($150,000.00) in the aggregate per fiscal year, or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. 

7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any
Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a
non-affiliated Person. 
 7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt,
except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt in violation of the applicable
subordination, intercreditor or similar agreement. 

 7.10 Compliance. Become a company required to be registered as an
“investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as
defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited
Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business,
or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit
sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, except as otherwise permitted pursuant to the terms of Section 5.9 hereof, including any liability to the Pension Benefit Guaranty
Corporation or its successors or any other governmental agency. 
 8 EVENTS OF DEFAULT 

Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

8.1 Payment Default. Borrower fails to (a) make any payment of principal on any Credit Extension on its due date, or
(b) pay interest or any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Revolving Line Maturity Date). During
the cure period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event of Default (but no Credit Extension will be required to be made during the cure period); 

8.2 Covenant Default. 
 (a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, 6.7, 6.8(c), 6.10, 6.11 or 6.12, or violates any covenant in Section 7; or 

(b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this
Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days
after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and
such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure
to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be required to be made during such cure period). Cure periods provided under this section shall not apply, among other things, to financial covenants or any
other covenants set forth in clause (a) above; 
 8.3 [Reserved] 

8.4 Attachment; Levy; Restraint on Business. 
 (a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under the control of Borrower (including a Subsidiary) on deposit or otherwise
maintained with Bank or any Bank Affiliate, or (ii) a notice of lien or levy is filed against any of Borrower’s assets with a fair market value of Two Hundred Thousand Dollars ($200,000.00) or more by any government agency, and the same
under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be
made during any ten (10) day cure period; or 
 (b) (i) any material portion of Borrower’s assets is attached, seized,
levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business; 

8.5 Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise
becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within forty-five (45) days (but no Credit Extensions shall be made while of any of
the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 

 8.6 Other Agreements. There is, under any agreement to which Borrower is a
party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of Five
Hundred Thousand Dollars ($500,000.00); or (b) a default by Borrower, the result of which could have a material adverse effect on Borrower’s business; 
 8.7 Judgments. One or more final judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least Five Hundred Thousand Dollars
($500,000.00) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower and the same are not, within twenty (20) days after the entry thereof,
discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no Credit Extensions will be made prior to the discharge, stay, or bonding of such
judgment, order, or decree); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any
written representation, warranty, or other written statement with respect to this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or
other statement is incorrect in any material respect when made; 
 8.9 Subordinated Debt. Any document,
instrument, or agreement evidencing the subordination of any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall contest in any manner the validity or enforceability of
any such document or deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement; 

8.10 Guaranty. (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force and effect;
(b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 8.4, 8.5, 8.7, or 8.8 occurs with respect to any Guarantor, (d) the death, liquidation,
winding up, or termination of existence of any Guarantor (except as permitted by Section 7.3); or (e) a material impairment in the perfection or priority of Bank’s Lien in the collateral provided by Guarantor or in the value of such
collateral; or 
 8.11 Governmental Approvals. Any Governmental Approval shall have been (a) revoked,
rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any
of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and in each of clauses (a) and (b), such decision or such revocation, rescission, suspension,
modification or non-renewal (i) has, or could reasonably be expected to have, a material adverse effect on Borrower’s business, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such
Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to have a material adverse effect on Borrower’s business. 

9 BANK’S RIGHTS AND REMEDIES 
 9.1 Rights and Remedies. While an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 

(a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations
are immediately due and payable without any action by Bank); 
 (b) stop advancing money or extending credit for Borrower’s
benefit under this Agreement or under any other agreement between Borrower and Bank; 
 (c) for any Letters of Credit, demand
that Borrower (i) deposit cash with Bank in an amount equal to one hundred five percent (102.0%) of the aggregate face amount of all Letters of Credit remaining undrawn denominated in Dollars and one hundred eight percent (107.0%) of
the Dollar Equivalent of the aggregate face amount of all Letters of Credit remaining undrawn denominated in Foreign Currency (plus all interest, fees, and 

 
costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral
security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term
of any Letters of Credit; 
 (d) terminate any FX Forward Contracts; 

(e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers
advisable, notify any Person owing Borrower money of Bank’s security interest in such funds, and verify the amount of such account; 
 (f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Bank requests
and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior
to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies; 

(g) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or
for the credit or the account of Borrower; 
 (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale,
advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade
names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this
Section, Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; 
 (i) place a
“hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any
Collateral; 
 (j) demand and receive possession of Borrower’s Books; and 

(k) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided
under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2 Power of Attorney.
Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable only upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or
security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on
terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or
any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful
attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been
satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable
until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 

9.3 Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay any
premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may, upon notice to Borrower provided no Event of Default has occurred and is continuing, obtain such insurance
or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Bank will make reasonable efforts to
provide Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of
Default. 

 9.4 Application of Payments and Proceeds Upon Default. If an Event of Default
has occurred and is continuing, Bank may apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the
Obligations in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If Bank, in its good faith business
judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount
of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 

9.5 Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the
safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the
value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person, except in each case as a result of Bank’s gross negligence or willful misconduct. As between Bank and Borrower, Borrower bears all
risk of loss, damage or destruction of the Collateral, except as a result of Bank’s gross negligence or willful misconduct. 
 9.6 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall
not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the
specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s
exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under this Agreement or other remedy available at law or in equity, and Bank’s waiver of any Event of Default is not a continuing
waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.7 Demand
Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel
paper, and guarantees held by Bank on which Borrower is liable. 
 9.8 Borrower Liability. Each Borrower may,
acting singly, request Credit Extensions hereunder if available. Each Borrower hereby appoints the other as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions hereunder. Each Borrower hereunder
shall be jointly and severally obligated to repay all Credit Extensions made hereunder, regardless of which Borrower actually receives or previously received said Credit Extension, as if each Borrower hereunder directly received all Credit
Extensions. Each Borrower waives (a) any suretyship defenses available to it under the Code or any other applicable law, and (b) any right to require Bank to: (i) proceed against any Borrower or any other person;
(ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Bank may exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by judicial
or non-judicial sale) without affecting any Borrower’s liability. Notwithstanding any other provision of this Agreement or other related document, each Borrower irrevocably waives all rights that it may have at law or in equity (including,
without limitation, any law subrogating Borrower to the rights of Bank under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower, or any other Person now or hereafter primarily or
secondarily liable for any of the Obligations, for any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise and all rights that it might have to benefit from, or to participate in, any security for
the Obligations as a result of any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under
this Section shall be null and void. If any payment is made to a Borrower in contravention of this Section, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered to Bank for application to the
Obligations, whether matured or unmatured. 
 10 NOTICES 

All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must
be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt
requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight

 
courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile
number, or email address indicated below. Bank or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 

 

			
	If to Borrower:	  	Sagent Pharmaceuticals, Inc.
		  	Sagent Pharmaceuticals
		  	1901 North Roselle Road,
		  	Suite 700 Schaumburg, IL 60195
		  	Attn: Jonathon Singer
		  	Fax: (847) 908-1805
		  	Email: jsinger@sagentpharma.com
		
	With a copy to:	  	Kirkland & Ellis LLP
		  	300 N. LaSalle
		  	Chicago, IL 60654
		  	Attn: Linda K. Myers, P.C.
		  	Fax: (312) 862-2200
		  	Email: lmyers@kirkland.com
		
	If to Bank:	  	Silicon Valley Bank
		  	230 West Monroe, Suite 720
		  	Chicago, Illinois 60606
		  	Attn: Mr. Jesse Meyer
		  	Fax: (312) 704-1523
		  	Email: jmeyer@svb.com
		
	with a copy to:	  	Riemer & Braunstein LLP
		  	Three Center Plaza
		  	Boston, Massachusetts 02108
		  	Attn: David A. Ephraim, Esquire
		  	Fax: (617) 692-3455
		  	Email: dephraim@riemerlaw.com

 11 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER 

Illinois law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive
jurisdiction of the State and Federal courts in Chicago, Illinois; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction
to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower and Bank expressly submit and consent in advance to such jurisdiction in any action or suit commenced in
any such court, and Borrower and Bank hereby waive any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consent to the granting of such legal or equitable relief as is deemed
appropriate by such court. Borrower and Bank hereby waive personal service of the summons, complaints, and other process issued in such action or suit and agree that service of such summons, complaints, and other process may be made by registered or
certified mail addressed to Borrower or Bank, as applicable, at the address set forth in Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s or Bank’s, as applicable,
actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 
 TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY TRANSACTION CONTEMPLATED THEREBY, INCLUDING CONTRACT,
TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

 12 GENERAL PROVISIONS 

12.1 Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each
party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank has the right, without the consent of or notice to
Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents. 

12.2 Indemnification. Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees, agents,
attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) claimed or
asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or documented, out-of-pocket expenses (including Bank Expenses) in any way suffered, incurred, or paid by such Indemnified
Person as a result of, following from, consequential to, or arising from transactions between Bank and Borrower contemplated by the Loan Documents (including reasonable, documented attorneys’ fees and out-of-pocket expenses), except for Claims
and/or losses directly caused by such Indemnified Person’s gross negligence or willful misconduct. 
 12.3 Time
of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 
 12.4 Severability
of Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 
 12.5 Correction of Loan Documents. Bank may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties. 

12.6 Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver,
discharge or termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without
limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect
on any Loan Document. Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any
obligation or commitment to grant any further waiver. The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and
negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents. 
 12.7
Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.

 12.8 Survival. All covenants, representations and warranties made in this Agreement continue in full force
until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full and
satisfied. Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the termination of all Bank Services Agreements. The obligation of
Borrower in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 
 12.9 Confidentiality. In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary information, and shall not disclose such
confidential information to any Person, except as permitted in this Section 12.9. Disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together with Bank, collectively,
“Bank Entities”) which agree to maintain such information confidential; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, that any prospective transferee or purchaser
shall have entered into an agreement containing provisions substantially the same as this Section); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with
Bank’s examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality
agreement with Bank with terms no less restrictive than those contained herein. Confidential information does not include information that is either: (i) in 

 
the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank through no fault of Bank; or (ii) disclosed to Bank by a
third party if Bank does not know that the third party is prohibited from disclosing the information. 
 Bank Entities may use
the confidential information for reporting purposes and the development and distribution of databases and market analyses so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly
permitted by Borrower. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. 

12.10 Right of Set Off. Borrower hereby grants to Bank, a lien, security interest and right of set off as security for all
Obligations to Bank, whether now existing or hereafter arising upon and against all deposits, credits, (other than Excluded Accounts) collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity
under the control of Bank (including a Bank subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Bank may set off the same or any part thereof and
apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO
ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY (OTHER THAN EXCLUDED ACCOUNTS) OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

 12.11 Electronic Execution of Documents. The words “execution,” “signed,”
“signature” and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a
manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions
Act. 
 12.12 Captions. The headings used in this Agreement are for convenience only and shall not affect the
interpretation of this Agreement. 
 12.13 Construction of Agreement. The parties mutually acknowledge that they
and their attorneys have participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist. 

12.14 Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this
Agreement. The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

12.15 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits,
rights or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express
party to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 
 12.16 Commitment Reduction. Borrower may permanently reduce the Revolving Line upon at least three (3) Business Days prior written notice to Bank (or such lesser time as Bank may
agree), which notice shall specify the amount of the reduction. Each reduction shall be in a minimum amount of Five Million Dollars ($5,000,000.00) or an increment of One Million Dollars ($1,000,000.00). 

12.17 Termination Prior to Maturity Date. This Agreement may be terminated prior to the Revolving Line Maturity Date
(a) by Borrower, effective three (3) Business Days after written notice of termination is given to Bank and all outstanding Obligations are repaid and satisfied in full, and (b) by Bank upon the occurrence, and during the
continuation, of an Event of Default (the “Early Termination Event”). 
 12.18 Deferral of Fees.
Notwithstanding the terms of the Existing MidCap Revolving Line Agreement or the Existing Midcap Term Loan Agreement, the Deferred Termination Fee owing to Bank upon the termination of such agreements shall be immediately due and payable by Borrower
to Bank upon the occurrence of an Early Termination Event. Borrower shall pay the Deferred Termination Fee to Bank in connection with the payoff of the Existing Midcap Loans, and Bank shall, within five (5) Business Days thereafter, return the
Deferred Termination Fee to Borrower provided that no Early Termination Event has occurred. 

 12.19 Lender Register and Participations. 

(a) In the event of a sale by a Lender of a participation to a Participant, (i) such Lender’s obligations hereunder shall remain
unchanged for all purposes, (ii) Borrower shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations hereunder, and (iii) all amounts payable by Borrower shall be determined as
if such Lender had not sold such participation and shall be paid directly to such Lender. 
 (b) Each Lender that sells a
participation shall, acting solely for this purpose as a non-fiduciary agent of Borrower, maintain (or cause to be maintained) a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of
each Participant’s interest in any Credit Extension or any other Obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the
Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Credit Extension or any other Obligations under the Loan Documents) to any Person except to the extent that such
disclosure is absolutely necessary to establish that the Revolving Line and any other Obligation under the Loan Documents is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant
Register shall be conclusive and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the
avoidance of doubt, Borrower shall have no responsibility for maintaining a Participant Register. 
 (c) Bank, as non-fiduciary
agent of Borrower, shall maintain at one of its offices a copy of each assignment agreement delivered to it and a register for the recordation of the names and addresses of Bank and each other Lender, and the principal amount (and interest thereon)
of the portion of any Credit Extension or any other Obligations under the Loan Documents owing to each Lender pursuant to the terms hereof from time to time (the “Lender Register”). The entries in the Register shall be
conclusive, and Bank, Borrower and each Lender may treat each person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.
 13 DEFINITIONS 
 13.1 Definitions. As used in the Loan
Documents, the word “shall” is mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and
numbers denoting amounts that are set off in brackets are negative. As used in this Agreement, the following capitalized terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other
sums owing to Borrower. 
 “Account Debtor” is any “account debtor” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Additional Costs” is defined in Section 3.7(b)
hereof. 
 “Adjusted Quick Ratio” is a ratio of (a) Quick Assets to (b) (i) Current Liabilities
minus (ii) the current portion of Deferred Revenue. 
 “Advance” or “Advances” means an
advance (or advances) under the Revolving Line. 
 “Affiliate” is, with respect to any Person, each other
Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any
Person that is a limited liability company, that Person’s managers and members. 
 “Agreement” is defined
in the preamble hereof. 
 “Annual Financial Statements” is defined in Section 6.2(e). 

 “Availability Amount” is (a) the lesser of (i) the Revolving Line
or (ii) the amount available under the Borrowing Base minus (b) the outstanding principal balance of any Advances. 

“Bank” is defined in the preamble hereof. 
 “Bank Account Transition Date” is defined in Section 6.6(a). 

“Bank Entities” is defined in Section 12.9. 

“Bank Expenses” are all audit fees and documented, out-of-pocket expenses, costs, and expenses (including reasonable and
documented attorneys’ fees and out-of-pocket expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency
Proceedings) or otherwise incurred with respect to Borrower. 
 “Bank Services” are any products, credit
services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without
limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various
agreements related thereto (each, a “Bank Services Agreement”). 
 “Bank Services
Agreement” is defined in the definition of “Bank Services” set forth in this Section 13.1. 

“Bank’s Parent” is defined in Section 3.7(c). 

“Base Rate” is the greater of: (a) the Prime Rate, and (b) the Federal Funds Rate plus one half of one percent
(0.50%). 
 “Base Rate Loan” means an Advance that bears interest at the Base Rate. 

“Borrower” is defined in the preamble hereof. 
 “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the
Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Base” is (a) eighty-five percent (85.0%) of Eligible Accounts, plus (b) the lesser of (i) thirty percent (30.0%) of the value of Borrower’s
Eligible Inventory (valued at the lower of cost or wholesale fair market value) or (ii) Six Million Five Hundred Thousand Dollars ($6,500,000.00), plus (c) the lesser of (i) fifty percent (50%) of aggregate unrestricted and
unencumbered cash of Borrower maintained at Bank, and (ii) Ten Million Dollars ($10,000,000.00), in each case (with respect to (a), (b) and (c) above) as reasonably determined by Bank from Borrower’s most recent Borrowing Base
Certificate; provided, however, that upon notice to and consultation with Borrower, Bank may decrease the foregoing amounts or percentages in its reasonable good faith business judgment based on events, conditions, contingencies, or risks which, as
determined by Bank, may adversely affect Collateral, and provided further that any assets or property acquired by Borrower in connection with a Permitted Acquisition shall not be included in the calculation of the Borrowing Base until Bank has
performed an inspection of such assets and property, with results satisfactory to Bank in its sole and absolute discretion. 

“Borrowing Base Certificate” is that certain certificate in the form attached hereto as Exhibit E. 

“Borrowing Base Report” is defined in Section 6.2(a). 

“Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s Board of
Directors and delivered by such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its Secretary on behalf of such Person certifying that
(a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and complete copy of the
resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents
on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to Bank a further certificate canceling
or amending such prior certificate. 

 “Business Day” is any day that is not a Saturday, Sunday or a day on which
Bank is closed, except that if any determination of a “Business Day” shall relate to a Eurodollar Loan, the term “Business Day” shall also mean a day on which dealings are carried on in the London interbank market. 

“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United
States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from
either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least
ninety-five percent (95.0%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Claims” is defined in Section 12.2. 

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of
Illinois; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or
Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the
Uniform Commercial Code in effect in a jurisdiction other than the State of Illinois, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof
relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 

“Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A. 

“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 

“Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Compliance Certificate” is that certain certificate in the form attached hereto as
Exhibit F. 
 “Consolidated Capital Expenditures” means, as calculated on a consolidated basis for
Borrower and its Subsidiaries for any period of measurement, expenditures that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed. 

“Consolidated EBITDA” shall mean (a) Net Income, plus (b) Interest Expense, plus (c) to the extent
deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense, plus (e) to the extent deducted from Net Income, (i) non-cash stock compensation expense and other reasonable
add-backs for non-cash items or non-cash losses in joint ventures, in each case for which Borrower has provided written details to Bank and which have been approved by Bank in writing in its sole and absolute discretion on a case-by-case basis, and
(ii) transaction fees, costs and expenses, including legal expenses, in an aggregate amount not exceeding Two Million Dollars ($2,000,000.00) incurred in connection with the execution and delivery of this Agreement and for retirement and
termination of the Existing MidCap Loans. 
 “Contingent Obligation” is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed, endorsed, co-made, discounted or
sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent
Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

 “Continuation Date” means any date on which Borrower elects to continue a
Eurodollar Loan into another Interest Period. 
 “Control Agreement” is any control agreement entered into
among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which
Bank obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account. 

“Conversion Date” means any date on which Borrower elects to convert a Base Rate Loan to a Eurodollar Loan or a
Eurodollar Loan to a Base Rate Loan. 
 “Copyrights” are any and all copyright rights, copyright applications,
copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

“Credit Extension” is any Advance or any other extension of credit by Bank for Borrower’s benefit. 

“Current Liabilities” are all obligations and liabilities of Borrower to Bank, plus, without duplication, the aggregate
amount of Borrower’s Total Liabilities that mature within one (1) year. 
 “Default” means any event
set forth in Section 8 which with notice or passage of time or both, in each case as set forth in such Section, would constitute an Event of Default. 
 “Default Rate” is defined in Section 2.3(b). 

“Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not yet recognized
as revenue. 
 “Deferred Termination Fee” is One Million Fifty Thousand Dollars ($1,050,000.00). 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit account, account number
            _ with respect to Sagent Delaware and account number 3300854187 with respect to Sagent Wyoming, each maintained with Bank. 

“Designated Wholesaler” means, individually and collectively, the following Account Debtors: Cardinal Health, McKesson
Corporation and AmerisourceBergen Drug Corporation: provided that no such Account Debtor shall be a “Designated Wholesaler” unless such Account Debtor’s corporate securities are rated at least BB by Standard &
Poor’s Ratings Service and Fitch Ratings and Ba2 by Moody’s Investors Services, Inc. 

“Dollars,” “dollars” or use of the sign “$” means only lawful money of the United
States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States. 

“Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the
Foreign Currency for transfer to the country issuing such Foreign Currency. 
 “Domestic Subsidiary” means a
subsidiary organized under the laws of the United States or any state or territory thereof or the District of Columbia. 

“Early Termination Event” is defined in Section 12.17. 

“Effective Date” is defined in the preamble hereof. 

“Eligible Accounts” means Accounts which arise in the ordinary course of Borrower’s business that meet all
Borrower’s representations and warranties in Section 5.3. Bank reserves the right at any time after the Effective 

 
Date upon no less than five (5) Business Days’ written notice to Borrower, to adjust any of the criteria set forth below and to establish new criteria in its good faith and reasonable
business judgment. Unless Bank otherwise agrees in writing, Eligible Accounts shall not include: 
 (a) Accounts for which the
Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (b) Accounts that the Account Debtor has not paid
within ninety (90) days of invoice date regardless of invoice payment period terms; 
 (c) Accounts with credit balances
over ninety (90) days from invoice date; 
 (d) Accounts owing from an Account Debtor, fifty percent (50%) or more of
whose Accounts have not been paid within ninety (90) days of invoice date; 
 (e) Accounts owing from an Account Debtor
which does not have its principal place of business in the United States, Puerto Rico or Canada; 
 (f) Accounts billed and/or
payable outside of the United States, Puerto Rico or Canada (sometimes called foreign invoiced accounts); 
 (g) Accounts owing
from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or otherwise—sometimes called “contra” accounts, accounts payable, customer deposits or
credit accounts); 
 (h) Accounts owing from an Account Debtor which is a United States government entity or any department,
agency, or instrumentality thereof unless Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 

(i) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”,
“sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional; 

(j) Accounts owing from an Account Debtor where goods or services have not yet been rendered to the Account Debtor (sometimes called memo
billings or pre-billings); 
 (k) Accounts subject to contractual arrangements between Borrower and an Account Debtor where
payments shall be scheduled or due according to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the contract (sometimes
called contracts accounts receivable, progress billings, milestone billings, or fulfillment contracts); 
 (l) Accounts owing
from an Account Debtor the amount of which may be subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called retainage billings);

 (m) Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust; 

(n) Accounts owing from an Account Debtor that has been invoiced for goods that have not been shipped to the Account Debtor unless Bank,
Borrower, and the Account Debtor have entered into an agreement acceptable to Bank in its sole discretion wherein the Account Debtor acknowledges that (i) it has title to and has ownership of the goods wherever located, (ii) a bona fide
sale of the goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from Borrower (sometimes called “bill and hold” accounts); 
 (o) Accounts for which the Account Debtor has not been invoiced; 
 (p) Accounts
that represent non-trade receivables or that are derived by means other than in the ordinary course of Borrower’s business; 
 (q) Accounts for which Borrower has permitted Account Debtor’s payment to extend beyond 90 days; 
 (r) Accounts arising from chargebacks or other payment deductions taken by an Account Debtor; 

 (s) Accounts arising from product returns and/or exchanges (sometimes called
“warranty” or “RMA” accounts); 
 (t) Accounts in which the Account Debtor disputes liability or makes any
claim (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 
 (u) Accounts owing from an Account Debtor with respect to which Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue); 

(v) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five percent
(25.0%) of all Accounts, or, with respect to an Account Debtor that is a Designated Wholesaler, forty percent (40.0%), for the amounts that exceed that percentage, unless Bank approves in writing; and 

(w) Accounts for which Bank in its good faith business determines collection to be doubtful, including, without limitation, accounts
represented by “refreshed” or “recycled” invoices. 
 “Eligible Inventory” means Inventory
that: (a) meets all of Borrower’s representations and warranties in Section 5.3, (b) is in Borrower’s possession or is subject to a bailee waiver executed in favor of Bank, in form and substance satisfactory to Bank in its
sole discretion, and (c) is otherwise reasonably acceptable to Bank in all respects. 
 “Equipment” is all
“equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of
the foregoing. 
 “ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations.

 “Eurodollar Base Rate” is, with respect to each day during each Interest Period pertaining to a Eurodollar
Loan, the rate per annum determined by reference to the British Bankers’ Association Interest Settlement Rates for deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period in Dollars,
determined as of approximately 11:00 A.M. (London, England time) two (2) Business Days prior to the beginning of such Interest Period (as set forth by Bloomberg Information Service or any successor thereto or any other service selected by Bank
which has been nominated by the British Bankers’ Association as an authorized information vendor for the purpose of displaying such rates). In the event that the rate per annum referenced in (b) in the preceding sentence is not available,
the rate per annum in (b) in the preceding sentence shall be determined by reference to the rate per annum equal to the offered quotation rate to first class banks in the London interbank market by Bank for deposits (for delivery on the first
day of the relevant Interest Period) in Dollars of amounts in same day funds comparable to the principal amount of the applicable Loan of Bank, for which the Eurodollar Base Rate is then being determined with maturities comparable to such period as
of approximately 11:00 A.M. (London, England time) two (2) Business Days prior to the beginning of such Interest Period. 

“Eurodollar Loan” is an Advance that bears interest based at the Eurodollar Rate. 

“Eurodollar Rate”: with respect to each day during each Interest Period pertaining to a Eurodollar Loan, a rate per
annum determined for such day in accordance with the following formula: 
  

			
	Eurodollar Rate = 	  	Eurodollar Base Rate
	  	1.00 - Reserve Requirements

 “Eurodollar Tranche” is the collective reference to Eurodollar Loans under the Revolving
Line, the then current Interest Periods with respect to all of which begin on the same date and end on the same later date (whether or not such Loans shall originally have been made on the same day). 

“Event of Default” is defined in Section 8. 

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

“Excluded Accounts” is defined in Section 6.6(b). 

 “Excluded Taxes” is defined in Section 3.8/ 

“Existing MidCap Revolving Line Agreement” is that certain Loan and Security Agreement dated as of June 16, 2009,
among MidCap Funding I, LLC, Borrower and Bank, as amended, supplemented, restated or otherwise modified from time to time. 

“Existing MidCap Term Loan Agreement” is that certain Loan and Security Agreement dated as of March 8, 2011, among
MidCap Funding III, LLC, Borrower and Bank, as amended, supplemented, restated or otherwise modified from time to time. 

“Existing Mid Cap Loans” are, collectively, the loan arrangements evidenced by the Existing MidCap Revolving Line
Agreement and the Existing MidCap Term Loan Agreement. 
 “FATCA” means Sections 1471 through 1474 of the Tax
Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable to Sections 1471 through 1474 of the Tax Code as of the date of this Agreement), and any current or future regulations or official
interpretations thereof (including any revenue ruling, revenue procedure, notice or similar guidance issued by the IRS thereunder as a precondition to relief or exemption from taxes under such provisions). 

“Federal Funds Rate” is, for any day, the rate per annum equal to the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding
Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank on such day on such transactions as determined by Bank. 

“Foreign Currency” means lawful money of a country other than the United States. 

“Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary. 

“Free Cash Flow” means, for any period of measurement, Consolidated EBITDA for such period, minus the sum,
without duplication, of the following: (a) non-financed Consolidated Capital Expenditures, plus (b) any capitalized expenses, including, without limitation, those related to research and development and capitalized software
development costs. 
 “Funding Date” is any date on which a Credit Extension is made to or for the account of
Borrower which shall be a Business Day. 
 “FX Forward Contract” is any foreign exchange contract by and
between Borrower and Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date. 
 “GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the
circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles”
as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment
intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property
damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Governmental
Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 “Governmental Authority” is any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government,
any securities exchange and any self-regulatory organization. 
 “Guarantor” is any present or future guarantor
of the Obligations. 
 “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of
property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent
Obligations. 
 “Indemnified Person” is defined in Section 12.2. 

“Initial Audit” is Bank’s inspection of Borrower’s Accounts, Borrower’s Inventory, the Collateral, and
Borrower’s Books, with results satisfactory to Bank in its sole and absolute discretion. 
 “Insolvency
Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its
creditors, or proceedings seeking reorganization, arrangement, or other relief. 
 “Intellectual Property”
means all of Borrower’s right, title, and interest in and to the following: 
 (a) its Copyrights, Trademarks and Patents;

 (b) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions,
know-how, operating manuals; 
 (c) any and all source code; 

(d) any and all design rights which may be available to a Borrower; 

(e) any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the
obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above; and 
 (f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. 
 “Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash), net of interest income, determined in accordance with GAAP for the relevant period ending on
such date, including, in any event, interest expense, net of interest income, with respect to any Credit Extension and other Indebtedness of Borrower and its Subsidiaries, including, without limitation or duplication, all commissions, discounts, or
related amortization and other fees and charges or income with respect to letters of credit and bankers’ acceptance financing and the net costs or net income associated with interest rate swap, cap, and similar arrangements, and the interest
portion of any deferred payment obligation (including leases of all types). 
 “Interest Payment Date” means
(a) with respect to any Eurodollar Loan, (i) the last day of each Interest Period applicable to such Eurodollar Loan, and (ii) as to any Eurodollar Loan having an Interest Period longer than three (3) months, each day that is
three (3) months, or a whole multiple thereof, after the first day of such Interest Period, and (b) with respect any Base Rate Loan, (i) the last day of each month (or, if the last day of the month does not fall on a Business Day,
then on the first Business Day following such date), and (ii) each date such Base Rate Loan is converted into a Eurodollar Loan to the extent of the amount converted to a Eurodollar Loan. 

“Interest Period” means, as to any Eurodollar Loan, the period commencing on the date of such Eurodollar Loan, or on the
date on which a Base Rate Loan is converted into a Eurodollar Loan or an existing Eurodollar Loan is continued as a Eurodollar Loan, and ending on the date that is one (1), two (2), three (3), or six (6) months thereafter, in each case as
Borrower may elect in the applicable Notice of Borrowing or Notice of Conversion/Continuation; provided, however, that (a) no Interest Period with respect to any Eurodollar Loan shall end later than the Revolving Line
Maturity Date, (b) as to any Eurodollar Loan having an Interest Period longer than three (3) months, each day that is three (3) months, or a whole multiple thereof, after the first day of such Interest

 
Period shall be an Interest Payment Date, (c) the last day of an Interest Period shall be determined in accordance with the practices of the LIBOR interbank market as from time to time in
effect, (d) if any Interest Period would otherwise end on a day that is not a Business Day, that Interest Period shall be extended to the following Business Day unless, in the case of a Eurodollar Loan, the result of such extension would be to
carry such Interest Period into another calendar month, in which event such Interest Period shall end on the preceding Business Day, (e) any Interest Period pertaining to a Eurodollar Loan that begins on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period, and (f) interest shall
accrue from and include the first Business Day of an Interest Period but exclude the last Business Day of such Interest Period. 

“Interest Rate Determination Date” means each date for calculating the Eurodollar Rate for purposes of determining the
interest rate in respect of an Interest Period. The Interest Rate Determination Date shall be the second Business Day prior to the first day of the related Interest Period for a Eurodollar Loan. 

“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such
term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out
of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person.

 “IP Agreement” is that certain Intellectual Property Security Agreement executed and delivered by Borrower
to Bank dated as of the Effective Date. 
 “Key Person” is any of Borrower’s Chief Executive Officer and
Chief Financial Officer, who are, as of the Effective Date, Jeff Yordon and Jonathon Singer, respectively. 

“Lender” is, collectively, Bank, each Person that is an assignee of Bank’s interest in this Agreement pursuant to
Section 12.1, and their respective successors and assignees. 
 “Lender Register” is defined in
Section 12.19. 
 “Letter of Credit” is a standby or commercial letter of credit issued by Bank upon
request of Borrower based upon an application, guarantee, indemnity or similar agreement. 
 “Lien” is a claim,
mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Loan” is any Eurodollar Loan or Base Rate Loan. 

“Loan Documents” are, collectively, this Agreement, the Perfection Certificate, the IP Agreement, any Bank Services
Agreement, any note, or notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank, all as amended, restated, or otherwise modified. 

“MidCap” is, collectively, MidCap Funding III, LLC, a Delaware limited liability company, and MidCap Funding I, LLC, a
Delaware limited liability company. 
 “Monthly Financial Statements” is defined in Section 6.2(c).

 “Net Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries for any period
as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period taken as a single accounting period. 
 “Notice of Borrowing” means a notice given by Borrower to Bank substantially in the form of Exhibit C, with appropriate insertions. 

“Notice of Conversion/Continuation” means a notice given by Borrower to Bank substantially in the form of Exhibit
D, with appropriate insertions. 

 “Obligations” are Borrower’s obligations to pay when due any debts,
principal, interest, Bank Expenses, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, any interest accruing after Insolvency Proceedings begin and
debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s duties under the Loan Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no
earlier than thirty (30) days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar
agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 

“Participant” shall mean any Person that owns rights of participation in an interest of a Lender hereunder, to the
extent permitted pursuant to Sections 12.1 and 12.19. 
 “Participant Register” is defined in
Section 12.19. 
 “Patents” means all patents, patent applications and like protections including without
limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 

“Payment/Advance Form” is that certain form attached hereto as Exhibit B. 

“Perfection Certificate” is defined in Section 5.1. 

“Permitted Acquired Indebtedness” is One Million Dollars ($1,000,000.00). 

“Permitted Acquisition” is any acquisition by Borrower of all or the majority the capital stock, or substantially all of
the assets, of any Person, (or any division, product line and/or business operated by any Person) in which the total compensation payable by Borrower and its Subsidiaries shall not exceed Fifty Million Dollars ($50,000,000.00) with respect to any
single acquisition and complies with the following criteria: 
 (a) no Event of Default exists or would result from such
acquisition; 
 (b) the Person, division, product line or line of business acquired in such acquisition shall be in the same or
substantially similar line of business as Borrower or supplemental or complementary thereto or reasonably related thereto or reasonable extensions thereof; 
 (c) Bank shall have received at least five (5) Business Days prior written notice of the closing date for such acquisition (together with a description of the proposed acquisition or purchase, all
diligence materials (including, without limitation, a certificate of a Responsible Officer, in form and substance reasonably satisfactory to Bank certifying that, as of the date thereof, the proposed purchase or acquisition is in compliance with
Section 7.3 hereof and accompanied by calculations in support thereof) and other documents and information reasonably requested by Bank, each of which shall be in form and substance reasonably satisfactory to Bank); 

(d) Borrower remains a surviving legal entity after such acquisition; 

(e) no Indebtedness or Liens are assumed in connection with such acquisition, except Permitted Acquired Indebtedness; 

(f) any Person that is acquired and remains a separate legal entity shall, at Bank’s option, become a borrower pursuant to the terms
hereunder (including, without limitation, Section 6.11) and documentation required by Bank in its sole discretion; 
 (g)
such acquisition is non-hostile in nature; 
 (h) the sum of (i) the Availability Amount, plus (ii) without
duplication of amounts represented in Availability Amount, Borrower’s consolidated unrestricted and unencumbered cash maintained at Bank or in accounts at another financial institution, provided that any such account maintained at another
financial institution is subject to a Control Agreement which is satisfactory to Bank in its sole discretion, and which provides 

 
Bank a first priority perfected security interest in such account (less the amount of unrestricted and unencumbered cash used in the calculation of the Availability Amount), after giving effect
to such acquisition, is at least Twenty-Five Million Dollars ($25,000,000.00); and 
 (i) Borrower has provided Bank with
written confirmation, supported by reasonably detailed calculations, that on a pro forma basis (including pro forma adjustments arising out of events which are directly attributable to such acquisition), Borrower would be in compliance
with the financial covenants contained in Section 6.7, both immediately prior to and immediately after the consummation of such acquisition. 
 “Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to
Bank under this Agreement and the other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the
Perfection Certificate; 
 (c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 
 (e) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 
 (f) Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens” hereunder; 

(g) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through
(f) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be; 

(h) Indebtedness of Borrower arising from the honoring by a bank or financial institution of a check, draft or similar instrument
inadvertently drawn by such Borrower in the ordinary course of business, against insufficient funds, so long as such Indebtedness is repaid within five (5) Business Days; 
 (i) Permitted Acquired Indebtedness; 
 (j) reimbursement obligations under letters
of credit not to exceed Five Hundred Thousand Dollars ($500,000.00) at any one time outstanding; and 
 (j) other Indebtedness
in an aggregate principal amount not to exceed Five Hundred Thousand Dollars ($500,000.00) at any one time outstanding. 

“Permitted Investments” are: 
 (a) Investments (including, without limitation, Subsidiaries, Sagent Strides and Kanghong Sagent (Chengdu) Pharmaceuticals Co., Ltd.) existing on the Effective Date and shown on the Perfection
Certificate; and 
 (b) Investments consisting of Cash Equivalents and any similar short term Investments permitted by
Borrower’s and its Subsidiary’s investment policies, as amended from time to time, provided that such investment policies (and any such amendment thereto) have been approved by Bank; 

(c) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts with, customers and
suppliers, in each case in the ordinary course of business; 
 (d) Investments consisting of notes receivable of, or prepaid
royalties and other credit extensions, to customers and suppliers who are not affiliates, in the ordinary course of business, in an aggregate amount not to exceed Five Hundred Thousand Dollars ($500,000.00), provided that this subpart shall not
apply to Investments of Borrower in any Subsidiary; 
 (e) joint ventures or strategic alliances in the ordinary course of
Borrower’s or its Subsidiaries’ business in an aggregate amount not to exceed Twenty-Five Million Dollars ($25,000,000.00) during the term of this 

 
Agreement, provided that at the time of any Investment in such a joint venture or strategic alliance, the sum of (i) the Availability Amount, plus (ii) without duplication of amounts
represented in Availability Amount, Borrower’s consolidated unrestricted and unencumbered cash maintained at Bank or in accounts at another financial institution, provided that any such account maintained at another financial institution is
subject to a Control Agreement which is satisfactory to Bank in its sole discretion, and which provides Bank a first priority perfected security interest in such account (less the amount of unrestricted and unencumbered cash used in the calculation
of the Availability Amount), after giving effect to such Investment, is at least Twenty-Five Million Dollars ($25,000,000.00); and 
 (f) other Investments not otherwise permitted by Section 7.7 not exceeding Five Hundred Thousand Dollars ($500,000.00) in the aggregate outstanding at any time. 

“Permitted Liens” are: 
 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents; 

(b) Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being
contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations
adopted thereunder; 
 (c) purchase money Liens or capital leases (i) on Equipment acquired or held by Borrower incurred
for financing the acquisition of the Equipment securing no more than Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the
property and improvements and the proceeds of the Equipment, which Liens may have priority over Bank’s Liens to the extent set forth in Section 9-324 of the Code; 
 (d) exclusive and non-exclusive licenses of Intellectual Property each granted in the ordinary course of business; 
 (e) Liens arising by virtue of a judgment or judicial order not constituting an Event of Default; 
 (f) Liens in favor of other financial institutions arising in connection with the Deposit Accounts of Borrower or any of its Subsidiaries held at such institutions, but only to the extent that such
Deposit Account is subject to a Control Agreement in favor of Bank if required pursuant to Section 6.6; 
 (g) Liens
arising from precautionary Uniform Commercial Code financing statements regarding operating leases entered into in the ordinary course of business by Borrower and its Subsidiaries; 

(h) Liens under Section 4-210 of the UCC in favor of collecting banks; 

(i) Liens for the benefit of the seller deemed to attach solely because of the existence of cash deposits and attaching solely to cash
deposits made in connection with any letter of intent or acquisition or purchase agreement with respect to any Permitted Acquisition; 
 (j) pledges or deposits in connection with workers’ compensation, unemployment insurance and other social security legislation and pledges securing liability to insurance carriers under insurance or
self-insurance arrangements in respect of deductibles; 
 (k) deposits and other liens to secure the performance of bids, trade
contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; 

(l) Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business
so long as such Liens attach only to Inventory, which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or
sale of the property subject thereto; 

 (m) leases or subleases of real property granted in the ordinary course of Borrower’s
or its Subsidiaries’ business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property granted in the ordinary course of
Borrower’s or its Subsidiaries’ business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest
therein; 
 (n) Liens in favor of a customs agent encumbering imported property in the custody of the customs agent, in each
case incurred in the ordinary course of business and securing only amounts owed to such customs agent; 
 (o) Liens in respect
of Permitted Acquired Indebtedness, provided such Liens constitute “Permitted Liens” hereunder; 
 (p) Liens arising
by operation of law under Article 2 of the Code in favor of a reclaiming seller of goods or buyer of goods; 
 (q) Liens on cash
securing reimbursement obligations under letters of credit not to exceed Five Hundred Thousand Dollars ($500,000.00) at any one time outstanding; 
 (r) other Liens in an aggregate amount not to exceed Five Hundred Thousand Dollars ($500,000.00); and 
 (s) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (r), but any extension, renewal or replacement Lien must be limited to
the property plus accessions thereto and proceeds thereof encumbered by the existing Lien and the principal amount of the indebtedness may not increase. 
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution,
public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Positive Free Cash Flow
Event” means that Borrower has achieved positive Free Cash Flow for at least two (2) consecutive calendar quarters that terminate after the Effective Date. 
 “Prime Rate” means the rate of interest published in the “Money Rates” section of The Wall Street Journal, Eastern Edition as the “United States Prime Rate,”
even if such rate is not the lowest or best rate available. In the event that The Wall Street Journal, Eastern Edition is not published or such rate does not appear in The Wall Street Journal, Eastern Edition, the Prime Rate shall be
determined by Bank until such time as the Prime Rate becomes available in accordance with past practices. 
 “Quick
Assets” is, on any date, Borrower’s (a) consolidated unrestricted and unencumbered cash maintained at Bank or in accounts at another financial institution, provided that any such account maintained at another financial institution
is subject to a Control Agreement which is satisfactory to Bank in its sole discretion, and which provides Bank a first priority perfected security interest in such account, plus (b) net billed accounts receivable. 

“Registered Organization” is any “registered organization” as defined in the Code with such additions to such
term as may hereafter be made. 
 “Regulatory Change” means, with respect to Bank, any change on or after the
date of this Agreement in United States federal, state, or foreign laws or regulations, including Regulation D, or the adoption or making on or after such date of any interpretations, directives, or requests applying to a class of lenders including
Bank, of or under any United States federal or state, or any foreign laws or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof.

 “Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any
law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its
property is subject. 

 “Reserve Requirement” means, for any Interest Period, the average maximum
rate at which reserves (including any marginal, supplemental, or emergency reserves) are required to be maintained during such Interest Period under Regulation D against “Eurocurrency liabilities” (as such term is used in Regulation D) by
member banks of the Federal Reserve System. Without limiting the effect of the foregoing, the Reserve Requirement shall reflect any other reserves required to be maintained by Bank by reason of any Regulatory Change against (a) any category of
liabilities which includes deposits by reference to which the Eurodollar Rate is to be determined as provided in the definition of Eurodollar Rate or (b) any category of extensions of credit or other assets which include Advances. 

“Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of
Borrower. 
 “Restricted License” is any material license or other agreement with respect to which Borrower is
the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could
interfere with Bank’s right to sell any Collateral. 
 “Revolving Line” is an Advance or Advances in an
amount equal to Forty Million Dollars ($40,000,000.00). 
 “Revolving Line Maturity Date” is February 13,
2016. 
 “Sagent Delaware” is defined in the preamble hereof. 

“Sagent Strides” means Sagent Strides LLC, a Wyoming limited liability company. 

“Sagent Wyoming” is defined in the preamble hereof. 

“SEC” shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental
Authority. 
 “Securities Account” is any “securities account” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Subordinated Debt” is indebtedness incurred by Borrower
subordinated to all of Borrower’s now or hereafter indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on
terms acceptable to Bank. 
 “Subsidiary” is, as to any Person, a corporation, partnership, limited liability
company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of
the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.
Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower. For the avoidance of doubt, each of Sagent Strides and Kanghong Sagent (Chengdu) Pharmaceuticals Co., Ltd. is not a
“Subsidiary” as of the Effective Date. 
 “Tax Code” means the Internal Revenue Code of 1986, as
amended from time to time. 
 “Total Liabilities” is on any day, obligations that should, under GAAP, be
classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness and current portion of Subordinated Debt permitted by Bank to be paid by Borrower. 

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and
registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 
 “Transfer” is defined in Section 7.1. 

“Type” is, with respect to any Advance, its nature as a Base Rate Loan or a Eurodollar Loan. 

“Unused Revolving Line Facility Fee” is defined in Section 2.4(a). 

 [Signature page follows.] 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
of the Effective Date. 
 BORROWER: 

SAGENT PHARMACEUTICALS, INC. 
 By: /s/
Michael Logerfo 
 Name: Michael Logerfo 

Title: Corporate Vice President, Chief Legal Officer, and Secretary 
 SAGENT PHARMACEUTICALS 
 By: /s/ Michael Logerfo 

Name: Michael Logerfo 
 Title: Corporate Vice
President, Chief Legal Officer, and Secretary 
 BANK: 
 SILICON VALLEY BANK 
 By: /s/ Jesse Meyer 

Name: Jesse Meyer 
 Title: Relationship Manager

 EXHIBIT A 

COLLATERAL DESCRIPTION 
 The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 
 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (but
excluding any “intent to use” Trademark applications for which a statement of use has not been filed and accepted with the U.S. Patent and Trademark Office and any other Intellectual Property to the extent the grant of a Lien on or
security interest in such Trademark applications or other Intellectual Property would result in the cancellation or voiding of such Trademark applications or other Intellectual Property), commercial tort claims, documents, instruments (including any
promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other
investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 
 all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and
improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 
 Notwithstanding
the foregoing, the Collateral shall not include: (A) Borrower’s equity interests in Sagent Strides and Kanghong Sagent (Chengdu) Pharmaceuticals Co., Ltd.; or (B) more than sixty-five percent (65.0%) of the presently existing and
hereafter arising issued and outstanding shares of capital stock owned by Borrower of any Foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other matter. 

  
 1Snap-on Incorporated Deferred Cmpensation Plan

 EXHIBIT 10(g) 
 SNAP-ON INCORPORATED 
 DEFERRED COMPENSATION PLAN 

As amended and restated effective September 1, 2011 
 Section 1.            Establishment and Purposes 
 1.1 Establishment. Snap-on Incorporated established effective as of April 1, 1986, a deferred compensation plan for executives as described herein, known as the “SNAP-ON INCORPORATED DEFERRED
COMPENSATION PLAN” (hereinafter called the “Plan”) and amended and restated the Plan effective as of January 1, 2009. Snap-on Incorporated hereby amends and restates the Plan effective as of September 1, 2011. 

1.2 Purposes. The purposes of this Plan are to (i) enable the Corporation to attract and retain persons of outstanding competence,
(ii) provide a means whereby certain amounts payable by the Corporation to selected executives may be deferred to some future period and to provide such executives with a means to have deferred amounts treated as if invested in the
Corporation’s stock, thereby aligning their interests more closely with the interests of shareholders, (iii) to allow selected executives to receive credit for contributions which exceed the limits imposed by the Internal Revenue Code
under the tax-qualified Snap-on Incorporated 401(k) Savings Plan and (iv) provide a matching credit by the Corporation to certain elected officers of the Corporation. The Plan is intended to constitute an unfunded plan primarily for the purpose
of providing deferred compensation for a select group of management or highly compensated employees. 
 The Plan is intended to
comply with Section 409A of the Internal Revenue Code (the “Code”) with respect to the Non-Grandfathered Benefits. For purposes of Code Section 409A, the benefit under the Plan is divided into a Grandfathered Benefits and
Non-Grandfathered Benefits. The provisions of this Plan, with respect to the Grandfathered Benefits, are the provisions of the Plan in effect on October 3, 2004 and notwithstanding any other provision in the Plan, no material modifications
shall be made in the provisions applicable to such benefit. Effective January 1, 2009, the Non-Grandfathered Benefits became subject to the provisions of this Plan. For the period from January 1, 2005 through December 31, 2008 the
Non-Grandfathered Benefits was the subject to a good faith interpretation of Code Section 409A which permitted any action which was (i) permitted under the transitional rules contained in Treasury Regulations and other guidance issued
pursuant to Code Section 409A, or (ii) was otherwise consistent with a reasonable good faith interpretation of Code Section 409A. Each provision and term of the amended Plan should be interpreted accordingly, but if any provision or
term of such amended Plan would be prohibited by or be inconsistent with Code Section 409A or would constitute a material modification to the Plan with respect to Grandfathered Benefits, then such provision or term shall be deemed to be
reformed to comply with Code Section 409A or be ineffective to the extent it results in a material modification to the Plan with respect to benefits earned and vested as of December 31, 2004. 

  
 1 

Section 2.            Definitions 

2.1 Definitions. Whenever used herein, the following terms shall have the meanings set forth below: 

(a) “Accounts” means a Participant’s Cash Account and/or Share Account as described in Section 6.1(a). 

(b) “Annual Addition Limitation” means the limitation on the annual additions to the account of a participant under the
Qualified Plan imposed by §415(c) of the Code. 
 (c) “Beneficial Owner” shall have the meaning set forth in
Section 17.1. 
 (d) “Board” means the Board of Directors of the Corporation. 

(e) “Cause” means that prior to a Participant’s Separation from Service, he shall have (i) engaged in any act of
fraud, embezzlement or theft in connection with his duties as an executive or in the course of employment with the Corporation or its subsidiaries; (ii) wrongfully disclosed any secret process or confidential information of the Corporation or
its subsidiaries; or (iii) engaged in any Competitive Activity; and in any such case the act shall have been determined to have been materially harmful to the Corporation. A Participant’s employment may not be terminated for Cause prior to
the receipt by the Participant of a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board called and held for the purpose of considering
such termination (after reasonable notice to the Participant and an opportunity for the Participant, together with the Participant’s counsel, to be heard before the Board) finding that the Participant was guilty of conduct set forth in the
definition of Cause, and specifying the particulars thereof in detail. In the event of a dispute regarding whether the Participant’s employment has been terminated for Cause, no claim by the Corporation that Cause exists shall be given effect
unless the Corporation establishes by clear and convincing evidence that Cause exists. 
 (f) “Code” means the
Internal Revenue Code of 1986, as amended. 
 (g) “Change of Control” shall have the meaning set forth in
Section 17.1. 
 (h) “Committee” means the Organization and Executive Compensation Committee of the Board or, as
to compensation matters in respect of which it has authority, any other committee of the Board or director or officer of the Corporation that has authority of the Organization and Executive Compensation Committee of the Board relating to
compensation matters. 
 (i) “Common Stock” means the common stock, par value $1.00 per share, of the Corporation.

  
 2 

 (j) “Compensation” means the gross Salary and Incentive Compensation payable to a
Participant during a given Year and Other Compensation payable to a Participant during a given Year. 
 (i)
Salary. “Salary” means all regular, basic compensation, before reduction for amounts deferred pursuant to this Plan or any other plan of the Corporation, payable in cash to a Participant for services during the Year in question, exclusive
of any bonuses or incentive compensation, special fees or awards, allowances, or amounts designated by the Corporation as payments toward or reimbursement of expenses. 

(ii) Incentive Compensation. “Incentive Compensation” means the annual Incentive Compensation Plan payable in
cash by the Corporation to a Participant in the Year in question. 
 (iii) Other Compensation. “Other
Compensation” means other compensation payable in cash and/or Common Stock or other property by the Corporation to a Participant in the Year in question, including without limitation compensation payable under the Amended and Restated Snap-on
Incorporated 2001 Incentive Stock and Awards Plan, as amended, or the Snap-on Incorporated 2011 Incentive Stock and Awards Plan, as amended, if the award of such compensation provides that the Participant may defer the compensation. 

(k) “Compensation Limit” means the limitation imposed by §401(a)(17) of the Code on the amount of Compensation which can
be considered in determining the amount of an individual’s Matching Contributions and other contributions to the Qualified Savings Plan. 
 (l) “Competitive Activity” shall mean the Participant’s participation without the written consent of the Board in the management of any business enterprise which manufactures or sells any
product or service competitive with any product or service of the Corporation or its subsidiaries. Competitive Activity shall not include the ownership of less than five (5) percent of the securities in any enterprise and exercise of any
ownership rights related thereto. 
 (m) “Corporation” means Snap-on Incorporated, a Delaware corporation. 

(n) “Fair Market Value” means the closing price of Common Stock on the New York Stock Exchange on any particular date or, if no
closing price is available on that date, then the closing price on the immediately succeeding business day on which there is a closing price; provided, however, that for purposes of Section 17, Fair Market Value shall mean the closing price of
the Common Stock on the New York Stock Exchange on the date of the Change of Control (as defined therein) or, if higher, the highest price per share of Common Stock paid in the transaction giving rise to the Change of Control. 

(o) “Grandfathered Benefits” means the portion of the compensation deferred and vested under the Plan as of December 31,
2004, and any earnings thereon. 
 (p) “Growth Increment” means the amount of interest earned on a Participant’s
deferred amounts in the Participant’s Cash Account (as defined in Section 6.1(a)). 

  
 3 

 (q) “Match Compensation” means Salary and Incentive Compensation that a
Participant eligible to receive matching credits under Section 5 would have otherwise received in the Year in question, but for such amounts being deferred pursuant to this Plan. 

(r) “Matching Credits” shall consist of Regular Match and Restoration Match. 

(i) “Regular Match” shall have the meaning set forth in Section 5.2(a). 

(ii) “Restoration Match” shall have the meaning set forth in Section 5.2(b). 

(s) “Non-Grandfathered Benefits” means the portion of the compensation deferred and vested under the Plan after
December 31, 2004, and any earnings thereon. 
 (t) “Participant” means an individual eligible to participate in
the Plan pursuant to Section 3.1. 
 (u) “Person” shall have the meaning set forth in Section 17.1.

 (v) “Qualified Plan” means the Snap-on Incorporated 401(k) Savings Plan. 

(w) “Retirement” means that (1) a Participant retires or is retired from the employ of the Corporation and its
subsidiaries (i) on or after attaining age sixty-five (65) years or (ii) on or after attaining age fifty (50) years if the Participant has completed ten or more years of continuous employment, as defined in the Snap-on
Incorporated Retirement Plan or (2) a Participant retires or is retired from the employ of the Corporation and its subsidiaries because of Total and Permanent Disability; or (3) with respect to Grandfathered Benefits only, the Committee
determines by resolution that a Participant shall be deemed to have retired from the employ of the Corporation and its subsidiaries for purposes of the Plan. 
 (x) “Separation from Service” means a Participant’s termination of all employment with Snap-on Incorporated and any subsidiary employer for any reason (including death or Total and
Permanent Disability determined as provided in Subsection 2.3(c)), or, with respect to a Participant’s Non-Grandfathered Benefits, a reduction in the level of bona fide services by the Participant to no more than 20 percent of the average level
of bona fide services performed over the immediately preceding 36 month period, other than while the individual is on sick leave, military leave, or other bona fide leave of absence (such as temporary employment by the government) if the period of
such leaves does not exceed twelve (12) months or, if longer, so long as the individual’s right to reemployment with Snap-on Incorporated or any subsidiary employer is provided either by statute or contract. If the period of leaves exceeds
twelve (12) months and the individual’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first day immediately following such twelve-month period. 

(y) “Specified Employee” means Participants in the group that consists of (i) those employees of the Company and its
subsidiaries (including non-resident alien employees) constituting the fifty most highly compensated officers of the Company and its subsidiaries (within the meaning of Code Section 416(i)(1)(A)(i)), plus (ii) those additional officers of
the 

  
 4 

 
Company and its subsidiaries who would be included in the group of 50 officers described in clause (i) above if in making the determination under clause (i) non-resident alien employees
were not taken into account. 
 (z) “Total and Permanent Disability” means that the Participant has been recognized as
disabled and approved for benefits under any long term disability plan offered by the Company. 
 (aa) “Year” means a
calendar year. 
 Terms which are not otherwise defined in this Section 2.1 shall have the meanings set forth in the Qualified Plan
document. 
 2.2 Gender and Number. Except when otherwise indicated by the context, any masculine terminology used herein also
shall include the feminine gender, and the definition of any term herein in the singular also shall include the plural. 

Section 3.            Eligibility and Participation

 3.1 Eligibility. The Plan is primarily for the purpose of providing deferred compensation for a select group of management or
highly compensated employees. Subject to the preceding sentence, the following persons shall be eligible to participate in the Plan: 
 (a) the elected officers and appointed officers of the Corporation; 
 (b) the
elected officers and appointed officers of Snap-on Tools Company LLC; 
 (c) any other U.S. employee of the Corporation or any
direct or indirect subsidiary of the Corporation whose employment grade is Grade 37 or higher (or the equivalent of Grade 37 or higher, as determined by the Chief Executive Officer); and 

(d) any other employee of the Corporation or any direct or indirect subsidiary of the Corporation designated by the Chair of the
Committee or by the Chief Executive Officer of the Corporation from time to time. 
 3.2 Ceasing Eligibility. In the event a
Participant no longer meets the requirements for participation in this Plan, he shall become an inactive Participant. An inactive Participant shall retain all rights described under this Plan, except the right to make any further deferrals and the
right to receive any further matching credits, until the time that he again meets the eligibility requirements of Section 3.1 (and, if applicable, Section 5.1). 

  
 5 

Section 4.            Election to Defer 

4.1 Deferral Election. 
 (a) Subject to the following provisions, a Participant irrevocably may elect, by written notice to the Corporation, to defer all or a percentage of annual Salary and/or Incentive Compensation. 

(i) Salary deferrals. The deferral percentage elected shall be applied to the Participant’s Salary for each pay
period of the Year to which the deferral election applies. The deferral election must be made before the last business day of the Year immediately preceding the Year for which such deferral election applies. The Salary deferral election will remain
in effect for subsequent Years unless changed prior to any subsequent Year. 
 (ii) Incentive Compensation
deferrals. The deferral percentage elected shall apply only to the Participant’s Incentive Compensation payable with respect to service performed in the Year in which the deferral election is made. The Incentive Compensation deferral election
must be made at least six months prior to the last business day of such Year, and will not remain in effect for subsequent Years. 
 (b) Except as prohibited by Code Section 409A and regulations thereunder, an individual who becomes a Participant at or after the beginning of the Year may irrevocably elect, by written notice to the
Corporation, to defer all or a percentage of: 
 (i) the annual Salary earned by such Participant for such Year
after such election, if such election is made within thirty (30) days after becoming a Participant; and 

(ii) the Participant’s Incentive Compensation, if any, payable with respect to service performed during such Year, if
such election is made at least six months prior to the last business day of such Year. 
 (c) If so provided in an award of
Other Compensation, and subject to such restrictions and conditions as may be set forth in the award or imposed by the Corporation, a Participant irrevocably may elect, by written notice to the Corporation, to defer all or a percentage of such Other
Compensation, if such election is made at least six months prior to the last business day of the last Year in the performance period with respect to which such award of Other Compensation is calculated. 

(d) In connection with a Participant’s deferral election pursuant to this Section 4.1 relating to Compensation that the
Participant would have otherwise received in a given Year, and thereafter from time to time during that Year as determined by the Participant subject to any rules established by the Committee pursuant to Section 11.1, the Participant shall
provide written direction to the Corporation indicating the portion of the Participant’s Compensation that the Participant would have otherwise received in that Year that should be (1) credited to the Participant’s Cash Account,
except to the extent Section 6.5 would require a credit of some or all of the Compensation to the Participant’s Share Account (as defined in Section 6.1(a)); or (2)

  
 6 

 
credited to the Participant’s Share Account. Each written direction shall become effective immediately upon receipt by the Corporation for Compensation otherwise payable after such date
subject to rules that the Committee establishes pursuant to Section 11.1. To the extent a Participant fails to elect an account to which to credit Compensation for a Year pursuant to this Section 4.1(d), the Participant’s Compensation
for such Year shall be credited to the Participant’s Cash Account, except to the extent Section 6.5 would require a credit of some or all of the Compensation to the Participant’s Share Account. 

4.2 Deferral Period. 
 (a) The first time a Participant makes an election pursuant to Section 4.1 relating to Salary or Incentive Compensation or pursuant to Section 6.5 relating to Other Compensation that the
Participant would have otherwise received in a given Year, the Participant irrevocably shall select a single deferral period for all Salary, Incentive Compensation or Other Compensation that the Participant would have otherwise received in that Year
(“Year Deferred Amounts”). The deferral period shall be for a specified number of Years or until a specified date. The earliest a deferral period may end is the first January 1 following the Year in which the Participant would have
otherwise received the Compensation. The deferral period election will remain in effect for any subsequent Year Deferred Amounts unless and until the Participant makes a new deferral period election prior to any subsequent Year. Notwithstanding the
foregoing, the Company’s Vice-President of Compensation and Retirement Plans may, in his or her sole discretion, permit a Participant to elect a separate deferral period with respect to Other Compensation that the Participant would have
otherwise received in a given Year. Any such separate deferral period election shall otherwise be treated as Year Deferred Amounts for purposes of subsections (b) through (e) below. 

(b) Notwithstanding the deferral period specified pursuant to subsection (a) and except as otherwise provided by subsection (c),
payments of Year Deferred Amounts shall begin following the earliest to occur of: 
 (i) Death; 

(ii) Subject to subsection (d), Separation from Service due to Retirement or Total and Permanent Disability; or

 (iii) Subject to subsection (e), Separation from Service due to reasons other than Retirement. 

(c) In the case of a Participant who has a Separation from Service and who is a Specified Employee on the date of the Separation from
Service, payments of Year Deferred Amounts that are Non-Grandfathered Benefits will not begin prior to the date that is six (6) months following the date of the Separation from Service, and payments of Year Deferred Amounts that are
Non-Grandfathered Benefits and that would otherwise be paid during the six (6) month delay in payment will be accumulated and paid in a lump sum on the first day an amount may be paid under this subsection. 

(d) A Participant may elect to have the deferral period for Year Deferred Amounts continue beyond Separation from Service due to
Retirement or, with respect to Non-

  
 7 

 
Grandfathered Benefits only, Total and Permanent Disability by so indicating when the Participant selects, or modifies pursuant to Section 4.4, the Participant’s deferral period for the
Year Deferred Amounts. At such time, the Participant may elect one or more successive post-Separation from Service deferral periods of up to one year (1) Year each, but in no event may the aggregate of these successive post-Separation from
Service deferral periods and any annual installments elected pursuant to Section 4.3 exceed twenty-five (25) years beyond the Participant’s Separation from Service. Except as provided in subsection (e) with respect to certain
Grandfathered Benefits, if a Participant’s Separation from Service is due to any reason other than Retirement or Total and Permanent Disability, all Year Deferred Amounts remaining shall be paid in a lump-sum distribution pursuant to
Section 7.1. 
 (e) A Participant may elect to have the deferral period for Year Deferred Amounts that are Grandfathered
Benefits continue beyond Separation from Service with the Corporation, but only if such Separation from Service was at the initiative of the Corporation for reasons other than for Cause. A Participant may exercise this one-time election by so
indicating when the Participant selects, or modifies pursuant to Section 4.4, the Participant’s deferral period for the Year Deferred Amounts. At such time, the Participant may elect one or more post-termination deferral periods of up to
one (1) Year each, but in no event may the aggregate of these successive post- Separation from Service deferral periods and any annual installments elected pursuant to Section 4.3 exceed twenty-five (25) years beyond Separation from
Service initiated by the Corporation for reasons other than Cause. 
 4.3 Manner of Payment Election. At the same time as an
election is made pursuant to Section 4.1, or is modified pursuant to Section 4.4, the Participant also may elect to have Year Deferred Amounts paid either in a lump sum or in up to twenty-five (25) substantially equal annual
installments (subject to lump sum payment as provided in Section 7.2); provided, however, that with respect to Grandfathered Benefits, at such time a Participant that elects to receive payments in substantially equal annual installments may
also specify a date within the installment period to receive all then remaining Year Deferred Amounts that are Grandfathered Benefits in a lump sum. 
 4.4 Modification. A Participant may change the manner in which Year Deferred Amounts that are Grandfathered Benefits will be paid and/or the date such payments are to commence by written election made
prior to the Year in which such payments are to commence. A Participant may only modify elections for Year Deferred Amounts that are Non-Grandfathered Benefits if such modification (a) is made at least twelve (12) months prior to the date
on which such payments were to commence, (b) does not take effect for twelve (12) months from the date of the modification and (c) provides for an additional deferral period of at least five (5) Years. A Participant may not make
any modification pursuant to this Section 4.4 in or after the Year payments commence respecting the deferral election in question. 

  
 8 

Section 5.            Matching Credits 

5.1 Effective Date and Eligibility. Effective July 1, 2001, the Corporation shall credit matching credits under this Plan only to
Participants described in this Section at such time and in such amounts as provided in Section 5.2. Notwithstanding anything to the contrary in the Plan, those Participants who are also actively participating in the SIRP-FAP component of the
Snap-on Incorporated Retirement Plan, as amended from time to time, are not eligible to receive matching credits under this Plan. 
 5.2 Time and Amount of Matching Credits. 
 a. Regular Match.
The Corporation shall credit Regular Match under this Plan during each payroll period for the benefit of each eligible Participant to the Participant’s Cash Account. The amount of the Regular Match credit for each payroll period for the benefit
of an eligible Participant will be an amount equal to the product of the first six percent (6%) of a Participant’s Match Compensation for the payroll period multiplied by fifty percent (50%). 

b. Restoration Match. The Corporation shall credit Restoration Match under this Plan for the Year to the
Participant’s Cash Account. The amount of the Restoration Match credit for each Year for the benefit of an eligible Participant will be an amount equal to the excess of: 
 (a) The Matching Contributions that would have been made by the Corporation for the benefit of such Participant for such Year under the Qualified Plan but for application of the Annual Addition Limitation
and/or the Compensation Limit, over 
 (b) the actual Matching Contributions made by the Corporation for the benefit of such
Participant for such Year under the Qualified Plan. 
 5.3 Deferral Period. 

(a) The deferral period selected for Year Deferred Amounts by a Participant under Section 4.2 shall also apply to the Matching
Credits credited under Section 5 with respect to those Year Deferred Amounts or, in the case of Restoration Match, with respect to the same Year as those Year Deferred Amounts. 

(b) However, notwithstanding the deferral period specified and except as otherwise provided by Section 4.2(c), payments of Matching
Credits shall begin following the earliest to occur of: 
 (i) Death; 

(ii) Subject to Section 4.2(d), Separation from Service due to Retirement or Total and Permanent Disability; or

 (iii) Subject to Section 4.2(e), Separation from Service due to reasons other than Retirement.

  
 9 

 5.4 Manner of Payment Election. A Participant’s elected manner of payment for Year
Deferred Amounts under Section 4.2 shall also apply to the Matching Credits credited under Section 5 with respect to those Year Deferred Amounts or, in the case of Restoration Match, with respect to the same Year as those Year Deferred
Amounts. 
 5.5 Modification. A Participant’s change in the manner in which Year Deferred Amounts will be paid and/or the
date such payments are to commence under Section 4.4 will apply to the associated matching credits. 

Section 6.            Accounts 

6.1 Participant Accounts. 
 (a) Deferred Compensation Accounts. The Corporation shall establish and maintain individual bookkeeping accounts in respect of deferrals made by a Participant consisting of a “Cash Account” and
a “Share Account”. A Participant shall have separate accounts for Year Deferred Amounts with different deferral periods under Section 4.2 and/or manners of payment under Section 4.3. 

(i) If a Participant has elected pursuant to Section 4.1(d) to have any portion of the Participant’s Year
Deferred Amounts credited to the Participant’s Cash Account, then the Participant’s Cash Account shall be credited with the dollar amount of any amount deferred and to be credited to the Participant’s Cash Account as of the date the
amount deferred otherwise would have become due and payable. 
 (ii) If a Participant has elected pursuant to
Section 4.1(d) to have any portion of the Participant’s Year Deferred Amounts credited to the Participant’s Share Account, then the dollar amount deferred and to be credited to the Participant’s Share Account shall be converted
into deferred shares of Common Stock to be credited to the Participant’s Share Account as of the date the amount deferred otherwise would have become due and payable. In such event, there shall be credited to the Participant’s Share
Account as of such date a number of units (“Share Units”) equal to the dollar amount of any amount deferred divided by the Fair Market Value as of the payroll date. 
 6.2 Growth Increments on Cash Accounts. The Corporation will provide the opportunity for Growth Increments to be earned on the balance of a Participant’s Cash Accounts. The Committee will have the
authority to select, from time to time, the appropriate reasonable interest rate to apply to such amounts, and may tie such amount to the performance of a particular fund, such as a money market fund for purposes of crediting hypothetical gains or
losses to the Participant’s Cash Account. Each Cash Account shall be credited on the first day of each month with a Growth Increment computed on the daily balance in the Cash Account during the immediately preceding month. The Growth Increment
shall be the sum of the daily interest earned, compounded monthly by the reasonable interest rate selected by the Committee. 

6.3 Changing Accounts. 
 (a) Subject to applicable corporate policies and Section 6.3(c), from time to time a Participant may convert all or a portion of any Cash Account balance of the Participant

  
 10 

 
into deferred shares of Common Stock credited to the Participant’s corresponding Share Account by written notice to the Corporation. In such event, and effective as of the close of business
on the trading day on the date that the Corporation receives such notice, if the notice is received before the close of trading on that day, otherwise as of the close of business on the immediately succeeding trading day (the “Effective
Date”), (i) there shall be credited to the Participant’s Share Account a number of Share Units equal to the number of Share Units specified in the notice or, if such notice specifies a dollar amount, a number of Share Units equal to
such dollar amount divided by the Fair Market Value as of the Effective Date; and (ii) the Participant’s Cash Account shall be debited in an amount equal to the number of Share Units credited to the Share Account multiplied by the Fair
Market Value as of the Effective Date. 
 (b) Subject to applicable corporate policies and Section 6.3(c), from time to
time a Participant with a credit balance in a Share Account may convert all or a portion of such balance into an amount to be credited to the Participant’s corresponding Cash Account by giving written notice to the Corporation, which notice
shall specify the number of Share Units to be converted or a dollar amount. In such event, and effective as of the Effective Date, (i) there shall be credited to the Participant’s Cash Account an amount equal to (A) the number of
Share Units specified in the notice multiplied by the Fair Market Value as of the Effective Date or (B) the dollar amount specified in the notice; and (ii) the Participant’s Share Account shall be debited by the number of Share Units
specified in the notice, or, as the case may be, by the number of Share Units having a Fair Market Value as of the Effective Date equal to the dollar amount specified in the notice. 

(c) A Participant who is subject to Section 16 of the Securities Exchange Act of 1934, as amended, may make transfers of existing
balances pursuant to Sections 6.3(a) or (b) if the transfer is effected pursuant to an election made at least six (6) months after the date of the Participant’s most recent opposite-way election making a transfer of existing balances
pursuant to Sections 6.3(a) or (b) or existing account balances out of or into a Common Stock fund under any other Corporation plan, or more frequently as permitted by the Committee. 

6.4 Cash Dividends. Whenever cash dividends are paid by the Corporation on outstanding Common Stock, there shall be credited to a
Participant’s Share Account a number of Share Units equal to the dollar amount of the cash dividend on the Common Stock multiplied by the number of Share Units credited to the Participant’s Share Account, if any, as of the close of
business on the record date for the dividend divided by the Fair Market Value of the Common Stock on the date of payment of the dividend. Notwithstanding the foregoing, a Participant may instead elect in writing to have such dividends credited to
the Participant’s Cash Account. 
 6.5 Deferral of Other Compensation. 

(a) Subject to the authority of the Committee, the Corporation’s Chief Executive Officer may approve the terms of any agreements
between the Corporation and any Participant relating to the deferral of Other Compensation where, but for the Participant’s deferral, the Participant would have received shares of Common Stock if such officer determines that such terms are
appropriate to carry out the purposes of this Plan and the award of Other Compensation. Without limitation, the Corporation may enter into an agreement with a Participant relating to such a deferral under which (i)(A) there shall be credited to the

  
 11 

 
Participant’s Share Account a number of Share Units equal to the number of shares of Common Stock the receipt of which the Participant has deferred which credit shall be made as of the date
the Other Compensation deferred otherwise would have become due and payable or (B) Share Units shall be credited to the Participant’s Share Account only at a future date, such as the date that one or more conditions to vesting have been
satisfied; (ii) a credit of Share Units may be made subject to such restrictions as are imposed under the terms of the award of Other Compensation (or restrictions substantially equivalent to those to which shares of Common Stock would have
been subject but for the deferral), including without limitation forfeiture under certain circumstances and restrictions on the Participant’s rights to convert such Share Units pursuant to this Section 6.5; and (iii) if the terms of
the award of Other Compensation require a Participant to deliver cash and/or shares of Common Stock to the Corporation to exercise or otherwise receive the benefit of such Other Compensation, then in lieu of delivering such cash and/or Common Stock,
there may be a debit to the Participant’s Cash Account in an amount equal to the amount of cash that the Participant otherwise would have delivered and/or a debit to the Participant’s Share Account in an amount equal to the number of
shares of Common Stock that the Participant otherwise would have delivered, in each case to the extent of any credit balance in such account. 
 (b) Any deferral of Other Compensation as described in (a) above shall be paid in the time and form that the Participant elected in accordance with or other provided under Section 4.2.

 6.6 Charges Against Accounts. There shall be charged against a Participant’s Cash Account any cash payments (excluding
payments for fractional shares) made to the Participant or to his beneficiary in accordance with Section 7. There shall be charged against a Participant’s Share Account any distributions made to the Participant or to his beneficiary in
respect of the Participant’s Share Account in accordance with Section 7. 
 6.7 Fully Vested Accounts. Except as
provided in Section 6.8, Participants shall be fully vested in all Accounts at all times. 
 6.8 Vesting Schedule.

 A Participant shall become fully vested in the portion of his or her Accounts attributable to Matching Credits over time, pursuant to the
following vesting schedule: 
  

					
	 Years of Service
	  	Vested Percentage	 
	 Less than 1
	  	 	0%	  
	 1 but less than 2
	  	 	25%	  
	 2 but less than 3
	  	 	50%	  
	 3 but less than 4
	  	 	75%	  
	 4 or more
	  	 	100%	  

 6.9 Accelerated Vesting of Matching Credits. Notwithstanding the vesting schedule set forth in
Section 6.8, upon (i) a Participant’s attaining his Retirement Date, Total and Permanent Disability, or death; (ii) the complete discontinuance of the Employer’s contributions

  
 12 

 
to the Plan; or (iii) any full or partial termination of the Plan, all Matching Credits allocated to the Accounts of any affected Participant shall become 100% vested and shall not
thereafter be subject to forfeiture as described in Section 7.1(c). 

Section 7.            Payment of Deferred Amounts

 7.1 Payment of Deferred and Matching Amounts. 
 (a) Payment of the vested portion of a Participant’s Cash Account balance, including accumulated Growth Increments attributable thereto and dividend credits under Section 6.4, shall be paid in
cash commencing within thirty (30) calendar days after the commencement date referred to in Section 4.2 (as may be modified pursuant to Section 4.4). The payments shall be made in the manner selected by the Participant under
Section 4.3 or, in the absence of such an election, in a lump sum. The amount of each payment shall be equal to a Participant’s then distributable Cash Account balance multiplied by a fraction, the numerator of which is one and the
denominator of which is the number of installment payments remaining. 
 (b) Payment of the vested portion of a
Participant’s Share Account balance shall be paid commencing within thirty (30) calendar days after the commencement date referred to in Section 4.2 (as may be modified pursuant to Section 4.4). Payments in respect of a Share
Account balance shall be made in cash in an amount equal to the number of Share Units then payable multiplied by the Fair Market Value on the date of payment; provided, however, that at the election of a Participant, made by written notice to the
Corporation delivered not less than five business days before a payment due date, payments in respect of a Share Account may be made solely in Common Stock by converting Share Units into Common Stock on a one-for-one basis, with payment of
fractional shares to be made in cash based upon the Fair Market Value on the date of payment. The payments shall be made in the manner selected by the Participant under Section 4.3 or, in the absence of such an election, in a lump sum. The
number of Share Units payable at the time of a payment shall be equal to a Participant’s then distributable Share Account balance multiplied by a fraction, the numerator of which is one and the denominator of which is the number of installment
payments remaining. 
 (c) Any amounts in a Participant’s Cash Account or a Participant’s Share Account that are not
vested at the time of the Participant’s Separation from Service shall be forfeited. 
 7.2 Automatic Change to Lump Sum
Payments. If a Participant dies prior to the payment of all or a portion of his Cash Account and/or Share Account balances, the balance of any amounts payable shall be paid in a lump sum to the beneficiaries designated under Section 8. Subject
to the restrictions contained in Section 4.2(c), if the value of the portion of a Participant’s Cash Account and Share Account that is comprised of Non-Grandfathered Benefits is less than or equal to the dollar limit set forth under Code
Section 402(g) ($16,500 for 2011) on the date of the Participant’s Separation from Service, the balance of any amounts payable shall be paid in a lump sum to the Participant within thirty (30) days of the commencement date referred to
in Section 4.2. Further, if at the time any installment payment is scheduled to be distributed, the value of the portion of all remaining installment payments of a Participant’s Accounts that are comprised of Non-Grandfathered Benefits is
less than or equal to the dollar limit set forth under 

  
 13 

 
Code Section 402(g), the Company’s Vice President of Compensation and Retirement Plans may choose, in his or her sole discretion, to pay the balance of all remaining installment
payments in a lump sum to the Participant at the time the next installment was otherwise scheduled to be paid. 
 7.3 Financial
Emergency. The Committee, in its sole discretion, may alter the timing or manner of payment of Year Deferred Amounts that are Grandfathered Benefits in the event that the Participant establishes, to the satisfaction of the Committee, severe
financial hardship. In such event, the Committee may: 
 (a) provide that all, or a portion of, the amount previously deferred
by the Participant immediately shall be paid in a lump sum payment, 
 (b) provide that all, or a portion of, the installments
payable over a period of time immediately shall be paid in a lump sum, or 
 (c) provide for such other installment payment
schedules as it deems appropriate under the circumstances, as long as the amount distributed shall not be in excess of that amount which is necessary for the Participant to meet the financial hardship. 

Severe financial hardship will be deemed to have occurred in the event of the Participant’s impending bankruptcy, a dependent’s
long and serious illness, or other events of similar magnitude. The Committee’s decision in passing on the severe financial hardship of the Participant and the manner in which, if at all, the payment of Year Deferred Amounts or matching credits
shall be altered or modified shall be final, conclusive, and not subject to appeal. 
 The timing or manner of payment for
Non-Grandfathered Benefits may not be modified pursuant to this Section 7.3. 
 7.4 Payment Pursuant to a Qualified
Domestic Relations Order. Notwithstanding any provision of this Plan to the contrary, a domestic relations order, as defined in Code Section 414(p)(1)(B), may provide that a Participant’s rights with respect to all or a part of the
Participant’s Account are transferred to an alternate payee. Such domestic relations order may provide that payments to the alternate payee will be accelerated and that such payments will be paid in a different form than the form elected by the
Participant, so long as the form is permitted by the Plan. 

Section 8.            Beneficiary Designation 

8.1 Designation of Beneficiary. A Participant shall designate a beneficiary or beneficiaries who, upon the Participant’s death, are
to receive the amounts that otherwise would have been paid to the Participant. All designations shall be in writing to the Corporation in such form as it requires or accepts and signed by the Participant. The designation shall be effective only if
and when delivered to the Corporation during the lifetime of the Participant. The Participant also may change his beneficiary or beneficiaries by a signed, written instrument delivered to the Corporation. If a Participant is married and names
someone other than (or in addition to) the Participant’s spouse as a beneficiary, then the Participant’s spouse must provide a written consent to this beneficiary designation that has been witnessed by a notary public. The

  
 14 

 
payment of amounts shall be in accordance with the last unrevoked written designation of beneficiary that has been signed and delivered to the Corporation. 

8.2 Death of Beneficiary. In the event that all of the beneficiaries named in Section 8.1 predecease the Participant, the amounts
that otherwise would have been paid to the Participant shall be paid to the Participant’s estate, and in such event, the term “beneficiary” shall include his estate. 

8.3 Ineffective Designation. In the event the Participant does not designate a beneficiary, or if for any reason such designation is
ineffective, in whole or in part, the amounts that otherwise would have been paid to the Participant shall be paid to the Participant’s estate, and in such event, the term “beneficiary” shall include his estate. 

  
 15 

Section 9.            Rights of Participants 

9.1 Contractual Obligation. It is intended that the Corporation is under a contractual obligation to make payments from a
Participant’s account when due. Payment of account balances payable in cash shall be made out of the general funds of the Corporation as determined by the Board. 
 9.2 Unsecured Interest. No Participant or beneficiary shall have any interest whatsoever in any specific asset of the Corporation. To the extent that any person acquires a right to receive payments under
this Plan, such receipt shall be no greater than the right of any unsecured general creditor of the Corporation. 
 9.3
Employment. Nothing in the Plan shall interfere with or limit in any way the rights of the Corporation to terminate any Participant’s employment at any time, nor confer upon any Participant any right to continue in the employ of the
Corporation. 
 9.4 Participation. No employee shall have a right to be selected as a Participant or, having been so selected,
to be selected again as a Participant. 

Section 10.            Nontransferability 

10.1 Nontransferability. In no event shall the Corporation make any payment under this Plan to any assignee or creditor of a Participant
or a beneficiary. Prior to the time of a payment hereunder, a Participant or a beneficiary shall have no rights by way of anticipation or otherwise to assign or otherwise dispose of any interest under this Plan nor shall such rights be assigned or
transferred by operation of law. 

Section 11.            Administration 

11.1 Administration. This Plan shall be administered by the Committee. The Committee may from time to time establish rules for the
administration of this Plan that are not inconsistent with the provisions of this Plan. 
 11.2 Finality of Determination. The
Committee has sole discretion in interpreting the provisions of the Plan. The determination of the Committee as to any disputed questions arising under this Plan, including questions of construction and interpretation, shall be final, binding, and
conclusive upon all persons. No benefits shall be payable under this Plan unless the Committee determines in its sole discretion that such benefits are payable. 
 11.3 Expenses. The cost of payments from this Plan and the expenses of administering the Plan shall be borne by the Corporation. 
 11.4 Action by the Corporation. Any action required or permitted to be taken under this Plan by the Corporation shall be by resolution of the Board, by the duly authorized Committee of the Board, or by a
person or persons authorized by resolution of the Board or the Committee. 

  
 16 

Section 12.            Amendment and Termination 

12.1 Amendment and Termination. The Corporation expects the Plan to be permanent but, since future conditions affecting the Corporation
cannot be anticipated or foreseen, the Corporation necessarily must and does hereby reserve the right to amend, modify, or terminate the Plan at any time by action of the Board. Notwithstanding the foregoing, upon the occurrence of a Potential
Change of Control (as hereinafter defined) and for a period of six (6) months thereafter, the Plan may not be terminated or amended in a manner adverse to Participants. For purposes of this Section, a “Potential Change of Control”
shall be deemed to have occurred if an event set forth in any one of the following shall have occurred: 
 (i)
The Corporation enters into an agreement, the consummation of which would result in the occurrence of a Change of Control; 
 (ii) The Corporation or any other Person publicly announces an intention to take or consider taking actions that, if consummated, would constitute a Change of Control; 

(iii) Any Person becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation representing
fifteen percent (15%) or more of either the then outstanding shares of Common Stock or the combined voting power of the Corporation’s then outstanding voting securities; or 

(iv) The Board adopts a resolution to the effect that, for purposes of this Plan, a Potential Change of Control has
occurred. 
 Further notwithstanding the foregoing, in the event the Plan is terminated and Section 409A of the Internal
Revenue Code permits distributions upon termination, a Participant’s entire benefit, if any, shall be distributed in a lump-sum to the Participant as soon as practicable following the date of such termination. In the event the Plan is
terminated and Section 409A of the Internal Revenue Code does not permit distributions upon termination, a Participant’s entire benefit, if any, shall be paid at such time and in such form as provided for under Section 7 of the Plan.

 Section 13.            Applicable Law

 13.1 Applicable Law. This Plan shall be governed and construed in accordance with the laws of the State of Wisconsin.

 Section 14.            Withholding of Taxes

 14.1 Tax Withholding. The Corporation shall have the right to deduct from all contributions made to, or payments made from,
the Plan any federal, state, or local taxes required by law to be withheld with respect to such contributions or payments. The Corporation may defer making payments in the form of Common Stock under the Plan until satisfactory arrangements have been
made for the payment of any federal, state or local taxes required to be withheld with respect to such payment or delivery. Each Participant shall be entitled to irrevocably elect, prior to the date shares of Common Stock would otherwise be
delivered 

  
 17 

 
hereunder, to have the Corporation withhold shares of Common Stock having an aggregate value equal to the amount required to be withheld. The value of fractional shares remaining after payment of
the withholding taxes shall be paid to the Participant in cash. Shares so withheld shall be valued at Fair Market Value on the date such shares would have otherwise been transferred hereunder. 

Section 15.            Notice 

15.1 Notice. Any notice required or permitted to be given under the Plan shall be sufficient if in writing and hand-delivered, or sent by
a registered or certified mail, and if given to the Corporation, delivered to the principal office of the Corporation. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark
or the receipt for registration or certification. 

Section 16.            Common Stock Matters 

16.1 Stock Reserved for the Plan. The Corporation shall make available as and when required a sufficient number of shares of Common Stock
to meet the needs of the Plan. Shares of Common Stock issued hereunder shall be previously issued shares reacquired and held by the Corporation. 
 16.2 General Restrictions. 
 (a) Investment Representations. The Corporation may
require any Participant, as a condition of receiving Common Stock under this Plan, to give written assurances in substance and form satisfactory to the Corporation and its counsel to the effect that such person is acquiring the Common Stock for his
own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Corporation deems necessary or appropriate in order to comply with federal and applicable state securities
laws. 
 (b) Compliance with Securities Laws. Delivery of Common Stock under the Plan shall be subject to the requirement that,
if at any time counsel to the Corporation shall determine that the listing, registration or qualification of the shares of Common Stock upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or
regulatory body, is necessary as a condition of, or in connection with, the issuance of shares thereunder, such shares may not be delivered in whole or in part unless such listing, registration, qualification, consent or approval shall have been
effected or obtained on conditions acceptable to the Committee. Nothing herein shall be deemed to require the Corporation to apply for or to obtain such listing, registration or qualification. 

16.3 Effect of Certain Changes in Capitalization. In the event of any Change in Capitalization, a proportionate substitution or
adjustment may be made in (a) the aggregate number and/or kind of shares or other property reserved for issuance under the Plan, (b) the number and kind of shares or other property to be delivered under the Plan and (c) the number and
kind of shares or other property held in each Participant’s Share Account (if any), in each case as may be determined by the Committee in its sole discretion. Such other proportionate substitutions or adjustments may be made as shall be
determined by the Committee in its sole 

  
 18 

 
discretion. “Change in Capitalization” means any increase, reduction, change or exchange of shares of Common Stock for a different number or kind of shares or other securities or
property by reason of a reclassification, recapitalization, merger, consolidation, reorganization, issuance of warrants or rights, stock dividend, stock split or reverse stock split, combination or exchange of shares, repurchase of shares, change in
corporate structure or otherwise; or any other corporate action, such as declaration of a special dividend, that affects the capitalization of the Corporation. 
 Section 17.            Change of Control 
 17.1 Change of Control. For purposes of this Plan, a “Change of Control” shall be deemed to have occurred on the first to occur of any one of the events set forth in the following paragraphs:

 (a) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation (not including in
the securities Beneficially Owned by such Person any securities acquired directly from the Corporation or its Affiliates) representing 25% or more of either the then outstanding shares of Common Stock or the combined voting power of the
Corporation’s then outstanding voting securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (c) below; or 

(b) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on
January 25, 2002, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating
to the election of directors of the Corporation as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) whose appointment or election by the Board or nomination for election by the Corporation’s stockholders was approved
or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on January 25, 2002 or whose appointment, election or nomination for election was previously so approved or recommended;
or 
 (c) there is consummated a merger or consolidation of the Corporation or any direct or indirect subsidiary of the
Corporation with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 60% of the combined voting power of the voting securities of the Corporation or such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Corporation (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly
or indirectly, of securities of the Corporation (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Corporation or its Affiliates) representing 25% or more of either the then outstanding
shares of Common Stock or the combined voting power of the Corporation’s then outstanding voting securities; or 

  
 19 

 (d) the stockholders of the Corporation approve a plan of complete liquidation or
dissolution of the Corporation or there is consummated an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets (in one transaction or a series of related transactions within any period
of 24 consecutive months), other than a sale or disposition by the Corporation of all or substantially all of the Corporation’s assets to an entity, at least 75% of the combined voting power of the voting securities of which are owned by
stockholders of the Corporation in substantially the same proportions as their ownership of the Corporation immediately prior to such sale. 
 Notwithstanding the foregoing, no “Change of Control” shall be deemed to have occurred if there is consummated any transaction or series of integrated transactions immediately following which
the record holders of the Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Corporation
immediately following such transaction or series of transactions. 
 For purposes of the definitions of Change of Control and
Potential Change of Control, “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act; “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange
Act; “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended; and “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Corporation or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or indirectly, by the shareholders of the Corporation in substantially the same proportions as their ownership of stock of
the Corporation or (v) any individual, entity or group which is permitted to, and actually does, report its Beneficial Ownership on Schedule 13G (or any successor schedule); provided that if any such individual, entity or group subsequently
becomes required to or does report its Beneficial Ownership on Schedule 13D (or any successor schedule), such individual, entity or group shall be deemed to be a Person for purposes hereof on the first date on which such individual, entity or group
becomes required to or does so report Beneficial Ownership of all of the voting securities of the Corporation Beneficially Owned by it on such date. 
 17.2 Payments. Upon the occurrence of a Change of Control, and notwithstanding Section 7, 
 (a) payment of a Participant’s Cash Account balance shall be made immediately in cash in a lump sum; and 
 (b) all Share Units credited to a Participant’s Share Account shall be converted into an amount equal to the number of Share Units multiplied by the Fair Market Value, which amount shall be
(i) paid as soon as possible to such Participant and (ii) denominated in (A) such form of consideration as the Participant would have received had the Participant been the owner of record of such shares of Common Stock at the time of
such Change of Control, in the case of a “Change of Control With Consideration” or (B) cash, in the 

  
 20 

 
case of a “Change of Control Without Consideration”. For purposes of this Section 17.2(b), (I) “Change of Control With Consideration” shall mean a Change of Control
in which shares of Common Stock are exchanged or surrendered for shares, cash or other property and (II) “Change of Control Without Consideration” shall mean a Change of Control pursuant to which shares of Common Stock are not exchanged or
surrendered for shares, cash or other property. 

Section 18.            Rating Event 

18.1 Rating Event. The term “Rating Event” means the date on which the Corporation’s debt rating drops below an Investment
Grade Rating. “Investment Grade Rating” means a rating at or above Baa3 by Moody’s Investors Services, Inc. (or its successors) or a rating at or above BBB by Standard & Poor’s Corporation (or its successors). Only one
such rating at the required level is necessary for the Corporation to have an Investment Grade Rating for purposes of this Section. If either or both of these ratings cease to be available then an equivalent rating from a nationally prominent rating
agency shall be substituted by the Corporation. 
 18.2 Payment. Upon the occurrence of a Rating Event, and notwithstanding
Section 7: 
 (a) A Participant’s Cash Account balance attributable to Grandfathered Benefits shall be paid
immediately in cash in a lump sum; and 
 (b) A Participant’s Share Account balance attributable to Grandfathered Benefits
shall be paid immediately in cash in an amount equal to the number of Share Units then payable multiplied by the Fair Market Value on the date of payment; provided, however, that at the election of a Participant, made by written notice to the
Corporation prior to delivery of such cash, payments in respect of a Share Account may be made solely in Common Stock by converting Share Units into Common Stock on a one-for-one basis, with payment of fractional shares to be made in cash based upon
the Fair Market Value the date of payment; and 
 (c) In addition to payment of the Participant’s Cash Account balance as
described above, the Corporation shall pay the Participant an amount equal to the interest that would have been earned on the Accelerated Tax Amount from the date of the Rating Event to the date payment of Year Deferred Amounts was then scheduled to
commence, calculated at the interest rate determined under Section 6.2, compounded monthly, which interest amount shall then be discounted to the date of payment at a discount rate equal to the rate determined under Section 6.2. The
“Accelerated Tax Amount” means the Participant’s Cash Account balance attributable to Grandfathered Benefits multiplied by the Assumed Tax Rate. The “Assumed Tax Rate” means a percentage which reflects the highest stated
federal and state income tax rates imposed on residents of Wisconsin after giving effect to the deductibility of state income taxes. 
 (d) All account balances attributable to Non-Grandfathered Benefits shall be distributed pursuant to Section 7 and payment of such amounts shall not be impacted by a Rating Event. 

18.3 Revocation of Election. Upon the occurrence of a Rating Event, all deferral elections made prior thereto are revoked. 

  
 21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]