Document:

Exhibit 10.2

 

PARTICIPATION AGREEMENT

UNDER THE

DEFINED BENEFIT SUPPLEMENT EXECUTIVE
RETIREMENT PLAN

(Previously known as the Supplemental
Executive Retirement Plan)

 

Amended and Restated as of February 1,
2019

 

THIS PARTICIPATION
AGREEMENT (this “Participation Agreement”) is entered into this 1st day of February, 2019 by and between
First United Bank & Trust (the “Employer”) and [Carissa L. Rodeheaver][Jason B. Rush], an executive officer of
the Employer (the “Participant”).

 

RECITALS:

 

WHEREAS, the Employer
adopted the First United Bank & Trust Supplemental Executive Retirement Plan effective as of November 1, 2001, and the Employer
and the Participant entered into a Participation Agreement pursuant thereto on ______________, _____, which was subsequently amended
and restated (as amended and restated to date, the “Original Agreement”);

 

WHEREAS, the Employer
amended and restated the Supplemental Executive Retirement Plan, effective January __, 2019, to change the name of the Plan to:
“First United Bank & Trust Defined Benefit Supplemental Executive Retirement Plan”; and to make certain clarifying
changes, a copy of which is attached hereto as Exhibit A (as amended and restated, the “Plan”);

 

WHEREAS, the Employer
desires to amend and restate the Original Agreement (i) so that it recognizes the foregoing changes to the Plan, (ii) to revise
the definition of “Final Pay”, and (iii) to add level payment annuities as optional forms of payment of the Defined
Benefit, which are actuarially equivalent to the forms of payment made available under the Original Agreement; and

 

WHEREAS, the Participant
desires to consent to such amendment and restatement.

 

NOW, THEREFORE, in
consideration of the foregoing, the agreements and covenants set forth herein, and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree to amend and restate the Original Agreement so that it reads as
follows:

 

1.       Definitions.
Except as defined in the Recitals and below, capitalized terms in this Participation Agreement shall have the meanings given those
terms in the Plan.

 

		(a)	“Cause” has the meaning given that term in Section 8(a) hereof.

 

		(b)	“Change of Control Defined Benefit” means the Defined Benefits payable pursuant to
Section 3(b) hereof.

 

		(c)	“Competitive Employment” means the Participant engages, directly or indirectly, as
an owner, partner, member, director, officer, employee or agent of any sole proprietorship or entity, in the business of providing
goods or services that are substantially similar to those provided by the Employer in any county in which the Employer has a branch.

 

		(d)	“Defined Benefit” means any of the benefits described in paragraphs (a) through
(f) of Section 3 that become payable under this Participation Agreement.

 

		(e)	“Disability” shall have the meaning given that term under the First United Bank &
Trust Long Term Disability Plan, as in effect at the time a determination of Disability is to be made.

 

		(f)	“Disability Defined Benefit” means the Defined Benefits payable pursuant to Section
3(c) hereof.

 

     

     

    

 

		(g)	“Employer” means First United Bank & Trust, a Maryland commercial bank, and any
successor entity.

 

		(h)	“Final Pay” means an amount equal to the Participant’s annual base salary rate
immediately prior to the Participant’s Separation from Service.

 

		(i)	“Guaranteed Period Level Payment Life Annuity” means the distribution method described
in Section 4(a)(iv) hereof.

 

		(j)	“Key Employee” means, for the 12-month period beginning on a particular April 1, a
Participant described in Section 416(i) of the Code (disregarding Section 416(i)(5) of the Code and using the definition of compensation
under Treas. Reg. §1.415(c)-2(d)(4)) at any time during the 12-month period ending on the preceding December 31.

 

		(k)	“Normal Retirement” means Participant’s Separation from Service with the Employer
for any reason other than Cause after such Participant has both (i) completed ten (10) Years of Service and (ii) attained his or
her Normal Retirement Age.

 

		(l)	“Normal Retirement Age” means sixty (60) years of age.

 

		(m)	“Normal Retirement Defined Benefit” means the Defined Benefit payable pursuant to Section
3(a)(i) hereof.

 

		(n)	“Pension Plan” means the First United Bank & Trust Pension Plan (or any successor
or replacement plan) in effect as of the date that distributions of Defined Benefits commence hereunder.

 

		(o)	“Post-Retirement Survivor Benefit” means the Defined Benefits payable pursuant to Section
3(f) hereof.

 

		(p)	“Pre-Retirement Death Benefit” means the Defined Benefits payable pursuant to Section
3(e) hereof.

 

		(q)	“Pre-Retirement Termination Defined Benefit” means the Defined Benefits payable pursuant
to Section 3(d) hereof.

 

		(r)	“Separation from Service” means a termination of the Participant’s employment
with the Employer in accordance with Section 409A(a)(2)(A)(i) of the Code and any related regulations or other guidance promulgated
with respect to Section 409A of the Code (and any successor section or regulations).

 

		(s)	“Total Pay” for any given year means the Participant’s salary and targeted cash
bonus for such year.

 

		(t)	“Triggering Event” means the occurrence of any one of the following events subsequent
to a Change of Control:

 

		(i)	Participant's receipt of a letter of intent to dismiss without Cause, as defined in the Plan; or

 

		(ii)	termination of the Plan; or

 

		(iii)	relocation of Participant's employment to a location more than 50 miles from the Participant’s
place of employment at the time of the Change of Control; or

 

		(iv)	a 10% or greater reduction in Participant’s Total Pay for the year in which the Triggering
Event occurs from the prior year’s Total Pay, but disregarding any reduction in bonus or incentive compensation payments
which occurs in accordance with the terms of any written bonus or incentive compensation program as it reads before the occurrence
of a Change of Control; or

 

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		(v)	a change to Participant’s position that results in Participant not being deemed an executive
officer of Employer.

 

		(u)	“Pre-Retirement Termination” has the meaning given that term in Section 3(d)
hereof.

 

		(v)	“Pre-Retirement Termination Defined Benefit” has the meaning given that term in Section
3(d) hereof.

 

		(w)	“Year of Service” means each twelve (12) consecutive month period of full time employment
with the Employer. No credit will be received for a partial Year of Service.

 

2.       Effective
Date of Participation. The effective date of the Participant’s participation in the Plan was originally and shall remain
____________, _____.

 

3.       Defined
Benefit.

 

		(a)	Normal Retirement Defined Benefit.

 

		(i)	Subject to Section 3(g) hereof, upon Normal Retirement, the Participant shall be
entitled to a normal retirement Defined Benefit, expressed as a monthly single life annuity under Section 4(a)(ii) hereof,
equal to one-twelfth (1/12) of the sum of (A) two and one-half percent (2.5%) of Final Pay for each completed Year of Service,
up to a maximum of twenty-four (24) Years of Service (or sixty percent (60%) of Final Pay), and (B) one percent (1%) of Final Pay
for each Year of Service beyond twenty-four (24) Years of Service that is completed after the Participant attains Normal Retirement
Age, up to a maximum of five (5) Years of Service (or five percent (5%) of Final Pay) (collectively, the “Normal Retirement
Defined Benefit”). To avoid any doubt with respect to the foregoing sentence, the sum of items (A) and (B) above shall not
exceed sixty-five percent (65%) of the Participant’s Final Pay.

 

		(ii)	Notwithstanding anything to the contrary contained in subparagraph (i) of this paragraph
(a), for purposes of calculating the Participant’s Normal Retirement Defined Benefit, the Participant shall be deemed
to have twenty-four (24) Years of Service as of February 14, 2007; provided, however, that, if the Participant voluntarily
terminates his or her employment with the Employer for any reason other than because of (A) the relocation by the Employer of his
or her employment to a location more than 50 miles from the Participant’s place of employment immediately prior to the relocation,
(B) a 10% or greater reduction by the Employer in the Participant’s Total Pay for any year from the prior year’s Total
Pay, but disregarding any reduction in bonus or incentive compensation payments which occurs in accordance with the terms of any
written bonus or incentive compensation program, or (C) a change by the Employer to the Participant’s position that results
in the Participant not being deemed an executive officer of the Employer, then this subparagraph (ii) shall be of no force
or effect and the Participant’s Normal Retirement SERP Benefit shall be calculated based on actual Years of Service.

 

		(iii)	The Normal Retirement Defined Benefit shall be distributed in accordance with the election made
by the Participant pursuant to Section 4 hereof and shall be made or begin not later than the 15th day of the
third (3rd) calendar month following Normal Retirement.

 

		(b)	Change of Control Defined Benefit.

 

		(i)	Subject to Section 3(g) hereof, in the event the Participant has a Separation from Service
following a Change of Control and a subsequent Triggering Event, the Participant shall be entitled to a change of control Defined
Benefit, expressed as a monthly single life annuity under Section 4(a)(ii) hereof, equal to one-twelfth (1/12) of the greater
of (A) 60% of Final Pay or (B) his or her Normal Retirement Defined Benefit earned under Section 3(a) hereof as of the date of
the Separation of Service (the “Change of Control Defined Benefit”). Notwithstanding the foregoing, in no event will
the Change of Control Defined Benefit, together with amounts payable by Employer and its affiliated companies under all other plans
and arrangements upon a change in the ownership or effective control of the Employer (as contemplated by Section 280G of the Code),
exceed the maximum amount that can be paid without triggering a loss of Employer deduction under Section 280G of the Code or imposition
of an excise tax under Section 4999 of the Code. All rights and liabilities associated with the Participant's Defined Benefit shall
not be adversely affected, limited or reduced in any way due to a Change of Control and Triggering Event.

 

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		(ii)	The Change of Control Defined Benefit shall be distributed in accordance with the election made
by the Participant pursuant to Section 4 hereof and shall be made or begin not later than the 15th day of the
third (3rd) calendar month following the later of (A) the Participant’s Separation from Service or (B) the date
the Participant attains Normal Retirement Age.

 

		(c)	Disability Defined Benefit.

 

		(i)	Subject to Section 3(g) hereof, if the Participant has a Separation from Service due to
the Participant's Disability, then the Participant will be entitled to receive a lump sum equal to the actuarial equivalent of
his or her Normal Retirement Defined Benefit earned under Section 3(a) hereof as of the date of the Separation from Service,
less all payments received under any disability insurance benefit provided by the Employer regardless of whether the Participant
is taxed on premium payments made by the Employer with respect to such insurance policy (“Disability Defined Benefit”).

 

		(ii)	The Disability Defined Benefit shall be paid not later than the 15th day of the third
(3rd) calendar month following the Participant’s Separation from Service.

 

		(d)	Pre-Retirement Termination Defined Benefit.

 

		(i)	Subject to Section 3(g) hereof, in the event the Participant has a Separation from Service
for any reason other than due to Normal Retirement, after a Change of Control and subsequent Triggering Event, or due to death,
Disability, or Cause (a “Pre-Retirement Termination”), and provided the Participant is vested pursuant to Section
5(d) hereof, the Participant shall be entitled to receive his or her Normal Retirement Defined Benefit earned under Section
3(a) hereof as of the date of the Separation from Service (the “Pre-Retirement Termination Defined Benefit”).

 

		(ii)	The Pre-Retirement Termination Defined Benefit shall be distributed in accordance with the election
made by the Participant pursuant to Section 4 hereof and shall be made or begin not later than the 15th day of
the third (3rd) calendar month following the Participant’s attainment of Normal Retirement Age.

 

		(e)	Pre-Retirement Death Benefit.

 

		(i)	Subject to Section 3(g) hereof, if the Participant dies before the commencement of distribution
of his or her Normal Retirement Defined Benefit, Change of Control Defined Benefit, or Pre-Retirement Termination Defined Benefit
(as the case may be), then the Participant’s Beneficiary will be entitled to receive a lump sum equal to the actuarial equivalent
of the Participant’s Normal Defined Benefit earned under Section 3(a) as of the date of death (the “Pre-Retirement
Death Benefit”).

 

		(ii)	The Pre-Retirement Death Benefit shall be paid not later than the 15th day of the third
(3rd) calendar month following the Participant’s death.

 

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		(f)	Post-Retirement Survivor Benefit. If the Participant dies after the commencement of distribution
of his or her Normal Retirement Defined Benefit, Change of Control Defined Benefit, or Pre-Retirement Termination Defined Benefit
(as the case may be), then distribution of such benefits shall continue after the Participant's death only if the Participant elected
one of the following forms of distribution methods, as provided in Section 4 hereof (“Post-Retirement Survivor Benefit”):

 

		(i)	50% joint and survivor level payment annuity; or

 

		(ii)	75% joint and survivor level payment annuity; or

 

		(iii)	100% joint and survivor level payment annuity; or

 

		(iv)	Guaranteed Period Level Payment Life Annuity, but only until the guaranteed 120 months of payments
have been made.

 

		(g)	Offset of Defined Benefits. The Defined Benefits paid hereunder shall be offset, dollar-for-dollar,
by an amount equal to fifty-percent (50%) of the Participant's Social Security benefits received (or deemed to have been received)
by the Participant and one hundred-percent (100%) of the Pension Plan benefits received by the Participant. For purposes of this
Plan and offset calculation (including the calculation of a lump sum payment under Section 4(a)(i) hereof paid before the
earliest time allowed by law for receipt of Social Security benefits), the Participant shall be deemed to have begun receiving
Social Security benefits at the earliest time allowed by law. In no event shall military service certified to Participant as credited
service under the Pension Plan cause an increase to any offset amount under this Participation Agreement and Plan.

 

		(h)	Restriction on Timing of Distribution for Key Employees. Notwithstanding any provision of
this Participation Agreement to the contrary, if the Participant is a Key Employee and any class of securities of the Employer
(or of any person with whom the Employer would be considered a single employer under Section 414(b) and (c) of the Code) is publicly
traded as of the date of the Participant’s Separation from Service, no distribution may be made to the Participant on account
of such Separation from Service before the date that is six (6) months after the date of Separation from Service (or, if earlier,
the date of the Key Employee’s death). Any lump sum payment delayed pursuant to this paragraph will be paid, and any annuity
payments delayed pursuant to this paragraph will be accumulated and paid, during the seventh month following the month in which
the Separation from Service occurs.

 

		(i)	Exclusivity of Defined Benefits. This Section 3 is not intended to, and does not,
confer on the Participant the right to receive more than one of the Defined Benefits described in paragraphs (a) through
(e) of this Section 3.

 

4.       Method
of Distribution of Defined Benefits.

 

		(a)	Initial Election. Concurrently with the execution of this Participation Agreement (or at
such later time as is permitted under Section 409A of the Code and applicable Internal Revenue Service guidance adopted thereunder),
the Participant shall elect any one of the following distribution methods, which, subject to paragraph (b) of this Section
4, shall be irrevocable:

 

		(i)	lump sum payment; or

 

		(ii)	single life annuity; or

 

		(iii)	level payment single life annuity;

 

		(iv)	level payment single life annuity with 120 months of guaranteed payments; or

 

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		(v)	50% joint and survivor level payment annuity; or

 

		(vi)	75% joint and survivor level payment annuity; or

 

		(vii)	100% joint and survivor level payment annuity.

 

In the event
the Participant fails to elect any of the above forms of distribution methods as required herein, the Participant shall be deemed
to have chosen the level payment single life annuity described in Section 4(a)(iii). Except for a lump sum distribution,
all distributions shall be made on a monthly basis.

 

In the case
of a single life annuity, due to the offsets required by Section 3(g), the amount of any Defined Benefit payment that is
made prior to the date(s) on which the payment of the Participant’s Pension Plan benefits and/or Social Security benefits
commence (or are deemed to commence) will be greater than the amount of any Defined Benefit payment that is made after such date(s).
In the case of a level payment annuity, the calculation of the Defined Benefit payments will take into account the offsets required
by Section 3(g) such that the payments will be approximately the same both before and after the commencement (or deemed
commencement) of the Participant’s Pension Plan benefits and Social Security benefits.

 

If the Participant
elects a lump sum payment method of distribution, the Participant acknowledges and accepts that the lump sum payment actually received
shall be the actuarial equivalent of the single life annuity described in Section 4(a)(ii). If the Participant elects any
level payment annuity method of distribution, including the Guaranteed Period Level Payment Life Annuity, the Participant acknowledges
and accepts that the elected method is actuarially equivalent to the single life annuity described in Section 4(a)(ii) and
his or her monthly distribution will be adjusted to actuarially accommodate such distribution election.

 

If the Participant
elects a distribution method other than a single life annuity described in Section 4(a)(ii), the actuarial equivalent will
be determined using the same actuarial equivalent assumptions contained in the Pension Plan. If there is no successor or replacement
plan to the Pension Plan, the actuarial equivalent will be determined using reasonable actuarial assumptions adopted by the Administrator
and in effect as of the date that distributions of Defined Benefits commence hereunder.

 

		(b)	Changes to Distribution Method. The Participant may make one or more subsequent elections
with respect to the manner in which his or her Defined Benefit is to be distributed pursuant to a written election in such form
as is acceptable to the Administrator. A subsequent election may be made at any time prior to the commencement of Defined Benefits;
provided, however, that a subsequent election changing the form of distribution to or from a lump sum payment must (i) in the case
of a Change in Control Defined Benefit payable upon the date the Participant attains Normal Retirement Age or in the case of a
Pre-Retirement Termination Defined Benefit, be made at least 12 months prior to the date originally scheduled for distribution
of the Defined Benefit; (ii) provide for an effective date at least 12 months following the subsequent election; and (iii) postpone
the commencement of distribution for a period of not less than five (5) years from the previous distribution date.

 

5.       Vesting.
Subject to Section 8 hereof, a Participant shall become 100% vested in his or her Defined Benefit upon the following events:

 

		(a)	upon the Participant’s Normal Retirement;

 

		(b)	upon the Participant’s Separation from Service following a Change of Control and subsequent
Triggering Event;

 

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		(c)	upon a Separation from Service due to a Disability;

 

		(d)	upon completion of ten (10) Years of Service; or

 

		(e)	upon the Participant’s death.

 

There shall
be no partial vesting of Defined Benefits.

 

6.       Taxes;
Withholding. The Participant shall be responsible for the payment of all applicable local, state and federal taxes associated
with the Participant’s participation in the Plan and the receipt of Defined Benefits hereunder, and the Employer shall have
the right to deduct from any distributions hereunder any such taxes or other amounts required by law to be withheld therefrom.

 

7.       Beneficiaries.

 

		(a)	Pre-Retirement Death Benefit. The Participant may designate a Beneficiary for the Pre-Retirement
Death Benefit in accordance with rules established by the Administrator. A Participant may change any prior Beneficiary designation,
without notice to or consent of any previously designated Beneficiary, in accordance with rules established by the Administrator.
In the absence of a Beneficiary designation or if the Beneficiary predeceases the Participant, the Beneficiary will be the death
beneficiary designated by the Participant for purposes of the life insurance policy owned by the Employer on the life of the Participant
or, if no such beneficiary is named or no life insurance policy exists, the Participant’s estate. If more than one person
is the Beneficiary, each Beneficiary will receive equal divisible amounts of any death benefit payable, unless otherwise indicated
on the applicable form.

 

		(b)	Post-Retirement Survivor Benefit. If the Participant elects a joint and survivor annuity
or a Guaranteed Period Level Payment Life Annuity, he or she shall designate, in accordance with rules established by the Administrator,
a Beneficiary to receive the Post-Retirement Survivor Benefit, if any, upon his or her death.

 

		(c)	Lost Beneficiary.

 

		(i)	The Participant and his or her Beneficiaries shall have the obligation to keep the Administrator
informed of their current address until such time as all benefits due have been paid.

 

		(ii)	If a Participant or Beneficiary cannot be located by the Administrator exercising diligence, then,
in its sole discretion, the Administrator may presume that the Participant or Beneficiary is deceased for purposes of the Participation
Agreement and all unpaid amounts (net of due diligence expenses) owed to the Participant or Beneficiary shall be paid accordingly,
or, if a Beneficiary cannot be so located, then such amounts may be forfeited. Any such presumption of death shall be final, conclusive,
and binding on all parties.

 

8.       Forfeiture
of Defined Benefits.

 

		(a)	No Benefits Payable Upon Termination for Cause. Notwithstanding anything contained herein
to the contrary, no Defined Benefits shall be payable to the Participant if his or her employment with the Employer is terminated
for Cause, regardless of whether the Participant would otherwise be vested in his or her Defined Benefit. For purposes hereof,
a Participant whose employment is terminated for any of the following reasons shall be regarded as having been terminated for “Cause”:

 

		(i)	willful or grossly negligent misconduct that is materially injurious to the Employer;

 

		(ii)	embezzlement or misappropriation of funds or property of the Employer;

 

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		(iii)	conviction of a felony or the entrance of a plea of guilty or nolo contendere to a felony;

 

		(iv)	conviction of any crime involving fraud, dishonesty, moral turpitude or breach of trust or the
entrance of a plea of guilty or nolo contendere to such a crime;

 

		(v)	failure or refusal by the Participant to devote full business time and attention to the performance
of his or her duties and responsibilities if such breach has not been cured within fifteen (15) days after notice is given to the
Participant; or

 

		(vi)	issuance of a final non-appealable order or other direction by a Federal or state regulatory agency
prohibiting the Participant’s employment in the business of banking.

 

		(b)	Competitive Employment. Notwithstanding anything contained herein to the contrary, and regardless
of whether the Participant would otherwise be vested in his or her Defined Benefit, the Employer’s obligation to make payments
to the Participant or a Beneficiary under this Participation Agreement will be conditioned upon (i) the Participant refraining
from Competitive Employment for a period of three (3) years following his or her Separation from Service with the Employer, (ii)
the Participant refraining from injurious disclosure of confidential information concerning the Employer, and (iii) the Participant
remaining available, at the Employer’s reasonable request, to provide at least six (6) hours’ of transition services
per month for twelve (12) months following his or her Separation from Service (except in the case of a Separation from Service
due to death or Disability); provided, however, that only condition (ii) of this paragraph shall apply if the Participant
has a Separation from Service following a Change of Control and subsequent Triggering Event. If the Participant violates any of
the foregoing conditions, then the Participant will forfeit all then-unpaid amounts under this Participation Agreement and be obligated
to reimburse the Employer for all amounts paid hereunder, plus interest thereon at the rate of 10% per year. If the Employer engages
an attorney that is not its employee to collect any amounts owed by the Participant pursuant to this paragraph, then the
Participant will be obligated to reimburse the Employer for any associated attorney’s fees and other costs of collection.

 

		9.	General Provisions

 

		(a)	No Assignment. Defined Benefits under this Participation Agreement shall not be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any such action shall
be void for all purposes of the Participation Agreement. Defined Benefits shall not in any manner be subject to the debts, contracts,
liabilities, engagements, or torts of any person, nor shall they be subject to attachments or other legal process for or against
any person, except to such extent as may be required by law. This paragraph (a) does not prohibit the transfer or assignment
to the Participant’s spouse, former spouse or child of the right to receive all or a portion of the benefits payable to the
Participant under this Participation Agreement, if such transfer or assignment is made pursuant to a domestic relations order issued
by a court that is legally binding on the Participant. Payment of Defined Benefits pursuant to such an order may not be made before
the earlier of (i) when Defined Benefits are actually paid to the Participant or (ii) a date specified in the order that is not
before the earliest date that Defined Benefits could actually begin being paid to the Participant if he or she terminated employment.
Any provision of an order for payment of Defined Benefits upon the election of the spouse, former spouse or child cannot be given
effect. Any payment of Defined Benefits pursuant to a domestic order will be subject to tax withholding as provided by law. If
a domestic relations order is served on the Employer, it will be processed in accordance with the Employer’s rules for processing
qualified domestic relations orders established pursuant to Section 414(p) of the Code.

 

		(b)	No Employment Rights. Participation in the Plan, and the execution of this Participation
Agreement, shall not be construed to confer upon the Participant the legal right to be retained in the employ of the Employer,
or give the Participant or any Beneficiary, or any other person, any right to any payment whatsoever, except to the extent of the
benefits provided for hereunder. The Participant shall remain subject to discharge to the same extent as if this Plan had never
been adopted.

 

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		(c)	Incompetence. If the Administrator determines that any person to whom a benefit is payable
under this Participation Agreement is incompetent by reason of physical or mental disability, the Administrator shall have the
power to cause the payments becoming due to such person to be made to another individual for the Participant’s benefit without
responsibility of the Administrator or the Employer to see to the application of such payments. Any payment made pursuant to such
power shall, as to such payment, operate as a complete discharge of the Employer, the Administrator, and their representatives.

 

		(d)	Identity. If, at any time, any doubt exists as to the identity of any person entitled to
any payment hereunder or the amount or time of such payment, the Administrator shall be entitled to hold such sum until such identity
or amount or time is determined or until an order of a court of competent jurisdiction is obtained. The Administrator shall also
be entitled to pay such sum into court in accordance with the appropriate rules of law. Any expenses incurred by the Employer
or Administrator incident to such proceeding or litigation shall be charged against the Defined Benefits of the Participant.

 

		(e)	Amendment and Termination. Except as prohibited by applicable law, the Employer may unilaterally
modify, amend or terminate this Participation Agreement; provided, however, that no modification, amendment or termination shall
reduce any vested Defined Benefit to which the Participant has already become entitled at the time of the modification, amendment
or termination, including, without limitation, Defined Benefits to which a Participant became entitled due to a Change of Control,
unless the Participant consents in writing to such modification, amendment or termination. Any modification, amendment or termination
shall be evidenced by a written instrument executed by the Employer and delivered to the Participant.

 

		(f)	Compliance with Law. Notwithstanding any other provision of this Participation Agreement
to the contrary, the Employer may amend, modify or terminate this Participation Agreement, without the consent of the Participant,
as the Employer deems necessary or appropriate to ensure compliance with any law, rule, regulation or other regulatory pronouncement
applicable to the Plan, including, without limitation, Section 409A of the Code and any related regulations or other guidance promulgated
with respect to Section 409A of the Code.

 

		(f)	Governing Law. To the extent not preempted by federal law, this Participation Agreement
shall be governed by, construed and administered under, the laws of the State of Maryland, exclusive of the conflict of laws principles
of that State.

 

		(g)	Severability. Should any provision of this Participation Agreement be deemed or held to
be unlawful or invalid for any reason, such fact shall not adversely affect the other provisions hereof unless such invalidity
shall render impossible or impractical the functioning of this Participation Agreement and, in such case, the Employer shall immediately
adopt a new provision to take the place of the one held illegal or invalid.

 

		(h)	Headings. The headings contained in this Participation Agreement are inserted only as a
matter of convenience and for reference and in no way define, limit, enlarge, or describe the scope or intent of this Plan nor
in any way shall they affect this Participation Agreement or the construction of any provision thereof.

 

		(i)	Terms. Singular nouns shall be read as plural and masculine pronouns shall be read as feminine,
and vice versa, as appropriate.

 

		(j)	Successors. This Participation Agreement shall be binding upon each of the parties and shall
also be binding upon their respective successors or assigns.

 

		(k)	Application of the Plan; Entire Agreement. The Participant acknowledges, by executing this
Participation Agreement, that (i) this Participation Agreement is subject in all respects to the provisions of the Plan, as amended
from time to time, the terms of which are incorporated herein by reference and made a part hereof, (ii) that a copy of the Plan
and all amendments thereto through the date hereof were provided to the Participant on the date hereof, and (iii) he or she understands
and accepts of all of the terms and conditions of the Plan. This Participation Agreement sets forth the entire agreement of the
parties with respect to the subject matter hereof. Any and all prior agreements or understandings with respect to such matters
are hereby superseded.

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF,
each of the parties has caused this Participation Agreement to be executed as of the day first above written.

 

	ATTEST:	 	FIRST UNITED BANK AND TRUST:	 
	 	 	 	 
	 	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 
	WITNESS:	 	PARTICIPANT:	 
	 	 	 	 
	 	 	 	 
	 	 	[Carissa L. Rodeheaver][Jason B. Rush]	 

 

 

    	 	10	 

     

    

 

EXHIBIT A

 

AMENDED AND RESTATED DEFINED BENEFIT
SUPPLEMENTAL EXECUTIVE RETIREMENT PLANcytx-ex1052_35.htm

Exhibit 10.52

 

FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS FOURTH AMENDMENT to Loan and Security Agreement (this “Amendment”) is made effective as of December 31, 2018 (the “Amendment Date”) and made, by and among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (in its individual capacity, “Oxford”; and in its capacity as Collateral Agent, “Collateral Agent”), the Lenders listed on Schedule 1.1 thereof from time to time including Oxford in its capacity as a Lender (each a “Lender” and collectively, the “Lenders”) and CYTORI THERAPEUTICS, INC., a Delaware corporation with offices located at 3020 Callan Road, San Diego, CA  92121 (“Borrower”).

WHEREAS, Collateral Agent, Borrower and Lenders party thereto from time to time have entered into that certain Loan and Security Agreement, dated as of May 29, 2015 (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Lenders have provided to Borrower certain loans in accordance with the terms and conditions thereof; and

WHEREAS, Borrower, Lenders and Collateral Agent desire to amend certain provisions of the Loan Agreement as provided herein and subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower, Lenders and Collateral Agent hereby agree as follows:

	
 
	
1.
	
Capitalized terms used herein but not otherwise defined shall have the respective meanings given to them in the Loan Agreement.

 

	
 
	
2.
	
Section 2.2(b) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

(b)Repayment.  Borrower shall make monthly payments of interest only commencing on the first (1st) Payment Date following the Funding Date of each Term Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Amortization Date.  Borrower agrees to pay, on the Funding Date of each Term Loan, any initial partial monthly interest payment otherwise due for the period between the Funding Date of such Term Loan and the first Payment Date thereof.  Commencing on the Amortization Date, and continuing on the Payment Date of each month thereafter, Borrower shall make consecutive monthly payments of principal (except that no payments of principal shall be made on the Payment Dates from September 1, 2017 through December 1, 2017; provided, further, that upon the occurrence of the I/O Extension Event payments of principal shall also not be made on the Payment Dates from January 1, 2018 through August 1, 2018) and applicable interest (regardless of whether or not on any given Payment Date a principal payment is due hereunder), in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective 

 

 

 

rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule equal to forty-two (42) months (except that as set forth above, no payments of principal shall be made on the Payment Dates from September 1, 2017 through August 1, 2018; provided, further, that payments of principal shall also not be made on the Payment Dates from September 1, 2018 through March 1, 2019).  The principal payments due hereunder shall be as set forth on the amortization table (as amended from time to time) attached to the Disbursement Letter entered into on the Effective Date.  The Final Payment and all unpaid principal and accrued and unpaid interest with respect to each Term Loan are due and payable in full on the Maturity Date.  Each Term Loan may only be prepaid in accordance with Sections 2.2(c) and 2.2(d).

 

	
 
	
3.
	
Section 2.2(d) of the Loan Agreement is hereby amended and restated as follows:

 

(d)Permitted Prepayment of Term Loan.  Borrower shall have the option to prepay all, but, subject to the second paragraph of this Section 2.2(d), not less than all, of the Term Loan advanced by the Lenders under this Agreement, provided Borrower, subject to the second paragraph of this Section 2.2(d), (i) provides written notice to Collateral Agent of its election to prepay the Term Loan at least fifteen (15) days prior to such prepayment, and (ii) pays to the Lenders on the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the Term Loan plus accrued and unpaid interest thereon through the prepayment date, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts.

 

Notwithstanding anything herein to the contrary, Borrower shall promptly pay to each Lender (in accordance with its Pro Rata Share) (i) 75% of all proceeds received by Borrower from the issuance and sale by Borrower of its unsecured subordinated convertible debt, (ii) 75% of all proceeds received by Borrower in connection with a joint venture, collaboration or other partnering transaction, (iii) 75% of all proceeds received by Borrower in connection with any licenses, (iv) 75% of all proceeds received by Borrower in the form of dividends (other than non-cash dividends received from wholly owned Subsidiaries of Borrower) and (v) all net proceeds received by Borrower from sale or transfer of any assets of Borrower (provided; nothing in this Section 2.2(d) is a consent to or meant to be construed as a consent to any disposition of any assets of Borrower not otherwise permitted by this Agreement).    For the purposes of clarification, proceeds received from sale and issuance by Borrower of its equity securities (which are not in the form of convertible debt) shall not be subject to the payment obligations of Borrower under the immediately preceding sentence.  All such payments shall be applied to (A) payment of a portion of the outstanding principal of the Term Loans plus all accrued and unpaid interest thereon outstanding on such portion being prepaid, (B) the applicable Final Payment with respect to the portion of such Term Loans being prepaid, and (C) the applicable Prepayment Fee with respect to the portion of such Term Loans being prepaid.  For the purposes of clarity, any partial prepayment of Term Loans hereunder shall be applied pro-rata to all outstanding amounts under each Term Loan, and shall be applied 

2

 

pro-rata within each Term Loan tranche to reduce amortization payments under Section 2.2(b) on a pro-rata basis.

 

	
 
	
4.
	
Section 2.5 of the Loan Agreement is hereby amended by deleting the word “and” immediately following Section 2.5(f), replacing “.” at the end of Section 2.5(g) with “; and” and adding Section 2.5(h) thereto as follows:

 

(h)  Fourth Amendment Fee.  A fully earned and non-refundable fourth amendment fee in the amount of Three Hundred Fifty Thousand Dollars ($350,000.00) which shall become due and payable upon the earlier of: (i) the Maturity Date, (ii) the acceleration of any Term Loan, or (iii) the prepayment of a Term Loan pursuant to Section 2.2(c) or (d).

 

	
 
	
5.
	
Section 6.10 of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

Borrower shall at all times maintain unrestricted cash and/or Cash Equivalents in Collateral Accounts subject to Control Agreements in favor of Collateral Agent in a minimum aggregate amount of Two Million Dollars ($2,000,000.00).

 

	
 
	
6.
	
The following Section 6.14 is hereby added to the Loan Agreement:

 

6.14 Entry into Agreement.  On or before January 31, 2019, one of the following: Asset Purchase Agreement Event, Equity Agreement Event or the Merger Agreement Event must have occurred in accordance with the terms of this Agreement; provided, however, nothing herein constitutes a consent by any Lender or Collateral Agent to any of the aforementioned.

 

	
 
	
7.
	
Section 8.2(a) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

(a) Borrower or any of its Subsidiaries fails or neglects to perform any obligation in Sections 6.2 (Financial Statements, Reports, Certificates), 6.4 (Taxes), 6.5 (Insurance), 6.6 (Operating Accounts), 6.7 (Protection of Intellectual Property Rights), 6.9 (Notice of Litigation and Default), 6.10 (Financial Covenant), 6.12 (Creation/Acquisition of Subsidiaries), 6.14 (Entry into Agreement) or Borrower violates any covenant in Section 7 or Section 13; or

 

	
 
	
8.
	
Section 13.1 of the Loan Agreement is hereby amended by adding the following definitions therein in alphabetical order:

 

“Asset Purchase Agreement Event” means the entry into an asset purchase agreement by Borrower, on and after December 21, 2018 and on or before January 31, 2019, which asset purchase agreement provides for the Transfer by Borrower to a third party of parts of Borrower’s business and/or property, with a minimum upfront gross proceeds to Borrower of Four Million Dollars ($4,000,000.00) upon the initial closing of such transaction, which must be contemplated to occur on or prior to March 31, 2019, and 

3

 

which agreement is in such form and substance as are acceptable and satisfactory to Collateral Agent and Required Lenders in their reasonable discretion.

 

“Equity Agreement Event” means the entry by Borrower, on and after December 21, 2018 and on or before January 31, 2019, into a binding agreement for the issuance and sale of its equity securities or unsecured convertible Subordinated Debt which would result unrestricted gross cash proceeds of not less than Seven Million Five Hundred Thousand Dollars ($7,500,000.00) to Borrower on or before March 31, 2019, and which agreement is in such form and substance as are acceptable and satisfactory to Collateral Agent and Required Lenders in their reasonable discretion.

 

“Merger Agreement Event” means the entry into a merger agreement by Borrower, on and after December 21, 2018 and on or before January 31, 2019, which merger agreement provides for the merger of Borrower with and into a third party pursuant to which all of the Obligations will be paid down to a level satisfactory to the Lenders and Collateral Agent in their sole discretion  at the time of the consummation of the merger on or prior to March 31, 2019, and which agreement is in such form and substance as are acceptable and satisfactory to Collateral Agent and Required Lenders in their reasonable discretion but does not require the consent of the Required Lenders for Borrower’s entry thereinto under Section 7.3 of the Loan Agreement.

 

	
 
	
9.
	
Section 13.1 of the Loan Agreement is hereby further amended by amending and restating the following definition therein as follows:

 

“Maturity Date” is June 1, 2020.

 

	
 
	
10.
	
The amortization table attached as Exhibit A to the Disbursement Letter entered into on the Effective Date, is hereby amended and restated as set forth on Exhibit A hereto.

 

	
 
	
11.
	
Exhibit C to the Loan Agreement is hereby amended and restated in its entirety as set forth on Exhibit B hereto.

 

	
 
	
12.
	
Limitation of Amendment.

 

	
 
	
a.
	
The amendments set forth above are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right, remedy or obligation which Lenders or Borrower may now have or may have in the future under or in connection with any Loan Document, as amended hereby.

 

	
 
	
b.
	
This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

 

4

 

	
 
	
13.
	
To induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders as follows: 

 

	
 
	
a.
	
Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

 

	
 
	
b.
	
Borrower has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

 

	
 
	
c.
	
The organizational documents of Borrower delivered to Collateral Agent on the Effective Date, and updated pursuant to subsequent deliveries by Borrower to Collateral Agent, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (i) any material law or regulation binding on or affecting Borrower, (ii) any material contractual restriction with a Person binding on Borrower, (iii) any material order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (iv) the organizational documents of Borrower;

 

	
 
	
d.
	
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 

 

	
 
	
e.
	
This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 

 

	
 
	
14.
	
Borrower hereby remises, releases, acquits, satisfies and forever discharges the Lenders and Collateral Agent, their agents, employees, officers, directors, predecessors, attorneys and all others acting or purporting to act on behalf of or at the direction of the Lenders and Collateral Agent (“Releasees”), of and from any and all manner of actions, causes of action, suit, debts, accounts, covenants, contracts, controversies, agreements, variances, damages, judgments, claims and demands whatsoever, in law or in equity, which any of such parties ever had, now has or, to the extent arising from or in connection with any act, omission or state of facts taken or existing on or prior to the date hereof, may have 

5

 

	
 
		
after the date hereof against the Releasees, for, upon or by reason of any matter, cause or thing whatsoever relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof through the date hereof.  Without limiting the generality of the foregoing, Borrower waives and affirmatively agrees not to allege or otherwise pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights they do, shall or may have as of the date hereof, including the rights to contest: (a) the right of Collateral Agent and each Lender to exercise its rights and remedies described in the Loan Documents; (b) any provision of this Amendment or the Loan Documents; or (c) any conduct of the Lenders or other Releasees relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof.

 

	
 
	
15.
	
Except as expressly set forth herein, the Loan Agreement shall continue in full force and effect without alteration or amendment.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.

 

	
 
	
16.
	
This Amendment shall be deemed effective as of the Amendment Date upon (a) the due execution and delivery to Collateral Agent of this Amendment by each party hereto, and (b) Borrower’s payment of all Lenders’ Expenses incurred through the date hereof, which may be debited from any of Borrower’s accounts.

 

	
 
	
17.
	
This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument.

 

	
 
	
18.
	
This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.

 

 

[Balance of Page Intentionally Left Blank]

 

6

 

IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to Loan and Security Agreement to be executed as of the date first set forth above.

			
	
BORROWER:
	
 
	
 

	
 
	
 
	
 

	
CYTORI THERAPEUTICS, INC.
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By: /s/ Tiago Girao
	
 
	
 

	
Name: Tiago Girao
	
 
	
 

	
Title: VP Finance and Chief Financial Officer
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
COLLATERAL AGENT AND LENDER:
	
 
	
 

	
 
	
 
	
 

	
OXFORD FINANCE LLC
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By: /s/ Colette H. Featherly
	
 
	
 

	
Name: Colette H. Featherly
	
 
	
 

	
Title: Senior Vice President
	
 
	
 

 

 

 

Exhibit A

 

Amortization Table

 

							
	
 
	
Start Date:
	
5/29/2015
	
 
	
Disclaimer:
	
 
	
 

	
 
	
Interest Rate:
	
8.95%
	
 
	
THIS IS A STANDARD AMORTIZATION

	
 
	
Term:
	
60
	
 
	
SCHEDULE.  IT IS NOT INTENDED TO BE 

	
 
	
Payment:
	
Varies
	
 
	
USED FOR PAYOFF PURPOSES.
	
 

	
 
	
1st Amendment Fee:
	
$25,000.00 
	
 
	
 
	
 
	
 

	
 
	
2nd Amendment Fee:
	
$250,000.00 
	
 
	
 
	
 
	
 

	
 
	
3rd Amendment Fee:
	
$50,000.00 
	
 
	
 
	
 
	
 

	
 
	
Fourth Amendment Fee:
	
$350,000.00 
	
 
	
 
	
 
	
 

	
 
	
Final Payment:
	
$1,088,550.00 
	
6.15%
	
 
	
 
	
 

	
 
	
Amount:
	
17,700,000.00
	
 
	
 
	
 
	
 

	
 
	
Interim Interest  Days:
	
3
	
 
	
 
	
 
	
 

	
 
	
Interim Interest:
	
$13,201.25 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PMT
	
Payment
	
Beginning
	
Monthly
	
 
	
 
	
Ending

	
No.
	
Date
	
Balance
	
Payment
	
Interest
	
Principal
	
Balance

	
 
	
6/1/15
	
Interim Interest Due
	
$17,700,000.00 

	
1
	
7/1/15
	
$17,700,000.00 
	
$132,012.50 
	
$132,012.50 
	
$0.00 
	
$17,700,000.00 

	
2
	
8/1/15
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
3
	
9/1/15
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
4
	
10/1/15
	
$17,700,000.00 
	
$132,012.50 
	
$132,012.50 
	
$0.00 
	
$17,700,000.00 

	
5
	
11/1/15
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
6
	
12/1/15
	
$17,700,000.00 
	
$132,012.50 
	
$132,012.50 
	
$0.00 
	
$17,700,000.00 

	
7
	
1/1/16
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
8
	
2/1/16
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
9
	
3/1/16
	
$17,700,000.00 
	
$127,612.08 
	
$127,612.08 
	
$0.00 
	
$17,700,000.00 

	
10
	
4/1/16
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
11
	
5/1/16
	
$17,700,000.00 
	
$132,012.50 
	
$132,012.50 
	
$0.00 
	
$17,700,000.00 

	
12
	
6/1/16
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
13
	
7/1/16
	
$17,700,000.00 
	
$132,012.50 
	
$132,012.50 
	
$0.00 
	
$17,700,000.00 

	
14
	
8/1/16
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
15
	
9/1/16
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
16
	
10/1/16
	
$17,700,000.00 
	
$132,012.50 
	
$132,012.50 
	
$0.00 
	
$17,700,000.00 

	
17
	
11/1/16
	
$17,700,000.00 
	
$136,412.92 
	
$136,412.92 
	
$0.00 
	
$17,700,000.00 

	
18
	
12/1/16
	
$17,700,000.00 
	
$132,012.50 
	
$132,012.50 
	
$0.00 
	
$17,700,000.00 

	
19
	
1/1/17
	
$17,700,000.00 
	
$726,412.92 
	
$136,412.92 
	
$590,000.00 
	
$17,110,000.00 

	
20
	
2/1/17
	
$17,110,000.00 
	
$721,865.82 
	
$131,865.82 
	
$590,000.00 
	
$16,520,000.00 

	
21
	
3/1/17
	
$16,520,000.00 
	
$704,997.56 
	
$114,997.56 
	
$590,000.00 
	
$15,930,000.00 

	
22
	
4/1/17
	
$15,930,000.00 
	
$712,771.63 
	
$122,771.63 
	
$590,000.00 
	
$15,340,000.00 

	
23
	
5/1/17
	
$15,340,000.00 
	
$704,410.83 
	
$114,410.83 
	
$590,000.00 
	
$14,750,000.00 

	
24
	
6/1/17
	
$14,750,000.00 
	
$703,677.43 
	
$113,677.43 
	
$590,000.00 
	
$14,160,000.00 

	
25
	
7/1/17
	
$14,160,000.00 
	
$695,610.00 
	
$105,610.00 
	
$590,000.00 
	
$13,570,000.00 

	
26
	
8/1/17
	
$13,570,000.00 
	
$694,583.24 
	
$104,583.24 
	
$590,000.00 
	
$12,980,000.00 

	
27
	
9/1/17
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
28
	
10/1/17
	
$12,980,000.00 
	
$96,809.17 
	
$96,809.17 
	
$0.00 
	
$12,980,000.00 

	
29
	
11/1/17
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
30
	
12/1/17
	
$12,980,000.00 
	
$96,809.17 
	
$96,809.17 
	
$0.00 
	
$12,980,000.00 

	
31
	
1/1/18
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
32
	
2/1/18
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
33
	
3/1/18
	
$12,980,000.00 
	
$90,355.22 
	
$90,355.22 
	
$0.00 
	
$12,980,000.00 

	
34
	
4/1/18
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
35
	
5/1/18
	
$12,980,000.00 
	
$96,809.17 
	
$96,809.17 
	
$0.00 
	
$12,980,000.00 

	
36
	
6/1/18
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
37
	
7/1/18
	
$12,980,000.00 
	
$96,809.17 
	
$96,809.17 
	
$0.00 
	
$12,980,000.00 

	
38
	
8/1/18
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
39
	
9/1/18
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
40
	
10/1/18
	
$12,980,000.00 
	
$96,809.17 
	
$96,809.17 
	
$0.00 
	
$12,980,000.00 

	
41
	
11/1/18
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
42
	
12/1/18
	
$12,980,000.00 
	
$96,809.17 
	
$96,809.17 
	
$0.00 
	
$12,980,000.00 

	
43
	
1/1/19
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
44
	
2/1/19
	
$12,980,000.00 
	
$100,036.14 
	
$100,036.14 
	
$0.00 
	
$12,980,000.00 

	
45
	
3/1/19
	
$12,980,000.00 
	
$90,355.22 
	
$90,355.22 
	
$0.00 
	
$12,980,000.00 

	
46
	
4/1/19
	
$12,980,000.00 
	
$965,369.47 
	
$100,036.14 
	
$865,333.33 
	
$12,114,666.67 

	
47
	
5/1/19
	
$12,114,666.67 
	
$955,688.56 
	
$90,355.22 
	
$865,333.33 
	
$11,249,333.33 

	
48
	
6/1/19
	
$11,249,333.33 
	
$952,031.32 
	
$86,697.99 
	
$865,333.33 
	
$10,384,000.00 

	
49
	
7/1/19
	
$10,384,000.00 
	
$942,780.67 
	
$77,447.33 
	
$865,333.33 
	
$9,518,666.67 

	
50
	
8/1/19
	
$9,518,666.67 
	
$938,693.17 
	
$73,359.84 
	
$865,333.33 
	
$8,653,333.33 

	
51
	
9/1/19
	
$8,653,333.33 
	
$932,024.09 
	
$66,690.76 
	
$865,333.33 
	
$7,788,000.00 

	
52
	
10/1/19
	
$7,788,000.00 
	
$923,418.83 
	
$58,085.50 
	
$865,333.33 
	
$6,922,666.67 

	
53
	
11/1/19
	
$6,922,666.67 
	
$918,685.94 
	
$53,352.61 
	
$865,333.33 
	
$6,057,333.33 

	
54
	
12/1/19
	
$6,057,333.33 
	
$910,510.94 
	
$45,177.61 
	
$865,333.33 
	
$5,192,000.00 

	
55
	
1/1/20
	
$5,192,000.00 
	
$905,347.79 
	
$40,014.46 
	
$865,333.33 
	
$4,326,666.67 

	
56
	
2/1/20
	
$4,326,666.67 
	
$898,678.71 
	
$33,345.38 
	
$865,333.33 
	
$3,461,333.33 

	
57
	
3/1/20
	
$3,461,333.33 
	
$890,288.59 
	
$24,955.25 
	
$865,333.33 
	
$2,596,000.00 

	
58
	
4/1/20
	
$2,596,000.00 
	
$885,340.56 
	
$20,007.23 
	
$865,333.33 
	
$1,730,666.67 

	
59
	
5/1/20
	
$1,730,666.67 
	
$878,241.22 
	
$12,907.89 
	
$865,333.33 
	
$865,333.33 

	
60
	
6/1/20
	
$865,333.33 
	
$872,002.41 
	
$6,669.08 
	
$865,333.33 
	
($0.00)

	
Final
	
6/1/20
	
Final Payment
	
$1,763,550.00 
	
$1,763,550.00 
	
$0.00 
	
 

	
 
	
 
	
Totals
	
$25,474,773.41 
	
$7,774,773.41 
	
$17,700,000.00 
	
 

 

 

 

 

Exhibit B

Compliance Certificate

		
	
TO:
	
OXFORD FINANCE LLC, as Collateral Agent and Lender

 

	
FROM:
	
CYTORI THERAPEUTICS, INC.

The undersigned authorized officer (“Officer”) of Cytori Therapeutics, Inc. (“Borrower”), hereby certifies, in such capacity on behalf of Borrower, that in accordance with the terms and conditions of the Loan and Security Agreement by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the “Loan Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement),

	
(a)
	
Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below;

	
(b)
	
There are no Events of Default, except as noted below;

	
(c)
	
Except as noted below, all representations and warranties of Borrower stated in the Loan Documents are true and correct in all material respects on this date and for the period described in (a), above; 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.

	
(d)
	
Borrower, and each of Borrower’s Subsidiaries, has timely filed all required federal (and all material foreign, state and local) tax returns and reports (or timely extensions therefor), and Borrower, and each of Borrower’s Subsidiaries, has timely paid all federal and all material foreign, state, and local taxes, assessments, deposits and contributions owed by Borrower, or Subsidiary, except as otherwise permitted pursuant to the terms of Section 5.8 of the Loan Agreement;  

	
(e)
	
No Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent and the Lenders.

Attached are the required documents, if any, supporting our certification(s).  The Officer, on behalf of Borrower, further certifies that the attached financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements, for the absence of footnotes and subject to year‐end audit adjustments as to the interim financial statements.  

 

 

Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column.

							
	
 
	
Reporting Covenant
	
Requirement
	
Actual
	
Complies

	
1)
	
Financial statements
	
Monthly within 45 days
	
 
	
Yes
	
No
	
N/A

	
2)
	
Annual (CPA Audited) statements
	
Within 120 days after FYE
	
 
	
Yes
	
No
	
N/A

	
3)
	
Annual Financial Projections/Budget (prepared on a monthly basis)
	
Annually (within 10 days of FYE), and when revised
	
 
	
Yes
	
No
	
N/A

	
4)
	
A/R & A/P agings
	
If applicable
	
 
	
Yes
	
No
	
N/A

	
5)
	
8‐K, 10‐K and 10‐Q Filings
	
If applicable, within 5 days of filing
	
 
	
Yes
	
No
	
N/A

	
6)
	
Compliance Certificate
	
Monthly within 30 days
	
 
	
Yes
	
No
	
N/A

	
7)
	
IP Report
	
When required
	
 
	
Yes
	
No
	
N/A

	
8)
	
Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period
	
 
	
$________
	
Yes
	
No
	
N/A

	
9)
	
Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period
	
 
	
$________
	
Yes
	
No
	
N/A

 

 

Deposit and Securities Accounts

(Please list all accounts; attach separate sheet if additional space needed)

 

							
	
 
	
Institution Name
	
Account Number
	
New Account?
	
Account Control Agreement in place?

	
1)
	
 
	
 
	
Yes
	
No
	
Yes
	
No

	
2)
	
 
	
 
	
Yes
	
No
	
Yes
	
No

	
3)
	
 
	
 
	
Yes
	
No
	
Yes
	
No

	
4)
	
 
	
 
	
Yes
	
No
	
Yes
	
No

 

 

 

 

 

 

 

Financial Covenants

 

						
	
 
	
Covenant
	
Requirement
	
Actual
	
Compliance

	
1)
	
Unrestricted cash and Cash Equivalents 
	
$2,000,000
	
[__]
	
Yes
	
No

	
 
	
 
	
 
	
[$________]
	
 
	
 

 

Other Matters

 

				
	
1)
	
Have there been any changes in management since the last Compliance Certificate?
	
Yes
	
No

	
 
	
 
	
 
	
 

	
2)
	
Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?
	
Yes
	
No

	
 
	
 
	
 
	
 

	
3)
	
Have there been any new or pending claims or causes of action against Borrower that could reasonably be expected to have a Material Adverse Change?
	
Yes
	
No

	
 
	
 
	
 
	
 

	
4)
	
Have there been any amendments of or other changes to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies of any such amendments or changes with this Compliance Certificate.
	
Yes
	
No

 

 

 

Exceptions

 

Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.”  Attach separate sheet if additional space needed.)

 

 

 

CYTORI THERAPEUTICS, INC.

 

By:  

Name:  

Title:  

 

Date:

 

		
	
LENDER USE ONLY

	
 
	
 

	
Received by: 
	
Date:  

	
 
	
 

	
Verified by:  
	
Date:  

	
 
	
 

	
Compliance Status:YesNo

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