Document:

EX-10.5

 Exhibit 10.5 

THIS THIRD AMENDED AND RESTATED INTERCREDITOR AGREEMENT AMENDS, RESTATES AND REPLACES IN ITS ENTIRETY THAT CERTAIN SECOND AMENDED AND RESTATED
INTERCREDITOR AGREEMENT DATED AS OF APRIL 25, 2019 BETWEEN MADRYN HEALTH PARTNERS, LP AND CITY NATIONAL BANK OF FLORIDA 

THIRD AMENDED AND RESTATED INTERCREDITOR AGREEMENT 

THIS THIRD AMENDED AND RESTATED INTERCREDITOR AGREEMENT (this “Agreement”) is entered into as of
March 20, 2020, by and between (a) MADRYN HEALTH PARTNERS, LP, a Delaware limited partnership, having an office at 140 E. 45th Street, 15th Floor, Suite B, New York, NY 10017, in its capacity as administrative agent
(“Madryn”) for the Madryn Lenders (defined below) under the Madryn Loan Agreement (defined below), and (b) CITY NATIONAL BANK OF FLORIDA, having an office at 100 SE
2nd Street, 13th Floor, Miami, Florida 33131 (“CNB”). Madryn (in its own capacity and as agent for the Madryn Lenders, as
applicable), the Madryn Lenders and CNB are each sometimes referred to herein individually as a “Lender” and collectively as “Lenders”. 

RECITALS 

A.    Madryn, the lenders from time to time party thereto (collectively with Madryn, the “Madryn
Lenders”), VENUS CONCEPT CANADA CORP., an Ontario corporation (“Venus Canada”), VENUS CONCEPT USA INC., a Delaware corporation, VENUS CONCEPT INC., a Delaware corporation (“VCI”)
(“Venus USA” and together with VCI and Venus Canada, each a “Borrower” and collectively, the “Borrowers”), VENUS CONCEPT LTD., an Israeli corporation, the Guarantors party
thereto (the “Guarantor”) (collectively with Borrowers, the “Loan Parties”) are parties to that certain Credit Agreement dated as of October 11, 2016 as amended by that certain First Amendment to Credit
Agreement and Investment Documents dated as of May 25, 2017, that certain Second Amendment to Credit Agreement and Consent Agreement dated as of February 15, 2018, that certain Third Amendment to Credit Agreement and Waiver dated as of
August 14, 2018, that certain Fourth Amendment to Credit Agreement dated as of January 11, 2019, that certain Fifth Amendment to Credit Agreement dated as of March 15, 2019, that certain Sixth Amendment to Credit Agreement and Consent
dated as of April 25, 2019, that certain Seventh Amendment to Credit Agreement, Consent and Waiver dated as of June 25, 2019, that certain Omnibus Amendment and Waiver dated as of July 26, 2019, that certain Ninth Amendment to Credit
Agreement dated as of August 14, 2019, that certain Tenth Amendment to Credit Agreement, Consent and Joinder Agreement dated as of November 7, 2019, that certain Eleventh Amendment to Credit Agreement and Consent Agreement dated as even
date herewith (as may be further amended, modified, restated, replaced, or supplemented from time to time, the “Madryn Loan Agreement”), whereby Madryn made available to Borrowers certain secured term loan facilities. The loan
facilities provided by the Madryn Loan Agreement shall be referred to herein as the “Madryn Loan”. 

B.    CNB and the Loan Parties are parties to that certain Second Amended and Restated Loan Agreement
dated as of the date hereof (as the same may be further amended, modified, restated, replaced, or supplemented from time to time, the “CNB Loan Agreement”), whereby CNB agreed to make available to Borrower a secured revolving loan
credit facility, which is guaranteed by Guarantor. In addition, CNB may provide Bank Services to Borrower in an aggregate amount outstanding at any time not to exceed One Million Dollars ($1,000,000.00) (the “Bank Services Cap”).
The facility contemplated by the CNB Loan Agreement, along with any Bank Services, shall be referred to herein as the “CNB Loan”. 

  
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 C.    All of the obligations and indebtedness of the
Loan Parties to the Madryn Lenders under the Madryn Loan Documents and all of the obligations and indebtedness of Borrower to CNB under the CNB Loan Documents and Bank Services are secured by the Collateral, as defined herein. 

D.    Madryn and CNB desire to set forth in this Agreement their respective rights and obligations with
respect to the Collateral. 
 AGREEMENT 

The parties agree as follows: 

1.    DEFINITIONS AND CONSTRUCTION 

1.1    Definitions. As used in this Agreement, the following terms shall have the following
definitions: 
 “Accounts” means any “account”, as such term is defined in the UCC, now owned or
hereafter acquired by a Borrower (including, without limitation, under any trade name, style or division thereof) or in which a Borrower now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all accounts
receivable, book debts, Payment Intangibles in respect of the foregoing, whether arising out of goods sold or services rendered (including, without limitation, the licensing of any property) by a Borrower or from any other transaction, whether or
not the same involves the sale of goods or services (including, without limitation, licensing) by a Borrower (including, without limitation, any such obligation that may be characterized as an account or contract right under the UCC) and all of any
Borrower’s accrued rights to payment under all purchase orders, or receipts now owned or hereafter acquired by it for goods or services, and all of a Borrower’s rights to any goods represented by any of the foregoing (including, without
limitation, unpaid seller’s rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods), and all monies due or to become due to a Borrower for goods actually delivered or services
actually rendered under all purchase orders and contracts for the sale of goods or the performance of services or both by a Borrower or in connection with any other transaction, now in existence or hereafter occurring, but including, all collateral
security and guarantees of any kind given by any person with respect to any of the foregoing. For the avoidance of doubt, the term “Accounts” only includes accrued and earned rights to payment (and the actual payments themselves) for the
sale of goods or services in the ordinary course of business and shall not include the actual purchase orders, contracts or licenses themselves or any rights to future revenue under such purchase orders, contracts or licenses after a disposition of
the same, all of which shall be part of the Madryn Priority Collateral. 
 “Agent” means Madryn, on behalf
of Madryn and the other Madryn Lenders. 
 “Bank Services” are any products, credit services, and/or
financial accommodations previously, now, or hereafter provided to Venus USA or VCI by CNB or any affiliate of CNB, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services,
direct deposit of payroll, overdraft protection arrangements and extensions of credit, 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 CNB’s various agreements related thereto, in all cases whether or not provided pursuant to the CNB Loan Agreement, but in all cases subject to the Bank Services Cap. 

“Bank Services Cap” is defined in Recital B. 

  
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 “Bankruptcy Code” means the federal bankruptcy law of the
United States as from time to time in effect, currently as Title 11 of the United States Code. Section references to current sections of the Bankruptcy Code shall refer to comparable sections of any revised version thereof if section numbering
is changed. 
 “Borrower” and “Borrowers” has the meaning given to such terms in Recital
A. 
 “Cash Collateral” has the meaning given to such term in Section 4.11. 

“Claim” means the Madryn Claims and/or the CNB Claims, as applicable. 

“CNB Cap” means (a) $10,000,000, which amount includes the principal amount outstanding under the CNB Loan
Agreement plus (b) all Bank Services up to the Bank Services Cap, minus (c) the amount of any permanent reductions in the revolving commitment under the CNB Loan Agreement. 

“CNB Claim” and “CNB Claims” means any and all present and future “claims” (used
in its broadest sense, as contemplated by and defined in Section 101(5) of the Bankruptcy Code, but without regard to whether such claim would be disallowed under the Bankruptcy Code) of CNB now or hereafter arising or existing under or
relating to the CNB Loan Agreement and related CNB Loan Documents, whether joint, several, or joint and several, whether fixed or indeterminate, due or not yet due, contingent or non-contingent, matured or
unmatured, liquidated or unliquidated, or disputed or undisputed, whether under a guaranty or a letter of credit, and whether arising under contract, in tort, by law, or otherwise, any interest or fees thereon (including interest or fees that accrue
after the filing of a petition by or against Borrower under the Bankruptcy Code, irrespective of whether allowable under the Bankruptcy Code), any costs of Enforcement Actions, including reasonable attorneys’ fees and costs, and any prepayment
or termination premiums. 
 “CNB Excess Obligations” means the principal amount of the CNB Claim in excess
of (i) the CNB Cap, plus accrued interest on such portion in excess of the CNB Cap; plus (ii) Bank Services in excess of the Bank Services Cap. 

“CNB Loan” has the meaning given to such term in Recital B. 

“CNB Loan Agreement” has the meaning given to such term in Recital B. 

“CNB Loan Documents” means the CNB Loan Agreement and all of the “Loan Documents” as defined
in the CNB Loan Agreement, but in any event including any documents in connection with Bank Services, in each case as may be amended, modified, restated, replaced, or supplemented from time to time. 

“CNB Priority Collateral” means all right, title, and interest of Borrowers in and to any of the
following, whether now owned or hereafter acquired and wherever located: all (a) Accounts, (b) Inventory, (c) cash, cash equivalents, short and long term investments, all bank and investment accounts including, without limitation, all
operating accounts, depository accounts, savings accounts, and investment accounts, and all property contained therein, stock, securities, and Investment Property, to the extent any of the foregoing represent the Proceeds arising out of any of the
collateral described in (a) and (b), but in each case excluding the Proceeds of Madryn Priority Collateral. 

“CNB Priority Obligations” means the CNB Claims other than any CNB Excess Obligations. 

  
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 “Collateral” means all of the Loan Parties’ now owned
and hereafter acquired assets and personal property, whether tangible or intangible. 
 “Enforcement
Action” means, with respect to any Lender and with respect to any Claim of such Lender or any item of Collateral in which such Lender has or claims a Lien or right of offset, any action, whether judicial or nonjudicial, to repossess,
collect, accelerate, offset, recoup, give notification to third parties with respect to, sell, dispose of, foreclose upon, give notice of sale, disposition, or foreclosure with respect to, or obtain equitable or injunctive relief with respect to,
such Claim or Collateral. 
 “Event of Default” means a default or event of default however so defined
under either (a) under the Madryn Loan Documents or (b) the CNB Loan Documents. 
 “Insolvency
Event” has the meaning given to such term in Section 4.8. 
 “Insolvency Proceeding” has the
meaning given to such term in Section 2.6. 
 “Investment Property” means any “investment
property”, as such term is defined in the UCC, now owned or hereafter acquired by a Borrower or in which a Borrower now holds or hereafter acquires any interest. 

“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 material, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is
temporarily out of a Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the foregoing. 

“Lender” or “Lenders” have the meanings given to such terms in the introductory paragraph
hereof. 
 “Lien” means a lien or security interest in Collateral to secure a Claim of a Lender. 

“Loan” means, as the context may require, singularly the Madryn Loan, the CNB Loan, or any other extension of
credit pursuant to a Loan Agreement (in the case of CNB, including, without limitation, Bank Services). 
 “Loan
Agreement” means, as the context may require, singularly the Madryn Loan Agreement or the CNB Loan Agreement; and “Loan Agreements” means collectively, the Madryn Loan Agreement and the CNB Loan Agreement. 

“Loan Documents” means, as applicable, the Madryn Loan Documents and the CNB Loan Documents. 

“Madryn Claim” and “Madryn Claims” means any and all present and future “claims”
(used in its broadest sense, as contemplated by and defined in Section 101(5) of the Bankruptcy Code, but without regard to whether such claim would be disallowed under the Bankruptcy Code) of Madryn now or hereafter arising or existing under
or relating to the Loan Agreement and related Loan Documents, whether joint, several, or joint and several, whether fixed or indeterminate, due or not yet due, contingent or non-contingent, matured or
unmatured, liquidated or unliquidated, or disputed or undisputed, whether under a guaranty or a letter of credit, and whether arising under contract, in tort, by law, or otherwise, any interest or fees thereon (including interest or fees that accrue
after the filing of a petition by or against a 

  
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Loan Party under the Bankruptcy Code, irrespective of whether allowable under the Bankruptcy Code), any costs of Enforcement Actions, including reasonable attorneys’ fees and costs, and any
prepayment or termination premiums. 
 “Madryn Lenders” means the Lenders under the Madryn Loan
Documents. 
 “Madryn Loan Agreement” has the meaning given to such term in Recital A. 

“Madryn Loan Documents” means the Madryn Loan Agreement and all of the “Loan Documents” as
defined in the Madryn Loan Agreement, except any warrant issued by a Loan Party, in each case as may be amended, modified, restated, replaced, or supplemented from time to time. 

“Madryn Priority Collateral” means all of the Collateral, other than the CNB Priority Collateral. 

“Non-Priority Agent” means, with respect to the CNB Priority
Collateral, Madryn, and, with respect to the Madryn Priority Collateral, CNB. 

“Non-Priority Lenders” means, with respect to the CNB Priority
Collateral, the Madryn Lenders, and, with respect to the Madryn Priority Collateral, CNB. 
 “Payment
Intangible” means any “payment intangible”, as such term is defined in the UCC, now owned or hereafter acquired by a Loan Party or in which a Loan Party now holds or hereafter acquires any interest. 

“Priority Agent” means, with respect to the CNB Priority Collateral, CNB, and, with respect to the Madryn
Priority Collateral, Madryn. 
 “Priority Collateral” means, with respect to CNB, the CNB Priority
Collateral, and with respect to Madryn, the Madryn Priority Collateral. 
 “Priority Lenders” means, as to
the CNB Priority Collateral, CNB, and with respect to the Madryn Priority Collateral, the Madryn Lenders. 

“Proceeds” means “proceeds,” as such term is defined in the UCC. 

“Proceeds of Collection” means, collectively, the proceeds of all Collateral received in connection with an
Enforcement Action, or any part thereof, and the proceeds of any remedy with respect to such Collateral under the Loan Documents after the occurrence and during the continuance of an Event of Default. 

“Reimbursement Obligations” has the meaning given to such term in Section 4.7. 

“UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New
York; provided, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to any Lender’s Lien on any Collateral is governed by the Uniform
Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term “UCC” 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 related to such provisions. Unless otherwise defined herein, terms that are defined in the UCC and used herein shall have the

  
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meanings given to them in the UCC. 

1.2    Other Interpretive Provisions. References in this Agreement to “Recitals,”
“Sections,” and “Exhibits” are to recitals, sections, and exhibits herein and hereto unless otherwise indicated. References in this Agreement to any document, instrument or agreement shall include (a) all exhibits,
schedules, annexes and other attachments thereto, (b) all documents, instruments or agreements issued or executed in replacement thereof, and (c) such document, instrument or agreement, or replacement or predecessor thereto, as amended,
modified and supplemented from time to time and in effect at any given time. The words “include” and “including” and words or similar import when used in this Agreement shall not be construed to be limiting or exclusive. The
Recitals constitute a part of the agreement among the parties hereto. 
 2.    INTERCREDITOR
ARRANGEMENTS 
 2.1    Priority of Security Interests. (a) Notwithstanding any contrary
priority established by (i) the filing dates of their respective financing statements, (ii) the recording dates of any other security perfection documents, (iii) which Lender has possession of, or control over, any of the Collateral
(but expressly subject to Section 4.5) or (iv) any statute or rule of law to the contrary, the Lenders agree that, except as otherwise provided under Section 4: 

(i)    the Lien of CNB in CNB’s Priority Collateral shall at all times be senior in rank, priority
and enforcement to the Lien and enforcement rights of Madryn in and against CNB’s Priority Collateral, to the extent of the CNB Priority Obligations; 

(ii)    the Lien of Madryn in CNB’s Priority Collateral shall be junior and subordinate in rank,
priority and enforcement to the Lien and enforcement rights of CNB in and against CNB’s Priority Collateral, to the extent of the CNB Priority Obligations; 

(iii)    the Lien of Madryn in Madryn Priority Collateral shall at all times be senior in rank, priority
and enforcement to the Lien and enforcement rights of CNB in and against such Madryn Priority Collateral; 

(iv)    the Lien of CNB in Madryn Priority Collateral shall be junior and subordinate in rank, priority
and enforcement to the Lien and enforcement rights of Madryn in and against Madryn’s Priority Collateral; 
 (v)
    the Proceeds of Collection of the Madryn Priority Collateral and the Proceeds of Collection of CNB Priority Collateral shall be distributed as provided in Section 4 below; 

(vi)    the relative priority of the Liens specified in this Agreement applies only to Liens held by the
Lenders (and by their respective agents) to secure Loans made under their respective Loan Agreements (and in the case of CNB Liens for Bank Services); 

(vii)    each of Madryn and CNB consents to the grant of liens set forth in the CNB Loan Documents and
the Madryn Loan Documents, in effect as of the date hereof. 
 (b)    The relative priorities set forth
in subsection (a) are subject to the following: 
 (i)    No Lender shall challenge or contravene
the perfection of the Lien of any other Lender. 

  
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 (ii)    A Lender’s relative priority in the
proceeds (within the meaning of the Code, but not including proceeds of liquidation) of an asset of a Loan Party shall be determined based upon that Lender’s relative priority in the asset from which such proceeds arose. 

(iii)    The proceeds of the liquidation of any assets of a Loan Party conducted by any Lender and the
proceeds of any insurance on assets of such Loan Party shall be distributed to the Lenders, to the extent available, in order of their respective priorities in the assets of the Loan Party giving rise to such proceeds, as provided in subsection
(a) above. 
 (iv)    Any Lender which conducts a liquidation shall provide each other Lender with
copies of all demands, communications, correspondence, and pleadings which relate to such Lender’s conduct of such liquidation. The proceeds of any liquidation shall be distributed accordance with subsection (a) above. Any Lender which
conducts a liquidation shall provide the other Lender with a written statement of the results of such liquidation and the distribution of the proceeds thereof. 

(v)    Each of the Lenders shall provide the other Lender with a copy of any notice of demand, or similar
communication as and when given to any Loan Party. Each of the Lenders shall make reasonable efforts to provide all others as and when received, given, or executed, copy of any amendment, modification, waiver, replacement or supplement of their
respective Loan Documents with the Loan Party. No Lender shall have any liability to the other Lender for failure to comply with this subsection. 

2.2    Limitation on Further Loans. After the date hereof, except pursuant to the Loan Agreements
and as permitted pursuant to Section 2.5, no CNB Lender may make loans to or otherwise extend credit to Borrower in excess of the CNB Priority Obligations, without notice to and the consent of Madryn; provided, however, that CNB
may, in the ordinary course of its commercial banking relationship with Borrower, extend credit to Borrower in the form of (i) overdrafts under deposit accounts maintained with either Lender, extensions of credit in connection with unsecured
cash management services and similar unsecured extensions of credit; provided, however that to the extent any such overdrafts are secured, the amount secured shall be included as principal and shall be subject to the CNB Cap, and
(ii) secured extensions of credit in connection with Bank Services as permitted under Section 4.11 below. 

2.3    Transfer of Interest in Loans. 

(a)    Consent. Madryn agrees that it will not transfer any of its interest in the Madryn Loan
Documents without obtaining the acknowledgment of the proposed transferee or assignee that the transfer or assignment is subject to all of the terms of this Agreement. CNB agrees that it will not transfer any of its interest in the CNB Loan
Documents or its Loans without obtaining the acknowledgment of the proposed transferee or assignee that the transfer or assignment is subject to all of the terms of this Agreement; provided, however, CNB may sell to any other financial
entity participation interests in such CNB’s rights under this Agreement and the Loan Documents, provided that notwithstanding the sale of participations, CNB shall remain solely responsible for the performance of its obligations under this
Agreement and the Loan Documents, and Madryn or its transferee shall continue to deal solely and directly with CNB in connection with this Agreement and the Loan Documents. For the avoidance of doubt this Agreement shall have no effect to restrict
or prohibit any transfers of the rights of any Madryn Lender under the Madryn Loan Agreement in accordance with the terms of the Madryn Loan Documents. 

(b)    Assumption of Obligations. The transferee shall assume all obligations of the transferring
Lender with respect to the portion of the transferor’s interest under this Agreement and the applicable Loan Documents; provided, that to the extent the transferor shall not transfer the entirety

  
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and shall retain any portion of its interest in its Loan Agreement and the other applicable Loan Documents, the transferor shall retain its obligations under this Agreement, its Loan Agreement
and the other applicable Loan Documents with respect to that portion of its interest. 

2.4    Agent for Perfection. Each Lender hereby appoints the other Lender as agent for the
purposes of perfecting its Liens in and on any of the Collateral in the possession or under the control of such other Lender; provided, that, a Lender in the possession or having control of any Collateral shall not have any duty or
liability to protect or preserve any rights pertaining to any of the Collateral and, except for gross negligence or willful misconduct as determined pursuant to a final non-appealable order of a court of
competent jurisdiction, the non-possessing and/or non-controlling Lender hereby waives and releases the other Lender from, all claims and liabilities arising pursuant to
the possessing Lender’s role as bailee with respect to the Collateral, so long as the possessing and/or controlling Lender shall use the same degree of care with respect thereto as the possessing and/or controlling Lender uses for similar
property pledged to the possessing and/or controlling Lender as collateral for indebtedness of others to the possessing and/or controlling Lender. For the avoidance of doubt, so long as the CNB Loan Documents remain in place this Agreement shall
constitute a Qualifying Control Agreement for each deposit account of either Borrower maintained at CNB and after payment in full of the CNB Loan, then CNB agrees to enter into a deposit account control agreement covering any deposit accounts at CNB
within thirty (30) days of the request of Madryn. 
 2.5    Limitations on Amendments to CNB
Loan Documents. CNB shall obtain Madryn’s written consent prior to (i) entering into any amendment to the CNB Loan Documents that increases the maximum principal amount that may be outstanding thereunder above the CNB Cap (except for
Bank Services which may or may not be provided under the CNB Loan Agreement, but subject to the Bank Services Cap), or (ii) entering into any Bank Services in excess of the Bank Services Cap, (iii) making any loans other than revolving
loans subject to the borrowing base formula established under the CNB Loan Documents in effect as of the date hereof or otherwise relaxing the eligibility requirements for Accounts or Inventory in any applicable borrowing base or increasing the
advance rates contained in any applicable borrowing base, in a manner which would cause the Loan Parties to obtain credit in excess of the borrowing base formulas established in the CNB Loan Documents in effect as of the date hereof, other than the
making of protective advances necessary to protect or preserve the CNB Priority Collateral in an amount not to exceed $500,000, or (iv) adding any Loan Parties as borrowers or guarantors under the CNB Loan Documents except to the extent such
Loan Parties are borrowers or guarantors under the CNB Loan Documents on the date of this Agreement. 
 2.6
    Insolvency Proceeding. In any bankruptcy, assignment for the benefit of creditors, arrangement, or reorganization of a Loan Party (“Insolvency Proceeding”), the Collateral of each Lender shall include
Collateral acquired by the applicable Loan Party, or arising, after the commencement of the Insolvency Proceeding, and this Agreement shall continue to apply during any such Insolvency Proceeding. 

3.    ALLOCATION OF PAYMENTS AMONG LENDERS. Notwithstanding anything to the contrary, nothing set
forth herein shall restrict the Borrowers from making payments of principal, interest, fees and costs to Madryn in accordance with the Madryn Loan Agreement. Without limiting the foregoing, Borrowers may (i) make and continue to make to Madryn
payments of principal, interest, fees and costs in accordance with the terms of its Loan Agreement or (ii) prepay a Loan in accordance with the terms of the applicable Loan Agreement, even though in each of the foregoing cases (i) and (ii)
such payments may be the proceeds of CNB’s Priority Collateral. 
 4.    REMEDIES UPON AN EVENT
OF DEFAULT 

  
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 4.1    Exercise of Remedies by Madryn. Madryn
shall be free at all times to exercise or to refrain from exercising any and all rights and remedies it may have with respect to the Collateral under the Madryn Loan Documents or under applicable law (and continue to receive regularly scheduled
payments); provided that, in no event shall Madryn take any Enforcement Action against any of the CNB Priority Collateral without the prior written consent of CNB until the date that is 120 days after CNB has received written notice
from Madryn stating (a) that an Event of Default has occurred under the Madryn Loan Documents and (b) with specific reference to this Section 4.1, that Madryn intends to take an Enforcement Action with respect to the CNB Priority
Collateral (and containing specific details of the actions to be taken); provided further, that said 120-day period shall be tolled during (i) any period that CNB or its agent(s), as
applicable, is taking Enforcement Action against such CNB Priority Collateral and (ii) the continuation of any case or proceeding by or against Borrower under the Bankruptcy Code or any other insolvency law. 

4.2    Exercise of Remedies by CNB. CNB shall be free at all times to exercise or to refrain from
exercising any and all rights and remedies it may have with respect to the CNB Priority Collateral under the CNB Loan Documents or under applicable law; provided that, in no event shall CNB take any Enforcement Action against any of
the Madryn Priority Collateral without the prior written consent of Madryn until CNB has received written notice from Madryn stating that the Madryn Claim has been paid in full and all commitments to lend thereunder have been terminated. During the
term of this Agreement, the “Default Rate” CNB may charge pursuant to the CNB Loan Documents shall be limited to the greater of : (a) default interest rate set forth in the Madryn Loan Documents, or (b) fourteen percent (14%). 

4.3    Application of Proceeds of Collection of CNB Priority Collateral after an Event of Default.
Notwithstanding anything to the contrary in the Loan Documents, as among the Lenders, the Proceeds of Collection of all of the CNB Priority Collateral shall upon receipt by any Lender, after an Event of Default, be paid to and applied as follows:

 (a)    First, to the payment of then outstanding reasonable out-of-pocket costs and expenses of the Lenders expended to preserve the value of the CNB Priority Collateral, of foreclosure or suit with respect to CNB Priority Collateral, if any, and of such sale with
respect to the CNB Priority Collateral (in proportion to such costs and expenses theretofore incurred by each); 

(b)    Second, to CNB in an amount up to CNB’s Claims until all CNB Priority Obligations are
satisfied in full and the CNB Loan Documents evidencing Borrowers’ obligations to CNB (other than in respect of any CNB Excess Obligations) are terminated; 

(c)    Third, to Madryn in an amount up to the Madryn Claim until the Madryn Claim is satisfied in
full and the Loan Documents evidencing the Loan Parties’ obligations to the Madryn Lenders are terminated; 

(d)    Fourth, to CNB in respect of any CNB Excess Obligations; and 

(e)    Fifth, to Borrower, its successors and assigns, or to whomsoever may be lawfully entitled to
receive the same. 
 4.4    Application of Proceeds of Collection of Madryn Priority Collateral after
an Event of Default. Notwithstanding anything to the contrary in the Loan Documents, as among the Lenders, the Proceeds of Collection of all of the Madryn Priority Collateral shall upon receipt by either Lender, after an Event of Default, be
paid to and applied as follows: 

  
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 (a)    First, to the payment of then outstanding
reasonable out-of-pocket costs and expenses of Madryn or the other Madryn Lenders expended to preserve the value of the Madryn Priority Collateral, of foreclosure or
suit with respect to Madryn Priority Collateral, if any, and of such sale and the exercise of any other rights or remedies with respect to the Madryn Priority Collateral (in proportion to such costs and expenses theretofore incurred by each); 

(b)    Second, to Madryn for application to the Madryn Claim until satisfied in full and the Loan
Documents evidencing the Loan Parties’ obligations to the Madryn Lenders are terminated; 

(c)    Third, to CNB in an amount up to CNB’s Claims until all CNB Claims are satisfied in
full and the CNB Loan Documents evidencing Borrowers’ obligations to CNB (other than in respect of any CNB Excess Obligations) are terminated; and 

(f)    Fourth, to the applicable Loan Party, its successors and assigns, or to whomsoever may be
lawfully entitled to receive the same. 
 4.5    CNB Accounts. Notwithstanding anything in this
Agreement to the contrary, the above priorities shall not apply to or restrict any and/or all of CNB’s present and future rights (whether described as rights of setoff, banker’s liens, chargeback or otherwise, and whether available to CNB
under the law or under any other agreement between CNB and Borrower concerning any account maintained by the Borrower with CNB or any of its affiliates (“CNB Account”)) with respect to: (a) the face amount of a check,
draft, money order, instrument, wire transfer of funds, automated clearing house entry, credit from a merchant card transaction, other electronic transfer of funds or other item (i) deposited in or credited to any CNB Account and returned
unpaid or otherwise uncollected or subject to an adjustment entry, whether for insufficient funds or for any other reason and without regard to the timeliness of the return or adjustment or the occurrence or timeliness of any other person’s
notice of nonpayment or adjustment, (ii) subject to a claim against the CNB for breach of transfer, presentment, encoding, retention or other warranty under Federal Reserve Regulations or Operating Circulars, clearing house rules, the UCC or
other applicable law, or (iii) for a merchant card transaction, against which a contractual demand for chargeback has been made; (b) service charges, fees or expenses payable or reimbursable to the CNB in connection with any CNB Account or
any related services; and (c) any adjustments or corrections of any posting or encoding errors, so long as such payments are made from the CNB’s Priority Collateral, CNB shall be senior to the Madryn with respect to such payments. 

4.6    Insurance. In the event of any loss affecting any Collateral, the Lender having a senior
Lien in the affected Collateral under this Agreement shall, subject to the Loan Parties’ rights under the applicable Loan Documents, have the sole and exclusive right (but not the obligation) to adjust settlement of any insurance policy
applicable to such Collateral. All proceeds of insurance applicable to the affected Collateral shall (subject to the Loan Parties’ rights under the applicable Loan Documents) be applied in the same manner set forth in Sections 4.3 and 4.4 with
respect to such Collateral itself and other Proceeds thereof. 
 4.7    Releases of Collateral.

 (a)    Within three (3) business days of the request by CNB, Madryn shall execute and deliver
such termination statements and releases as CNB shall reasonably request to release the Lien or security interest of Madryn in the subject CNB Priority Collateral in connection with a disposition of such Collateral (and shall be deemed to have
consented to such disposition) provided that: 
 (i)    CNB also is releasing (or foreclosing) its
Liens on the subject CNB Priority Collateral; 

  
 10 

 (ii)    the sale or disposition is made to a third
party on an arm’s length basis; 
 (iii)    such sale or disposition (X) is permitted by the
terms of the Loan Agreements, (Y) occurs pursuant to an Enforcement Action by CNB, or (Z) occurs after an Event of Default with the consent of CNB; and 

(iv)    the net proceeds of such disposition are applied to permanently repay the CNB Claim and to reduce
the commitments thereunder in an amount equal to such prepayment. 
 (b)    Within three
(3) business days of the request by Madryn, CNB shall execute and deliver such termination statements and releases as Madryn shall reasonably request to release the Lien or security interest of CNB in the subject Madryn Priority Collateral in
connection with a disposition of such Collateral (and shall be deemed to have consented to such disposition) provided that: 

(i)    Madryn also is releasing (or foreclosing) its Liens on the subject Madryn Priority Collateral;

 (ii)    such sale or disposition (X) is permitted by the terms of the Loan Agreements,
(Y) occurs pursuant to an Enforcement Action by Madryn, or (Z) occurs after an Event of Default with the consent of Madryn; and 

(iii)    the net proceeds of such disposition are applied to permanently repay the Madryn Claim and to
reduce the commitments thereunder in an amount equal to such prepayment. 
 4.8    Insolvency
Events. (a) Subject to Section 4.11, in the event of any distribution, division, or application, partial or complete, voluntary or involuntary, by operation of law or otherwise, of all or any part of the property of a Loan Party or the
proceeds thereof to the creditors of a Loan Party, or the readjustment of any of the Claims, whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other action or proceeding involving
the readjustment of all or any part of any of the Claims, or the application of the property of a Loan Party to the payment or liquidation thereof, or upon the dissolution or other winding up of a Loan Party’s business, or upon the sale of all
or any substantial part of a Loan Party’s property (any of the foregoing being hereinafter referred to as an “Insolvency Event”), then, and in any such event, and subject to any subordination arrangements to which the Lenders
may be subject, (a) all payments and distributions of any kind or character, whether in cash or property or securities in respect of the Lenders’ Claims shall be distributed pursuant to the provisions of Sections 2.1, 4.3 and 4.4 hereof;
(b) each Lender shall promptly file a claim or claims, on the form required in such proceeding, for the full outstanding amount of such Lender’s Claim, and shall use its best efforts to cause said claim or claims to be approved; and
(c) in the event that, notwithstanding the foregoing, but subject to the provisions of Sections 2.1, 4.3, and 4.4, any payment or distribution of any kind or character, whether in cash, properties or securities, shall be received by a Lender in
excess of the amounts contemplated by such Sections, then the portion of such payment or distribution in excess of such amount shall be received by such Lender in trust for and shall be promptly paid over to the other Lender for application to the
payments of amounts due on the other Lender’s Claims. 
 For avoidance of doubt, nothing set forth in this Agreement,
including without limitation the allocation of payments contemplated under Section 4.3 and 4.4, is intended to constitute subordination in right of payment of any Lender’s Claim to any other Claim, but is intended strictly to constitute
the Lenders’ agreement as to the subordination of their respective liens in one another’s Priority Collateral to the extent and in the manner provided herein. 

  
 11 

 (b)    If any Loan Party shall be subject to any
Insolvency Event and the Priority Agent shall desire to permit the use of cash collateral which constitutes such Priority Agent’s Priority Collateral or to permit any Loan Party to obtain financing secured by such Priority Collateral (and not
by any Collateral which does not constitute such Priority Agent’s Priority Collateral), from one or more of the Lenders for whom such Priority Agent acts as Agent, under Section 363 or Section 364 of the Bankruptcy Code or any similar
Bankruptcy Law (such financing, a “DIP Financing”), then each Agent, (A) agrees that it will raise no objection to such use of cash collateral or DIP Financing nor support any other Person objecting to, such sale, use,
or lease of cash collateral or DIP Financing and will not request any form of adequate protection or any other relief in connection therewith (except as agreed by the Priority Agent or to the extent expressly permitted by
Section 4.8(e)) and, to the extent the Liens securing the Priority Obligations are subordinated to or pari passu with the Liens securing such DIP Financing, the Non-Priority Agent will subordinate its Liens in the Priority Agent’s Priority Collateral to (x) the Liens securing such DIP Financing (and all Claims relating thereto), (y) any adequate protection
Liens provided to the Priority Lenders and (z) any “carve-out” for professional or United States Trustee fees agreed to by the Priority Agent; and (B) agrees that notice received five
(5) calendar days prior to the entry of an order approving such usage of cash collateral or approving such DIP Financing shall be adequate notice; provided that the foregoing shall not prohibit the
Non-Priority Agent or the Non-Priority Lenders from objecting solely to any provisions in any agreement regarding the use of cash collateral or any DIP Financing
relating to, describing or requiring any provision or content of a plan of reorganization other than any provisions requiring that the DIP Financing be paid in full in cash; provided further, the maximum amount of indebtedness that may be
outstanding from time to time in connection with any DIP Financing to be provided by or with the consent of CNB in respect of its Priority Collateral, together with the principal amount of the CNB Claim outstanding at such time (after giving effect
to the application of the proceeds of any DIP Financing to refinance all or any portion of the CNB Claim) shall not exceed an amount equal to the CNB Cap at such time. 

(c)    Each Agent, on behalf of itself and the Lenders for whom it acts as Agent, agrees that it will
raise no objection to or oppose a sale or other disposition of any Collateral which does not constitute its Priority Collateral free and clear of its Liens or other claims under Section 363 of the Bankruptcy Code if the Priority Agent has
consented to such sale or disposition of such assets so long as the interests of the such Agent and the Lenders for whom it acts as Agent in such Collateral attach to the proceeds thereof, subject to the terms of this Agreement. If requested by the
Priority Agent in connection therewith, the Non-Priority Agent shall affirmatively consent to such a sale or disposition. 

(d) Each Agent, on behalf of itself and the Lenders for whom it acts as Agent, agrees that none of them shall (i) seek
relief from the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of any Collateral which does not constitute its Priority Collateral, without the prior written consent of the Priority Agent, or (ii) oppose
any request by the Priority Agent or any Priority Lender to seek relief from the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of their respective Priority Collateral. 

(e)    Each Agent, on behalf of itself and the Lenders for whom it acts as Agent: 

(i)    may seek adequate protection of its interest in its respective Priority Collateral
and the other Agent, on behalf of itself and the Lenders for whom it acts as Agent, agrees that none of them shall contest (or support any other person contesting) (i) any such request for adequate protection by the Priority Agent or
(ii) any objection by the Priority Agent or the Priority Lenders to any motion, relief, action or proceeding based on the Priority Agent or the Priority Lenders claiming a lack of adequate protection of their interests in their respective
Priority Collateral; 

  
 12 

 (ii)    acknowledges and agrees that any
superpriority administrative expense claim granted to such Agent or arising under 11 U.S.C. § 507(b) as adequate protection of its interest in its respective Priority Collateral shall be pari passu with any
superpriority administrative expense claim granted to the other Agent as adequate protection of its interest in its respective Priority Collateral; 

(iii)    may seek adequate protection of its junior interest in Collateral, subject to the
provisions of this Agreement, only if (A) the Priority Agent is granted adequate protection in the form of a replacement Lien on post-petition collateral of the same type as the Priority Collateral, and (B) such additional adequate
protection requested by such Agent is in the form of a replacement Lien on such post-petition collateral of the same type as the Priority Collateral, which Lien, if granted, will be subordinated to the adequate protection Liens granted in favor of
the Priority Agent on such post-petition collateral and the Liens securing any DIP Financing (and all Obligations relating thereto) secured by such Priority Collateral on the same basis as the Liens of the
Non-Priority Agent on such Priority Collateral are subordinated to the Liens of the Priority Agent on such Priority Collateral under this Agreement; 

(iv)     agrees that, in the event an Agent, on behalf of itself or any of the Lenders for
whom it acts as Agent, seeks or requests (or is otherwise granted) adequate protection of its junior interest in Collateral in the form of a replacement Lien on additional collateral in any form, then such Agent, on behalf of itself and the Lenders
for whom it acts as Agent, the Priority Agent shall also be granted a replacement Lien on such additional collateral as adequate protection of its senior interest in Collateral and that such Agent’s replacement Lien shall be subordinated to the
replacement Lien of the Priority Agent; 
 (v)    agrees that, if any Agent or Lender
receives as adequate protection a Lien on post-petition assets of the same type as its pre-petition Priority Collateral, then such post-petition assets shall also constitute Priority Collateral of such Person
to the extent of any allowed claim secured by such adequate protection Lien; 

(vi)    may seek and receive additional adequate protection of its junior interest in
Collateral, subject to the provisions of this Agreement, in the form of a superpriority administrative expense claim, including a claim arising under 11 U.S.C. § 507(b), which superpriority administrative expense claim shall be junior in all
respects to any superpriority administrative expense claim granted to the Priority Lenders with respect to such Collateral; and 

(vii)    agrees that, in the event an Agent, on behalf of itself and the Lenders for whom
it acts as Agent, seeks or receives protection of its junior interest in Collateral and is granted a superpriority administrative expense claim, including a claim arising under 11 U.S.C. § 507(b), that the Priority Lenders shall receive a
superpriority administrative expense claim which shall be senior in all respects to the superpriority administrative expense claim granted to such Agent with respect to such Collateral. 

(f)    Neither Agent, nor any of the Lenders for which they act as Agent, shall oppose or seek to
challenge (a) any claim by the Priority Agent or any Priority Lender for allowance in any Insolvency or Liquidation Proceeding of Obligations consisting of post-petition interest, fees, costs, charges or expenses to the extent of the value of
the Lien of the Priority Agent in such Priority Agent’s Priority Collateral, without regard to the existence of the Lien of the other Agent in such Collateral, or (b) any claim by the Non-Priority
Agent or any Non-Priority Lender for allowance in any Insolvency or Liquidation Proceeding of Obligations consisting of post-petition interest, fees, costs, charges or expenses to the extent of the value of
the lien of the Non-Priority Agent in such Collateral. 

  
 13 

 4.9    Return of Payments. To the extent any
payment for the account of a Loan Party is required to be returned as a voidable transfer or otherwise, the Lenders shall contribute to one another as is necessary to ensure that such return of payment is in accordance with the provisions of
Sections 2.2, 4.3, and 4.4. 
 4.10    Foreclosure. 

(a)    Credit Bid By Madryn. Nothing set forth herein shall preclude Madryn Lenders from making a
credit bid in connection with (i) any foreclosure or sale in an Insolvency Event of any Madryn Priority Collateral, or (ii) any foreclosure or sale in an Insolvency Event of any Collateral, provided that such Madryn Lenders also make a
cash bid with respect to any CNB Priority Collateral subject to such foreclosure or sale sufficient to satisfy the CNB Priority Obligations. 

(b)    Credit Bid by CNB. Nothing set forth herein shall preclude CNB from making a credit bid in
connection with (i) any foreclosure or sale in an Insolvency Event of any CNB Priority Collateral, or (ii) any foreclosure or sale in an Insolvency Event of any Collateral, provided that CNB also makes a cash bid with respect to any Madryn
Priority Collateral subject to such foreclosure or sale sufficient to satisfy the Madryn Claim. 

(c)    License of Intellectual Property. Madryn (i) acknowledges and consents to the grant to
CNB by the Loan Parties on the date hereof of a limited, non-exclusive royalty-free license (the “Closing Date License”) of the Intellectual Property solely as needed to dispose of Inventory in
connection with an exercise of remedies and (ii) agrees that its Liens in the Madryn Priority Collateral shall be subject to the Closing Date License. 

4.11    Exception for Bank Services. In addition to the provision of Bank Services by CNB, which
may be provided on a non-cash secured basis, the parties acknowledge that Borrower may in the future desire to pledge cash and/or securities in connection with the provision by CNB to Borrower of Bank
Services. The parties agree that notwithstanding anything to the contrary contained in this Agreement, Borrower may pledge cash and/or securities in the aggregate principal amount of up to One Million Dollars ($1,000,000) to CNB as collateral to
secure its obligations to CNB relating to Bank Services (such cash and/or securities and the proceeds thereof (but expressly excluding any other Collateral) being hereinafter referred to as the “Cash Collateral”). The parties
further agree that (a) notwithstanding anything to the contrary contained in this Agreement, CNB’s lien on the Cash Collateral shall be senior in priority to the Liens of Madryn under the Madryn Loan Documents to the extent of
Borrower’s reimbursement obligations in respect of Bank Services in the aggregate principal amount of up to One Million Dollars ($1,000,000) (collectively, the “Reimbursement Obligations”), and (b) CNB may extend credit to
Borrower in connection with the provision of Bank Services and take such action as CNB deems necessary to enforce its rights and remedies to satisfy the Reimbursement Obligations in respect to Bank Services, all without prior notice to or the
consent of Madryn. Madryn may not foreclose upon, or force CNB to take any actions with respect to, the Cash Collateral notwithstanding anything in this Agreement to the contrary. CNB consents to Borrower’s grant to Madryn of liens and security
interests against the Cash Collateral, and the parties agree that the Cash Collateral and proceeds thereof shall be distributed among the Lenders, after termination and satisfaction of the Reimbursement Obligations to CNB, in the manner and order
set forth in Sections 2.1, 4.3 and 4.4, as applicable. This Section 4.11 shall not in any way limit CNB’s rights under Sections 4.2 and 4.3. For the avoidance of doubt, the parties acknowledge and agree that notwithstanding anything stated
in this Section 4.11 to the contrary, to the extent the Cash Collateral is ever comprised of CNB Priority Collateral it may also be used to secure any other amounts owed by Borrower to CNB and is not limited to One Million Dollars. 

  
 14 

 4.12    Other Actions. Notwithstanding
anything to the contrary set forth in this Agreement, any Lender may: 
 (a)    file a claim or
statement of interest with respect to its Loan or Claims in an Insolvency Event; 
 (b)    take any
action (not adverse to the priority status of the Liens securing the other Lender’s Priority Collateral or such other Lender’s rights to exercise its rights with respect to such Liens) in order to create, perfect, preserve or protect its
Lien on any of its respective Collateral; 
 (c)    file any necessary responsive or defensive pleadings
in opposition to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of its Loans or Claims, including any claims secured by the Collateral, if any, in each case not
prohibited by the terms of this Agreement; 
 (d)    file any pleadings, objections, motions or
agreements which assert rights or interests available to unsecured creditors of any Loan Party arising under either an Insolvency Event or applicable non-bankruptcy law, in each case not prohibited by the
terms of this Agreement; 
 (e)    take any action to the extent necessary to prevent the running of any
applicable statute of limitation or similar restriction on claims, or to assert a compulsory cross-claim or counterclaim against a Loan Party; 

(f)    vote on any plan of reorganization; 

(g)    file any proof of claim, make other filings and make any arguments and motions with respect to its
Loans or Claims that are, in each case, 
 (h)    furnish a notice under the Loan Documents to preserve
or enforce its rights with respect thereto, including notices to any Loan Party of the existence of any event of default under the applicable Loan Agreement; 

(i)    engage consultants, valuation firms, investment bankers, and perform or engage third parties to
perform audits, examinations and appraisals of the Collateral for the sole purpose of valuing the Collateral and not for the purpose of marketing or conducting a disposition of the Collateral; or 

(j)    exercise any rights and remedies with respect to its Priority Collateral. 

5.    EXCULPATION OF AND DELEGATION BY LENDERS 

5.1    Exculpation. In connection with any exercise of Enforcement Actions hereunder, no Lender or
any of its partners, or any of their respective directors, officers, employees, attorneys, accountants, or agents shall be liable as such for any action taken or omitted by it or them, except for its or their own gross negligence or willful
misconduct with respect to its duties under this Agreement. 
 5.2    Delegation of Duties. Each
Lender may execute any of its powers and perform any duties hereunder either directly or by or through agents or attorneys-in-fact. Each Lender shall be entitled to
advice of counsel concerning all matters pertaining to such powers and duties. No Lender shall be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it, if the selection of such agents or attorneys-in-fact
was done without gross negligence or willful misconduct. 

  
 15 

 6.    RIGHTS IN THE WARRANTS 

Notwithstanding anything to the contrary herein, no warrants issued to any Lender (or any affiliate thereof) by a Loan Party,
the stock issuable thereunder, any equity securities purchased by any Lender (or any affiliate thereof), any amounts paid thereunder, any dividends, or any other rights in connection therewith shall be subject to the terms and conditions of this
Agreement. Nothing herein shall affect any Lender’s rights (or the rights of any affiliate thereof as assignee) under any such warrants or stock to administer, manage, transfer, assign, or exercise such warrants or stock for its own account.

 7.    NO RESPONSIBILITY FOR INVESTIGATION 

Each of the Lenders represents that it has made, and agrees that it will continue to make its own independent investigation of
the financial condition and affairs of Loan Parties in connection with the making, administration and enforcement of its Loans, and that it has made and shall continue to make its own appraisal of the creditworthiness of the Loan Parties. No Lender
shall have any duty or responsibility either initially or on a continuing basis to make any such investigation or any such appraisal on behalf of any other party, or to provide any other party with any credit or other information with respect
thereto, whether coming into its possession before the date hereof or any time or times thereafter, and shall further have no responsibility with respect to the accuracy of or the completeness of the information provided to the Lenders by Loan
Parties. 
 8.    REPRESENTATIONS AND WARRANTIES 

8.1    Due Organization and Qualification. Each Lender represents and warrants to the other parties
that it is a corporation or other entity duly existing and in good standing under the laws of its state of organization and it is qualified and licensed to do business in, and is in good standing in, any state in which the conduct of its business or
its ownership of property requires that it be so qualified, except for such states as to which any failure so to qualify would not have a material adverse effect on such Lender. 

8.2    Authority. Each Lender represents and warrants that it has all necessary power and authority
to execute, deliver and perform this Agreement in accordance with the terms hereof and that it has all requisite power and authority to own and operate its properties and to carry on its business as now conducted. 

8.3    Authorization; Enforceability. Each Lender represents and warrants that (a) the
execution and delivery of this Agreement and the consummation of the transactions contemplated herein have each been duly authorized by all necessary action on its part, and (b) this Agreement has been duly executed and delivered and
constitutes a legal, valid and binding obligation of such person, enforceable against it in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws of general application
relating to or affecting the enforcement of creditors’ rights or by general principles of equity. 

9.    NOTICES 

Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other
agreement entered into in connection herewith shall be in writing and (except informal documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by certified mail, postage prepaid, return receipt
requested, or by facsimile to the parties, at their respective addresses or fax numbers set forth below: 

  
 16 

			
	 If to Madryn:
	  	 Madryn Asset Management, LP

Attention: John Ricciardi
 140 E.
45th Street, 15th Floor, Suite B
 New York, NY 10017

Electronic Mail: jricciardi@madrynlp.com

Telephone: (646) 560-5493

	 with a copy to:
	  	 Moore & Van Allen PLLC

Attention: Tripp Monroe
 100 North
Tryon Street, Suite 4700
 Charlotte, NC 28202

Fax: (704) 378-1942

Email: trippmonroe@mvalaw.com

		
	 If to CNB:
	  	 City National Bank

100 S.E. 2nd Street, 13th Floor

Miami, Florida 33131
 Attention:
Legal Department
 Fax: (305) 533-0144

Email: LegalDepartment@citynational.com

		
	 with a copy to:
	  	 Greenspoon Marder LLP

Attention: Thomas F. Coyle, Jr.

200 East Broward Boulevard, Suite 1800

Fort Lauderdale, FL 33301
 Fax: 954-343-6948
 Email: Thomas.Coyle@gmlaw.com

 The parties hereto may change the address at which they are to receive notices hereunder, by notice in writing
in the foregoing manner given to the other. In addition, each Lender agrees (a) to use its best efforts to notify the other Lender promptly upon receipt of any material written notice from a Loan Party and (b) at the other
Lender’s request, to send a copy of any such notice to the other Lender, but neither Lender shall have any liability to the other Lender for any inadvertent failure to give such notice under clause (a) or (b) above. 

10.    NO BENEFIT TO THIRD PARTIES 

The terms and provisions of this Agreement shall be for the sole benefit of Lenders, and their respective successors and
assigns, and no other person or entity (including any Loan Party) shall have any right, benefit, priority, or interest under, or because of this Agreement. 

11.    GENERAL PROVISIONS 

12.1    Lender’s Rights. Madryn, on the one hand (for itself and for each Madryn Lender), and
CNB on the other hand (individually, a “Lender Group” and collectively, the “Lender Groups”), agrees that each Lender Group may at any time, and from time to time, without the consent of the other Lender Groups and
without notice to the other Lender: (i) renew or extend any Loan Party’s indebtedness and obligations owing to such Lender Group or that of any other person at any time directly or indirectly liable for the payment of thereof;
(ii) accept partial payments of its Claims; (iii) settle, release (by operation of law or otherwise), compromise, collect or liquidate any of its Claims; (iv) release, exchange, fail to perfect, delay the perfection of, fail to resort
to, or realize upon its Collateral; (v) change, alter or vary the interest charge on, or any other terms or provisions of its Claims or any present or future 

  
 17 

 
instrument, document or agreement with any Loan Party; and (vi) take any other action or omit to take any other action with respect to its Claims as it deems necessary or advisable in its
sole discretion; subject, however, in all cases, to the specific provisions of this Agreement. Each Lender Group waives any right to require another Lender Group to proceed first against some Collateral before proceeding against other
Collateral, or to exercise certain remedies before exercising other remedies, whether under the equitable doctrine of marshalling or otherwise, but subject, in all cases, to the provisions of this Agreement. 

11.2    Non-Avoidability. The subordinations and priorities
specified in this Agreement are expressly conditioned upon the non-avoidability and perfection of the security interest to which another security interest is subordinated, and if the security interest to which
another security interest is subordinated is not perfected or is avoidable, for any reason, then the subordinations and relative priority provided for in this Agreement shall not be effective as to the particular Collateral that is the subject of
the unperfected or avoidable security interest. 
 11.3    Successors and Assigns. This Agreement
shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties; provided, however, that neither this Agreement nor any rights hereunder may be assigned, transferred or participated by any of the
parties hereto without being in compliance with Section 2.3. 
 11.4    Severability of
Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 

11.5    Entire Agreement; Construction; Amendments and Waivers. 

(a)    This Agreement constitutes and contains the entire agreement among the Lenders, and supersedes any
and all prior agreements, negotiations, correspondence, understandings and communications between the parties, whether written or oral, respecting the subject matter hereof. 

(b)    This Agreement is the result of negotiations between and has been reviewed by each of the Lenders
executing this Agreement as of the date hereof and their respective counsel; accordingly, this Agreement shall be deemed to be the product of the parties hereto, and no ambiguity shall be construed in favor of or against any party. Lenders agree
that they intend the literal words of this Agreement and that no parole evidence shall be necessary or appropriate to establish any of their actual intentions. 

(c)    Any and all amendments, modifications, discharges or waivers of, or consents to any departures
from any provision of this Agreement shall not be effective without the written consent of each Lender against which enforcement of the same is sought. Any waiver or consent with respect to any provision of this Agreement shall be effective only in
the specific instance and for the specific purpose for which it was given. Any amendment, modification, waiver or consent effected in accordance with this Section 11.5(c) shall be binding upon each Lender. 

11.6    Counterparts. This Agreement may be executed in any number of counterparts, including
counterparts transmitted by facsimile or other means of electronic transmission, and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together,
shall constitute but one and the same Agreement. 
 11.7    Termination. This Agreement shall
terminate upon the later of (a) irrevocable payment in full to each Lender of all amounts owing to it under the Loan Documents, (b) the termination 

  
 18 

 
of all obligations to lend thereunder and (c) termination of the Loan Documents. Notwithstanding the prior termination of this Agreement, the respective obligations of each Lender to
indemnify each other shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Lenders have run. 

11.8    Reinstatement. Notwithstanding any provision of this Agreement to the contrary, the rights
and obligations of the parties hereunder shall be reinstated and revived if and to the extent that for any reason any payment by or on behalf of a Loan Party is rescinded, or must be otherwise restored by Lenders, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise, all as though such amount had not been paid. To the extent any payment is rescinded or restored, the obligations shall be revived in full force and effect without reduction or discharge for
that payment. 
 11.9    Survival. All covenants, representations and warranties made in this
Agreement shall continue in full force and effect so long as any obligations remain outstanding hereunder. 

12.    RELATIONSHIP OF LENDERS 

Lenders shall not under any circumstances be construed to be partners or joint venturers of one another; nor shall the Lenders
under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with one another, or to owe any fiduciary duty to one another. Lenders do not undertake or assume any responsibility or duty to one another
to select, review, inspect, supervise, pass judgment upon or otherwise inform each other of any matter in connection with the Loan Parties’ property, any Collateral held by any Lender or the operations of the Loan Parties. Each Lender shall
rely entirely on its own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by any Lender in connection with such matters is solely for the protection
of such Lender. 
 13.    CHOICE OF LAW AND VENUE; AND JURY TRIAL WAIVER 

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW, AND EACH OF THE LENDERS HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK. TO THE EXTENT NOT PROHIBITED BY APPLICABLE STATE LAW, LENDERS HEREBY
WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS. 

  
 19 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written. 
  

					
	 MADRYN HEALTH PARTNERS, LP,

a Delaware limited partnership

		
	By:	 	MADRYN HEALTH ADVISORS, LP, its General Partner
			
		 	By:	 	MADRYN HEALTH ADVISORS GP, LLC, its General Partner
			
		 	By:	 	/s/ Avinash Amin
		 	Name:	 	 Avinash Amin

		 	Title:	 	 Member

	
	CITY NATIONAL BANK OF FLORIDA
		
	By:	 	 /s/ Greg Mangram

	Name:	 	 Greg Mangram

	Title:	 	 SVP

 The undersigned acknowledges and agrees with the terms of this Agreement. 

 

			
	VENUS CONCEPT INC., a Delaware corporation, for itself and on behalf of each other Loan Party
		
	By:	 	/s/ Domenic Serafino
	Name:	 	Dominic Serafino
	Title:	 	Chief Executive Officeralec-ex43_795.htm

 

Exhibit 4.3

 

DESCRIPTION OF CAPITAL STOCK

The following description summarizes certain important terms of the capital stock of Alector, Inc. (the “company,” “we,” “us” and “our”), as well as certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws. This summary does not purport to be complete and is qualified in its entirety by the provisions of our amended and restated certificate of incorporation and amended and restated bylaws, copies of which have been filed as exhibits to this Annual Report on Form 10-K, as well as by the applicable provisions of the Delaware General Corporation Law.

Authorized Capital Stock 

Our authorized capital stock consists of 200,000,000 shares of common stock, par value $0.0001 per share, and 20,000,000 shares of convertible preferred stock, par value $0.0001 per share. All of our outstanding shares of common stock are fully paid and non-assessable.

Common Stock

Our common stock is listed on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “ALEC.” The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC. The transfer agent and registrar’s address is 6201 15th Avenue, Brooklyn, New York 11219.

Voting Rights 

Each holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Our certificate of incorporation and bylaws do not provide for cumulative voting rights. Because of this, the holders of a plurality of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose. With respect to matters other than the election of directors, at any meeting of the stockholders at which a quorum is present or represented, the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at such meeting and entitled to vote on the subject matter shall be the act of the stockholders, except as otherwise required by law. The holders of a majority of the stock issued and outstanding and entitled to vote, present in person, or represented by proxy, shall constitute a quorum for the transaction of business at all meetings of the stockholders.

Dividends 

Subject to preferences that may be applicable to any then-outstanding convertible preferred stock, holders of our common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.

Liquidation 

In the event of our liquidation, dissolution, or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of convertible preferred stock.

 

 

 

Rights and Preferences

Holders of our common stock have no preemptive, conversion, subscription, or other rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences, and privileges of the holders of our common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of our convertible preferred stock that we may designate in the future.

Preferred Stock

Our board of directors has the authority, without further action by the stockholders, to issue up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, and restrictions thereof. These rights, preferences, and privileges could include dividend rights, conversion rights, voting rights, redemption rights, liquidation preferences, sinking fund terms, and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. The issuance of preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring, or preventing change in our control or other corporate action. 

Registration Rights of Certain Stockholders

Under our registration rights agreement, as amended, certain holders of shares of common stock or their transferees have the right to require us to register the offer and sale of their shares, or to include their shares in any registration statement we file, in each case as described below. 

Demand Registration Rights 

Certain holders of shares of our common stock are entitled to certain demand registration rights. The holders of at least 25% of the shares (or a lesser percent for which the anticipated aggregate offering price would be at least $15 million) having registration rights then outstanding can request that we file a registration statement to register the offer and sale of their shares. We are only obligated to effect up to two such registrations. Each such request for registration must cover securities the anticipated aggregate public offering price of which, before deducting underwriting discounts and commissions, is at least $15 million. These demand registration rights are subject to specified conditions and limitations, including the right of the underwriters to limit the number of shares included in any such registration under certain circumstances. If we determine that it would be seriously detrimental to us and our stockholders to effect such a demand registration, we have the right to defer such registration, not more than once in any twelve month period, for a period of up to 60 days. 

Form S-3 Registration Rights 

Certain holders of shares of our common stock are entitled to certain Form S-3 registration rights. At any time when we are eligible to file a registration statement on Form S-3, the holders of the shares having these rights then outstanding can request that we register the offer and sale of their shares of our common stock on a registration statement on Form S-3 so long as the request covers securities the anticipated aggregate public offering price of which is at least $3 million. These stockholders may make an unlimited number of requests for registration on a registration statement on Form S-3. However, we will not be required to effect a registration 

	

	
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on Form S-3 if we have effected two such registrations within the twelve month period preceding the date of the request. Additionally, if we determine that it would be seriously detrimental to us and our stockholders to effect such a demand registration, we have the right to defer such registration, not more than once in any twelve month period, for a period of up to 60 days. 

Piggyback Registration Rights 

Certain holders of shares of our common stock are entitled to certain “piggyback” registration rights. If we propose to register the offer and sale of shares of our common stock under the Securities Act, all holders of these shares then outstanding can request that we include their shares in such registration, subject to certain marketing and other limitations, including the right of the underwriters to limit the number of shares included in any such registration statement under certain circumstances. As a result, whenever we propose to file a registration statement under the Securities Act, other than with respect to (1) a registration related to any employee benefit plan or a corporate reorganization or other transaction covered by Rule 145 promulgated under the Securities Act, (2) a registration in which the only stock being registered is common stock issuable upon conversion of debt securities also being registered, or (3) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of our common stock, the holders of these shares are entitled to notice of the registration and have the right, subject to certain limitations, to include their shares in the registration. 

Expenses of Registration 

We will pay all expenses relating to any demand registrations, Form S-3 registrations, and piggyback registrations, subject to specified exceptions. 

Termination 

The registration rights terminate upon the earliest of (1) the date that is five years after the closing of our initial public offering and (2) a deemed liquidation event (as defined in our amended and restated certificate of incorporation, in effect prior to the completion of our initial public offering).

Anti-Takeover Effects of Certain Provisions of Delaware Law, Our Amended and Restated Certificate of Incorporation and Our Amended and Restated Bylaws 

Certain provisions of Delaware law and certain provisions that are included in our amended and restated certificate of incorporation and amended and restated bylaws summarized below may be deemed to have an anti-takeover effect and may delay, deter, or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, including attempts that might result in a premium being paid over the market price for the shares held by stockholders. 

Preferred Stock 

Our amended and restated certificate of incorporation contains provisions that permit our board of directors to issue, without any further vote or action by the stockholders, shares of preferred stock in one or more series and, with respect to each such series, to fix the number of shares constituting the series and the designation of the series, the voting rights (if any) of the shares of the series and the powers, preferences, or relative, participation, optional, and other special rights, if any, and any qualifications, limitations, or restrictions, of the shares of such series. 

	

	
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Classified Board of Directors

Our amended and restated certificate of incorporation provides that our board of directors is divided into three classes, designated Class I, Class II, and Class III. Each class is an equal number of directors, as nearly as possible, consisting of one-third of the total number of directors constituting the entire board of directors. The term of initial Class I directors shall terminate on the date of the 2022 annual meeting, the term of the initial Class II directors shall terminate on the date of the 2020 annual meeting, and the term of the initial Class III directors shall terminate on the date of the 2021 annual meeting. At each annual meeting of stockholders, successors to the class of directors whose term expires at that annual meeting will be elected for a three-year term. 

Removal of Directors 

Our amended and restated certificate of incorporation provides that stockholders may only remove a director for cause by a vote of no less than a majority of the shares present in person or by proxy at the meeting and entitled to vote. 

Director Vacancies 

Our amended and restated certificate of incorporation authorizes only our board of directors to fill vacant directorships. 

No Cumulative Voting 

Our amended and restated certificate of incorporation provides that stockholders do not have the right to cumulate votes in the election of directors. 

Special Meetings of Stockholders 

Our amended and restated certificate of incorporation and amended and restated bylaws provides that, except as otherwise required by law, special meetings of the stockholders may be called only by the Chairperson of our board of directors, the Chief Executive Officer, the President, or our board of directors acting pursuant to a resolution adopted by a majority of the board of directors. 

Advance Notice Procedures for Director Nominations 

Our bylaws provide that stockholders seeking to nominate candidates for election as directors at an annual or special meeting of stockholders must provide timely notice thereof in writing. To be timely, a stockholder’s notice generally will have to be delivered to and received at our principal executive offices before notice of the meeting is issued by the secretary of the company, with such notice being served not less than 90 nor more than 120 days before the meeting. Although the amended and restated bylaws do not give the board of directors the power to approve or disapprove stockholder nominations of candidates to be elected at an annual meeting, the amended and restated bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the company. 

 

 

 

	

	
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Action by Written Consent 

Our amended and restated certificate of incorporation and amended and restated bylaws provide that any action to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by written consent. 

Amending our Certificate of Incorporation and Bylaws 

Our amended and restated certificate of incorporation may be amended or altered in any manner provided by the Delaware General Corporation Law (“DGCL”). Our amended and restated bylaws may be adopted, amended, altered, or repealed by stockholders only upon approval of at least majority of the voting power of all the then outstanding shares of the common stock, except for any amendment of certain provisions set forth in the bylaws, which would require the approval of a two-thirds majority of our then outstanding common stock. Additionally, our amended and restated certificate of incorporation provides that our bylaws may be amended, altered, or repealed by the board of directors. 

Authorized but Unissued Shares 

Our authorized but unissued shares of common stock and preferred stock are available for future issuances without stockholder approval, except as required by the listing standards of Nasdaq, and could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could render more difficult or discourage an attempt to obtain control of the company by means of a proxy contest, tender offer, merger, or otherwise. 

Exclusive Jurisdiction 

Our amended and restated bylaws provide that, unless we consent to the selection of an alternative forum, the Court of Chancery of the State of Delaware, or if the Court of Chancery does not have jurisdiction, the federal district court for the District of Delaware, is the exclusive forum for (i) any derivative action or proceeding brought on behalf of us, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee to the us or our stockholders, (iii) any action arising pursuant to any provision of the DGCL or our certificate of incorporation or bylaws (as either may be amended from time to time), or (iv) any action asserting a claim governed by the internal affairs doctrine, except, in each case, (A) any claim as to which such court determines that there is an indispensable party not subject to the jurisdiction of such court (and the indispensable party does not consent to the personal jurisdiction of such court within 10 days following such determination), (B) which is vested in the exclusive jurisdiction of a court or forum other than such court, or (C) for which such court does not have subject matter jurisdiction. Although our amended and restated bylaws contain the exclusive of forum provisions described above, it is possible that a court could find that such provision is inapplicable for a particular claim or action or that such provision is unenforceable, and our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder. 

Business Combinations with Interested Stockholders 

We are governed by Section 203 of the DGCL. Subject to certain exceptions, Section 203 of the DGCL prohibits a public Delaware corporation from engaging in a business combination (as defined in such section) with an “interested stockholder” (defined generally as any person who beneficially owns 15% or more of the outstanding voting stock of such corporation or any person affiliated with such person) for a period of three 

	

	
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years following the time that such stockholder became an interested stockholder, unless (i) prior to such time the board of directors of such corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder; (ii) upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of such corporation at the time the transaction commenced (excluding for purposes of determining the voting stock of such corporation outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (A) by persons who are directors and also officers of such corporation and (B) by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer); or (iii) at or subsequent to such time the business combination is approved by the board of directors of such corporation and authorized at a meeting of stockholders (and not by written consent) by the affirmative vote of at least 66 2/3% of the outstanding voting stock of such corporation not owned by the interested stockholder. 

Our amended and restated certificate of incorporation and our amended and restated bylaws provide that we must indemnify our directors and officers to the fullest extent authorized by the DGCL. We are expressly authorized to, and do, carry directors’ and officers’ insurance providing coverage for our directors, officers and certain employees for some liabilities. We believe that these indemnification provisions and insurance are useful to attract and retain qualified directors and executive directors. 

The limitation on liability and indemnification provisions in our certificate of incorporation and bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. 

 

	

	
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