Document:

EX-10.6

 Exhibit 10.6 
 Equity Financing 
 Binding Term Sheet 

May 23, 2013 
 This binding term sheet (this “Term Sheet”), dated as of the date first written above, is between Mandalay Digital Group, Inc., a Delaware corporation (“Issuer”), and
Windsor Media (“Investor”). The parties hereby agree as follows: 
  

			
	Security:	  	285,714 shares of common stock, par value $0.0001 per share (“Common Stock”), of Issuer (the “Shares”).
		
	 Purchase Price:
	  	$1,000,000 ($3.50 per share).
		
	 Warrant Coverage:
	  	Investor shall receive 25% warrant coverage (i.e., a warrant exercisable for 71,429 shares of Common Stock) (the “Warrant”). The Warrant shall be at the option
of Investor cash or cashless, have a five (5) year term from the date of issuance and an exercise price equal to $3.50 per share (which shall be adjusted from time to time for customary dilution and anti-dilution events). The Warrant may be
exercised only following the first anniversary of the date of issuance.
		
	 Closing:
	  	As soon as possible after the date of this Term Sheet but in no event later than May 29, 2013; provided that the transactions contemplated herein have been duly authorized by
Issuer and Issuer has received all requisite third party consents with respect to the issuance of the Shares.
		
	 Registration Rights:
	  	Issuer shall use best efforts to file a Registration Statement on Form S-3 or, if Issuer is not eligible for Form S-3, on Form S-1 (the “Registration Statement”)
covering the Shares and the shares of Common Stock underlying the Warrant within one hundred twenty (120) calendar days after the date of this Term Sheet and shall use its best efforts to cause the Registration Statement to become effective as soon
as possible thereafter.
		
	 Rights of Participation:
	  	Subject to standard carveouts, Investor shall have a right of participation for future financings undertaken by Issuer for a period of two (2) years following the date of
issuance of the Shares on a pro rata basis in accordance with Investor’s ownership interests in Issuer, on a fully diluted basis assuming exercise of the Warrant.
		
	Transferability:	  	Until the Shares and the shares issuable to Investor upon exercise of the Warrant have been registered pursuant to the Registration Statement, Investor may assign its right and
interests to the Shares and shares issued to Investor upon exercise of the Warrant, if any, subject to the consent of Issuer, which consent shall not be unreasonably withheld.

 This Term Sheet shall be binding on the parties hereto and their respective successors and assigns. Although the parties
anticipate entering into long-form documents with respect to the terms of this Term Sheet and containing such other provisions as are customary for transactions of the type contemplated, until they are able to do so, and in any case in the event
they are unable to do so, the terms of this Term Sheet shall be binding and shall govern the parties’ respective rights and obligations. This Term Sheet will be governed by and construed in accordance with the laws of the State of California.
Any disputes arising out of or relating to this Term Sheet shall be heard exclusively in state or federal courts located in California, each party waiving any and all objections to such venue. This Term Sheet sets forth the entire understanding of
the parties with respect to the subject matter hereof. This Term Sheet shall not be amended, or any provision hereof waived, except in a writing signed by each party hereto. This Term Sheet may be executed in any number of original, facsimile or
other electronic counterparts. 
 [Remainder of Page Intentionally Blank] 

 IN WITNESS WHEREOF, the parties hereto have executed this Term Sheet as of the date first
above written. 
  

									
	Issuer:	 		 	Investor:
			
	MANDALAY DIGITAL GROUP, INC.	 		 	WINDSOR MEDIA
					
	By:	 	 	 		 	Signature:	 	 
	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	

  

  
 -2-

 Binding Term Sheet 
 Equity FinancingEX-10.7

 Exhibit 10.7 
 Equity Financing 
 Binding Term Sheet 

April 11, 2013 
 This binding term sheet (this “Term Sheet”), dated as of the date first written above, is between Mandalay Digital Group, Inc., a Delaware corporation (“Issuer”), and
Guber Family Trust (“Investor”). The parties hereby agree as follows: 
  

			
	Security:	  	714,286 shares of common stock, par value $0.0001 per share (“Common Stock”), of Issuer (the “Shares”).
		
	 Purchase Price:
	  	$500,000 ($0.70 per share).
		
	 Warrant Coverage:
	  	Investor shall receive 25% warrant coverage (i.e., a warrant exercisable for 178,571 shares of Common Stock) (the “Warrant”). The Warrant shall be at the option
of Investor cash or cashless, have a five (5) year term from the date of issuance and an exercise price equal to $0.70 per share (which shall be adjusted from time to time for customary dilution and anti-dilution events). The Warrant may be
exercised only following the first anniversary of the date of issuance.
		
	 Closing:
	  	As soon as possible after the date of this Term Sheet but in no event later than April 16, 2013; provided that the transactions contemplated herein have been duly authorized by
Issuer and Issuer has received all requisite third party consents with respect to the issuance of the Shares.
		
	 Registration Rights:
	  	Issuer shall use best efforts to file a Registration Statement on Form S-3 or, if Issuer is not eligible for Form S-3, on Form S-1 (the “Registration Statement”)
covering the Shares and the shares of Common Stock underlying the Warrant within one hundred twenty (120) calendar days after the date of this Term Sheet and shall use its best efforts to cause the Registration Statement to become effective as soon
as possible thereafter.
		
	 Rights of Participation:
	  	Subject to standard carveouts, Investor shall have a right of participation for future financings undertaken by Issuer for a period of two (2) years following the date of
issuance of the Shares on a pro rata basis in accordance with Investor’s ownership interests in Issuer, on a fully diluted basis assuming exercise of the Warrant.
		
	Transferability:	  	Until the Shares and the shares issuable to Investor upon exercise of the Warrant have been registered pursuant to the Registration Statement, Investor may assign its right and
interests to the Shares and shares issued to Investor upon exercise of the Warrant, if any, subject to the consent of Issuer, which consent shall not be unreasonably withheld.

 This Term Sheet shall be binding on the parties hereto and their respective successors and assigns. Although the parties
anticipate entering into long-form documents with respect to the terms of this Term Sheet and containing such other provisions as are customary for transactions of the type contemplated, until they are able to do so, and in any case in the event
they are unable to do so, the terms of this Term Sheet shall be binding and shall govern the parties’ respective rights and obligations. This Term Sheet will be governed by and construed in accordance with the laws of the State of California.
Any disputes arising out of or relating to this Term Sheet shall be heard exclusively in state or federal courts located in California, each party waiving any and all objections to such venue. This Term Sheet sets forth the entire understanding of
the parties with respect to the subject matter hereof. This Term Sheet shall not be amended, or any provision hereof waived, except in a writing signed by each party hereto. This Term Sheet may be executed in any number of original, facsimile or
other electronic counterparts. 
 [Remainder of Page Intentionally Blank] 

 IN WITNESS WHEREOF, the parties hereto have executed this Term Sheet as of the date first
above written. 
  

									
	Issuer:	 		 	Investor:
			
	MANDALAY DIGITAL GROUP, INC.	 		 	GUBER FAMILY TRUST
					
	By:	 	 	 		 	Signature:	 	 
	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	

  
 -2-

 Binding Term Sheet 
 Equity FinancingEX-10.1

 Exhibit 10.1 

JOINDER AND FOURTH LOAN MODIFICATION AGREEMENT 

This Joinder and Fourth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of
September 26, 2013 (the “Fourth Loan Modification Effective Date”), by and among (i) SILICON VALLEY BANK, a California corporation with a loan production office located at 555 Mission St., Suite 900, San
Francisco, California 94105 (“Bank”), (ii) REAL GOODS ENERGY TECH, INC., a Colorado corporation (“Real Goods Energy”), REAL GOODS TRADING CORPORATION, a California corporation (“Real Goods
Trading”), and ALTERIS RENEWABLES, INC., a Delaware corporation (“Alteris” and together with Real Goods Energy, and Real Goods Trading, individually and collectively, jointly and severally, the
“Borrower”), and (iii) REAL GOODS SYNDICATED, INC., a Delaware corporation (“New Borrower” or “Syndicated”). 

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of December 19, 2011, evidenced by, among other documents, a certain Loan and Security Agreement, dated as of December 19, 2011, as amended by a certain First Loan Modification
Agreement, dated as of August 28, 2012, as further amended by a certain Second Loan Modification and Reinstatement Agreement, dated as of November 13, 2012 and as further amended by a certain Third Loan Modification Agreement, dated as of
March 27, 2013 (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 

2. DESCRIPTION OF COLLATERAL Repayment of the Obligations is secured by (i) the Collateral as described in the Loan Agreement, (ii) that
certain Security Agreement, dated as of December 19, 2011, between the Secured Guarantor and Bank (as amended, the “Security Agreement”), and (ii) the “Intellectual Property Collateral”, as such term is defined
in that certain IP Agreement, dated as of the Fourth Loan Modification Effective Date, by and among Bank, Borrower and New Borrower (together with any other collateral security granted to Bank, the “Security Documents”). 

Hereinafter, the Loan Agreement, together with all other documents executed in connection therewith evidencing, securing or otherwise relating to the
Obligations shall be referred to as the “Existing Loan Documents”. 
 3. JOINDER AND ASSUMPTION. New Borrower has been
purchased by Secured Guarantor and is a wholly owned Subsidiary of Secured Guarantor. New Borrower hereby joins the Loan Agreement and each of the other appropriate Existing Loan Documents, and agrees to comply with and be bound by all of the terms,
conditions and covenants of the Loan Agreement and each of the other appropriate Existing Loan Documents, as if New Borrower were originally named a “Borrower” and/or a “Debtor” therein. Without limiting the generality of the
preceding sentence, New Borrower hereby assumes and agrees to pay and perform when due all present and future indebtedness, liabilities and obligations of Borrower under the Loan Agreement, including, without limitation, the Obligations. From and
after the date hereof, all references in the Existing Loan Documents to “Borrower” and/or “Debtor” shall be deemed to refer to and include New Borrower. Further, all present and future Obligations of Borrower shall be deemed to
refer to all present and future Obligations of New Borrower. New Borrower acknowledges that the Obligations are due and owing to Bank from Borrower including, without limitation, New Borrower, without any defense, offset or counterclaim of any kind
or nature whatsoever as of the date hereof. 
 4. GRANT OF SECURITY INTEREST. To secure the payment and performance of all of the Obligations, New
Borrower hereby grants to Bank a continuing lien upon and security interest in all of New Borrower’s now existing or hereafter arising rights and interest in the Collateral, whether now owned or existing or hereafter created, acquired, or
arising, and wherever located, including, without limitation, all of New Borrower’s assets listed on Exhibit A to the Loan Agreement and all of New Borrower’s books and records relating to the foregoing and any and all claims,
rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. New Borrower
represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to
Bank’s Lien under the Loan Agreement). If New Borrower shall acquire a commercial tort claim, such New Borrower shall promptly notify Bank in a writing signed by such New Borrower of the general details thereof and grant to Bank in such writing
a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. New Borrower further covenants and agrees that by its execution hereof it
shall provide all such information, complete all such forms, and take all such actions, and enter into all such agreements, in form and substance 

  
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reasonably satisfactory to Bank that are reasonably deemed necessary by Bank in order to grant and continue a valid, first perfected security interest to Bank in the Collateral. New Borrower
hereby authorizes Bank to file financing statements, without notice to any Borrower, with all appropriate jurisdictions in order to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the
Collateral, by either any Borrower or any other Person, may be deemed to violate the rights of Bank under the Code. Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being
of an equal or lesser scope, or with greater detail, all in Bank’s discretion. 
 5. SUBROGATION AND SIMILAR RIGHTS. Borrower (in each case
including, without limitation, New Borrower) waives any suretyship defenses available to it under the Code or any other applicable law. Borrower waives any right to require Bank to: (i) proceed against any other Borrower or any other Person;
(ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Bank may exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by judicial or
non-judicial sale) without affecting any Borrower’s liability. Notwithstanding any other provision of this Loan Modification Agreement, the Loan Agreement, or any other Loan Documents, Borrower irrevocably waives all rights that it may have at
law or in equity (including, without limitation, any law subrogating such Borrower to the rights of Bank under the Loan Agreement), to seek contribution, indemnification or any other form of reimbursement from any other Borrower or any other Person
now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by any Borrower with respect to the Obligations in connection with the Loan Agreement or otherwise and all rights that it might have to benefit from,
or to participate in, any security for the Obligations as a result of any payment made by any Borrower with respect to the Obligations in connection with the Loan Agreement or otherwise. Any agreement providing for indemnification, reimbursement or
any other arrangement prohibited under this section shall be null and void. If any payment is made to any Borrower in contravention of this section, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered
to Bank for application to the Obligations, whether matured or unmatured. Any Borrower may, acting singly, request Credit Extensions under the Loan Agreement. Each Borrower hereby appoints the other as agent for the other for all purposes under the
Loan Agreement, including with respect to requesting Credit Extensions thereunder. Each Borrower shall be jointly and severally obligated to repay all Credit Extensions made under the Loan Agreement or any other Loan Documents, regardless of which
Borrower actually received said Credit Extension, as if each Borrower directly received all Credit Extensions. 
 6. REPRESENTATIONS AND WARRANTIES.
Except as described in the revised Perfection Certificate delivered in connection herewith, Borrower hereby represents and warrants to Bank that all representations and warranties in the Loan Documents made on the part of any Borrower are true and
correct on the date hereof with respect to New Borrower, with the same force and effect as if New Borrower were originally named as “Borrower” in the Loan Documents. In addition, Borrower and New Borrower hereby represent and warrant to
Bank that this Loan Modification Agreement has been duly executed and delivered by Borrower and New Borrower, and constitutes their legal, valid and binding obligation, enforceable against each in accordance with its terms. Hereafter, each reference
to “Borrower” and/or “Debtor”) in any Loan Document shall be deemed to reference both Borrower and New Borrower. 
 7. DESCRIPTION OF
CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the following text appearing as Section 2.3(a)(i) thereof: 

“(i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at
a floating per annum rate equal to the Prime Rate plus four and three-quarters percentage points (4.75%); provided that during a Streamline Period, the principal amount outstanding under the Revolving Line shall accrue interest
at a floating per annum rate equal to the Prime Rate plus two percentage points (2.00%), which interest shall be payable monthly, in arrears, in accordance with Section 2.3(g) below.” 

and inserting in lieu thereof the following: 

  
 2 

 “(i) Advances. From the fourth Loan Modification Date through and including the
earlier to occur of (x) the closing of the Mercury Acquisition and (y) January 31, 2014, subject to subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per
annum rate equal to the greater of (i) the Prime Rate plus four percentage points (4.00%) and (ii) eight percent (8.00%); provided that during a Streamline Period, the principal amount outstanding under the
Revolving Line shall accrue interest at a floating per annum rate equal to the greater of (i) the Prime Rate plus two percentage points (2.00%) and (y) six percent (6.00%), which interest shall in any event be payable monthly,
in arrears, in accordance with Section 2.3(g) below 
 From and after the earlier to occur of (x) the closing of the Mercury
Acquisition and (y) January 31, 2014, subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the greater of (i) the Prime Rate plus
four percentage points (4.00%) and (ii) eight percent (8.00%); provided that during a Streamline Period, the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to
the greater of (i) the Prime Rate plus two percentage points (2.00%) and (ii) six percent (6.00%), which interest shall in any event be payable monthly, in arrears, in accordance with Section 2.3(g) below.” 

 

	 	2	The Loan Agreement shall be amended by deleting the following text appearing as Section 6.3(c) thereof: 

“(c) Collection of Accounts. Borrower shall have the right to collect all Accounts, unless and until a Default or an Event of
Default has occurred and is continuing. Not later than ninety (90) days after the Third Loan Modification Effective Date, Borrower shall cause all payments on, and proceeds of, Accounts (including, without limitation, Accounts of the Real Goods
Borrowers) to be deposited directly by the applicable Account Debtor into a lockbox account, or such other “blocked account” as Bank may specify, pursuant to a blocked account agreement in form and substance satisfactory to Bank in its
sole discretion. Whether or not an Event of Default has occurred and is continuing, Borrower shall immediately deliver all payments on and proceeds of Accounts (including, without limitation, Accounts of the Real Goods Borrowers) to an account
maintained with Bank to be applied (i) prior to an Event of Default, to the Revolving Line pursuant to the terms of Section 2.5(b) hereof, and (ii) after the occurrence and during the continuance of an Event of Default, pursuant to
the terms of Section 9.4 hereof; provided, that during a Streamline Period, such payments and proceeds shall be transferred to an operating account of Borrower maintained at Bank. Notwithstanding anything herein to the contrary,
including, without limitation, the provisions of Section 6.8, the parties acknowledge that, until the date that is ninety (90) days after the Third Loan Modification Effective Date, Borrower shall be permitted to maintain the Wells Fargo
Account for the deposit of payments on, and proceeds of, Accounts of the Real Goods Borrowers.” 
 and inserting in lieu thereof the
following: 
 “(c) Collection of Accounts. Borrower shall have the right to collect all Accounts, unless and until a Default or
an Event of Default has occurred and is continuing. Borrower shall cause all payments on, and proceeds of, Accounts (including, without limitation, Accounts of the Real Goods Borrowers) to be deposited directly by the applicable Account Debtor into
a lockbox account, or such other “blocked account” as Bank may specify, pursuant to a blocked account agreement in form and substance satisfactory to Bank in its sole discretion. Whether or not an Event of Default has occurred and is
continuing, Borrower shall immediately deliver all payments on and proceeds of Accounts (including, without limitation, Accounts of the Real Goods Borrowers) to an account maintained with Bank to be applied (i) prior to an Event of Default, to
the Revolving Line pursuant to the terms of Section 2.5(b) hereof, and (ii) after the occurrence and during the continuance of an Event of Default, pursuant to the 

  
 3 

 
terms of Section 9.4 hereof; provided, that during a Streamline Period, such payments and proceeds shall be transferred to an operating account of Borrower maintained at
Bank.” 
  

	 	3	The Loan Agreement shall be amended by deleting the following text appearing as Section 6.8 thereof: 

“6.8 Operating Accounts. 

(a) Maintain its and its Subsidiaries’ (other than Finco or any Subsidiary of Finco, for which this Section 6.8(a) shall be
inapplicable), primary depository accounts, operating accounts and securities accounts with Bank and Bank’s affiliates with all excess funds maintained at or invested through Bank or an affiliate of Bank; provided that, Borrower
shall be permitted to maintain cash in its existing Wells Fargo Account in a maximum amount not to exceed the amount necessary to cover outstanding checks drawn on such Wells Fargo Account, with all amounts in excess thereof transferred to an
account of Borrower maintained at Bank. 
 (b) Provide Bank five (5) days prior-written notice before establishing any Collateral
Account at or with any bank or financial institution other than Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any time maintains (including, without limitation, the Wells Fargo Account, but excluding until required by
Bank, in its sole discretion, existing Collateral Accounts of Real Goods Trading maintained at financial institutions other than Bank), Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any
Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which
Control Agreement may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments
to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such.” 
 and inserting in lieu thereof the
following: 
 “6.8 Operating Accounts. 

(a) Maintain its and its Subsidiaries’ (other than Finco or any Subsidiary of Finco, for which this Section 6.8(a) shall be
inapplicable), primary depository accounts, operating accounts and securities accounts with Bank and Bank’s affiliates with all excess funds maintained at or invested through Bank or an affiliate of Bank. 

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

  
 4 

	 	4	The Loan Agreement shall be amended by deleting the following text appearing as Section 6.9 thereof: 

“6.9 Financial Covenant. Maintain at all times, to be tested as of the last day of each month, on a consolidated basis with
respect to Borrower and its Subsidiaries (A) the sum of (i) Qualified Cash (which Qualified Cash shall in any event at all times consist of not less than Five Hundred Thousand Dollars ($500,000) of Borrower’s unrestricted cash
maintained at Bank) plus (ii) Borrower’s Eligible Accounts divided by (B) the total outstanding Obligations of Borrower owed to Bank, expressed as a ratio, of at least 1.50:1.00.” 

and inserting in lieu thereof the following: 

“6.9 Financial Covenants. 

Maintain at all times, subject to periodic reporting as described below, on a consolidated basis with respect to Borrower, unless otherwise
indicated: 
 (a) Liquidity Ratio. (I) from the Fourth Loan Modification Effective Date through and including the earlier of
(x) the occurrence of the Mercury Acquisition and (y) January 31, 2014, maintain (A) the sum of (i) Qualified Cash plus (ii) Borrower’s Eligible Accounts divided by (B) the sum of
(i) the total outstanding Obligations of Borrower owed to Bank plus (ii) the total outstanding Subordinated Debt of Borrower, expressed as a ratio, of at least 1.50:1.00; and (II) thereafter, maintain (A) the sum of (i) Qualified
Cash plus (ii) Borrower’s Eligible Accounts divided by (B) the sum of (i) the total outstanding Obligations of Borrower owed to Bank plus (ii) the total outstanding Subordinated Debt of Borrower,
expressed as a ratio, of at least 1.75:1.00. 
 (b) EBITDA. Achieve EBITDA (loss no worse than), measured quarterly, on a trailing
six month basis (unless otherwise indicated below), of the following amounts for as of each period ending as of the date indicated below: 
  

					
	 Quarterly Period Ending (measured

on a trailing six month basis,

unless otherwise indicated)
	  	 Minimum EBITDA

(loss no worse than)
	 
	 September 30, 2013 (measured on a trailing three month basis)
	  	$	(1,500,000	) 
	 December 31, 2013
	  	$	(1,000,000	) 
	 March 31, 2014
	  	$	1,000,000	  
	 June 30, 2014
	  	$	1,000,000	  
	 September 30, 2014
	  	$	3,000,000	  

 ; provided, that nothing in the foregoing financial covenants shall be deemed to be an extension
of the Revolving Line Maturity Date. 

  
 5 

	 	5	The Loan Agreement shall be amended by deleting the following text appearing as Section 7.9 thereof: 

“7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination,
intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination
thereof to Obligations owed to Bank.” 
 and inserting in lieu thereof the following: 

“7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination,
intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination
thereof to Obligations owed to Bank; provided, that with respect to Subordinated Debt owed to (i) Riverside Renewable Energy Investments, LLC, and (ii) following receipt by Bank of an executed Amended and Restated
Subordination Agreement from Gaiam, Inc., (collectively, the “Existing Subordinated Creditors”), in form and substance acceptable to Bank, in its reasonable discretion, Borrower shall be permitted to pay, and each Existing
Subordinated Creditor shall be permitted to retain, each regularly scheduled non-default payment of interest and principal as and when due, so long as (i) no Event of Default exists immediately prior to any such payment and after giving effect
to any such payment; and (ii) Borrower maintains Net Cash at Bank at all times of at least Eight Million Dollars ($8,000,000).” 
  

	 	6	The Loan Agreement shall be amended by inserting the following definitions, each in its appropriate alphabetical order, in Section 13.1 thereof: 

“EBITDA” shall mean, with respect to Borrower, on a consolidated basis, for any period of measurement, in each case
determined in accordance with GAAP: (a) Net Income; plus (b) the following, in each case to the extent deducted from the calculation of Net Income: (i) Interest Expense; (ii) income tax expense; (iii) depreciation
expense and amortization expense; (iv) non-cash stock compensation expense; (v) for the trailing three month period ending September 30, 2013, up to Two Hundred Fifty Thousand Dollars ($250,000) of one-time, non-recurring cash
transaction expenses actually incurred in connection with the Syndicated Acquisition and/or the Mercury Acquisition; and (vi) for the trailing six month period ending December 31, 2013, up to One Million Two Hundred Fifty Thousand Dollars
($1,250,000) of one-time, non-recurring cash transaction expenses actually incurred in connection with the Syndicated Acquisition and/or the Mercury Acquisition; minus (c) the following, to the extent included in the calculation of Net
Income: (i) interest income; (ii) income tax credits (to the extent not netted from income tax expense); and (iii) all extraordinary gains and all other non-cash items of income for such period. 

“Existing Subordinated Creditor” is defined in Section 7.9. 

“Fourth Loan Modification Agreement” is that certain Joinder and Fourth Loan Modification Agreement, by and between Borrower
and Bank, dated as of the Fourth Loan Modification Effective Date. 
 “Fourth Loan Modification Effective Date” is
September 26, 2013. 
 “Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash)
determined in accordance with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrower, including, without limitation or duplication, all
commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements, and the interest
portion of any deferred payment obligation (including leases of all types). 

  
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 “IP Agreement” is that certain Intellectual Property Security Agreement
executed and delivered by Borrower to Bank dated as of the Fourth Loan Modification Effective Date. 
 “Liquidity Ratio” is
defined in Section 6.9(a). 
 “Net Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries
for any period as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period taken as a single accounting period. 

“Mercury Acquisition” is the acquisition by Borrower of Mercury Energy, Inc. through a reverse triangular merger with Real
Goods Mercury, Inc., a Delaware corporation and wholly owned subsidiary of Borrower. 
 “Net Cash” is the result of
(i) Borrower’s unrestricted cash at Bank minus (ii) all outstanding Obligations of Borrower owed to Bank. 

“Syndicated” is defined in the preamble to the Fourth Loan Modification Agreement. 

“Syndicated Acquisition” is the acquisition by Syndicated of all or substantially all of the assets of Syndicated Solar,
Inc., a Delaware corporation, and Syndicated Solar, Inc., a California corporation (“Seller”), as described in a certain Asset Purchase Agreement dated as of August 9, 2013, by an among Real goods, Syndicated and Seller. 

 

	 	7	The Loan Agreement shall be amended by deleting the following definitions from Section 13.1 thereof: 

““Guaranty” is any present or future agreement pursuant to which any Guarantor agrees to guaranty the Obligations of
Borrower to Bank, including without limitation, that certain Unconditional Guaranty dated the date hereof by Secured Guarantor in favor of Bank. 

“Loan Documents” are, collectively, this Agreement, the Guaranty, the Security Agreement, the Perfection Certificate, the
Subordination Agreement, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower and any Guarantor and/or for the
benefit of Bank, all as amended, restated, or otherwise modified. 
 “Revolving Line Maturity Date” is September 30,
2013. 
 “Security Agreement” is that certain Security Agreement date the date hereof by and between Secured Guarantor and
Bank. 
 “Streamline Period” is, on and after the Effective Date, provided no Default or Event of Default has occurred and
is continuing, the period (i) beginning on the first (1st) day in which Borrower has, for each consecutive day in the immediately preceding sixty (60) day period, maintained Qualified Cash minus the total outstanding
Obligations of Borrower owed to Bank, as determined by Bank, in its sole discretion, in an amount at all times greater than or equal to Two Million Dollars ($2,000,000), as determined by Bank, in its sole discretion (the “Streamline
Balance”); and (ii) ending on the earlier to occur of (A) the occurrence of a Default or an Event of Default; and (B) the first day thereafter in which Borrower fails to maintain the Streamline Balance, as determined by Bank,
in its sole discretion. Upon the termination of a Streamline Period, Borrower must maintain the Streamline Balance each consecutive day for sixty (60) consecutive days, as determined by Bank, in its sole discretion, prior to entering into a
subsequent Streamline Period. 
 “Subordination Agreement” the collective reference to (i) that certain Subordination
Agreement by Gaiam, Inc., (ii) that certain Subordination Agreement by Riverside Renewable Energy Investments, LLC, each in favor of Bank, and each dated on or about the date hereof; and (iii) each other subordination, intercreditor or
similar agreement entered into by Bank and any creditor of Borrower.” 

  
 7 

 and inserting in lieu thereof the following: 

““Guaranty” is any present or future agreement pursuant to which any Guarantor agrees to guaranty the Obligations of
Borrower to Bank, including without limitation, that certain Amended and Restated Unconditional Guaranty dated as of the Fourth Loan Modification Effective Date, by Secured Guarantor in favor of Bank. 

“Loan Documents” are, collectively, this Agreement, the Guaranty, the Security Agreement, the Perfection Certificate, the
Subordination Agreement, the IP Agreement, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower and any Guarantor
and/or for the benefit of Bank, all as amended, restated, or otherwise modified. 
 “Revolving Line Maturity Date” is
September 29, 2014. 
 “Security Agreement” is that certain Amended and Restated Security Agreement dated as of the
Fourth Loan Modification Effective Date, by and between Secured Guarantor and Bank. 
 “Streamline Period” is, on and after
the Fourth Loan Modification Effective Date, provided no Default or Event of Default has occurred and is continuing, the period (X) beginning on the first (1st) day in which Borrower has, for each consecutive day in two
(2) consecutive monthly periods, maintained a Liquidity Ratio, as determined by Bank, in its sole discretion, in an amount at all times greater than or equal to (i) from the Fourth Loan Modification Effective Date through and including the
earlier of (I) the occurrence of the Mercury Acquisition and (II) January 31, 2014, 1.75:1.00; and (ii) thereafter, 2.00:1.00 (the “Streamline Threshold”); and (ii) ending on the earlier to occur of (A) the
occurrence of a Default or an Event of Default; and (B) the first day thereafter in which Borrower fails to maintain the Streamline Threshold, as determined by Bank, in its sole discretion. Upon the termination of a Streamline Period, Borrower
must maintain the Streamline Threshold each consecutive day for two (2) consecutive monthly periods, as determined by Bank, in its sole discretion, prior to entering into a subsequent Streamline Period. 

“Subordination Agreement” the collective reference to (i) that certain Subordination Agreement by Gaiam Energy Tech,
Inc., (ii) that certain Amended and Restated Subordination Agreement by Riverside Renewable Energy Investments, LLC, each in favor of Bank, and each dated on or about the Fourth Loan Modification Effective Date; and (iii) each other
subordination, intercreditor or similar agreement entered into by Bank and any creditor of Borrower.” 
  

	 	8	The Compliance Certificate attached as Exhibit B to the Loan Agreement is hereby deleted in its entirety and is replaced with Exhibit A attached hereto. 

8. CONDITIONS PRECEDENT. Borrower hereby agrees that the following documents shall be delivered to the Bank prior to or concurrently with the execution
of this Loan Modification Agreement, each in form and substance satisfactory to the Bank (collectively, the “Conditions Precedent”): 
  

	 	A.	Bank shall have received copies, certified by a duly authorized officer of each Borrower (including, without limitation, New Borrower), to be true and complete as of the date hereof, of each of (i) the governing
documents of each Borrower (including, without limitation, New Borrower) as in effect on the date hereof, (ii) the resolutions of each Borrower (including, without limitation, New Borrower) authorizing the execution and delivery of this Loan
Modification Agreement, the other documents executed in connection herewith and each Borrower’s performance of all of the transactions contemplated hereby, and (iii) an incumbency certificate giving the name and bearing a specimen
signature of each individual who shall be so authorized on behalf of each Borrower (including, without limitation, New Borrower); 

  

	 	B.	executed copies of the Joinder and Fourth Loan Modification Agreement, IP Security Agreement (together with such Intellectual Property search results as Bank shall require), Guaranty and Security Agreement;

  
 8 

	 	C.	a good standing certificate of each Borrower (including, without limitation, New Borrower), certified by the Secretary of State of the state of incorporation of each respective Borrower (including, without limitation,
New Borrower), together with a certificate of foreign qualification from the Secretary of State (or comparable governmental entity) of each state in which each Borrower (including, without limitation, New Borrower) is qualified to transact business
as a foreign entity, if any, in each case dated as of a date no earlier than thirty (30) days prior to the date hereof; 

  

	 	D.	certified copies, dated as of a recent date, of financing statement and other lien searches of each Borrower (including, without limitation, New Borrower), as Bank may request and which shall be obtained by Bank,
accompanied by written evidence (including any UCC termination statements) that the Liens revealed in any such searched either (i) will be terminated prior to or in connection with the Loan Modification Agreement, or (ii) in the sole
discretion of Bank, will constitute Permitted Liens; 

  

	 	E.	a filed copy, which shall be filed by Bank, acknowledged by the appropriate filing office in the State of Delaware, of a UCC Financing Statement, naming New Borrower as “Debtor” and Bank as “Secured
Party”; 

  

	 	F.	a completed Perfection Certificate executed by New Borrower, together with the duly executed original signatures thereto; 

  

	 	G.	an executed copy of the Amended and Restated Subordination Agreement from Riverside Renewable Energy Investments, LLC (total original principal amount of Subordinated Debt equal to $4,150,000); 

 

	 	H.	updated evidence of insurance; and 

  

	 	I.	such other documents as Bank may reasonably request. 

 9. FEES. Borrower shall pay to Bank an extension
fee equal to Sixty Five Thousand Dollars ($65,000.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with
the Existing Loan Documents and this Loan Modification Agreement. 
 10. CONDITION SUBSEQUENT. On or before the date that is ten (10) Business
Days after the occurrence of the Mercury Acquisition, Borrower shall cause Real Goods Mercury, Inc., a Delaware corporation (“Mercury”), to comply with Section 6.12 of the Loan Agreement. Until such time as Borrower has caused
Mercury to comply with Section 6.12 of the Loan Agreement to Bank’s satisfaction, in its reasonable discretion (including, without limitation, the granting by Mercury to Bank of a first-priority, perfected security interest to Bank in all
assets of Mercury, and the joinder to such Loan Documents by Bank as Bank shall require, in its reasonable discretion), no accounts of Mercury will be included in any Borrowing Base calculation. 

11. FINAL PAYMENT FEE. In addition to the fees and expenses described above, on or before September 30, 2013, Borrower shall pay to Bank a final
payment fee equal to Forty Thousand Dollars ($40,000) (the “Final Payment Fee”), which final payment fee shall be fully earned and non-refundable when paid. Such Final Payment Fee is in lieu of and replaces any other “final
payment fee” described in any prior loan modification agreement or in any other Loan Document. 
 12. ADDITIONAL COVENANTS: RATIFICATION OF
PERFECTION CERTIFICATE. Borrower hereby certifies that, other than as disclosed in the Perfection Certificate, no Collateral with a value greater than Ten Thousand Dollars ($10,000) in the aggregate is in the possession of any third party bailee
(such as at a warehouse). In the event that Borrower, after the date hereof, intends to store or otherwise deliver the Collateral with a value in excess of Ten Thousand Dollars ($10,000) in the aggregate to such a bailee, then Borrower shall first
receive, the prior written consent of Bank and such bailee must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank. Except as supplemented through the Fourth Loan Modification Effective Date and with respect to
the Perfection Certificate of New Borrower, dated as of the Fourth Loan Modification Effective Date, 

  
 9 

 
Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate, dated as of December 19, 2011, as supplemented
through the Fourth Loan Modification Effective Date, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in such Perfection Certificate remains true and correct in all material respects as of the
date hereof. 
 13. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

 14. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of the Loan Agreement and each
other Loan Document, and of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

15. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 16. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modify the Existing Loan Documents pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations.
Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by
Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
  

	17.	JURISDICTION/VENUE. Section 11 of the Loan Agreement is hereby incorporated by reference. 

 18.
COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank. 

[Signature page follows.] 

  
 10 

 This Loan Modification Agreement is executed as of the date first written above. 

 

									
	 BORROWER
  
	 		 		 	
	REAL GOODS ENERGY TECH, INC.	 		 	REAL GOODS TRADING CORPORATION
					
	By:	 	 /s/ Anthony M. Dipaolo
	 		 	By:	 	 /s/ Anthony M. Dipaolo

	Name: Anthony M. Dipaolo	 		 	Name: Anthony M. Dipaolo
	Title: Chief Financial Officer	 		 	Title: Chief Financial Officer
			
	ALTERIS RENEWABLES, INC.	 		 	REAL GOODS SYNDICATED, INC.
					
	By:	 	 /s/ Anthony M. Dipaolo
	 		 	By:	 	 /s/ Anthony M. Dipaolo

	Name: Anthony M. Dipaolo	 		 	Name: Anthony M. Dipaolo
	Title: Chief Financial Officer	 		 	Title: Chief Financial Officer

 BANK: 
  

			
	SILICON VALLEY BANK
		
	By:	 	 /s/ Elisa Sun

	Name: Elisa Sun
	Title: Vice President

  
 11 

 Exhibit A to Fourth Loan Modification Agreement 

EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

									
	TO:	  	SILICON VALLEY BANK	  		  	Date:	  	
	FROM:	  	REAL GOODS ENERGY TECH, INC. ET. AL.	  		  		  	

 The undersigned authorized officer of REAL GOODS ENERGY TECH, INC., et al. (the
“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (as amended, the “Agreement”), (1) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and
warranties in the Agreement are true and correct in all material respects on this date except as noted below; 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, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower
except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll or benefits of
which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period
to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement,
and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No    
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No    
			
	Annual Audited Financial Statements	  	FYE within 120 days	  	
			
	A/R & A/P Agings	  	Monthly within 20 days	  	Yes    No    
			
	Transaction Reports	  	 Weekly and with each request for a
 Credit
Extension (Monthly within 20 days during a Streamline Period)
	  	Yes    No    
			
	Projections	  	 Within 20 days of board approval
 (no later than
60 days after FYE)
	  	Yes    No    
			
	 Deferred Revenue Report, Schedule of Assets with respect

to 3rd party construction and financing arrangements

(including performance bonds and bank statements
 For non-SVB bank
accounts)
	  	Monthly within 30 days	  	Yes    No    
			
	Electronic viewing access to Wells Fargo Account	  	 From and after the Third Loan
 Modification
Effective Date
	  	Yes    No    
	
	The following Intellectual Property was registered after the Effective Date (if no registrations, state “None”)

  
 12 

													
	 Financial Covenants
	  	Required	 	  	Actual	 	  	Complies/
Streamline	 
	 Maintain at all times (unless otherwise indicated), measured as indicated below:
	  				  				  			
	 Liquidity Ratio (monthly)
	  	 	*	  	  	 	        :1.00	  	  	 	Yes    No    	  
	 EBITDA (measured quarterly)**
	  	 	**	  	  	$	            	  	  	 	Yes    No    	  
	 Streamline Period (Liquidity Ratio)
	  	 	1.75/2.00:1.00	  	  	$	            	  	  	 	Yes    No    	  

  

	*	See Section 6.9(a) of the Loan and Security Agreement 

	**	See Section 6.9(b) of the Loan and Security Agreement 

 The following financial covenant
analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate. 
 The following
are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”) 
  

 
  

 
  

 

 

			
	REAL GOODS ENERGY TECH, INC., et al.
		
	By:	 	   

	Name:	 	
	Title:	 	

 

			
	BANK USE ONLY
		
	Received by:	 	   

		 	AUTHORIZED SIGNER
		
	Date:	 	
		
	Verified:	 	   

		 	AUTHORIZED SIGNER
		
	Date:	 	
	
	Compliance Status:         Yes    No    

 
 

  
 13 

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

Dated:
                                         
    
  

	I.	Liquidity Ratio (Section 6.9(a)) 

 Required:(I) from the Fourth Loan Modification Effective Date through
and including the earlier of (x) the occurrence of the Mercury Acquisition and (y) January 31, 2014, maintain (A) the sum of (i) Qualified Cash plus (ii) Borrower’s Eligible Accounts divided by
(B) the sum of (i) the total outstanding Obligations of Borrower owed to Bank plus (ii) the total outstanding Subordinated Debt of Borrower, expressed as a ratio, of at least 1.50:1.00; and (II) thereafter, maintain (A) the sum
of (i) Qualified Cash plus (ii) Borrower’s Eligible Accounts divided by (B) the sum of (i) the total outstanding Obligations of Borrower owed to Bank plus (ii) the total outstanding Subordinated Debt of
Borrower, expressed as a ratio, of at least 1.75:1.00. 
 Actual: 
  

							
	A.	  	Qualified Cash	  	 	$            	  
			
	B.	  	Eligible Accounts	  	 	$            	  
			
	C.	  	Total Outstanding Obligations of Borrower owed to Bank	  	 	$            	  
			
	D.	  	Total outstanding Subordinated Debt	  	 	$            	  
			
	E.	  	Liquidity Ratio ( (i) the sum of line A plus line B divided by (ii) the sum of line C plus line D, expressed as a ratio)	  	 	        :1.00	  

 Is line E equal to or greater than
[                    ]:1:00? 
  

					
	         No, not in compliance	 		  	         Yes, in compliance

  
 14 

	II.	EBITDA. (Section 6.9(b). 

 Required: Achieve EBITDA (loss no worse than), measured quarterly, on a
trailing six month basis (unless otherwise indicated below), of the following amounts for as of each period ending as of the date indicated below: 
  

					
	 Quarterly Period Ending (measured on a trailing six month basis,

unless otherwise indicated)
	  	Minimum EBITDA
(loss no worse than)	 
	 September 30, 2013 (measured on a trailing three month basis)
	  	$	(1,500,000	) 
	 December 31, 2013
	  	$	(1,000,000	) 
	 March 31, 2014
	  	$	1,000,000	  
	 June 30, 2014
	  	$	1,000,000	  
	 September 30, 2014
	  	$	3,000,000	  

 ; provided, that nothing in the foregoing financial covenants shall be deemed to be an extension of the
Revolving Line Maturity Date. 
 Actual: All amounts measured as indicated above and determined on a consolidated basis in accordance with GAAP: 

 

							
	A.	  	Net Income	  	 	$            	  
			
	B.	  	Plus the following, in each case to the extent deducted from the calculation of Net Income	  			
			
		  	 1.      Interest Expense
	  	 	$            	  
			
		  	 2.      income tax expense
	  	 	$            	  
			
		  	 3.      depreciation expense and amortization expense
	  	 	$            	  
			
		  	 4.      non-cash stock compensation expense
	  	 	$            	  
			
		  	 5.      for the trailing three month period ending September 30, 2013, up to Two Hundred Fifty Thousand
Dollars ($250,000) of one-time, non-recurring cash transaction expenses actually incurred in connection with the Syndicated Acquisition and/or the Mercury Acquisition
	  	 	$            	  
			
		  	 6.      for the trailing six month period ending December 31, 2013, up to One Million Two Hundred Fifty
Thousand Dollars ($1,250,000) of one-time, non-recurring cash transaction expenses actually incurred in connection with the Syndicated Acquisition and/or the Mercury Acquisition
	  	 	$            	  
			
		  	 7.      The sum of lines B.1 through B.6
	  	 	$            	  

  
 15 

							
	C.	  	Minus the following, to the extent included in the calculation of Net Income	  			
			
		  	 1.      interest income
	  	 	$            	  
			
		  	 2.      income tax credits (to the extent not netted from income tax expense)
	  	 	$            	  
			
		  	 3.      all extraordinary gains and all other non-cash items of income for such period
	  	 	$            	  
			
		  	 4.      The Sum of lines C.1 through C.3
	  	 	$            	  
			
	D.	  	EBITDA (line A plus line B.7 minus line C.4)	  	 	$            	  

 Is line D equal to or greater than (loss no worse than
$[                    ]? 
  

					
	         No, not in compliance	  		  	         Yes, in compliance

  
 16 

	II.	Streamline Period. 

 Required: On and after the Fourth Loan Modification Effective Date, provided no
Default or Event of Default has occurred and is continuing, the period (X) beginning on the first (1st) day in which Borrower has, for each consecutive day in the immediately preceding sixty (60) day period, maintained a Liquidity
Ratio, as determined by Bank, in its sole discretion, in an amount at all times greater than or equal to (i) from the Fourth Loan Modification Effective Date through and including the earlier of (I) the occurrence of the Mercury
Acquisition and (II) January 31, 2014, 1.75:1.00; and (ii) thereafter, 2.00:1.00 (the “Streamline Threshold”); and (ii) ending on the earlier to occur of (A) the occurrence of a Default or an Event of Default;
and (B) the first day thereafter in which Borrower fails to maintain the Streamline Threshold, as determined by Bank, in its sole discretion. Upon the termination of a Streamline Period, Borrower must maintain the Streamline Threshold each
consecutive day for sixty (60) consecutive days, as determined by Bank, in its sole discretion, prior to entering into a subsequent Streamline Period. 

Actual: 
  

							
	A.	  	Qualified Cash	  	 	$            	  
			
	B.	  	Eligible Accounts	  	 	$            	  
			
	C.	  	Total Outstanding Obligations of Borrower owed to Bank	  	 	$            	  
			
	D.	  	Total outstanding Subordinated Debt	  	 	$            	  
			
	E.	  	Liquidity Ratio ( (i) the sum of line A plus line B divided by (ii) the sum of line C plus line D, expressed as a ratio)	  	 	        :1.00	  

 Is line E equal to or greater than
                    :1.00? 
  

					
	         No, not in Streamline Period	  		  	         Yes, in Streamline Period

  
 17

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