Document:

Loan and Security Agreement

 Exhibit 10.16 
  
 LOAN AND SECURITY AGREEMENT 
  

by and between 
  
 WELLS FARGO FINANCIAL PREFERRED CAPITAL, INC., 
  
 AND 
  
 FSB FINANCIAL, LTD. 
  
 Dated June 8, 2005 
  
 $75,000,000 

 LOAN AND SECURITY AGREEMENT 
  
 This LOAN AND SECURITY AGREEMENT (“Agreement”) is made as of the 8th day of June, 2005, by and between FSB
FINANCIAL, LTD. (“Borrower”), a Texas limited partnership with its principal office located at 110 West Randol Mill Road Suite 100, Arlington, Texas 76011, and WELLS FARGO FINANCIAL PREFERRED CAPITAL, INC. (“WFFPC”), an Iowa
corporation with its principal office located at 800 Walnut, Des Moines, Iowa 50309. 
  
 BACKGROUND 
  
 Borrower has
requested and WFFPC has agreed to make available to Borrower a secured revolving credit facility in the initial principal amount of $75,000,000, all on the terms and subject to the conditions set forth herein. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties covenant and agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS

  
 Section 1.1 Certain Definitions. The terms
defined in this Section 1.1, whenever used and capitalized in this Agreement shall, unless the context otherwise requires, have the respective meanings herein specified. 
  
 “Adjusted Tangible Net Worth” means, as of any date of determination, Tangible Net Worth minus the
aggregate amount of Borrower’s Receivables included in its Tangible Net Worth that are 120 days or more delinquent on a contractual aging basis. 
  
 “Advance” means each advance of the Loan made to Borrower pursuant to Section 2.1 hereof. 
  
 “Advance Rate” means the following percentage based upon the
Collateral Performance Indicator as of the end of each month then most recently ended for which monthly reports have been delivered to WFFPC pursuant to Section 6.2: 
  

				
	 Collateral Performance Indicator

	  	 Applicable
 Margin

	 
	 Less than or equal to 7.0%
	  	87	%
	 Greater than 7.0% but less than or equal to 8.0%
	  	86	%
	 Greater than 8.0% but less than or equal to 9.0%
	  	85	%
	 Greater than 9.0% but less than or equal to 10%
	  	84	%
	 Greater than 10%
	  	83	%

  
 “Affiliate” means (i) any person who or entity which directly or indirectly owns, controls or 

 
holds 5% or more of the outstanding beneficial interest in Borrower; (ii) any entity of which 5% or more of the outstanding beneficial interest is directly
or indirectly owned, controlled, or held by Borrower; (iii) any entity which directly or indirectly is under common control with Borrower; (iv) any officer, director, partner or employee of Borrower or any Affiliate; or (v) any immediate family
member of any person who is an Affiliate. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through
the ownership of voting securities, by contract, or otherwise. 
  
 “Agreement” means this Loan and Security Agreement and all exhibits and schedules hereto, as the same may be amended, modified or supplemented from time to time. 
  
 “Availability Statement” means the certificate in substantially the form of Exhibit B hereto to be
submitted by Borrower to WFFPC in accordance with the provisions of Section 2.1 and Section 3.3 hereof. 
  
 “Bankruptcy Code” means the United States Bankruptcy Code as now constituted or hereafter amended and any similar statute or law
affecting the rights of debtors. 
  
 “Base Rate”
means from the date of determination the LIBOR Rate for such date. 
  
 “Books and Records” means all of Borrower’s original ledger cards, payment schedules, credit applications, contracts, lien and security instruments, guarantees relating in any way to the Collateral and other books and
records or transcribed information of any type, whether expressed in electronic form in tapes, discs, tabulating runs, programs and similar materials now or hereafter in existence relating to the Collateral. 
  
 “Borrower” means FSB Financial, Ltd., a Texas limited
partnership, and its respective successors and assigns. 
  
 “Borrower’s Loan Account” has the meaning assigned to that term in Section 2.1 of this Agreement. 
  
 “Borrowing Base” means, as of the date of determination, an amount up to Advance Rate of the aggregate balance of outstanding WFFPC
Receivables that are Eligible Receivables net of any unearned interest, fees, commissions, discounts, holdbacks, post-purchase add-on insurance premiums and reserves that are otherwise included by Borrower in identifying the balance outstanding on
its Receivables. 
  
 “Business Day” means any day
except a Saturday, Sunday or other day on which national banks are authorized by law to close including, without limitation, United States federal government holidays. 
  
 “Capital Base” means the sum of Borrower’s Adjusted Tangible Net Worth plus Subordinated Debt.

  
 “Charge-off” or
“Charged-off”, when used in reference to Receivables, means the cumulative Principal Balance (less applicable discounts, if any) of an account or accounts written off, net of recoveries. 
  

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 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
regulations with respect thereto in effect from time to time. 
  
 “Collateral” means: 
  
 (i) All WFFPC
Receivables, now owned or existing or hereafter arising or acquired; 
  
 (ii) All collateral, security and guaranties now or hereafter in existence for any of the WFFPC Receivables; 
  
 (iii) All insurance related to any of the WFFPC Receivables, to any collateral or security for any of the WFFPC Receivables or to any obligor in respect
of any of the WFFPC Receivables and all proceeds of such insurance (including, without limitation, all non-filing insurance, credit insurance and credit life insurance related to any of the WFFPC Receivables, to any collateral or security for any of
the WFFPC Receivables, or to any obligor in respect of any WFFPC Receivables and all proceeds of such insurance); 
  
 (iv) All of Borrower’s Books and Records related to any of the WFFPC Receivables including all computers and computer related equipment, tapes and
software; 
  
 (v) All notes, drafts, deposit accounts,
acceptances, documents of title, deeds, policies and policies or certificates of insurance (including without limitation credit insurance, credit life insurance, non-filing insurance and title insurance) and securities (domestic and foreign) and
letter of credit rights now or hereafter owned by Borrower or in which Borrower has or at any time acquires an interest in connection with any of the WFFPC Receivables; 
  
 (vi) All of Borrower’s Accounts, Documents, Instruments, General Intangibles and Chattel Paper as defined in Section
1.2(b) of this Agreement, now owned or existing or hereafter arising or acquired related to the WFFPC Receivables, and all payment obligations owed to Borrower, now owned or existing or hereafter arising or acquired solely relating to the WFFPC
Receivables; together with all collateral, security and guaranties now or hereafter in existence for any of the foregoing related to the WFFPC Receivables; and 
  

(vii) All cash and non-cash proceeds of all the foregoing. 
  
 “Collateral Performance Indicator” means as of the end of each testing period the sum of (i) (a) monthly average of WFFPC Receivables
greater than 60 days contractually past due as of the end of the last three calendar months, divided by (b) average total WFFPC Receivables as of the end of the last three calendar months and (ii) (a) net charge-offs of WFFPC Receivables for the 12
month period ending on such date, divided by (b) average net WFFPC Receivables outstanding during such twelve month period. 
  
 “Collections” means payment of principal, interest and fees on WFFPC Receivables, the cash and non-cash proceeds realized from the
enforcement of such Receivables and any security therefor, or the Collateral, proceeds of credit, group life or non-filing insurance, or proceeds of insurance on any personal property which is part of the collateral for the Receivables. 

 
 “Commitment” means the maximum principal amount which
WFFPC has agreed may be loaned to Borrower pursuant to Article 2 hereof, being, on the date hereof, $75,000,000. 
  

 3 

 “Consumer Finance Laws” means all applicable laws and regulations, federal, state and
local, relating to the extension of consumer credit, and the creation of a security interest in personal property in connection therewith, and laws with respect to protection of consumers’ interests in connection with such transactions,
including without limitation, any usury laws, the Federal Consumer Credit Protection Act, the Federal Fair Credit Reporting Act, the Magnuson-Moss Warranty Act, the Federal Trade Commission’s Rules and Regulations and Regulations B and Z of the
Federal Reserve Board, as any of the foregoing may be amended from time to time. 
  
 “Credit Documents” means this Agreement, the Note, the Subordination Agreement(s), the Custodian Agreement(s) and any and all additional documents, instruments, agreements and other writings executed
and delivered pursuant to or in connection with this Agreement. 
  
 “Custodian” means, initially, Steve Burke. 
  
 “Custodian Agreement” means that certain Custodian Agreement dated of even date herewith by and between WFFPC, Borrower, and an individual custodian, substantially in the form attached hereto as Exhibit C, as the
same may be amended, modified, restated or extended from time to time. 
  
 “Debt” means, as of the date of determination, all of Borrower’s outstanding indebtedness (other than deferred loan origination fees of Borrower and non-recourse obligations owing to a Special Purpose Subsidiary)
including without limitation (a) all loans made by WFFPC to Borrower; (b) Borrower’s accounts payable as of the date of determination; (c) Borrower’s income tax liabilities; (d) Borrower’s mortgages; (e) Borrower’s deposits and
debenture instruments; (f) Borrower’s Subordinated Debt; and (g) indebtedness owing to SSB. 
  
 “Default” means an event, condition or circumstance which, with the giving of notice or the passage of time, or both, would constitute an
Event of Default. 
  
 “EBITDA Ratio” means
Borrower’s earnings before payments of interest, taxes, depreciation and amortization expense for the twelve month period ending on the date of determination, net of the amount of any WFFPC Receivables to be charged off, that have not been
charged off under Section 6.4(d), as a percent of interest expense during such twelve month period in accordance with GAAP principles pursuant to Section 6.4 of this Agreement. Any increase during such twelve month period in the shortfall between
Borrower’s Allowance for Loan Losses and the applicable Minimum Allowance for Loan Losses shall be subtracted from Borrower’s reported earnings for purposes of identifying Borrower’s “earnings” as that term is used in this
formula. WFFPC may also, in its reasonable discretion, disregard extraordinary or non-recurring income or expense experienced by Borrower during the testing period for purposes of determining Borrower’s EBITDA Ratio, provided that gains
realized by Borrower from the sale of Receivables shall not be deemed extraordinary or non-recurring for purposes of this formula. 
  
 “Eligible Receivables” means, as of the date of determination, WFFPC Receivables (net of unearned interest and unearned discounts) which
are Chattel Paper, which conform to the warranties set forth in Section 4.1 hereof, in which WFFPC has a validly perfected first priority and only Lien, and which are not any of the following: (i) Receivables for which a payment is more than 30 days
past due on a contractual basis at the time they are first submitted for qualification as WFFPC Receivables; (ii) Receivables for which a payment is more than 60 days past due on a 

  

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contractual basis; (iii) Receivables in litigation, foreclosure or repossession; (iv) Receivables subject to bankruptcy proceedings or the account debtor
with respect to which is a debtor under the Bankruptcy Code; (v) Receivables from officers, employees or partners of Borrower or any Affiliate; (vi) Receivables which have been deferred or extended by Borrower (not including deferrals or extensions
by Borrower’s predecessor in title to such Receivables) for one month more than two times during any twelve (12) month period; (vii) Receivables which have been re-written or the original terms have been otherwise modified; (viii) Receivables
arising from deficiency balance accounts; (ix) Interest Only Accounts; (x) Receivables with an original term greater than 72 months; (xi) electronic chattel paper; (xii) Receivables which are payable by their terms more frequently than monthly;
(xiii) Receivables which, in WFFPC’s reasonable credit discretion, do not constitute acceptable collateral. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, all amendments thereto, and any successor statute of similar import,
and regulations thereunder, in each case as in effect from time to time. References to sections of ERISA shall be construed to refer to any successor sections. 
  

“Event of Default” has the meaning assigned to that term in Article 8 of this Agreement. 
  
 “Existing Long-Term Unsecured Debt” means the indebtedness
of Borrower listed on Exhibit H attached hereto and made part hereof. 
  
 “GAAP” means generally accepted accounting principles applied on a consistent basis, in accordance with the Statement of Auditing Standards No. 69, “The Meaning of Present Fairly in Conformity
with Generally Accepted Accounting Principles in the Independent Auditor’s Report” (SAS 69) or superseding pronouncements, issued by the Auditing Standards Board of the American Institute of Certified Public Accountants and/or in
statements of the Financial Accounting Standards Board and/or in such other statements by such other entity as WFFPC may reasonably approve, which are applicable in the circumstances as of the date in question. The requirement that such principles
be applied on a consistent basis shall mean that the accounting principles observed in a current period are comparable in all material respects to those applied in a preceding period, or, in the event of a material change in any accounting principle
from that observed in any previous period (i) financial reports covering preceding periods during the term of this Agreement are restated to reflect such change and provide a consistent basis for comparison among periods and (ii) the financial
covenants set forth in Section 6.4 shall be adjusted as determined by WFFPC to reflect similar performance standards as those measured by the existing covenants using the previously observed accounting principles. 
  
 “Intangible Assets” means all assets of any person or entity
which would be classified in accordance with GAAP as intangible assets, including without limitation (a) all franchises, licenses, permits, patents, applications, copyrights, trademarks, trade names, goodwill, experimental or organization expenses
and other like intangibles, and (b) unamortized debt discount and expense and unamortized stock discount and expense. 
  
 “Intercreditor Agreement” means that certain Intercreditor Agreement substantially in the from of Exhibit G-2 to this Agreement,
to be executed and exchanged by WFFPC and such other creditors of Borrower as WFFPC shall require including, without limitation, SSB pursuant to Section 5.1(f) of this Agreement, as the same may be amended, modified, restated or extended from time
to time. 
  

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 “Interest-Only Accounts” means those Receivables on which collections are applied
entirely to interest and expense charges, with no portion thereof being required to reduce the principal balance on the loan prior to the stated maturity of such accounts. 
  
 “LIBOR Rate” means the 30-Day London Interbank Offered Rate for any day as found in the Wall Street
Journal, Interactive Edition, or any successor edition or publication. 
  
 “Lien” means any mortgage, deed of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement of any nature whatsoever, including without limitation any conditional sale or title retention
arrangement, and any assignment, deposit arrangement or lease intended as, or having the effect of, security. 
  
 “Loan” means the aggregate principal amount advanced by WFFPC to Borrower pursuant to Section 2.1 of this Agreement, together with
interest accrued thereon and fees and costs incurred in connection therewith. 
  
 “Loan Availability” means the amount available for Advances under this Agreement on any date as determined in accordance with the Availability Statement submitted to WFFPC on such date in accordance
with Section 3.3. 
  
 “Minimum Allowance for Loan
Loss” shall mean an amount, inclusive of a traditional allowance for loan loss and unearned discount, equal to the greater of (a) the “total estimated remaining loss dollars” as computed in Borrower’s quarterly “Lifetime
Remaining Loss Projections”; or (b) an amount pursuant to the recommendation of the independent certified public accountant preparing Borrower’s financial statements. Notwithstanding the foregoing, the traditional allowance for loan loss,
noted in the preceding paragraph, will be maintained in an amount sufficient to meet or exceed Office of Thrift Supervision loss reserve requirements. 
  
 “Note” means the promissory note of Borrower in favor of WFFPC in substantially the form of Exhibit E to this Agreement,
evidencing the obligation of Borrower to repay the Loan, and any and all amendments, renewals, replacements or substitutions therefor. 
  
 “Obligations” means each and every draft, liability and obligation of every type and description which Borrower may now or at any time
hereafter owe to WFFPC (whether such debt, liability or obligation now exists or is hereafter created or incurred, whether it arises in a transaction involving WFFPC alone or in a transaction involving other creditors of Borrower, and whether it is
direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or sole, joint, several or joint and several), and including specifically, but not limited to, all indebtedness of Borrower arising
under this Agreement or the Note, including, without limitation, all Loans. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto. 
  
 “Plan” means any employee benefit plan subject to the provisions of Title IV of ERISA which is maintained in whole or in part for
employees of Borrower or any affiliate of Borrower. 
  
 “Principal Balance”, when used in reference to a WFFPC Receivable, means the gross balance 

  

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owed with respect to the Receivable on the date of measurement minus any unearned finance charges included in that balance by Borrower and without
consideration of discounts and or reserves taken by Borrower with respect to the Receivable. 
  
 “Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible. 
  
 “Receivables” means all lien, title retention and security agreements, chattel mortgages, chattel paper,
bailment leases, installment sale agreements, instruments, consumer finance paper and/or promissory notes securing and evidencing time sale transactions acquired, by Borrower. 
  
 “Request for Advance” means the certificate in the form attached hereto as Exhibit A to be delivered
by Borrower to WFFPC as a condition of each Advance pursuant to Section 2.5 hereof. 
  
 “Restricted Payments” means payments by Borrower which constitute (a) distributions of any kind with respect to Borrower’s equity or any warrants, rights or options to purchase or otherwise
acquire any equity interests in the Borrower or (b) payments of principal or interest on Subordinated Debt. 
  
 “Schedule of Receivables and Assignment” means a schedule in the form of Exhibit F to this Agreement to be submitted by Borrower
to WFFPC pursuant to Section 2.1 and Section 3.3 hereof, describing the Receivables assigned and pledged to WFFPC, for the benefit of WFFPC, on the date hereof and thereafter for the period to which such schedule relates and confirming the
assignment and pledge of such Receivables. 
  
 “Senior
Debt” means all Debt of Borrower other than Subordinated Debt. 
  
 “Senior Debt to Capital Base Ratio” means the ratio of Senior Debt to Capital Base. 
  
 “Special Purpose Subsidiary” means a subsidiary of Borrower which is formed and operated for the purpose of purchasing Receivables from
Borrower on a cash, non-recourse basis. Borrower shall have no liability for the debts of any Special Purpose Subsidiary. 
  
 “SSB” means Southwest Securities Bank. 
  
 “Subordinated Debt” means any indebtedness of Borrower for borrowed money (including the Existing Long-Term Unsecured Debt) and which
shall contain provisions subordinating the payment of such indebtedness and the liens and security interests securing such indebtedness to Senior Debt, in form, substance and extent acceptable to WFFPC, in its sole discretion provided, however, that
Borrower’s indebtedness to SSB incurred in connection with SSB’s funding of Borrower’s purchase of Receivables shall not be deemed Subordinated Debt. 
  
 “Subordination Agreement” means, individually, and “Subordination Agreements” means,
collectively, the Subordination Agreements substantially in the from of Exhibit G-1 to this Agreement, to be executed and delivered to WFFPC by each holder of Subordinated Debt pursuant to Section 5.1(f) of this Agreement, as the same may be
amended, modified, restated or extended from time to time. 
  
 “Subsidiary” of any entity means any corporation of which such entity directly or indirectly 

  

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owns or controls at least a majority of the outstanding stock having general voting power. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract, or otherwise. 
  
 “Tangible Net Worth” means, at any date, all amounts which,
in conformity with GAAP, would be included as equity on a balance sheet excluding therefrom: (a) goodwill, including any amounts, however designated, that represents the excess of the purchase price paid for assets over the book value assigned
thereto by Borrower, (b) patents, trademarks, trade names, and copyrights, (c) loans and advances to any partner, stockholder, director, officer, or employee of the company or any Affiliate or Subsidiary of Borrower, (d) all other assets which are
properly classified as intangible assets in conformity with GAAP, and (e) the amount of any WFFPC Receivables to be charged off, that have not been charged off under Section 6.4(d). 
  
 “Termination Date” means the earlier of (a) June 7, 2008, as such date may be extended from time to time in
writing; or (b) the date on which the Commitment is terminated and the Loan becomes due and payable pursuant to Section 9.1. 
  
 “Total Liabilities” means all liabilities of Borrower, as determined in accordance with GAAP. 
  
 “WFFPC Receivables” means Receivables of Borrower which have
been assigned or pledged to WFFPC pursuant to the terms set forth in this Agreement. 
  
 “WFFPC” means Wells Fargo Financial Preferred Capital, Inc., an Iowa corporation, and its respective successors and assigns. 
  
 “WFFPC Debt” means all Debt of Borrower to WFFPC. 
  
 “WFFPC Debt to Capital Base Ratio” means the ratio of WFFPC
Debt to Capital Base. 
  
 “WFFPC Receivables
Account” means the bank account established by Borrower pursuant to Section 3.4 of this Agreement for the purpose of depositing proceeds of Collateral. 
  

Section 1.2 Rules of Construction. 
  
 (a) Accounting Term. Except as otherwise provided herein, financial and accounting terms used in the foregoing definitions or elsewhere in this
Agreement shall be defined in accordance with GAAP. 
  
 (b)
Uniform Commercial Code. Except as otherwise provided herein, terms used in the foregoing definitions or elsewhere in this Agreement that are defined in the Uniform Commercial Code, including without limitation, “Accounts”,
“Documents”, “Instruments”, “General Intangibles”, and “Chattel Paper” shall have the respective meanings described to such terms in the Uniform Commercial Code as in effect in the
State of Iowa from time to time. 
  

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 ARTICLE 2 
 THE REVOLVING CREDIT FACILITY 
  
 Section 2.1 The Loan. Until the Termination Date and subject to the terms and conditions of this Agreement, WFFPC shall, upon the prior application of Borrower, from time to time, make Advances to Borrower on
or after the date of this Agreement, which Borrower may repay and reborrow from time to time, in the maximum principal amount at any one time outstanding not to exceed the lesser of the amount of the Commitment or the Borrowing Base in effect as of
the date of determination, as follows: 
  
 (a) WFFPC shall
establish on its books an account in the name of Borrower (the “Borrower’s Loan Account”). A debit balance in Borrower’s Loan Account shall reflect the amount of Borrower’s indebtedness to WFFPC from time to time by reason
of Advances and other appropriate charges (including, without limitation, interest charges) hereunder. At least once each month, WFFPC shall provide to Borrower a statement of Borrower’s Loan Account which statement shall be considered correct
and accepted by Borrower and conclusively binding upon Borrower unless Borrower notifies WFFPC to the contrary within 30 days of WFFPC’s providing such statement to Borrower. 
  
 (b) Borrower shall prepare a completed Availability Statement as of each month end and forward such statement to WFFPC by
the 20th day of the following month. 
  
 (c) Each Advance made
hereunder shall, in accordance with GAAP, be entered as a debit to Borrower’s Loan Account, and shall be in a principal amount which, when aggregated with all other Advances then outstanding, shall not exceed the lesser of the then effective
Borrowing Base or Commitment. 
  
 (d) The Loan shall be due and
payable to WFFPC on the Termination Date. Upon the occurrence of an Event of Default, WFFPC shall have rights and remedies available to it under Article 9 of this Agreement. 
  
 Section 2.2 The Note. The indebtedness of Borrower to WFFPC hereunder shall be evidenced by a Note executed by
Borrower in favor of WFFPC, which shall be substantially in the form of Exhibit E of this Agreement, dated the same date as this Agreement. The principal amount of the Note will be $75,000,000; provided, however, that notwithstanding the face
amount of the Note, Borrower’s liability under the Note shall be limited at all times to its actual indebtedness (principal, interest and fees) then outstanding and owing to WFFPC hereunder. 
  
 Section 2.3 Method of Payment. Borrower shall make all payments of
principal and interest on the Note in lawful money of the United States of America and in funds immediately available by wire transfer, to WFFPC at its address which appears in the signature page of this Agreement or at such other address as WFFPC
otherwise directs. Whenever any payment is due on a day, which is not a Business Day, the date for payment shall be extended to the next succeeding Business Day and interest shall be paid for such extended time. 
  
 Section 2.4 Interest. 
  
 (a) In the absence of an Event of Default or Default hereunder and prior to
maturity, the outstanding balance of the Obligations will bear interest at an annual rate equal to the 

  

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Base Rate plus 2.25% through and including the calendar month ending June 30, 2005 and thereafter as adjusted to an annual rate equal to the Base Rate plus
the applicable margin as determined below (“Margin Rate”) then in effect. The Margin Rate shall be adjusted monthly, effective as of the first day of each month, and shall be based upon the written monthly financial statement for the
immediately preceding calendar month prepared by Borrower and submitted to WFFPC. The Margin Rate shall be determined according to the following formula (provided, no downward adjustment in the Margin Rate shall be permitted during the existence of
an Event of Default or Default): 
  
 (i) if Borrower’s
Senior Debt to Capital Base Ratio as of the end of the previous month is 5.0 to 1 or less, the Margin Rate is 2.25%; 
  
 (ii) if Borrower’s Senior Debt to Capital Base Ratio as of the end of the previous month is more than 5.0 to 1 but less than or equal to 6.0 to 1,
the Margin Rate is 2.35%; 
  
 (iii) if Borrower’s Senior
Debt to Capital Base Ratio as of the end of the previous month is greater than 6.0 to 1, the Margin Rate is 2.40%. 
  
 Interest shall be payable monthly in arrears on the first day of each month commencing on the first such date after the first Advance under the Loan and continuing until
the Commitment is terminated and Borrower’s indebtedness thereunder is paid in full. Interest as provided hereunder will be calculated on the basis of a 360 day year and the actual number of days elapsed. The rate of interest provided for
hereunder is subject to increase or decrease when and as the Base Rate increases or decreases in an amount corresponding to the change in the Base Rate, as well as when and as the Margin Rate increases or decreases in an amount corresponding to the
change in the Margin Rate. Any such change in interest rate hereunder shall take effect the first day of the month following a change in the Base Rate or Margin Rate, as the case may be. WFFPC shall determine each interest rate applicable to
Advances hereunder, and its determination thereof shall be conclusive and binding except in cases of manifest error or willful misconduct; provided, however, if Borrower timely objects to the statement of Borrower’s Loan Account in accordance
with Section 2.1(a), and the resolution of such objection is a restatement of such statement resulting in a change in the Margin Rate, then WFFPC shall (i) apply any resulting overpayment of interest to principal and (ii) adjust the interest rate
applicable to Advances accordingly. 
  
 (b) Notwithstanding the
foregoing, in the event that the amount of interest payable to WFFPC pursuant to Section 2.4(a) for any month is less than $10,000, Borrower shall pay to WFFPC a fee equal to the difference between the amount of interest payable and $10,000.

  
 (c) Notwithstanding the foregoing, upon the occurrence and
during the continuance of an Event of Default or Default hereunder, including after maturity and before and after judgment, Borrower hereby agrees to pay to WFFPC interest on the outstanding principal balance of the Loan and, to the extent permitted
by law, overdue interest with respect thereto, at the rate of 2.50% per annum above the rate described in subparagraph (a) above. 
  
 (d) The parties acknowledge that Borrower has pre-paid $100,000 in interest payable hereunder. 
  
 Section 2.5 Advances. 
  
 (a) Borrower shall notify WFFPC in writing not later than 10:00 a.m., Des
Moines, 

  

 10 

 
Iowa, time, on the date of each requested Advance under the Commitment, specifying the date, amount and purpose of the Advance. Such notice shall be in the
form of the Request for Advance attached as Exhibit A, shall be certified by the President or Treasurer (or such other authorized person as Borrower directs from time to time) of Borrower. Upon delivery of each such Request for Advance,
Borrower shall be automatically deemed affirmed and true and correct as of the date of the requested Advance: 
  
 (i) the aggregate amount of the requested Advance, which shall be in multiples of $5,000 but not less than the lesser of $5,000 or the unborrowed balance
of the Commitment; 
  
 (ii) confirmation of Borrower’s
compliance with Sections 2.1(c), 6.4 and 7.1 through 7.11 both immediately prior to and after making such Advance; and 
  
 (iii) the representations and warranties set forth in Article 4 are true and correct as of the date of the Advance; no Event of Default or Default has
occurred and is then continuing; and there has been no material adverse change in Borrower’s financial condition, operations or business or the Collateral since the date of the monthly and audited annual financial statements most recently
delivered by Borrower to WFFPC pursuant to this Agreement. 
  
 (b) Subject to the satisfaction of the conditions set forth in Section 2.5(a) and 5.2, and the other terms of this Agreement, WFFPC shall make the requested Advance, in its discretion, either (a) by wiring such amount to an account
designated by Borrower and in Borrower’s name, or (b) by payment by WFFPC directly to SSB for any amounts then owing to SSB by Borrower in connection with Receivables that SSB has released from its lien for designation as WFFPC Receivables, or
(c) in such other manner as shall be mutually agreed upon by Borrower and WFFPC, all not later than 5:00 p.m., Des Moines, Iowa, time on the day of the requested Advance. 
  
 (c) Each request for an Advance pursuant to this Section 2.5 shall be irrevocable and binding on Borrower. 
  
 Section 2.6 Prepayment. 
  
 (a) Optional Prepayments. Borrower may prepay the Loan from time to
time, in full or in part without premium or penalty, provided that (i) in the event Borrower repays the Loan and terminates this Agreement in full prior within one year from the Termination Date, Borrower shall pay a sum equal to 0.50% of the
Commitment as a prepayment penalty; (ii) in the event Borrower repays the Loan in full and terminates this Agreement within two years from the Termination Date but not within one year from the Termination Date, Borrower shall pay a sum equal to 1.0%
of the Commitment as a prepayment penalty; (iii) in the event Borrower repays the Loan in full and terminates this Agreement within three years from the Termination Date, but not within two years from the Termination Date, Borrower shall pay a sum
equal to 1.5% of the Commitment as a prepayment penalty; (iv) prepayments shall be in a minimum amount of $10,000 and $10,000 increments in excess thereof; and (v) partial prepayments prior to the Termination Date shall not reduce WFFPC’s
Commitment under this Agreement and may be reborrowed, subject to the terms and conditions hereof for borrowing, and partial prepayments will be applied first to accrued interest and fees and then to outstanding Advances. Notwithstanding the
foregoing, Borrower shall not be obligated for the payment of any such prepayment fee if (x) (1) Borrower requests that the 

  

 11 

 
Commitment be increased by a commercially reasonable amount from a credit perspective, (2) Borrower has available capital to support such growth, (3) no
Event of Default or Default has occurred under the Loan Agreement and (4) WFFPC does not agree to such increase or (y) the Loan is repaid out of normal cash flow or proceeds received as a result of an issuance of a securitization or commercial paper
conduit. 
  
 (b) Mandatory Prepayments. In the event that
amounts outstanding hereunder at any time exceed the Borrowing Base (whether established by an Availability Statement or otherwise) Borrower shall pay to WFFPC immediately and without demand or notice of any kind required, the amount by which
Borrower’s indebtedness hereunder exceeds the Borrowing Base then applicable, together with all accrued interest on the amount so paid and any fees and costs incurred in connection therewith. 
  
 ARTICLE 3 
 SECURITY 
  
 Section 3.1 Security Interest. To secure the payment and performance of the Obligations, Borrower hereby grants to WFFPC a continuing general Lien
on and a continuing security interest in all of the Collateral, wherever located, whether now owned or hereafter acquired, existing or created, together with all replacements and substitutions therefor, and the cash and non-cash proceeds thereof.
Borrower shall promptly deliver the original WFFPC Receivables part of the Collateral to the Custodian if such Receivables are not already in the Custodian’s possession and shall assign a code to such Receivables which identify them as
Collateral on Borrower’s system of accounting for its Receivables. 
  
 Section 3.2 Financing Statements. Borrower consents to WFFPC’s filing of financing statements with the appropriate office or offices in form sufficient to perfect WFFPC’s security interest in the Collateral which can be
perfected by filing a financing statement. 
  
 Section 3.3
Documents to be Delivered to WFFPC. Concurrently with the execution and delivery of this Agreement and, thereafter, by the 20th day of each month for the prior month and at any other time as WFFPC may require, Borrower shall deliver to WFFPC
an Availability Statement, a Schedule of Receivables and Assignment, an aging of Receivables and such other documentation as WFFPC may require. In addition, prior to any WFFPC Receivable being included within the Borrowing Base, Borrower shall
deliver the following at such time: (i) a written release of SSB’s liens in such pool of Receivables, which release shall include any other Collateral in which Borrower has or at any time acquires an interest in connection with the Receivables
being submitted, duly executed by SSB; and (ii) a UCC-3 partial release in recordable form with respect to SSB’s liens in the pool of Receivables being submitted and their proceeds. All WFFPC Receivables of Borrower shall be stamped and
assigned to WFFPC as follows to evidence the assignment to WFFPC: 
  
 The within instrument or agreement is pledged as collateral to Wells Fargo Financial Preferred Capital, Inc. 
  
 Borrower shall: (a) deliver to the custodian under the Custodian Agreement, as the bailee and designee of WFFPC, or, upon and anytime after an Event of
Default, to WFFPC, the WFFPC Receivables and all Documents, General Intangibles and Instruments relating to WFFPC Receivables; (b) execute and deliver to WFFPC a depository account control agreement with respect 

  

 12 

 
to the WFFPC Receivables Account, in form and substance satisfactory to WFFPC (the “Deposit Account Control Agreement”); and (c) execute and
deliver to WFFPC, for the benefit of WFFPC, such assignments, mortgages, financing statements, amendments thereto and continuation statements thereof, in form satisfactory to WFFPC, and such additional agreements, documents or instruments as WFFPC
may, from time to time, require to evidence, perfect and continue to perfect WFFPC’s liens and security interests granted hereunder. For purposes of this Article 3, the parties hereto agree that, until WFFPC shall otherwise designate, the
custodian(s) under the Custodian Agreement as from time to time in effect, shall be deemed to be the designee of WFFPC and WFFPC shall have the right, at any time and from time to time, to direct or redirect the delivery of all or any of the
foregoing items to any other designee. WFFPC may in its sole discretion record or file any such document, instrument or agreement, including, without limitation, this Agreement, as it may from time to time deem desirable. 
  
 Section 3.4 Collections. Notwithstanding the assignment (but not in
any way to be deemed or construed to impair or affect the security interest granted hereunder) of the WFFPC Receivables by Borrower to WFFPC, until notice to the contrary is provided to Borrower by WFFPC or until the occurrence of a Default or an
Event of Default, Borrower may service, manage, enforce and receive Collections on Collateral for the account of WFFPC. Borrower shall have no power to make any allowance or credit to any obligor which is contrary to Borrower’s loan policies
and procedures on the date of this Agreement or which is contrary to the customary policies and procedures of a prudent bank or finance company without WFFPC’s prior written consent. 
  
 Borrower shall establish a depository account with a financial institution acceptable to WFFPC, designated as the WFFPC
Receivables Account, into which Borrower shall deposit all proceeds of the Collateral (including WFFPC Receivables) unless and until WFFPC notifies Borrower pursuant to the following paragraph that proceeds of Collateral (including WFFPC
Receivables) are to be deposited to an account over which WFFPC has exclusive control. No other funds shall be commingled with the proceeds of Collateral (including WFFPC Receivables) deposited to such account. Borrower may make withdrawals from
such account, without the co-signature of WFFPC, in the ordinary course of its business. If SSB is the institution with which such account is established, Borrower shall provide WFFPC with a written waiver by SSB of any security interest or right of
setoff it might otherwise have with respect to such account. Upon notification from WFFPC pursuant to the following paragraph that proceeds of Collateral (including WFFPC Receivables) are to be deposited to an account over which WFFPC has exclusive
control, Borrower shall transfer the balance of the WFFPC Receivables Account to the account controlled by WFFPC. 
  
 Upon notice by WFFPC following an Event of Default, WFFPC may require Borrower to endorse and deposit all Collections from Collateral (including WFFPC
Receivables) within one Business Day of receipt thereof and in the original form received (except for the endorsement of Borrower, if necessary, to enable the collection of instruments for the payment of money, which endorsements Borrower hereby
agrees to make) in such account maintained with such depository as WFFPC may from time to time specify, such account to limit withdrawals by Borrower therefrom only to the order of WFFPC, but to permit withdrawals by WFFPC therefrom without the
co-signature of Borrower. Following an Event of Default, WFFPC may also require Borrower to enter into an appropriate lockbox agreement with WFFPC or another financial institution acceptable to WFFPC, in form and content acceptable to WFFPC, with
respect to opening and maintaining a lock box arrangement for the Collections from Collateral (including WFFPC Receivables). Such lock box agreements shall be irrevocable so long as Borrower is indebted to WFFPC under this Agreement. 
  

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 Section 3.5 Additional Rights of WFFPC; Power of Attorney. 
  
 (a) In addition to all the rights granted to WFFPC hereunder, WFFPC shall
have the right, at any time following the occurrence and during the continuance of an Event of Default, to notify the obligors and account debtors of all WFFPC Receivables to make payment thereon directly to WFFPC, and to take control of the cash
and non-cash proceeds of such Collateral; provided, however, that once such notification is given to such obligors, it shall not be vitiated by a subsequent cure of such default without the prior written consent of WFFPC. When Collections received
by WFFPC have been converted into cash form, WFFPC shall forthwith apply the same first in discharge of all expenses, fees, costs and charges including attorneys’ fees and costs of Collections; second to pay all interest accrued under the Note
and this Agreement; third to pay principal due under the Note and this Agreement; and then to pay any other sums due to WFFPC under the terms of this Agreement. 
  

(b) Upon the occurrence of an Event of Default, Borrower irrevocably appoints WFFPC its true and lawful attorney, with power of substitution, to act in
the name of Borrower or in the name of WFFPC or otherwise, for the use and benefit of WFFPC, but at the cost and expense of Borrower, without notice to Borrower: to demand, collect, receipt for and give renewals, extensions, discharges and releases
of any Collateral (including WFFPC Receivables); to institute and to prosecute legal and equitable proceedings to realize upon any Collateral (including WFFPC Receivables); to settle, compromise, or adjust claims; to take possession and control in
any manner and in any place of any cash or non-cash items of payment or proceeds thereof; to endorse the name of Borrower upon any notes, checks, drafts, money orders, or other evidences of payment of Collateral (including WFFPC Receivables); to
sign Borrower’s name on any instruments or documents relating to any of the Collateral or on drafts against account debtors; to do all other acts and things necessary, in WFFPC’s sole judgment, to effect collection of the Collateral
(including WFFPC Receivables) or protect its security interest in the Collateral (including WFFPC Receivables); and generally to sell in whole or in part for cash, credit or property to others or to itself at any public or private sale, assign, make
any agreement with respect to or otherwise deal with the Collateral (including WFFPC Receivables) as fully and completely as though WFFPC were the absolute owner thereof for all purposes, except to the extent limited by any applicable laws and
subject to any requirement of notice to Borrower or other persons under applicable laws. 
  
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES 
  
 Borrower represents and warrants and shall continue to represent and warrant
to WFFPC until Borrower’s obligations to WFFPC hereunder have been satisfied in full and the Commitment has expired or otherwise has been terminated as follows: 
  
 Section 4.1 Representations and Warranties as to WFFPC Receivables. 
  
 (a) As to the WFFPC Receivables generally: 
  
 (i) To the best of Borrower’s knowledge, the original lender or seller
had full power and authority to make extensions of credit evidenced by the WFFPC Receivables and all such WFFPC Receivables and all Books and Records related thereto are genuine, based on enforceable contracts and are in all respects what they
purport to be; 
  

 14 

 (ii) All WFFPC Receivables have been, to the best of Borrower’s knowledge, duly authorized,
executed, delivered by the parties whose names appear thereon and are, to the best of Borrower’s knowledge, valid and enforceable in accordance with their terms; constitute Chattel Paper; any chattels described in any WFFPC Receivable are and
will be accurately described and are and will be in the possession of the parties granting the security interest therein; and Borrower is and will be in possession of all titles with respect to any collateral securing a WFFPC Receivable and will
have the authority to have its lien noted on the corresponding certificate of title; 
  
 (iii) The form and content of all WFFPC Receivables and the security related thereto and the transactions from which they arose to the best of Borrower’s knowledge, comply in all material respects (and in any
event in all respects necessary to maintain and ensure the validity and enforceability of the WFFPC Receivables) with any and all applicable laws, rules and regulations including, without limitation, applicable Consumer Finance Laws; 
  
 (iv) The original amount and unpaid balance of each WFFPC Receivable on
Borrower’s Books and Records and on any statement or schedule delivered to WFFPC, including without limitation the Schedule of Receivables, is and will be the true and correct amount actually owing to Borrower as of the date each WFFPC
Receivable is pledged to WFFPC, to the best of Borrower’s knowledge, is not subject to any claim of reduction, counterclaim, set-off, recoupment or any other claim, allowance or adjustment; and Borrower does not have any knowledge of any fact
which would impair the validity or collectibility of any WFFPC Receivables; 
  
 (v) All security agreements, title retention instruments, and other documents and instruments which are security for WFFPC Receivables contain a correct and sufficient description of the personal property covered
thereby, and, subject to the rights of WFFPC hereunder and the interests of Borrower as holder of such security agreements, title retention instruments or other documents or instruments, are or create first and prior perfected security interests and
Liens; 
  
 (vi) At time of Borrower’s acquisition of the
WFFPC Receivables, Borrower made an adequate review of the obligor’s payment history and collection notes of each WFFPC Receivable and determined that his or her ability to perform was satisfactory and met the standards generally observed by
prudent finance companies acquiring portfolios on the secondary market and was in conformity in all material respects with Borrower’s policies and standards; and 
  
 (vii) Borrower has good and valid indefeasible title to the WFFPC Receivables, free and clear of all prior assignments,
claims, liens, encumbrances and security interests, and has the right to pledge and grant WFFPC a first priority security interest in the WFFPC Receivables, in the manner provided in this Agreement. 
  
 Section 4.2 Organization. Borrower is a Texas limited partnership duly
organized and validly existing under the laws of that state and has the power and authority to engage in the business it conducts and is qualified and in good standing, or comparable status, in those states wherein the nature of business or property
owned by it requires such qualification, is not required to be qualified in any other state; or if not so qualified, no adverse effect would result therefrom. The organizational number assigned to Borrower by the state of its organization is
15200610. 
  
 Section 4.3 Perfection of Security Interest.
Upon filing of financing statements in all places necessary to perfect the security interests granted in Article 3 of this Agreement, and stamping the legend required under Section 3.3 of this Agreement on such Collateral, WFFPC will have a first
perfected security interest in the Collateral. 
  

 15 

 Section 4.4 No Violations. The making and performance of the Credit Documents do not and will not
violate any provisions of any law, rule, regulation, judgment, order, writ, decree, determination or award or breach any provisions of the charter, bylaws or other organizational documents of Borrower, or constitute a default or result in the
creation or imposition of any security interest in, or lien or encumbrance upon, any assets of Borrower (immediately or with the passage of time or with the giving of notice and passage of time, or both) under any other contract, agreement,
indenture or instrument to which Borrower is a party or by which Borrower or its property is bound which would result in a material adverse effect on Borrower or the Collateral, and no failure of it to comply with any suit, law, rule, regulation,
judgment, order, writ, decree, determination or award would have an adverse effect. 
  
 Section 4.5 Power and Authority. 
  
 (a) Borrower has full power and authority under the law of the state of its organization and under its agreement of limited partnership and other organizational documents to enter into, execute and deliver and perform
the Credit Documents; to borrow monies hereunder, to incur the obligations herein provided for and to pledge and grant to WFFPC a security interest in the Collateral; and 
  
 (b) All actions (partnership or otherwise) necessary or appropriate for Borrower’s execution, delivery and performance
of the Credit Documents have been taken. 
  
 Section 4.6
Validity of Agreements. Each of the Credit Documents is, or when delivered to WFFPC will be, duly executed and constitute valid and legally binding obligations of Borrower enforceable against Borrower in accordance with their respective
terms. 
  
 Section 4.7 Litigation. Except as described on
Exhibit H, there is no order, notice, claim, action, suit, litigation, proceeding or investigation pending or, to the best of Borrower’s knowledge, threatened against or affecting Borrower, whether or not fully covered by insurance.

  
 Section 4.8 Compliance. Borrower is in compliance in
all material respects with all applicable laws and regulations, federal, state and local, material to the conduct of its business and operations; Borrower possesses all material permits, licenses, certificates of compliance and approval and grants
of authority necessary or required in the conduct of its business and the same are valid, binding, enforceable and subsisting without any defaults thereunder or enforceable adverse limitations thereon, and are not subject to any proceedings or
claims opposing the issuance, development or use thereof or contesting the validity thereof; and no approvals, waivers or consents, governmental (federal, state or local) or non-governmental, under the terms of contracts or otherwise, are required
by reason of or in connection with Borrower’s execution and performance of the Credit Documents. 
  
 Section 4.9 Accuracy of Information; Full Disclosure. 
  
 (a) All financial statements, including any related schedules and notes appended thereto, delivered and to be delivered to WFFPC pursuant to this
Agreement have been or will be prepared in accordance with GAAP and do and will fairly present the financial condition of Borrower and its consolidated Subsidiaries, if any, on the dates thereof and results of operations for the periods covered
thereby and discloses all liabilities (including contingent liabilities) of any kind of Borrower. 
  

 16 

 (b) Since the date of the most recent financial statements furnished to WFFPC, there has not been any
material adverse change in the financial condition, business or operations of Borrower or the Collateral. 
  
 (c) All financial statements and other statements, documents and information furnished by Borrower to WFFPC in connection with this Agreement and the Note
and the transactions contemplated hereunder do not and will not contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements contained therein not misleading. Borrower has disclosed to
WFFPC in writing any and all facts which materially and adversely affect the business, properties, operations or condition, financial or otherwise, of Borrower, or Borrower’s ability to perform its obligations under this Agreement and the Note.

  
 Section 4.10 Taxes. Borrower has filed all tax returns
which are required to be filed and has paid when due all taxes, license and other fees with respect to the Collateral and the business of Borrower except taxes contested in good faith for which adequate reserves have been established by Borrower on
its Books and Records. 
  
 Section 4.11 Indebtedness.
Borrower has no presently outstanding indebtedness or obligations including contingent obligations and obligations under leases of property from others, except the indebtedness and obligations described in Exhibit H of this Agreement and in
Borrower’s financial statements which have been furnished to WFFPC from time to time pursuant to Section 6.2 of this Agreement. 
  
 Section 4.12 Investments. At the time of this Agreement, Borrower has no direct or indirect Subsidiaries or Affiliates, or investments in or loans
to any other individuals or business entities, except as described in Exhibit H of this Agreement. 
  
 Section 4.13 Business Location. Borrower’s address set forth on the signature page of this Agreement is the location of Borrower’s
principal place of business and such address, together with the addresses set forth on Exhibit I of this Agreement, is the only location where Borrower keeps its records concerning the Collateral. The location of all other places of business
of Borrower and the names in which Borrower conducts business at each such location are set forth in Exhibit I to this Agreement. Borrower owns no real property. 
  
 Section 4.14 Partnership Interests. The partnership interests of Borrower are owned as described on Exhibit H
to this Agreement. 
  
 Section 4.15 ERISA. Borrower and any
Subsidiary are in compliance in all material respects with all applicable provisions of ERISA and the regulations promulgated thereunder if such Persons are subject to such provisions and regulations. To the best of Borrower’s knowledge, no
reportable event, as such term is defined in Title IV of ERISA (hereinafter called a “Reportable Event’), has occurred with respect to, nor has there been terminated, any Plan, if any, maintained for employees of Borrower or any
Subsidiary. 
  

 17 

 ARTICLE 5 
 CONDITIONS TO LOAN 
  
 Section 5.1 Documents to be Delivered to WFFPC Prior to First Advance. Prior to the first Advance, Borrower shall deliver or caused to be delivered to WFFPC: 
  
 (a) Credit Documents. This Agreement, the Note and all other Credit Documents duly and properly executed by the
parties thereto; 
  
 (b) Organizational Documents. Such
documents and certificates as WFFPC may request relating to the organization, existence and good standing of Borrower, the authorization by Borrower’s board of directions of the transactions contemplated hereby and any related matters, in form
and substance satisfactory to WFFPC; 
  
 (c) Opinion of
Counsel. A written opinion of Borrower’s counsel addressed to WFFPC in form and substance satisfactory to WFFPC in its sole discretion; 
  
 (d) Officer’s Certificate. A certificate, dated the date of this Agreement, signed by the President of Borrower, in form and substance
satisfactory to WFFPC in its sole discretion; 
  
 (e)
Subordination and Intercreditor Documents. The Subordination Agreement(s) duly executed by each holder of Subordinated Debt, together with copies of the documents, instruments and writings evidencing such Subordinated Debt, and the
Intercreditor Agreements duly executed by SSB, together with copies of the documents, instruments and writings evidencing Borrower’s indebtedness to SSB and, if deemed necessary by WFFPC, copies of amendments to such documents, instruments and
writings permitting Borrower to enter into the transactions contemplated by this Agreement with WFFPC without causing a violation of such documents, instruments and writings; 
  
 (f) Availability Statement. A completed Availability Statement required under Section 2.1(b) of this Agreement;

  
 (g) Request for Advance. A completed Request for
Advance required under Section 2.7(a) of this Agreement; 
  
 (h)
Insurance. Evidence of insurance issued by a reputable carrier with respect to Borrower’s fire, casualty, liability, and other insurance covering its Property, and any key owner/operator insurance; 
  
 (i) Searches. Uniform Commercial Code, tax and judgment searches
against Borrower in those offices and jurisdictions as WFFPC shall reasonably request which shall show that no financing statement, liens, or assignments or other filings have been filed or remain in effect against Borrower or any Collateral except
for those Liens, financing statements, assignments or other filings with respect to which the secured party or existing lender (i) has delivered to WFFPC Uniform Commercial Code termination statements or other documentation evidencing the
termination of its Liens and security interests in Collateral, (ii) has agreed in writing to release or terminate its Lien and security interest in Collateral upon receipt of proceeds of the Advances, (iii) has delivered a Subordination Agreement to
WFFPC with respect to its Lien and security interest in the Collateral, or (iv) has exchanged (in the case of SSB) an Intercreditor Agreement with WFFPC, all in a form and substance satisfactory to WFFPC in its sole discretion; 
  

 18 

 (j) SSB’s and FSBF, LLC’s Board Minutes. A copy of the minutes of a meeting of the board
of directors of (i) SSB, certified by the corporate secretary of SSB and in form and substance satisfactory to WFFPC, authorizing SSB’s execution of the Intercreditor Agreement and (ii) FSBF, LLC authorizing Borrower’s execution of this
Agreement and the other Credit Documents; 
  
 (k) Other
Documents. Such additional documents as WFFPC reasonably may request. 
  
 Section 5.2 Conditions to all Advances. The obligation of WFFPC to make each subsequent Advance hereunder pursuant to Section 2.1 is conditioned upon (a) Borrower’s satisfaction of each of the conditions
specified in Sections 2.1, 3.2, 3.3, 5.1(f) and 5.1(g), (b) the continuing accuracy of the representations and warranties made by Borrower under this Agreement, (c) the absence, after giving effect to such Advance and the receipt of the proceeds
thereof and the retirement of any indebtedness then being retired out of the proceeds of such Advance, of any Default or Event of Default; (d) WFFPC’s receipt of a collateral assignment with respect to all Collateral and (e) WFFPC’s
receipt of a payoff letter (in form and substance satisfactory to WFFPC) with respect to any Receivables to be pledged and assigned to WFFPC in connection with such Advance. 
  
 ARTICLE 6 
 BORROWER’S AFFIRMATIVE COVENANTS 
  
 In addition to the covenants contained in Article 3 and 4 of this Agreement relating to the Collateral, until all Obligations have been satisfied in full and the Commitment has expired or otherwise has been terminated, Borrower covenants
and agrees as follows: 
  
 Section 6.1 Borrower’s Place
of Business and Books and Records. Borrower will promptly advise WFFPC in writing of (a) the establishment of any new places of business by Borrower and of the discontinuance of any existing places of business of Borrower; and (b) the creation
of any new Subsidiaries or affiliated entities. 
  
 Section 6.2
Reporting Requirements. Borrower will deliver to WFFPC: 
  
 (a) within 20 days after the end of each month, company prepared financial statements of Borrower’s business for such previous month, consisting of a balance sheet, income statement and consolidating schedules as of the end of such
month, all in reasonable detail, prepared in accordance with GAAP consistently applied, subject to year-end adjustments; 
  
 (b) within 120 days after the close of each fiscal year, commencing with the fiscal year ending June 30, 2005, consolidated financial statements of
Borrower and its consolidated Subsidiaries for the fiscal year then ended consisting of a balance sheet, income statement and statement of cash flow of Borrower and its consolidated Subsidiaries as of the end of such fiscal year, all in reasonable
detail, including all supporting schedules and footnotes, prepared in accordance with GAAP consistently applied, and shall be certified without qualification by an independent certified public accountant selected by Borrower and acceptable to WFFPC
and accompanied by the unqualified opinion of such accountant; and cause WFFPC to be furnished at the time of completion thereof, a copy of any management letter for Borrower and its consolidated Subsidiaries prepared by such certified public
accounting firm. 
  

 19 

 (c) the documents required to be furnished pursuant to Section 3.3 of this Agreement; 
  
 (d) within 20 days after the end of each month, for the month then ending,
reports in form and substance satisfactory to WFFPC, as required pursuant to Section 3.3, setting forth an aging of Receivables, Schedule of Receivables and Assignment, Static Pool Report and an Availability Statement; 
  
 (e) within 20 days after the end of each calendar quarter, Borrower’s
lifetime remaining loss projections as of the quarter then-ended, in form and substance satisfactory to WFFPC; 
  
 (f) upon request by WFFPC from time to time, copies of Borrower’s income tax returns, including any schedules attached thereto, filed with the
Internal Revenue Service; 
  
 (g) within 20 days after the end of
each month, as of the last day of the month then ending, books and records consisting of data tape information in a format acceptable to WFFPC for Borrower’s Receivables portfolio; 
  
 (h) upon their receipt by Borrower, all internal audit and regulatory reports prepared by or with respect to Borrower, to
the extent Borrower is permitted to share such reports with WFFPC by the regulatory authorities with jurisdiction over Borrower and/or SSB; 
  
 (i) within 120 days after the close of each fiscal year, commencing with the fiscal year ending June 30, 2005, consolidated financial statements of SSB
for the fiscal year then ended consisting of a balance sheet, income statement and statement of cash flow as of the end of such fiscal year, all in reasonable detail, including all supporting schedules and footnotes, prepared in accordance with GAAP
consistently applied, and shall be certified without qualification by an independent certified public accountant selected by SSB and acceptable to WFFPC and accompanied by the unqualified opinion of such accountant; and cause WFFPC to be furnished
at the time of completion thereof, a copy of any management letter for SSB prepared by such certified public accounting firm. 
  
 (j) Within 120 days after the date of each fiscal year, an annual certificate signed by an executive officer of Borrower in the form of Exhibit J
attached hereto. 
  
 Section 6.3 Borrower’s Books and
Records. Borrower will keep accurate and complete Books and Records concerning the Collateral and all transactions with respect thereto consistent with sound business practices and will comply with WFFPC’s reasonable requirements, from time
to time in effect, including those concerning the submission of reports on all items of Collateral including those which are deemed to be delinquent. The form of delinquency reports, the frequency with which such reports shall be submitted to WFFPC
(which in any case shall be no less frequently than monthly) and the standards for determining which Collateral transactions are deemed delinquent for this purpose, shall at all times be satisfactory to WFFPC. WFFPC shall have the right at any time
and from time to time during regular business hours, upon WFFPC’s giving of 24 hours’ notice to Borrower, to inspect, audit, and copy the Books and Records of Borrower and inspect and audit any Collateral. Prior to an Event of Default,
WFFPC may not conduct more than four (4) audits for any twelve (12) month period. After an Event of Default occurs, neither such frequency limitation nor prior notice requirement shall apply. 
  
 Section 6.4 Financial Covenants. At all times Borrower shall maintain
the following 

  

 20 

 
financial covenants (based on the consolidated financial statements of FSB Financial, Ltd. and all its subsidiaries, provided that the financial statements
of Special Purpose Subsidiaries shall be ignored for purposes of determining Borrower’s compliance with these covenants): 
  
 (a) EBITDA Ratio. An EBITDA Ratio of not less than 1.50 to 1.00 as of the end of each calendar quarter. 
  
 (b) WFFPC Debt to Capital Base Ratio. A WFFPC Debt to Capital Base
Ratio of not more than 4.50 to 1.0 as of the end of any calendar month. 
  
 (c) Senior Debt to Capital Base Ratio. A Senior Debt to Capital Base Ratio of not more than 7.00 to 1.0 as of the end of any calendar month. In addition to the foregoing, the ratio obtained by dividing (a) average Senior Debt for the
most recent twelve (12) months by (b) average Capital Base for the most recent twelve (12) months, shall not be more than 6.5 to 1.0 as of the end of any calendar month. For purposes of the foregoing calculation during the first twelve (12) months
after the effective date of this Agreement, the entire amount of Existing Long-Term Unsecured Debt shall be excluded from the average Senior Debt and the pro rata portion of Existing Long-Term Unsecured Debt outstanding shall be included, without
duplication, in the average Capital Base for such period. 
  
 (d)
Charge-off Policy. WFFPC Receivables must be Charged-off in the month they become 120 days or more delinquent on a contractual aging basis. 
  
 (e) Minimum Capital Base. A Capital Base of at least $10,000,000 at all times. 
  
 (f) Collateral Performance Indicator. A Collateral Performance Indicator of less than 11% at all times. 

 
 Failure to comply with Section 6.4(d) shall not constitute an Event of Default.

  
 Section 6.5 Compliance With Applicable Law. 

 
 (a) All Receivables shall comply in all material respects with all
applicable federal, state and local laws, rules, regulations, proclamations, statutes, orders and interpretations (including all Consumer Finance Laws) at the time of origination by the original lender and modification, if any, by Borrower.

  
 (b) Borrower shall comply in all respects with all local,
state and federal laws and regulations, and the provisions and requirements of all permits, certificates of compliance and approval issued by regulatory authorities, if any, and other like grants of authority held by Borrower; and notify WFFPC
immediately (and in detail) of any actual or alleged failure to comply with or perform, breach, violation or default under any such laws or regulations or under the terms of any of such licenses, grants of authority, or of the occurrence or
existence of any facts or circumstances which with the passage of time, the giving of notice or otherwise could create such a breach, violation or default or could occasion the termination of any of such grants of authority. 
  
 (c) Should Borrower acquire any real property, Borrower agrees to notify
WFFPC of any actual environmental liability that exists with respect to such property and of the assertion or claim of any such liability by any party. 
  

 21 

 The parties expressly acknowledge and agree that Borrower’s failure to comply with Section 6.5(a) shall not
constitute and Event of Default hereunder unless such failure relates to WFFPC Receivables having a value of greater than $500,000. 
  
 Section 6.6 Notice of Default. Borrower will promptly notify WFFPC of the occurrence of any Default or Event of Default hereunder or under the Note
or of any fact, condition or event which, with the giving of notice, passage of time, or both, would become a Default or an Event of Default. Borrower also will promptly notify WFFPC of the occurrence of any default or event of default under the
terms of its agreement with SSB, or of any fact, condition or event which, with the giving of notice, passage of time, or both, would become a default or an event of default under Borrower’s agreement with SSB. For purposes of any Default or
Event of Default due to a breach of the representations and warranties of Borrower relating to WFFPC Receivables in Section 4.1(a), notice shall be deemed given by Borrower to WFFPC by exclusion of any such WFFPC Receivable in the delivery of the
next required Availability Statement. 
  
 Section 6.7
Partnership Existence, Properties. Borrower will (a) do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights and franchises; (b) maintain, preserve and protect all licenses and trade
names and preserve all the remainder of its property used or useful in the conduct of its business; and (c) maintain in effect insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as
shall be consistent with prudent business practices in the industry and furnish to WFFPC from time to time, upon their request therefor, evidence of same. 
  
 Section 6.8 Payment of Indebtedness; Taxes. Borrower will (a) pay all of its indebtedness and obligations promptly and in accordance with normal
terms; and (b) pay and discharge or cause to be paid and discharged promptly all taxes, assessments, and governmental charges or levies imposed upon it or upon its income and profits, or upon any of its property, real, personal or mixed, or upon any
part thereof, before the same shall become in default, as well as all lawful claims for labor, materials and supplies or otherwise which, if unpaid, might become a lien or charge upon such properties or any part thereof; provided, however, that
Borrower shall not be required to pay and discharge or to cause to be paid and discharged any such indebtedness, tax, assessment, charge, levy or claim so long as the validity thereof shall be contested in good faith by appropriate proceedings and
Borrower shall have set aside on its books adequate reserves (as may be required in accordance with GAAP) with respect to any such indebtedness, tax, assessment, charge, levy or claim, so contested. 
  
 Section 6.9 Notice Regarding Any Plan. If a Plan is maintained in
whole or in part for the employees of Borrower or any Subsidiary, Borrower shall furnish to WFFPC: 
  
 (a) as soon as possible, and in any event within 20 days after any senior officer of Borrower knows or has reason to know that any Reportable Event has
occurred with respect to any Plan maintained in whole or in part for the employees of Borrower or any Subsidiary, a statement of the President or Treasurer of Borrower setting forth details as to such Reportable Event and the action which is
proposed to be taken with respect thereto, together with a copy of the notice of such Reportable Event given to the Pension Benefit Guaranty Corporation; 
  
 (b) promptly after receipt thereof, a copy of any notice which Borrower may receive from the Pension Benefit Guaranty Corporation relating to the
intention of Borrower to terminate any Plan maintained in whole or in part for the benefit of employees of Borrower or any Subsidiary or to appoint a trustee to administer any such Plan; 
  

 22 

 (c) promptly after receipt thereof, a copy of any notices received by Borrower or any Subsidiary from any
Multiemployer Plan (as defined in Section 3(37) of ERISA) relating to any contribution, delinquency or withdrawal liability assessment; and 
  
 (d) promptly after receipt thereof, a copy of any notice received by Borrower or any Subsidiary from any governmental agency concerning any audit,
assessment, claim, investigation or initiation of any action with regard to the any such Plan. 
  
 Section 6.10 Other Information. From time to time upon request of WFFPC, Borrower will furnish to WFFPC such additional information and reports regarding the Collateral and the operations, businesses, affairs,
prospects and financial condition of Borrower and its Subsidiaries as WFFPC may reasonably request. 
  
 Section 6.11 Litigation. Borrower will promptly notify WFFPC of any litigation or action instituted or, to Borrower’s knowledge, threatened
against Borrower or any of its Subsidiaries and of the entry of any judgment or lien against any property of Borrower in an amount of $250,000 or more as to any separate action, litigation, judgment or lien instituted, threatened or entered or in an
aggregate amount of $1,000,000 or more as to all actions, litigation, judgment, or liens instituted, threatened or entered. 
  
 Section 6.12 Business Location, Legal Name and State of Organization. Borrower shall notify WFFPC: (a) at least 30 days prior to: (i) any proposed
change in its principal place of business, its legal name or its state of organization; (ii) any additional places of business of Borrower or any Subsidiaries; and (iii) the names in which Borrower or any Subsidiary conducts business at each such
location; and (b) at least one Business Day prior to any proposed change in or additional custodians under any Custodian Agreement (which change in or additional custodian shall be acceptable to WFFPC in its sole discretion). Upon request of WFFPC,
Borrower will execute and deliver such additional financing statements, amendments thereto, Custodian Agreement(s) or amendments thereto and such other additional documents, instruments and writings, and take such other action as WFFPC shall request
to obtain, maintain or continue its perfected and first priority Lien on and security interest in the Collateral (including the WFFPC Receivables); provided, prior to the occurrence of an Event of Default, Lender shall not require that Borrower
change the notation of the secured party on certificates of titles to the motor vehicles securing the WFFPC Receivables. 
  
 Section 6.13 Operations. Borrower shall maintain satisfactory buying guidelines and operating standards, including, with respect to each obligor of
each WFFPC Receivable, an adequate review of the obligor’s payment history and collection notes and a determination that his or her ability to perform is satisfactory and meets the standards generally observed by prudent finance companies
acquiring portfolios on the secondary market and is in conformity in all material respects with Borrower’s policies and standards 
  
 Section 6.14 Further Assurances. Borrower shall from time to time execute and deliver to WFFPC such other documents and shall take such other
action as may be reasonably requested by WFFPC in order to implement or effectuate the provisions of, or more fully perfect the rights granted or intended to be granted by Borrower to WFFPC pursuant to the terms of this Agreement, the Note or any
other Credit Documents. 
  

 23 

 Section 6.15 Sale of WFFPC Receivables. Borrower shall provide WFFPC with five (5) days prior
written notice of the sale of any Collateral (including the WFFPC Receivables) and shall have the proceeds of any such sales wired directly to WFFPC. 
  
 ARTICLE 7 
 NEGATIVE
COVENANTS 
  
 Borrower covenants and agrees with WFFPC
that until all Obligations have been satisfied in full and the Commitment has expired or otherwise has been terminated, Borrower will not do any of the following without the prior written consent of WFFPC: 
  
 Section 7.1 Payments to and Transactions with Affiliates. (a) Make
any loan, advance, extension of credit or payment to any Affiliate, officer, employee, member, manager, partner or director of Borrower or any Affiliate, which in the aggregate exceed $10,000 or (b) enter into any other transaction, including,
without limitation, the purchase, sale, lease or exchange of property, or the rendering or any service, to or with any Affiliate or any partner, officer, or employee of Borrower or any Affiliate, except for other transactions with or services
rendered to any Affiliate of Borrower in the ordinary course of business and pursuant to the reasonable requirements of the business of such Affiliate and upon terms found by the board of directors of Borrower to be fair and reasonable and no less
favorable to Borrower than would obtain in a comparable arms’ length transaction with a person or entity not affiliated with or employed by Borrower (including, without limitation, the transactions contemplated by Borrower’s agreement with
SSB pursuant to which SSB provides funding for Borrower’s acquisition of Receivables other than the Collateral); provided, however, that Borrower may in any event pay reasonable compensation to any such employee or officer in the ordinary
course of Borrower’s business consistent and commensurate with Borrower’s past practices, and provided further that Borrower may obtain and repay short term loans from SSB, SWS Group or Southwest Securities Incorporated for so long as no
Event of Default exists hereunder or is caused by any such loans or repayments. 
  
 Section 7.2 Restricted Payments. Make any Restricted Payment, except that Borrower may (a) make distributions to its partners for taxes and (b) make payments of principal of and interest on Subordinated Debt
not otherwise prohibited under the subordination provisions applicable to such Subordinated Debt, provided, in each case, immediately prior to and after giving effect to any distribution or payment no Default or Event of Default shall exist.

  
 Section 7.3 Guaranties. Guarantee or assume or agree to
become liable in any way, either directly or indirectly, for any additional indebtedness or liability of others except to endorse checks or drafts in the ordinary course of business. 
  
 Section 7.4 Nature of Business. Engage in any business other than the business in which Borrower currently is engaged
or make any material change in the nature of the financings which Borrower extends, including without limiting the generality of the foregoing, matters relating to size, type, term, nature and dollar amount. 
  
 Section 7.5 Negative Pledge. Assign, discount, pledge, sell, grant a
Lien in or otherwise dispose of or encumber any Collateral (including the WFFPC Receivables). 
  
 Section 7.6 Investments and Acquisitions. Make any investments in any other firm, entity or corporation; or enter into any new business activities or ventures not related to Borrower’s business 

  

 24 

 
existing as of the date of this Agreement; or create or form any Subsidiary of Borrower, provided, however, that this Section shall not be deemed to prohibit
Borrower from forming one or more Special Purpose Subsidiaries. 
  
 Section 7.7 Compliance with Formula. Permit the aggregate amount of all Advances outstanding at any time to exceed the Borrowing Base. 
  
 Section 7.8 Mergers, Sales, Divestitures. Acquire all or substantially all of the shares of stock of or other equity interest in any entity, be a
party to any consolidation or merger or sell, transfer or otherwise dispose of any Collateral (including the WFFPC Receivables). 
  
 Section 7.9 Use of Proceeds. Use the proceeds of any loan or advance made by WFFPC hereunder for purposes other than in connection with
Borrower’s general corporate purposes, including consumer lending activities and working capital. No portion of the proceeds of any loan or advance made by WFFPC hereunder will be used, directly or indirectly, for any purpose that entails a
violation of any of the regulations of the Board of Governors of the Federal Reserve System, including, without limitation, Regulations U and X. 
  
 Section 7.10 Ownership and Management. Allow Borrower to be owned and controlled directly or indirectly by any person or entity other than the
partners and senior management that own and control Borrower as of the date of this Agreement, provided that Steve Burke may transfer his partnership interests in Borrower to any of the other partners or to a third party upon his termination or
retirement from employment by Borrower without causing a violation of this covenant. 
  
 Section 7.11 Amendment to Subordinated Debt. Amend or permit the amendment of the documents and instruments evidencing Subordinated Debt or make any prepayment on account of such Subordinated Debt which is not
otherwise allowed to be made under the subordination provisions applicable to such Subordinated Debt. 
  
 ARTICLE 8 
 EVENTS OF DEFAULT 
  
 Each of the following events shall constitute an Event of Default under this
Agreement: 
  
 Section 8.1 Failure to Make Payments. The
failure of Borrower to make any payment of principal or interest under the Note or this Agreement or any other payment hereunder or in respect of any other Obligation within 10 days of the date when due. 
  
 Section 8.2 Information, Representations and Warranties. Any financial
statement, written information furnished or representation or warranty, certificates, document or instrument made or given by Borrower herein or furnished in connection herewith shall be false, misleading or incorrect; provided, however, that with
respect to clerical or administrative errors, Borrower shall have 10 days following the date on which Borrower had or should have had actual knowledge of such error in which to correct such error to WFFPC’s reasonable satisfaction. 

 
 Section 8.3 Financial and Negative Covenants. The failure of
Borrower to observe, perform or comply with any of the covenants set forth in Sections 6.4 or 7.1 through 7.12 of this Agreement, which failure has not been resolved to WFFPC’s reasonable satisfaction within 5 days after the earlier of (a) the
date on which Borrower had or should have had actual knowledge of such failure 

  

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or (b) the date on which Borrower was required to report the same to WFFPC pursuant to the applicable provisions of this Agreement or (c) the date on which
WFFPC gave notice to Borrower of such failure. 
  
 Section 8.4
Covenants and Agreements. The failure of Borrower to observe, perform or comply with any other covenant, warranty, agreement or provision of the Note or this Agreement or any other Credit Document, which failure has not been cured to
WFFPC’s reasonable satisfaction within 15 days after the earlier of (a) the date on which Borrower had or should have had knowledge of such failure, or (b) the date on which WFFPC gave notice to Borrower of such default. 
  
 Section 8.5 Collateral. At any time after the grant to WFFPC of a
security interest in or Lien upon any Collateral (including the WFFPC Receivables), WFFPC’s interest therein shall for any reason cease to be a valid and subsisting first priority and only Lien in favor of WFFPC; provided, however, that any
Event of Default under this Section 8.5 arising out of the invalidity of a lien on the motor vehicle securing a WFFPC Receivable shall be cured by the exclusion of any such WFFPC Receivable in the delivery of the next required Availability
Statement. 
  
 Section 8.6 Defaults Under Other Agreements.
Any default by Borrower under any other agreement to which Borrower is a party and with respect to which the amount claimed exceeds $200,000, singly or in the aggregate, not cured to WFFPC’s reasonable satisfaction on or before the earlier of
(a) the date 5 days after Borrower had or should have had knowledge of such default, or (b) the date on which the applicable indebtedness in excess of $200,000, singly or in the aggregate, of Borrower is accelerated or rights of Borrower are
terminated. 
  
 Section 8.7 Certain Events. The occurrence
of any of the following with respect to Borrower: 
  
 (a)
Voluntary Proceedings. It shall (i) apply for or consent to the appointment of a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property, (ii) be generally not paying its debts as such debts become
due as defined in the United States Bankruptcy Code, (iii) make a general assignment for the benefit of its creditors, (iv) commence a voluntary case under the Bankruptcy Code, (v) fail to controvert in a timely or appropriate manner, or acquiesce
in writing to, any petition filed against it in any involuntary case under the Bankruptcy Code, or (vi) take any partnership action for the purpose of effecting any of the foregoing. 
  
 (b) Involuntary Proceeding. A proceeding or case shall be commenced against it without its application or consent in
any court of competent jurisdiction, seeking (i) the liquidation, reorganization, dissolution, winding up, or composition or readjustment of debts, of it, (ii) the appointment of a trustee, receiver, custodian, liquidator or the like for it or of
all or any substantial part of its assets, or (iii) similar relief in respect of it under any law providing for the relief of debtors, and such proceeding or case shall continue undismissed or unstayed and in effect, for a period of 45 days, or an
order for relief against it shall be entered in an involuntary case under the Bankruptcy Code. 
  
 (c) Change in Ownership or Control. Borrower shall be owned or controlled directly or indirectly by any person or entity other than the partners that own or control Borrower as of the date of this Agreement,
provided that the transfer of Steve Burke’s partnership interests in Borrower to one or more of the other partners or to a third party upon his termination or retirement from employment by Borrower shall not constitute a violation of this
covenant. 
  

 26 

 Section 8.8 Possession of Collateral. A judgment creditor of Borrower shall take possession or
file proceedings to attempt to take possession of any of the Collateral by any means including without limitation, by levy, distraint, replevin, self-help, seizure or attachment. 
  
 Section 8.9 Credit Documents. An event of default (however defined) shall occur under any Credit Document or under
any other security agreement, guaranty, mortgage, deed of trust, assignment or other instrument or agreement securing or supporting any obligation of Borrower under this Agreement or under the Note. 
  
 Section 8.10 Material Adverse Change. A material adverse change in the
business or financial condition of Borrower shall occur that, in the reasonable credit judgment of WFFPC, would impair the ability of Borrower to repay the Loan or materially impair the Collateral. 
  
 Section 8.11 OTS. SSB is not considered “well capitalized”
by the OTS. 
  
 ARTICLE 9 
 REMEDIES OF WFFPC AND WAIVER 
  
 Section 9.1 WFFPC’s Remedies. Immediately upon the occurrence of any Event of Default specified in this Agreement, the obligation of WFFPC to
make Advances shall terminate and WFFPC may declare the Loan made pursuant to this Agreement and any other Obligation, together with all accrued interest, immediately due and payable without presentment, notice of dishonor, protest or further notice
of any kind, all of which Borrower hereby expressly waives. Upon such occurrence and/or declaration, WFFPC shall have, in addition to the rights and remedies given to it by the Note and this Agreement and the other Credit Documents, all the rights
and remedies of a secured party as provided in the Iowa Uniform Commercial Code (regardless of whether such Code has been adopted in the jurisdiction where such rights and remedies are asserted) and without limiting the generality of the foregoing,
and without demand of performance and without other notice (except as specifically required by the Note or this Agreement or the documents executed in connection herewith) or demand whatever to Borrower all of which are hereby expressly waived,
WFFPC may, in addition to all the rights conferred upon it by law, exercise one or more of the following rights successively or concurrently: (a) to take possession of the Collateral, or any evidence thereof, proceeding without judicial process or
by judicial process (without a prior hearing or notice thereof, which Borrower hereby expressly waives), (b) to lawfully dispose of the whole or any part of the Collateral (including the WFFPC Receivables), or any other Property, instrument or
document pledged as security for any Obligation at public or private sale, without advertisement or demand upon Borrower, or upon any obligor of any Collateral (including the WFFPC Receivables), or any other security, the same being hereby waived,
except to the extent otherwise required by law, with the right on the part of WFFPC or their respective nominees to become the purchaser thereof as provided by law absolutely freed and discharged from any equity of redemption, and all trusts and
other claims whatsoever; (c) after deduction of all reasonable legal and other costs and expenses permitted by law, including attorneys’ fees, to apply the Collateral or all or any portion of proceeds thereof on account of, or to hold as a
reserve against, all Borrower’s Obligations; and (d) to exercise any other rights and remedies available to it by law or agreement. Any remainder of the proceeds after satisfaction in full of Borrower’s Obligations shall be distributed as
required by applicable law. Notice of any sale or disposition of Collateral shall be given to Borrower at least 10 Business Days before any intended public sale or the time after which any intended private sale or other disposition of the Collateral
is to be made, which Borrower agrees shall be reasonable notice of such sale or other disposition. Notwithstanding the 

  

 27 

 
foregoing, upon the occurrence of an Event of Default described in Section 8.7(a) or (b) hereof, the Loan made pursuant to this Agreement and all other
Obligations, together with all accrued interest, shall be immediately due and payable in full without presentment, demand, or protest or notice of any kind, all of which Borrower hereby expressly waives. 
  
 Section 9.2 Waiver and Release by Borrower. To the extent permitted by
applicable law, Borrower: (a) waives (i) presentment and protest of the Notes and this Agreement or any Collateral (including the WFFPC Receivables) held by WFFPC on which Borrower is any way liable and (ii) notice and opportunity to be heard, after
acceleration in the manner provided in Article 9 of this Agreement, before exercise by WFFPC of the remedies of self-help or set-off permitted by law or by any agreement with Borrower, and except where required hereby or by law, notice of any other
action taken by WFFPC; and (b) releases WFFPC and its respective officers, attorneys, agents and employees from all claims for loss or damage caused by any act or omission on the part of WFFPC or its respective officers, attorneys, agents and
employees, except willful misconduct or gross negligence. 
  
 Section 9.3 No Waiver. Neither the failure nor any delay on the part of WFFPC to exercise any right, power or privilege under the Note or this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, power or privilege preclude any other further exercise of any right, power or privilege. 
  
 ARTICLE 10 
 MISCELLANEOUS 
  
 Section 10.1 Indemnification and Release Provisions. Borrower hereby
agrees to defend WFFPC and its directors, officers, agents, employees and attorneys from, and hold each of them harmless against, any and all losses, liabilities (including without limitation settlement costs and amounts, transfer taxes, documentary
taxes, or assessments or charges made by any governmental authority), claims, damages, interests, judgments, costs, or expenses, including without limitation fees and disbursements of attorneys, incurred by any of them arising out of or in
connection with or by reason of this Agreement, the making of the Loan or any Collateral, or any other Credit Document, including, without limitation, any and all losses, liabilities, claims, damages, interest, judgments, costs or expenses related
to or arising under any Consumer Finance Laws or applicable environmental statutes or the application of any such statute to Borrower’s properties or activities, other than such losses, liabilities, claims, damages, interest, judgments, costs
or expenses which has been determined by a court of competent jurisdiction to have been caused by the gross negligence or willful misconduct of WFFPC. Borrower hereby releases WFFPC and its respective directors, officers, agents, employees and
attorneys from any and all claims for loss, damages, costs or expenses caused or alleged to be caused by any act or omission on the part of any of them, other than such loss, damage cost or expense which has been determined by a court of competent
jurisdiction to have been caused by the gross negligence or willful misconduct of WFFPC. All obligations provided for in this Section 10.1 shall survive any termination of this Agreement or the Commitment and the repayment of the Loan. 

 
 Section 10.2 Amendments. Unless otherwise set forth in this
Agreement, no amendment or waiver of any provision of this Agreement nor consent to any departure by Borrower therefrom shall in any event be effective unless the same shall be in writing and signed by WFFPC. 
  
 Section 10.3 APPLICABLE LAW. THIS AGREEMENT AND ALL DOCUMENTS

  

 28 

 
EXECUTED IN CONNECTION HEREWITH SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN THE STATE OF IOWA AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF IOWA 
  
 Section 10.4
Notices. All communications provided for hereunder shall be in writing and shall be deemed to have been delivered, if delivered in person, or sent by certified mail, postage pre-paid, return receipt requested, by reliable overnight courier or
by telecopier, to the addresses set forth on the signature page of this Agreement for each party, or to such other address as any party shall specify to the other party in writing. 
  
 Section 10.5 Termination and Release. This Agreement shall not terminate until all amounts due under the Note, this
Agreement and any other Credit Document and other Obligations, together with all interest and costs due, shall have been indefeasible paid in full and the Commitment has expired or otherwise has been terminated. Upon such termination and payment,
the Collateral securing the Loan, the Notes, this Agreement and the other Obligations shall be released from the provisions of this Agreement and any right, title and interest of WFFPC in or to the same shall cease. Thereafter, WFFPC agrees to
deliver to Borrower such documents as Borrower may reasonably request to release of record any security interest or lien of WFFPC in the Collateral. 
  
 Section 10.6 Costs, Expenses and Taxes. Borrower agrees to pay immediately upon demand therefor, all legal fees and out-of-pocket expenses of WFFPC
related to the preparation, negotiation, documentation, execution, filing or delivery of this Agreement or any other Credit Document, up to $25,000, and any and all waivers, amendments or modifications of any of the Credit Documents or any of the
terms and provisions thereof and, following any Default or Event of Default hereunder, any and all audits and required inspections permitted under this Agreement or any other Credit Document. In the event that this Agreement is amended to include
electronic chattel paper within the definition of Eligible Receivables, WFFPC shall not assess a fee for such amendment, but shall be entitled to receive payment from Borrower for all legal fees and out-of-pocket expenses of WFFPC related to the
preparation, negotiation, documentation, execution, filing or delivery of such amendment. Prior to an Event of Default, Borrower shall reimburse WFFPC up to $1,000 in expenses related to audits and inspections described in Section 6.3. Borrower
shall also pay immediately upon demand therefor all fees (including without limitation, legal fees), costs and other expenses incurred in connection with collection of the Loan, the maintenance or preservation of the security interest in the
Collateral, the sale, disposition or other realization on the Collateral, or the enforcement of WFFPC’s rights hereunder or under any Credit Document. In addition, Borrower agrees to pay any and all stamp and other taxes or filing fees payable
or determined to be payable in connection with the execution and delivery of the Note and this Agreement, the Collateral and other documents to be delivered hereunder, and agrees to save WFFPC harmless from and against any and all liabilities with
respect to or resulting from any delay in payment or omission to pay such taxes. 
  
 Section 10.7 Successors and Assigns. This Agreement shall bind and inure to the benefit of each signatory, its successors and assigns, provided, however, that Borrower may not make an assignment of this
Agreement without the prior written consent of WFFPC. 
  
 Section
10.8 JURISDICTION AND VENUE. THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY CREDIT DOCUMENT 

  

 29 

 
OR THE RELATIONSHIP ESTABLISHED HEREUNDER, SHALL BE TRIED AND LITIGATED ONLY IN THE STATE COURTS LOCATED IN THE COUNTY OF POLK, STATE OF IOWA, THE FEDERAL
COURTS WHOSE VENUE INCLUDES THE COUNTY OF POLK, STATE OF IOWA, OR, AT THE SOLE OPTION OF WFFPC, IN ANY OTHER COURT IN WHICH WFFPC SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY.
THE PARTIES EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN ANY SUCH COURT, AND THE PARTIES HEREBY WAIVE ANY OBJECTION WHICH EITHER MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION AND HEREBY
CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY ANY SUCH COURT. FURTHERMORE, BORROWER AND WFFPC EACH WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF
“FORUM NON CONVENIENS” OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 10.8. BORROWER AGREES THAT SERVICE OF PROCESS IN ANY SUCH PROCEEDING MAY BE DULY EFFECTED UPON IT BY MAILING A COPY
THEREOF, BY REGISTERED MAIL, POSTAGE PREPAID, TO BORROWER. 
  
 Section 10.9 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF OR
RELATED TO THIS AGREEMENT OR ANY CREDIT DOCUMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR WFFPC TO ENTER INTO THIS AGREEMENT. 
  
 Section 10.10 Exchanging Information. Borrower understands that employees of WFFPC, and its Affiliates, Wells Fargo
& Company and Wells Fargo Financial, Inc. were involved in the credit decision underlying this Agreement. Borrower consents to the disclosure of confidential information to such employees of WFFPC, and its Affiliates, Wells Fargo & Company
and Wells Fargo Financial, Inc. solely for such purpose and to the disclosure of such confidential information in connection with the administration of this Agreement and the transactions contemplated hereunder and for internal and external audit
purposes. WFFPC shall be entitled to provide all information received by WFFPC regarding the Borrower and its Affiliates, on a need to know basis, to WFFPC’s prospective participants in the Loan and Borrower waives any right of confidentiality
it may have with respect to such exchange of such information.. 
  
 IMPORTANT:
READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS
OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. 
  
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 
  

 30 

 Dated the date and year first written above. 
  

					
	BORROWER:	 	FSB FINANCIAL, LTD.
			
	 110 West Randol Mill Road, Suite 100
 Arlington, TX 76011
 Telephone: (817) 794-0001
 Facsimile: (817) 548-1936
	 	 By:
  
  
 By:
	 	 FSBF, LLC, its Managing Partner
  
  
 /s/ Steve Burke

 Steve Burke, President

		
	WFFPC:	 	WELLS FARGO FINANCIAL PREFERRED CAPITAL, INC.
			
	 1760 Market Street, Suite 300
 Philadelphia, PA 19103
 Telephone: (215) 569-1400
 Facsimile: (215) 569-0251
	 	  
  
 By:
	 	  
  
 /s/ William Laird

 William Laird, Vice President

  
 [SIGNATURE PAGE TO LOAN
AND SECURITY AGREEMENT] 
  

 S-1 

 EXHIBITS 
  

			
	 Exhibit A:
	 	Form of Request for Advance
	 Exhibit B:
	 	Form of Availability Statement
	 Exhibit C:
	 	Form of Custodian Agreement
	 Exhibit D:
	 	[Intentionally Left Blank]
	 Exhibit E:
	 	Form of Promissory Note
	 Exhibit F:
	 	Form of Schedule of Receivables and Assignment
	 Exhibit G-1:
	 	Form of Subordination Agreement
	 Exhibit G-2:
	 	Form of Intercreditor Agreement
	 Exhibit H:
	 	Form of Disclosure Pursuant to Representations and Warranties
	 Exhibit I:
	 	Locations and Names of Borrower
	 Exhibit J:
	 	Form of Annual Certification

 TABLE OF CONTENTS 
  

							
	 ARTICLE 1    DEFINITIONS
	  	1
	 	 	Section 1.1	  	Certain Definitions	  	1
	 	 	Section 1.2	  	Rules of Construction.	  	8
		
	 ARTICLE 2    THE REVOLVING CREDIT FACILITY
	  	9
	 	 	Section 2.1	  	The Loan	  	9
	 	 	Section 2.2	  	The Note	  	9
	 	 	Section 2.3	  	Method of Payment	  	9
	 	 	Section 2.4	  	Interest.	  	9
	 	 	Section 2.5	  	Advances.	  	10
	 	 	Section 2.6	  	Prepayment.	  	11
		
	 ARTICLE 3    SECURITY
	  	12
	 	 	Section 3.1	  	Security Interest	  	12
	 	 	Section 3.2	  	Financing Statements	  	12
	 	 	Section 3.3	  	Documents to be Delivered to WFFPC	  	12
	 	 	Section 3.4	  	Collections	  	13
	 	 	Section 3.5	  	Additional Rights of WFFPC; Power of Attorney.	  	14
		
	 ARTICLE 4    REPRESENTATIONS AND WARRANTIES
	  	14
	 	 	Section 4.1	  	Representations and Warranties as to WFFPC Receivables.	  	14
	 	 	Section 4.2	  	Organization	  	15
	 	 	Section 4.3	  	Perfection of Security Interest	  	15
	 	 	Section 4.4	  	No Violations	  	16
	 	 	Section 4.5	  	Power and Authority.	  	16
	 	 	Section 4.6	  	Validity of Agreements	  	16
	 	 	Section 4.7	  	Litigation	  	16
	 	 	Section 4.8	  	Compliance	  	16
	 	 	Section 4.9	  	Accuracy of Information; Full Disclosure.	  	16
	 	 	Section 4.10	  	Taxes	  	17
	 	 	Section 4.11	  	Indebtedness	  	17
	 	 	Section 4.12	  	Investments	  	17
	 	 	Section 4.13	  	Business Location	  	17
	 	 	Section 4.14	  	Partnership Interests	  	17
	 	 	Section 4.15	  	ERISA	  	17
		
	 ARTICLE 5    CONDITIONS TO LOAN
	  	18
	 	 	Section 5.1	  	Documents to be Delivered to WFFPC Prior to First Advance	  	18
	 	 	Section 5.2	  	Conditions to all Advances	  	19
		
	 ARTICLE 6    BORROWER’S AFFIRMATIVE COVENANTS
	  	19
	 	 	Section 6.1	  	Borrower’s Place of Business and Books and Records	  	19
	 	 	Section 6.2	  	Reporting Requirements	  	19
	 	 	Section 6.3	  	Borrower’s Books and Records	  	20
	 	 	Section 6.4	  	Financial Covenants	  	20
	 	 	Section 6.5	  	Compliance With Applicable Law.	  	21
	 	 	Section 6.6	  	Notice of Default	  	22
	 	 	Section 6.7	  	Partnership Existence, Properties	  	22
	 	 	Section 6.8	  	Payment of Indebtedness; Taxes	  	22

  

 i 

							
	 	  	Section 6.9	  	Notice Regarding Any Plan	  	22
	 	  	Section 6.10	  	Other Information	  	23
	 	  	Section 6.11	  	Litigation	  	23
	 	  	Section 6.12	  	Business Location, Legal Name and State of Organization	  	23
	 	  	Section 6.13	  	Operations	  	23
	 	  	Section 6.14	  	Further Assurances	  	23
	 	  	Section 6.15	  	Sale of WFFPC Receivables	  	24
		
	ARTICLE 7    NEGATIVE COVENANTS	  	24
	 	  	Section 7.1	  	Payments to and Transactions with Affiliates	  	24
	 	  	Section 7.2	  	Restricted Payments	  	24
	 	  	Section 7.3	  	Guaranties	  	24
	 	  	Section 7.4	  	Nature of Business	  	24
	 	  	Section 7.5	  	Negative Pledge	  	24
	 	  	Section 7.6	  	Investments and Acquisitions	  	24
	 	  	Section 7.7	  	Compliance with Formula	  	25
	 	  	Section 7.8	  	Mergers, Sales, Divestitures	  	25
	 	  	Section 7.9	  	Use of Proceeds	  	25
	 	  	Section 7.10	  	Ownership and Management	  	25
	 	  	Section 7.11	  	Amendment to Subordinated Debt or SSB Debt	  	25
		
	ARTICLE 8    EVENTS OF DEFAULT	  	25
	 	  	Section 8.1	  	Failure to Make Payments	  	25
	 	  	Section 8.2	  	Information, Representations and Warranties	  	25
	 	  	Section 8.3	  	Financial and Negative Covenants	  	25
	 	  	Section 8.4	  	Covenants and Agreements	  	26
	 	  	Section 8.5	  	Collateral	  	26
	 	  	Section 8.6	  	Defaults Under Other Agreements	  	26
	 	  	Section 8.7	  	Certain Events	  	26
	 	  	Section 8.8	  	Possession of Collateral	  	27
	 	  	Section 8.9	  	Credit Documents	  	27
	 	  	Section 8.10	  	Material Adverse Change	  	27
	 	  	Section 8.11	  	OTS	  	27
		
	ARTICLE 9    REMEDIES OF WFFPC AND WAIVER	  	27
	 	  	Section 9.1	  	WFFPC’s Remedies	  	27
	 	  	Section 9.2	  	Waiver and Release by Borrower	  	28
	 	  	Section 9.3	  	No Waiver	  	28
		
	ARTICLE 10  MISCELLANEOUS	  	28
	 	  	Section 10.1	  	Indemnification and Release Provisions	  	28
	 	  	Section 10.2	  	Amendments	  	28
	 	  	Section 10.3	  	APPLICABLE LAW	  	28
	 	  	Section 10.4	  	Notices	  	29
	 	  	Section 10.5	  	Termination and Release	  	29
	 	  	Section 10.6	  	Costs, Expenses and Taxes	  	29
	 	  	Section 10.7	  	Successors and Assigns	  	29
	 	  	Section 10.8	  	JURISDICTION AND VENUE	  	29
	 	  	Section 10.9	  	WAIVER OF JURY TRIAL	  	30
	 	  	Section 10.10	  	Exchanging Information	  	30

  

 iiAmended and Restated Investors' Rights Agreement, dated June 6, 2002

 EXHIBIT 4.1 
  

EXECUTION COPY 
  
 ATRICURE, INC. 
  
 AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 
  
 This Amended and Restated Investors’ Rights Agreement (this “Agreement”) is made as of the 6th day of June, 2002, by and among AtriCure, Inc., a Delaware corporation (the “Company”), and the investors listed on Exhibit A attached hereto
(“Investors”). All capitalized terms not defined herein shall have the meanings ascribed to such terms in the Series B Convertible Preferred Stock Purchase Agreement of the same date herewith (“Purchase Agreement”). 

 
 1. Information Rights. 
  
 1.1 Financial Information. So long as an Investor is a Major Investor
(as defined in Section 2.1 below), the Company will provide to such Major Investor the following information: 
  
 (a) as soon as practicable, but in any event within ninety (90) days (or such shorter period as determined by the Company’s Board of Directors)
after the end of each fiscal year of the Company, an audited balance sheet of the Company, as at the end of such fiscal year, and audited statements of operations, cash flow and stockholders’ equity for such fiscal year. Such year-end financial
reports shall be in reasonable detail, shall be prepared in accordance with generally accepted accounting principles (“GAAP”) consistently applied and shall set forth in each case in comparative form the figures for the previous year. Such
financial statements shall be accompanied by a report and opinion thereon by independent public accountants of national standing selected by the Company’s Board of Directors; 
  
 (b) within forty-five (45) days after the end of each fiscal quarter, an unaudited balance sheet of the Company as of the
end of such quarterly period, and statements of operations and cash flows for such quarter and for the current fiscal year to date, in reasonable detail and prepared in accordance with GAAP, subject to year end audit adjustments and the absence of
footnotes; 
  
 (c) within thirty (30) days after the end of each
month, an unaudited balance sheet of the Company as of the end of such month, and statements of operations and cash flows for such month and for the current fiscal year to date, in reasonable detail and prepared in accordance with GAAP, subject to
year end audit adjustments and the absence of footnotes; and 
  
 (d) at least thirty (30) days prior to the beginning of each fiscal year of the Company, an annual budget and operating plans for such fiscal year (and as soon as available, and subsequent revisions thereto). 

 1.2 Additional Information. So long as an Investor is a Major Investor, the Company will deliver
or provide to such Major Investor with reasonable promptness: 
  
 (a) management letters from the Company’s auditors or accountants; 
  
 (b) notices received by the Company concerning defaults under material agreements; 
  
 (c) notices, pleadings and any other correspondence concerning material litigation; 
  
 (d) profit and loss statements, budgets and initial projections; and 
  
 (e) any other information that may be reasonably requested; 
  
 provided, however, that, whenever requested, such Major Investor shall sign an
agreement reasonably satisfactory to the Company stating that such Major Investor shall hold all such information in confidence. 
  
 1.3 Subsidiaries If the Company has any subsidiaries, the obligation of the Company to deliver financial information and operating plans as set
forth in this Section 1 shall be construed to mean the consolidated financial statements and operating plans of the Company. 
  
 1.4 Books and Records. The Company will maintain books and records of account in which full and correct entries will be made in all material
respects of its business transactions pursuant to a system of accounting established and administered in accordance with generally accepted accounting principles consistently applied, and will set aside on its books, on a periodic basis, all such
proper accruals and reserves as shall be required under generally accepted accounting principles consistently applied. 
  
 1.5 Inspection Rights. Each Major Investor shall have the right to visit and inspect any of the properties of the Company or any of its
subsidiaries, and to discuss the affairs, finances and accounts of the Company or any of its subsidiaries with its officers, and to review such information as is reasonably requested all at such reasonable times and as often as may be reasonably
requested; provided, however, that the Company shall not be obligated under this Section 1.5 with respect to a Major Investor that is a competitor of the Company or with respect to information which the Company’s Board of
Directors determines in good faith is confidential and should not, therefore, be disclosed. 
  
 1.6 Statutory Rights. The provisions of this Section 1 shall not be in limitation of any rights which any Holder may have under any applicable law with respect to the books and records of the Company or to
inspect its properties or to discuss its affairs, finances and accounts. 
  
 1.7 Termination of Covenants. The rights set forth in this Section 1 hereof shall terminate and be of no further force or effect upon the closing of a Qualified Public Offering (as 
  

 2 

 defined in Article IV, Section 2(b)(i) of the Company’s Certificate of Incorporation) or on the date the Company
otherwise becomes subject to and begins complying with the reporting requirements under Sections 13 or 15(d) of the Securities Exchange Act of 1934, as amended, whichever first occurs. 
  
 2. Registration Rights. 
  
 2.1 Certain Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 
  
 (a) An “Affiliate” of a person is a second person directly
or indirectly (through one or more intermediaries) controlling, controlled by or under common control with that first person. 
  
 (b) “Commission” shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities
Act. 
  
 (c) “Common Stock” shall mean the
Company’s Common Stock, par value $.0001 per share. 
  
 (d)
“Holder” shall mean any Investor holding Registrable Securities or securities convertible into Registrable Securities and any person holding such securities to whom the rights under this Section 2 have been transferred in accordance
with Section 2.11 hereof. 
  
 (e) “Initiating
Holders” shall mean any Holder or Holders who in the aggregate hold at least 25% percent of the Registrable Securities. 
  
 (f) “Investor” means either an Investor who has signed this Agreement or a Holder. 
  
 (g) “Major Investor” means an Investor or a Holder owning
with its Affiliates not less than six hundred and fifty thousand (650,000) shares of Registrable Securities (as appropriately adjusted for stock splits and the like). For purposes of this definition, any shares of Registrable Securities held by
Partisan Management Group, Inc., The Weldon Foundation, Carol J. Weldon and Karen J. Cassidy shall be aggregated. 
  
 (h) “Preferred Stock” means the Series A Preferred Stock and the Series B Preferred Stock. 
  
 (i) “Registrable Securities” means (i) the Series A
Preferred Stock, (ii) the Series B Preferred Stock, (iii) any Common Stock issuable upon conversion of the Series A Preferred Stock or the Series B Preferred Stock (“Conversion Stock”) and/or (iv) any Common Stock of the Company issued or
issuable with respect to, or in exchange for or in replacement of, the Conversion Stock or other securities convertible into or exercisable for Series A Preferred Stock or Series B Preferred Stock upon any stock split, stock dividend,
recapitalization, or similar event; 
  

 3 

 provided, however, that shares of Common Stock or other securities shall only be treated as Registrable
Securities for the purposes of Sections 2.2, 2.3 and 2.4 hereof (A) if and so long as they have not been sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction or (B) prior to the date such
securities have been sold in a transaction exempt from the prospectus delivery requirements of the Securities Act so that all transfer restrictions and legends with respect thereto are removed upon the consummation of such sale. 
  
 (j) The terms “register,” “registered” and
“registration” refers to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement.

  
 (k) “Registration Expenses” shall mean all
expenses, except as otherwise stated below, incurred by the Company in complying with Sections 2.2, 2.3 and 2.4 hereof, including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and
disbursements of counsel for the Company, reasonable fees and disbursements of a single counsel for the Holders, blue sky fees and expenses, the expense of any special audits incident to or required by any such registration (but excluding the
compensation of regular employees of the Company which shall be paid in any event by the Company). 
  
 (l) “Restricted Securities” shall mean the securities of the Company required to bear the legend referring to the Securities Act set
forth in the Purchase Agreement. 
  
 (m) “Securities
Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  
 (n) “Selling Expenses” shall mean all underwriting
discounts, selling commissions and stock transfer taxes, if any, applicable to the securities registered by the Holders. 
  
 (o) “Series A Preferred Stock” shall mean the Company’s Series A Convertible Preferred Stock, par value $.0001 per share.

  
 (p) “Series B Preferred Stock” shall mean
the Company’s Series B Convertible Preferred Stock, par value $.0001 per share. 
  
 2.2 Requested Registration. 
  
 (a) Request for Registration. If at any time after the earlier to occur of (x) June 6, 2006 and (y) the date which is one hundred eighty (180) days after the closing of the Company’s first registered public offering of
securities, the Company shall receive from Initiating Holders a written request (specifying that it is being made pursuant to this Section 2.2(a)) that the Company effect any registration, qualification or compliance with respect to at least twenty
percent (20%) of the Registrable Securities then held by such Initiating Holders (or any lesser number of shares if the anticipated aggregate offering price, net of underwriting discounts and commissions, would exceed $10,000,000), the Company will
(i) within ten (10) days of the receipt by the 
  

 4 

 Company of such notice, give written notice of the proposed registration, qualification or compliance to all other
Holders and (ii) as soon as practicable (but in no event more than ninety (90) days after receipt by the Company of such notice), use its best efforts to effect such registration, qualification or compliance (including, without limitation,
appropriate qualification under applicable blue sky or other state securities laws and appropriate compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as may be so requested
and as would permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders joining in
such request as are specified in a written request received by the Company within twenty (20) days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to take any action to
effect any such registration, qualification or compliance pursuant to this Section 2.2(a): 
  
 (i) In any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company is already
subject to service in such jurisdiction and except as may be required by the Securities Act; 
  
 (ii) During the period starting with the date sixty (60) days prior to the Company’s estimated date of filing of, and ending on the date ninety (90) days immediately following the effective date of, any
registration statement pertaining to securities of the Company (other than a registration of securities in a Rule 145 of the Securities Act transaction, with respect to an employee benefit plan or with respect to the Company’s first registered
public offering of its stock), provided that the Company is actively employing in good faith all reasonable efforts to cause such registration statement to become effective; 
  
 (iii) After the Company has effected two (2) registrations pursuant to this Section 2.2(a), and such registrations have
been declared or ordered effective; and 
  
 (iv) If the Company
shall furnish to such Holders a certificate signed by the President of the Company stating that in the good faith judgment of the Company’s Board of Directors it would be seriously detrimental to the Company or its shareholders for a
registration statement to be filed in the near future, then the Company’s obligation to use its best efforts to register, qualify or comply under this Section 2.2 shall be deferred for a period not to exceed ninety (90) days from the date of
receipt of written request from the Initiating Holders; provided, however, that the Company shall not exercise such right more than once in any twelve-month period. 
  
 (b) Underwriting. In the event that a registration pursuant to this Section 2.2 or Section 2.4 hereof is for a
registered public offering involving an underwriting, the Initiating Holders shall so advise the Company as part of their request made pursuant to this Section 2.2 or any request pursuant to Section 2.4 hereof, and the Company shall so advise the
Holders as part of the notice given pursuant to Section 2.2(a) or 2.4(a) hereof, as applicable. In such event, the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s
participation in the underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. 
  

 5 

 The Company shall (together with all Holders proposing to distribute their securities through such
underwriting) enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by a majority in interest of the Initiating Holders (which managing underwriter shall be reasonably acceptable to the
Company). Notwithstanding any other provision of this Section 2.2 or Section 2.4 hereof, if the managing underwriter advises the Company in writing that marketing factors require a limitation of the number of shares to be underwritten, then the
Company shall so advise all Holders of Registrable Securities and the number of shares of Registrable Securities that may be included in the registration and underwriting shall be allocated among all Holders thereof in proportion, as nearly as
practicable, to the respective amounts of Registrable Securities held by such Holders at the time of filing the registration statement or in such other manner as shall be agreed to by the Company and Holders of a majority of the Registrable
Securities proposed to be included in such registration; provided, however, that the number of shares of Registrable Securities to be included in such underwriting and registration shall not be reduced unless all other securities of
the Company are first entirely excluded from the underwriting and registration. No Registrable Securities excluded from the underwriting by reason of the underwriter’s marketing limitation shall be included in such registration. To facilitate
the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. 
  
 If any Holder of Registrable Securities disapproves of the terms of the
underwriting, such Holder may elect to withdraw therefrom by written notice to the Company, the managing underwriter and the Initiating Holders. The Registrable Securities and/or other securities so withdrawn shall also be withdrawn from
registration, and such Registrable Securities shall not be transferred in a public distribution prior to ninety (90) days after the effective date of such registration, or such other shorter period of time as the underwriters may require.

  
 2.3 Company Registration. 
  
 (a) Notice of Registration. If at any time or from time to time the
Company shall determine to register any of its securities, either for its own account or the account of a security holder or holders, other than a registration relating solely to employee benefit plans, the Company will: 
  
 (i) promptly give to each Holder written notice thereof and in no event
less than twenty (20) days prior to the filing of any statement pertaining to such a registration; and 
  
 (ii) include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all
the Registrable Securities specified in a written request or requests, made within fifteen (15) days after receipt of such written notice from the Company, by any Holder. 
  

 6 

 If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter filed by
the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of its
securities, all upon the terms and conditions set forth herein. 
  
 (b) Underwriting. If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section
2.3(a) hereof. In such event the right of any Holder to registration pursuant to this Section 2.3 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of Registrable Securities in the underwriting to the
extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company) enter into an underwriting agreement in customary form with the managing underwriter selected for such
underwriting by the Company. Notwithstanding any other provision of this Section 2.3, if the managing underwriter determines in good faith that marketing factors require a limitation of the number of shares to be underwritten, the managing
underwriter may limit the Registrable Securities and other securities to be distributed through such underwriting. The Company shall so advise all Holders distributing their securities through such underwriting of such limitation and the number of
shares of Registrable Securities that may be included in the registration and underwriting shall be allocated first to the Company, and then among all Holders in proportion, as nearly as practicable, to the respective amounts of Registrable
Securities held by such Holders at the time of filing the registration statement. No such limitation shall (i) reduce the securities being offered by the Company for its own account to be included in the registration and underwriting or (ii) reduce
the amount of securities of the selling Holders included in the registration below fifteen percent (15%) of the total amount of securities included in such registration, unless such offering is the Company’s initial public offering, in which
event any or all of the Registrable Securities of the Holders may be excluded. To facilitate the allocation of shares in accordance with the above provisions, the Company may round the number of shares allocated to any Holder or holder to the
nearest one hundred (100) shares. If any Holder or holder disapproves of the terms of any such underwriting, such Holder or holder may elect to withdraw therefrom by written notice to the Company and the managing underwriter. Any securities excluded
or withdrawn from such underwriting shall be withdrawn from such registration. For any Holder which is a partnership or corporation, the partners, retired partners and shareholders of such Holder, or the estates and family members of any such
partners and retired partners and any trusts for the benefit of any of the foregoing person shall be deemed to be a single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the
aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “Holder,” as defined in this sentence. 
  

(c) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this
Section 2.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The Registration Expenses of such withdrawn registration shall be borne by the Company in accordance with
Section 2.5 hereof. 
  

 7 

 2.4 Registration on Form S-3. 
  
 (a) If any Holder or Holders of the Registrable Securities request that the Company file a registration statement on Form
S-3 (or any successor form to Form S-3), or any similar short-form registration statement, for a public offering of Registrable Securities owned by such Holder or Holders, the reasonably anticipated aggregate price to the public of which, net of
underwriting discounts and commissions, would exceed $500,000 and the Company is a registrant entitled to use Form S-3 (or any successor or similar form) to register the Registrable Securities for such an offering, the Company shall: 
  
 (i) promptly give written notice of the proposed registration, and any
related qualification or compliance, to all other Holders; 
  
 (ii) include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Registrable Securities specified in a written request or requests, made within ten
(10) days after receipt of such written notice from the Company, by any Holder; and 
  
 (iii) use its best efforts to cause such Registrable Securities to be registered on such form for the offering and to cause such Registrable Securities to be qualified in such jurisdictions as the Holder or Holders
may reasonably request; provided, however, that the Company shall not be required to effect more than two registrations pursuant to this Section 2.4 in any twelve (12) month period. After the Company’s Qualified Public Offering,
the Company will use its best efforts to qualify for Form S-3 registration or a similar short-form registration. The provisions of Section 2.2(b) hereof shall be applicable to each registration initiated under this Section 2.4. 
  
 (b) Notwithstanding the foregoing, the Company shall not be obligated to
take any action pursuant to this Section 2.4: (i) in any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company
is already subject to service in such jurisdiction and except as may be required by the Securities Act; (ii) if the Company, within ten (10) days of the receipt of the request of any Holder or Holders pursuant to this Section 2.4, gives notice of
its bonafide intention to effect the filing of a registration statement with the Commission within ninety (90) days of receipt of such request (other than with respect to a registration statement relating to an offering solely to officers,
directors, employees or consultants of the Company), provided that the Company is actively employing in good faith its reasonable efforts to cause such registration statement to become effective; or (iii) if the Company shall furnish to such Holders
a certificate signed by the President of the Company stating that in the good faith judgment of the Company’s Board of Directors it would be seriously detrimental to the Company or its shareholders for registration statement to be filed at such
time, then the Company’s obligation to use its best efforts to file a registration statement shall be deferred for a period not to exceed ninety (90) days from the receipt of the request to file such registration by such Holder or Holders;
provided, however, that the Company shall not exercise this Section 2.4(b)(iii) right more than once in any twelve-month period. 
  
  

 8 

 2.5 Expenses of Registration. All Registration Expenses incurred in connection with registrations
pursuant to Sections 2.2, 2.3 and 2.4 hereof shall be borne by the Company; provided, however, that each Holder requesting registration pursuant to Section 2.3 shall bear the cost of its legal counsel incurred in connection with any
registrations that are requested after the Company has effected two registrations pursuant to Section 2.3 in which any Holder has participated. All Selling Expenses relating to securities registered on behalf of the Holders shall be borne by the
holders of securities included in such registration pro rata with the Company and among each other on the basis of the number of shares so registered. Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of
any registration proceeding begun pursuant to Sections 2.2 and 2.4 hereof if the registration request is subsequently withdrawn at the request of the majority of the Initiating Holders, unless (a) the withdrawal is based upon material adverse
information concerning the Company of which the Initiating Holders were not aware at the time of such request, or (b) the withdrawal is made during a deferral by the Company pursuant to Section 2.2(a)(iv) or 2.4(b)(iii) above, or (c) the Holders of
a majority of Registrable Securities agree to forfeit their right to one requested registration pursuant to Section 2.2 or Section 2.4 above, as the case may be, in which event such right shall be forfeited by all Holders. 
  
 2.6 Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant to this Section 2, the Company will keep each Holder advised in writing as to the initiation of each registration, qualification and compliance and as to the completion thereof. The
Company will, as expeditiously as reasonably possible: 
  
 (a)
Prepare and file with the Commission a registration statement with respect to such securities and use its best efforts to cause such registration statement to become and remain effective for at least ninety (90) days or until the distribution
described in the registration statement has been completed; 
  
 (b) Prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the
Securities Act and to use best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of each jurisdiction as shall be reasonably requested by Holders with respect to the
disposition of all securities covered by such registration statement for the period set forth in subsection (a) above; 
  
 (c) Furnish to the Holders participating in such registration and to the underwriters of the securities being registered such reasonable number of copies
of the registration statement, preliminary prospectus, final prospectus and such other documents as they may reasonably request in order to facilitate the public offering of such securities; 
  
 (d) In the event of any underwritten public offering, enter into and perform
its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering; 
  

 9 

 (e) Notify each Holder of Registrable Securities covered by such registration statement at any time when
a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing and use reasonable efforts to amend or supplement such
prospectus in order to remedy such statement or omission; 
  
 (f)
Use its best efforts to furnish, at the request of a majority of the Holders participating in the registration, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through
underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the
underwriters, if any, and (ii) a letter dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an
underwritten public offering addressed to the underwriters; 
  
 (g) Use its reasonable best efforts to register and qualify the Registrable Securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as shall be reasonably requested by the
Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions unless the Company is already
subject to service in such jurisdiction; 
  
 (h) Cause the
Registrable Securities covered by such registration statement to be listed on each securities exchange or included for trading on any inter-dealer quotation system on which similar securities issued by the Company are then listed or included;

  
 (i) Provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; and 
  
 (j) Execute and deliver such instruments and take such other actions as the Holders of the Registrable Securities covered
by such registration statement may reasonably request in order to facilitate the effectiveness of the registration statement and qualification or compliance under applicable blue sky laws, and the disposition of the shares covered by the
registration statement. 
  
 2.7 Delay of Registration. No
Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2. 

 

 10 

 2.8 Indemnification. In the event any Registrable Securities are included in a registration
statement under this Section 2: 
  
 (a) To the extent permitted
by law, the Company will indemnify and hold harmless each selling Holder, each of its officers, directors, partners and legal counsel, and each person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to
which registration, qualification or compliance has been effected pursuant to this Section 2, and each underwriter, if any, and each person who controls any underwriter within the meaning of Section 15 of the Securities Act, against all expenses,
claims, losses, damages or liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened, arising out of or based on any untrue statement (or alleged untrue statement)
of a material fact contained in any registration statement, prospectus, offering circular or other document, or any amendment or supplement thereto, incident to any such registration, qualification or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of the Securities Act, the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), any rule or regulation promulgated under the Securities Act or the Exchange Act or other federal or state law applicable to the Company in connection with any such
registration, qualification or compliance, and the Company will pay as incurred to each such Holder, each of its officers, directors, partners and legal counsel, and each person controlling such Holder, each such underwriter and each person who
controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, provided that the Company will not be liable in any
such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Holder, controlling person or underwriter and stated to be specifically for use therein, and further provided that the indemnity agreement contained in this Section 2.8(a) shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability of action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld. 
  
 (b) To the extent permitted by law, each Holder will, severally but not
jointly, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or compliance is being effected, indemnify the Company, each of its directors, officers, and legal counsel, each
underwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, and each other Holder, each of its
officers, directors, partners and legal counsel and each person controlling such Holder within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document, or any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company, such Holders, such directors, officers, persons, underwriters or control persons for any legal or any other expenses reasonably
incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue 
  

 11 

 statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by an instrument duly executed by such Holder and stated to be specifically for use therein; provided,
however, that the indemnity agreement contained in this Section 2.8(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which
consent shall not be unreasonably withheld. Notwithstanding the foregoing, the liability of each Holder under this subsection (b) shall be limited in an amount equal to the net proceeds to each such Holder of Registrable Securities sold as
contemplated herein. A Holder will not be required to enter into any agreement or undertaking in connection with any registration under this Section 2 providing for any indemnification or contribution on the part of such Holder greater than the
Holder’s obligations under this Section 2.8(b). 
  
 (c) Each
party entitled to indemnification under this Section 2.8 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual
knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct
the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided, further,
that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 2.8 unless the failure to give such notice is materially prejudicial to an Indemnifying
Party’s ability to defend such action and provided, further, that the Indemnifying Party shall not assume the defense for matters as to which there is a conflict of interest or separate and different defenses but shall bear the expense of such
defense nevertheless. 
  
 (d) If the indemnification provided for
in this Section 2.8 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such
indemnified party thereunder, shall to the extent permitted by applicable law, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect
the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statement(s) or omission(s) that resulted in such loss, claim, damage or liability, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to
state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission;
provided, however, that in no event shall any contribution by a Holder hereunder exceed the proceeds from the offering received by such Holder. 
  

 12 

 (e) The obligations of the Company and Holders under this Section 2.8 shall survive completion of any
offering of Registrable Securities in a registration statement and the termination of this Agreement. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry
of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation.

  
 2.9 Information by Holder. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such securities as shall reasonably be required to effect the registration of such Holder’s Registrable Securities. 
  
 2.10 Rule 144 Reporting. With a view to making available the benefits
of certain rules and regulations of the Commission which may at any time permit the sale of the Restricted Securities to the public without registration, after such time as a public market exists for the Common Stock of the Company, the Company
agrees to use its best efforts to: 
  
 (a) Make and keep public
information available, as those terms are defined in Rule 144 under the Securities Act, at all times after the effective date that the Company becomes subject to the reporting requirements of the Securities Act or the Exchange Act; 
  
 (b) File with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and 
  
 (c) So long as a Holder owns any Restricted Securities, furnish to such Holder upon request (i) a written statement by the Company as to its compliance
with the reporting requirements of said Rule 144 (at any time after ninety (90) days after the effective date of the first registration statement filed by the Company for an offering of its securities to the general public), and of the Securities
Act and the Exchange Act (at any time after it has become subject to such reporting requirements), (ii) a copy of the most recent annual or quarterly report of the Company and (iii) such other reports and documents of the Company and other
information in the possession of or reasonably obtainable by the Company as a Purchaser may reasonably request in availing itself of any rule or regulation of the Commission allowing a Purchaser to sell any such securities without registration.

  
 2.11 Transfer of Registration Rights. The rights to
cause the Company to register Registrable Securities pursuant to this Section 2 may be assigned by a Holder only to a transferee or assignee of Registrable Securities which (a) is a general partner, limited partner, retired partner, member or
retired member of the Holder, or (b) is an Affiliate of the Holder, or (c) is the Holder’s family member or a trust for the benefit of an individual Holder or his family members, or (d) acquires at least 250,000 shares (as appropriately
adjusted for stock splits and the like) of the Registrable Securities; provided, however, that, in the case of clause (d) above, Registrable 
  

 13 

 Securities held by multiple transferees or assignees of a Holder shall be aggregated for purposes of meeting the 250,000
share threshold if all such transferees or assignees have agreed in writing to allow one (1) representative to make all determinations and to take all actions relating to the Company’s registration of such Registrable Securities;
provided, further, that, in any such case, the Company be given prior written notice of such transfer and that such transfer may otherwise be effected in accordance with applicable securities laws. 
  
 2.12 Market Stand-Off Agreement. Each Holder agrees, in connection
with an initial public offering of the Company’s securities, (i) not to sell, make short sales of, loan, grant any options for the purchase of, or otherwise dispose of any Registrable Securities (other than those shares included in the
registration) without the prior written consent of the Company or the underwriters managing such initial underwritten public offering for a period of one hundred eighty (180) days after the date of such registration, provided that all holders of one
percent (1%) or more of the Company’s outstanding securities and all officers and directors of the Company who own stock or options to buy stock of the Company also agree to such restrictions and (ii) to execute any agreement reflecting (i)
above as may be requested by the underwriters at the time of the public offering. 
  
 2.13 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent of the holders of more than (i) sixty-six and two/thirds
percent (66 2/3%) in interest of the then issued and outstanding shares of Series A Preferred Stock (including
any shares of Common Stock issued upon a conversion thereof) and (ii) a majority in interest of the then issued and outstanding shares of Series B Preferred Stock (including any shares of Common Stock issued upon a conversion thereof), voting as
separate classes of Preferred Stock, enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or prospective holder any registration rights the terms of which are more favorable than the
registration rights granted to any Holder hereunder whose registration rights have not terminated pursuant to Section 2.14 below, unless such Holder shall waive this restriction in writing. 
  
 2.14 Termination of Registration Rights. The right of any Holder to
request registration or inclusion in any registration pursuant to this Agreement shall terminate on the fifth (5th)
year anniversary of the consummation by the Company of a Qualified Public Offering; provided, however, if the Company has not been subject to, or has not fully complied with, the provisions of the Exchange Act continuously for the
twelve (12) months preceding said five-year anniversary, then the registration rights granted under this Section 2 shall not terminate until the end of the next succeeding twelve (12) month period during which the Company has been continuously
subject to, and has complied with, the provisions of the Exchange Act; provided further, however, that the right of any Holder of Registrable Securities to request such registration shall terminate on the date when all of such
Holder’s shares may immediately be sold under Rule 144. 
  

 14 

 3. Major Investor’s Rights of Participation. 
  
 3.1 Right to Participate in New Issuances. 
  
 (a) The Company hereby grants, on the terms set forth in this Section 3, to
each Major Investor, the right of first refusal to purchase all or any part of such Major Investor’s pro rata share of the New Securities (as defined in Section 3.1(a) hereof) which the Company may, from time to time, propose to
sell and issue. Each Major Investor may purchase said New Securities on the same terms and at the same price at which the Company proposes to sell the New Securities. The pro rata share of each Major Investor, for purposes of this right of
participation, is the ratio of the total number of shares of Registrable Securities held by such Major Investor, to the total number of shares of Registrable Securities held by all Major Investors immediately prior to the issuance of the New
Securities. A Major Investor shall be entitled to apportion its right of first refusal among itself and its Affiliates, partners, retired partners, members, retired members and stockholders in such proportions as it deems appropriate, provided that
in every case, such Major Investor itself initially exercises its right of first refusal hereunder. 
  
 (b) “New Securities” shall mean any capital stock of the Company, whether now authorized or not, and any rights, options or warrants to
purchase said capital stock, and securities of any type whatsoever that are, or may become, convertible into said capital stock; provided, however, that “New Securities” does not include: (i) shares of capital stock issued
pursuant to any rights or agreements outstanding as of the date of this Agreement, or pursuant to any options or warrants outstanding as of the date of this Agreement; (ii) shares of Common Stock issued in connection with any stock split, stock
dividend or recapitalization by the Company; (iii) shares of Common Stock issued upon conversion of any shares of Series A Preferred Stock or Series B Preferred Stock; (iv) securities offered pursuant to a registration statement filed under the
Securities Act; (v) securities issued for consideration other than cash pursuant to the acquisition of another corporation by the Company by merger, purchase of substantially all of the assets or other reorganization; (vi) 4,500,000 shares of Common
Stock reserved in connection with options issued or to be issued under the Company’s 2001 Stock Option Plan, as amended or restated, to officers, directors, employees, advisors or consultants of the Company, which number of reserved shares may
be increased by the approval of at least a majority of the Company’s Board of Directors (provided that such majority includes all directors elected exclusively by the holders of Preferred Stock (the “Preferred Directors”))
(notwithstanding the foregoing, any shares of Common Stock issued or deemed to be issued primarily for equity financing purposes shall be New Securities); (vii) any securities issued or issuable to financial institutions, equipment lessors or other
commercial lenders in connection with commercial credit agreements, equipment financings or other similar financings, which are approved by at least a majority of the Company’s Board of Directors (provided that such majority includes all
Preferred Directors) (notwithstanding the foregoing, any shares of Common Stock issued or deemed to be issued primarily for equity financing purposes shall be New Securities); and (viii) any securities issued or issuable pursuant to agreements to
license technology and/or provide sponsored research, which are approved by at least a majority of the Company’s Board of Directors (provided that such majority includes all Preferred Directors) (notwithstanding the foregoing, any shares of
Common Stock issued or deemed to be issued primarily for equity financing purposes shall be New Securities). 
  

 15 

 (c) In the event the Company proposes to undertake an issuance of New Securities, it shall give to the
Major Investors written notice (the “Notice”) of its intention, identifying the proposed issues and describing the New Securities, the price, the terms upon which the Company proposes to issue the same. Each Major Investor shall have
fifteen (15) days from the date of receipt of the Notice to agree to purchase any or all of its pro rata share of the New Securities for the price and upon the terms specified in the Notice by giving written notice to the Company and
stating therein the quantity of New Securities to be purchased. If not all of the eligible Major Investors elect to purchase their pro rata share of the New Securities, then the Company shall promptly notify in writing those eligible Major
Investors who have elected to purchase their pro rata share of such New Securities and shall offer to such Major Investors the right to acquire such unsubscribed shares. Each of such Major Investors shall have five (5) days after receipt of
such notice to notify the Company of its election to purchase all or a portion thereof of the unsubscribed shares. The Major Investors electing to purchase shares of the New Securities may condition their agreement to purchase such shares upon the
consummation of substantially the entire issuance described by the Company in its notice. 
  
 (d) In the event the Major Investors fail to exercise in full the right of participation within said twenty (20) day period, the Company shall have sixty (60) days thereafter to sell the New Securities respecting
which the rights of the Major Investors were not exercised, at a price and upon general terms no more favorable to the purchasers thereof than specified in the Notice. In the event the Company has not sold the New Securities within said sixty (60)
day period, the Company shall not thereafter issue or sell any New Securities without first offering such securities to the Major Investors in the manner provided above. 
  
 3.2 Assignment of Company’s Right of First Refusal. If at any time the Company determines not to exercise fully
a right of first refusal it has to repurchase any of its securities, it shall promptly (and in every case at least fifteen (15) days prior to the expiration of those rights) assign the unexercised rights to the Major Investors and give them written
notice of such assignment (the “Assignment Notice”). The Assignment Notice shall identify the person (the “Transferor”) proposing to transfer the securities as to which the right of first refusal applies, the securities proposed
to be transferred, and the price, terms and conditions of the proposed transfer. 
  
 (a) Each Major Investor may exercise the right of first refusal assigned by the Company so as to purchase its share of all such securities described in the Assignment Notice. A Major Investor may exercise its assigned
right of first refusal by giving written notice (the “RFR Notice”) to the Transferor, with a copy to the Company, within ten (10) days after the Assignment Notice, specifying the maximum number of shares such Major Investor wishes to buy
under the assigned right. Each Major Investor who so elects to buy part of the securities proposed to be transferred shall hereinafter be referred to as a “Buyer.” The securities shall be allocated among all Buyers pro rata up to the
maximum amount specified in each RFR Notice. Each Buyer’s pro rata share shall be equal to the ratio of (a) the number of shares of the Company’s Common Stock 
  

 16 

 (including all shares of Common Stock issued or issuable upon conversion of the Shares) of which such Buyer is deemed to
be a holder to (b) the total number of shares of the Company’s Common Stock (including all shares of Common Stock issued or issuable upon conversion of the Shares or upon the exercise of any outstanding warrants or options) held by all Buyers.

  
 (b) If the Company’s applicable right of first refusal
to repurchase its securities provides that it can be exercised only against all, and not some lesser portion of, the securities the Transferor proposes to transfer, then if after application of Section 3.2(a) above the Company and the Buyers have
not collectively elected to purchase all of such securities proposed to be transferred by the Transferor, the Transferor may consummate the proposed transfer as permitted by his agreement with the Company granting the Company its right of first
refusal, subject to any other restrictions on transfer of such securities. However, if the Company’s applicable right of first refusal permits it to be exercised against less than all of the securities the Transferor proposes to transfer, then
the Transferor may consummate the proposed transfer only to the extent there are shares of the securities as to which neither the Company, the Buyers, nor any other assignee of the Company has exercised a right of first refusal, and the transfer
must be as permitted by his agreement with the Company granting the Company its right of first refusal and will be subject to any other restrictions on transfer of such securities. 
  
 (c) The exclusions established by Section 3.1(a) above shall not be applicable to the rights established by this Section
3.2. 
  
 3.3 Assignment of Company’s Right of
Repurchase. If at any time the Company determines not to exercise fully a right it has to repurchase any of its securities, it shall promptly (and in every case at least fifteen (15) days prior to the expiration of those rights) assign the
unexercised rights to the Major Investors and give them written notice of such assignment (the “Assignment Notice”). The Assignment Notice shall identify the person (the “Security Holder”) holding the securities as to which the
right of repurchase exists, a description of the securities, and the price, terms and conditions of the repurchase. 
  
 (a) Each Major Investor may exercise the right of repurchase assigned by the Company so as to purchase its share of all such securities described in the
Assignment Notice. A Major Investor may exercise its assigned right of repurchase by giving written notice (the “Repurchase Notice”) to the Security Holder and the Company within ten (10) days after the Assignment Notice, specifying the
maximum number of shares such Major Investor wishes to buy under the assigned right. Each Major Investor who so elects to buy part of the securities subject to repurchase shall hereinafter be referred to as a “Buyer.” The securities shall
be allocated among all Buyers pro rata up to the maximum amount specified in each Repurchase Notice. Each Buyer’s pro rata share shall be equal to the ratio of (a) the number of shares of the Company’s Common Stock (including all shares of
Common Stock issued or issuable upon conversion of the Series A Preferred Stock) of which such Buyer is deemed to be a holder to (b) the total number of shares of the Company’s Common Stock (including all shares of Common Stock issued or
issuable upon conversion of the Series A Preferred Stock or upon the exercise of any outstanding warrants or options) held by all Buyers. 
  

 17 

 (b) The exclusions established by Section 3.1(a) above shall not be applicable to the rights established
by this Section 3.3. 
  
 3.4 Amendment and Waiver of Rights of
Participation. The rights of participation established by this Section 3 may be amended or any provision waived only with the written consent of (i) Major Investors holding at least sixty-six and two-thirds percent (66 2/3%) of the Series A Preferred Stock held by all Major Investors; and (ii) Major Investors holding at least a
majority in interest of the Series B Preferred Stock held by all Major Investors. Any amendment or waiver effected in accordance with this Section 3.4 shall be binding upon each Major Investor and the Company. By acceptance of any benefits under
this Agreement, all Major Investors hereby agree to be bound by the provisions of this Agreement as the same may be hereafter amended or waived pursuant to this Section 3.4. 
  
 3.5 Termination of Rights of Participation. The rights of participation of each Major Investor granted under this
Section 3 shall terminate and be of no further force or effect upon the closing of a Qualified Public Offering (as defined in Article IV, Section 2(b)(i) of the Company’s Certificate of Incorporation). 
  
 3.6 Transfer of Right of Participation. The rights of participation of
each Major Investor under this Section 3 may be transferred to the same parties, subject to the same restrictions on transfers, as set forth for registration rights in Section 2.11 above. 
  
 3.7 To the extent the Company has failed to comply in any respect with the
provisions of Section 3 of the Investors’ Rights Agreement dated as of May 25, 2001 (which is amended and restated by this Agreement) in connection with the offering and issuance of the Series B Preferred Stock, each Holder hereby irrevocably
consents to, and waives any claim arising from, such failure to comply. 
  
 4. Other Warranties and Covenants. 
  
 4.1
Stock Options. As of the date hereof, the Company represents and warrants that (x) it has adopted the Plan, whereby officers, directors, employees, advisors and consultants of the Company are eligible to receive options (collectively,
“Options”) to purchase shares of the Common Stock and (y) 4,500,000 shares of Common Stock have been reserved under the Plan upon the issuance of Options. The Company covenants and agrees that, unless the Company’s Board of Directors
unanimously approves otherwise, all Options issued pursuant to the Plan after the date of this Agreement shall vest as follows: twenty-five percent (25%) of the total grant will vest after twelve (12) months of employment or engagement, and the
remainder of the total grant will vest in equal, monthly installments over the thirty-six (36) months thereafter. 
  
 4.2 Confidentiality of Records. Each Investor agrees to use, and to use its commercially reasonable efforts to insure that its authorized
representatives use, the same degree of care as such Investor uses to protect its own confidential information to keep confidential any information furnished to it which the Company identifies as being confidential or proprietary (so long as such
information is not in the public domain), except that such Investor may disclose such 
  

 18 

 proprietary or confidential information to any partner, subsidiary or parent of such Investor for the purpose of
evaluating its investment in the Company as long as such partner, subsidiary or parent is advised of the confidentiality provisions of this Section 4.2. 
  
 4.3 Reservation of Common Stock. The Company covenants and agrees that at all times it will reserve and keep available, solely for issuance and
delivery upon the conversion of the Series A Preferred Stock and Series B Preferred Stock into Conversion Stock, all Common Stock issuable from time to time upon such conversion. The Company further covenants and agrees that it shall comply with all
applicable federal and state securities laws in connection with the conversion of any Series A Preferred Stock or Series B Preferred Stock into Conversion Stock. 
  
 4.4 Proprietary Information Agreements. The Company agrees to use its best efforts to require, as a condition to
employment with the Company, that each and every key employee and consultant execute (i) a proprietary information agreement and (ii) a confidentiality and non-disclosure agreement in forms reasonably acceptable to the Company and the Investors.

  
 4.5 Company’s Right of First Refusal Under Stock
Option Plan. The Company covenants and agrees that, on and after the date hereof, the Plan shall contain a provision explicitly providing that the Company shall have the right to assign its rights of first refusal upon the sale or other transfer
of shares underlying a stock option. 
  
 4.6 Company’s
Right of Repurchase. The Company covenants and agrees that, on and after the date hereof, the Company’s form of Early Exercise Stock Purchase Agreement shall contain a provision explicitly giving the Company the right to assign its Purchase
Option (as defined and in accordance with the Early Exercise Stock Purchase Agreement). 
  
 4.7 Reimbursement of Director’s Expenses. The Company shall promptly reimburse each Director all reasonable expenses incurred in connection with attending any meetings of the Board of Directors or
performing any duties as a Director or otherwise acting for the benefit of the Company. 
  
 4.8 Director’s Insurance. The Company will obtain and maintain directors’ and officers’ liability insurance with appropriate coverage as may be determined by a majority of the non-employee
directors of the Company when those same directors determine it is appropriate, but in any case prior to the first public offering of the Company securities. 
  
 4.9 Board Approval of Stock Issuances. The Company will not, without the approval of the Board of Directors, issue any of its capital stock or
grant any option, warrant or other rights to subscribe for, purchase or acquire any of its capital stock. 
  
 4.10 Repurchase. If the Company issues any shares of its Common Stock to any director, officer, employee, consultant or other service provider in
connection with services provided or to be provided to the Company, the stock shall be issued with a repurchase option that shall provide that upon such person’s termination of employment or service with the Company, with or without cause, the
Company or its assignee (to the extent permissible under applicable securities 
  

 19 

 laws and other laws) shall have the option to purchase at cost any unvested shares of stock held by such person. The
parties acknowledge that, notwithstanding the foregoing, the Company has entered into a Stock Repurchase Agreement with Michael D. Hooven and Susan Spies whereby the Company, under certain circumstances, has the option to repurchase its shares at
fair market value, as set forth in such agreement. The vesting of such shares of stock shall be as set forth in Section 4.1 above. Such stock shall also be issued pursuant to an agreement prohibiting the transfer of any unvested shares. All stock
options and other stock equivalents issued after the date of this Agreement to directors, officers, employees, consultants or other service providers shall provide that any such options or other rights will be subject to such vesting provisions and
prohibition on transfer of unvested shares. 
  
 4.11 First
Refusal. If the Company issues any shares of its Common Stock to any director, officer, employee, consultant or other service provider in connection with services provided or to be provided to the Company, the stock shall be issued subject to a
standard right of first refusal to the Company (and its assignees) on any sale or other disposition. Commencing on the date hereof, all agreements relating to the issuance of stock options and other stock equivalents issued after the date of this
Agreement to directors, officers, employees, consultants or other service providers shall provide that any stock issued upon exercise of such options or other rights will be subject to such a right of first refusal. The Company shall not terminate
any right of first refusal currently in effect affecting capital stock previously issued to directors, officers, employees, consultants, or other service providers. 
  
 4.12 Key Person Life Insurance. The Company has obtained as of the date hereof, from financially sound and reputable
insurers, term life insurance on the life of Mike Hooven in the amount of $2,000,000. 
  
 4.13 Termination of Certain Covenants. The covenants and agreements set forth in this Section 4 (other than Sections 4.2 and 4.3, which shall remain in effect) shall terminate and be of no further force or
effect upon the earlier to occur of (i) the closing of a Qualified Public Offering (as defined in Article IV, Section 2(b)(i) of the Company’s Certificate of Incorporation) and (ii) when less than one million (1,000,000) shares of the Preferred
Stock (exclusive of any shares of Conversion Stock) are issued and outstanding. 
  
 5. Miscellaneous. 
  
 5.1
Entire Agreement. This Agreement, the Purchase Agreement and the other documents delivered pursuant thereto, constitute the full and entire agreement among the Company and the Investors with respect to the subject matter hereof and thereof
and supersede all prior agreements and undertakings, written and oral, with respect to the subject matter hereof and thereof (including, without limitation, the Investors’ Rights Agreement dated May 25, 2001, which this Agreement amends and
restates). 
  
 5.2 Waivers and Amendments. With the written
consent of: (i) the Company; (ii) the holders of more than sixty-six and two/thirds percent (66 2/3%) in interest
of the then issued and outstanding shares of Series A Preferred Stock (including any shares of Common Stock issued upon 
  

 20 

 a conversion thereof); and (iii) the holders of more than a majority in interest of the then issued and outstanding
shares of Series B Preferred Stock (including any shares of Common Stock issued upon a conversion thereof) (voting as separate classes of Preferred Stock), the obligations of the Company and the rights of the Holders under this Agreement may be
waived (either generally or in a particular instance, either retroactively or prospectively and either for a specified period of time or indefinitely), and with the same consent, the Company, when authorized by resolution of its Board of Directors,
may amend this Agreement or enter into a supplementary agreement for the purpose of adding any provisions of this Agreement; provided, however, that no amendment of this Agreement shall materially and adversely affect the rights of a
Holder in a manner that discriminates against such Holder vis-a-vis other Holders without such Holder’s written consent; provided further, however, that no consent or amendment shall be necessary to add Investors to this
Agreement in connection with their purchase of Series B Preferred Stock from the Company. Neither this Agreement nor any provisions hereof may be changed, waived, discharged or terminated orally, but only by a signed statement in writing. Any
amendment, waiver or supplementary agreement effected in accordance with this Section shall be binding upon each Holder of any Registrable Securities then outstanding, each future Holder of all such Registrable Securities and the Company.

  
 5.3 Notices. All notices and other communications
required or permitted hereunder shall be in writing and, except as otherwise noted herein, shall be deemed effectively given (i) upon personal delivery, (ii) upon delivery by an internationally recognized courier (such as Fedex or DHL), (iii) when
sent by confirmed telex or facsimile, if sent during normal business hours of the recipient; if not sent during normal business hours of the recipient, then on the next business day, or (iv) five (5) days after having been sent by registered or
certified mail, postage prepaid; addressed: (a) if to the Company, to it at 6033 Schumacher Park Drive, West Chester, Ohio 45069, Attention: President (or at such other address as the Company shall have furnished to the Stockholders in writing), and
(b) if to a Holder, to such Holder at the latest address of such Holder set forth on the Company’s records. 
  
 5.4 Descriptive Headings and Construction. The descriptive headings herein have been inserted for convenience only and shall not be deemed to limit
or otherwise affect the construction of any provisions hereof. A reference herein to any Section shall be deemed to include a reference to every subsection thereof. All pronouns contained herein, and any variations thereof, shall be deemed to refer
to the masculine, feminine or neuter, singular or plural, as to the identity of the parties hereto may require. 
  
 5.5 Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of New York as applied to agreements among New
York residents, made and to be performed entirely within the State of New York. 
  
 5.6 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which when taken together shall constitute one and the
same instrument. 
  

 21 

 5.7 Expenses. If any action at law or in equity (including arbitration) is necessary to enforce or
interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 5.8 Successors and Assigns. Except as otherwise expressly provided in
this Agreement, this Agreement shall benefit and bind the successors, assigns, heirs, executors and administrators of the parties to this Agreement and shall inure to the benefit of and be enforceable by each person who shall be a Holder of
Registrable Securities from time to time; provided, however, that prior to the receipt by the Company of adequate written notice of the transfer of any Registrable Securities specifying the full name and address of the transferee, the
Company may deem and treat the person listed as the holder of such shares in its records as the absolute owner and holder of such shares for all purposes, including the payment of dividends or any redemption price. 
  
 5.9 Severability. If any provisions of this Agreement is held to be
unenforceable under applicable law, it shall be interpreted, to the extent possible, to enhance its enforceability in order to achieve the intent of the parties to this Agreement. But if no feasible construction would save the provision, the parties
agree to renegotiate such provision in good faith. In the event the parties cannot reach a mutually agreeable and enforceable replacement for such provision, its invalidity, illegality or unenforceability shall not affect any other provision of this
Agreement; rather this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein; provided, however, no such severability shall be effective if it materially changes the economic benefit of
this Agreement to any party. The invalidity of any provision of this Agreement as applied to certain circumstances shall not affect the validity or enforceability of such provision as applied to other circumstances or any other provisions of this
Agreement. 
  
 5.10 Stock Splits. All references to numbers
of shares in this Agreement shall be appropriately adjusted to reflect any stock dividend, split, combination or other recapitalization of shares by the Company occurring after the date of this Agreement. 
  
 5.11 Survival. The representations, warranties, covenants, and
agreements made herein shall survive any investigation made by any Holder and the closing of the transactions contemplated hereby. All statements as to factual matters contained in any certificate or other instrument delivered by or on behalf of the
Company pursuant hereto in connection with the transactions contemplated hereby shall be deemed to be representations and warranties by the Company hereunder solely as of the date of such certificate or instrument. 
  
 5.12 Delays or Omissions. It is agreed that no delay or omission to
exercise any right, power, or remedy accruing to any Holder, upon any breach, default or noncompliance of the Company under this Agreement shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach,
default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character on any Holder’s part of
any breach, default or noncompliance under this Agreement or any waiver on such Holder’s part of any 
  

 22 

 provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set
forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to Holders, shall be cumulative and not alternative. 
  
 5.13 Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company shall issue additional shares of the Series B
Preferred Stock after the date hereof, any purchaser of such shares may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement and shall be deemed an “Investor” hereunder.

  
 5.14 Further Assurances. Each of the parties hereto
shall execute and deliver such instruments and take such other actions as the other parties may reasonably request in order to carry out the intent of this Agreement. 
  
 5.15 Aggregation of Stock. All securities held or acquired by Affiliated entities or persons shall be aggregated
together for the purpose of determining the availability of any rights under this Agreement. 
  
 5.16 Rights of Holders. Each Holder shall have the absolute right to exercise or refrain from exercising any right or rights that such Holder may have by reason of this Agreement including without limitation,
the right to consent to the wavier of any obligation of the Company and to enter into an agreement with the Company for the purpose of modifying this Agreement. Each such Holder shall not incur any liability to any other Holder with respect to
exercising or refraining from exercising any such right or rights. 
  
 [remainder of page intentionally left blank] 
  

 23 

 IN WITNESS WHEREOF, this Amended and Restated Investors’ Rights Agreement has been duly executed on
the day and year first set forth above. 
  

			
	“COMPANY”
	
	 ATRICURE, INC.

		
	 By:
	 	 /s/ Michael D. Hooven

	 	 	 Michael D. Hooven

	 	 	 President

  

					
	 	  	24	  	Signature Page to Investors’ Rights Agreement

			
	“INVESTORS”
	
	 U.S. VENTURE PARTNERS VIII, L.P.
 USVP VIII AFFILIATES FUND, L.P.
 USVP ENTREPRENEUR PARTNERS VIII-A L.P.
 USVP ENTREPRENEUR PARTNERS VIII-B L.P.

	 By:
	 	 Presidio Management Group VIII, L.L.C.,
 The General Partner of Each

		
	 By:
	 	 /s/ Michael P. Maher

	 	 	 Michael P. Maher
 Attorney-In-Fact

	
	 CHARTER VENTURES IV, L.P.

	 By:
	 	 Charter Ventures IV Partners, LLC,

	 Its:
	 	 General Partner

		
	 By:
	 	  

	 	 	 A. Barr Dolan

	 	 	 Managing Member

	
	 CHARTER ENTREPRENEURS FUND IV, L.P.

	 By:
	 	 Charter Ventures IV Partners, LLC,

	 Its:
	 	 General Partner

		
	 By:
	 	  

	 	 	 A. Barr Dolan
 Managing Member

	
	 CHARTER ADVISORS FUND IV, L.P.

	 By:
	 	 Charter Ventures IV Partners, LLC,

	 Its:
	 	 General Partner

		
	 By:
	 	  

	 	 	 A. Barr Dolan
 Managing Member

  

					
	 	  	25	  	Signature Page to Investors’ Rights Agr.

			
	“INVESTORS”
	
	 U.S. VENTURE PARTNERS VIII, L.P.
 USVP VIII AFFILIATES, L.P.
 USVP ENTREPRENEUR PARTNERS VIII-A, L.P.
 USVP ENTREPRENEUR PARTNERS VIII-B,
L.P.

	 By:
	 	 Presidio Management Group VIII, L.L.C.,
 The General Partner of Each

		
	 By:
	 	  

	 	 	 Michael P. Maher
 Attorney-in-Fact

	
	 CHARTER VENTURES IV, L.P.

	 By:
	 	 Charter Ventures IV Partners, LLC.,

	 Its:
	 	 General Partner

		
	 By:
	 	 /s/ A. Barr Dolan

	 	 	 A. Barr Dolan
 Managing Member

	
	 CHARTER ENTREPRENEURS FUND IV, L.P.

	 By:
	 	 Charter Ventures IV Partners, LLC,

	 Its:
	 	 General Partner

		
	 By:
	 	 /s/ A. Barr Dolan

	 	 	 A. Barr Dolan
 Managing Member

	
	 CHARTER ADVISORS FUND IV, L.P.

	 By:
	 	 Charter Ventures IV Partners, LLC.,

	 Its:
	 	 General Partner

		
	 By:
	 	 /s/ A. Barr Dolan

	 	 	 A. Barr Dolan
 Managing Member

  

					
	 	  	26	  	Signature Page to Investors’ Rights Agr.

			
	Investors (cont.):
	
	 PARTISAN MANAGEMENT GROUP, INC.

		
	 By:
	 	 /s/ Karen J. Cassidy

	 Name:
	 	 Karen J. Cassidy

	 Title:
	 	 Managing Director

	
	 THE WELDON FOUNDATION, INC.

		
	 By:
	 	  

	 Name:
	 	 Norman R. Weldon

	 Title:
	 	 President

	
	INVESTORS (CONT.):
	
	  

	 UTAKO K. HUDSON

	
	  

	 CAROL J. WELDON

	
	  

	 FRANK M. FISCHER

	
	 /s/ Karen J. Cassidy

	 KAREN J. CASSIDY

	
	  

	 DONALD C. HARRISON, M.D.

	
	  

	 LOWELL S. LIFSCHULTZ

  

					
	 	  	27	  	Signature Page to Investors’ Rights Agr.

			
	Investors (cont.):
	
	 PARTISAN MANAGEMENT GROUP, INC.

		
	 By:
	 	  

	 Name:
	 	 Karen J. Cassidy

	 Title:
	 	 Managing Director

	
	 THE WELDON FOUNDATION, INC.

		
	 By:
	 	 /s/ Norman R. Weldon

	 Name:
	 	 Norman R. Weldon

	 Title:
	 	 President

	
	INVESTORS (CONT.):
	
	  

	 Utako K. Hudson

	
	 /s/ Carol J. Weldon

	 Carol J. Weldon

	
	  

	 Frank M. Fischer

	
	  

	 Karen J. Cassidy

	
	  

	 Donald C. Harrison, M.D.

	
	  

	 Lowell S. Lifschultz

  

					
	 	  	28	  	Signature Page to Investors’ Rights Agr.

			
	Investors (cont.):
	
	 PARTISAN MANAGEMENT GROUP, INC.

		
	 By:
	 	  

	 Name:
	 	 Karen J. Cassidy

	 Title:
	 	 Managing Director

	
	 THE WELDON FOUNDATION, INC.

		
	 By:
	 	  

	 Name:
	 	 Norman R. Weldon

	 Title:
	 	 President

	
	INVESTORS (CONT.):
	
	 /s/ Utako K. Hudson

	 UTAKO K. HUDSON

	
	  

	 CAROL J. WELDON

	
	  

	 FRANK M. FISCHER

	
	  

	 KAREN J. CASSIDY

	
	  

	 DONALD C. HARRISON, M.D.

	
	  

	 LOWELL S. LIFSCHULTZ

  

					
	 	  	29	  	Signature Page to Investors’ Rights Agr.

			
	Investors (cont.):
	
	 PARTISAN MANAGEMENT GROUP, INC.

		
	 By:
	 	  

	 Name:
	 	 Karen J. Cassidy

	 Title:
	 	 Managing Director

	
	 THE WELDON FOUNDATION, INC.

		
	 By:
	 	  

	 Name:
	 	 Norman R. Weldon

	 Title:
	 	 President

	
	INVESTORS (CONT.):
	
	  

	 UTAKO K. HUDSON

	
	  

	 CAROL J. WELDON

	
	 /s/ Frank M. Fischer

	 FRANK M. FISCHER

	
	  

	 KAREN J. CASSIDY

	
	  

	 DONALD C. HARRISON, M.D.

	
	  

	 LOWELL S. LIFSCHULTZ

  

					
	 	  	30	  	Signature Page to Investors’ Rights Agr.

			
	Investors (cont.):
	
	 PARTISAN MANAGEMENT GROUP, INC.

		
	 By:
	 	  

	 Name:
	 	 Karen J. Cassidy

	 Title:
	 	 Managing Director

	
	 THE WELDON FOUNDATION, INC.

		
	 By:
	 	  

	 Name:
	 	 Norman R. Weldon

	 Title:
	 	 President

	
	INVESTORS (CONT.):
	
	  

	 UTAKO K. HUDSON

	
	  

	 CAROL J. WELDON

	
	  

	 FRANK M. FISCHER

	
	  

	 KAREN J. CASSIDY

	
	 /s/ Donald C. Harrison

	 DONALD C. HARRISON, M.D.

	
	  

	 LOWELL S. LIFSCHULTZ

  

					
	 	  	31	  	Signature Page to Investors’ Rights Agr.

			
	Investors (cont.):
	
	 PARTISAN MANAGEMENT GROUP, INC.

		
	 By:
	 	  

	 Name:
	 	 Karen J. Cassidy

	 Title:
	 	 Managing Director

	
	 THE WELDON FOUNDATION, INC.

		
	 By:
	 	  

	 Name:
	 	 Norman R. Weldon

	 Title:
	 	President
	
	INVESTORS (CONT.):
	
	  

	 UTAKO K. HUDSON

	
	  

	 CAROL J. WELDON

	
	  

	 FRANK M. FISCHER

	
	  

	 KAREN J. CASSIDY

	
	  

	 DONALD C. HARRISON, M.D.

	
	 /s/ Lowell S. Lifschultz

	 LOWELL S. LIFSCHULTZ

  

					
	 	  	32	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	 /s/ C.L. Mazzola

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE

	 FOR THE CHRISTIAN L. MAZZOLA

	 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF. M.D. AND AMY

	 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	33	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE

	 FOR THE CHRISTIAN L. MAZZOLA

	 REVOCABLE TRUST DATED JULY 29, 1993

	
	 /s/ Richard J. D’Augustine

	 RICHARD J. D’AUGUSTINE

	
	 /s/ Merida A. D’Augustine

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF, M.D. AND AMY

	 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	34	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE

	 FOR THE CHRISTIAN L. MAZZOLA

	 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	 /s/ Michael D. Hooven

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF, M.D. AND AMY

	 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	35	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE
 FOR THE CHRISTIAN L. MAZZOLA
 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	 /s/ Karen P. Robards

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF, M.D. AND AMY
 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	36	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE
 FOR THE CHRISTIAN L. MAZZOLA
 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	 /s/ Raymond W. Ogle

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF, M.D. AND AMY
 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	37	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE
 FOR THE CHRISTIAN L. MAZZOLA
 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	 /s/ William P. Santamore

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF, M.D. AND AMY
 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	38	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE
 FOR THE CHRISTIAN L. MAZZOLA
 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	 /s/ Stewart H. Greenfield

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF, M.D. AND AMY
 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	39	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE
 FOR THE CHRISTIAN L. MAZZOLA
 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	 /s/ Robert A. Kline

	 ROBERT A. KLINE

	
	  

	 RANDALL WOLF, M.D. AND AMY
 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	40	  	Signature Page to Investors’ Rights Agr.

	
	Investors (cont.):
	
	  

	 CHRISTIAN L. MAZZOLA, AS TRUSTEE
 FOR THE CHRISTIAN L. MAZZOLA
 REVOCABLE TRUST DATED JULY 29, 1993

	
	  

	 RICHARD J. D’AUGUSTINE

	
	  

	 MERIDA A. D’AUGUSTINE

	
	  

	 MICHAEL D. HOOVEN

	
	  

	 KAREN P. ROBARDS

	
	  

	 RAYMOND W. OGLE

	
	  

	 WILLIAM P. SANTAMORE, PH.D.

	
	  

	 STEWART H. GREENFIELD

	
	  

	 ROBERT A. KLINE

	
	 /s/ Randall Wolf            /s/ Amy
Sternstein

	 RANDALL WOLF, M.D. AND AMY
 STERNSTEIN, HUSBAND AND WIFE

  

					
	 	  	41	  	Signature Page to Investors’ Rights Agr.

			
	INVESTORS (CONT.):
	
	NEW ENGLAND PARTNERS CAPITAL, L.P.
	By: NEP Capital, LLP
	Its: General Partner
		
	By:	 	 /s/ John Rousseau, Jr

	Name:	 	John Rousseau, Jr.
	Title:	 	President
	
	FOUNDATION MEDICAL PARTNERS, L.P.
	By: Foundation Medical Managers, LLC
		
	By:	 	  

	 	 	Lee R.Wrubel, M.D.
	 	 	Managing Member
	
	GREENFIELD FAMILY L.P.
	By: Stewart H. Greenfield,
	Its: General Partner
		
	By:	 	  

	Name:	 	Stewart H. Greenfield
	
	 CAMDEN PARTNERS STRATEGIC FUND II A, L.P.
 CAMDEN PARTNERS STRATEGIC FUND II B, L.P.

	By: Camden Partners Strategic II, LLC.
	Its: General Partner
		
	By:	 	  

	Name:	 	Richard M. Johnston
	Title:	 	Managing Member

  

					
	 	  	42	  	Signature Page to Investors’ Rights Agr.

			
	INVESTORS (CONT.):
	
	NEW ENGLAND PARTNERS CAPITAL, L.P.
	By: NEP Capital, LLP
	Its: General Partner
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	FOUNDATION MEDICAL PARTNERS, L.P.
	By: Foundation Medical Managers, LLC
		
	By:	 	 /s/ Lee R. Wrubel

	 	 	Lee R.Wrubel, M.D.
	 	 	Managing Member
	
	GREENFIELD FAMILY L.P.
	By: Stewart H. Greenfield,
	Its: General Partner
		
	By:	 	  

	Name:	 	Stewart H. Greenfield
	
	 CAMDEN PARTNERS STRATEGIC FUND II A, L.P.
 CAMDEN PARTNERS STRATEGIC FUND II B, L.P.

	By: Camden Partners Strategic II, LLC.
	Its: General Partner
		
	By:	 	  

	Name:	 	Richard M. Johnston
	Title:	 	Managing Member

  

					
	 	  	43	  	Signature Page to Investors’ Rights Agr.

			
	INVESTORS (CONT.):
	
	NEW ENGLAND PARTNERS CAPITAL, L.P.
	By: NEP Capital, LLP
	Its: General Partner
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	FOUNDATION MEDICAL PARTNERS, L.P.
	By: Foundation Medical Managers, LLC
		
	By:	 	  

	 	 	Lee R.Wrubel, M.D.
	 	 	Managing Member
	
	GREENFIELD FAMILY L.P.
	By: Stewart H. Greenfield,
	Its: General Partner
		
	By:	 	 /s/ Stewart H. Greenfield

	Name:	 	Stewart H. Greenfield
	
	 CAMDEN PARTNERS STRATEGIC FUND II A, L.P.
 CAMDEN PARTNERS STRATEGIC FUND II B, L.P.

	By: Camden Partners Strategic II, LLC.
	Its General Partner
		
	By:	 	  

	Name:	 	Richard M. Johnston
	Title:	 	Managing Member

  

					
	 	  	44	  	Signature Page to Investors’ Rights Agr.

			
	INVESTORS (CONT.):
	
	NEW ENGLAND PARTNERS CAPITAL, L.P.
	By: NEP Capital, LLP
	Its: General Partner
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	FOUNDATION MEDICAL PARTNERS, L.P.
	By: Foundation Medical Managers, LLC
		
	By:	 	  

	 	 	Lee R.Wrubel, M.D.
	 	 	Managing Member
	
	GREENFIELD FAMILY L.P.
	By: Stewart H. Greenfield,
	Its: General Partner
		
	By:	 	  

	Name:	 	Stewart H. Greenfield
	
	 CAMDEN PARTNERS STRATEGIC FUND II A, L.P.
 CAMDEN PARTNERS STRATEGIC FUND II B, L.P.

	By: Camden Partners Strategic II, LLC.
	Its: General Partner
		
	By:	 	 /s/ Richard M. Johnston

	Name:	 	Richard M. Johnston
	Title:	 	Managing Member

  

					
	 	  	45	  	Signature Page to Investors’ Rights Agr.

					
	 	 	INVESTORS (CONT.):
		
	 	 	DUKE UNIVERSITY SPECIAL VENTURES FUND, INC.
			
	 /s/ Neal Triplett

	 	By:	 	 /s/ David R. Shumate

	Neal Triplett, Assistant Director	 	Name:	 	David R. Shumate
	 	 	Title:	 	Authorized Agent
		
	 	 	  

	 	 	ROGER STERN

  

					
	 	  	46	  	Signature Page to Investors’ Rights Agr.

			
	INVESTORS (CONT.):
	
	CAMDEN PARTNERS STRATEGIC FUND II B, L.P.
	 By: Camden Partners Strategic II, LLC.

	 Its: General Partner

		
	 By:
	 	  

	 Name:
	 	 Richard M. Johnston

	 Title:
	 	 Managing Member

	
	DUKE UNIVERSITY SPECIAL VENTURES FUND, INC.
		
	 By:
	 	  

	 Name:
	 	 David R. Shumate

	 Title:
	 	 Authorized Agent

	
	 /s/ Roger Stern

	 ROGER STERN

  

					
	 	  	47	  	Signature Page to Investors’ Rights Agr.

			
	INVESTORS (CONT.):
	
	DUKE UNIVERSITY SPECIAL VENTURES FUND, INC.
		
	 By:
	 	  

	 Name:
	 	 David R. Shumate

	 Title:
	 	 Authorized Agent

	
	  
  

	 ROGER STERN

	
	 O STREET CORPORATION

		
	 By:
	 	 /s/ Curtin Winsor

	 Name:
	 	 Curtin Winsor

	 Title:
	 	 President

  

					
	 	  	48	  	Signature Page to Investors’ Rights Agr.

			
	INVESTORS (CONT.):
	
	DUKE UNIVERSITY SPECIAL VENTURES FUND, INC.
		
	 By:
	 	  

	 Name:
	 	 David R. Shumate

	 Title:
	 	 Authorized Agent

	
	  
  

	 ROGER STERN

	
	 O STREET CORPORATION

		
	 By:
	 	  

	 Name:
	 	 Curtin Winsor

	 Title:
	 	 President

	
	 /s/ Elizabeth H. Lifschultz

	 ELIZABETH H. LIFSCHULTZ

  

					
	 	  	49	  	Signature Page to Investors’ Rights Agr.

 EXHIBIT A 
  

SCHEDULE OF INVESTORS 
  
 U.S. Venture Partners VIII, L.P. 
 USVP VIII Affiliates Fund, L.P. 

USVP Entrepreneur Partners VIII-A L.P. 
 USVP Entrepreneur Partners VIII-B
L.P. 
 Charter Ventures IV, L.P. 
 Charter Entrepreneurs Fund IV,
L.P. 
 Charter Advisors Fund IV, L.P. 
 Partisan Management
Group, Inc. 
 The Weldon Foundation, Inc. 
 Utako K. Hudson

 Carol J. Weldon 
 Frank M. Fischer 
 Karen J. Cassidy 
 Donald C. Harrison, M.D. 
 Lowell S. Lifschultz 
 The Christian L. Mazzola Revocable Trust Dated July 29,
1993 
 Richard J. D’Augustine 
 Merida A. D’Augustine

 Michael D. Hooven 
 Karen P. Robards 
 Raymond W. Ogle 
 William P. Santamore, Ph.D. 
 Stewart H. Greenfield 
 Robert A. Kline 
 Randall Wolf, M.D. and Amy Sternstein 
 New England Partners Capital, L.P.

 Foundation Medical Partners, L.P. 
 Greenfield Family L.P.

 Camden Partners Strategic Fund II A, L.P. 
 Camden Partners
Strategic Fund II B, L.P. 
 Duke University Special Ventures Fund, Inc. 
 Roger Stern 
 O Street Corporation 
 Elizabeth H.
Lifschultz

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