Document:

Amended and Restated Loan and Security Agreement

 Exhibit 10.20 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 THIS AMENDED AND
RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of September 17, 2010 (the “Effective Date”) between SILICON VALLEY BANK (“Bank”), and ADVANCED BIOHEALING,
INC., a Delaware corporation (“Borrower”), amends and restates the terms of that certain Loan and Security Agreement by and among Bank, Oxford Finance Corporation, the lenders party thereto and Borrower, dated as of
December 23, 2008 (as amended from time to time, the “Original Agreement”), and provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows: 

 

	 	1	ACCOUNTING AND OTHER TERMS 

 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement
shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 

 

	 	2	LOAN AND TERMS OF PAYMENT 

 2.1 Promise to Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon and any other amounts due
hereunder as and when due in accordance with this Agreement. 
 2.1.1 Growth Capital Loan Facility. 

(a) Availability. Subject to the terms and conditions of this Agreement, Bank agrees to lend to Borrower on the Effective Date or
as soon thereafter as practical, an advance (the “Growth Capital Advance”), in the amount of Fifteen Million Dollars ($15,000,000). When repaid, the Growth Capital Advance may not be re-borrowed. 

(b) Repayment. Borrower shall make monthly payments of interest only on the Growth Capital Advance, in arrears commencing on
September 30, 2010 and continuing thereafter on the first day of each successive calendar month (each a “Growth Capital Interest Only Payment Date”) during the Growth Capital Interest Only Period. Commencing on the Growth
Capital Amortization Date and continuing thereafter during the Growth Capital Repayment Period, Borrower shall make forty-seven (47) consecutive equal monthly payments of principal and interest in arrears, in such amount as will fully amortize
the then-outstanding Growth Capital Advance over the Growth Capital Repayment Period (individually, the “Growth Capital Scheduled Payment”, and collectively, “Growth Capital Scheduled Payments”). Each Growth Capital
Scheduled Payment shall be due on the last day of each successive calendar month during the Growth Capital Repayment Period (or, if such day is not a Business Day, then on the first Business Day thereafter) (each a “Growth Capital Scheduled
Payment Date”). All unpaid principal and accrued and unpaid interest is due and payable in full on the Growth Capital Maturity Date with respect to such Growth Capital Advance, at which time the Original Agreement Accrued Fees shall also be
due and payable in full. The Growth Capital Advance may only be prepaid in accordance with Sections 2.1.1(c) or 2.1.1(d). 
 (c) Prepayment. Borrower shall have the option to prepay all, but not less than all, of the Growth Capital Advance advanced by Bank under this Agreement, provided Borrower, (a) provides
written notice to Bank of its election to prepay the Growth Capital Advance at least ten (10) Business Days prior to such prepayment, and (b) pays, on the date of the prepayment (i) all outstanding principal and accrued interest on
the Growth Capital Advance; (ii) the Prepayment Fee and the Original Agreement Accrued Fees; and (iii) all other sums, including Bank Expenses, if any, that have become due and payable hereunder with respect to the Growth Capital Advance.

 (d) Mandatory Prepayment Upon an Acceleration. If the Growth Capital Advance is accelerated following the occurrence
of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of: (i) all outstanding principal plus accrued and unpaid interest on the Growth Capital Advance, (ii) the Prepayment Fee and the Original Agreement
Accrued Fees, plus (iii) all other sums, if any, that shall have 

 
become due and payable, including interest at the Default Rate with respect to any past due amounts; provided however that the Prepayment Fee shall not be due or payable in the event that the
Bank declare an Event of Default solely under Section 8.3 (Material Adverse Change) hereof. 
 2.1.2 Revolving Advances.

 (a) Availability. Subject to the terms and conditions of this Agreement and to deduction of Reserves, Bank agrees
to lend to Borrower from time to time prior to the Revolving Line Maturity Date, Revolving Advances up to the Availability Amount. Amounts borrowed hereunder may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the
applicable terms and conditions precedent herein. 
 (b) Termination; Repayment. The Revolving Line terminates on the
Revolving Line Maturity Date, when the principal amount of all Revolving Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line (including but not limited to the Revolving Line Termination Fee) shall be
immediately due and payable. 
 2.1.3 Letters of Credit Sublimit. 

(a) Letters of Credit. As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for Borrower’s
account. Such aggregate amounts utilized hereunder shall at all times reduce the amount otherwise available for Revolving Advances under the Revolving Line. The face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters
of Credit and any Letter of Credit Reserve) may not exceed Two Million Five Hundred Thousand Dollars ($2,500,000), inclusive of Credit Extensions relating to Sections 2.1.4 and 2.1.5. The aggregate amount available to be used for the issuance of
Letters of Credit may not exceed (i) the lesser of (A) the Revolving Line or (B) the Borrowing Base, minus (ii) the outstanding principal amount of any Revolving Advances (including any amounts used for Cash Management Services
and the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) and minus (iii) the FX Reduction Amount. If, on the Revolving Line Maturity Date, there are any
outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to 105% of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection
therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to said Letters of Credit. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be
subject to the terms and conditions of Bank’s standard Application and Letter of Credit Agreement (the “Letter of Credit Application”). Borrower agrees to execute any further documentation in connection with the Letters of
Credit as Bank may reasonably request. Borrower further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guarantied by Bank and opened for Borrower’s account or by Bank’s interpretations of
any Letter of Credit issued by Bank for Borrower’s account, and Borrower understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, other than gross negligence or willful
misconduct, in following Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or supplements thereto. 
 (b) Obligations Absolute. The Borrower’s obligations under this Section 2.1.3 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had against Bank, any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with Bank that Bank shall not be responsible for, and the Borrower’s
obligations hereunder shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between
or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee.
Bank shall not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of Bank. The Borrower agrees that any action taken or omitted by Bank under or in connection with any Letter of Credit or
the related drafts or documents, if done in the absence of gross negligence or willful misconduct, shall be binding on the Borrower and shall not result in any liability of Bank to the Borrower. 

  
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 In addition to amounts payable as elsewhere provided in the Agreement, Borrower hereby
agrees to pay and to protect, indemnify, and save Bank harmless from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’ fees and allocated costs of internal
counsel) that Bank may incur or be subject to as a consequence, direct or indirect, of (A) the issuance of any Letter of Credit, or (B) the failure of Bank to honor a demand for payment under any Letter of Credit thereof as a result of any
act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority, in each case other than to the extent resulting from the gross negligence or willful misconduct of Bank (as finally
determined by a court of competent jurisdiction). 
 (c) Borrower may request that Bank issue a Letter of Credit payable in a
Foreign Currency. If a demand for payment is made under any such Letter of Credit, Bank shall treat such demand as an Advance to Borrower of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable,
SWIFT or similar charges) in Dollars at the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 

(d) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency,
Bank shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve may be
adjusted by Bank from time to time to account for fluctuations in the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains
outstanding. 
 2.1.4 Foreign Exchange Sublimit. As part of the Revolving Line, Borrower may enter into foreign
exchange contracts with Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX Forward Contract”) on a specified date (the “Settlement Date”). FX
Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract in a maximum aggregate amount equal
to One Hundred Fifty Thousand Dollars ($150,000) (such maximum shall be the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the amount of the FX Reserve. The amount
otherwise available for Credit Extensions under the Revolving Line shall be reduced by an amount equal to ten percent (10%) of each outstanding FX Forward Contract (the “FX Reduction Amount”). Any amounts that are not paid
by Borrower for any FX Forward Contracts will be treated as Revolving Advances under the Revolving Line under the Revolving Facility and will accrue interest at the interest rate applicable to Revolving Advances. 

2.1.5 Cash Management Services Sublimit. Borrower may use up to Two Million Five Hundred Thousand Dollars ($2,500,000),
inclusive of Credit Extensions relating to Sections 2.1.3 and 2.1.4 of the Revolving Line for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card, and check cashing services
identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”). 
 2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal amount of any Revolving Advances (including any amounts used for Cash Management Services), plus (b) the
face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus (c) the FX Reduction Amount, exceeds the lesser of either the Revolving Line or the Borrowing Base
(such amount being an “Overadvance”), Borrower shall immediately pay to Bank in cash the amount of such Overadvance. Without limiting Borrower’s obligation to repay Bank any amount of the Overadvance, Borrower agrees to pay Bank
interest on the outstanding amount of any Overadvance, on demand, at the Default Rate. 
 2.3 Lockbox; Account Collection
Services. 
 (a) Prior to the making of any Revolving Advance, Borrower shall direct each Account Debtor (and each
depository institution where proceeds of Accounts are on deposit) to remit payments with respect to the Accounts to a lockbox account established with Bank or to wire transfer payments to a cash collateral account that Bank controls (collectively,
the “Lockbox”). It will be considered an immediate Event of Default if the Lockbox is not set-up and operational as of the date set forth in the preceding sentence. 

  
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 (b) Until such Lockbox is established, the proceeds of the Accounts shall be paid by the
Account Debtors to an address consented to by the Bank. Upon receipt by Borrower of such proceeds, Borrower shall immediately transfer and deliver same to Bank, for the ratable benefit of the Bank, along with a detailed cash receipts journal.
Provided no Event of Default exists or an event that with notice or lapse of time will be an Event of Default, within three (3) Business Days of receipt of such amounts by Bank, Bank will turn over to Borrower the proceeds of the Accounts, less
any amounts due to Bank, such as payments due to the Bank, other fees and expenses, or otherwise. This Section does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All Accounts and the proceeds
thereof are Collateral and if an Event of Default occurs, Bank may apply the proceeds of such Accounts to the Obligations. Without limiting the foregoing, the Bank may exercise dominion and control over the Lockbox (and the amounts in the Lockbox)
in their sole discretion. 
 2.4 Payment of Interest on the Credit Extensions. 

(a) Interest Rates. 
 (i) Growth Capital Advance. Subject to Section 2.4(b), the principal amount of the Growth Capital Advance outstanding shall accrue interest, which interest shall be payable
monthly in arrears as more fully set forth in Section 2.1.1(b), at a fixed per annum rate equal to one percent (1.00%) above the Prime Rate. 
 (ii) Revolving Advances. Subject to Section 2.4(b), the principal amount outstanding under the Revolving Line shall accrue interest at a per annum rate equal to the Prime Rate;
which interest shall be payable monthly. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance
of an Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points above the rate effective immediately before the Event of Default (the “Default Rate”). Payment or acceptance of the
increased interest rate provided in this Section 2.4(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank.

 (c) Adjustment to Interest Rate. Changes to the interest rate of any Credit Extension based on changes to the Prime
Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of any such change. For the avoidance of doubt, such changes shall not apply to the Growth Capital Advance, the interest rate for which shall remain
fixed for the term hereof after the Effective Date. 
 (d) 360-Day Year. Interest shall be computed on the basis of a
360-day year of twelve 30-day months. 
 (e) Debit of Accounts. Bank, for the benefit of the Bank, may debit any of
Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 

(f) Payments; Interest Computation. Unless otherwise provided, interest is payable monthly on the first calendar day of each
month. In computing interest on the Obligations, all Payments received after 12:00 p.m. Pacific time on any day shall be deemed received on the next Business Day. Bank shall not, however, be required to credit Borrower’s account for the amount
of any item of payment which is unsatisfactory to Bank in its good faith business judgment, and Bank may charge Borrower’s Designated Deposit Account for the amount of any item of payment which is returned to Bank unpaid. 

2.5 Fees. Borrower shall pay to Bank: 
 (a) Revolving Commitment Fee. A non-refundable commitment fee on account of the Revolving Line (the “Revolving Commitment Fee”) payable as follows: $50,000 shall be fully earned
and paid on the Effective Date (net of any amount of the Revolving Commitment Fee paid to Bank pursuant to the terms of the Original Agreement); an additional $50,000 shall be paid on the first anniversary of the Effective Date, provided this
Agreement is still on effect on the date thereof; and an additional $50,000 shall be paid on the second anniversary of the Effective Date, provided this Agreement is still on effect on the date thereof; 

  
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 (b) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line
Facility Fee”), payable monthly, in arrears, on a calendar year basis, in an amount equal to one quarter of one percent (0.25%) per annum of the average unused portion of the Revolving Line, as determined in good faith by Bank. The unused
portion of the Revolving Line, for the purposes of this calculation, shall include amounts reserved under the Cash Management Services Sublimit for products provided and under the Foreign Exchange Sublimit for FX Forward Contracts. Borrower shall
not be entitled to any credit, rebate or repayment of any Unused Revolving Line Facility Fee previously earned by Bank pursuant to this Section notwithstanding any termination of the Agreement, or suspension or termination of Bank’s obligation
to make loans and advances hereunder; 
 (c) Revolving Line Termination Fee. The Revolving Line Termination Fee, when due
hereunder. 
 (d) Prepayment Fee. The Prepayment Fee, when due hereunder; 

(e) Original Agreement Accrued Fees. The Original Agreement Accrued Fees, when due hereunder; and 

(f) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses incurred in connection with the
documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 
  

	 	3	CONDITIONS OF LOANS 

 3.1 Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and
substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) duly executed original signatures to the Loan Documents to which it is a party; 
 (b) duly executed original signatures to the Control Agreements; 
 (c) its
Operating Documents and a good standing certificate of Borrower certified by the Secretary of State of the States of Delaware and California as of a date no earlier than thirty (30) days prior to the Effective Date; 

(d) duly executed original signatures to the completed Borrowing Resolutions for Borrower; 

(e) certified copies, dated as of a recent date, of financing statement searches, as Bank shall request, accompanied by written evidence
(including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 

(f) a subordination agreement from each holder of Subordinated Debt; 

(g) a Perfection Certificate, executed by Borrower; 
 (h) evidence satisfactory to Bank that the insurance policies required by Section 6.7 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or
additional insured clauses or endorsements in favor of Bank; and 
 (i) payment of the fees and Bank Expenses then due as
specified in Section 2.5 hereof. 

  
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 3.2 Conditions Precedent to all Credit Extensions. Bank’s obligations to make
each Credit Extension, including the initial Credit Extension, are subject to the following: 
 (a) Borrower shall have duly
executed and delivered to Bank a Payment/Advance Form, together with an executed Transaction Report; 
 (b) the representations
and warranties in Section 5 shall be true in all material respects on the date of the Payment/Advance Form and the Transaction Report and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be
true, accurate and complete in all material respects as of such date, and no Default or Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty
on that date that the representations and warranties in Section 5 remain true in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and

 (c) in Bank’s sole reasonable discretion, there has not been a Material Adverse Change. 

3.3 Covenant to Deliver. 
 Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition to any Credit Extension. Borrower expressly agrees that the extension of a Credit
Extension prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and any such extension in the absence of a required item shall be in Bank’s sole discretion.

 3.4 Procedures for Borrowing. 
 (a) Growth Capital Advance. To obtain the Growth Capital Advance, Borrower must deliver to Bank a completed Payment/Advance Form in the form attached as Exhibit B. On the Growth Capital
Funding Date, Bank shall credit and/or transfer (as applicable) to the Designated Deposit Account, an amount equal to the Growth Capital Advance. Bank may rely on any telephone notice given by a person whom Bank reasonably believes is a Responsible
Officer. Borrower shall indemnify Bank for any loss Bank suffers due to such reliance. 
 (b) Revolving Advances. Subject
to the prior satisfaction of all other applicable conditions to the making of a Revolving Advance set forth in this Agreement, to obtain a Revolving Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail,
facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Revolving Advance. Together with such notification, Borrower must promptly deliver to Bank by electronic mail or facsimile a completed Transaction Report executed by a
Responsible Officer or his or her designee. Bank shall credit Revolving Advances to the Designated Deposit Account. Bank may make Revolving Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or
without instructions if the Revolving Advances are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a person whom Bank reasonably believes is a Responsible Officer or designee. Borrower shall
indemnify Bank for any loss Bank suffers due to such reliance. 
  

	 	4	CREATION OF SECURITY INTEREST 

 4.1 Grant of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the
Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be
a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority under this Agreement). If Borrower shall acquire a commercial tort claim (as defined in the Code), Borrower shall
promptly notify Bank in a writing signed by Borrower of the general details thereof (and 

  
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further details as may be required by Bank) and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to
be in form and substance reasonably satisfactory to Bank. 
 If this Agreement is terminated, Bank’s Lien in the Collateral
shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as the Bank’s obligation to make Credit Extensions has terminated,
Bank shall, at Borrower’s sole cost and expense, release their Liens in the Collateral and all rights therein shall revert to Borrower. 
 4.2 Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect
Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code. 

 

	 	5	REPRESENTATIONS AND WARRANTIES 

 Borrower represents and warrants as follows: 
 5.1 Due Organization and
Authorization. Borrower and each of its Subsidiaries, if any, are duly existing and in good standing, as Registered Organizations in their respective jurisdictions of formation and are qualified and licensed to do business and are in good
standing in any jurisdiction in which the conduct of their business or their ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on
Borrower’s business. In connection with this Agreement, Borrower has delivered to Bank a completed perfection certificate signed by Borrower (the “Perfection Certificate”). Borrower represents and warrants that
(a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection
Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place
of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) except as set forth on the Perfection Certificate, Borrower (and each of its
predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the
Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete. If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with
Borrower’s organizational identification number. 
 The execution, delivery and performance by Borrower of the Loan
Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s Operating Documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law,
(iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or
affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect)
or are being obtained pursuant to Section 6.1(b), or (v) constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound
in which the default could have a material adverse effect on Borrower’s business. 
 5.2 Collateral. Except as noted
in the Perfection Certificate, Borrower has good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower
has no deposit accounts other than the deposit accounts with Bank, the deposit accounts, if any, described in the Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as
are necessary to give Bank a perfected security interest therein. 
 The Collateral is not in the possession of any third party
bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None of the components of the Collateral shall be maintained at locations 

  
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other than as provided in the Perfection Certificate or as Borrower has given Bank notice pursuant to Section 7.2. In the event that Borrower, after the date hereof, intends to store
or otherwise deliver any portion of the Collateral to a bailee, then Borrower will first receive the written consent of Bank and such bailee must execute and deliver a bailee agreement in form and substance satisfactory to Bank in its sole
discretion. Without limiting the foregoing, Borrower shall, within 45 days of the Effective Date, cause to be delivered to Bank, a landlord consent (or similar) with respect to each of Borrower’s leased locations, and a bailee agreement (or
similar) with respect to UPS; in each case in form and content reasonably acceptable to Bank. 
 All Inventory is in all
material respects of good and marketable quality, free from material defects. 
 Borrower is the sole owner of its intellectual
property, except for non-exclusive licenses granted to its customers in the ordinary course of business and except as noted in the Perfection Certificate,. Each patent is valid and enforceable, and no part of the intellectual property has been
judged invalid or unenforceable, in whole or in part, and to the best of Borrower’s knowledge, no claim has been made that any part of the intellectual property violates the rights of any third party except to the extent such claim could not
reasonably be expected to have a material adverse effect on Borrower’s business. Except as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any material license or other agreement with respect to which Borrower
is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could
interfere with Bank’s right to sell any Collateral. Borrower shall provide written notice to Bank within ten (10) days of entering or becoming bound by any such license or agreement (other than over-the-counter software that is
commercially available to the public). Borrower shall take such steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (x) all such licenses or agreements to be deemed
“Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such license or agreement, whether now existing or entered into in the future, and (y) Bank to
have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Bank’s rights and remedies under this Agreement and the other Loan Documents. 

5.3 Litigation. Except as set forth in the Perfection Certificate, there are no actions or proceedings pending or, to the
knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than $100,000. 
 5.4 No Material Deviation in Financial Statements. All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Bank fairly present in all material respects
Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial
statements submitted to Bank. 
 5.5 Solvency. The fair salable value of Borrower’s assets (including goodwill minus
disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 

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

  
 8 

 5.7 Subsidiaries; Investments. Borrower does not own any stock, partnership interest
or other equity securities except for Permitted Investments. 
 5.8 Tax Returns and Payments; Pension Contributions.
Borrower has timely filed all required tax returns and reports (or extensions thereof as may be permitted by applicable law), and Borrower and its Subsidiaries have timely paid all foreign, federal, state and local taxes, assessments, deposits and
contributions owed by Borrower. Borrower may defer payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted,
(b) notifies Bank in writing of the commencement of, and any material development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a
Lien upon any of the Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by
Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or
complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or
its successors or any other governmental agency. 
 5.9 Use of Proceeds. Borrower shall use the proceeds of the Credit
Extensions solely as working capital and to fund its general business requirements and not for personal, family, household or agricultural purposes. 
 5.10 Product Shipment. Borrower has shipped more than Thirty Two Million Dollars ($32,000,000) of Borrower’s product, net of returns and allowances, from January 1, 2008 through the
Effective Date. 
 5.11 Full Disclosure. No written representation, warranty or other statement of Borrower in any
certificate or written statement given to Bank or Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Bank or Bank, contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized that the projections and forecasts provided by Borrower in good faith and
based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 

 

	 	6	AFFIRMATIVE COVENANTS 

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

 (a) Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of
formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary
comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could reasonably be expected to have a material adverse effect on Borrower’s business. 

(b) Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to
which it is a party and the grant of a security interest to Bank for the ratable benefit of the Bank, in all of its property. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank. 

  
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 6.2 Financial Statements, Reports, Certificates. 

(a) Borrower shall provide Bank with the following: 

(i) within fifteen (15) days after the end of each month, (A) a Transaction Report (and any schedules
related thereto) (if there are no loan balances outstanding under the Revolving Line for the preceding calendar month), (B) monthly accounts receivable agings, aged by invoice date, (C) monthly accounts payable agings, aged by invoice
date, and outstanding or held check registers, if any, and (D) monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports and general ledger, and (E) a deferred revenue schedule; 

(ii) as soon as available, and in any event within thirty (30) days after the end of each month, monthly
unaudited financial statements; 
 (iii) within thirty (30) days after the end of each month a
monthly Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and such other information as Bank shall reasonably
request, including, without limitation, a statement that at the end of such month there were no held checks; 

(iv) the more frequent of weekly, by Monday of the following week, or with each request for a Revolving Advance
when there are loan balances outstanding under the Revolving Line for the preceding calendar month, a Transaction Report (and any schedules related thereto); 
 (v) within thirty (30) days after the beginning of each fiscal year of Borrower, (A) annual operating budgets (including income statements, balance sheets and cash flow statements, by
month) for such fiscal year of Borrower, (B) annual financial projections for such fiscal year (on a quarterly basis), together with any related business forecasts used in the preparation of such annual financial projections; in each case, as
approved by Borrower’s board of directors and provided to Borrower’s equity investors and (C) any interim updates of (A) or (B) above; and 

(vi) as soon as available, and in any event within 180 days following the end of Borrower’s fiscal year,
annual financial statements certified by, and with an unqualified opinion of, independent certified public accountants acceptable to Bank. 
 (b) In the event that Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days after filing, all reports on Form 10-K, 10-Q
and 8-K filed with the Securities and Exchange Commission or a link thereto on Borrower’s or another website on the Internet. 
 6.3 Accounts Receivable. 
 (a) Schedules and Documents Relating to
Accounts. Borrower shall deliver to Bank transaction reports and schedules of collections, as provided in Section 6.2, on Bank’s standard forms; provided, however, that Borrower’s failure to execute and deliver the
same shall not affect or limit Bank’s Lien and other rights in all of Borrower’s Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect or limit Bank’s Lien and other rights therein. If requested
by a Bank, Borrower shall furnish Bank with copies (or, at a Bank’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of
delivery, for any goods the sale or disposition of which gave rise to such Accounts. In addition, Borrower shall deliver to Bank, on Bank’s request, the originals of all instruments, chattel paper, security agreements, guarantees and other
documents and property evidencing or securing any Accounts, in the same form as received, with all necessary indorsements, and copies of all credit memos. 
 (b) Disputes. Borrower shall promptly notify Bank of all disputes or claims relating to Accounts in an aggregate amount in excess of $150,000 at any time. Borrower may forgive (completely or
partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, in
arm’s-length transactions, and reports the same to Bank in the regular reports provided to Bank; (ii) no Default or 

  
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Event of Default has occurred and is continuing; and (iii) after taking into account all such discounts, settlements and forgiveness, the total outstanding Advances will not exceed the
lesser of the Revolving Line or the Borrowing Base. 
 (c) Collection of Accounts. Borrower shall have the right to
collect all Accounts, unless and until a Default or an Event of Default has occurred and is continuing. Bank shall require that all proceeds of Accounts be deposited by Borrower into a lockbox account, or such other “blocked account” as
specified by Bank, pursuant to a blocked account agreement in such form as Bank may specify in its good faith business judgment. Whether or not an Event of Default has occurred and is continuing, Borrower shall hold all payments on, and proceeds of,
Accounts in trust for Bank, and Borrower shall immediately deliver all such payments and proceeds to Bank, for the ratable benefit of the Bank according to their respective Revolving Line Commitment Percentages, in their original form, duly
endorsed, to be applied (i) prior to an Event of Default, pursuant to the terms of Section 2.4(e) hereof, and (ii) after the occurrence and during the continuance of an Event of Default, pursuant to the terms of
Section 9.4 hereof. 
 (d) Returns. Provided no Event of Default has occurred and is continuing, if
any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return, (ii) issue a credit memorandum to the Account Debtor in the appropriate amount, and (iii) provide a copy of such
credit memorandum to Bank, for the benefit of the Bank, upon request from Bank. In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for
Bank, and immediately notify Bank of the return of the Inventory. 
 (e) Verification. Bank may, from time to
time, verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of Borrower or Bank or such other name as Bank may choose. 

(f) No Liability. Bank shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or
destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for
settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account. Nothing herein shall, however,
relieve Bank from liability for its own gross negligence or willful misconduct. 
 6.4 Remittance of Proceeds.
Except as otherwise provided in Section 6.3(c), deliver, in kind, all proceeds arising from the disposition of any Collateral to Bank, for the ratable benefit of the Bank, in the original form in which received by Borrower not later than
the following Business Day after receipt by Borrower, to be applied to the Obligations pursuant to the terms of Section 9.4 hereof; provided that, if no Default or Event of Default has occurred and is continuing, Borrower shall not be
obligated to remit to Bank the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of Twenty Five Thousand Dollars ($25,000) or less (for
all such transactions in any fiscal year). Borrower agrees that it will not commingle proceeds of Collateral with any of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and
in an express trust for Bank. Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement. 
 6.5 Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely file, all
foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.8 hereof, and shall
deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 

6.6 Access to Collateral; Books and Records. At reasonable times, but not less than two (2) times per year unless
requested by Bank (and in the event of a Default or Event of Default) on one (1) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents,

  
 11 

 
shall have the right to inspect the Collateral and the right to audit and copy Borrower’s Books. The foregoing inspections and audits shall be at Borrower’s expense, and the charge
therefor shall be $850 per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrower and Bank schedule an audit more than ten
(10) days in advance, and Borrower cancels or seeks to reschedule the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies), Borrower shall pay Bank a fee of $1,000 plus
any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 
 6.7 Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request. Insurance
policies shall be in a form, with companies, and in amounts that are satisfactory to Bank. All property policies shall have a lender’s loss payable endorsement showing Bank as an additional lender loss payee and waive subrogation against Bank,
and all liability policies shall show, or have endorsements showing, Bank as an additional insured. All policies (or the loss payable and additional insured endorsements) shall provide that the insurer must give Bank at least thirty (30) days
notice before canceling, amending, or declining to renew its policy. At Bank’s and Bank’s request, Borrower shall deliver a certificate of insurance with a copy of the loss payee/additional insured endorsements, and evidence of all premium
payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have
the option of applying the proceeds of any casualty policy up to $25,000, in the aggregate, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like
value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank have been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of Default, all
proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank, for the ratable benefit of the Bank, on account of the Obligations. If Borrower fails to obtain insurance as required under this Section 6.7 or
to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.7, and take any action under the policies Bank
deems prudent. 
 6.8 Operating Accounts. 
 (a) Maintain its primary depository, operating and securities accounts with Bank or Bank’s Affiliates, which accounts shall represent at least 85% of the dollar value of Borrower’s and
Borrower’s Subsidiaries’ accounts at all financial institutions. 
 (b) Provide Bank five (5) days prior written
notice before establishing any Collateral Account at or with Bank or financial institution other than Bank or Bank’s Affiliates. In addition, for each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable
bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in
such Collateral Account in accordance with the terms hereunder, which Control Agreement may not be terminated without prior written consent of the Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for
payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such. 
 6.9 Protection of Intellectual Property Rights. Borrower shall: (a) protect, defend and maintain the validity and enforceability of its intellectual property; (b) promptly advise Bank in
writing of material infringements of its intellectual property; and (c) not allow any intellectual property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent.

 6.10 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make
available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding
instituted by or against Bank with respect to any Collateral or relating to Borrower. 

  
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 6.11 Notices of Litigation and Default. Borrower will give prompt written notice to
Bank of any litigation or governmental proceedings pending or threatened (in writing) against Borrower which would reasonably be expected to have a material adverse effect with respect to Borrower. Without limiting or contradicting any other more
specific provision of this Agreement, promptly (and in any event within three (3) Business Days) upon Borrower becoming aware of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would
constitute an Event of Default, Borrower shall give written notice to Bank of such occurrence, which such notice shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage of time,
or both, would constitute an Event of Default. 
 6.12 Creation/Acquisition of Subsidiaries. In the event Borrower or any
Subsidiary creates or acquires any Subsidiary, Borrower and such Subsidiary shall promptly notify Bank of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably required by Bank to cause each such domestic
Subsidiary to guarantee the Obligations of Borrower under the Loan Documents and grant a continuing pledge and security interest in and to the assets of such Subsidiary (substantially as described on Exhibit A hereto); and Borrower shall grant and
pledge to Bank a perfected security interest in the stock, units or other evidence of ownership of each Subsidiary (not to exceed 65% of such stock units or other evidence of ownership in the case of a foreign Subsidiary). 

6.13 Financial Covenants. Maintain at all times: 
 (a) Liquidity. Borrower’s unrestricted cash and Cash Equivalents maintained with Bank or Bank’s Affiliates, plus excess availability under the Revolving Line, measured at all times, of at
least Six Million Dollars ($6,000,000). 
 (b) Fixed Charge Coverage Ratio. Borrower’s Fixed Charge Coverage Ratio,
measured monthly, shall be at least the following amounts for the respective periods: 
  

					
	Period	  	Minimum FCCR	 
	 Effective Date through September 30, 2010
	  	 	1.10:1.00	  
	 October 1, 2010 through December 31, 2010
	  	 	1.25:1.00	  
	 January 1, 2011 and thereafter
	  	 	1.50:1.00	  

 (c)
Profitability. A minimum aggregate Net Income of at least One Dollar ($1.00) measured monthly on a rolling three-month basis. 
 6.14 Further Assurances. Execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of
this Agreement. Deliver to Bank, within ten (10) days after the same are sent or received, copies of all correspondence, reports, documents and other filings with any Governmental Authority regarding compliance with or maintenance of
Governmental Approvals or Requirements of Law or that could reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries. 

 

	 	7	NEGATIVE COVENANTS 

Borrower shall not do any of the following without Bank’s prior written consent: 

7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively, “Transfer”), or permit any of its
Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete Equipment; (c) in connection with Permitted Liens and
Permitted Investments; (d) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business, and (e) non-exclusive licenses of Borrower’s intellectual property in the ordinary
course of business to include licenses of product to partnerships in bona fide collaborations. 

  
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 7.2 Changes in Business, Management, Ownership, or Business Locations.
(a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or
(c) (i) terminate the employment of or replace any Key Person (other than with a replacement of such Key Person reasonably acceptable to Bank) or (ii) enter into any transaction or series of related transactions in which the
stockholders of Borrower immediately prior to the first such transaction own less than 65% of the voting stock of Borrower immediately after giving effect to such transaction or related series of such transactions (other than by the sale of
Borrower’s equity securities in a public offering or to venture capital investors so long as Borrower identifies to Bank the venture capital investors prior to the closing of the transaction). Borrower shall not, without at least thirty
(30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Ten Thousand Dollars ($10,000) in Borrower’s assets or
property), (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization.

 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any
other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except 
 7.3.1 in the situation in which Borrower is the acquiror and the surviving legal entity, where total cash consideration for all such transactions does not in the aggregate exceed Five Million
Dollars ($5,000,000) in any fiscal year of Borrower; 
 7.3.2 in the situation in which Borrower is acquired by another
Person, which is not a borrower of Bank, 
 (a) and Borrower is merged with and into such other Person, where (i) such
other Person is in the same (or a similar) line of business as Borrower; (ii) Borrower demonstrates to Bank’s reasonable satisfaction, no later than ten (10) days prior to the proposed closing date of the transaction, pro forma
compliance with the financial covenants set forth in Section 6.13, for the twelve (12) month prior immediately prior to the transaction, and for the twelve (12) month period following and after giving effect to such transaction;
(iii) Borrower delivers to Bank, no later than ten (10) days prior to the proposed closing date of the transaction, historical financial information of the other Person, in form and content reasonably acceptable to Bank, demonstrating
positive EBITDA of such other Person for the twelve (12) month period immediately prior to the transaction; (iv) such transaction is not opposed by the Board of Directors (or equivalent governing body) of the other Person or Borrower; and
(v) Borrower delivers to Bank, no later than ten (10) days prior to the proposed closing date of any such acquisition, the signed and accepted written notice of intent (or similar) with respect to such transaction; or 

(b) and Borrower remains a wholly-owned Subsidiary of such other Person (as used herein, the “parent”), where (i) the
parent is in the same (or a similar) line of business as Borrower; (ii) such merger or consolidation, or such acquisition or assumption, as the case may be, is for a good business purpose and not principally for the purpose of transferring this
Agreement; (iii) Borrower delivers to Bank, no later than ten (10) days prior to the proposed closing date of the transaction, evidence in form and content reasonably acceptable to Bank, demonstrating that the Tangible Net Worth (as
determined in accordance with GAAP) of the parent, as of the closing date of the proposed transaction, is not less than the Tangible Net Worth of Borrower (as determined in accordance with GAAP with reference to Borrower’s most current
quarterly or annual financial statements) as of the date hereof and as of the closing date of the applicable transaction; (iv) the parent shall have executed and delivered to Bank, as of the closing date of the proposed transaction, an
unconditional guaranty and a security agreement, each in form and content reasonably acceptable to Bank, guaranteeing to Bank Borrower’s payment and performance of Borrower’s Obligations under this Agreement, which guaranty shall be
secured by all of parent’s assets, including but not limited to parent’s ownership interest in Borrower; and (v) Borrower shall continue to be fully and primarily liable for the payment and performance of all covenants, conditions,
and Obligations under this Agreement; 
 7.3.3 in each case in which the acquirer is a borrower of Bank, Borrower must
obtain Bank’s prior written consent to any such acquisition, which may be granted or withheld in Bank’s sole discretion; 
 in each case of this Section 7.3, provided no Event of Default has occurred and is continuing or would exist after giving effect to any such transaction. 

  
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 A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 

7.4 Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than
Permitted Indebtedness. 
 7.5 Encumbrance. Create, incur, or allow any Lien on any of its property, or assign or convey
any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted herein, except for
Permitted Liens expressly permitted hereunder to have priority over the Bank’s liens. Borrower shall not sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber, or enter into any agreement, document,
instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from selling, transferring, assigning, mortgaging, pledging,
leasing, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s intellectual property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens”
herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of
Section 6.8(b) hereof. 
 7.7 Distributions; Investments. (a) Directly or indirectly make any
Investment other than Permitted Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock provided that (i) Borrower may pay
dividends solely in common stock; and (ii) Borrower may repurchase the stock of former employees or consultants pursuant to stock repurchase agreements so long as an Event of Default does not exist at the time of such repurchase and would not
exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of $100,000 per fiscal year. 
 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for (i) transactions that are in the
ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person, and (ii) transactions that are permitted
under Section 7.2(c)(ii) hereof. 
 7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated
Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the
amount thereof or adversely affect the subordination thereof to Obligations owed to the Bank. 
 7.10 Compliance. Become
an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined
in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as
defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any
of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and
deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

7.11 Indebtedness Payments. 
 (i) Prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the scheduled repayment thereof any Indebtedness for borrowed money (other than amounts due under this Agreement or due
Bank) or lease obligations, (ii) amend, modify or otherwise change the terms of any Indebtedness for borrowed money or lease obligations so as to accelerate the scheduled repayment thereof or (iii) repay any notes to officers, directors or
shareholders. 

  
 15 

	 	8	EVENTS OF DEFAULT 

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

8.1 Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date,
or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) day grace period shall not apply to payments due on the Growth Capital Maturity Date or the Revolving Line
Maturity Date, as applicable). During the cure period, the payment default is not an Event of Default (but no Credit Extension will be made during the cure period); 
 8.2 Covenant Default. 
 (a) Borrower fails or neglects to perform any
obligation in Sections 6.2, 6.4, 6.5, 6.7, 6.8, 6.13 or 6.14, or violates any covenant in Section 7; or 
 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than
those specified in this Section 8 (except for this Section 8.2(b))) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the
occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to
be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the default shall not be deemed an
Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided under this Section shall not apply to any covenants set forth in subsection (a) above; 

8.3 Material Adverse Change. A Material Adverse Change occurs; 

8.4 Attachment. 
 (a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under control of Borrower (including a Subsidiary) on deposit with Bank or Bank
Affiliate, or (ii) a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the
occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; and 

(b) (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver,
or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business (limited in scope to those Governmental Authorities located in the United States, as long as Borrower conducts business solely in
the United States) and the same are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten
(10) day cure period; 
 8.5 Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as
they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within thirty (30) days (but no Credit Extensions
shall be made while of any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is a default by Borrower or any Guarantor in any agreement to which Borrower or any Guarantor is a party with a third party or parties resulting in a right by such third
party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Fifty Thousand Dollars ($50,000) or that could have a material adverse effect on Borrower’s business; 

  
 16 

 8.7 Judgments. (a) A judgment or judgments for the payment of money in an
amount, individually or in the aggregate, of at least Fifty Thousand Dollars ($50,000) (not covered by independent third-party insurance) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days
after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); or (b) except with the prior written consent of the Bank, a settlement of any litigation (whether or not a court
proceeding is commenced) pursuant to which Borrower is obligated to pay an amount greater than One Million Dollars ($1,000,000); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing
delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 

8.9 Subordinated Debt. A default or breach occurs under any agreement between Borrower and any creditor of Borrower that signed a
subordination, intercreditor, or other similar agreement with Bank, or any creditor that has signed such an agreement with Bank breaches any terms of such agreement; 
 8.10 Governmental Approvals. Any Governmental Approval of any Governmental Authority (limited in scope to those Governmental Authorities located in the United States, as long as Borrower conducts
business solely in the United States) shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority
(limited in scope to those Governmental Authorities located in the United States, as long as Borrower conducts business solely in the United States) that designates a hearing with respect to any applications for renewal of any of such Governmental
Approval or that could result in such Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) has, or could reasonably be
expected to have, a Material Adverse Change, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction (limited in scope to those Governmental
Authorities located in the United States, as long as Borrower conducts business solely in the United States) and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal
qualifications of Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction (limited in scope to those Governmental Authorities located in the United States, as long as Borrower conducts business solely in the
United States) and the affect on such status or legal qualifications has, or could reasonably be expected to have, a Material Adverse Change; provided that, as to any of the events and circumstances described in this Section 8.10 that can, in
the Bank’s reasonable discretion, be cured, as long as Borrower is making diligent attempts to so cure such events or circumstances (and is keeping Bank fully apprised of such efforts and the effects thereof), Borrower shall have a grace period
(which shall not in any case exceed twenty (20) Business Days) to attempt to cure such events or circumstances, and within such time period such events or circumstances shall not be deemed an Event of Default (but no Credit Extensions shall be
made during such cure period); provided further that, no such cure period shall be provided if another Event of Default (other than under this Section 8.10) has occurred and is continuing, hereunder. Notwithstanding anything in this Agreement
to the contrary, any of the events or circumstances of the kind described in this Section 8.10, including without limitation any violation of the covenants set forth in Section 6.1 or 7.10 (as each relates to the events and circumstances
described in this Section 8.10), shall not be deemed to constitute an “Event of Default” under any provision of this Agreement other than this Section 8.10. 

 

	 	9	RIGHTS AND REMEDIES 

9.1 Rights and Remedies. While an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the
following: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default described in
Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank or Bank); 

  
 17 

 (b) stop advancing money or extending credit for Borrower’s benefit under this
Agreement or under any other agreement between Borrower and Bank; 
 (c) demand that Borrower (i) deposits cash with Bank
in an amount equal to the aggregate amount of any Letters of Credit remaining undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and
(ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 
 (d) terminate any FX Forward Contracts; 
 (e) settle or adjust disputes and claims
directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, notify any Person owing Borrower money of Bank’s security interest in such funds, and verify the amount of such account; 

(f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the
Collateral. Borrower shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase,
contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s
rights or remedies; 
 (g) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any
amount held by Bank or Bank owing to or for the credit or the account of Borrower; 
 (h) ship, reclaim, recover, store, finish,
maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, patents, copyrights, mask works, rights of
use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in
connection with Bank’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Bank for the benefit of the Bank; 

(i) place a “hold” on any account maintained with Bank or Bank and/or deliver a notice of exclusive control, any entitlement
order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 
 (j) demand and receive possession of Borrower’s Books; and 
 (k) exercise all
rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 

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

  
 18 

 9.3 Protective Payments. If Borrower fails to obtain the insurance called for by
Section 6.7 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make such payment, and all amounts so paid by
Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral. Bank will make reasonable efforts to provide Borrower with notice of Bank obtaining such insurance at the
time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 

9.4 Application of Payments and Proceeds. Borrower shall have no right to specify the order or the accounts to which Bank shall
allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified elsewhere in this Agreement. If an Event of Default has occurred and
is continuing, Bank may apply any funds in their possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in
such order as Bank shall determine in their sole discretion. Any surplus shall be paid to Borrower by credit to the Designated Deposit Account or to other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If
Bank, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the
Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 
 9.5 Liability for Collateral. So long as the Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of the Bank, the Bank
shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman,
bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
 9.6 No Waiver; Remedies
Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict
performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Bank and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this
Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election, and Bank’s waiver of any Event of Default is
not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.7 Demand
Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel
paper, and guarantees held by Bank on which Borrower is liable. 
  

	 	10	NOTICES 

 All
notices, consents, requests, approvals, demands, or other communication (collectively, “Communication”) by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served,
given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon
transmission, when sent by facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be
addressed to the party to be notified and sent to the address, facsimile number indicated below. Each party may change its address or facsimile number by giving the other parties written notice thereof in accordance with the terms of this
Section 10. 

  
 19 

			
	If to Borrower:	 	ADVANCED BIOHEALING, INC.
		 	36 Church Lane
		 	Westport, CT 06880
		 	Attn: Kevin Rakin, Chief Executive Officer
		 	Tel.: (203) 557-0735
		 	Fax: (203) 557-0739
		
	With a copy (which shall not constitute notice) to:	 	ADVANCED BIOHEALING, INC.
		 	10933 N. Torrey Pines Road, Suite 200
		 	La Jolla, CA 92037
		 	Attn: Larry Jones, Executive Director of Finance
		 	Tel.: (858) 754-3711
		 	Fax: (858) 754-3811
		
	With a copy (which shall not constitute notice) to:	 	ADVANCED BIOHEALING, INC.
		 	36 Church Lane
		 	Westport, CT 06880
		 	Attn: Luke Albrecht, Senior Counsel
		 	Tel.: (203) 682-7224
		 	Fax: (203) 557-0739
		
	If to Bank:	 	Silicon Valley Bank
		 	4370 La Jolla Village Drive, Suite 860
		 	San Diego, CA 92122
		 	Attn: Derek R. Brunelle
		 	Tel.: (858) 784-3311
		 	Fax: (858) 622-1424

  

	 	11	CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE 

 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara
County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it
may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the
summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10
of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT.
EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT
TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, 

  
 20 

 
the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the
parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if
the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted
pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation,
entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If
during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior
Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall
be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial proceedings
in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision
thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The
private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
  

	 	12	GENERAL PROVISIONS 

12.1 Termination of Revolving Line Prior to Revolving Line Maturity Date. The Revolving Line Agreement may be terminated
prior to the Revolving Line Maturity Date by Borrower, effective three (3) Business Days after written notice of termination is given to Bank. Notwithstanding any such termination, Bank’s liens and security interests in the Collateral
shall continue until Borrower fully satisfies its Obligations. If such termination is at Borrower’s election, or at Bank’s election due to the occurrence and continuance of an Event of Default, unless the Revolving Line is replaced by Bank
with another credit facility provided by Bank, Borrower shall pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee (the “Revolving Line Termination Fee”) in an amount equal to
(x) One Hundred Twelve Thousand Five Hundred Dollars ($112,500), if such termination occurs on or after January 1, 2011 but prior to the first anniversary of the Effective Date; (y) Seventy Five Thousand Dollars ($75,000), if such
termination occurs after the first anniversary but before the second anniversary of the Effective Date; and (z) Thirty Seven Thousand Five Hundred Dollars ($37,500), if such termination occurs after the second anniversary of the Effective Date.

 12.2 Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of
each party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank have the right, without the consent of or notice to
Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents; provided that any such transaction is
in compliance with all applicable laws, including without limitation, U.S. federal and state securities laws. 
 12.3
Indemnification; Expenses. Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”)
harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or
Bank Expenses incurred, or paid by such Indemnified Person from, following, or arising from transactions between Bank and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses resulting from such
Indemnified Person’s gross negligence or willful misconduct. 
 12.4 Time of Essence. Time is of the essence for the
performance of all Obligations in this Agreement. 

  
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 12.5 Severability of Provisions. Each provision of this Agreement is severable from
every other provision in determining the enforceability of any provision. 
 12.6 Correction of Loan Documents.
Bank may correct patent errors and fill in any blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties. 
 12.7 Amendments in Writing; Integration. All amendments to this Agreement must be in writing signed by Bank, Bank and Borrower. This Agreement and the Loan Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge
into this Agreement and the Loan Documents. 
 12.8 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement. 
 12.9 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than
inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. The obligation of Borrower in Section 12.3 to indemnify Bank shall survive until the
statute of limitations with respect to such claim or cause of action shall have run. 
 12.10 Confidentiality. All
information (other than periodic reports filed by Borrower with the Securities and Exchange Commission) disclosed by Borrower to the Bank or Bank in writing or through inspection pursuant to this Agreement that is marked confidential or by its
nature would reasonably be understood to be confidential shall be considered confidential. The Bank agrees to use the same degree of care to safeguard and prevent disclosure of such confidential information as the Bank uses with its own confidential
information, but in any event no less than a reasonable degree of care. Bank shall not disclose such information to any third party (other than to the Bank’s or Bank’s members, partners, attorneys, governmental regulators, or auditors, or
to Banks or Bank’s subsidiaries and affiliates and prospective transferees and purchasers of the Credit Extensions, all subject to the same confidentiality obligation set forth herein, or as required by law, regulation, subpoena or other order
to be disclosed) and shall use such information only for purposes of evaluation of its investment in Borrower and the exercise of Bank’s rights and the enforcement of its remedies under this Agreement and the other Loan Documents. The
obligations of confidentiality shall not apply to any information that (a) was known to the public prior to disclosure by Borrower under this Agreement, (b) becomes known to the public through no fault of Bank or Bank, (c) is
disclosed to the Bank or applicable Bank by a third party having a legal right to make such disclosure, or (d) is independently developed by the Bank or applicable Bank. Notwithstanding the foregoing, Bank’s agreement of confidentiality
shall not apply if Bank has acquired indefeasible title to any Collateral to which the applicable confidential information relates or in connection with any enforcement or exercise of Bank’s rights and remedies under this Agreement following an
Event of Default, including the enforcement of Bank’s security interest in the Collateral. 
 Bank may use confidential
information for the development of client databases, reporting purposes, and market analysis, so long as Bank and the Bank do not disclose Borrower’s identity or the identity of any person associated with Borrower unless otherwise expressly
permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. 
 12.11 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Bank arising out of or relating to the Loan Documents, the prevailing party shall be entitled to
recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 
 12.12 Right of Set Off. Borrower hereby grants to Bank and to Bank, a lien, security interest and right of set off as security for all Obligations to Bank hereunder, whether now existing or
hereafter arising upon and against all deposits, credits and other Collateral, now or hereafter in the possession, custody, safekeeping or control of Bank or Bank or any entity under the control of Bank or Bank (including an Bank affiliate) or in
transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or 

  
 22 

 
notice, Bank or Bank may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other
Collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS,
CREDITS OR OTHER COLLATERAL OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 12.13 Effect of
Amendment and Restatement. Except as otherwise set forth herein, this Agreement is intended to and does completely amend and restate, without novation, the Original Agreement. All security interests granted under the Original Agreement are
hereby confirmed and ratified and shall continue to secure all Obligations under this Agreement. 
  

	 	13	DEFINITIONS 

13.1 Definitions. As used in this Agreement, the following terms have the following meanings: 

“Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made,
and includes, without limitation, all accounts receivable and other sums owing to Borrower. 
 “Account Debtor”
is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made. 

“Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls
or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.

 “Agreement” is defined in the preamble hereof. 

“Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the
Borrowing Base minus (b) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserve, minus (c) the FX Reduction Amount, minus (d) any
amounts used for Cash Management Services, and minus (e) the outstanding principal balance of any Advances. 

“Bank” is defined in the preamble hereof. 
 “Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, amending, negotiating, administering,
defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower. 

“Borrower” is defined in the preamble hereof. 
 “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the
Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Base” is 80% of Eligible Accounts, as determined by Bank from Borrower’s most recent Transaction Report; provided, however, that Bank may decrease the foregoing
percentages in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral. 
 “Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s Board of Directors and delivered by such Person to Bank approving the Loan
Documents to which such Person is a 

  
 23 

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

“Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed. 

“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United
States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from
either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; and (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue. 

“Cash Management Services” is defined in Section 2.1.5. 

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

“Communication” is defined in Section 10. 

“Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit D. 

“Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for
(a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is
directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement,
or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of
business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the
Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 
 “Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity
intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) for the benefit of the Bank over such Deposit Account, Securities
Account, or Commodity Account. 

  
 24 

 “Credit Extension” is any Growth Capital Advance, any Revolving Advance, FX
Forward Contract, amount utilized for Cash Management Services, or any other extension of credit by Bank for Borrower’s benefit. 
 “Default” means any event which with notice or passage of time or both, would constitute an Event of Default. 
 “Default Rate” is defined in Section 2.4(b). 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit account, account number XX,
maintained with Bank. 
 “Dollars,” “dollars” and “$” each mean lawful money
of the United States. 
 “EBITDA” shall mean (a) the net profit (or loss), after provision for taxes, of
Borrower and its Subsidiaries for any period of determination, plus (b) Interest Expense, plus (c) to the extent deducted in the calculation of net profit (or loss), depreciation expense and amortization expense, plus (d) income tax
expense. 
 “Effective Date” is defined in the preamble of this Agreement. 

“Eligible Accounts” means Accounts which arise in the ordinary course of Borrower’s business that meet all
Borrower’s representations and warranties in Section 5.3. Bank reserve the right at any time after the Effective Date to adjust any of the criteria set forth below and to establish new criteria in their good faith business judgment.
Eligible Accounts shall not include: 
 (a) Accounts that the Account Debtor has not paid within one hundred five
(105) days of invoice date regardless of invoice payment period terms; 
 (b) Accounts owing from an Account Debtor, fifty
percent (50%) or more of whose Accounts have not been paid within one hundred five (105) days of invoice date; 
 (c)
Accounts billed in the United States and owing from an Account Debtor which does not have its principal place of business in the United States or Canada unless such Accounts are otherwise Eligible Accounts and (i) covered in full by credit
insurance satisfactory to Bank, less any deductible, (ii) supported by letter(s) of credit reasonably acceptable to Bank, (iii) supported by a guaranty from the Export-Import Bank of the United States, or (iv) that Bank otherwise
approve of in writing; 
 (d) Accounts billed and payable outside of the United States unless the Bank have a first priority,
perfected security interest or other enforceable Lien in such Accounts; 
 (e) Accounts owing from an Account Debtor to the
extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception
of customary credits, adjustments and/or discounts given to an Account Debtor by Borrower in the ordinary course of its business; 
 (f) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (g) Accounts with credit balances over one hundred five (105) days from invoice date; 

  
 25 

 (h) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to
Borrower exceed twenty-five (25%) of all Accounts, for the amounts that exceed that percentage, unless Bank approve in writing; 
 (i) Accounts owing from an Account Debtor which is a United States government entity or any department, agency, or instrumentality thereof unless Borrower has assigned its payment rights to Bank and the
assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 
 (j) Accounts for
demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional;

 (k) Accounts owing from an Account Debtor that has not been invoiced or where goods or services have not yet been rendered to
the Account Debtor (sometimes called memo billings or pre-billings); 
 (l) Accounts subject to contractual arrangements between
Borrower and an Account Debtor where payments shall be scheduled or due according to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in
accordance with the contract (sometimes called contracts accounts receivable, progress billings, milestone billings, or fulfillment contracts); 
 (m) Accounts owing from an Account Debtor the amount of which may be subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent
of the amount withheld; sometimes called retainage billings); 
 (n) Accounts subject to trust provisions, subrogation rights of
a bonding company, or a statutory trust; 
 (o) Accounts owing from an Account Debtor that has been invoiced for goods that have
not been shipped to the Account Debtor unless Bank, Borrower, and the Account Debtor have entered into an agreement acceptable to Bank in their sole discretion wherein the Account Debtor acknowledges that (i) it has title to and has ownership
of the goods wherever located, (ii) a bona fide sale of the goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from Borrower (sometimes called “bill and hold” accounts); 

(p) Accounts owing from an Account Debtor with respect to which Borrower has received Deferred Revenue (but only to the extent of such
Deferred Revenue); 
 (q) Accounts for which the Account Debtor has not been invoiced; 

(r) Accounts that represent non-trade receivables or that are derived by means other than in the ordinary course of Borrower’s
business; 
 (s) Accounts for which Borrower has agreed to extend Account Debtor’s payment beyond 90 days; 

(t) Accounts subject to chargebacks or others payment deductions taken by an Account Debtor (but only to the extent the chargeback is
determined invalid and subsequently collected by Borrower); 
 (u) Accounts in which the Account Debtor disputes liability or
makes any claim (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; and 

(v) Accounts for which Bank in their good faith business judgment determines collection to be doubtful. 

  
 26 

 “Equipment” is all “equipment” as defined in the Code with such
additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

“ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 

“Event of Default” is defined in Section 8. 

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

“Fixed Charge Coverage Ratio” means the ratio of (A) EBITDA measured on a trailing twelve month basis as of the
last day of each fiscal month (the “measurement date”), less (i) capital expenditures, (ii) cash taxes, and (iii) cash dividends, all paid during the twelve months prior to the measurement date, to (B) Interest
Expense paid during the twelve months prior to the measurement date, plus scheduled principal payments of long term debt due in the twelve months succeeding the measurement date. 

“Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a
Business Day. 
 “FX Business Day” is any day when (a) Bank’s Foreign Exchange
Department is conducting its normal business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 

“FX Forward Contract” is defined in Section 2.1.4. 

“FX Reduction Amount” is defined in Section 2.1.4. 

“FX Reserve” is defined in Section 2.1.4. 
 “GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the
circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles”
as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work
of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including
any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and
other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and
business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Governmental
Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 “Governmental Authority” is any nation or government, any state or other political subdivision thereof, any
agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization. 

  
 27 

 “Growth Capital Advance” is defined in Section 2.1.1(a).

 “Growth Capital Amortization Date” means October 30, 2010. 

“Growth Capital Funding Date” is the date on which the Growth Capital Advance is made to or on account of Borrower,
which shall be the Effective Date or as soon thereafter as practical. 
 “Growth Capital Interest Only Period”
means the period of time commencing on the Growth Capital Funding Date through the day before the Growth Capital Amortization Date. 
 “Growth Capital Loan Commitment” is Fifteen Million Dollars ($15,000,000). 
 “Growth Capital Maturity Date” is the earliest of (a) September __, 2014, or (b) the occurrence of an Event of Default. 

“Growth Capital Repayment Period” is a period of time equal to forty-seven (47) consecutive months commencing on
the Growth Capital Amortization Date. 
 “Growth Capital Scheduled Payment Date” is defined in
Section 2.1.1(b). 
 “Indebtedness” is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and
(d) Contingent Obligations. 
 “Insolvency Proceeding” is any proceeding by or against any Person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other
relief. 
 “Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash)
determined in accordance with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrower and its Subsidiaries, including, without limitation or
duplication, all commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements,
and the interest portion of any deferred payment obligation (including leases of all types). 
 “Inventory” is
all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials,
work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the
above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership
interest or other securities), and any loan, advance or capital contribution to any Person. 
 “Key Person” is
Borrower’s Chief Executive Officer, who is Kevin Rakin as of the Effective Date. 
 “Letter of Credit”
means a standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.1.3. 

“Letter of Credit Application” is defined in Section 2.1.3(a). 

“Letter of Credit Reserve” has the meaning set forth in Section 2.1.3(g). 

“Lien” is a claim, mortgage, lien, deed of trust, levy, charge, pledge, security interest or other encumbrance.

  
 28 

 “Loan Documents” are, collectively, this Agreement, the Perfection
Certificate, the Subordination Agreement, any note, or notes or guaranties executed by Borrower or any guarantor, and any other present or future agreement between Borrower, any guarantor and/or for the benefit of Bank in connection with this
Agreement, all as amended, restated, or otherwise modified. 
 “Material Adverse Change” is (a) a material
impairment in the perfection or priority of Bank’s Lien in the Collateral, (b) a material impairment in the value of the Collateral, or (c) a material adverse change in the business, operations, or condition (financial or otherwise)
of Borrower; in the case of either clause (b) or (c) above, which, in the reasonable opinion of Bank, materially impairs the prospect of repayment of any portion of the Obligations. 

“Net Income” means net income determined in accordance with GAAP, excluding non-cash changes in the fair value of
warrants and any non-cash stock-based compensation expense. 
 “Obligations” are Borrower’s obligation to
pay when due any debts, principal, interest, Bank Expenses, Prepayment Fee, Original Agreement Accrued Fees, Growth Capital Loan Fee, Revolving Commitment Fee, Unused Revolving Line Facility Fee, and other amounts Borrower owes Bank now or later,
whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and
foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s duties under
the Loan Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as
certified with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person
is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or
modifications thereto. 
 “Original Agreement Accrued Fees” means each of the following amounts due and payable
to Bank under (and as defined in) the Original Agreement: (i) the Prepayment Fee, (ii) the unaccrued portion of the Growth Capital Final Payment under (and as defined in) the Original Credit Agreement and (iii) the Revolving Line
Termination Fee. 
 “Overadvance” is defined in Section 2.2. 

“Payment” means all checks, wire transfers and other items of payment received by Bank (including proceeds of Accounts
and payment of the Obligations in full) for credit to Borrower’s outstanding Credit Extensions or, if the balance of the Credit Extensions has been reduced to zero, for credit to its Deposit Accounts. 

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

“Perfection Certificate” is defined in Section 5.1. 

“Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 
 (c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors and with
respect to surety bonds and similar obligations incurred in the ordinary course of business; 

  
 29 

 (e) Indebtedness secured by Permitted Liens; 

(f) Indebtedness of Borrower incurred in connection with vehicle fleet leasing, not to exceed $250,000 in the aggregate in any fiscal
year; and 
 (g) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness
(a) through (f) above, provided that the then-outstanding principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 

“Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; 
 (b) (i) Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as amended from time to time, provided that such investment policy (and any such amendment thereto)
has been approved by Bank; 
 (c) Investments consisting of the endorsement of negotiable instruments for deposit or collection
or similar transactions in the ordinary course of Borrower; 
 (d) Investments accepted in connection with Transfers permitted
by Section 7.1; 
 (e) (i) Investments of Subsidiaries in or to other Subsidiaries or Borrower; and
(ii) Investments by Borrower in Subsidiaries not to exceed $100,000 in the aggregate in any fiscal year; 
 (f) Investments
consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of
Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors which do not exceed $100,000 in the aggregate in any year, provided that no cash loans under this clause
(ii) may be made if an Event of Default is then occurring or would otherwise upon the making thereof; 
 (g) Investments
(including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of
business; 
 (h) joint ventures or strategic alliances, provided that any cash investments by Borrower do not exceed at any time
during the term hereof the lesser of (x) $500,000 or (y) 10% of Borrower’s unrestricted cash; and 
 (i)
Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (i) shall not apply to
Investments of Borrower in any Subsidiary. 
 Notwithstanding the foregoing, Permitted Investments shall not include, and
Borrower and each Subsidiary is prohibited from purchasing, purchasing participations in, entering into any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any type of debt
instrument (except as otherwise expressly permitted in this Agreement), including, without limitation, any corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a dutch auction and more commonly
referred to as an “auction rate security.” 

  
 30 

 “Permitted Liens” are: 

(a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan
Documents; 
 (b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being
contested in good faith and for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank’s and/or Bank’s Liens or they do not exceed $100,000 in the aggregate at any time during the
term hereof; 
 (c) statutory Liens securing claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and
other Persons imposed without action of such parties, provided, they have no priority over any of Bank’s and/or Bank’s Liens or, if they do have priority over any of Bank’s and/or Bank’s Liens, the aggregate amount of such
Liens does not at any time exceed $250,000; 
 (d) Liens to secure payment of workers’ compensation, employment insurance,
old-age pensions, social security and other like obligations incurred in the ordinary course of business, provided, they have no priority over any of Bank’s and/or Bank’s Liens or, if they do have priority over any of Bank’s
and/or Bank’s Liens, the aggregate amount of the Indebtedness secured by such Liens does not at any time exceed $250,000; 

(e) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (d),
but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 

(f) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or
sublicenses of property (other than real property or intellectual property) granted in the ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest;

 (g) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under
Section 8.4 or 8.7; 
 (h) purchase money or other Liens (i) on Equipment acquired or held by Borrower incurred
for financing the acquisition of the Equipment securing no more than $1,000,000 in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if (x) the Lien is confined to the property and improvements and the
proceeds of the Equipment and (y) any such Equipment is acquired after the Effective Date; provided that, for sake of clarity, “purchase money” Liens permitted hereunder and which meet the requirements of the Code with respect to
“purchase-money security interests” shall be entitled to priority over the Bank’s Liens to the extent permitted hereunder; 
 (i) leases for Borrower’s fleet of vehicles, provided the same do not require payment in excess of $250,000 in the aggregate in any fiscal year; 

(j) Liens securing Subordinated Debt; and 
 (k) Liens in favor of other financial institutions arising in connection with Borrower’s deposit and/or securities accounts held at such institutions, provided that Borrower has complied with
Section 6.8 hereof. 
 “Person” is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 

“Prepayment Fee” shall be an additional fee payable to the Bank, unless the Growth Capital Loan is replaced by Bank with
another credit facility provided by Bank, in amount equal to (x) one percent (1.00%) of the 

  
 31 

 
then-outstanding amount of the Growth Capital Loan Commitment, if such prepayment occurs prior to the first anniversary of the Effective Date; (y) one half of one percent (0.50%) of the
then-outstanding amount of the Growth Capital Loan Commitment, if such prepayment occurs after the first anniversary but before the second anniversary of the Effective Date; and (z) zero percent (0.00%) of the then-outstanding amount of the
Growth Capital Loan Commitment, if such prepayment occurs after the second anniversary of the Effective Date. 
 “Prime
Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 

“Registered Organization” is any “registered organization” as defined in the Code with such additions to such
term as may hereafter be made 
 “Requirement of Law” is as to any Person, the organizational or governing
documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject. 
 “Reserves” means, as of any date of determination, such
amounts as Bank may from time to time establish and revise in their good faith business judgment, reducing the amount of Advances and other financial accommodations which would otherwise be available to Borrower (a) to reflect events or
contingencies which, as determined by Bank in their good faith business judgment, do or may reasonably be expected to adversely affect (i) the Collateral or any other property which is security for the Obligations or its value (including
without limitation any increase in delinquencies of Accounts), or (ii) the security interests of Bank in the Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Bank’ good faith belief that
any collateral report or financial information furnished by or on behalf of Borrower or any Guarantor to Bank is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts which Bank
determines in good faith constitutes an Event of Default. 
 “Responsible Officer” is any of the Chief
Executive Officer, President, Chief Financial Officer, Executive Director of Finance and Corporate Controller of Borrower. 

“Revolving Advance” or “Revolving Advances” means an advance (or advances) under the Revolving Line.

 “Revolving Commitment Fee” is defined in Section 2.5(a). 

“Revolving Line” is an amount equal to Fifteen Million Dollars ($15,000,000). 

“Revolving Line Maturity Date” is September     , 2013. 

“Revolving Line Termination Fee” is defined in Section 12.1 

“Securities Account” is any “securities account” as defined in the Code with such additions to such term as
may hereafter be made. 
 “Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of
Borrower’s now or hereafter indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank, the Borrower and the other creditor), on terms
acceptable to Bank. 
 “Subsidiary” means, with respect to any Person, any Person of which more than 50% of the
voting stock or other equity interests is owned or controlled, directly or indirectly, by such Person or one or more Affiliates of such Person. 
 “Transaction Report” is that certain report of transactions and schedule of collections in the form attached hereto as Exhibit C. 

  
 32 

 “Transfer” is defined in Section 7.1. 

“Unused Revolving Line Facility Fee” is defined in Section 2.5(b). 

[Balance of Page Intentionally Left Blank] 

  
 33 

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

			
	BORROWER:
	
	ADVANCED BIOHEALING, INC.
		
	By	 	 /s/ Kevin Rakin

		
	Name:	 	Kevin Rakin
		
	Title:	 	Chairman and CEO
	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Derek R. Brunelle

		
	Name:	 	Derek R. Brunelle
		
	Title:	 	Deal Team Leader

 [Signature
Page to Amended and Restated Loan and Security Agreement] 

 EXHIBIT A 
 The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 
 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except
as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, certificates of deposit, fixtures, letters of credit rights (whether or not
the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all Borrower’s Books relating to the
foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of
the foregoing. 
 Notwithstanding the foregoing, the Collateral does not include any of the following, whether now owned or
hereafter acquired, any copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections,
including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or
not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement
of any of the foregoing; provided, however, the Collateral shall include all Accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the foregoing. 

Pursuant to the terms of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its copyright
rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions,
continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business
of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement of any of the foregoing, without
Bank’s prior written consent. 

 EXHIBIT B 

Loan Payment/Advance Request Form 
 DEADLINE FOR SAME DAY PROCESSING IS NOON P.S.T. 

 

							
	 Fax To:
	  	Date:	  	  
	  	

 LOAN PAYMENT: 
 ADVANCED BIOHEALING, INC. 
  

									
	From Account #	 	  
	 		  	To Account #	  	  

		 	(Deposit Account #)	 		  		  	(Loan Account #)
					
	Principal $	 	  
	 		  	and/or Interest $	  	  

											
						
	Authorized Signature:	 	  
	 		  		  	Phone Number:	  	  

									
	Print Name/Title:	 	  
	 		  		  	

 LOAN ADVANCE: 
 Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire. 

 

									
	From Account #	 	  
	  		  	To Account #	  	  

		 	(Loan Account #)	  		  		  	(Deposit Account #)
					
	Amount of Advance $	 	  
	  		  		  	

 All Borrower’s representations and warranties in the Amended and Restated Loan and Security Agreement are
true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date: 

 

									
	Authorized Signature:	 	  
	 		  	Phone Number:	  	  

					
	 Print Name/Title:
	 	  
	 		  		  	

 OUTGOING WIRE REQUEST: 

Complete only if all or a portion of funds from the loan advance above is to be wired. 
 Deadline for same day processing is noon, P.S.T. 
  

									
	Beneficiary Name:	 	  
	 		  	        Amount of Wire: $	  	  

	Beneficiary Bank:	 	  
	 		  	        Account Number:	  	  

	City and State:	 	  
	 		  		  	

									
				
	Beneficiary Bank Transit (ABA) #:	 	  
	 		  	Beneficiary Bank Code (Swift, Sort, Chip, etc.):            
                     
		 		 		  	     (For International Wire Only)
	  	

  

											
				
	Intermediary Bank:	 	  
	 		  	Transit (ABA) #:                  
                                         
                                
	For Further Credit to:	 	  

		
	Special Instruction:	 	  

 By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering
funds transfer service(s), which agreements(s) were previously received and executed by me (us). 
  

			
	Authorized
Signature:                                       
                          	  	2nd Signature (if
required):                                       
                     
	Print Name/Title:                          
                                         
      	  	Print Name/Title:                         
                                         
          
	Telephone
#:                                        
                                    	  	Telephone #:                          
                                         
                     

 EXHIBIT C 

Transaction Report 

 Input 
  

											
	 GENERAL INPUT SHEET
	  		 	 	    Domestic    	  	  	
		  		  	 TO
	 				  	COMMENTS
	 Date of Data
	  	All reports	 				  	
	 Report number
	  	All reports	 				  	
	 Prior day’s Gross A/R Balance (Line 8)
	  	Transaction rpt	 	$	—  	  	  	
	 Current day’s A/R ineligible Figure
	  	Transaction rpt	 	$	—  	  	  	
	 Prior day’s Loan Balance (Line 17)
	  	Transaction rpt	 	$	—  	  	  	
	 Current day’s loan advance request
	  	Transaction rpt	 	$	—  	  	  	
				
	 SALES JOURNAL
	  		 				  	
	 Invoices :
	  	Normal sales	  	Sch. A	 	 	—  	  	  	Enter as positive
	 Credit Memos:
	  	Normal sales	  	Sch. A	 	 	—  	  	  	Enter as positive
	 Misc. Adj.:
	  	Normal sales	  	Sch. A	 				  	If addition enter as positive
		  	 Check figure -Net sales journal    
	 	$	—  	  	  	If reduction, enter as negative
	 CASH RECEIPTS
	  		 				  	
	 Credit posted to A/R
	  	Sch. B	 	$	—  	  	  	Enter as negative
	 Non-Cash reductions to A/R
	  	Sch. B	 				  	Enter as positive
	 Non-A/R collections
	  	Sch. B	 	$	—  	  	  	Enter as negative
	 Total cash collected to Loan
	  	Sch. B	 				  	Enter as positive
		  	 Check figure - Should be -0-
	 	$	—  	  	  	credit cards posted, but not rec’d by bank
	 A/R ADJUSTMENTS - GENERAL LEDGER
	 				  	
		  		  	 Transaction rpt
	 	$	0.00	  	  	If addition enter as positive
	 Detail separately & remit to Bank
	  		 				  	If reduction, enter as negative

																							
	 Silicon Valley Bank
	  				  				  				  		  			
	Commercial Finance Division	  				  				  				  	Report No:	  	 	0	  
	3003 Tasman Drive, Santa Clara, CA 95054	  				  				  				  	Date	  			

 TRANSACTION REPORT AND LOAN REQUEST 

 

																											
		  	ACCOUNTS RECEIVABLE COLLATERAL	  				  				  				  				  				 	 	Domestic	  
	1	  	Beginning Accounts Receivable Balance Per Previous Report (Line 8)	  				  				  				  				  				 	$	—  	  
	2	  	Add: Sales for Period (Schedule A)	  				  				  				  				  				 	$	—  	  
	3	  	Add: Misc. Customers (Schedule A)	  				  				  				  				  				 	$	—  	  
	4	  	Less: Credit Memos (Schedule A)	  				  				  				  				  				 	$	—  	  
	5	  	Less: Cash Receipts Applied To Accounts Receivable (Direct-Schedule B)	  				  				  				  				  				 	$	—  	  
	6	  	Less: Cash - Other	  				  				  				  				  				 			
	7	  	Adjustments: Dr. - Increase Cr. (Decrease)	  				  				  				  				  				 	$	—  	  
	8	  	Ending Accounts Receivable Balance (Sum Lines 1-7)	  				  				  				  				  				 	$	—  	  
	9	  	Deduct: Ineligible Accounts Receivable Per Aging Dated:	  				  				  				  	 	1/0/1900	  	  				 	$	—  	  
	10	  	 Total Eligible Accounts Receivable
	  				  				  				  				  				 	$	—  	  
								
	11	  	Availability from Receivables after applying advance rate	  				  				  	 	Line Limit	  	  	$	—  	  	  	 	80	% 	 	$	—  	  
	12	  	Less Reserves (Letters of Credit, FX, Cash Services etc):	  				  				  	 	Maximum	  	  	$	—  	  	  				 	$	—  	  
		  	A/R Availability:	  				  				  				  				  				 	$	—  	  
		  	COMPUTATION OF LOAN	  				  				  				  				  				 			
	13	  	Beginning Loan Balance	  				  				  				  				  				 	$	—  	  
	14	  	Add: Returned Checks (NSF, Endorsement, etc.)	  				  				  				  				  				 	$	—  	  
	15	  	Add: Amount deposited back into client’s account after paying down loan balance	  				  				  				  				  				 	$	—  	  
	16	  	Less: Cash Applied To Loan - Accounts Receivable (Direct) from Schedule B	  				  				  				  				  				 	$	—  	  
	17	  	Less: Cash - Other	  				  				  				  				  				 	$	—  	  
	18	  	Ending Loan Balance - Before Loan Request	  				  				  				  				  				 	$	—  	  
	19	  	UNUSED BORROWING AVAILABILITY BEFORE LOAN REQUEST	  				  				  				  				  				 	$	—  	  
	20	  		  				  				  				  				  				 			
	21	  		  				  				  				  				  	 	Loan Advance =	  	 	$	—  	  
	22	  	NEW LOAN BALANCE - AFTER LOAN ADVANCE	  				  				  				  				  				 	$	—  	  
	23	  	REMAINING UNUSED BORROWING AVAILABILITY - After Loan Request	  				  				  				  				  				 	$	—  	  
	The above described Collateral is subject to a security interest in favor of SILICON VALLEY BANK pursuant to the terms and conditions of a Loan and Security
Agreement’s, as executed by and between SILICON VALLEY BANK and the undersigned.	     

  

																											
	BORROWER	 		  				  				 				 	SILICON VALLEY BANK	  
	 Advanced BioHealing, Inc.
	  				  				 				 		  				  			
	Auth Signer:	  				  				 	 	Signature	  	 		  				  			
		 	Name:	 	Marc Posel	  				  				 	 	Name	  	 	Derek R. Brunelle	  				  			
		 	Title:	 	Controller	  				  				 	 	Title	  	 	Vice President	  				  			
		 	Date:	 		  				  				 	 	DATE	  	 		  				  			

			
	Silicon Valley Bank	 	
	Commercial Finance Division	 	
	3003 Tasman Drive, Santa Clara, CA 95054	 	A

 SCHEDULE A - ACCOUNTS
RECEIVABLE ASSIGNED 
  

															
	 Report No.
	  	0	  	Date Assigned	  	1/0/1900	 
	 Customer
Number
	  	 Customer Name
	  	Type	  	Invoice
Date	  	Shipping
Date	  	Invoice No.	  	Invoice
     
 Amount      	 
		  	 Domestic
	  		  		  		  		  			
		  	INVOICES , FREIGHT, SALES TAX - See attached detail	  		  		  	Normal sales	  	$	—  	  
		  		  		  		  		  		  			
		  	CREDIT MEMOS - See attached detail	  	VOIDS	  		  	Normal CMs	  		  	$	—  	  
		  		  		  		  		  		  			
		  	MISC. CUSTOMERS - See attached detail	  		  		  	Normal miscel.	  	$	—  	  
		  		  		  		  		  		  			
		  		  		  		  		  		  			
		  		  		  		  		  		  	 	 	 
		  		  		  		  	Net Sales
 Assignment
	  		  	$	—  	  
		  		  		  		  		  		  	 	 	 

			
	Silicon Valley Bank	  	
	Commercial Finance Division	  	
	3003 Tasman Drive, Santa Clara, CA 95054	  	B

 SCHEDULE B - ACCOUNTS
RECEIVABLE COLLECTION REPORT 
  

																																			
	 Report No.
	  	 	 	  	0	 	  	 	 	  	Date of Remittance	 	 	 	 	  	1/0/1900	 	 	 	 	  	 	 
	 Date
 Received
	  	 Customer
 No.
	  	Customer
Name	 	  	Invoice
Number	 	  	Original
Invoice Amt.	 	  	Actual Funds
Received (Loan)	 	 	Discount/DM
To A/R Norm.	 	  	Amt. Credited
To A/R	 	 	Non-A/R
Collections	 	  	Collection
Source	 
		  		  				  				  				  				 				  				 				  			
	 Domestic
	  		  				  				  				  				 				  				 				  			
		  		  	 	see attached report	 	  				  				  	$	—  	  	 	$	—  	  	  	$	—  	  	 	$	—  	  	  			
		  		  				  				  				  				 				  				 				  			
		  		  				  				  				  				 				  				 				  			
		  		  				  				  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 
	 Totals:
	  		  				  				  				  	 	—  	  	 	 	—  	  	  	 	—  	  	 	 	—  	  	  	 	—  	  
		  		  				  				  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 
		  		  				  				  				  	 	(Trans Rpt Ln 20)	  	 				  	 	(Trans Rpt Ln 5)	  	 				  			
		  		  				  				  				  				 				  				 				  			

 Ineligible 
  

									
	  	  	 	 	  	
      Ineligible      

Domestic
	 
	 A/R CALCULATION
	  	 	As of:	  	  			
		  				  	 	 	 
	   1   Unbilled Accounts
	  				  			
	   2   Over 105 days from invoice date
	  				  	$	—  	  
	   3   Credit Memos Over 105 Days
	  				  	$	—  	  
	   4   Accounts cross-aged at 50%
	  				  	$	—  	  
	   5   Concentrations @ 25%
	  				  	$	—  	  
	   6   Unapproved foreign accounts
	  				  	$	—  	  
	   7   Contra accounts
	  				  	$	—  	  
	   8   Federal Government accounts
	  				  	$	—  	  
	   9   Unapproved Affiliate & Related Accounts
	  				  	$	—  	  
	 10   Deferred Revenue Offsets
	  				  			
	 11   Accounts for Demonstration, Consignment
	  				  	$	—  	  
	 12   Accounts in dispute; Debtor insolvent
	  				  	$	—  	  
	 13   Doubtful Accounts
	  				  	$	—  	  
	 14   Non SVB Approved Accounts
	  				  			
			
	 Total Ineligible to BBC
	  				  	$	—  	  
		  				  	 	 	 

 EXHIBIT D 

COMPLIANCE CERTIFICATE 

TO:        SILICON VALLEY BANK, as Bank 
 Date:                                
                       
 FROM:
 ADVANCED BIOHEALING, INC. 
 The undersigned authorized officer of ADVANCED BIOHEALING, INC. (“Borrower”)
certifies that under the terms and conditions of the Amended and Restated Loan and Security Agreement between Borrower, Bank and the Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations
and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date,
(4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as
otherwise permitted pursuant to the terms of Section 5.8 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which
Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to
the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and
that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly A/R and A/P agings, reconciliations and Transaction Report, deferred revenue schedule	  	Monthly within 15 days	  	Yes No
			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes No
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes No
			
	Annual projections	  	30 days after FYE	  	Yes No
			
	Transaction Report (when no Advances outstanding)	  	More frequent of weekly or with each request for an Advance	  	Yes No
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes No

  

													
	 Financial Covenant
	  	Required	 	  	Actual	 	  	Complies	 
	 Maintain at all times, measure as indicated:
	  				  				  			
				
	 Minimum Liquidity (at all times)
	  	$	6,000,000	  	  	$	            	  	  	 	Yes No	  
				
	 Minimum Fixed Charge Coverage Ratio (tested monthly)
	  	 	**	  	  	 	            :1.0	  	  	 	Yes No	  
				
	 Minimum Profitability (tested monthly; rolling 3-month basis)
	  	$	1.00	  	  	$	            	  	  	 	Yes No	  

 ** 

 

					
	Period	  	Minimum FCCR	 
		
	 Effective Date through September 30, 2010
	  	 	1.10:1.00	  
		
	 October 1, 2010 through December 31, 2010
	  	 	1.25:1.00	  
		
	 January 1, 2011 and thereafter
	  	 	1.50:1.00	  

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

 
  
  

 
  

									
	ADVANCED BIOHEALING, INC.	 		 	BANK’S USE ONLY
					
		 		 		 	Received by:	 	  

	By:	 	  
	 		 		 	AUTHORIZED SIGNER
	Name:	 	  
	 		 	Date:	 	  

	Title:	 	  
	 		 		 	
		 		 		 	Verified:	 	  

		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	  

					
		 		 		 	Compliance Status:	 	Yes  NoEmployment Agreement

 Exhibit 10.21 
 February 23, 2007 
 Kevin Rakin 
 14 Side Hill Road 
 Westport, CT 06880 

Re: Employment Agreement 

Dear Kevin: 
 This letter is to
confirm our understanding with respect to your employment by Advanced BioHealing, Inc. (the “Company”) (the terms and conditions agreed to in this letter are hereinafter referred to as the “Agreement”). Effective upon the initial
closing of the Company’s sale of Series C Preferred Stock (the “Series C Financing”) currently being negotiated (the “Effective Date”), and in consideration of the mutual promises and covenants contained in this Agreement,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, we have agreed as follows: 
 1. Employment. 
 (a) Subject to the terms and conditions of
this Agreement, the Company shall employ you, and you shall be employed by the Company and any of its successors, in the position of Chief Executive Officer (“CEO”) and you shall be the most senior officer in the Company. You shall report
exclusively to the Board of Directors of the Company (the “Board”). In addition, during the term of your employment, the Company shall cause you to be elected to the Board. You shall have the responsibilities, duties and authority
commensurate with the position of a chief executive officer, including such responsibilities, duties and authority as may be reasonably assigned to you from time to time by the Board. The performance of your services hereunder shall be at the
offices of the Company in Fairfield County, Connecticut and in California (such services to be rendered primarily at said Connecticut office), subject to reasonable travel requirements to other locations during the course of such performance.
 
 (b) Devotion to Duties. While you are employed hereunder, (i) you shall use your best
efforts, skills and abilities to perform faithfully all duties assigned to you pursuant to this Agreement and shall devote approximately seventy-five percent (75%) of your business time and energies to the business and affairs of the Company
and (ii) you shall not undertake any other employment, consultancy, advisory or director position from any person or entity without the prior written consent of the Board (which consent shall not be unreasonably withheld, delayed or conditioned
by the Board); provided, however, that nothing in this Section 1(b) shall restrict you from managing your personal investments, evaluating or engaging in passive activities or continuing the activities listed

 
in Schedule 1, provided that none of the foregoing activities shall interfere in any material respect with the performance of your duties hereunder. 

(c) Consulting Agreement. The Consulting Agreement, dated as of June 1, 2006 (the “Consulting
Agreement”), between the Company and you is hereby terminated as of the date of this Agreement as if the date hereof was the date originally set forth in the Consulting Agreement for the expiration of the term thereof, notwithstanding any
provision requiring prior written notice contained therein. For purposes of clarity, it is understood and agreed that the provisions of Section 2(c) hereof provide for the only equity compensation that the Company is obligated to provide to you
after the Effective Date, and, notwithstanding the survival provisions of Section 10.5 of the Consulting Agreement, the provisions of Sections 2.2(b) of the Consulting Agreement do not apply to the Series C Financing and shall be of no further
force or effect. 
 2. Compensation. 

(a) Base Salary. While you are employed hereunder, the Company shall pay you a base salary at the annual rate of
$375,000 (the “Base Salary”). The Base Salary may be subject to increase from time to time in the discretion of the Board. The Base Salary shall be payable in substantially equal installments in accordance with the Company’s payroll
practices as in effect from time to time, which currently provide for semi-monthly payments. The Company shall deduct from each such installment all amounts required to be deducted or withheld under applicable law or under any employee benefit plan
in which you participate. 
 (b) Bonus. In addition to the Base Salary, the Company may pay you a bonus in
the manner determined from time to time in the discretion of the Board. 
 (c) Equity Compensation. You
agree that the only equity compensation which the Company shall be obligated to provide you is as follows: 
 (i)
Within thirty (30) days from date of the second issuance of the Company’s Series C Preferred Stock or, if such issuance does not occur within sixty (60) days of the date of the purchase agreement (the “Purchase Agreement”)
governing the sale of such Series C Preferred Stock, within ninety (90) days from the date of this Agreement, you shall be granted a warrant with an exercise period of ten years to purchase that amount of shares of the Company’s Series C
Preferred Stock as represents one percent (1%) of the Fully-Diluted Common Stock (as defined below) as of the completion of all closings for the sale of such Series C Preferred Stock pursuant to the Purchase Agreement, at an exercise price per
share equal to the lowest price being paid by investors in the Purchase Agreement. The Warrant shall be in a form reasonably satisfactory to you and the Company. 

(ii) Reasonably promptly following the date of the second issuance of the Company’s Series C Preferred Stock or, if
such issuance does not occur within sixty (60) days of the date of the Purchase Agreement, within ninety (90) days 

  
 2 

 
from the date of this Agreement, you shall be granted options (“Options”), pursuant to a written stock option agreement between the Company and you under the Company’s 2004 Stock
Option Plan, as amended (the “Plan”), to purchase shares of the Company’s common stock, par value $.001 per share (the “Common Stock”), representing, together with any options (the “Consulting Agreement Options”)
granted to you in accordance with the Consulting Agreement, up to five percent (5%) of the Fully-Diluted Common Stock as of the completion of all closings for the sale of such Series C Preferred Stock pursuant to the Purchase Agreement, at an
exercise price per share equal to the fair market value of the Common Stock on the date of grant (based upon an evaluation thereof by an independent third party consultant). The number of Options granted to you in accordance with this Agreement that
shall be immediately exercisable (“Immediately Exercisable Options”) shall be equal to the number of Options that, together with the Consulting Agreement Options, represent one percent (1.0%) of the Fully-Diluted Common Stock as of
the completion of all closings for the sale of such Series C Preferred Stock pursuant to the Purchase Agreement. All Options other than Immediately Exercisable Options shall vest, except as provided below, in sixteen equal quarterly installments
(fractional shares shall be rounded down to the nearest whole share), with the first installment vesting on June 1, 2007. Notwithstanding the foregoing, (A) all of the Options shall become fully vested and exercisable if a Change in
Control (as defined below) occurs while you are an employee of the Company (or within ninety (90) days after the termination of your employment by the Company without Cause or by you for Good Reason) and (B) the Options shall cease to vest
upon the date that your employment terminates unless your employment is terminated by the Company without Cause (as defined below) or you resign for Good Reason (as defined below), in which case the Options shall continue to vest for nine
(9) months following such date of termination for the number of full quarterly installments that occur during nine (9) month period, provided that such continued vesting is conditional on (x) your not being in breach of your
obligations under Section 6 of this Agreement or your Proprietary Rights Agreement which breach, if reasonably curable, is not cured within 30 days after delivery to you by the Company of written notice of such breach, and (y) the
Company’s receipt of an executed Waiver and Release Agreement in the from attached hereto as Exhibit I and the expiration of the revocation period set forth therein. With respect to then exercisable Options, you shall have an exercise period of
three years from the later of the date of the termination of your employment, any consultancy to the Company or membership of the Board. Payment of the exercise price for the Options may be made at your option by the surrender and cancellation of
shares of Common Stock owned by you or issuable upon exercise of the Options, which shall be valued and credited based upon an evaluation thereof by an independent third party consultant selected by the Company and reasonably acceptable to you. The
Option Agreement shall be in a form reasonably satisfactory to you and the Company. 
 (iii) For purposes of this
Agreement, “Fully-Diluted Common Stock” means, as of any particular date, the number of shares of Common Stock then 

  
 3 

 
issued and outstanding (treating all securities of the Company convertible into or exercisable or exchangeable for shares of Common Stock, including without limitation, options, warrants,
preferred stock and convertible notes and debentures (“Convertible Securities”) and all securities convertible into, or exercisable or exchangeable for Convertible Securities as having been fully converted into or exercised or exchanged
for, as applicable, shares of Common Stock) plus any and all options authorized and available, but not then granted, under the Plan. 
 (iv) For purposes of this Agreement, “Change of Control” means (A) a merger or consolidation in which the Company is a constituent party or a subsidiary of the Company is a constituent
party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or consolidation involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding
immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the
capital stock of (1) the surviving or resulting corporation or (2) if the surviving or resulting corporation is a wholly owned subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of
such surviving or resulting corporation; provided that, for the purpose of this definition, all shares of Common Stock issuable upon exercise of options outstanding immediately prior to such merger or consolidation, or upon conversion of options,
warrants, preferred stock and convertible notes and debentures outstanding immediately prior to such merger or consolidation shall be deemed to be outstanding immediately prior to such merger or consolidation and, if applicable, converted or
exchanged in such merger or consolidation on the same terms as the actual outstanding shares of Common Stock are converted or exchanged, (B) the sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of
all or substantially all of the assets of the Company or (C) the liquidation or dissolution of the Company or the Company ceasing to do business. 
 (d) Vacation. You shall be entitled to four (4) weeks paid vacation in each full calendar year (and the pro rated portion thereof in any partial calendar year that this Agreement is in effect)
and paid holidays and personal days in accordance with the Company’s policies for its senior executives as in effect from time to time. All vacation days in excess of five (5) consecutive days shall be taken at times mutually agreed by you
and the Company and shall be subject to the business needs of the Company. You may accrue unused vacation days up to one and one-half times your annual vacation allotment such that you shall be entitled to no more than six weeks paid vacation at any
time during any calendar year. 
 (e) Fringe Benefits. You (and where applicable, your eligible family
members) shall be entitled to participate in all employee benefit plans which the Company provides or may establish for the benefit of its senior executives generally (for example, group life, disability, medical, dental and other insurance,
retirement, pension, profit-sharing and similar plans) (collectively, the “Fringe Benefits”). Your eligibility to 

  
 4 

 
participate in the Fringe Benefits and receive benefits thereunder shall be subject to the plan documents governing such Fringe Benefits. Nothing contained herein shall require the Company to
establish or maintain any Fringe Benefits. 
 (f) Reimbursement of Expenses. Upon presentation of
documentation of such expenses reasonably satisfactory to the Company, the Company shall reimburse you for all ordinary and reasonable out-of-pocket business expenses that are reasonably incurred by you in furtherance of the Company’s business
in accordance with the Company’s policies with respect thereto as in effect from time to time. 
 (g)
Life Insurance. The Company shall maintain a term life insurance policy covering your life in the face amount of not less than $1,000,000.00 with respect to which you shall have the right to designate the beneficiary. Upon the termination of
your employment for any reason, the Company shall, within 30 days after such termination, transfer (without cost to you), free and clear of liens and security interests, the ownership of said life insurance to you or your designee. 

3. Term of Employment. 
 (a) Term; Termination. Subject to the terms hereof, your employment hereunder shall commence on the date of this Agreement and continue until the first to occur of the following: 

(i) Your death, whereupon your employment shall be terminated immediately; 

(ii) Written notice to you by the Company of the termination of your employment as follows: 

(A) Effective the date of such notice, following your failure, due to illness, accident or any other physical or mental
incapacity, to perform the essential functions of your position for an aggregate of ninety business days within any period of one hundred and eighty consecutive business days during the term hereof as determined by a physician selected by mutual
agreement of you and the Company (“Disability”), provided that if applicable law provides any provision regarding disability that is more favorable to you than that set forth herein, such more favorable provision shall govern; or

 (B) Effective the date of such notice, for Cause (as defined below) or without Cause; or 

(iii) Written notice to the Company by you of the termination of your employment, effective the date of such notice.

 (b) Definition of Cause. For purposes of this Agreement, “Cause” means (A) your
conviction of a felony, either in connection with the performance of your obligations to the Company or which otherwise materially and adversely affects your ability to 

  
 5 

 
perform such obligations, damages the Company in any material respect or brings the Company into public disgrace or disrepute, (B) your willful disloyalty or deliberate dishonesty which has
a material adverse effect upon the Company, damages the Company in any material respect or brings the Company into public disgrace or disrepute, (C) the commission by you of an act of fraud or embezzlement against the Company, or (D) a
breach by you of the provisions Section 6 of this Agreement or the Proprietary Information and Inventions Agreement by and between you and the Company dated the date of this Agreement (the “Proprietary Rights Agreement”), or of any
other material provision of this Agreement, which breach, if reasonably curable, is not cured within 30 days after delivery to you by the Company of written notice of such breach. With respect to any such determination, the Board shall act fairly
and in good faith. No act or omission on your part will be considered “willful” unless done, or omitted to be done, by you in bad faith or without your reasonable belief that such act or omission was in the best interest of the Company.
Any act or omission pursuant to a direction or instruction in a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be presumed to be done, or omitted to be done, by you in good faith and in the best interests of
the Company. The termination of your employment shall not be deemed to be for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted or notice of action approved by the affirmative vote of not less than a
majority of the entire membership of the Board (excluding you) at a meeting of the Board called and held for such purpose (after reasonable notice is provided to you and you are given an opportunity, together with counsel, to be heard before the
Board) finding that, in the good faith opinion of the Board, you are guilty of the conduct described above, and specifying the particulars thereof in detail. 
 4. Effect of Termination. 
 (a) Definitions. For
purposes of this Agreement, “Accrued Obligations” means (A) the portion of your Base Salary as has accrued prior to any termination of your employment with the Company and has not yet been paid, (B) an amount equal to the value
of your accrued unused vacation days, (C) the amount of any Bonus accrued but not yet paid and (D) the amount of any expenses properly incurred by you on behalf of the Company prior to any such termination and not yet reimbursed.

 (b) Death or Disability; Termination Without Cause or for Good Reason. If your employment hereunder is
terminated as a result of your death or Disability, is terminated by the Company without Cause or is terminated by you for Good Reason, the Company shall (i) pay the Accrued Obligations to you (or your estate) promptly following such
termination, (ii) if your employment is terminated due to death or Disability, within thirty (30) days following the effective date of termination, pay you an amount equal to nine months of your Base Salary, at the rate in effect at the
time of such termination, (iii) if your termination is due to termination by the Company without Cause or termination by you for Good Reason, continue to pay you your Base Salary, at the rate in effect at such termination, in accordance with
the Company’s normal payroll cycle during the period commencing on the date of termination and ending on the nine (9) month anniversary of such date of termination, (iv) if your termination is due to termination by the Company without
Cause or termination by you for Good Reason, in 

  
 6 

 
either case within twelve (12) months after a Change in Control or ninety (90) days before a Change in Control, within thirty (30) days following the effective date of such
termination (or such Change in Control, if later), pay you an amount equal to twelve (12) months of your Base Salary, at the rate in effect at the time of such termination, and (v) for a period of nine (9) months (or one (1) year
if the termination occurs within twelve (12) months after a Change in Control or ninety days before a Change of Control), continue benefits to you and your family under the health and life insurance programs at least equal to those which would
have been provided to them in accordance with this Agreement if your employment had not been terminated; provided, however, that (x) if you become reemployed with another employer and receive medical or other welfare benefits under
another employer provided plan, the medical and other welfare benefits described herein shall cease, and (y) the payments pursuant to clauses (ii), (iii) and (iv) are conditional on (A) your not being in breach of your
obligations under Section 6 of this Agreement or your Proprietary Rights Agreement which breach, if reasonably curable, is not cured within 30 days after delivery to you by the Company of written notice of such breach, and (B) the
Company’s receipt of an executed Waiver and Release Agreement (by you or your other duly authorized representative) in the from attached hereto as Exhibit I and the expiration of the revocation period set forth therein. 

(c) Termination for Cause; Voluntary Termination. If your employment hereunder is terminated by the Company for
Cause or by you for reasons other than Good Reason, the Company shall pay the Accrued Obligations to you promptly following such termination; provided, however, the Company shall have no obligation to pay any Bonus with respect to the year in which
you were terminated, whether earned, accrued or otherwise. 
 (d) Definition of Good Reason. “Good
Reason” shall mean: (i) the assignment to you of any duties materially inconsistent with your position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by this Agreement,
or any other action by the Company which results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company within 30 days after receipt of notice thereof given by you; or (ii) any failure by the Company to comply with any of the material provisions of this Agreement (including, without limitation, the Company’s requiring
you to regularly provide services at any office or location other than as provided in Section 1(a) hereof) ) which is remedied by the Company within 30 days after receipt of notice thereof given by you. It is understood that after any Change in
Control, if the principal functions of the Board are being exercised by one or more of the board of directors, chief executive or another senior officer of the acquiror (the “Acquiror Reporting Authority”), Good Reason shall not include
(x) the termination of your service on the Board, or (y) whether you report to the Board and your responsibilities, duties and authority are assigned by the Board, provided that you are thereafter reporting to the Acquiror Reporting
Authority and the principal functions of the Board referred to in Section 1(a) are thereafter assumed by the Acquiror Reporting Authority. It is understood that your service as Chairman of the Board shall at all times be at the pleasure of the
Board. 

  
 7 

 5. Rights and Obligations with Respect to Common Stock. 

(a) Registration and Preemptive Rights. You shall have registration rights pursuant to the Second Amended and
Restated Registration Rights Agreement, to be dated the date of the Purchase Agreement, by and among the Company, you and the other parties named therein, as amended from time to time, and you shall have preemptive rights pursuant to the Amended and
Restated Investor Rights Agreement, to be dated the date of the Purchase Agreement, by and among the Company, you and the other parties named therein, as amended from time to time. The Company agrees that your preemptive rights shall be determined
based upon all vested and unvested stock options as well as all warrants which you hold. 
 (b) Obligation to
Sell. Notwithstanding anything herein to the contrary, or in the bylaws of the Company, as amended from time to time, or any agreement relating to the capital stock of the Company, in the event that the Board and the holders of more than fifty
percent (50%) of the then outstanding shares (on an “as converted” basis) of all classes of the capital stock of the Company approve a bona fide arm’s length sale of the Company (including a binding commitment to sell) to
an unaffiliated third party in a single transaction or a series of related transactions (whether by sale of shares, merger, amalgamation, consolidation, sale of assets or similar transaction) (a “Recommended Transaction”), you shall be
obliged to sell if required by the selling stockholders, in the same transaction or transactions and on the same terms, all of the Common Stock held by you and you, if you are required to participate in the sale, shall vote, or grant proxies to
vote, all of your shares of Common Stock in favor of the Recommended Transaction and shall take such other votes or actions as may be necessary, in the reasonable judgment of the selling stockholders, to facilitate the Recommended Transaction.

 6. Prohibited Competition. 
 (a) Certain Acknowledgements and Agreements. 
 (i) We have
discussed, and you recognize and acknowledge the competitive and proprietary aspects of the business of the Company. 
 (ii) You acknowledge that a business shall be deemed a “competitive business” if it researches, develops, manufactures or commercializes cell-based wound healing technology or products.

 (iii) You further acknowledge that, while you are employed hereunder, the Company will furnish, disclose or
make available to you Confidential Information (as defined below) related to the business of the Company. You also acknowledge that such Confidential Information has been developed and will be developed by the Company through the expenditure by the
Company of substantial time, effort and money and that all such Confidential Information could be used by you to compete with the Company. You also acknowledge that if you become employed or affiliated with any competitive business in violation of
your obligations in this Agreement, it is possible that you could disclose the 

  
 8 

 
Confidential Information to such competitor and could use such Confidential Information, knowingly or unknowingly, on behalf of such competitor. Further, while you are employed hereunder, you
will be introduced to customers and others with important relationships to the Company. You acknowledge that any and all “goodwill” created through such introductions as the same relates to the business of the Company belongs exclusively
to the Company, including, without limitation, any goodwill created as a result of direct or indirect contacts or relationships between yourself and any customers of the Company. 

(iv) For purposes of this Agreement, “Confidential Information” means any information concerning the
organization, business (including products and technology) or finances of the Company or of any third party that the Company is under an obligation to keep confidential that is maintained by the Company as confidential. Such Confidential Information
shall include, but is not limited to, trade secrets or confidential information respecting inventions, products, technology, data, test results, designs, methods, formulae, know-how, show-how, techniques, systems, processes, software programs, works
of authorship, research and development, agreements with customers or other entities or individuals, data, specifications, customer (existing and prospective) and supplier identification, financials, product cost and profit information, projects,
plans and proposals. For purposes hereof, “Confidential Information” does not include, and there shall be no obligation hereunder with respect to (i) information known by you prior to your employment by the Company other than
information learned during the period you were a consultant to the Company, and (ii) information that is or becomes generally available to the public other than as a result of a disclosure by you in violation of the terms of this
Agreement. 
 (b) Non-Competition; Non-Solicitation. While you are employed hereunder and for a period of
(i) nine (9) months following the termination of your employment hereunder for any reason or for no reason, or (ii) if your employment is terminated by the Company without Cause or by you for Good Reason, in either case within twelve
(12) months after a Change in Control, then for a period of twelve (12) months following such termination, you shall not, without the prior written consent of the Company: 

(i) For yourself or on behalf of any other person or entity, directly or indirectly, either as principal, partner,
stockholder, officer, director, member, employee, consultant, agent, representative or in any other capacity, own, manage, operate or control, or be concerned, connected or employed by, or otherwise associate in any manner with, engage in or have a
financial interest in, any competitive business (each, a “Restricted Activity”), except that (A) nothing contained herein shall preclude you from purchasing or owning securities of any such business if such securities are publicly
traded, and provided that your holdings do not exceed one percent (1%) of the issued and outstanding securities of any class of securities of such business and (B) nothing contained herein shall prohibit you from engaging in a Restricted
Activity for or with respect to any subsidiary, division or affiliate or unit (each, a “Unit”) of an entity if that Unit is not engaged in a competitive business, irrespective of whether some other Unit of

  
 9 

 
such entity engages in a competitive business (as long as you do not engage in a Restricted Activity for such other Unit); 

(ii) Either individually or on behalf of or through any third party, directly or indirectly, solicit, divert or
appropriate or attempt to solicit, divert or appropriate, for the purpose of engaging in any competitive business, any customers or patrons of the Company or any prospective customers or patrons with respect to which the Company has developed or
made a sales presentation (or similar offering of services); 
 (iii) Either individually or on behalf of or
through any third party, directly or indirectly, (A) solicit, entice or persuade or attempt to solicit, entice or persuade any employees of or consultant to the Company to leave the service of the Company for any reason or (B) employ,
cause to be employed, or solicit the employment of, any employee of or consultant to the Company while any such person is providing services to the Company; provided however that the provisions of this Section 6(b)(iii) shall not apply to
Jennifer Barretta, Gerald Vovis and Dean Tozer to the extent those individuals are contacted by you in connection with your activities permitted under Section 1(b) hereof, any such person would not be in violation of any employee or consulting
agreement or other obligation to or with the Company, and the duties of such individuals to the Company has priority over any such other activity; or 
 (iv) Either individually or on behalf of or through any third party, directly or indirectly, interfere with, or attempt to interfere with, the relations between the Company and any vendor or supplier to
the Company. 
 (c) Reasonableness of Restrictions. You further recognize and acknowledge that
(i) the types of employment which are prohibited by this Section 6 are narrow and reasonable in relation to the skills which represent your principal salable asset both to the Company and to your other prospective employers and
(ii) the time period and the geographical scope of the provisions of this Section 6 is reasonable, legitimate and fair to you in light of the fact that research in the field in which the Company is engaged and may engage is highly
competitive and conducted on a global basis, the Company’s need to market its services and sell its products in a large geographic area in order to have a sufficient customer base to make the Company’s business profitable and in light of
the limited restrictions on the type of employment prohibited herein compared to the types of employment for which you are qualified to earn your livelihood. 
 (d) Survival of Acknowledgements and Agreements. Your acknowledgements and agreements set forth in this Section 6 shall survive the termination of this Agreement and the termination of your
employment hereunder for any reason or for no reason. 
 7. Proprietary Rights Agreement. You hereby agree and
acknowledge that you are subject to the terms and conditions of the Proprietary Rights Agreement, and that the provisions 

  
 10 

 
of the Proprietary Rights Agreement shall survive expiration or termination of this Agreement in accordance with the terms thereof. 

8. Disclosure to Future Employers. Nothing contained in this Agreement or from the course of dealing between the parties
constitutes an agreement, express or implied, regarding the Company’s rights (or lack thereof) to provide the covenants contained in Section 6 of this Agreement and a copy of the Proprietary Rights Agreement to any future employer or to
any business or enterprise which you may, directly or indirectly, own, manage, operate, finance, join, control or in which you may participate in the ownership, management, operation, financing or control, or with which you may be connected as an
officer, director, employee, partner, principal, agent, representative, consultant or otherwise. 
 9. Records. Upon
termination of your employment hereunder for any reason or for no reason and at any other time requested by the Company, you shall deliver to the Company any property of the Company which may be in your possession, including products, materials,
memoranda, notes, records, reports or other documents or photocopies of the same, excluding personal correspondence. 
 10.
Insurance. The Company, in its sole discretion, may apply for and purchase key person life insurance on your life in an amount determined by the Company with the Company as beneficiary and one or more other policies of insurance insuring your
life. You shall submit to any medical or other examinations and to execute and deliver any applications or other instruments in writing that are reasonably necessary to effectuate such insurance. 

11. Representations. You hereby represent to the Company that you understand this Agreement, that you enter into this Agreement
voluntarily and that your employment under this Agreement will not in and of itself conflict with any legal duty owed by you to any other party, or with any agreement to which you are a party or by which you are bound, including, without limitation,
any non-competition or non-solicitation provision contained in any such agreement. Notwithstanding the foregoing, the Company acknowledges and agrees that (i) you are now (and will, by virtue of your outside activities, be and become) bound by
confidentiality and/or similar agreements and/or obligations in favor of other persons and entities, and (ii) such other agreements and/or obligations shall not constitute a breach of this Agreement (and the Company shall not require you to
take any action which would result in such a breach). You shall indemnify and hold harmless the Company (and its officers, directors, security holders, partners, members, employees, agents and representatives, but only in their capacities as such)
against loss, damage, liability or expense arising from any claim brought against them by a third party based upon any breach by you of such representation. 
 12. Company Indemnity. The Company has agreed to enter into an Indemnity Agreement with you which shall be effective on the Effective Date. 

13. General. 
 (a) Notices. All notices, requests, consents and other communications hereunder which are required to be provided, or which the sender elects to provide, in writing, shall be addressed to the
receiving party’s address set forth above or to such 

  
 11 

 
other address as a party may designate by notice hereunder and will be either (i) delivered by hand, (ii) sent by overnight courier or (iii) sent by registered or certified mail,
return receipt requested, postage prepaid. 
 (b) Entire Agreement. This Agreement, together with the
Proprietary Rights Agreement and the other agreements specifically referred to herein, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written
agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the
express terms and provisions of this Agreement. 
 (c) Modifications and Amendments. The terms and
provisions of this Agreement may be modified or amended only by written agreement executed by the parties hereto. 
 (d) Waivers and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the
benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall
be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent. 
 (e) Assignment. The Company may assign its rights and obligations hereunder to any person or entity that succeeds to all or substantially all of the Company’s business or that aspect of the
Company’s business in which you are principally involved. You may not assign your rights and obligations under this Agreement without the prior written consent of the Company and any such attempted assignment by you without the prior written
consent of the Company shall be void. 
 (f) Benefit. All statements, representations, warranties,
covenants and agreements in this Agreement shall be binding on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement shall be construed to create any
rights or obligations except between the Company and you and no person or entity shall be regarded as a third-party beneficiary of this Agreement. 
 (g) Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the law of the State of Connecticut, without giving
effect to the conflicts of law principles thereof. 
 (h) Jurisdiction, Venue and Service of Process. Any
legal action or proceeding with respect to this Agreement shall be brought in the courts of the State of Connecticut in Fairfield County or of the United States of America for the District of Connecticut. By execution and delivery of this Agreement,
each of the parties hereto 

  
 12 

 
accepts for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts. 

(i) WAIVER OF JURY TRIAL. ANY ACTION, DEMAND, CLAIM OR COUNTERCLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT
SHALL BE RESOLVED BY A JUDGE ALONE AND EACH OF YOU AND THE COMPANY WAIVE ANY RIGHT TO A JURY TRIAL THEREOF. 

(j) Severability. The parties intend this Agreement to be enforced as written. However, (i) if any portion or
provision of this Agreement is to any extent declared illegal or unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as
to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law and (ii) if any provision, or part
thereof, is held to be unenforceable because of the duration of such provision, the geographic area covered thereby, or other aspect or scope of such provision, the court making such determination shall have the power to reduce the duration,
geographic area of such provision, or other aspect or scope of such provision and/or to delete specific words and phrases (“blue-penciling”), and in its reduced or blue-penciled form, such provision shall then be enforceable and shall be
enforced. 
 (k) Headings and Captions. The headings and captions of the various subdivisions of this
Agreement are for convenience of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof. 
 (l) Injunctive Relief. You hereby expressly acknowledge that any breach of any of the terms and/or conditions set forth in Section 6 may result in substantial, continuing and irreparable
injury to the Company. Therefore, in addition to any other remedy that may be available to the Company, the Company shall be entitled to seek injunctive or other equitable relief by a court of appropriate jurisdiction in the event of any breach of
the terms of Section 6. The period during which the covenants contained in Section 6 shall apply shall be extended by any periods during which you are found by a court to have been in violation of such covenants, provided that the duration
of such extension shall not exceed a period of time equal to the period commencing on the date of such violation and continuing for a period of sixty (60) days after the date the Company first becomes aware of such violation. 

(m) No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power
or remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of the party. No single or partial exercise of any right, power or remedy under this Agreement by a
party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election
of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not 

  
 13 

 
expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a waiver
of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand. 
 (n) Counterparts. This Agreement may be executed in counterparts, as well as via facsimile or other electronic means, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
 (o) Opportunity to Review. You hereby acknowledge that you have
had adequate opportunity to review these terms and conditions and to reflect upon and consider the terms and conditions of this Agreement and that you have had the opportunity to consult with counsel of your own choosing regarding such terms. In
connection with such consultation with counsel, the Company shall reimburse any reasonable legal fees incurred by you prior to the Effective Date. You further acknowledge that you fully understand the terms of this Agreement and have voluntarily
executed this Agreement. 
 (p) No Mitigation. In no event shall you be obligated to seek other employment
or take any other action by way of mitigation of the amounts payable to you under any of the provisions of this Agreement and such amounts shall not be reduced whether or not you obtain other employment. The Company and you (as the case may be, the
“Contesting Party”) agree to pay as incurred, to the full extent permitted by law, all legal fees and expenses which the other party (the “Defending Party”) may reasonably incur as a result of any contest by the Contesting Party,
provided that the Defending Party prevails in at least one material issue, of the validity or enforceability of, or liability under, any provision of this Agreement (including, without limitation, as a result of any contest by the Contesting Party
about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f) (2) (A) of the Internal Revenue Code of 1986, as amended.

 (q) Actions on Behalf of the Company. Any decision or determination to be made or taken by
the Company with respect to this Agreement shall be made only by the Board, acting in accordance with the Company’s bylaws and certificate of incorporation, and not by the chief executive officer or any other employee
of the Company.
 14. Certain Additional Payments by the Company. 

(a) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any
payment or distribution by the Company to you or for your benefit (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under
this Section 14) that is determined to be a payment contingent on a Change of Control of the Company under Section 280G(b)(2) of the Code (a “Covered Payment”) would be subject to the excise

  
 14 

 
tax imposed by Section 4999 of the Code or any interest or penalties are incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then you shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by you of all taxes (including any interest or
penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, you retain an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Covered Payments. Notwithstanding the foregoing provisions of this Section 14(a), if it shall be determined that you are entitled to a Gross-Up Payment, but that the Covered Payments do not
exceed 110% of the greatest amount (the “Reduced Amount”) that could be paid to you such that the receipt of Covered Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to you and the Covered Payments, in
the aggregate, shall be reduced to the Reduced Amount. 
 (b) Subject to the provisions of Section 14(c), all determinations
required to be made under this Section 14, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by such certified
public accounting firm as may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and you within 15 business days of the receipt of notice from you that there has
been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Company shall appoint another
nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the
Company. Any Gross-Up Payment, as determined pursuant to this Section 14, shall be paid by the Company to you within five days of the receipt of the Accounting Firm’s determination. Any determination by the Accounting Firm shall be binding
upon the Company and you. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been
made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 14(c) and you thereafter are required
to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to you or for your benefit. In the event that prior to the time
you have filed any of your tax returns for the calendar year in which the Change in Ownership event covered by Code Section 280G(b)(2) occurred, the Accounting Firm determines, for any reason whatever, the correct amount of the Gross-Up Payment
to be less than the amount determined at the time the Gross-Up Payment was made, Executive shall repay to the Company, at the time that the amount of such reduction in Gross-Up Payment is determined by the Accounting Firm, the portion of the prior
Gross-Up Payment attributable to such reduction (including 

  
 15 

 
the portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income tax imposed on the portion of the Gross-Up Payment being repaid by you). 

(c) You shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would
require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten business days after you are informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. You shall not pay such claim prior to the expiration of the 30-day period following the date on which you give such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Company notifies you in writing prior to the expiration of such period that it desires to contest such claim, you shall: 

(i) give the Company any information reasonably requested by the Company relating to such claim, 

(ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
 (iii) cooperate with the Company in good faith in order effectively to contest such claim, and 
 (iv) permit the Company to participate in any proceedings relating to such claim; 

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold you harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of this Section 14(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct you to pay the tax claimed and sue for a refund or contest the claim in any permissible
manner, and you agree to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company
directs you to pay such claim and sue for a refund, the Company shall advance the amount of such payment to you, on an interest-free basis and shall indemnify and hold the you harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect 

  
 16 

 
to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year with respect to which such contested amount is claimed to
be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and you shall be entitled to settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (d) In the event
that after the time you have filed any of your tax returns for the calendar year in which the Change in Ownership event covered by Code Section 280G(b)(2) occurred, the Accounting Firm determines, for any reason whatever, the correct amount of
the Gross-Up Payment to be less than the amount determined at the time the Gross-Up Payment was made, you shall file at the request of the Company an amended tax return in accordance with the Accounting Firm’s determination, but no portion of
the Gross-Up Payment shall be required to be refunded to the Company until actual refund or credit of such portion has been made to you, and interest payable to the Company shall not exceed the interest received or credited to you by such tax
authority for the period it held such portion (less any tax you must pay on such interest and which he is unable to deduct as a result of payment of the refund). If, after your receipt of an amount advanced by the Company pursuant to
Section 14(c), you become entitled to receive any refund with respect to such claim, you shall (subject to the Company’s complying with the requirements of Section 14(c)) promptly pay to the Company the amount of such refund (together
with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by you of an amount advanced by the Company pursuant to Section 14(c), a determination is made that you shall not be entitled to any refund with
respect to such claim and the Company does not notify you in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be
repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

  
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 If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this Agreement. 
  

			
	Very truly yours,
	
	ADVANCED BIOHEALING, INC.
		
	By:	 	 /s/ Gerald Vovis

	Name:	 	Gerald F. Vovis
	Title:	 	VP & General Manager

  

					
	Accepted and Approved	 		 	
			
	 /s/ Kevin Rakin
	 		 	 2/23/07

	Print Name: Kevin Rakin	 		 	Date

  
 18 

 SCHEDULE 1 
 Current Outside Activities 
 Current Board Memberships: 

Sciona, Inc. 
 Omrix BioPharmaceuticals, Inc.
(OMRI) 
 Ipsogen SAS (board member and consultant) 
 Vion Pharmaceuticals, Inc. (VION) 
 Clinical Data, Inc. (CLDA) 

Advisory relationships: 
 Red Abbey
Venture Partners 
 Canaan Partners 

Catterton Partners (consultant to Niadyne Inc.) 

Investment relationship: 
 Helix
Pharmaceuticals, Inc. 

 Exhibit I 

Form of Waiver and Release Agreement 
 WAIVER AND RELEASE AGREEMENT 
 In consideration of the termination benefits payable to me pursuant
to the Employment Agreement dated February     , 2007 (the “Employment Agreement”), and for other good and valuable consideration, and intending to be legally bound, I, Kevin Rakin, for myself and
for my heirs, executors, administrators, successors and assigns, and anyone claiming for or through me, release and forever discharge (i) Advanced BioHealing, Inc. (the “Company”) and (ii) its current and former
affiliates, subsidiaries, parents, partners, stockholders, principals, officers, directors, employees, agents, representatives, fiduciaries, successors and assigns, and any other person acting on behalf of the Company, but only in their capacities
as such (the “Company Parties”), from any and all claims, causes of action, or liabilities whatsoever, including, but not limited to, any claim of discrimination, any claim of backpay or compensatory or punitive damages or
attorneys fees, any claim specifically arising directly or indirectly out of my employment relationship with the Company, and from any rights, claims in law or equity for wrongful discharge, discriminatory or wrongful treatment under any local,
state or federal law or order (including without limitation the Age Discrimination In Employment Act of 1967 (“ADEA”), the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Connecticut
Human Rights and Opportunities Law, the Employee Retirement Income Security Act of 1974, the Americans With Disabilities Act of 1992, the federal and Connecticut Family and Medical Leave Acts, Section 290a of the Connecticut Workers’
Compensation Act, including without limitation any amendments to these or other laws), tort, personal injury, contract, defamation, mental anguish, injury to health and/or personal reputation, and from any other claim arising out of my employment
with or termination or resignation of employment from the Company, or under any other facts or circumstances whatsoever (all of the foregoing collectively called “Claims”). This release of Claims shall extend to Claims of any nature
whatsoever, including claims that are known or unknown, suspected or unsuspected. 
 Notwithstanding anything contained herein to the contrary,
this release of claims shall not extend to (i) Claims I may now or hereafter have to enforce (A) the payments required to be made and other obligations required to be performed by the Company following your termination of employment
pursuant to the Employment Agreement, (B) the Indemnity Agreement made as of             , 2007 by and between me and the Company (the “Indemnity
Agreement”), (C) the Stock Option Agreements between me and the Company (the “Option Agreements”), (D) any warrants of the Company which I may hold, or (E) the Investor Rights Agreement and the
Registration Rights Agreement or any similar agreement with the Company executed by me in connection with the Company’s Series C Preferred Stock financing, (ii) benefits under the terms of the Company’s employee benefit plans,
programs and arrangements to which I am entitled as of the date of my termination of employment, (iii) any economic rights or Claims I may have as an owner or holder of any stock or other securities of the Company, but not rights arising prior
to the date hereof pursuant to Subchapter XIII of the General Corporation Law of Delaware against the Company, it’s directors or officers, (iv) benefits under the terms of the Company’s employee benefit plans, programs and
arrangements to which I am entitled as of the date of my termination of employment (or, after the date of my termination, pursuant to the terms of the Employment 

  
 20 

 
Agreement), (v) properly reimbursable expenses whether submitted heretofore or hereafter, and (vi) any rights or Claims I may have prior hereto, now or in the future to indemnification
under the Company’s Certificate of Incorporation or By-laws or the General Corporation Law of the State of Delaware or the Company’s Directors’ and Officers’ or other liability insurance. 

I hereby acknowledge that my employment with the Company was terminated pursuant to the following Section of the Employment
Agreement:             
 I agree that I have read this Waiver and Release
Agreement, that I understand its terms, that I entered into it freely and voluntarily, and that I have been given the opportunity to consult with an attorney of my choice prior to executing it. I also agree that I was given twenty-one (21) days
from the date I received this Waiver and Release Agreement to consider its terms and seven (7) days after I sign it to revoke my acceptance. 
 [Signature page follows] 

  
 21 

 [SIGNATURE PAGE TO WAIVER
AND RELEASE AGREEMENT] 
  

	
	  

	
	  

	Date
	
	Sworn and subscribed to me before
	This              day of             
200  
	
	Notary Public/Commissioner of the
	Superior Court
	
	My Commission Expires:
	
	  

  
 22

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