Document:

EX-10.1

 Exhibit 10.1 

SECURITIES PURCHASE AGREEMENT 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of June 6, 2016, is by and among Delcath Systems, Inc.,
a Delaware corporation with offices located at 1301 Avenue of the Americas, 43FL, New York, New York 10019 (the “Company”), and each of the investors listed on the Schedule of Buyers attached hereto (individually, a
“Buyer” and collectively, the “Buyers”). 
 RECITALS 

A. The Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506(b) of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the
“SEC”) under the 1933 Act. 
 B. The Company has authorized a new series of senior secured convertible notes of the
Company, in the aggregate original principal amount of $35,000,000, substantially in the form attached hereto as Exhibit A (the “Notes”), which Notes shall be convertible into shares of Common Stock (as defined below)
(the shares of Common Stock issuable pursuant to the terms of the Notes, including, without limitation, upon conversion or otherwise, collectively, the “Conversion Shares”), in accordance with the terms of the Notes. 

C. Each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) a Note in
the aggregate original principal amount set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers, (ii) a Note with an aggregate original amount of Restricted Principal (as defined in the Notes) as set forth
opposite such Buyer’s name in column (4) on the Schedule of Buyers and (iii) a warrant to initially acquire up to that aggregate number of additional shares of Common Stock (as defined below) set forth opposite such Buyer’s name
in column (5) on the Schedule of Buyers, substantially in the form attached hereto as Exhibit B (such warrants, the “Warrants”) (as exercised, collectively, the “Warrant Shares”). 

D. The Notes, the Conversion Shares, the Warrants and the Warrant Shares are collectively referred to herein as the
“Securities.” 
 E. The Notes will rank senior to or pari passu with all outstanding and future Indebtedness (as defined
below) of the Company, and its Subsidiaries (as defined below). The Notes will be secured by a first priority security interest, subject to Permitted Liens, in all of the existing and future assets of the Company and its direct and indirect
Subsidiaries of the Company that are organized or existing under the laws of the United States, any state of the United States or the District of Columbia (collectively, the “Domestic Subsidiaries”), other than Excluded Collateral
(as defined in the Security Agreement referred to below), as evidenced by (i) a security agreement in the form attached hereto as Exhibit C (the “Security Agreement”), (ii) account control agreements with
respect to certain accounts described in the Note and the Security Agreement, in form and substance reasonably acceptable to each Buyer, duly executed by the Company and each depositary bank (each, a “Controlled Account Bank”) in
which each 

 
such account is maintained (the “Controlled Account Agreements”, and together with the Security Agreement, the Perfection Certificate (as defined below) and the other security
documents and agreements entered into in connection with this Agreement and each of such other documents and agreements, as each may be amended or modified from time to time, collectively, the “Security Documents”), and (iii) a
guaranty executed by each Domestic Subsidiary of the Company, in the form attached hereto as Exhibit D (each a “Guaranty,” and collectively, the “Guaranties”) pursuant to which each of them guarantees
the obligations of the Company under the Transaction Documents (as defined below). 
 AGREEMENT 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and each Buyer hereby agree as follows: 
  

	1.	PURCHASE AND SALE OF NOTES AND WARRANTS. 

 (a) Purchase of Notes and Warrants.
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the Closing Date (as
defined below) (a) a Note in the original principal amount as is set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers, (b) a Note with an aggregate original amount of Restricted Principal (as defined in
the Notes) as set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers and (c) a Warrant to initially acquire up to that aggregate number of Warrant Shares as is set forth opposite such Buyer’s name in column
(5) on the Schedule of Buyers. 
 (b) Closing. The closing (the “Closing”) of the purchase of the Notes and the
Warrants by the Buyers shall occur at the offices of Kelley Drye & Warren LLP, 101 Park Avenue, New York, NY 10178. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York time, on the first
(1st) Business Day on which the conditions to the Closing set forth in Sections 6 and 7 below are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer). As used herein “Business Day”
means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to remain closed. 

(c) Purchase Price. The aggregate purchase price for the Notes and the Warrants to be purchased by each Buyer (the “Purchase
Price”) shall be the amount set forth opposite such Buyer’s name in column (6) on the Schedule of Buyers. Each Buyer shall pay approximately $920 for each $1,000 of principal amount of Notes and related Warrants to be purchased by
such Buyer at the Closing. Each Buyer and the Company agree that the Notes and the Warrants constitute an “investment unit” for purposes of Section 1273(c)(2) of the Internal Revenue Code of 1986, as amended (the
“Code”). 

  
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 (d) Form of Payment. On the Closing Date, (i) each Buyer shall pay its respective
Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(g)) to the Company for the Notes and the Warrants to be issued and sold to such Buyer at the Closing, by wire transfer of immediately available funds in
accordance with the Flow of Funds Letter (as defined below) and (ii) the Company shall deliver to each Buyer (A) a Note in the aggregate original principal amount as is set forth opposite such Buyer’s name in column (3) of the
Schedule of Buyers, and (B) a Note with an aggregate original amount of Restricted Principal (as defined in the Notes) as set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers and (C) a Warrant pursuant to
which such Buyer shall have the right to initially acquire up to such aggregate number of Warrant Shares as is set forth opposite such Buyer’s name in column (5) of the Schedule of Buyers, in each case, duly executed on behalf of the
Company and registered in the name of such Buyer or its designee. 
  

	2.	BUYER’S REPRESENTATIONS AND WARRANTIES. 

 Each Buyer, severally and not jointly,
represents and warrants to the Company with respect to only itself that, as of the date hereof and as of the Closing Date: 
 (a)
Organization; Authority. Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the
transactions contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder. 

(b) No Public Sale or Distribution. Such Buyer (i) is acquiring its Note and Warrants, (ii) upon conversion of its Note will
acquire the Conversion Shares issuable upon conversion thereof, and (iii) upon exercise of its Warrants (other than pursuant to a Cashless Exercise (as defined in the Warrants)) will acquire the Warrant Shares issuable upon exercise thereof, in
each case, for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act;
provided, however, by making the representations herein, such Buyer does not agree, or make any representation or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at
any time in accordance with or pursuant to a registration statement or an exemption from registration under the 1933 Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of
the Securities in violation of applicable securities laws. For purposes of this Agreement, “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and any Governmental Entity (as defined below) or any department or agency thereof. 
 (c) Accredited
Investor Status. Such Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D. 

  
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 (d) Reliance on Exemptions. Such Buyer understands that the Securities are being offered
and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Buyer’s compliance with,
the representations, warranties, agreements, acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of such Buyer to acquire the Securities. 

(e) Information. Such Buyer and its advisors, if any, have had access to the SEC Documents (as defined below) filed electronically on
EDGAR and available at www.sec.gov and have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities that have been requested by such Buyer.
Such Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by such Buyer or its advisors, if any, or its representatives shall
modify, amend or affect such Buyer’s right to rely on the Company’s representations and warranties contained herein. Such Buyer understands that its investment in the Securities involves a high degree of risk. Such Buyer has sought such
accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities. 

(f) No Governmental Review. Such Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 

(g) Transfer or Resale. Such Buyer understands that except as provided in Section 4(h) hereof: (i) the Securities have not
been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the
Company (if requested by the Company) an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from
such registration, or (C) such Buyer provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor rule thereto)
(collectively, “Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under
circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and
regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of
any exemption thereunder. Notwithstanding the foregoing, the Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge of Securities shall not be deemed
to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement
or any other Transaction Document (as defined in Section 3(b)), including, without limitation, this Section 2(g). 

  
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 (h) Validity; Enforcement. This Agreement has been duly and validly authorized, executed
and delivered on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with its terms, except as such enforceability may be limited by general principles of
equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

(i) No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer of the
transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Buyer, or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which could not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder. 
  

	3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

 The Company represents and warrants to
each of the Buyers that, as of the date hereof and as of the Closing Date (except for representations and warranties that speak as of a specific date which shall be true and correct as of such specified date): 

(a) Organization and Qualification. Each of the Company and each of its Subsidiaries (as defined below) are entities duly organized and
validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to own their properties and to carry on their business as now being conducted and as presently proposed to
be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes
such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). As used in this Agreement, “Material Adverse
Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or
taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents (as defined below) or any other agreements or instruments to be entered into in connection herewith or therewith or (iii) the
authority or ability of the Company or any of its Subsidiaries to perform any of their respective obligations under any of the Transaction Documents (as defined below). Other than the Persons (as defined below) set forth on Schedule 3(a), the
Company has no Subsidiaries. “Subsidiaries” means any Person in which the 

  
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Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part of the
business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.” 

(b) Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company, and the
consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, and subject to applicable stockholder approval requirements which the Company shall use its best efforts to obtain at the Stockholder
Meeting (as defined below), the issuance of the Notes and the reservation for issuance and issuance of the Conversion Shares issuable upon conversion of the Notes and the issuance of the Warrants and the reservation for issuance and issuance of the
Warrant Shares issuable upon exercise of the Warrants) have been duly authorized by the Company’s board of directors, and (other than the filing with the SEC of a Form D and any other filings as may be required by any state securities agencies)
no further filing, consent or authorization is required by the Company, its board of directors or its stockholders or other governing body. This Agreement has been, and the other Transaction Documents to which it is a party will be prior to the
Closing, duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights
to indemnification and to contribution may be limited by federal or state securities law. “Transaction Documents” means, collectively, this Agreement, the Notes, the Warrants, the Guaranties, the Security Documents, the Irrevocable
Transfer Agent Instructions (as defined below) and each of the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended from time
to time. 
 (c) Issuance of Securities. The issuance of the Notes and the Warrants are duly authorized and, upon issuance in
accordance with the terms of the Transaction Documents, the Conversion Shares and the Warrant Shares shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges,
charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively “Liens”) with respect to the issuance thereof. As of the date hereof, the Company shall have reserved from its duly
authorized capital stock not less than 7,034,564 shares of Common Stock issuable upon conversion of the Note and as interest thereunder. Immediately following the Stockholder Reserve Deadline (as defined below), the Company shall have reserved from
its duly authorized capital stock not less than 150% of the sum of (i) the maximum number of Conversion Shares issuable upon conversion of the Notes (assuming for purposes hereof that (x) the Notes are convertible at the Conversion Price
(as defined in the Notes) assuming a Conversion Date (as defined in the Note) as of the date hereof, (y) interest on the Notes shall accrue through December 31, 2017 and will be converted in shares of Common Stock (as defined below) at a
conversion price equal to the Conversion Price (as defined in the 

  
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Notes) assuming a Conversion Date (as defined in the Note) as of the date hereof and (z) any such conversion shall not take into account any limitations on the conversion of the Notes set
forth in the Notes), and (ii) the maximum number of Warrant Shares initially issuable upon exercise of the Warrants (without taking into account any limitations on the exercise of the Warrants set forth therein). Upon issuance or conversion in
accordance with the Notes or exercise in accordance with the Warrants (as the case may be), the Conversion Shares and the Warrant Shares, respectively, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive or
similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Subject to the accuracy of the representations and warranties of the Buyers in this Agreement, the offer
and issuance by the Company of the Securities is exempt from registration under the 1933 Act. 
 (d) No Conflicts. The execution,
delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes, the Warrants, the Conversion
Shares and the Warrant Shares and the reservation for issuance of the Conversion Shares and the Warrant Shares) will not (i) result in a violation of the Certificate of Incorporation (as defined below) (including, without limitation, any
certificate of designation contained therein), Bylaws (as defined below), certificate of formation, memorandum of association, articles of association, bylaws or other organizational documents of the Company or any of its Subsidiaries, or any
capital stock or other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including, without limitation, foreign, federal and state securities laws and regulations and the rules and regulations of the Nasdaq Capital Market (the “Principal Market”), with a reasonable prospect of delisting or
suspension occurring after giving effect to all applicable notice, appeal, compliance and hearing periods, and including all applicable foreign, federal and state laws, rules and regulations) applicable to the Company or any of its Subsidiaries or
by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of (ii) and (iii) for any such conflict, default or violation that would not reasonably be expected to have a Material
Adverse Effect. 
 (e) Consents. Neither the Company nor any Subsidiary is required to obtain any material consent from, authorization
or order of, or make any filing or registration with (other than the filing with the SEC of a Form D and any other filings as may be required by any state securities agencies), any Governmental Entity (as defined below) or any regulatory or
self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by the Transaction Documents, in each case, in accordance with the terms hereof or thereof. All
material consents, authorizations, orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to the Closing Date, and neither
the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Transaction
Documents. Except as disclosed in the SEC Documents (as defined below), the Company is not in violation of the 

  
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requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock (as defined below) in the
foreseeable future. “Governmental Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or
quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public
international organization or any of the foregoing. 
 (f) Acknowledgment Regarding Buyer’s Purchase of Securities. The Company
acknowledges and agrees that each Buyer is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that no Buyer is (i) an officer or
director of the Company or any of its Subsidiaries, (ii) an “affiliate” (as defined in Rule 144) of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the shares
of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)). The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company
or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the
Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities. The Company further represents to each Buyer that the Company’s and each Subsidiary’s decision
to enter into the Transaction Documents to which it is a party has been based solely on the independent evaluation by the Company, each Subsidiary and their respective representatives. 

(g) No General Solicitation; Placement Agent’s Fees. Neither the Company, nor any of its Subsidiaries or affiliates, nor any Person
acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment of
any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby, including, without
limitation, placement agent fees payable to Roth Capital Partners, LLC, as placement agent (the “Placement Agent”) in connection with the sale of the Securities. The fees and expenses of the Placement Agent to be paid by the Company
or any of its Subsidiaries are as set forth on Schedule 3(g) attached hereto. The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, attorney’s fees and out-of-pocket
expenses) arising in connection with any such claim. The Company acknowledges that it has engaged the Placement Agent in connection with the sale of the Securities. Other than the Placement Agent, neither the Company nor any of its Subsidiaries has
engaged any placement agent or other agent in connection with the offer or sale of the Securities. 

  
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 (h) No Integrated Offering. None of the Company, its Subsidiaries or any of their
affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the
Securities under the 1933 Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval of stockholders of the Company for purposes of the 1933 Act or under any applicable
stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the Company,
its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that would require registration of the issuance of any of the Securities under the 1933 Act or cause the offering of any of the Securities to be
integrated with other offerings of securities of the Company. 
 (i) Dilutive Effect. The Company understands and acknowledges that
the number of Conversion Shares and Warrant Shares will increase in certain circumstances. The Company further acknowledges that its obligation to issue the Conversion Shares pursuant to the terms of the Notes in accordance with this Agreement and
the Notes and the Warrant Shares upon exercise of the Warrants in accordance with this Agreement, the Notes and the Warrants is, in each case, absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership
interests of other stockholders of the Company. 
 (j) Application of Takeover Protections; Rights Agreement. The Company and its
board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including, without limitation, any distribution under a rights
agreement), stockholder rights plan or other similar anti-takeover provision under the Certificate of Incorporation (as defined below), Bylaws (as defined below) or other organizational documents or the laws of the jurisdiction of its incorporation
or otherwise which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities and any Buyer’s ownership of the
Securities. The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of shares of Common
Stock (as defined below) or a change in control of the Company or any of its Subsidiaries. 
 (k) SEC Documents; Financial Statements.
During the two (2) years prior to the date hereof, the Company has timely filed all reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC (excluding any reports of directors,
executive officers or stockholders required by Section 16 of the 1934 Act) pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits and appendices included therein and
financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). The Company has delivered or has made available to the Buyers or their
respective representatives true, correct and complete copies of each of the SEC Documents not available on the EDGAR system. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and
the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order 

  
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to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements (including, without
limitation, any notes or any letter of the independent accountants of the Company with respect thereto) of the Company included in the SEC Documents (the “Financial Statements”) complied in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such Financial Statements have been prepared in accordance with generally accepted accounting principles
(“GAAP”), consistently applied, during the periods involved (except (i) as may be otherwise indicated in such Financial Statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent
they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in the aggregate). The reserves, if any, established by the Company or the lack of reserves, if applicable,
are reasonable based upon facts and circumstances known by the Company on the date hereof and there are no loss contingencies that are required to be accrued by the Statement of Financial Accounting Standard No. 5 of the Financial Accounting
Standards Board which are not provided for by the Company in its Financial Statements or otherwise. No other information provided by or on behalf of the Company to any of the Buyers which is not included in the SEC Documents (including, without
limitation, information referred to in Section 2(e) of this Agreement or in the disclosure schedules to this Agreement) contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the
statements therein not misleading, in the light of the circumstance under which they are or were made. The Company is not currently contemplating to amend or restate any of the Financial Statements nor is the Company currently aware of facts or
circumstances which would require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with GAAP and the rules and regulations of the SEC. The Company has
not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements. 

(l) Absence of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in a Form 10-K,
there has been no material adverse change and no material adverse development in the business, assets, liabilities, properties, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any of its
Subsidiaries. Since the date of the Company’s most recent audited financial statements contained in a Form 10-K, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets,
individually or in the aggregate, outside of the ordinary course of business or (iii) made any capital expenditures, individually or in the aggregate, outside of the ordinary course of business. Neither the Company nor any of its Subsidiaries
has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that
any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a consolidated basis,
are not as of the date hereof, and after giving effect to 

  
 10 

 
the transactions contemplated hereby to occur at the Closing, will not be Insolvent (as defined below). For purposes of this Section 3(l), “Insolvent” means, (i) with
respect to the Company and its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its
Subsidiaries’ total Indebtedness (as defined below), (B) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or
(C) the Company and its Subsidiaries intend to incur or believe that they will incur debts that would be beyond their ability to pay as such debts mature; and (ii) with respect to the Company and each Subsidiary, individually, (A) the
present fair saleable value of the Company’s or such Subsidiary’s (as the case may be) assets is less than the amount required to pay its respective total Indebtedness, (B) the Company or such Subsidiary (as the case may be) is unable
to pay its respective debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company or such Subsidiary (as the case may be) intends to incur or believes that it will
incur debts that would be beyond its respective ability to pay as such debts mature. Neither the Company nor any of its Subsidiaries has engaged in any business or in any transaction, and is not about to engage in any business or in any transaction,
for which the Company’s or such Subsidiary’s remaining assets constitute unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. 

(m) No Undisclosed Events, Liabilities, Developments or Circumstances. Other than the transactions contemplated by this Agreement or as
disclosed in the SEC Documents, no event, liability, development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of their respective businesses,
properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable securities laws on a registration statement on Form S-1
filed with the SEC relating to an issuance and sale by the Company of its Common Stock (as defined below) and which has not been publicly announced, (ii) could have a material adverse effect on any Buyer’s investment hereunder or
(iii) could have a Material Adverse Effect. 
 (n) Conduct of Business; Regulatory Permits. Neither the Company nor any of its
Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation (as defined below), any certificate of designation, preferences or rights of any other outstanding series of preferred stock of the Company or any of
its Subsidiaries or Bylaws (as defined below) or their organizational charter, certificate of formation, memorandum of association, articles of association, Certificate of Incorporation or certificate of incorporation or bylaws, respectively.
Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries
will conduct its business in violation of any of the foregoing, except in all cases for possible violations which could not, individually or in the aggregate, have a Material Adverse Effect. Without limiting the generality of the foregoing, the
Company is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of the Common Stock (as defined below) by
the Principal Market in the foreseeable future. During the two years prior to the date hereof, (i) the Common Stock has been listed or designated for quotation on the Principal Market, (ii) trading in the Common Stock has

  
 11 

 
not been suspended by the SEC or the Principal Market and (iii) except as disclosed in the SEC Documents, the Company has received no communication, written or oral, from the SEC or the
Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market. The Company and each of its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities
necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such
Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. There is no agreement, commitment, judgment, injunction, order or decree binding upon the Company or any
of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or any of its Subsidiaries,
any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by the Company or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which have not had and would
not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries. 
 (o) Foreign Corrupt
Practices. Neither the Company, the Company’s subsidiary or any director, officer, agent, employee, nor any other person acting for or on behalf of the foregoing (individually and collectively, a “Company Affiliate”) have
violated the U.S. Foreign Corrupt Practices Act or any other applicable anti-bribery or anti-corruption laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give,
or authorized the giving of anything of value, to any officer, employee or any other person acting in an official capacity for any Governmental Entity to any political party or official thereof or to any candidate for political office (individually
and collectively, a “Government Official”) or to any person under circumstances where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would be offered, given or
promised, directly or indirectly, to any Government Official, for the purpose of: 
 (i) (A) influencing any act or decision
of such Government Official in his/her official capacity, (B) inducing such Government Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government
Official to influence or affect any act or decision of any Governmental Entity, or 
 (ii) assisting the Company or its
Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries. 
 (p)
Sarbanes-Oxley Act. The Company and each Subsidiary is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002, as amended, and any and all applicable rules and regulations promulgated by the SEC thereunder.

 (q) Transactions With Affiliates. Since January 1, 2011, no employee, partner, director, officer or stockholder (direct or
indirect) of the Company or its Subsidiaries, or any associate, or, to the knowledge of the Company, any affiliate of any thereof, or any relative with 

  
 12 

 
a relationship no more remote than first cousin of any of the foregoing, is presently, or at any time during such period has been, (i) a party to any transaction with the Company or its
Subsidiaries (including any contract, agreement or other arrangement providing for the furnishing of services by, or rental of real or personal property from, or otherwise requiring payments to, any such director, officer or stockholder or such
associate or affiliate or relative Subsidiaries (other than for ordinary course services as employees, officers or directors of the Company or any of its Subsidiaries)) or (ii) the direct or indirect owner of an interest in any corporation,
firm, association or business organization which is a competitor, supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect) in less than 5% of the common stock of a company whose securities are
traded on or quoted through an Eligible Market (as defined below)), nor does any such Person receive income from any source other than the Company or its Subsidiaries which relates to the business of the Company or its Subsidiaries or should
properly accrue to the Company or its Subsidiaries. No employee, officer, stockholder or director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the Company or its Subsidiaries, as the case may be,
nor is the Company or any of its Subsidiaries indebted (or committed to make loans or extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable expenses
incurred on behalf of the Company, and (iii) for other standard employee benefits made generally available to all employees or executives (including stock option agreements outstanding under any stock option plan approved by the Board of
Directors of the Company). 
 (r) Equity Capitalization.  

(i) Definitions: 

(A) “Common Stock” means (x) the Company’s shares of common stock, $0.01 par value per share, and
(y) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock. 

(B) “Preferred Stock” means (x) the Company’s blank check preferred stock, $0.01 par value per
share, the terms of which may be designated by the board of directors of the Company in a certificate of designations and (y) any capital stock into which such preferred stock shall have been changed or any share capital resulting from a
reclassification of such preferred stock (other than a conversion of such preferred stock into Common Stock in accordance with the terms of such certificate of designations). 

(ii) Authorized and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of the Company
consists of (A) 170,000,000 shares of Common Stock, of which, 24,118,491 are issued and outstanding and 11,054,331 shares are reserved for issuance pursuant to Convertible Securities (as defined below) (other than the Notes and the Warrants)
exercisable or exchangeable for, or convertible into, shares of Common Stock and (B) 10,000,000 shares of Preferred Stock, none of which are issued and outstanding. 1,757 shares of Common Stock are held in the treasury of the Company. 

  
 13 

 (iii) Valid Issuance; Available Shares; Affiliates. All of such
outstanding shares are duly authorized and have been, or upon issuance will be, validly issued and are fully paid and nonassessable. Schedule 3(r)(iii) sets forth the number of shares of Common Stock that are (A) reserved for issuance
pursuant to Convertible Securities (as defined below) (other than the Notes and the Warrants) and (B) that are, as of the date hereof, owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act and calculated based
on the assumption that only officers, directors and holders of at least 10% of the Company’s issued and outstanding Common Stock are “affiliates” without conceding that any such Persons are “affiliates” for purposes of
federal securities laws) of the Company or any of its Subsidiaries. To the Company’s knowledge, no Person owns 10% or more of the Company’s issued and outstanding shares of Common Stock (calculated based on the assumption that all
Convertible Securities (as defined below), whether or not presently exercisable or convertible, have been fully exercised or converted (as the case may be) taking account of any limitations on exercise or conversion (including
“blockers”) contained therein without conceding that such identified Person is a 10% stockholder for purposes of federal securities laws). 

(iv) Existing Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company’s or
any Subsidiary’s shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries, or
contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests or capital stock of the Company or any of its Subsidiaries or options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its
Subsidiaries; (C) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act; (D) there are no outstanding securities or
instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; and (F) neither the Company
nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. 

(v) Organizational Documents. The Company has furnished to the Buyers true, correct and complete copies of the
Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s bylaws, as amended and as in effect on the date hereof (the
“Bylaws”), and the terms of all Convertible Securities (as defined below) and the material rights of the holders thereof in respect thereto. 

  
 14 

 (s) Indebtedness and Other Contracts. Neither the Company nor any of its Subsidiaries,
(i) except as disclosed on Schedule 3(s), has any outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its
Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound, (ii) is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such contract,
agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) has any financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries (except in
respect of Liens which will be released prior to the Closing Date); (iv) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would
not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has
or is expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other than those
incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse Effect. For purposes of this Agreement:
(x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including,
without limitation, “capital leases” in accordance with GAAP) (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with respect to
letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets
or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such
indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement
which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not
assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations (as defined below) in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and
(y) “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the
primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be
complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto. 

  
 15 

 (t) Litigation. There is no action, suit, arbitration, proceeding, inquiry or
investigation before or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its
Subsidiaries, the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors , whether of a civil or criminal nature or otherwise, in their capacities as such, except as set forth in Schedule 3(t). No director,
officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and to the
knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries. The SEC has not
issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act. After reasonable inquiry of its employees, the Company is not aware of any fact which might
result in or form the basis for any such action, suit, arbitration, investigation, inquiry or other proceeding. Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment, injunction, decree, determination or award of
any Governmental Entity. 
 (u) Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary
has been refused any insurance coverage sought or applied for since January 1, 2011 and neither the Company nor any such Subsidiary has any reason to believe that it will be unable to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 

(v) Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any
member of a union. The Company and its Subsidiaries believe that their relations with their employees are good. No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its
Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary. No executive officer or
other key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or
any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect
to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of
employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 

  
 16 

 (w) Title. 

(i) Real Property. Each of the Company and its Subsidiaries holds good title to all real property, leases in real
property, facilities or other interests in real property owned or held by the Company or any of its Subsidiaries (the “Real Property”). The Real Property is free and clear of all Liens (other than Permitted Liens and Liens being
released on or prior to the Closing Date) and is not subject to any rights of way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except for Permitted Liens. Any Real Property held under lease by the
Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company
or any of its Subsidiaries. 
 (ii) Fixtures and Equipment. Each of the Company and its Subsidiaries (as applicable)
has good title to, or a valid leasehold interest in, the tangible personal property, equipment, improvements, fixtures, and other personal property and appurtenances that are used by the Company or such Subsidiary in connection with the conduct of
its business (the “Fixtures and Equipment”). The Fixtures and Equipment are structurally sound, are in good operating condition and repair, are adequate for the uses to which they are being put, are not in need of maintenance or
repairs except for ordinary, routine maintenance and repairs and are sufficient for the conduct of the Company’s and/or its Subsidiaries’ businesses (as applicable) in the manner as conducted prior to the Closing. Each of the Company and
its Subsidiaries owns all of its Fixtures and Equipment free and clear of all Liens except for Permitted Liens. 
 (x) Potential Products;
FDA; EMEA 
 (i) Except as described in the SEC Documents, the Company possesses all certificates, authorizations and
permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct its business as currently conducted, including without limitation all such certificates, authorizations and permits required by the United States
Food and Drug Administration (the “FDA”) or any other federal, state or foreign agencies or bodies engaged in the regulation of pharmaceuticals or biohazardous materials, except where the failure to so possess such certificates,
authorizations and permits, individually or in the aggregate, would not result in a Material Adverse Effect. Except as described in the SEC Documents, the Company has not received any notice of proceedings relating to the revocation or modification
of any such certificate, authorization or permit which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect. 

(ii) Except to the extent disclosed in the SEC Documents, the Company has not received any written notices or statements from
the FDA, the European Medicines Agency (the “EMEA”) or any other governmental agency, and otherwise has no knowledge or reason to believe, that (i) any drug candidate of the Company described in the SEC Documents (each a
“Potential Product”) may or will be rejected or determined to be non-approvable; (ii) a delay in time for review and/or approval of a marketing authorization application or marketing approval application in any jurisdiction for
any Potential Product is or may be required, requested or being implemented; (iii) one or more clinical studies for any Potential Product shall or may be requested or required in 

  
 17 

 
addition to the clinical studies submitted to the FDA prior to the date hereof as a precondition to or condition of issuance or maintenance of a marketing approval for any Potential Product;
(iv) any license, approval, permit or authorization to conduct any clinical trial of or market any product or Potential Product of the Company has been, will be or may be suspended, revoked, modified or limited, except in the cases of clauses
(i), (ii), (iii) and (iv) where such rejections, determinations, delays, requests, suspensions, revocations, modifications or limitations might not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect. 
 (iii) Except to the extent disclosed in the SEC Documents, to the Company’s knowledge, the preclinical and
clinical testing, application for marketing approval of, manufacture, distribution, promotion and sale of the products and Potential Products of the Company is in compliance, in all material respects, with all laws, rules and regulations applicable
to such activities, including without limitation applicable good laboratory practices, good clinical practices and good manufacturing practices, except for such non-compliance as would not, individually or in the aggregate, have a Material Adverse
Effect. The descriptions of the results of such tests and trials contained in the SEC Documents are complete and accurate in all material respects such that there would be no untrue statement of a material fact or omission of a material fact
necessary to make the statements in the SEC Documents, in light of the circumstances under which they are made, not misleading. The Company is not aware of any studies, tests or trial the results of which reasonably call into question the results of
the tests and trials conducted by or on behalf of the Company that are described or referred to in the SEC Documents. Except to the extent disclosed in the SEC Documents, the Company has not received notice of adverse finding, warning letter or
clinical hold notice from the FDA or any non-U.S. counterpart of any of the foregoing, or any untitled letter or other correspondence or notice from the FDA or any other governmental authority or agency or any institutional or ethical review board
alleging or asserting noncompliance with any law, rule or regulation applicable in any jurisdiction, except notices, letters, and correspondences and non-U.S. counterparts thereof alleging or asserting such noncompliance as would not, individually
or in the aggregate, have a Material Adverse Effect. Except to the extent disclosed in the SEC Documents, the Company has not, either voluntarily or involuntarily, initiated, conducted or issued, or caused to be initiated, conducted or issued, any
recall, field correction, market withdrawal or replacement, safety alert, warning, “dear doctor” letter, investigator notice, or other notice or action relating to an alleged or potential lack of safety or efficacy of any product or
Potential Product of the Company, any alleged product defect of any product or Potential Product of the Company, or any violation of any material applicable law, rule, regulation or any clinical trial or marketing license, approval, permit or
authorization for any product or potential product of the Company, and the Company is not aware of any facts or information that would cause it to initiate any such notice or action and has no knowledge or reason to believe that the FDA, the EMEA or
any other governmental agency or authority or any institutional or ethical review board or other non-governmental authority intends to impose, require, request or suggest such notice or action. 

  
 18 

 (y) Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate
rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade
secrets and other intellectual property rights and all applications and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted and presently proposed to be
conducted. Each of the patents owned by the Company or any of its Subsidiaries is listed on Schedule 3(y)(i). Except as set forth in Schedule 3(y)(ii), none of the Company’s Intellectual Property Rights have expired or terminated or have been
abandoned or are expected to expire or terminate or are expected to be abandoned, within three years from the date of this Agreement. The Company does not have any knowledge of any infringement by the Company or its Subsidiaries of Intellectual
Property Rights of others. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries regarding its Intellectual
Property Rights. Neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights. 
 (z)
Environmental Laws. (i) The Company and its Subsidiaries (A) are in compliance with any and all Environmental Laws (as defined below), (B) have received all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses and (C) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (A), (B) and (C), the failure to so comply
could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or
the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated
or approved thereunder. 
 (ii) No Hazardous Materials: 

(1) have been disposed of or otherwise released from any Real Property in violation of any Environmental Laws, except where
such violation would not reasonably be expected to have a Material Adverse Effect; or 
 (2) are present on, over, beneath,
in or upon any Real Property or any portion thereof in quantities that would constitute a material violation of any Environmental Laws. No prior use by the Company or any of its Subsidiaries of any Real Property has occurred that violates any
Environmental Laws, which violation would have a Material Adverse Effect on the business of the Company or any of its Subsidiaries. 

  
 19 

 (iii) Neither the Company nor any of its Subsidiaries knows of any other person
who or entity which has stored, treated, recycled, disposed of or otherwise located on any Real Property any Hazardous Materials, including, without limitation, such substances as asbestos and polychlorinated biphenyls. 

(iv) None of the Real Property are on any federal or state “Superfund” list or Liability Information System
(“CERCLIS”) list or any state environmental agency list of sites under consideration for CERCLIS, nor subject to any environmental related Liens. 

(aa) Subsidiary Rights. The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed
by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or such Subsidiary. 

(bb) Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all material foreign, federal and state
income and all other material tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes and other governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to
which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company and its Subsidiaries know of no basis for any such
claim. The Company is not operated in such a manner as to qualify as a passive foreign investment company, as defined in Section 1297 of the Code. The net operating loss carryforwards (“NOLs”) for United States federal income
tax purposes of the consolidated group of which the Company is the common parent, if any, shall not be adversely effected by the transactions contemplated hereby. The transactions contemplated hereby do not constitute an “ownership change”
within the meaning of Section 382 of the Code, thereby preserving the Company’s ability to utilize such NOLs. 
 (cc) Internal
Accounting and Disclosure Controls. The Company and each of its Subsidiaries maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, including that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability accountability, (iii) access to
assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at
reasonable intervals and appropriate action is taken with respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring that
information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without
limitation, controls and procedures designed to ensure that information 

  
 20 

 
required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s management, including its principal
executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. During the twelve months prior to the date hereof, except as disclosed in the SEC Documents,
neither the Company nor any of its Subsidiaries has received any notice or correspondence from any accountant, Governmental Entity or other Person relating to any potential material weakness or significant deficiency in any part of the internal
controls over financial reporting of the Company or any of its Subsidiaries. 
 (dd) Off Balance Sheet Arrangements. There is no
transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or
that otherwise could be reasonably likely to have a Material Adverse Effect. 
 (ee) Investment Company Status. The Company is not,
and upon consummation of the sale of the Securities will not be, an “investment company,” an affiliate of an “investment company,” a company controlled by an “investment company” or an “affiliated person” of,
or “promoter” or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended. 

(ff) Acknowledgement Regarding Buyers’ Trading Activity. It is understood and acknowledged by the Company that (i) following
the public disclosure of the transactions contemplated by the Transaction Documents, in accordance with the terms thereof, none of the Buyers have been asked by the Company or any of its Subsidiaries to agree, nor has any Buyer agreed with the
Company or any of its Subsidiaries, to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling, long and/or short) any securities of the Company, or “derivative” securities based
on securities issued by the Company or to hold any of the Securities for any specified term; (ii) any Buyer, and counterparties in “derivative” transactions to which any such Buyer is a party, directly or indirectly, presently may
have a “short” position in the Common Stock which was established prior to such Buyer’s knowledge of the transactions contemplated by the Transaction Documents; and (iii) each Buyer shall not be deemed to have any affiliation
with or control over any arm’s length counterparty in any “derivative” transaction. The Company further understands and acknowledges that following the public disclosure of the transactions contemplated by the Transaction Documents
pursuant to the Press Release (as defined below) one or more Buyers may engage in hedging and/or trading activities at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the
value and/or number of the Warrant Shares or Conversion Shares, as applicable, deliverable with respect to the Securities are being determined and such hedging and/or trading activities, if any, can reduce the value of the existing
stockholders’ equity interest in the Company both at and after the time the hedging and/or trading activities are being conducted. The Company acknowledges that such aforementioned hedging and/or trading activities do not constitute a breach of
this Agreement, the Notes, the Warrants or any other Transaction Document or any of the documents executed in connection herewith or therewith. 

  
 21 

 (gg) Manipulation of Price. Neither the Company nor any of its Subsidiaries has, and, to
the knowledge of the Company, no Person acting on their behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company or any of its
Subsidiaries to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities (other than the Placement Agent), (iii) paid or agreed to
pay to any Person any compensation for soliciting another to purchase any other securities of the Company or any of its Subsidiaries or (iv) paid or agreed to pay any Person for research services with respect to any securities of the Company or
any of its Subsidiaries. 
 (hh) U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, or has
ever been, and so long as any of the Securities are held by any of the Buyers, shall become, a U.S. real property holding corporation within the meaning of Section 897 of the Code, and the Company and each Subsidiary shall so certify upon any
Buyer’s request. 
 (ii) Registration Eligibility. The Company is eligible to register the Underlying Securities (as defined
below) for resale by the Buyers using Form S-1 promulgated under the 1933 Act. 
 (jj) Transfer Taxes. On the Closing Date, all stock
transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance, sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for
by the Company, and all laws imposing such taxes will be or will have been complied with. 
 (kk) Bank Holding Company Act. Neither
the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).
Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total
equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank or any
entity that is subject to the BHCA and to regulation by the Federal Reserve. 
 (ll) Shell Company Status. The Company is not, and has
never been, an issuer identified in, or subject to, Rule 144(i). 
 (mm) Illegal or Unauthorized Payments; Political Contributions.
Neither the Company nor any of its Subsidiaries nor, to the best of the Company’s knowledge (after reasonable inquiry of its officers and directors), any of the officers, directors, employees, agents or other representatives of the Company or
any of its Subsidiaries or any other business entity or enterprise with which the Company or any Subsidiary is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money,
property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office except
for personal political contributions not involving the direct or indirect use of funds of the Company or any of its Subsidiaries. 

  
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 (nn) Money Laundering. The Company and its Subsidiaries are in compliance with, and have
not previously violated, the USA Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without limitation, the laws, regulations and Executive Orders and sanctions programs administered
by the U.S. Office of Foreign Assets Control, including, but not limited, to (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V. 
 (oo)
Management. Except as set forth in Schedule 3(oo) hereto, during the past five year period, no current or former officer or director or, to the knowledge of the Company, no current ten percent (10%) or greater stockholder of
the Company or any of its Subsidiaries has been the subject of: 
 (i) a petition under bankruptcy laws or any other
insolvency or moratorium law or the appointment by a court of a receiver, fiscal agent or similar officer for such Person, or any partnership in which such person was a general partner at or within two years before the filing of such petition or
such appointment, or any corporation or business association of which such person was an executive officer at or within two years before the time of the filing of such petition or such appointment; 

(ii) a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations
that do not relate to driving while intoxicated or driving under the influence); 
 (iii) any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining any such person from, or otherwise limiting, the following activities: 

(1) Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor
broker, leverage transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission (the “CFTC”) or an associated person of any of the foregoing, or as an investment adviser, underwriter,
broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such
activity; 
 (2) Engaging in any particular type of business practice; or 

(3) Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any
violation of securities laws or commodities laws; 
 (iv) any order, judgment or decree, not subsequently reversed, suspended
or vacated, of any authority barring, suspending or otherwise limiting for more than sixty (60) days the right of any such person to engage in any activity described in the preceding sub paragraph, or to be associated with persons engaged in
any such activity; 

  
 23 

 (v) a finding by a court of competent jurisdiction in a civil action or by the
SEC or other authority to have violated any securities law, regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently reversed, suspended or vacated; or 

(vi) a finding by a court of competent jurisdiction in a civil action or by the CFTC to have violated any federal commodities
law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or vacated. 
 (pp) Stock Option
Plans. Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable stock option plan of the Company and (ii) with an exercise price at least equal to the fair market value of the Common Stock
on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company’s stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no
policy or practice of the Company to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company or its
Subsidiaries or their financial results or prospects. 
 (qq) No Disagreements with Accountants and Lawyers. There are no material
disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees
owed to its accountants and lawyers which could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents. In addition, on or prior to the date hereof, the Company had discussions with its accountants
about its Financial Statements previously filed with the SEC. Based on those discussions, the Company has no reason to believe that it will need to restate any such Financial Statements or any part thereof. 

(rr) No Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the 1933
Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial
owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the
time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933
Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification
Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures provided thereunder. 

  
 24 

 (ss) Other Covered Persons. The Company is not aware of any Person (other than the
Placement Agent) that has been or will be paid (directly or indirectly) remuneration for solicitation of Buyers or potential purchasers in connection with the sale of any Regulation D Securities. 

(tt) No Additional Agreements. The Company does not have any agreement or understanding with any Buyer with respect to the transactions
contemplated by the Transaction Documents other than as specified in the Transaction Documents. 
 (uu) Public Utility Holding Act.
None of the Company nor any of its Subsidiaries is a “holding company,” or an “affiliate” of a “holding company,” as such terms are defined in the Public Utility Holding Act of 2005. 

(vv) Federal Power Act. None of the Company nor any of its Subsidiaries is subject to regulation as a “public utility” under
the Federal Power Act, as amended. 
 (ww) Ranking of Notes. No Indebtedness of the Company, at the Closing (i) will be senior to
the Notes in right of payment and (ii) other than Permitted Indebtedness (excluding Permitted Indebtedness described in clause (ix) thereof) will be pari passu with the Notes in right of payment, whether with respect to payment or
redemptions, interest, damages, upon liquidation or dissolution or otherwise. 
 (xx) Disclosure. The Company confirms that neither it
nor any other Person acting on its behalf has provided any of the Buyers or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information concerning the Company or any of
its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the other Transaction Documents. The Company understands and confirms that each of the Buyers will rely on the foregoing representations in effecting
transactions in securities of the Company. All disclosure provided to the Buyers regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on
behalf of the Company or any of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. All of the written information furnished after the date hereof by or on behalf of the Company or any of its Subsidiaries to each Buyer pursuant to or in connection with this Agreement and the
other Transaction Documents, taken as a whole, will be true and correct in all material respects as of the date on which such information is so provided and will not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months preceding
the date of this Agreement did not at the time of release contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they are made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations
(including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly disclosed.
All financial 

  
 25 

 
projections and forecasts that have been prepared by or on behalf of the Company or any of its Subsidiaries and made available to you have been prepared in good faith based upon reasonable
assumptions and represented, at the time each such financial projection or forecast was delivered to each Buyer, the Company’s best estimate of future financial performance (it being recognized that such financial projections or forecasts are
not to be viewed as facts and that the actual results during the period or periods covered by any such financial projections or forecasts may differ from the projected or forecasted results). The Company acknowledges and agrees that no Buyer makes
or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2. 
  

	4.	COVENANTS. 

 (a) Best Efforts. Each Buyer shall use its best efforts to timely
satisfy each of the covenants hereunder and conditions to be satisfied by it as provided in Section 6 of this Agreement. The Company shall use its best efforts to timely satisfy each of the covenants hereunder and conditions to be satisfied by
it as provided in Section 7 of this Agreement. 
 (b) Form D and Blue Sky. The Company shall file a Form D with respect to the
Securities as required under Regulation D and to provide a copy thereof to each Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary in order to
obtain an exemption for, or to, qualify the Securities for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such
qualification), and shall provide evidence of any such action so taken to the Buyers on or prior to the Closing Date. Without limiting any other obligation of the Company under this Agreement, the Company shall timely make all filings and reports
relating to the offer and sale of the Securities required under all applicable securities laws (including, without limitation, all applicable federal securities laws and all applicable “Blue Sky” laws), and the Company shall comply with
all applicable foreign, federal, state and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyers. 

(c) Reporting Status. Until the date on which the Buyers shall have sold all of the Underlying Securities (the “Reporting
Period”), the Company (or its Successor Entity (as defined in the Warrants)) shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company (or its Successor Entity (as defined in the Warrants))
shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit such termination. For the avoidance of doubt, following
a Fundamental Transaction (in accordance with the Notes) as a result of which the Underlying Securities consist of securities issuable by a Successor Entity (as defined in the Warrant) and no longer include any securities issuable by the Company,
this provision shall require such Successor Entity (as defined in the Warrant), and not the Company, to file reports and maintain its status as an issuer required to file reports under the 1934 Act. “Underlying Securities” means
(i) the Conversion Shares, (ii) the Warrant Shares and (iii) any capital stock of the Company issued or issuable with respect to the Conversion Shares, the Warrant Shares, the Notes or the Warrants, respectively, including, without
limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are converted or exchanged and
shares of capital stock of a Successor Entity (as defined in the Warrants) into which the shares of Common Stock are converted or exchanged, in each case, without regard to any limitations on exercise of the Warrants. 

  
 26 

 (d) Use of Proceeds. The Company will use the proceeds from the sale of the Securities for
general corporate purposes, but not, directly or indirectly, for (i) except as set forth on Schedule 4(d), the satisfaction of any indebtedness of the Company or any of its Subsidiaries, (ii) the redemption or repurchase of any securities
of the Company or any of its Subsidiaries, or (iii) the settlement of any outstanding litigation. 
 (e) Financial Information.
The Company agrees to send the following to each holder of Notes and Warrants (each, an “Investor”) during the Reporting Period (i) unless the following are filed with the SEC through EDGAR and are available to the public
through the EDGAR system, within one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any registration statements (other
than on Form S-8) or amendments filed pursuant to the 1933 Act, (ii) unless the following are either filed with the SEC through EDGAR or are otherwise widely disseminated via a recognized news release service (such as PR Newswire), on the same
day as the release thereof, facsimile copies of all press releases issued by the Company or any of its Subsidiaries and (iii) unless the following are filed with the SEC through EDGAR or made permanently available on the Company’s website,
copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof to the stockholders. 

(f) Listing. The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the Underlying
Securities upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be) (subject to official notice of issuance) and shall maintain such
listing or designation for quotation (as the case may be) of all Underlying Securities from time to time issuable under the terms of the Transaction Documents on such national securities exchange or automated quotation system. The Company shall
maintain the Common Stock’s listing or authorization for quotation (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Market or the Nasdaq Global Select Market (each, an “Eligible
Market”). Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market. The Company shall pay all fees and
expenses in connection with satisfying its obligations under this Section 4(f). 
 (g) Fees. The Company shall reimburse the
lead Buyer for all reasonable costs and expenses incurred by it or its affiliates in connection with the structuring, documentation, negotiation and closing of the transactions contemplated by the Transaction Documents (including, without
limitation, as applicable, all reasonable legal fees of outside counsel and disbursements of Kelley Drye & Warren LLP, counsel to the lead Buyer, any other reasonable fees and expenses in connection with the structuring, documentation,
negotiation and closing of the transactions contemplated by the Transaction Documents and due diligence and regulatory filings in connection therewith, the aggregate amount of such fees and expenses not to exceed $125,000 without the Company’s
prior written consent) (the “Transaction Expenses”) and shall 

  
 27 

 
be withheld by the lead Buyer from its Purchase Price at the Closing, less $50,000 previously paid by the Company to Kelley Drye & Warren LLP; provided, that the Company shall promptly
reimburse Kelley Drye & Warren LLP on demand for all Transaction Expenses not so reimbursed through such withholding at the Closing. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory
fees, Controlled Account Bank fees, transfer agent fees, DTC (as defined below) fees or broker’s commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated hereby (including, without
limitation, any fees or commissions payable to the Placement Agent, who is the Company’s sole placement agent in connection with the transactions contemplated by this Agreement). The Company shall pay, and hold each Buyer harmless against, any
liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents,
each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyers. 
 (h) Pledge of
Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees that the Securities may be pledged by an Investor in connection with a bona fide margin agreement or other loan or financing
arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Investor effecting a pledge of Securities shall be required to provide the Company
with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document, including, without limitation, Section 2(g) hereof; provided that an Investor and its pledgee shall be
required to comply with the provisions of Section 2(g) hereof in order to effect a sale, transfer or assignment of Securities to such pledgee. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities
may reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer. 
 (i) Disclosure of Transactions and
Other Material Information. 
 (i) Disclosure of Transaction. The Company shall, on or before 9:30 a.m., New
York time, on the first (1st) Business Day after the date of this Agreement, issue a press release (the “Press Release”) reasonably acceptable to the Buyers disclosing all
the material terms of the transactions contemplated by the Transaction Documents. On or before 9:30 a.m., New York time, on the first (1st) Business Day after the date of this Agreement, the
Company shall file a Current Report on Form 8-K describing all the material terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction Documents (including,
without limitation, this Agreement (and all schedules to this Agreement), the form of Notes, the form of the Warrants, the form of Guaranties and the form of Security Documents) (including all attachments, the “8-K Filing”). From
and after the filing of the 8-K Filing, the Company shall have disclosed all material, non-public information (if any) provided to any of the Buyers by the Company or any of its Subsidiaries or any of their respective officers, directors, employees
or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any
agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand,
shall terminate. 

  
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 (ii) Limitations on Disclosure. The Company shall not, and the Company
shall cause each of its Subsidiaries and each of its and their respective officers, directors, employees and agents not to, provide any Buyer with any material, non-public information regarding the Company or any of its Subsidiaries from and after
the date hereof without the express prior written consent of such Buyer (which may be granted or withheld in such Buyer’s sole discretion). In the event of a breach of any of the foregoing covenants, including, without limitation,
Section 4(o) of this Agreement, or any of the covenants or agreements contained in any other Transaction Document, by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents (as
determined in the reasonable good faith judgment of such Buyer), in addition to any other remedy provided herein or in the Transaction Documents, such Buyer shall have the right to make a public disclosure, in the form of a press release, public
advertisement or otherwise, of such breach or such material, non-public information, as applicable, without the prior approval by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees or agents. No
Buyer shall have any liability to the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees, affiliates, stockholders or agents, for any such disclosure. To the extent that the Company delivers any
material, non-public information to a Buyer without such Buyer’s consent, the Company hereby covenants and agrees that such Buyer shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis of, such material,
non-public information. Subject to the foregoing, neither the Company, its Subsidiaries nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, the Company
shall be entitled, without the prior approval of any Buyer, to make the Press Release and any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously
therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall be consulted by the Company in connection with any such press release or other public disclosure prior to its
release). Without the prior written consent of the applicable Buyer (which may be granted or withheld in such Buyer’s sole discretion), except as required by applicable law or regulation, the Company shall not (and shall cause each of its
Subsidiaries and affiliates to not) disclose the name of such Buyer in any filing, announcement, release or otherwise. Notwithstanding anything contained in this Agreement to the contrary and without implication that the contrary would otherwise be
true, the Company expressly acknowledges and agrees that no Buyer shall have (unless expressly agreed to by a particular Buyer after the date hereof in a written definitive and binding agreement executed by the Company and such particular Buyer (it
being understood and agreed that no Buyer may bind any other Buyer with respect thereto)), any duty of confidentiality with respect to, or a duty not to trade on the basis of, any material, non-public information regarding the Company or any of its
Subsidiaries. 

  
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 (iii) Other Confidential Information. In addition to other remedies set
forth in this Section 4(i), and without limiting anything set forth in any other Transaction Document, at any time after the Closing Date if the Company, any of its Subsidiaries, or any of their respective officers, directors, employees or
agents, provides any Buyer with material non-public information relating to the Company or any of its Subsidiaries (each, the “Confidential Information”), the Company shall, as promptly as practicable, publicly disclose such
Confidential Information on a Current Report on Form 8-K or otherwise (each, a “Disclosure”). From and after such Disclosure, the Company shall have disclosed all Confidential Information provided to such Buyer by the Company or any
of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon such Disclosure, the Company acknowledges and agrees
that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and
any of the Buyers or any of their affiliates, on the other hand, shall terminate. 
 (j) Additional Registration Statements. Until
the Applicable Date (as defined below) and at any time thereafter the Company fails for any reason to satisfy the requirements of Rule 144(c)(1), including, without limitation, (x) the failure to satisfy the current public information
requirement under Rule 144(c), if applicable, or (y) the Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a
“Current Public Information Failure”), the Company shall not file a registration statement under the 1933 Act relating to securities that are not the Underlying Securities (other than a registration statement on Form S-8 or such
supplements or amendments to registration statements that are outstanding and have been declared effective by the SEC as of the date hereof (solely to the extent necessary to keep such registration statements effective and available and not with
respect to any Subsequent Placement (as defined below))). “Applicable Date” means the first date on which all of the Underlying Securities are eligible to be resold by the Buyers pursuant to Rule 144 (or, if a Current Public
Information Failure has occurred and is continuing, such later date after which the Company has cured such Current Public Information Failure). 

(k) Additional Issuance of Securities. So long as any Buyer beneficially owns any Securities, the Company will not, without the prior
written consent of the Required Holders (as defined below), issue any Notes (other than to the Buyers as contemplated hereby) and the Company shall not issue any other securities that would cause a breach or default under the Notes or the Warrants.
The Company agrees that for the period commencing on the date hereof and ending on the date immediately following the 90th Trading Day after the Applicable Date (provided that such period shall be
extended by the number of calendar days during such period and any extension thereof contemplated by this proviso on which any Current Public Information Failure exists) (the “Restricted Period”), neither the Company nor any of its
Subsidiaries shall directly or indirectly issue, offer, sell, grant any option or right to purchase, or otherwise dispose of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any equity
security or any equity-linked or related security (including, without limitation, any “equity security” (as that term is defined under Rule 405 promulgated under the 1933 Act), any Convertible Securities (as defined below), any debt, any
preferred stock or any 

  
 30 

 
purchase rights) (any such issuance, offer, sale, grant, disposition or announcement (whether occurring during the Restricted Period or at any time thereafter) is referred to as a
“Subsequent Placement”). Notwithstanding the foregoing, this Section 4(k) shall not apply in respect of the issuance of (i) shares of Common Stock or standard options to purchase Common Stock to directors, officers or
employees of the Company in their capacity as such pursuant to an Approved Stock Plan (as defined below), provided that (1) all such issuances (taking into account the shares of Common Stock issuable upon exercise of such options) after the
date hereof pursuant to this clause (i) do not, in the aggregate, exceed more than 5% of the Common Stock issued and outstanding immediately prior to the date hereof and (2) the exercise price of any such options is not lowered, none of
such options are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any such options are otherwise materially changed in any manner that adversely affects any of the Buyers; (ii) shares of Common
Stock issued upon the conversion or exercise of Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) issued prior to the date hereof,
provided that the conversion, exercise or other method of issuance (as the case may be) of any such Convertible Security is made solely pursuant to the conversion, exercise or other method of issuance (as the case may be) provisions of such
Convertible Security that were in effect on the date immediately prior to the date of this Agreement, the conversion, exercise or issuance price of any such Convertible Securities (other than standard options to purchase Common Stock issued pursuant
to an Approved Stock Plan that are covered by clause (i) above) is not lowered, none of such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause
(i) above) are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan
that are covered by clause (i) above) are otherwise materially changed in any manner that adversely affects any of the Buyers; (iii) the Conversion Shares, and (iv) the Warrant Shares (each of the foregoing in clauses (i) through
(iv), collectively the “Excluded Securities”). “Approved Stock Plan” means any employee benefit plan which has been approved by the board of directors of the Company prior to or subsequent to the date hereof
pursuant to which shares of Common Stock and standard options to purchase Common Stock may be issued to any employee, officer or director for services provided to the Company in their capacity as such. “Convertible Securities” means
any capital stock or other security of the Company or any of its Subsidiaries that is at any time and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to
acquire, any capital stock or other security of the Company (including, without limitation, Common Stock) or any of its Subsidiaries. 
 (l)
Reservation of Shares. So long as any of the Notes or Warrants remain outstanding, the Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance, no less than (x) if on or prior to
the earlier to occur of (A) the Stockholder Meeting Deadline and (B) the Stockholder Approval Date (the “Stockholder Reserve Deadline”), 7,034,564 shares of Common Stock for conversions and/or payments under the Notes or
(y) if after the Stockholder Reserve Deadline, 150% of (i) the maximum number of shares of Common Stock issuable upon conversion, including without limitation, Installment Conversions, and Accelerations, of all of the Notes then
outstanding (assuming for purposes hereof that (x) the Notes are convertible at the Installment Conversion Price (as defined in the 

  
 31 

 
Notes) and (y) any such conversion shall not take into account any limitations on the conversion of the Notes set forth in the Notes), and (ii) the maximum number of Warrant Shares
issuable upon exercise of all the Warrants then outstanding (without regard to any limitations on the exercise of the Warrants set forth therein) (collectively, the “Required Reserve Amount”); provided that at no time shall the
number of shares of Common Stock reserved pursuant to this Section 4(l) be reduced other than proportionally in connection with any conversion, exercise and/or redemption, as applicable of Notes and Warrants. If at any time the number of shares
of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without
limitation, calling a special meeting of stockholders to authorize additional shares to meet the Company’s obligations pursuant to the Transaction Documents, in the case of an insufficient number of authorized shares, obtain stockholder
approval of an increase in such authorized number of shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is sufficient to meet the
Required Reserve Amount. 
 (m) Conduct of Business. The business of the Company and its Subsidiaries shall not be conducted in
violation of any law, ordinance or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. 

(n) Other Notes; Variable Securities. So long as any Notes remain outstanding, the Company and each Subsidiary shall be prohibited from
effecting or entering into an agreement to effect any Subsequent Placement involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which the Company or any Subsidiary (i) issues or sells any
Convertible Securities other than Warrants either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after the
initial issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such Convertible Securities or upon the occurrence of
specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, other than pursuant to a customary “weighted average” anti-dilution provision or (ii) enters into any
agreement (including, without limitation, an equity line of credit or an “at-the-market” offering) whereby the Company or any Subsidiary may sell securities at a future determined price (other than standard and customary
“preemptive” or “participation” rights). Each Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect
damages. 
 (o) Participation Right. At any time any Note remains outstanding, neither the Company nor any of its Subsidiaries shall,
directly or indirectly, effect any Subsequent Placement unless the Company shall have first complied with this Section 4(o). The Company acknowledges and agrees that the right set forth in this Section 4(o) is a right granted by the
Company, separately, to each Buyer. 

  
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 (i) At least five (5) Trading Days (as defined in the Notes) prior to any
proposed or intended Subsequent Placement, the Company shall deliver to each Buyer a written notice (each such notice, a “Pre-Notice”), which Pre-Notice shall not contain any information (including, without limitation, material,
non-public information) other than: (A) if the proposed Offer Notice (as defined below) constitutes or contains material, non-public information, a statement asking whether the Investor is willing to accept material non-public information or
(B) if the proposed Offer Notice does not constitute or contain material, non-public information, (x) a statement that the Company proposes or intends to effect a Subsequent Placement, (y) a statement that the statement in clause
(x) above does not constitute material, non-public information and (z) a statement informing such Buyer that it is entitled to receive an Offer Notice (as defined below) with respect to such Subsequent Placement upon its written request.
Upon the written request of a Buyer within three (3) Trading Days after the Company’s delivery to such Buyer of such Pre-Notice, and only upon a written request by such Buyer, the Company shall promptly, but no later than one
(1) Trading Day after such request, deliver to such Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange (the “Offer”) of the securities being
offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall (A) identify and describe the Offered Securities, (B) describe the price and other terms upon which they are to be issued, sold or
exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (C) identify the Persons (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (D) offer to
issue and sell to or exchange with such Buyer in accordance with the terms of the Offer such Buyer’s pro rata portion of 35% of the Offered Securities, provided that the number of Offered Securities which such Buyer shall have the right to
subscribe for under this Section 4(o) shall be (x) based on such Buyer’s pro rata portion of the aggregate original principal amount of the Notes purchased hereunder by all Buyers (the “Basic Amount”), and
(y) with respect to each Buyer that elects to purchase its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Buyers as such Buyer shall indicate it will purchase or acquire should the
other Buyers subscribe for less than their Basic Amounts (the “Undersubscription Amount”), which process shall be repeated until each Buyer shall have an opportunity to subscribe for any remaining Undersubscription Amount. 

(ii) To accept an Offer, in whole or in part, such Buyer must deliver a written notice to the Company prior to the end of the
(a) fifth (5th) Business Day after such Buyer’s receipt of the Offer Notice in the event that the Offer relates to an underwritten Subsequent Placement, or (b) third (3rd) Business Day after such Buyer’s receipt of the Offer Notice in the event that the Offer relates to a Subsequent Placement that is not underwritten (as applicable, the “Offer
Period”), setting forth the portion of such Buyer’s Basic Amount that such Buyer elects to purchase and, if such Buyer shall elect to purchase all of its Basic Amount, the Undersubscription Amount, if any, that such Buyer elects to
purchase (in either case, the “Notice of Acceptance”). If the Basic Amounts subscribed for by all Buyers are less than the total of all of the Basic Amounts, then each Buyer who has set forth an Undersubscription Amount in its
Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, if the 

  
 33 

 
Undersubscription Amounts subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the “Available Undersubscription
Amount”), each Buyer who has subscribed for any Undersubscription Amount shall be entitled to purchase only that portion of the Available Undersubscription Amount as the Basic Amount of such Buyer bears to the total Basic Amounts of all
Buyers that have subscribed for Undersubscription Amounts, subject to rounding by the Company to the extent it deems reasonably necessary. Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the Offer
prior to the expiration of the Offer Period, the Company may deliver to each Buyer a new Offer Notice and the Offer Period shall expire on the fifth (5th) Business Day after such Buyer’s
receipt of such new Offer Notice. 
 (iii) The Company shall have five (5) Business Days from the expiration of the
Offer Period above (A) to offer, issue, sell or exchange all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by a Buyer (the “Refused Securities”) pursuant to a definitive
agreement(s) (the “Subsequent Placement Agreement”), but only to the offerees described in the Offer Notice (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and interest rates)
that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set forth in the Offer Notice and (B) to publicly announce (x) the execution of such Subsequent Placement Agreement, and
(y) either (I) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (II) the termination of such Subsequent Placement Agreement, which shall be filed with the SEC on a Current Report on Form 8-K with
such Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto. 
 (iv) In the event
the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in Section 4(o)(iii) above), then each Buyer may, at its sole option and in its sole discretion, withdraw its
Notice of Acceptance or reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that such Buyer elected to purchase pursuant
to Section 4(o)(ii) above multiplied by a fraction, (i) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued or sold
to Buyers pursuant to this Section 4(o) prior to such reduction) and (ii) the denominator of which shall be the original amount of the Offered Securities. In the event that any Buyer so elects to reduce the number or amount of Offered
Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Buyers in accordance with
Section 4(o)(i) above. 
 (v) Upon the closing of the issuance, sale or exchange of all or less than all of the Refused
Securities, such Buyer shall acquire from the Company, and the Company shall issue to such Buyer, the number or amount of Offered Securities specified in its Notice of Acceptance, as reduced pursuant to Section 4(o)(iv) above if such Buyer has
so elected, upon the terms and conditions specified in the Offer. The purchase by such 

  
 34 

 
Buyer of any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and such Buyer of a separate purchase agreement relating to such Offered
Securities reasonably satisfactory in form and substance to such Buyer and its counsel. 
 (vi) Any Offered Securities not
acquired by a Buyer or other Persons in accordance with this Section 4(o) may not be issued, sold or exchanged until they are again offered to such Buyer under the procedures specified in this Agreement. 

(vii) The Company and each Buyer agree that if any Buyer elects to participate in the Offer, neither the Subsequent Placement
Agreement with respect to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”) shall include any term or provision whereby such Buyer shall be required to agree to any
restrictions on trading as to any securities of the Company or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, any agreement previously entered into with the Company
or any instrument received from the Company. 
 (viii) Notwithstanding anything to the contrary in this Section 4(o) and
unless otherwise agreed to by such Buyer, the Company shall either confirm in writing to such Buyer that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention to issue the Offered
Securities, in either case, in such a manner such that such Buyer will not be in possession of any material, non-public information, by the fifth (5th) Business Day following delivery of the
Offer Notice. If by such fifth (5th) Business Day, no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice regarding the abandonment
of such transaction has been received by such Buyer, such transaction shall be deemed to have been abandoned and such Buyer shall not be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.
Should the Company decide to pursue such transaction with respect to the Offered Securities, the Company shall provide such Buyer with another Offer Notice and such Buyer will again have the right of participation set forth in this
Section 4(o). The Company shall not be permitted to deliver more than one such Offer Notice to such Buyer in any sixty (60) day period, except as expressly contemplated by the last sentence of Section 4(o)(ii). 

(ix) The restrictions contained in this Section 4(o) shall not apply in connection with the issuance of any Excluded
Securities. The Company shall not circumvent the provisions of this Section 4(o) by providing terms or conditions to one Buyer that are not provided to all. 

(p) Dilutive Issuances. For so long as any Notes or Warrants remain outstanding, the Company shall not, in any manner, enter into or
affect any Subsequent Placement if the effect of such Subsequent Placement is to cause the Company to be required to issue upon conversion of any Notes or exercise of any Warrant any shares of Common Stock in excess of that number of shares of
Common Stock which the Company may issue upon conversion of the Notes and exercise of the Warrants without breaching the Company’s obligations under the rules or regulations of the Principal Market. 

  
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 (q) Passive Foreign Investment Company. The Company shall conduct its business, and shall
cause its Subsidiaries to conduct their respective businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the Code. 

(r) Restriction on Redemption and Cash Dividends. So long as any Notes are outstanding, the Company shall not, directly or indirectly,
redeem, or declare or pay any cash dividend or distribution on, any securities of the Company without the prior express written consent of the Buyers. 

(s) Corporate Existence. So long as any Buyer beneficially owns any Notes or Warrants, the Company shall not be party to any
Fundamental Transaction (as defined in the Notes) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Notes and the Warrants. 

(t) Stock Splits. Until the Notes and all notes issued pursuant to the terms thereof are no longer outstanding, the Company shall not
effect any stock combination, reverse stock split or other similar transaction except for a reverse stock split submitted for stockholder approval at the Stockholder Meeting (as defined below) (or make any public announcement or disclosure with
respect to any of the foregoing) without the prior written consent of the Required Holders (as defined below), which consent shall not be unreasonably withheld. 

(u) Conversion and Exercise Procedures. Each of the form of Exercise Notice (as defined in the Warrants) included in the Warrants and
the form of Conversion Notice (as defined in the Notes) included in the Notes set forth the totality of the procedures required of the Buyers in order to exercise the Warrants or convert the Notes. Except as provided in Section 5(d), no
additional legal opinion, other information or instructions shall be required of the Buyers to exercise their Warrants or convert their Notes. The Company shall honor exercises of the Warrants and conversions of the Notes and shall deliver the
Conversion Shares and Warrant Shares in accordance with the terms, conditions and time periods set forth in the Notes and Warrants. 
 (v)
Collateral Agent. Each Buyer hereby (i) appoints Hudson Bay Master Fund Ltd., as the collateral agent hereunder and under the other Security Documents (in such capacity, the “Collateral Agent”), and (ii) authorizes
the Collateral Agent (and its officers, directors, employees and agents) to take such action on such Buyer’s behalf in accordance with the terms hereof and thereof. The Collateral Agent shall not have, by reason hereof or any of the other
Security Documents, a fiduciary relationship in respect of any Buyer. Neither the Collateral Agent nor any of its officers, directors, employees or agents shall have any liability to any Buyer for any action taken or omitted to be taken in
connection hereof or any other Security Document except to the extent caused by its own gross negligence or willful misconduct, and each Buyer agrees to defend, protect, indemnify and hold harmless the Collateral Agent and all of its officers,
directors, employees and agents (collectively, the “Collateral Agent Indemnitees”) from and against any losses, damages, liabilities, obligations, penalties, actions, judgments, suits, fees, costs and expenses (including, without
limitation, reasonable attorneys’ fees, costs and expenses) incurred by such Collateral Agent Indemnitee, whether direct, indirect or consequential, arising from or in connection with the performance by such Collateral Agent

  
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Indemnitee of the duties and obligations of the Collateral Agent pursuant hereto or any of the Security Documents. The Collateral Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Holders, and such instructions shall be binding upon all holders of Notes;
provided, however, that the Collateral Agent shall not be required to take any action which, in the reasonable opinion of the Collateral Agent, exposes the Collateral Agent to liability or which is contrary to this Agreement or any other Transaction
Document or applicable law. The Collateral Agent shall be entitled to rely upon any written notices, statements, certificates, orders or other documents or any telephone message believed by it in good faith to be genuine and correct and to have been
signed, sent or made by the proper Person, and with respect to all matters pertaining to this Agreement or any of the other Transaction Documents and its duties hereunder or thereunder, upon advice of counsel selected by it. 

(w) Successor Collateral Agent. 

(i) The Collateral Agent may resign from the performance of all its functions and duties hereunder and under the other
Transaction Documents at any time by giving at least ten (10) Business Days’ prior written notice to the Company and each holder of Notes. Such resignation shall take effect upon the acceptance by a successor Collateral Agent of
appointment pursuant to clauses (ii) and (iii) below or as otherwise provided below. If at any time the Collateral Agent (together with its affiliates) beneficially owns less than $100,000 in aggregate principal amount of Notes, the
Required Holders (as defined below) may, by written consent, remove the Collateral Agent from all its functions and duties hereunder and under the other Transaction Documents. 

(ii) Upon any such notice of resignation or removal, the Required Holders shall appoint a successor collateral agent. Upon the
acceptance of any appointment as Collateral Agent hereunder by a successor agent, such successor collateral agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the collateral agent, and the
Collateral Agent shall be discharged from its duties and obligations under this Agreement and the other Transaction Documents. After the Collateral Agent’s resignation or removal hereunder as the collateral agent, the provisions of this
Section 4(w) shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Collateral Agent under this Agreement and the other Transaction Documents. 

(iii) If a successor collateral agent shall not have been so appointed within ten (10) Business Days of receipt of a
written notice of resignation or removal, the Collateral Agent shall then appoint a successor collateral agent who shall serve as the Collateral Agent until such time, if any, as the Required Holders appoint a successor collateral agent as provided
above. 
 (iv) In the event that a successor Collateral Agent is appointed pursuant to the provisions of this
Section 4(w) that is not a Buyer or an affiliate of any Buyer (or the Required Holders or the Collateral Agent (or its successor), as applicable, notify the Company that they or it wants to appoint such a successor Collateral Agent pursuant to

  
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the terms of this Section 4(w)), the Company and each Subsidiary thereof covenants and agrees to promptly take all actions reasonably requested by the Required Holders or the Collateral
Agent (or its successor), as applicable, from time to time, to secure a successor Collateral Agent satisfactory to the requesting part(y)(ies), in their sole discretion, including, without limitation, by paying all reasonable and customary fees and
expenses of such successor Collateral Agent, by having the Company and each Subsidiary thereof agree to indemnify any successor Collateral Agent pursuant to reasonable and customary terms and by each of the Company and each Subsidiary thereof
executing a collateral agency agreement or similar agreement and/or any amendment to the Security Documents reasonably requested or required by the successor Collateral Agent. 

(x) Regulation M. The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the
distribution of the Securities contemplated hereby. 
 (y) General Solicitation. None of the Company, any of its affiliates (as
defined in Rule 501(b) under the 1933 Act) or any person acting on behalf of the Company or such affiliate will solicit any offer to buy or offer or sell the Securities by means of any form of general solicitation or general advertising within the
meaning of Regulation D, including: (i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium or broadcast over television or radio; and (ii) any seminar or meeting whose
attendees have been invited by any general solicitation or general advertising.  
 (z) Integration. None of the Company, any
of its affiliates (as defined in Rule 501(b) under the 1933 Act), or any person acting on behalf of the Company or such affiliate will sell, offer for sale, or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
the 1933 Act) which will be integrated with the sale of the Securities in a manner which would require the registration of the Securities under the 1933 Act or require stockholder approval under the rules and regulations of the Principal Market and
the Company will take all action that is appropriate or necessary to assure that its offerings of other securities will not be integrated for purposes of the 1933 Act or the rules and regulations of the Principal Market, with the issuance of
Securities contemplated hereby. 
 (aa) Notice of Disqualification Events. The Company will notify the Buyers in writing, prior to
the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered Person.  

(bb) Subsidiary Guarantee. For so long as any Notes remain outstanding, upon any entity becoming a Subsidiary of the Company, the
Company shall cause each such Subsidiary to become party to the Guaranty by executing a joinder to the Guaranty reasonably satisfactory in form and substance to the Required Holders (as defined below). 

(cc) Stockholder Approval. The Company shall provide each stockholder entitled to vote at a special or annual meeting of stockholders
of the Company (the “Stockholder Meeting”), which shall be promptly called and held not later than September 1, 2016 (the “Stockholder Meeting Deadline”), a proxy statement, in a form reasonably acceptable to
the Buyers and Kelley Drye & Warren LLP, at the expense of the Company, with the Company obligated to reimburse the expenses of Kelley Drye & Warren LLP incurred in connection therewith in an amount not to exceed $10,000,
soliciting each such stockholder’s affirmative vote at the Stockholder Meeting for approval of resolutions (“Stockholder Resolutions”) providing for the approval of the issuance of all of the Securities in compliance with the
rules and regulations of the Principal Market (without regard to any limitations on conversion or exercise set forth in the Notes or Warrants, respectively) (the “Stockholder Approval”, and the date the Stockholder Approval is
obtained, the “Stockholder 

  
 38 

 
Approval Date”), and the Company shall use its reasonable best efforts to solicit its stockholders’ approval of such resolutions and to cause the Board of Directors of the
Company to recommend to the stockholders that they approve such resolutions. The Company shall be obligated to seek to obtain the Stockholder Approval by the Stockholder Meeting Deadline. If, despite the Company’s reasonable best efforts the
Stockholder Approval is not obtained on or prior to the Stockholder Meeting Deadline, the Company shall cause an additional Stockholder Meeting to be held on or prior to December 31, 2016. If, despite the Company’s reasonable best efforts
the Stockholder Approval is not obtained after such subsequent stockholder meetings, the Company shall cause an additional Stockholder Meeting to be held semi-annually thereafter until such Stockholder Approval is obtained.  

(dd) Closing Documents. On or prior to fourteen (14) calendar days after the Closing Date, the Company agrees to deliver, or cause
to be delivered, to each Buyer and Kelley Drye & Warren LLP a complete closing set of the executed Transaction Documents, Securities and any other document required to be delivered to any party pursuant to Section 7 hereof or
otherwise.  
 (ee) Foreign Stock Certificates. On or prior to the date that is forty-five (45) days after the Closing
Date, the Company agrees to deliver, or cause to be delivered to the Collateral Agent original certificates (I) representing the shares of Pledged Equity (as defined in the Security Agreement) of its Subsidiaries that are not Domestic
Subsidiaries, to the extent such subsidiary is a corporation or otherwise has certificated equity and (II) representing all other equity interests and promissory notes required to be pledged under the Security Agreement, in each case, accompanied by
undated stock powers and allonges executed in blank and other proper instruments of transfer.  
 (ff) Master Restricted Account
Instructions. The Company and each Buyer agrees that (i) unless an Event of Default has occurred and is continuing, neither the Company nor any Buyer shall direct the withdrawal or disposition of funds from a Master Restricted Account (as
defined in the Notes) unless the other party has consented in writing to delivery of such direction to the applicable Controlled Account Bank (as defined in the Note); provided, that each party shall, as soon as commercially practicable (and in no
event later than two (2) Trading Days (as defined in the Note)), deliver a written consent to a withdrawal or disposition of funds pursuant to Section 14(q)(iv)(2) or Section 14(q)(iv)(4) of the Note unless such party reasonably
believes in good faith that the proposed withdrawal or disposition is not permitted under the Note or the Security Documents; and (ii) after the occurrence and during the continuance of an Event of Default, each Buyer shall be permitted to
direct the withdrawal or disposition of funds from the applicable Master Restricted Account in accordance with the terms of the Transaction Documents without the consent of the Company and the Company shall not be permitted to direct the withdrawal
or disposition of funds from any Master Restricted Account. 
  

	5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND. 

 (a) Register. The Company shall
maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to each holder of Securities), a register for the Notes and the Warrants in which the Company shall record the name and address
of the Person in whose name the Notes and the Warrants have been issued (including the name and address of each transferee), the principal amount of the Notes held by such Person, the number of Conversion Shares issuable pursuant to the terms of the
Notes and the number of Warrant Shares issuable upon exercise of the Warrants held by such Person. The Company shall keep the register open and available at all times during business hours for inspection of any Buyer or its legal representatives.

  
 39 

 (b) Transfer Agent Instructions. The Company shall issue irrevocable instructions to its
transfer agent and any subsequent transfer agent (as applicable, the “Transfer Agent”) in a form reasonably acceptable to each of the Buyers (the “Irrevocable Transfer Agent Instructions”) to issue certificates or
credit shares to the applicable balance accounts at The Depository Trust Company (“DTC”), registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares and the Warrant Shares in such amounts as
specified from time to time by each Buyer to the Company upon conversion of the Notes or the exercise of the Warrants (as the case may be). The Company represents and warrants that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 5(b), and stop transfer instructions to give effect to Section 2(g) hereof, will be given by the Company to its transfer agent with respect to the Securities, and that the Securities shall otherwise
be freely transferable on the books and records of the Company, as applicable, to the extent provided in this Agreement and the other Transaction Documents. If a Buyer effects a sale, assignment or transfer of the Securities in accordance with
Section 2(g), the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified
by such Buyer to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Conversion Shares or Warrant Shares sold, assigned or transferred pursuant to an effective registration statement or in
compliance with Rule 144, the transfer agent shall issue such shares to such Buyer, assignee or transferee (as the case may be) without any restrictive legend in accordance with Section 5(d) below. The Company acknowledges that a breach by it
of its obligations hereunder will cause irreparable harm to a Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and
transfer, without the necessity of showing economic loss and without any bond or other security being required. Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of any opinion or the
removal of any legends on any of the Securities shall be borne by the Company. 
 (c) Legends. Each Buyer understands that the
Securities have been issued (or will be issued in the case of the Conversion Shares and the Warrant Shares) pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and except as set forth
below, the Securities shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 [NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE
SECURITIES ARE [CONVERTIBLE] [EXERCISABLE] HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR
SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 

  
 40 

 
SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 
 (d) Removal of Legends. Certificates evidencing Securities shall not be required
to contain the legend set forth in Section 5(c) above or any other legend (i) while a registration statement covering the resale of such Securities is effective under the 1933 Act, (ii) following any sale of such Securities pursuant
to Rule 144 (assuming the transferor is not an affiliate of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 (provided that a Buyer provides the Company with reasonable assurances that such
Securities are eligible for sale, assignment or transfer under Rule 144 which shall not include an opinion of Buyer’s counsel), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that such
Buyer provides the Company with an opinion of counsel to such Buyer, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the
1933 Act or (v) if such legend is not required under applicable requirements of the 1933 Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the
foregoing, the Company shall no later than three (3) Trading Days (as defined in the Notes) (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the
date such Buyer delivers such legended certificate representing such Securities to the Company) following the delivery by a Buyer to the Company or the transfer agent (with notice to the Company) of a legended certificate representing such
Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from such Buyer as may be required above in this
Section 5(d), as directed by such Buyer, either: (A) provided that the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer Program and such Securities are Conversion Shares or Warrant Shares, credit
the aggregate number of shares of Common Stock to which such Buyer shall be entitled to such Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company’s transfer
agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to such Buyer, a certificate representing such Securities that is free from all restrictive and other legends,
registered in the name of such Buyer or its designee (the date by which such credit is so required to be made to the balance account of such Buyer’s or such Buyer’s designee with DTC or such certificate is required to be delivered to such
Buyer pursuant to the foregoing is referred to herein as the “Required Delivery Date”, and the date such shares of Common Stock are actually delivered without restrictive legend to such Buyer or such Buyer’s designee with DTC,
as applicable, the “Share Delivery Date”). The Company shall be responsible for any transfer agent fees or DTC fees with respect to any issuance of Securities or the removal of any legends with respect to any Securities in
accordance herewith. 

  
 41 

 (e) Failure to Timely Deliver; Buy-In. If the Company fails to fail, for any reason or for
no reason, to issue and deliver (or cause to be delivered) to a Buyer (or its designee) by the Required Delivery Date, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, a certificate for the number of
Conversion Shares or Warrant Shares (as the case may be) to which such Buyer is entitled and register such Conversion Shares or Warrant Shares (as the case may be) on the Company’s share register or, if the Transfer Agent is participating in
the DTC Fast Automated Securities Transfer Program, to credit the balance account of such Buyer or such Buyer’s designee with DTC for such number of Conversion Shares or Warrant Shares (as the case may be) submitted for legend removal by such
Buyer pursuant to Section 5(d) above (a “Delivery Failure”), and if on or after such Trading Day such Buyer purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by
such Buyer of shares of Common Stock submitted for legend removal by such Buyer pursuant to Section 5(d) above that such Buyer is entitled to receive from the Company (a “Buy-In”), then the Company shall, within three
(3) Trading Days (as defined in the Notes) after such Buyer’s request and in such Buyer’s discretion, either (i) pay cash to such Buyer in an amount equal to such Buyer’s total purchase price (including brokerage commissions
and other out-of-pocket expenses, if any, for the shares of Common Stock so purchased) (the “Buy-In Price”), at which point the Company’s obligation to so deliver such certificate or credit such Buyer’s balance account
shall terminate and such shares shall be cancelled, or (ii) promptly honor its obligation to so deliver to such Buyer a certificate or certificates or credit the balance account of such Buyer or such Buyer’s designee with DTC representing
such number of shares of Common Stock that would have been so delivered if the Company timely complied with its obligations hereunder and pay cash to such Buyer in an amount equal to the excess (if any) of the Buy-In Price over the product of
(A) such number of shares of Conversion Shares or Warrant Shares (as the case may be) that the Company was required to deliver to such Buyer by the Required Delivery Date multiplied by (B) the lowest Closing Sale Price (as defined in the
Warrants) of the Common Stock on any Trading Day during the period commencing on the date of the delivery by such Buyer to the Company of the applicable Conversion Shares or Warrant Shares (as the case may be) and ending on the date of such delivery
and payment under this clause (ii). Nothing shall limit such Buyer’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief
with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) as required pursuant to the terms hereof. 

(f) FAST Compliance. While any Warrants remain outstanding, the Company shall maintain a transfer agent that participates in the DTC
Fast Automated Securities Transfer Program. 
  

	6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL. 

 (a) The obligation of the Company
hereunder to issue and sell the Notes and the related Warrants to each Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of 

  
 42 

 
the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with
prior written notice thereof: 
 (i) Such Buyer shall have executed each of the other Transaction Documents to which it is a
party and delivered the same to the Company. 
 (ii) Such Buyer and each other Buyer shall have delivered to the Company the
Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(g)) for the Note and the related Warrants being purchased by such Buyer at the Closing by wire transfer of immediately available funds in accordance with
the Flow of Funds Letter (as defined below). 
 (iii) The representations and warranties of such Buyer shall be true and
correct in all material respects as of the date when made and as of the Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such
specific date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to
the Closing Date. 
 (iv) The Company shall have obtained approval of the Principal Market to list or designate for quotation
(as the case may be) the Conversion Shares and the Warrant Shares, which approval may be subject to the Stockholder Approval. 
  

	7.	CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE. 

 (a) The obligation of each
Buyer hereunder to purchase its Note and its related Warrants at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit
and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof: 

(i) The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party
and the Company shall have duly executed and delivered to such Buyer (A) a Note in such original principal amount as is set forth across from such Buyer’s name in column (3) of the Schedule of Buyers, (B) a Note with an aggregate
original amount of Restricted Principal (as defined in the Notes) set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers and (C) a Warrant initially exercisable for such aggregate number of Warrant Shares as is
set forth across from such Buyer’s name in column (4) of the Schedule of Buyers, in each case, as being purchased by such Buyer at the Closing pursuant to this Agreement. 

(ii) Such Buyer shall have received the opinion of Morgan, Lewis & Bockius LLP, the Company’s counsel, dated as
of the Closing Date, in the form reasonably acceptable to such Buyer. 
 (iii) The Company shall have delivered to such Buyer
a copy of the Irrevocable Transfer Agent Instructions, in the form reasonably acceptable to such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer agent. 

  
 43 

 (iv) The Company shall have delivered to such Buyer a certificate evidencing the
formation and good standing of the Company in each such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date within ten (10) days of the Closing Date.

 (v) The Company shall have delivered to such Buyer a certificate evidencing the Company’s qualification as a foreign
corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the Company conducts business and is required to so qualify, as of a date within ten (10) days of the Closing Date. 

(vi) The Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation as certified by the
Delaware Secretary of State within ten (10) days of the Closing Date. 
 (vii) [Reserved]. 

(viii) The Company shall have delivered to such Buyer a certificate, in the form reasonably acceptable to such Buyer, executed
by the Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s board of directors in a form reasonably acceptable to such Buyer, (ii) the
Certificate of Incorporation of the Company and (iii) the Bylaws of the Company, each as in effect at the Closing. 

(ix) Each and every representation and warranty of the Company contained in the Transaction Documents shall be true and correct
in all material respects (without duplication of any materiality qualifier contained therein) as of the date when made and as of the Closing Date as though originally made at that time (except for representations and warranties that speak as of a
specific date, which shall be true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such specific date) and the Company shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the Closing Date that have not been waived by all Buyers. Such Buyer shall have received a certificate, duly
executed by the Chief Executive Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form reasonably acceptable to such Buyer. 

(x) The Company shall have delivered to such Buyer a letter from the Company’s transfer agent certifying the number of
shares of Common Stock outstanding on the Trading Day immediately prior to the Closing Date. 
 (xi) The Common Stock
(A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor, except as
disclosed in the SEC Documents, shall suspension by the SEC or the Principal Market have been threatened (with a reasonable prospect of delisting or 

  
 44 

 
suspension occurring after giving effect to all applicable notice, appeal, compliance and hearing periods), as of the Closing Date, either (I) in writing by the SEC or the Principal Market
or (II) by falling below the minimum maintenance requirements of the Principal Market. 
 (xii) The Company shall have
obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities, including without limitation, those required by the Principal Market, if any. 

(xiii) No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents. 

(xiv) Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would
have or result in a Material Adverse Effect. 
 (xv) The Company shall have obtained approval of the Principal Market to list
or designate for quotation (as the case may be) the Conversion Shares and the Warrant Shares. 
 (xvi) The Company shall have
delivered to the Collateral Agent (A) appropriate financing statements on Form UCC-1 to be duly filed in such office or offices as may be necessary or, in the opinion of the Collateral Agent, desirable to perfect the security interests
purported to be created by each Security Document and (B) a perfection certificate with respect to the Company in a form reasonably satisfactory to the Collateral Agent (the “Perfection Certificate”). 

(xvii) Within two (2) Business Days prior to the Closing, the Company shall have delivered or caused to be delivered to
each Buyer and the Collateral Agent (A) certified copies of requests for copies of information on Form UCC-11, listing all effective financing statements which name as debtor the Company or any of its Subsidiaries and which are filed in such
office or offices as may be necessary or, in the opinion of the Collateral Agent or the Buyers, desirable to perfect the security interests purported to be created by the Security Agreement, together with copies of such financing statements, none of
which, except as otherwise agreed in writing by the Collateral Agent, shall cover any of the Collateral (as defined in the Security Agreement), and the results of searches for any tax Lien and judgment Lien filed against such Person or its property,
which results, except as otherwise agreed to in writing by the Collateral Agent and the Buyers, shall not show any such Liens; and (B) the Perfection Certificate. 

(xviii) With respect to the Intellectual Property Rights, if any, the Company shall have duly executed and delivered to such
Buyer each Assignment For Security for the Intellectual Property Rights of the Company, in the form attached as Exhibit A to the Security Agreement. 

  
 45 

 (xix) Each Controlled Account Bank and the Collateral Agent shall have duly
executed and delivered to such Buyer a Controlled Account Agreement (as defined in the Notes) with respect to each account (other than Excluded Accounts (as defined in the Security Agreement)) of the Company or any of its Subsidiaries held at such
Controlled Account Bank (including, without limitation, each Master Restricted Account (as defined in the Notes)). 
 (xx)
Such Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company, setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company with respect to the
portion of the Purchase Price set forth in column (7) of the Schedule of Buyers and, the wire instructions of the Controlled Account Bank with respect to the portion of the Purchase Price set forth in column (8) of the Schedule of Buyers
related to the Master Restricted Account (the “Flow of Funds Letter”). 
 (xxi) The Company shall have
delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request. 

 

	8.	TERMINATION. 

 In the event that the Closing shall not have occurred with respect to a
Buyer within five (5) days of the date hereof, then such Buyer shall have the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business on such date without liability of such
Buyer to any other party; provided, however, (i) the right to terminate this Agreement under this Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement to have been consummated by
such date is the result of such Buyer’s breach of this Agreement and (ii) the abandonment of the sale and purchase of the Notes and the Warrants shall be applicable only to such Buyer providing such written notice, provided further that no
such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses described in Section 4(g) above. Nothing contained in this Section 8 shall be deemed to release any party from any
liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or
the other Transaction Documents. 
  

	9.	MISCELLANEOUS. 

 (a) Governing Law; Jurisdiction; Jury Trial. All questions
concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the 

  
 46 

 
jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or
operate to preclude any Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to such Buyer or to enforce a judgment or other court ruling in favor of such
Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS
AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. 
 (b) Counterparts. This Agreement
may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any
signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such signature page were an original thereof. 
 (c) Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include
the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall be construed broadly as if followed by the words “without
limitation.” The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found. 

(d) Severability; Maximum Payment Amounts. If any provision of this Agreement is prohibited by law or otherwise determined to be
invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the
invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the
parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical
realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). Notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document (and

  
 47 

 
without implication that the following is required or applicable), it is the intention of the parties that in no event shall amounts and value paid by the Company and/or any of its Subsidiaries
(as the case may be), or payable to or received by any of the Buyers, under the Transaction Documents (including without limitation, any amounts that would be characterized as “interest” under applicable law) exceed amounts permitted under
any applicable law. Accordingly, if any obligation to pay, payment made to any Buyer, or collection by any Buyer pursuant the Transaction Documents is finally judicially determined to be contrary to any such applicable law, such obligation to pay,
payment or collection shall be deemed to have been made by mutual mistake of such Buyer, the Company and its Subsidiaries and such amount shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the
case may be, as would not be so prohibited by the applicable law. Such adjustment shall be effected, to the extent necessary, by reducing or refunding, at the option of such Buyer, the amount of interest or any other amounts which would constitute
unlawful amounts required to be paid or actually paid to such Buyer under the Transaction Documents. For greater certainty, to the extent that any interest, charges, fees, expenses or other amounts required to be paid to or received by such Buyer
under any of the Transaction Documents or related thereto are held to be within the meaning of “interest” or another applicable term to otherwise be violative of applicable law, such amounts shall be pro-rated over the period of time to
which they relate. 
 (e) Entire Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and
exhibits attached hereto and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyers, the Company, its Subsidiaries, their affiliates and Persons acting on their behalf,
including, without limitation, any transactions by any Buyer with respect to Common Stock or the Securities, and the other matters contained herein and therein, and this Agreement, the other Transaction Documents, the schedules and exhibits attached
hereto and thereto and the instruments referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein; provided, however, nothing contained in this Agreement or any other
Transaction Document shall (or shall be deemed to) (i) have any effect on any agreements any Buyer has entered into with, or any instruments any Buyer has received from, the Company or any of its Subsidiaries prior to the date hereof with
respect to any prior investment made by such Buyer in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to any Buyer or any other Person, in
any agreement entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Buyer, or any instruments any Buyer received from the Company and/or any of its Subsidiaries prior to the date hereof, and all
such agreements and instruments shall continue in full force and effect. Except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.
For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Required Holders (as defined below), and any amendment to any
provision of this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable; provided that no such amendment shall be effective to the extent that it
(A) applies to less than all of the holders of the Securities then outstanding or (B) imposes any obligation or liability on any Buyer without such Buyer’s prior written consent (which may be granted or withheld in such Buyer’s
sole discretion); and provided further that the provisions of Sections 4(v) and 4(w) above cannot 

  
 48 

 
be amended or waived without the additional prior written approval of the Collateral Agent or its successor. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party, provided that the Required Holders may waive any provision of this Agreement, and any waiver of any provision of this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on
all Buyers and holders of Securities, as applicable, provided that no such waiver shall be effective to the extent that it (1) applies to less than all of the holders of the Securities then outstanding (unless a party gives a waiver as to
itself only) or (2) imposes any obligation or liability on any Buyer without such Buyer’s prior written consent (which may be granted or withheld in such Buyer’s sole discretion). No consideration (other than reimbursement of legal
fees) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction Documents, all
holders of the Notes or all holders of the Warrants (as the case may be) (except that a holder of Notes that does not have any of its Notes secured by cash amounts in a Master Restricted Account (as defined in the Notes) will not be entitled to any
consideration granted to any other holder of Notes in connection with any amendment, consent, waiver or modification related to any provision relating to any Master Restricted Account). From the date hereof and while any Notes or Warrants are
outstanding, the Company shall not be permitted to receive any consideration from a Buyer or a holder of Notes or Warrants that is not otherwise contemplated by the Transaction Documents in order to, directly or indirectly, induce the Company or any
Subsidiary (i) to treat such Buyer or holder of Notes or Warrants in a manner that is more favorable than to other similarly situated Buyers or holders of Notes or Warrants, as applicable, or (ii) to treat any Buyer(s) or holder(s) of
Notes or Warrants in a manner that is less favorable than the Buyer or holder of Notes or Warrants that is paying such consideration; provided, however, that the determination of whether a Buyer has been treated more or less favorably than another
Buyer shall disregard any securities of the Company purchased or sold by any Buyer. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the transactions contemplated by the
Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has any other obligation to
provide any financing to the Company, any Subsidiary or otherwise. As a material inducement for each Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (x) no due diligence or other investigation or inquiry
conducted by a Buyer, any of its advisors or any of its representatives shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties
contained in this Agreement or any other Transaction Document and (y) unless a provision of this Agreement or any other Transaction Document is expressly preceded by the phrase “except as disclosed in the SEC Documents,” nothing
contained in any of the SEC Documents shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other
Transaction Document. “Required Holders” means (I) prior to the Closing Date, each Buyer entitled to purchase Notes at the Closing and (II) on or after the Closing Date, holders of fifty-five percent (55%) of the
Underlying Securities (on an as-converted and as-exercised basis without regard to any limitations on conversion or exercise thereof) as of such time (excluding any Underlying Securities held by the Company or any of its Subsidiaries as of such
time) issued or issuable hereunder or pursuant to the Notes and/or the 

  
 49 

 
Warrants (or the Buyers, with respect to any waiver or amendment of Section 4(o)); provided, that such Buyers or holders of Underlying Securities, as applicable, must include Hudson Bay
Master Fund Ltd. so long as it holds at least 20% of the Underlying Securities (on an as-converted and as-exercised basis without regard to any limitations on conversion or exercise thereof) initially held by Hudson Bay Master Fund Ltd. and no
instrument, amendment or waiver shall be effective to the extent it could reasonably be expected to adversely affect the Collateral Agent (in its capacity as Collateral Agent) without the prior written consent of the Collateral Agent. 

(f) Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party) or electronic mail; or (iii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. The
addresses, facsimile numbers and e-mail addresses for such communications shall be: 
 If to the Company: 

Delcath Systems, Inc. 
 1633
Broadway, Suite 22C 
 New York, New York 10019 

Telephone:  (212) 489-2100 

Facsimile:   (212) 489-2102 

Attention:    Chief Executive Officer 

E-Mail: jsimpson@delcath.com 

With a copy (for informational purposes only) to: 

Morgan, Lewis & Bockius LLP 

101 Park Avenue 
 New York, New
York 10178-0060 
 Telephone:  (212) 309-6000 

Facsimile:   (212) 309-6001 

Attention:    Steven Navarro, Esq. 

E-Mail: steven.navarro@morganlewis.com 

If to the Transfer Agent: 

American Stock Transfer & Trust Company, LLC 

6201 15th Avenue 
 Brooklyn, New
York 11219 
 Telephone:  (718) 921-8200 

Facsimile:   (718) 765-8713 

Attention:    Leicia Savinetti E-Mail: 

lsavinetti@amstock.com 

  
 50 

 If to a Buyer, to its address, e-mail address and facsimile number set forth on the Schedule of Buyers, with
copies to such Buyer’s representatives as set forth on the Schedule of Buyers, 
 with a copy (for informational purposes only) to:

 Kelley Drye & Warren LLP 

101 Park Avenue 
 New York, NY
10178 
 Telephone:  (212) 808-7540 

Facsimile:   (212) 808-7897 

Attention:    Michael A. Adelstein, Esq. 

E-mail: madelstein@kelleydrye.com 
 or to such
other address, e-mail address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change,
provided that Kelley Drye & Warren LLP shall only be provided copies of notices sent to the lead Buyer. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine or e-mail containing the time, date, recipient facsimile number and, with respect to each facsimile transmission, an image of the first page of such
transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively. 
 (g) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns, including any purchasers of any of the Notes and Warrants. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Required Holders (as defined
below), including, without limitation, by way of a Fundamental Transaction (as defined in the Warrants) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Warrants) or a
Fundamental Transaction (as defined in the Notes) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Notes). A Buyer may assign some or all of its rights hereunder in connection
with any transfer of any of its Notes or Warrants without the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights. 

(h) No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than the Indemnitees referred to in Section 9(k). 

(i) Survival. The representations, warranties, agreements and covenants shall survive the Closing. Each Buyer shall be responsible only
for its own representations, warranties, agreements and covenants hereunder. 
 (j) Further Assurances. Each party shall do and
perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 

  
 51 

 (k) Indemnification. 

(i) In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities
thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless each Buyer and each holder of any Securities and all of their stockholders,
partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective
of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a
result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company or any Subsidiary in any of the Transaction Documents, (ii) any breach of any covenant, agreement or
obligation of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a third party (including for these purposes a
derivative action brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A) the execution, delivery, performance or enforcement of any of the Transaction Documents,
(B) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (C) any disclosure properly made by such Buyer pursuant to Section 4(i), or (D) the
status of such Buyer or holder of the Securities either as an investor in the Company pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation, as a party in interest or
otherwise in any action or proceeding for injunctive or other equitable relief), in each case, other than as a result of any misrepresentation or breach of any representation or warranty made by such Buyer or holder of the Securities. To the extent
that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. 

(ii) Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Section 9(k), deliver to the Company a written
notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company and the Indemnitee;
provided, however, that an Indemnitee shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (A) the 

  
 52 

 
Company has agreed in writing to pay such fees and expenses; (B) the Company shall have failed promptly to assume the defense of such Indemnified Liability and to employ counsel reasonably
satisfactory to such Indemnitee in any such Indemnified Liability; or (C) the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been
advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at
the expense of the Company, then the Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company), provided further, that in the case of clause (C) above the Company shall not be
responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for the Indemnitees. The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or defense of any such action or
Indemnified Liability by the Company and shall furnish to the Company all information reasonably available to the Indemnitee which relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably apprised at all
times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the
Company shall not unreasonably withhold, delay or condition its consent. The Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement shall not include any admission as to
fault on the part of the Indemnitee. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter for which
indemnification has been made. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 9(k), except
to the extent that the Company is materially and adversely prejudiced in its ability to defend such action. 
 (iii) The
indemnification required by this Section 9(k) shall be made by periodic payments of the amount thereof during the course of the investigation or defense, within ten (10) days after bills are received or Indemnified Liabilities are
incurred. 
 (iv) The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar
right of the Indemnitee against the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law. 

(l) Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality or applicability of a more general representation or warranty. Each and every reference to share prices,
shares of Common Stock and any other numbers in this Agreement that 

  
 53 

 
relate to the Common Stock shall be automatically adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to
the Common Stock after the date of this Agreement. It is expressly understood and agreed that for all purposes of this Agreement, and without implication that the contrary would otherwise be true, neither transactions nor purchases nor sales shall
include the location and/or reservation of borrowable shares of Common Stock. 
 (m) Remedies. Each Buyer and in the event of
assignment by Buyer of its rights and obligations hereunder, each holder of Securities, shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any
other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other
security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it or any Subsidiary fails to perform, observe, or
discharge any or all of its or such Subsidiary’s (as the case may be) obligations under the Transaction Documents, any remedy at law would inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled to
specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other
security. The remedies provided in this Agreement and the other Transaction Documents shall be cumulative and in addition to all other remedies available under this Agreement and the other Transaction Documents, at law or in equity (including a
decree of specific performance and/or other injunctive relief). 
 (n) Withdrawal Right. Notwithstanding anything to the contrary
contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the Company or any Subsidiary does not timely perform its
related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant notice, demand or
election in whole or in part without prejudice to its future actions and rights. 
 (o) Payment Set Aside; Currency. To the extent
that the Company makes a payment or payments to any Buyer hereunder or pursuant to any of the other Transaction Documents or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of
such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof
originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. Unless otherwise expressly indicated, all dollar amounts referred to in
this Agreement and the other Transaction Documents are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated
in other currencies (if any) shall be 

  
 54 

 
converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange Rate” means, in relation to any amount of
currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation. 

(p) Judgment Currency. 

(i) If for the purpose of obtaining or enforcing judgment against the Company in connection with this Agreement or any other
Transaction Document in any court in any jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter in this Section 9(p) referred to as the “Judgment Currency”) an amount due in
U.S. Dollars under this Agreement, the conversion shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding: 

(1) the date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any
other jurisdiction that will give effect to such conversion being made on such date: or 
 (2) the date on which the foreign
court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 9(p)(i)(2) being hereinafter referred to as the “Judgment Conversion
Date”). 
 (ii) If in the case of any proceeding in the court of any jurisdiction referred to in
Section 9(p)(i)(2) above, there is a change in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay such adjusted amount as may be necessary to ensure
that the amount paid in the Judgment Currency, when converted at the Exchange Rate prevailing on the date of payment, will produce the amount of U.S. Dollars which could have been purchased with the amount of Judgment Currency stipulated in the
judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date. 
 (iii) Any amount due from the
Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Agreement or any other Transaction Document. 

(q) Independent Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under the Transaction Documents are
several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other
Transaction Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the Buyers do not so constitute, a partnership, an association, a joint venture or any
other kind of group or entity, or create a presumption that the Buyers are in any way acting in concert or as a group or entity, and the Company shall not assert any such claim with respect to such obligations or the transactions contemplated by the
Transaction Documents or any matters, and the Company acknowledges that the Buyers are not acting in concert or as a group, and the Company shall not assert any such 

  
 55 

 
claim, with respect to such obligations or the transactions contemplated by the Transaction Documents. The decision of each Buyer to purchase Securities pursuant to the Transaction Documents has
been made by such Buyer independently of any other Buyer. Each Buyer acknowledges that no other Buyer has acted as agent for such Buyer in connection with such Buyer making its investment hereunder and that no other Buyer will be acting as agent of
such Buyer in connection with monitoring such Buyer’s investment in the Securities or enforcing its rights under the Transaction Documents. The Company and each Buyer confirms that each Buyer has independently participated with the Company and
its Subsidiaries in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and enforce its rights, including, without limitation, the rights
arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose. The use of a single agreement to effectuate the
purchase and sale of the Securities contemplated hereby was solely in the control of the Company, not the action or decision of any Buyer, and was done solely for the convenience of the Company and its Subsidiaries and not because it was required or
requested to do so by any Buyer. It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company, each Subsidiary and a Buyer, solely, and not between the Company,
its Subsidiaries and the Buyers collectively and not between and among the Buyers. 
 [signature pages follow] 

  
 56 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Agreement to be duly executed as of the date first written above. 
  

			
	 COMPANY:
  

DELCATH SYSTEMS, INC.

		
	By:	 	/s/ Jennifer K. Simpson
		 	 Name: Jennifer K. Simpson
 Title: President
and Chief Executive Officer

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Agreement to be duly executed as of the date first written above. 
  

			
	 BUYER:
  

HUDSON BAY MASTER FUND LTD

		
	By:	 	/s/ George Antonopoulos
		 	 Name: George Antonopoulos
 Title: Authorized
Signatory

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Agreement to be duly executed as of the date first written above. 
  

					
	 BUYER:
  

ALTO OPPORTUNITY MASTER FUND, SPC - SEGREGATED MASTER PORTFOLIO A

		
	By:	 	/s/ Daniel H Kochav
		 	Name:	 	Daniel H Kochav
		 	Title:	 	Director

 SCHEDULE OF BUYERS 

 

																											
	(1)	 	(2)	 	(3)	 	 	(4)	 	 	(5)	 	(6)	 	 	(7)	 	 	(8)	 	 	(9)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Buyer
	 	 Address and

Facsimile Number
	 	
Original
Principal
Amount of
Notes
	 	 	 Original

Restricted
Principal

Amount of
Notes
	 	 	 Aggregate

Number of

Warrant Shares
	 	 Purchase
Price
	 	 	 Wire

Amount

to General
Company
Account
	 	 	 Wire

Amount

to Master
Restricted
Account
	 	 	
Legal Representative’s
Address and Facsimile 
Number

	Hudson Bay Master Fund Ltd.	 	 Please deliver any notices other than Pre-Notices to:
  

777 Third Avenue, 30th Floor
 New York, NY 10017

Attention: Yoav Roth
 Facsimile: (212) 571-1279

E-mail: investments@hudsonbaycapital.com Residence: Cayman Islands
  

Please deliver any Pre-Notice to:
  

777 Third Ave., 30th Floor
 New York, NY 10017

Facsimile: (646) 214-7946
 Attention: Scott Black

General Counsel and Chief Compliance Officer
  
	 	$	4,971,429	  	 	$	25,028,571	  	 	*	 	$	27,600,000	  	 	$	2,571,429	  	 	$	25,028,571	  	 	 Kelley Drye & Warren LLP
 101 Park
Avenue
 New York, NY 10178
 Telephone: (212) 808-7540

Facsimile: (212) 808-7897
 Attention: Michael A. Adelstein,
Esq.

	 Alto Opportunity Master Fund, SPC - Segregated Master Portfolio A
	 	 c/o Tenor Capital Management

1180 Avenue of the Americas, Suite 1940

New York, NY 10036
 Attn: Waqas Khatri

T: 212-918-5213
 wkhatri@tenorcapital.com/

operations@tenorcapital.com
	 	$	828,571	  	 	$	4,171,429	  	 	*	 	$	4,600,000	  	 	$	428,571	  	 	$	4,171,429	  	 	N/A
		 		 				 				 		 				 				 				 	
	TOTAL	 		 	$	5,800,000	  	 	$	29,200,000	  	 		 	$	32,200,000	  	 	$	3,000,000	  	 	$	29,200,000	  	 	

  

	*	Insert 85% of the aggregate number of Conversion Shares issuable upon conversion of the Notes to be issued to such Buyer at the Closing calculated using the initial Conversion Price (assuming the conversion in full of
such Notes on the Closing Date without regard to any limitations on conversion set forth therein) 

 Schedule 3(a) 

Subsidiaries 
  

	 	1.	Delcath Holdings Limited 

  

	 	2.	Delcath Systems Limited 

  

	 	3.	Delcath Systems UK Limited 

  

	 	4.	Delcath Systems GmBH 

  

	 	5.	Delcath Systems B.V. 

 Schedule 3(g) 

Fees and Expenses of Placement Agent 

[Forthcoming; the company expects to enter into a placement agent agreement with Roth Capital Partners] 

 Schedule 3(r)(iii) 

Shares 
  

	 	1.	Number of shares of Common Stock reserved for issuance pursuant to Convertible Securities: 11,590,331 

  

	 	2.	Number of shares of Common Stock owned by affiliates of the Company or any of its Subsidiaries: 963,341 

 Schedule 3(s) 

Existing Indebtedness 
  

	 	1.	Letter of credit issued by Silicon Valley Bank to Kasowitz, Benson, Torres and Friedman LLP with face amount of $130,663.00. 

  

	 	2.	Letter of credit issued by Silicon Valley Bank to SLG 810 7th Avenue Lessee LLC with face amount of $881,297.08. 

  

	 	3.	Indebtedness in a maximum amount of $50,000 owed to Silicon Valley Bank under corporate credit card services agreement. 

  

	 	4.	Indebtedness between Delcath Systems, Inc. and Delcath Holdings Limited pursuant to a License and Agreement to Share Intangible Development Costs dated as of January 1, 2012. 

Existing Liens 
  

	 	1.	Liens of Silicon Valley Bank on account nos. 3301246486 and 3301264690, respectively, securing the letters of credit described in numbers 1 and 2 above. 

 

	 	2.	Lien of Silicon Valley Bank account no. 3301464115 securing the Indebtedness described in number 3 above. 

 Schedule 3(t) 

Litigation 
 None. 

 Schedule 3(y)(ii) 

Intellectual Property Rights 
  

	 	1.	The following patents are expected to expire in the next 3 years: 

  

					
	 Matter No.
  
	  	 Patent/Appln. No.
  
	  	 Expiration Date
  

	 5001US
  
	  	 US 5,817,046
  
	  	 14-Jul-2017
  

	 5002BE
  
	  	 BE 0936933
  
	  	 28-Jul-2017
  

	 5002DE
  
	  	 DE 69735487.3
  
	  	 28-Jul-2017
  

	 5002FR
  
	  	 FR 0936933
  
	  	 28-Jul-2017
  

	 5002GB
  
	  	 GB 0936933
  
	  	 28-Jul-2017
  

	 5002IT
  
	  	 IT 502006901423564
  
	  	 28-Jul-2017
  

	 5002JP
  
	  	 JP 4039698
  
	  	 28-Jul-2017
  

	 5002SE
  
	  	 SE 0936933
  
	  	 28-Jul-2017
  

	 5002US
  
	  	 US 5,893,841
  
	  	 30-Aug-2016
  

	 5003US
  
	  	 US 5,897,533
  
	  	 14-Jul-2017
  

	 5004US
  
	  	 US 5,919,163
  
	  	 14-Jul-2017
  

	 5005US
  
	  	 US 6,186,146
  
	  	 30-Aug-2016
  

	 	2.	The following trademarks are expected to expire or be abandoned in the next 3 years: 

  

											
	 Mark
  
	 	 Country
  
	  	 Application
 No.

 
	  	 Application
 Date

 
	  	 Registration
 No.

 
	  	 Registration
 Date

 

	 CHEMOSATURATION

 
	 		  		  		  		  	
		 	 Australia
  
	  	 A0018998
  
	  	 08-Mar-10
  
	  	 1033711
  
	  	 08-Mar-10
  

		 	 Brazil
  
	  	 830632321
  
	  	 27-May-10
  
	  		  	
		 	 China
  
	  	 A0018998
  
	  	 08-Mar-10
  
	  	 1033711
  
	  	
		 	 European Union

 
	  	 A0018998
  
	  	 08-Mar-10
  
	  	 1033711
  
	  	
		 	 India
  
	  	 1935211
  
	  	 12-Mar-10
  
	  		  	
		 	 United States of America

 
	  	 77/945,002
  
	  	 25-Feb-10
  
	  		  	
		 	 WIPO
  
	  	 A0018998
  
	  	 08-Mar-10
  
	  	 1033711
  
	  	 08-Mar-10
  

	 DALKYLA

 
	 		  		  		  		  	
		 	 United States of America

 
	  	 85/648,903
  
	  	 11-Jun-12
  
	  		  	
	 DELCATH

 
	 		  		  		  		  	
		 	 United States of America

 
	  	 85/288,586
  
	  	 07-Apr-11
  
	  		  	

											
	 DELKERAN
  
	 		  		  		  		  	
		 	 Australia
  
	  	 A0018996
  
	  	 08-Mar-10
  
	  	 1354960
  
	  	 08-Mar-10
  

		 	 Brazil
  
	  	 830678670
  
	  	 08-Jul-10
  
	  		  	
		 	 China
  
	  	 A0018996
  
	  	 08-Mar-10
  
	  	 1033245
  
	  	 08-Mar-10
  

		 	 European Union
  
	  	 A0018996
  
	  	 08-Mar-10
  
	  		  	
		 	 Korea (South)
  
	  	 A0018996
  
	  	 08-Mar-10
  
	  	 1033245
  
	  	 08-Mar-10
  

		 	 United States of America
  
	  	 77/947,336
  
	  	 01-Mar-10
  
	  		  	
	 INTENZIF
  
	 		  		  		  		  	
		 	 United States of America
  
	  	 85/181,602
  
	  	 19-Nov-10
  
	  		  	
	 ISO-FUSE
  
	 		  		  		  		  	
		 	 Japan
  
	  	 A0018891
  
	  	 01-Mar-10
  
	  		  	
	 ITENZIF
  
	 		  		  		  		  	
		 	 United States of America
  
	  	 85/320,279
  
	  	 13-May-11
  
	  		  	

											
	 MELBLEZ
  
	 		  		  		  		  	
		 	 United States of America
  
	  	 85/648,907
  
	  	 11-Jun-12
  
	  		  	
	 MELBLEZ KIT
  
	 		  		  		  		  	
		 	 United States of America
  
	  	 85/865,824
  
	  	 04-Mar-13
  
	  		  	
	 MELMISAT
  
	 		  		  		  		  	
		 	 United States of America
  
	  	 85/181,614
  
	  	 19-Nov-10
  
	  		  	
	 PERCUTANEOUS

HEPATIC
 PERFUSION

 
	 		  		  		  		  	
		 	 United States of America
  
	  	 77/529,321
  
	  	 23-Jul-08
  
	  		  	

 Schedule 3(oo) 

Management 
 None. 

 Schedule 4(d) 

Use of Proceeds 
 None.

 Exhibit A 

[FORM OF SENIOR SECURED CONVERTIBLE NOTE] 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(iii) AND 19(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY
BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS NOTE. 
 THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE
DISCOUNT (“OID”). PURSUANT TO TREASURY REGULATION §1.1275-3(b)(1), [                    ], A REPRESENTATIVE OF THE COMPANY HEREOF
WILL, BEGINNING TEN DAYS AFTER THE ISSUANCE DATE OF THIS NOTE, PROMPTLY MAKE AVAILABLE TO THE HOLDER UPON REQUEST THE INFORMATION DESCRIBED IN TREASURY REGULATION §1.1275-3(b)(1)(i).
[            ] MAY BE REACHED AT TELEPHONE NUMBER
[(    )        –            ]. 

DELCATH SYSTEMS, INC. 

SENIOR SECURED CONVERTIBLE NOTE 

 

			
	 Issuance Date: [●] 2016
	  	Original Principal Amount: U.S. $[●]

 FOR VALUE RECEIVED, Delcath Systems, Inc., a Delaware corporation (the “Company”),
hereby promises to pay to the order of [BUYER] or its registered assigns (“Holder”) the amount set forth above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or
otherwise, the “Principal”) when due, whether upon the Maturity Date, on any Installment Date with respect to the Installment Amount due on such Installment Date (each as defined below), or upon acceleration, redemption or otherwise
(in each case in accordance with the terms hereof) and, in connection with the occurrence (and continuance) of any Event of Default (as defined below), to pay interest (“Interest”) on any outstanding Principal until the same becomes
due and payable, whether upon 

 
the Maturity Date, on any Installment Date with respect to the Installment Amount due on such Installment Date, or upon acceleration, conversion, redemption or otherwise (in each case in
accordance with the terms hereof). This Senior Secured Convertible Note (including all Senior Secured Convertible Notes issued in exchange, transfer or replacement hereof, this “Note”) is one of an issue of Senior Secured
Convertible Notes issued pursuant to the Securities Purchase Agreement, dated as of June 6, 2016 (the “Subscription Date”), by and among the Company and the investors (the “Buyers”) referred to therein, as amended
from time to time (collectively, the “Notes”, and such other Senior Secured Convertible Notes, the “Other Notes”). Certain capitalized terms used herein are defined in Section 32. 

1.    PAYMENTS OF PRINCIPAL. On each Installment Date, the Company shall pay to the Holder an amount equal to the
Installment Amount due on such Installment Date in accordance with Section 8. On the Maturity Date, the Company shall pay to the Holder an amount in cash (excluding any amounts paid in shares of Common Stock on the Maturity Date in accordance
with Section 8) representing all outstanding Principal, accrued and unpaid Interest and accrued and unpaid Late Charges (as defined in Section 25(c)) on such Principal and Interest. Other than as specifically permitted by this Note, the
Company may not prepay any portion of the outstanding Principal, accrued and unpaid Interest or accrued and unpaid Late Charges on Principal and Interest, if any. 

2.    ORIGINAL ISSUE DISCOUNT; DEFAULT INTEREST. 

(a) This Note was issued with an eight percent (8%) OID. This Note shall not bear Interest except upon the occurrence (and
during the continuance) of an Event of Default (as defined below), in which case this Note shall bear interest at a rate of fifteen percent (15.0%) per annum (the “Interest Rate”). In the event that such Event of Default is
subsequently cured (and no other Event of Default then exists (including, without limitation, for the Company’s failure to pay such Interest at the Default Rate on the applicable Interest Date), Interest hereunder shall cease to accrue as of
the calendar day immediately following the date of such cure; provided that the Interest as calculated and unpaid during the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such
Event of Default through and including the date of such cure of such Event of Default. 
 (b) Interest on this Note shall
commence accruing upon the occurrence of an Event of Default and shall be computed on the basis of a 360-day year and twelve 30-day months and shall be payable in arrears on each Interest Date and shall compound each calendar month and shall be
payable in accordance with the terms of this Note. Interest shall be paid (i) on each Interest Date occurring on an Installment Date in accordance with Section 8 as part of the applicable Installment Amount due on the applicable
Installment Date and (ii) with respect to each other Interest Date, on such Interest Date in cash. Prior to the payment of Interest on an Interest Date, Interest on this Note shall be payable by way of inclusion of the Interest in the
Conversion Amount (as defined below) on each Conversion Date (as defined below) in accordance with Section 3(b)(i) or upon any redemption in accordance with Section 12 or any required payment upon any Bankruptcy Event of Default (as
defined below). 

  
 2 

 3. CONVERSION OF NOTES. At any time after the date set forth above as the Issuance Date
(the “Issuance Date”), this Note shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock, on the terms and conditions set forth in this Section 3. 

(a) Conversion Right. Subject to the provisions of Section 3(d), at any time or times on or after the Issuance
Date, the Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and non-assessable shares of Common Stock in accordance with Section 3(c), at the
Conversion Rate (as defined below). The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction
of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent (as defined below))
that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount. 

(b) Conversion Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to
Section 3(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (as defined below) (the “Conversion Rate”). 

(i) “Conversion Amount” means the sum of (x) portion of the Principal to be converted, redeemed or
otherwise with respect to which this determination is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount and accrued and unpaid Late Charges (as defined in Section 25(c)) with respect to
such portion of such Principal and such Interest, if any. 
 (ii) “Conversion Price” means, as of any
Conversion Date (as defined below) or other date of determination, $[            ]1, subject to adjustment as provided herein. 

(c) Mechanics of Conversion. 

(i) Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion
Date”), the Holder shall deliver (whether via facsimile, electronic mail or otherwise), for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as
Exhibit I (the “Conversion Notice”) to the Company. If 
  

	1 	Insert 110% of the quotient of (x) the sum of the VWAP of the Common Stock on each of the three (3) consecutive Trading Days ending and including the Trading Day ended immediately preceding the Closing Date,
divided by (y) three (3). 

  
 3 

 
required by Section 3(c)(iii), within three (3) Trading Days following a conversion of this Note as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight
delivery service for delivery to the Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated by Section 19(b)). On or before the first (1st) Trading Day following
the date of receipt of a Conversion Notice, the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation and representation as to whether such shares of Common Stock may then be resold pursuant to Rule 144 or an
effective and available registration statement, in the form attached hereto as Exhibit II, of receipt of such Conversion Notice to the Holder and the Company’s transfer agent (the “Transfer Agent”) which confirmation
shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before the third (3rd) Trading Day following the date on which the Company has received a Conversion Notice (or
such other date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Conversion Date of such shares of Common Stock issuable pursuant to such Conversion Notice)
(the “Share Delivery Deadline”), the Company shall (1) provided that the Transfer Agent is participating in The Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer Program and such shares
of Common Stock may be issued without legends under the 1933 Act (as defined below), credit such aggregate number of shares of Common Stock to which the Holder shall be entitled pursuant to such conversion to the Holder’s or its designee’s
balance account with DTC through its Deposit/Withdrawal at Custodian system or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program or such shares of Common Stock may not be issued without legends
under the 1933 Act (as defined below), upon the request of the Holder, issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for
the number of shares of Common Stock to which the Holder shall be entitled pursuant to such conversion. If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and the outstanding Principal of this Note is greater
than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver to the
Holder (or its designee) a new Note (in accordance with Section 19(d)) representing the outstanding Principal not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be
treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date. In the event of a partial conversion of this Note pursuant hereto, (x) the Principal amount converted shall be deducted from the
Installment Amount(s) relating to the Installment Date(s) as set forth in the applicable Conversion Notice and (y) the amount of Restricted Principal converted, if any, shall be set forth in the applicable Conversion Notice. 

  
 4 

 (ii) Company’s Failure to Timely Convert. If the Company shall fail,
for any reason or for no reason, on or prior to the applicable Share Delivery Deadline, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program or such shares of Common Stock may not be issued without legends
under the 1933 Act (as defined below), to issue and deliver to the Holder (or its designee) a certificate for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s share
register or, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program and such shares of Common Stock may be issued without legends under the 1933 Act (as defined below), to credit the balance account of the
Holder or the Holder’s designee with DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion of this Note (as the case may be) (a “Conversion Failure”), and if on or after
such Share Delivery Deadline the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock issuable upon such
conversion that the Holder is entitled to receive from the Company (a “Buy-In”), then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after receipt of the
Holder’s request and in the Holder’s discretion, either: (I) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares
of Common Stock so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and deliver such certificate
(and to issue such shares of Common Stock) or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s
conversion hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such shares of Common Stock
or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) and pay
cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (x) such number of shares of Common Stock multiplied by (y) the Closing Sale Price of the Common Stock on the Share Delivery Deadline with
respect to the related Conversion Notice (the “Buy-In Payment Amount”). Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree
of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the conversion of this
Note as required pursuant to the terms hereof. 

  
 5 

 (iii) Registration; Book-Entry. The Company shall maintain a register (the
“Register”) for the recordation of the names and addresses of the holders of each Note and the principal amount of the Notes and Restricted Principal held by such holders (the “Registered Notes”). The entries in the
Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders of the Notes shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes (including, without
limitation, the right to receive payments of Principal and Interest hereunder) notwithstanding notice to the contrary. A Registered Note may be assigned, transferred or sold in whole or in part only by registration of such assignment or sale on the
Register. Upon its receipt of a written request to assign, transfer or sell all or part of any Registered Note by the holder thereof, the Company shall record the information contained therein in the Register and issue one or more new Registered
Notes in the same aggregate principal amount as the principal amount of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 19, provided that if the Company does not so record an assignment, transfer or
sale (as the case may be) of all or part of any Registered Note within three (3) Business Days of such a request, then the Register shall be automatically deemed updated to reflect such assignment, transfer or sale (as the case may be).
Notwithstanding anything to the contrary set forth in this Section 3, following conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless
(A) the full Conversion Amount represented by this Note is being converted (in which event this Note shall be delivered to the Company following conversion thereof as contemplated by Section 3(c)(i)) or (B) the Holder has provided the
Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company shall maintain records showing the Principal, Interest and
Late Charges (as defined in Section 25(c)) converted and/or paid (as the case may be) or Restricted Principal becoming unrestricted and the dates of such conversions, Controlled Account Release (as defined below) and/or payments (as the case
may be) or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion. If the Company does not update the Register to record such Principal, Interest and
Late Charges (as defined in Section 25(c)) converted and/or paid (as the case may be) or Restricted Principal becoming unrestricted and the dates of such conversions, Controlled Account Release and/or payments (as the case may be) within three
(3) Business Days of such occurrence, then the Register shall be automatically deemed updated to reflect such occurrence. 

(iv) Pro Rata Conversion; Disputes. In the event that the Company receives a Conversion Notice from more than one holder
of Notes for the same Conversion Date and the Company can convert some, but not all, of such portions of the Notes submitted for conversion, the Company, subject to Section 3(d), shall convert from each holder of Notes electing to have Notes
converted on such date a pro rata amount of such holder’s portion of its Notes submitted for conversion based on the principal amount of Notes submitted for conversion on such date by such holder relative to the aggregate principal amount of
all Notes submitted for conversion on such date. In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection with a conversion of this Note, the Company shall issue to the Holder the number of shares of
Common Stock not in dispute and resolve such dispute in accordance with Section 24. 

  
 6 

 (d) Limitations on Conversions. 

(i) Beneficial Ownership. The Company shall not effect the conversion of any portion of this Note, and the Holder shall
not have the right to convert any portion of this Note pursuant to the terms and conditions of this Note and any such conversion shall be null and void and treated as if never made, to the extent that after giving effect to such conversion, the
Holder together with the other Attribution Parties collectively would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such conversion. For
purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and all other Attribution
Parties plus the number of shares of Common Stock issuable upon conversion of this Note with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (A) conversion
of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company
(including, without limitation, any convertible notes or convertible preferred stock or warrants, including, without limitation, the Warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion or
exercise analogous to the limitation contained in this Section 3(d)(i). For purposes of this Section 3(d)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of determining the
number of outstanding shares of Common Stock the Holder may acquire upon the conversion of this Note without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other
written notice by the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives a Conversion Notice from the Holder at a
time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that
such Conversion Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this Section 3(d)(i), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of shares of Common
Stock to be purchased pursuant to such Conversion Notice. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of 

  
 7 

 
Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder and any other Attribution Party since the date
as of which the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the Holder upon conversion of this Note results in the Holder and the other Attribution Parties being deemed to beneficially
own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which the Holder’s and the other Attribution
Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the
Excess Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective until the sixty-first (61st) day after delivery of
such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties and not to any other holder of
Notes that is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Note in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for
any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to convert this Note pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with
respect to any subsequent determination of convertibility. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(d)(i) to the extent necessary to
correct this paragraph (or any portion of this paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 3(d)(i) or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor holder of this Note. 

(ii) Principal Market Regulation. The Company shall not issue any shares of Common Stock upon conversion of this Note or
otherwise pursuant to the terms of this Note if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue upon conversion or exercise (as the case may be) of the Notes and the
Warrants or otherwise pursuant to the terms of this Note without breaching the Company’s obligations under the rules or regulations of the Principal Market (the number of shares which may be issued without violating such rules and regulations,
including rules related to the aggregation of offerings under NASDAQ Listing Rule 5635(d), the “Exchange Cap”), except that such limitation shall not apply to the extent that the Company (A) obtains the approval of its
stockholders as required by the applicable rules of the Principal Market for issuances of shares of Common Stock upon conversion or exercise (as the case may be) of the Notes and the Warrants or otherwise pursuant to the terms of this Note in excess
of such amount 

  
 8 

 
or (B) obtains a written opinion from outside counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder. Until such approval or
such written opinion is obtained, no Buyer shall be issued in the aggregate, upon conversion or exercise (as the case may be) of any Notes or any of the Warrants or otherwise pursuant to the terms of this Note, shares of Common Stock in an amount
greater than the product of (i) the Exchange Cap multiplied by (ii) the quotient of (A) the aggregate original principal amount of Notes issued to such Buyer pursuant to the Securities Purchase Agreement on the Closing Date (and
pursuant to any Permitted Exchange to such Buyer, if any) divided by (B) the aggregate original principal amount of all Notes issued to the Buyers pursuant to the Securities Purchase Agreement on the Closing Date (and pursuant to any Permitted
Exchange to any Buyer, if any) (with respect to each Buyer, the “Exchange Cap Allocation”). In the event that any Buyer shall sell or otherwise transfer any of such Buyer’s Notes, the transferee shall be allocated a pro rata
portion of such Buyer’s Exchange Cap Allocation with respect to such portion of such Notes so transferred, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation so
allocated to such transferee. Upon conversion and exercise in full of a holder’s Notes and Warrants, the difference (if any) between such holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued to such
holder upon such holder’s conversion in full of such holder’s Notes and exercise in full of such Warrants shall be allocated to the respective Exchange Cap Allocations of the remaining holders of Notes and Warrants on a pro rata basis in
proportion to the shares of Common Stock underlying the Notes and Warrants then held by each such holder. At any time after the Stockholder Reserve Deadline (as defined in the Securities Purchase Agreement), in the event that the Company is
prohibited from issuing shares of Common Stock pursuant to this Section 3(d)(ii) (the “Exchange Cap Shares”), the Company shall pay cash in exchange for the cancellation of such shares of Common Stock at a price equal to the
sum of (i) the product of (x) such number of Exchange Cap Shares and (y) the Closing Sale Price of the Common Stock on the date the Holder delivers the applicable Conversion Notice with respect to such Exchange Cap Shares to the
Company and (ii) to the extent the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Exchange Cap Shares, any Buy-In Payment Amount, any brokerage
commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith (collectively, the “Exchange Cap Share Cancellation Amount”); provided, that no Exchange Cap Share Cancellation Amount shall be due
and payable to the Holder to the extent that (x) on or prior to the applicable Share Delivery Deadline, the Exchange Cap Allocation of a Holder is increased (whether by assignment by a holder of Notes and/or Warrants or all, or any portion, of
such holder’s Exchange Cap Allocation or otherwise) (an “Exchange Cap Allocation Increase”) and (y) after giving effect to such Exchange Cap Allocation Increase, the Company delivers the applicable Exchange Cap Shares to
the Holder (or its designee) on or prior to the applicable Share Delivery Deadline. 

  
 9 

 4.    RIGHTS UPON EVENT OF DEFAULT. 

(a) Event of Default. Each of the following events shall constitute an “Event of Default” and each of
the events in clauses (vii), (viii) and (ix) shall constitute a “Bankruptcy Event of Default”: 

(i) the suspension from trading or the failure of the Common Stock to be trading or listed (as applicable) on an Eligible
Market for a period of five (5) consecutive Trading Days; 
 (ii) the Company’s (A) failure to cure a
Conversion Failure or a Delivery Failure (as defined in the Warrants) by delivery of the required number of shares of Common Stock within five (5) Trading Days after the applicable Conversion Date or exercise date (as the case may be) or
(B) notice, written or oral, to any holder of the Notes or Warrants, including, without limitation, by way of public announcement or through any of its agents, at any time, of its intention not to comply, as required, with a request for
conversion of any Notes into shares of Common Stock that is requested in accordance with the provisions of the Notes, other than pursuant to Section 3(d), or a request for exercise of any Warrants for shares of Common Stock in accordance with
the provisions of the Warrants; 
 (iii) except to the extent the Company is in compliance with Section 11(b) below, at
any time following the tenth (10th) consecutive day that the Holder’s Authorized Share Allocation (as defined in Section 11(a) below) is less than (A) the number of shares of
Common Stock that the Holder would be entitled to receive upon a conversion of the full Conversion Amount of this Note (without regard to any limitations on conversion set forth in Section 3(d) or otherwise), and (B) the number of shares
of Common Stock that the Holder would be entitled to receive upon exercise in full of the Holder’s Warrants (without regard to any limitations on exercise set forth in the Warrants); 

(iv) the Company’s or any Subsidiary’s failure to pay to the Holder any amount of Principal, Interest, Late Charges
(as defined in Section 25(c)) or other amounts when and as due under this Note (including, without limitation, the Company’s or any Subsidiary’s failure to pay any redemption payments or amounts hereunder) or any other Transaction
Document (as defined in the Securities Purchase Agreement) or any other agreement, document, certificate or other instrument delivered in connection with the transactions contemplated hereby and thereby, except, in the case of a failure to pay
Interest and Late Charges when and as due, in which case only if such failure remains uncured for a period of at least five (5) Trading Days; 

(v) the Company fails to remove any restrictive legend on any certificate or any shares of Common Stock issued to the Holder
upon conversion or exercise (as the case may be) of any Securities (as defined in the Securities Purchase Agreement) acquired by the Holder under the Securities Purchase Agreement (including this Note) as and when required by such Securities or the
Securities Purchase Agreement, unless otherwise then prohibited by applicable federal securities laws, and any such failure remains uncured for at least five (5) days; 

  
 10 

 (vi) the occurrence of any default under, redemption of or acceleration prior to
maturity of at least an aggregate of $50,000 of Indebtedness (as defined in the Securities Purchase Agreement) of the Company or any of its Subsidiaries, other than with respect to any Other Notes; 

(vii) bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be
instituted by or against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed within thirty (30) days of their initiation; 

(viii) the commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state
or foreign bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect
of the Company or any Subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property, or the making by it of an assignment for the benefit of
creditors, or the execution of a composition of debts, or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts generally as they become due, the taking of
corporate action by the Company or any Subsidiary in furtherance of any such action or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under federal, state or foreign law;

 (ix) the entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any
Subsidiary of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or (ii) a decree, order, judgment or other similar document adjudging the
Company or any Subsidiary as bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company or any Subsidiary under any applicable federal,
state or foreign law or (iii) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order, judgment or other similar document unstayed and in
effect for a period of thirty (30) consecutive days; 

  
 11 

 (x) a final judgment or judgments for the payment of money aggregating in excess
of $50,000 are rendered against the Company and/or any of its Subsidiaries and which judgments are not, within thirty (30) days after the entry thereof, bonded, discharged, settled or stayed pending appeal, or are not discharged within thirty
(30) days after the expiration of such stay; provided, however, any judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $50,000 amount set forth above so long as the Company
provides the Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an indemnity and the Company or such
Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity within thirty (30) days of the issuance of such judgment; 

(xi) the Company and/or any Subsidiary, individually or in the aggregate, either (i) fails to pay, when due, or within any
applicable grace period, any payment with respect to any Indebtedness in excess of $50,000 due to any third party (other than, with respect to unsecured Indebtedness only, payments contested by the Company and/or such Subsidiary (as the case may be)
in good faith by proper proceedings and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP) or is otherwise in breach or violation of any agreement for monies owed or owing in an amount in
excess of $50,000, which breach or violation permits the other party thereto to declare a default or otherwise accelerate amounts due thereunder, or (ii) suffer to exist any other circumstance or event that would, with or without the passage of
time or the giving of notice, result in a default or event of default under any agreement binding the Company or any Subsidiary, which default or event of default would or is likely to have a material adverse effect on the business, assets,
operations (including results thereof), liabilities, properties, condition (including financial condition) or prospects of the Company or any of its Subsidiaries, individually or in the aggregate; 

(xii) other than as specifically set forth in another clause of this Section 4(a), the Company or any Subsidiary breaches
any representation, warranty, covenant or other term or condition of any Transaction Document, except, in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of five
(5) consecutive Trading Days; 
 (xiii) a false or inaccurate certification (including a false or inaccurate deemed
certification) by the Company that either (A) the Equity Conditions are satisfied, (B) there has been no Equity Conditions Failure, or (C) as to whether any Event of Default has occurred; 

(xiv) any breach or failure in any material respect by the Company or any Subsidiary to comply with any provision of
Section 14 of this Note; 
 (xv) any Material Adverse Effect occurs; 

  
 12 

 (xvi) at any time after the six month anniversary of the Closing Date, any
Underlying Securities (as defined in the Securities Purchase Agreement) shall fail to be eligible for resale pursuant to Rule 144 (as defined in the Securities Purchase Agreement) (assuming, for such purpose, that the holders thereof are not
affiliates of the Company and disregarding any limitation on conversion of the Notes, other issuance of securities with respect to the Notes and exercise of the Warrants), but only if such failure remains uncured for a period of ten
(10) consecutive Trading Days; 
 (xvii) any material provision of any Transaction Document (including, without
limitation, the Security Documents and the Guaranties) shall at any time for any reason (other than pursuant to the express terms thereof) cease to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability
thereof shall be contested by any party thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof,
or the Company or any Subsidiary shall deny in writing that it has any liability or obligation purported to be created under any Transaction Document (including, without limitation, the Security Documents and the Guaranties); 

(xviii) any Security Document shall for any reason fail or cease to create a separate valid and perfected and, except to the
extent permitted by the terms hereof or thereof, first priority Lien (as defined below) on the Collateral (as defined in the Security Documents) (which includes, without limitation, the Master Account Collateral (as defined below)) in favor of the
Collateral Agent or any material provision of any Security Document shall at any time for any reason cease to be valid and binding on or enforceable against the Company or the validity or enforceability thereof shall be contested by any party
thereto, or a proceeding shall be commenced by the Company or any governmental authority having jurisdiction over the Company, seeking to establish the invalidity or unenforceability thereof; or 

(xix) any Event of Default (as defined in the Other Notes) occurs with respect to any Other Notes. 

(b) Notice of an Event of Default; Redemption Right. Upon the occurrence of an Event of Default with respect to this
Note or any Other Note, the Company shall within one (1) Business Day deliver written notice thereof via facsimile or electronic mail and overnight courier (with next day delivery specified) (an “Event of Default Notice”) to
the Holder. At any time after the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event of Default, the Holder may require the Company to redeem (regardless of whether such Event of Default has
been cured) all or any portion of this Note by delivering written notice thereof (the “Event of Default Redemption Notice”) to the Company, which Event of Default Redemption Notice shall indicate the portion of this Note the Holder
is electing to redeem. Each portion of this Note subject to redemption by the Company pursuant to this Section 4(b) shall be redeemed by the Company at a price equal to the greater of (i) the product of (A) the

  
 13 

 
Conversion Amount to be redeemed multiplied by (B) the Redemption Premium and (ii) the product of (X) the Conversion Rate with respect to the Conversion Amount in effect at such
time as the Holder delivers an Event of Default Redemption Notice multiplied by (Y) the product of (1) the Redemption Premium multiplied by (2) the greatest VWAP of the Common Stock on any Trading Day during the period commencing on
the date immediately preceding such Event of Default and ending on the date the Company makes the entire payment required to be made under this Section 4(b) (the “Event of Default Redemption Price”). Redemptions required by
this Section 4(b) shall be made in accordance with the provisions of Section 12. To the extent redemptions required by this Section 4(b) are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by
the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section 4(b), but subject to Section 3(d), until the Event of Default Redemption Price (together with any Late Charges
(as defined in Section 25(c)) thereon) is paid in full, the Conversion Amount submitted for redemption under this Section 4(b) (together with any Late Charges thereon) may be converted, in whole or in part, by the Holder into Common Stock
pursuant to the terms of this Note. In the event of a partial redemption of this Note pursuant hereto, (x) the Principal amount redeemed shall be deducted from the Installment Amount(s) relating to the applicable Installment Date(s) as set
forth in the Event of Default Redemption Notice and (y) the amount of Restricted Principal redeemed, if any, shall be set forth in the applicable Event of Default Redemption Notice. In the event of the Company’s redemption of any portion
of this Note under this Section 4(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable
substitute investment opportunity for the Holder. Accordingly, any redemption premium due under this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment
opportunity and not as a penalty. Any redemption upon an Event of Default shall not constitute an election of remedies by the Holder, and all other rights and remedies of the Holder shall be preserved. 

(c) Mandatory Redemption upon Bankruptcy Event of Default. Notwithstanding anything to the contrary herein, and
notwithstanding any conversion that is then required or in process, upon any Bankruptcy Event of Default, whether occurring prior to or following the Maturity Date, the Company shall immediately pay to the Holder an amount in cash representing
(i) all outstanding Principal, accrued and unpaid Interest and accrued and unpaid Late Charges on such Principal and Interest, multiplied by (ii) the Redemption Premium, in addition to any and all other amounts due hereunder, without the
requirement for any notice or demand or other action by the Holder or any other person or entity, provided that the Holder may, in its sole discretion, waive such right to receive payment upon a Bankruptcy Event of Default, in whole or in part, and
any such waiver shall not affect any other rights of the Holder hereunder, including any other rights in respect of such Bankruptcy Event of Default, any right to conversion, and any right to payment of the Event of Default Redemption Price or any
other Redemption Price, as applicable. 

  
 14 

 5.    RIGHTS UPON FUNDAMENTAL TRANSACTION. 

(a) Assumption. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor
Entity assumes in writing all of the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions of this Section 5(a) pursuant to written agreements in form and substance reasonably
satisfactory to the Holder prior to such Fundamental Transaction, including agreements to deliver to each holder of Notes in exchange for such Notes a security of the Successor Entity evidenced by a written instrument substantially similar in form
and substance to the Notes, including, without limitation, having a principal amount and interest rate equal to the principal amounts then outstanding and the interest rates of the Notes held by such holder, having similar conversion rights as the
Notes and having similar ranking and security to the Notes and (ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market. Upon the
occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to
the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Note and the other Transaction Documents with the same
effect as if such Successor Entity had been named as the Company herein. Upon consummation of a Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or redemption of this
Note at any time after the consummation of such Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 6 and 16, which shall continue to be
receivable thereafter) issuable upon the conversion or redemption of the Notes prior to such Fundamental Transaction, such shares of the publicly traded common stock (or their equivalent) of the Successor Entity (including its Parent Entity) which
the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had this Note been converted immediately prior to such Fundamental Transaction (without regard to any limitations on the conversion of this Note), as
adjusted in accordance with the provisions of this Note. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 5(a) to permit the Fundamental Transaction
without the assumption of this Note. The provisions of this Section 4(c) shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion of this Note. 

(b) Notice of a Change of Control; Redemption Right. No sooner than twenty (20) Trading Days nor later than ten
(10) Trading Days prior to the consummation of a Change of Control, but not prior to the public announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile or electronic mail and overnight courier to
the Holder (a “Change of Control Notice”). At any time during the period beginning after the Holder’s receipt of a Change of Control Notice or the Holder becoming aware of a Change of Control if a Change of Control Notice is
not delivered to 

  
 15 

 
the Holder in accordance with the immediately preceding sentence (as applicable) and ending on the later of twenty (20) Trading Days after (A) consummation of such Change of Control or
(B) the date of receipt of such Change of Control Notice, the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof (“Change of Control Redemption Notice”) to the Company,
which Change of Control Redemption Notice shall indicate the Conversion Amount the Holder is electing to redeem. The portion of this Note subject to redemption pursuant to this Section 5(b) shall be redeemed by the Company in cash at a price
equal to the greatest of (i) the product of (w) the Change of Control Redemption Premium multiplied by (y) the Conversion Amount being redeemed, (ii) the product of (x) the Change of Control Redemption Premium multiplied by
(y) the product of (A) the Conversion Amount being redeemed multiplied by (B) the quotient determined by dividing (I) the greatest VWAP of the Common Stock during the period beginning on the date immediately preceding the earlier
to occur of (1) the consummation of the applicable Change of Control and (2) the public announcement of such Change of Control and ending on the date the Holder delivers the Change of Control Redemption Notice by (II) the Conversion Price
then in effect and (iii) the product of (y) the Change of Control Redemption Premium multiplied by (z) the product of (A) the Conversion Amount being redeemed multiplied by (B) the quotient of (I) the aggregate cash
consideration and the aggregate cash value of any non-cash consideration per share of Common Stock to be paid to the holders of the shares of Common Stock upon consummation of such Change of Control (any such non-cash consideration constituting
publicly-traded securities shall be valued at the highest of the Closing Sale Price of such securities as of the Trading Day immediately prior to the consummation of such Change of Control, the Closing Sale Price of such securities on the Trading
Day immediately following the public announcement of such proposed Change of Control and the Closing Sale Price of such securities on the Trading Day immediately prior to the public announcement of such proposed Change of Control) divided by (II)
the Conversion Price then in effect (the “Change of Control Redemption Price”). Redemptions required by this Section 5(b) shall be made in accordance with the provisions of Section 12 and shall have priority to payments to
stockholders in connection with such Change of Control. To the extent redemptions required by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by the Company, such redemptions shall
be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section 5(b), but subject to Section 3(d), until the Change of Control Redemption Price (together with any Late Charges (as defined in
Section 25(c)) thereon) is paid in full, the Conversion Amount submitted for redemption under this Section 5(b) (together with any Late Charges thereon) may be converted, in whole or in part, by the Holder into Common Stock pursuant to
Section 3. In the event of a partial redemption of this Note pursuant hereto, (x) the Principal amount redeemed shall be deducted from the Installment Amount(s) relating to the applicable Installment Date(s) as set forth in the Change of
Control Redemption Notice and (y) the amount of Restricted Principal redeemed, if any, shall be set forth in the applicable Change of Control Redemption Notice. In the event of the Company’s redemption of any portion of this Note under
this Section 5(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’ 

  
 16 

 
inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any redemption premium due under
this Section 5(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty. 

6.    RIGHTS UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS. 

(a) Purchase Rights. In addition to any adjustments pursuant to Section 7 below, if at any time the Company grants,
issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete
conversion of this Note (without taking into account any limitations or restrictions on the convertibility of this Note and assuming for such purpose that the Note was converted at the Conversion Price as of the applicable record date) immediately
prior to the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then
the Holder shall not be entitled to participate in such Purchase Right to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial
ownership) to the extent of any such excess) and such Purchase Right to such extent shall be held in abeyance (and, if such Purchase Right has an expiration date, maturity date or other similar provision, such term shall be extended by such number
of days held in abeyance, if applicable) for the benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times
the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance (and, if such Purchase Right has an expiration date, maturity date
or other similar provision, such term shall be extended by such number of days held in abeyance, if applicable)) to the same extent as if there had been no such limitation). 

(b) Other Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the
consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the
Company shall make appropriate provision to ensure that the Holder will thereafter have the right to receive upon a conversion of this Note, at the Holder’s option (i) in addition to the shares of Common Stock receivable upon such
conversion, such securities or other 

  
 17 

 
assets to which the Holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon the consummation of such Corporate
Event (without taking into account any limitations or restrictions on the convertibility of this Note) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or other assets received by the
holders of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive had this Note initially been issued with conversion rights for the form of such
consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate. Provision made pursuant to the preceding sentence shall be in a form and substance satisfactory to the Holder.
The provisions of this Section 6 shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations on the conversion or redemption of this Note. 

7.    RIGHTS UPON ISSUANCE OF OTHER SECURITIES. 

(a) Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time on or
after the Subscription Date subdivides (by any stock split, stock dividend, stock combination, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the
Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time on or after the Subscription Date combines (by any stock split, stock dividend, stock combination, recapitalization or other
similar transaction) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased. Any adjustment pursuant to
this Section 7(a) shall become effective immediately after the effective date of such subdivision or combination. 
 (b)
Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities
or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issuance or sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase (as the case may be). 

(c) Calculations. All calculations under this Section 7 shall be made by rounding to the nearest cent or the
nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the
disposition of any such shares shall be considered an issue or sale of Common Stock. 
 (d) Voluntary Adjustment by
Company. The Company may at any time during the term of this Note, with the prior written consent of the Required Holders (as defined in the Securities Purchase Agreement), reduce the then current Conversion Price of each of the Notes to any
amount and for any period of time deemed appropriate by the board of directors of the Company. 

  
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 8.    INSTALLMENT CONVERSION OR REDEMPTION. 

(a) General. On each applicable Installment Date, provided there has been no Equity Conditions Failure, the Company
shall pay to the Holder of this Note the applicable Installment Amount due on such date by converting such Installment Amount in accordance with this Section 8 (an “Installment Conversion”); provided, however,
that the Company may, at its option following notice to the Holder as set forth below, pay the Installment Amount by redeeming such Installment Amount in cash (an “Installment Redemption”) or by any combination of an Installment
Conversion and an Installment Redemption so long as all of the outstanding applicable Installment Amount due on any Installment Date shall be converted and/or redeemed by the Company on the applicable Installment Date, subject to the provisions of
this Section 8. On the date which is the twenty-sixth (26th) Trading Day prior to each Installment Date (or, with respect to the initial Installment Date, the Initial Installment Notice Due Date) (each, an “Installment Notice Due
Date”), the Company shall deliver written notice (each, an “Installment Notice” and the date all of the holders receive such notice is referred to as to the “Installment Notice Date”), to each holder of
Notes and such Installment Notice shall (i) either (A) confirm that the applicable Installment Amount of such holder’s Note shall be converted in whole pursuant to an Installment Conversion or (B) (1) state that the Company
elects to redeem for cash, or is required to redeem for cash in accordance with the provisions of the Notes, in whole or in part, the applicable Installment Amount pursuant to an Installment Redemption and (2) specify the portion of such
Installment Amount which the Company elects or is required to redeem pursuant to an Installment Redemption (such amount to be redeemed in cash, the “Installment Redemption Amount”) and the portion of the applicable Installment
Amount, if any, with respect to which the Company will, and is permitted to, effect an Installment Conversion (such amount of the applicable Installment Amount so specified to be so converted pursuant to this Section 8 is referred to herein as
the “Installment Conversion Amount”), which amounts when added together, must at least equal the entire applicable Installment Amount and (ii) if the applicable Installment Amount is to be paid, in whole or in part, pursuant to
an Installment Conversion, certify that there is not then an Equity Conditions Failure as of the applicable Installment Notice Date. Each Installment Notice shall be irrevocable. If the Company does not timely deliver an Installment Notice in
accordance with this Section 8 with respect to a particular Installment Date, then the Company shall be deemed to have delivered an irrevocable Installment Notice confirming an Installment Conversion of the entire Installment Amount payable on
such Installment Date and shall be deemed to have certified that there is not then an Equity Conditions Failure in connection with such Installment Conversion. No later than three (3) Trading Days (or such earlier date as required pursuant to
the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Installment Notice Due Date of such shares of Common Stock issuable pursuant to the applicable Installment Notice) after delivery or
deemed delivery (as applicable) of the applicable Installment Notice setting forth an Installment Conversion Amount, the Company shall deliver to the 

  
 19 

 
Holder’s account with DTC such number of shares of Common Stock (the “Pre-Installment Conversion Shares”) equal to the quotient of (x) such Installment Conversion
Amount divided by (y) the Pre-Installment Conversion Price, and as to which the Holder shall be the owner thereof as of such time of delivery or deemed delivery (as the case may be) of such Installment Notice. Except as expressly provided in
this Section 8(a), the Company shall convert and/or redeem the applicable Installment Amount of this Note pursuant to this Section 8 and the corresponding Installment Amounts of the Other Notes pursuant to the corresponding provisions of
the Other Notes in the same ratio of the applicable Installment Amount being converted and/or redeemed hereunder. The applicable Installment Conversion Amount (whether set forth in the applicable Installment Notice or by operation of this
Section 8) shall be converted in accordance with Section 8(b) and the applicable Installment Redemption Amount shall be redeemed in accordance with Section 8(c). 

(b) Mechanics of Installment Conversion. Subject to Section 3(d), if the Company delivers an Installment Notice or
is deemed to have delivered an Installment Notice certifying that such Installment Amount is being paid, in whole or in part, in an Installment Conversion in accordance with Section 8(a), then the remainder of this Section 8(b) shall
apply. The applicable Installment Conversion Amount, if any, shall be converted on the applicable Installment Date at the applicable Installment Conversion Price and the Company shall, on such Installment Date, deliver to the Holder’s account
with DTC such shares of Common Stock issued upon such conversion (subject to the reduction contemplated by the immediately following sentence and, if applicable, the penultimate sentence of this Section 8(b)), provided that the Equity
Conditions are then satisfied (or waived in writing by the Holder) on such Installment Date and an Installment Conversion is not otherwise prohibited under any other provision of this Note. The number of shares of Common Stock to be delivered upon
such Installment Conversion shall be reduced by the number of any Pre-Installment Conversion Shares delivered in connection with such Installment Date. If an Event of Default occurs during any applicable Equity Conditions Measuring Period (as
defined below), then, at the option of the Holder designated in writing to the Company, either (i) the Holder shall return to the Company all, or any part, of such Pre-Installment Conversion Shares delivered in connection with the applicable
Installment Date or (ii) the Conversion Amount used to calculate the Event of Default Redemption Price shall be reduced by the product of (x) the Installment Conversion Amount applicable to such Installment Date (as adjusted downward
proportionally with respect to any Pre-Installment Conversion Shares returned to the Company pursuant to clause (i) above) multiplied by (y) the Conversion Share Ratio. If the Company confirmed (or is deemed to have confirmed by operation
of Section 8(a)) the conversion of the applicable Installment Conversion Amount, in whole or in part, and there was no Equity Conditions Failure as of the applicable Installment Notice Date (or is deemed to have certified that the Equity
Conditions in connection with any such conversion have been satisfied by operation of Section 8(a)) but an Equity Conditions Failure occurred between the applicable Installment Notice Date and any time through the applicable Installment Date
(the “Interim Installment Period”), the Company shall provide the Holder a subsequent 

  
 20 

 
notice to that effect. If there is an Equity Conditions Failure (which is not waived in writing by the Holder) during such Interim Installment Period or an Installment Conversion is not otherwise
permitted under any other provision of this Note, then, at the option of the Holder designated in writing to the Company, the Holder may require the Company to do any one or more of the following: (i) the Company shall redeem all or any part
designated by the Holder of the unconverted Installment Conversion Amount (such designated amount is referred to as the “Designated Redemption Amount”) and the Company shall pay to the Holder within three (3) days of such
Installment Date, by wire transfer of immediately available funds, an amount in cash equal to 118% of such Designated Redemption Amount, and/or (ii) the Installment Conversion shall be null and void with respect to all or any part designated by
the Holder of the unconverted Installment Conversion Amount and the Holder shall be entitled to all the rights of a holder of this Note with respect to such designated part of the Installment Conversion Amount; provided, however, the Conversion
Price for such designated part of such unconverted Installment Conversion Amount shall thereafter be adjusted to equal the lesser of (A) the Installment Conversion Price as in effect on the date on which the Holder voided the Installment
Conversion and (B) the Installment Conversion Price that would be in effect on the date on which the Holder delivers a Conversion Notice relating thereto as if such date was an Installment Date. In addition, if any of the Equity Conditions are
not satisfied (or waived in writing by the Holder) on such Installment Date or an Installment Conversion is not otherwise permitted under any other provision of this Note, then, at the Holder’s option, either (I) the Holder shall return
any Pre-Installment Conversion Shares delivered in connection with the applicable Installment Date or (II) the applicable Designated Redemption Amount shall be reduced by the product of (X) the Installment Conversion Amount applicable to such
Installment Date multiplied by (Y) the Conversion Share Ratio. If the Company fails to redeem any Designated Redemption Amount by the third (3rd) day following the applicable Installment
Date by payment of such amount by such date, then the Holder shall have the rights set forth in Section 12(a) as if the Company failed to pay the applicable Installment Redemption Price (as defined below) and all other rights under this Note
(including, without limitation, such failure constituting an Event of Default described in Section 4(a)(iv)). Notwithstanding anything to the contrary in this Section 8(b), but subject to 3(d), until the Company delivers Common Stock
representing the Installment Conversion Amount to the Holder, the Installment Conversion Amount may be converted by the Holder into Common Stock pursuant to Section 3. In the event that the Holder elects to convert the Installment Conversion
Amount prior to the applicable Installment Date as set forth in the immediately preceding sentence, the Installment Conversion Amount so converted shall be deducted from the Installment Amount(s) relating to the applicable Installment Date(s) as set
forth in the applicable Conversion Notice. Notwithstanding anything herein to the contrary, if, with respect to an Installment Date, the number of Pre-Installment Conversion Shares delivered to the Holder exceeds the number of Post-Installment
Conversion Shares with respect to such Installment Date, then such excess number of shares shall be deducted from the Installment Amount due on the next succeeding Installment Date, if any. The Company shall pay any and all taxes that may be payable
with respect to the issuance and delivery of any shares of Common Stock in any Installment Conversion hereunder. 

  
 21 

 (c) Mechanics of Installment Redemption. If the Company elects or is
required to effect an Installment Redemption, in whole or in part, in accordance with Section 8(a), then the Installment Redemption Amount, if any, shall be redeemed by the Company in cash on the applicable Installment Date by wire transfer to
the Holder of immediately available funds in an amount equal to the applicable Installment Redemption Amount (the “Installment Redemption Price”). If the Company fails to redeem such Installment Redemption Amount on such Installment
Date by payment of the Installment Redemption Price, then, at the option of the Holder designated in writing to the Company (any such designation shall be deemed to be a “Conversion Notice” for purposes of this Note), the Holder may
require the Company to convert all or any part of the Installment Redemption Amount at the Installment Conversion Price (determined as of the date of such designation as if such date were an Installment Date). Conversions required by this
Section 8(c) shall be made in accordance with the provisions of Section 3(c). Notwithstanding anything to the contrary in this Section 8(c), but subject to Section 3(d), until the Installment Redemption Price (together with any
Late Charges (as defined in Section 25(c)) thereon) is paid in full, the Installment Redemption Amount (together with any Late Charges thereon) may be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3.
In the event the Holder elects to convert all or any portion of the Installment Redemption Amount prior to the applicable Installment Date as set forth in the immediately preceding sentence, the Installment Redemption Amount so converted shall be
deducted from the Installment Amounts relating to the applicable Installment Date(s) as set forth in the applicable Conversion Notice. Redemptions required by this Section 8(c) shall be made in accordance with the provisions of Section 12.

 (d) Deferred Installment Amount. Notwithstanding any provision of this Section 8(d) to the contrary, the
Holder may, at its option and in its sole discretion, deliver a written notice to the Company no later than the Trading Day immediately prior to the applicable Installment Date electing to have the payment of all or any portion of an Installment
Amount payable on such Installment Date deferred (such amount deferred, the “Deferral Amount”, and such deferral, each a “Deferral”) until any subsequent Installment Date selected by the Holder, in its sole
discretion, in which case, the Deferral Amount shall be added to, and become part of, such subsequent Installment Amount and such Deferral Amount shall continue to accrue Interest hereunder, if applicable. Any notice delivered by the Holder pursuant
to this Section 8(d) shall set forth (i) the Deferral Amount and (ii) the date that such Deferral Amount shall now be payable. 

(e) Acceleration of Installment Amounts. Notwithstanding any provision of this Section 8 to the contrary, but
subject to Section 3(d), if the Company delivers an Installment Notice and confirms, or is deemed to have delivered and confirmed, in whole or in part, an Installment Conversion in accordance with Section 8(a) (each such applicable
Installment Date, a “Current Installment Date”), during the period commencing on the Installment Notice Due Date immediately prior to such applicable 

  
 22 

 
Current Installment Date and ending on the Trading Day immediately prior to the next Installment Date (each, an “Installment Period”), the Holder may elect, at its option and in
its sole discretion, at one or more times in such Installment Period, (x) if such election is made prior to third (3rd) Trading Day immediately prior to such Current Installment Date (each, a “Pre-Delivery Acceleration Expiration
Date”), to increase the Installment Conversion Amount (and related Installment Amount) with respect to such Current Installment Date in which case, such Acceleration Amount(s) (as defined below) shall be added to, and become part of, the
Installment Amount as such Installment Amount may have been increased pursuant to the terms hereof, payable on such applicable Installment Date by including such Acceleration Amount(s) in the Installment Amount for the applicable Installment Date
and shall be payable in Common Stock by including such Acceleration Amount(s) in the Installment Conversion Amount for the applicable Installment Date and (y) if such election is made on or after the Pre-Delivery Acceleration Expiration Date,
to convert other Installment Amounts as of such election date (each, an “Acceleration”, and each such amount of acceleration or conversion, as applicable, an “Acceleration Amount”, and each such election date, an
“Acceleration Date”), in whole or in part, at the Installment Conversion Price of such Current Installment Date (with “Installment Conversion Price” replacing “Conversion Price” and the “Acceleration
Date” replacing “Conversion Date” for all purposes hereunder with respect to such Acceleration) in accordance with the conversion procedures set forth in Section 3 hereunder, mutatis mutandis. Any such notice delivered by
the Holder (each, an “Acceleration Notice”) shall set forth (i) the Acceleration Amount(s), (ii) the applicable Current Installment Date and (iii) the date that such Acceleration Amount(s) should have been paid if not
for the Holder’s right to accelerate such Installment Amount(s) pursuant to this Section 8(e). To the extent more than one Installment Period exists as of an Acceleration Date, the Holder shall also elect in such Acceleration Notice which
Pre-Installment Conversion Price or Installment Conversion Price, as applicable, shall apply with respect to such Acceleration. The Company shall deliver Pre-Installment Conversion Shares to the Holder with respect to any Acceleration occurring
prior to the Pre-Delivery Acceleration Expiration Date related to, and based on the same Pre-Installment Conversion Price as, the Current Installment Date attributable to such Acceleration as soon as commercially practicable after the applicable
Acceleration Date, but no later than the second (2nd) Trading Day after such Acceleration Date. Subject to Section 3(d), until the Company delivers shares of Common Stock representing
the applicable Acceleration Amount to the Holder, such Acceleration Amount may be converted by the Holder into shares of Common Stock pursuant to Section 3(c) without regard to this Section 8(e). Notwithstanding anything to the contrary in
this Section 8(e), (with respect to each period commencing on an Installment Notice Due Date (the “Current Installment Notice Due Date”) and ending on the Trading Day immediately prior to the next Installment Notice Due Date
(each, an “Acceleration Measuring Period”), the Holder may not elect to effect an Acceleration (the “Current Acceleration”, and such date of determination, the “Current Acceleration Determination
Date”) during such Acceleration Measuring Period if the total adjustments to the Installment Conversion Amount with respect to the Installment Date related to such Current Acceleration (as adjusted for any other Accelerations and

  
 23 

 
Deferrals during such Acceleration Measuring Period), exceeds three (3) times the Installment Amount with respect to the Installment Date related to such Current Acceleration (without regard
to any Accelerations or Deferrals with respect to the Installment Date related to such Current Acceleration). 

9.    REDEMPTIONS AT THE COMPANY’S ELECTION. 

(a) Company Optional Redemption. At any time after the earlier of (x) March 31, 2017 and (y) the date at
least an aggregate of $18 million has been released to the Company from Master Restricted Accounts (as defined below) (excluding the initial $3 million wired to a Controlled Account (as defined below) other than a Master Restricted Account (as
defined below) on the Closing Date), so long as no Equity Conditions Failure then exists, the Company shall have the right to redeem all, but not less than all, of any Principal then remaining under this Note and all Other Notes (the
“Company Optional Redemption Amount”) on the Company Optional Redemption Date (each as defined below) (a “Company Optional Redemption”). The portion of this Note subject to redemption pursuant to this
Section 9(a) shall be redeemed by the Company in cash at a price (the “Company Optional Redemption Price”) equal to 100% of the Principal being redeemed as of the Company Optional Redemption Date (as defined below), which shall
be redeemed from a combination of amounts held in the Master Restricted Account No. [ ] and amounts held in other Company accounts. The Company may exercise its right to require redemption under this Section 9(a) by delivering a written notice
thereof by facsimile or electronic mail and overnight courier to all, but not less than all, of the holders of Notes (the “Company Optional Redemption Notice” and the date all of the holders of Notes received such notice is referred
to as the “Company Optional Redemption Notice Date”). The Company may deliver only one Company Optional Redemption Notice hereunder and such Company Optional Redemption Notice shall be irrevocable. The Company Optional Redemption
Notice shall (x) state the date on which the Company Optional Redemption shall occur (the “Company Optional Redemption Date”) which date shall not be less than twenty (20) Trading Days nor more than thirty
(30) Trading Days following the Company Optional Redemption Notice Date, (y) certify that there has been no Equity Conditions Failure and (z) state the aggregate Principal of the Notes which is being redeemed in such Company Optional
Redemption from the Holder and all of the other holders of the Notes pursuant to this Section 9(a) (and analogous provisions under the Other Notes) on the Company Optional Redemption Date. Notwithstanding anything herein to the contrary,
(i) if no Equity Conditions Failure has occurred as of the Company Optional Redemption Notice Date but an Equity Conditions Failure occurs at any time prior to the Company Optional Redemption Date, (A) the Company shall provide the Holder
a subsequent notice to that effect and (B) unless the Holder waives the Equity Conditions Failure, the Company Optional Redemption shall be cancelled and the applicable Company Optional Redemption Notice shall be null and void and shall not
limit the Company’s right to effectuate a Company Optional Redemption in accordance with this Section 9 at such time as such Equity Conditions Failure has been remedied and (ii) at any time prior to the date the Company Optional
Redemption Price is paid, in full, the Company Optional Redemption Amount may be converted, in whole or in part and (including, without 

  
 24 

 
limitation, pursuant to any Accelerations), by the Holder into shares of Common Stock pursuant to the terms of this Note. All Principal converted by the Holder after the Company Optional
Redemption Notice Date shall reduce the Company Optional Redemption Amount of this Note required to be redeemed on the Company Optional Redemption Date. Redemptions made pursuant to this Section 9(a) shall be made in accordance with
Section 12. For the avoidance of doubt, the Company shall have no right to effect a Company Optional Redemption if any Event of Default has occurred and continuing, but any Event of Default shall have no effect upon the Holder’s right to
convert this Note in its discretion. 
 (b) Pro Rata Redemption Requirement. If the Company elects to cause a Company
Optional Redemption of this Note pursuant to Section 9(a), then it must simultaneously take the same action with respect to all of the Other Notes. 

10.    NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its
Certificate of Incorporation (as defined in the Securities Purchase Agreement), Bylaws (as defined in the Securities Purchase Agreement) or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action
as may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any other provision of this Note or the other Transaction Documents, the Company (a) shall not increase the par value of
any shares of Common Stock receivable upon conversion of this Note above the Conversion Price then in effect, and (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully
paid and nonassessable shares of Common Stock upon the conversion of this Note. Notwithstanding anything herein to the contrary, if after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted to convert this
Note in full for any reason (other than pursuant to restrictions set forth in Section 3(d) hereof), the Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals as
necessary to permit such conversion into shares of Common Stock. 
 11.    RESERVATION OF AUTHORIZED SHARES. 

(a) Reservation. As of the Issuance Date, the Company shall have reserved (and shall not reduce such reserve other than
with respects to conversion, redemptions or payments of Installment Amounts with respect to the Notes) 7,034,564 shares of Common Stock to effect the conversion and payments under the Notes. After the Stockholder Reserve Deadline (as defined in the
Securities Purchase Agreement), so long as any Notes remain outstanding, the Company shall at all times reserve at least 150% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion, including without
limitation, Installment Conversions, and Accelerations, of all of the Notes then outstanding (assuming for purposes hereof that (x) the Notes are convertible at the lower of (A) the Conversion Price Floor and (B) the Conversion Price
as of the applicable date of determination and (y) any such conversion shall not take into 

  
 25 

 
account any limitations on the conversion of the Notes set forth in the Notes) (the “Required Reserve Amount”). The Required Reserve Amount (including, without limitation, each
increase in the number of shares so reserved) shall be allocated pro rata among the holders of the Notes based on the original principal amount of the Notes held by each holder on the Closing Date or increase in the number of reserved shares, as the
case may be (the “Authorized Share Allocation”). In the event that a holder shall sell or otherwise transfer any of such holder’s Notes, each transferee shall be allocated a pro rata portion of such holder’s Authorized
Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Notes shall be allocated to the remaining holders of Notes, pro rata based on the principal amount of the Notes then held by such holders.

 (b) Insufficient Authorized Shares. If, notwithstanding Section 11(a), and not in limitation thereof, at any
time following the Stockholder Reserve Deadline (as defined in the Securities Purchase Agreement) while any of the Notes remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy
its obligation to reserve for issuance upon conversion of the Notes at least a number of shares of Common Stock equal to the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take all action
necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Notes then outstanding. Without limiting the generality of the foregoing sentence,
as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for
the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’
approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal. If, at any time sixty (60) or more days after an Authorized Share Failure, the
Company is prohibited from issuing shares of Common Stock pursuant to the terms of this Note due to the failure by the Company to have sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such
unavailable number of shares of Common Stock, the “Authorized Failure Shares”), in lieu of delivering such Authorized Failure Shares to the Holder, the Company shall pay cash in exchange for the redemption of such portion of the
Conversion Amount convertible into such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorized Failure Shares and (y) the Closing Sale Price of the Common Stock on the date the Holder
delivers the applicable Conversion Notice with respect to such Authorized Failure Shares to the Company; and (ii) to the extent the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction
of a sale by the Holder of Authorized Failure Shares, any brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith. Nothing contained in Section 11(a) or this Section 11(b) shall limit
any obligations of the Company under any provision of the Securities Purchase Agreement. 

  
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 12.    REDEMPTIONS. 

(a) Mechanics. The Company shall deliver the applicable Event of Default Redemption Price to the Holder in cash within
five (5) Business Days after the Company’s receipt of the Holder’s Event of Default Redemption Notice. If the Holder has submitted a Change of Control Redemption Notice in accordance with Section 5(b), the Company shall deliver
the applicable Change of Control Redemption Price to the Holder in cash concurrently with the consummation of such Change of Control if such notice is received prior to the consummation of such Change of Control and within five (5) Business
Days after the Company’s receipt of such notice otherwise. The Company shall deliver the applicable Installment Redemption Price to the Holder in cash on the applicable Installment Date. The Company shall deliver the applicable Company Optional
Redemption Price to the Holder in cash on the applicable Company Optional Redemption Date. Notwithstanding anything herein to the contrary, in connection with any redemption hereunder at a time the Holder is entitled to receive a cash payment under
any of the other Transaction Documents, at the option of the Holder delivered in writing to the Company, the applicable Redemption Price hereunder shall be increased by the amount of such cash payment owed to the Holder under such other Transaction
Document and, upon payment in full or conversion in accordance herewith, shall satisfy the Company’s payment obligation under such other Transaction Document. In the event of a redemption of less than all of the Conversion Amount of this Note,
the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with Section 19(d)) representing the outstanding Principal which has not been redeemed. In the event that the Company does not pay the
applicable Redemption Price to the Holder within the time period required, at any time thereafter and until the Company pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the Company to
promptly return to the Holder all or any portion of this Note representing the Conversion Amount that was submitted for redemption and for which the applicable Redemption Price (together with any Late Charges (as defined in Section 25(c))
thereon) has not been paid. Upon the Company’s receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount, (y) the Company shall immediately return this Note, or issue a
new Note (in accordance with Section 19(d)), to the Holder, and in each case the principal amount of this Note or such new Note (as the case may be) shall be increased by an amount equal to the difference between (1) the applicable
Redemption Price (as the case may be, and as adjusted pursuant to this Section 12, if applicable) minus (2) the Principal portion of the Conversion Amount submitted for redemption and (z) the Conversion Price of this Note or such new
Notes (as the case may be) shall be automatically adjusted with respect to each conversion effected thereafter by the Holder to the lowest of (A) the Conversion Price as in effect on the date on which the applicable Redemption Notice is voided,
(B) the greater of (x) the Conversion Price Floor and (y) 85% of the lowest Closing Bid Price of the Common Stock during the period beginning on and including the date on which the applicable Redemption Notice is delivered to the
Company and ending on and including the date on which the applicable Redemption Notice is voided and (C)

  
 27 

 
the greater of (x) the Conversion Price Floor and (y) 85% of the quotient of (I) the sum of the five (5) lowest VWAPs of the Common Stock during the twenty
(20) consecutive Trading Day period ending and including the Trading Day immediately preceding the applicable Conversion Date divided by (II) five (5). The Holder’s delivery of a notice voiding a Redemption Notice and exercise of its
rights following such notice shall not affect the Company’s obligations to make any payments of Late Charges (as defined in Section 25(c)) which have accrued prior to the date of such notice with respect to the Conversion Amount subject to
such notice. 
 (b) Redemption by Other Holders. Upon the Company’s receipt of notice from any of the holders of
the Other Notes for redemption or repayment as a result of an event or occurrence substantially similar to the events or occurrences described in Section 4(b) or Section 5(b) (each, an “Other Redemption Notice”), the
Company shall immediately, but no later than one (1) Business Day of its receipt thereof, forward to the Holder by facsimile or electronic mail a copy of such notice. If the Company receives a Redemption Notice and one or more Other Redemption
Notices, during the seven (7) Business Day period beginning on and including the date which is three (3) Business Days prior to the Company’s receipt of the Holder’s applicable Redemption Notice or Other Redemption Notice and
ending on and including the date which is three (3) Business Days after the Company’s receipt of the Holder’s applicable Redemption Notice or Other Redemption Notice and the Company is unable to redeem all principal, interest and
other amounts designated in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day period, then the Company shall redeem a pro rata amount from each holder of the Notes (including the Holder) based
on the principal amount of the Notes submitted for redemption pursuant to such Redemption Notice and such Other Redemption Notices received by the Company during such seven (7) Business Day period. 

13.    VOTING RIGHTS. The Holder shall have no voting rights as the holder of this Note, except as required by law
(including, without limitation, the Delaware General Corporation Law) and as expressly provided in this Note. 

14.    COVENANTS. Until all of the Notes have been converted, redeemed or otherwise satisfied in accordance with
their terms: 
 (a) Rank. All payments due under this Note (a) shall rank pari passu with all Other Notes
and (b) shall be senior to all other Indebtedness of the Company and its Subsidiaries. 
 (b) Incurrence of
Indebtedness. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, incur or guarantee, assume or suffer to exist any Indebtedness (other than (i) the Indebtedness evidenced by this Note
and the Other Notes and (ii) other Permitted Indebtedness). 

  
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 (c) Existence of Liens. The Company shall not, and the Company shall cause
each of its Subsidiaries to not, directly or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by the
Company or any of its Subsidiaries (collectively, “Liens”) other than Permitted Liens. 
 (d) Restricted
Payments. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or
in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness (other than the Notes) whether by way of payment in respect of principal of (or premium, if any) or interest
on, such Indebtedness if at the time such payment is due or is otherwise made or, after giving effect to such payment, (i) an event constituting an Event of Default has occurred and is continuing or (ii) an event that with the passage of
time and without being cured would constitute an Event of Default has occurred and is continuing. 
 (e) Restriction on
Redemption and Cash Dividends. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, redeem, repurchase or declare or pay any cash dividend or distribution on any of its capital stock, except
for deemed repurchases of Common Stock that arise as a result of a customary cashless exercise provision of Options in effect as of the date of issuance of such Option. 

(f) Restriction on Transfer of Assets. The Company shall not, and the Company shall cause each of its Subsidiaries to
not, directly or indirectly, sell, lease, license, assign, transfer, spin-off, split-off, close, convey or otherwise dispose of any assets or rights of the Company or any Subsidiary owned or hereafter acquired whether in a single transaction or a
series of related transactions, other than (i) sales, leases, licenses, assignments, transfers, conveyances and other dispositions of such assets or rights by the Company and its Subsidiaries in the ordinary course of business consistent with
its past practice and (ii) sales of inventory and product in the ordinary course of business. 
 (g) Maturity of
Indebtedness. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, permit any Indebtedness of the Company or any of its Subsidiaries to mature or accelerate prior to the ninety-one
(91) calendar day anniversary of the Maturity Date, except for Permitted Indebtedness of the type set forth in clauses (i) through (iii) and (v) through (vii) of the definition thereof and, solely with respect to letters of credit (or
renewals or extensions thereof) of the Company and/or any of its Subsidiaries outstanding as of the Subscription Date (in an aggregate amount not to exceed such aggregate amount of such letter of credit of the Company and/or any of its Subsidiaries
outstanding as of the Subscription Date and with such economic terms no more burdensome to the Company and/or any of its Subsidiaries, as applicable, than the terms of such letters of credit in effect as of the Subscription Date), such Permitted
Indebtedness set forth in clauses (iv) and (viii) of the definition thereof. 
 (h) Change in Nature of
Business. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, engage in any material line of business substantially different from those lines of business conducted by or publicly
contemplated to be conducted by the Company and each of its Subsidiaries on the Subscription Date or any business substantially related or incidental thereto. The Company shall not, and the Company shall cause each of its Subsidiaries to not,
directly or indirectly, modify its or their corporate structure or purpose. 

  
 29 

 (i) Preservation of Existence, Etc. The Company shall maintain and
preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and in good standing in each jurisdiction in
which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary. 

(j) Maintenance of Properties, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to
maintain and preserve, all of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all
times with the provisions of all leases to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder. 

(k) Maintenance of Intellectual Property. The Company will, and will cause each of its Subsidiaries to, take all action
necessary or advisable to maintain all of the Intellectual Property Rights (as defined in the Securities Purchase Agreement) of the Company and/or any of its Subsidiaries that are necessary or material to the conduct of its business in full force
and effect. 
 (l) Maintenance of Insurance. The Company shall maintain, and cause each of its Subsidiaries to
maintain, insurance with responsible and reputable insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business interruption insurance) with respect to its properties (including all
real properties leased or owned by it) and business, in such amounts and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice
by companies in similar businesses similarly situated. 
 (m) Transactions with Affiliates. The Company shall not, nor
shall it permit any of its Subsidiaries to, enter into, renew, extend or be a party to, any transaction or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets of any
kind or the rendering of services of any kind) with any affiliate, except in the ordinary course of business in a manner and to an extent consistent with past practice and necessary or desirable for the prudent operation of its business, for fair
consideration and on terms no less favorable to it or its Subsidiaries than would be obtainable in a comparable arm’s length transaction with a Person that is not an affiliate thereof. 

(n) Restricted Issuances. The Company shall not, directly or indirectly, without the prior written consent of the
holders of a majority in aggregate principal amount of the Notes then outstanding, (i) issue any Notes (other than as contemplated by the Securities Purchase Agreement and the Notes) or (ii) issue any other securities that would cause a
breach or default under the Notes or the Warrants. 

  
 30 

 (o) New Subsidiaries. Simultaneously with the acquisition or formation of
each New Subsidiary that is a Domestic Subsidiary (as defined in the Securities Purchase Agreement), the Company shall cause such New Subsidiary to execute, and deliver to each holder of Notes, all Security Documents and Guaranties as requested by
the Collateral Agent or the Required Holders (as defined in the Securities Purchase Agreement), as applicable. The Company shall also deliver to the Collateral Agent an opinion of counsel to such New Subsidiary that is reasonably satisfactory to the
Collateral Agent and the Required Holders (as defined in the Securities Purchase Agreement) covering such legal matters with respect to such New Subsidiary becoming a guarantor of the Company’s obligations, executing and delivering the Security
Document and the Guaranties and any other matters that the Collateral Agent or the Required Holders (as defined in the Securities Purchase Agreement) may reasonably request. The Company shall deliver, or cause the applicable Subsidiary to deliver to
the Collateral Agent, each of the physical stock certificates (other than Excluded Collateral, if any) of each New Subsidiary, along with undated stock powers for each such certificates, executed in blank (or, if any such shares of capital stock are
uncertificated, confirmation and evidence reasonably satisfactory to the Collateral Agent and the Required Holders (as defined in the Securities Purchase Agreement) that the security interest in such uncertificated securities has been transferred to
and perfected by the Collateral Agent, in accordance with Sections 8-313, 8-321 and 9-115 of the Uniform Commercial Code or any other similar or local or foreign law that may be applicable). 

(p) Change in Collateral; Collateral Records. The Company shall (i) give the Collateral Agent not less than twenty
(20) days’ prior written notice of any change in the location of any Equipment, Fixtures, Goods or Inventory (each, as defined in the Security Documents), other than to locations set forth on Schedule III to the Security Agreement or to
such other locations, as designated in writing by the Collateral Agent to the Company, with respect to which the Collateral Agent has filed financing statements and otherwise fully perfected its Liens thereon, (ii) advise the Collateral Agent
promptly, in sufficient detail, of any material adverse change relating to the type, quantity or quality of the Collateral or the Lien granted thereon and (iii) execute and deliver, and cause each of its Subsidiaries to execute and deliver, to
the Collateral Agent for the benefit of the Holder and holders of the Other Notes from time to time, solely for the Collateral Agent’s convenience in maintaining a record of Collateral, such written statements and schedules as the Collateral
Agent or any Holder may reasonably request, designating, identifying or describing the Collateral; provided that prior to the occurrence of an Event of Default, the Collateral Agent shall only be entitled to one such request per calendar quarter.

 (q) Controlled Accounts; Controlled Account Release. 

(i) General. The Company shall establish and maintain cash management services of a type and on terms reasonably
satisfactory to Holder at each bank listed on Schedule 14(q)(i) attached hereto (each a “Controlled Account Bank”) and cause all cash and cash equivalents of the Company or any of its Domestic Subsidiaries (as defined in the
Security Agreement) to be held in Accounts (as defined in the Security Agreement) at one or more Controlled Account Banks in accordance therewith. Subject to the foregoing, the Company shall establish and maintain Controlled Account Agreements (as
defined in the Security Agreement) with the Collateral Agent and each Controlled Account Bank, in form and substance reasonably acceptable to the 

  
 31 

 
Collateral Agent and the Required Holders (as defined in the Securities Purchase Agreement) maintained at such bank on behalf of Company and/or its Domestic Subsidiaries (each such account a
“Controlled Account” and collectively, the “Controlled Accounts”), including, without limitation, the Master Restricted Accounts and the Operating Accounts (as defined below). Each such Controlled Account Agreement
shall provide, among other things, that (A) with respect to any Master Restricted Accounts, upon instruction of the Holder after the occurrence and during the continuance of any Event of Default (a “Master Restricted Account Activation
Instruction”), the Controlled Account Bank (x) subject to the terms and conditions of such Controlled Account Agreement, shall comply with any and all instructions of the Applicable Holder (as defined below) directing the disposition
of funds in the Master Restricted Account without further consent of the Company (which, for the avoidance of doubt, pursuant to Section 4(ff) of the Securities Purchase Agreement, shall only be provided by the Applicable Holder to the
Controlled Account Bank with the written consent of the Company unless an Event of Default has occurred and is continuing), and (y) shall not comply with any instructions, directions or orders of any form with respect to such Master Restricted
Account other than instructions, directions or orders originated solely by the Applicable Holder (and the Company’s signature or consent shall not be required for the applicable Controlled Account Bank to comply with any such instructions,
directors or orders) and (B) with respect to each Controlled Account (other than any Master Restricted Accounts) (collectively, the “Operating Accounts”) upon the instruction of Collateral Agent after the occurrence and during
the continuance of an Event of Default (an “Activation Instruction”), the Controlled Account Bank (x) subject to the terms and conditions of such Controlled Account Agreement, shall comply with any and all instructions of the
Collateral Agent directing the disposition of the funds in the Operating Accounts without further consent of the Company or any applicable Domestic Subsidiary and (y) shall not comply with any instructions, directions or orders of any form with
respect to the Operating Accounts other than instructions, directions or orders originated by Collateral Agent (and the Company’s signature or consent shall not be required for the applicable Controlled Account Bank to comply with any such
instructions, directors or orders). The Holder shall not issue a Master Restricted Account Activation Instruction with respect to the Master Restricted Account No. [ ] unless an Event of Default has occurred and is continuing at the time such Master
Restricted Account Activation Instruction is issued. The Collateral Agent shall not issue an Activation Instruction with respect to the Operating Accounts unless an Event of Default has occurred and is continuing at the time such Activation
Instruction is issued. 
 (ii) Additional Controlled Account Agreements. If at any time on or after the tenth (10th) Trading Day after the Closing Date, the average daily balance of any account of the Company or any of its Domestic Subsidiaries that is not subject to a Controlled Account Agreement, in form
and substance reasonably satisfactory to the Collateral Agent and the Required Holders (as defined in the Securities Purchase Agreement), in favor of the Collateral Agent (other than Excluded Accounts (as defined in the Security Agreement)) exceeds
$50,000 (the “Maximum Per Account Free Cash Amount”) during any calendar month (including the calendar month in which the 

  
 32 

 
Closing Date occurs), the Company shall either (x) within twenty-one (21) calendar days following the last day of such calendar month, deliver to the Collateral Agent a Controlled
Account Agreement, in form and substance reasonably satisfactory to the Collateral Agent, duly executed by the Company and the depositary bank in which such Account is maintained or (y) within two (2) Business Days following such date,
effect a transfer to a Controlled Account of a cash amount sufficient to reduce the amount of the Company’s or the applicable Domestic Subsidiary’s cash held in such Account to an amount not in excess of the Maximum Per Account Free Cash
Amount. 
 (iii) Maximum Cash Amounts; Prohibited Foreign Transfers. 

(1) Notwithstanding anything to the contrary contained in Section 14(q)(ii) above, and without limiting any of the
foregoing, if at any time on or after the date that is twenty-one (21) calendar days following the Closing Date, the total aggregate amount of the Company’s and any of its Domestic Subsidiaries’ cash that is not held in a Controlled
Account (other than Excluded Accounts) exceeds $50,000 (the “Maximum Free Cash Amount”), the Company shall within two (2) Business Days following such date, effect a transfer to a Controlled Account of a cash amount sufficient
to reduce the total aggregate amount of the Company’s and its Domestic Subsidiaries’, as applicable, cash that is not held in a Controlled Account to an amount not in excess of the Maximum Free Cash Amount. 

(2) Neither the Company nor any of its Domestic Subsidiaries shall, directly or indirectly, move, pay, wire, contribute or
otherwise transfer any cash or cash equivalents (each, a “Cash Transfer”) to any Foreign Subsidiary (as defined in the Security Agreement) if after giving effect to such Cash Transfer the total aggregate amount of cash and cash
equivalents as of the time of such Cash Transfer held by all direct and indirect Foreign Subsidiaries of the Company exceeds $250,000 (each, a “Prohibited Foreign Transfer”). 

(iv) Restricted Cash Covenant; Master Restricted Account. 

(1) General. The Company shall establish and maintain one or more bank accounts (collectively, including the Master
Restricted Account No. [ ], the “Master Restricted Accounts”) at a Controlled Account Bank, each of which Master Restricted Accounts shall be subject to a Controlled Account Agreement in form and substance reasonably acceptable to
the holder of the Notes the proceeds of which are deposited in such Master Restricted Account (the “Applicable Holder”). On the Issuance Date, the Company shall have directed the initial Buyers to deposit an aggregate of $29.2
million of the Purchase Price (as defined in the Securities Purchase Agreement), which includes the Restricted Principal hereunder, if any, into Master Restricted Accounts. The Company hereby agrees that the Restricted Principal hereunder, if any,
shall remain in the Master Restricted Account No. [            ], subject to release in accordance with the terms of this Section 14(q) and the related Controlled Account
Agreement. 

  
 33 

 (2) Controlled Account Release. Upon the occurrence of any Controlled
Account Release Event, the Company and the Applicable Holder shall, as soon as commercially practicable, but in no event later than two (2) Trading Days thereafter, cause the applicable Controlled Account Release Amount (as defined below) to
become unrestricted and released from the Master Restricted Account No. [ ] and deposited into an bank account specified in writing by the Company on or prior to such date (each a “Controlled Account Release”); provided, that if the
Company fails to select a bank account in a writing delivered to the Applicable Holder on or prior to such second Trading Day, the Company and the Applicable Holder shall effect such Controlled Account Release as soon as commercially practicable
after receipt of such bank account election from the Company. 
 (3) Grant of Security Interest. The Company hereby
grants and pledges to the Applicable Holder a continuing security interest in any cash or other assets, from time to time, in that certain deposit account called the Master Restricted Account No. [    ], including any and all
cash, proceeds, funds, credits, rights and other assets therein or arising therefrom, from time to time, and any additions, dividends, profits and interest in the foregoing and any replacements or substitutions therefore (collectively, the
“Master Account Collateral”) to secure prompt repayment of any and all amounts outstanding hereunder from time to time and to secure prompt performance by the Company of each of its covenants and duties under this Note, the
Securities Purchase Agreement (other than in respect of the Warrants) and the Security Documents. Such security interest constitutes a valid, first priority (subject to Permitted Liens) security interest in the presently existing Master Account
Collateral, and will constitute a valid, first priority (subject to Permitted Liens) security interest in later-acquired Master Account Collateral. Notwithstanding any filings undertaken related to the Applicable Holder’s rights under the
Delaware Uniform Commercial Code, the Holder’s Lien on the Master Account Collateral shall remain in effect for so long as any Restricted Principal remains outstanding. Notwithstanding the foregoing, upon any Controlled Account Release, but
solely with respect to such portion of the Restricted Principal hereunder subject to such Controlled Account Release, the Applicable Holder hereby agrees that it shall be deemed to automatically release any lien created by this
Section 14(q)(iv)(3) on such Controlled Account Release Amount. 
 (4) Cash Payment Obligations. All redemptions
or other cash payment obligation of the Company hereunder and/or pursuant to any other Transaction Document (as defined in the Securities Purchase Agreement) (each, a “Cash Payment Obligation”) shall be satisfied initially from the
Master Account Collateral in the Master Restricted Account No. [    ] until such Master Account Collateral is exhausted and, thereafter from the remaining Collateral (as defined in the Security Documents), including, without
limitation, in connection with any Change of Control, any Company Installment Redemption, any payment due at the Maturity Date or the occurrence and continuance of any Event of Default. In connection with any Cash Payment Obligation hereunder, at a
time when Master Account Collateral remains in the Master Restricted Account No. [    ], pursuant to Section 4(ff) of the Securities Purchase Agreement, neither the Company nor the Applicable Holder shall deliver an
instruction letter to the Controlled Account 

  
 34 

 
Bank to release Master Account Collateral from the Master Restricted Account No. [    ] unless the other party has consented in writing to the delivery of such instruction
letter, except that upon the Applicable Holder’s delivery of a Master Restricted Account Activation Instruction to such applicable Controlled Account Bank after the occurrence and during the continuance of an Event of Default, the Applicable
Holder shall have the sole right to deliver instructions, directions or orders of any form with respect to the Master Restricted Account No. [    ] to the applicable Controlled Account Bank (and the Company’s signature or
consent shall not be required for such Controlled Account Bank to comply with any such instructions, directors or orders). 

(5) Breach of Controlled Account Agreement. Notwithstanding anything herein to the contrary, if the Controlled Account
Bank breaches any covenant or other term or condition of any Controlled Account Agreement or otherwise fails to promptly comply with the instructions of the Applicable Holder in connection with the Master Account Collateral following the delivery of
a Master Restricted Account Activation Instruction, at the written request of the Applicable Holder (each, a “Replacement Request”), (x) the Company shall consent to the transfer of the Master Account Collateral to a new
financial institution selected by the Applicable Holder and reasonably satisfactory to the Company (each a “Replacement Controlled Account Bank”) and (y) a Controlled Account Agreement with respect to such Replacement
Controlled Account Bank and a new account for the Master Account Collateral shall, as promptly as commercially practicable, be duly executed by the Company and such Replacement Controlled Account Bank (collectively, the “Replacement
Conditions”); provided, that the Applicable Holder may, at its option, if the Applicable Holder has delivered a Master Restricted Account Activation Instruction to such Controlled Account Bank or the Replacement Conditions fail to be fully
satisfied within ten (10) Trading Days of the applicable Replacement Request, withdraw the Master Account Collateral from such Replacement Controlled Account Bank and hold such Master Account Collateral until such time as the Replacement
Conditions have been fully satisfied or, if an Event of Default has occurred and is continuing, such time as the Applicable Holder applies such Master Account Collateral against any outstanding payment obligations in accordance herewith.
Notwithstanding anything herein to the contrary, if the Company or any of its Subsidiaries receives any of the Master Account Collateral in breach of any Controlled Account Agreement (or an amount is wired to the Company from a Master Restricted
Account attributable to such holder of Notes without the proper written authorization of such holder of Notes), the Company shall promptly cause such amounts to be returned to such applicable Master Restricted Account. 

  
 35 

 (r) Independent Investigation. At the request of the Holder either
(x) at any time when an Event of Default has occurred and is continuing, (y) upon the occurrence of an event that with the passage of time or giving of notice would constitute an Event of Default or (z) at any time the Holder
reasonably believes an Event of Default may have occurred or be continuing, the Company shall hire an independent, reputable investment bank selected by the Company and approved by the Holder to investigate as to whether any breach of this Note has
occurred (the “Independent Investigator”). If the Independent Investigator determines that such breach of this Note has occurred, the Independent Investigator shall notify the Company of such breach and the Company shall deliver
written notice to each holder of a Note of such breach. In connection with such investigation, the Independent Investigator may, during normal business hours, inspect all contracts, books, records, personnel, offices and other facilities and
properties of the Company and its Subsidiaries and, to the extent available to the Company after the Company uses reasonable efforts to obtain them, the records of its legal advisors and accountants (including the accountants’ work papers) and
any books of account, records, reports and other papers not contractually required of the Company to be confidential or secret, or subject to attorney-client or other evidentiary privilege, and the Independent Investigator may make such copies and
inspections thereof as the Independent Investigator may reasonably request. The Company shall furnish the Independent Investigator with such financial and operating data and other information with respect to the business and properties of the
Company as the Independent Investigator may reasonably request. The Company shall permit the Independent Investigator to discuss the affairs, finances and accounts of the Company with, and to make proposals and furnish advice with respect thereto
to, the Company’s officers, directors, key employees and independent public accountants or any of them (and by this provision the Company authorizes said accountants to discuss with such Independent Investigator the finances and affairs of the
Company and any Subsidiaries), all at such reasonable times, upon reasonable notice, and as often as may be reasonably requested. 

15.    SECURITY. This Note and the Other Notes are secured to the extent and in the manner set forth in the
Transaction Documents (including, without limitation, the Security Agreement, the other Security Documents and the Guaranties). 

16.    DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 7, if the Company shall
declare or make any dividend or other distributions of its assets (or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation, any distribution of cash,
stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (the “Distributions”), then the Holder will be entitled to
such Distributions as if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility of this Note and assuming for such
purpose that the Note was converted at the Conversion Price as of the applicable record date) immediately prior to the date on which a record is taken for such Distribution or, if no such record is taken, the date as of which the record holders of
Common Stock are to be determined for such Distributions (provided, however, that to the extent that the Holder’s right to participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, then the Holder shall not be entitled to participate in such Distribution to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of 

  
 36 

 
such shares of Common Stock as a result of such Distribution (and beneficial ownership) to the extent of any such excess) and the portion of such Distribution shall be held in abeyance for the
benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution
(and any Distributions declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation). 

17.    AMENDING THE TERMS OF THIS NOTE. The prior written consent of the holders of Notes representing at least
fifty-five (55%) of the aggregate principal amount of the Notes then outstanding shall be required for any change, waiver or amendment to this Note; provided, that such holders must include Hudson Bay Master Fund Ltd. so long as it holds at
least 20% of the aggregate principal amount of Notes initially issued to Hudson Bay Master Fund Ltd. and no change, waiver or amendment shall be effective to the extent it could reasonably be expected to adversely affect the Collateral Agent (in its
capacity as Collateral Agent) without the prior written consent of the Collateral Agent. Any change, waiver or amendment so approved shall be binding upon all existing and future holders of this Note and any Other Notes; provided, however, that no
such change, waiver or amendment, as applied to any of the Notes held by any particular holder of Notes, shall, without the written consent of that particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid
Interest, or extend the Maturity Date, of the Notes, (ii) disproportionally and adversely affect any rights under the Notes of any holder of Notes (except that a holder of Notes that does not have any of its Notes secured by cash amounts in a
Master Restricted Account will not be deemed to be disproportionally and adversely effected by any change, waiver or amendment to any other holder’s Notes or consideration granted to any other holder of Notes in connection with any change,
waiver or amendment related to any provision relating to any Master Restricted Account); or (iii) modify any of the provisions of, or impair the right of any holder of Notes under this Section 17. 

18.    TRANSFER. This Note and any shares of Common Stock issued upon conversion of this Note may be offered, sold,
assigned or transferred by the Holder without the consent of the Company, subject only to the provisions of Section 2(g) of the Securities Purchase Agreement. 

19.    REISSUANCE OF THIS NOTE. 

(a) Transfer. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the
Company will forthwith issue and deliver upon the order of the Holder a new Note (in accordance with Section 19(d)), registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less than
the entire outstanding Principal is being transferred, a new Note (in accordance with Section 19(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this Note,
acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following conversion or redemption of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of
this Note. 

  
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 (b) Lost, Stolen or Mutilated Note. Upon receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss,
theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder
a new Note (in accordance with Section 19(d)) representing the outstanding Principal. 
 (c) Note Exchangeable for
Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Note or Notes (in accordance with Section 19(d) and in principal amounts of at least $1,000)
representing in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder at the time of such surrender. 

(d) Issuance of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such
new Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (or in the case of a new Note being issued pursuant to Section 19(a) or
Section 19(c), the Principal designated by the Holder which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding under this Note immediately
prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, and
(v) shall represent accrued and unpaid Interest and Late Charges (as defined in Section 25(c)) on the Principal and Interest of this Note, from the Issuance Date. 

20.    REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in
this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing
herein shall limit the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization concerning this
instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as
expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law
for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to specific performance and/or temporary,
preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without 

  
 38 

 
posting a bond or other security. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s
compliance with the terms and conditions of this Note (including, without limitation, compliance with Section 7). 

21.    PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an
attorney for collection or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note or (b) there occurs any
bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement
or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements. The Company expressly acknowledges and agrees that no amounts due under this
Note shall be affected, or limited, by the fact that the purchase price paid for this Note was less than the original Principal amount hereof. 

22.    CONSTRUCTION; HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the initial
Holder and shall not be construed against any such Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of, this Note. Unless the context clearly indicates
otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall be construed
broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Note instead of just the provision in which they are found.
Unless expressly indicated otherwise, all section references are to sections of this Note. Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents, shall have the meanings ascribed to such terms on
the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder. 

23.    FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. No waiver
shall be effective unless it is in writing and signed by an authorized representative of the waiving party. Notwithstanding the foregoing, nothing contained in this Section 23 shall permit any waiver of any provision of Section 3(d). 

24.    DISPUTE RESOLUTION. 

(a) Submission to Dispute Resolution. 

(i) In the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, an Installment
Conversion Price, a Pre-Installment Conversion Price, a VWAP or a fair market value or the arithmetic calculation of 

  
 39 

 
a Conversion Rate, the Restricted Principal, or the applicable Redemption Price (as the case may be) (including, without limitation, a dispute relating to the determination of any of the
foregoing), the Company or the Holder (as the case may be) shall submit the dispute to the other party via facsimile or electronic mail (A) if by the Company, within five (5) Business Days after the occurrence of the circumstances giving
rise to such dispute or (B) if by the Holder, within five (5) Business Days after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly resolve such dispute relating to
such Closing Bid Price, such Closing Sale Price, such Conversion Price, such Installment Conversion Price, such Pre-Installment Conversion Price, such VWAP or such fair market value, or the arithmetic calculation of such Conversion Rate, the
Restricted Principal or such applicable Redemption Price (as the case may be), at any time after the second (2nd) Business Day following such initial notice by the Company or the Holder (as
the case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder and the Company may jointly select an independent, reputable investment bank to resolve such dispute. 

(ii) The Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so
delivered in accordance with the first sentence of this Section 24 and (B) written documentation supporting its position with respect to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following the date on which the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to in the immediately
preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”) (it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required
Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation or
other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission
Deadline). Unless otherwise agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled to deliver or submit any written documentation or other support
to such investment bank in connection with such dispute (other than the Required Dispute Documentation). 
 (iii) The Company
and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The
fees and expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error. 

  
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 (b) Miscellaneous. The Company and the Holder each expressly acknowledges
and agrees that (i) this Section 24 constitutes an agreement to arbitrate between the Company and the Holder (and constitutes an arbitration agreement) under § 7501, et seq. of the New York Civil Practice Law and Rules
(“CPLR”) and that the Holder is authorized to apply for an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 24, (ii) a dispute relating to a Conversion Price
includes, without limitation, disputes as to whether an agreement, instrument, security or the like constitutes an Option or Convertible Security, (iii) the terms of this Note and each other applicable Transaction Document shall serve as the
basis for the selected investment bank’s resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines
are required to be made by such investment bank in connection with its resolution of such dispute and in resolving such dispute such investment bank shall apply such findings, determinations and the like to the terms of this Note and any other
applicable Transaction Documents, (iv) the Company and the Holder shall each have the right to submit any dispute described in this Section 24 to any state or federal court sitting in The City of New York, Borough of Manhattan in lieu of
utilizing the procedures set forth in this Section 24 and (v) nothing in this Section 24 shall limit the Holder from obtaining any injunctive relief or other equitable remedies (including, without limitation, with respect to any
matters described in this Section 24). 
 25.    NOTICES; CURRENCY; PAYMENTS. 

(a) Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice
shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description of
such action and the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) promptly upon any adjustment of the Conversion Price, setting forth in reasonable detail, and
certifying, the calculation of such adjustment and (ii) at least ten (10) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock,
(B) with respect to any grant, issuances, or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining rights to vote with
respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder. 

(b) Currency. All dollar amounts referred to in this Note are in United States Dollars (“U.S.
Dollars”), and all amounts owing under this Note shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the
date of calculation. “Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Note, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant
date of calculation (it being understood and agreed that where an amount is calculated with reference to, or over, a period of time, the date of calculation shall be the final date of such period of time). 

  
 41 

 (c) Payments. Whenever any payment of cash is to be made by the Company to
any Person pursuant to this Note, unless otherwise expressly set forth herein, such payment shall be made in lawful money of the United States of America by a certified check drawn on the account of the Company and sent via overnight courier service
to such Person at such address as previously provided to the Company in writing (which address, in the case of each of the Buyers, shall initially be as set forth on the Schedule of Buyers attached to the Securities Purchase Agreement), provided
that the Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such request and the Holder’s wire transfer instructions. Whenever any amount
expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day. Any amount of Principal or other amounts due under the Transaction
Documents which is not paid when due shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount at the rate of fifteen percent (15%) per annum from the date such amount was due until
the same is paid in full (“Late Charge”). 
 26.    CANCELLATION. After all Principal, accrued
Interest, Late Charges and other amounts at any time owed on this Note have been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued. 

27.    WAIVER OF NOTICE. To the extent permitted by law, the Company hereby irrevocably waives demand, notice,
presentment, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement. 

28.    GOVERNING LAW. This Note shall be construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Except as otherwise required by Section 24 above, each of the Company and the Holder hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein (i) shall be deemed or operate to preclude the Company or the Holder from 

  
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bringing suit or taking other legal action against the Holder or the Company, respectively, in any other jurisdiction to collect on such party’s obligations hereunder, to realize on any
collateral or any other security for such obligations, or to enforce a judgment or other court or (ii) shall limit, or shall be deemed or construed to limit, any provision of Section 24. THE COMPANY AND THE HOLDER EACH HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. 

29.    JUDGMENT CURRENCY. 

(a) If for the purpose of obtaining or enforcing judgment against the Company in any court in any jurisdiction it becomes
necessary to convert into any other currency (such other currency being hereinafter in this Section 29 referred to as the “Judgment Currency”) an amount due in U.S. Dollars under this Note, the conversion shall be made at the
Exchange Rate prevailing on the Trading Day immediately preceding: 
 (i) the date actual payment of the amount due, in the
case of any proceeding in the courts of New York or in the courts of any other jurisdiction that will give effect to such conversion being made on such date: or 

(ii) the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the
date as of which such conversion is made pursuant to this Section 29(a)(ii) being hereinafter referred to as the “Judgment Conversion Date”). 

(b) If in the case of any proceeding in the court of any jurisdiction referred to in Section 29(a)(ii) above, there is a
change in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment
Currency, when converted at the Exchange Rate prevailing on the date of payment, will produce the amount of U.S. Dollars which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the
Exchange Rate prevailing on the Judgment Conversion Date. 
 (c) Any amount due from the Company under this provision shall
be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Note. 

30.    SEVERABILITY. If any provision of this Note is prohibited by law or otherwise determined to be invalid or
unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or
unenforceability of such provision shall not affect the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material change, the original intentions of

  
 43 

 
the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or
reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable
provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). 

31.    MAXIMUM PAYMENTS. Without limiting Section 9(d) of the Securities Purchase Agreement, nothing contained
herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the
maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the Holder and thus refunded to the Company. 

32.    CERTAIN DEFINITIONS. For purposes of this Note, the following terms shall have the following meanings: 

(a) “1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 

(b) “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder. 
 (c) “Adjustment Right” means any right granted with respect to any securities issued in
connection with, or with respect to, any issuance or sale (or deemed issuance or sale in accordance with Section 7) of shares of Common Stock (other than rights of the type described in Section 6(a) hereof) that could result in a decrease
in the net consideration received by the Company in connection with, or with respect to, such securities (including, without limitation, any cash settlement rights, cash adjustment or other similar rights). 

(d) “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is
controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control” of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary
voting power for the election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise. 

(e) “Attribution Parties” means, collectively, the following Persons and entities: (i) any investment
vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by the Holder’s investment manager or any of its Affiliates or principals,
(ii) any direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the 

  
 44 

 
Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated with the Holder’s and the other
Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage. 

(f) “Bloomberg” means Bloomberg, L.P. 

(g) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to remain closed. 
 (h) “Change of Control” means any
Fundamental Transaction other than (i) any merger of the Company or any of its, direct or indirect, wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization or reclassification of the
shares of Common Stock in which holders of a majority of the Company’s voting power immediately prior to such reorganization, recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to hold
publicly traded securities and, directly or indirectly, are, in all material respects, the holders of a majority of the voting power of the surviving entity (or entities with the authority or voting power to elect the members of the board of
directors (or their equivalent if other than a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification, or (iii) pursuant to a migratory merger effected solely for the purpose of changing the
jurisdiction of incorporation of the Company or any of its Subsidiaries. 
 (i) “Change of Control Redemption
Premium” means 118%. 
 (j) “Closing Bid Price” and “Closing Sale Price” means,
for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and
does not designate the closing bid price or the closing trade price (as the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal
Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed
or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by
Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the
“pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price (as the case may be) of such security on such date 

  
 45 

 
shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such
dispute shall be resolved in accordance with the procedures in Section 24. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during
such period. 
 (k) “Closing Date” shall have the meaning set forth in the Securities Purchase Agreement,
which date is the date the Company initially issued Notes pursuant to the terms of the Securities Purchase Agreement. 
 (l)
“Collateral Agent” shall have the meaning set forth in the Securities Purchase Agreement. 
 (m)
“Common Stock” means (i) the Company’s shares of common stock, $0.01 par value per share, and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a
reclassification of such common stock. 
 (n) “Controlled Account Release Amount” means, with respect to any
given Controlled Account Release Event, such amount of Restricted Principal as specified in the applicable clause of the definition of “Controlled Account Release Event”, which becomes unrestricted and is required to be released from the
Master Restricted Account No. [            ] as a result of such Controlled Account Release Event in accordance herewith. 

(o) “Controlled Account Release Event” means, as applicable, (i) with respect to any Restricted Principal
designated to be converted in a Conversion Notice, the Company’s receipt of both (A) such Conversion Notice hereunder executed by the Holder in which all, or any part, of the Principal to be converted includes any Restricted Principal and
(B) written confirmation by the Holder that the shares of Common Stock issued pursuant to such Conversion Notice have been properly delivered in accordance with Section 3(c) (in each case, as adjusted, if applicable, to reflect the
withdrawal of any Conversion Notice, in whole or in part, by the Holder, whether pursuant to Section 3(c)(ii) or otherwise), (ii) the Company’s receipt of a notice by the Holder electing to effect a release of cash with respect to any
Restricted Principal to the Company, (iii) on the 20th Trading Day after the later of (A) the Stockholder Approval Date (as defined in the Securities Purchase Agreement) and
(B) [December __, 2016]2 (the “First Release Date”), the Holder Pro Rata Amount of $3 million, (iv) on the 30th
Trading Day after the First Release Date (the “Second Release Date”), the Holder Pro Rata Amount of the Quarterly Release Amount, (v) on each subsequent three month anniversary of the Second Release Date (each, a
“Quarterly Release Date”, and together with the Second Release Date, each a “Subsequent Release Date”), the Holder Pro Rata Amount of the Quarterly Release Amount, and (vi) on the later of (A) any
Acceleration Date and (B) the time of the Company’s receipt of written confirmation by the Holder that the shares of Common Stock issued pursuant to such Acceleration have been properly delivered in accordance with Sections 8(e) and 3(c),
an amount equal to the Restricted Principal to be converted in such Acceleration, if any; provided, in the case of clauses (iii), (iv) and (v) above, as of such date of determination, no Equity Conditions Failure exists. 

 

	2 	Insert six month anniversary of Issuance Date 

  
 46 

 (p) “Conversion Price Floor” means $0.05. 

(q) “Conversion Share Ratio” means as to any applicable Installment Date, the quotient of (i) the number
of Pre-Installment Conversion Shares delivered in connection with such Installment Date divided by (ii) the number of Post-Installment Conversion Shares applicable to such Installment Date. 

(r) “Convertible Securities” means any stock or other security (other than Options) that is at any time and
under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock. 

(s) “Current Subsidiary” means any Person in which the Company on the Subscription Date, directly or
indirectly, (i) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the
foregoing, collectively, “Current Subsidiaries”. 
 (t) “Eligible Market” means The New
York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market or the Principal Market. 
 (u)
“Equity Conditions” means, with respect to an given date of determination: (i) on each day during the period beginning thirty calendar days prior to such applicable date of determination and ending on and including such
applicable date of determination (or, with respect to the initial Installment Date, during the period beginning on the Initial Installment Notice Due Date and ending on and including the initial Installment Date) all Underlying Securities (as
defined in the Securities Purchase Agreement) shall be eligible for sale pursuant to Rule 144 (as defined in the Securities Purchase Agreement) without the need for registration under any applicable federal or state securities laws (in each case,
disregarding any limitation on conversion of the Notes, other issuance of securities with respect to the Notes and exercise of the Warrants) and no Current Information Failure (as defined in the Securities Purchase Agreement) exists or is
continuing; (ii) on each day during the period beginning thirty calendar days prior to the applicable date of determination and ending on and including the applicable date of determination (or, with respect to the initial Installment Date,
during the period beginning on the Initial Installment Notice Due Date and ending on and including the initial Installment Date) (the “Equity Conditions Measuring Period”), the Common Stock (including all Underlying Securities) is
listed or designated for quotation (as applicable) on an Eligible Market and shall not have been suspended from trading on an Eligible Market (other than suspensions of not more than two (2) days and occurring prior to the applicable date of
determination due to business announcements by the Company) nor 

  
 47 

 
shall delisting or suspension by an Eligible Market have been threatened (with a reasonable prospect of delisting occurring after giving effect to all applicable notice, appeal, compliance and
hearing periods) or reasonably likely to occur or pending as evidenced by (A) a writing by such Eligible Market or (B) the Company falling below the minimum listing maintenance requirements of the Eligible Market on which the Common Stock
is then listed or designated for quotation (as applicable), provided that, for the avoidance of doubt, no such delisting or suspension shall be deemed to have been threatened at any time when the Company uses its best efforts to satisfy such minimum
listing maintenance requirements and such delisting or suspension is pending any appeal, compliance or hearing period; (iii) during the Equity Conditions Measuring Period, the Company shall have delivered all shares of Common Stock issuable
upon conversion of this Note on a timely basis as set forth in Section 3 hereof and all other shares of capital stock required to be delivered by the Company on a timely basis as set forth in the other Transaction Documents; (iv) any
shares of Common Stock to be issued in connection with the event requiring determination (or issuable upon conversion of the Conversion Amount being redeemed in the event requiring this determination) may be issued in full without violating
Section 3(d) hereof; (v) any shares of Common Stock to be issued in connection with the event requiring determination (or issuable upon conversion of the Conversion Amount being redeemed in the event requiring this determination (without
regards to any limitations on conversion set forth herein)) may be issued in full without violating the rules or regulations of the Eligible Market on which the Common Stock is then listed or designated for quotation (as applicable); (vi) on
each day during the Equity Conditions Measuring Period, no public announcement of a pending, proposed or intended Fundamental Transaction shall have occurred which has not been abandoned, terminated or consummated; (vii) the Company shall have
no knowledge of any fact that would reasonably be expected to cause any Underlying Securities to not be eligible for sale pursuant to Rule 144 without the need for registration under any applicable federal or state securities laws (in each case,
disregarding any limitation on conversion of the Notes, other issuance of securities with respect to the Notes and exercise of the Warrants) and no Current Information Failure exists or is continuing; (viii) the Holder shall not be in (and no
other holder of Notes shall be in) possession of any material, non-public information provided to any of them by the Company, any of its Subsidiaries or any of their respective affiliates, employees, officers, representatives, agents or the like;
(ix) on each day during the Equity Conditions Measuring Period, the Company otherwise shall have been in compliance with each, and shall not have breached any representation or warranty in any material respect (other than representations or
warranties subject to material adverse effect or materiality, which may not be breached in any respect) or any covenant or other term or condition of any Transaction Document, including, without limitation, the Company shall not have failed to
timely make any payment pursuant to any Transaction Document; (x) as of the applicable date of determination, there shall not have occurred any Price Failure; (xi) there shall not have occurred any Volume Failure for (A) at least
fifteen (15) Trading Days during the Volume Failure Measuring Period and (B) the last three (3) Trading Days during the Volume Failure Measuring Period (such three (3) Trading Day period, the “Equity Conditions Ending
Period”); (xii) on the applicable date of determination (A) no Authorized Share Failure shall exist or be 

  
 48 

 
continuing and all shares of Common Stock to be issued in connection with the event requiring this determination (or issuable upon conversion of the Conversion Amount being redeemed or amount of
Restricted Principal being released, as applicable, in the event requiring this determination at the Conversion Price then in effect (without regard to any limitations on conversion set forth herein)) are available under the certificate of
incorporation of the Company and reserved by the Company to be issued pursuant to the Notes and (B) all shares of Common Stock to be issued in connection with the event requiring this determination (or issuable upon conversion of the Conversion
Amount being redeemed in the event requiring this determination (without regards to any limitations on conversion set forth herein)) may be issued in full without resulting in an Authorized Share Failure; (xiii) on each day during the Equity
Conditions Measuring Period, there shall not have occurred and there shall not exist an Event of Default or an event that with the passage of time or giving of notice would constitute an Event of Default; and (xiv) the shares of Common Stock
issuable pursuant to the event requiring the satisfaction of the Equity Conditions are duly authorized and listed and eligible for trading without restriction on an Eligible Market. 

(v) “Equity Conditions Failure” means that (i) on any day during the period commencing twenty
(20) Trading Days prior to the applicable Company Optional Redemption Notice Date through the applicable Company Optional Redemption Date or (ii) on any day during the period commencing twenty (20) Trading Days prior to the applicable
Installment Notice Date through the later of the applicable Installment Date and the date on which the applicable shares of Common Stock are actually delivered to the Holder, or (iii) any day during the period commencing twenty
(20) Trading Days prior to the date of the applicable Controlled Account Release Event through the date of the applicable Controlled Account Release Event, the Equity Conditions have not been satisfied (or waived in writing by the Holder). 

(w) “Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through
subsidiaries, Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or
otherwise dispose of all or substantially all of the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one
or more Subject Entities to make, or allow the Company to be subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that is accepted by the holders of at least either
(x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with any Subject Entities
making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement or
other business 

  
 49 

 
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities,
individually or in the aggregate, acquire, either (x) at least 50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all the Subject
Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject Entities
become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company shall,
directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner” (as
defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business
combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary voting power
represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Note calculated as if
any shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock or other equity securities of the Company
sufficient to allow such Subject Entities to effect a statutory short form merger or other transaction requiring other shareholders of the Company to surrender their shares of Common Stock without approval of the shareholders of the Company or
(C) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner to circumvent, or that
circumvents, the intent of this definition in which case this definition shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition or any
portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction. 

(x) “GAAP” means United States generally accepted accounting principles, consistently applied. 

(y) “Group” means a “group” as that term is used in Section 13(d) of the 1934 Act and as
defined in Rule 13d-5 thereunder. 
 (z) “Guaranties” shall have the meaning as set forth in the Securities
Purchase Agreement. 

  
 50 

 (aa) “Holder Pro Rata Amount” means a fraction (i) the
numerator of which is the original Principal amount of this Note on the Closing Date and (ii) the denominator of which is the aggregate original principal amount of all Notes issued to the initial purchasers pursuant to the Securities Purchase
Agreement on the Closing Date. 
 (bb) “Indebtedness” shall have the meaning ascribed to such term in the
Securities Purchase Agreement. 
 (cc) “Initial Installment Notice Due Date” means
[December     , 2016]3. 
 (dd)
“Installment Amount” means the sum of (A) (i) with respect to any Installment Date other than the Maturity Date, the lesser of (x) the quotient of (I) the Principal amount outstanding under this Note as of the
initial Installment Date, divided by (II) the number of Installment Dates occurring hereunder (as determined as of the initial Installment Date assuming no Deferrals, Accelerations, redemptions or conversions hereunder prior to the Maturity Date)
and (y) the Principal amount then outstanding under this Note as of such Installment Date, and (ii) with respect to the Installment Date that is the Maturity Date, the Principal amount then outstanding under this Note as of such
Installment Date (in each case, as any such Installment Amount may be reduced pursuant to the terms of this Note, whether upon conversion, redemption or Deferral), (B) any Deferral Amount deferred pursuant to Section 8(d) and included in
such Installment Amount in accordance therewith, (C) any Acceleration Amount accelerated pursuant to Section 8(e) and included in such Installment Amount in accordance therewith and (D) in each case of clauses (A) through
(C) above, the sum of any accrued and unpaid Interest as of such Installment Date under this Note, if any, and accrued and unpaid Late Charges, if any, under this Note as of such Installment Date. In the event the Holder shall sell or otherwise
transfer any portion of this Note, the transferee shall be allocated a pro rata portion of the unpaid Installment Amount hereunder. 

(ee) “Installment Conversion Price” means, with respect to a particular date of determination, the lowest of
(i) the Conversion Price then in effect, and (ii) the greater of (x) the Conversion Price Floor and (y) the Market Price as of the applicable Installment Date. 

(ff) “Installment Date” means
(i) [            ]4, (ii) thereafter, each twentieth (20th) Trading
Day immediately following the previous Installment Date until the Maturity Date, and (iv) the Maturity Date. 
 (gg)
“Interest Date” means, with respect to any given calendar month, (x) if prior to the initial Installment Date or after the Maturity Date, the first Trading Day of such calendar month or (y) if on or after the initial
Installment Date, but on or prior to the Maturity Date, such Installment Date, if any, in such calendar month. 
  

	3 	Insert six month anniversary of Closing Date 

	4 	Insert 20th Trading Day after the Initial Installment Notice Due Date. 

  
 51 

 (hh) “Market Price” means, for any given date, 85% of the lower
of (i) the quotient of (x) the sum of the three (3) lowest VWAPs of the Common Stock during the twenty (20) consecutive Trading Day period ending and including the Trading Day immediately preceding such given date divided by
(y) three (3) and (ii) the VWAP of the Common Stock as of the Trading Day immediately preceding such given date. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination,
reclassification or similar transaction during such the applicable measurement periods. 
 (ii) “Master Restricted
Account No. [    ]” means, solely with respect to the Holder, account number [            ] at
[            ], or such other account as may be directed by the Holder, from time to time, subject to a Controlled Account Agreement in favor of the Holder in a form acceptable to the
Holder. 
 (jj) “Material Adverse Effect” means any material adverse effect on (i) the business,
properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of
the other Transaction Documents or any other agreements or instruments to be entered into in connection herewith or therewith or (iii) the authority or ability of the Company or any of its Subsidiaries to perform any of their respective
obligations under any of the Transaction Documents; provided, that a Material Adverse Effect shall not be deemed to include effects, events, developments, changes or occurrences arising out of or attributable to: (A) changes and circumstances
generally affecting the economy, financial, credit or securities markets or political or regulatory conditions (including any change in interest rates or currency exchange rates); (B) changes in the pharmaceutical and drug development industry
generally; (C) any change in applicable law or the interpretation or enforcement thereof or any change in accounting principles or changes in the enforcement thereof, changes to GAAP or changes resulting from the application of a different set
of accounting principles; (D) acts of war (declared or undeclared), armed hostility, civil unrest, terrorism, sabotage, calamity, natural disaster, pandemic, act of God or a similar event, occurrence or circumstance; except, in each case, to
the extent that the Company and its Subsidiaries, taken as a whole, are disproportionately affected thereby as compared with other participants in the pharmaceutical or drug development industry generally (in which case, the incremental
disproportionate impact shall be taken into account in the determination of Material Adverse Effect hereunder). 
 (kk)
“Maturity Date” shall mean December 29, 2017; provided, however, the Maturity Date may be extended at the option of the Holder (i) in the event that, and for so long as, an Event of Default shall have occurred and be
continuing or any event shall have occurred and be continuing that with the passage of time and the failure to cure would result in an Event of Default or (ii) through the date that is twenty (20) Business Days after the consummation of a
Fundamental Transaction in the event that a Fundamental Transaction is publicly announced or a Change of Control Notice is delivered prior to the Maturity Date, provided further that if a Holder elects to convert some or all of this Note pursuant to
Section 3 hereof, and the Conversion Amount would be limited pursuant to Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as such provision shall not limit the conversion of this Note. 

  
 52 

 (ll) “New Subsidiary” means, as of any date of determination,
any Person in which the Company after the Subscription Date, directly or indirectly, (i) owns or acquires any of the outstanding capital stock or holds any equity or similar interest of such Person or (ii) controls or operates all or any
part of the business, operations or administration of such Person, and all of the foregoing, collectively, “New Subsidiaries”. 

(mm) “Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities. 
 (nn) “Parent Entity” of a Person means an entity that, directly or indirectly,
controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market
capitalization as of the date of consummation of the Fundamental Transaction. 
 (oo) “Permitted
Indebtedness” means (i) Indebtedness evidenced by this Note and the Other Notes, (ii) Indebtedness set forth on Schedule 3(s) to the Securities Purchase Agreement, as in effect as of the Subscription Date, (iii) Indebtedness
secured by Permitted Liens or unsecured but as described in clauses (iv), (v) and (vii) of the definition of Permitted Liens, (iv) unsecured contingent obligations arising by endorsement of instruments for deposit or collection in the
ordinary course of business, (v) unsecured Indebtedness in respect of netting services, overdraft protections and otherwise in connection with deposit accounts, so long as such Indebtedness is incurred in the ordinary course of business,
(vi) refinancings of Indebtedness described in clauses (ii) and (iv) above so long as the principal amount thereof is not increased, the weighted average life to maturity is not shortened, no additional collateral therefor shall be
granted and, if the Indebtedness being refinanced is subordinated to the Obligations, the replacement Indebtedness shall be subordinated on the same terms as such Indebtedness being so refinanced, (vii) unsecured contingent obligations arising
with respect to indemnities to title companies provided in the ordinary course of business, (viii) the Permitted Senior Indebtedness, (ix) unsecured intercompany indebtedness among the Company and its Subsidiaries (excluding any Prohibited
Foreign Transfers) and (x) up to $250,000 of aggregate principal amount of Indebtedness incurred by the Company that is made expressly subordinate in right of payment to the Indebtedness evidenced by this Note, as reflected in a written
agreement acceptable to the Required Holders (the “Permitted Subordinated Indebtedness”) and which Permitted Subordinated Indebtedness does not provide at any time for (1) the payment, prepayment, repayment, repurchase or
defeasance, directly or indirectly, of any principal or premium, if any, thereon until at least ninety-one (91) days after the Maturity Date and (2) total interest and fees at a rate in excess of eight percent (8%) per annum;
provided, that no Event of Default has occurred and is continuing (or with the passage of time is reasonably expected to occur) at the time of issuance of such Permitted Subordinated Indebtedness. 

  
 53 

 (pp) “Permitted Liens” means (i) any Lien for taxes not yet
due or delinquent or being contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course of business by operation of law with
respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in the ordinary course of business with respect to a
liability that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings, (iv) Liens (A) upon or in any equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase
price of such equipment or Indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B) existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the
property so acquired and improvements thereon, and the proceeds of such equipment, in either case, with respect to Indebtedness in an aggregate amount not to exceed $50,000, (v) Liens incurred in connection with the extension, renewal or
refinancing of the Indebtedness secured by Liens of the type described in clause (iv) above and (ix) below, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the
principal amount of the Indebtedness being extended, renewed or refinanced does not increase, (vi) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom duties in connection with the
importation of goods, (vii) deposits or pledges to secure bids, tenders, contracts (other than contracts for the payment of money), leases, statutory obligations, indemnity, performance, surety and appeal bonds, purchase agreements and other
obligations of like nature arising in the ordinary course of business, (viii) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 4(a)(x), (ix) Liens in existence on
the Subscription Date and set forth on Schedule 3(s) to the Securities Purchase Agreement, (x) any interest, Lien or title of a licensor, sublicensor, lessor or sublessor under any license or lease agreement in the property being leased or
licensed as permitted hereunder, (xi) Liens on the Permitted Senior Indebtedness Collateral with respect to the Permitted Senior Indebtedness, (xii) rights of setoff or banker’s liens upon deposits of cash in favor of banks or other
depository institutions, but not securing any Indebtedness for money borrower, (xiii) Liens created under the Transaction Documents, and (xiv) zoning laws and other land use restrictions that do not impair the present or anticipated use of
the property subject thereto. 
 (qq) “Permitted Senior Indebtedness” means the Existing Silicon Valley Bank
L/Cs (as defined in the Security Agreement) and the Existing Silicon Valley Bank Services Indebtedness, in amounts not to exceed $1,061,960.08, in the aggregate. 

(rr) “Permitted Senior Indebtedness Collateral” means the SV Bank Cash Collateral Accounts (as defined in the
Security Agreement), with cash and cash equivalents contained therein not in excess of $1,061,960.08 in the aggregate (or such lesser amount as required pursuant to the terms of such Permitted Senior Indebtedness). 

(ss) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization, any other entity or a government or any department or agency thereof. 

  
 54 

 (tt) “Post-Installment Conversion Shares” means that number of
shares of Common Stock that would be required to be delivered pursuant to Section 8 on an applicable Installment Date without taking into account the delivery of any Pre-Installment Conversion Shares. 

(uu) “Pre-Installment Conversion Price” means, with respect to a particular date of determination, the lowest
of (i) the Conversion Price then in effect, and (ii) the greater of (x) the Conversion Price Floor and (y) the Market Price as of the date of the delivery or deemed delivery of the applicable Installment Notice. 

(vv) “Price Failure” means, with respect to a particular date of determination, the VWAP of the Common Stock
on any Trading Day during any Trading Day during the twenty (20) Trading Day period ending on the Trading Day immediately preceding such date of determination fails to exceed (x) if prior to the first reverse stock split after the Issuance
Date, $0.10 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions occurring after the Subscription Date) or (y) if on or after the first reverse stock split occurring after the
Issuance Date, $0.50 (which includes the adjustment for the first reverse stock split after the Issuance, but remains subject to adjustment for any other stock splits, stock dividends, stock combinations, recapitalizations or other similar
transactions occurring after the Subscription Date). All such determinations to be appropriately adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during any such measuring period.

 (ww) “Principal Market” means the Nasdaq Capital Market. 

(xx) “Redemption Notices” means, collectively, the Event of Default Redemption Notices, the Installment
Notices with respect to any Installment Redemption, the Company Optional Redemption Notices and the Change of Control Redemption Notices, and each of the foregoing, individually, a “Redemption Notice.” 

(yy) “Quarterly Release Amount” means the quotient of (x) $26.2 million divided by (y) the number of
Subsequent Release Dates (as defined in Section 32(n) above) occurring hereunder through the Maturity Date. 
 (zz)
“Redemption Premium” means 118%. 
 (aaa) “Redemption Prices” means, collectively, Event of
Default Redemption Prices, the Change of Control Redemption Prices, the Company Optional Redemption Prices and the Installment Redemption Prices, and each of the foregoing, individually, a “Redemption Price.” 

(bbb) “Restricted Principal” means, as of any given date, the difference of (i) all cash amounts held in
the Master Restricted Account No. [    ] as of the Closing Date and (ii) all cash amounts released from the Master Restricted Account No. [    ] to the Company (or at the Company’s direction) on or
prior to such given date. 

  
 55 

 (ccc) “SEC” means the United States Securities and Exchange
Commission or the successor thereto. 
 (ddd) “Securities Purchase Agreement” means that certain securities
purchase agreement, dated as of the Subscription Date, by and among the Company and the initial holders of the Notes pursuant to which the Company issued the Notes, as may be amended from time to time. 

(eee) “Security Agreement” shall have the meaning as set forth in the Securities Purchase Agreement. 

(fff) “Security Documents” shall have the meaning as set forth in the Securities Purchase Agreement. 

(ggg) “Subsidiaries” means, as of any date of determination, collectively, all Current Subsidiaries and all
New Subsidiaries, and each of the foregoing, individually, a “Subsidiary.” 
 (hhh) “Subject
Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group. 

(iii) “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into. 

(jjj) “Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations
relating to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market
on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is
suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New
York time) unless such day is otherwise designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Common Stock, any day on which The New York Stock Exchange
(or any successor thereto) is open for trading of securities. 
 (kkk) “Transaction Document” shall have the
meaning as set forth in the Securities Purchase Agreement. 

  
 56 

 (lll) “Volume Failure” means, with respect to a particular date
of determination, the aggregate daily dollar trading volume (as reported on Bloomberg) of the Common Stock on the Principal Market on any Trading Day during the twenty (20) Trading Day period ending on the Trading Day immediately preceding such
date of determination (such period, the “Volume Failure Measuring Period”), is less than (x) during the period commencing on the six (6) month anniversary of the Issuance Date (the “Start Date”) and ending
on and including the thirtieth (30) calendar day anniversary of the Start Date, $50,000, (y) during the period commencing on thirty-first (31st) calendar day anniversary of the
Start Date and ending on and including the ninetieth (90th) calendar day anniversary of the Start Date, $100,000 (except, solely with respect to a determination as to whether the Equity Conditions are satisfied during an Equity Conditions
Ending Period to permit an Installment Conversion, $75,000), (z) during the period commencing on the ninety-first (91st) calendar day anniversary of the Start Date and thereafter,
$150,000 (except, solely with respect to a determination as to whether the Equity Conditions are satisfied during an Equity Conditions Ending Period to permit an Installment Conversion, $100,000). All such determinations to be appropriately adjusted
for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during such Volume Failure Measuring Period. 

(mmm) “VWAP” means, for any security as of any date, the dollar volume-weighted average price for such
security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded) during the period beginning at
9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing does not apply, the dollar volume-weighted average price of such
security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar
volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink
sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually
determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 24. All such
determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such period. 

(nnn) “Warrants” has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include
all warrants issued in exchange therefor or replacement thereof. 

  
 57 

 33.    DISCLOSURE. Upon receipt or delivery by the Company of any
notice in accordance with the terms of this Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company or any of its Subsidiaries, the
Company shall within one (1) Business Day after any such receipt or delivery publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains
material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, non-public information relating to the Company or any of its Subsidiaries. If the Company or any of its Subsidiaries provides material non-public information to the
Holder that is not simultaneously filed in a Current Report on Form 8-K and the Holder has not agreed to receive such material non-public information, the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality
to the Company, any of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents with respect to, or a duty to any of the foregoing not to trade on the basis of, such material non-public information. Nothing
contained in this Section 33 shall limit any obligations of the Company, or any rights of the Holder, under Section 4(i) of the Securities Purchase Agreement. 

[signature page follows] 

  
 58 

 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date
set out above. 
  

			
	DELCATH SYSTEMS, INC.
		
	By:	 	 
		 	 Name:

		 	 Title:

  
 Senior Convertible
Note—Signature Page 

 EXHIBIT I 

DELCATH SYSTEMS, INC. 

CONVERSION NOTICE 

Reference is made to the Senior Secured Convertible Note (the “Note”) issued to the undersigned by Delcath Systems, Inc., a
Delaware corporation (the “Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock,
$0.01 par value per share (the “Common Stock”), of the Company, as of the date specified below. Capitalized terms not defined herein shall have the meaning as set forth in the Note. 

 

							
		 	 Date of

Conversion:                 
                                         
                                         
                                         
                                    

				
		 		 	Aggregate Principal to be converted:	 	 
				
		 		 	Aggregate accrued and unpaid Interest and accrued and unpaid Late Charges with respect to such portion of the Aggregate Principal and such Aggregate Interest to be converted:	 	 
			
		 	AGGREGATE CONVERSION AMOUNT TO BE CONVERTED:	 	 
	
	 Please confirm the following information:

			
		 	Conversion Price:	 	 
			
		 	Number of shares of Common Stock to be issued:	 	 
		
	Installment Amount(s) to be reduced (and corresponding Installment Date(s)) and amount of reduction:	 	 
	
	 ̈    Check here if all or any portion of the aggregate Principal being converted includes any Restricted Principal. Please specify the amount Restricted
Principal being converted:
                                         
       
	
	  ̈    If this
Conversion Notice is being delivered with respect to an Acceleration, check here if Holder is electing to use                      as the
Pre-Installment Conversion Price or Installment Conversion Price (as applicable) related to the following Installment Date:
                    

							
	
	Please issue the Common Stock into which the Note is being converted to Holder, or for its benefit, as follows:
		
		 	 ̈    Check here if requesting delivery as a certificate to the following name and to the following address:
			
		 	 Issue to:
	 	 
			
		 		 	 
			
		 		 	 
		
		 	  ̈    Check here
if requesting delivery by Deposit/Withdrawal at Custodian as follows:

			
		 	 DTC Participant:
	 	 
			
		 	 DTC Number:
	 	 
			
		 	Account Number:	 	 

 Date:
                                 ,
             
  

	
	 
	Name of Registered Holder

  

			
	By:	 	 
		 	 Name:

		 	 Title:

		
		 	 Tax ID:

		
		 	 Facsimile:

	
	 E-mail Address:

 Exhibit II 

ACKNOWLEDGMENT 
 The
Company hereby (a) acknowledges this Conversion Notice, (b) certifies that the above indicated number of shares of Common Stock [are][are not] eligible to be resold by the Holder either (i) pursuant to Rule 144 (subject to the
Holder’s execution and delivery to the Company of a customary 144 representation letter) or (ii) an effective and available registration statement and (c) hereby directs
                     to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated
                    , 20     from the Company and acknowledged and agreed to by
                                . 

 

			
	DELCATH SYSTEMS, INC.
		
	 By:
	 	 
		 	 Name:

		 	 Title:

 Exhibit B 

[FORM OF WARRANT] 
 NEITHER THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF
REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. THE NUMBER OF SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE LESS THAN THE AMOUNTS
SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 1(a) OF THIS WARRANT. 
 DELCATH SYSTEMS,
INC. 
 WARRANT TO PURCHASE COMMON STOCK

 Warrant No.: 
 Date of Issuance:
[            ], 2016 (“Issuance Date”) 
 Delcath Systems,
Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [BUYER], the registered holder hereof or its permitted assigns
(the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants
to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or after one year and one day from the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration
Date (as defined below), _________________1 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined below) (the “Warrant
Shares”, and such number of Warrant Shares, the “Warrant Number”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 17. This Warrant is one of the
Warrants to Purchase Common Stock (the “SPA Warrants”) issued pursuant to Section 1 of that certain Securities Purchase Agreement, dated as of June 6, 2016 (the “Subscription Date”), by and among the Company
and the investors (the “Buyers”) referred to therein, as amended from time to time (the “Securities Purchase Agreement”). 

 

	1 	85% Warrant coverage 

 1. EXERCISE OF WARRANT. 

(a) Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in
Section 1(f)), this Warrant may be exercised by the Holder on any day on or after the Issuance Date (an “Exercise Date”), in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form
attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver
payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the “Aggregate Exercise Price”) in cash or
via wire transfer of immediately available funds if the Holder did not notify the Company in such Exercise Notice that such exercise was made pursuant to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to
deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this
Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of
the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1st) Trading Day following the date on which the Company has
received an Exercise Notice, the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of such Exercise Notice. On or before the third
(3rd) Trading Day following the date on which the Company has received such Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or
regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date), the Company shall (X) provided that the Company’s transfer agent (the “Transfer Agent”) is participating in The
Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program and such shares of Common Stock may be issued without legends under the 1933 Act (as defined below), upon the request of the Holder, credit such aggregate
number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (Y) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program or such shares of Common Stock may not be issued without legends under the 1933 Act (as defined below), upon the request of the Holder, issue and deliver (via reputable
overnight courier) to the address as specified in the Exercise Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled pursuant to such exercise.
Upon delivery of an Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares
are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the
number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise and upon surrender of this Warrant to the Company by the Holder, then, at the request of the
Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with

  
 2 

 
Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with
respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The
Company shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent) that may be payable with respect to the issuance and delivery of Warrant Shares
upon exercise of this Warrant. Notwithstanding the foregoing, except in the case where an exercise of this Warrant is validly made pursuant to a Cashless Exercise, the Company’s failure to deliver Warrant Shares to the Holder on or prior to the
later of (i) three (3) Trading Days after receipt of the applicable Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant Shares
initiated on the applicable Exercise Date) and (ii) one (1) Trading Day after the Company’s receipt of the Aggregate Exercise Price (or valid notice of a Cashless Exercise) (such later date, the “Share Delivery
Deadline”) shall not be deemed to be a breach of this Warrant. From the Issuance Date through and including the Expiration Date, the Company shall maintain a transfer agent that participates in the DTC’s Fast Automated Securities
Transfer Program. 
 (b) Exercise Price. For purposes of this Warrant, “Exercise Price” means
$[            ]2, subject to adjustment as provided herein. 

(c) Company’s Failure to Timely Deliver Securities. If the Company shall fail, for any reason or for no reason, on or prior to the
Share Delivery Deadline, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program or such shares of Common Stock may not be issued without legends under the 1933 Act (as defined below), to issue and deliver to
the Holder (or its designee) a certificate for the number of Warrant Shares to which the Holder is entitled and register such Warrant Shares on the Company’s share register or, if the Transfer Agent is participating in the DTC Fast Automated
Securities Transfer Program and such shares of Common Stock may not be issued without legends under the 1933 Act (as defined below), to credit the balance account of the Holder or the Holder’s designee with DTC for such number of Warrant Shares
to which the Holder is entitled upon the Holder’s exercise of this Warrant (as the case may be) (a “Delivery Failure”), and if on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock issuable upon such exercise that the Holder is entitled to receive from the Company (a
“Buy-In”), then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the
Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other Person in
respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and deliver such certificate (and to issue such shares of Common Stock) or credit the balance account of such
Holder or such Holder’s designee, as applicable, with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder’s exercise hereunder 

 

	2 	 Insert 110% of the initial Conversion Price 

  
 3 

 
(as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates
representing such Warrant Shares or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder’s exercise hereunder (as the
case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the Closing Sale Price of the Common Stock on the Share Delivery
Deadline with respect to the related Exercise Notice (the “Buy-In Payment Amount”). Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the
exercise of this Warrant as required pursuant to the terms hereof. 
 (d) Cashless Exercise. Notwithstanding anything contained
herein to the contrary (other than Section 1(f) below), at any time after the one year and one day anniversary of the Issuance Date if at the time of exercise hereof a registration statement of the Company filed with the Securities and Exchange
Commission is not effective (or the prospectus contained therein is not available for use) for the resale by the Holder and/or issuance to the Holder of all of the Warrant Shares, then, the Holder may, in its sole discretion, exercise this Warrant
in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of
Warrant Shares determined according to the following formula (a “Cashless Exercise”): 
  

			
	Net Number =	  	 (A x B) – (A x C)

B

 For purposes of the foregoing formula: 

A= the total number of shares with respect to which this Warrant is then being exercised. 

B = the quotient of (x) the sum of the VWAP of the Common Stock of each of the five (5) Trading Days ending at the close of business
on the Principal Market immediately prior to the time of exercise as set forth in the applicable Exercise Notice, divided by (y) five (5). 

C = the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise. 

For purposes of Rule 144(d) promulgated under the 1933 Act, as in effect on the Subscription Date, it is intended that the Warrant Shares
issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Securities Purchase
Agreement. 

  
 4 

 (e) Disputes. In the case of a dispute as to the determination of the Exercise Price or
the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with
Section 13. 
 (f) Limitations on Exercises. 

(i) Beneficial Ownership. The Company shall not effect the exercise of any portion of this Warrant, and the Holder
shall not have the right to exercise any portion of this Warrant, pursuant to the terms and conditions of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent that after giving effect to such
exercise, the Holder together with the other Attribution Parties collectively would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such
exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and all other
Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon
(A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of
the Company (including, without limitation, any convertible notes or convertible preferred stock or warrants, including other SPA Warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion or
exercise analogous to the limitation contained in this Section 1(f)(i). For purposes of this Section 1(f)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of determining the
number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other
written notice by the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives an Exercise Notice from the Holder at a
time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent
that such Exercise Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this Section 1(f)(i), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares
to be acquired pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably practicable, the Company shall return to the Holder any exercise
price paid by the Holder for the Reduction Shares. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing

  
 5 

 
or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to
the conversion or exercise of securities of the Company, including this Warrant, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event that the issuance of shares of
Common Stock to the Holder upon exercise of this Warrant results in the Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock
(as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which the Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess
Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess Shares has been
deemed null and void, the Company shall return to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective
until the sixty-first (61st) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that
(i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or
decrease will apply only to the Holder and the other Attribution Parties and not to any other holder of SPA Warrants that is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms
of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this
Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability. The provisions of this paragraph shall be construed and implemented in
a manner otherwise than in strict conformity with the terms of this Section 1(f)(i) to the extent necessary to correct this paragraph or any portion of this paragraph which may be defective or inconsistent with the intended beneficial ownership
limitation contained in this Section 1(f)(i) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor holder
of this Warrant. 
 (ii) Principal Market Regulation. The Company shall not issue any shares of Common Stock upon the
exercise of this Warrant if the issuance of such shares of Common Stock (taken together with the issuance of such shares upon the exercise of the other SPA Warrants and the conversion of the Notes or otherwise pursuant to the terms of the Notes or
the SPA Warrants) would exceed the aggregate number of shares of Common Stock which the Company may issue upon exercise or conversion or otherwise pursuant to the terms of the Notes or the SPA Warrants (as the case may be) of the Warrants and the
Notes without breaching the Company’s obligations under the rules or regulations of the Principal Market (the number of shares which may be issued without violating such rules and regulations, the “Exchange Cap”), except that
such limitation shall not apply to the extent that the Company (A) obtains the approval of its 

  
 6 

 
stockholders as required by the applicable rules of the Principal Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from outside
counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder. Until such approval or such written opinion is obtained, no Buyer shall be issued in the aggregate, upon conversion or exercise
(as the case may be) of any Notes or any of the SPA Warrants or otherwise pursuant to the terms of the Notes or the SPA Warrants, shares of Common Stock in an amount greater than the product of (i) the Exchange Cap as of the Issuance Date
multiplied by (ii) the quotient of (1) the original principal amount of Notes issued to such Buyer pursuant to the Securities Purchase Agreement on the Closing Date (as defined in the Securities Purchase Agreement) divided by (2) the
aggregate original principal amount of all Notes issued to the Buyers pursuant to the Securities Purchase Agreement on the Closing Date (with respect to each Buyer, the “Exchange Cap Allocation”). In the event that any Buyer shall
sell or otherwise transfer any of such Buyer’s SPA Warrants, the transferee shall be allocated a pro rata portion of such Buyer’s Exchange Cap Allocation with respect to such portion of such SPA Warrants so transferred, and the
restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation so allocated to such transferee. Upon conversion and exercise in full of a holder’s Notes and SPA Warrants, the
difference (if any) between such holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder upon such holder’s conversion in full of such Notes and such holder’s exercise in full of such
SPA Warrants shall be allocated, to the respective Exchange Cap Allocations of the remaining holders of Notes and related SPA Warrants on a pro rata basis in proportion to the shares of Common Stock underlying the Notes and related SPA Warrants then
held by each such holder of Notes and related SPA Warrants. In the event that the Company is then prohibited from issuing any shares of Common Stock pursuant to this Section 1(f)(ii) (the “Exchange Cap Shares”), in lieu of
issuing and delivering such Exchange Cap Shares to the Holder, the Company shall pay cash to the Holder in exchange for the cancellation of such portion of this Warrant exercisable into such Exchange Cap Shares (the “Exchange Cap Payment
Amount”) at a price equal to the sum of (x) the product of (A) such number of Exchange Cap Shares and (B) the Closing Sale Price of the Common Stock on the date the Holder delivers the applicable Exercise Notice with respect
to such Exchange Cap Shares to the Company and (y) to the extent the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Exchange Cap Shares, any brokerage
commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith. Notwithstanding anything to the contrary in this Warrant or any Transaction Document, the Exchange Cap Payment Amount shall not exceed $750,000 in
the aggregate for all SPA Warrants. 
 (g) Reservation of Shares. 

(i) Required Reserve Amount. After the Stockholder Reserve Deadline (as defined in the Securities Purchase Agreement),
so long as this Warrant remains outstanding, the Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock at least equal to 150% of the maximum number of shares of Common Stock as shall be necessary
to satisfy the Company’s obligation to issue shares of Common Stock under the SPA Warrants then outstanding (without regard to any 

  
 7 

 
limitations on exercise) (the “Required Reserve Amount”); provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 1(g)(i) be
reduced other than proportionally in connection with any exercise or redemption of SPA Warrants or such other event covered by Section 2(a) below. The Required Reserve Amount (including, without limitation, each increase in the number of shares
so reserved) shall be allocated pro rata among the holders of the SPA Warrants based on number of shares of Common Stock issuable upon exercise of SPA Warrants held by each holder on the Issuance Date (without regard to any limitations on exercise)
or increase in the number of reserved shares, as the case may be (the “Authorized Share Allocation”). In the event that a holder shall sell or otherwise transfer any of such holder’s SPA Warrants, each transferee shall be
allocated a pro rata portion of such holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any SPA Warrants shall be allocated to the remaining holders of SPA Warrants, pro
rata based on the number of shares of Common Stock issuable upon exercise of the SPA Warrants then held by such holders (without regard to any limitations on exercise). 

(ii) Insufficient Authorized Shares. If, notwithstanding Section 1(g)(i), and not in limitation thereof, at any
time while any of the SPA Warrants remain outstanding, the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized Share
Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for all the SPA
Warrants then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of
such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with
a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.
In the event that the Company is prohibited from issuing shares of Common Stock upon an exercise of this Warrant due to the failure by the Company to have sufficient shares of Common Stock available out of the authorized but unissued shares of
Common Stock (such unavailable number of shares of Common Stock, the “Authorization Failure Shares”), in lieu of delivering such Authorization Failure Shares to the Holder, the Company shall pay cash in exchange for the cancellation
of such portion of this Warrant exercisable into such Authorization Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorization Failure Shares and (y) the Closing Sale Price of the Common Stock on
the date the Holder delivers the applicable Exercise Notice with respect to such Authorization Failure Shares to the Company; and (ii) to the extent the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of Authorization Failure Shares, any Buy-In Payment Amount, brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith. Nothing contained in this
Section 1(g) shall limit any obligations of the Company under any provision of the Securities Purchase Agreement. 

  
 8 

 2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number of Warrant
Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2. 
 (a)
Stock Dividends and Splits. Without limiting any provision of Section 4, if the Company, at any time on or after the Subscription Date, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock
or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of
Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the
Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the
period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event. 

(b) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to Section 2(a) above, the number
of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be
the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein). On December 31, 2017 (the “Maturity Date”), the number of Warrant Shares
that may be purchased upon exercise of this Warrant shall be increased by such number of Warrant Shares equal to 75% of the difference of (A) the quotient of (i) the product of (x) the Exercise Price as of the Issuance Date (as
adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) multiplied by (y) the Warrant Number as of the Issuance Date (as adjusted for stock splits, stock dividends, recapitalizations and similar
events), divided by (ii) the VWAP of the Common Stock on the Maturity Date, less (B) the Warrant Number as of the Issuance Date (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). 

(c) Calculations. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any
such shares shall be considered an issuance or sale of Common Stock. 

  
 9 

 (d) Voluntary Adjustment By Company. The Company may at any time during the term of this
Warrant, with the prior written consent of the Required Holders (as defined in the Securities Purchase Agreement), reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the
Company. 
 (e) Adjustment upon the Maturity Date. If on the Maturity Date, the Exercise Price then in effect exceeds the VWAP of the
Common Stock on the Maturity Date, the Exercise Price hereunder shall be reduced by a downward-only reset to the VWAP of the Common Stock on the Maturity Date (the “Adjusted Exercise Price”). 

3. RIGHTS UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities,
property, options, evidence of indebtedness or any other assets by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the
issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken for such
Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, that to the extent that the Holder’s right to
participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to the extent of the Maximum Percentage
(and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership) to the extent of any such excess) and the portion of such Distribution shall be held in abeyance for the
benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution
(and any Distributions declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation). 

4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS. 

(a) Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or
sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no
such record is taken, the date as of which the record holders of shares of Common Stock are to 

  
 10 

 
be determined for the grant, issuance or sale of such Purchase Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase Right
would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to the extent of the Maximum Percentage (and shall not be entitled to
beneficial ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to the extent of any such excess) and such Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until
such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted,
issued or sold on such initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been no such limitation). 

(b) Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless: 

(i) in the event that the Successor Entity (including its Parent Entity) is not a publicly traded entity with common equity
quoted on or listed for trading on an Eligible Market and registered under the 1934 Act, the Company or the Successor Entity, as applicable, shall, on or prior to the date of consummation of such Fundamental Transaction, purchase this Warrant from
the Holder by paying to the Holder cash in an amount equal to the Black Scholes Going Private Value whereupon the Successor Entity shall have no obligation to assume the obligations of the Company under this Warrant and the other Transaction
Documents, including any obligation to deliver to the Holder in exchange for this Warrant any security of the Successor Entity, and 

(ii) in the event that the Successor Entity (including its Parent Entity) is a publicly traded entity with common equity quoted
on or listed for trading on an Eligible Market and registered under the 1934 Act, the Successor Entity assumes in writing all of the obligations of the Company under this Warrant and the other Transaction Documents (as defined in the Securities
Purchase Agreement) in accordance with the provisions of this Section 4(b)(ii) pursuant to written agreements in form and substance satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, including
agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable
for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental
Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of
such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction). Upon the consummation of each Fundamental Transaction described in this Section 4(b)(ii) (each such Fundamental Transaction, a “Public Fundamental Transaction”), the Successor Entity shall (x)

  
 11 

 
succeed to, and be substituted for (so that from and after the date of the applicable Public Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring
to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the
same effect as if such Successor Entity had been named as the Company herein, (y) deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Public
Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon
the exercise of this Warrant prior to the applicable Public Fundamental Transaction, such shares of publicly traded common stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to
receive upon the happening of the applicable Public Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Public Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as
adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, and without limiting Section 1(f) hereof, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this
Section 4(b)(ii) to permit the Public Fundamental Transaction without the assumption of this Warrant. 
 In addition to and not in
substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares
of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the
applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall
continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or
subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any
limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder. 

(c) Holder Optional Redemptions. 

(i) Fundamental Transaction Redemption. Notwithstanding the foregoing and the provisions of Section 4(b)(ii)
above, at the request of the Holder delivered at any time commencing on the earliest to occur of (x) the public disclosure of any Public Fundamental Transaction, (y) the consummation of any Public Fundamental Transaction and (z) the
Holder first becoming aware of any Public Fundamental Transaction through the date that is ninety (90) days after the public disclosure of the consummation of such Public Fundamental Transaction by the Company pursuant to a Current Report on
Form 

  
 12 

 
8-K filed with the SEC, the Company or the Successor Entity (as the case may be) shall purchase this Warrant from the Holder on the date of such request by paying to the Holder cash in an amount
equal to the Black Scholes Value. Payment of such amounts shall be made by the Company (or at the Company’s direction) to the Holder on or prior to the later of (x) the second
(2nd) Trading Day after the date of such request and (y) the date of consummation of such Public Fundamental Transaction. 

(ii) Event of Default Redemption. Notwithstanding the foregoing and the provisions of Section 4(b) above, at the
request of the Holder delivered at any time after the occurrence of an Event of Default (as defined in the Notes)(assuming for such purpose that the Notes remain outstanding), the Company or the Successor Entity (as the case may be) shall purchase
this Warrant from the Holder on the date of such request by paying to the Holder cash in an amount equal to the Event of Default Black Scholes Value not to exceed $750,000 in the aggregate for all SPA Warrants. 

(d) Application. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and
Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the
benefit of the Maximum Percentage, applied however with respect to shares of capital stock registered under the 1934 Act and thereafter receivable upon exercise of this Warrant (or any such other warrant)). 

5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation (as defined in
the Securities Purchase Agreement), Bylaws (as defined in the Securities Purchase Agreement) or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights
of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, and
(b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant. Notwithstanding anything herein
to the contrary, if after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted to exercise this Warrant in full for any reason (other than pursuant to restrictions set forth in Section 1(f) hereof), the
Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals as necessary to permit such exercise into shares of Common Stock. 

6. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this
Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the
Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate 

  
 13 

 
action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities
on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the
Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders. 

7. REISSUANCE OF WARRANTS. 
 (a)
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with
Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred. 

(b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by
the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d))
representing the right to purchase the Warrant Shares then underlying this Warrant. 
 (c) Exchangeable for Multiple Warrants. This
Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant
Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional
shares of Common Stock shall be given. 
 (d) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant
pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant
(or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in
connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and
(iv) shall have the same rights and conditions as this Warrant. 

  
 14 

 8. NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided herein,
such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant (other than the issuance of shares of
Common Stock upon exercise in accordance with the terms hereof), including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the
Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s), (ii) at least fifteen (15) days prior to
the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or
rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such
information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder, (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction and (iv) within one
(1) Business Day of the occurrence of an Event of Default (as defined in the Notes), setting forth in reasonable detail any material events with respect to such Event of Default and any efforts by the Company to cure such Event of Default. To
the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its Subsidiaries, the Company shall simultaneously file such notice with the SEC (as defined in the Securities
Purchase Agreement) pursuant to a Current Report on Form 8-K. If the Company or any of its Subsidiaries provides material non-public information to the Holder that is not simultaneously filed in a Current Report on Form 8-K and the Holder has not
agreed to receive such material non-public information, the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality to the Company, any of its Subsidiaries or any of their respective officers, directors,
employees, affiliates or agents with respect to, or a duty to any of the foregoing not to trade on the basis of, such material non-public information. It is expressly understood and agreed that the time of execution specified by the Holder in each
Exercise Notice shall be definitive and may not be disputed or challenged by the Company. 
 9. AMENDMENT AND WAIVER. Except as otherwise provided
herein, the provisions of this Warrant (other than Section 1(f)) may be amended, changed or waived, and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has
obtained the written consent of the holders of at least fifty-five (55%) of SPA Warrants (measured on an as-exercised basis, without regard to any limitations on exercise set forth herein) provided, that such holders must include Hudson Bay
Master Fund Ltd. so long as it holds at least 20% of the SPA Warrants (as determined on an as-exercised basis, without regards to any limitations on exercise set forth therein) initially held by Hudson Bay Master Fund Ltd. Any change, waiver or
amendment so approved shall be binding upon all existing and future holders of this Warrant and any other SPA Warrants; provided, however, that no such change, waiver or amendment, as applied to any of the SPA Warrants held by any particular holder
of SPA Warrants, shall, without the written consent of that particular holder, (i) disproportionally and adversely affect any rights under the SPA Warrants of any holder of SPA Warrants; or (ii) modify any of the provisions of, or impair
the right of any holder of SPA Warrants under this Section 9. 

  
 15 

 10. SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise determined to be
invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the
invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties
as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization
of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close
as possible to that of the prohibited, invalid or unenforceable provision(s). 
 11. GOVERNING LAW. This Warrant shall be governed by and construed
and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. The Company and the Holder each hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to the Company or such Holder, as applicable, at the address set forth in Section 9(f) of the Securities
Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. The Company and the Holder each hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal
action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the
Holder. THE COMPANY AND THE HOLDER EACH HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY
TRANSACTION CONTEMPLATED HEREBY. 

  
 16 

 12. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the
Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but
defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date (as defined in the Securities Purchase Agreement) in such other Transaction Documents unless otherwise consented to in writing by the
Holder. 
 13. DISPUTE RESOLUTION. 

(a) Submission to Dispute Resolution. 

(i) In the case of a dispute relating to the Exercise Price, the Closing Sale Price, Event of Default Black Scholes Value,
Black Scholes Value or fair market value or the arithmetic calculation of the number of Warrant Shares (as the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company or the Holder
(as the case may be) shall submit the dispute to the other party via facsimile (A) if by the Company, within five (5) Business Days after the occurrence of the circumstances giving rise to such dispute or (B) if the Holder, within
five (5) Business Days after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly resolve such dispute relating to such Exercise Price, such Closing Sale Price, Event of
Default Black Scholes Value, Black Scholes Value or such fair market value or such arithmetic calculation of the number of Warrant Shares (as the case may be), at any time after the second
(2nd) Business Day following such initial notice by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then the Company and the
Holder may jointly select an independent, reputable investment bank to resolve such dispute. 
 (ii) The Holder and the
Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in accordance with the first sentence of this Section 13 and (B) written documentation supporting its position with respect
to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following the date on which the Holder selected such investment bank (the
“Dispute Submission Deadline”) (the documents referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”) (it being understood
and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer be
entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute
Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the
Holder shall be entitled to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other than the Required Dispute Documentation). 

  
 17 

 (iii) The Company and the Holder shall cause such investment bank to determine
the resolution of such dispute and notify the Company and the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The fees and expenses of such investment bank shall be borne
solely by the Company, and such investment bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error. 

(b) Miscellaneous. The Company and the Holder each expressly acknowledges and agrees that (i) this Section 13 constitutes an
agreement to arbitrate between the Company and the Holder (and constitutes an arbitration agreement) under the rules then in effect under § 7501, et seq. of the New York Civil Practice Law and Rules (“CPLR”) and that the
Company and the Holder is each authorized to apply for an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 13, (ii) a dispute relating to the Exercise Price includes, without
limitation, disputes as to whether an agreement, instrument, security or the like constitutes and Option or Convertible Security, (iii) the terms of this Warrant and each other applicable Transaction Document shall serve as the basis for the
selected investment bank’s resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines are required to
be made by such investment bank in connection with its resolution of such dispute and in resolving such dispute such investment bank shall apply such findings, determinations and the like to the terms of this Warrant and any other applicable
Transaction Documents, (iv) the Company and the Holder shall each have the right to submit any dispute described in this Section 13 to any state or federal court sitting in The City of New York, Borough of Manhattan in lieu of utilizing
the procedures set forth in this Section 13 and (v) nothing in this Section 13 shall limit the Holder from obtaining any injunctive relief or other equitable remedies (including, without limitation, with respect to any matters
described in this Section 13). 
 14. REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in
this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing
herein shall limit the right of the Holder to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning
this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except
as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at
law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to specific performance
and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security. The Company
shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and 

  
 18 

 
conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of
this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in
the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf. 
 15. PAYMENT OF COLLECTION, ENFORCEMENT AND
OTHER COSTS. If (a) this Warrant is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the holder otherwise takes action to collect amounts due under this Warrant or
to enforce the provisions of this Warrant or (b) there occurs any bankruptcy, reorganization, receivership of the company or other proceedings affecting company creditors’ rights and involving a claim under this Warrant, then the Company
shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements.

 16. TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company, except as may otherwise be
required by Section 2(g) of the Securities Purchase Agreement. 
 17. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall
have the following meanings: 
 (a) “1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations
thereunder. 
 (b) “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder. 
 (c) “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is
controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control” of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary
voting power for the election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise. 

(d) “Attribution Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including,
any funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or
indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of the
Company’s Common Stock would or could be aggregated with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and
all other Attribution Parties to the Maximum Percentage. 

  
 19 

 (e) “Black Scholes Going Private Value” means the value of the unexercised
portion of this Warrant remaining on the date of the consummation of the Fundamental Transaction referred to in Section 4(b)(i), which value is calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on
Bloomberg utilizing (i) an underlying price per share equal to the greater of (1) the highest Closing Sale Price of the Common Stock during the period beginning on the Trading Day immediately preceding the announcement of the applicable
Fundamental Transaction (or the consummation of the applicable Fundamental Transaction, if earlier) and ending on the date of consummation of the applicable Fundamental Transaction and (2) the sum of the price per share being offered in cash in
the applicable Fundamental Transaction (if any) plus the value of the non-cash consideration being offered in the applicable Fundamental Transaction (if any), (ii) a strike price equal to the Exercise Price in effect on the date of consummation
of the applicable Fundamental Transaction, (iii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the greater of (1) the remaining term of this Warrant as of the date of consummation of the applicable
Fundamental Transaction and (2) the remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction, (iv) a zero cost of borrow and (v) an expected volatility equal to the greater of 100% and
the 60 day volatility obtained from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the earliest to occur of (A) the public disclosure of the applicable
Fundamental Transaction, and (B) the consummation of the applicable Fundamental Transaction. 
 (f) “Black Scholes
Value” means the value of the unexercised portion of this Warrant remaining on the date of the Holder’s request pursuant to Section 4(c)(i), which value is calculated using the Black Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg utilizing (i) an underlying price per share equal to the greater of (1) the highest Closing Sale Price of the Common Stock during the period beginning on the Trading Day immediately preceding the
announcement of the applicable Fundamental Transaction (or the consummation of the applicable Fundamental Transaction, if earlier) and ending on the Trading Day of the Holder’s request pursuant to Section 4(c)(i) and (2) the sum of
the price per share being offered in cash in the applicable Fundamental Transaction (if any) plus the value of the non-cash consideration being offered in the applicable Fundamental Transaction (if any), (ii) a strike price equal to the
Exercise Price in effect on the date of the Holder’s request pursuant to Section 4(c)(i), (iii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the greater of (1) the remaining term of this
Warrant as of the date of the Holder’s request pursuant to Section 4(c)(i) and (2) the remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction or as of the date of the Holder’s
request pursuant to Section 4(c)(i) if such request is prior to the date of the consummation of the applicable Fundamental Transaction, (iv) a zero cost of borrow and (v) an expected volatility equal to the greater of 100% and the 60
day volatility obtained from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the earliest to occur of (A) the public disclosure of the applicable
Fundamental Transaction, (B) the consummation of the applicable Fundamental Transaction and (C) the date on which the Holder first became aware of the applicable Fundamental Transaction. 

(g) “Bloomberg” means Bloomberg, L.P. 

  
 20 

 (h) “Business Day” means any day other than Saturday, Sunday or other day on
which commercial banks in The City of New York are authorized or required by law to remain closed. 
 (i) “Closing Sale
Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate
the closing trade price, then the last trade price of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last
trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter
market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the
“pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date
shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures
in Section 13. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period. 

(j) “Common Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii) any
capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock. 

(k) “Convertible Securities” means any stock or other security (other than Options) that is at any time and under any
circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock. 

(l) “Eligible Market” means The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global
Market, the OTCQB or the Principal Market 
 (m) “Event of Default Black Scholes Value” means the value of the unexercised
portion of this Warrant remaining on the date of the Holder’s request pursuant to Section 4(c)(ii), which value is calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing
(i) an underlying price per share equal to the highest Closing Sale Price of the Common Stock during the period beginning on the date of the occurrence of the Event of Default through the date all Events of Default have been cured (assuming for
such purpose that the Notes remain outstanding) or, if earlier, the Trading Day of the Holder’s request pursuant to Section 4(c)(ii), (ii) a strike price equal to the Exercise Price in effect on the date of the Holder’s request
pursuant to Section 4(c)(ii), (iii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the greater of (1) the remaining term of this Warrant as of the date of the Holder’s request pursuant to
Section 4(c)(ii) and (2) the remaining term of this Warrant as of the date of the occurrence of such Event of Default, (iv) a zero cost of borrow and 

  
 21 

 
(v) an expected volatility equal to the greater of 100% and the 60 day volatility obtained from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as
of the Trading Day immediately following later of (x) the date of the occurrence of such Event of Default and (y) the date of the public announcement of such Event of Default. 

(n) “Expiration Date” means the date that is the six (6) year anniversary of the Issuance Date or, if such date falls on
a day other than a Trading Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday. 

(o) “Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries,
Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise
dispose of all or substantially all of the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more
Subject Entities to make, or allow the Company to be subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that is accepted by the holders of at least either
(x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with any Subject Entities
making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement or
other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either
(x) at least 50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all the Subject Entities making or party to, or Affiliated with any
Subject Entity making or party to, such stock purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject Entities become collectively the beneficial owners (as
defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company shall, directly or indirectly, including through
subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner” (as defined in Rule 13d-3 under the 1934
Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization,
recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and
outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Warrant calculated as if any shares of Common
Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting 

  
 22 

 
power represented by issued and outstanding shares of Common Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory short form merger or
other transaction requiring other shareholders of the Company to surrender their shares of Common Stock without approval of the shareholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition or any portion of this definition which may be defective or inconsistent with the intended treatment
of such instrument or transaction. 
 (p) “Group” means a “group” as that term is used in Section 13(d) of
the 1934 Act and as defined in Rule 13d-5 thereunder. 
 (q) “Notes” has the meaning ascribed to such term in the Securities
Purchase Agreement, and shall include all notes issued in exchange therefor or replacement thereof. 
 (r) “Options” means
any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities. 
 (s) “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or
Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction. 

(t) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, any other entity or a government or any department or agency thereof. 
 (u) “Principal Market”
means the Nasdaq Capital Market. 
 (v) “SEC” means the United States Securities and Exchange Commission or the successor
thereto. 
 (w) “Subject Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person,
Persons or Group. 
 (x) “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into. 

(y) “Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the
Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the

  
 23 

 
Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or
any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the
hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price or trading volume determinations relating to the Common
Stock, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities. 
 (z)
“VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the
principal securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “HP”
function (set to weighted average) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at
9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price
and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such security on such date on any of
the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such
dispute shall be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such
period. 
 [signature page follows] 

  
 24 

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be
duly executed as of the Issuance Date set out above. 
  

			
	DELCATH SYSTEMS, INC.
		
	By:	 	 
		 	Name:
		 	Title:

 EXHIBIT A 

EXERCISE NOTICE 
 TO BE
EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS 
 WARRANT TO PURCHASE COMMON STOCK 

Delcath Systems, Inc. 
 The
undersigned holder hereby elects to exercise the Warrant to Purchase Common Stock No. _______ (the “Warrant”) of Delcath Systems, Inc., a Delaware corporation (the “Company”) as specified below. Capitalized
terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant. 
 1. Form of Exercise
Price. The Holder intends that payment of the Aggregate Exercise Price shall be made as: 

 ̈ a “Cash Exercise” with respect to _________________ Warrant Shares; and/or

  ̈ a “Cashless Exercise” with respect to _______________ Warrant Shares.

 In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant
hereto, the Holder hereby represents and warrants that this Exercise Notice was executed by the Holder at __________ [a.m.][p.m.] on the date set forth below. 

2. Payment of Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant
Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant. 

3. Delivery of Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________ shares of
Common Stock in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows: 
  ̈ Check here if requesting delivery as a certificate to the following name and to the following address: 
  

			
	Issue to:	  	      

		  	      

		  	      

  ̈ Check here if requesting delivery by
Deposit/Withdrawal at Custodian as follows: 
  

			
	DTC Participant:	  	      

		
	 DTC Number:
	  	      

		
	 Account Number:
	  	      

 Date: _____________ __, ____ 
  

	
	
	   

	Name of Registered Holder

  

			
		
	By:	 	 
		 	Name:
		 	Title:

  

					
	Tax ID:	  	
                     
                                         
   
	  	
			
	 Facsimile:
	  	      
	  	
			
	 E-mail Address:
	  	      
	  	

 Exhibit C 

SECURITY AND PLEDGE AGREEMENT 

SECURITY AND PLEDGE AGREEMENT, dated as of
[                     , 2016] (this “Agreement”), made by Delcath Systems, Inc., a Delaware corporation, with offices located at
1301 Avenue of the Americas, 43FL, New York, New York 10019 (the “Company”), and each of the direct and indirect Domestic Subsidiaries of the Company from time to time party hereto by execution of a joinder agreement (each a
“Grantor” and together with the Company, collectively, the “Grantors”), in favor of Hudson Bay Master Fund Ltd., in its capacity as collateral agent (in such capacity, the “Collateral Agent” as
hereinafter further defined) for the Noteholders (as defined below) party to the Securities Purchase Agreement, dated as of June 6, 2016 (as amended, modified, supplemented, extended, renewed, restated or replaced from time to time, the
“Securities Purchase Agreement”). 
 W I T N E S S E T H: 

WHEREAS, the Company and each party listed as a “Buyer” on the Schedule of Buyers attached to the Securities Purchase Agreement
(each a “Buyer” and collectively, the “Buyers”) are parties to the Securities Purchase Agreement, pursuant to which the Company shall be required to sell, and the Buyers shall purchase or have the right to purchase,
the “Notes” issued pursuant thereto (as such Notes may be amended, modified, supplemented, extended, renewed, restated or replaced from time to time in accordance with the terms thereof, collectively, the “Notes”); 

WHEREAS, certain Domestic Subsidiaries of the Company from time to time (each a “Guarantor” and
collectively, the “Guarantors”) may execute and deliver one or more guarantees (each, a “Guaranty” and collectively, the “Guaranties”), substantially in the
form attached to the Securities Purchase Agreement as Exhibit D, in favor of the Collateral Agent, for the benefit of itself and the Noteholders (as defined below), with respect to the Secured Obligations (as defined below); 

WHEREAS, it is a condition precedent to the Buyers’ obligation to purchase the Notes issued pursuant to the Securities Purchase Agreement
that the Grantors shall have executed and delivered to the Collateral Agent this Agreement providing for the grant to the Collateral Agent, for the benefit of the Noteholders, of a valid, enforceable and perfected (subject to the Perfection
Requirements (as defined below) and the other terms and conditions set forth herein) security interest in all Collateral (as defined below) of each Grantor to secure all of the Secured Obligations, as applicable; and 

WHEREAS, each Grantor has determined that the execution, delivery and performance of this Agreement directly benefits, and is in the best
interest of, such Grantor. 
 NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyers
to perform under the Securities Purchase Agreement, each Grantor and the Collateral Agent, for the benefit of the Collateral Agent and the Noteholders, agree as follows: 

 SECTION 1. Definitions. 

(a) Reference is hereby made to the Securities Purchase Agreement and the Notes for a statement of the terms thereof. All terms used in this
Agreement and the recitals hereto which are defined in the Securities Purchase Agreement, the Notes or in the Code, and which are not otherwise defined herein shall have the same meanings herein as set forth therein; provided that terms used
herein which are defined in the Code on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of the Code except as the Collateral Agent may otherwise determine. 

(b) The following terms shall have the respective meanings provided for in the Code: “Accounts”, “Account Debtor”,
“Cash Proceeds”, “Certificate of Title”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity Account”, “Commodity Contracts”, “Deposit Account”, “Documents”,
“Electronic Chattel Paper”, “Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit
Rights”, “Payment Intangibles”, “Proceeds”, “Promissory Notes”, “Security”, “Record”, “Security Account”, “Software”, and “Supporting Obligations”. 

(c) The words “hereof”, “herein”, “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement, and subsection, section, schedule and exhibit references are to this Agreement unless otherwise specified. 

(d) As used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally
to both the singular and plural forms of such terms: 
 “Affiliate” of any Person means any other Person which, directly or
indirectly, controls or is controlled by or is under common control with such Person and any officer or director of such Person. A Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly or
indirectly, power to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors or managers or power to direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise. 
 “Bankruptcy Code” means Chapter 11 of Title 11 of the United States Code, 11 U.S.C
§§ 101 et seq. (or other applicable bankruptcy, insolvency or similar laws). 
 “Business Day” means any day
other than Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed. 

“Buyer” or “Buyers” shall have the meaning set forth in the recitals hereto. 

“Capital Stock” means (i) with respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not voting) of corporate stock (including, without limitation, any warrants, options, rights or other securities exercisable or convertible into equity interests or securities of
such Person), and (ii) with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person. 

  
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 “Closing Date” means the date the Company initially issues the Notes pursuant to
the terms of the Securities Purchase Agreement. 
 “Code” means Articles 8 or 9 of the Uniform Commercial Code as in effect
from time to time in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, “Code” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or
non-perfection or priority. 
 “Collateral” shall have the meaning set forth in Section 2(a) of this Agreement.

 “Collateral Agent” shall have the meaning set forth in the preamble hereto. 

“Company” shall have the meaning set forth in the preamble hereto. 

“Controlled Account Agreement” means a Control Agreement with respect to a Pledged Account, in form and substance reasonably
satisfactory to the Collateral Agent, as the same may be amended, modified, supplemented, extended, renewed, restated or replaced from time to time. 

“Controlled Accounts”means the Deposit Accounts (other than Excluded Accounts), Commodity Accounts, Securities Accounts,
and/or Foreign Currency Controlled Account of the Grantors listed on Schedule IV attached hereto. 
 “Control
Agreement” means a tri-party deposit account, securities account or commodities account control agreement by and among the applicable Grantor, the Collateral Agent and the depository, securities intermediary or commodities intermediary, and
each in form and substance reasonably satisfactory to Collateral Agent providing to Agent “control” of such deposit account, securities or commodities account within the meaning of Articles 8 and 9 of the Code. 

“Copyright Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as
licensee or licensor and providing for the grant of any right to use or sell any works covered by any Copyright (including, without limitation, all Copyright Licenses set forth in Schedule II hereto). 

“Copyrights” means all domestic and foreign copyrights, whether registered or not, including, without limitation, all
copyright rights throughout the universe (whether now or hereafter arising) in any and all media (whether now or hereafter developed), in and to all original works of authorship fixed in any tangible medium of expression, acquired or used by any
Grantor (including, without limitation, all copyrights described in Schedule II hereto), all 

  
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applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Copyright Office or in any similar office or
agency of the United States or any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof. 

“Domestic Subsidiary” means any Subsidiary other than a Foreign Subsidiary. 

“Event of Default” shall have the meaning set forth in Section 4(a) of the Notes. 

“Excluded Accounts” means (i) the SV Bank Cash Collateral Accounts and (ii) deposit accounts used solely for
payroll, pension funds, healthcare, and 401(k) funds in the ordinary course of business, consistent with past practices. 

“Excluded Collateral” means (i) any Capital Stock owned by any Grantor in (A) any of its direct Foreign
Subsidiaries in excess of 65% of the total outstanding voting Capital Stock of such direct Foreign Subsidiary and (B) any Capital Stock of a foreign Subsidiary owned by any direct Foreign Subsidiary of any Grantor, (ii) any permit or
license or any contractual obligation entered into by any Grantor (A) that prohibits or requires the consent of any Person which has not been obtained as a condition to the creation by such Grantor of a Lien on any right, title or interest in
such permit, license or contractual obligation or (B) to the extent that any applicable law applicable thereto prohibits the creation of a Lien thereon, but only, with respect to the prohibition in the foregoing subclauses (ii)(A) and (ii)(B),
to the extent, and for long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the Code or any other applicable law, (iii) Equipment owned by any Grantor that is subject to a purchase money Lien
or a capitalized lease obligation permitted under the Transaction Documents if the contractual obligation pursuant to which such Lien is granted (or the document providing for such capitalized lease obligation) prohibits or requires the consent of
any Person which has not been obtained as a condition to the creation of any Lien on such equipment, (iv) any “intent to use” Trademark applications for which a statement of use has not been filed (but only until such statement is
filed) and (v) the Excluded Accounts; provided, however, that Excluded Collateral shall not include any proceeds of property described in clauses (i) through (v) above (unless such Proceeds would also constitute Excluded Collateral).

 “Existing Silicon Valley Bank Services Indebtedness” means the existing Indebtedness (as defined in the Securities
Purchase Agreement) of the Company to Silicon Valley Bank pursuant to one or more corporate credit card service agreements in an amount not to exceed $50,000. 

“Existing Silicon Valley Bank L/Cs” means (i) that certain letter of credit, dated February 4, 2016, issued by
Silicon Valley Bank naming SLG 810 Seventh Lessee LLC as beneficiary with a face amount of $881,297.08 and (ii) that certain letter of credit dated April 12, 2016, issued by Silicon Valley Bank naming Kasowitz, Benson, Torres &
Friedman LLP as beneficiary with a face amount of $130,663.00. 
 “Foreign Currency Controlled Accounts”means any
Controlled Account of the Company or its Subsidiaries holding non-United States dollar deposits. 

  
 4 

 “Foreign Subsidiary” means any Subsidiary of a Grantor organized under the laws
of a jurisdiction other than the United States, any of the states thereof, Puerto Rico or the District of Columbia. 

“GAAP” means United States generally accepted accounting principles consistently applied. 

“Governmental Authority” means any nation or government, any Federal, state, city, town, municipality, county, local, foreign
or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government. 
 “Guaranteed Obligations” shall have the meaning set forth in Section 2 of each Guaranty.

 “Guarantor” or “Guarantors” shall have the meaning set forth in the recitals hereto. 

“Guaranty” or “Guaranties” shall have the meaning set forth in the recitals hereto. 

“Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or
under any other bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, or other similar arrangements in respect of such Person’s creditors generally, or proceedings seeking
reorganization, arrangement, or other similar relief. 
 “Intellectual Property” means, collectively, the Copyrights,
Trademarks and Patents. 
 “Intellectual Property Security Agreement” means the Intellectual Property Security Agreement
required to be delivered pursuant to Section 5(h)(i) of this Agreement, substantially in the form attached hereto as Exhibit A. 

“Licenses” means, collectively, the Copyright Licenses, the Trademark Licenses and the Patent Licenses. 

“Lien” means any mortgage, lien, pledge, charge, security interest, adverse claim or other encumbrance upon or in any
property or assets. 
 “Material License” has the meaning set forth in Section 4(e) of this Agreement. 

“Notes” shall have the meaning set forth in the recitals hereto. 

“Noteholders” means, at any time, the holders of the Notes at such time. 

“Paid in Full”or “Payment in Full” means the payment in full in cash (and/or, as applicable, in shares of
Common Stock issued upon any voluntary conversion of any Note by the 

  
 5 

 
holder thereof in accordance with the terms of such Note) of all of the Secured Obligations (other than contingent reimbursement and indemnification obligations). 

“Patent Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensee
or licensor and providing for the grant of any right to manufacture, use or sell any invention covered by any Patent (including, without limitation, all Patent Licenses set forth in Schedule II hereto). 

“Patents” means all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions,
trade secrets, ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how, formulae, rights of publicity and other general intangibles of like nature, now existing or hereafter acquired (including, without
limitation, all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how and formulae
described in Schedule II hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office, or in any similar office or
agency of the United States or any other country or any political subdivision thereof), and all reissues, reexaminations, divisions, continuations, continuations in part and extensions or renewals thereof. 

“Perfection Requirement” or “Perfection Requirements” shall have the meaning set forth in Section 4(k)
of this Agreement. 
 “Person” means an individual, corporation, limited liability company, partnership, association,
joint-stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority. 

“Pledged Accounts” means all of each Grantor’s right, title and interest in all of its Deposit Accounts (other than
Excluded Accounts), Commodity Accounts and Securities Accounts (in all cases, including, without limitation, all Controlled Accounts and Foreign Currency Control Accounts). 

“Pledged Entity” means, each Person listed from time to time on Schedule IV hereto as a “Pledged Entity,”
together with each other Person, any right in or interest in or to all or a portion of whose Capital Stock (other than Excluded Collateral) is acquired or otherwise owned by a Grantor after the date hereof. 

“Pledged Equity” means all of each Grantor’s right, title and interest in and to all of the Securities and Capital Stock
now or hereafter owned by such Grantor, regardless of class or designation, including all substitutions therefor and replacements thereof, all proceeds thereof and all rights relating thereto, also including any certificates representing the
Securities and/or Capital Stock, the right to receive any certificates representing any of the Securities and/or Capital Stock, all warrants, options, share appreciation rights and other rights, contractual or otherwise, in respect thereof, and the
right to receive dividends, distributions of income, profits, 

  
 6 

 
surplus, or other compensation by way of income or liquidating distributions, in cash or in kind, and cash, instruments, and other property from time to time received, receivable, or otherwise
distributed in respect of or in addition to, in substitution of, on account of, or in exchange for any or all of the foregoing; provided, that Pledged Equity shall not include any Capital Stock owned by any Grantor in (A) any of its direct
Foreign Subsidiaries in excess of 65% of the total outstanding voting Capital Stock of such direct Foreign Subsidiary and (B) any Capital Stock of a foreign Subsidiary owned by any direct Foreign Subsidiary of any Grantor. 

“Pledged Operating Agreements” means all of each Grantor’s rights, powers and remedies under the limited liability
company operating agreements of each of the Pledged Entities that are limited liability companies, as may be amended, modified, supplemented, extended, renewed, restated or replaced from time to time. 

“Pledged Partnership Agreements” means all of each Grantor’s rights, powers, and remedies under the partnership
agreements of each of the Pledged Entities that are partnerships, as may be amended, modified, supplemented, extended, renewed, restated or replaced from time to time. 

“Secured Obligations” shall have the meaning set forth in Section 3 of this Agreement. 

“Securities Purchase Agreement” shall have the meaning set forth in the recitals hereto. 

“Subsidiary”means any Person in which a Grantor directly or indirectly, (i) owns any of the outstanding Capital Stock or
holds any equity or similar interest of such Person or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing, collectively, “Subsidiaries”. 

“SV Bank Cash Collateral Accounts” means (i) the Company’s Deposit Accounts, account numbers 3301264690 and
3301464100, maintained with Silicon Valley Bank or its affiliate which contain cash collateral securing the Existing Silicon Valley Bank L/Cs in an aggregate amount of $1,011,960.08 and (ii) the Company’s Deposit Account, account number
3300878343, maintained with Silicon Valley Bank or its affiliate which contains cash collateral in the amount of $50,000 securing the Existing Silicon Valley Bank Services Indebtedness. 

“Trademark Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as
licensor or licensee and providing for the grant of any right concerning any Trademark, together with any goodwill connected with and symbolized by any such licenses, contracts or agreements and the right to prepare for sale or lease and sell or
lease any and all Inventory now or hereafter owned by any Grantor and now or hereafter covered by such licenses, contracts or agreements (including, without limitation, all Trademark Licenses described in Schedule II hereto). 

“Trademarks” means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names,
business names, d/b/a’s, assumed names, Internet domain names, trade styles, designs, logos and other source or business identifiers and all 

  
 7 

 
general intangibles of like nature, now or hereafter owned, adopted, acquired or used by any Grantor (including, without limitation, all domestic and foreign trademarks, service marks, collective
marks, certification marks, trade names, business names, d/b/a’s, assumed names, Internet domain names, trade styles, designs, logos and other source or business identifiers described in Schedule II hereto), all applications,
registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other
country or any political subdivision thereof), and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized by such marks and all customer lists, formulae and other Records of any Grantor relating to the
distribution of products and services in connection with which any of such marks are used. 
 SECTION 2. Grant of Security Interest.

 (a) As collateral security for the due and punctual payment and performance all of the Secured Obligations, as and when due, each Grantor
hereby pledges and assigns to the Collateral Agent, for itself and for the benefit of the Noteholders, and grants to the Collateral Agent, for itself and for the benefit of the Noteholders, a continuing security interest in, all personal property
and assets of such Grantor, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind, nature and description, whether tangible or intangible (collectively, the “Collateral”),
including, without limitation, the following: 
  

	 	(i)	all Accounts; 

  

	 	(ii)	all Chattel Paper (whether tangible or Electronic Chattel Paper); 

  

	 	(iii)	the Commercial Tort Claims on Schedule VI hereto, and in any subsequent notice received by the Collateral Agent pursuant to Section 5(a)(F); 

 

	 	(iv)	all Documents; 

  

	 	(v)	all Equipment; 

  

	 	(vi)	all Fixtures; 

  

	 	(vii)	all General Intangibles (including, without limitation, all Payment Intangibles); 

  

	 	(viii)	all Goods; 

  

	 	(ix)	all Instruments (including, without limitation, all Promissory Notes and each certificated Security); 

  

	 	(x)	all Inventory; 

  
 8 

	 	(xi)	all Investment Property (and, regardless of whether classified as Investment Property under the Code, all Pledged Equity, Pledged Operating Agreements and Pledged Partnership Agreements); 

 

	 	(xii)	all Intellectual Property and all Licenses; 

  

	 	(xiii)	all Letter-of-Credit Rights; 

  

	 	(xiv)	all Pledged Accounts, all cash and other property from time to time deposited therein, and all monies and property in the possession or under the control of the Collateral Agent or any Noteholder or any Affiliate,
representative, agent or correspondent of the Collateral Agent or any such Noteholder; 

  

	 	(xv)	all Supporting Obligations; 

  

	 	(xvi)	all other tangible and intangible personal property of each Grantor (whether or not subject to the Code), including, without limitation, all Deposit Accounts and other accounts and all cash and all investments therein,
all proceeds, products, offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of any Grantor described in the preceding clauses of this Section 2(a) (including, without
limitation, any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by each Grantor in respect of any of the items listed above), and all books, correspondence, files and other Records, including,
without limitation, all tapes, desks, cards, Software, data and computer programs in the possession or under the control of any Grantor or any other Person from time to time acting for any Grantor, in each case, to the extent of such Grantor’s
rights therein, that at any time evidence or contain information relating to any of the property described in the preceding clauses of this Section 2(a) or are otherwise necessary or helpful in the collection or realization thereof; and

  

	 	(xvii)	all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing Collateral; 

in each case howsoever any Grantor’s interest therein may arise or appear (whether by ownership, security interest, claim or otherwise). 

(b) Notwithstanding anything herein to the contrary, the term “Collateral” shall not include any Excluded Collateral. 

(c) Each Grantor agrees not to further encumber, or permit any other Lien to exist (other than Permitted Liens) that encumbers, any of its
Copyrights, Copyright applications, Copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any Licenses, 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 

  
 9 

 
the business of such Grantor 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, in each case without the Collateral Agent’s prior written consent (which consent may be withheld or given in the Collateral Agent’s sole discretion). 

(d) The Grantors agree that the pledge of the shares of Capital Stock acquired by a Grantor of any and all Persons now or hereafter existing
who is a Foreign Subsidiary may be supplemented by one or more separate pledge agreements, deeds of pledge, share charges or other similar agreements or instruments, executed and delivered by the relevant Grantors in favor of the Collateral Agent,
which pledge agreements will provide for the pledge of such shares of Capital Stock in accordance with the laws of the applicable foreign jurisdiction. With respect to such shares of Capital Stock, the Collateral Agent may, at any time and from time
to time, in its reasonable discretion and upon prior written notice to the Company, take such actions in such foreign jurisdictions that will result in the perfection of the Lien created in such shares of Capital Stock. 

(e) In addition, to secure the prompt and complete payment, performance and observance of the Secured Obligations and in order to induce the
Buyers as aforesaid, to the extent permitted under applicable law, each Grantor hereby grants to the Collateral Agent, for itself and for the ratable benefit of the Noteholders, a right of set-off against the property of such Grantor held by the
Collateral Agent, for itself and for the ratable benefit of the Noteholders, consisting of property described above in Section 2(a) now or hereafter in the possession or custody of or in transit to the Collateral Agent, for any purpose,
including safekeeping, collection or pledge, for the account of such Grantor, or as to which such Grantor may have any right or power; provided that such right shall only be exercised after an Event of Default has occurred and is continuing. The
Collateral Agent agrees to notify the relevant Grantor promptly after any such set off and application made by the Collateral Agent, provided that the failure to give such notice shall not affect the validity of such set off and application. 

  
 10 

 SECTION 3. Security for Secured Obligations. The security interest created hereby in the
Collateral constitutes continuing collateral security for all of the following obligations, whether direct or indirect, absolute or contingent, and whether now existing or hereafter incurred (collectively, the “Secured
Obligations”): (a) (i) the payment by the Company and each other Grantor, as and when due and payable (by scheduled maturity, required prepayment, acceleration, demand or otherwise), of all amounts from time to time owing by it in
respect of the Securities Purchase Agreement (other than in respect of the Warrants), the Notes, this Agreement and the other Security Documents, and (ii) in the case of the Guarantors, the payment by such Guarantors, as and when due and
payable of all Guaranteed Obligations under the Guaranties, including, without limitation, in both cases, (A) all principal of, interest, make-whole and other amounts on the Notes (including, without limitation, all interest, make-whole and
other amounts that accrue after the commencement of any Insolvency Proceeding of any Grantor, whether or not the payment of such interest is enforceable or is allowable in such Insolvency Proceeding), and (B) all fees, interest, premiums,
penalties, contract causes of action, costs, commissions, expense reimbursements, indemnifications and all other amounts due or to become due under this Agreement, the Securities Purchase Agreement (other than in respect of the Warrants), the Notes
and the other Security Documents; and 
 (b) the due performance and observance by each Grantor of all of its other obligations from time to
time existing in respect of this Agreement, the Securities Purchase Agreement (other than in respect of the Warrants), the Notes and other Security Documents, including without limitation, with respect to any conversion or redemption rights of the
Noteholders under the Notes. 
 SECTION 4. Representations and Warranties. Each Grantor represents and warrants as follows: 

(a) Schedule I hereto sets forth (i) the exact legal name of each Grantor, and (ii) the state of incorporation, organization
or formation and the organizational identification number of each Grantor in such state. The information set forth in Schedule I hereto with respect to such Grantor is true and accurate in all respects. Such Grantor has not previously changed
its name (or operated under any other name), jurisdiction of organization or organizational identification number from those set forth in Schedule I hereto except as disclosed in Schedule I hereto. 

(b) There is no pending or, to its knowledge, written notice threatening any action, suit, proceeding or claim affecting any Grantor before
any Governmental Authority or any arbitrator, or any order, judgment or award issued by any Governmental Authority or arbitrator, in each case, that may adversely affect the grant by any Grantor, or the perfection, of the security interest purported
to be created hereby in the Collateral, or the exercise by the Collateral Agent of any of its rights or remedies hereunder. 
 (c) All
Federal, state and local tax returns and other reports required by applicable law to be filed by any Grantor have been filed, or extensions have been obtained, and all taxes, assessments and other governmental charges imposed upon any Grantor or any
property of any Grantor (including, without limitation, all federal income and social security taxes on employees’ wages) and which have become due and payable on or prior to the date hereof have been paid, except to the extent contested in
good faith by proper proceedings which 

  
 11 

 
stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves have been set aside for the payment thereof in accordance with
GAAP. 
 (d) All Equipment, Fixtures, Goods and Inventory of each Grantor now existing are, and all Equipment, Fixtures, Goods and Inventory
of each Grantor hereafter existing (in each case, other than Equipment, Fixtures, Goods and Inventory in transit, out for repair, in the process of being sold, transferred or otherwise disposed of in a transaction permitted under the Transaction
Documents) will be, located or based at the addresses specified therefor in Schedule III hereto, except that each Grantor will give the Collateral Agent written notice of any change in the location of any Equipment, Fixtures, Goods and
Inventory to any location other than locations set forth on Schedule III hereto within 20 days of such change. Each Grantor’s principal place of business and chief executive office, the place where each Grantor keeps its Records
concerning the Collateral and all originals of all Chattel Paper are located and will continue to be located at the addresses specified therefor in Schedule III hereto, except that each Grantor will give the Collateral Agent ten
(10) Business Days’ prior written notice of any change in the location of such Records concerning Collateral and originals of Chattel Paper to any location other than locations set forth on Schedule III hereto. 

(e) Set forth in Schedule IV hereto is a complete and accurate list, as of the date of this Agreement, of (i) each Promissory
Note, Security and other Instrument owned by each Grantor that is in excess of $25,000, (ii) each Pledged Account of each Grantor, together with the name and address of each institution at which each such Pledged Account is maintained, the
account number for each such Pledged Account and a description of the purpose of each such Pledged Account and (iii) the name of each Foreign Currency Controlled Account, together with the name and address of each institution at which each such
Foreign Currency Controlled Account is maintained and the amount of cash or cash equivalents held in each such Foreign Currency Controlled Account. Set forth in Schedule II hereto is a complete and correct list of each trade name used by each
Grantor and the name of, and each trade name used by, each Person from which each Grantor has acquired any substantial part of the Collateral. 

(f) Each Grantor has delivered to the Collateral Agent complete and correct copies of each License described in Schedule II hereto,
including all schedules and exhibits thereto, which sets forth all of the Licenses of the Grantors existing on the date of this Agreement that are material to the conduct of the Grantors’ businesses, and each such License, and any License
entered into in the future that are material to the conduct of the Grantors’ businesses (each such future License together with the Licenses described in Schedule II, a “Material License”) is or will be, as the
case may be, the legal, valid and binding obligation of the parties thereto, enforceable against such parties in accordance with its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. Each License described in Schedule II sets forth the entire agreement
and understanding of the applicable Grantor and, to such Grantor’s knowledge, the other parties thereto relating to the subject matter thereof, and there are no other agreements, arrangements or understandings among such Grantor

  
 12 

 
and any other person, written or oral, relating to the matters covered thereby or the rights of such Grantor or any of its Affiliates in respect thereof. To the Grantors’ knowledge, no
default under any Material License by any such party has occurred, nor does any defense, offset, deduction or counterclaim exist thereunder in favor of any such party, except as would not be material to the interests of the Collateral Agent (for
itself and for the benefit of the Noteholders). 
 (g) Each Grantor owns and controls, or otherwise possesses adequate rights to use, all of
its Intellectual Property, which is the only Intellectual Property necessary to conduct its business in substantially the same manner as conducted as of the date hereof. Schedule II hereto sets forth a true and complete list of all
Intellectual Property (that is registered or subject to applications for registration) and Material Licenses owned or used by each Grantor as of the date hereof, and applications for grant or registration of Intellectual Property. Except as set
forth in Schedule II, to the knowledge of each Grantor, all such Intellectual Property of such Grantor is subsisting and in full force and effect, has not been adjudged invalid or unenforceable, is valid and enforceable and has not been
abandoned in whole or in part. Except as set forth in Schedule II, no such Intellectual Property is the subject of any licensing or franchising agreement. Except as set forth in Schedule II, (i) to the knowledge of each
Grantor, no Grantor is infringing or in conflict with any Patent, Trademark, Copyright, trade secret or similar rights of others, and (ii) to the knowledge of each Grantor, no other Person is now infringing or in conflict in any respect with
any such properties, assets and rights owned or used by each Grantor. As of the date hereof, no Grantor has received any material notice that it is violating or has violated the Trademarks, Patents, Copyrights, inventions, trade secrets, proprietary
information and technology, know-how, formulae, rights of publicity or other intellectual property rights of any third party. 
 (h) Each
Grantor is and will be at all times the sole and exclusive owner of the Collateral pledged by such Grantor hereunder (except for certain Intellectual Property rights of the Company which are jointly owned by the Company with third parties as
described on Schedule II hereto), free and clear of any Liens, except for Permitted Liens thereon. As of the date hereof, no effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on
file in any recording or filing office except such as (i) may have been filed in favor of the Collateral Agent and/or the Noteholders relating to this Agreement or the other Transaction Documents, and (ii) are securing Permitted Liens and
disclosed on Schedule VII hereto. 
 (i) The exercise by the Collateral Agent of any of its rights and remedies hereunder will not
contravene in any material respect any law or any contractual restriction binding on or otherwise affecting each Grantor or any of its properties, and will not result in or require the creation of any Lien (other than Permitted Liens) upon or with
respect to any of the Grantors’ properties. 
 (j) No authorization or approval or other action by, and no notice to or filing with,
any Governmental Authority or any other Person, is required for (i) the due execution, delivery and performance by any Grantor of this Agreement, (ii) the grant by each Grantor of the security interest purported to be created hereby in the
Collateral, or (iii) the exercise by the 

  
 13 

 
Collateral Agent of any of its rights and remedies hereunder, except, in the case of clause (iii), (A) for recordings, registrations and filings in connection with the Liens granted to the
Collateral Agent under the Security Documents, (B) as may be required in connection with the disposition of any portion of the Pledged Equity by laws affecting the offering and sale of securities generally, (C) as required under the Code
or other applicable law, (D) for any approvals that may be required to be obtained from any bailees or landlords to collect the Collateral and (E) those obtained or made on or prior to the Closing Date. 

(k) No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person, is
required for the perfection of the security interest purported to be created hereby in the Collateral, except for (i) the filing under the Code as in effect in the applicable jurisdiction of the financing statements described on Schedule
V hereto, all of which financing statements have been delivered to the Collateral Agent in appropriate form for filing, (ii) with respect to all Pledged Accounts and all cash and other property from time to time deposited therein, the
execution of a Controlled Account Agreement with the depository or other institution with which the applicable Pledged Accounts are maintained, as provided in Section 5(i), (iii) with respect to Commodity Contracts, the execution of a
Control Agreement with the commodity intermediary with which such Commodity Contract is carried, (iv) with respect to the perfection of the security interest created hereby in the United States Intellectual Property and Licenses for which
filings under the Code are insufficient, the recording of the appropriate Intellectual Property Security Agreement in the United States Patent and Trademark Office or the United States Copyright Office, as applicable, (v) with respect to the
perfection of the security interest created hereby in foreign Intellectual Property and Licenses, registrations and filings in jurisdictions located outside of the United States and covering rights in such jurisdictions relating to such foreign
Intellectual Property and Licenses, (vi) with respect to the perfection of the security interest created hereby in any Letter-of-Credit Rights, consent in an authenticated writing of the issuer of the applicable letter of credit to the
assignment of proceeds as provided in the Code as in effect in the applicable jurisdiction, (vii) with respect to Investment Property constituting uncertificated securities, either (A) the issuer thereof registering the Collateral Agent as
the registered owner of such securities or (B) the execution of a Control Agreement with the securities intermediary with which such uncertificated securities are carried, (viii) with respect to Investment Property constituting
certificated securities or instruments, subject to the time period set forth in Section 4(ee) of the Securities Purchase Agreement, delivery thereof to the Collateral Agent in suitable form for transfer by delivery or accompanied by duly
executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Collateral Agent, (ix) with respect to any actions that may be necessary to obtain control of Collateral constituting Electronic Chattel
Paper, the taking of such actions, (x) in the case of any hereafter acquired Commercial Tort Claim, notice of such Commercial Tort Claim pursuant to Section 5(a) and (xi) the Collateral Agent having and maintaining possession of all
Documents, Chattel Paper, cash, and Instruments constituting Collateral (subclauses (i) through (xi) each a “Perfection Requirement” and collectively, the “Perfection Requirements”). 

(l) This Agreement creates in favor of the Collateral Agent a legal, valid and enforceable security interest in the Collateral, as security
for the Secured Obligations. The 

  
 14 

 
performance of the Perfection Requirements results in the perfection of such security interest in the Collateral. Such security interest is (or in the case of Collateral in which each Grantor
obtains rights after the date hereof, will be), subject only to Permitted Liens and performance of the Perfection Requirements, a first priority, perfected security interest in all Collateral of each Grantor, as security for the Secured Obligations.
To the extent required under this Agreement and the other Transaction Documents, such recordings and filings and other action necessary to perfect and protect such security interest have been duly taken or will be taken in accordance with the terms
of the Transaction Documents. 
 (m) As of the date hereof, no Grantor holds any Commercial Tort Claims or has knowledge of any pending
Commercial Tort Claims, except for the Commercial Tort Claims described in Schedule VI. 
 (n) All of the Pledged Equity is presently
owned by the applicable Grantor as set forth in Schedule IV, and is presently represented by the certificates listed on Schedule IV hereto (if applicable). As of the date hereof, there are no existing options, warrants, calls or
commitments of any character whatsoever relating to the Pledged Equity other than as contemplated and permitted by the Transaction Documents. As of the date hereof, each Grantor is the sole holder of record and the sole beneficial owner of the
Pledged Equity, as applicable. None of the Pledged Equity has been issued or transferred in violation of the securities registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject. The
Pledged Equity constitutes 100% or such other percentage as set forth on Schedule IV of the issued and outstanding shares of Capital Stock of the applicable Pledged Entity. 

(o) Such Grantor (i) is a corporation, limited liability company or limited partnership, as applicable, duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation, organization or formation, (ii) has all requisite corporate, limited liability company or limited partnership power and authority to conduct its business as now
conducted and as presently contemplated and to execute and deliver this Agreement and each other Transaction Document to which such Grantor is a party, and to consummate the transactions contemplated hereby and thereby and (iii) is duly
qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except where the failure to be so
qualified would not result in a Material Adverse Effect (as defined in the Securities Purchase Agreement). 
 (p) The execution, delivery
and performance by each Grantor of this Agreement and each other Transaction Document to which such Grantor is a party (i) have been duly authorized by all necessary corporate, limited liability company or limited partnership action,
(ii) do not and will not contravene its charter or by-laws, limited liability company or operating agreement, certificate of partnership or partnership agreement, as applicable, or any applicable law or any contractual restriction binding on
such Grantor or its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Transaction Document) upon or with respect to any of its assets or properties, and (iv) do not and will not

  
 15 

 
result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to it or its operations or
any of its assets or properties. 
 (q) This Agreement and each of the other Transaction Documents to which any Grantor is or will be a
party, when delivered, will be, a legal, valid and binding obligation of such Grantor, enforceable against such Grantor in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, suretyship or other similar laws and equitable principles (regardless of whether enforcement is sought in equity or at law). 

(r) There are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived. 

  
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 SECTION 5. Covenants as to the Collateral. So long as any of the Secured Obligations
shall remain outstanding, unless the Collateral Agent shall otherwise consent in writing: 
 (a) Further Assurances. Each Grantor will, at
its expense, at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that the Collateral Agent may reasonably request in order to: (i) perfect and protect the security
interest of the Collateral Agent created hereby; (ii) enable the Collateral Agent to exercise and enforce its rights and remedies hereunder in respect of the Collateral, including, without limitation, the Controlled Accounts; or
(iii) otherwise effect the purposes of this Agreement, including, without limitation: (A) marking conspicuously all Chattel Paper and each License and, at the request of the Collateral Agent, each of its Records pertaining to the
Collateral with a legend, in form and substance reasonably satisfactory to the Collateral Agent, indicating that such Chattel Paper, License or Collateral is subject to the security interest created hereby, (B) delivering and pledging to the
Collateral Agent each Promissory Note, Security (subject to the limitations set forth in Section 2), Chattel Paper or other Instrument in excess of $25,000, now or hereafter owned by any Grantor, duly endorsed and accompanied by executed
instruments of transfer or assignment, all in form and substance reasonably satisfactory to the Collateral Agent, (C) executing and filing (to the extent, if any, that any Grantor’s signature is required thereon) or authenticating the
filing of, such financing or continuation statements, or amendments thereto, as may be necessary or that the Collateral Agent may reasonably request in order to perfect and preserve the security interest created hereby, (D) furnishing to the
Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral in each case as the Collateral Agent may reasonably request, all in reasonable
detail; provided, that prior to the occurrence of an Event of Default, the Collateral Agent shall only be entitled to one such request per calendar quarter, (E) if any Collateral shall be in the possession of a third party, notifying such
Person of the Collateral Agent’s security interest created hereby and using its best efforts to obtain a written acknowledgment from such Person, in form and substance reasonably satisfactory to the Collateral Agent, that such Person holds
possession of the Collateral for the benefit of the Collateral Agent (for the benefit the Noteholders), (F) if at any time after the date hereof, any Grantor acquires or holds any Commercial Tort Claim in excess of $100,000, promptly notifying
the Collateral Agent in a writing signed by such Grantor setting forth a brief description of such Commercial Tort Claim and granting to the Collateral Agent a security interest therein and in the proceeds thereof, which writing shall incorporate
the provisions hereof and shall be in form and substance reasonably satisfactory to the Collateral Agent; (G) upon the acquisition after the date hereof by any Grantor of any motor vehicle or other Equipment subject to a certificate of title or
ownership (other than a motor vehicle or Equipment that is subject to a purchase money security interest) valued in excess of $25,000, causing the Collateral Agent to be listed as the lienholder on such certificate of title or ownership and
delivering evidence of the same to the Collateral Agent in accordance with Section 5(j) hereof; and (H) taking all actions required by the Code or by other law, as applicable, in any relevant Code jurisdiction. 

(b) Location of Collateral. Each Grantor will keep Equipment, Fixtures, Goods and Inventory valued in excess of $25,000 (individually
or in the aggregate) at the locations specified therefor on Schedule III hereto, or (ii) at such other locations set forth on Schedule III, or (iii) at such other locations in the United States, provided that, 20 days
prior to 

  
 17 

 
any change in the location of any Equipment, Fixtures, Goods or Inventory (except for Equipment or Inventory in transit, out for repair, in the process of being sold, transferred or otherwise
disposed of in a transaction permitted under the Transaction Documents) to such other location, or upon the acquisition of any Equipment, Fixtures, Goods or Inventory valued in excess of $25,000 to be kept at such other locations, the Grantors shall
give the Collateral Agent written notice thereof and deliver to the Collateral Agent a new Schedule III indicating such new locations and such other written statements and schedules as the Collateral Agent may reasonably require. 

(c) Condition of Equipment. Each Grantor will maintain or cause to be maintained and preserved in good condition, repair and working
order, ordinary wear and tear excepted, the Equipment necessary or useful to its business and will forthwith, or in the case of any loss or damage to any Equipment of any Grantor within a commercially reasonable time after the occurrence thereof,
make or cause to be made all repairs, replacements and other improvements in connection therewith which are necessary or desirable, consistent with past practice, or which the Collateral Agent may reasonably request in writing to such end. Any
Grantor will promptly furnish to the Collateral Agent a statement describing in reasonable detail any such loss or damage in excess of $25,000 per occurrence to any Equipment. 

(d) Taxes, Etc. Each Grantor agrees to pay promptly when due all property and other taxes, assessments and governmental charges or
levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Equipment and Inventory, except to the extent the validity thereof is being contested in good faith by proper proceedings which stay the imposition
of any penalty, fine or Lien (other than Permitted Liens) resulting from the non-payment thereof and with respect to which adequate reserves in accordance with GAAP have been set aside for the payment thereof. 

(e) Insurance. 
 (i) Each
Grantor will, at its own expense, maintain insurance (including, without limitation, comprehensive general liability, hazard, rent and business interruption insurance) with respect to its properties (including all real properties leased or owned by
it) and business, in such amounts and covering such risks, in such form and with responsible and reputable insurance companies or associations as is required by any Governmental Authority having jurisdiction with respect thereto or as is carried
generally in accordance with sound business practice by companies in similar businesses similarly situated and in any event, in amount, adequacy and scope reasonably satisfactory to the Collateral Agent. 

(ii) To the extent requested by the Collateral Agent in writing at any time and from time to time, each such policy for liability insurance
shall provide for all losses to be payable on behalf of the Collateral Agent and any Grantor as their respective interests may appear, and each policy for property damage insurance shall provide for all losses to be adjusted with, and paid directly
to, the Collateral Agent. In addition to and without limiting the foregoing, to the extent requested by the Collateral Agent at any time and from time to time, each such policy shall in addition (A) name the Collateral Agent as an additional
insured party and/or loss payee, as applicable, thereunder (without any representation or warranty by or obligation upon the Collateral Agent) as its interests may appear, (B) contain an agreement by

  
 18 

 
the insurer that any loss thereunder shall be payable to the Collateral Agent on its own account notwithstanding any action, inaction or breach of representation or warranty by any Grantor,
(C) provide that there shall be no recourse against the Collateral Agent for payment of premiums or other amounts with respect thereto, and (D) provide that at least 30 days’ prior written notice of cancellation, lapse, expiration or
other adverse change shall be given to the Collateral Agent by the insurer. Any Grantor will, if so requested in writing by the Collateral Agent, deliver to the Collateral Agent original or duplicate policies of such insurance (including
certificates demonstrating compliance with this Section 5(e)) and, as often as the Collateral Agent may reasonably request in writing (which shall be no more than once in any calendar year prior to the occurrence of an Event of Default), a
report of a reputable insurance broker with respect to such insurance. Any Grantor will also, at the written request of the Collateral Agent, execute and deliver instruments of assignment of such insurance policies and use reasonable best efforts to
cause the respective insurers to acknowledge notice of such assignment. 
 (iii) Reimbursement under any liability insurance maintained by
any Grantor pursuant to this Section 5(e) may be paid directly to the Person who shall have incurred liability covered by such insurance. In the case of any loss involving damage to Equipment or Inventory, to the extent paragraph
(iv) of this Section 5(e) is not applicable, any proceeds of insurance involving such damage shall be paid to the Collateral Agent, and any Grantor will make or cause to be made the necessary repairs to or replacements of such
Equipment or Inventory, and any proceeds of insurance maintained by any Grantor pursuant to this Section 5(e) (except as otherwise provided in paragraph (iv) in this Section 5(e)) shall be paid by the Collateral Agent to
any Grantor as reimbursement for the reasonable costs of such repairs or replacements. 
 (iv) Notwithstanding anything to the contrary in
subsection 5(e)(iii) above, following and during the continuance of an Event of Default, all insurance payments in respect of each Grantor’s properties and business shall be paid to the Collateral Agent and applied as specified in
Section 7(b) hereof. 
 (f) Provisions Concerning the Accounts and the Licenses. 

(i) Each Grantor will (A) give the Collateral Agent at least 30 days’ prior written notice of any change in such Grantor’s
name, identity or organizational structure, (B) maintain its jurisdiction of incorporation, organization or formation as set forth in Schedule I hereto, (C) promptly notify the Collateral Agent upon obtaining an organizational
identification number, if on the date hereof such Grantor did not have such identification number, and (D) keep adequate records concerning the Collateral and permit representatives of the Collateral Agent during normal business hours on
reasonable notice to such Grantor, to inspect and make abstracts from such records. 
 (ii) Each Grantor will (except as otherwise provided
in this subsection (f)), continue to collect, at its own expense, all amounts due or to become due under the Accounts. In connection with such collections, any Grantor may (and, at the reasonable direction of the Collateral Agent, will) take
such action as any Grantor or the Collateral Agent may reasonably deem necessary or advisable to enforce collection or performance of the Accounts; provided, however, that the Collateral Agent shall have the right, at any time

  
 19 

 
following the occurrence and during the continuance of an Event of Default, to notify the Account Debtors or obligors under any Accounts of the assignment of such Accounts to the Collateral Agent
and to direct such Account Debtors or obligors to make payment of all amounts due or to become due to any Grantor thereunder directly to the Collateral Agent or its designated agent and, upon such notification and at the expense of any Grantor and
to the extent permitted by applicable law, to enforce collection of any such Accounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as any Grantor might have done. After receipt by any
Grantor of a notice from the Collateral Agent that the Collateral Agent has notified, intends to notify, or has enforced or intends to enforce any Grantor’s rights against the Account Debtors or obligors under any Accounts in accordance with
the proviso to the immediately preceding sentence, (A) all amounts and proceeds (including Instruments) received by any Grantor in respect of the Accounts shall be received in trust for the benefit of the Collateral Agent hereunder (for the
benefit the Noteholders), shall be segregated from other funds of any Grantor and shall be forthwith paid over to the Collateral Agent in the same form as so received (with any necessary endorsement) to be applied as specified in
Section 7(b) hereof, and (B) no Grantor will adjust, settle or compromise the amount or payment of any Account or release wholly or partly any Account Debtor or obligor thereof or allow any credit or discount thereon. In addition,
upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may (in its sole and absolute discretion) direct any or all of the banks and financial institutions with which any Grantor either maintains a Deposit Account
(other than Excluded Accounts) or a lockbox (including, without limitation, any Controlled Account) or deposits the proceeds of any Accounts to send promptly to the Collateral Agent by wire transfer (to such deposit account as the Collateral Agent
shall specify, or in such other manner as the Collateral Agent shall direct) all or a portion of such securities, cash, investments and other items held by such institution (other than amounts held in Excluded Accounts). Any such securities, cash,
investments and other items so received by the Collateral Agent shall be applied as specified in accordance with Section 7(b) hereof. 

(iii) Upon the occurrence and during the continuance of any breach or default under any Material License referred to in Schedule II
hereto by any party thereto other than any Grantor, each Grantor party thereto will, promptly after obtaining knowledge thereof, give the Collateral Agent written notice of the nature and duration thereof, specifying what action, if any, it has
taken and proposes to take with respect thereto and thereafter will take reasonable steps to protect and preserve its rights and remedies in respect of such breach or default, or will use reasonable best efforts to obtain or acquire an appropriate
substitute License. 
 (iv) Each Grantor will, at its expense, promptly deliver to the Collateral Agent a copy of each notice or other
communication received by it by which any other party to any Material License referred to in Schedule II hereto purports to exercise any of its rights or affect any of its obligations thereunder, together with a copy of any reply by such
Grantor thereto. 
 (v) Each Grantor will exercise promptly and diligently any right which it may have under any Material License (other
than any right of termination) that, in such Grantor’s business judgment, is necessary or beneficial to the conduct of such Grantor’s business, and will use its best efforts to duly perform and observe in all respects all of its
obligations under each Material License and will take all reasonably necessary actions to 

  
 20 

 
maintain such Material Licenses in full force and effect. No Grantor will, without the prior written consent of the Collateral Agent, cancel, terminate, amend or otherwise modify in any respect,
or waive any material provision of any Material License referred to in Schedule II hereto. 
 (g) Transfers and Other Liens.

 (i) Except as otherwise expressly permitted in the other Transaction Documents, no Grantor shall, directly or indirectly, sell, lease,
license, assign, transfer, spin-off, split-off, close, convey or otherwise dispose of any Collateral that is material to the conduct of such Grantor’s business, whether in a single transaction or a series of related transactions, other than
(A) sales, leases, licenses, assignments, transfers, conveyances and other dispositions of such assets or rights by such Grantor for value in the ordinary course of business consistent with past practices and (B) sales of Inventory and
product in the ordinary course of business. 
 (ii) Except as permitted under Section 14(e) of the Notes, no Grantor shall, directly
or indirectly, redeem, repurchase or declare or pay any cash dividend or distribution on any of its Capital Stock. 
 (iii) No Grantor
shall, directly or indirectly, without the prior written consent of the Required Holders, (A) issue any Notes (other than as contemplated by the Securities Purchase Agreement and the Notes) or (B) issue any other securities that would
cause a breach or default under the Notes. 
 (iv) No Grantor shall enter into, renew, extend or be a party to, any transaction or series
of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets of any kind or the rendering of services of any kind) with any Affiliate, except in the ordinary course of business in a
manner and to an extent consistent with past practice and necessary or desirable for the prudent operation of its business, for fair consideration and on terms no less favorable to it than would be obtainable in a comparable arm’s length
transaction with a Person that is not an Affiliate thereof. 
 (v) No Grantor will create, suffer to exist or grant any Lien upon or with
respect to any Collateral other than Permitted Liens. 
 (h) Intellectual Property. 

(i) Each Grantor with Collateral consisting of Intellectual Property shall duly execute and deliver the applicable Intellectual Property
Security Agreement. Each Grantor (either itself or through licensees) will, and will use its best efforts to cause each licensee thereof to, take all actions necessary to maintain all of the Intellectual Property in full force and effect, including,
without limitation, using the proper statutory notices, numbers and markings (relating to patent, trademark and copyright rights) and using the Trademarks on each applicable trademark class of goods in order to so maintain the Trademarks in full
force and free from any claim of abandonment for non-use, and, except as otherwise disclosed on Schedule II, each Grantor will not (nor permit any licensee thereof to) do any act or knowingly omit to do any act whereby any Intellectual
Property may become abandoned, cancelled or invalidated; provided, however, that so long as no Event of Default has occurred and is continuing, no Grantor shall 

  
 21 

 
have an obligation to use or to maintain any Intellectual Property (A) that relates solely to any product or work, that is no longer necessary or material and has been, or is in the process
of being, discontinued, abandoned or terminated in the ordinary course of business and consistent with the exercise of reasonable business judgment, (B) that is being replaced with Intellectual Property substantially similar to the Intellectual
Property that may be abandoned or otherwise become invalid, so long as the failure to use or maintain such Intellectual Property does not materially adversely affect the validity of such replacement Intellectual Property and so long as such
replacement Intellectual Property is subject to the Lien created by this Agreement and does not have a material adverse effect on the business of any Grantor or (C) that is substantially the same as another Intellectual Property that is in full
force, so long the failure to use or maintain such Intellectual Property does not materially adversely affect the validity of such replacement Intellectual Property and so long as such other Intellectual Property is subject to the Lien and security
interest created by this Agreement and does not have a material adverse effect on the business of any Grantor. Each Grantor will use reasonable best efforts in any proceeding before the United States Patent and Trademark Office and the United States
Copyright Office or any similar office or agency in any other country or political subdivision thereof to maintain each registration of the Intellectual Property and application for registration of Intellectual Property (other than the Intellectual
Property described in the proviso to the immediately preceding sentence), including, without limitation, filing of renewals, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings and payment of
maintenance fees, filing fees, taxes or other governmental fees. If any Intellectual Property (other than Intellectual Property described in the proviso to the second sentence of subsection (i) of this clause (h)) is infringed, misappropriated,
diluted or otherwise violated in any material respect by a third party, each Grantor shall (x) upon learning of such infringement, misappropriation, dilution or other violation, promptly notify the Collateral Agent and (y) promptly sue for
infringement, misappropriation, dilution or other violation, seek injunctive relief where appropriate and recover any and all damages for such infringement, misappropriation, dilution or other violation, or take such other actions as such Grantor
shall deem appropriate under the circumstances to protect such Intellectual Property. Each Grantor shall furnish to the Collateral Agent from time to time upon its reasonable request (which shall be no more than once in any calendar quarter prior to
the occurrence of an Event of Default) statements and schedules further identifying and describing the Intellectual Property and Licenses and such other reports in connection with the Intellectual Property and Licenses as the Collateral Agent may
reasonably request, all in reasonable detail and promptly upon request of the Collateral Agent, following receipt by the Collateral Agent of any such statements, schedules or reports, each Grantor shall modify this Agreement by amending Schedule
II hereto, as the case may be, to include any Intellectual Property and License, as the case may be, which is or hereafter becomes part of the Collateral under this Agreement and shall execute and authenticate such documents and do such acts as
shall be necessary or, in the reasonable judgment of the Collateral Agent, desirable to subject such Intellectual Property and Licenses to the Lien and security interest created by this Agreement. Notwithstanding anything herein to the contrary,
upon the occurrence and during the continuance of an Event of Default, no Grantor may abandon, surrender or otherwise permit any Intellectual Property to become abandoned, cancelled or invalid without the prior written consent of the Collateral
Agent, and if any Intellectual Property is infringed, misappropriated, diluted or otherwise violated in any material respect by a third party, each Grantor will take such reasonable action as the Collateral Agent shall deem appropriate under the
circumstances to protect such Intellectual Property. 

  
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 (ii) In no event shall any Grantor, either itself or through any agent, employee, licensee or
designee, file an application for the registration of any Patent, Trademark or Copyright or the United States Copyright Office or the United States Patent and Trademark Office, as applicable, or in any similar office or agency of the United States
or any country or any political subdivision thereof unless it gives the Collateral Agent prior written notice thereof. Upon request of the Collateral Agent, any Grantor shall execute, authenticate and deliver any and all assignments, agreements,
instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest hereunder in such Intellectual Property and the General Intangibles of any Grantor relating thereto or
represented thereby, and each Grantor hereby appoints the Collateral Agent its attorney-in-fact to execute and/or authenticate and file all such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed, and
such power (being coupled with an interest) shall be irrevocable until all Secured Obligations are Paid in Full. 
 (i) Pledged Accounts.
 
 (A) Each Grantor shall enter into a Controlled Account Agreement with the Collateral Agent and each bank and other financial
institution which maintains a Controlled Account (each a “Controlled Account Bank”), in form and substance reasonably satisfactory to the Collateral Agent and the Required Holders (as defined in the Securities Purchase Agreement).
Each such Controlled Account Agreement shall provide, among other things, that (A) with respect to any Master Restricted Accounts, upon instruction of the Holder after the occurrence and during the continuance of any Event of Default (a
“Master Restricted Account Activation Instruction”), the Controlled Account Bank (x) subject to the terms and conditions of such Controlled Account Agreement, shall comply with any and all instructions of the Applicable Holder
(as defined below) directing the disposition of funds in the Master Restricted Account without further consent of the Company (which, for the avoidance of doubt, pursuant to Section 4(ff) of the Securities Purchase Agreement, shall only be
provided by the Applicable Holder to the Controlled Account Bank with the written consent of the Company unless an Event of Default has occurred and is continuing), and (y) shall not comply with any instructions, directions or orders of any
form with respect to such Master Restricted Account other than instructions, directions or orders originated solely by the Applicable Holder (and the Company’s signature or consent shall not be required for the applicable Controlled Account
Bank to comply with any such instructions, directors or orders) and (B) with respect to each Controlled Account (other than any Master Restricted Accounts) (collectively, the “Operating Accounts”) upon the instruction of
Collateral Agent after the occurrence and during the continuance of an Event of Default (an “Activation Instruction”), the Controlled Account Bank (x) subject to the terms and conditions of such Controlled Account Agreement,
shall comply with any and all instructions of the Collateral Agent directing the disposition of the funds in the Operating Accounts without further consent of the Company or any applicable Domestic Subsidiary and (y) shall not comply with any
instructions, directions or orders of any form with respect to the Operating Accounts other than instructions, directions or orders originated by Collateral Agent (and the Company’s signature or consent shall not be required for the applicable
Controlled Account Bank to comply with any such instructions, directors or orders). No Grantor 

  
 23 

 
shall create or maintain any Pledged Account other than the Pledged Accounts set forth on Schedule IV hereto without the prior written consent of the Collateral Agent and complying with the terms
of this Agreement. 
 (B) If at any time on or after the tenth (10th) Trading Day after the Closing Date, the average daily balance of
any account of the Company or any of its Domestic Subsidiaries that is not subject to a Controlled Account Agreement, in form and substance reasonably satisfactory to the Collateral Agent and the Required Holders (as defined in the Securities
Purchase Agreement), in favor of the Collateral Agent (other than Excluded Accounts (as defined in the Security Agreement)) exceeds $50,000 (the “Maximum Per Account Free Cash Amount”) during any calendar month (including the
calendar month in which the Closing Date occurs), the Company shall either (x) within twenty-one (21) calendar days following the last day of such calendar month, deliver to the Collateral Agent a Controlled Account Agreement, in form and
substance reasonably satisfactory to the Collateral Agent, duly executed by the Company and the depositary bank in which such Account is maintained or (y) within two (2) Business Days following such date, effect a transfer to a Controlled
Account of a cash amount sufficient to reduce the amount of the Company’s or the applicable Domestic Subsidiary’s cash held in such Account to an amount not in excess of the Maximum Per Account Free Cash Amount. 

(C) Notwithstanding anything to the contrary contained in paragraph (B) above, and without limiting any of the foregoing, if at any time
on or after the date that is twenty-one (21) calendar days following the Closing Date, the total aggregate amount of the Company’s and any of its Domestic Subsidiaries’ cash that is not held in a Controlled Account (other than
Excluded Accounts) exceeds $50,000 (the “Maximum Free Cash Amount”), the Company shall within two (2) Business Days following such date, effect a transfer to a Controlled Account of a cash amount sufficient to reduce the total
aggregate amount of the Company’s and its Domestic Subsidiaries’, as applicable, cash that is not held in a Controlled Account to an amount not in excess of the Maximum Free Cash Amount. 

(D) Neither the Company nor any of its Domestic Subsidiaries shall, directly or indirectly, move, pay, wire, contribute or otherwise transfer
any cash or cash equivalents (each, a “Cash Transfer”) to any Foreign Subsidiary (as defined in the Security Agreement) if after giving effect to such Cash Transfer the total aggregate amount of cash and cash equivalents as of the
time of such Cash Transfer held by all direct and indirect Foreign Subsidiaries of the Company exceeds $250,000 (each, a “Prohibited Foreign Transfer”). 

(j) Motor Vehicles. 
 (i)
Upon the Collateral Agent’s written request, each Grantor shall deliver to the Collateral Agent originals of the certificates of title or ownership for each motor vehicle with a value in excess of $25,000 owned by it, with the Collateral Agent
listed as lienholder, for the benefit of the Noteholders. 
 (ii) Each Grantor hereby appoints the Collateral Agent as its
attorney-in-fact, effective the date hereof and terminating upon the termination of this Agreement, for the purpose of (A) executing on behalf of such Grantor title or ownership applications for filing with

  
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appropriate Governmental Authorities to enable motor vehicles now owned or hereafter acquired by such Grantor to be retitled and the Collateral Agent listed as lienholder thereof, (B) filing
such applications with such Governmental Authorities, and (C) executing such other agreements, documents and instruments on behalf of, and taking such other action in the name of, such Grantor as the Collateral Agent may deem necessary or
advisable to accomplish the purposes hereof (including, without limitation, for the purpose of creating in favor of the Collateral Agent a perfected Lien on the motor vehicles and exercising the rights and remedies of the Collateral Agent
hereunder). This appointment as attorney-in-fact is coupled with an interest and is irrevocable until all of the Obligations are Paid in Full. 

(iii) Any certificates of title or ownership delivered pursuant to the terms hereof shall be accompanied by odometer statements for each
motor vehicle covered thereby. 
 (iv) So long as no Event of Default shall have occurred and be continuing, upon the request of any
Grantor, the Collateral Agent shall execute and deliver to any Grantor such instruments as such Grantor shall reasonably request to remove the notation of the Collateral Agent as lienholder on any certificate of title for any motor vehicle;
provided, however, that any such instruments shall be delivered, and the release effective, only upon receipt by the Collateral Agent of a certificate from any Grantor stating that such motor vehicle is to be sold or has suffered a casualty loss
(with title thereto in such case passing to the casualty insurance company therefor in settlement of the claim for such loss) and the amount that any Grantor will receive as sale proceeds or insurance proceeds. Any proceeds of such sale or casualty
loss shall be paid to the Collateral Agent hereunder immediately upon receipt, to be applied to the Obligations then outstanding. 
 (k)
Control. Each Grantor hereby agrees to take any and all action that may be reasonably necessary or that the Collateral Agent may reasonably request in order for the Collateral Agent to obtain “control” in accordance with Sections
9-105 through 9-107 of the Code with respect to the following Collateral: (i) Electronic Chattel Paper, (ii) Investment Property, and (iii) Letter-of-Credit Rights. 

(l) Inspection and Reporting. Each Grantor shall permit the Collateral Agent, or any agent or representatives thereof or such
professionals or other Persons as the Collateral Agent may designate (at Grantors’ sole cost and expense; provided that prior to the occurrence of an Event of Default, no Grantor shall be required to expend funds pursuant to this paragraph more
than once in any calendar year), upon no less than ten days’ notice to such Grantor (i) to examine and make copies of and abstracts from any Grantor’s records and books of account, (ii) to visit and inspect its properties,
(iii) to verify materials, leases, Instruments, Accounts, Inventory and other assets of any Grantor from time to time, and (iv) to conduct audits, physical counts, appraisals and/or valuations, examinations at the locations of any Grantor.
Each Grantor shall also permit the Collateral Agent, or any agent or representatives thereof or such attorneys, accountants or other professionals or other Persons as the Collateral Agent may designate to discuss such Grantor’s affairs,
finances and accounts with any of its directors, officers, managerial employees, independent accountants or any of its other representatives. Without limiting the foregoing, the Collateral Agent may, upon no less than three (3) Business
Days’ notice to the Company, in the Collateral Agent’s own name, in the name of a nominee of the 

  
 25 

 
Collateral Agent, or in the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors of such Grantor, parties to contracts with such Grantor and/or
obligors in respect of Instruments of such Grantor to verify with such Persons, to the Collateral Agent’s satisfaction, the existence, amount, terms of, and any other matter relating to, Accounts, Instruments, Chattel Paper, payment intangibles
and/or other receivables. 
 (m) Future Subsidiaries. If any Grantor hereafter creates or acquires any Subsidiary, substantially
contemporaneously with the creation or acquisition of such Subsidiary, such Grantor shall (i) if such Subsidiary is a Domestic Subsidiary, cause such Subsidiary to become a party to this Agreement as an additional “Grantor” hereunder,
(ii) deliver to the Collateral Agent updated Schedules to this Agreement, as appropriate (including, without limitation, an updated Schedule IV to reflect the grant by such Grantor of a Lien on all Pledged Equity now or hereafter owned
by such Grantor), (iii) if such Subsidiary is a Domestic Subsidiary, cause such Subsidiary to duly execute and deliver a Guaranty in favor of the Collateral Agent, (iv) deliver to the Collateral Agent the stock certificates representing
all of the Capital Stock of such Subsidiary, along with undated stock powers for each such certificates, executed in blank (or, if any such shares of Capital Stock are uncertificated, confirmation and evidence reasonably satisfactory to the
Collateral Agent that the security interest in such uncertificated securities has been transferred to and perfected by the Collateral Agent, in accordance with Sections 8-313, 8-321 and 9-115 of the Code or any other similar or local or foreign law
that may be applicable), and (v) duly execute and/or cause to be delivered to the Collateral Agent, in form and substance acceptable to the Collateral Agent, such opinions of counsel and other documents as the Collateral Agent shall reasonably
request with respect thereto; provided, however, that no Grantor shall be required to pledge any Excluded Collateral. Each Grantor hereby authorizes the Collateral Agent to attach such updated Schedules to this Agreement and agrees that all Pledged
Equity listed on any updated Schedule delivered to the Collateral Agent shall for all purposes hereunder be considered Collateral. The Grantors agree that the pledge of the shares of Capital Stock acquired by a Grantor of any and all Persons now or
hereafter existing who is a Foreign Subsidiary may be supplemented by one or more separate pledge agreements, deeds of pledge, share charges or other similar agreements or instruments, executed and delivered by the relevant Grantors in favor of the
Collateral Agent, which pledge agreements will provide for the pledge of such shares of Capital Stock in accordance with the laws of the applicable foreign jurisdiction. With respect to such shares of Capital Stock, the Collateral Agent may, at any
time and from time to time, in its reasonable discretion and upon prior written notice to the Company, take such actions in such foreign jurisdictions that will result in the perfection of the Lien created in such shares of Capital Stock. 

SECTION 6. Additional Provisions Concerning the Collateral. 

(a) To the maximum extent permitted by applicable law, and for the purpose of taking any action that the Collateral Agent may deem necessary or
advisable to accomplish the purposes of this Agreement, each Grantor hereby (i) authorizes the Collateral Agent to execute any such agreements, instruments or other documents in such Grantor’s name and to file such agreements, instruments
or other documents in such Grantor’s name and in any appropriate filing office, (ii) authorizes the Collateral Agent at any time and from time to time to file, one or more financing or continuation statements, and amendments thereto,
relating to the Collateral (including, without limitation, any such financing statements that (A) describe the Collateral as 

  
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“all assets” or “all personal property” (or words of similar effect) or that describe or identify the Collateral by type or in any other manner as the Collateral Agent may
determine regardless of whether any particular asset of such Grantor falls within the scope of Article 9 of the Code or whether any particular asset of such Grantor constitutes part of the Collateral, and (B) contain any other information
required by Part 5 of Article 9 of the Code for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including, without limitation, whether such Grantor is an organization, the type of
organization and any organizational identification number issued to such Grantor) and (iii) ratifies such authorization to the extent that the Collateral Agent has filed any such financing or continuation statements, or amendments thereto,
prior to the date hereof. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law. 

(b) Each Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact and proxy, with full authority in the place and
stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral Agent’s reasonable discretion (but subject to the provisions of Section 6(g)(i) herein), to take any action not prohibited hereunder
and to execute any instrument which the Collateral Agent may reasonably deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, (i) to obtain and adjust insurance required to be paid to the
Collateral Agent pursuant to Section 5(e) hereof, (ii) to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any Collateral,
(iii) to receive, endorse, and collect any drafts or other instruments, documents and chattel paper in connection with clause (i) or (ii) above, (iv) to file any claims or take any action or institute any proceedings which the
Collateral Agent may deem necessary or desirable for the collection of any Collateral or otherwise to enforce the rights of the Collateral Agent and the Noteholders with respect to any Collateral, (v) to execute assignments, licenses and other
documents to enforce the rights of the Collateral Agent and the Noteholders with respect to any Collateral, and (vi) to verify any and all information with respect to any and all Accounts. This power is coupled with an interest and is
irrevocable until all of the Secured Obligations are Paid in Full. 
 (c) For the purpose of enabling the Collateral Agent to exercise
rights and remedies hereunder, at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent assignable, an
irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to any Grantor) to use, assign, license or sublicense any Intellectual Property (other than Excluded Collateral) now owned or hereafter acquired by such
Grantor, wherever the same may be located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout thereof.
Notwithstanding anything contained herein to the contrary, but subject to the provisions of the Securities Purchase Agreement that limit the right of any Grantor to dispose of its property, and Section 5(g) and Section 5(h)
hereof, so long as no Event of Default shall have occurred and be continuing, any Grantor may exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary
course of its business and as otherwise expressly permitted by any of the other Transaction Documents. In furtherance of the foregoing, unless an Event of Default shall have occurred and be continuing, the Collateral Agent shall from time to

  
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time, upon the request of any Grantor, execute and deliver any instruments, certificates or other documents, in the form so requested, which such Grantor shall have certified are appropriate (in
such Grantor’s judgment) to allow it to take any action permitted above (including relinquishment of the license provided pursuant to this clause (c) as to any Intellectual Property). Further, upon the Payment in Full of all of the Secured
Obligations, the Collateral Agent (subject to Section 10(e) hereof) shall release and reassign to any Grantor all of the Collateral Agent’s right, title and interest in and to the Intellectual Property, and the Licenses, all without
recourse, representation or warranty whatsoever. The exercise of rights and remedies hereunder by the Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by each Grantor in accordance
with the second sentence of this clause (c). To the extent permitted under applicable law, each Grantor hereby releases the Collateral Agent from any claims, causes of action and demands at any time arising out of or with respect to any actions
taken or omitted to be taken by the Collateral Agent under the powers of attorney granted herein other than actions taken or omitted to be taken through the Collateral Agent’s gross negligence or willful misconduct, as determined by a final
determination of a court of competent jurisdiction. 
 (d) If any Grantor fails to perform any agreement or obligation contained herein, the
Collateral Agent may itself perform, or cause performance of, such agreement or obligation, in the name of such Grantor or the Collateral Agent, and the reasonable and documented out-of-pocket expenses of the Collateral Agent incurred in connection
therewith shall be payable by such Grantor pursuant to Section 8 hereof and shall be secured by the Collateral. 
 (e) The
powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any
Collateral. 
 (f) Anything herein to the contrary notwithstanding (i) each Grantor shall remain liable under the Licenses and
otherwise with respect to any of the Collateral to the extent set forth therein to perform all of its obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the exercise by the Collateral Agent of any of its
rights hereunder shall not release any Grantor from any of its obligations under the Licenses or otherwise in respect of the Collateral, and (iii) the Collateral Agent shall not have any obligation or liability by reason of this Agreement under
the Licenses or with respect to any of the other Collateral, nor shall the Collateral Agent be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned
hereunder. 
 (g) As long as no Event of Default shall have occurred and be continuing and until written notice shall be given to the
applicable Grantor: 
 (i) Each Grantor shall have the right, from time to time, to vote and give consents with respect to the Pledged
Equity, or any part thereof for all purposes not 

  
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inconsistent with the provisions of this Agreement, the Securities Purchase Agreement or any other Transaction Document; provided, however, that no vote shall be cast, and no consent shall be
given or action taken, which would have the effect of impairing the position or interest of the Collateral Agent in respect of the Pledged Equity or which would authorize, effect or consent to (unless and to the extent expressly permitted by the
Securities Purchase Agreement): 
 (A) the dissolution or liquidation, in whole or in part, of a Pledged Entity; 

(B) the consolidation or merger of a Pledged Entity with any other Person; 

(C) the sale, disposition or encumbrance of all or substantially all of the assets of a Pledged Entity, except for Liens in
favor of the Collateral Agent; 
 (D) any change in the authorized number of shares, the stated capital or the authorized
share capital of a Pledged Entity or the issuance of any additional shares of its Capital Stock; or 
 (E) the alteration of
the voting rights with respect to the Capital Stock of a Pledged Entity. 
 (h) (i) Each Grantor shall be entitled, from time to time, to
collect and receive for its own use all cash dividends and interest paid in respect of the Pledged Equity to the extent not in violation of the Securities Purchase Agreement other than any and all: (A) dividends and interest paid or payable
other than in cash in respect of any Pledged Equity, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Pledged Equity; (B) dividends and other distributions paid or payable
in cash in respect of any Pledged Equity in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in capital of a Pledged Entity; and (C) cash paid, payable or
otherwise distributed, in respect of principal of, or in redemption of, or in exchange for, any Pledged Equity; provided, however, that until actually paid all rights to such distributions shall remain subject to the Lien created by this Agreement;
and 
 (ii) all dividends and interest (other than such cash dividends and interest as are permitted to be paid to any Grantor in
accordance with clause (i) above) and all other distributions in respect of any of the Pledged Equity, whenever paid or made, shall be delivered to the Collateral Agent to hold as Pledged Equity and shall, if received by any Grantor, be
received in trust for the benefit of the Collateral Agent (for the benefit the Noteholders), be segregated from the other property or funds of such Grantor, and be forthwith delivered to the Collateral Agent as Pledged Equity in the same form as so
received (with any necessary endorsement). 

  
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 SECTION 7. Remedies Upon Event of Default; Application of Proceeds. If any Event of
Default shall have occurred and be continuing: 
 (a) The Collateral Agent may exercise in respect of the Collateral, in addition to any
other rights and remedies provided for herein, in the Securities Purchase Agreement (other than in respect of the Warrants), the Notes, and the other Security Documents or otherwise available to it, all of the rights and remedies of a secured party
upon default under the Code (whether or not the Code applies to the affected Collateral), and also may (i) to the extent permitted under applicable law, take absolute control of the Collateral, including, without limitation, transfer into the
Collateral Agent’s name or into the name of its nominee or nominees (to the extent the Collateral Agent has not theretofore done so) and thereafter receive, for the benefit of the Noteholders, all payments made thereon, give all consents,
waivers and ratifications in respect thereof and otherwise act with respect thereto as though it were the outright owner thereof, (ii) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the
Collateral Agent forthwith, assemble all or part of its respective Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place or places to be designated by the Collateral Agent that is reasonably
convenient to both parties, and the Collateral Agent may enter into and occupy any premises owned or leased by any Grantor where the Collateral or any part thereof is located or assembled for a reasonable period in order to effectuate the Collateral
Agent’s rights and remedies hereunder or under law, without obligation to any Grantor in respect of such occupation, and (iii) without notice except as specified below and without any obligation to prepare or process the Collateral for
sale, (A) sell the Collateral or any part thereof in one or more parcels at public or private sale (including, without limitation, by credit bid), at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future
delivery, and at such price or prices and upon such other terms as the Collateral Agent may deem commercially reasonable and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as the Collateral Agent may deem
commercially reasonable. Each Grantor agrees that, to the extent notice of sale or any other disposition of its respective Collateral shall be required by law, at least ten (10) days’ notice to any Grantor of the time and place of any
public sale or the time after which any private sale or other disposition of its respective Collateral is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale or other disposition of any
Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. Each Grantor hereby waives any claims against the Collateral Agent and the Noteholders arising by reason of the fact that the price at which its respective Collateral may have been sold at a private sale
was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the Secured Obligations, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than
one offeree, and waives all rights that any Grantor may have to require that all or any part of such Collateral be marshaled upon any sale (public or private) thereof. Each Grantor hereby acknowledges that (i) any such sale of its respective
Collateral by the Collateral Agent shall be made without warranty, (ii) the Collateral Agent may specifically disclaim any warranties of title, possession, quiet enjoyment or the like, and (iii) such actions set forth in clauses (i)
and (ii) above shall not adversely affect the commercial reasonableness of any such sale of Collateral. In addition to the foregoing, (1) upon written notice to any Grantor from the Collateral Agent after and during the continuance of an
Event of Default, such Grantor shall cease any use of the Intellectual Property or any trademark, patent or copyright similar thereto for any purpose 

  
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described in such notice; (2) the Collateral Agent may, at any time and from time to time after and during the continuance of an Event of Default, upon 10 days’ prior notice to such
Grantor, license, whether general, special or otherwise, and whether on an exclusive or non-exclusive basis, any of the Intellectual Property, throughout the universe for such term or terms, on such conditions, and in such manner, as the Collateral
Agent shall in its sole discretion determine; and (3) the Collateral Agent may, at any time, pursuant to the authority granted in Section 6 hereof or otherwise (such authority being effective upon the occurrence and during the
continuance of an Event of Default), execute and deliver on behalf of such Grantor, one or more instruments of assignment of the Intellectual Property (or any application or registration thereof), in form suitable for filing, recording or
registration in any country. 
 (b) Any cash held by the Collateral Agent as Collateral and all Cash Proceeds received by the Collateral
Agent in respect of any sale or disposition of or collection from, or other realization upon, all or any part of the Collateral shall be applied as follows (subject to the provisions of the Securities Purchase Agreement): first, to pay any
fees, indemnities or expense reimbursements then due to the Collateral Agent (including those described in Section 8 hereof); second, to pay any fees, indemnities or expense reimbursements then due to the Noteholders, on a pro
rata basis; third to pay interest due under the Notes owing to the Noteholders, on a pro rata basis; fourth, to pay or prepay principal in respect of the Notes, whether or not then due, owing to the Noteholders, on a pro rata basis;
fifth, to pay or prepay any other Secured Obligations, whether or not then due, in such order and manner as the Collateral Agent shall elect, consistent with the provisions of the Securities Purchase Agreement. Any surplus of such cash or
Cash Proceeds held by the Collateral Agent and remaining after the Payment in Full of all of the Secured Obligations shall be paid over to whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall
direct. 
 (c) In the event that the proceeds of any such sale, disposition, collection or realization are insufficient to constitute
Payment in Full of the Secured Obligations, each Grantor shall be, jointly and severally, liable for the deficiency, together with interest thereon at the highest rate specified in the Notes for interest on overdue principal thereof or such other
rate as shall be fixed by applicable law, together with the costs of collection and the reasonable fees, costs, expenses and other charges of any attorneys employed by the Collateral Agent to collect such deficiency. 

(d) To the extent that applicable law imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner, each
Grantor acknowledges and agrees that it is commercially reasonable for the Collateral Agent (i) to fail to incur expenses deemed significant by the Collateral Agent to prepare Collateral for disposition or otherwise to transform raw material or
work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove
Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists,
(v) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other 

  
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Persons, whether or not in the same business as any Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (vii) to hire one or more professional
auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the
Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession
or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Collateral Agent against risks of loss, collection or disposition of Collateral or to provide to the Collateral Agent a guaranteed return from the collection or
disposition of Collateral, or (xii) to the extent deemed appropriate by the Collateral Agent, to obtain the services of brokers, investment bankers, consultants, attorneys and other professionals to assist the Collateral Agent in the collection
or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this section is to provide non-exhaustive indications of what actions or omissions by the Collateral Agent would be commercially reasonable in the Collateral
Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Collateral Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this section. Without limitation upon the
foregoing, nothing contained in this section shall be construed to grant any rights to any Grantor or to impose any duties on the Collateral Agent that would not have been granted or imposed by this Agreement or by applicable law in the absence of
this section. 
 (e) The Collateral Agent shall not be required to marshal any present or future collateral security (including, but not
limited to, this Agreement and the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of the Collateral
Agent’s rights hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights, however existing or arising. To the extent that any Grantor lawfully may, each Grantor
hereby agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the Collateral Agent’s rights under this Agreement or under any other instrument creating or
evidencing any of the Secured Obligations or under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each
Grantor hereby irrevocably waives the benefits of all such laws. 
 SECTION 8. Indemnity and Expenses. 

(a) Each Grantor agrees, jointly and severally, to defend, protect, indemnify and hold the Collateral Agent and each of the Noteholders (each,
an “Indemnified Person”) harmless from and against any and all claims, damages, losses, liabilities, obligations, penalties, fees, costs and expenses (including, without limitation, reasonable legal fees, costs, expenses, and
disbursements of such Indemnified Person’s counsel) to the extent that they arise out of or otherwise result from this Agreement (including, without limitation, enforcement of this Agreement), except to the extent (x) resulting from such
Indemnified Person’s gross negligence or willful misconduct, as determined by a final judgment of a court of competent jurisdiction no longer subject to appeal or (y) relating to disputes solely among or between the Noteholders which were
not, directly or indirectly, caused primarily by actions or inactions by any Grantor or Grantors. 

  
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 (b) Each Grantor agrees, jointly and severally, to pay to the Collateral Agent, within one
business day of written demand therefor, the amount of all reasonable and documented out-of-pocket costs and expenses, including the reasonable and documented out-of-pocket fees, costs, expenses and disbursements of counsel for the Collateral Agent,
which the Collateral Agent may incur in connection with (i) the preparation, negotiation, execution, delivery, recordation, administration, amendment, waiver or other modification or termination of this Agreement, (ii) the custody,
preservation, use or operation of, or the sale of, collection from, or other realization upon, any Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent hereunder, or (iv) the failure by any Grantor to
perform or observe any of the provisions hereof. 
 SECTION 9. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing and shall be mailed (by certified mail, first-class postage prepaid and return receipt requested), telecopied, e-mailed or delivered, if to any Grantor, to the Company’s address, or if to the Collateral Agent or
any Noteholder, to it at its respective address, each as set forth in Section 9(f) of the Securities Purchase Agreement; or as to any such Person, at such other address as shall be designated by such Person in a written notice to all other
parties hereto complying as to delivery with the terms of this Section 9. All such notices and other communications shall be effective (a) if sent by certified mail, return receipt requested, when received or three Business Days
after deposited in the mails, whichever occurs first, (b) if telecopied or e-mailed, when transmitted (during normal business hours) and confirmation is received, and otherwise, the day after the notice or communication was transmitted and
confirmation is received, or (c) if delivered in person, upon delivery. For the avoidance of doubt, all Foreign Subsidiaries, as Grantors, hereby appoint the Company as its agent for receipt of service of process and all notices and other
communications in the United States at the address specified below. 
 SECTION 10. Miscellaneous. 

(a) No amendment of any provision of this Agreement shall be effective unless it is in writing and signed by each Grantor and the Collateral
Agent (and approved by the Required Holders), and no waiver of any provision of this Agreement, and no consent to any departure by each Grantor therefrom, shall be effective unless it is in writing and signed by each Grantor and the Collateral Agent
(and approved by the Required Holders), and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No amendment, modification or waiver of this Agreement shall be effective to the
extent that it (1) applies to fewer than all of the holders of Notes or (2) imposes any obligation or liability on any holder of Notes without such holder’s prior written consent (which may be granted or withheld in such holder’s
sole discretion). 
 (b) No failure on the part of the Collateral Agent to exercise, and no delay in exercising, any right reasonably
hereunder or under any of the other Transaction Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right reasonably preclude any other or further exercise thereof or the exercise of any other right. The

  
 33 

 
rights and remedies of the Collateral Agent or any Noteholder provided herein and in the other Transaction Documents are cumulative and are in addition to, and not exclusive of, any rights or
remedies provided by law. The rights of the Collateral Agent or any Noteholder under any of the other Transaction Documents against any party thereto are not conditional or contingent on any attempt by such Person to exercise any of its rights under
any of the other Transaction Documents against such party or against any other Person, including but not limited to, any Grantor. 
 (c) Any
provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or thereof or
affecting the validity or enforceability of such provision in any other jurisdiction. 
 (d) This Agreement shall create a continuing
security interest in the Collateral and shall (i) remain in full force and effect until Payment in Full of the Secured Obligations, and (ii) be binding on each Grantor and all other Persons who become bound as debtor to this Agreement in
accordance with Section 9-203(d) of the Code and shall inure, together with all rights and remedies of the Collateral Agent and the Noteholders hereunder, to the benefit of the Collateral Agent and the Noteholders and their respective permitted
successors, transferees and assigns. Without limiting the generality of clause (ii) of the immediately preceding sentence, without notice to any Grantor, the Collateral Agent and the Noteholders may assign or otherwise transfer their rights and
obligations under this Agreement and any of the other Transaction Documents, to any other Person and such other Person shall thereupon become vested with all of the benefits in respect thereof granted to the Collateral Agent and the Noteholders
herein or otherwise. Upon any such assignment or transfer, all references in this Agreement to the Collateral Agent or any such Noteholder shall mean the assignee of the Collateral Agent or such Noteholder. None of the rights or obligations of any
Grantor hereunder may be assigned or otherwise transferred without the prior written consent of the Collateral Agent, and any such assignment or transfer without such consent of the Collateral Agent shall be null and void. 

(e) Upon the Payment in Full of the Secured Obligations, (i) this Agreement and the security interests created hereby shall terminate and
all rights to the Collateral shall revert to the respective Grantor that granted such security interests hereunder, and (ii) the Collateral Agent will, upon any Grantor’s request and at such Grantor’s expense, (A) return to such
Grantor such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof and (B) execute and deliver to such Grantor such documents and take such other actions as such Grantor shall reasonably
request to evidence such termination, all without any representation, warranty or recourse whatsoever. 
 (f) If any of the Collateral shall
be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the Transaction Documents, then the Lien created pursuant to this Agreement in such Collateral shall be released, and the Collateral Agent, at the request and
sole expense of such Grantor, shall execute and deliver to such Grantor all releases and other documents necessary or advisable for the release of the Liens created hereby on such Pledged Collateral. 

  
 34 

 (g) Governing Law; Jurisdiction; Jury Trial. 

(i) All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. 
 (ii) Each Grantor hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated
hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim, defense or objection that it is not personally subject to the jurisdiction of any such court, that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Collateral Agent or the Noteholders from bringing
suit or taking other legal action against any Grantor in any other jurisdiction to collect on a Grantor’s obligations or to enforce a judgment or other court ruling in favor of the Collateral Agent or a Noteholder. 

(iii) WAIVER OF JURY TRIAL, ETC. EACH GRANTOR IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. 

(iv) Each Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or
proceeding referred to in this Section any special, exemplary, indirect, incidental, punitive or consequential damages. 
 (h) Section
headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 

(i) This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall
be deemed to be an original, but all of which taken together constitute one and the same Agreement. Delivery of any executed counterpart of a signature page of this Agreement by pdf, facsimile or other electronic transmission shall be effective as
delivery of a manually executed counterpart of this Agreement. 

  
 35 

 (j) This Agreement shall continue to be effective or be reinstated, as the case may be, if at any
time any payment of any of the Secured Obligations is rescinded or must otherwise be returned by the Collateral Agent, any Noteholder or any other Person (upon (i) the occurrence of any Insolvency Proceeding of any of the Company or any Grantor
or (ii) otherwise, in all cases as though such payment had not been made). 
 SECTION 11. Material Non-Public Information.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Agreement, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information
relating to the Company or any of its Subsidiaries, the Company shall within one (1) Business Day after any such receipt or delivery publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the
event that the Company believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to the Collateral Agent and any applicable Noteholder contemporaneously with
delivery of such notice, and in the absence of any such indication, the Collateral Agent and each Noteholder shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information relating to the
Company or its Subsidiaries. Nothing contained in this Section 11 shall limit any obligations of the Company, or any rights of the Collateral Agent or any Noteholder, under Section 4(i) of the Securities Purchase Agreement. 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 36 

 IN WITNESS WHEREOF, each Grantor has caused this Agreement to be executed and delivered by its
officer thereunto duly authorized, as of the date first above written. 
  

			
	 GRANTORS:
  

DELCATH SYSTEMS, INC.

		
	By:	 	 
		 	 Name:
 Title:

			
	 ACCEPTED BY:
  

HUDSON BAY MASTER FUND LTD.,
 as Collateral Agent

		
	 By:
	 	 
		 	 Name:

Title:

  

 EXHIBIT A 

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT 

INTELLECTUAL PROPERTY SECURITY AGREEMENT 

This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, modified, supplemented, renewed, restated or replaced from time to time, this
“IP Security Agreement”), dated [                 , 2016], is made by the Persons listed on the signature pages hereof (collectively, the
“Grantors”) in favor of Hudson Bay Master Fund Ltd., in its capacity as collateral agent (the “Collateral Agent”) for the Noteholders. All capitalized terms not otherwise defined herein shall have the meanings
respectively ascribed thereto in the Security Agreement (as defined below). 
 WHEREAS, Delcath Systems, Inc., a Delaware corporation (the
“Company”), and each party listed as a “Buyer” therein (collectively, the “Buyers”) are parties to that certain Securities Purchase Agreement, dated June 6, 2016, pursuant to which the Company shall be
required to sell, and the Buyers shall purchase or have the right to purchase, the “Notes” (as defined therein) issued pursuant thereto (as such Notes may be amended, modified, supplemented, renewed, restated or replaced from time to time
in accordance with the terms thereof, collectively, the “Notes”); 
 WHEREAS, it is a condition precedent to the purchase
of the Notes under the Securities Purchase Agreement that each Grantor has executed and delivered that certain Security and Pledge Agreement, dated [                 ,
2016], made by the Grantors to the Collateral Agent (as amended, modified, supplemented, renewed, restated or replaced from time to time, the “Security Agreement”); and 

WHEREAS, under the terms of the Security Agreement, the Grantors have granted to the Collateral Agent, for the ratable benefit of the
Collateral Agent and the Noteholders, a security interest in, among other property, certain intellectual property of the Grantors, and have agreed as a condition thereof to execute this IP Security Agreement for recording with the U.S. Patent and
Trademark Office, the United States Copyright Office and other governmental authorities. 
 WHEREAS, the Grantors have determined that the
execution, delivery and performance of this IP Security Agreement directly benefits, and is in the best interest of, the Grantors. 
 NOW,
THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyers to perform under the Securities Purchase Agreement, each Grantor agrees with the Collateral Agent, for the benefit of the Noteholders, as follows

  

 SECTION 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent for the
ratable benefit of the Collateral Agent and the Noteholders a security interest in all of such Grantor’s right, title and interest in and to the following (the “Collateral”): 

 

	 	(i)	the Patents and Patent applications set forth in Schedule A hereto; 

  

	 	(ii)	the Trademark and service mark registrations and applications set forth in Schedule B hereto (provided that no security interest shall be granted in United States intent-to-use trademark applications to the extent
that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law), together with the goodwill symbolized
thereby; 

  

	 	(iii)	all Copyrights, whether registered or unregistered, now owned or hereafter acquired by such Grantor, including, without limitation, the copyright registrations and applications and exclusive copyright licenses set forth
in Schedule C hereto; 

  

	 	(iv)	all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all rights in the foregoing provided by international treaties or conventions, all rights
corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; 

  

	 	(v)	any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the
obligation, to sue for and collect, or otherwise recover, such damages; and 

  

	 	(vi)	any and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the Collateral of or arising from
any of the foregoing. 

 SECTION 2. Security for Secured Obligations. The grant of a security interest in, the
Collateral by each Grantor under this IP Security Agreement secures the Payment in Full of all Secured Obligations of such Grantor now or hereafter existing under or in respect of the Notes and the Transaction Documents. 

SECTION 3. Recordation. Each Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents and the
Commissioner for Trademarks and any other applicable government officer record this IP Security Agreement. 
 SECTION 4. Execution in
Counterparts. This IP Security Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

  

 SECTION 5. Grants, Rights and Remedies. This IP Security Agreement has been entered into
in conjunction with the provisions of the Security Agreement. Each Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies of, the Collateral Agent with respect to the Collateral
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated herein by reference as if fully set forth herein. 

SECTION 6. Governing Law; Jurisdiction; Jury Trial. 
  

	 	(i)	All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. 

 

	 	(ii)	Each Grantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection
herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim, defense or objection that it is
not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed
or operate to preclude the Collateral Agent or the Noteholders from bringing suit or taking other legal action against any Grantor in any other jurisdiction to collect on a Grantor’s obligations or to enforce a judgment or other court ruling in
favor of the Collateral Agent or a Noteholder. 

  

	 	(iii)	WAIVER OF JURY TRIAL, ETC. EACH GRANTOR IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT
OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. 

  

	 	(iv)	Each Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding referred to in this Section any special, exemplary, indirect, incidental, punitive or
consequential damages. 

  

 IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered by
its officer thereunto duly authorized as of the date first above written. 
  

			
	DELCATH SYSTEMS, INC.
		
	By	 	 
		 	 Name:
 Title:

 
			
	  
 Address for Notices:

 
 1301 Avenue of the Americas

43FL
 New York, New York 10019

		 	

  

 IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered by
its officer thereunto duly authorized as of the date first above written. 
  

			
	[NAME OF GRANTOR]
		
	By	 	 
		 	 Name:
 Title:

 
	
	  
 Address for Notices:

	
	 
	
	 
	
	 

  

 SCHEDULE I1 

Legal Names; Organizational Identification Numbers; 

States or Jurisdiction of Organization 
  

							
	 Grantor’s Name
	 	State of Organization	 	Federal
Employer I.D.	 	Organizational
I.D.

  

 

	1 	NTD: In process. 

  

 SCHEDULE II 

Intellectual Property 
 Patents

  

											
	 
Grantor
	 	
Country	 	
Title	 	Application or
Patent No.	 	Application or
Registration
Date	 	
Assignees

 Trademarks 

 

											
	 
Grantor
	 	
Country	 	
Trademark	 	Application or
Registration No.	 	Application or
Registration
Date	 	
Assignees

 Copyrights 

 

													
	 
Grantor
	 	
Country	 	
Title	 	
Type of Work	 	Application or
Registration
No.	 	
Issue Date	 	
Assignees

  

 Licenses 
  

									
	 
Licensor
	 	
Licensee	 	
Type	 	
Scope	 	
Term

  

 SCHEDULE III 

Locations 
  

									
	 Grantor’s Name
	 	Chief Executive
Office	 	Chief Place of
Business	 	Books and Records	 	Inventory,
Equipment, Etc.
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  

 SCHEDULE IV 

Promissory Notes, Securities, Deposit Accounts, 

Securities Accounts and Commodities Accounts 

Securities 
  

																	
	 Grantor
	 	Name of Issuer /
Pledged Entity	 	 	Number
of Shares	 	 	Class	 	 	Certificate
No.(s)	 
					
	Delcath Systems, Inc.	 	 	Delcath Holdings Limited	  	 	 	[TBD	] 	 	 	[TBD	] 	 	 	[TBD	] 
					
		 				 				 				 			

 Deposit Accounts, Securities Accounts and Commodities Accounts 

 

							
	 Grantor
	 	Name and Address of
Institution	 	Purpose of the
Account	 	Account No.
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	

 Foreign Currency Controlled Accounts 
  

					
	 Entity
	 	Name and Address of
Institution	 	Amount Held in Account
		 		 	
		 		 	

  

 Pledged Equity 
  

			
	 Pledged Equity
	 	 Holder

		
	65% of the issued and outstanding
[equity] of Delcath Holdings
Limited	 	Delcath Systems, Inc.

  

 SCHEDULE V 

Financing Statements 
  

			
	 Grantor
	 	 Jurisdiction for Filing Financing Statement

	 Delcath Systems, Inc.
	 	Delaware (to be filed with Secretary of State)

  

 SCHEDULE VI 

Commercial Tort Claims 

None. 

  

 SCHEDULE VII 

Existing Liens 
  

	1.	Pledge of Silicon Valley Bank account nos. 3301246486 and 3301264690 securing the Existing Silicon Valley Bank L/CS. 

	2.	Pledge of Silicon Valley Bank account no. 3301464115 securing the Existing Silicon Valley Bank Services Indebtedness. 

  

 Exhibit D 

GUARANTY 
 This
GUARANTY, dated as of [             , 2016] (this “Guaranty”), is made by [            ]
(“Guarantor”, and collectively with each other entity that has executed a Guaranty as of the date hereof, the “Guarantors”), in favor of Hudson Bay Master Fund Ltd., in its capacity as collateral agent (in such
capacity, the “Collateral Agent” as hereinafter further defined) for the “Buyers” party to the Securities Purchase Agreement (each as defined below). 

W I T N E S S E T H 
: 
 WHEREAS, Delcath Systems, Inc., a Delaware corporation, with offices located at 1301 Avenue of the Americas, 43FL, New York,
New York 10019 (the “Company”), and each party listed as a “Buyer” on the Schedule of Buyers attached thereto (collectively, the “Buyers”) are parties to the Securities Purchase Agreement, dated as
of June 6, 2016 (as amended, restated, extended, replaced or otherwise modified from time to time, the “Securities Purchase Agreement”), pursuant to which the Company shall be required to sell, and the Buyers shall purchase or have
the right to purchase, the “Notes” issued pursuant thereto (as such Notes may be amended, restated, extended, replaced or otherwise modified from time to time in accordance with the terms thereof, collectively, the
“Notes”); 
 WHEREAS, the Securities Purchase Agreement requires that the Guarantors execute and deliver to
the Collateral Agent, (i) a guaranty guaranteeing all of the obligations of the Company under the Securities Purchase Agreement (other than in respect of the Warrants), the Notes and the other Security Documents; and (ii) a joinder to the
Security and Pledge Agreement, dated as of [             , 2016], granting the Collateral Agent a lien on and security interest in all of the Collateral (as defined below) (as amended,
restated, extended, replaced or otherwise modified from time to time, the “Security Agreement”); and 
 WHEREAS,
Guarantor has determined that the execution, delivery and performance of this Guaranty directly benefits, and is in the best interest of, Guarantor. 

NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyers to perform under the Securities
Purchase Agreement, Guarantor hereby agrees with the Collateral Agent, for the benefit of the Collateral Agent and each Buyer, as follows: 

SECTION 1. Definitions. Reference is hereby made to the Securities Purchase Agreement and the Notes for a statement of the terms
thereof. All terms used in this Guaranty and the recitals hereto which are defined in the Securities Purchase Agreement, the Security Agreement or the Notes, as applicable, and which are not otherwise defined herein shall have the same meanings
herein as set forth therein. In addition, the following terms when used in the Guaranty shall have the meanings set forth below: 

“Bankruptcy Code” means Chapter 11 of Title 11 of the United States Code, 11 U.S.C §§ 101 et seq. (or other
applicable bankruptcy, insolvency or similar laws). 
 “Business Day” means any day other than Saturday,
Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed. 

 “Buyer” or “Buyers” shall have the meaning set forth in
the recitals hereto. 
 “Capital Stock” means (i) with respect to any Person that is a corporation, any
and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock (including, without limitation, any warrants, options, rights or other securities exercisable or convertible into equity
interests or securities of such Person), and (ii) with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person. 

“Collateral”means all assets and properties of the Company and each Guarantor (other than Excluded Collateral (as defined in
the Security Agreement)), wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the collateral described in
Section 2 of the Security Agreement. 
 “Collateral Agent” shall have the meaning set forth in the
recitals hereto. 
 “Company” shall have the meaning set forth in the recitals hereto. 

“Governmental Authority” means any nation or government, any Federal, state, city, town, municipality, county, local,
foreign or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of
or pertaining to government. 
 “Guaranteed Obligations” shall have the meaning set forth in
Section 2 of this Guaranty. 
 “Guarantor” or “Guarantors” shall have the meaning
set forth in the recitals hereto. 
 “Indemnified Party” shall have the meaning set forth in
Section 13(a) of this Guaranty 
 “Insolvency Proceeding” means any proceeding commenced by or
against any Person under any provision of the Bankruptcy Code or under any other bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, or extensions generally with creditors, or
proceedings seeking reorganization, arrangement, or other similar relief. 
 “Notes” shall have the meaning
set forth in the recitals hereto. 
 “Other Taxes” shall have the meaning set forth in Section 12(a)(iv)
of this Guaranty. 
 “Paid in Full” or “Payment in Full” means the payment in full in cash (and/or, as
applicable, in shares of Common Stock issued upon any conversion of any Note by the holder thereof in accordance with the terms of such Note) of all of the Guaranteed Obligations (other than contingent reimbursement and indemnification obligations).
 

  
 2 

 “Person” means an individual, corporation, limited liability company,
partnership, association, joint-stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority. 

“Secured Obligations” shall have the meaning set forth in Section 3 of the Security Agreement. 

“Securities Purchase Agreement” shall have the meaning set forth in the recitals hereto. 

“Security Agreement” shall have the meaning set forth in the recitals hereto. 

“Subsidiary”means any Person in which a Guarantor directly or indirectly, (i) owns any of the outstanding Capital
Stock or holds any equity or similar interest of such Person or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing, collectively, “Subsidiaries”.

 “Taxes” shall have the meaning set forth in Section 12(a) of this Guaranty. 

“Termination Date” shall have the meaning set forth in Section 3(c) of this Guaranty. 

“Transaction Party” means the Company and each Guarantor, collectively, “Transaction Parties”.

 SECTION 2. Guaranty. 

(a) The Guarantors, jointly and severally, hereby unconditionally and irrevocably, guaranty to the Collateral Agent, for the benefit of the
Collateral Agent and the Buyers, the punctual payment, as and when due and payable, by stated maturity or otherwise, of all Secured Obligations, including, without limitation, all interest, make-whole and other amounts that accrue after the
commencement of any Insolvency Proceeding of the Company or any Guarantor, whether or not the payment of such interest, make-whole and/or other amounts are enforceable or are allowable in such Insolvency Proceeding, and all fees, interest, premiums,
penalties, causes of actions, costs, commissions, expense reimbursements, indemnifications and all other amounts due or to become due under the Securities Purchase Agreement (other than in respect of the Warrants), the Notes and the Security
Documents (all of the foregoing collectively being the “Guaranteed Obligations”), and agrees to pay any and all costs and expenses (including counsel fees and expenses) incurred by the Collateral Agent in enforcing any rights under
this Guaranty or otherwise in respect of the Guaranteed Obligations. Without limiting the generality of the foregoing, each Guarantor’s liability hereunder shall extend to all amounts that constitute part of the Guaranteed Obligations and would
be owed by the Company to the Collateral Agent or any Buyer under the Securities Purchase Agreement and the Notes but for the fact that they are unenforceable or not allowable due to the existence of an Insolvency Proceeding involving any
Transaction Party. 

  
 3 

 (b) Each Guarantor, and by its acceptance of this Guaranty, the Collateral Agent, for the benefit
of the Collateral Agent and each Buyer, hereby confirms that it is the intention of all such Persons that this Guaranty and the Guaranteed Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of the
Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal, provincial, state, or other applicable law to the extent applicable to this Guaranty and the Guaranteed Obligations of each
Guarantor hereunder. To effectuate the foregoing intention, the Collateral Agent, the Buyers and the Guarantors hereby irrevocably agree that the Guaranteed Obligations of each Guarantor under this Guaranty at any time shall be limited to the
maximum amount as will result in the Guaranteed Obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance. 

SECTION 3. Guaranty Absolute; Continuing Guaranty; Assignments. 

(a) The Guarantors, jointly and severally, guaranty that the Guaranteed Obligations will be paid strictly in accordance with the terms of the
Transaction Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Collateral Agent or any Buyer with respect thereto. The obligations of each Guarantor
under this Guaranty are independent of the Guaranteed Obligations, and a separate action or actions may be brought and prosecuted against any Guarantor to enforce such obligations, irrespective of whether any action is brought against any
Transaction Party or whether any Transaction Party is joined in any such action or actions. The liability of any Guarantor under this Guaranty shall be as a primary obligor (and not merely as a surety) and shall be irrevocable, absolute and
unconditional irrespective of, and each Guarantor hereby irrevocably waives, to the extent permitted by law, any defenses it may now or hereafter have (other than the defenses of payment, performance or voluntary release in writing by the Collateral
Agent and Noteholders) in any way relating to, any or all of the following: 
 (i) any lack of validity or enforceability of any Transaction
Document; 
 (ii) any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations,
or any other amendment or waiver of or any consent to departure from any Transaction Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Transaction Party or
extension of the maturity of any Guaranteed Obligations or otherwise; 
 (iii) any taking, exchange, release or non-perfection of any
Collateral; 
 (iv) any taking, release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the
Guaranteed Obligations; 
 (v) any change, restructuring or termination of the corporate, limited liability company or partnership structure
or existence of any Transaction Party; 
 (vi)(A) any manner of application of Collateral or any other collateral, or proceeds thereof, to
all or any of the Guaranteed Obligations, or (B) any manner of sale or other disposition of any Collateral, any other collateral or any other assets of any Transaction Party for all or any of the Guaranteed Obligations or any other Secured
Obligations of any Transaction Party under the Transaction Documents, in each case, after the occurrence and during the continuance of an Event of Default; 

  
 4 

 (vii) any failure of the Collateral Agent or any Buyer to disclose to any Transaction Party any
information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Transaction Party now or hereafter known to the Collateral Agent or any Buyer (each Guarantor waiving any duty on
the part of the Collateral Agent or any Buyer to disclose such information); 
 (viii) taking any action in furtherance of the release of
any Guarantor or any other Person that is liable for the Secured Obligations from all or any part of any liability arising under or in connection with any Transaction Document without the prior written consent of the Collateral Agent; or 

(ix) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation
by the Collateral Agent or any Buyer that might otherwise constitute a defense available to, or a discharge of, any Transaction Party or any other guarantor or surety, in each case, other than the occurrence of the Termination Date. 

(b) This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by the Collateral Agent, any Buyer, or any other Person upon the insolvency, bankruptcy or reorganization of any Transaction Party or otherwise, all as though such payment had not been made.

 (c) This Guaranty is a continuing guaranty and shall (i) remain in full force and effect until the earlier of (x) Payment in
Full of the Guaranteed Obligations and (y) voluntary release in writing of Guarantor by the Collateral Agent and Noteholders (such earlier date, the “Termination Date”), and shall not terminate for any reason prior to the
Termination Date; provided, that any Guaranteed Obligations which expressly survive termination of this Guaranty and have not been satisfied on the Termination Date may be outstanding from time to time after the Termination Date, and (ii) be
binding upon each Guarantor and its respective successors and assigns. This Guaranty shall inure to the benefit of and be enforceable by the Collateral Agent, the Buyers, and their respective successors, and permitted pledgees, transferees and
assigns. Without limiting the generality of the foregoing sentence, the Collateral Agent or any Buyer may pledge, assign or otherwise transfer all or any portion of its rights and obligations under and subject to the terms of any Transaction
Document to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Collateral Agent or such Buyer (as applicable) herein or otherwise, in each case as provided in the Securities
Purchase Agreement or such Transaction Document. 
 SECTION 4. Waivers. To the extent permitted by applicable law, each Guarantor
hereby waives promptness, diligence, protest, notice of acceptance and any other notice or formality of any kind (other than notice requirements under the Transaction Documents to which such Guarantor is a party) with respect to any of the
Guaranteed Obligations and this 

  
 5 

 
Guaranty and any requirement that the Collateral Agent exhaust any right or take any action against any Transaction Party or any other Person or any Collateral. Each Guarantor acknowledges that
it will receive direct and indirect benefits from the financing arrangements contemplated herein and that the waiver set forth in this Section 4 is knowingly made in contemplation of such benefits. The Guarantors hereby waive any right
to revoke this Guaranty, and acknowledge that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. Without limiting the foregoing, to the extent permitted by applicable law, each
Guarantor hereby unconditionally and irrevocably waives (a) any defense arising by reason of any claim or defense based upon an election of remedies by the Collateral Agent or any Buyer that in any manner impairs, reduces, releases or otherwise
adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against any of the other Transaction Parties, any other guarantor or any other
Person or any Collateral, and (b) any defense based on any right of set-off or counterclaim against or in respect of the Guaranteed Obligations of such Guarantor hereunder. Each Guarantor hereby unconditionally and irrevocably waives any duty
on the part of the Collateral Agent or any Buyer to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Transaction Party or
any of its Subsidiaries now or hereafter known by the Collateral Agent or a Buyer. 
 SECTION 5. Subrogation. No Guarantor may
exercise any rights that it may now or hereafter acquire against any Transaction Party or any other guarantor that arise from the existence, payment, performance or enforcement of any Guarantor’s obligations under this Guaranty, including,
without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Collateral Agent or any Buyer against any Transaction Party or any other guarantor
or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any Transaction Party or any other guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or right, unless and until the Termination Date has occurred. If any amount shall be paid to a Guarantor in
violation of the immediately preceding sentence at any time prior to the Termination Date and payment of all other amounts payable under this Guaranty, such amount shall be held in trust for the benefit of the Collateral Agent and shall forthwith be
paid to the Collateral Agent to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty in accordance with the terms of the Transaction Documents, or to be held as Collateral for any Guaranteed
Obligations or other amounts payable under this Guaranty thereafter arising (in each case, other than contingent reimbursement and indemnification obligations). If (a) any Guarantor shall make payment to the Collateral Agent of all or any part
of the Guaranteed Obligations, and (b) the Termination Date has occurred, the Collateral Agent will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without
representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment by such Guarantor. 

  
 6 

 SECTION 6. Representations, Warranties and Covenants. 

(a) Each Guarantor hereby represents and warrants as of the date first written above as follows: 

(i) such Guarantor (A) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization as set forth on the signature pages hereto, (B) has all requisite corporate, limited liability company or limited partnership power and authority to conduct its business as now
conducted and as presently contemplated and to execute, deliver and perform its obligations under this Guaranty and each other Transaction Document to which such Guarantor is a party, and to consummate the transactions contemplated hereby and
thereby and (C) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary except
where the failure to be so qualified (individually or in the aggregate) would not reasonably be expected to result in a Material Adverse Effect. 

(ii) The execution, delivery and performance by such Guarantor of this Guaranty and each other Transaction Document to which such Guarantor is
a party (A) have been duly authorized by all necessary corporate, limited liability company or limited partnership action, (B) do not and will not contravene (1) its charter, articles, certificate of formation or by-laws, its limited
liability company or operating agreement or its certificate of partnership or partnership agreement, as applicable, or (2) any applicable law or any contractual restriction binding on such Guarantor or its properties, except as would not
reasonably be expected to result in a Material Adverse Effect, (C) do not and will not result in or require the creation of any lien, security interest or encumbrance (other than Permitted Liens) upon or with respect to any of its properties,
and (D) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to it or its material operations or any of its
material properties. 
 (iii) Except as set forth in any of the other Transaction Documents to which such Guarantor is or will be a party,
no authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or other Person is required in connection with the due execution, delivery and performance by such Guarantor of this Guaranty or any of the
other Transaction Documents to which such Guarantor is a party. 
 (iv) This Guaranty has been duly executed and delivered by each Guarantor
and is, and each of the other Transaction Documents to which such Guarantor is or will be a party, when executed and delivered, will be, a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with
its terms, except as may be limited by the Bankruptcy Code or other applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, suretyship or similar laws and equitable principles (regardless of whether enforcement is
sought in equity or at law). 
 (v) There is no pending or, to the best knowledge of such Guarantor, threatened action, suit or proceeding
against such Guarantor or to which any of the properties of such Guarantor is subject, before any court or other Governmental Authority or any arbitrator that (A) if adversely determined, could reasonably be expected to have a Material Adverse
Effect 

  
 7 

 
or (B) may materially adversely affect such Guarantor’s guaranty of the Guaranteed Obligations or the exercise by the Collateral Agent or Buyers of their rights and remedies under the
other Transaction Documents to which such Guarantor is a party or any transaction contemplated hereby or thereby. 
 (vi) Such Guarantor
(A) has read and understands the terms and conditions of the Securities Purchase Agreement and the other Transaction Documents, and (B) now has and will continue to have independent means of obtaining information concerning the affairs,
financial condition and business of the Company and the other Transaction Parties, and has no need of, or right to obtain from the Collateral Agent or any Buyer, any credit or other information concerning the affairs, financial condition or business
of the Company or the other Transaction Parties. 
 (vii) There are no conditions precedent to the effectiveness of this Guaranty that have
not been satisfied or waived. 
 (b) Each Guarantor covenants and agrees that until the Termination Date, it will comply with each of the
covenants (except to the extent applicable only to a public company) which are set forth in Section 4 of the Securities Purchase Agreement as if such Guarantor were a party thereto. 

SECTION 7. Right of Set-off. to the extent permitted under applicable law, each Guarantor hereby grants to the Collateral Agent,
for itself and for the ratable benefit of the Noteholders, a right of set-off against the property of such Guarantor held by the Collateral Agent, for itself and for the ratable benefit of the Noteholders, consisting of property described above in
Section 2(a) now or hereafter in the possession or custody of or in transit to the Collateral Agent, for any purpose, including safekeeping, collection or pledge, for the account of such Guarantor, or as to which such Grantor may have any right
or power; provided that such right shall only be exercised after an Event of Default has occurred and is continuing. The Collateral Agent and agrees to notify the relevant Guarantor promptly after any such set off and application made by the
Collateral Agent, provided that the failure to give such notice shall not affect the validity of such set off and application. 

SECTION 8. Limitation on Guaranteed Obligations. 

(a) Notwithstanding any provision herein contained to the contrary, each Guarantor’s liability hereunder shall be limited to an amount
not to exceed as of any date of determination the greater of: 
 (i) the amount of all Guaranteed Obligations, plus interest
thereon at the applicable Interest Rate as specified in the Note; and 
 (ii) the amount which could be claimed by the
Collateral Agent from any Guarantor under this Guaranty without rendering such claim voidable or avoidable under the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute
or common law after taking into account, among other things, Guarantor’s right of contribution and indemnification. 

  
 8 

 (b) Each Guarantor agrees that the Guaranteed Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guaranty hereunder or affecting the rights and remedies of the Collateral Agent or any Buyer hereunder or under applicable law. 

(c) No payment made by the Company, any Guarantor, any other guarantor or any other Person or received or collected by the Collateral Agent or
any other Buyer from the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of
the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the
Guaranteed Obligations or any payment received or collected from such Guarantor in respect of the Guaranteed Obligations), remain liable for the Guaranteed Obligations up to the maximum liability of such Guarantor hereunder until after all of the
Guaranteed Obligations and all other amounts payable under this Guaranty shall have been Paid in Full. 
 SECTION 9. Notices, Etc.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Guaranty must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with an nationally recognized overnight
courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. All notices and other communications provided for hereunder shall be sent, if to any Guarantor, to the Company’s address and/or
facsimile number, or if to the Collateral Agent or any Buyer, to it at its respective address and/or facsimile number, each as set forth in Section 9(f) of the Securities Purchase Agreement 

SECTION 10. Governing Law; Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of
this Guaranty shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdiction other than the State of New York. Each Guarantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim, obligation or defense that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such 

  
 9 

 
party at the address for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Collateral Agent or the Buyers from bringing
suit or taking other legal action against any Guarantor in any other jurisdiction to collect on a Guarantor’s obligations or to enforce a judgment or other court ruling in favor of the Collateral Agent or a Buyer. 

SECTION 11. WAIVER OF JURY TRIAL, ETC. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS GUARANTY, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. 

SECTION 12. Taxes. 
 (a)
All payments made by any Guarantor hereunder or under any other Transaction Document shall be made in accordance with the terms of the respective Transaction Document and shall be made without set-off, counterclaim, withholding, deduction or other
defense. Without limiting the foregoing, all such payments shall be made free and clear of and without deduction or withholding for any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding taxes imposed on the net income of the Collateral Agent or any Buyer by the jurisdiction in which the Collateral Agent or such Buyer is organized or where it has its principal lending office (all such nonexcluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities, collectively or individually, “Taxes”). If any Guarantor shall be required to deduct or to withhold any Taxes from or in respect of any amount payable hereunder or
under any other Transaction Document: 
 (i) the amount so payable shall be increased to the extent necessary so that after making all
required deductions and withholdings (including Taxes on amounts payable to the Collateral Agent or any Buyer pursuant to this sentence) the Collateral Agent or each Buyer receives an amount equal to the sum it would have received had no such
deduction or withholding been made, 
 (ii) such Guarantor shall make such deduction or withholding, 

(iii) such Guarantor shall pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law,
and 

  
 10 

 (iv) as promptly as possible thereafter, such Guarantor shall send the Collateral Agent or each
Buyer an official receipt (or, if an official receipt is not available, such other documentation as shall be satisfactory to the Collateral Agent, as the case may be) showing payment. In addition, each Guarantor agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges or similar levies that arise from any payment made hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to, this
Guaranty or any other Transaction Document (collectively, “Other Taxes”). 
 (b) Each Guarantor hereby indemnifies and
agrees to hold each Indemnified Party harmless from and against Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 12) paid by any Indemnified
Party as a result of any payment made hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to, this Guaranty or any other Transaction Document, and any liability (including penalties, interest and
expenses for nonpayment, late payment or otherwise) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be paid within thirty (30) days from the
date on which the Collateral Agent or such Buyer makes written demand therefor, which demand shall identify the nature and amount of such Taxes or Other Taxes. 

(c) If any Guarantor fails to perform any of its obligations under this Section 12, such Guarantor shall indemnify the Collateral
Agent and each Buyer for any taxes, interest or penalties that may become payable as a result of any such failure. The obligations of the Guarantors under this Section 12 shall survive the termination of this Guaranty and the payment of
the Obligations and all other amounts payable hereunder. 
 SECTION 13. Indemnification. 

(a) Without limitation of any other obligations of any Guarantor or remedies of the Collateral Agent or the Buyers under this Guaranty or
applicable law, except to the extent resulting from (i) such Indemnified Party’s gross negligence or willful misconduct, as determined by a final judgment of a court of competent jurisdiction no longer subject to appeal or (ii) a
dispute arising solely between the Noteholders, each Guarantor shall, to the fullest extent permitted by law, indemnify, defend and save and hold harmless the Collateral Agent and each Buyer and each of their affiliates and their respective
officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable
out-of-pocket fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party in connection with or as a result of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of
any Transaction Party enforceable against such Transaction Party in accordance with their terms. 
 (b) Each Guarantor hereby also agrees
that none of the Indemnified Parties shall have any liability (whether direct or indirect, in contract, tort or otherwise) or any fiduciary duty or obligation to any of the Guarantors or any of their respective affiliates or any of their respective
officers, directors, employees, agents and advisors, and each Guarantor hereby agrees not to assert any claim against any Indemnified Party on any theory of liability, for special, indirect, consequential, incidental or punitive damages arising out
of or otherwise relating to the facilities, the actual or proposed use of the proceeds of the advances, the Transaction Documents or any of the transactions contemplated by the Transaction Documents. 

  
 11 

 SECTION 14. Miscellaneous. 

(a) Each Guarantor will make any payment that may become due hereunder in lawful money of the United States of America and in immediately
available funds to the Collateral Agent or each Buyer, at such address and in the manner most recently specified by the Collateral Agent or such Buyer from time to time by written notice to the Guarantors. 

(b) No amendment or waiver of any provision of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any event be
effective unless the same shall be in writing and signed by each Guarantor, the Collateral Agent and each Buyer, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

(c) No failure on the part of the Collateral Agent or any Buyer to exercise, and no delay in exercising, any right or remedy hereunder or
under any other Transaction Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder or under any Transaction Document preclude any other or further exercise thereof or the exercise of any other
right or remedy. The rights and remedies of the Collateral Agent and the Buyers provided herein and in the other Transaction Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights
and remedies of the Collateral Agent and the Buyers under any Transaction Document against any party thereto are not conditional or contingent on any attempt by the Collateral Agent or any Buyer to exercise any of their respective rights or remedies
under any other Transaction Document against such party or against any other Person. 
 (d) Any provision of this Guaranty that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of
such provision in any other jurisdiction. 
 (e) This Guaranty is a continuing guaranty and shall (i) remain in full force and effect
until the Termination Date, at which time this Guaranty shall terminate in accordance with its terms (subject to Section 3(c) hereof), and (ii) be binding upon each Guarantor and its respective successors and assigns. This Guaranty
shall inure, together with all rights and remedies of the Collateral Agent hereunder, to the benefit of and be enforceable by the Collateral Agent, the Buyers, and their respective successors, and permitted pledgees, transferees and assigns. Without
limiting the generality of the foregoing sentence, the Collateral Agent or any Buyer may pledge, assign or otherwise transfer all or any portion of its rights and obligations under and subject to the terms of the Securities Purchase Agreement or any
other Transaction Document to any other Person in accordance with the terms thereof, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Collateral Agent or such Buyer (as applicable) herein or
otherwise, in each case as provided in the Securities Purchase Agreement or such Transaction Document. None of the rights or obligations of any Guarantor hereunder may be assigned or otherwise transferred without the prior written consent of each
Buyer. 

  
 12 

 (f) This Guaranty and the other Transaction Documents reflect the entire understanding of the
transaction contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, entered into before the date hereof. 

(g) Section headings herein are included for convenience of reference only and shall not constitute a part of this Guaranty for any other
purpose. 
 SECTION 15. Currency Indemnity. 

If, for the purpose of obtaining or enforcing judgment against Guarantor in any court in any jurisdiction, it becomes necessary to convert
into any other currency (such other currency being hereinafter in this Section 15 referred to as the “Judgment Currency”) an amount due under this Guaranty in any currency (the “Obligation Currency”)
other than the Judgment Currency, the conversion shall be made at the rate of exchange prevailing on the Business Day immediately preceding (a) the date of actual payment of the amount due, in the case of any proceeding in the courts of courts
of the jurisdiction that will give effect to such conversion being made on such date, or (b) the date on which the judgment is given, in the case of any proceeding in the courts of any other jurisdiction (the applicable date as of which such
conversion is made pursuant to this Section 15 being hereinafter in this Section 15 referred to as the “Judgment Conversion Date”). 

If, in the case of any proceeding in the court of any jurisdiction referred to in the preceding paragraph, there is a change in the rate of
exchange prevailing between the Judgment Conversion Date and the date of actual receipt of the amount due in immediately available funds, the Guarantors shall pay such additional amount (if any, but in any event not a lesser amount) as may be
necessary to ensure that the amount actually received in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the
amount of’ the Judgment Currency stipulated in the judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. Any amount due from the Guarantors under this Section 15 shall be due as a separate
debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Guaranty. 
 [REMAINDER OF
THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 13 

 IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed by its respective duly
authorized officer, as of the date first above written. 
  

			
	GUARANTORS:
	
	 [SUBSIDIARY]
 [SUBSIDIARY]

[SUBSIDIARY, ETC.]

		
	By:	 	 
		 	Name:
		 	Title:

 [Signatures continue on following page] 

			
	 ACCEPTED BY:
  

HUDSON BAY MASTER FUND LTD., 
 as Collateral
Agent

		
	By:	 	 
		 	Name:
		 	Title:Amended and Restated Co-Brand and Private Label Credit Card Agreement

 Exhibit 10.1 

AMENDED AND RESTATED 

CO-BRAND AND PRIVATE LABEL CREDIT CARD 

CONSUMER PROGRAM AGREEMENT 

by and between 
 STEIN
MART, INC. 
 and 

SYNCHRONY BANK 
 DATED
AS OF 
 February 24, 2016 

  
 In this document,
“[***]” indicates that confidential materials have been redacted from this document and filed separately with the Securities and Exchange Commission. 

									
	ARTICLE 1 — CONTINUATION OF CO-BRAND PROGRAM AND PLCC PROGRAM; SCOPE AND OBJECTIVES OF THE PROGRAM	  	 	1	  
				
		 	1.1	  	Continuation of Co-Brand Program and PLCC Program	  	 	1	  
		 	1.2	  	Scope of the Program	  	 	2	  
		
	ARTICLE 2 — RESPONSIBILITIES UNDER THE PROGRAM	  	 	2	  
				
		 	2.1	  	Bank’s Responsibilities	  	 	2	  
		 	2.2	  	Retailer’s Responsibilities	  	 	4	  
		 	2.3	  	Association Rules	  	 	7	  
		 	2.4	  	Credit Approval	  	 	8	  
		 	2.5	  	Allocation of Program Expenses	  	 	8	  
		
	ARTICLE 3 — SETTLEMENT	  	 	8	  
				
		 	3.1	  	Settlement Procedures	  	 	8	  
		 	3.2	  	Settlement via Association Network; Direct Settlement Process	  	 	9	  
		 	3.3	  	Bank Payment Terms	  	 	9	  
		 	3.4	  	Retailer Payment Terms	  	 	9	  
		
	ARTICLE 4 — COMPENSATION	  	 	9	  
				
		 	4.1	  	Compensation	  	 	9	  
		
	ARTICLE 5 — OPERATING COMMITTEE AND RELATIONSHIP MANAGEMENT	  	 	10	  
				
		 	5.1	  	Establishment of an Operating Committee	  	 	10	  
		 	5.2	  	Functions of the Operating Committee	  	 	10	  
		 	5.3	  	Operating Committee Meetings; Dispute Resolution	  	 	11	  
		 	5.4	  	Relationship Managers; Other Designated Bank Employees	  	 	12	  
		 	5.5	  	Expedited Review	  	 	12	  
		 	5.6	  	Formal Proceedings Prior to Dispute Resolution Procedures	  	 	12	  
		
	ARTICLE 6 — MARKETING OF THE PROGRAM	  	 	13	  
				
		 	6.1	  	Semi-Annual Marketing Plans	  	 	13	  
		 	6.2	  	Marketing Fund	  	 	13	  
		 	6.3	  	Additional Bank Marketing Support	  	 	13	  
		 	6.4	  	Responsibility of Retailer to Promote the Program	  	 	13	  
		 	6.5	  	Cardholder Rewards Program	  	 	13	  
		 	6.6	  	Cross-Selling	  	 	13	  
		
	ARTICLE 7 — OTHER AGREEMENTS	  	 	13	  
				
		 	7.1	  	Ownership of Accounts; Credit Losses	  	 	13	  
		 	7.2	  	Ownership and Use of Cardholder Information	  	 	14	  
		 	7.3	  	Cardholder Terms	  	 	14	  
		 	7.4	  	Credit Criteria	  	 	14	  
		 	7.5	  	Operating Procedures	  	 	15	  
		 	7.6	  	Credit Review Point	  	 	15	  
		 	7.7	  	Retailer Financial Reports	  	 	16	  
		 	7.8	  	Inserts and Billing Messages	  	 	17	  
		 	7.9	  	Third Party Participation	  	 	18	  
		 	7.10	  	Use of Names and Marks	  	 	18	  

  
 i 

									
		 	7.11	  	Intellectual Property	  	 	19	  
		 	7.12	  	Securitization	  	 	19	  
		 	7.13	  	Grant of Security Interest/Precautionary Filing	  	 	19	  
		 	7.14	  	In-Store Payments	  	 	20	  
		 	7.15	  	Periodic Program Reports; Access to Cardholder Data	  	 	21	  
		 	7.16	  	Service Level Standards	  	 	21	  
		 	7.17	  	Maintenance of Bank Webpage and Retailer Website; Fraud Prevention	  	 	22	  
		 	7.18	  	Interchange Regulation	  	 	23	  
		 	7.19	  	Store Closure	  	 	23	  
		 	7.20	  	GOB; Bankruptcy	  	 	23	  
		 	7.21	  	Sales Taxes and Related Record Retention	  	 	25	  
		 	7.22	  	Additional [***]	  	 	26	  
		
	ARTICLE 8 — CHARGEBACKS	  	 	26	  
				
		 	8.1	  	Chargeback Rights	  	 	26	  
		 	8.2	  	Co-Brand Account Chargebacks	  	 	27	  
		 	8.3	  	Settlement of Claims	  	 	27	  
		 	8.4	  	Delivery of Materials Regarding Chargebacks	  	 	27	  
		 	8.5	  	Chargeback Process	  	 	27	  
		
	ARTICLE 9 — EXCLUSIVITY	  	 	27	  
				
		 	9.1	  	Exclusivity	  	 	27	  
		
	ARTICLE 10 — TERM AND TERMINATION	  	 	28	  
				
		 	10.1	  	Program Term	  	 	28	  
		 	10.2	  	Termination of Agreement	  	 	28	  
		
	ARTICLE 11 — EFFECTS OF TERMINATION	  	 	31	  
				
		 	11.1	  	General Effects	  	 	31	  
		 	11.2	  	Purchase of Accounts by Retailer upon Termination	  	 	31	  
		 	11.3	  	Determination of Fair Market Value	  	 	32	  
		 	11.4	  	Bank’s Rights If Retailer Does Not Purchase Accounts	  	 	32	  
		 	11.5	  	Limitation on Retailer’s Right to Purchase Accounts	  	 	32	  
		
	ARTICLE 12 — REPRESENTATIONS AND WARRANTIES	  	 	33	  
				
		 	12.1	  	Representations and Warranties	  	 	33	  
		 	12.2	  	Continuity of Retailer Business	  	 	33	  
		 	12.3	  	Operation of Store Locations	  	 	34	  
		
	ARTICLE 13 — INDEMNIFICATION	  	 	34	  
				
		 	13.1	  	Indemnification by Retailer	  	 	34	  
		 	13.2	  	Indemnification by Bank	  	 	35	  
		 	13.3	  	Indemnification Procedures	  	 	36	  
		
	ARTICLE 14 — AUDIT / ACCESS	  	 	38	  
				
		 	14.1	  	Audit	  	 	38	  
		 	14.2	  	Access	  	 	39	  
		
	ARTICLE 15 — MISCELLANEOUS	  	 	39	  

  
 ii 

									
				
		 	15.1	  	Confidentiality	  	 	39	  
		 	15.2	  	Binding Effect	  	 	41	  
		 	15.3	  	Assignment	  	 	41	  
		 	15.4	  	Outsourcing; Subcontracting	  	 	41	  
		 	15.5	  	Governing Law; Venue; Waiver of Jury Trial	  	 	41	  
		 	15.6	  	Data Security and Privacy	  	 	41	  
		 	15.7	  	No Third Party Beneficiaries	  	 	43	  
		 	15.8	  	Amendments	  	 	43	  
		 	15.9	  	No Partnership	  	 	43	  
		 	15.10	  	Notices	  	 	43	  
		 	15.11	  	Incorporation of Appendices	  	 	44	  
		 	15.12	  	Nonwaiver; Remedies Cumulative; Severability	  	 	44	  
		 	15.13	  	Damages Waiver	  	 	44	  
		 	15.14	  	Entire Agreement	  	 	44	  
		 	15.15	  	Further Assurances	  	 	45	  
		 	15.16	  	Survival	  	 	45	  
		 	15.17	  	Obligations Subject to Law	  	 	45	  
		 	15.18	  	Multiple Counterparts	  	 	45	  
		 	15.19	  	Internet Gambling	  	 	45	  

  
 iii 

 SCHEDULES 
  

			
	Schedule 2.1(d)	  	Bank Program Resources
	Schedule 2.2(h)	  	Submission of Charge Transaction Data
	Schedule 2.5	  	Program Expenses
	Schedule 4.1	  	Compensation
	Schedule 4.1(6)	  	Gain Sharing Terms and Conditions
	Schedule 5.1	  	Members of Operating Committee
	Schedule 5.3(d)	  	Retailer Matters and Bank Matters
	Schedule 5.4	  	Relationship Managers; Other Designated Bank Employees
	Schedule 6.2	  	Marketing Fund
	Schedule 6.2(e)	  	Permissible Marketing Fund Expenditures
	Schedule 6.3	  	Additional Bank Marketing Support
	Schedule 6.4	  	Promotion of Program by Retailer
	Schedule 6.5	  	Cardholder Rewards Program
	Schedule 6.6	  	Cross-Selling
	Schedule 7.2	  	Ownership and Use of Cardholder Information
	Schedule 7.2(b)	  	Privacy Policy
	Schedule 7.3	  	Initial Cardholder Terms
	Schedule 7.4(c)	  	Approval Rates and Credit Lines
	Schedule 7.4(c)(1)	  	Minimum Approval Rate and Minimum Initial Credit Lines
	Schedule 7.10	  	Bank Marks and Retailer Marks
	Schedule 7.15	  	Periodic Program Reports
	Schedule 7.16	  	Service Level Standards
	Schedule 7.18	  	Interchange Regulation
	Schedule 7.19	  	Store Closure
	Schedule 7.22	  	Additional [***]
	Schedule 8.1(e)	  	Presentment Warranties
	Schedule 9.1	  	Exclusivity
	Schedule 10.2(g)	  	Change in Law
	Schedule 10.2(o)	  	Minimum ROI
	Schedule 10.2(p)	  	Financial Covenants
	Schedule 11.2	  	Purchase of Accounts by Retailer Upon Termination
	Schedule 11.2(a)(1)	  	[***]
	Schedule 11.2(a)(2)	  	[***]
	Schedule 11.3	  	Fair Market Value
	Schedule 11.3(1)	  	Fair Market Value Appraisal Guidelines
	Schedule 11.4	  	Bank’s Rights Upon Retailer’s Failure to Purchase Accounts
	Schedule 11.4(1)	  	Competitor Stores
	Schedule 15.3	  	Assignment
	Schedule 15.4	  	Outsourcing; Subcontracting
	Schedule 15.4(1)	  	Geographical Location of Services
	Schedule A-1	  	Credit Review Point
	Schedule A-2	  	Unamortized Signing Bonus

  
 iv 

 This AMENDED AND RESTATED CO-BRAND AND PRIVATE LABEL CREDIT CARD CONSUMER PROGRAM
AGREEMENT (the “Agreement”) is made as of February 24, 2016 by and between Stein Mart, Inc. (“Retailer”), with its principal place of business at 1200 Riverplace Boulevard, Jacksonville, FL, 32207, and
Synchrony Bank with its principal place of business at 170 West Election Drive, Suite 125, Draper, Utah 84020 (“Bank”). Certain capitalized terms used in this Agreement are defined in the attached Appendix A. 

WHEREAS, Retailer is in the business of selling consumer goods at retail through the Retailer Sales Channels and the Retailer Website; 

WHEREAS, among other things, Bank establishes programs to extend and service bank card and private label credit programs to qualified consumer
customers for the purchase of products from various merchants; 
 WHEREAS, Bank and Retailer have entered into that certain Amended and
Restated Co-Brand and Private Label Credit Card Consumer Program Agreement dated as of October 3, 2011 (as amended, the “Prior Agreement”), the purpose of which is to provide a co-branded and private label consumer credit card
program in the United States for retail customers of Retailer (the “Prior Program”); 
 WHEREAS, the Prior Agreement will
expire by its terms on September 30, 2018; 
 WHEREAS, Retailer and Bank wish to provide for the continuation of the Prior Program on
the terms and conditions set forth below; and 
 WHEREAS, in connection with their mutual desire to continue the Prior Program, and as a
material condition to the continuation thereof, Bank and Retailer wish to amend and restate the Prior Agreement as set forth herein pursuant to which Bank will provide a co-brand credit card revolving consumer credit program and a private label
revolving consumer credit program to qualified consumer customers of Retailer; 
 NOW, THEREFORE, in consideration of the following terms
and conditions, and for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Retailer and Bank agree as follows: 

ARTICLE 1 — CONTINUATION OF CO-BRAND PROGRAM AND PLCC PROGRAM; 

SCOPE AND OBJECTIVES OF THE PROGRAM 

1.1 Continuation of Co-Brand Program and PLCC Program. 

(a) Bank and Retailer are entering into this Agreement to continue the Prior Program established under the Prior Agreement to
provide a co-branded revolving consumer credit card program (the “Co-Brand Program”) and a private label revolving consumer credit card program (the “PLCC Program”), each of which is made available to qualified
consumers for the financing of purchases of products and services through Retailer Sales Channels and, in the case of the Co-Brand Program, from other retailers at Non-Retailer Locations, all in accordance with the terms of this Agreement. The PLCC
Program and Co-Brand Program are collectively referred to as the “Program.” Each of 

  
 1 

 
Bank and Retailer acknowledges and agrees that the Prior Agreement shall continue through the close of business on the day immediately preceding February 1, 2016 (the “Effective
Date”) and, as of the Effective Date, the terms of this agreement shall amend and restate the Prior Agreement in its entirety as provided herein (except as expressly set forth herein). 

(b) [Intentionally Omitted]. 

1.2 Scope of the Program. 

(a) During the Term of the Agreement, Retailer shall make the Program available to its customers, including accepting and
transmitting Account applications and accepting Credit Cards in accordance with the Operating Procedures through all Retailer Sales Channels. Bank will extend credit directly to Cardholders under the Program to finance Co-Brand Purchases and PLCC
Purchases, as well as Non-Retailer Purchases. 
 (b) The Program is intended to be used by Cardholders for purchases made
primarily for personal, family or household use and Bank does not intend to extend credit under the Program primarily for purchases made for commercial and business purposes. 

(c) The parties agree that with respect to the management and administration of the Program, the parties shall be guided by the
following objectives (“Program Objectives”), which shall in no event override or limit any of the express rights or obligations of the parties hereunder: (i) to increase Retailer’s sales and profitability; (ii) to
provide high-quality customer service in order to preserve and enhance good will associated with Retailer’s brand, and build customer loyalty to Retailer; (iii) to provide services tailored to the unique characteristics of the
Retailer’s customer base including through innovative customer relationship management programs; (iv) to generate new Accounts and develop long-term relationships with Cardholders; (v) to successfully develop a competitive rewards
program that complements Retailer’s strategy; (vi) to integrate seamlessly with Retailer’s marketing and provide additional customer insights and analytics; (vii) to operate the Program in a competitive manner; and (viii) to
operate the Program in a manner that is profitable for Bank. 
 ARTICLE 2 — RESPONSIBILITIES UNDER THE PROGRAM 

2.1 Bank’s Responsibilities. During the Term of this Agreement, Bank’s responsibilities in conducting the Program include the
following: 
 (a) Extend consumer credit to qualified customers of Retailer in accordance with this Agreement and the
Cardholder Agreements. 
 (b) Provide all servicing for the Accounts, including customer service and collections. 

(c) Bear all credit and fraud losses as provided in Section 7.1. 

  
 2 

 (d) Provide the dedicated/designated Program team described on
Schedule 2.1(d) to support the Program, with the functions and qualifications identified on Schedule 2.1(d). 

(e) Establish in accordance with the terms of this Agreement the Cardholder Terms as set forth in Section 7.3 hereto. 

(f) Develop, produce and deliver to Retailer at a central location, Bank’s Credit Card Applications and Cardholder
Agreements and other standard Program Materials. 
 (g) Produce and distribute Credit Cards and Credit Card carriers in
accordance with a design provided by Retailer that meets Bank’s specifications. 
 (h) Establish (and modify from time
to time subject to Section 5.3) the credit criteria used to evaluate Credit Card Applications subject to the Minimum Credit Targets outlined on Schedule 7.4(c) hereto. 

(i) Establish (and modify from time to time subject to Section 5.3) the risk management policies for the Program subject
to the Minimum Credit Targets outlined on Schedule 7.4(c) hereto. 
 (j) Continue to make available to Retailer
instant credit facilities for the real time, immediate decisioning and extension of credit to qualifying persons for real-time purchases by such persons. 

(k) Receive and process Credit Card Applications electronically, and to the extent agreed by the parties, by mail, by telephone
and through the internet. 
 (l) Implement and maintain a system whereby Retailer’s customers may submit electronic
Credit Card Applications at the point-of-sale, at the customer service desk, and through Retailer’s website in connection with internet based sales , and receive instant credit decisions subject to the Service Level Standards outlined on
Schedule 7.16 hereto. 
 (m) Assign (and modify from time to time subject to Section 5.3) credit lines (subject
to the Minimum Credit Targets outlined on Schedule 7.4(c) hereto), authorize charges, and service Accounts in accordance with the terms of this Agreement. 

(n) Prepare and deliver Bank inserts and periodic billing statements, and facilitate the placement of Retailer inserts included
with such statements, Privacy Policy notices, and change in terms notices to Cardholders with Active Accounts. 
 (o) Provide
separate, dedicated toll-free numbers for inquiries from customers and Retailer personnel. 
 (p) Receive and post payments,
collect Accounts, and take all further actions Bank deems necessary or appropriate in connection with Account administration. 

  
 3 

 (q) Ensure that all Cardholder Agreements, billing statements and solicitations
conducted by Bank, and all of Bank’s activities in originating and administering Accounts, comply with all Applicable Law. 

(r) Administer the Cardholder Rewards Program in accordance with this Agreement. 

(s) Maintain and operate the Bank Webpage in connection with the Program. 

(t) Maintain a log of all Account Documentation used in the Program as well as record of all changes to such Account
Documentation. 
 (u) Resolve Cardholder disputes pursuant to the dispute resolution policy required by the Association
chargeback rules, the Operating Procedures and/or Article 8, as applicable. 
 (v) Provide to Retailer Cardholder transaction
data, as set forth in Section 7.15, to the extent not prohibited by Applicable Law or Reasonable Financial Services Practices. 

(w) Participate in the testing of Retailer’s disaster recovery plan; provided, that each party shall pay its own
costs in connection with such testing. 
 (x) Safeguard, protect and treat as Confidential Information the Cardholder
Information and all customer lists provided to Bank by Retailer. 
 (y) Promptly forward any complaints regarding Retailer to
Retailer. 
 (z) Comply with Applicable Law related to Bank’s participation in the Program, including preparing Account
Documentation, setting of Cardholder Terms, the Credit Card Application evaluation process, and billing and collection of charges on the Accounts. 

(aa) Conduct and perform all other responsibilities of Bank as set forth in this Agreement. 

2.2 Retailer’s Responsibilities. Retailer’s responsibilities in conducting the Program include the following: 

(a) In consultation with Bank, provide to Bank a design meeting Bank’s specifications for use in producing Credit Cards
(as well as reviewing other Retailer-branded customer communications); provided, however, that Bank shall have the right after consultation with Retailer to make reasonable changes to the design
of such Credit Cards and Retailer-branded customer communications, to the extent necessary to comply with Applicable Law or due to Reasonable Financial Services Practices, or to the extent Bank has made such changes with respect to the Majority of
Comparable Programs. 

  
 4 

 (b) Solicit new Accounts through in-store instant credit procedures including
procedures at point of sale (in accordance with this Agreement) and display of customized store signage, Credit Card Application holders, and other promotional materials provided by Bank and paid for from the Marketing Fund as contemplated in
Schedule 6.2(e) in the Retailer Sales Channels pursuant to the Marketing Plan. 
 (c) Accept Credit Cards and obtain
authorizations from Bank for customer purchases through each Retailer Sales Channel in accordance with and otherwise conduct its activities relating to the Program in compliance with the Operating Procedures. 

(d) Actively promote the Program in its stores and, as appropriate at Retailer’s sole discretion, through media
advertising developed by Retailer as part of its marketing strategy, and actively promote the use of Credit Cards to its customers as the preferred payment vehicle. 

(e) Train relevant personnel sufficiently so as to be able to properly fulfill Retailer’s responsibilities under the
Program, it being understood that Bank shall develop and bear the cost associated with the production of training materials for the Program and that Bank shall administer programs to instruct the trainers responsible for administering the training
contemplated hereunder. 
 (f) Except for Credit Card Applications sent directly to Bank by applicants, transmit Credit Card
Applications to Bank electronically through the establishment of direct connectivity to Bank’s systems and, on a periodic basis, forward to Bank paper Credit Card Applications in accordance with the Operating Procedures. 

(g) Subject to Schedule 5.3(d), at Retailer’s expense, maintain Retailer’s POS technology and related systems
to the extent necessary for the continued integration of such POS technology and related systems with Bank’s instant credit systems. 

(h) Only submit Charge Transaction Data in accordance with the terms and conditions set forth on Schedule 2.2(h) hereto.

 (i) Perform its responsibilities under this Agreement and the Program, and conduct its activities as a Retailer, including
its policies, products, business, point-of-sale and sales practices (including in connection with internet, catalogue and telephone sales), and advertising, in compliance with Applicable Law. 

(j) Only use documents and forms in connection with the Program (other than such documents and forms as are non-public and
internal to Retailer) that were provided to Retailer, or approved in writing, by Bank (and only the latest version of such documents); and refrain from modifying any such approved documents or forms without Bank’s prior consent (which consent
shall not be unreasonably withheld or delayed with respect to the look and feel of customer-facing materials or the use of Retailer Marks in such documents or forms). 

(k) Cooperate in the resolution of any Cardholder disputes, respond within twenty (20) days to any dispute forwarded to
Retailer from Bank, and forward to Bank promptly after receipt by Retailer copies of any communication relating to an Account received from any person. 

  
 5 

 (l) Not seek or obtain any special agreement or condition from, nor discriminate
in any way against, Cardholders or any person with respect to the terms of any Account transaction; and not charge any credit surcharge, application, processing or other Program-related fee to Cardholders; provided, however, Retailer
may impose a surcharge if (i) such surcharge is charged in connection with the acceptance of the Co-Brand Card, (ii) Retailer imposes such surcharge on cardholders of substantially all other similar credit card products of the same
Association, (iii) the parties mutually agree on the manner in which the surcharge will be disclosed on billing statements to comply with Applicable Law and the allocation of costs for any necessary systems changes, (iv) Retailer complies
with all Applicable Law and (v) Retailer provides Bank with at least three (3) months’ advance notice of imposing such surcharge. 

(m) Comply with Bank’s written instructions regarding actions to be taken, or not taken, pursuant to the Program with
respect to compliance with Applicable Law. 
 (n) Maintain a policy for the exchange, return, and adjustment of products and
services which is adequately communicated to customers and is in accordance with all Applicable Laws (in connection therewith Retailer represents and warrants that, as of the Effective Date, the return policy in effect is the same as that delivered
by Retailer to Bank prior thereto); notify Bank in advance of (if practicable), but in any event within fifteen (15) days after, any change in such return policy following the Effective Date; provide a credit to the applicable Account upon the
return of a good or service financed on such Account (but do not credit an Account in any case where the purchased good or service was not originally financed on an Account); and include the resulting credit in the next transmission of Charge
Transaction Data to Bank (but in no event more than one (1) Business Day after the credit was issued). 
 (o) Retain
copies, in electronic or other retrievable format that complies with Applicable Law, all credit and transaction documents (including all charge slips and credit slips) for at least twenty-five (25) months (or such longer period as may be
required by law); except as otherwise provided for herein in connection with disputes or chargebacks, provide copies of any of the foregoing to Bank within twenty (20) days after Bank’s request; and, in consultation with Bank, produce and
use charge slips and credit slips which are able to be captured and reproduced electronically via signature capture technology or other methods. 

(p) Except as otherwise agreed to in writing by Retailer and Bank, Retailer will submit to Bank for approval any credit-related
advertising, disclosures, or other documents, forms, terms and conditions, and other content in connection with the Program that have been prepared by Retailer (or its vendors or contractors) prior to disseminating or otherwise using such materials
(such materials are collectively referred to herein as “Retailer-Generated Materials”), and Bank shall notify Retailer of its decision within five (5) Business Days of Retailer’s submission of such Retailer-Generated
Materials; provided, however, Retailer may use Retailer-Generated Materials 

  
 6 

 
without seeking additional approval from Bank to the extent such Retailer-Generated Materials conform to templates that were previously approved by Bank for Retailer’s use, and Bank has not
notified Retailer that it has revoked approval of such templates. 
 (q) Comply with Applicable Law related to the operation
of Retailer’s business, including the offering, sale and return of goods and services, and Retailer’s participation in the Program. 

2.3 Association Rules. 

(a) Retailer and Bank agree that, as of the Effective Date, the initial Association for all Co-Brand Credit Cards shall be
MasterCard (the “Initial Association”). Retailer further acknowledges that Bank has entered into an arrangement with the Initial Association through which Bank is obligated to maintain the MasterCard brand on the Co-Brand Credit
Cards issued under the Program through September 30, 2018 (which date, or such earlier date at which Bank is no longer obligated to maintain the MasterCard brand on the Co-Brand Credit Cards issued under the Program is called the
“Branding Expiration Date”), and Retailer agrees that (i) prior to the Branding Expiration Date it shall not rebrand the Co-Brand Credit Cards with the brand of any payment network (e.g., [***]) other than MasterCard,
and (ii) it shall include a requirement in any credit card program agreement or other arrangement with any Nominated Purchaser which acquires the Program Assets prior to the Branding Expiration Date (which Retailer shall use commercially
reasonable efforts to enforce) that such Nominated Purchaser shall maintain the MasterCard brand on the Co-Brand Credit Cards through the Branding Expiration Date. 

(b) Retailer shall have the right to enter into an independent relationship with and change the Association once during the
Term at any time during the [***] following the Branding Expiration Date (i) [***], to [***] or (ii) as mutually agreed by the parties, to any other Association; provided, however, that (x) such
change in Association will not occur in the [***] of the Term or during any holiday IT freeze period; (y) Retailer must provide Bank with notice of its election to change the Association at least [***] the effective date of such a
change; and (z) if such new Association is [***]. Upon Retailer’s request, Bank shall provide to Retailer a [***] of Retailer’s request thereof. Retailer will bear (or cause the new Association to bear) the expense for
Bank’s [***]. Any financial, marketing or other support that Retailer receives from the new Association as a result of the agreement to use such new Association for payment network services for the Program shall belong entirely to
Retailer, and Bank shall have no right in or to such financial, marketing or other support; provided, however, that [***]. 

(c) Each of Bank and Retailer acknowledges and agrees that the Co-Brand Program shall be operated in accordance with the
Association Rules. If either party becomes aware of any material inconsistency between the Association Rules and any provision of this Agreement that applies to the Co-Brand Program, such party shall timely advise the other party of any such
inconsistency. Bank shall have sixty (60) days to negotiate with the Association to resolve such conflict with such Association Rules after a party gives notice to the other party of such conflict. If after the sixty (60)-day

  
 7 

 
negotiation period, Bank cannot resolve such conflict, the parties shall use commercially reasonable efforts to modify this Agreement to the extent necessary to address such conflicting
Association Rules. The parties further acknowledge and agree that, in the event of any such modification, the modified provision(s) of this Agreement shall preserve, to the extent practicable, the rights and obligations of the parties as
contemplated by this Agreement. 
 2.4 Credit Approval. Subject to Retailer’s obligations below, as of the Effective Date, Bank
shall maintain the capability to permit in-store credit decisions based on Credit Card Applications submitted through Retailer Sales Channels at POS and customer service locations, including the capability to allow Cardholders to immediately utilize
their Accounts for Co-Brand Purchases and PLCC Purchases, as the case may be. Unless otherwise prohibited by Applicable Law or to the extent Applicable Law is unsettled and Retailer obtains reasoned written legal advice from counsel that there is
significant potential liability, Retailer shall maintain and implement its privacy policies and practices in a manner that permits it to provide Bank with the information necessary to permit the legal and effective use of instant credit at POS
locations. 
 2.5 Allocation of Program Expenses. Unless otherwise specifically provided in this Agreement, each party will be
responsible for all costs and expenses incurred by such party in connection with the negotiation of this Agreement, exercising its rights and complying with its obligations under this Agreement. The general allocation of expenses between the parties
is set forth in Schedule 2.5 hereto; provided, however that such schedule will not limit any provision hereof otherwise expressly providing for the specific allocation or reimbursement of expenses between the parties. 

ARTICLE 3 — SETTLEMENT 

3.1 Settlement Procedures. 

(a) Retailer will transmit Charge Transaction Data in respect of PLCC Purchases and Co-Brand Purchases to Bank each Business
Day and otherwise in accordance with the Operating Procedures. If Charge Transaction Data is received by Bank’s processing center before 4:00 a.m. (Eastern Time) on any Business Day, Bank will process the Charge Transaction Data and initiate
payment on the same Business Day. If the Charge Transaction Data is received after 4:00 a.m. (Eastern Time) on any Business Day, or at any time on a day other than a Business Day, Bank will process the Charge Transaction Data and initiate payment on
the next Business Day. 
 (b) Bank will, upon receipt, verification and processing of Charge Transaction Data during the
Term, remit to Retailer in respect of such Charge Transaction Data, an amount equal to (i) the sum of (A) the Retailer Royalty and (B) the total charges identified in such Charge Transaction Data less (ii) the sum of (A) the
total amount of any credits included in such Charge Transaction Data (and the Retailer Royalty corresponding to each such credit); (B) any amounts charged back to Retailer pursuant to Article 8 (and the Retailer Royalty corresponding to each
such charged back amount); (C) the total amount of any In-Store Payments included in such Charge Transaction Data, and (D) at Bank’s option, any other amounts then due and owing from Retailer to Bank

  
 8 

 
(including such amounts as may be due under Schedule 10.2(p)). Bank shall not be obligated to fund any Charge Transaction Data submitted by Retailer more than fifteen (15) days after
the date of the applicable purchase transaction. 
 3.2 Settlement via Association Network; Direct Settlement Process. 

(a) All Non-Retailer Purchases under the Program shall be processed through the Association pursuant to the terms and
conditions of the Association system and the terms and conditions of any applicable agreement between the merchant accepting the card and its merchant/acquiring bank. 

(b) As of the Effective Date, all Co-Brand Purchases at Store Locations shall be settled through Bank without the imposition of
any interchange fees by any Association (“Direct Settlement Process”). If after the Effective Date, the applicable Association Rules impose any such interchange fees, Bank will rebate to Retailer the amount of such interchange fees
actually received by Bank pursuant to Schedule 4.1. 
 3.3 Bank Payment Terms. 

(a) Bank will transfer funds payable to Retailer under this Agreement via wire transfer to an account maintained in the name of
Retailer, pursuant to written instructions delivered to Bank by Retailer. 
 (b) Notwithstanding any other provision of this
Agreement, Bank shall have all of the rights and remedies to which it is entitled hereunder and under Applicable Law to exercise the rights of set-off and/or recoupment with respect to Retailer’s obligation to pay Bank any amounts due to it
under this Agreement, including chargebacks. Retailer expressly acknowledges that all payment rights between the parties under this Agreement, including Bank’s duty to settle with Retailer for Charge Transaction Data pursuant to
Section 3.1, and Bank’s right to chargeback to Retailer under Section 8.1, shall be deemed to be a “single integrated transaction” for purposes of determining Bank’s right of recoupment. Retailer expressly agrees that
in the event Bank seeks relief from the automatic stay under 11 U.S.C. § 362 to exercise any such right of set-off, that Retailer will consent to the entry of an order granting relief from the stay. Nothing in this Section is intended to limit
either Bank’s or Retailer’s common law right of set-off and/or recoupment. 
 3.4 Retailer Payment Terms. Unless otherwise
provided for elsewhere in this Agreement, any amounts payable by Retailer to Bank under this Agreement will be due when invoiced by Bank and shall be paid in immediately available funds within fifteen (15) days after the date of such invoice.
Unless the parties otherwise agree, Retailer will transfer funds payable to Bank under this Section 3.4 via wire transfer to a deposit account maintained in Bank’s name pursuant to written instructions delivered to Retailer by Bank. 

ARTICLE 4 — COMPENSATION 

4.1 Compensation. The compensation payable by Bank to Retailer shall be as set forth in Schedule 4.1 hereto. 

  
 9 

 ARTICLE 5 — OPERATING COMMITTEE AND RELATIONSHIP MANAGEMENT 

5.1 Establishment of an Operating Committee. Retailer and Bank shall establish a committee of at least five (5) members from each
party consisting of at least two (2) senior managers from each party (the “Operating Committee”). One of the two managers from Bank shall be a senior executive in its credit card business. One of the two managers from Retailer
shall be a senior officer responsible for credit functions. The names of the appointees as of the Effective Date are set out in Schedule 5.1 hereto. The parties may mutually agree in writing on such other number of Operating Committee members
so long as Retailer on one hand and Bank on the other hand are equally represented. Representatives on the Operating Committee shall have overall responsibilities for the Program for their respective organizations. The parties shall endeavor to
maintain continuity in the composition of the Operating Committee. Notwithstanding the preceding sentence, the parties may substitute Operating Committee members provided that each party shall provide the other party with as much prior notice of any
such substitution as is reasonably practicable under the circumstances. 
 5.2 Functions of the Operating Committee. The Operating
Committee shall be responsible for the overall strategic direction of the Program. Additionally, the Operating Committee shall: 

(a) Designate representatives from each party to jointly construct the Marketing Plan for each Program Year, which
representatives shall include the Bank Relationship Manager and Retailer Relationship Manager. 
 (b) Review and approve the
Marketing Plan within thirty (30) days following the Effective Date for the first Program Half-Year and thirty (30) days before the beginning of each Program Half-Year for all subsequent Program Half-Years; 

(c) Review and approve amendments to the Marketing Plan made during the course of any Program Half-Year; 

(d) Review the marketing activities and marketing performance of the Program; 

(e) Subject to Section 7.3, approve changes to the Cardholder Terms as initially set forth in Schedule 7.3 hereto;

 (f) Approve all material modifications to the terms and conditions with respect to the Cardholder Rewards Program set
forth on Schedule 6.5; 
 (g) Review major trends and projections related to the Program in areas such as Credit Card
Applications volume, approval rates, activation rates and credit penetration; 
 (h) Monitor the terms, conditions and
performance of competing co-branded and private label card programs; 
 (i) Review the performance of the Service Level
Standards set forth in Section 7.16 herein; 

  
 10 

 (j) Monitor compliance of the Program with Applicable Law; 

(k) Resolve disputes that may arise between the parties; 

(l) Approve the use of any third-party (e.g., subcontractors or outsourced service providers), other than any affiliate of the
parties, to perform any of the obligations of the parties under the Program after the Effective Date, unless such third party is used by Bank to perform Bank’s obligation in connection with the Majority of Comparable Programs. 

(m) Evaluate and approve changes to any of the following: 

(i) offering of new Credit Cards, form factors or approved ancillary products; 

(ii) material changes to the Operating Procedures; 

(iii) changes to the privacy provisions set forth in Section 15.6 herein and to the Privacy Policy set forth in
Schedule 7.2(b) hereto; and changes or additions to the Service Level Standards applicable to the Program; 
 (n) If
Retailer so requests, review issues raised by Retailer (but excluding the chargeback of individual transactions) with respect to the process through which chargebacks are decisioned by Bank; 

(o) Determine whether (i) Bank should suspend the extension of credit under the Program [***] or (ii) Bank’s
extension of credit under the Program should be reinstated if such a suspension has occurred; and 
 (p) Carry out such other
tasks as are assigned to it by this Agreement or jointly by the parties. 
 5.3 Operating Committee Meetings; Dispute Resolution.

 (a) The Operating Committee shall meet no less than once each calendar quarter. Either party may convene special
meetings other than those regularly scheduled by the Operating Committee. Meetings may be in person or by telephone with each party bearing its own expenses. 

(b) All decisions of the Operating Committee are to be unanimous decisions with each party having one (1) vote. At least
one (1) representative of each party must be present for a quorum of the Operating Committee. 
 (c) If a majority of
the Operating Committee members constituting a quorum at any meeting fail to agree on any matter (a “Disputed Matter”) presented before the Operating Committee within ten (10) Business Days after the relevant initial vote, then
initially a Senior Vice President of the Retail Card Group of Synchrony Bank and the 

  
 11 

 
Chief Financial Officer of Retailer, whether or not on the Operating Committee (or any other similarly ranking officer of Bank or Retailer, as the case may be, who is not an Operating Committee
Member and shall have been designated in writing by Bank or Retailer, as applicable) (collectively, “Senior Officers”) shall in good faith attempt to resolve the Disputed Matter. Any resolution by such Senior Officers shall be
deemed to be the action and approval of the Operating Committee for purposes of this Agreement. If after ten (10) Business Days, the Disputed Matter remains unresolved by such Senior Officers of Bank and Retailer, the failure to agree shall
constitute a deadlock. In the event of a deadlock, the final decision shall rest with Retailer in the case of Retailer Matters and with Bank in the case of Bank Matters, each of which shall, except as otherwise provided herein, exercise its
discretion reasonably and in good faith. If a deadlock should occur with respect to an issue not expressly specified as a Retailer Matter or a Bank Matter, the status quo of the Program shall remain and the Disputed Matter under consideration shall
be deemed not adopted by the Operating Committee. 
 (d) In accordance with and subject to this Section 5.3 and
Schedule 5.3(d), Retailer shall have the ultimate decision making authority with respect to Retailer Matters and Bank shall have the ultimate decision making authority with respect to Bank Matters. 

5.4 Relationship Managers; Other Designated Bank Employees. Bank and Retailer shall designate individuals with responsibility for the
day-to-day management and administration of the Bank/Retailer relationship and the Program as set forth in Schedule 5.4 hereto. 

5.5 Expedited Review. In the event a Disputed Matter concerns any matter that has material economic, risk or compliance implications to
Bank, Retailer or the Program, including the Cardholder Terms or the risk management policies (a “Material Issue”), either Bank or Retailer may request an expedited review of such Material Issue (an “Expedited
Review”). Expedited Review shall consist of the following procedures: 
 (a) A notice to request Expedited Review
(an “Expedited Review Notice”) shall be provided by either party to the other party. 
 (b) The Senior
Officers shall meet in person or by telephone within five (5) Business Days after the receipt of the Expedited Review Notice and will attempt in good faith to resolve any Material Issue. In the event the Senior Officers do not resolve any
Material Issue within five (5) Business Days after the receipt of the Expedited Review Notice, if such Disputed Matter is a Retailer Matter, it will be decided within the sole discretion of Retailer, and if such Disputed Matter is a Bank
Matter, it will be decided within the sole discretion of Bank. 
 5.6 Formal Proceedings Prior to Dispute Resolution Procedures.
Notwithstanding Sections 5.3 and 5.5, (a) in the event of exigent circumstances (including a material breach of this Agreement by Retailer) that would require Bank to take action before the end of the dispute resolution process in
Section 5.3 or the Expedited Review process in Section 5.5 in order to avoid material loss (including to prevent material fraud) or a violation of Applicable Law, Bank may exercise its rights with respect to Bank Matters (including the

  
 12 

 
suspension of Bank’s extension of credit under the Program) upon notice to Retailer without undertaking the dispute resolution procedures in Section 5.3 or the Expedited Review
procedures in Section 5.5, and (b) a party may institute formal proceedings without undertaking the dispute resolution procedures to (i) avoid the expiration of any applicable limitations period, (ii) to preserve a party’s
superior position with respect to another creditor of the other party and (iii) seek any provisional or other remedy including specific performance, injunctive relief or a temporary restraining order from any court of competent jurisdiction, as
may be necessary, in the aggrieved party’s sole discretion, to protect its rights under this Agreement. 
 ARTICLE 6 — MARKETING
OF THE PROGRAM 
 6.1 Semi-Annual Marketing Plans. During the Term, Bank and Retailer will work together in good faith to
formulate and agree upon a Marketing Plan as provided in Section 5.2(b) herein. Bank shall prepare an initial draft of each Marketing Plan and submit it to the Operating Committee for consideration. Each semi-annual Marketing Plan shall fully
support the Retailer’s retail marketing plan and set forth the manner in which amounts in the Marketing Fund (as defined below) will be expended, and which party shall be responsible for any expenditure(s) in excess of the Marketing Fund. The
Operating Committee may from time to time agree on additional specific marketing activities for the Program. 
 6.2 Marketing Fund.
Bank will establish and administer the Marketing Fund in accordance with the provisions set forth on Schedule 6.2 hereto. 
 6.3
Additional Bank Marketing Support. Upon the reasonable request of Retailer from time to time, consistent with the Marketing Plan, Bank shall perform the marketing functions set forth on Schedule 6.3 hereto. 

6.4 Responsibility of Retailer to Promote the Program. Without limiting Retailer’s obligations under the Marketing Plan, Retailer
will actively support and promote the Program in accordance with Schedule 6.4 hereto. 
 6.5 Cardholder Rewards Program.
Retailer shall establish the Cardholder Rewards Program and fund rewards redeemed by Cardholders in accordance with the terms set forth in Schedule 6.5 hereto. 

6.6 Cross-Selling. Bank or its designees may solicit Cardholders for certain products in accordance with the terms set forth in
Schedule 6.6 hereto. 
 ARTICLE 7 — OTHER AGREEMENTS 

7.1 Ownership of Accounts; Credit Losses. 

(a) Bank is and will be the sole and exclusive owner of all Accounts and Account Documentation, except for any interest in
Retailer-licensed marks and co-interest in sales slips and other evidence of charges, and will be entitled to receive all payments made by Cardholders on Accounts except when Retailer has exercised its right to purchase, or to arrange for the
purchase of, the Accounts and the purchase transaction has been closed. Bank shall be identified as the creditor and owner of the Accounts for 

  
 13 

 
all purposes, and Retailer shall not represent or imply otherwise. Retailer acknowledges that it has no right, title or interest in any Accounts or Account Documentation and will not, at any
time, have any right to any proceeds or payments made under the Accounts unless Retailer subsequently purchases or otherwise acquires such Accounts from Bank. Retailer authorizes and empowers Bank to sign and endorse Retailer’s name upon any
checks, drafts, money orders or other forms of payment in respect of any Account that may have been issued by the Cardholder in Retailer’s name. This limited power of attorney conferred in this Section 7.1 is deemed a power coupled with an
interest and will be irrevocable prior to the Final Liquidation Date. Nevertheless, Bank shall have full liability to Retailer for any misuse of such power of attorney. 

(b) Bank will bear all credit losses and fraud losses on Accounts (other than as permitted by Bank’s chargeback rights in
Article 8 and other than credit losses and fraud losses incurred after the Accounts are purchased or otherwise acquired by Retailer or a third party). 

(c) Consistent with Applicable Law, Reasonable Financial Services Practices and Association Rules, Bank shall maintain a fair
dispute resolution policy with respect to Accounts and will operate such policy so as to maintain, within reason, the goodwill of Bank and Retailer with their customers; provided that Retailer shall cooperate with Bank in the resolution of
disputes pursuant to such policy. 
 7.2 Ownership and Use of Cardholder Information. The ownership and use of Cardholder Information
by the parties shall be governed by the terms of Schedule 7.2 hereto. Bank shall undertake to assure that its disclosure and privacy policies are in full compliance with all Applicable Law. 

7.3 Cardholder Terms. As of the Effective Date, the purchase annual percentage rate, fees and charges and all other key Cardholder
credit terms applicable to the Accounts (the “Cardholder Terms”) are set forth on Schedule 7.3. Retailer acknowledges that Co-Brand Credit Cards and Private Label Credit Cards may be subject to different financial and/or
other Cardholder Agreement terms. The Cardholder Terms shall only be modified upon approval of the Operating Committee and any modifications shall [***]; provided, however, that Bank may modify such Cardholder Terms without the
prior approval of the Operating Committee as required by Applicable Law or Reasonable Financial Services Practices subject to prior notice to Retailer and Retailer’s right to Expedited Review prior to the implementation of such change. 

7.4 Credit Criteria. 

(a) Retailer acknowledges and agrees that Bank may: (i) subject to Section 7.4(e), issue either a Private Label
Credit Card or a Co-Brand Credit Card to any new applicant for an Account; and (ii) issue at any time and from time to time a Co-Brand Credit Card to any existing Cardholder or group of Cardholders as a replacement for an existing Private Label
Credit Card; provided, however, that (x) if a Cardholder requests to keep the Private Label Credit Card, Bank will honor such request and (y) Retailer and Bank agree that decisions to issue Co-Brand Credit Cards as
replacements for existing Private Label Credit Cards on a Program-wide basis (either to individual Cardholders 

  
 14 

 
based on the use of systemic thresholds or simultaneously to a group of Cardholders) shall be mutually agreed upon in advance by Bank and Retailer. For the avoidance of doubt, nothing contained
in this Section 7.4(a) shall limit Bank’s ability to establish or modify the credit criteria used in evaluating applicants and Cardholders under the Program pursuant to Section 7.4(b). 

(b) Bank shall establish in its discretion and may modify from time to time any or all of the credit criteria used in
evaluating applicants under the Program (including the creditworthiness of individual applicants, the range of credit limits to be made available to individual Cardholders and whether to suspend or terminate the credit privileges of any Cardholder);
provided that Bank shall provide the Operating Committee with prior notice of, and consult with the Operating Committee with respect to, any proposed material modification to the credit criteria or risk management policies, and shall seek
input from Retailer on any communications to Cardholders required in connection with such change prior to implementation. If Retailer has an issue regarding any change to the credit criteria or risk management policies, Bank and Retailer shall
discuss such issue and escalate in accordance with Sections 5.5 and 5.6(a). Bank shall ensure that the credit criteria and risk management policies that Bank utilizes to manage Program risk will be [***]. 

(c) The provisions of Schedule 7.4(c) hereto shall apply with respect to the Minimum Credit Targets for the Program.

 (d) Within sixty (60) days following the Effective Date, Bank and Retailer shall meet and prepare a joint plan to
address ways to materially improve online approval rates, which such plan may include offering the Private Label Credit Card only online. 

(e) Bank agrees to work together with Retailer to develop a post-[***] strategy and plan (“[***]”),
subject to the parties agreeing on a feasibility and implementation plan that will allow implementation within [***] of finalizing such implementation plan, unless otherwise agreed by the parties. This implementation plan will include
estimated expenses which will be approved by Retailer and mutually agreed upon milestones and timelines. Extraordinary costs of implementing a [***] will be treated as a Program expense; provided that costs incurred in adoption of an
existing [***] will not be included as a Program expense, except for direct costs specific to Retailer implementation. Ongoing operational costs for this functionality will be treated as Program expenses. As part of the implementation plan,
the parties will agree [***]. For clarity, Retailer’s desired form of [***] would be based on the existing [***]. 

7.5 Operating Procedures. The Operating Procedures in existence immediately prior to the Effective Date shall remain in effect under
this Agreement as Bank may amend them from time to time upon prior notice to and consultation with Retailer. 
 7.6 Credit Review
Point. Bank shall provide a credit allocation for the Program in the amount of the Credit Review Point. Bank will not be obligated to make any extension of credit under the Program if, after such extension, the aggregate Indebtedness for all
Accounts would exceed the credit line for the Program then in effect. For the avoidance of doubt, all 

  
 15 

 
Indebtedness attributable to both Private Label Accounts and Co-Brand Accounts (including Indebtedness relating to Non-Retailer Purchases) shall be included in the calculations in respect of
Indebtedness and the Credit Review Point under this Section 7.6. If at any time the aggregate Indebtedness with respect to all Accounts equals or exceeds [***] of the Credit Review Point then in effect, then within ninety (90) days
thereafter, Bank will select one of the following options and give Retailer notice of its selection: 
 (a) Bank may increase
the Credit Review Point to an amount that will accommodate the then outstanding Indebtedness, and anticipated growth in such Indebtedness (as applicable) through the remainder of the Term, based on Bank’s good faith projections. If Bank selects
this option, then Bank’s notice to Retailer will include the amount of the increased Credit Review Point. Retailer shall have the option to terminate the Agreement in accordance with the provisions of Section 10.2(h) of the Agreement if
the Bank’s increase does not satisfy Retailer’s good faith projections of Program growth. 
 (b) Bank may elect not
to increase the Credit Review Point, in which case, Retailer will be entitled to terminate this Agreement in accordance with the provisions of Section 10.2(g) of the Agreement. 

7.7 Retailer Financial Reports. 

(a) If at any time during the Term, Retailer ceases to be obligated to file periodic financial reports with the Securities and
Exchange Commission pursuant to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or ceases to timely satisfy such obligations, Retailer
will: 
 (i) As soon as practicable but in any event not more than ninety (90) days after the end of each fiscal year,
deliver to Bank its audited annual financial statements, including its audited consolidated balance sheet, income statement and statement of cash flows and financial position and accompanying notes to such financial statements. 

(ii) As soon as practicable but in any event not more than sixty (60) days after the end of each fiscal quarter, deliver
to Bank its unaudited quarterly financial statements, including its unaudited consolidated balance sheet, income statement and statement of cash flows, and accompanying notes to such financial statements. 

(b) During the Term, Retailer shall notify Bank upon the public disclosure of the occurrence of the following subject to
restrictions under Applicable Law including securities law, if the obligations of Retailer under an existing credit facility shall have been accelerated and declared due and payable in full prior to the stated maturity date as a result of an uncured
material default under such credit facility, and Retailer shall not have satisfied such obligations after notice of demand for payment in accordance with such credit facility. 

  
 16 

 (c) Within sixty (60) days after the end of each fiscal quarter, Bank shall
provide to Retailer Bank’s quarterly call report. 
 7.8 Inserts and Billing Messages. 

(a) For each billing statement sent to Cardholders during a billing cycle during the Term, Bank will make available to Retailer
a space for two (2) customized statement messages on the billing statement and Bank will include up to two (2) Retailer inserts or other advertisements and communications, including onserts printed on the billing statement (collectively,
“Inserts”) into or with each billing statement to the extent possible without causing an increase in postage costs; provided that Bank shall have the right with respect to the billing statements for any month to utilize one
(1) Insert or statement message in order to (i) send a notice required by Applicable Law in such month (or if Bank reasonably believes a notice is necessary or desirable to protect Bank’s interest in the Accounts), or
(ii) promote Enhancement Products or other cross-sell products and services permitted to be offered under Schedule 6.6. Retailer statement messages and Inserts shall take precedence over all Bank communications with the exception of Bank
notices required by Applicable Law or notices that Bank believes to be necessary or desirable to protect Bank’s interest in the Accounts. For any statement messages or Inserts to be included on or in the billing statements for any given month,
Retailer must provide such statement messages or Inserts to Bank at least thirty (30) days prior to such calendar month. Bank shall promptly notify Retailer if the inclusion of such statement messages or Inserts will cause an increase in
postage costs on such billing statements. If Retailer nonetheless wishes Bank to include Retailer’s statement messages or Inserts on or in such monthly billing statements, then Retailer will provide at least fifteen (15) days prior notice
to Bank to enable Bank to adjust its process and Retailer will pay the incremental postage charges resulting therefrom, reduced by the weight of any non-legally required notices. Retailer will provide copies of all statement messages and Inserts to
Bank at its own cost. Retailer shall retain all revenues it receives from all statement messages and Inserts (other than any statement messages or Inserts promoting the Credit Cards or approved ancillary products that Retailer may permit to be
produced and distributed in accordance with the Marketing Plan). Subject to Applicable Law, Reasonable Financial Services Practices and Bank’s right to protect Bank’s interest in the Accounts, each party shall have the right to reject any
statement message or Insert that the other party may wish to include in or on a billing statement if the rejecting party, in good faith, believes that such message is detrimental to the image of the rejecting party or does not comply with Applicable
Law. 
 (b) The form of all statement messages and Inserts will comply with Bank’s specifications as provided to
Retailer from time to time, and Bank shall have the right to reject any statement message or Insert that Bank reasonably believes is detrimental to the image of Bank or the Program. For the avoidance of doubt, for purposes of Retailer’s rights
under this Section 7.8(b), only Inserts and statement messages regarding the Program, goods and services available for purchase from Retailer under the Program, or such other goods and services (other than financial products or services) as
Retailer may reasonably suggest (with respect to which Bank shall not unreasonably withhold its consent) shall qualify for inclusion in Cardholder billing statements. 

  
 17 

 7.9 Third Party Participation. As of the date of this Agreement, Retailer represents and
warrants that no affiliate of Retailer is engaged in the business of selling goods or services to retail consumers other than those affiliates, if any, whose existence and retail consumer sales activities have been disclosed to Bank prior to the
date hereof. After the Effective Date, Retailer shall require any newly acquired affiliate, to the extent such affiliate does not already operate a credit card business or have a credit card through Bank or another issuer, to enter into a written
agreement with Bank to be a “Retailer” hereunder (on such modified terms and conditions as mutually agreed by the parties), provided, however, that nothing in this Section shall require any newly acquired affiliate to
participate in the Program should it decide not to participate in any Retailer-branded credit or charge card program and the provisions of Schedule 9.1 shall govern with respect to any new affiliate which, as of the date of Retailer’s
acquisition thereof, is participating in a credit or charge card program branded with such affiliate’s name or marks. Notwithstanding the prior sentence, Retailer shall require any newly acquired affiliate which intends to participate in the
Program to execute or authorize the filing of such additional documents (including UCC financing statements) as Bank may reasonably require in accordance with Section 7.13. 

7.10 Use of Names and Marks. 

(a) Retailer hereby grants Bank during the Term, except as extended in accordance with Schedule 11.4, a nonexclusive,
non-transferable, royalty-free license to use the Retailer Marks in connection with the establishment, administration and operation of the Program and the ownership and liquidation of the Accounts (including the exercise by Bank of all of its rights
under this Agreement and under Applicable Law, and the fulfillment of all of Bank’s obligations under this Agreement and under Applicable Law). Bank’s use of the Retailer Marks shall be limited to the materials necessary to Bank’s
administration of the Program (including applications, Cardholder Agreements, Credit Cards, billing statements, privacy disclosures and Cardholder correspondence), as well as to printed, electronic and broadcast matter advertising and promotion of
the Program (collectively, “Program Materials”) and as otherwise provided for in this Agreement. Use of the Retailer Marks in connection with any Program Materials shall be subject to Retailer’s prior approval, which approval
shall not be unreasonably withheld or delayed, and such Program Materials shall be used by Bank in all material respects as approved by Retailer; provided, that once such approval is received, and in the absence of a material alteration
thereto or to the context in which such Retailer Marks are being used by Bank, no further review or approval shall be required for the continued use (including re-printing and re-distribution) of such Program Materials by Bank. Bank acknowledges
that the Retailer Marks, all rights therein, and the goodwill associated therewith, are, and shall remain, the property of Retailer. Nothing herein shall give Bank any proprietary interest in or to the Retailer Marks, except the right to use the
Retailer Marks in accordance with this Agreement, and Bank shall not contest Retailer’s title in and to the Retailer Marks as the same exist as of the date of this Agreement. Bank agrees to include Retailer Marks on all billing statements sent
to Cardholders. 
 (b) Without the prior consent of Bank (which consent shall not be unreasonably withheld or delayed),
Retailer may not use Bank’s name (or the name of any affiliate thereof) or any related marks, logos or similar proprietary designations; 

  
 18 

 
provided, that Retailer may use Bank’s business name, in the nominative sense, in connection with any credit disclosure verbiage included in any advertising of the Program (or any
credit-based promotion offered thereunder) by Retailer. 
 7.11 Intellectual Property. All technology, software, or other material
developed, invented, created or authored by either party in connection with the Program shall belong solely and exclusively to the developing party, including all intellectual property rights relating thereto. 

7.12 Securitization. Bank and its affiliates may securitize, participate or otherwise convey or transfer an interest in, or pledge or
create a lien in respect of, any or all of the Accounts and/or Indebtedness at any time during the Term; provided, however, that (a) Bank shall not purport to grant any rights under this Agreement to a third party in connection
with any such securitization or other financing transaction (including the right to use Retailer Marks), nor shall any third party have any recourse against Retailer or its affiliates with respect to any such securitization or other financing
transaction, (b) Bank shall securitize and enter into other financing transactions only on terms and conditions that permit such arrangements to be unwound in the event that a Nominated Purchaser purchases the Program Assets pursuant to the
terms hereof, and (c) neither Bank nor any person who is a party to such securitization, participation, or other financing transaction involving Indebtedness or any legal or beneficial interest therein shall have the right to use the Retailer
Marks or otherwise refer to Retailer or its affiliates in connection with any securitization, participation, or financing in any disclosure material other than in accordance with traditional and customary standards, or as required under Applicable
Law. If a Nominated Purchaser elects to purchase the Program Assets at the end of the Term, Bank shall transfer the Program Assets to such Nominated Purchaser free and clear of all encumbrances; provided, however, that Bank shall have
one hundred twenty (120) days from the delivery of the Exercise Notice by Retailer to obtain a release of the Program Assets from the securitization or other financing transaction. 

7.13 Grant of Security Interest/Precautionary Filing. 

(a) Both (i) to guard against the possibility that it is determined that Article 9 of the UCC applies or may apply to the
transactions contemplated hereby, and (ii) to secure payment of and performance by Retailer of any and all indebtedness, liabilities or obligations, now existing or hereafter arising pursuant to this Agreement, including indebtedness,
liabilities and obligations that may be deemed to exist in the event of the applicability of Article 9 of the UCC to, and any recharacterization of, any transactions contemplated hereby, Retailer grants to Bank a security interest in all of
Retailer’s right, title and interest, if any, now existing or hereafter arising in all (i) Accounts, Account Documentation and Indebtedness; (ii) all deposits, credit balances and reserves on Bank’s books relating to any such
Accounts; and (iii) all proceeds of any of the foregoing (the “Collateral”). For the avoidance of doubt, Bank’s security interest does not include amounts paid by Bank to Retailer pursuant to this Agreement. 

(b) Retailer represents and warrants that it has not and will not grant any security interest to or authorize the filing of any
financing statement in favor of any person that attaches to or covers any of the Collateral or that would attach to or cover such Collateral, if contrary to the intent of the parties to this Agreement, Retailer was

  
 19 

 
determined to have any rights therein, other than any security interests or financing statements that have lapsed or been terminated. Bank acknowledges that Retailer has entered into, and will
hereafter modify and enter into new credit facilities which are secured by some or all of Retailer’s assets other than the Collateral and that the documents evidencing such credit facilities grant, among other things, the lenders thereunder the
right to set-off against various bank accounts of Retailer. 
 (c) Retailer agrees to cooperate fully with Bank, as Bank may
reasonably request, in order to give effect to the security interests granted by this Section 7.13. Retailer hereby authorizes Bank to file such UCC-l or comparable statements as Bank reasonably deems necessary or appropriate to perfect such
security interests. Retailer represents and warrants that as of the date hereof the following is the true and correct corporate name and state of organization of Retailer: Stein Mart, Inc., a Florida corporation. Retailer agrees to provide Bank with
thirty (30) days’ prior notice of any change in any of the foregoing corporate name, or any state of incorporation. Bank agrees to provide a written explanation of the prophylactic nature of its security interest to any third party
promptly upon Retailer’s request. 
 (d) Unless Bank shall have otherwise consented, Retailer shall not create, assume
or suffer to exist any lien on any of its right, title or interest under this Agreement or in the proceeds thereof. 
 7.14 In-Store
Payments. During the Term, Retailer shall have the ability to accept in-store payments at Store Locations (“In-Store Payments”) from Cardholders on their Accounts on behalf of Bank. Retailer and Bank have jointly developed
additional procedures in the Operating Procedures with respect to the manner in which such In-Store Payments shall be processed. The following terms and conditions shall apply to In-Store Payments: 

(a) Retailer will receive and hold all In-Store Payments in trust for Bank. 

(b) Retailer will accept and process all In-Store Payments in accordance with the Operating Procedures. 

(c) Retailer shall, as necessary, provide proper endorsements on such items. 

(d) Bank shall grant to Retailer a limited power of attorney (coupled with an interest) to sign and endorse Bank’s name
upon any form of In-Store Payment that may have been issued in Bank’s name in respect of any Account. 
 (e) Retailer
shall notify Bank upon receipt of any In-Store Payment, indicate the tender types for In-Store Payments and shall include the Charge Transaction Data related to such In-Store Payment in the net settlement in respect of the day immediately following
such receipt on the same basis as other Charge Transaction Data. 
 (f) Retailer shall issue a receipt for each In-Store
Payment in compliance with Applicable Law. 

  
 20 

 If at any time, based upon either party’s (the “Determining Party”) good faith
interpretation of Applicable Law, the Determining Party determines that, as a result of such Applicable Law, Retailer’s acceptance of In-Store Payments is detrimental to the interests of the Determining Party, then, at the Determining
Party’s request, Retailers shall cease accepting In-Store Payments and shall direct Cardholders to make all payments in respect of Accounts directly to Bank. 

7.15 Periodic Program Reports; Access to Cardholder Data. 

(a) Bank will provide Retailer with the reports set forth on Schedule 7.15 hereto and any other reports as mutually
agreed upon by the parties. 
 (b) Bank will provide Retailer on a monthly basis with an updated copy of Cardholder data as
set forth on Schedule 7.15, including Cardholder contact information, financial information at the Cardholder level and such other information as set forth on Schedule 7.15, to the fullest extent allowed by Applicable Law. 

(c) The specific form and content of any reports required to be made pursuant to this Section 7.15 shall be determined by
Bank and Retailer, subject to Applicable Law and Bank’s available internal customer reporting capabilities as in effect on the Effective Date (as the same may be amended from time to time). 

(d) Bank shall make such disclosures as are required or permitted by Applicable Law or Reasonable Financial Services Practices
to enable Bank to provide the information described above to Retailer. 
 7.16 Service Level Standards. 

(a) Bank shall comply with the individual service level standards (“Service Level Standards”) set forth in
Schedule 7.16. For the avoidance of doubt, the Service Level Standards shall apply to both the Co-Brand Program and the PLCC Program. 

(b) During the Term, and subject to the provisions of Section 7.16(a) and Schedule 7.16 hereto, if Bank fails to
meet any of the Service Level Standards for any calendar month, Bank shall take the actions described in Schedule 7.16. 

(c) If, at any time during the Term, Retailer desires to implement a promotional or other marketing event or program which is
reasonably likely to result in a [***] increase in volume of calls to Bank from Cardholders and/or Retailer personnel during a given period of time (each, a “Planned Promotion”), Retailer shall provide Bank with [***]
prior notice of such Planned Promotion (each, a “Planned Promotion Notice”) specifying the type and term of the Planned Promotion, together with the proposed starting date and time period during which such Planned Promotion will be
in effect (as extended or shortened by Retailer following the date of the applicable Planned Promotion Notice, the “Planned Promotion Period”). Following Bank’s receipt of any Planned Promotion Notice, if Retailer desires to
alter (i) the Planned Promotion in a way which is reasonably likely to increase or decrease by [***] the volume of calls to Bank from Cardholders and/or Retailer personnel during the Planned Promotion Period or (ii) the Planned
Promotion Period for the applicable Planned Promotion as specified in the 

  
 21 

 
Planned Promotion Notice, Retailer shall notify Bank of such alteration not less than [***] to the commencement of the Planned Promotion Period. The failure of Retailer to comply with any
notice obligation set forth in this Section 7.16(c) in respect of a Planned Promotion shall result, at the option of Bank, in all Cardholder and Retailer personnel calls during the applicable Planned Promotion Period being deemed
“Excluded Calls” for purposes of the Service Level Standards set forth on Schedule 7.16 hereto. 

(d) Notwithstanding anything to the contrary in this Agreement or Schedule 7.16 hereto, in the event Bank does not
comply with any Service Level Standard due to the failure or fault of Retailer or a Retailer’s third party service provider or a third party that is not a Bank Subcontractor under this Agreement (e.g., a telecommunications carrier), such lack
of compliance shall not be deemed a failure to meet a Service Level Standard for purposes of this Section 7.16 and Schedule 7.16 hereto. 

(e) Bank shall designate an experienced, senior level client operations manager who shall be responsible for overseeing
Bank’s compliance with the Service Level Standards and who shall serve as the sole point of contact between Retailer and Bank to answer any questions or address concerns regarding Bank’s compliance with the Service Level Standards. 

7.17 Maintenance of Bank Webpage and Retailer Website; Fraud Prevention. 

(a) The parties acknowledge that the infrastructure required for internet applications and purchases (each, an
“Internet Transaction”) is dynamic and agree to cooperate in implementing enhancements and developments with respect to the operation and security of Internet Transaction processing under the Program. During the Term, Retailer shall
use reasonable efforts to conform the Retailer Website to be reasonably compatible with the Bank Webpage and any payment authorization technology selected by Bank, and Bank shall provide to Retailer prior notification of planned changes in the Bank
Webpage or such payment authorization technology to permit Retailer to make any required changes in the Retailer Website; provided, however, that Bank shall cooperate with Retailer in an effort to minimize the costs and difficulty of
any such changes to the Retailer Website. 
 (b) Retailer shall not permit any link to the Bank Webpage to exist (i) on
the Retailer Website at any time other than during the Term, or (ii) on any internet website (other than the Retailer Website) maintained, operated or controlled by Retailer or under any Retailer Mark. 

(c) Retailer shall maintain and operate the Retailer Website so that all Internet Transactions processed through the Retailer
Website, if any, will be transmitted on a secure basis which ensures, among other things, that such information cannot be altered, viewed, or captured by an unauthorized party. Bank agrees that the direct access medium or method used to store,
present or transmit Internet applications, terms and conditions, and/or Account information will be secured in a manner which ensures that such information cannot be altered, viewed or captured by an unauthorized party. Retailer and

  
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Bank agree to cooperate in a commercially reasonable manner by committing systems and other resources, and by providing information with respect to the development, establishment and
implementation of fraud mitigation strategies in connection with Internet Transactions. Retailer and Bank further agree to use commercially reasonable efforts to implement such mitigation strategies as are developed from time to time. 

(d) Retailer shall have the sole right to determine the design and content of the Retailer Website; provided,
however that Bank shall have the right to approve: (i) the usage of Bank Marks on the Retailer Website, (ii) any terms and conditions and legal disclosures regarding the Program on the Retailer Website, and (iii) subject to
Schedule 5.3(d), the look and feel of any advertising, marketing, or information regarding the Program on the Retailer Website. 

(e) Sales through the Retailer Website using the Credit Cards will be settled through the Direct Settlement Process and the
Retailer Website will be deemed a Retailer Sales Channel for all purposes of this Agreement. 
 7.18 Interchange Regulation. If at
any time there occurs a decline in the interchange rate received by Bank from the Association, the parties shall have the rights and obligations set forth on Schedule 7.18 hereto. 

7.19 Store Closure. If at any time Retailer sells or closes a Store Location, the parties shall have the rights and obligations set
forth on Schedule 7.19 hereto. 
 7.20 GOB; Bankruptcy. 

(a) Retailer shall provide Bank with thirty (30) days prior notice of any of the following (each a “Significant
Event”) (it being agreed that (x) any such notice shall constitute Confidential Information of Retailer and be subject to the provisions of Section 15.1 and (y) such requirement shall be subject to any conflicting requirement
of a duly entered bankruptcy court order): (i) the public announcement of any closure of Store Locations that will cause the number of existing Retailer Store Locations to fall below [***] Store Locations; (ii) public announcement
of any GOB Sale in connection with Retailer’s operations, which, following the completion thereof, will result in the number of existing Stores falling below [***] Store Locations, or (iii) other than a reorganization of Retailer,
the filing in any bankruptcy case in which Retailer is a debtor of any notice or motion relating to any matter described in clause (i) or (ii) (including a notice or motion under Bankruptcy Code sections 363 or 365). 

(b) Bank shall have the right, but not the obligation, to take any or all of the following actions (in each case in a manner
not in violation of Applicable Law) if a Significant Event occurs under Section 7.20(a): (i) cease accepting new credit applications for Accounts; (ii) cease authorizing transactions on Accounts, (iii) cease accepting Charge
Transaction Data for charges or credits (or both) on Accounts; (iv) request Retailer to cease performing Account look-ups; (v) subject to the limitations and conditions set forth in Schedule 11.4, liquidate or sell any or all
Accounts other than to those competitor stores listed in Group 2 of Schedule 11.4(1); or (vi) subject to the 

  
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limitations and conditions set forth in Schedule 11.4, convert any or all Accounts to another credit or charge program maintained by Bank or any of its affiliates other than to those
competitor stores listed in Group 2 of Schedule 11.4(1). Without limiting the foregoing, if Retailer conducts a GOB Sale which is not an Authorized Liquidation Sale at any Store Location, as of the initiation of such GOB Sale, Bank shall have
the rights set forth in clauses (i), (ii), (iii) and (iv) above with respect to such Store Location, or if such GOB Sale is an Authorized Liquidation Sale, the rights set forth in clause (i) above. 

(c) Subject to Section 12.3, Retailer, or any licensee, subtenant, Liquidator, or other third party operating in, from or
through any Retailer Sales Channel, shall not seek an authorization from Bank for a transaction on an Account in connection with a Prohibited Transaction or any GOB Sale which is not an Authorized Liquidation Sale, and shall not submit to Bank any
Charge Transaction Data on an Account arising from any Prohibited Transaction or any such GOB Sale which is not an Authorized Liquidation Sale. Any GOB Sale by Retailer, including any Authorized Liquidation Sale, whether or not approved by any
court, shall comply with all federal, state and local laws and regulations concerning such sales. 
 (d) Retailer shall not
enter into any agreement with a Liquidator (or solicit bids from a Liquidator for any agreement) that would permit the Liquidator to seek an authorization from Bank for a transaction on an Account in connection with a Prohibited Transaction, or to
submit to Bank any Charge Transaction Data on an Account arising from any Prohibited Transaction. Any agreement between Retailer and a Liquidator shall expressly prohibit the Liquidator from seeking such authorizations from Bank and submitting such
Charge Transaction Data to Bank. For the avoidance of doubt, actions by a Liquidator in consulting with, or overseeing a GOB Sale which is an Authorized Liquidation Sale, and actions by a Liquidator in fulfilling such role shall not violate this
provision. 
 (e) The parties acknowledge and agree that the rights of Bank under this Section 7.20, including the
rights to receive notice under Section 7.20(a), are a material inducement to Bank to provide the Program and are necessary for Bank to manage its credit and other risks in operating the Program. In addition to any other rights Bank may have
under this Agreement or Applicable Law, Bank shall be entitled to terminate this Agreement immediately upon notice to Retailer if there occurs a Significant Event or Retailer breaches any obligation under this Section 7.20. 

(f) The parties conclusively agree that, in the event of a filing under the Bankruptcy Code with respect to Retailer, this
Agreement is an executory contract under 11 U.S.C. § 365 and is not a financial accommodation or an agreement to provide credit to Retailer. If requested by Bank, Retailer shall file a motion to assume this Agreement within thirty
(30) days following the filing of any voluntary petition for bankruptcy. Retailer agrees that any failure to do so shall be “cause” for Bank to seek immediate relief from the automatic stay to seek any remedies, including immediate
termination of this Agreement. Retailer agrees to consent to such relief from the stay. 

  
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 (g) Bank and Retailer further agree that in order to assume this Agreement,
Retailer shall provide adequate assurance of future performance, and that the parties stipulate that the standard to be used to establish such assurance shall include reasonable cash reserves, letter of credit, collateral or other similar credit
arrangements for reasonably foreseeable chargebacks, costs, and expenses which may arise from the assumption and continued use of the Accounts, including any termination fees or repayment of any incentive bonus or similar obligation that may be
required upon termination of the assumed Agreement. 
 (h) Retailer further agrees that, within fifteen (15) days of any
bankruptcy filing, to file an appropriate “first day motion” or other motion seeking court approval that will permit the settlement procedures for payment hereunder to continue in accordance with their terms. Retailer further agrees, at
the request of the Bank, that it shall immediately seek any necessary court approval, as part of its first day motions, or otherwise, to ensure that all gift cards, to the extent offered by Retailer, are honored, returns are accepted in accordance
with the standard return policy, warranties are honored, and any “reward” program certificates or coupons previously issued and not yet expired are honored, in the same manner as before any bankruptcy filing. The failure to seek such
approval, and any failure to so honor gift cards, if applicable, warranties, unexpired reward program certificates or coupons issued or to accept returns, shall be deemed a material breach and an event of default and will entitle Bank to terminate
this Agreement immediately and/or will constitute sufficient grounds for Bank to obtain an order compelling rejection of this Agreement. 

(i) In the event that any bankruptcy court determines that this Agreement is a financial accommodation or agreement to make a
loan, then in such event the parties agree that any further performance hereunder by Bank shall be deemed to be the providing of credit post petition under 11 U .S.C. §364 and Retailer may not require further performance unless and until
Retailer files an appropriate motion under 11 U.S.C. § 364 and agrees to provide adequate protection for any losses arising hereunder, including the granting of an administrative expense claim having, allowable under 11 U.S.C. § 503(b)(1),
with priority over any and all administrative expenses of the kind specified in section 503(b) or 507 of the Code; a lien on collateral not otherwise encumbered; and inclusion of a reserve or budget item in any applicable debtor in possession
financing, the posting of a letter of credit to protect against losses from continuing to make post petition advances, including losses from chargebacks or failure to pay any termination fees or repay any incentive bonus or similar obligation. 

7.21 Sales Taxes and Related Record Retention. Retailer will pay when due any sales taxes relating to the sale of goods or services
financed on Accounts. Retailer agrees that Bank shall be [***]. Retailer shall cooperate with Bank in making reasonable efforts to recover any and all such taxes in connection with actual charge offs, including executing any and all forms or
other documentation reasonably necessary or required by any taxing authority, and timely producing all supporting documentation and data relative to such Accounts then in Retailer’s possession; provided that the content and format of any
data requested by Bank from Retailer shall be mutually acceptable to both parties. Retailer and Bank shall jointly gather the documentation and information necessary for them to pursue, analyze, file, defend and/or litigate

  
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sales tax refunds, deductions, credits and/or audit offsets arising from the charged-off Accounts; provided that (i) Retailer shall not be obligated to file any document in any state
where it believes there is an unreasonable risk that such filing is not in conformance with requirements of Applicable Law, (ii) Retailer shall not be obligated to commingle any filing for sales tax recapture with any other tax filings, and
(iii) Bank shall provide Retailer with sufficient information to enable Retailer to respond, if needed, to any state tax audit (including information allowing Retailer to identify the transactions that are the subject of the tax filing). Each
party shall bear its own costs in complying with this Section 7.21. Retailer shall [***]. 
 7.22 Additional [***]. Bank
commits to evaluating solutions and developing implementation plans for certain processes as set forth on Schedule 7.22. These plans will include estimated expenses which will be approved by Retailer and mutually agreed upon milestones and
timelines. The costs for Bank’s development of general functionality of these processes will not be included as a Program expense. Ongoing operational costs for these functionalities will be treated as Program expenses. Bank will provide
Retailer regularly scheduled updates on the progress of completing the requirements and implementation plans. 
 ARTICLE 8 —
CHARGEBACKS 
 8.1 Chargeback Rights. Subject to the remaining Sections of this Article 8, Bank will have the right to chargeback
to Retailer any Indebtedness pertaining to a PLCC Purchase or a Co-Brand Purchase if Bank is entitled under the Association Rules to affect such chargeback as a bankcard issuer or, if with respect to the corresponding charge or credit or the related
Charge Transaction Data or the underlying transaction: 
 (a) The Cardholder disputes a charge and (i) Retailer cannot
provide Bank with evidence of the terms of the charge that resolves the dispute (including the date of the charge, a masked or truncated Account number, products purchased and purchased amount) within twenty (20) days after Bank’s request,
or (ii) Bank determines that the merchandise was shipped to an address other than the then-current billing address for the Cardholder as reflected in Bank’s records; provided, however, that any such dispute constitutes a bona
fide claim presented by the Cardholder in good faith in the reasonable opinion of Bank; provided, further, that Bank shall have no obligation to re-charge the Cardholder for a charge where Retailer could not provide Bank with evidence
of the terms of the charge that resolves the dispute within the above-referenced twenty (20) day period, but Retailer subsequently locates or otherwise finds evidence of such terms; 

(b) The Cardholder disputes the amount of an Account and/or refuses to pay such amount alleging dissatisfaction with products
or services received or failure to receive products or services, a breach of any warranty or representation by Retailer in connection with the transaction, or an offset or counterclaim based on an act or omission of Retailer, the product
manufacturer or any third-party service provider; provided, however, that any such dispute constitutes a bona fide claim presented by a Cardholder in good faith in the reasonable opinion of Bank; 

(c) Retailer failed to comply with any Operating Procedure(s) with respect to any charge, credit, or Account, or Bank
determines in good faith that any charge, credit or Account was subject to any acts of fraud performed by or in collusion with Retailer’s and/or its affiliates’ employees, contractors or agents; 

  
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 (d) (i) The Cardholder asserts that the Cardholder or an authorized user did not
make or authorize the purchase in dispute; (ii) the Cardholder or any other person asserts that such person’s name, social security number or other identifying information was used to make any purchase (or to open an Account on which such
purchase was made) and that such person did not make or authorize the purchase or open the Account in dispute; or (iii) Bank determines in good faith that a purchase was transacted or an Account was opened in a fraudulent manner; or 

(e) Bank determines in good faith that any presentment warranty set forth on Schedule 8.1(e) hereof was false or
inaccurate in any respect when made. 
 8.2 Co-Brand Account Chargebacks. Bank shall have the right to charge back to Retailer any
Indebtedness on any Co-Brand Account (i) involving Retailer’s employee fraud with respect to such Co-Brand Account, or (ii) with respect to which Retailer did not comply with the Operating Procedures in opening an Account. Except as
provided in the preceding sentence, Bank shall have no chargeback rights against Retailer for any Non-Retailer Purchases. 
 8.3
Settlement of Claims. In its reasonable discretion, after consultation with Retailer, Bank may compromise and settle any claim made by any Cardholder (including claims made on behalf of an authorized user) relating to such Cardholder’s
Account. No such compromise or settlement will impair Bank’s right to chargeback under Article 8 any portion of such Account not paid pursuant to any such settlement or compromise. If the full amount or any portion of any charge is charged
back, Bank will assign, without recourse, all rights to payment for the amount charged back to Retailer upon the request of Retailer. 

8.4 Delivery of Materials Regarding Chargebacks. Retailer shall deliver to Bank any correspondence or other materials reasonably
requested by Bank, or otherwise required in connection with the processing of any chargeback, via such electronic transmission mode as Bank shall designate. 

8.5 Chargeback Process. Without limiting Bank’s chargeback rights under the provisions of Section 8.1, prior to effecting a
chargeback pursuant to such Section, Bank shall employ its ordinary course dispute resolution procedures applicable to chargebacks (which procedures will be no less favorable in any material respect to Retailer than the dispute resolution procedures
generally used by Bank with respect to its other private label and co-brand program partners) to assess the claims of the Cardholder and Retailer’s response thereto. Bank shall designate a representative of Bank to facilitate such process,
including working with Retailer in any case in which Retailer reasonably believes the basis for a particular chargeback is invalid or has been corrected (in either case, based on new or additional information not previously requested by Bank). 

ARTICLE 9 — EXCLUSIVITY 

9.1 Exclusivity. The parties shall be bound by the exclusivity provisions set forth in Schedule 9.1 hereto. 

  
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 ARTICLE 10 — TERM AND TERMINATION 

10.1 Program Term. This Agreement shall commence upon the Effective Date and continue until the close of business on January 31,
2026 (the “Initial Renewal Term”). The Agreement shall renew automatically without further action of the parties for successive one (1) year terms (each a “Renewal Term”) unless either party provides notice of
termination at least one hundred eighty (180) days prior to the expiration of the Initial Renewal Term or current Renewal Term, as the case may be. The Initial Renewal Term and any subsequent Renewal Term are collectively referred to herein as
the “Term”. 
 10.2 Termination of Agreement. Notwithstanding anything in Section 10.1 to the contrary, this
Agreement may be terminated prior to the end of any Term as provided below: 
 (a) If either party breaches any covenant or
agreement contained in this Agreement (other than for a failure to meet (i) Service Level Standards, which shall be governed by Section 10.2(k), (ii) the Minimum Credit Targets, which shall be governed by Section 10.2(l), or
(iii) the Financial Covenants, which shall be governed by Schedule 10.2(p) and Section 10.2(p)), (x) which does not involve the payment of money to the other party hereto and such breach continues for a period of thirty
(30) days after the non-breaching party has given notice of the breach, or (y) which involves the payment of money (not reasonably in dispute) to the other party hereto and such breach continues for a period of five (5) days after the
non-breaching party has given notice of the breach, then, in either case, the non-breaching party shall have the right to terminate this Agreement. The foregoing clause (y) notwithstanding, the failure of a party to make a payment due hereunder
shall not give rise to a termination right in the other party if the amount which such party has failed to pay is less than fifty thousand dollars ($50,000) and such party, acting in good faith, has delivered a notice to the other party contesting
its obligation to make such payment. In any case, to be effective, a termination notice must be delivered within [***] after the expiration of the applicable notice periods. This Agreement will terminate [***] after delivery of such
notice of termination. 
 (b) If any representation or warranty made by a party proves knowingly not to have been true and
correct in all material respects as of the date when made, and such representation or warranty materially affects the party’s ability to perform under the Agreement, then the other party shall have the right to terminate this Agreement. In
order to be effective, the notice of termination must be delivered within [***] after the date such other party first becomes aware that such representation or warranty is not true and correct. This Agreement will terminate [***] after delivery of
such notice of termination. 
 (c) If a party (i) is no longer Solvent; (ii) generally does not pay its debts as
such debts become due, or admits in writing its inability to pay its debts generally; (i) makes a general assignment for the benefit of its creditors; (iv) has any proceeding instituted by or against it seeking to adjudicate it bankrupt or
insolvent or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking the
entry of an order for relief or the 

  
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appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property (provided that if a proceeding is commenced against such party and not
consented to or acquiesced by such party, then such proceeding is not withdrawn or dismissed within [***]; or (v) takes any corporate action which authorizes any of the actions set forth above in (i) through (iv) above, then
the other party shall have the right to terminate this Agreement. In order to be effective, the notice of termination must be delivered within [***] after such other party becomes aware of the occurrence of such event; provided, that
in the case of an occurrence under clause (iv), this Agreement shall terminate automatically unless the parties shall mutually agree in writing to continue the Program. In any case in which notice is required for termination, this Agreement will
terminate upon delivery of such notice. 
 (d) If there is a Change in Control with respect to Retailer, then Bank shall have
the right to terminate this Agreement; provided that Bank’s right to terminate this Agreement due to such Change in Control shall exist only if the surviving entity materially alters the Retailer Marks used at [***] of Store
Locations, or that the surviving entity materially alters the merchandise mix in existence at such stores. In order to be effective, the notice of termination must be delivered within [***] after Bank becomes aware of the occurrence of such
event. This Agreement will terminate [***] after delivery of such notice of termination. 
 (e) If a party is in
default under any indenture or other instrument relating to any indebtedness for borrowed money in excess of [***] dollars ($[***]) and such default gives any person, either with or without notice and without giving effect to any extension of any
grace period, the right to accelerate such indebtedness and such person does in fact accelerate such indebtedness, then the non-defaulting party hereunder shall have the right to terminate this Agreement. In order to be effective, the notice of
termination must be delivered within [***] after such non-defaulting party becomes aware of the occurrence of such event. This Agreement will terminate [***] after delivery of such notice, unless the underlying default is cured during such [***]
period. 
 (f) If a material adverse change has occurred in the operations, financial condition, business or prospects of a
party hereto, which the other party has reasonably determined, in good faith, has had, or is reasonably likely to have, a material adverse effect on the ongoing operation or continued viability of the Program, then such other party shall have the
right to terminate this Agreement. In order to be effective, the notice of termination must be delivered within [***] after the terminating party makes such determination. This Agreement will terminate [***] after delivery of such notice of
termination. 
 (g) Bank shall have the right to terminate this Agreement upon not less than [***] prior notice if at
any time there is a CIL Decline; provided that Bank has first sought to engage Retailer in a good faith renegotiation of the terms of this Agreement and the parties have not agreed within [***] on modifications sufficient to offset the
effect of the CIL Decline, including any CIL Decline resulting from any new limits on Bank’s rights and/or increased obligations under the Program resulting from the applicable Change in Law. This Agreement will terminate [***] after
delivery of Bank’s notice of termination pursuant to this Section 10.2(g). Additional terms and conditions applicable to Bank’s termination right under this Section are set forth on Schedule 10.2(g). 

  
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 (h) If the increase made by Bank to the Credit Review Point does not satisfy the
Retailer’s good faith projections of Program growth pursuant to Section 7.6(a) or Bank declines to increase the Credit Review Point then in effect pursuant to Section 7.6(b) then Retailer may terminate this Agreement. In order to be
effective, the notice of termination must be delivered within [***] after Bank notifies Retailer pursuant to Section 7.6. This Agreement will terminate [***] after Retailer’s delivery of such notice of termination. 

(i) Either Bank or Retailer shall have the right to terminate the Agreement upon notice to the other party hereto, if the
performance by the other party of its obligations under this Agreement is prevented or materially impeded, without ability to cure, for a period of not less than [***] by a Force Majeure Event. Any such failure to perform shall not be considered a
breach of this Agreement (giving rise to a damage claim) if the disabled party promptly advises the other party in writing that it is unable to perform due to such a Force Majeure Event, setting forth: (i) the nature of the event; (ii) its
expected effect(s) and duration; (iii) any expected development which may further affect performance hereunder; and (iv) the efforts which will be made to cure such Force Majeure Event or provide substitute performance. 

(j) [Intentionally omitted.] 

(k) Retailer shall have the right to terminate the Agreement, if Bank fails to meet Service Level Standards as provided in
Schedule 7.16. 
 (l) Retailer shall have the right to terminate the Agreement, if Bank fails to meet the Minimum
Credit Targets set forth on Schedule 7.4(c)(1), as provided in Schedule 7.4(c). 
 (m) [Intentionally omitted.]

 (n) If there is a Change in Control with respect to Bank or Synchrony Financial then Retailer shall have the right to
terminate this Agreement; provided, however, that Retailer’s termination right with respect to a Change in Control of the Bank shall not apply where, after the consummation of all transactions constituting such Change in Control,
Synchrony Financial continues to beneficially own fifty percent (50%) or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of Bank or of any entity acquiring the
ownership or assets of Bank pursuant to such Change in Control. In order to be effective, the notice of termination must be delivered within [***] after Retailer becomes aware of the occurrence of such event. This Agreement will terminate
[***] after delivery of such notice of termination. 
 (o) [***], upon prior notice (“Shortfall
Notice”) to Retailer, Bank shall have the right to request that Retailer enter into good faith negotiations to change the financial terms of this Agreement if the Rolling ROI for any Rolling ROI Measurement Period is

  
 30 

 
less than the “Rolling ROI Minimum” (as defined on Schedule 10.2(o)) (an “Annual ROI Shortfall”) other than due to a Change in Law (as defined on Schedule
10.2(g) or any decline in interchange rate fees received by Bank from an Association. If Retailer and Bank have not agreed within [***] after Bank’s delivery of the Shortfall Notice on changes to the financial terms of the Program
that would have been necessary to reduce the Annual ROI Shortfall to [***] during such Rolling ROI Measurement Period, then the terms and conditions set forth on Schedule 10.2(o) shall apply. 

(p) Bank shall have the right to terminate the Agreement, if Retailer fails to meet the financial covenants set forth on
Schedule 10.2(p) or shall otherwise fail to comply with the terms of Schedule 10.2(p). 
 ARTICLE 11 — EFFECTS OF
TERMINATION 
 11.1 General Effects. 

(a) Upon the expiration or any termination of this Agreement, the parties shall have any rights or remedies available to such
party under this Agreement or in law or at equity. Upon such expiration or termination, all obligations of the parties under this Agreement shall cease, except that the provisions specified in Section 15.16 shall survive. 

(b) All solicitations, marketing and advertising of the Program, other than acceptance of applications through Retailer
Channels in the ordinary course of business consistent with past practice, shall cease either upon notice to Bank from Retailer of Retailer’s intent not to purchase the Accounts following termination of this Agreement by either party or the
failure of Retailer to exercise its Purchase Option prior to the expiration of the time period in which Retailer may provide an Exercise Notice to Bank as set forth in Schedule 11.2, except as the parties may otherwise mutually agree. The
parties shall continue to operate the Program and service the Accounts in good faith and in the ordinary course of their respective businesses, subject to the terms of this Agreement, including Schedules 11.2, 11.3, and 11.4,
and Bank shall continue to market and advertise the Program following termination of this Agreement by either party until the later of the (i) Closing Date if Retailer provides an Exercise Notice to Bank or (ii) date upon which Retailer
notifies Bank of Retailer’s intent not to purchase the Accounts or the last date upon which Retailer may exercise its Purchase Option as set forth in Schedule 11.2 if Retailer has failed to provide an Exercise Notice to Bank subject in
all cases to Bank’s rights under this Agreement with respect to Bank Matters. The parties shall cooperate to ensure the orderly wind-down or transition of the Program. 

(c) Except as set forth in Schedule 7.18, the expiration or any termination of this Agreement shall apply to both the
PLCC Program and the Co-Brand Program and neither Bank nor Retailer shall have the right to terminate the PLCC Program or the Co-Brand Program separately. 

11.2 Purchase of Accounts by Retailer upon Termination. Upon notice of termination or non-renewal of this Agreement by either party,
Retailer shall have the right to purchase, or to arrange for the purchase, of not less than all the Program Assets in accordance with Schedule 11.2 hereto. 

  
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 11.3 Determination of Fair Market Value. In the event this Agreement expires or terminates
and Retailer notifies Bank that it, or its Nominated Purchaser, shall purchase the Program Assets, the parties shall determine the fair market value thereof in accordance with Schedule 11.3 hereto. 

11.4 Bank’s Rights If Retailer Does Not Purchase Accounts. If Retailer does not exercise its option to purchase, or arrange for
the purchase, of the Program Assets pursuant to Section 11.2 and Schedule 11.2, Bank shall have the rights set forth in Schedule 11.4. 

11.5 Limitation on Retailer’s Right to Purchase Accounts. Notwithstanding anything in this Agreement, if (a) a Significant
Event shall have occurred and the Agreement expires or is terminated, or (b) this Agreement is terminated in any manner other than as provided in Article 10, Bank’s rights under Schedule 11.4 shall apply; provided that,
subject to the exercise by Bank of any of Bank’s rights pursuant to Schedule 11.4 (including the right to convert any or all of the Accounts to another credit or charge program subject to the restrictions therein), Retailer shall have
the right to purchase or arrange for the purchase of the Accounts (other than Accounts that have been written-off by Bank) on the terms and conditions set forth in Schedule 11.2 except as follows: 

(i) The purchase price for the Accounts shall be equal to [***]. 

(ii) If either (x) Retailer fails to exercise its Purchase Option prior to the expiration of the time period in which
Retailer may provide an Exercise Notice to Bank as set forth in Schedule 11.2 or (y) Retailer or the Nominated Purchaser does not complete the purchase within the time period set forth in Schedule 11.2 after the delivery of the
Exercise Notice, Bank may enter into a binding commitment to sell the Accounts to a third party in accordance with Schedule 11.4, and Retailer’s (or its Nominated Purchaser’s) right to purchase such Accounts pursuant to this
Section 11.5 shall immediately expire. 
 (iii) Bank shall use reasonable efforts to notify Retailer upon the
commencement of any negotiations between Bank and a third party regarding the sale of such Accounts pursuant to this Section 11.5 which Bank deems reasonably likely to result in a sale transaction and prior to entering into a binding commitment
for such sale. Bank shall provide Retailer notice that Bank and such third party are close to finalizing the terms of a sale, and Retailer shall have the right, but not the obligation, to present to Bank no later than five (5) Business Days
following receipt of such notice, a viable alternate purchaser for the Accounts (it being agreed that Bank is under no obligation to enter into a binding commitment with either the third party engaged by Bank or any alternate purchaser presented by
Retailer); provided, however, that Retailer shall use good faith efforts to notify Bank as soon as possible after the initial notice if Retailer does not plan on pursuing an alternate purchaser and as soon as possible following the
second notice if they do not think they will be able to find a viable purchaser in such five (5) Business Day period. 

  
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 ARTICLE 12 — REPRESENTATIONS AND WARRANTIES 

12.1 Representations and Warranties. Each party makes the following representations and warranties to the other party at all times
during the Term (except with respect to (i) any representation and warranty related to the execution and delivery of the Agreement, and (ii) Sections 12.1(e)(ii) and 12.1(f), which each party represents only as of the Effective Date) as
follows: 
 (a) Such party is duly organized, validly existing, and in good standing under the laws of its state of
incorporation or organization, as the case may be; 
 (b) Such party has the requisite organizational power and authority to
conduct its business as presently conducted and hereafter contemplated to be conducted and to execute, deliver and perform this Agreement; 

(c) This Agreement has been duly executed and delivered by such party, and constitutes the legal, valid, and binding obligation
of such party, enforceable against such party in accordance with its terms; 
 (d) The execution and delivery of this
Agreement by such party and the consummation of the transactions contemplated hereby do not and will not (i) conflict with the organizational documents of such party, (ii) conflict with, or result in a breach of any provisions of, or
constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under any material agreement of such party; or (iii) constitute a violation of any material order, judgment or decree to which such party
is bound. No consent, approval, permit, waiver, authorization, notice or filing is required to be made or obtained in connection with the execution, delivery and performance by such party of this Agreement; 

(e) All (i) material written reports issued by a party to another party under this Agreement and (ii) other
information furnished by such party to the other for purposes of or in connection with this Agreement, is true and correct in all material respects and no such report or information omits to state a material fact necessary to make the information so
furnished not misleading; and 
 (f) Except as disclosed to the other party, there is no fact known to such party (including
threatened or pending litigation) that could materially and adversely affect the financial condition, business, property, or prospects of such party. 

12.2 Continuity of Retailer Business. Retailer represents and warrants that it will continue to sell the type of goods and services
generally similar to those sold by Retailer as of the Effective Date and Retailer further acknowledges that Bank’s obligation to continue to extend credit under the Program is contingent on the continuing validity of this representation and
warranty. Notwithstanding anything herein to the contrary, Retailer shall be in compliance with the requirements of this Section 12.2 if Retailer expands its business to include new and 

  
 33 

 
unrelated products or services provided that such new products or services do not materially adversely affect the Program. In the event Bank reasonably determines in its sole discretion that an
expansion of Retailer’s business as contemplated hereunder has or will have a material adverse effect on the Program, the parties agree to negotiate in good faith to modify the terms of the Program to address the expansion in Retailer’s
business. 
 12.3 Operation of Store Locations. Retailer represents and warrants as of the date of this Agreement and throughout the
Term of the Agreement, that Stein Mart, Inc. owns and operates (or leases and operates) all Store Locations and all other Retailer Sales Channels except to the extent provided in Section 15.3; provided, however, that sub-leasing
or other arrangements with respect to certain areas within Store Locations (such as the shoe departments or fragrance departments) to third parties (each a “Third Party Participant”) for operation of such departments shall not
violate this provision. Except for Third Party Participants, Retailer will not permit any licensee, subtenant or third party operating in or from a Store Location to accept Credit Cards for purchases by Cardholders. No later than thirty
(30) days after the Effective Date, Retailer shall notify Bank of any existing Third Party Participants and thereafter shall promptly provide Bank with notice of any changes in the Third Party Participants. With respect to each Third Party
Participant, Retailer acknowledges and agrees that (i) it shall be responsible for all acts and omissions of such Third Party Participant in connection with the Program (and each of the sub-sections of Section 13.1 shall apply to each
Third Party Participant as if such Third Party Participant and Retailer were one and the same), (ii) it shall otherwise ensure that such Third Party Participant complies with the terms and conditions of this Agreement applicable to Retailer,
and (iii) any failure of any Third Party Participant to comply with such terms and conditions shall be deemed to be a breach by Retailer hereunder (subject to any notice or cure rights that would be applicable to Retailer hereunder) to the same
extent as if Retailer had directly breached this Agreement, and shall be subject to the same rights and remedies (including indemnification) of Bank as provided for herein. Without limiting the foregoing, all sales of goods and services by Third
Party Participants financed on Accounts shall be treated as a sale of goods and services from Retailer under this Agreement and all such sales, and any related credits or other adjustments, shall be (x) settled between Bank and Retailer
pursuant to Section 3.1 and (y) subject to the chargeback provisions of Article 8. 
 ARTICLE 13 — INDEMNIFICATION 

13.1 Indemnification by Retailer. Retailer agrees to indemnify and hold harmless Bank, its affiliates, and their respective employees,
officers, directors, agents and licensees, from and against any and all Damages to the extent such Damages arise out of or result from: 

(a) Any breach by Retailer of any of the terms, covenants, representations, warranties or other provisions contained in this
Agreement; 
 (b) Any products or services sold by Retailer or its licensees (including any failure to provide the service as
promised, any product defects, or product liability or warranty claims relating thereto); 
 (c) Any act or omission, where
there was a duty to act, by Retailer or its employees, officers, directors, agents or licensees (including any assignee or delegate of Retailer contemplated by Section 15.3) including the failure of Retailer to comply with Applicable Law; 

  
 34 

 (d) Any advertisements, solicitations or other promotions of the Program or of
goods or services eligible for purchase under the Program conducted by or on behalf of Retailer (other than Program-related disclosures included therein and approved by Bank); 

(e) The acquisition by Retailer from Bank, in connection with a charge or credit to an Account, of a Cardholder’s Account
number by telephone or by some other means; 
 (f) Bank’s use of the Retailer Marks in accordance with the terms of this
Agreement; 
 (g) Any activities, acts or omissions of any third party to whom Cardholder Information is transferred or made
available by or on behalf of Retailer, including information transferred or made available to a third party by Bank at Retailer’s express request (including requests that require ongoing, periodic transfers by Bank on Retailer’s behalf);

 (h) The Cardholder Rewards Program, except for any act or omission where there was a duty to act by Bank in connection
with its administration of the Cardholder Rewards Program; 
 (i) Any activities, acts or omissions of any Retailer employee
working at Bank’s facilities (other than those activities, acts or omissions performed at the direction or instruction of Bank); or 

(j) Failure to comply with the data security and privacy provisions in Section 15.6 applicable to Retailer or its agents.

 The foregoing indemnity obligation of Retailer shall not apply to any Damages of Bank to the extent caused by (i) the gross negligence, willful
misconduct or illegal acts of Bank or (ii) any violation or failure to comply with this Agreement by Bank. 
 13.2 Indemnification
by Bank. Bank agrees to indemnify and hold harmless Retailer, its affiliates, and their respective employees, officers, directors and agents, from and against any and all Damages to the extent such Damages arise out of or result from: 

(a) Any breach by Bank of any of the terms, covenants, representations, warranties or other provisions contained in this
Agreement; 
 (b) Any act or omission, where there was a duty to act, by Bank or its employees, officers, directors, or
agents (including any assignee or delegatee of Bank contemplated by Section 15.3), including the failure of Bank to comply with Applicable Law; 

  
 35 

 (c) Any failure of the Account Documentation as prepared by Bank or Bank’s
activities in administering the Program to comply with the Consumer Credit Protection Act, the Truth in Lending Act, the Fair Debt Collection Practices Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act
or other Applicable Law or the regulations implementing each of them; 
 (d) Any advertisements, solicitations or other
promotions of the Program by or on behalf of Bank (other than those materials included therein and approved by Retailer); 

(e) Any activities, acts or omissions of any third party to whom Cardholder Information is transferred or made available by or
on behalf of Bank; 
 (f) Retailer’s use of Bank’s business name (or any of Bank’s related marks, logos or
similar proprietary designations, to the extent permitted herein) in accordance with the terms of this Agreement; 
 (g)
Claims for indemnity against Retailer asserted by a person indemnified by Retailer under the Association rules or Association application for claims arising in connection with the Program if such claims are not based, and to the extent such claims
are not based, on actual or alleged actions or inactions by Retailer in breach of its obligations under this Agreement or the Association rules or Association application; or 

(h) Any activities, acts or omissions of any Bank employee working at Retailer’s facilities (other than those activities,
acts or omissions performed at the direction or instruction of Retailer); 
 (i) Failure to comply with the data security and
privacy provisions in Section 15.6 applicable to Bank or its agents; or 
 (j) Any Enhancement Products offered by Bank
to Cardholders. 
 The foregoing indemnity obligation of Bank shall not apply to any Damages of Retailer to the extent caused by (i) the gross
negligence, willful misconduct or illegal acts of Retailer or (ii) any violation or failure to comply with this Agreement by Retailer. 

13.3 Indemnification Procedures. 

(a) Notice. If a party receives notice of any Third-Party Claim for which indemnification may be available under this
Agreement (the “Indemnified Party”), the Indemnified Party must promptly notify the other party (the “Indemnifying Party”) in writing of such Third-Party Claim, including, if possible, the amount or estimate of the
amount of liability arising from it. The Indemnified Party shall use its commercially reasonable efforts to provide notice to the Indemnifying Party no later than fifteen (15) days after receipt by the Indemnified Party in the event a suit or
action is commenced, or thirty (30) days under all other circumstances; provided, however, that (i) such Indemnified Party shall provide notice to the Indemnifying Party earlier when the fifteen (15) day period would
cause a default or other prejudicial action in the defense of such 

  
 36 

 
Third-Party Claim and (ii) the failure to give such notice shall not relieve an Indemnifying Party of its obligation to indemnify except to the extent the Indemnifying Party is materially
prejudiced by such failure. 
 (b) Right to Defend Third-Party Claims; Coordination of Defense. 

(i) The Indemnifying Party shall have the right to defend any such Third-Party Claim at its expense and in the name of the
Indemnified Party and shall select the counsel for the defense of such Third-Party Claim as approved by the Indemnified Party, such approval not to be unreasonably withheld, conditioned or delayed, and shall reasonably cooperate with the Indemnified
Party in the conduct of the defense against such Third-Party Claim. The Indemnified Party may participate, at its own expense, in such defense and in any settlement discussions directly or through counsel of its choice on a monitoring,
non-controlling basis, or at the Indemnifying Party’s expense and with full control to the extent that the Indemnifying Party does not fulfill its obligations to defend the Indemnified Party in accordance herewith. The parties agree to
cooperate in good faith to coordinate the defense of any Third-Party Claim that may give rise to indemnification obligations of more than one (1) party or that may include allegations that are not subject to indemnification. 

(ii) Notwithstanding the foregoing, the Indemnifying Party shall not have the right to defend any such Third-Party Claim if:
(1) it refuses to acknowledge fully its obligations to the Indemnified Party (but only as to the obligations specific to the Indemnifying Party in the event a Third-Party Claim gives rise to indemnification obligations of more than one party);
(2) it contests (in whole or in part), its indemnification obligations (but only as to the obligations specific to the Indemnifying Party in the event a Third-Party Claim gives rise to indemnification obligations of more than one party);
(3) it fails to employ appropriate counsel approved by the Indemnified Party to assume the defense of such Third-Party Claim or refuses to replace such counsel upon the Indemnified Party’s reasonable request, as provided for herein;
(4) the Indemnified Party reasonably determines that there are issues which raise possible conflicts of interest between the Indemnifying Party and the Indemnified Party; or (5) such Third-Party Claim seeks an injunction, cease and desist
order, or other equitable relief against the Indemnified Party that is separate from or in addition to any relief requested from the Indemnifying Party. In each such case described in clauses (1) through (5) above, the Indemnified Party
shall have the right to direct the defense of the Third-Party Claim and, to the extent reasonably necessary, retain its own counsel to be approved by the Indemnifying Party (which approval shall not be unreasonably withheld, conditioned or delayed),
and the Indemnifying Party shall pay the cost of such defense, including reasonable attorneys’ fees and expenses. 
 (c)
Settlement of Third-Party Claims. The Indemnifying Party may, upon prior notice to and consultation with the Indemnified Party, compromise or enter into a settlement agreement that involves solely the payment of money by the Indemnifying

  
 37 

 
Party, if: (i) such settlement includes a complete, unconditional, irrevocable release of the Indemnified Party with respect to such Third-Party Claim; and (ii) in the good faith
judgment of the Indemnified Party, such settlement is not likely to establish a precedential custom or practice adverse to the continuing business interests of the Indemnified Party. 

(d) Judgments and Subrogation. The Indemnifying Party shall be subrogated to any third party claims or rights of the
Indemnified Party as against any other persons with respect to any amount paid to the Indemnifying Party under this Article 13. The Indemnified Party shall reasonably cooperate with the Indemnifying Party, at the Indemnifying Party’s expense,
in the assertion by the Indemnifying Party of any such claim against such other persons. 
 (e) Indemnification
Payments. Amounts owing under this Article 13 shall be paid promptly upon written demand for indemnification containing reasonable detail the facts giving rise to such liability. 

(f) Apportionment of Costs. The parties recognize and acknowledge that Third-Party Claims may be made as part of an
action, suit, investigation or proceeding that may give rise to the indemnification obligations of more than one party or that may include allegations that are not subject to indemnification, and the parties agree that they shall cooperate in good
faith to fairly apportion the Damages relating to such Third-Party Claims. Damages incurred in defending Third-Party Claims shall be apportioned to the respective party who has responsibility for each specific Third-Party Claim, but only to the
extent that those Damages directly arise from such Third-Party Claim. 
 ARTICLE 14 — AUDIT / ACCESS 

14.1 Audit. 

(a) Once a year or at any time that a party disputes the amount of any material monies owed by either party to the other
hereunder, such party (the “Auditing Party”), subject to this Section 14.1(b), at its sole cost and expense and upon reasonable prior notice to the other party (the “Audited Party”), may conduct an audit of
those of the Audited Party’s records that are under the control and/or direction of the Audited Party and relate to the Program or can be reasonably segregated. Such audit shall be conducted during normal business hours in accordance with
generally accepted auditing standards and the auditing party shall employ such reasonable procedures and methods as necessary and appropriate in the circumstances, minimizing interference with the Audited Party’s normal business operations. The
Audited Party shall use reasonable commercial efforts to facilitate the Auditing Party’s review, including making reasonably available such personnel of the Audited Party to assist the Auditing Party as reasonably requested. The Audited Party
shall deliver any document or instrument reasonably necessary for the Auditing Party to obtain such records from any person maintaining records for the Audited Party and shall maintain records pursuant to its regular record retention policies. For
purposes of this provision, the Audited Party also shall be required to provide records relating to the Program held by persons performing services in connection with the 

  
 38 

 
Program at the Auditing Party’s request. Notwithstanding the generality of the foregoing, however, an Audited Party shall not be required to provide access to records to the extent that
(i) such access is prohibited by Applicable Laws, (ii) such records are legally privileged, (iii) such records are company planning documents of such party or any of its affiliates, operating budgets (unless such records relate solely
to the Program), management reviews or employee records, and (iv) such records relate to other customers or operations of such party other than the Program or to personnel records not normally disclosed in connection with audits. 

(b) In the event that an audit performed pursuant to this Section 14.1 reveals any systemic error, operational deficiency
or material discrepancy, the Audited Party shall correct such error, make any necessary adjustments and in addition pay for the Auditing Party’s costs in connection with conducting such audit up to the amount of the impact of such error or
adjustment. 
 14.2 Access. Retailer will permit Bank’s representatives to visit Retailer stores during normal business hours
with reasonable advance notice. Retailer also authorizes Bank, at Bank’s expense, to monitor administration and promotion of the Program through mystery shopping and by other reasonable means. Retailer will allow access to its stores and/or
records relating to the Program to Bank’s regulators to the extent such access is requested by Bank’s regulators. 
 ARTICLE 15
— MISCELLANEOUS 
 15.1 Confidentiality. 

(a) Except as provided in this Section 15.1, “Confidential Information” means any of the following:
(i) all material and information supplied by one party to another party in connection with the Program or with the transactions contemplated by this Agreement, (ii) information concerning a party and its businesses, customers and employees
obtained in connection with the Program, including marketing plans, objectives or financial results, business systems, methods and processes and (iii) the terms and conditions of this Agreement and all documents and information generated
pursuant to this Agreement. 
 (b) Confidential Information will not include information that is sourced from information
that: (i) is already rightfully known to such party at the time it obtains Confidential Information from the other party; (ii) is or becomes generally available to the public other than as a result of disclosure in breach of this Agreement
or any other confidentiality obligations; (iii) is lawfully received on a non-confidential basis from a third party not known to be bound by an obligation of confidentiality, and without breach of this Agreement; or (iv) is developed by a
party without the use of any proprietary, non-public information provided by the other party under this Agreement. 
 (c) If
a party (the “Receiving Party”) receives Confidential Information of the other party (the “Disclosing Party”), the Receiving Party shall do the following with respect to such Confidential information: (i) keep
the Confidential Information of the Disclosing Party secure and confidential; (ii) treat all Confidential Information of the 

  
 39 

 
Disclosing Party with the same degree of care as it accords its own Confidential Information, but in no event less than a reasonable degree of care; and (iii) implement and maintain
commercially reasonable physical, electronic, administrative and procedural security measures with respect to such Confidential Information. 

(d) Nothing in Section 15.1 will prohibit the Receiving Party or its employees, officers, directors, representatives,
agents, third-party service providers and advisors, including its accountants, consultants, independent auditors or attorneys (collectively, its “Representatives”) from disclosing Confidential Information: (i) as required by
Applicable Law; (ii) to those of its respective affiliates, and its and their respective Representatives who reasonably require such Confidential Information in connection with providing advice to the Receiving Party, including with respect to
the Receiving Party’s exercise of its rights or performance of its obligations under this Agreement and each of which is bound by an obligation of confidentiality consistent with this Section 15.1; (iii) as required to be disclosed in
response to interrogatories, subpoenas, civil investigative demands, compulsory process or otherwise required by Applicable Law in connection with any judicial or arbitral process or public securities filing requirements (on condition that
(A) the Receiving Party, subject to such Applicable Law, uses commercially reasonable efforts to avoid such disclosure and to notify the Disclosing Party of any such use or requirement prior to disclosure of any Confidential Information in
order to afford the Receiving Party an opportunity to seek a protective order to prevent or limit disclosure of the Confidential Information to third parties; and (B) such information is disclosed only to the extent required by such Applicable
Law); (iv) to the extent necessary, in exercising or enforcing its rights or performing its obligations under this Agreement; or (v) as may be agreed upon in writing by the Disclosing Party. 

(e) Upon written request after the Final Liquidation Date, each party will destroy or return to the party providing such
Confidential Information all such Confidential Information in its possession or control, provided, however, Bank or Retailer may retain a copy of any such Confidential Information it reasonably determines it must maintain to satisfy
Applicable Law or any regulatory authority and may retain Cardholder Information as otherwise provided in this Agreement. 

(f) Section 15.1(a) to the contrary notwithstanding, if Retailer is obligated to file periodic reports with the Securities
and Exchange Commission, then Retailer shall have the right to file a copy of this Agreement with the applicable commission or governmental agency to the extent necessary, in Retailer’s reasonable opinion, to comply with any applicable
disclosure laws or regulations (including any reporting requirement of the Securities Exchange Commission), or any listing requirement of any stock exchange, including NASDAQ, applicable to Retailer; provided, that Retailer shall
(i) notify Bank in writing not less than thirty (30) days prior to any such filing of this Agreement (or such shorter period as is required to permit Retailer to comply with applicable SEC rules); (ii) redact or move to schedules such
terms of this Agreement as Bank may reasonably request prior to any such filing; and (iii) file a confidential treatment request reasonably acceptable to Bank with respect to such redacted document as part of any such filing. 

  
 40 

 15.2 Binding Effect. This Agreement is binding upon and inures to the benefit of the
parties hereto and their respective successors and permitted assigns. 
 15.3 Assignment. Neither Bank nor Retailer may assign its
rights or delegate its obligations under this Agreement without the prior consent of the other party except as set forth in Schedule 15.3 hereto. 

15.4 Outsourcing; Subcontracting. Bank and Retailer may outsource or subcontract their respective obligations under the Program as set
forth in Schedule 15.4 hereto. 
 15.5 Governing Law; Venue; Waiver of Jury Trial. Except to the extent superseded by federal
law applicable to banks or savings associations, this Agreement and all rights and obligations hereunder, including matters of construction, validity and performance, shall be governed by and construed in accordance with the laws of the State of
Delaware. Each party agrees that any legal action or proceeding arising out of or in connection with this Agreement shall be brought in the United States District Court for the District of Delaware (or, should such federal court lack competence to
hear such legal action or proceeding, in a state court with competent jurisdiction in New Castle County). THE PARTIES HERETO WAIVE THEIR RIGHT TO REQUEST A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING IN ANY COURT OF LAW, TRIBUNAL, OR OTHER LEGAL
PROCEEDING ARISING OUT OF OR INVOLVING THIS AGREEMENT, OR ANY DOCUMENT DELIVERED IN CONNECTION HEREWITH, OR RELATING TO ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 

15.6 Data Security and Privacy. 

(a) Retailer and Bank will only use, maintain and/or disclose Cardholder Information in compliance with all applicable privacy
and security laws and with the policies set forth in Schedule 7.2 and this Section 15.6 and related disclosures made by Bank (collectively, the “Bank Privacy Disclosures”), and each will ensure that persons to whom it
transfers Cardholder Information do the same. Retailer acknowledges that it is subject to the reuse and redisclosure provisions of the Gramm-Leach-Bliley Act (the “Gramm-Leach-Bliley Act” as defined in Title V, Subtitle A of 15 U.S.C. 6801
et seq. (as it may be amended from time to time) and the implementing privacy and security regulations issued pursuant to the Gramm-Leach-Bliley Act (as the same may be amended from time to time)), and that it will ensure that Cardholder Information
received from Bank is used only as permitted by the terms of this Agreement, including Section 6 of Schedule 7.2 and Section 7.8 and for no other purpose. Bank will ensure that persons to whom it transfers Cardholder Information
(other than at the direction of Retailer) will use the Cardholder Information only as permitted by the terms of this Agreement. 

(b) Retailer and Bank will each establish and maintain appropriate administrative, technical and physical safeguards to protect
the security, confidentiality and integrity of the Cardholder Information, including, as applicable, by complying with PCI DSS with respect to the Private Label Program (as if the Private Label Cards were Co-Brand Cards) and the Co-Brand Program.
These safeguards will be designed to comply with Applicable Law and to protect the security, confidentiality and integrity of 

  
 41 

 
the Cardholder Information, ensure against any anticipated threats or hazards to its security and integrity, and protect against unauthorized access to or use of such information or associated
records which could result in substantial harm or inconvenience to any Cardholder or applicant. 
 (c) Retailer and Bank will
each ensure that any third party to whom it transfers or discloses Cardholder Information signs a written contract with the transferor in which such third party agrees to (i) restrict its use of Cardholder Information to the use specified in
the written contract; (ii) to comply with all Applicable Laws (including privacy and security laws and the reuse and redisclosure provisions of the Gramm-Leach-Bliley Act) and the Bank Privacy Disclosures, and (iii) implement and maintain
appropriate safeguards as stated in paragraph (b) above. Information transferred by Bank on Retailer’s behalf and at Retailer’s express direction (including requests that require ongoing, periodic transfers by Bank on Retailer’s
behalf) will be considered information transferred by Retailer hereunder. Retailer agrees to transfer or make available to third parties only such Cardholder Information as is reasonably necessary to carry out the contemplated task. 

(d) Retailer and Bank shall promptly notify the other party (except in instances where notice is prohibited by Applicable Law
or a Governmental Authority requests that notice be withheld or delayed) following discovery or notification of any actual or threatened breach of security of the systems maintained by the Retailer and Bank, respectively. The party that suffers the
breach of security (the “Affected Party”) agrees to take action immediately, at its own expense, to investigate the actual or threatened breach, to identify and mitigate the effects of any such breach and to implement reasonable and
appropriate measures in response to such breach and prevent further breaches. The Affected Party also will provide the other party with all available information regarding such breach to assist such other party in implementing its information
security response program. The Affected Party shall (i) assist the other party and any forensic firm retained by the other party in investigating, remedying and taking any other action the other party reasonably deems necessary regarding any
breach of security to the extent that it impacts such other party’s systems and any dispute, inquiry or claim that concerns such breach of security and (ii) provide the other party with assurance satisfactory to the other party that any
breach of security or potential breach of security will not recur. Unless prohibited by Applicable Law, the Affected Party shall also notify the other party of any third-party legal process relating to any breach of security, including any legal
process initiated by any Governmental Authority. The Affected Party, in consultation with the other party, shall provide any notices to Cardholders required by Applicable Law or that the Affected Party reasonably determines are appropriate under the
circumstances, and shall bear the cost and expense of any such notice to Cardholders. For the purposes of this subsection (d), the term “breach of security” or “breach” means the unauthorized access to or acquisition of any
record containing personally identifiable information relating to a Cardholder, whether in paper, electronic, or other form, in a manner that renders misuse of the information reasonably possible or that otherwise compromises the security,
confidentiality, or integrity of the information. 

  
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 (e) Notwithstanding anything else contained in this Agreement, neither Bank nor
Retailer will, and neither of them will be obligated to, take any action that either of them believes in good faith would violate, or is reasonably likely to cause either of them to violate, any Applicable Law (including privacy and security laws
and the reuse and redisclosure provisions of the Gramm-Leach-Bliley Act) or the Bank Privacy Disclosures, or that would cause either of them to become a “consumer reporting agency” for purposes of the federal Fair Credit Reporting Act, as
it may be amended from time to time. 
 (f) Retailer and Bank, respectively, will use reasonable measures designed to
properly dispose of all records containing personally identifiable information relating to Cardholders, whether in paper, electronic, or other form, including adhering to policies and procedures that require the destruction or erasure of electronic
media containing such personally identifiable information so that the information cannot practicably be read or reconstructed. 

(g) Notwithstanding anything else contained in this Agreement, Retailer acknowledges and agrees that it shall not be entitled
to obtain any personally identifiable, non-public, personal information regarding Non-Retailer Purchases and other transactions at Non-Retailer Locations. Bank may, in its sole discretion, provide Retailer with aggregate, non-personally identifiable
information regarding Non-Retailer Purchases and other transactions involving the use of a Co-Brand Credit Card. In the event Retailer obtains any personally identifiable non-public, personal information regarding such
Non-Retailer Purchases or other transactions at Non-Retailer Locations or otherwise, the use and safeguarding of such information by Retailer shall be governed by this Section 15.6 and Section 7.2
hereof. 
 15.7 No Third Party Beneficiaries. Except as otherwise expressly set forth in this Agreement, this Agreement does not
confer upon any person, other than the parties, any rights or remedies under this Agreement. 
 15.8 Amendments. This Agreement may
not be amended except by written instrument signed by Retailer and Bank. 
 15.9 No Partnership. Nothing contained in this Agreement
will be construed to constitute Retailer and Bank as partners, joint venturers, principal and agent, or employer and employee. 
 15.10
Notices. All notices and communications given under this Agreement must be in writing and must be sent by hand, by facsimile (with verbal confirmation of receipt), by certified mail, return receipt requested, or by nationally recognized
overnight courier service addressed to the party to whom such notice or other communication is to be given or made as such party’s address as set forth below and will be deemed given one (1) Business Day after being sent, as follows: 

  
 43 

			
	 if to Retailer:
  

Stein Mart, Inc.
 1200 Riverplace Boulevard

Jacksonville, FL 32207
 Attn: Chief Financial Officer
	  	 if to Bank:
  

Synchrony Bank
 170 West Election Drive, Suite 125

Draper, Utah 84020
 Attn: President

		
	 with a copy to:
 Kirschner & Legler,
P.A.
 1431 Riverplace Blvd., Suite 910
 Jacksonville, FL
32207
 Attn: Mitchell W. Legler, Esq.
	  	 with a copy to:
 Synchrony Bank – Retail
Finance
 777 Long Ridge Road
 Stamford, CT 06902

Attn: General Counsel

 provided, however, that (i) a party may notify the other party in writing (in accordance with the notice
provisions in this Section 15.10) from time to time of an alternative address for notices under this Section 15.10 and, in such case, notices hereunder will be effective if sent to the last address so designated and (ii) a party may
provide approval of advertisements and marketing materials and other Program-related materials using electronic mail. 
 15.11
Incorporation of Appendices. Each of the Appendices attached hereto is hereby incorporated by reference. 
 15.12 Nonwaiver; Remedies
Cumulative; Severability. All remedies are cumulative and not exclusive, and no delay in exercising a right will be deemed a waiver thereof. If any provision of this Agreement is held to be invalid, void or unenforceable, all other provisions
will remain valid and be enforced and construed as if such invalid provision were never a part of this Agreement. 
 15.13 Damages
Waiver. Notwithstanding anything to the contrary in this Agreement, Bank and Retailer shall not be liable to the other under or in connection with this Agreement or the Program for any indirect or consequential or other damages relating to
prospective profits, income, anticipated sales or investments, or goodwill, or for any punitive or exemplary damages; provided, that the damages limitation set forth in this Section 15.13 shall not apply to any Damages arising out of the
failure of the parties under Schedules 7.2 [Ownership and Use of Cardholder Information], 15.1 [Confidentiality] or 15.6 [Data Security and Privacy] or from Damages which result from an obligation of Bank or Retailer to pay any third party
damages claims to the extent such third party claims otherwise fall under Bank’s or Retailer’s respective indemnity obligations hereunder. 

15.14 Entire Agreement. This Agreement (together with the schedules, exhibits and appendices attached to this Agreement) is the entire
agreement of the parties with respect to the subject matter of this Agreement and supersedes all other prior understandings, writings and agreements whether written or oral, including the Prior Agreement and all amendments thereto. Without limiting
the generality of the foregoing, and with respect to those Accounts (as such term is defined in the Prior Agreement) established under the Prior Agreement, and with respect to all related indebtedness and account documentation, Bank and Retailer
each acknowledge and reaffirm that from and after the Effective Date, such Accounts, indebtedness and related account 

  
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documentation, and each party’s rights and obligations with respect thereto, shall be governed by the provisions of this Agreement, including the termination provisions set forth in Article
10, and the indemnification provisions of Article 13. 
 15.15 Further Assurances. Retailer and Bank agree to execute all such
further documents and instruments and to do all such further things as any other party may reasonably request in order to give effect to and to consummate the transactions contemplated by this Agreement. 

15.16 Survival. 

(a) Except as is expressly provided to the contrary in this Agreement, all of the terms, conditions and covenants of this
Agreement (including the applicable provisions of Section 2.2 that relate to Retailer’s retail practices, Cardholder transactions, billing, customer servicing, settlement, chargeback and dispute handling) will continue in effect following
the expiration or termination of the Term of this Agreement until the Purchase Expiration Date. 
 (b) In addition, the
following provisions will continue in effect following the Purchase Expiration Date: clause (2) of Schedule 4.1 (Royalty Payments) (during any Tail Period), Section 6.5 and Schedule 6.5 (Cardholder Rewards Program) (during
any Tail Period), Section 7.1 (Ownership of Accounts; Credit Losses); Section 7.2 and Schedule 7.2 (Ownership and Use of Cardholder Information), Section 7.11 (Intellectual Property), Section 7.13 (Grant of Security
Interest) (until Final Liquidation Date), Section 7.14 (In-Store Payments) (during any Tail Period), Section 7.21 (Sales Taxes and Related Record Retention) (until the Final Liquidation Date), Article 8 (chargebacks) and Schedule
8.1(e) (Presentment Warranties) (for six (6) months after Retailer ceases to accept Credit Cards under this Agreement), Section 11.4 and Schedule 11.4 (Bank’s Rights Upon Retailer’s Failure to Purchase Accounts),
Article 13 (Indemnification), Section 14.2 (during any Tail Period), Article 15 (Miscellaneous) other than Section 15.4 and Schedule 15.4 (Outsourcing; Subcontracting), and the provisions of the Agreement relating to acceptance of
Credit Cards, including settlement and dispute resolution with respect thereto (during any Tail Period) 
 15.17 Obligations Subject to
Law. All obligations of either party hereunder shall be subject to all Applicable Laws including any changes or amendments thereto and either party may take any actions that it in good faith believes are appropriate and are required by then
Applicable Law or the direction of any regulatory authority or, in Bank’s case, to prevent the occurrence of an “unsafe or unsound” banking practice (as defined in 12 U.S.C. § 1818, as may be amended). 

15.18 Multiple Counterparts. This Agreement may be executed in any number of multiple counterparts, all of which will constitute but
one and the same original. 
 15.19 Internet Gambling. Retailer covenants that it shall not permit any transaction through any
Retailer Sales Channel or the Retailer Website, and shall not submit any Charge Transaction Data, with respect to which any Credit Card was used to place, receive, or otherwise 

  
 45 

 
knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State
or Tribal lands in which the bet or wager is initiated, received, or otherwise made. 

  
 46 

 IN WITNESS WHEREOF, Retailer and Bank have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the date first above written. 
  

			
	RETAILER:
	
	STEIN MART, INC.
		
	By: 	 	 /s/ Gregory W. Kleffner

		 	    Name:  Gregory W. Kleffner
		 	    Title:    EVP and CFO of Stein Mart, Inc.
	
	BANK:
	
	SYNCHRONY BANK
		
	By:	 	 /s/ Tom Qundlen

		 	    Name:  Tom Qundlen
		 	    Title:    EVP and CEP Retail of Synchrony                  Financial

  
 Signature Page to
Program Agreement 

 Appendix A 

Definitions and Construction 
 I.
Definitions. As used in this Agreement, the following terms will have the following meanings: 
 “Account” means the legal relationship
established by and between a Cardholder and Bank pursuant to a Cardholder Agreement, together with all Indebtedness owing thereunder from time to time and any current or future guaranties, security or other credit support therefore. The term Account
shall include both Private Label Accounts and Co-Brand Accounts. 
 “Account Documentation” means
any and all Account information, credit applications, Cardholder Agreements and change in terms notices, Charge Transaction Data, charge slips, credit slips, payments, credit information and documents or forms of any type and in any media relating
to the Program, excluding materials used for advertising or solicitations. 
 “Active Account” means, as of any given date, any Account
(other than an Account that has been written off in accordance with Bank’s write-off policies) that had a debit or credit balance at any time after the beginning of the complete billing cycle immediately preceding such date. 

“Affected Party” has the meaning given to in Section 15.6(d). 

“Affiliated Credit Product” has the meaning given to it in Schedule 9.1. 

“Aggregate Outstanding Indebtedness” means, as of any date of determination, an amount equal to the aggregate amount of Indebtedness on all
Accounts (other than Accounts that have been written off by Bank or should have been written off by Bank pursuant to Bank’s risk management policies for the Program) as of such date. 

“Agreement” means this Co-Brand and Private Label Credit Card Consumer Program Agreement, including all schedules and appendices, as it may
be amended from time to time. 
 “Annual ROI Shortfall” has the meaning given to it in Section 10.2(p). 

“Applicable Law” means, to the extent applicable to the Program or either party, any federal, state and local laws, statutes, regulations,
written or oral regulatory guidance, orders or directives, and examination report comments, as may be amended and in effect from time to time during the Term, including: (i) the Truth in Lending Act and Regulation Z; (ii) the Equal Credit
Opportunity Act and Regulation B; (iii) the Fair Debt Collection Practices Act; (iv) the Fair Credit Reporting Act; (v) the Gramm-Leach-Bliley Act and its implementing regulations; (vi) the PATRIOT Act and its implementing
regulations; (vii) the Unfair and Deceptive Trade Practices Act; (viii) the Credit Card Accountability Responsibility and Disclosure Act of 2009; and (ix) interpretations by Bank relating to bank regulatory or legal requirements
regarding safety and soundness, [***]. 
 “Association” means the card network or card association under which Bank issues the
Co-Brand Credit Cards. 

  
 48 

 “Association Rules” means the rules imposed for bankcard programs by the Association as the same
may be amended from time to time by the Association. 
 “Audited Party” has the meaning given to it in Section 14.1(a). 

“Auditing Party” has the meaning given to it in Section 14.1(a). 

“Authorized Liquidation Sale” means, with respect to any Store Location, any sale that otherwise qualifies as a GOB Sale, but with respect to
which all of the following apply: (i) including the GOB Sale at such Store Location, no more than [***] percent ([***]%) of Retailer’s Store Locations have conducted GOB Sales during the [***] period prior to the
commencement of such GOB Sale, (ii) such GOB Sale is conducted by Retailer’s employees and does not involve the use of any outside Liquidator (other than in an advisory or administrative capacity), and (iii) such GOB Sale only
involves the sale of Retailer’s goods (including goods from other Store Locations) and does not include any goods supplied (or sold to Retailer) by an aggregator, Liquidator or a similar entity. For the avoidance of doubt, if more than [***]
percent ([***]%) of Retailer’s Store Locations have conducted GOB Sales during any [***] period, no GOB Sale from and after the date such threshold is crossed shall be deemed an Authorized Liquidation Sale (including such
sales that are in process) and Bank shall have all rights available to it with respect to such GOB Sales under this Agreement. Notwithstanding the foregoing, (i) the parties may mutually agree in writing in advance of any proposed GOB Sale to
increase the number of GOB Sales that will qualify as Authorized Liquidation Sales during any [***] period, which agreement shall not be unreasonably withheld or delayed, and (ii) if a Store Location is being closed for the purpose of
being relocated within [***] miles from the closed location within [***] following such closing, such closing and GOB Sale shall not be included as a GOB Sale for purposes of determining the number of permitted GOB Sales in this
definition, and notice of which shall be included in the notice of the closure of such location pursuant to Schedule 7.19. 
 “Average
Cardholder Indebtedness” means the sum of the Indebtedness on the last day of each month in any twelve (12) Fiscal Month period or any Rolling ROI Measurement Period, as applicable, divided by twelve (12). 

“Average Loss Reserve Balance” means the sum of the Program loss reserve balance for the Accounts on the last day of each month during any
twelve (12) Fiscal Month period or any Rolling ROI Measurement Period, as applicable, divided by twelve (12). 
 “Bank” has the
meaning given to it in the recitals. 
 “Bank Marks” means the trademarks, tradenames, service marks, logos and other proprietary
designations of Bank listed on Schedule 7.10 and licensed to Retailer under Section 7.10 hereof. 
 “Bank Matters” has the
meaning given to it in Section 2 of Schedule 5.3(d). 
 “Bank Privacy Disclosure” has the meaning given to it in
Section 15.6(a). 
 “Bank Relationship Manager” has the meaning given to it in Section 1 of Schedule 5.4. 

  
 49 

 “Bank Subcontractor” means any third party that has directly contracted with Bank to perform
services relating to Bank’s credit card business or specifically relating to the Program and/or Agreement. For the avoidance of doubt, the term Bank Subcontractor shall not include third parties with whom Bank has contracted for the provision
of generalized services such as utility and telecommunication providers. 
 “Bank Webpage” means a website hosted by Bank or Bank’s
agent for use in connection with the Program. For the avoidance of doubt, Bank shall have the sole right to determine the design and content of the Bank Webpage. Retailer shall have the right to approve the usage of its marks on the Bank Webpage.

 “beneficial owner” has the meaning given to it in Rule 13d-3 of the Exchange Act, and determinations of “beneficial ownership”
and whether a person “beneficially owns” a security shall be made pursuant thereto. 
 “Branding Expiration Date” has the meaning
given to it in Section 2.3(a). 
 “Business Days” means any day other than a Saturday, Sunday or legal holiday on which Retailer and
Bank are both open for business. 
 “Cardholder” means any natural person who has entered into a Cardholder Agreement with Bank or which is
or may become obligated under or with respect to an Account. 
 “Cardholder Agreement” means the open-end revolving credit agreement, in
either tangible or electronic form, between Bank and each Cardholder pursuant to which such Cardholder and its authorized user(s), if any, may make purchases through the Retailer Sales Channels and/or Non-Retailer Locations, as the case may be, on
credit provided by Bank under the Program. 
 “Cardholder Rewards Program” has the meaning given to it in Section 1,
paragraph (a) of Schedule 6.5. 
 “Cardholder Information” has the meaning given to it in Schedule 7.2. 

“Cardholder Terms” has the meaning given to it in Section 7.3. 

“Change in Control” means, with respect to any person, a transaction or series of related transactions as a result of which (i) any
other person or group of persons acquires, after the date of this Agreement, beneficial ownership of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of such person entitled to vote generally in
the election of directors; (ii) the stockholders of such person approve a reorganization, merger or consolidation (each a “Reorganization”), in each case through which the persons who were the respective beneficial owners of
the voting securities of such person immediately prior to such Reorganization do not beneficially own, following such Reorganization, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities entitled
to vote generally in the election of directors of such person, as a result of such Reorganization; (iii) all or substantially all of the assets or property of such person are sold or otherwise disposed of; or (iv) with respect to Bank, a
sale of any portion of Bank’s Retail Card Group that includes the Program. 

  
 50 

 “Change in Law” has the meaning given to it in Schedule 10.2(g). 

“Charge Transaction Data” means Account and related Cardholder and/or authorized user identification and transaction information transmitted
by Retailer to Bank with regard to a charge or a credit to an Account. 
 “CIL Decline” has the meaning given to it in Schedule
10.2(g). 
 “Closing Date” has the meaning given to it in Section 5 of Schedule 11.2. 

“Co-Brand Account” means an Account with respect to which a Co-Brand Credit Card has been issued. 

“Co-Brand Credit Card” means a Credit Card bearing Retailer’s name or logo, and which is intended for use by Cardholders designated by
Bank (a) in connection with the Program, through any of the Retailer Sales Channels, and (b) at Non-Retailer Locations, in connection with the Program. 

“Co-Brand Program” has the meaning given to it in Section 1.1(a). 

“Co-Brand Purchase” means the purchase of goods and/or services through any of the Retailer Sales Channels financed on a Co-Brand Account.

 “Collateral” has the meaning given to it in Section 7.13(a). 

“Confidential Information” has the meaning given to it in Section 15.1. 

“Core Value Proposition” has the meaning given to it in paragraph (c) of Schedule 6.5. 

“Credit Card” means the plastic card or other device or form factor issued by Bank under the Program and pursuant to a Cardholder Agreement
for use with the Program (including a Private Label Credit Card or a Co-Brand Credit Card) which evidences the right of a Cardholder and, if the Cardholder has so designated, any authorized user(s) to make purchases through the Retailer Sales
Channels and/or Non-Retailer Locations, as the case may be, under the Program and, with respect to Co-Brand Credit Cards, to obtain, use or effect cash advances, convenience checks and balance transfers. 

“Credit Card Application” means Bank’s credit application which must be completed and submitted for review to Bank by individuals who
wish to become Cardholders. 
 “Credit Product” has the meaning given to it in Schedule 9.1. 

“Credit Review Point” has the meaning provided in Schedule A-1. 

“Cross-Selling Net Revenue” shall mean: (a) the gross amount of fees billed to Cardholders with respect to Enhancement Products; minus
(b) the sum of all (i) cancelled products (e.g. products that have been purchased and that customer requests to be cancelled); (ii) waived fees; (iii) direct fulfillment expenses related to such products; and (iv) benefit
claims. Notwithstanding the foregoing, Bank shall not deduct any general overhead expenses allocated to Enhancement Products in the calculation of Cross-Selling Net Revenue. 

  
 51 

 “Cure Month” has the meaning given to it in Schedule 7.4(c). 

“Damages” means any and all losses, liabilities, costs, and expenses (including reasonable attorneys’ fees and expenses, reasonable
out-of-pocket costs, interest and penalties), settlements, equitable relief, judgments, damages, claims (including counter and cross-claims, and allegations whether or not proven) demands, offsets, defenses, actions, or proceedings by whomsoever
asserted. 
 “Debt Cancellation Program” means any program which may be offered through Bank pursuant to Schedule 6.6 under which
Bank, any affiliate of Bank, or any third party makes available debt cancellation coverage to Cardholders. 
 “Debt to Equity Ratio” has
the meaning given to it in Schedule 10.2(g). 
 “Determining Party” has the meaning given to it in Section 7.14. 

“Direct Settlement Process” has the meaning given to it in Section 3.2(b). 

“Disclosing Party” has the meaning given to it in Section 15.1(c). 

“Disputed Matter” has the meaning given to it in Section 5.3(c). 

“Dodd-Frank Act” has the meaning given to it in Schedule 10.2(g). 

“Effective Date” has the meaning given to it in Section 1.1(a). 

“Eligibility Threshold” has the meaning given to it in Schedule 7.4(c)(1). 

“Eligible Application” has the meaning given to it in Schedule 7.4(c)(1). 

“Enhancement Product” has the meaning provided in Section 1 of Schedule 6.6. 

“Excluded Calls” has the meaning given to it in Section 7.16(c). 

“Exercise Notice” means the notice given by Retailer to Bank of Retailer’s intent to purchase or arrange for the purchase of the
portfolio pursuant to Section 2(b) of Schedule 11.2. 
 “Expedited Review” has the meaning given to it in
Section 5.5. 
 “Expedited Review Notice” has the meaning given to it in Section 5.5(a). 

“Final Liquidation Date” means, if Retailer does not exercise its Purchase Option as set forth in Schedule 11.2, the day on which all
indebtedness on the Accounts is repaid. 
 “Financial Covenants” has the meaning given to it in Schedule 10.2(p). 

  
 52 

 “Fiscal Month” means a fiscal month of Bank. 

“Fiscal Year Average Net Investment” has the meaning given to it in Schedule 4.1(6). 

“Force Majeure Event” means any of the following: acts of God, fire, earthquake, explosion, accident, terrorism, war, nuclear disaster,
and/or riot, rendering it illegal, impossible or untenable for such party to perform as contemplated in, or to offer the Program on the terms contemplated under, this Agreement. 

“Funded Debt” has the meaning given to it in Schedule 10.2(g). 

“GAAP” has the meaning given to it in Schedule 10.2(g). 

“Gain Sharing Payment” has the meaning given to it in Schedule 4.1. 

“Gain Sharing Statement” has the meaning given to it in Schedule 4.1. 

“Generally Accepted” has the meaning given to it in Schedule 9.1. 

“GOB Sale” means any sale of goods which is advertised or presented to the public as a liquidation or “going out of
business” sale. 
 “Governmental Authority” means any federal, state or local domestic, foreign or supranational governmental,
regulatory or self-regulatory authority, agency, court, tribunal, commission or other governmental, regulatory or self-regulatory entity. 
 “Gross
Program Revenue” has the meaning given to it in Schedule 10.2(g). 
 “Indebtedness” means any and all amounts owing from
time to time with respect to an Account whether or not billed, including any unpaid balance, finance charges (inclusive of finance charges subject to possible reversals due to unexpired credit-based promotions), late charges, and NSF fees less the
amount of any credit balances owing by Bank to Cardholders, including in respect of any payments and any credits associated with returns of goods and/or services and other credits and adjustments, whether or not billed. 

“Indemnified Party” has the meaning given to it in Section 13.3(a). 

“Indemnifying Party” has the meaning given to it in Section 13.3(a). 

“Initial Association” has the meaning given to it in Section 2.3(b). 

“Initial Renewal Term” has the meaning given to it in Section 10.1. 

“In-Store Payments” has the meaning given to it in Section 7.14. 

“Inserts” has the meaning given to it in Section 7.8(a). 

“Intangible Assets” has the meaning given to it in Schedule 10.2(g). 

  
 53 

 “Internet Purchases” has the meaning given to it in Schedule 8.1(e). 

“Internet Transaction” has the meaning given to it in Section 7.17(a). 

“Operating Committee” has the meaning given to in Section 5.1. 

“Liquidator” means, a third party sales agent or similar party not an affiliate of Retailer selling the goods of Retailer, on behalf of or as
agent for Retailer, at Store Locations which are liquidating in connection with a GOB Sale or similar sale, and which may include the sale of goods delivered on consignment or goods belonging to any similar party. 

“Majority of Comparable Programs” means more than [***] (measured by number of programs) of the lesser of: (i) [***] or
(ii) [***]. Bank shall provide Retailer with [***] at the time Bank seeks to effectuate any right premised on the above threshold as to [***] the applicable “Majority of Comparable Programs”. [***]. 

“Marketing Fund” has the meaning given to it in Section 1 of Schedule 6.2. 

“Marketing Plan” means the plan approved by the Operating Committee pursuant to Section 5.2(b). 

“MasterCard” means MasterCard International Incorporated. 

“Master File Information” has the meaning given to it in Section 4 of Schedule 11.2. 

“Material Issue” has the meaning given to it in Section 5.5. 

“Measurement Month” has the meaning given to it in Schedule 7.4(c)(1). 

“Measurement Period” has the meaning given to it in Schedule 7.4(c)(1). 

“Minimum Approval Rate Targets” has the meaning given to it in Schedule 7.4(c)(1). 

“Minimum Credit Line Targets” has the meaning given to it in Schedule 7.4(c). 

“Minimum Credit Targets” has the meaning given to it in Schedule 7.4(c). 

“Minimum Tangible Net Worth” has the meaning given to it in Schedule 10.2(g). 

“Minimum Threshold” has the meaning given to it in Schedule 7.4(c)(1). 

“Net Purchase Volume” means with respect to any Account during the calculation period, the dollar amount of purchases of goods and services
(including any applicable sales tax, delivery fees, or other service fees), after deducting the amount of any credits associated with returns of goods and services and similar credits and adjustments (other than payments with respect to such
Accounts); provided, however, such Net Purchase Volume shall not include balance transfers, cash advances, convenience checks, fraudulent or unauthorized purchases or credits or any other types of fees and charges that do not represent
the purchase of goods and services. 

  
 54 

 “Newly Activated Bounty Account” has the meaning given to it in Schedule 4.1. 

“New Store Certification” has the meaning given to it in Schedule 7.19. 

“New Store Opening Time Period” has the meaning given to it in Schedule 7.19. 

“New [***] Credit Product” has the meaning given to it in Schedule 9.1. 

“Net Worth” has the meaning given to it in Schedule 10.2(g). 

“Nominated Purchaser” has the meaning given to it in Section 1 of Schedule 11.2. 

“Non-Retailer Locations” means any retail location (including through catalogs and the Internet), other than the Retailer Sales Channels,
which accepts Association-branded credit cards in payment for goods and services purchased at such location. 
 “Non-Retailer Purchase”
means the purchase of goods and services at Non-Retailer Locations financed on a Co-Brand Account. 
 “Non-Retailer Royalty” has the
meaning given to it in Schedule 4.1. 
 “Operating Procedures” means procedures developed by Bank governing the flow of application
information and Charge Transaction Data, the logistics and specific procedures involved in the establishment and maintenance of Accounts under the Program and settlement procedures for charges submitted to Bank. 

“Origination Activities” has the meaning given to it in Schedule 9.1. 

“Outside Buying Information” has the meaning given to it in Section 2 of Schedule 7.2. 

“PCI DSS” means the data security standards adopted by the PCI Security Standards Council, LLC. 

“Permitted Credit Products” has the meaning given to it in Schedule 9.1. 

“Permitted Promotions” has the meaning given to it in Schedule 9.1. 

“Planned Promotion” has the meaning given to in Section 7.16(c). 

“Planned Promotion Notice” has the meaning given to in Section 7.16(c). 

“Planned Promotion Period” has the meaning given to in Section 7.16(c). 

“PLCC Program” has the meaning given to it in Section 1.1(a). 

“PLCC Purchase” means the purchase of goods and/or services through any Retailer Sales Channel financed on a Private Label Account. 

“Portfolio Data” has the meaning given to it in Section 2 of Schedule 11.2. 

  
 55 

 “Portfolio Data Delivery Date” has the meaning given to it in Section 2(a) of Schedule
11.2. 
 “[***]” has the meaning given to it in Section 7.4(e). 

“Preferred Customers” means Retailer customers designated as “VIP” and customers enrolled in the Retailer’s card-based
loyalty program. 
 “Prior Program” has the meaning given to it in the recitals. 

“Prior Program Agreement” has the meaning given to it in the recitals. 

“Privacy Policy” means the privacy policy and associated disclosures to be provided by Bank to Cardholders in connection with the Program as
set forth on Schedule 7.2(b). 
 “Private Label Account” means any Account with respect to which a Private Label Credit Card has
been issued. 
 “Private Label Credit Card” means a Credit Card bearing Retailer’s name or logo for use by Cardholders designated by
Bank to make purchases exclusively through Retailer Sales Channels. 
 “Program” has the meaning given to it in Section 1.1. 

“Program Assets” means the Co-Brand Accounts, PLCC Accounts, Account Documentation, Cardholder Information, solicitation materials and all
Aggregate Outstanding Indebtedness. 
 “Program Materials” has the meaning given to it in Section 7.10(a). 

“Program Half-Year” means either the first consecutive six months or the second consecutive six months of a Program Year. 

“Program Year” means the twelve (12) month period between February 1 to January 31. The first Program Year shall begin on
February 1, 2016. 
 “Program Year Average Net Investment” has the meaning given to it in Schedule 4.1(6). 

“Prohibited Transactions” means, any sale of goods or services that are: (i) sold in violation of any applicable federal, state or local
law or regulation pertaining to a general liquidation of the assets of Retailer, GOB Sale or similar sale; or (ii) sold in a sale involving a Liquidator which is not an Authorized Liquidation Sale. 

“Purchase Expiration Date” means the latest of (i) the Closing Date if Retailer provides an Exercise Notice to Bank, (ii) the date
upon which Retailer notifies Bank of Retailer’s intent not to purchase the Accounts, or (iii) last date upon which Retailer may exercise its Purchase Option as set forth in Schedule 11.2 if Retailer has failed to provide an Exercise
Notice to Bank. 
 “Purchase Option” has the meaning given to it in Section 1 of Schedule 11.2. 

“Reasonable Financial Services Practices” means practices reasonably determined by Bank to be necessitated in order to comply with Applicable
Law. 

  
 56 

 “Receiving Party” has the meaning given to it in Section 15.1(c). 

“Relationship Manager” means the Bank Relationship Manager or the Retailer Relationship Manager, as such terms are defined in Sections 1 and
2 of Schedule 5.4. 
 “Renewal Term” has the meaning given to it in Section 10.1. 

“Repeat Change in Law” has the meaning given to it in Schedule 10.2(g). 

“Representatives” has the meaning given to it in Section 15.1(d). 

“Remediation Period” has the meaning given to it in Schedule 10.2(g). 

“Retailer” has the meaning given to it in the recitals. 

“Retailer-Generated Materials” has the meaning given to it in Section 2.2(p). 

“Retailer Marks” means the names and any related marks, tradestyles, trademarks, service marks, logos or similar proprietary designations as
the same currently exist and as they may be amended or adopted by Retailer or its affiliates from time to time hereafter. As of the date hereof, the Retailer Marks include those listed on Schedule 7.10. 

“Retailer Matters” has the meaning given to it in Section 1 of Schedule 5.3(d). 

“Retailer Royalty” has the meaning given to it in Schedule 4.1. 

“Retailer Sales Channel(s)” means the sales channels through which Retailer sells its good and services to consumers, which, as of the
Effective Date shall mean its Store Locations. To the extent Retailer develops the capability during the Term to sell goods via any other sales channel, subject to the mutual agreement of Bank and Retailer, such sales channel shall be considered a
Retailer Sales Channel for purposes of this Agreement. 
 “Retailer Website” means the internet website with the internet address
www.steinmart.com, and any other internet website maintained, operated or controlled by Retailer for the purposes of selling goods and services that Bank agrees in writing may constitute the Retailer Website. 

“Rolling ROI” means, for any Rolling ROI Measurement Period, the “Return on Investment” or “ROI” as defined in
Schedule 4.1(6); provided, however, that in calculating the Rolling ROI, all income from Debt Cancellation Programs and any other Enhancement Products shall be excluded, and all income from sales tax recoveries pursuant to
Section 7.21 of this Agreement shall be included. 
 “Rolling ROI Measurement Period” means any period of four consecutive
fiscal quarters beginning with the first period of four full consecutive fiscal quarters of the Bank following the Effective Date. 
 “Rolling ROI
Minimum” has the meaning given to it in Schedule 10.2(o). 
 “Second Look Program” has the meaning given to it in
Schedule 9.1. 

  
 57 

 “Senior Officers” has the meaning given to it in Section 5.3(c). 

“Service Level Standards” has the meaning given to in Section 7.16(a). 

“Significant Event” has the meaning given to it in Section 7.20. 

“Signing Bonus” has the meaning given to it in Schedule 4.1, 

“Solvent” means, as to any person, (i) that the present fair salable value of such person’s assets exceeds the total amount of its
liabilities; (ii) that such person is generally able to pay its debts as they come due; and (iii) that such person does not have unreasonably small capital to carry on such person’s business as theretofore operated and as thereafter
contemplated. The phrase “present fair salable value of such person’s assets” means that value that could be obtained if such person’s assets were sold within a reasonable time in one or more arm’s-length transactions in an
existing and not theoretical market. 
 “Shortfall Notice” has the meaning given to it in Section 10.2(p). 

“Store Location” means those retail stores owned or operated by Retailer within the United States and the Retailer Website. 

“Store Transaction Information” has the meaning given to it in Section 2 of Schedule 7.2. 

“Tail Period” has the meaning given to it in Schedule 11.4. 

“Tangible Net Worth” has the meaning given to it in Schedule 10.2(g). 

“Term” has the meaning given to it in Section 10.1. 

“Third Party” has the meaning given to it in Schedule 7.2. 

“Third-Party Claim” means any action, suit, proceeding, arbitration, claim or demand that is instituted or asserted by a third party,
including a Governmental Authority, against an Indemnified Party pursuant to which the Indemnified Party makes a claim for indemnification under this Agreement. 

“Third Party Participant” has the meaning given to in Section 12.3. 

“Through-The-Door Applicants” has the meaning given to it in Schedule 7.4(c)(1). 

“Transaction Information” has the meaning given to it in Section 2 of Schedule 7.2. 

“Unamortized Signing Bonus” has the meaning given to it in Schedule A-2. 

II. Construction. As used in this Agreement, the following rules of construction apply: 

(i) all references to the plural number shall include the singular number (and vice versa); 

  
 58 

 (ii) all references to the masculine gender shall include the feminine gender
(and vice versa); 
 (iii) the terms “include” and “including” are meant to be illustrative and not
exclusive, and shall be deemed to mean “include without limitation” or “including without limitation;” 

(iv) the word “or” is disjunctive, but not necessarily exclusive, except where clearly indicated by the context; 

(v) the word “and” is conjunctive only, except where clearly indicated by the context; 

(vi) the words “herein,” “hereof,” “hereunder” and words of like import shall refer to this
Agreement as a whole (including its Schedules and Exhibits), unless the context clearly indicates to the contrary (for example, where a particular Section, Schedule or Exhibit is the intended reference); 

(vii) where specific language is used to clarify or illustrate by example a general statement contained herein, such specific
language shall not be deemed to modify, limit or restrict the construction of the general statement which is being clarified or illustrated; 

(viii) text enclosed in parentheses has the same effect as text that is not enclosed in parentheses; 

(ix) all references made in this Agreement to a statute or statutory provision shall mean such statute or statutory provision
as it has been amended through the date as of which the particular portion of this Agreement is to take effect, or to any successor statute or statutory provision relating to the same subject as the statutory provision so referred to in this
Agreement, and to any then applicable rules or regulations promulgated thereunder, unless otherwise provided; 
 (x) all
references in this Agreement to an Article, Section or Schedule is to the Article of, Section of, or Schedule to this Agreement unless otherwise expressly provided; 

(xi) all references to an Article or Section in this Agreement shall, unless the context clearly indicates to the contrary,
refer to all sub-parts or sub-components of any said article or section; 
 (xii) all references to “notice,”
“notification,” “approval” or “consent” shall be deemed to include the words “in writing” unless otherwise specifically noted; 

(xiii) all references to “days” mean calendar days unless otherwise indicated through the use of the phrase
“Business Day;” 

  
 59 

 (xiv) the construction of this Agreement shall not take into consideration the
party who drafted or whose representative drafted any portion of this Agreement, and no canon of construction shall be applied against a party on the basis that such party was the drafter; 

(xv) any Article, Section, Subsection, Paragraph or Subparagraph headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement; 
 (xvi) unless the context
otherwise requires or unless otherwise provided herein, all references in this Agreement to a particular agreement, instrument, or document also shall refer to all schedules or exhibits, renewals, extensions, modifications, amendments and
restatements of such agreement, instrument, or document; 
 (xvii) references to any amount as on deposit or outstanding on
any particular date means such amount at the close of business on such day; 
 (xviii) if a day on or by which an obligation
must be performed or an event must occur is not a Business Day, the obligation must be performed or the event must occur on or by the next Business Day; 

(xix) “dollars” and “$” mean United States dollars; 

(xx) a reference to time is to New York local time (i.e., Eastern Time in the United States); and 

(xxi) reference to “oral” with respect to regulatory guidance, orders or directives shall be deemed to require a
written certification signed by an officer of Bank that a Governmental Authority has provided such guidance, order, directive or instruction orally. 

References herein to a “person” or “persons” shall be deemed to be references to an individual, corporation, limited
liability company, partnership, trust, unincorporated association, joint venture, joint-stock company, or any other form of entity. 
 Captions of the
sections of this Agreement are for convenience of reference only and are not intended as a summary of such sections and do not affect, limit, modify or construe the contents thereof. 

  
 60 

 SCHEDULE 2.1(d) 

Bank Program Resources 
  

					
	 Position
	  	 Number of Staff
	  	 Specifications

	 Relationship
 [***]
	  	[***]	  	 •    Overall responsibility for [***]. Permanently physically
located at [***].

			
	Marketing [***]	  	[***]	  	 •    Overall responsibility for [***]. Permanently physically
located at [***].

			
	Risk [***]	  	[***]	  	 •    Overall responsibility for [***].

			
	Operations [***]	  	[***]	  	 •    Overall responsibility for [***].

			
	Database [***]	  	[***]	  	 •    Responsible for providing [***].

 [***]. 
 Bank shall provide all
required tools, equipment, seats, and licenses for all Bank employees relating to the Program, including those that may be physically located on Retailer’s premises. 

Bank will cause its employees and subcontractors at Retailer’s facilities to comply with Retailer’s safety, security, and confidentiality rules and
other rules applicable to those working in Retailer’s facilities, and access to and security of any Retailer computer system to which Bank may have access. Bank will cooperate with authorized employees or third party agents or subcontractors of
Retailer at Retailer’s facilities. 

  
 61 

 SCHEDULE 2.2(h) 

Submission of Charge Transaction Data 

Retailer shall only submit Charge Transaction Data in respect of products or services reasonably related to the types of products or services
offered for sale by Retailer through the Retailer Sales Channels as of the Effective Date. Notwithstanding the foregoing, Retailer may expand its business to add new and unrelated products or services provided that such new products or services do
not materially adversely affect the Program. In the event Bank reasonably determines that an expansion of Retailer’s business as contemplated hereunder has or will have a material adverse effect on the Program, the parties agree to negotiate in
good faith to modify the terms of the Program to address the expansion in Retailer’s business. 

  
 62 

 SCHEDULE 2.5 

Program Expenses 
  

			
	 Synchrony Expenses
	  	Stein Mart Expenses
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	
	 [***]
	  	

  
 63 

 SCHEDULE 4.1 

Compensation 

1. Signing Bonus. As an incentive for Retailer to enter into this Agreement (including the provisions of Article 9), within five
(5) Business Days of the date of execution of this Agreement, Bank will pay to Retailer [***]. 
 2. Royalty Payments and
the Calculation Thereof. Bank shall pay to Retailer the royalty payments as set forth below. 
 (a) The royalty
payment in the case of all Co-Brand Purchases and PLCC Purchases shall be an amount equal to the product of Net Purchase Volume applicable to Co-Brand Purchases and PLCC Purchases and (i) [***] and (ii) [***] (the “Retailer
Royalty”). 
 (b) The royalty payment in the case of all Non-Retailer Purchases shall be an amount equal to the
product of Net Purchase Volume applicable to Non-Retailer Purchases and [***] (the “Non-Retailer Royalty”). 
 3.
Cross-Selling Revenue. 
 (a) Each month, to the extent permitted by Applicable Law, Bank shall pay to Retailer an
amount equal to [***] of the Cross-Selling Net Revenue derived from the sale of Enhancement Products pursuant to Schedule 6.6 to the Agreement, excluding Debt Cancellation Programs. 

(b) Each month, to the extent permitted by Applicable Law, Bank shall pay to Retailer an amount equal to [***] of the
Cross-Selling Net Revenue derived from the sale of Debt Cancellation Programs pursuant to Schedule 6.6 to the Agreement. 
 4.
Interchange. [***]. 
 5. Tracking and Payment for SPIFs. Bank shall track the accumulation of SPIFs
provided that Retailer submits to Bank tracking data related to such SPIFs. Following each month, Bank shall pay Retailer for the payment of SPIFs an amount equal to [***] as provided for in Schedule 6.4 of the Agreement.
Notwithstanding the foregoing, Bank’s obligation to pay such SPIFs pursuant to this paragraph 5 shall be subject to Retailer’s demonstration to Bank’s reasonable satisfaction that Retailer is directly awarding the proceeds of such
SPIFs to employees as an incentive for promoting the Program. Retailer’s employee incentive program with respect to the Program shall be subject to approval by Bank solely with respect to compliance with Applicable Law and risk management
practices. 
 6. Gain Sharing. Each Program Year, Bank shall make the payment due to Retailer, if any, as provided for in and
calculated in accordance with Schedule 4.1(6) hereto. 
 7. Field Sales Support. To the extent that Retailer has
a field sales team actively facilitating the promotion of the Program, each Program Year, Bank shall pay to Retailer [***]. 

  
 64 

 8. In-Store Payments. Bank shall pay to Retailer an amount equal to the product of
(a) the actual number of separate In-Store Payments processed by Retailer in accordance with Section 7.14 during the prior month and (b) [***]. 

9. Store Grand Opening Payments. With respect to any Store Location opened by Retailer on or after the Effective Date, Bank
shall pay to Retailer [***]. 
 10. Acquisition Bounty Payments. Bank shall pay to Retailer the following amount for
each Newly Activated Bounty Account [***]: 
  

					
		  	[***]	 	[***]
	 Co-Brand Account
	  	[***]	 	[***]
	 Private Label Account
	  	[***]	 	[***]

 For purposes of this Schedule 4.1, “Newly Activated Bounty Account” means a Co-Brand Account or
Private Label Account which meets each of the following conditions: (a) opened on or after the Effective Date and (b) for which at least one purchase, of any amount, at a Retailer Sales Channel or Non-Retailer Location was processed in the
[***] following the opening of such Co-Brand Account or Private Label Account. 
 11. Payment. Amounts owing under
paragraphs 2(b), 3, 4(a), 5, 8, 9 and 10 of this Schedule 4.1 shall be paid within fifteen (15) Business Days following the end of each month during the Term. Amounts owing under paragraph 2(a) shall be paid each Business Day in
accordance with Section 3.1. Amounts owing under paragraph 6 and 7 herein shall be paid within forty-five (45) calendar days after the end of each Program Year following the Effective Date during the Term. 

  
 65 

 SCHEDULE 4.1(6) 

Gain Sharing Terms and Conditions 

(a) Bank shall provide Retailer with an annual actual gain sharing statement, prepared in accordance with the formula set forth below (each
such statement is referred to as a “Gain Sharing Statement”), the form for which is shown in Exhibit A to this Schedule 4.1(6). Bank shall also provide Retailer with a forecasted annual Gain Sharing Statement for each Program
Year by the end of February of each Program Year, and shall update such forecasted statement quarterly during the Program Year. Within forty-five (45) days after the end of each Program Year, Bank shall pay to Retailer the gain sharing amount
computed as described in this Schedule 4.1(6) (the “Gain Sharing Payment”), if such amount is a positive number. The parties acknowledge and agree that (x) any Gain Sharing Payment is intended to be based on a
calculation as of the end of each applicable Program Year, which takes into account the revenues, expenses and investment (as more fully described below in X, Y and Z, respectively) applicable to such Program Year, and (y) a Gain Sharing
Payment will only be payable with respect to a Program Year if [***]. 
 The Gain Sharing Payment shall be calculated as follows:

 [(ROI x Z) — ([***] x Z)] x [***]. 

“Return on Investment” or “ROI” as of the end of any Program Year shall mean an amount calculated in
accordance with the following formula: 
 ROI=(X—Y)/Z 

Where X, Y and Z are equal to the following amounts, in each case calculated at the end of such Program Year in accordance with GAAP (unless
otherwise specified): 
  

					
		 	X =	  	total revenues derived from the Program during such Program Year, calculated as follows: (1) interest charges net of waivers and reversals, plus (2) all fees, including late fees, pay-by- phone fees and interchange
fees, net of waivers and reversals, plus (3) any other revenue recognized for the Program in the ordinary course in connection with the Program; provided that all such revenues included in “X” for purposes of calculating Gain
Sharing Payments shall exclude any revenues or net income derived from any Debt Cancellation Programs and any other Enhancement Products approved by the parties pursuant to Schedule 6.6.
			
		 	Y =	  	total expenses (not including taxes), net of any reimbursements from Retailer, directly incurred or allocated, under the Program during such Program Year, including:

  

	 	(1)	 all operating costs and expenses (including compensation and benefits for employees of Synchrony Financial and

  
 66 

	 	
Bank supporting the Program, Program- related systems expenses, and Program-related hiring and training expenses); plus 

 

	 	(2)	the cost of debt funding for the Program, which shall be calculated, with respect to each Fiscal Month during each of such Program Years, at the applicable fixed and floating interest rates [***]; plus

  

	 	(3)	payments to or for the account of Retailer under the Program including royalty payments (including any payments resulting from royalty rate adjustments) and bounties, but excluding any amount paid from the Marketing
Fund or any amount paid for store grand openings under Section 9 of Schedule 4.1 that are otherwise covered by clause (6) below or the Signing Bonus; plus 

 

	 	(4)	actual net credit losses and fraud losses (provided, that net credit losses shall exclude any sales tax recoveries contemplated by Section 7.21 of the Agreement); plus 

 

	 	(5)	any change (an increase being a positive number and a decrease being a negative number for the purposes of this calculation) to the provision for credit losses with respect to the Program above a base provision of
[***], such provision to be calculated consistent with Bank’s methodology applied across Bank’s Retail Cards business, the calculation of which will be provided to Retailer on an annual basis; plus 

 

	 	(6)	(i) acquisition and portfolio marketing costs, including amounts actually incurred and applicable to the Marketing Fund, but excluding amounts credited to the Marketing Fund (and not yet expended), and (ii) amounts
paid for store grand openings under Section 9 of Schedule 4.1; plus 

  

	 	(7)	reasonable expenses allocated to the Program by Synchrony Financial, Bank and/or by Bank’s Retail Cards business and their parent companies, including administrative expenses of Synchrony Financial, Bank and/or
Bank’s Retail Cards business, as well as the headquarters expenses of such entities, in each case consistent with Bank’s methodology applied across Bank’s Retail Cards business. 

 

					
		 	Z =	  	“Program Year Average Net Investment”.

 The “Program Year Average Net Investment” shall be determined as the net of (1) below less (2)
below, divided by twelve (12) (or, in the case of any early 

  
 67 

 
termination of the Term, the net of (1) below less (2) below for any Program Year, divided by the number of Fiscal Months elapsed in such Program Year through the date of such termination). 

 

	 	(1)	the sum, for all of the Fiscal Months during such Program Year, of the Aggregate Outstanding Indebtedness as of the last day of each Fiscal Month during such Program Year; 

 

	 	(2)	the sum of the Fiscal Month end balances of the Program loss reserve for each Fiscal Month in such Program Year, calculated in accordance with GAAP; 

The “Fiscal Month Average Net Investment” for any Fiscal Month shall be determined as the net of (1) below less
(2) below. 
  

	 	(1)	the sum of the Aggregate Outstanding Indebtedness as of the opening of the first day of such Fiscal Month, plus the Aggregate Outstanding Indebtedness as of the close of the last day of such Fiscal Month,
divided by two; less 

  

	 	(2)	the sum of the Program loss reserve as of the opening of the first day of such Fiscal Month, plus the Program loss reserve as of the close of the last day of such Fiscal Month, divided by two. 

(b) In the event of the expiration or early termination of this Agreement, the Gain Sharing Payment with respect to the number of months since
the previous Gain Sharing Payment shall be paid to Retailer within forty-five (45) days after (x) the end of each Program Year in which such Gain Sharing Payment is due, in the event of expiration of this Agreement, or (y) the date of
termination in the event of an early termination of this Agreement, on a pro-rata basis for the portion of the Program Year preceding the effective date of termination, based on the calculation above. 

(c) If, within one hundred eighty (180) days after the applicable Program Year end, Bank or Retailer discovers that the Gain Sharing
Statement contains any errors that would change the amount of the Gain Sharing Payment, if any, for such Program Year, then Bank and Retailer agree in good faith to recalculate the Gain Sharing Payment correcting any such errors. Bank shall pay to
Retailer any shortfall determined in the Gain Sharing Payment upon such recalculation, and Retailer shall refund to Bank any overpayment of the Gain Sharing Payment upon such recalculation. 

(d) At any time during the Term, the Management Committee may agree to additions to or deletions from the listing of revenue and expense items
in this Schedule 4.1(6). 
 (e) All revenues, costs, and expenses derived from Debt Cancellation Programs and any other Enhancement
Products shall be excluded, and all revenues, costs, and expenses derived from sales tax recoveries pursuant to Section 7.21 of the Agreement shall be included, in X and Y for purposes of calculating the Gain Sharing Payment. 

  
 68 

 (f) In the event Retailer exercises its purchase right pursuant to Schedule 11.5, upon the
consummation of the acquisition of the Program Assets, Bank shall recalculate the last Gain Sharing Payment related to this Agreement to reflect the reversal of the then existing loss reserves in Y(5) above (but only with respect to amounts in
excess of [***]) and shall make any incremental Gain Sharing Payment, if any, to Retailer resulting from such reversal; provided, that if no such acquisition occurs, then no such reversal will occur for purposes of the calculation of
such last Gain Sharing Payment. 
 (g) Bank shall calculate the final gain share calculation in accordance with the requirements of the
Prior Agreement for the period of October 1, 2015 through January 31, 2016, and make such Gain Sharing Payments within forty-five (45) calendar days after January, 31, 2016, but in no event will Bank be required to make such payment
before five (5) Business Days after the date that both parties execute this Agreement. 

  
 69 

 EXHIBIT A 

TO SCHEDULE 4.1(6) 
  

			
	Sample Gain Sharing Statement	  	
		  	[***]
		  	[***]
	Z	  	[***]
		  	
		  	Profit & Loss Statement
	X(1)	  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	
	X(2)	  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	
	X(3)	  	[***]
		  	[***]
		  	
	X	  	[***]
		  	
	Y(2)	  	[***]
		
	Y(3)	  	[***]
		  	[***]
		  	[***]
		  	
	(X-Y(2)-Y(3))	  	[***]
		  	[***]
		  	[***]
		  	[***]
		  	
	Y(4)	  	[***]
		
	X-Y(2)-Y(3)-Y(4)	  	[***]
		  	
	Y(5)	  	[***]    

  
 70 

			
	X-Y(2)-Y(3)-Y(4)-Y(5)	  	[***]
		  	
	Y(6)	  	[***]
	Y(1)+Y(7)	  	[***]
	Y(1)+Y(6)+Y(7)	  	[***]
		  	
	Y	  	[***]
		  	
	X-(Y(1)+Y(2)+Y(3)+Y(4)+Y(5)+Y(6)+Y(7))	  	[***]
		  	
	ROI	  	[***]
		  	
	Gain Sharing Payment	  	[***]

  
 71 

 SCHEDULE 5.1 

Members of Operating Committee 

Bank Operating Committee Members: 
  

	 	•	 	[***] 

  

	 	•	 	[***] 

  

	 	•	 	[***] 

  

	 	•	 	[***]  

  

	 	•	 	[***] 

 Retailer Operating Committee Members: 

 

	 	•	 	Senior Executive Member: Greg Kleffner 

  

	 	•	 	Gary Pierce 

  

	 	•	 	Glori Katz 

  

	 	•	 	Hunt Hawkins 

  

	 	•	 	Donna Mills 

  
 72 

 SCHEDULE 5.3(d) 

Retailer Matters and Bank Matters 

1. Retailer Matters. In accordance with and subject to this Section 1 of this Schedule 5.3(d), Retailer shall
have the ultimate decision making authority with respect to any unapproved matters in respect of the following matters (the “Retailer Matters”): 

(a) content and implementation of the Marketing Plan in Retailer Sales Channels and the Retailer Website; 

(b) the look, feel and marketing message, and changes thereto, of the Credit Cards, Credit Card Applications, Cardholder
Agreements, billing statements, solicitation materials including media, and the Bank Webpage devoted to the Program or any other website space devoted to the Program, other than content or changes that are required or prohibited by Applicable Law or
Reasonable Financial Services Practices; 
 (c) all usage of Retailer Marks or other Retailer intellectual property; 

(d) any maintenance of, and improvements to, any systems of Retailer used in connection with the Program, including any capital
expenditures of Retailer and its affiliates for maintenance of, and improvements to, systems in connection with the Program; 

(e) any other capital expenditures of Retailer or its affiliates; 

(f) the approval, in the sole discretion of Retailer, of any new credit card products which have not been agreed upon prior to
the Effective Date as set forth in Schedule 6.6 to the Agreement, or any products subject to the annual review of the Operating Committee pursuant to Section 1, paragraph (b) of Schedule 6.6 to the Agreement, including new
credit card products, Enhancement Products, or other products and services proposed to be offered by Bank to Cardholders and, in each case, the approval of any compensation payable to Retailer in respect thereof; provided, that the products or
services, the economic terms and compensation arrangements related to such new products or services shall be acceptable to both parties; 

(g) [***]; 

(h) the description of any Retailer products or services; 

(i) the approval of any products or services being marketed to Cardholders; 

(j) management and retention of Retailer personnel; and 

(k) [***]. 

  
 73 

 2. Bank Matters. In accordance with and subject to this Section 2 of this
Schedule 5.3(d), Bank shall have the ultimate decision making authority with respect to any unapproved matters in respect of the following matters (the “Bank Matters”): 

(a) changes to risk management policies for the Program; 

(b) changes to the Cardholder Terms set forth in Schedule 7.3 that are [***]; 

(c) changes to the Operating Procedures that are [***] Majority of Comparable Programs; 

(d) changes to privacy provisions of Section 15.6 of the Agreement or to the Privacy Policy that are required by
Applicable Law or Reasonable Financial Services Practices; 
 (e) capital expenditures for maintenance of, and improvements
to, the Bank systems used in connection with the Program; 
 (f) content of Credit Cards, Credit Card Applications,
Cardholder Agreements, billing statements, solicitation materials including media, and the Bank Webpage or any website space devoted to the Program [***]; 

(g) any materials bearing only Bank Marks or which are solely Bank’s intellectual property; 

(h) any maintenance of, and improvements to, any systems of Bank used in connection with the Program, including any capital
expenditures of Bank and its affiliates for maintenance of, and improvements to, systems in connection with the Program; 

(i) any other capital expenditures of Bank or its affiliates; 

(j) management and retention of Bank personnel; 

(k) [***]; and 

(l) [***]. 

  
 74 

 SCHEDULE 5.4 

Relationship Managers; Other Designated Bank Employees 

1. Bank shall designate an individual with responsibility for the day-to-day management and administration of the Bank/Retailer relationship
and the Program (“Bank Relationship Manager”). The Bank Relationship Manager shall be dedicated solely to the Program and shall be located at Bank’s Charlotte, North Carolina location or such other Bank location as the parties
mutually agree. 
 2. Retailer shall designate an individual with responsibility for the day-to-day management and administration of the
Retailer/Bank relationship and the Program (“Retailer Relationship Manager” and together with Bank Relationship Manager, the “Relationship Managers”). 

3. Each Relationship Manager shall have sufficient authority to facilitate decision-making on behalf
of his or her respective party and shall have sufficient knowledge and experience to effectively and efficiently perform his or her responsibilities. Each Relationship Manager shall make available a sufficient amount of his or her working time,
attention, skill, and efforts necessary to furthering the interests of the Program, it being understood that the Bank Relationship Manager shall be dedicated solely to the Program. 

4. Either party may replace its Relationship Manager at any time upon reasonable notice to the other party, so long as the replacement
Relationship Manager meets the foregoing qualifications. Each party shall consult the other party regarding the appointment of such party’s replacement Relationship Manager. Notwithstanding the foregoing sentence, the appointment of individuals
to serve as a party’s replacement Relationship Manager shall rest solely in the discretion of the respective appointing party. 
 5.
The performance review of Bank’s Relationship Manager shall take into account the overall performance of the Program during the period in which such individual served as Relationship Manager. 

6. Without limiting any other rights expressed in this Section, in considering the appointment and/or replacement of Relationship Managers,
each party shall endeavor to maintain a level of stability and continuity in the personnel managing the Program. 
 7. In addition to the
Bank Relationship Manager, Bank shall designate [***]. 
 8. Bank shall designate [***] to serve as the [***] the Program on a [***] basis.

 9. Bank shall designate [***] to serve as the [***] for the Program, and [***] to serve as the [***] for the Program, it being understood
that [***]. 
 10. Bank shall designate [***] to serve as a [***] database [***] to the Program who shall serve as a resource for Retailer
in providing [***] to Retailer pursuant to Section 7.15 herein, it being understood that the database [***]. 

  
 75 

 SCHEDULE 6.2 

Marketing Fund 
 1.
Bank will establish (by creation of a record maintained by Bank) and administer a marketing fund (“Marketing Fund”) to be used to execute marketing activities pursuant to the Marketing Plan, including [***], as defined below,
or other activities as approved by the Operating Committee. 
 2. During the Term of this Agreement, [***], Bank shall allocate [***]. 

3. Bank will be the exclusive owner of the Marketing Fund, and Retailer acknowledges and agrees that it will have no right, title or interest
in or to the Marketing Fund except to enforce the terms of this Agreement relating to the use of such funds. Any amounts previously allocated to the Marketing Fund but not spent as of the end of any Program Year shall carry forward as part of the
Marketing Fund for the subsequent Program Year(s). Any amounts previously allocated to the Marketing Fund but not used as of the date when this Agreement expires or terminates, may be withdrawn and retained by Bank for its own account without
obligation to account therefor to Retailer. For clarity, any amounts allocated to the “Marketing Fund” established under the Prior Agreement shall be allocated to the Marketing Fund created hereunder. 

4. The out-of-pocket cost and expenses, as set forth in Schedule 6.2(e) to the Agreement, of all marketing promotions provided for in
the Marketing Plan will be reimbursed out of any then available funds in the Marketing Fund as determined by the Operating Committee. Neither party shall have any obligation to pay more for any marketing promotion than the amount allocated at such
time to the Marketing Fund; provided, that the parties may mutually agree to share or otherwise allocate the out-of-pocket costs of implementing any marketing promotion (whether or not set forth in the Marketing Plan) to the extent the
out-of-pocket cost of such marketing promotion is expected to exceed the funds then available in the Marketing Fund. 
 5. In developing and
adopting the Marketing Plan and determining expenditures to be made from the Marketing Fund, the Operating Committee shall plan expenditures taking into account that Retailer’s fiscal year begins in February and that sufficient funds must be
allocated for the holiday shopping season. 

  
 76 

 SCHEDULE 6.2(e) 

Permissible Marketing Fund Expenditures 

The Marketing Fund may be used to pay for expenses related to the following items: 
  

	 	•	 	Store Signage 

  

	 	•	 	Periodic bonuses under the Cardholder Rewards Program 

  

	 	•	 	Tabling events 

  

	 	•	 	Direct mail solicitations (e.g., invitations to apply for Accounts) 

  

	 	•	 	Credit Card application holders 

  

	 	•	 	Collateral material such as brochures and fliers promoting the Program 

  

	 	•	 	Re-activation mailings 

  

	 	•	 	Near loyalty programs (notification to Cardholders that are nearing rewards benefits) 

  

	 	•	 	Lifecycle marketing 

  

	 	•	 	Bank-generated prescreens 

  

	 	•	 	Program marketing and promotion on Retailer Website (excluding costs for placement on Retailer Website) 

  
 77 

 SCHEDULE 6.3 

Additional Bank Marketing Support 

1. Additional Bank Marketing Support. Upon the reasonable request of Retailer from time to time, consistent with the Marketing
Plan, Bank shall perform the following marketing functions at no cost or expense to Retailer: 
 (a) subject to
Applicable Law and any contractual prohibitions, including Bank’s Privacy Policy, to which Bank is subject, Bank shall use (i) Bank’s databases and Bank’s consumer prospect database which, as of the Effective Date, is maintained
by Axciom; (ii) certain data that Bank obtains about Cardholders as set forth on Schedule 7.15; (iii) aggregated summary level data regarding Cardholder purchases at Non-Retailer Channels; (iv) analytic support and tools; and
(v) Bank’s marketing support services, for the purpose of assisting Retailer in its marketing and promotion of Retailer Sales Channels, Retailer goods and services and the Program; 

(b) periodically collaborate with Retailer to identify, research and test new marketing initiatives to promote the Program and
Retailer Sales Channels; 
 (c) provide models and modeling support, which may include Cardholder attrition models, prospect
marketing models and other tools designed to improve Program performance; and 
 (d) facilitate discussion between Retailer
and Bank’s United States consumer finance affiliates for purpose of exploring cross-selling opportunities for Retailer goods and services. 

  
 78 

 SCHEDULE 6.4 

Promotion of Program by Retailer 

1. Responsibility of Retailer to Promote the Program. Without limiting Retailer’s obligations under the Marketing Plan,
Retailer will actively support and promote the Program by, among other things: 
 (a) encouraging the establishment
and use of Accounts as the preferred method of payment for Retailer’s products and services, such as, by way of example, instructing Retailer employees to ask customers if they would like to pay for in-store purchases using their Credit Card;

 (b) utilizing credit advertisements, promotional inserts, statement messages, Internet website promotions, direct mail
promotions in the course of its general retail direct mail campaigns, take one applications as provided and paid for by Bank, and other marketing materials promoting the Program in accordance with the Marketing Plan and as funded by the Marketing
Fund; 
 (c) maintaining a logo advertisement in a prominent position on the home page of the Retailer Website which promotes
the Co-Brand Credit Card and the Private Label Credit Card and contains an embedded, direct link (with no intermediate links) to the Bank Webpage subject to Bank’s prior approval of the usage of such logo advertisement; 

(d) providing incentives and performance goals for Retailer personnel with respect to the Program such as incentive contests at
the Store Location level and SPIFFs, to be funded by Bank; 
 (e) providing a first purchase discount of ten percent
(10%) to new Cardholders who use their Credit Card at Retailer Sales Channels for their first purchase upon opening an Account; 

(f) provide Retailer’s customer lists (including Retailer’s Preferred Customer list) to Bank for purposes of direct
mail solicitations by Bank for Credit Cards; provided that Bank shall conduct a direct mail solicitation to some portion or all of Retailer’s customer lists for Credit Cards and/or other products mutually agreed upon by the parties consistent
with the Marketing Plan only with Retailer’s prior consent; moreover, Bank shall first offer Retailer the opportunity to conduct the mailing itself; and 

(g) fund the redeemed rewards for the Cardholder Rewards Program pursuant to the terms of Schedule 6.5 to the Agreement.

  
 79 

 SCHEDULE 6.5 

Cardholder Rewards Program 

(a) Retailer shall maintain during the Term a Cardholder rewards program and fund rewards redeemed by Cardholders as part of
the rewards program connected to Credit Card and Account use under the Program (the “Cardholder Rewards Program”). During the Term, except for Retailer’s Preferred Customer loyalty program and any successor program thereof,
Retailer shall not promote any other loyalty program that detracts from the participation by Cardholders in the Cardholder Rewards Program. 

(b) Bank shall be responsible for administration, servicing and mailing via statements of reward certificates issued under the
Cardholder Rewards Program, but shall not be required to fund the rewards component of the program, such rewards funding being the sole responsibility of Retailer as set forth in Section 1, paragraph (g) of Schedule 6.4. 

(c) Subject to Schedule 5.3(d), the overall value of the Cardholder Rewards Program to Cardholders shall be at least
[***] percent ([***]%) of [***] on Co-brand Purchases, and [***] percent ([***]%) of [***] on Non-Retailer Purchases, and holders of the Co-Brand Credit Cards and the Private Label Credit Cards will be
entitled to participate in at least [***] in each calendar year (the “Core Value Proposition”); provided that Retailer shall [***]. Retailer agrees to have a minimum cardholder value proposition at all times
during the Term even if the multi-tender loyalty program is eliminated. Rewards “points” awarded pursuant to the Cardholder Rewards Program shall not be redeemable for cash and shall only be redeemable for Retailer merchandise at the then
current purchase price of the merchandise. 
 (d) In connection with the Cardholder Rewards Program, Bank shall provide to
Cardholders who reach a certain rewards points threshold, as determined by the Operating Committee, rewards redeemable at all Retailer Sales Channels in an amount to be determined by the Operating Committee. 

(e) Retailer shall be entitled to retain all breakage from the Cardholder Rewards Program and shall not be required to fund any
unredeemed rewards points; provided, however, that Retailer shall comply with all applicable unclaimed property laws, including laws relating to escheatment. 

(f) All other terms and conditions of the Cardholder Rewards Program and any modifications thereto shall be established by the
Operating Committee. 
 (g) Retailer shall comply with the terms and conditions of the Cardholder Rewards Program as provided
to Cardholders and shall honor all non-expired outstanding rewards certificates issued under the Cardholder Rewards Program offered to Cardholders subject to the terms thereof. 

  
 80 

 (h) All materials related to the Cardholder Rewards Program, including the terms
and conditions thereto, shall comply with Applicable Law and shall clearly state that the Cardholder Rewards Program is a program operated by Retailer and the funding liability under such program shall be the sole responsibility of Retailer. Such
materials shall state that Retailer reserves the right to cancel the Cardholder Rewards Program at any time upon a minimum of ninety (90) days’ notice to Cardholders, and that after such notice period, all unredeemed points shall expire.
Notwithstanding the foregoing, Retailer shall not cancel the Cardholder Rewards Program without prior consent of the Operating Committee during the Term, and in the event of such cancellation, Retailer shall continue to honor outstanding rewards
certificates as contemplated in subsection (g) above. 
 (i) At Retailer’s request, Bank shall timely provide
Retailer with such reports regarding the Cardholder Rewards Program as Retailer shall reasonably request such as certificate issuance reports, loyalty liability and loyalty transaction reports. 

(j) Upon the termination of this Agreement, subject in all respects to Schedule 11.2 and Bank’s election to
implement a Tail Period, Retailer shall have the option to either (i) subject to subsection (h) of this Section, terminate the Cardholder Rewards Program upon ninety (90) days’ notice and cancel all unredeemed points after such
date; (ii) at Retailer’s expense, cause Bank to issue rewards certificates to Cardholders based on criteria determined by Retailer; or (iii) cause Bank to transfer electronically all pertinent information relating to the Cardholder
Rewards Program to another credit card issuer in conjunction with the completion of the purchase of the Program Assets. 

  
 81 

 SCHEDULE 6.6 

Cross-Selling 
 1.
Bank (or its designees) may, consistent with this Agreement, solicit Cardholders for, and offer to Cardholders (or arrange for a third party to solicit and/or provide), by means of solicitations the form of which is mutually agreed by the parties,
the following products (each, an “Enhancement Product” and collectively, “Enhancement Products”): 

(a) credit card debt cancellation or credit insurance products, and credit reporting and fraud alert services (including
identity theft); 
 (b) upon mutual agreement by the parties, deposit products offered by Bank or its affiliates; and 

(c) product inserts for “non-competing products” (which term, for the avoidance of doubt, shall refer to any products
which do not compete with any products or services offered by Retailer through any Retailer Sales Channel), and any other ancillary credit card products or financial services as approved by the Operating Committee. 

2. The Enhancement Products contemplated by this Schedule 6.6 shall be marketed through channels as mutually agreed by the parties. For
the avoidance of doubt, the parties hereby agree that Bank (or its designees) shall have the right to solicit and offer to Cardholders the Enhancement Products specified in Section 1, paragraphs (a) and (b) of this Schedule 6.6
for the duration of the Term. Bank (or its designees) shall have the right to solicit and offer to Cardholders the Enhancement Products specified in Section 1, paragraph (c) of this Schedule 6.6 subject to the approval by the
Operating Committee of such products and subject to the Operating Committee’s annual review and re-approval of such products in each Program Year during the Term. 

3. Bank shall compensate Retailer for such cross-selling activity in accordance with Section 3 of Schedule 4.1 to the Agreement or
as otherwise mutually agreed upon by the parties. 
 4. In addition to any Enhancement Products listed in Section 1 of this Schedule
6.6 Bank (or its designees) may also solicit (or arrange for a third party to solicit and/or provide) such other non-competing financial or non-financial products and services, subject to approval by the Operating Committee (which may be
financed on Accounts or purchased by other means). Retailer will have the right to share in the proceeds of the sale of other goods and services referred to in this Section 4 of this Schedule 6.6 to the extent approved by the Operating
Committee. 
 5. All cross-selling solicitations contemplated by this Schedule 6.6 shall be made in accordance with Bank Privacy
Disclosure as well as Retailer’s privacy policies and contact management policies with regard to Retailer’s Preferred Customers and Retailer employees. 

6. In the event the parties mutually agree that the cross-selling of credit card debt cancellation or credit insurance products contemplated
in Section 1 of this Schedule 6.6 has, or could reasonably be expected to have, a material adverse effect on the Program or Retailer’s business, the parties shall work in good faith to mitigate such material adverse effect. 

  
 82 

 SCHEDULE 7.2 

Ownership and Use of Cardholder Information 

1. Bank is the sole and exclusive owner of all information that is obtained by or on behalf of Bank in connection with processing a Credit
Card Application or making a pre-screened offer for an Account, extending credit on or servicing or collecting on an Account, or otherwise operating the Program, including (a) information provided by an applicant, a Cardholder or a third party
in connection with an Account or Credit Card Application, and (b) lists of Cardholders and applicants generated by the Program (including names, addresses, telephone numbers, e-mail addresses, dates of birth, social security and similar
numbers, and account and similar access numbers) (the “Cardholder Information”); provided that Bank shall not have any further rights in or to any Cardholder Information after the closing of the purchase of the Program Assets
by Retailer or its Nominated Purchaser in accordance with Section 11.2 and Schedule 11.2. Notwithstanding the foregoing, Bank may retain (i) Cardholder Information as required to comply with Applicable Law and (ii) Cardholder
Information used in Bank’s models and business analysis to the extent that any such Cardholder Information is aggregated, anonymized and cannot be reasonably anticipated to provide Bank or any third party with access to any insights into the
performance or attributes of the Retailer credit card portfolio or to Retailer’s business. For the avoidance of doubt, except as may relate to the Program (including the exercise of Bank’s rights under this Agreement to sell or liquidate
the Accounts), no information shall be provided by Bank to a third party which identifies Retailer or can be reasonably traced to Retailer. 

2. During the Term, Bank may capture information regarding: (i) specific purchases by individual Cardholders at Retailer Sales Channels
(“Store Transaction Information”); and/or (ii) information regarding general buying habits by Cardholders at Non-Retailer Locations (“Outside Buying Information”). Retailer and Bank shall each own Store
Transaction Information to the extent that Retailer and Bank receive such information in connection with Credit Card transactions, and Bank shall provide Store Transaction Information to Retailer (to the extent Bank maintains such information)
within a reasonable time after Retailer’s request therefor. Bank shall also work with Retailer to provide Retailer with the benefit of the Outside Buying Information, either by providing such information to Retailer, or by conducting or
collaborating with Retailer on mailings to targeted Cardholder segments (for instance, making a luggage offer to a list of Cardholders who may be frequent travelers). All activities described in this paragraph shall be subject to Applicable Law and
the Privacy Policy. Notwithstanding the foregoing, Bank shall only use such information as specified in Section 4 of this Schedule 7.2 and Retailer shall only use such information as set forth in Section 6 of this Schedule
7.2. For purposes of this Agreement, Store Transaction Information and Outside Buying Information shall collectively be referred to as “Transaction Information.” 

3. The Privacy Policy applicable to the Cardholder Information and Transaction Information is attached as Schedule 7.2(b) hereto.
Subject to Section 2 of Schedule 5.3(d), any modifications to the Privacy Policy shall be approved by the Operating Committee; provided that the Privacy Policy shall comply with Applicable Law at all times; and provided
further, that the Privacy Policy shall provide Retailer and its affiliates with the maximum availability and use of Cardholder Information and Transaction Information, but only to the extent that (a) disclosure of

  
 83 

 
such Cardholder Information and Transaction Information would not cause Bank to become a “consumer reporting agency” for purposes of the federal Fair Credit Reporting Act, (b) Bank
shall not be required to implement any opt-in processes, (c) Bank shall not be required to disclose to Retailer any social security number information; and (d) Bank shall not be required to provide Outside Buying Information that is
identifiable to particular merchants. 
 4. During the Term, Bank shall not use the Cardholder Information or Transaction Information, or
permit Cardholder Information or Transaction Information to be used by others besides Retailer to whom Bank provides such information. except as provided in this Schedule 7.2. Bank may use such information in compliance with Applicable Law
and the Privacy Policy solely (i) for purposes of soliciting or marketing (as provided in this Agreement) or servicing customers listed in the Cardholder Information for Credit Cards, Debt Cancellation Programs, Enhancement Products, and any
other products and services approved by the Operating Committee, (ii) as otherwise necessary to carry out its obligations or exercise its rights hereunder; (iii) with respect to the administration and liquidation (including any conversion
or sale) of Accounts after the expiration or earlier termination of the Term; (iv) as required by Applicable Law or Bank’s internal risk management purposes or (v) in Bank’s models and business analysis for the benefit of the
Program or to the extent that any such Cardholder Information or Transaction Information is aggregated, anonymized and cannot be reasonably anticipated to provide Bank or any third party with access to any insights into the performance or attributes
of the Retailer credit card portfolio or to Retailer’s business. Bank has no rights to use the Cardholder Information or Transaction Information for marketing purposes except as expressly provided herein; provided, however, that
notwithstanding anything in this Schedule 7.2, Bank shall be authorized to use models and business analysis that satisfy the requirements of clause (v) above in connection with the Program as permitted by this Agreement or as long as
such use does not involve personally identifiable information obtained by Bank in connection with the Program. 
 5. Bank shall not
disclose, or permit to be disclosed, the Cardholder Information or Transaction Information, except as provided in this Schedule 7.2. Bank shall not, directly or indirectly, sell or otherwise transfer any right in or to the Cardholder
Information or Transaction Information (to the extent Bank has such right) other than to Retailer or one of its affiliates. Bank may disclose the Cardholder Information or Transaction Information in compliance with Applicable Law and the Privacy
Policy solely: 
 (a) to its authorized subcontractors in connection with a permitted use of such information under this
Schedule 7.2, provided that each such authorized subcontractor agrees in a written agreement reasonably satisfactory to Bank to maintain all such information as strictly confidential and not to use or disclose such information to any Person
other than Bank or Retailer, except as required by Applicable Law or Governmental Authority (after giving Bank, who shall in turn promptly give to Retailer, prior notice and an opportunity to defend against such disclosure); provided,
further, that each such authorized subcontractor maintains, and agrees in writing to maintain, an information security program that is designed to meet all requirements of Applicable Law and the PCI DSS with respect to the Private Label
Program (as if the Private Label Cards were Co-Brand Cards) and the Co-Brand Program , including, at a minimum, maintenance of an information security program that is designed to: (A) ensure the

  
 84 

 
security and confidentiality of such information; (B) protect against any anticipated threats or hazards to the security or integrity of such information; (C) protect against
unauthorized access to or use of such information; and (D) ensure the proper disposal of such information; and provided, further, that each such authorized subcontractor of Bank agrees to promptly notify Bank, who shall in turn promptly notify
Retailer, of any unauthorized disclosure, use, or disposal of, or access to, such information and to cooperate with Bank and Retailer in any investigation thereof and remedial action with respect thereto; 

(b) to its affiliates, and its and such affiliates’ employees, attorneys, accountants and advisors with a need to know
such information in connection with a permitted use of such information under this Schedule 7.2; provided that (A) any such Person is bound by terms substantially similar to this Schedule 7.2 as a condition of employment or of
access to such information or by professional obligations imposing comparable terms; and (B) Bank shall be responsible for the compliance by each such Person with the terms of this Schedule 7.2; 

(c) to any Governmental Authority with authority over Bank in connection with (i) an examination of Bank or other
communication with a Governmental Authority with supervisory authority over Bank that is not covered by clause (ii), or (ii) an investigation by a Governmental Authority into compliance with Applicable Law, including pursuant to compulsory
legal process; provided that Bank seeks the full protection of confidential treatment for any disclosed Cardholder Information or Transaction Information to the extent available under Applicable Law governing such disclosure, and with respect to
clause (ii) or any other matter in which the Program is the primary focus of the discussion and there is a reasonable possibility that the Governmental Authority will take an action adverse to Retailer, to the extent permitted by Applicable
Law, Bank (A) provides at least ten (10) Business Days’ prior notice of such proposed disclosure to Retailer if reasonably possible under the circumstances, and (B) seeks to redact such information to the extent reasonably
necessary to protect the interests of Retailer; or 
 (d) to the extent permitted in the risk management policies for the
Program and Operating Procedures, to any consumer reporting agency in accordance with the federal Fair Credit Reporting Act. 
 Bank shall remain
responsible for any violations of the confidentiality terms of this Agreement by any third party to which Cardholder Information or Transaction Information has been disclosed by Bank (other than at the express request of Retailer, including requests
that require ongoing, periodic transfers by Bank on Retailer’s behalf). 
 6. Nothing herein shall limit Retailer’s rights in or
use of any customer list of Retailer to the extent the information on the customer list therein is generated by Retailer independently of the Program. Notwithstanding Bank’s ownership interest in the Cardholder Information and subject to the
requirements of Applicable Law and Bank’s Privacy Policy, Retailer may: (i) use the contact information included in the Cardholder Information during the Term to promote the Program and to promote the products and services sold by Retailer
under 

  
 85 

 
the Program; (ii) use (or through a third party service provider use) the Outside Buying Information (to the extent provided by Bank under the terms of this Agreement) for its internal
analysis and marketing purposes and (iii) use Store Transaction Information for any purpose during the Term and, except as expressly provided in this Agreement, following expiration or termination of this Agreement whether or not Retailer
exercises its Purchase Option; provided that Retailer shall not sell any Cardholder Information obtained from Bank to any third party or permit any such Cardholder Information to be used in violation of Applicable Law, the Privacy Policy or
Retailer’s privacy policies, or to market financial goods or services of the type offered by Bank. For the avoidance of doubt, this Agreement does not govern Retailer’s use of information captured by Retailer independently of the Program
(including, for example, through the Cardholder Rewards Program) even if such information is the same or similar to Cardholder Information. 

7. Except as expressly provided in this Agreement, the limitations on Bank’s use of Cardholder Information shall cease to apply after the
expiration or termination of this Agreement to the extent that Retailer or its Nominated Purchaser do not purchase the Accounts. 
 8. The
following shall apply to each third party that holds Cardholder Information on behalf of Retailer or is provided access to Cardholder Information by or through Retailer (a “Third Party”): (a) Retailer will use reasonable
efforts to train the Third Party regarding the data security requirements of this Agreement that apply to Retailer under this Agreement with respect to Cardholder Information; (b) Retailer shall use reasonable efforts to provide Bank access to
the Third Party to conduct reasonable data security audits; and (c) Retailer shall cease to allow the Third Party to hold or have access to Cardholder Information if Bank reasonably determines, after consultation with Retailer, that the Third
Party is unable or unwilling to comply with the data security requirements that apply to Retailer under this Agreement with respect to such Cardholder Information. 

  
 86 

 SCHEDULE 7.2(b) 

Privacy Policy 
  

 
 IMPORTANT NOTICE 

SYNCHRONY BANK 
 STEIN
MART PLATINUM MASTERCARD® 
 CONSUMER CREDIT CARD PROGRAM 

PRIVACY POLICY 
 Rev. 3/16

  

			
	 FACTS
	  	 WHAT DOES SYNCHRONY BANK DO WITH YOUR PERSONAL
INFORMATION?

	Why?	  	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your
personal information. Please read this notice carefully to understand what we do.
		
	What?	  	 The types of personal information we collect and share depend on the product or service you have with us. This information can
include:
  
 •    Social
Security number and income
  

•    Account balances and payment history

 
 •    Credit history and
credit scores

		
	How?	  	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the
reasons Synchrony Bank chooses to share; and whether you can limit this sharing.

  

					
	 Reasons we can share your personal information
	  	 Does Synchrony

Bank share?
	  	 Can you limit
this
sharing?

			
	 For our everyday business purposes –

such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus
	  	Yes	  	No
			
	 For our marketing purposes –
 to
offer our products and services to you
	  	Yes	  	No
			
	For joint marketing with other financial companies	  	Yes	  	No
			
	 For our affiliates’ everyday business purposes –

information about your transactions and experiences
	  	Yes	  	No
			
	 For our affiliates’ everyday business purposes –

information about your creditworthiness
	  	Yes	  	Yes
			
	For our affiliates to market to you	  	Yes	  	Yes
			
	For nonaffiliates to market to you	  	Yes	  	Yes*

  
 87 

			
	To limit our sharing	  	 •    Call 1-866-864-2151 – our menu will prompt you through
your choice(s)
  
 Please note:

 
 If you are a new customer, we can begin sharing your information 30 days from the date we
sent this notice. When you are no longer our customer, we continue to share your information as described in this notice.
 However, you can contact us at
any time to limit our sharing.

		
	Questions?	  	Call 1-866-864-2149

  

			
	Page 2	  	
	
	What we do
		
	How does Synchrony Bank protect my personal information?	  	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
		
	How does Synchrony Bank collect my personal information?	  	 We collect your personal information, for example, when you
  

•    open an account or give us your contact information

 
 •    provide account
information or pay your bills
  

•    use your credit card

 
 We also collect your personal information from others, such as credit bureaus, affiliates,
or other companies.

		
	Why can’t I limit all sharing?	  	 Federal law gives you the right to limit only
  

•    sharing for affiliates’ everyday business purposes—information about your
creditworthiness
  

•    affiliates from using your information to market to you

 
 •    sharing for
nonaffiliates to market to you
  
 State laws and individual companies may give you
additional rights to limit sharing. See below for more on your rights under state law.

		
	What happens when I limit sharing for an account I hold jointly with someone else?	  	Your choices will apply to everyone on your account.
		
	Definitions	  	
		
	Affiliates	  	 Companies related by common ownership or control. They can be financial and nonfinancial companies.

 
 •    Our affiliates
include Synchrony Financial and its subsidiaries, including Retail Finance Credit Services, LLC and CareCredit LLC.

		
	Nonaffiliates	  	 Companies not related by common ownership or control. They can be financial and nonfinancial companies.

 
 •    Nonaffiliates we
share with can include the retailer named on your account and direct marketing companies.

		
	Joint marketing	  	A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

  
 88 

			
		  	 •    Our joint marketing partners include insurance
companies.

	
	Other important information
	
	We follow state law if state law provides you with additional privacy protections. For instance, if (and while) your billing address is in Vermont, we will treat your account as if you had exercised the opt-out choice
described above and you do not need to contact us to opt out. If you move from Vermont and you wish to restrict us from sharing information about you as provided in this notice, you must then contact us to exercise your opt-out choice.

  

	*	Please keep in mind that, as permitted by federal law, if you opt out of sharing with nonaffiliates, your opt-out will not prohibit us from sharing your information with Stein Mart, Inc. (and its affiliates) in
connection with maintaining and servicing the Stein Mart Platinum MasterCard® program, including marketing of such programs. 

The above notice applies only to consumer Stein Mart Platinum MasterCard® Accounts with Synchrony
Bank and does not apply to any other accounts you have with us. It replaces our previous privacy notice disclosures to you. We can change our privacy policy at any time and will let you know if we do if/as required by applicable law. 

For helpful information about identity theft, visit the Federal Trade Commission’s (FTC) consumer website at https://www.identitytheft.gov/. 

  
 89 

 SCHEDULE 7.3 

Initial Cardholder Terms 
  

					
	 Component
	  	 Co-Brand
	  	 Private Label

			
	Standard APR	  	P+ 22.74%	  	P+ 22.74%
			
	Delinquent APR (with trigger to cause and cure)	  	N/A	  	N/A
	Compounding Methodology	  	Daily periodic rate applied to daily balance	  	Daily periodic rate applied to daily balance
			
	Billing Methodology	  	The purchase balance subject to a finance charge is daily balance of the Account (including new purchases)	  	The purchase balance subject to a finance charge is daily balance of the Account (including new purchases)
			
	Minimum Payment	  	 Sum of the following:
  

The greater of either:
  

a)   $27, or $37 if at least the total minimum payment not made by the due date in any of the prior 6
billing periods,
  
 b)   The sum
of (i) any past due amounts, (ii) 1% of the new balance (iii) any late payment fees charged to the Account in the billing period and (iv) all finance charges charged to the Account in the billing period.
	  	 Sum of the following:
  

The greater of either:
  

a)   $27, or $37 if at least the total minimum payment not made by the due date in any of the prior 6
billing periods,
  
 b)   The sum
of (i) any past due amounts, (ii) 1% of the new balance (iii) any late payment fees charged to the Account in the billing period and (iv) all finance charges charged to the Account in the billing period.

			
	Minimum Finance Charge	  	$2.00	  	$2.00
			
	Due Date Calculation	  	Bill date plus 23 days	  	Bill date plus 23 days
			
	Cash APR	  	P + 25.74%	  	N/A
			
	Cash APR Cap	  	None	  	N/A
			
	Late Fee Amount	  	Up to $37**	  	Up to $37**
			
	Late Fee Grace Period	  	None	  	None
			
	NSF Fee	  	None	  	None

  
 90 

					
	 Component
	  	 Co-Brand
	  	 Private Label

			
	Overlimit Fee	  	None	  	None
			
	Cash Access Fee (ATM)	  	$10 or 4% of amount of transaction, whichever is each greater	  	N/A
			
	Convenience Check Fee	  	N/A	  	N/A
			
	Convenience Check Fee Cap	  	N/A	  	N/A
			
	Balance Transfer Fee	  	$10 or 4% of amount of each transfer, whichever is greater	  	N/A
			
	Balance Transfer Fee Cap	  	None	  	N/A
			
	Live Customer Service Pay by Phone Fee	  	$15	  	$15
			
	International Transaction Fee	  	3% of each transaction	  	N/A

  

	**	Changes to the Late Fee as a result of changes in the safe harbor amounts in Regulation Z shall not require the consent of Retailer. 

  
 91 

 SCHEDULE 7.4(c) 

Approval Rates and Credit Lines 

1. [Intentionally Omitted] 
 2.
Following the Effective Date: 
 (a) Notwithstanding anything in Section 7.4(b) of the Agreement to the contrary, and subject to the
requirements of Applicable Law or changes made to the Majority of Comparable Programs, the following targets shall apply to the Program commencing from the first full month following the Effective Date: (i) the Minimum Approval Rate Targets
determined in accordance with Schedule 7.4(c)(1), and (ii) the minimum initial credit line amounts for the Program as set forth on Schedule 7.4(c)(1) hereto (the “Minimum Credit Line Targets” and together with the
Minimum Approval Rate Targets, the “Minimum Credit Targets”). 
 (b) If, at the end of any calendar month during the Term,
Bank fails to meet the Minimum Approval Rate Target for the applicable Measurement Period [***], Bank shall have the opportunity to implement a cure in the following month (the “Cure Month”) without penalty. If at the end of
any calendar month during the [***] immediately following a Cure Month, Bank fails to meet the Minimum Approval Rate Target for the applicable Measurement Period [***], Bank shall make a penalty payment in the amount of [***],
such payment to be made on an alternating basis into the Marketing Fund or directly to Retailer (first payment shall be made into the Marketing Fund). 

(c) If, at the end of any calendar month during the Term, Bank fails to meet the Minimum Approval Rate Target for the applicable Measurement
Period [***], Bank shall have the opportunity to cure such failure in the month following such period of non-compliance. If, at the end of any calendar month during the [***] thereafter, Bank fails to meet the Minimum Approval Rate for the
applicable Measurement Period [***], Retailer shall have the right to terminate this Agreement. 
 (d) In the event Bank fails to meet the
Minimum Credit Line Targets for any Account (subject to Schedule 7.4(c)(1)), upon notice from Retailer to Bank of such failure, Bank shall increase the minimum credit line of the applicable Account to the applicable amount. 

(e) Notwithstanding the foregoing, the targeted Minimum Credit Targets and penalty payments under this Schedule 7.4(c) shall only apply
if Retailer has fully performed its responsibilities under the Program and there do not exist any facts that would give rise to Bank’s right to terminate this Agreement pursuant to Article 10. 

(f) Notwithstanding anything herein to the contrary, the remedies provided by this Schedule 7.4(c) shall be Retailer’s sole and
exclusive remedy for Bank’s failure to meet the Minimum Credit Targets contemplated in Schedule 7.4(c)(1). 

  
 92 

 (a) Bank’s compliance with the Minimum Credit Line Targets shall be evidenced by a
certificate as to such compliance delivered by Bank to Retailer pursuant to Schedule 7.15. 

  
 93 

 SCHEDULE 7.4(c)(1) 

Minimum Approval Rate and Minimum Initial Credit Lines 
  

	1.	Minimum Approval Rate: (Note 1) 

  

	 	(a)	[***] 

  

	 	(i)	[***] 

  

	 	(ii)	[***] 

  

	 	(iii)	[***] 

  

	 	(b)	[***] 

  

	 	(c)	[***] 

  

	 	(d)	[***] 

 [***] 
  

	 	(i)	[***] 

  

	 	(ii)	[***] 

  

	 	(iii)	[***] 

  

	 	(iv)	[***] 

  

	 	(v)	[***] 

  

	 	(vi)	[***] 

 [***] 

[***] 
 [***] 

 

	2.	Minimum Initial Credit Lines: (Note 2 and Note 3) 

  

	[***]	

  

	 	(a)	[***] 

  

	 	(b)	[***] 

 [***] 

[***] 

  
 94 

 SCHEDULE 7.10 

Bank Marks 
 SYNCHRONY - U.S.
Application No. 86/180,679 
 S and design - U.S. Application No. 86/216,819 

SYNCHRONY FINANCIAL and design - U.S. Application No. 86/240,164 

SYNCHRONY BANK and design - U.S. Application No. 86/240,216 

ENGAGE WITH US - U.S. Application No. 86/276,645 

QUICKSCREEN - U.S. 2887459 
 Retailer Marks

 

 

  
 95 

 SCHEDULE 7.15 

Periodic Program Reports 
 Bank
will prepare and send to Retailer mutually agreed upon Program-level management reports tracking the performance of the Program on store, district, regional, divisional and departmental levels as outlined below. 

All reports will be accessible through paper or e-mail or Bank could post reports onto a client site if so required. The reports shall include and/or track:

  

									
	 Report Name
	  	 Frequency
	  	 Objective
	  	 Key Metrics
	  	 Format of Report

					
	Applications Report by Region	  	Daily	  	Measure and Rank Performance by Store, District and Region against Goal. List of Top 10 Stores and Closed Stores	  	Apps	  	Excel - worksheets for each region
					
	Daily Apps Summary Report	  	Daily	  	Measure Application performance by Channel by Day, Month, year and PTD vs. Goal	  	Apps, Approval Rate, Apps per Store/Day	  	Excel
					
	Daily Sales Report	  	Daily	  	Measure Total sales by day for in-store and world	  	 In-store Sales,
 World Sales. In/Out
Mix
	  	Excel
					
	MTD Apps Report	  	Weekly (Monday)	  	Ranks Apps by Store, Region and District vs. Goal	  	Apps	  	Excel
					
	Baseline Reporting	  	Weekly (Monday)	  	Measure the App performance of field sales manager markets to Goal	  	Apps	  	Excel
					
	Rewards Report	  	Monthly (5th of Monday)	  	Track # of Issued Certificates by Month	  	Certificates Issued	  	Excel
					
	Reward Point Forfeiture	  	Monthly (5th of Monday)	  	Track the # of accts that are 18 months inactive and forfeited reward points	  	Reward Points	  	Excel

  
 96 

									
	 Report Name
	  	 Frequency
	  	 Objective
	  	 Key Metrics
	  	 Format of Report

					
	Month End Summary Report	  	Monthly (First Monday)	  	Track the top performing stores by District, Region and Store against goal	  	Apps vs. Goal	  	Excel, PPT
					
	Executive Summary	  	Monthly (Second Monday)	  	Measure Monthly Performance across key metrics: Apps, new accts, sales, transactions, closures, activation	  	Apps, sales, new accts, activation	  	Excel
					
	Financial Report	  	Monthly (First Monday)	  	In and Out Mix	  	Sales and New Accts	  	Excel
					
	Double Points Event Tracking	  	Monthly (First Monday)	  	Track Sales by Transaction Date to align with key event dates	  	Sales	  	Excel
					
	MC Category & Retailer Report	  	Quarterly (First Monday)	  	Track SMMC World Spend for the Top 20 Retailers	  	Sales	  	Excel
					
	SPIF Reporting	  	Monthly	  	Track SPIF Activity by Store	  	Apps	  	Excel, PPT
					
	Ad Hoc	  	Weekly/ Monthly	  	Pulsing, SPIF, Contest Reporting, Test Stores	  	Apps	  	Excel, PPT
					
	Applicant Distribution	  	Monthly	  	Track applicant distribution for in-store and online channels for the past 24 months	  	Apps, Approval Rate	  	Excel
					
	FICO Score	  	Monthly	  	Track new Accounts by FICO score band for in-store and online channels for the past 24 months	  	Apps, Approval Rate	  	Excel
					
	Gain Share Forecast	  	Quarterly	  	Track estimated Gain Sharing Payments for the current Program Year	  	Gain Share	  	Excel

  
 97 

 SCHEDULE 7.16 

Service Level Standards 
  

							
	 SLA
	  	 SLA Target
	  	 Description of SLA
	  	 Measurement

	 Operations
	  		  		  	
	Telephone Average Speed of Answer (Cardholder)	  	      [***]      	  	      [***]      	  	      [***]      
	Telephone Average Speed of Answer (Stores)	  	[***]	  	[***]	  	[***]
	Telephone Abandon Rate	  	[***]	  	[***]	  	[***]
	Take One / Mailed Application Processing	  	[***]	  	[***]	  	[***]
	Plastics Issuance	  	[***]	  	[***]	  	[***]
	Payment Processing	  	[***]	  	[***]	  	[***]
	Payment Processing Accuracy	  	[***]	  	[***]	  	[***]
	Statement Production	  	[***]	  	[***]	  	[***]
	Statement Accuracy	  	[***]	  	[***]	  	[***]
	POS Application Processing	  	[***]	  	[***]	  	[***]
	Authorization System Uptime	  	[***]	  	[***]	  	[***]
	Call Blockage	  	[***]	  	[***]	  	[***]
	E-mail Requests	  	[***]	  	[***]	  	[***]
	Transaction Processing	  	[***]	  	[***]	  	[***]
	Authorization Referrals	  	[***]	  	[***]	  	[***]

 Bank shall report to Retailer monthly, in a mutually agreed upon format, Bank’s performance under each of the Service
Level Standards set forth in this Schedule 7.16. If Bank fails to meet any Service Level Standard, Bank shall immediately report to Retailer the reasons for such failure and promptly take corrective action to prevent recurrence of such
failure. Such shall include, but not be limited to: (a) within fifteen (15) days of such report, proposing a remediation plan for taking such action as Bank deems necessary to correct and prevent recurrence of such failure(s); and
(b) subject to agreement by Retailer, which agreement shall not be unreasonably withheld, implementing the remediation plan as soon as practicable. 

If after implementing the remediation plan contemplated above, Bank fails to meet the same Service Level Standard in any [***] during the
following [***] period following implementation of such remediation plan, or if Bank fails to meet any [***] Service Level Standards within any  

  
 98 

 
[***] period during the Term, Bank shall be subject to the following penalties set forth below for Service Level Standard failures. Bank shall pay [***] of such penalty to Retailer and [***] of
such penalty to the Marketing Fund. 
  

							
	 	  	Difference in Target Service Level Standards from Actual Service
Level Standards achieved in basis
points
		  	      [***]      	  	      [***]      	  	      [***]      
	Service Level Standard	  	      [***]      	  	      [***]      	  	      [***]      

 Retailer shall have the right to terminate the Agreement, if Bank fails to meet any combination of Service Level Standards
[***] in any rolling [***] period by more than [***] and such failures have a materially adverse effect on the Program. In order to be effective, the notice of termination must be delivered within: (i) [***] of the
end of the month in which Bank fails to meet the [***] Service Level Standard; or (ii) [***] after Retailer learns of such [***] consecutive month failure, whichever is later. This Agreement will terminate [***]
after Retailer’s delivery of such notice of termination. Notwithstanding anything to the contrary herein, the penalties and remedies set forth in this Schedule 7.16 shall be Retailer’s sole and exclusive remedy for Bank’s
failure to meet the Service Level Standards contemplated hereunder. For avoidance of doubt, the limitation on remedies set forth in this Schedule 7.16 shall not apply to Bank’s obligation to indemnify Retailer for any Third-Party Claims
to the extent set forth in Section 13.2. 

  
 99 

 SCHEDULE 7.18 

Interchange Regulation 

If at any time during the Term there occurs a decline of [***] or more in the interchange rate received by Bank from the Association
with respect to Non-Retailer Purchases, as benchmarked against a weighted average interchange rate of [***], then Bank and Retailer shall engage in a good-faith renegotiation of the terms of this Agreement that Bank reasonably believes are
necessary to mitigate such material adverse effect; provided, that if the parties have not agreed to such modified terms within thirty (30) days after the initiation of such renegotiation, Bank reserves the right to (a) stop
originating any new Co-Brand Accounts, and (b) at Bank’s option, either maintain the then-existing Co-Brand Accounts or convert such Co- Brand Accounts to Private Label Accounts (it being understood that if Bank elects to stop originating
Co-Brand Accounts hereunder and to convert such Co-Brand Accounts to Private Label Accounts, the provisions of this Agreement relating solely to the Co-Brand Program shall cease to apply). If Bank elects to exercise its rights under either of
clauses (a) or (b) of this Schedule 7.18, Bank shall notify Retailer in advance of such election. 

  
 100 

 SCHEDULE 7.19 

Store Closure 
 If
at any time, Retailer sells or closes a Store Location and (i) there is not another Store Location within [***] of the sold or closed Store Location and (ii) Retailer has not delivered to Bank a written certification (“New
Store Certification”) that a new Store Location within [***] miles of the sold or closed Store Location will be opened within [***] of the sale or closure of such Store Location (“New Store Opening Time
Period”), then with respect of any Account for which at least [***][***]%) of the Co-Brand Purchases or PLCC Purchases, as the case may be, were made at the closed Store Location in the [***] billing cycles preceding the
earlier of the date on which the Store Location was closed or sold or the date upon which notice thereof is given by Retailer to Bank, Bank will have the right (but not the obligation) to liquidate any or all such Accounts in a manner consistent
with Bank’s post-termination Account liquidation rights set forth in Schedule 11.4; provided, however, that the foregoing shall not apply to (x) any Account used to finance a purchase at any Retailer Sales Channel or
the Retailer Website (to the extent Bank can reasonably determine) during the [***] period subsequent to the closure of the relevant Store Location and (y) to the extent Bank can reasonably determine, any Account on which [***]
([***]%) or more of the Co-Brand Purchases or PLCC Purchases, as the case may be, were made at the Retailer Website in the [***] billing cycles preceding the earlier of the date on which the Store Location was closed or sold or the
date upon which notice thereof is given by Retailer to Bank. If with respect to any such Account there is not another Store Location within [***] miles of the sold or closed Store Location, then Bank may request that Retailer waive the
[***] period contemplated in the preceding sentence, which Retailer may waive in its reasonable discretion. Retailer shall provide to Bank (a) at least [***] prior notice of any closure or sale of any Store Location after the date
hereof, which notice shall include the location of the nearest Store Location and, if applicable, the New Store Certification, and (b) promptly following the end of each fiscal quarter, a report setting forth the number of Store Locations that
were closed or sold during the quarter and not located within [***] of another Store Location. For the avoidance of doubt, if a new Store Location is not opened within the New Store Opening Time Period, Bank’s rights under this
Schedule 7.19 shall apply. 

  
 101 

 SCHEDULE 7.22 

Additional [***] 
  

	 	•	 	[***] 

  

	 	•	 	[***] 

  

	 	•	 	[***] 

  
 102 

 SCHEDULE 8.1(e) 

Presentment Warranties 

With respect to each submission of Charge Transaction Data to Bank, Retailer represents and warrants as follows with respect to such Charge
Transaction Data and each underlying transaction: 
 (a) All purchases included in the Charge Transaction Data constitute bona fide,
arms-length sales by Retailer of the goods or services described therein in the ordinary course of Retailer’s business (and do not include any purchases conducted in connection with any GOB Sale that is not an Authorized Liquidation Sale);
Retailer has delivered all the products and fully performed all the services covered by the Charge Transaction Data; 
 (b) The charges
included in the Charge Transaction Data did not involve a cash advance or goods or services not listed in the applicable invoice, purchase order, purchase confirmation or receipt; only goods and services sold by Retailer are included in the Charge
Transaction Data; the charges represent the entire purchase price of the goods and services identified in the Charge Transaction Data other than a bona fide down payment, deposit, or similar payment paid by cash or check, or financed by any means
other than the Account; 
 (c) No other credit provider has financed a portion of any sales transaction included in the Charge Transaction
Data other than a bona fide down payment, deposit, or similar payment; 
 (d) For each charge included in the Charge Transaction Data,
Retailer has (i) with respect to such charge (other than any charge pertaining to a purchase transacted through the internet (“Internet Purchases”)), prior to the submission of such Charge Transaction Data to Bank, obtained a
signed invoice or receipt executed by the Cardholder or the authorized user, or (ii) to the extent such charge pertains to an Internet Purchase, (x) obtained proof of the applicable purchase (in the form of a receipt, an order form,
internet “screen shot” or such other proof reasonably acceptable to Bank) and (y) obtained or will obtain, no later than twenty (20) days after the submission of such Charge Transaction Data to Bank, proof of delivery;
provided, however, that nothing in this subparagraph (e) shall limit Bank’s right to charge back to Retailer any Indebtedness pursuant to any applicable provision of Section 8.1; 

(e) All purchases included in the Charge Transaction Data occurred no earlier than five (5) days prior to the submission of such Charge
Transaction Data; and all transactions included in the Charge Transaction Data were conducted in accordance with the Operating Procedures, this Agreement and all Applicable Law; and 

(f) Each invoice or receipt included in the Charge Transaction Data is not invalid, or in any material respect illegible, inaccurate or
incomplete and has not been materially altered since being signed or submitted by the Cardholder; the masked or truncated Account number has been accurately printed on each charge slip, purchase order or purchase confirmation and has been included
in each transmission of Charge Transaction Data; subject only to any “floor limit” set forth in the Operating Procedures, which is applicable in any case in which Bank’s authorization system is unavailable, Retailer has obtained a
valid authorization from Bank for each purchase (unless otherwise waived by Bank). 

  
 103 

 SCHEDULE 9.1 

Exclusivity 

(a) Definitions. For purposes of this Schedule, the following terms shall have the meanings indicated below: 

“Generally Accepted” means accepted as a means [***]. 

“Credit Product” means a charge or credit card or program, an on-line, digital wallet or mobile credit or charge account, or
other credit or charge device regardless of form and whether accessed online or offline or where the relevant account information is stored. For avoidance of doubt, this term does not include debit products with an incidental credit feature. 

“Origination Activities” means: [***]. 

“Permitted Promotions” means [***]. 

(b) Issuance and Origination of Credit Products. Except as provided in this Schedule 9.1, Bank shall be the exclusive
issuer of co-brand credit cards and private label credit cards bearing Retailer’s Marks during the Term within the United States. Retailer shall not, during the Term engage in any Origination Activities, other than in connection with Credit
Products offered through any program offered by Bank or an affiliate of Bank.  
 (c) Permitted Credit Products.
[***] (collectively, “Permitted Credit Products”): (i) [***]; (ii) [***]; (iii) a traditional “lay-away” or “flex pay” plan operated by Retailer whether or not bearing Retailer
Marks; and (iv) [***]. For the avoidance of doubt, this subsection (c) does not apply to the acceptance of any forms of payment as set forth in subsection (e) below. 

(d) Permitted Promotions. Nothing in this Schedule 9.1 shall limit or restrict the ability of Retailer to participate in
Permitted Promotions; provided that Retailer shall not participate in Permitted Promotions that, in the aggregate, would have a material adverse effect on the Program. 

(e) Acceptance of Forms of Payment. Nothing in this Schedule 9.1 shall limit or restrict the ability of Retailer to
accept any and all forms of payment for goods and services at any time and at any Retailer Sales Channel and in any medium and the display of customary acceptance identification in Retailer Sales Channels (including through any point-of-sale signs,
decals or displays) which forms of payment may include any Credit Product. 
 (e) New Credit Products. If at any time
during the Term, the parties [***] (each a “New [***] Credit Product”), then the parties shall [***] New [***] Credit Product [***]. If such New [***] Credit
Product is [***], then the [***] New [***] Credit Product. Bank will work with Retailer to [***].  

(f) Transition. Nothing in this Agreement shall restrict Retailer from negotiating and entering into during the Term an
agreement with a third party to issue, offer or market, in each case subsequent to the Term, any Credit Product. 

  
 104 

 (g) Affiliates. The provisions of [***]. 

(h) Debit Card. If at any time during the Term Retailer decides to participate in the issuance of a debit card or device,
Retailer shall offer Bank the opportunity to make a proposal regarding such debit card issuance and shall reasonably consider such offer; provided, that nothing in this subsection (h) shall preclude Retailer from rejecting Bank’s
proposal. 
 (i) Promotion of Credit Cards. Retailer shall use commercially reasonable efforts to ensure that the
Credit Cards are promoted more prominently in the aggregate over time than any other payment product or promotion contemplated under this Schedule 9.1, including for avoidance of doubt, Affiliated Credit Products, Permitted Credit Products,
Permitted Promotions and the offering of debit cards. 

  
 105 

 SCHEDULE 10.2(g) 

Change in Law 
 For the purposes of
Section 10.2(g), “Change in Law” means any of the events or circumstances specified in subsections (a) through (c) below: 

(a) the enactment or promulgation of (i) a new federal, state or local statute, law or regulation, or a modification to any such new (or
existing) statute, law or regulation, in each case binding on Bank or Retailer, or (ii) any implementing regulations or interpretations issued under any such statute, law or regulation referred to in clause (i) that are binding on Bank or
Retailer; 
 (b) the issuance, enactment or promulgation of a written or oral directive, guidance, order or interpretation with respect to a
statute, law or regulation by a Governmental Authority that has jurisdiction, authority or control over Bank or Retailer, as the case may be, which directive, guidance, order or interpretation is either (i) specifically directed at and binding
upon Bank or Retailer; or (ii) while not specifically directed at Bank or Retailer, either (A) is directed at and binding upon institutions similarly situated to Bank or Retailer (e.g., OCC directive to all banks over which the OCC
exercises authority) or (B) would, based upon a legal opinion delivered by Bank’s counsel, be likely in the opinion of such counsel to subject Bank to monetary liability or a disciplinary, enforcement or similar regulatory action by a
Governmental Authority if Bank or Retailer were to fail to comply with such directive, guidance, order or interpretation subject to prior notice to Retailer and Retailer’s right to Expedited Review after such legal opinion has been delivered;
or 
 (c) a decision, order, decree, ruling or opinion of a United States federal or state court containing an interpretation of a statute,
law or regulation applicable to one or more jurisdictions within which Bank is operating the Program; but only to the extent that one or more of the following applies: either (A) such decision, order decree, ruling or opinion is specifically
directed at and binding upon institutions similarly situated to Bank or Retailer (e.g., is specifically applicable to all federal savings bank), (B) Bank is advised pursuant to a legal opinion of Bank’s counsel that such decision, order
decree, ruling or opinion is (or is likely to be) binding on Bank’s or Retailer’s business and operations, or (C) such decision, order decree, ruling or opinion would, based upon a legal opinion delivered by Bank’s counsel, be
likely in the opinion of such counsel to subject Bank to monetary liability or a disciplinary, enforcement or similar regulatory action by a Governmental Authority were Bank or Retailer to fail to comply with the substance of such decision, order
decree, ruling or opinion subject to prior notice to Retailer and Retailer’s right to Expedited Review after such legal opinion has been delivered. 

Notwithstanding the foregoing subsections (a) through (c), the effectiveness or implementation of any statute, law, regulation, written directive,
guidance, order or interpretation, or any decision, order, decree, ruling or opinion implementing any of the foregoing, shall not be a Change in Law if such statute, law, regulation, written directive, guidance, order or interpretation shall have
been enacted or adopted and, in either case, issued or otherwise released to the public, prior to the Effective Date (even if it shall not have become effective or shall not have been implemented prior to the Effective Date). For example, if the
CARD Act’s guidance on late fees had been publicly issued prior to the Effective Date, but mandatory compliance had not been 

  
 106 

 
effective until after the Effective Date, a Change in Law would not have been deemed to have occurred for purposes of this Schedule. However, for the avoidance of doubt, and by way of example, if
legislation was passed prior to the Effective Date (e.g., the Dodd-Frank Act), but such legislation’s implementing statutes, regulations, directives, guidance, orders or interpretations are not effective, enacted or adopted and, in any such
case, issued or otherwise publicly released until after the Effective Date, then the enactment, adoption or effectiveness and public issuance or release of such implementing statutes, regulations, directives, guidance, orders or interpretations
after the Effective Date would be a Change in Law for purposes of this Schedule if it meets the requirements of subsections (a), (b) or (c) above. 

“CIL Decline” means, as of any date, the existence of all of the following conditions: 

(i) A Change in Law (other than a Repeat Change in Law (as defined below)) (A) has occurred as of such date, and
(B) remains in effect as of such date. 
 (ii) The effect of applying such Change in Law (as further discussed below)
for the twelve (12) calendar month period following such date (relative to the actual experience under the Program for the twelve (12) calendar month period immediately preceding such date) is reasonably determined by Bank to result in a
decrease in Bank’s Gross Program Revenue of more than [***] percent ([***]%). Without otherwise limiting the foregoing, if the parties agree upon an offset to the impact caused by a Change in Law, but such offset does not compensate Bank for
all components of such Change in Law, unless the parties have agreed otherwise as part of the negotiation for any prior offset, Bank shall retain its termination right hereunder (and any incremental impact of such additional components shall be
added to the impact of all prior components) until all components of such Change in Law have been implemented and the impact of all such components is the subject of a mutually agreeable offset. However, if the Parties agree upon an offset that
expressly accounts for the projected impact of the components to a particular Change in Law that have not been implemented in addition to any that have already been implemented, then regardless of the actual impact of such components not yet
implemented, Bank shall be deemed to have waived its termination right (or any further offset) with respect to the portions of such Change in Law that were offset on a projected basis. For clarity, if a Change in Law is comprised of three components
having a negative impact on Gross Program Revenue of (X) [***]%, (Y) [***]% and (Z) [***]%, then Bank shall continue to have a termination right hereunder until: (i) the entire [***]% impact has been offset, (ii) the parties
have agreed that Bank shall not have a termination right for any future component as part of the negotiation with respect to the offset for a prior component, or (iii) an estimated offset has been agreed upon in advance of the implementation of
(Z). 
 (iii) Bank shall have delivered a written certification to Retailer with respect to the foregoing. 

  
 107 

 Any change in any Applicable Law that reduces the interchange revenue payable to Bank with respect to the Program
shall not be taken into account when determining a CIL Decline (instead, interchange reductions shall be governed by Section 7.18). 
 If Bank does not
notify Retailer of a Change in Law within twelve (12) months after the latest effective date of the component of the Change in Law that causes a decrease in Bank’s annual Gross Program Revenue of greater than [***] percent
([***]%), Bank shall be precluded from terminating this Agreement based on the particular Change in Law. For instance, if a series of related changes constituting a Change in Law take place over a period of two years, Bank’s failure to
trigger its termination rights under Section 10.2(g) until after the latest component of the related changes takes effect will not prevent Bank from including the impact of the earliest components of the Change in Law that are not Repeat
Changes in Law in its calculations of a CIL Decline. Additionally, this preclusion will not prejudice Bank’s right to terminate this Agreement in connection with a later Change in Law, whether or not the later change includes some aspects of
the earlier change (such as multiple changes to finance charge rates) that are not Repeat Changes in Law. Also, for clarity (and anything in the definition of Change in Law or any of the provisions of this Schedule 10.2(g) to the contrary
notwithstanding), it is understood that Bank has not factored into the economics under this Agreement changes in law which may result from the loss of preemption as the law may develop under the Dodd-Frank Act’s preemption provisions. The
Parties agree that the mere effectiveness of the changes in preemption standards enacted by the Dodd-Frank Act on the “designated transfer date” as defined in the Dodd-Frank Act, without further action, development, or regulatory
pronouncement, shall not by itself be considered a Change in Law, but that regulatory or judicial guidance or interpretation relating to preemption may constitute Changes in Law. 

“Dodd-Frank Act” means Pub. L. 111-203 (July 21, 2010). 

“Repeat Change in Law” means any Change in Law as to which the substantive requirements thereof applicable to Bank or Retailer, as the case
may be, shall have been the subject of a prior certification pursuant to this Schedule 10.2(g). For example, in the event that Bank shall have certified upon enactment of a particular statute as to a CIL Decline, implementation of such
statute or regulation implementing or interpreting the requirements of such statute would be a Repeat Change in Law and would not be considered a Change in Law for purposes of clause (i) of the definition thereof. However, if a particular
statute is enacted with multiple provisions (e.g. the CARD Act), then certification of one such provision of such statute as to a CIL Decline shall not be deemed a certification as to all such provisions (or a certification of any subsequent
interpretations thereof or guidance thereon), such that later certification of any additional provisions (or any new interpretations or guidance which have not previously been the subject of such a certification) from the same statute shall not be
considered a Repeat Change in Law, so long as the pro forma effect reflected by Bank with respect to such later certification shall be limited to such additional provisions (and the incremental impact thereof) and shall exclude the pro forma effect
of any Change in Law that was previously subject to a prior certification; by way of example, if, in the event that Bank shall certify upon enactment of a particular statute (e.g., the CARD Act) as to a CIL Decline for one such provision of the
newly enacted statute (e.g., required POS disclosures), but does not yet certify as to a CIL Decline for another provision of such statute (e.g., late fee guidance) or any subsequent interpretation thereof, Bank’s later certification as to that
additional provision (or any subsequent interpretation thereof) would not be a Repeat Change in Law and would instead be considered a Change in Law. 

  
 108 

 “Gross Program Revenue” means, [***]. 

  
 109 

 SCHEDULE 10.2(o) 

Minimum ROI 
 1. This paragraph 1
applies to the first time during the Term that the Rolling ROI for any Rolling ROI Measurement Period is less than [***] (the “Rolling ROI Minimum”). If Retailer and Bank have not agreed within [***] after Bank’s
delivery of the Shortfall Notice on changes to the financial terms of the Program that would have been necessary to reduce the Annual ROI Shortfall to [***] during such Rolling ROI Measurement Period, then Bank may reduce the Retailer Royalty
and/or the Non-Retailer Royalty by an amount necessary to reduce the Annual ROI Shortfall to [***] during such Rolling ROI Measurement Period. 
 2.
If the Retailer Royalty and the Non-Retailer Royalty are adjusted pursuant to paragraphs 1 or 3 and (i) such Retailer Royalty is reduced to: [***], and (ii) such Non-Retailer Royalty is reduced to [***] as a result of such
reductions, Retailer may terminate this Agreement by providing Bank at least [***] prior notice; provided that, in order to be effective, any such notice must be delivered by Retailer within [***] after the date on which both of
the circumstances in the preceding clauses (i) and (ii) have occurred. Without limiting the foregoing, if both the Retailer Royalty and the Non-Retailer Royalty are reduced to [***] as a result of reductions by Bank pursuant to this
Schedule 10.2(o), then either party may terminate this Agreement by providing the other party at least [***] prior notice; provided that, in order to be effective, any such notice must be delivered by Retailer or by Bank, as the
case may be, within [***]after the date on which both the Retailer Royalty and the Non-Retailer Royalty are reduced to [***]. 
 3. This
paragraph 3 applies to any subsequent Rolling ROI Measurement Period after an initial reduction of the Retailer Royalty or the Non-Retailer Royalty pursuant to paragraph 1. [***]. 

4. Notwithstanding anything in this Schedule 10.2(o), in no event shall the Retailer Royalty or the Non-Retailer Royalty be reduced to less than
[***] pursuant to this Schedule 10.2(o) or result in the obligation of Retailer to make payments to Bank. 

  
 110 

 SCHEDULE 10.2(p) 

Financial Covenants 
 A.
“Financial Covenants”: 
 Debt to Equity Ratio: Retailer shall maintain on a consolidated basis, as of the end of
each fiscal quarter of Retailer, a Debt to Equity Ratio of not more than 3.5 to 1.0. 
 Minimum Tangible Net Worth: The Tangible Net
Worth of Retailer on a consolidated basis, as of the end of each fiscal quarter of Retailer, shall not be less than $50,000,000. 
 B.
Definitions: As used in this Schedule 10.2(p), the following terms have the following meanings: 
 “Debt to Equity
Ratio” means, with respect to any entity as of any date, the ratio of (a) such entity’s Funded Debt as of such date, to (b) shareholders’ equity in such entity, as determined in accordance with GAAP, as of such date.

 “Funded Debt” means, with respect to any entity and for any period, the sum of (a) indebtedness under any working
capital or similar credit facility with respect to which such entity is the borrower, plus (b) all other debt of such entity for borrowed money (whether by loan or the issuance and sale of debt securities or for the deferred purchase
price of property), plus (c) obligations of such entity under capitalized leases, plus (d) such entity’s obligations in respect of banker’s acceptances or standby letters of credit, or similar instruments
issued or accepted by banks and other financial institutions for the account of such entity. 
 “GAAP” means generally
accepted accounting principles applicable in the United States, consistently applied; provided, however, that if at any time any change in GAAP would affect the definition or computation of any financial ratio or requirement set forth
in this Agreement, and either Retailer or Bank shall so request, Retailer and Bank shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided that, until
so amended, (i) such definition, ratio or requirement shall continue to be interpreted and/or computed in accordance with GAAP prior to such change therein and (ii) Retailer shall provide to Bank financial schedules setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 

“Intangible Assets” means, with respect to any entity and as of any date of determination, the sum of (a) all of such
entity’s assets which should be classified as intangible assets (such as goodwill, patents, trademarks, copyrights, franchises, and deferred charges including unamortized debt discount and research and development costs) in accordance with
GAAP, (b) cash held in a sinking or other similar fund established for the purpose of redemption or other retirement of capital stock, and (c) to the extent not already deducted from total assets, reserves for depreciation, depletion,
obsolescence or amortization of properties and other reserves or appropriations of retained earnings which have been or should be established in connection with business operation. 

  
 111 

 “Net Worth” means, with respect to any entity and as of any date of
determination, all items which should be included as assets of such entity, less all items which should be included as liabilities of such entity, in each case, determined in accordance with GAAP. 

“Remediation Period” means a [***] period beginning after Retailer’s failure to satisfy either of the Financial
Covenants and throughout which period Retailer has been in full compliance with such Financial Covenants. 
 “Tangible Net
Worth” means, with respect to any entity and as of any date of determination, the Net Worth of such entity, less the amount of such entity’s Intangible Assets. 

C. Reporting: In order to establish compliance with the financial covenants set forth above, Retailer shall deliver to Bank: (i) within forty five
(45) days after the end of each fiscal quarter of Retailer (other than Retailer’s fourth fiscal quarter), a certificate (including all calculations), signed by Retailer’s Chief Financial Officer, establishing Retailer’s
compliance or non-compliance with the financial covenants for such fiscal quarter, and (ii) within ninety (90) days after the end of Retailer’s fourth fiscal quarter during each fiscal year, a certificate (including all calculations),
signed by Retailer’s Chief Financial Officer, establishing Retailer’s compliance or non-compliance with the financial covenants for such fiscal quarter. Unless otherwise specifically set forth to the contrary, all financial calculations
contemplated herein shall be performed in accordance with GAAP. 
 D. Effect of Non-Compliance. 

(1) Bank shall have the right to terminate the Agreement if the financial covenants set forth in paragraph A above (the “Financial
Covenants”) are not met as of the end of any fiscal quarter pursuant to Section 10.2(p) which failure is not cured by posting the applicable Reserve Amount as provided in (2) below. 

(2) Without limiting the foregoing, if Retailer fails to satisfy either Financial Covenant, Retailer may cure such failure by notifying Bank
that Retailer intends to transfer to Bank [***] (collectively, the “Reserve Amount”). The Reserve Amount shall be determined by Bank acting reasonably and shall be communicated to Retailer, including therewith a commercially
reasonable detail regarding Bank’s determination of the Reserve Amount. For the avoidance of doubt, [***] with respect to: [***]. In the event that the Reserve Amount is reasonably determined by Bank to be in excess of Bank’s
actual exposure, Bank shall, from time to time as it makes any such reasonable determination, pay any such excess to Retailer. Upon receipt of the full amount of the Reserve Amount, then, as to the specific reporting period within which Retailer
failed to satisfy either of the Financial Covenants, such default shall be deemed cured and Bank shall have no right to terminate this Agreement pursuant to Section 10.2(p) with respect to such default. In order to be effective as a cure for
Retailer’s failure to satisfy either Financial Covenant, Retailer must make the election to effect such a cure and transfer the Reserve Amount to Bank (or notify Bank of its right to withhold such amount from settlement payments) within
[***] after Bank’s notification of the applicable Reserve Amount. 
 (3) Bank shall hold the Reserve Amount in an account on
Bank’s books (the “Reserve Account”) and such Reserve Amount shall secure Retailer’s full and prompt payment 

  
 112 

 
of all further amounts due hereunder. If Retailer fails to pay any amounts hereunder when due, Bank may immediately, and without prior notice to Retailer, debit any such unpaid amount from any
amounts then remaining in the Reserve Account. Bank’s security interest in the Reserve Account shall be in addition to any right of setoff or recoupment that Bank may otherwise have under the Agreement or Applicable Law. 

(4) Bank’s rights under this Schedule 10.2(p) shall apply at all times until the [***]. The foregoing notwithstanding, if
after Bank shall have surrendered the Reserve Amount to Retailer pursuant to the preceding sentence following the successful completion by Retailer of a Remediation Period, Retailer shall again fail to satisfy the Financial Covenants set forth in
this Schedule 10.2(p), the provisions of Section 10.2(p) and this Schedule 10.2(p) shall again apply. 

  
 113 

 SCHEDULE 11.2 

Purchase of Accounts by Retailer Upon Termination 

1. Except as provided in Section 11.5, upon notice of termination of this Agreement by either party, Retailer will have the option,
exercisable as provided below, to purchase, or to arrange for the purchase by a third party nominated by Retailer (its “Nominated Purchaser”), of not less than all of the Accounts and related Indebtedness (other than Accounts that
have been written-off, or should have been written off, by Bank in accordance with Bank’s risk management policies for the Program), free and clear of all liens, encumbrances, claims, third party rights, mortgages, restrictions, security
interests or other similar kind of right upon the termination or expiration of this Agreement. 
 2. The purchase price for such Accounts
shall be payable in immediately available funds in an amount equal to: [***] (the “Purchase Option”). Retailer’s Purchase Option may be exercised as provided in this Schedule 11.2. 

3. Beginning [***] (i) [***] prior to the expiration of the Term or (ii) upon any notice of termination by either
party, Retailer may request and Bank will provide Portfolio Data for purposes of Retailer exercising its Purchase Option. Portfolio Data shall include information that is reasonably required in a typical RFP process to allow Retailer, its advisors
and participants in such RFP process to conduct due diligence investigations on the Program, value the portfolio and provide Retailer with RFP proposals. “Portfolio Data” shall be [***] the portfolio data [***]. Bank
shall [***]. 
 (a) Bank will provide the Portfolio Data to Retailer for purposes of exercising its Purchase Option
(such date, the “Portfolio Data Delivery Date”): (i) within [***] of Bank delivering a notice of termination, (ii) within [***] of Retailer delivering a notice of termination or (iii) within [***]
after Retailer’s request which is made or delivered [***] prior to the expiration of the Term. 
 (b) Retailer
shall notify Bank in writing of Retailer’s exercise of its Purchase Option (the “Exercise Notice”): 

(i) if this Agreement is expiring pursuant to either party’s decision not to allow it to automatically renew under
Section 10.1, within [***] following the date on which a party provided notice of non-renewal of this Agreement pursuant to Section 10.1; 

(ii) if this Agreement terminates pursuant to Section 10.2 following the delivery of a termination notice by Retailer,
within [***] following the Portfolio Data Delivery Date; and 
 (iii) if this Agreement terminates pursuant to
Section 10.2 following the delivery of a termination notice by Bank, within [***] following the Portfolio Data Delivery Date. 

  
 114 

 Retailer’s Purchase Option shall expire and be of no effect if Purchaser does not provide an Exercise Notice
to Bank within the time period required under this Section 3. 
 4. Within [***] of receipt of the Exercise Notice from
Retailer, Bank will provide [***] Nominated Purchasers with masterfile account level data [***] customarily provided to participants in an RFP process for a third party to complete diligence with a copy of such data provided to
Retailer at the same time [***] (the “Master File Information”). In the event that the designated Nominated Purchaser decides not to purchase the Program Assets, [***]. 

5. Retailer may use and disclose to its Representatives and prospective and actual Nominated Purchasers (including payment networks) the
(a) Portfolio Data, (b) provisions of the Purchase Option process including Schedule 11.2, Schedule 11.3 and Schedule 11.3(1) and (c) subject to Section 4, Master File Information in order to assist in better
understanding the Program Assets, identifying prospective Nominated Purchasers or assessing the value and evaluating a potential purchase of the Program Assets. The Portfolio Data and Master File Information shall be used and disclosed by Retailer
and any other party receiving such data or information solely as authorized by this Section 5. Retailer, any prospective or actual Nominated Purchaser or other person or entity receiving the Portfolio Data or Master File Information must
execute, prior to receipt of any such data or information, confidentiality and non-disclosure agreement containing industry standard provisions and naming Bank as a third party beneficiary. 

6. If the Purchase Option is exercised pursuant to Section 3 of this Schedule 11.2, Retailer or the Nominated Purchaser must
complete the purchase with a simultaneous close and conversion as soon as reasonably practicable but in no event later than (such date, the “Closing Date”): 

(a) if this Agreement expires pursuant to Section 10.1, the[***]; 

(b) if this Agreement terminates pursuant to Section 10.2 following the delivery of a termination notice by Retailer,
within [***] after such notice; and 
 (c) if this Agreement terminates pursuant to Section 10.2 following the
delivery of a termination notice by Bank, within [***] after such notice of termination; 
 provided that upon notice by
Retailer no later than [***] prior to the then Closing Date, Retailer shall be granted an extension of the Closing Date for a period of up to [***] (or such longer period as may be mutually agreed by the parties) if (i) Retailer
or its Nominated Purchaser experiences delay in obtaining all necessary regulatory approvals or rating agency consents (after exercising good faith efforts to do so) or (ii) Retailer or its Nominated Purchaser requires additional time to
complete necessary conversion activities (after exercising good faith efforts to do so). 
 7. If Retailer exercises its Purchase Option
under Section 3 of this Schedule 11.2: 
 (a) Retailer and Bank agree to work in good faith to prepare the
necessary purchase documents on terms and conditions that are reasonable and customary for the industry. 

  
 115 

 (b) Each party will bear their own expenses related to transfer and conversion of
the Accounts and Indebtedness to Retailer or its Nominated Purchaser. 
 (c) Bank shall have no obligation to extend further
credit under the Program after the closing of the sale of the Accounts and Indebtedness to Retailer or its designee. 
 (d)
Retailer shall no longer use Bank’s name and must re-brand the Credit Cards within [***] after the date upon which the transfer and conversion of the Accounts and Indebtedness is completed. In addition, if Retailer exercises its Purchase
Option, Bank shall have no rights to use the Cardholder Information or Transaction Information or any list derived therefrom except as expressly provided in this Agreement; provided, however, that Bank may use other lists developed
independently by Bank that may contain one or more of such Cardholders. 
 (e) Bank shall cooperate with reasonable
conversion and transition activities following Retailer’s designation of a Nominated Purchaser in order to permit a simultaneous close and customary conversion of the Accounts and Indebtedness, including by providing customary conversion data,
reasonable access to Bank’s card processor, and allocation of a designated and responsive resource to effect a transition by the Closing Date. 

(f) The parties shall not unreasonably withhold or delay execution of such purchase agreement or any other documents reasonably
necessary to effectuate such sale. The Parties shall use reasonable efforts to ensure that the purchase date occurs as promptly as reasonably practicable following the execution of such purchase agreement. 

  
 116 

 SCHEDULE 11.2(a)(1) 

[***] 
 [***] 

 

	 	1.	[***] 

  

	 	a.	[***] 

  

	 	b.	[***] 

  

	 	c.	[***] 

  

	 	d.	[***] 

  

	 	e.	[***] 

  

	 	f.	[***] 

  

	 	g.	[***] 

  

	 	h.	[***] 

  

	 	i.	[***] 

  

	 	2.	[***] 

  

	 	a.	[***] 

  

	 	b.	[***] 

  

	 	3.	[***] 

  

	 	a.	[***] 

  

	 	4.	[***] 

  

	 	a.	[***] 

  

	 	5.	[***] 

  

	 	a.	[***] 

  

	 	b.	[***] 

  

	 	c.	[***] 

  

	 	6.	[***] 

  

	 	a.	[***] 

  

	 	7.	[***] 

  

	 	8.	[***] 

  

	 	a.	[***] 

  

	 	b.	[***] 

  

	 	c.	[***] 

  

	 	d.	[***] 

  

	 	e.	[***] 

  

	 	f.	[***] 

  

	 	9.	[***] 

  
 117 

	 	a.	[***] 

  

	 	b.	[***] 

  
 118 

 SCHEDULE 11.2(a)(2) 

[***] 
 [***] 

  
 119 

 SCHEDULE 11.3 

Fair Market Value 
 1. [***]
after Retailer provides Bank with notice of the actual Nominated Purchaser, Bank and the actual Nominated Purchaser shall enter into good faith negotiations for a period of [***] to determine the fair market value of the Program Assets, based
on the assumptions set forth in Schedule 11.3(1) and the type of data set forth in Schedule 11.2(a)(1). Fair market value shall be expressed as a percentage and shall equal the dollar amount of the Indebtedness plus any premium or
minus any discount, as applicable, divided by the dollar amount of the Indebtedness. In the event that such Nominated Purchaser decides not to purchase the Program Assets after determination of the fair market value pursuant to this Schedule
11.3, Retailer shall have the right to designate another third party as Nominated Purchaser; provided, that (a) the fair market value previously determined pursuant to paragraphs 2 and 3 of this Schedule 11.3 shall be the fair
market value applicable with respect to such new Nominated Purchaser and (b) the time period for closing the purchase and sale of the Accounts shall be extended only on the mutual agreement of the parties. 

2. If the Bank and the actual Nominated Purchaser cannot reach such agreement within such [***] period, each of Bank and the actual Nominated Purchaser
shall within [***] of the end of such period nominate an appraiser who together shall select a third appraiser to value the Program Assets. In such case, the fair market value shall be the average of the two closest valuations (expressed as a
percentage as set forth above) provided by the three appraisers; provided, however, if the median valuation is within plus or minus [***] of the mean of the three valuations, the fair market value shall be the mean. 

3. In determining the fair market value of the Program Assets, (a) each of Bank and the actual Nominated Purchaser shall instruct the appraisers to
follow the guidelines set forth in Schedule 11.3(1) hereto, (b) Bank shall provide identical information to each appraiser as is necessary to provide a valuation, and (c) each of Bank and the actual Nominated Purchaser shall
instruct the appraisers to complete their respective valuations within [***] after receiving the relevant information from Bank. 
 4. The parties
acknowledge that Retailer may be the actual Nominated Purchaser with the rights and obligations as the Nominated Purchaser as set forth in this Schedule 11.3. 

5. Bank shall not restrict the Nominated Purchaser from disclosing to Retailer the status of the negotiations between Bank and the Nominated Purchaser
regarding the determination of the fair market value of the Program Assets. 

  
 120 

 SCHEDULE 11.3(1) 

Fair Market Value Appraisal Guidelines 

Each appraiser shall be given the following instructions for preparing their valuations: 

 

	 	(i)	Instructions regarding the number of Accounts being purchased, whether the Accounts represent all Program Accounts or a specified group of Program Accounts, and if a specified group, the nature of the group, and any
applicable information regarding the exclusion of Excluded Accounts; 

  

	 	(ii)	Assume a [***] ongoing endorsement of the existing Program by Retailer (for existing Accounts only); 

  

	 	(iii)	Assume no new Account acquisition marketing shall occur following the purchase of the Program Assets (i.e., no new accounts to be added to the Program); and 

 

	 	(iv)	Assume historical attrition rates and charge-offs, the then-existing value proposition, revenue sharing, rewards program funding as provided by Retailer, and product pricing for the Program shall remain in effect over
the entire [***] term of the ongoing endorsement of existing accounts for purposes of the valuation. 

  
 121 

 SCHEDULE 11.4 

Bank’s Rights Upon Retailer’s Failure to Purchase Accounts 

If Retailer does not exercise its option to purchase, or arrange for the purchase of, the Accounts and Indebtedness under Schedule
11.2, and without limiting any other right of Bank hereunder, upon the expiration or early termination of the Agreement, (a) Retailer shall repay to Bank within ten (10) Business Days after the effective date of such expiration or
termination, the Unamortized Signing Bonus; and (b) Bank will have the right, in addition to and without waiving any other rights it may have under the terms of this Agreement or Applicable Law, to: (i) subject to Applicable Law, notify
Cardholders that Bank shall cease providing credit under the Accounts and require repayment of all amounts outstanding on all Accounts until all associated receivables have been repaid; (ii) convert any or all of the Accounts to another credit
or charge program maintained by Bank or any of its affiliates that is not a competitor store listed in Group 2 of Schedule 11.4 (1), including to a Synchrony Bank-branded credit card (which card and related documentation (including marketing
material) must not bear any Retailer Mark and cannot have a look and feel that is confusingly similar to any Account Documentation, Credit Card, Cardholder Rewards Program or materials used for advertising or solicitation); (iii) sell any or
all of the Accounts, whether by securitization or otherwise to any third party that is not a competitor store listed in Group 2 of Schedule 11.4(1) and will ensure that any third party purchaser or the Accounts does not remarket to or
re-brand the Accounts with the trademarks of a competitor store listed in Group 2 of Schedule 11.4(1); or (iv) upon notice by Bank, require that Retailer continue to accept Accounts at and through Retailer Sales Channels for a period
designated by Bank but not to [***] after the later of the termination or expiration of Retailer’s right to purchase the Accounts and Indebtedness (the “Tail Period”). During the Tail Period, Bank shall continue to make
the Retailer Royalty and the Non-Retailer Royalty set forth in Section 2 of Schedule 4.1. In addition, all obligations of the parties with respect to the Cardholder Rewards Program pursuant to Schedule 6.4 shall continue during
the Tail Period. 
 Retailer will cooperate with Bank and take any action reasonably requested by Bank in connection with the provisions of
the foregoing paragraph. Within [***] after: (i) Retailer either gives notice that it shall not exercise its option referred to in Schedule 11.2 or the time period for Retailer to exercise such option shall have expired; or
(ii) termination of this Agreement, whichever occurs later, Bank shall no longer use any of Retailer Marks (or any other trademarks or source indicators confusingly similar thereto) and must re-brand the Accounts; provided that (x) if Bank
elects to implement a Tail Period, then such [***] period shall run from the expiration thereof, and (y) after the expiration of any such [***] period, Bank may continue to use the Retailer Marks solely to the extent necessary to
identify the Accounts in connection with the billing and collection thereof as described in clause (b)(i) above, and as otherwise required by Applicable Law for no longer than [***], or may make nominative use of Retailer’s name (or the
Program name) to the extent necessary to identify the Program in connection with any conversion or substitution, or in connection with the billing and collection of the Accounts as described in clause (b)(i) above. 

Unless Retailer exercises its option to purchase the Accounts and Indebtedness, Retailer shall have no rights to use the Cardholder
Information or Transaction Information or any list derived therefrom for a period of [***] to solicit new Credit Products; provided, however, that 

  
 122 

 
Retailer may use other lists developed by Retailer independently of the Program that may contain one or more of such Cardholders in connection with any new Credit Products or the solicitation
thereof. 

  
 123 

 SCHEDULE 11.4(1) 

Competitor Stores[***] 
 Group
1: 
  

	1.	[***] 

  

	2.	[***] 

  

	3.	[***] 

  

	4.	[***] 

 Group 2: 
  

	1.	[***] 

  

	2.	[***] 

  

	3.	[***] 

  

	4.	[***] 

  

	5.	[***] 

  

	6.	[***] 

 [***] 

  
 124 

 SCHEDULE 15.3 

Assignment 

Neither Bank nor Retailer may assign its rights or delegate its obligations under this Agreement without the prior consent of the other party,
which consent will not be unreasonably withheld, provided that (A) Bank may, without such consent (i) assign all or part of its rights and delegate some or all of its obligations under this Agreement to an affiliate; (ii) subject to
Section 5.2(l) of this Agreement herein, engage third parties to perform some or all of Bank’s obligations under this Agreement, including the servicing and administration of Accounts; and (iii) assign all or some of its rights
hereunder to any person acquiring any or all Accounts after the termination or expiration of this Agreement; and (B) Retailer may, without such consent, but subject in all respects to the limitations set forth in Schedule 9.1
(i) assign all or part of its rights and delegate some or all of its obligations under this Agreement to an affiliate; (ii) engage third parties to perform some or all of Retailer’s obligations under this Agreement, including the
servicing and administration of its obligations under the Cardholder Rewards Program; and (iii) assign all or some of its rights hereunder to any person acquiring any or all Accounts after termination or expiration of this Agreement.
Notwithstanding any assignment pursuant to this Section, the assigning party will remain liable for all of its obligations under this Agreement. Subject to Retailer’s rights under Section 7.9 of this Agreement as such relate to newly
acquired affiliates and not affiliates arising as a result of a corporate restructuring or reorganization, Retailer agrees not to undertake a corporate restructuring or reorganization, unless it ensures that all entities resulting from such
restructuring or reorganization that own or operate Retailer Sales Channels become parties to this Agreement. 

  
 125 

 SCHEDULE 15.4 

Outsourcing; Subcontracting 

1. As specified in Schedule 15.4(1), Bank agrees that in the performance of all customer-facing functions, including customer service
functions for Cardholders and Retailer Stores, Bank will utilize its or its affiliates’ facilities and employees located in the United States or the Philippines; provided, however that Skip Tracing, bi-lingual servicing and
overnight/after-hours servicing functions shall be provided from locations outside the United States. In the event [***] for the Majority of Comparable Programs [***]. 

2. As specified in Schedule 15.4(1), Bank and Retailer agree that Bank may perform certain collection activities and non-customer
facing functions, including data entry, remittance processing and printing, through the use of third parties whether within the United States or in other locales, including India and Mexico, provided that such third parties are subject to the same
Service Level Standards as Bank, provided further that Retailer shall approve the use of such third parties, such approval not to be unreasonably withheld. 

  
 126 

 SCHEDULE 15.4(1) 

Geographical Location of Services 

Bank currently performs services in the geographic locations as specified in the tables and list below. 

Customer and Store Facing Activities: 
  

			
	 Activity
	  	 Location

	Call Center Customer Service (Cardholders and Stores)	  	[***]
	Collections	  	[***]
	Recovery	  	[***]
	Fraud Investigation	  	[***]
	Manual Underwriting	  	[***]

 Non-Customer and Non-Store Facing Activities: 
  

			
	 Activity
	  	 Location

	FDR Partnership	  	[***]
	Collection Processes	  	[***]
	Recovery	  	[***]
	Risk Processes	  	[***]
	Customer Service Back-line Processing	  	[***]

  
 127 

 SCHEDULE A-1 

Credit Review Point 

The Credit Review Point shall be [***] or such other higher amount as Bank, in its sole discretion, may from time to time specify to
Retailer in writing. 

  
 128 

 SCHEDULE A-2 

Unamortized Signing Bonus 

The Unamortized Signing Bonus, shall mean, on any date, an amount equal to (x) one-one
hundred twentieth (1/120th) of $[***], multiplied by (y) the number of months, if any, rounded up to the next integer, remaining before the one hundred twenty (120) month anniversary of the Effective Date;
provided, that (i) in the event this Agreement is terminated by Retailer pursuant to Section 10.2(a), (b), (c), (e), (f), (h), (i), (k), or (l) the Unamortized Signing Bonus shall be deemed to be [***]
dollars ($[***]); and (ii) in the event this Agreement is terminated by Bank pursuant to Section 10.2(g) or (o), the Unamortized Signing Bonus shall be deemed to be [***] dollars
($[***]). 

  
 129

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