Document:

Exhibit
10.1

 

SECOND
MODIFICATION 

TO

SECOND
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

THIS
SECOND MODIFICATION TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Modification”) is entered into
as of November 29, 2022 by and among STREAMLINE HEALTH SOLUTIONS, INC., a Delaware corporation (“Streamline”), STREAMLINE
HEALTH, LLC, a Delaware limited liability company (f/k/a STREAMLINE HEALTH, INC., an Ohio corporation) (“Streamline Health”),
STREAMLINE PAY & BENEFITS, LLC, a Delaware limited liability company (“Streamline Pay”), AVELEAD CONSULTING, LLC,
a Georgia limited liability company (“Avelead Consulting”), STREAMLINE CONSULTING SOLUTIONS, LLC, a Delaware limited
liability company (“Streamline Consulting” and, together with Streamline, Streamline Health, Streamline Pay, Avelead
Consulting and any other Person who, from time to time, becomes a Borrower under the Loan Agreement (as defined below), collectively,
the “Borrowers” and each individually, a “Borrower”) and WESTERN ALLIANCE BANK, an Arizona corporation
(“Bank”).

 

RECITALS

 

A. Bank
and Borrower have previously entered into that certain Second Amended and Restated Loan and Security Agreement dated as of August 26,
2021 (as amended, restated, supplemented and otherwise modified from time to time, the “Loan Agreement”), pursuant
to which Bank has made certain loans and financial accommodations available to Borrower.

 

B. Borrower
previously advised Bank that Borrower intended to convert Streamline Health, Inc. from an Ohio corporation to a Delaware limited liability
company and accordingly change its name from “Streamline Health, Inc.” to “Streamline Health, LLC” and Bank and
Borrower now wish to modify the Loan Agreement on the terms and conditions set forth herein to evidence such change.

 

C. Borrower
is entering into this Modification with the understanding and agreement that, except as specifically provided herein, none of Bank’s
rights or remedies as set forth in the Loan Agreement or any other Loan Document is being waived or modified by the terms of this Modification.

 

AGREEMENT

 

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

 

	 	1.	MODIFICATIONS.

 

		(a)	Additional
                                            Definitions. Section 1.1 of the Loan Agreement is amended to add the following new definitions
                                            in the appropriate alphabetical order:

 

“Revolving
Facility” means the facility under which Borrower may request Bank to issue Advances, as specified in Section 2.1(a) hereof.

 

“Revolving
Line” means a credit extension of up to Two Million Dollars ($2,000,000).

 

“Revolving
Maturity Date” means August 26, 2026.

 

“Second
Modification Closing Date” means November 29, 2022.

 

    	 

    	 

    

 

(b) Revolving
Advances. Section 2.1(a) of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

(a) Revolving
Advances.

 

(i) Availability.
Subject to and upon the terms and conditions of this Agreement, Borrower may request Advances in an aggregate outstanding amount not
to exceed the Revolving Line. Subject to the terms and conditions of this Agreement, amounts borrowed pursuant to this Section 2.1(a)
may be repaid and reborrowed at any time prior to the Revolving Maturity Date, at which time all Advances under this Section 2.1(a) shall
be immediately due and payable. Borrower may prepay any Advances without penalty or premium.

 

(ii) Procedures
for Borrowing. Whenever Borrower desires an Advance, Borrower will notify Bank no later than 3:00 p.m. Pacific time, on the Business
Day that the Advance is to be made. Each such notification shall be made (i) by telephone or in-person followed by written confirmation
from Borrower within 24 hours, (ii) by electronic mail, or (iii) by delivering to Bank a Revolving Advance Request Form in substantially
the form of Exhibit C hereto. Bank is authorized to make Advances under this Agreement, based upon instructions received from
a Responsible Officer or a designee of a Responsible Officer, or without instructions if in Bank’s discretion such Advances are
necessary to meet Obligations which have become due and remain unpaid. Bank shall be entitled to rely on any notice given by a person
who Bank reasonably believes to be a Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Bank harmless for
any damages or loss suffered by Bank as a result of such reliance. Bank will credit the amount of Advances made under this Section 2.1(a)
to Borrower’s deposit account.

 

(c) Interest
Rate on Advances. Section 2.2(a) is deleted in its entirety and the following substituted therefor:

 

		(a)	Interest
                                            Rates.

 

(i)
Term Advance. Except as set forth in Section 2.2(b), the outstanding Term Advance shall bear interest on the outstanding Daily
Balance thereof, at a floating rate to one and one half of one percent (1.50%) above the Prime Rate.

 

(ii)
Advances. Except as set forth in Section 2.2(b), the outstanding Advances shall bear interest on the outstanding Daily Balance thereof,
at a floating rate equal to one half of one percent (1.50%) above the Prime Rate.

 

(d) Facility
Fee. Section 2.4(a) of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

(a) Facility
Fee. (i) On the Closing Date, $100,000 in respect of the Term Advance, which shall be deemed fully earned as of the Closing Date
and (ii) on the Second Modification Closing Date, $20,000 in respect of the Revolving Line, which will be deemed fully earned, due and
payable on the Second Modification Closing Date;

 

(e) Fee
in Lieu of Warrant. Section 2.4(c) of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

(c) Fee
in Lieu of Warrant. (i) on the Closing Date, a cash fee in lieu of issuing the Warrant equal to $200,000, which shall fully earned
as of the Closing Date and (ii) on the Second Modification Closing Date, a cash fee in lieu of issuing a Warrant equal to $50,000, which
shall be fully earned as of the Second Modification Closing Date and each of which shall be due and payable on the earlier of (A) the
Term Loan Maturity Date or (B) termination of this Agreement in accordance with the terms hereof.

 

    	2

    	 

    

 

(f) Overadvances.
Article 2 of the Loan Agreement is amended to add the following new Section 2.6 at the end thereof:

 

2.6 Overadvances.
If at any time the aggregate amount of the outstanding Advances exceeds the Revolving Line at any time, Borrower shall immediately pay
to Bank, in cash, the amount of such excess.

 

(g) Conditions
Precedent to All Credit Extensions. Section 3.2 of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

3.2 Conditions
Precedent to All Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension, is
further subject to the following conditions:

 

(a) timely
receipt by Bank of the Revolving Advance Request Form, as provided in Section 2.1;

 

(b) the
absence of any circumstance or circumstances that could have a Material Adverse Effect; and

 

(c) the
representations and warranties contained in Section 5 shall be true and correct in all material respects on and as of the date of such
Revolving Advance Request Form and on the effective date of each Credit Extension as though made at and as of each such date, and no
Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension. The making of each
Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy
of the facts referred to in this Section 3.2.

 

(h) Collateral
and Intellectual Property. Section 5.6 of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

5.6
Collateral and Intellectual Property Collateral. Borrower is the sole owner or licensee of the Intellectual Property Collateral,
except (i) as stated herein or in the Schedule (as updated in a Revolving Advance Request or a Compliance Certificate, in each case,
most recently delivered to Bank), (ii) commercially available software using in the ordinary course of business and (iii) for non-exclusive
licenses granted by Borrower to its customers in the ordinary course of business. Except as would not reasonably be expected to have
a Material Adverse Effect, each of the Patents is valid and enforceable, and no part of the Intellectual Property Collateral has been
judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property Collateral
violates the rights of any third party. Except as set forth in the Schedule (as updated in a Revolving Advance Request or a Compliance
Certificate, in each case, most recently delivered to Bank), Borrower’s rights as a licensee of intellectual property do not give
rise to more than five percent (5%) of its gross revenue in any given month, including without limitation revenue derived from the sale,
licensing, rendering or disposition of any product or service. Except as set forth in the Schedule, Borrower is not a party to, or bound
by, any agreement that restricts the grant by Borrower of a security interest in Borrower’s rights under such agreement.

 

(i) Name;
Location of Chief Executive Office. Section 5.7 of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

    	3

    	 

    

 

5.7
 Name; Location of Chief Executive Office. Except as disclosed in the Schedule (as updated
in a Revolving Advance Request or a Compliance Certificate, in each case, most recently delivered to Bank), Borrower has not done business
under any name other than that specified on the signature page hereof. The chief executive office of Borrower is located at the address
indicated in Section 10 hereof. All Borrower’s Inventory and Equipment is located only at the location set forth in Section 10
hereof (as updated in a Revolving Advance Request or a Compliance Certificate, in each case, most recently
delivered to Bank).

 

(j) Environmental
Condition. Section 5.12 of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

5.12
 Environmental Condition. Except as disclosed in the Schedule (as updated in a Revolving
Advance Request or a Compliance Certificate, in each case, most recently delivered to Bank), none of Borrower’s or any Subsidiary’s
properties or assets has ever been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous owners
or operators, in the disposal of, or to produce, store, handle, treat, release, or transport, any hazardous waste or hazardous substance
other than in accordance with applicable law; to the best of Borrower’s knowledge, none of Borrower’s properties or assets
has ever been designated or identified in any manner pursuant to any environmental protection statute as a hazardous waste or hazardous
substance disposal site, or a candidate for closure pursuant to any environmental protection statute; no lien arising under any environmental
protection statute has attached to any revenues or to any real or personal property owned by Borrower or any Subsidiary; and neither
Borrower nor any Subsidiary has received a summons, citation, notice, or directive from the Environmental Protection Agency or any other
federal, state or other governmental agency concerning any action or omission by Borrower or any Subsidiary resulting in the releasing,
or otherwise disposing of hazardous waste or hazardous substances into the environment.

 

(k) Minimum
Cash. Section 6.9(a) of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

(a) Minimum
Cash. Borrowers shall, at all times, maintain unrestricted cash of Borrowers at Bank in an amount not less than Two Million Dollars
($2,000,000).

 

(l) Maximum
Debt to ARR Ratio. Section 6.9(b) of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

(b) Maximum
Debt to ARR Ratio. Borrowers’ Maximum Debt to ARR Ratio, measured on a quarterly basis as of the last day of each fiscal quarter,
shall not be greater than the amount set forth under the heading “Maximum Debt to ARR Ratio” as of, and for each of the dates
appearing adjacent to such “Maximum Debt to ARR Ratio”.

 

	Quarter
    Ending	 	Maximum
    Debt to ARR Ratio
	October
    31, 2022	 	0.80
    to 1.00
	January
    31, 2023	 	0.70
    to 1.00
	April
    30, 2023	 	0.65
    to 1.00
	July
    31, 2023	 	0.60
    to 1.00
	October
    31, 2023	 	0.55
    to 1.00
	January
    30, 2024	 	0.50
    to 1.00

 

    	4

    	 

    

 

(m) Maximum
Debt to Adjusted EBITDA Ratio. Section 6.9(c) of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

(c)
 Maximum Debt to Adjusted EBITDA Ratio. Commencing with the quarter ending April 30,
2024, Borrowers’ Maximum Debt to Adjusted EBITDA Ratio, measured on a quarterly basis as of the last day of each fiscal quarter
for the trailing four (4) quarter period then ended, shall not be greater than the amount set forth under the heading “Maximum
Debt to Adjusted EBITDA Ratio” as of, and for each of the dates appearing adjacent to such “Maximum Debt to Adjusted EBITDA
Ratio”.

 

	Quarter
    Ending	 	Maximum
    Debt to Adjusted EBITDA Ratio
	April
    30, 2024	 	3.50
    to 1.00
	July
    31, 2024 and on the last day of each quarter thereafter	 	2.00
    to 1.00

 

(n) Fixed
Charge Coverage Ratio. Section 6.9(d) of the Loan Agreement is deleted in its entirety and the following substituted therefor:

 

(d) Fixed
Charge Coverage Ratio. Commencing with the quarter ending April 30, 2024, Borrowers shall maintain a Fixed Charge Coverage Ratio
of not less than 1.20 to 1.00, measured on a quarterly basis as of the last day of each fiscal quarter for the trailing four (4) quarter
period then ended.

 

(o) Compliance
Certificate. Exhibit B to the Loan Agreement is deleted in its entirety and replaced with Exhibit B attached hereto.

 

(p) Revolving
Advance Request Form. The Loan Agreement is amended to add the following new Exhibit C attached hereto.

 

2. NO
DEFENSES OF BORROWER/GENERAL Release. Borrower agrees that, as of this date, it has
no defenses against the obligations to pay any amounts under the Indebtedness. Each of Borrower and Guarantor (each, a “Releasing
Party”) acknowledges that Bank would not enter into this Modification without Releasing Party’s assurance that it has
no claims against Bank or any of Bank’s officers, directors, employees or agents. Except for the obligations arising hereafter
under this Modification, each Releasing Party releases Bank, and each of Bank’s officers, directors and employees from any known
or unknown claims that Releasing Party now has against Bank of any nature, including any claims that Releasing Party, its successors,
counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded
in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related
to the Loan Agreement or the transactions contemplated thereby. Each Releasing Party acknowledges and agrees that they have been informed
by their attorneys and advisors of, and are familiar with, and do hereby expressly waive, the provisions of Section 1542 of the California
Civil Code, and any similar statute, code, law, or regulation of any state or the United States, to the full extent that they may waive
such rights and benefits. Civil Code section 1542 provides:

 

    	5

    	 

    

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR
AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.

 

The
provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees,
assigns and successors in interest. The provisions, waivers and releases of this section shall inure to the benefit of Bank and its agents,
employees, officers, directors, assigns and successors in interest. The provisions of this section shall survive payment in full of the
Obligations, full performance of all the terms of this Modification and the Loan Agreement, and/or Bank’s actions to exercise any
remedy available under the Loan Agreement or otherwise.

 

3. CONTINUING
VALIDITY. Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower’s representations,
warranties, and agreements, as set forth in the Loan Documents, subject to the modifications set forth herein. Except as expressly modified
pursuant to this Modification, the terms of the Loan Documents remain unchanged and in full force and effect. Bank’s agreement
to modifications to the existing Indebtedness pursuant to this Modification in no way shall obligate Bank to make any future modifications
to the Indebtedness. Nothing in this Modification shall constitute a satisfaction of the Indebtedness. It is the intention of Bank and
Borrower to retain as liable parties all makers and endorsers of Loan Documents, unless the party is expressly released by Bank in writing.
No maker, endorser, or guarantor will be released by virtue of this Modification. The terms of this paragraph apply not only to this
Modification, but also to any subsequent modification agreements.

 

4. Effectiveness
of this Modification. This Modification, and the waivers provided for herein, shall become effective upon the satisfaction,
as determined by Bank, of the following conditions.

 

(a) Modification.
Bank shall have received this Modification fully executed in a sufficient number of counterparts for distribution to all parties.

 

(b) Representations
and Warranties. The representations and warranties set forth herein and in the Loan Agreement must be true and correct.

 

(c) Other
Required Documentation. All other documents and legal matters in connection with the transactions contemplated by this Modification
shall have been delivered or executed or recorded, as required by Bank.

 

5. CHOICE
OF LAW AND VENUE; JURY TRIAL WAIVER; REFERENCE PROVISION. This Modification constitutes a “Loan Document” as defined
and set forth in the Loan Agreement, and is subject to Sections 11 and 12 of the Loan Agreement, which are incorporated by reference
herein.

 

6. Notice
of Final Agreement. By signing this document each party represents and agrees that: (A) this written agreement represents the final
agreement between the parties, (B) there are no unwritten oral agreements between the parties, and (C) this written agreement may not
be contradicted by evidence of any prior, contemporaneous, or subsequent oral agreements or understandings of the parties.

 

    	6

    	 

    

 

7. Counterparts;
Facsimile Signatures. This Modification may be executed in any number of and by different parties hereto on separate counterparts,
all of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any
signature delivered by a party by facsimile or other similar form of electronic transmission shall be deemed to be an original signature
hereto.

 

8. Consistent
Changes. The Loan Documents are each hereby amended wherever and to the extent necessary to reflect the changes described
above.

 

9. Ratification.
Borrower hereby restates, ratifies and reaffirms each and every term and condition set forth in the Loan Agreement, as amended hereby,
and the other Loan Documents effective as of the date hereof.

 

10. Integration.
This Modification, together with the Loan Agreement and the other Loan Documents, incorporates all negotiations of the parties hereto
with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject
matter hereof.

 

[Signature
page follows]

 

    	7

    	 

    

 

	 	BORROWER:
	 	 
	 	STREAMLINE HEALTH SOLUTIONS, INC.
	 	 
	 	By:	/s/ Thomas J. Gibson
	 	Name:	 Thomas J. Gibson
	 	Title:	 Senior Vice President, Chief Financial Officer and Secretary
	 	 
	 	STREAMLINE HEALTH, LLC (F/K/A STREAMLINE HEALTH, INC.)
	 	 
	 	By:	/s/ Thomas J. Gibson
	 	Name:	Thomas J. Gibson
	 	Title:	Treasurer
	 	 
	 	STREAMLINE PAY & BENEFITS, LLC
	 	 
	 	By:	/s/ Thomas J. Gibson
	 	Name:	Thomas J. Gibson
	 	Title:	Treasurer
	 	 
	 	AVELEAD CONSULTING, LLC
	 	 
	 	By:	/s/ Thomas J. Gibson
	 	Name:	Thomas J. Gibson
	 	Title:	 Treasurer
	 	 
	 	STREAMLINE CONSULTING SOLUTIONS, LLC
	 	 
	 	By:	/s/ Thomas J. Gibson
	 	Name:	Thomas J. Gibson
	 	Title:	Treasurer

 

[Signature page to First Modification to 2nd A&R
LSA]

 

    	 

    	 

    

 

	 	BANK:
	 	 
	 	WESTERN ALLIANCE BANK
	 	 
	 	By:	/s/ Blake Reid
	 	Name:	Blake Reid
	 	Title:	Senior Director

 

[Signature page to Second Modification to 2nd A&R
LSA]

 

    	 

    	 

    

 

Exhibit
b

Compliance
Certificate

 

	TO:	WESTERN
                                            ALLIANCE BANK, an Arizona corporation

 

	FROM:	Streamline
                                            Health Solutions, Inc., a Delaware corporation and Streamline Health, Inc., an Ohio corporation,
                                            Streamline Pay & Benefits, LLC, a Delaware limited liability company, Avelead Consulting,
                                            LLC, Streamline Consulting Solutions, LLC

 

The
undersigned authorized officer of Borrower hereby certifies that in accordance with the terms and conditions of the Amended and Restated
Loan and Security Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the period
ending _______________ with all required covenants except as noted below and (ii) all representations and warranties of Borrower stated
in the Agreement are true and correct as of the date hereof. Attached herewith are the required documents supporting the above certification.
The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently
applied from one period to the next except as explained in an accompanying letter or footnotes.

 

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

 

	Reporting
    Covenant	 	Required	 	Complies
	 	 	 	 	 	 
	Annual
    financial statements (CPA Audited)	 	FYE
    within 180 days	 	Yes	No
	 	 	 	 	 	 
	Monthly
    financial statements and a Compliance Certificate	 	Monthly
    within 30 days 	 	Yes	No
	 	 	 	 	 	 
	10K
    and 10Q	 	(as
    applicable)	 	Yes	No
	 	 	 	 	 	 
	Annual
    operating budget, sales projections and operating plans approved by board of directors	 	Annually
    no later than 30 days prior to the beginning of each fiscal year	 	Yes	No
	 	 	 	 	 	 
	A/R
    & A/P Agings, Borrowing Base Certificate, Deferred Revenue Schedule and Monthly Recurring Revenue Report	 	Monthly
    within 30 days	 	Yes	No
	 	 	 	 	 	 
	A/R
    Audit	 	Initial
    and Annual	 	Yes	No
	 	 	 	 	 	 
	Deposit
    balances with Bank	 	$
    ___________________	 	 	 
	Deposit
    balance outside Bank	 	$
    ___________________	 	 	 

 

    	 

    	 

    

 

	Financial
    Covenant	 	Required	 	Actual	 	Complies
	 	 	 	 	 	 	 	 
	Minimum
    Cash	 	$2,000,000	 	$_____
    	 	Yes	No
	 	 	 	 	 	 	 	 
	Maximum
                                            Debt to ARR Ratio

     
	 	(a)
    October 31, 2022, 0.80 to 1.00, (b) January 31, 2023, 0.70 to 1.00, (c) April 30, 2023, 0.65 to 1.00, (d) July 31, 2023, 0.60 to
    1.00, (e) October 31, 2023, 0.55 to 1.00 and (f) January 30, 2024, 0.50 to 1.00.	 	___
    to 1.00	 	Yes	No
	 	 	 	 	 	 	 	 
	Maximum
    Debt to Adjusted EBITDA Ratio	 	(a)
    April 30, 2024, 3.50 to 1.00 and (b) July 31, 2022 and the last day of each quarter thereafter, 2.00 to 1.00	 	___
    to 1.00	 	Yes	No
	Fixed
    Charge Coverage Ratio	 	April
    30, 2024 and the last date of each quarter thereafter, 1.20 to 1.00	 	___
    to 1.00	 	Yes	No

 

Intellectual Property Updates 

 

 Attached as Exhibit A is a listing of listing of any applications or registrations of intellectual property rights filed with the United States Patent and Trademark Office, including the date of such filing and the registration or application numbers, if any, since the date of the last such Compliance Certificate delivered to Bank. 

 

Updates
to Schedules

 

Attached
as Exhibit A are updated Schedules updating any information set forth in such Schedules since the date of the last such Compliance Certificate
delivered to Bank.

 

    	 

    	 

    

 

	Comments Regarding Exceptions: See Attached.	 	BANK USE ONLY
	 	 	 
	 	 	Received by: 	 
	Sincerely,	 	AUTHORIZED SIGNER
	 	 	 
	 	 	Date: 	      
	 	 	 
	 	 	 
	 	 	Verified: 	 
	SIGNATURE	 	AUTHORIZED SIGNER
	 	 	 
	 	 	Date: 	 
	TITLE	 	 
	 	 	Compliance Status                  Yes          No
	 	 	 
	DATE	 	 

 

    	 

    	 

    

 

EXHIBIT
A TO COMPLIANCE CERTIFICATE

 

Intellectual
Property Updates; updates to Schedules

 

[See
attached].

 

    	 

    	 

    

 

Exhibit
B

 

REVOLVING
ADVANCE REQUEST

(To
be submitted no later than 3:00 PM to be considered for same day processing)

 

	To:	Western
    Alliance Bank, an Arizona corporation	 

 

	 	 	 

 

	Date:	 	 

 

	From:	 	 
	 	Borrower’s
Name	 

 

	 	 	 
	 	Authorized
Signature	 

 

	 	 	 
	 	Authorized
Signer’s Name (please print)	 

 

	 	 	 
	 	Phone
Number	 

 

	To
    Account #	 	 

 

Borrower
hereby requests funding in the amount of $ _______ in accordance with the Revolving Advance as defined in the Second Amended and Restated
Loan and Security Agreement dated August 26, 2021.

 

All
representations and warranties of Borrower stated in the Second Amended and Restated Loan and Security Agreement are true, correct and
complete in all material respects as of the date of this Revolving Advance Request [and as updated in the attached supplement to the
Schedules]; provided that those representations and warranties expressly referring to another date shall be true, correct and
complete in all material respects as of such date.

 

Capitalized
terms used herein and not otherwise defined have the meanings set forth in the Amended and Restated Loan and Security Agreement.Exhibit
10.1

 

CONFIDENTIAL
SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

 

This
Confidential Separation Agreement and General Release of All Claims, dated December 1, 2022 (the “Agreement”), is
made pursuant to that certain Change in Control Severance Agreement effective as of March 1, 2020 (the “Severance Agreement”)
entered into by and between Ronald Andrews (“Employee”) on the one hand, and Oncocyte Corporation (the “Company”),
on the other. This Agreement is entered into in consideration for and as condition precedent to the Company providing separation benefits
to Employee pursuant to the Severance Agreement. It is understood and agreed that the Company is not otherwise obligated to provide such
benefits under the terms of the Severance Agreement and that the Company is doing so as a direct result of Employee’s willingness
to agree to the terms hereof. Collectively, Employee and the Company shall be referred to as the “Parties.”

 

1.
Employee was formerly employed by the Company. Employee’s employment with the Company ended effective December 1, 2022 (the “Termination
Date”).

 

2.
The purpose of this Agreement is to resolve any and all disputes or claims that Employee may have relating to Employee’s employment
with the Company, and the termination thereof (the “Disputes”). The parties desire to resolve the above-referenced
Disputes, and all issues raised by the Disputes, without the further expenditure of time or the expense of contested litigation. Additionally,
the Parties desire to resolve any known or unknown claims that Employee may have as more fully set forth below. For these reasons, they
have entered into this Agreement.

 

3.
Employee acknowledges and agrees that Employee has received all wages due to Employee through the Termination Date, including but not
limited to all accrued but unused vacation, bonuses, commissions, options, benefits, and monies owed by the Company to Employee. Employee
further agrees and acknowledges that Employee has been fully paid and reimbursed for any and all business expenses which Employee incurred
during his/her employment with the Company.

 

4.
The Company expressly denies any violation of any federal, state or local statute, ordinance, rule, regulation, policy, order or other
law. The Company also expressly denies any liability to Employee. Nothing contained herein is to be construed as an admission of liability
on the part of the Company hereby released, by whom liability is expressly denied. accordingly, while this Agreement resolves all issues
referenced herein, it does not constitute an adjudication or finding on the merits of the allegations in the disputes and it is not,
and shall not be construed as, an admission by the Company of any violation of federal, state or local statute, ordinance, rule, regulation,
policy, order or other law, or of any liability alleged in the disputes.

 

    	1

     

    

 

5.
In consideration of and in return for the promises and covenants undertaken by the Company and Employee herein and the releases given
by Employee herein, and in exchange for Employee timely executing (and not revoking) this Agreement:

 

a.
In addition to any compensation otherwise due Employee for actual work performed up to and including the Termination Date, Employee shall
receive the following benefits:

 

(i)
A payment in the total amount of Five Hundred Thousand Dollars and Zero Cents ($500,000) (minus applicable taxes, withholdings and deductions),
payable in substantially equal installments over the twelve (12) month period following the Termination Date in accordance with the Company’s
regular payroll practices; provided, however, that the first payment shall be made on the first regularly scheduled payroll date on or
following the thirtieth (30th) day following the Termination Date and shall include payments of any amounts that would otherwise be due
prior thereto;

 

(ii)
A payment for twelve (12) months of premium costs of group health plan continuation coverage under the Consolidated Omnibus Budget Reconciliation
Act in the total amount of $40,128 (minus applicable taxes, withholdings and deductions), payable in a lump sum payment on the first
regularly scheduled payroll date on or following the thirtieth (30th) day following the Termination Date;

 

(iii)
Partial acceleration and vesting of Employee’s time-based unvested stock option and restricted stock unit awards that were granted
pursuant to the Company’s Amended and Restated 2018 Equity Incentive Plan, as amended from time to time (the “Equity Plan”)
and scheduled to vest based solely on the passage of time during the twelve (12) month period following the Termination Date; and

 

(iv)
(A) 281,250 unvested options, granted under the Equity Plan and Incentive Stock Option Agreement effective as of March 15, 2022, as amended
July 28, 2022, which were granted to Employee in respect of Employee’s 2022 annual bonus (the “Bonus Award”),
shall vest as of the Termination Date and shall be exercisable in accordance with the terms of the Equity Plan and Bonus Award, and the
remaining unvested stock options granted pursuant to the Bonus Award shall automatically be forfeited without consideration, (B) 200,000
unvested options, granted under the Equity Plan and Incentive Stock Option Agreement effective as of March 15, 2022, as amended May 13,
2022 (the “Option Award”), shall vest as of the Termination Date and shall be exercisable in accordance with the terms
and conditions of the Equity Plan and the Option Award, and (C) 250,000 unvested restricted stock units granted under the Equity Plan
and Restricted Stock Units Award Agreement effective March 15, 2022, as amended May 13, 2022 (the “RSU Award”) shall
vest as of the Termination Date and be settled in accordance with the terms of the Equity Plan and RSU Award, and the remaining unvested
restricted stock units granted under the RSU Award shall be automatically forfeited without consideration.

 

As
a condition to receiving and continuing to receive the payments and benefits under this Paragraph 5.a., Employee must (i) within but
not later than twenty-one (21) days after the Termination Date, execute (and not revoke) and deliver to the Company this Agreement and
(ii) remain in full compliance with this Agreement and the Surviving Provisions (as defined below). Employee shall not be entitled to
accrue any additional leave or other benefits subsequent to the Termination Date.

 

b.
Any tax liabilities resulting from or arising out of the benefits to Employee referred to above shall be the sole and exclusive responsibility
of Employee. Employee agrees to indemnify and hold the Company and the others released herein harmless from and for any tax liability
(including, but not limited to, assessments, interest, and penalties) imposed on the Company by any taxing authority on account of the
Company failing to withhold for tax purposes any amount from the benefits made as consideration of this Agreement.

 

c.
Employee acknowledges and agrees that (i) any equity granted pursuant to the Equity Plan that is unvested as of the Termination Date
(after giving effect to Paragraph 5.a.(iii) and (iv)), shall automatically be forfeited as of the Termination Date for no consideration
and (ii) any equity that is vested as of the Termination Date shall be subject to the terms and conditions of the Equity Plan and applicable
award agreement(s).

 

    	2

     

    

 

6.
Except for any rights created by this Agreement, in consideration of and in return for the promises and covenants undertaken herein by
the Company, and for other good and valuable consideration, receipt of which is hereby acknowledged:

 

a.
Employee does hereby acknowledge full and complete satisfaction of and does hereby release, absolve and discharge the Company, and each
of its parents, subsidiaries, divisions, related companies and business concerns, past and present, as well as each of its partners,
trustees, directors, members, officers, agents, attorneys, servants and employees, past and present, and each of them (hereinafter collectively
referred to as “Releasees”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits,
causes of action, grievances, wages, vacation payments, severance payments, obligations, commissions, overtime payments, debts, profit
sharing claims, expenses, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether
known or unknown to Employee which Employee now owns or holds or has at any time owned or held as against Releasees, or any of them,
including specifically but not exclusively and without limiting the generality of the foregoing, any and all claims, demands, grievances,
agreements, obligations and causes of action, known or unknown, suspected or unsuspected by Employee: (1) arising out of or in any way
connected with the Disputes; or (2) arising out of Employee’s employment (or termination thereof) with the Company (including,
but not limited to, under Employee’s Employment Agreement with the Company, dated as of June 4, 2019 (the “Employment
Agreement” and that certain compensation plan adopted by the Board of Directors of the Company (the “Board”)
on March 8, 2022 as referenced in the Company’s Form 8-K dated March 8, 2022); or (3) arising out of or in any way connected with
any claim, loss, damage or injury whatever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the
part of the Releasees, or any of them, committed or omitted on or before the Effective Date hereof. Additionally, Employee in any future
claims may not use against Releasees as evidence any acts or omissions by or on the part of the Releasees, or any of them, committed
or omitted on or before the Effective Date hereof, and no such future claims may be based on any such acts or omissions. Also without
limiting the generality of the foregoing, Employee specifically releases the Releasees from any claim for attorneys’ fees. EMPLOYEE
ALSO SPECIFICALLY AGREES AND ACKNOWLEDGES EMPLOYEE IS WAIVING ANY RIGHT TO RECOVERY BASED ON LOCAL, STATE OR FEDERAL EMPLOYMENT LAWS
OR REGULATIONS, OR ANY LOCAL, STATE, OR FEDERAL AGE, SEX, PREGNANCY, RACE, COLOR, NATIONAL ORIGIN, MARITAL STATUS, RELIGION, VETERAN
STATUS, DISABILITY, SEXUAL ORIENTATION, MEDICAL CONDITION OR OTHER ANTI-DISCRIMINATION LAWS, INCLUDING, WITHOUT LIMITATION, TITLE VII
OF THE CIVIL RIGHTS ACT OF 1964, THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE EQUAL PAY ACT, THE AMERICANS WITH DISABILITIES ACT, THE
FAMILY AND MEDICAL LEAVE ACT, THE EMPLOYEE RETIREMENT INCOME SECURITY ACT, THE WORKER ADJUSTMENT AND RETRAINING ACT, THE FAIR LABOR STANDARDS
ACT, AND ANY OTHER SECTION OF THE CALIFORNIA LABOR OR GOVERNMENT CODE, THE INDUSTRIAL WELFARE COMMISSION WAGE ORDERS, ALL AS AMENDED,
WHETHER SUCH CLAIM BE BASED UPON AN ACTION FILED BY EMPLOYEE OR BY A GOVERNMENTAL AGENCY. This release does not release claims that cannot
be released as a matter of law. Employee is not (i) waiving Employee’s right to file a charge, testify, assist, or cooperate with
the Equal Employment Opportunity Commission (EEOC), Department of Fair Employment and Housing (DFEH) or similar governmental agency,
(ii) waiving rights or claims that may arise after the date Employee signs this Agreement, or (iii) releasing claims for unemployment
compensation benefits, workers’ compensation benefits, those claims under the Fair Labor Standards Act which cannot be waived pre-litigation
without Department of Labor or court approval, health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA),
or claims with regard to vested benefits under a retirement plan governed by the Employee Retirement Income Security Act (ERISA).

 

    	3

     

    

 

7.
Employee agrees and understands as follows: it is the intention of Employee in executing this instrument that it shall be effective as
a bar to each and every claim, demand, grievance and cause of action hereinabove specified. In furtherance of this intention, Employee
hereby expressly waives any and all rights and benefits conferred upon Employee by the provisions of section 1542 of the California Civil
Code (or any other similar state code) and expressly consents that this Agreement shall be given full force and effect according to each
and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of action,
if any, as well as those relating to any other claims, demands and causes of action hereinabove specified. Section 1542 provides:

 

A
general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor
at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the
debtor or released party.

 

Having
been so apprised, Employee nevertheless hereby voluntarily elects to and does waive the rights described in Civil Code section 1542 and
elects to assume all risks for claims that now exist in Employee’s favor, known or unknown, that are released under this Agreement.

 

8.
Employee acknowledges and agrees that (a) the following Sections of the Employment Agreement remain in full force and effect and will
continue to bind Employee following the Termination Date in accordance with their terms: Section 3 (Competitive Activities), Section
4 (Inventions/Intellectual Property/Confidential Information), Section 6 (Turnover of Property and Documents on Termination, Section
7 (Resignation as a Director on Termination of Employment), Section 8 (Arbitration), Section 9 (Severability), Section 10 (Agreement
Read and Understood), Section 11 (Complete Agreement, Modification), Section 12 (Governing Law), Section 13 (Assignability), Section
14 (Survival), and Section 15 (Notices), (b) the entirety of the Employee Confidential Information and Inventions Assignment Agreement
by and between the Employee and the Company, effective July 1, 2019 shall remain in full force and effect and will continue to bind Employee
following the Termination Date in accordance with its terms, and (c) Section 3.6 (Covenants) of the Severance Agreement will continue
to bind Employee following the Termination Date in accordance with its term (collectively, all of the foregoing, the “Surviving
Provisions”). Any disputes arising under this Agreement, under the Surviving Provisions, or otherwise arising between Employee,
on the one hand, and any of the Releasees, on the other hand, shall be resolved in accordance with the dispute resolution terms provided
in Sections 8 of the Employment Agreement.

 

9.
Employee acknowledges and agrees that as of Employee’s Termination Date Employee will automatically be deemed to have resigned
from the Board and from any and all other positions and/or titles with the Company and agrees to execute any and all documentation the
Company requests to effectuate the foregoing.

 

10.
In the event a government agency files or pursues a charge or complaint relating to Employee’s employment with the Company and/or
the disputes, Employee agrees not to accept any monetary or other benefits arising out of the charge or complaint.

 

    	4

     

    

 

11.
Employee agrees that Employee will not, whether in private or in public, whether orally or in writing, directly or indirectly, in public
or in private, make, publish, encourage, ratify, or authorize, or aid, assist, encourage, or direct any other person or entity in making
or publishing, any statements that in any way (i) defame, malign, disparage, or impugn the character, integrity, or ethics of the Releasees
(ii) portray any of the Releasees in a negative light, or (iii) damage the image or reputation of any of the Releasees. For avoidance
of doubt, nothing in this Paragraph 11 shall be construed in a manner that would violate any law. The Company agrees that it will instruct
its senior executives and board members not to make or publish negative or disparaging remarks that in any way relate to Employee. Nothing
in this Agreement prevents Employee from discussing or disclosing information about unlawful acts in the workplace, such as harassment
or discrimination or any other conduct that Employee has reason to believe is unlawful.

 

12.
If any provision of this Agreement or application thereof is held invalid, the invalidity shall not affect other provisions or applications
of the Agreement which can be given effect without the invalid provision or application. To this end, the provisions of this Agreement
are severable.

 

13.
Employee agrees and understands that this Agreement may be treated as a complete defense to any legal, equitable, or administrative action
that may be brought, instituted, or taken by Employee, or on Employee’s behalf, against the Company or the Releasees, and shall
forever be a complete bar to the commencement or prosecution of any claim, demand, lawsuit, charge, or other legal proceeding of any
kind against the Company and the Releasees.

 

14.
This Agreement and all covenants and releases set forth herein shall be binding upon and shall inure to the benefit of the respective
Parties hereto, their legal successors, heirs, assigns, partners, representatives, parent companies, subsidiary companies, agents, attorneys,
officers, employees, directors and stockholders.

 

15.
The Parties hereto acknowledge each has read this Agreement, that each fully understands its rights, privileges and duties under the
Agreement, that each has had an opportunity to consult with an attorney of its choice and that each enters this Agreement freely and
voluntarily.

 

16.
This Agreement may not be released, discharged, abandoned, changed or modified in any manner, except by an instrument in writing signed
by Employee and an officer of the Company. The failure of any party to enforce at any time any of the provisions of this Agreement shall
in no way be construed as a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof
or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held
to be a waiver of any other or subsequent breach.

 

17.
This Agreement and the provisions contained herein shall not be construed or interpreted for or against any party hereto because that
party drafted or caused that party’s legal representative to draft any of its provisions.

 

18.
Employee acknowledges Employee may hereafter discover facts different from, or in addition to, those Employee now knows or believes to
be true with respect to the claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, wages, obligations,
debts, expenses, damages, judgments, orders and liabilities herein released, and agrees the release herein shall be and remain in effect
in all respects as a complete and general release as to all matters released herein, notwithstanding any such different or additional
facts.

 

19.
The undersigned each acknowledge and represent that no promise or representation not contained in this Agreement has been made to them
and acknowledge and represent that this Agreement and the Severance Agreement contains the entire understanding between the parties and
contains all terms and conditions pertaining to the compromise and settlement of the subjects referenced herein. The undersigned further
acknowledge that the terms of this Agreement are contractual and not a mere recital.

 

    	5

     

    

 

20.
Employee expressly acknowledges, understands and agrees that this Agreement includes a release covering all legal rights or claims under
the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 626, as amended), and all other federal, state, and local laws regarding
age discrimination, whether those claims are presently known to Employee or hereafter discovered. The terms and conditions of Paragraphs
20 through 22 apply to and are part of the waiver and release of ADEA claims under this Agreement. Company hereby advises Employee in
writing to discuss this Agreement with an attorney before signing. Employee acknowledges the Company has provided Employee at least twenty-one
(21) days within which to review and consider this Agreement before signing it. If Employee elects not to use all twenty-one
(21) days, then Employee knowingly and voluntarily waives any claim that Employee was not in fact given that period of time or did not
use the entire twenty-one (21) days to consult an attorney and/or consider this Agreement.

 

21.
Within three (3) calendar days of signing and dating this Agreement, Employee shall deliver the signed original of this
Agreement to the General Counsel of the Company. However, the Parties acknowledge and agree that Employee may revoke this Agreement for
up to seven (7) calendar days following Employee’s execution of this Agreement and that it shall not become effective
or enforceable until the revocation period has expired. The Parties further acknowledge and agree that such revocation must be in writing
addressed to and received by the General Counsel of the Company not later than midnight on the seventh day following execution of this
Agreement by Employee. If Employee fails to timely execute this Agreement or revokes this Agreement under this Paragraph, this Agreement
shall not be effective or enforceable and Employee will not receive the benefits described above, including those described in paragraph
5.

 

22.
If Employee does not revoke this Agreement in the timeframe specified at Paragraph 21 above, the Agreement shall be effective at 12:00:01
a.m. on the eighth day after it is signed by Employee (the “Effective Date”).

 

23.
This Agreement is intended to be exempt from the requirements of section 409A of the Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated theretunder (“Section 409A”) and will be interpreted accordingly. While it is intended
that all payments and benefits provided under this Agreement to Employee or on behalf of Employee will be exempt from Section 409A, the
Company makes no representation or covenant to ensure that such payments and benefits are exempt from or compliant with Section 409A.
The Company will have no liability to Employee or any other party if a payment or benefit under this Agreement is challenged by any taxing
authority or is ultimately determined not to be exempt from or compliant with Section 409A. Each payment made under this Agreement will
be treated as a separate payment for purposes of Section 409A and the right to a series of installment payments under this Agreement
is to be treated as a right to a series of separate payments.

 

24.
This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original and such counterparts
shall together constitute one and the same Agreement.

 

25.
This Agreement shall be construed in accordance with, and be deemed governed by the laws of the State of California, without reference
to the conflict of law provisions thereof.

 

26.
The Company executes this Agreement for itself and on behalf of all other respective Releasees.

 

Employee
has read the foregoing Confidential Separation Agreement and General Release of All Claims, and Employee accepts and agrees to the provisions
contained therein and hereby executes it voluntarily and with full understanding of its consequences.

 

PLEASE
READ CAREFULLY. THIS AGREEMENT CONTAINS A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

	Dated:	12/02/2022	 	/s/
    Ronald Andrews
	 	 	 	Ronald
    A. Andrews
	 	 	 	 
	 	 	 	Oncocyte
    Corporation
	 	 	 	 
	Dated:	12/02/2022	 	/s/
    Andy Arno
	 	 	 	Name:	Andy
    Arno
	 	 	 	Title:	Chairman
    of the Board of Directors

 

Signature
Page to Confidential Separation Agreement and General Release of All Claims – Ronald A. Andrews

 

    	6

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