Document:

Cash Bonus Plan

 Exhibit 10.1 
 THE TRIZETTO GROUP, INC. 
 CASH BONUS PLAN 
  

	I.	PURPOSE 

 The purpose of The TriZetto Group, Inc. Cash Bonus Plan is to
assist the Company to recruit, retain, motivate and reward employees who contribute to the achievement of the Company’s performance objectives. 
  

	II.	EFFECTIVE DATE 

 The Plan originally was adopted effective as of
January 1, 2005, and Awards under the Plan may be made with respect to the 2005 Plan Year and each subsequent Plan Year. 
  

	III.	DEFINITIONS 

 Capitalized terms used in this Plan shall have the meanings
set forth below: 
  

	 	A.	“Award” shall mean a cash bonus payable to a Participant with respect to a Plan Year pursuant to this Plan. 

  

	 	B.	“Business Unit” shall mean an operational unit of the Company as defined by the CEO or his or her designee from time to time. 

  

	 	C.	“CEO” shall mean the Chief Executive Officer of the Company. 

  

	 	D.	“CFO” shall mean the Chief Financial Officer of the Company. 

  

	 	E.	“Company” shall mean The TriZetto Group, Inc. 

  

	 	F.	“Company Targets” shall mean the financial and other performance objectives with respect to the Company that are recommended by the CEO and/or CFO and approved by the
Committee for a Plan Year. 

  

	 	G.	“Committee” shall mean the compensation committee of the board of directors of the Company. 

  

	 	H.	“COO” shall mean the Chief Operating Officer of the Company. 

  

	 	I.	“Funding Percentage” shall mean the percentage determined in accordance with this Plan based on the Company’s achievement of the Company Targets for a Plan Year.

  

	 	J.	“Guidelines” shall mean the guidelines approved by the Committee with respect to a Plan Year to provide for the administration of the Plan, including the method by which
cash bonuses will be determined for such Plan Year. 

  

	 	K.	“Managing Officer” shall mean as follows: (i) the “Managing Officer” of a Participant in charge of a Business Unit shall be such Participant’s
immediate supervisor; (ii) the “Managing Officer” of a Participant assigned to an SSU (other than the Senior Vice President in charge of such SSU) shall be the Senior Vice President in charge of such SSU (or such officer’s
designee). 

  

	 	L.	“Participant” shall mean an employee of the Company to whom an opportunity for a cash bonus hereunder has been given under Article VI or VII. 

  

	 	M.	“Plan” shall mean The TriZetto Group, Inc. Cash Bonus Plan. 

	 	N.	“Plan Year” shall mean each 12-month period beginning on January 1 and ending on December 31. 

  

	 	O.	“SSU” shall mean a Shared Support Unit of the Company. 

  

	 	P.	“Target Percentage” shall mean the percentage of each Participant’s base salary as determined in accordance with this Plan representing such Participant’s target
bonus potential. 

  

	IV.	ADMINISTRATIVE AND INTERPRETATION 

 A. The Plan shall be
administered by the Committee or its designee. The Committee shall have sole and absolute discretion to construe and interpret the Plan and any instrument or agreement related thereto, including without limitation, the power to construe and
interpret doubtful or contested terms herein and therein, and, subject to the provisions set forth herein, to prescribe, amend and rescind rules and regulations and make all other determinations necessary or desirable for the Plan’s
administration. Notwithstanding anything herein to the contrary, the Committee must approve all Awards under this Plan to any officer of the Company that is subject to the reporting requirements of Section 16 of the Securities and Exchange Act
of 1934, as amended. 
 B. Notwithstanding any provision of law, or any explicit or implicit provision of this document, any action taken, or
finding, interpretation, ruling or decision made by the Committee in the exercise of any of its rights, powers, authority or duties under this Plan shall be final and conclusive as to all parties, including without limitation, all Participants and
former Participants, regardless of whether the Committee or one or more of its members may have an actual or potential conflict of interest with respect to the subject matter of the action, finding, interpretation, ruling or decision. No final
action, finding, interpretation, ruling or decision of the Committee shall be subject to de novo review in any judicial proceeding. No final action, finding, interpretation, ruling or decision of the Committee may be set aside unless it is held to
have been arbitrary and capricious by a final judgment of a court having jurisdiction with respect to the issue. Nothing in the Plan shall be deemed to give any officer or employee of the Company, or his or her legal representatives or assigns, any
right to participate in the Plan, except to such extent, if any, as the Committee may authorize pursuant to the provisions of the Plan. 
 C.
The Committee shall have the sole and absolute discretion to determine an individual’s eligibility to participate, whether the performance of a Participant warrants an Award pursuant to the Plan and any instrument or agreement relating thereto,
and the amount of any such Award. However, with respect to employees other than the CEO, the CEO may recommend to the Committee whether each such employee is eligible to participate, whether the performance of such employee warrants an Award and the
amount of such Award. 
 D. Notwithstanding anything herein to the contrary, terms of participation in the Plan by employees of the Company
will be at the absolute and sole discretion of the Committee and shall be a matter for action by the Committee only. 
  

	V.	ELIGIBLE EMPLOYEES 

 A. Near the beginning of each Plan
Year, the CEO (or his or her designee) shall submit a list to the Committee of those employees of the Company whom he or she believes should be participating in the Plan for such Plan Year. The Committee shall then determine which of these employees
shall be Participants with respect to such Plan Year. Members of the Committee and any member of the Board who is not an employee of the Company shall not be eligible to participate in the Plan. 
 B. An employee of the Company who becomes eligible during a Plan Year to participate in the Plan may become a Participant for such Plan Year, in the
discretion of the CEO, COO or CFO, but may only be eligible for an Award calculated pro rata based upon the period of actual service during such Plan Year, unless otherwise specified by the CEO, COO, or CFO. 
  

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	VI.	TARGET AWARDS 

 A. Target Percentage. Near the
beginning of each Plan Year, the Committee shall, with the assistance of the CEO (or his or her designee), assign a Target Percentage for each Participant. The Target Percentage for each Participant may be determined based on such Participant’s
title or salary grade level. Each Participant’s Target Percentage for a Plan Year shall be set forth in the Guidelines for such Plan Year. Each Participant who receives a promotion during a Plan Year to a position that is generally recognized
to have a higher Target Percentage, will be assigned a Target Percentage commensurate with his or her new position. 
 B. Company Targets
and Funding Percentage. Near the beginning of each Plan Year, the Committee shall, with the assistance of the CEO (or his or her designee), establish one or more Company Targets for such Plan Year. Different Company Targets may be established
for different groups of Participants. For example, the Committee may establish Company Targets for Participants assigned to a particular Business Unit that include financial goals applicable only to such Business Unit, as well as financial
objectives related to the Company as a whole. Company Targets may include, without limitation, financial performance metrics such as revenue, EBITDA, Adjusted EBITDA, net income, earnings per share, free cash flow and revenue growth, as well as
financial targets applicable to a Business Unit. 
 Near the beginning of each Plan Year, the Committee shall also establish a Funding Percentage schedule
for such Plan Year that will specify different percentages for various levels of achievement regarding a Company Target. For example, the Funding Percentage schedule for a Plan Year could specify a Funding Percentage of 50% for the Company’s
earnings per share target in the event the Company achieves only 80% of such target. If the Company achieves 90% of the earnings per share target, this schedule could specify a Funding Percentage of 80%. The Committee shall also establish weightings
for each Company Target in the event there is more than one Company Target for a Plan Year, so that a single weighted Funding Percentage can be determined with respect to each Participant. 
 C. Personal Objectives. Unless otherwise specified by the Committee, personal objectives will be established near the beginning of each Plan Year
for all Participants, the achievement of which will impact the amount of each Participant’s Award. Such personal objectives will be documented in such form determined by the CEO (or his or her designee), stated in specific and measurable terms,
and related to activities that will improve the Company’s operating results. Personal objectives for each Participant shall be established by such Participant’s Managing Officer. 
 D. CEO Award. Notwithstanding the criteria set forth in this Article VI (or anything else to the contrary in this Plan), the Committee shall
establish, in its sole discretion, such targets and other criteria for determining the potential and actual Award provided to the CEO for any Plan Year. Such targets and other criteria shall be included in the Guidelines for a Plan Year or such
other document(s) as the Committee shall determine in its sole discretion. 
  

	VII.	AMOUNT OF AWARDS 

 At the close of each Plan Year, the CEO (or his or her
designee) shall recommend the amount of each Award to be paid to each Participant, other than the CEO (if participating), and shall submit the recommendation to the Committee. The recommendation with respect to an Award shall be based on the
following guidelines: 
 A. Determination of Funding Percentage. The Funding Percentage for each Company Target shall be determined
based on the level of the Company’s achievement of such target as specified in the Funding Percentage schedule and as set forth in the Guidelines. If there is more than one Company Target, then a weighted Funding Percentage shall be determined
based on the weightings for each Company Target set forth in the Guidelines. 
 B. Evaluation of Personal Objectives. The personal
performance of each Participant shall then be determined based on an evaluation of such Participant’s achievement of his or her personal objectives. Participants will be evaluated with an average rating of 1, 2, 3, 4 or 5 (with 5 being the
highest or best rating). In general, Participants receiving an overall performance rating of below 3.0 will not be 

  

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entitled to any Award. Personal performance of a Participant shall be evaluated by such Participant’s Managing Officer. All recommendations for Awards
will be substantiated by appropriate documentation of performance goals and assessments. 
 C. Determination of Award. Subject to
adjustment as described below, the actual Award paid to each Participant for a Plan Year will be based on the following formula: 
 (Funding
Percentage) X (Participant’s Base Salary) X (Participant’s Target Percentage). 
 In determining the actual Award payable to a Participant, the
amount determined by this formula may be increased or decreased in the discretion of such Participant’s Managing Officer based on such officer’s evaluation of how well the Participant achieved his or her personal objectives for the Plan
Year. Notwithstanding anything to the contrary in this Plan, if a Participant’s employment with the Company terminates for any reason prior to the date his or her Award is payable by the Company, he or she will not be entitled to any portion of
the Award, unless otherwise specified in the Guidelines or a written employment agreement executed by the CEO, COO or CFO. 
 D. Committee
Approval and CEO Award. After the CEO (or his or her designee) makes his or her recommendation, the Committee shall meet for the purpose of reviewing the amounts and approving the payment of Awards. The Committee shall determine the amount of
the CEO’s Award, if any, upon the Guidelines for the Plan Year and/or such other factors as the Committee, in its sole discretion, shall determine. 
  

	VIII. 	FORM AND SETTLEMENT OF AWARDS 

 A. Unless otherwise
specified in the Guidelines, Awards shall be paid in cash by the Company in a single lump-sum payment. The Committee shall have complete and absolute authority to determine the settlement of each individual Award. Awards shall be paid at such time
as determined by the Committee or its designee, but in no case later than March 15 following the close of such Plan Year, subject to restrictions outlined in the Guidelines for such Plan Year. 
 B. The Company shall calculate the deductions from the Award paid under the Plan for any taxes required to be withheld by federal, state or local
government and shall cause them to be withheld. 
  

	IX.	LIMITATIONS 

 A. No Participant or any other person shall
have any interest in the Company or any affiliates thereof or in any fund or specific asset or assets of the Company or any affiliate thereof by reason of an Award. No right or benefit provided in this Plan shall be transferable by the Participant.
No right or benefit under this Plan shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by any creditor or beneficiary of the Participant. Any attempt to anticipate, alienate,
sell, assign, pledge, encumber, or charge the same shall be void. No right or benefit under this Plan shall in any manner be liable for or subject to any debts, contracts, liabilities or torts of the person entitled to such benefits. If any
Participant or any beneficiary becomes bankrupt or attempts to anticipate, alienate, sell, assign, pledge, encumber or charge any right or benefit under this Plan, that right or benefit shall, in the discretion of the Committee, cease. 

B. Nothing in this Plan shall be construed: 
 1. To give any employee of the Company or an affiliate thereof any right to be designated a Participant in the Plan; 
 2. To give a Participant any right to receive an Award, except in accordance with the terms of this Plan; 
 3. To limit in any way the right of the Company or any affiliate thereof to terminate a Participant’s employment at any time and for any reason; 
  

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 4. To evidence any agreement or understanding by the Company, expressed or implied, that
the Company will employ a Participant in any particular position or for any particular remuneration or time; or 
 5. To give
a Participant or any other person claiming through him or her any interest or right under this Plan other than that of an unsecured general creditor of the Company. 
 C. Unless expressly provided otherwise in the Guidelines or in a written agreement executed on behalf of the Company by the CEO, COO or CFO, Participants shall forfeit without payment all rights with respect to an
Award in the following circumstances: 
 1. If a Participant’s employment is terminated for any reason; or 
 2. If the Participant engages in willful, deliberate or gross misconduct. 
  

	X.	NATURE OF PLAN 

 This Plan is only a general corporate commitment, and each
Participant must rely upon the general credit of the Company for the fulfillment of its obligations hereunder. Under all circumstances, the rights of Participants to any asset held by the Company will be no greater than the rights expressed in this
Plan. Nothing contained in this Plan shall constitute a guarantee by the Company that its assets will be sufficient to pay any benefits under this Plan or would place the Participant in a secured position ahead of general creditors of the Company;
the Participants are only unsecured creditors of the Company with respect to their Plan benefits and the Plan constitutes a mere contingent promise by the Company to make payments in the future if earned pursuant to the terms of the Plan and the
Guidelines. Although the Company may establish a trust to accumulate assets to fulfill its obligations, the Plan and the trust, if so established, will not create any lien, claim, encumbrance, right, title or other interest of any kind whatsoever in
any Participant in any asset held by the Company, contributed to a trust or otherwise designated to be used for payment of any of its obligations created in this Plan. No specific assets of the Company have been or shall be set aside prior to
payment of an Award, or shall in any way be transferred to the trust or shall be pledged in any way for the performance of the Company’s obligations under this Plan which would remove such assets from being subject to the general creditors of
the Company. 
  

	XI.	AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN 

 The Committee may at any
time amend, suspend or terminate the Plan, in whole or in part, except that no amendment, suspension or termination shall reduce any benefits that are payable to a Participant prior to the date of such amendment, suspension or termination, except as
provided in Section IX of this Plan. 
  

	XII.	SUCCESSORS AND ASSIGNS 

 The provisions of the Plan shall be binding upon
the Company and its successors and upon the Participants and their legal representatives. 
  

	XIII.	UNFUNDED ARRANGEMENT 

 It is intended that this Plan shall be unfunded for
federal tax purposes and for purposes of Title 1 of the Employee Retirement Income Security Act of 1974, as amended. 
  

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 The TriZetto Group, Inc. 
 Cash Bonus Plan 
 Guidelines for the 2006 Plan Year 
 These Guidelines set forth the guidelines of the Plan for the 2006 Plan Year. Capitalized terms used in these Guidelines but not defined herein shall have the meanings
ascribed to them in the Plan. 
 Participation. 
 Participants eligible under the Plan for the 2006 Plan Year shall be those employees of the Company with salary grade levels listed on Exhibit A to these Guidelines. Upon the recommendation of the CEO (or his or her designee), the
Committee may approve the entry of additional Participants in the Plan effective on the first day of any month of the Plan Year following their promotion or employment date. Participants who enter the Plan during the Plan Year shall be eligible
for an Award under the Plan but, unless otherwise approved by the CEO, COO or CFO, may only be eligible for an Award calculated pro rata based upon the period of actual service during the Plan Year. Notwithstanding anything to the contrary herein,
no employee shall be entitled to an Award if he or she first becomes eligible during the fourth quarter of 2006. In addition, temporary employees of the Company are not eligible to participate in this Plan. Any Participant classified by the Company
as a part-time employee will only be eligible for a pro rata share of an Award based on such employee’s hours of actual service during the Plan Year. 
 Employees eligible to participate in a Company-sponsored commission or other incentive plan applicable to sales, solution architects (or sales support), account relationship managers or executives or professional consultants shall not be
eligible to receive awards under this Plan, unless otherwise approved in writing by the CEO, COO or CFO. 
 Bonus Opportunities. 
 A. Target Percentage. The Target Percentage for each Participant for the 2006 Plan Year is set forth in Exhibit A opposite such Participant’s
salary grade level. The Target Percentage is a specific percentage of the Participant’s base salary as of December 1 of the Plan Year, or such other date determined by the Committee. 
 B. Company Targets, Funding Percentage and Weightings. The Company Targets, Funding Percentage schedule, weightings and criteria for determining
the weighted Funding Percentage for the 2006 Plan Year are set forth in Exhibit B. 
 Conflicts. 
 Any conflicts between the Plan and these Guidelines shall be resolved in favor of the Plan. Notwithstanding the preceding sentence, it is the intention of the
Committee that the Plan shall be construed broadly to accommodate the provisions and concepts embodied in these Guidelines to the extent reasonably possible. 
  

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 Exhibit A 
 The TriZetto Group, Inc. Cash Bonus Plan 
 Guidelines for the 2006 Plan Year 
 Participant Target Percentages 
  

			
	Salary Grade Level	  	 Target Percentages
 (as % of base salary)

	13	  	100
	12	  	75
	11	  	50
	10	  	36
	9	  	28
	8	  	10
	7	  	8
	6	  	7
	5	  	6
	4	  	5
	3	  	4
	2	  	3
	1	  	2

  

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 Exhibit B 
 The TriZetto Group, Inc. Cash Bonus Plan 
 Guidelines for the 2006 Plan Year 
 Company Targets, Funding Percentage Schedule and Weightings 
  

	A.	Company Targets and Weightings for Participants in each Business Unit. 

 [REDACTED] 
  

	B.	Determination of Funding Percentage. 

 The Funding Percentage shall
be determined based on the level of the Company’s achievement of each of the Company/Business Unit Targets specified above. 
 In order to determine the
weighted Funding Percentage, the Funding Percentage for the Company Targets related to [REDACTED] and [REDACTED] must be computed based on the following schedule: 
  

			
	% of Target Amount Achieved	  	Funding Percentage
	Less than 80%	  	    0%
	80%	  	  50%
	81%	  	  62%
	82%	  	  64%
	83%	  	  66%
	84%	  	  68%
	85%	  	  70%
	86%	  	  72%
	87%	  	  74%
	88%	  	  76%
	89%	  	  78%
	90%	  	  80%
	91%	  	  82%
	92%	  	  84%
	93%	  	  86%
	94%	  	  88%
	95%	  	  90%
	96%	  	  92%
	97%	  	  94%
	98%	  	  96%
	99%	  	  98%
	100%	  	100%
	101%	  	102%
	102%	  	104%
	103%	  	106%
	104%	  	108%
	105%	  	110%
	106%	  	112%
	107%	  	114%
	108%	  	116%
	109%	  	118%
	110%	  	120%
	111%	  	122%
	112%	  	124%
	113%	  	126%
	114%	  	128%
	115%	  	130%
	116%	  	132%
	117%	  	134%
	118%	  	136%
	119%	  	138%
	120%	  	140%
	121%	  	142%
	122%	  	144%
	123%	  	146%
	124%	  	148%
	125%	  	150%

  

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 In order to determine the weighted Funding Percentage, the Funding Percentage for the Company Target related to
[REDACTED] and the Business Unit Targets related to [REDACTED] and [REDACTED] must be computed based on the following schedule: 
  

			
	% of Target Amount Achieved	  	Funding Percentage
	Less than 80%	  	    0%
	80%	  	  50%
	81%	  	  62%
	82%	  	  64%
	83%	  	  66%
	84%	  	  68%
	85%	  	  70%
	86%	  	  72%
	87%	  	  74%
	88%	  	  76%
	89%	  	  78%
	90%	  	  80%
	91%	  	  82%
	92%	  	  84%
	93%	  	  86%
	94%	  	  88%
	95%	  	  90%
	96%	  	  92%
	97%	  	  94%
	98%	  	  96%
	99%	  	  98%
	100%	  	100%
	101%	  	101%
	102%	  	102%
	103%	  	103%
	104%	  	104%
	105%	  	105%

 After determining the Funding Percentage for each Company/Business Unit Target, the weighted Funding Percentage
for each Participant is calculated using the weightings for each Company/Business Unit Target specified in the table applicable to such Participant’s Business Unit. 
  

	C.	Example. 

 [REDACTED] 
  

 9Amendment to Loan and Security Agreement

 Exhibit 10.26 
 THIRD AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 THIS THIRD AMENDMENT TO LOAN AND SECURITY
AGREEMENT (this “Amendment”) is entered into this 7th day of April, 2006, by and between SILICON VALLEY BANK (“Bank”) and THRESHOLD PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”) whose address is 1300
Seaport Boulevard, Redwood City, California 94063. 
 RECITALS 
 A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of March 27, 2003, as amended by that certain Loan
Modification Agreement by and between Bank and Borrower dated as of March 31, 2004, and as further amended by that certain Loan Modification Agreement by and between Bank and Borrower dated as of March 9, 2005 (as the same may from time to
time be further amended, modified, supplemented or restated, the “Loan Agreement”). 
 B. Bank has extended credit to
Borrower for the purposes permitted in the Loan Agreement. 
 C. Borrower has requested that Bank amend the Loan Agreement to
(i) add a supplemental equipment term loan facility, and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein. 
 D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties
set forth below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be
legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall
have the meanings given to them in the Loan Agreement. 

 2. Amendments to Loan Agreement. 
 2.1 Section 2 (LOAN AND TERMS OF PAYMENT). Section 2 is amended by adding the following section immediately after Section 2.1.2 as
Section 2.1.3: 
 2.1.3 Supplemental Equipment Advances. 
 (a) Availability. Through March 31, 2007 (the “Supplemental Equipment Availability End Date”), Bank shall make
advances (each, a “Supplemental Equipment Advance” and, collectively, “Supplemental Equipment Advances”) not exceeding the Supplemental Equipment Line. Supplemental Equipment Advances will be available in two (2) tranches of
Two Million Dollars ($2,000,000) each (“Tranche One” and “Tranche Two”, respectively). A single Supplemental Equipment Advance under Tranche One (the “Tranche One Supplemental Equipment Advance”) shall be available on
the Supplemental Equipment Closing Date. Borrower shall not be required to submit invoices supporting the Tranche One Supplemental Equipment Advance. Supplemental Equipment Advances under Tranche Two (the “Tranche Two Supplemental Equipment
Advances”) shall be available through the Supplemental Equipment Availability End Date. Supplemental Equipment Advances may only be used to finance Eligible Equipment purchased within ninety (90) days (determined based upon the applicable
invoice date of such Eligible Equipment) before the date of each Supplemental Equipment Advance, and no Supplemental Equipment Advance may exceed one hundred percent (100%) of the total invoice for Eligible Equipment, excluding taxes, shipping,
warranty charges, freight discounts and installation expenses relating to such Eligible Equipment. After repayment, no Supplemental Equipment Advance may be reborrowed. 
 (b) Supplemental Equipment Advances. To obtain a Supplemental Equipment Advance, Borrower must notify Bank (the notice is
irrevocable) by facsimile no later than 12:00 p.m. Pacific time one (1) Business Day before the day on which the Supplemental Equipment Advance is to be made. The notice in the form of Exhibit B (Payment/Advance Form) must be signed by a
Responsible Officer or designee and include a copy of the invoice for the Eligible Equipment being financed. 
 (c)
Repayment. Each Supplemental Equipment Advance shall be payable in thirty six (36) consecutive equal monthly installments of principal and accrued interest, beginning on the first (1st) day of the first (1st) month following such Supplemental Equipment Advance and continuing on the first (1st) day of each month thereafter (each a “Supplemental Equipment Payment Date”). The final payment due on the applicable Supplemental Equipment Maturity Date shall include all outstanding principal and all accrued unpaid
interest. 
 (d) Final Payment. On the earlier of (i) the final Supplemental Equipment Payment Date with respect
to each Supplemental Equipment Advance, (ii) the termination of the Supplemental Equipment Line, or (iii) prepayment, Borrower shall pay, in addition to the outstanding principal, accrued and unpaid interest, and all other amounts due on
such date with respect to such Supplemental Equipment Advance, an amount equal to the Supplemental Equipment Final Payment. 
 (e) Prepayment Upon an Event of Loss. Borrower shall bear the risk of any loss, theft, destruction, or damage of or to the Financed Equipment. If, during the term of this Agreement, any item of Financed Equipment becomes obsolete or

  

 2 

 is lost, stolen, destroyed, damaged beyond repair, rendered permanently unfit for use, or seized by a
governmental authority for any reason for a period equal to at least the remainder of the term of this Agreement (an “Event of Loss”), then, if no Event of Default has occurred or is continuing, within ten (10) days following such
Event of Loss, at Borrower’s option, Borrower shall (i) pay to Bank on account of the Obligations all accrued interest to the date of the prepayment, plus all outstanding principal owing with respect to the Financed Equipment subject to
the Event of Loss; or (ii) repair or replace any Financed Equipment subject to an Event of Loss provided the repaired or replaced Financed Equipment is of equal or like value to the Financed Equipment subject to an Event of Loss and provided
further that Bank has a first priority perfected security interest in such repaired or replaced Financed Equipment. 
 (d)
Prepayment. At Borrower’s option, so long as an Event of Default has not occurred and is not continuing, Borrower shall have the option to prepay all, but not less than all, of the Supplemental Equipment Loan Amount advanced by Bank
under this Agreement, provided Borrower (a) provides written notice to Bank of its election to exercise to prepay the Supplemental Equipment Advance at least thirty (30) days prior to such prepayment, and (b) pays, on the date
of the prepayment (i) all accrued and unpaid interest with respect to the Supplemental Equipment Advance through the date the prepayment is made; (ii) all unpaid principal with respect to the Supplemental Equipment Advance; (iii) a
premium equal to the Make-Whole Premium; (iv) the Supplemental Equipment Final Payment; and (v) all other sums, if any, that shall have become due and payable hereunder with respect to this Agreement. 
 2.2 Section 2.2 (Interest Rate, Payments). Section 2.2(a) is amended by deleting it in its entirety and replacing it with the following:

 (a) Interest Rate. (i) Each Equipment Advance shall continue to accrue interest on the outstanding principal
balance at a fixed per annum rate determined as of the date of the applicable Funding Date equal to the greater of: (A) the Treasury Note Rate as of the applicable Funding Date plus three percent (3.0%) or (B) five and one-half
percent (5.50%); and which rate shall remain fixed for the term of the relevant Equipment Advance. (ii) Each Supplemental Equipment Advance shall accrue interest on the outstanding principal balance for each Supplemental Equipment Advance at a
fixed per annum rate equal to the Basic Rate, which shall be payable monthly. After an Event of Default, Obligations accrue interest at five percent (5.0%) above the rate effective immediately before the Event of Default. Interest is computed
on a 360-day year for the actual number of days elapsed. 
 2.3 Section 6.2 (Financial Statements, Reports, Certificates).
Section 6.2(a) is amended by deleting it in its entirety and replacing it with the following: 
 (a) Borrower will
deliver to Bank: (i) as soon as available, but no later than forty five (45) days after the last day of each month, a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations during
the period certified by a Responsible Officer and in a form acceptable to Bank; (ii) as soon as available, but no later than one hundred twenty (120) days after the last day of 
  

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 Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently
applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Bank in its reasonable discretion; (iii) within five (5) days of delivery, copies of all
statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt; (iv) within ten (10) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange
Commission or a link thereto on Borrower’s or another website on the Internet; (v) as soon as available, but no later than forty five (45) days after fiscal year end, Borrower’s financial projections for the upcoming fiscal year
approved by Borrower’s Board of Directors and in form and substance reasonably satisfactory to Bank; (vi) a prompt report of any legal actions pending or threatened against Borrower or any of its Subsidiaries that could result in damages
or costs to Borrower or any of its Subsidiaries of One Hundred Fifty Thousand Dollars ($150,000) or more; and (vii) budgets, sales projections, operating plans and other financial information reasonably requested by Bank. 
 2.4 Section 13 (Definitions). 
 (a) The following terms and their respective definitions set forth in Section 13.1 are amended in their entirety and replaced with the following: 
 “Credit Extension” is any Equipment Advance, Supplemental Equipment Advance, or any other extension of credit by Bank for
Borrower’s benefit. 
 “Financed Equipment” is all present and future Eligible Equipment in which
Borrower has any interest, the purchase of which is financed by an Equipment Advance or Supplemental Equipment Advance, as applicable. 
 (b) The following definitions are added to Section 13.1 of the Loan Agreement: 
 “Basic Rate” is the per annum rate of interest (based on a year of 360 days) equal to the sum of (a) U.S. Treasury note yield to maturity for a term equal to the Treasury Note Maturity as quoted in The Wall Street
Journal on the Supplemental Equipment Funding Date, plus (b) the Loan Margin. 
 “Loan Margin” is
two hundred twenty five (225) basis points. 
 “Make-Whole Premium” is an amount equal to five percent
(5.0%) of the outstanding Supplemental Equipment Advance if the prepayment is made on or before the second (2nd) anniversary of the date hereof and three percent (3.0%) of the outstanding Supplemental Equipment Advance if the prepayment is made after the second (2nd) anniversary hereof, but before the Supplemental Equipment Maturity Date. 
 “Supplemental Equipment Advance” is defined in Section 2.1.3(a). 
 “Supplemental Equipment Availability End Date” is defined in Section 2.1.3(a). 
  

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 “Supplemental Equipment Closing Date” is the date of this Amendment.

 “Supplemental Equipment Final Payment” is a payment (in addition to and not a substitution for the regular
monthly payments of principal plus accrued interest) due on the earlier of (a) the final Supplemental Equipment Payment Date for such Supplemental Equipment Advance or (b) the acceleration of such Supplemental Equipment Advance, equal to
the Supplemental Equipment Loan Amount for such Supplemental Equipment Advance multiplied by the Final Payment Percentage. 
 “Supplemental Equipment Final Payment Percentage” is, for each Supplemental Equipment Advance, four percent (4.0%). 
 “Supplemental Equipment Funding Date” is the date a Supplemental Equipment Advance is made. 
 “Supplemental Equipment Line” is a Supplemental Equipment Advance or Supplemental Equipment Advances in an aggregate amount of up to Four Million Dollars ($4,000,000) outstanding at any time.

 “Supplemental Equipment Loan Amount” in respect of each Supplemental Equipment Advance is the original
principal amount of such Supplemental Equipment Advance. 
 “Supplemental Equipment Maturity Date” is, with
respect to each Supplemental Equipment Advance, the final Supplemental Equipment Payment Date, but no later than March 31, 2010. 
 “Supplemental Equipment Payment Date” is defined in Section 2.1.3(c). 
 “Treasury Note Maturity” is thirty six (36) months. 
 3. Limitation of Amendments. 
 3.1 The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as
written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the
future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection with and as part of the
Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 
  

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 4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby
represents and warrants to Bank as follows: 
 4.1 Immediately after giving effect to this Amendment (a) the representations and
warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as
of such date), and (b) no Event of Default has occurred and is continuing; 
 4.2 Borrower has the power and authority to execute
and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3 The
organizational documents of Borrower delivered to Bank on the March 27, 2003 remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, have been duly authorized; 
 4.5 The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person
binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
 4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding
on Borrower, except as already has been obtained or made; and 
 4.7 This Amendment has been duly executed and delivered by Borrower
and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general
application and equitable principles relating to or affecting creditors’ rights. 
 5. Counterparts. This Amendment may be
executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 6. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment of an amendment fee in an amount equal to Twenty
Thousand Dollars ($20,000) (the “Good Faith Deposit”), and (c) payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment. Any portion of the Good Faith Deposit not utilized to
pay Bank Expenses will be returned to Borrower. 
  

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 [Signature page follows.] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed and delivered as of the date first written above. 
  

									
	BANK	 		 	BORROWER
			
	Silicon Valley Bank	 		 	Threshold Pharmaceuticals, Inc.
					
	By:	 	 /s/ Jason Hughes
	 		 	By:	 	 /s/ Janet I. Swearson

	Name:	 	Jason Hughes	 		 	Name:	 	Janet I. Swearson
	Title:	 	Vice President	 		 	Title:	 	Chief Financial Officer

  

 [Signature Page to Third Amendment to Loan and Security Agreement]

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