Document:

2014 Exhibit 10.22

Exhibit 10.22

SANTANDER CONSUMER USA HOLDINGS INC.
OMNIBUS INCENTIVE PLAN
NONQUALIFIED STOCK OPTION AGREEMENT
This NONQUALIFIED STOCK OPTION AGREEMENT (“Stock Option Agreement”), dated as of [•] (the “Date of Grant”), is made by and between Santander Consumer USA Holdings Inc., a Delaware corporation (the “Company”), and [•] (the “Participant”).
WHEREAS, the Company maintains the Santander Consumer USA Holdings Inc. Omnibus Incentive Plan (the “Plan”), which provides for the grant of Nonqualified Stock Options.
WHEREAS, the Committee has determined that it would be in the best interests of the Company and its shareholders to grant to the Participant a Nonqualified Stock Option, on the terms and subject to the conditions set forth in this Stock Option Agreement and the Plan.
NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Stock Option Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, for themselves and their successors and assigns, hereby agree as follows:
1.    Grant of Nonqualified Stock Option.  
(a)    Grant.  Effective as of the Date of Grant, the Company hereby grants to the Participant a Nonqualified Stock Option to purchase [•] ([•]) Shares at an Option Price of [•] dollars ($[•]) (which is the Fair Market Value at the Date of Grant), on the terms and subject to the conditions set forth in this Stock Option Agreement and the Plan (the “Option”).
(b)    Incorporation by Reference, Etc.  The terms and conditions of the Plan are hereby incorporated by reference as if fully set forth herein.  Except as otherwise expressly set forth herein, this Stock Option Agreement shall be construed in accordance with the terms and conditions of the Plan.  Any capitalized terms not otherwise defined in this Stock Option Agreement shall have the definitions set forth in the Plan.
(c)    Nonqualified Stock Option.  The Option is not intended to satisfy the requirements applicable to an “incentive stock option” described in Section 422(b) of the Code.
2.    Exercisability of Option.  
(a)    The Option shall become exercisable by the Participant as set forth in the table immediately below, provided that the Participant’s Termination of Service has not occurred prior to the time the respective portion of the Option becomes exercisable:
	
		
	Exercisability date
	Portion of Option that becomes exercisable

	First anniversary of Date of Grant
	One-fifth (1/5) of Option

	Second anniversary of Date of Grant
	One-fifth (1/5) of Option

	Third anniversary of Date of Grant
	One-fifth (1/5) of Option

	Fourth anniversary of Date of Grant
	One-fifth (1/5) of Option

	Fifth anniversary of Date of Grant
	One-fifth (1/5) of Option

(b)    Notwithstanding the foregoing provisions of this Section 2, the entire Option shall become immediately exercisable upon the Participant’s Termination of Service due to the Participant’s Disability or death.
(c)    In the event of a Change in Control occurring after the Date of Grant and prior to the Participant’s Termination of Service, the Change in Control provisions as provided for under Section 14 of the Plan shall apply to the Option.

(d)    The Option shall not be exercisable on or after the Participant’s Termination of Service, except as to that portion of Shares for which it was exercisable or became exercisable on the date of such Termination of Service. 
3.    Exercise of Option.  The portion of the Option that has become exercisable pursuant to the terms and conditions of this Stock Option Agreement and the Plan may be exercised by the Participant, in whole or in part (but for the purchase of whole Shares only), by delivery to the Company of (a) written or electronic notice in a form prescribed by the Committee, complying with the Plan and any applicable procedures established by the Committee or the Company, stating the number of Shares under the Option that is thereby exercised, the Option Price, the manner of payment for such Shares and the manner of satisfaction of applicable withholding taxes, (b) full payment, in accordance with Section 7(b) of the Plan, of the aggregate Option Price for the Shares with respect to which the Option is thereby exercised, and (c) evidence of full satisfaction of the payment of the Option Price and any applicable withholding taxes in accordance with this Stock Option Agreement and the Plan.
4.    Forfeiture of Option; Expiration of Option Period.
(a)    Except as otherwise determined by the Committee in its sole discretion, any portion of the Option that is not exercisable or that does not become exercisable shall be automatically forfeited upon the Participant’s Termination of Service for any reason.
(b)    The portion of the Option that is or becomes exercisable as of the Participant’s Termination of Service shall remain exercisable until the earliest to occur of the following, at which time the Option shall cease to be exercisable and shall be automatically forfeited in its entirety:
(i)    immediately as of the Participant’s Termination of Service for Cause;
(ii)    immediately as of the Participant’s violation of any of the covenants set forth in Annex A hereto;
(iii)    the two (2)-month anniversary of the Participant’s Termination of Service other than for Cause or due to the Participant’s Disability or death;
(iv)    the one (1)-year anniversary of the Participant’s Termination of Service due to the Participant’s Disability or death; or
(v)    the ten (10)-year anniversary of the Date of Grant.
5.    No Rights as a Shareholder.  Until such time as Shares have been delivered to the Participant following exercise of the Option and the Participant has become the holder of record of such Shares, the Participant shall have no rights as a shareholder, including, without limitation, the right to dividends and the right to vote.
6.    Tax Withholding.  As a condition to delivery of Shares in respect of any exercised portion of the Option, the Participant shall pay to the Company, or, pursuant to Section 12(d) of the Plan, make provisions satisfactory to the Company regarding the payment of, all federal, state, local, and foreign taxes of any kind required by law to be withheld in respect of the delivery of such Shares.  The Company or any Affiliate shall have the right to withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy all federal, state, local, and foreign taxes of any kind (including, without limitation, the Participant’s FICA and SDI obligations) that the Company, in its sole discretion, deems necessary to be withheld or remitted to comply with the Code or any other applicable law, rule, or regulation with respect to the Option and, if the Participant fails to do so, the Company may otherwise refuse to issue or transfer any Shares otherwise required to be issued pursuant to this Stock Option Agreement.
7.    Non-Transferability.  The Option may not, at any time, be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer, or encumbrance shall be void and unenforceable against the Company and its Affiliates; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer, or encumbrance.
8.    Adjustment.  Upon any event described in Section 13 of the Plan occurring after the Date of Grant, the adjustment provisions as provided for under Section 13 of the Plan shall apply to the Option.

9.    Participant’s Undertaking.  The Participant hereby agrees to take whatever additional actions and execute whatever additional documents the Committee may in its reasonable judgment deem necessary or advisable in order to carry out or effect one (1) or more of the obligations or restrictions imposed on the Participant pursuant to the express provisions of this Stock Option Agreement and the Plan; provided, however, that such additional actions and documents are consistent with the terms of this Stock Option Agreement and the Plan.
10.    Restrictive Covenants.  Any covenants set forth in Annex A hereto are hereby incorporated by reference as if fully set forth herein.
11.    Waiver and Amendment.  The Committee may waive any conditions or rights under, or amend any terms of, this Stock Option Agreement and the Option, subject to the terms and conditions of the Plan; provided that any such waiver or amendment that would materially impair the rights of the Participant with respect to the Option (other than any such amendment made to comply with applicable law, including, without limitation, Section 409A of the Code, Applicable Exchange listing standards, or accounting rules) shall not, to that extent, be effective without the consent of the Participant.  No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.  No waiver by any party of any breach of this Stock Option Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.
12.    Notices.  All notices, demands, and other communications provided for or permitted under this Stock Option Agreement shall be made in writing and shall be by registered or certified first-class mail (return receipt requested), facsimile, e-mail, courier service, or personal delivery:
if to the Company:
Santander Consumer USA Holdings Inc.
1601 Elm Street, Suite #800
Dallas, Texas  75201
Attention:  [•]

and if to the Participant: at the address last on the records of the Company.
All such notices, demands, and other communications shall be deemed to have been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial courier service; five (5) business days after being deposited in the mail, postage prepaid, if mailed; and when receipt is mechanically or electronically acknowledged, if by facsimile or e-mail.
13.    Severability.  The invalidity or unenforceability of any provision of this Stock Option Agreement shall not affect the validity or enforceability of any other provision of this Stock Option Agreement, and each other provision of this Stock Option Agreement shall be severable and enforceable to the extent permitted by law.
14.    No Rights to Service.  Nothing contained in this Stock Option Agreement shall be construed as giving the Participant any right to be retained, in any position, as an officer, employee, consultant, or director of the Company or its Affiliates, or shall interfere with or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate, or discharge the Participant at any time for any reason whatsoever or for no reason.
15.    Beneficiary.  The Participant may file with the Company a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, change or revoke such designation by filing a new designation with the Company on such form as may be prescribed by the Committee.  The last such designation received by the Company shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Company prior to the Participant’s death, and in no event shall it be effective as of a date prior to such receipt.  If no beneficiary designation is filed by the Participant, the beneficiary shall be deemed to be the Participant’s spouse or, if the Participant is unmarried at the time of death, the Participant’s estate.

16.    Successors.  The terms and conditions of this Stock Option Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs, and successors of the Participant.
17.    Entire Agreement.  This Stock Option Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein, and supersede all prior communications, representations, and negotiations with respect thereto.
18.    Bound by the Plan and Committee’s Decisions.  By accepting this Stock Option Agreement, the Participant acknowledges that the Participant has received a copy of the Plan, has had an opportunity to review the Plan, and agrees to be bound by all of the terms and conditions of the Plan.  The authority to manage and control the operation and administration of this Stock Option Agreement and the Plan shall be vested in the Committee, and the Committee shall have all powers with respect to this Stock Option Agreement as it has with respect to the Plan.  Any interpretation of this Stock Option Agreement or the Plan by the Committee and any decision made by the Committee with respect to this Stock Option Agreement or the Plan shall be final and binding on all persons.
19.    Governing Law; Consent to Jurisdiction; Consent to Venue.  This Stock Option Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Delaware, in each case as provided in the Plan.  For purposes of resolving any dispute that arises directly or indirectly from the relationship of the parties evidenced by the Option or this Stock Option Agreement, the parties hereto hereby submit to and consent to the exclusive jurisdiction of the State of Texas and agree that such litigation shall be conducted solely in the courts of Dallas County, Texas or the federal courts for the United States for the Northern District of Texas, where this Stock Option Agreement is made and/or to be performed, and no other courts.
20.    Headings.  The headings of the sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Stock Option Agreement.
21.    Signature in Counterparts.  This Stock Option Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
22.    Clawback.  The Option and any amount or benefit received under the Plan shall be subject to potential cancellation, recoupment, rescission, payback, or other action in accordance with the terms of any applicable Company clawback policy or any applicable law, as may be in effect from time to time, including, without limitation, the requirements of (a) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder; (b) similar rules under the laws of any other jurisdiction; and (c) any policies adopted by the Company to implement such requirements, all to the extent determined by the Company in its discretion to be applicable to the Participant.  By accepting the Option, the Participant acknowledges and consents to the Company’s application, implementation, and enforcement of any applicable Company clawback policy that may apply to the Participant, whether adopted prior to or following the Date of Grant, and any provision of applicable law relating to cancellation, recoupment, rescission, or payback of compensation, and agrees that the Company may take such actions as may be necessary to effectuate any such policy or applicable law, without further consideration or action.
23.    Compliance with Legal Requirements.  The grant of the Option and the delivery of Shares upon exercise of the Option, and any other obligations of the Company under this Stock Option Agreement, shall be subject to all applicable laws, rules, and regulations and to such approvals by any regulatory or governmental agency as may be required.  The Committee, in its sole discretion, may postpone the issuance or delivery of Shares in connection with the Option as the Committee may consider appropriate, and may require the Participant to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of Shares in compliance with applicable laws, rules, and regulations.
[Remainder of page intentionally left blank; signature page to follow]

IN WITNESS WHEREOF, the parties hereto have executed this Stock Option Agreement as of the Date of Grant.

SANTANDER CONSUMER USA Holdings INC.

By: _____________________________________
       Name:
       Title:

PARTICIPANT

_________________________________________
[Name]

Number of Shares subject to Option:  __________
Option Price:  $__________

Annex A
Restrictive Covenants
The Participant acknowledges that the grant of the Option pursuant to the Stock Option Agreement confers a substantial benefit upon the Participant, and, in consideration of the Participant’s ability to exercise the Option and receive Shares and the Participant’s receipt of Confidential Information and Trade Secrets (as defined below), agrees to the following covenants, which are designed, among other things, to protect the interests of the Company in confidential and proprietary information, trade secrets, customer and employee relationships, orderly transition of responsibilities, and other legitimate business interests.  Except as otherwise provided, for purposes of the covenants set forth in this Annex A, the term “Company” shall mean the Company and all Affiliates and Subsidiaries.
1.Confidential Information.  For purposes of the Stock Option Agreement, the Participant acknowledges and agrees that the terms “Confidential Information” and “Trade Secrets” shall mean information that the Company owns or possesses, that the Company has developed, that it uses or that is potentially useful in the business of the Company, that the Company treats as proprietary, private, or confidential, and that is not generally known to the public.  The Participant further acknowledges that the Participant’s relationship with the Company is one of confidence and trust such that the Participant has in the past been, and may in the future be, privy to Confidential Information and Trade Secrets of the Company.  The Participant agrees to keep all Confidential Information and Trade Secrets strictly confidential at all times, and to comply with all applicable confidentiality policies of the Company.
2.Non-Competition.  The Participant covenants and agrees that, while the Participant is providing services to the Company (the “Pre-Termination Restricted Period”), and thereafter for the twelve (12)-month period following the Participant’s Termination of Service for any reason (the “Post-Termination Restricted Period,” and together with the Pre-Termination Restricted Period, the “Restricted Period”), the Participant shall not, without the Company’s express written consent, whether on the Participant’s own behalf or on behalf of or in conjunction with any other Person, directly or indirectly, whether as an employee, agent, representative, consultant, partner, shareholder, or holder of any other financial interest with respect to any Person that competes with the Company, engage in any activity that involves or is related to providing vehicle finance and/or unsecured consumer lending products anywhere within the United States (the “Competitive Business”), in each case in the capacity (or any substantially similar capacity) that the Participant provided services to the Company.  The Participant further agrees that, given the nature of the Company’s business, a nationwide geographic scope is appropriate and reasonable. 
3.Non-Solicitation of Employees.  The Participant covenants and agrees that during the Restricted Period, the Participant shall not, directly or indirectly, (a) hire, engage, or attempt to hire or engage any employee, consultant, or independent contractor of the Company, (b) solicit or attempt to solicit any employee, consultant, or independent contractor of the Company to become an employee, consultant, or independent contractor to, for, or of any other Person, or (c) solicit or attempt to solicit any employee, consultant, or independent contractor of the Company to change or terminate his or her relationship with the Company, unless in each case more than six (6) months has elapsed between the last day of such Person’s employment or service with the Company and the first date of such solicitation or hiring or attempt to solicit or hire. If any employee, consultant, or independent contractor is hired or solicited by any Person that has hired or agreed to hire the Participant, such hiring or solicitation shall be conclusively presumed to be a violation of this covenant; provided, however, that any hiring or solicitation pursuant to a general solicitation conducted by a Person that has hired or agreed to hire the Participant, which does not involve the Participant, shall not be a violation of this covenant; provided, further, that, for purposes of this Section 3, the “Company” shall include the Company’s Affiliates and Subsidiaries only to the extent that the goods and services that such Affiliates or Subsidiaries provide relate to the Competitive Business.
4.Non-Solicitation of Customers.  The Participant covenants and agrees that during the Restricted Period, the Participant shall not, either directly or indirectly through others:
(a)solicit, divert, interfere with, appropriate, or do business with, or attempt to solicit, divert, interfere with, appropriate, or do business with, any customer for whom the Company provided goods or services within twelve (12) months prior to the Participant’s Termination of Service or any prospective customer of the Company as of such termination, or
(b)encourage any customer for whom the Company provided goods or services within twelve (12) months prior to the Participant’s Termination of Service to reduce the level or amount of business such customer conducts with the Company,

in each case, for purposes of providing good or services that relate to the Competitive Business.
5.Non-Disparagement.  The Participant covenants and agrees that the Participant shall not, while the Participant is providing services to the Company and thereafter, utter or issue, in any medium, whether oral, written, or electronic, any disparaging or derogatory remarks, or make any untruthful statements, including, without limitation, pursuant to any press release or public statement, about the Company or regarding the Company’s financial status, business, compliance with laws, ethics, controlling shareholders, partners, personnel, directors, officers, employees, consultants, agents, services, business methods, or otherwise, or utter or issue any other statements that are reasonably likely to disparage the Company or are otherwise degrading to the Company’s reputation in the business industry or legal community in which the Company operates, or solicit any Person to do the same, provided that the Participant shall be permitted to make any truthful statement that is required by applicable law or necessary to respond in a legal or regulatory proceeding.
6.Other Agreements.  The foregoing Sections 1 through 5 of this Annex A shall be in addition to, and shall not amend, modify, or supersede, any confidentiality, non-competition, non-solicitation, non-hire, or non-disparagement covenant in any employment or other agreement by and between the Participant and the Company.
7.Remedies.
(a)The Participant acknowledges and agrees that the business of the Company is highly competitive, that the Confidential Information and Trade Secrets have been developed by the Company at significant expense and effort, and that the restrictions contained in this Annex A are reasonable and necessary to protect the legitimate business interests of the Company.
(b)The Participant acknowledges and agrees that in the event the Participant breaches any of the covenants or agreements contained in this Annex A, the entire Option, whether or not exercisable, shall be forfeited and cancelled effective as of the first date on which the Participant first breaches any of the covenants contained in this Annex A.  In addition to any other remedies specified herein (including, without limitation, injunctive relief) or otherwise permitted by law, if the Participant breaches any of the covenants contained in this Annex A after the Participant has exercised the Option or after the Participant has sold or otherwise disposed of Shares received upon exercise of the Option, then the Participant shall be required, within ten (10) business days following the first date on which the Participant first breaches any of the covenants contained in this Annex A, to pay to the Company an amount equal to (i) the aggregate pre-tax proceeds the Participant received upon such sale or other disposition of such Shares at any time during the Post-Termination Restricted Period or during the twelve (12)-month period prior to the Participant’s Termination of Service for any reason (x) in connection with the exercise of the Option or (y) upon the sale or other disposition of the Shares received upon exercise of the Option, in each case, including, without limitation, any dividends and distributions that Participant received in respect of such Shares, over (ii) the Option Price.
(c)Because the Participant’s services are personal and unique and the Participant has had and will continue to have access to and has become and will continue to become acquainted with Confidential Information and Trade Secrets, the Participant acknowledges and agrees that any breach by the Participant of any of the covenants or agreements contained in this Annex A will result in irreparable injury to the Company for which money damages could not adequately compensate the Company.  Therefore, the Company shall have the right (in addition to any other rights and remedies which it may have at law or in equity and in addition to the rights and remedies set forth in Section 7(b) of this Annex A) to seek to enforce any of the provisions of this Annex A by injunction, specific performance, or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach, or threatened breach, of the restrictive covenants set forth in this Annex A.  The Participant agrees that in any action in which the Company seeks injunction, specific performance, or other equitable relief, the Participant shall not assert or contend that any of the provisions of this Annex A are unreasonable or otherwise unenforceable. 
8.Severability and Survival.  If any portion of the covenants or agreements contained in this Annex A, or the application hereof, is construed to be invalid or unenforceable, the other portions of such covenants or agreements or the application thereof shall not be affected and shall be given full force and effect without regard to the invalid or unenforceable portions to the fullest extent possible.  If any covenant or agreement contained in this Annex A is held to be unenforceable because of the duration thereof or the scope thereof, then the court making such determination shall have the power to reduce the duration and limit the scope thereof, and the covenant or agreement shall then be enforceable in its reduced form.  The covenants and agreements contained in this Annex A shall survive the termination of the Stock Option Agreement.EX-10.26

 Exhibit 10.26 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 

FIFTH LOAN MODIFICATION AGREEMENT 

This Fifth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of January 9, 2015, by
and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton,
Massachusetts 02466 (“Bank”) and AEGERION PHARMACEUTICALS, INC., a Delaware corporation with its chief executive office located at One Main Street, 8th Floor, Cambridge,
Massachusetts 02142 (“Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of March 28, 2012, evidenced by, among other documents, a certain Loan and Security Agreement dated as of March 28,
2012, between Borrower and Bank, as amended by that certain First Loan Modification Agreement dated as of July 10, 2012, between Borrower and Bank, as amended by that certain Second Loan Modification Agreement dated as of December 6, 2012,
between Borrower and Bank, as amended by that certain Consent and Third Loan Modification Agreement dated as of December 12, 2013, between Borrower and Bank, and as further amended by that certain Fourth Loan Modification Agreement dated
March 26, 2014, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other
collateral security granted to Bank, the “Security Documents”). 
 Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS.

  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by inserting the following new provision to appear as Section 2.1.3 (Revolving Advances) thereof: 

“2.1.3 Revolving Advances. 

(a) Availability. Upon the completion of the Initial Audit, and subject to the terms and conditions of this Agreement, Bank shall make
Advances not exceeding the Availability Amount. Amounts borrowed under the Revolving Line may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 

(b) Termination; Repayment. The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all
Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable.” 

  
 1 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

	 	2	The Loan Agreement shall be amended by inserting the following new provision to appear as Section 2.1.4 (2015 Term Loan) thereof: 

“2.1.4 2015 Term Loan 

(a) Availability. Subject to the terms and conditions of this Agreement, Bank agrees to make one (1) advance (the “2015
Term Loan Advance,”) available to Borrower in an aggregate amount of Twenty-Five Million Dollars ($25,000,000.00) on the 2015 Effective Date; provided that a portion of the proceeds of the 2015 Term Loan Advance shall be used to repay in
full Borrower’s outstanding Obligations to Bank under Section 2.1.1 and Section 2.1.2 hereof. After repayment, the 2015 Term Loan Advance may not be reborrowed. 

(b) Interest Period. Commencing on the first Payment Date of the month following the month in which the Funding Date of the 2015 Term
Loan Advance occurs and continuing on each Payment Date thereafter through and including the month prior to the 2015 Amortization Date, Borrower shall make monthly payments of interest on the 2015 Term Loan Advance, in arrears, at the rate set forth
in Section 2.2(a)(iv). 
 (c) Repayment. Commencing on the 2015 Amortization Date, and continuing on the Payment Date of each
month thereafter, Borrower shall repay the 2015 Term Loan Advance in (i) thirty (30) equal monthly payments of principal plus (ii) monthly payments of accrued interest at the rate set forth in Section 2.2(a)(iv). All outstanding
principal and accrued interest under the 2015 Term Loan Advance, and all other outstanding Obligations with respect to the 2015 Term Loan Advance, are due and payable in full on the 2015 Term Loan Maturity Date. 

(d) Permitted Prepayment of 2015 Term Loan Advance. Borrower shall have the option to prepay all of the 2015 Term Loan Advance advanced
by Bank under this Agreement, provided Borrower (i) provides written notice to Bank of its election to prepay the 2015 Term Loan Advance at least five (5) Business Days prior to such prepayment, and (ii) pays, on the date of such
prepayment (A) all outstanding principal plus accrued and unpaid interest, (B) the applicable 2015 Prepayment Premium (if any), (C) the 2015 Final Payment, and (D) all other sums, if any, that shall have become due and payable,
including interest at the Default Rate with respect to any past due amounts. 
 (e) Mandatory Prepayment Upon an Acceleration. If the
2015 Term Loan Advance is accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of: (i) all outstanding principal plus accrued and unpaid interest, (ii) the
applicable 2015 Prepayment Premium (if any), (iii) the 2015 Final Payment, plus (iv) all other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due amounts.” 

 

	 	3	The Loan Agreement shall be amended by inserting the following new provisions to appear as Section 2.2(a)(iii) and (iv) thereof: 

“(iii) Advances. Subject to Section 2.2(b), the principal amount outstanding under the Revolving Line shall accrue interest
at a floating per annum rate equal to the Prime Rate, which interest shall be payable monthly in accordance with Section 2.2(e) below. 

(iv) 2015 Term Loan Advance. Subject to Section 2.2(b), the principal amount outstanding for the 2015 Term Loan Advance shall
accrue interest at a fixed per annum rate equal to three percent (3.0%), which interest shall be payable monthly.” 

  
 2 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

	 	4	The Loan Agreement shall be amended by (i) deleting “and” at the end of Section 2.3(d); (ii) deleting “.” at the end of Section 2.3(e) and inserted “; and” thereof; and (iii)
inserting the following new provisions to appear as Sections 2.3(f), (g), (h), (i), and (j) thereof: 

 “(f)
Revolving Line Commitment Fee. A fully earned, non-refundable commitment fee of Thirty-Seven Thousand Five Hundred Dollars ($37,500), on the 2015 Effective Date; 

(g) Revolving Line Anniversary Fee. Fully earned, non-refundable anniversary fees (collectively, the “Anniversary
Fees”) of Thirty-Seven Thousand Five Hundred Dollars ($37,500) shall be earned on the 2015 Effective Date and shall be due and payable on an annual basis on each anniversary of the 2015 Effective Date; and 

(h) Early Termination. This Agreement may be terminated prior to the Revolving Line Maturity Date as follows: (i) by Borrower,
effective three (3) Business Days after written notice of termination is given to Bank; or (ii) by Bank at any time after the occurrence and during the continuance of an Event of Default, without notice, effective immediately. If this Agreement is
terminated (A) by Bank in accordance with clause (ii) in the foregoing sentence, or (B) by Borrower for any reason, Borrower shall pay to Bank a non-refundable termination fee in an amount equal to Three Hundred Thousand Dollars ($300,000.00) (the
“Early Termination Fee”). The Early Termination Fee shall be due and payable on the effective date of such termination and thereafter shall bear interest at a rate equal to the highest rate applicable to any of the Obligations.
Notwithstanding the foregoing, Bank agrees to waive the Early Termination Fee if Bank (including another division of Bank) closes on the refinance and re-documentation of this Agreement (in its sole and exclusive discretion) prior to the Revolving
Line Maturity Date. 
 (i) 2015 Final Payment. The 2015 Final Payment, when due hereunder; and 

(j) 2015 Prepayment Premium. The 2015 Prepayment Premium, when due hereunder. 

 

	 	5	The Loan Agreement shall be amended by inserting the following new provision to appear as Section 2.5 (Overadvance) thereof: 

“2.5 Overadvances. If, at any time, the outstanding principal amount of any Advances exceeds the lesser of either the Revolving
Line or the Borrowing Base, Borrower shall immediately pay to Bank in cash the amount of such excess (such excess, the “Overadvance”). Without limiting Borrower’s obligation to repay Bank any Overadvance, Borrower agrees to pay
Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate for the period commencing on the date such Overadvance is identified by the Bank through the date of repayment of such Overadvance.” 

 

	 	6	The Loan Agreement will be amended by (i) deleting “and” in Section 6.2(h), (ii) deleting “.” in Section 6.2(i), and (iii) inserting the following new subsections to appear
as (j), (k), and (l) thereof: 

 “(j) Borrowing Base Reports. Within thirty (30) days after the last day
of each month, aged listings of accounts receivable and accounts payable (by invoice date) and Inventory reports (the “Borrowing Base Reports”); 

  
 3 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 (k) Borrowing Base Certificate. Within thirty (30) days after the last day of
each month and together with the Borrowing Base Reports, a duly completed Borrowing Base Certificate signed by a Responsible Officer; and 

(l) Monthly Compliance Certificate. Within thirty (30) days after the last day of each month, a duly completed Compliance
Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with Section 6.12 of this Agreement, and setting forth calculations showing compliance with the financial covenants set
forth in this Agreement and such other information as Bank may reasonably request.” 
  

	 	7	The Loan Agreement shall be amended by deleting the references to “Section 6.12” appearing in Section 6.6(a) and inserting “Section 6.12(a)” thereof. 

 

	 	8	The Loan Agreement shall be amended by deleting the following appearing as Section 6.9 thereof: 

“6.9 Access to Collateral; Books and Records. Allow Bank, or its agents, at reasonable times, on one (1) Business Day’s
notice (provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy Borrower’s Books. Such inspections or audits shall be conducted no more often than once every twelve
(12) months unless an Event of Default has occurred and is continuing. The foregoing inspections and audits shall be at Borrower’s expense.” 

and inserting in lieu thereof the following: 

“6.9 Access to Collateral; Books and Records. At reasonable times, on one (1) Business Day’s notice (provided no notice
is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have the right to inspect the Collateral and the right to audit and copy Borrower’s Books. The foregoing inspections and audits shall be conducted at
Borrower’s expense and no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing in which case such inspections and audits shall occur as often as Bank shall determine is necessary. The
charge therefor shall be $850 per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrower and Bank schedule an audit more than ten
(10) days in advance, and Borrower cancels or seeks to or reschedules the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies) Borrower shall pay Bank a fee of $1,000 plus
any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. The Initial Audit shall be completed by February 13, 2015.” 

 

	 	9	The Loan Agreement shall be amended by deleting Section 6.12 in its entirety, and inserting in lieu thereof the following: 

“6.12 Financial Covenants. The calculations with respect to the covenant set forth in Section 6.12(a) shall be computed with
respect to the Borrower only, and not on a consolidated basis. The calculations with respect to the covenants set forth in Sections 6.12(b)(i) and (ii) shall be computed with respect to the Borrower and its Subsidiaries, on a consolidated
basis. 

  
 4 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 (a) Minimum Liquidity. Maintain, at all times, commencing with the last day of the
month ending January 31, 2015, and as of the last day of each month thereafter, a Liquidity Ratio of 1.50 to 1.0. 
 (b) Minimum
Quarterly Revenue or Minimum Free Cash Flow Borrower shall be in compliance with either one of the following: 

(i) Minimum Quarterly Revenue. Achieve, measured as of the last day of each quarter, calculated on a trailing six
(6) month basis, minimum revenue equal to at least the following: 
  

					
	Period (Six Months Ended)	  	Minimum
Revenue	 
		
	 December 31, 2014
	  	$	[	*] 
		
	 March 31, 2015
	  	$	[	*] 
		
	 June 30, 2015
	  	$	[	*] 
		
	 September 30, 2015
	  	$	[	*] 
		
	 December 31, 2015
	  	$	[	*] 

 With respect to the quarter ending March 31, 2016, and each quarter thereafter, the
minimum revenue financial covenant levels shall be mutually agreed upon between Borrower and Bank in an amount equal to [*] of Borrower’s projected revenue, determined based upon Board-approved projections for each upcoming fiscal year of
Borrower. The failure of Borrower and Bank to so mutually agree in writing by February 1st of each year shall result in an immediate Event of Default for which there shall be no grace or cure
period. 
 (ii) Minimum Free Cash Flow. Achieve, measured as of the last day of each quarter commencing with the
quarter ending December 31, 2015, and as of the last day of each quarter thereafter, calculated on a trailing twelve (12) month basis, Free Cash Flow in an amount of at least $0.00.” 

 

	 	10	The Loan Agreement shall be amended by deleting Section 6.14 Cash at Bank in its entirety. 

  

	 	11	The Loan Agreement shall be amended by deleting “Term Loan Maturity Date” appearing in Section 8.1 and inserting “Revolving Line Maturity Date and/or 2015 Term Loan Maturity Date” in lieu
thereof. 

  

	 	12	The Loan Agreement shall be amended by deleting the following definitions appearing in Section 13.1 thereof: 

“ “Credit Extension” is any Term Loan, 2012 Equipment Advance, or any other extension of credit by Bank for
Borrower’s benefit under this Agreement. 
 “ “Obligations” are Borrower’s obligations to pay when due any
debts, principal, interest, Bank Expenses, the Prepayment Premium, the Final Payment, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan 

  
 5 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 
Documents, or otherwise, including, without limitation, any interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and the
performance of Borrower’s duties under the Loan Documents 
 “ “Offshore Accounts” are deposit and/or operating
accounts maintained by Borrower and/or its Related Entities with foreign financial institutions for ordinary necessary operating expenses of Borrower and/or its Related Entities, provided further that the aggregate balance of all such accounts does
not exceed Five Million Dollars ($5,000,000) in the aggregate at any time. 
 and inserting in lieu thereof the following: 

“ “Credit Extension” is any Advance, 2015 Term Loan Advance, or any other extension of credit by Bank for
Borrower’s benefit under this Agreement. 
 “ “Obligations” are Borrower’s obligations to pay when due any
debts, principal, interest, Bank Expenses, 2015 Prepayment Premium, the accrued portion of the Final Payment, the 2015 Final Payment, Anniversary Fee, Early Termination Fee, and other amounts Borrower owes Bank now or later, whether under this
Agreement, the other Loan Documents, or otherwise, including, without limitation, any interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s
duties under the Loan Documents. 
 “ “Offshore Accounts” are deposit and/or operating accounts maintained by Borrower
and/or its Related Entities with foreign financial institutions for ordinary necessary operating expenses of Borrower and/or its Related Entities, provided further that the aggregate balance of all such accounts does not exceed Seven Million Dollars
($7,000,000) in the aggregate at any time. 
  

	 	13	The Loan Agreement shall be amended by deleting the following appearing as subsection (c) of the definition of “Permitted Liens” appearing in Section 13.1 thereof: 

“(c) purchase money Liens or capital leases (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of
the Equipment securing no more than Seven Hundred Fifty Thousand Dollars ($750,000) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the
proceeds of the Equipment.” 
 and inserting in lieu thereof the following: 

“(c) purchase money Liens or capital leases (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of
the Equipment securing no more than One Million Five Hundred Thousand Dollars ($1,500,000) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the
proceeds of the Equipment;” 
  

	 	14	The Loan Agreement shall be amended by inserting the following new definitions to appear alphabetically in Section 13.1 thereof: 

“ “2015 Amortization Date” is February 1, 2017. 

“ “2015 Effective Date” is January 9, 2015. 

  
 6 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 “ “2015 Final Payment” is, for the 2015 Term Loan Advance, a payment
(in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) equal to One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00), due on the earliest to occur of (a) the 2015 Term Loan Maturity
Date, (b) the acceleration of the 2015 Term Loan Advance, (c) the prepayment of the 2015 Term Loan Advance pursuant to Section 2.1.4(d) or 2.1.4(e), or (d) the termination of this Agreement. 

“ “2015 Prepayment Premium” shall be an additional fee payable to Bank in amount equal to: 

(a) for a prepayment of the 2015 Term Loan Advance made on or prior to the first (1st) anniversary of the Funding Date of
the 2015 Term Loan Advance, two percent (2.0%) of the then outstanding principal amount of the 2015 Term Loan Advance as of the date immediately and prior to such prepayment; and 

(b) for a prepayment of the 2015 Term Loan Advance made after the first (1st) anniversary of the Funding Date of the 2015
Term Loan Advance, but prior to the 2015 Term Loan Maturity Date, one percent (1.0%) of the then outstanding principal amount of the 2015 Term Loan Advance as of the date immediately and prior to such prepayment. 

Notwithstanding the foregoing, Bank agrees to waive the 2015 Prepayment Premium if Bank (including another division of Bank)
closes on the refinance and re-documentation of this Agreement (in its sole and exclusive discretion) prior to the 2015 Term Loan Maturity Date. 

“ “2015 Term Loan Advance” is defined in Section 2.1.4(a). 

“ “2015 Term Loan Maturity Date” is the earlier of (i) July 1, 2019, or (ii) the Convertible Note
Maturity Date.” 
 “ “Advance” or “Advances” means a revolving credit loan (or revolving credit
loans) under the Revolving Line. 
 “ “Availability Amount” is (a) the lesser of (i) the Revolving Line or
(ii) the amount available under the Borrowing Base minus (b) the outstanding principal balance of any Advances. 
 “
“Borrowing Base” is eighty percent (80%) of Eligible Accounts, as determined by Bank from Borrower’s most recent Borrowing Base Certificate; provided, however, that Bank has the right to decrease the foregoing percentage
in its good faith business judgment to mitigate the impact of events, conditions, contingencies, or risks which may adversely affect the Collateral or its value. 

“ “Convertible Note Maturity Date” means the maturity date of those certain convertible notes issued in connection with
and in accordance with the terms of that certain Offering Memorandum dated as of August 12, 2014, as may be amended from time to time. 

“ “EBITDA” shall mean (a) Net Income, plus (b) Interest Expense, plus (c) to the extent deducted in the
calculation of Net Income, depreciation expense and amortization 

  
 7 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 
expense, plus (d) income tax expense, plus (e) non-cash stock compensation expenses, plus (f) other one-time charges or non-cash expenses incurred by Borrower, as approved by Bank
in writing on a case-by-case basis. 
 “ “Eligible Accounts” means Accounts which arise in the ordinary course of
Borrower’s business that meet all Borrower’s representations and warranties in Section 5.3. Bank reserves the right at any time after the Effective Date to adjust any of the criteria set forth below and to establish new criteria in
its good faith business judgment. Unless Bank otherwise agrees in writing, Eligible Accounts shall not include: 
 (a)
Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (b) Accounts that the
Account Debtor has not paid within ninety (90) days of invoice date regardless of invoice payment period terms; 
 (c)
Accounts with credit balances over ninety (90) days from invoice date; 
 (d) Accounts owing from an Account Debtor if
fifty percent (50%) or more of the Accounts owing from such Account Debtor have not been paid within ninety (90) days of invoice date; 

(e) Accounts owing from an Account Debtor which does not have its principal place of business in the United States or Canada,
or otherwise approved by Bank on a case-by-case basis; 
 (f) Accounts billed from and/or payable to Borrower outside of the
United States unless Bank has a first priority, perfected security interest or other enforceable Lien in such Accounts under all applicable laws, including foreign laws (sometimes called foreign invoiced accounts); 

(g) Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account
Debtor (as creditor, lessor, supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts); 

(h) Accounts owing from an Account Debtor which is a United States government entity or any department, agency, or
instrumentality thereof unless (i) Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended, or (ii) otherwise approved by Bank in writing on a
case by case basis; 
 (i) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on
a “sale guaranteed”, “sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional; 

(j) Accounts owing from an Account Debtor where goods or services have not yet been rendered to the Account Debtor (sometimes
called memo billings or pre-billings); 
 (k) Accounts subject to contractual arrangements between Borrower and an Account
Debtor where payments shall be scheduled or due according to completion or 

  
 8 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 
fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the contract (sometimes called
contracts accounts receivable, progress billings, milestone billings, or fulfillment contracts); 
 (l) Accounts owing from
an Account Debtor the amount of which may be subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called retainage billings); 

(m) Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust; 

(n) Accounts owing from an Account Debtor that has been invoiced for goods that have not been shipped to the Account Debtor
unless Bank, Borrower, and the Account Debtor have entered into an agreement acceptable to Bank wherein the Account Debtor acknowledges that (i) it has title to and has ownership of the goods wherever located, (ii) a bona fide sale of the
goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from Borrower (sometimes called “bill and hold” accounts); 

(o) Accounts for which the Account Debtor has not been invoiced; 

(p) Accounts that represent non-trade receivables or that are derived by means other than in the ordinary course of
Borrower’s business; 
 (q) Accounts for which Borrower has permitted Account Debtor’s payment to extend beyond 90
days; 
 (r) Accounts arising from chargebacks, debit memos or other payment deductions taken by an Account Debtor (only to
the extent of such chargeback, debit memo or other payment deduction); 
 (s) Accounts arising from product returns and/or
exchanges (sometimes called “warranty” or “RMA” accounts); 
 (t) Accounts in which the Account Debtor
disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 

(u) Accounts owing from an Account Debtor, whose total obligations to Borrower exceed thirty-five percent (35%) of all
Accounts, for the amounts that exceed that percentage, unless Bank approves in writing; and 
 (v) Accounts for which Bank
in its good faith business judgment determines collection to be doubtful, including, without limitation, accounts represented by “refreshed” or “recycled” invoices. 

“ “Free Cash Flow” means (a) EBITDA, minus, without duplication, (b) (i) unfunded capital expenditures,
(ii) cash taxes, (iii) cash dividends and cash distributions, (iv) scheduled interest payments due and payable to Bank under the Revolving Line, and (v) scheduled cash interest payments under the convertible notes issued in
connection with and in accordance with the terms of that certain Offering Memorandum dated as of August 12, 2014. 

  
 9 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 “ “Initial Audit” is Bank’s inspection of Borrower’s
Accounts, with results satisfactory to Bank in its sole and absolute discretion. 
 “ “Interest Expense” means for any
fiscal period, interest expense (whether cash or non-cash) determined in accordance with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of
Borrower, including, without limitation or duplication, all commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with
interest rate swap, cap, and similar arrangements, and the interest portion of any deferred payment obligation (including leases of all types). 

“ “Liquidity Ratio” is the ratio of (a) Borrower’s unrestricted and unencumbered cash maintained with Bank
and/or Bank’s Affiliates, plus, after the completion of the Initial Audit, the unused Availability Amount under the Revolving Line, to (b) the aggregate principal amount of all outstanding Obligations of Borrower to Bank. 

“ “Net Income” means, as calculated for Borrower only for any period as at any date of determination, the net profit (or
loss), after provision for taxes, of Borrower for such period taken as a single accounting period. 
 “ “Revolving
Line” is an aggregate principal amount equal to Fifteen Million Dollars ($15,000,000.00). 
 “ “Revolving Line
Maturity Date” is the earlier of (i) July 1, 2019, or (ii) the Convertible Note Maturity Date.” 
  

	 	15	The Compliance Certificate appearing as Exhibit C to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Schedule 1 hereto. 

 

	 	16	The Loan Agreement shall be amended by incorporating a Borrowing Base Certificate to appear as Exhibit D to the Loan Agreement in the form attached as Schedule 2 hereto. 

4. FEES. Borrower shall reimburse Bank for all reasonable legal fees and expenses incurred in connection with this Loan Modification Agreement. 

5. UPDATED PERFECTION CERTIFICATE. Borrower has delivered an updated Perfection Certificate in connection with this Amendment dated as of the date
hereof (the “Updated Perfection Certificate”), which Updated Perfection Certificate shall supersede in all respects that certain Perfection Certificate dated as of January 12, 2014. Borrower agrees that all references in the Loan
Agreement to “Perfection Certificate” shall hereinafter be deemed to be a reference to the Updated Perfection Certificate. 
 6. CONSISTENT
CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the terms and provisions of this Loan Modification Agreement. 

7. RATIFICATION OF LOAN DOCUMENTS. Except as expressly modified by this Loan Modification Agreement, Borrower hereby ratifies, confirms, and reaffirms
all terms and conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

  
 10 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 8. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations,
Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain
unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in
this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in
writing. No maker will be released by virtue of this Loan Modification Agreement. 
 9. JURISDICTION/VENUE. Borrower accepts for itself and in
connection with its properties, unconditionally, the exclusive jurisdiction of any state or federal court of competent jurisdiction in the Commonwealth of Massachusetts in any action, suit, or proceeding of any kind against it which arises out of or
by reason of this Loan Modification Agreement; provided, however, that if for any reason Bank cannot avail itself of the courts of the Commonwealth of Massachusetts, then venue shall lie in Santa Clara County, California. NOTWITHSTANDING THE
FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO
OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY. 
 10. COUNTERSIGNATURE. This Loan Modification Agreement shall become
effective only when it shall have been executed by Borrower and Bank. 

  
 11 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:				BANK:
			
	AEGERION PHARMACEUTICALS, INC.				SILICON VALLEY BANK
					
	By:		 /s/ Mark J. Fitzpatrick
				By:		 /s/ Clark Hayes

					
	Name:		 Mark J. Fitzpatrick
				Name:		 Clark Hayes

					
	Title:		 Chief Financial Officer
				Title:		 Director

  
 12 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 SCHEDULE 1 

EXHIBIT C 

COMPLIANCE CERTIFICATE 
  

											
	TO:	  	SILICON VALLEY BANK	  		 	Date:	 	  

	FROM:	  	AEGERION PHARMACEUTICALS, INC.	  		 		 	

 The undersigned authorized officer of AEGERION PHARMACEUTICALS, INC. (“Borrower”) certifies that
under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 

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

 

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Quarterly financial statements with Compliance Certificate	  	 Quarterly within 40 days
 Quarterly within 40
days; Monthly within 30 days
	  	 Yes No

Yes No

	Monthly Cash Reports/Cash Burn Certificate	  	Monthly within 15 days	  	
	Annual financial statement (CPA Audited)	  	FYE within 150 days	  	Yes No
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes No
	A/P and A/R Agings, Inventory reports, and Borrowing Base Certificate	  	Monthly within 30 days	  	Yes No
	Board Approved Projections	  	FYE within 45 days	  	Yes No

  
 13 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 To be completed and delivered to Bank on a monthly and quarterly basis: 

 

													
	 Financial Covenant
	  	Required	 	  	Actual	 	  	Complies	 
	 Minimum Liquidity Ratio (maintain at all times, tested monthly)
	  	 	1.50:1.0	  	  	 	    :1.0	  	  	 	Yes No	  
	 Borrower shall be in compliance with either one of the following (tested quarterly):
	  				  				  			
	 Minimum Quarterly Revenue (calculated on a trailing six (6) month basis)
	  	 	*	  	  	$	            	  	  	 	Yes No	  
	 Minimum Free Cash Flow
	  	$	0.00	  	  	$	            	  	  	 	Yes No	  

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

 

 

			
	AEGERION PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

			
	BANK USE ONLY
		
	Received by:	 	  

		 	AUTHORIZED SIGNER
		
	Date:	 	  

		
	Verified:	 	  

		 	AUTHORIZED SIGNER
		
	Date:	 	  

	
	Compliance Status:    Yes        No    

 
 

  
 14 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

Dated:                     

 

	I.	Liquidity Ratio (Section 6.12(a)) 

  

			
	Required:	  	 1.50:1.0
		
	Actual:	  	        :1.0

  

							
	 A.
	  	 Aggregate value of Borrower’s cash, to the extent unrestricted and unencumbered and maintained with Bank and/or Bank’s
Affiliates, plus, after the completion of the Initial Audit, the unused Availability Amount under the Revolving Line
	  	$	            	  
			
	 B.
	  	 Aggregate amount of all outstanding obligations and liabilities of Borrower to Bank (including, without limitation, the
Obligations)
	  	$	            	  
			
	 C.
	  	 Liquidity Ratio (line A divided by line B)
	  	$	            	  

 Is line C greater than 1.50 to 1.0? 
  

			
	            No, not in compliance	  	            Yes, in compliance

  

	II.	Minimum Quarterly Revenue (Section 6.12(b)(i)). Achieve, measured as of the last day of each quarter, calculated on a trailing six (6) month basis, minimum revenue equal to at least the following:

  

					
	 Period
	  	Minimum Revenue	 
	 December 31, 2014
	  	$	[	*] 
	 March 31, 2015
	  	$	[	*] 
	 June 30, 2015
	  	$	[	*] 
	 September 30, 2015
	  	$	[	*] 
	 December 31, 2015
	  	$	[	*] 

 With respect to the quarter ending March 31, 2016, and each quarter thereafter, the minimum revenue financial covenant
levels shall be mutually agreed upon between Borrower and Bank in an amount equal to [*] 

  
 15 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 
of Borrower’s projected revenue, determined based upon Board-approved projections for each upcoming fiscal year of Borrower. The failure of Borrower and Bank to mutually agree in writing by
February 1st of each year, shall result in an immediate Event of Default for which there shall be no grace or cure period. 

 

			
	Actual:		$            

			
		
	            No, not in compliance		            Yes, in compliance

  

	III.	Minimum Free Cash Flow (Section 6.12(c)) 

  

			
	Required:		Achieve, measured as of the last day of each fiscal quarter during the following periods, calculated on a trailing twelve (12) month basis and computed on a consolidated basis with respect to Borrower and its Subsidiaries, Free
Cash Flow in an amount of at least $0.00.
		
	Actual:		$            

  

							
	 A.
		 Net Income
		$	            	  
			
	 B.
		 Interest Expense
		$	 	  
			
	 C.
		 To the extent deducted in the calculation of Net Income, depreciation expense and amortization expense
		$	 	  
			
	 D.
		 Income tax expense
		$	 	  
			
	 E.
		 Non-cash stock compensation expenses
		$	 	  
			
	 F.
		 (Without duplication) one-time expenses or non-cash expenses incurred by Borrower, as approved by Bank in writing on a case-by-case
basis
		$	 	  
			
	 G.
		 EBITDA (Sum of Lines A through F)
		$	 	  
			
	 H.
		 Unfunded capital expenditures
		$	 	  
			
	 I.
		 Cash taxes
		$	 	  
			
	 J.
		 Cash dividends and cash distributions
		$	 	  
			
	 K.
		 Scheduled interest payments due and payable to Bank under the Revolving Line
		$	 	  
			
	 L.
		 Scheduled cash interest payments under the convertible notes issued in connection with and in accordance with the terms of that
certain Offering Memorandum dated as of August 12, 2014
		$	 	  
			
	 M.
		 Free Cash Flow (Line G Minus Lines I through L)
		$	 	  

 Is line M equal to or greater than $0.00? 
  

			
	            No, not in compliance		             Yes, in compliance

  
 16 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 Schedule 2 

Exhibit D- BORROWING BASE CERTIFICATE 
  

 
  

			
	Borrower: Aegerion Pharmaceuticals, Inc.		Lender: Silicon Valley Bank
	Commitment Amount: $15,000,000.00		

  

							
	 ACCOUNTS RECEIVABLE
				
	 1
		 Accounts Receivable (invoiced) Book Value as of
                    
		$	            	  
	 2
		 Additions (Please explain on next page)
		$	 	  
	 3
		 Less: Intercompany / Employee / Non-Trade Accounts
		$	 	  
	 4
		 NET TRADE ACCOUNTS RECEIVABLE
		$	 	  
		
	 ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication and in each case to the extent required by the Loan Agreement)
				
	 5
		 90 Days Past Invoice Date
		$	 	  
	 6
		 Credit Balances over 90 Days
		$	 	  
	 7
		 Balance of 50% over 90 Day Accounts (Cross-Age or Current Affected)
		$	 	  
	 8
		 Foreign Account Debtor Accounts
		$	 	  
	 9
		 Foreign Invoiced and/or Collected Accounts
		$	 	  
	 10
		 Contra / Customer Deposit Accounts
		$	 	  
	 11
		 U.S. Government Accounts
		$	 	  
	 12
		 Promotion or Demo Accounts; Guaranteed Sale or Consignment Sale Accounts
		$	 	  
	 13
		 Accounts with Memo or Pre-Billings
		$	 	  
	 14
		 Contract Accounts; Accounts with Progress / Milestone Billings
		$	 	  
	 15
		 Accounts for Retainage Billings
		$	 	  
	 16
		 Trust / Bonded Accounts
		$	 	  
	 17
		 Bill and Hold Accounts
		$	 	  
	 18
		 Unbilled Accounts
		$	 	  
	 19
		 Non-Trade Accounts (If not already deducted above)
		$	 	  
	 20
		 Accounts with Extended Term Invoices (Net 90+)
		$	 	  
	 21
		 Chargebacks Accounts / Debit Memos
		$	 	  
	 22
		 Product Returns / Exchanges
		$	 	  
	 23
		 Disputed Accounts; Insolvent Account Debtor Accounts
		$	 	  
	 24
		 Other (Please explain on next page)
		$	 	  
	 25
		 Concentration Limits
		$	 	  
	 26
		 TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
		$	 	  
			
	 27
		 Eligible Accounts (#4 minus #26)
		$	 	  
	 28
		 ELIGIBLE AMOUNT OF ACCOUNTS (80% of #27)
		$	 	  
		
	 BALANCES
				
	 29
		 Maximum Loan Amount
		$	 	  
	 30
		 Total Funds Available [Lesser of #31 or (#28 plus #30)]
		$	 	  
	 31
		 Present balance owing on Line of Credit
		$	 	  
	 32
		 Outstanding under Sublimits
		$	 	  
	 33
		 RESERVE POSITION (#32 minus #33 and #34)
		$	 	  

 [Continued on following page.] 

  
 17 

 THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED 

WITH [*] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION. 
  

 Explanatory comments from previous page: 

 
  
  

 
  

 
 The undersigned represents and warrants that
this is true, complete and correct, and that the information in this Borrowing Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank. 

 

			
	COMMENTS:
			
			
			
			
			
	  
 By:
		  
  

 

			
			BANK USE ONLY
		
	Received by:		  

		
			AUTHORIZED SIGNER
		
	Date:		  

 
 

  
 18

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