Document:

EX-10.31

 Exhibit 10.31 

INTELLECTUAL PROPERTY SECURITY AGREEMENT 

This Intellectual Property Security Agreement is entered into as of May 13, 2015, by and between PARTNERS FOR GROWTH IV, L.P.
(“PFG”) and Sonic Foundry, Inc., a Maryland corporation with its principal place of business at 222 W. Washington Avenue, Madison, WI 53703 (“Grantor”), with reference to the following facts: 

A. PFG and Grantor, as Borrower, are parties to that certain Loan and Security Agreement of even date with this Agreement (as amended from
time to time, the “Loan Agreement”). (Capitalized terms used herein have the meaning assigned in the Loan Agreement.) 
 B.
Pursuant to the Loan Agreement, Grantor has granted to PFG a security interest in all of the Collateral. The Collateral includes without limitation all Intellectual Property (including without limitation the Intellectual Property described herein).

 Grantor agrees as follows: 

1. To secure performance of all of its “Obligations” as defined in the Loan Agreement, Grantor grants to PFG a security interest in
all of Grantor’s right, title and interest in Grantor’s “Intellectual Property”, including without limitation (i) the trademarks and servicemarks listed or required to be listed from time to time on Schedule A hereto,
whether registered or not, and all applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks, and (ii) the patents and
patent applications listed or required to be listed from time to time on Schedule B hereto and all like protections including, without limitation, all improvements, divisions, continuations, renewals, reissues, extensions and
continuations-in-part of the same, (iii) all copyrights, maskworks, software, computer programs and other works of authorship listed or required to be listed from time to time on Schedule C hereto, and all extensions and renewals
thereof, (iv) all domain names and domain name rights used in connection with its business and that of its Subsidiaries, all legal and equitable rights in domain names and ownership thereof, domain registry, domain servers, web hosting and
related contracts, services and facilities (collectively, “Domain Rights”) listed or required to be listed from time to time on Schedule D hereto, and all extensions and renewals thereof, and (iv) all rights to recover for past
or future infringement of any of the foregoing, and (v) all right, title and interest in and to any and all present and future license agreements with respect to any of the foregoing, and (vi) all present and future accounts, accounts
receivable and other rights to payment arising from, in connection with or relating to any of the foregoing. 
 2. Grantor represents and
warrants that (i) listed on Schedule A hereto are all trademark registrations and pending registrations owned or controlled by Grantor, (ii) listed on Schedule B are all 

 
patents and patent applications owned or controlled by Grantor, (iii) listed on Schedule C are all copyrights, software, computer programs, mask works, and other works of authorship
owned or controlled by Grantor which are registered with the United States Copyright Office, and (iv) listed on Schedule D are all Domain Rights in which Grantor has any legal, contractual or equitable right. Grantor shall:
(a) protect, defend and maintain the validity and enforceability of its intellectual property, other than intellectual property of immaterial business and monetary value that Grantor’s executive management has made a determination not to
maintain; (b) promptly advise PFG in writing of material infringements of its intellectual property; and (c) not allow any intellectual property material to Grantor’s business to be abandoned, forfeited or dedicated to the public
without PFG’s written consent. If, before the Obligations have been paid and/or performed in full, Grantor shall (i) adopt, use, acquire or apply for registration of any trademark, service mark or trade name, (ii) apply for
registration of any patent or obtain any patent or patent application; (iii) create or acquire any published or material unpublished works of authorship material to the business that is or is to be registered with the U.S. Copyright Office or
any non-U.S. equivalent or other Governmental Body; or (iv) register or acquire any domain name or domain name rights, then the provisions of Section 1 shall automatically apply thereto, and Grantor shall provide PFG written notice thereof
concurrently with delivery of Borrower’s monthly compliance certificate. Grantor shall further provide PFG with all information and details relating to the foregoing and shall take such further actions as PFG may reasonably request from time to
time to perfect or continue the perfection of PFG’s interest in such intellectual property. 
 3. This Agreement is being executed and
delivered pursuant to the Loan Agreement; nothing herein limits any of the terms or provisions of the Loan Agreement, and PFG’s rights hereunder and under the Loan Agreement are cumulative. This Agreement, the Loan Agreement and the other Loan
Documents set forth in full all of the representations and agreements of the parties with respect to the subject matter hereof and supersede all prior discussions, oral representations, oral agreements and oral understandings between the parties.
This Agreement may not be modified or amended, nor may any rights hereunder be waived, except in a writing signed by the parties hereto; provided, however, and notwithstanding the foregoing, PFG may amend the Schedules hereto from time to time when
it becomes aware of new Intellectual Property subject to this Agreement. In the event of any litigation between the parties based upon, arising out of, or in any way relating to this Agreement, the prevailing party shall be entitled to recover all
of its costs and expenses (including without limitation attorneys’ fees) from the non-prevailing party. This Agreement and all acts, transactions, disputes and controversies arising hereunder or relating hereto, and all rights and obligations
of PFG and Grantor shall be governed by, and construed in accordance with the internal laws (and not the conflict of laws rules) of the State of California. 

4. Grantor agrees that simultaneously with the execution of this Agreement, and thereafter upon any amendment of Schedule A,
Schedule B, Schedule C or Schedule D, the appropriate entities 

 
constituting Grantor shall execute notices in the forms appended hereto (each, a “Notice”), as appropriate, with respect to all of the pledged Intellectual Property, now owned or
hereafter acquired, and shall deliver each Notice to PFG for the purpose of recordation at the U.S. Patent and Trademark Office or the U.S. Copyright Office, or otherwise, as appropriate. Whether or not Grantor executes such a Notice reflecting new
Intellectual Property, Grantor hereby irrevocably appoints PFG as its lawful attorney-in-fact without any further authorization to file such notices, liens or other instruments as may be customary from time to time for PFG to perfect security
interests in Grantor’s Intellectual Property. With respect to the power of attorney granted in the attached Domain Rights Collateral Agreement and Notice, so long as no default has occurred and is continuing under the Loan Documents, PFG shall
not take any action referenced therein in the name of Grantor. 
 [Signature Page Follows] 

							
	Address of Grantor:				Sonic Foundry, Inc.
				
	222 W. Washington Avenue						
	Madison, WI 53703				By:		 /s/ Ken Minor

				
					Name:		 Ken Minor

				
					Title:		 Chief Financial Officer

			
	Address of PFG:				PARTNERS FOR GROWTH IV, L.P.
	Partners for Growth IV, L.P.						
	150 Pacific Avenue						
	San Francisco, California 94111						
				
					By:		 /s/ Lorraine Nield

				
					Name:		 Lorraine Nield

				
					Title:		Manager, Partners for Growth IV, LLC
					Its:		General Partner

 Intellectual Property Security Agreement Signature Page 

 SCHEDULE A 

Sonic Foundry, Inc. 

Trademark Schedule 
  

							
	 Serial Number - 
Registration Number
	  	 Date
	  	 Mark
	  	 Owner

	2744740	  	4/2000	  	Sonic Foundry	  	Sonic Foundry
	3172831	  	11/2006	  	Mediasite logo	  	Sonic Foundry
	3178908	  	12/2006	  	Mediasite	  	Sonic Foundry
	3761708	  	3/2010	  	Anvil logo	  	Sonic Foundry
	2399704	  	5/2006	  	UK - Mediasite	  	Sonic Foundry
	5004175	  	11/2006	  	Japan-Mediasite	  	Sonic Foundry
	619119	  	9/2004	  	Canada-Sonic Foundry	  	Sonic Foundry
	695781	  	9/2007	  	Canada-Mediasite	  	Sonic Foundry

 SCHEDULE B 

Sonic Foundry, Inc. 

Patent Schedule 
  

							
	 Serial Number -
Registration Number
	  	 Date
	  	 Mark
	  	 Owner

	2744740	  	4/2000	  	Sonic Foundry	  	Sonic Foundry
	3172831	  	11/2006	  	Mediasite logo	  	Sonic Foundry
	3178908	  	12/2006	  	Mediasite	  	Sonic Foundry
	3761708	  	3/2010	  	Anvil logo	  	Sonic Foundry
	2399704	  	5/2006	  	UK - Mediasite	  	Sonic Foundry
	5004175	  	11/2006	  	Japan-Mediasite	  	Sonic Foundry
	619119	  	9/2004	  	Canada-Sonic Foundry	  	Sonic Foundry
	695781	  	9/2007	  	Canada-Mediasite	  	Sonic Foundry

 SCHEDULE C 

Sonic Foundry, Inc. 

COPYRIGHTS 
  

							
	 Copyright Number
	  	 Date
	  	 Title / Work
	  	 Owner

				
	None	  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 SCHEDULE D 

Sonic Foundry, Inc. 

DOMAIN RIGHTS 
  

							
	 Domain Name
	  	 Service Provider Contact

Details and Account Number (if
any)
	  	 Owner and Registrar or
Administrative Contact

of Record
	  	 Expiry Date of

Domain

	Sonicfoundry.com	  	 For redundancy
  

TDS
 Co#6084431600

Jodie Laitinen
 608 310 7717

Jodie.laitinen@tdsmetro.com
  

AT&T
 Acct circuit id BREC693865

Jonathan Moen
 262 879 6714

jmoen@ems.att.com
	  	Sonic Foundry, Inc.	  	1/18/20
				
	Sonicfoundry.org	  	Same	  	Sonic Foundry, Inc.	  	6/2/19
				
	Sonicfoundry.net	  	Same	  	Sonic Foundry, Inc.	  	2/17/17
				
	Sfoundry.com	  	Same	  	Sonic Foundry, Inc.	  	12/3/19
				
	Media-mission.nl	  	 BytePark
 Weegree 63

2643 KC Pijnacker
 NL

+31-88-2983727
	  	Media Mission BV	  	7/1/15
				
	Mediamission.eu	  	Same	  	Media Mission BV	  	4/6/16
				
	Mediamission.nl	  	Same	  	Media Mission BV	  	7/1/15
				
	Mediamission.bv	  	Same	  	Media Mission BV	  	3/31/16
				
	Mediasite.eu	  	Same	  	Media Mission BV	  	4/6/16
				
	Mindflake.eu	  	Same	  	Media Mission BV	  	3/19/16
				
	Mindflake.nl	  	Same	  	Media Mission BV	  	3/19/16
				
	Mindflake.org	  	Same	  	Media Mission BV	  	3/19/16
				
	Mindflake.com	  	Same	  	Media Mission BV	  	3/19/16
				
	Poppecasting.nl	  	Same	  	Media Mission BV	  	10/17/15
				
	Poppekasting.nl	  	Same	  	Media Mission BV	  	10/17/15
				
	Puppetcasting.com	  	Same	  	Media Mission BV	  	10/17/15
				
	Streamplayer.info	  	Same	  	Media Mission BV	  	7/19/15

							
	Streamplayer.nl		Same		Media Mission BV		7/19/15
				
	Mediasite.co.jp		 USEN
 3-1-2 Kita Aoyama

Minato-ku
 Tokyo, Japan

+81-3-6823-7111
		Mediasite KK		Auto update continuously
				
	Activellj.jp		 GMO Internet
 Cerulean Tower 26-1

Sakuragaoka-cho
 Shibuy-ku

Tokyo, Japan
		Mediasite KK		10/31/16
				
	Liveonseminar.jp		GMO Internet		Mediasite KK		7/31/15
				
	Msk-web.jp		GMO Internet		Mediasite KK		3/31/16

 TRADEMARK COLLATERAL AGREEMENT AND NOTICE 

This Trademark Collateral Agreement and Notice dated as of April     , 2015 (“Trademark Agreement”), is between
Sonic Foundry, Inc., a Maryland corporation with its principal place of business at 222 W. Washington Avenue, Madison, WI 53703 (“Assignor”) and Partners for Growth IV, L.P., 150 Pacific Avenue, San Francisco, CA 94111
(“Assignee”) pursuant to a Loan and Security Agreement and an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP Security Agreement”) and pursuant to certain
other loan documents referenced therein (collectively, the “Loan Documents”). 
 WHEREAS, Assignor is the owner of certain
trademarks, including all federal applications and/or registrations therefor, together with the goodwill of the business connected with the use of and symbolized thereby, as listed on Exhibit 1 hereto (the “Marks”); and 

WHEREAS, Assignee has agreed to extend certain credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral
for the Obligations (as defined in the Loan Documents) a security interest and lien in and to the Marks and all proceeds thereof and all other related claims and rights as more fully described in the Loan Documents; 

NOW THEREFORE, for good and valuable consideration, as security for the due and timely payment and performance of the Obligations, Assignor
hereby pledges and grants to Assignee a security interest and lien in and to the Marks and all proceeds thereof and gives notice of such security interest and the existence of such Security Agreement providing therefor. 

Executed as of the date first above written. 
  

											
	Assignor:				Assignee:
				
			SONIC FOUNDRY, INC.				PARTNERS FOR GROWTH IV, L.P.
						
			By		  
				By		  

					Chief Executive Officer						
						
			By		  
				Name:		  

					Secretary						
									Title:		Manager, Partners for Growth IV, LLC
											Its General Partner

 EXHIBIT 1 

Sonic Foundry, Inc. 

Trademark Schedule 
  

							
	 Serial Number -

Registration Number
	  	 Date
	  	 Mark
	  	 Owner

	2744740	  	4/2000	  	Sonic Foundry	  	Sonic Foundry
	3172831	  	11/2006	  	Mediasite logo	  	Sonic Foundry
	3178908	  	12/2006	  	Mediasite	  	Sonic Foundry
	3761708	  	3/2010	  	Anvil logo	  	Sonic Foundry
	2399704	  	5/2006	  	UK - Mediasite	  	Sonic Foundry
	5004175	  	11/2006	  	Japan-Mediasite	  	Sonic Foundry
	619119	  	9/2004	  	Canada-Sonic Foundry	  	Sonic Foundry
	695781	  	9/2007	  	Canada-Mediasite	  	Sonic Foundry

 PATENT COLLATERAL AGREEMENT AND NOTICE 

This Patent Collateral Agreement and Notice dated as of April     , 2015, (“Patent Agreement”), is between Sonic
Foundry, Inc. a Maryland corporation with its principal place of business at 222 W. Washington Avenue, Madison, WI 53703 (“Assignor”) and Partners for Growth IV, L.P., 150 Pacific Avenue, San Francisco, CA 94111
(“Assignee”) pursuant to a Loan and Security Agreement and an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP Security Agreement”) and pursuant to certain
other loan documents referenced therein (collectively, the “Loan Documents”). 
 WHEREAS, Assignor is the owner of certain
United States patents and/or patent applications as listed on Exhibit 1 hereto (the “Patents”); and 
 WHEREAS, Assignee
has agreed to extend certain credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral for the Obligations (as defined in the Loan Documents) a security interest and lien in and to the Patents and all proceeds
thereof and all other related claims and rights as more fully described in the Loan Documents; 
 NOW THEREFORE, for good and valuable
consideration, as security for the due and timely payment and performance of the Obligations, Assignor hereby pledges and grants to Assignee a security interest and lien in and to the Patents and all proceeds thereof and gives notice of such
security interest and the existence of the IP Security Agreement providing therefor. 
 Executed as of the date first above written. 

 

											
	Assignor:				Assignee:
				
			Sonic Foundry, Inc.				PARTNERS FOR GROWTH IV, L.P.
						
			By		  
				By		  

					Chief Executive Officer						
						
			By		  
				Name:		  

					Secretary						
									Title:		Manager, Partners for Growth IV, LLC
											Its General Partner

 EXHIBIT 1 

Sonic Foundry, Inc. 

Patent Schedule 
  

							
	 Serial Number -

Registration Number
	  	 Date
	  	 Mark
	  	 Owner

	2744740	  	4/2000	  	Sonic Foundry	  	Sonic Foundry
	3172831	  	11/2006	  	Mediasite logo	  	Sonic Foundry
	3178908	  	12/2006	  	Mediasite	  	Sonic Foundry
	3761708	  	3/2010	  	Anvil logo	  	Sonic Foundry
	2399704	  	5/2006	  	UK - Mediasite	  	Sonic Foundry
	5004175	  	11/2006	  	Japan-Mediasite	  	Sonic Foundry
	619119	  	9/2004	  	Canada-Sonic Foundry	  	Sonic Foundry
	695781	  	9/2007	  	Canada-Mediasite	  	Sonic Foundry

 COPYRIGHT COLLATERAL AGREEMENT AND NOTICE 

This Copyright Collateral Agreement and Notice dated as of April     , 2015 (“Copyright Agreement”), is between
Sonic Foundry, Inc., a Maryland corporation with its principal place of business at 222 W. Washington Avenue, Madison, WI 53703 (“Assignor”) and Partners for Growth IV, L.P., 150 Pacific Avenue, San Francisco, CA 94111
(“Assignee”) pursuant to a Loan and Security Agreement, an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP Security Agreement”) and pursuant to certain
other loan documents referenced therein (collectively, the “Loan Documents”). 
 WHEREAS, Assignor is or may in the future
be the owner of certain copyrightable works which are the subject of United States copyright registrations and/or copyright applications as listed from time to time on Exhibit 1 hereto (the “Copyrights”); and 

WHEREAS, Assignee has agreed to extend certain credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral
for the Obligations (as defined in the Loan Documents) a security interest and lien in and to the Copyrights and all proceeds thereof and all other related claims and rights as more fully described in the IP Security Agreement in favor of the
Assignee, by and among Assignor and Assignee; 
 NOW THEREFORE, for good and valuable consideration, as security for the due and timely
payment and performance of the Obligations, Assignor hereby pledges and grants to Assignee a security interest and lien in and to the Copyrights and all proceeds thereof and gives notice of such security interest and the existence of the IP Security
Agreement providing therefor. 
 Executed as of the date first above written. 

 

											
	Assignor:				Assignee:
				
			Sonic Foundry, Inc.				PARTNERS FOR GROWTH IV, L.P.
						
			By		  
				By		  

					Chief Executive Officer						
						
			By		  
				Name:		  

					Secretary						
									Title:		Manager, Partners for Growth IV, LLC
											Its General Partner

 EXHIBIT 1 

Sonic Foundry, Inc. 

COPYRIGHT SCHEDULE 
  

							
	 Copyright Number
	  	 Date
	  	 Title / Work
	  	 Owner

				
	None	  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 DOMAIN RIGHTS COLLATERAL AGREEMENT AND NOTICE 

This Domain Rights Collateral Agreement and Notice dated as of April     , 2015 (“Domain Agreement”), is between
Sonic Foundry, Inc., a Maryland corporation with its principal place of business at 222 W. Washington Avenue, Madison, WI 53703 (“Assignor”) and Partners for Growth IV, L.P., 150 Pacific Avenue, San Francisco, CA 94111
(“Assignee”) pursuant to a Loan and Security Agreement, an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP Security Agreement”) and pursuant to certain
other loan documents referenced therein (collectively, the “Loan Documents”). 
 WHEREAS, Assignor is the owner of certain
Domain Rights as defined in the Loan Documents which are, as of the date hereof, as listed on Exhibit 1 hereto (the “Domain Rights”); and 

WHEREAS, Assignee has agreed to extend certain credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral
for the Obligations (as defined in the Loan Documents) a security interest and lien in and to the Domain Rights and all proceeds thereof and all other related claims and rights as more fully described in the IP Security Agreement in favor of the
Assignee, by and among Assignor and Assignee; 
 NOW THEREFORE, for good and valuable consideration, as security for the due and timely
payment and performance of the Obligations: (1) Assignor hereby pledges and grants to Assignee a security interest and lien in and to the Domain Rights and all proceeds thereof and gives notice of such security interest and the existence of the
IP Security Agreement providing therefor; and (2) Assignor hereby irrevocably appoints PFG as its lawful attorney-in-fact without any further authorization to take any action and file any notice on behalf of Assignor that Assignor itself could
file in respect of its Domain Rights, including without limitation, to transfer Domain Rights, change administrative contacts in respect of Domain Rights, maintain Domain Rights, and provide instructions to domain hosting services and any domain
name registrars. 
 Executed as of the date first above written. 
  

											
	Assignor:				Assignee:
				
			Sonic Foundry, Inc.				PARTNERS FOR GROWTH IV, L.P.
						
			By		  
				By		  

					Chief Executive Officer						
						
			By		  
				Name:		  

					Secretary						
									Title:		Manager, Partners for Growth IV, LLC
											Its General Partner

 SCHEDULE D 

Sonic Foundry, Inc. 

DOMAIN RIGHTS 
  

							
	 Domain Name
	  	 Service Provider Contact

Details and Account Number (if
any)
	  	 Owner and Registrar or
Administrative Contact

of Record
	  	 Expiry Date of

Domain

	Sonicfoundry.com	  	 For redundancy
  

TDS
 Co#6084431600

Jodie Laitinen
 608 310 7717

Jodie.laitinen@tdsmetro.com
  

AT&T
 Acct circuit id BREC693865

Jonathan Moen
 262 879 6714

jmoen@ems.att.com
	  	Sonic Foundry, Inc.	  	1/18/20
				
	Sonicfoundry.org	  	Same	  	Sonic Foundry, Inc.	  	6/2/19
				
	Sonicfoundry.net	  	Same	  	Sonic Foundry, Inc.	  	2/17/17
				
	Sfoundry.com	  	Same	  	Sonic Foundry, Inc.	  	12/3/19
				
	Media-mission.nl	  	 BytePark
 Weegree 63

2643 KC Pijnacker
 NL

+31-88-2983727
	  	Media Mission BV	  	7/1/15
				
	Mediamission.eu	  	Same	  	Media Mission BV	  	4/6/16
				
	Mediamission.nl	  	Same	  	Media Mission BV	  	7/1/15
				
	Mediamission.bv	  	Same	  	Media Mission BV	  	3/31/16
				
	Mediasite.eu	  	Same	  	Media Mission BV	  	4/6/16
				
	Mindflake.eu	  	Same	  	Media Mission BV	  	3/19/16
				
	Mindflake.nl	  	Same	  	Media Mission BV	  	3/19/16
				
	Mindflake.org	  	Same	  	Media Mission BV	  	3/19/16
				
	Mindflake.com	  	Same	  	Media Mission BV	  	3/19/16
				
	Poppecasting.nl	  	Same	  	Media Mission BV	  	10/17/15
				
	Poppekasting.nl	  	Same	  	Media Mission BV	  	10/17/15

							
	Puppetcasting.com		Same		Media Mission BV		10/17/15
				
	Streamplayer.info		Same		Media Mission BV		7/19/15
				
	Streamplayer.nl		Same		Media Mission BV		7/19/15
				
	Mediasite.co.jp		 USEN
 3-1-2 Kita Aoyama

Minato-ku
 Tokyo, Japan

+81-3-6823-7111
		Mediasite KK		Auto update continuously
				
	Activellj.jp		 GMO Internet
 Cerulean Tower 26-1

Sakuragaoka-cho
 Shibuy-ku

Tokyo, Japan
		Mediasite KK		10/31/16
				
	Liveonseminar.jp		GMO Internet		Mediasite KK		7/31/15
				
	Msk-web.jp		GMO Internet		Mediasite KK		3/31/16EX-4.1

 Exhibit 4.1 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE
SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND
SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION. 
 WARRANT
TO PURCHASE STOCK 
  

			
	Company:		Nanosphere, Inc.
	Number of Shares:		600,000
	Type/Series of Stock:		Common Stock, par value $0.01 per share
	Warrant Price:		$0.01 per share
	Issue Date:		May 14, 2015
	Expiration Date:		May 14, 2025 (See also Section 5.1(b))
	Credit Facility:		This Warrant to Purchase Stock (“Warrant”) is issued in connection with that certain Loan and Security Agreement of even date herewith between NSPH Funding LLC and the Company (the “Loan
Agreement”).

 THIS WARRANT CERTIFIES THAT, for good and valuable consideration, NSPH Funding LLC, a Delaware limited
liability company with an office located at 50 Main Street, Suite 1000, White Plains, NY 10606 (together with any successor or permitted assignee or transferee of this Warrant or of any shares issued upon exercise hereof, “Holder”)
is entitled to purchase the number of fully paid and non-assessable shares (the “Shares”) of the above-stated Type/Series of Stock (the “Class”) of the above-named company (the “Company”) at the
above-stated Warrant Price, all as set forth above and as adjusted pursuant to Section 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant. 

SECTION 1. EXERCISE. 

1.1 Method of Exercise. Holder may at any time and from time to time exercise this Warrant, in whole or in part, by delivering to the
Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant to a cashless exercise set forth in
Section 1.2, a check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for the Shares being purchased. 

1.2 Cashless Exercise. On any exercise of this Warrant, in lieu of payment of the aggregate Warrant Price in the manner as specified in
Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal to the 

 
value of this Warrant, or portion hereof as to which this Warrant is being exercised. Thereupon, the Company shall issue to the Holder such number of fully paid and non-assessable Shares as are
computed using the following formula: 
  

							
			 	X = Y(A-B)/A
			
	where:						
			
			 	X =	  		the number of Shares to be issued to the Holder;
			
			 	Y =	  		the number of Shares with respect to which this Warrant is being exercised (inclusive of the Shares surrendered to the Company in payment of the aggregate Warrant Price);
			
			 	A =	  		the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and
			
			 	B =	  		the Warrant Price.

 1.3 Fair Market Value. If the Company’s common stock is then traded or quoted on a nationally
recognized securities exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”), the fair market value of a Share shall be the closing price or last sale price of a share of common stock reported for
the Business Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company. If the Company’s common stock is not traded in a Trading Market, the Board of Directors of the Company shall
determine the fair market value of a Share in its reasonable good faith judgment. 
 1.4 Delivery of Certificate and New Warrant.
Within three (3) Business Days after Holder exercises this Warrant in the manner set forth in Section 1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon such exercise and, if
this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the Shares not so acquired. 
 1.5
Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement
reasonably satisfactory in form, substance and amount to the Company or, in the case of mutilation, on surrender of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of
this Warrant, a new warrant of like tenor and amount. 

  
 2 

 1.6 Treatment of Warrant Upon Acquisition of Company. 

(a) Acquisition. For the purpose of this Warrant, “Acquisition” means any transaction or series of related
transactions involving: (i) the sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company; (ii) any merger or consolidation of the Company into or with another person or entity (other than
a merger or consolidation effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or
reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the
stockholders of the Company of shares representing a majority of the Company’s then-total outstanding combined voting power. 
 (b)
Treatment of Warrant at Acquisition. In the event of an Acquisition in which the consideration to be received by the Company’s stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable
Securities (a “Cash/Public Acquisition”), either (i) Holder shall exercise this Warrant pursuant to Section 1.1 and/or 1.2 and such exercise will be deemed effective immediately prior to and contingent upon the
consummation of such Acquisition or (ii) if Holder elects not to exercise the Warrant, this Warrant will expire immediately prior to the consummation of such Acquisition. 

(c) The Company shall provide Holder with written notice of its request relating to the Cash/Public Acquisition (together with such reasonable
information as Holder may reasonably require regarding the treatment of this Warrant in connection with such contemplated Cash/Public Acquisition giving rise to such notice), which is to be delivered to Holder not less than seven (7) Business
Days prior to the closing of the proposed Cash/Public Acquisition. Notwithstanding the foregoing, if, immediately prior to the Cash/Public Acquisition, the fair market value of one Share (or other security issuable upon the exercise hereof) as
determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all
Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall promptly notify the Holder of the number of Shares (or such other securities) issued upon such exercise to the Holder and Holder shall be
deemed to have restated each of the representations and warranties in Section 4 of this Warrant as the date thereof. 
 (d) Upon the
closing of any Acquisition other than a Cash/Public Acquisition defined above, the acquiring, surviving or successor entity shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or
other property as would have been paid for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time
in accordance with the provisions of this Warrant. 
 (e) As used in this Warrant, “Marketable Securities” means securities
meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting 

  
 3 

 
requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required
reports and other information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or
prior to the closing thereof is then traded or quoted in a Trading Market; and (iii) Holder would not be restricted, contractually or under applicable federal or state securities laws, from publicly re-selling, within six (6) months
following the closing of such Acquisition, all of the issuer’s shares and/or other securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition. 

SECTION 2. ADJUSTMENTS TO THE SHARES AND WARRANT PRICE. 

2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the Class
payable in common stock or other securities or property (other than cash), then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities and property
which Holder would have received had Holder owned the Shares of record as of the date the dividend or distribution occurred. If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of
shares, the number of Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased. If the outstanding shares of the Class are combined or consolidated, by reclassification or otherwise,
into a lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased. 

2.2 Reclassification, Exchange, Combinations or Substitution. Upon any event whereby all of the outstanding shares of the Class are
reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from and after the consummation of such event, this Warrant will be exercisable for the number, class and
series of Company securities that Holder would have received had the Shares been outstanding on and as of the consummation of such event, and subject to further adjustment thereafter from time to time in accordance with the provisions of this
Warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, combinations substitutions, replacements or other similar events. 

2.3 No Fractional Share. No fractional Share shall be issuable upon exercise of this Warrant and the number of Shares to be issued
shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of the Warrant, the Company shall eliminate such fractional Share interest by paying Holder in cash the amount computed by multiplying the
fractional interest by (a) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (b) the then-effective Warrant Price. 

2.4 Notice/Certificate as to Adjustments. Upon each adjustment of the Warrant Price, Class and/or number of Shares, the Company, at the
Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or number of Shares and facts upon which such adjustment is based. The

  
 4 

 
Company shall, upon written request from Holder, furnish Holder with a certificate of its Chief Financial Officer, including computations of such adjustment and the Warrant Price, Class and
number of Shares in effect upon the date of such adjustment. 
 SECTION 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY. 

3.1 Representations and Warranties. The Company represents and warrants to, and agrees with, the Holder that all Shares which may be
issued upon the exercise of this Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any liens and encumbrances except for
restrictions on transfer provided for herein or under applicable federal and state securities laws. The Company covenants that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock such number
of shares of the Class, common stock and other securities as will be sufficient to permit the exercise in full of this Warrant and the conversion of the Shares into common stock or such other securities. 

3.2 Notice of Certain Events. If the Company proposes at any time to: 

(a) declare any dividend or distribution upon the outstanding shares of the Class or common stock, whether in cash, property, stock, or other
securities and whether or not a regular cash dividend; 
 (b) offer for subscription or sale pro rata to the holders of the outstanding
shares of the Class any additional shares of any class or series of the Company’s stock (other than pursuant to contractual pre-emptive rights); 

(c) effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares of the
Class; or 
 (d) effect an Acquisition or to liquidate, dissolve or wind up; 

then, in connection with each such event, the Company shall give Holder: 

(1) at least seven (7) Business Days prior written notice of the date on which a record will be taken for such dividend,
distribution, or subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and
(b) above; and 
 (2) in the case of the matters referred to in (c) and (d) above at least seven
(7) Business Days prior written notice of the date when the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange their shares for the securities or other property
deliverable upon the occurrence of such event). 
 Reference is made to Section 1.6(c) whereby this Warrant will be deemed to be exercised pursuant to
Section 1.2 hereof if the Company does not give written notice to Holder of a Cash/Public Acquisition as required by the terms hereof. Company will also provide information requested by Holder that is reasonably necessary to enable Holder to
comply with Holder’s accounting or reporting requirements. 

  
 5 

 3.3 Registration Rights Agreement. The Company’s obligations to register the Shares
shall be as set forth in the Registration Rights Agreement entered into among the Company and the Lenders (as defined in the Loan Agreement) concurrently herewith (the “Registration Rights Agreement”). 

SECTION 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER. 

The Holder represents and warrants to the Company as follows: 

4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon exercise of this Warrant by Holder are being acquired
for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act. Holder also represents that it has not been formed for the specific purpose of acquiring
this Warrant or the Shares. 
 4.2 Disclosure of Information. Holder is aware of the Company’s business affairs and financial
condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. Holder further has
had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which Holder has access. 

4.3 Investment Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial
risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such
knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the
Company and certain of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business acumen and financial circumstances of such persons. 

4.4 Accredited Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated under the
Act. 
 4.5 The Act. The Company shall settle these warrants with unregistered shares. In no event shall the Company be required to
settle any warrant for a net cash payment by the Company (i.e., net cash settle ). Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under the Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. Holder understands that this Warrant and 

  
 6 

 
the Shares issued upon any exercise hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws, or unless exemption from
such registration and qualification are otherwise available. Holder is aware of the provisions of Rule 144 promulgated under the Act. 
 4.6
No Voting Rights. Holder, as a Holder of this Warrant, will not have any voting rights until the exercise of this Warrant. 
 SECTION
5. MISCELLANEOUS. 
 5.1 Term and Automatic Cashless Exercise Upon Expiration. 

(a) Term. Subject to the provisions of Section 1.6 above, this Warrant is exercisable in whole or in part at any time and from
time to time on or before 6:00 P.M., Eastern time, on the Expiration Date and shall be void thereafter. 
 (b) Automatic Cashless
Exercise upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant
Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been
exercised, and the Company shall, within a reasonable time, deliver a certificate representing the Shares (or such other securities) issued upon such exercise to Holder. 

5.2 Legends. The Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted
with a legend in substantially the following form: 
 THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO NSPH FUNDING LLC DATED MAY 14, 2015, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH
REGISTRATION. 
 5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon exercise of this Warrant
(and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor and the
transferee (including, without limitation, the delivery of investment representation letters and 

  
 7 

 
legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to any
affiliate of Holder or to a Lender, provided that such transferee is an “accredited investor” as defined in Regulation D promulgated under the Act. Additionally, the Company shall also not require an opinion of counsel if there is no
material question as to the availability of Rule 144 promulgated under the Act. 
 5.4 Transfer Procedure. Subject to the provisions
of Section 5.3 and upon providing the Company with written notice, Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable directly or indirectly, upon conversion of the
Shares, if any) to any transferee, provided, however, in connection with any such transfer, Holder will give the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification number
of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable); and provided further, that any subsequent transferee shall agree in writing with the Company to be
bound by all of the terms and conditions of this Warrant. 
 5.5 Notices. All notices and other communications hereunder from the
Company to the Holder, or vice versa, shall be deemed delivered and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class
registered or certified mail, postage prepaid, (iii) upon actual receipt if given by facsimile or electronic mail and such receipt is confirmed in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable
overnight courier service, courier fee prepaid, in any case at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to time in accordance with the provisions of this
Section 5.5. All notices to Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise: 

NSPH Funding LLC 
 50 Main
Street 
 Suite 1000 
 White
Plains, NY 10606 
 Attention: Stephen J. DeNelsky 

Email: steve@lsafunding.com 

With a copy (which shall not constitute notice) to: 

Latham & Watkins LLP 

505 Montgomery Street 
 Suite
2000 
 San Francisco, CA 94111-6538 

Attn: Haim Zaltzman 
 Fax:
415.395.8095 
 Email: haim.zaltzman@lw.com 

  
 8 

 Notice to the Company shall be addressed as follows until Holder receives notice of a change in
address: 
 Nanosphere, Inc. 

4088 Commercial Avenue 

Northbrook, IL 60062 
 Attn:
Michael K. McGarrity, President and Chief Executive Officer 
 Fax: (847) 400-9199 

Email: mmcgarrity@nanosphere.us 

With a copy (which shall not constitute notice) to: 

Seyfarth Shaw LLP 
 620 Eighth
Avenue 
 New York, NY 10018 

Attn: Blake Hornick 
 Fax:
917-344-1203 
 Email: bhornick@seyfarth.com 

5.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally or in a particular
instance and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

5.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the
party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 

5.8 Counterparts; Facsimile/Electronic Signatures. This Warrant may be executed in counterparts, all of which together shall constitute
one and the same agreement. Any signature page delivered electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment thereto. 

5.9 Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York, without giving
effect to its principles regarding conflicts of law. 
 5.10 Headings. The headings in this Warrant are for purposes of reference
only and shall not limit or otherwise affect the meaning of any provision of this Warrant. 
 5.11 Business Days. “Business
Day” is any day that is not a Saturday, Sunday or a day on which banks in New York, New York are closed. 
 [Signature page
follows] 

  
 9 

 IN WITNESS WHEREOF, the parties have caused this Warrant to Purchase Stock to be executed by
their duly authorized representatives effective as of the Issue Date written above. 
 “COMPANY” 

NANOSPHERE, INC. 
  

			
	By:   /s/ Michael McGarrity
		
	 Name:
		Michael McGarrity
			(Print)
	 Title:
		CEO

 “HOLDER” 
 NSPH
FUNDING LLC 
  

			
	By:   /s/ Stephen J. DeNelsky
		
	 Name:
		Stephen J. DeNelsky
			(Print)
	 Title:
		President

  
 10 

 APPENDIX 1 

NOTICE OF EXERCISE 
 1.
The undersigned Holder hereby exercises its right purchase                 shares of the Common Stock of NANOSPHERE, INC. (the “Company”) in accordance
with the attached Warrant To Purchase Stock, and tenders payment of the aggregate Warrant Price for such shares as follows: 
  

	 	[    ]	check in the amount of $         payable to order of the Company enclosed herewith 

  

	 	[    ]	Wire transfer of immediately available funds to the Company’s account 

  

	 	[    ]	Cashless Exercise pursuant to Section 1.2 of the Warrant 

  

	 	[    ]	Other [Describe]                                
                                         
                                         
                                         
           

 2. Please issue a certificate or certificates representing
the Shares in the name specified below: 
  

					
			  

            Holder’s Name
		
					
			
			  
		
			
			  
		
			            (Address)		

 3. By its execution below and for the benefit of the Company, Holder hereby restates each of the
representations and warranties in Section 4 of the Warrant to Purchase Stock as of the date hereof. 
  

			
			 HOLDER:
  

                          
                                         
                                         
                   

		
			By:                                     
                                         
                                         
  
		
			Name:                                     
                                         
                                      
		
			Title:                                     
                                         
                                        

		
			(Date):                                     
                                         
                                     

  
 Schedule 1

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