Document:

EX-10.6.8

 Exhibit 10.6.8 

SEVENTH AMENDMENT OF VENTURE LOAN AND SECURITY AGREEMENT 

This SEVENTH AMENDMENT OF VENTURE LOAN AND SECURITY AGREEMENT (this “Agreement”), effective and dated as of December 1,
2014, is entered into by and between Xtera Communications, Inc., a Delaware corporation (“Xtera” or “Borrower”) and Horizon Funding Trust 2013-1 (“Horizon Trust”), as assignee of Horizon Technology Finance
Corporation, a Delaware corporation (“Horizon” and collectively with Horizon Trust, “Lender”). 

RECITALS 
 A. Xtera and Lender are parties
to a certain Venture Loan and Security Agreement dated as of May 10, 2011, as amended from time to time (as amended, the “Loan Agreement”) pursuant to which Lender, among other things, has (i) provided certain loans to
Xtera as evidenced by (1) a certain Secured Promissory Note (Loan A) executed by Xtera in favor of Lender, dated as of May 10, 2011, in the original principal amount of Ten Million Dollars ($10,000,000) (the “Loan A Note”)
and (2) a certain Secured Promissory Note (Loan B) executed by Xtera in favor of Lender, dated as of December 27, 2011, in the original principal amount of Two Million Dollars ($2,000,000) (the “Loan B Note” and together
with the Loan A Note, the “Notes”), and (ii) been granted a security interest in all assets of Xtera, including Intellectual Property (as defined in the Loan Agreement). 

B. Horizon transferred all right, title and interest in and to the Notes to Horizon Funding 2013-1 LLC (“Funding”) on or about June 28,
2013. 
 C. Funding subsequently sold all right, title and interest in and to the Notes to Horizon Trust on or about June 28, 2013. 

D. Xtera has now requested that Lender amend the Loan Agreement to modify the definition of “Permitted Indebtedness”. 

E. Lender is willing to grant such request, but only to the extent, and in accordance with the terms, and subject to the conditions, set forth herein. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Co-Borrowers and Lender hereby agree as follows: 

 

	1.	Definitions; Interpretation. Unless otherwise defined herein, all capitalized terms used herein and defined in the Loan Agreement shall have the respective meanings given to those terms in the Loan Agreement.
Other rules of construction set forth in the Loan Agreement, to the extent not inconsistent with this Agreement, apply to this Agreement and are hereby incorporated by reference. 

	2.	Amendments to Loan Agreement. 

  

	 	(a)	Borrower and Lender hereby agree that subsection (e) of the definition of “Permitted Indebtedness” in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the
following: 

 “(e) Indebtedness in an aggregate principal amount not to exceed Twelve Million Five Hundred Thousand and
00/100 Dollars ($12,500,000), consisting of (i) a revolving credit facility in which advances are limited to a formula as set forth in a subordination agreement between the Lender and the bank or financial institution providing such credit
facility and (ii) ancillary banking services customary for borrowers similar to Borrower, including, without limitation, automated clearing house, corporate credit card services, foreign exchange, letters of credit and other treasury management
services, in an aggregate amount not to exceed Three Million and 00/100 Dollars ($3,000,000).” 
  

	3.	Consent. Lender consents to the Borrower entering into that certain Loan and Security Agreement by and between Borrower and Square 1 Bank (the “Bank”)dated on or about the date hereof.

  

	4.	Conditions to Effectiveness. Lender’s consent and agreement contained herein is expressly conditioned on the following: 

  

	 	(a)	Borrower executing and delivering to Lender an executed copy of this Agreement; and 

  

	 	(b)	Borrower reimburses Lender for its legal fees in the sum of Two Thousand Five Hundred Dollars ($2,500) incurred in connection with the drafting and negotiation of this Agreement and a certain Subordination Agreement by
and between Lender and the Bank. 

  

	5.	Effect of Agreement. On and after the date hereof, each reference to the Loan Agreement in the Loan Agreement or in any other document shall mean the Loan Agreement as amended by this Agreement. Except as
expressly provided hereunder, the execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power, or remedy of Lender, nor constitute a waiver of any provision of the Loan Agreement. Except to the limited
extent expressly provided herein, nothing contained herein shall, or shall be construed to (nor shall the Borrower ever argue to the contrary) (i) modify the Loan Agreement or any other Loan Document (ii) modify, waive, impair, or affect
any of the covenants, agreements, terms, and conditions thereof, or (iii) waive the due keeping, observance and/or performance thereof, each of which is hereby ratified and confirmed by the Borrower. Except as expressly amended herein, the Loan
Agreement remains in full force and effect. 

  

	6.	Headings. Headings in this Agreement are for convenience of reference only and are not part of the substance hereof. 

  

	7.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut without reference to conflicts of law rules. 

 

	8.	Counterparts. This Agreement may be executed in any number of counterparts, including by electronic or facsimile transmission, each of which when so delivered shall be deemed an original, but all such
counterparts taken together shall constitute but one and the same instrument. 

  
 2 

	9.	Integration. This Agreement and the Loan Documents constitute and contain the entire agreement of Borrower and Lender with respect to their respective subject matters, and supercede any and all prior agreements,
correspondence and communications. 

 [Remainder of Page Intentionally left Blank] 

  
 3 

 IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed as of the day
and year first above written. 
  

					
	BORROWER:
	
	XTERA COMMUNICATIONS, INC.
		
	By:	 	 /s/ Jon R. Hopper

		 	Name:	 	 Jon R. Hopper

		 	Title:	 	 CEO

	
	LENDER:
	
	HORIZON FUNDING TRUST 2013-1
	By: Horizon Technology Finance Corporation, its agent
		
	By:	 	 /s/ Robert D. Pomeroy, Jr.

		 	Robert D. Pomeroy, Jr.
		 	Chief Executive Officer

  
 [Signature page to
Seventh Amendment to Venture Loan and Security Agreement]EX-10.6.9

 Exhibit 10.6.9 

GRANT OF SECURITY INTEREST 

PATENTS 
 THIS GRANT OF
SECURITY INTEREST, dated as of May 10, 2011, is executed by XTERA COMMUNICATIONS, INC., a Delaware corporation with an address of 500 W. Bethany Drive, Suite 100 Allen, Texas 75013 (“Debtor”), in favor of HORIZON TECHNOLOGY
FINANCE CORPORATION, a Delaware corporation with an address of 312 Farmington Avenue, Farmington, Connecticut 06032 (“Secured Party”). 

A. Pursuant to a certain Venture Loan and Security Agreement dated on or about the date hereof (the “Agreement”) by and
between Debtor and the Secured Party, the Secured Party has agreed to extend credit to Debtor upon the terms and subject to the conditions set forth therein; 

B. Debtor owns the patents and/or applications for patents, more particularly described on Schedules 1-A and 1-B annexed hereto as part
hereof (collectively, the “Patents”); 
 C. Pursuant to the Agreement, Debtor has granted to Secured Party a security
interest in all right, title and interest of Debtor in and to the Patents, together with any reissue, continuation, continuation-in-part or extension thereof, and all proceeds thereof, including any and all causes of action which may exist by reason
of infringement thereof for the full term of the Patents (the “Collateral”), to secure the prompt payment, performance and observance of the Obligations (as defined in the Agreement); 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, Debtor does hereby further grant to Secured
Party a security interest in the Collateral to secure the prompt payment, performance and observance of the Obligations. 
 Debtor does
hereby further acknowledge and affirm that the rights and remedies of Secured Party with respect to the security interest in the Collateral granted hereby are more fully set forth in the Agreement, the terms and provisions of which are hereby
incorporated herein by reference as if fully set forth herein. 
 IN WITNESS WHEREOF, Debtor has caused this instrument to be executed as of
the day and year first written above. 
  

			
	XTERA COMMUNICATIONS, INC.
		
	By:	 	/s/ Paul Colan
		 	Paul Colan
		 	Chief Financial Officer

 SCHEDULE 1-A TO GRANT OF SECURITY INTEREST 

PATENTS 
  

							
	Patent	  	Owner	  	Registration Number	  	Registration Date
				
	 Control of Raman amplifiers
 through pump
power
 adjustment
	  	Debtor	  	US 6,807,197	  	October 19, 2004
				
	 Splice in PM fiber in order
 to depolarize pump
light
	  	 The Regents of

the University
 of Michigan
	  	US 6,052,393	  	April 18, 2000
				
	 Splice in PM fiber in order
 to depolarize pump
light
	  	Debtor	  	US 6,370,164	  	April 9, 2002
				
	 Splice in PM fiber in order
 to depolarize pump
light
	  	Debtor	  	US 6,833,946	  	December 21, 2004
				
	 Bidirectionally pumped
 Raman
amplifiers
	  	Debtor	  	US 6,714,342	  	March 30, 2004
				
	 Bidirectionally pumped
 Raman
amplifiers
	  	Debtor	  	US 6,631,025	  	October 7, 2003
				
	Raman amplification	  	Debtor	  	US 6,101,024	  	August 8, 2000
				
	Raman amplification	  	Debtor	  	US 6,239,902	  	May 29, 2001
				
		  	 The Regents of

the University of
 Michigan
	  		  	
				
	 Ultra long span
 unrepeatered Raman

systems
	  	Debtor	  	US 7,885,550	  	February 8, 2011
				
	 Ultra long span
 unrepeatered Raman

systems
	  	Debtor	  	US 7,567,593	  	July 28, 2009

 SCHEDULE 1-B TO GRANT OF SECURITY INTEREST 

PATENT APPLICATIONS 
  

							
	Patent Application	 	Owner	 	Application Number	  	Application Date

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