Document:

Limited Waiver and Amendment to Loan Documents with Silicon Valley Bank

 Exhibit 10.23 
 Silicon Valley Bank 
 Limited Waiver and 
 Amendment to Loan Documents 
  

			
	Borrower:	  	Applied Precision Holdings, LLC
		  	            Applied Precision, LLC
		
	Date:	  	April 26, 2006

 THIS LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS is entered into between Silicon Valley
Bank (“Silicon”) and the borrower named above (“Borrower”). 
 Reference is hereby made to that certain Amended and
Restated Loan and Security Agreement between Borrower and Silicon and dated August 17, 2005 (as amended from time to time, the “Loan Agreement”). Reference is also hereby made to that certain Amended and Restated Loan and Security
Agreement (Exim Program) between Borrower and Silicon and dated August 17, 2005 (as amended from time to time, the “Exim Loan Agreement”). The Parties agree to amend each of the Loan Agreement and Exim Loan Agreement as follows,
effective as of the date hereof. (Capitalized terms used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement or Exim Loan Agreement, as applicable.) 
 1.     Waiver of Fix Charge Coverage Ratio Financial Covenant Default. Borrower has failed to comply with the Fixed Charge
Coverage Ratio Financial Covenant for the compliance period ending January 31, 2006 (the “January FCC Default”) and may possibly fail to comply with such Financial Covenant for the compliance period ending February 28, 2006 (the
“Potential February FCC Default”) (the January FCC Default and Potential February FCC Default are hereinafter referred to collectively as the “Covenant Defaults”). Silicon and Borrower agree that the Borrower’s Covenant
Defaults are hereby waived. It is understood by the parties hereto, however, that such waiver does not constitute a waiver of any other provision or term of the Loan Agreement or Exim Loan Agreement or any related document, nor an agreement to waive
in the future this covenant or any other provision or term of the Loan Agreement or Exim Loan Agreement or any related document. 

 2.     Modified Section Regarding Letters of Credit. Section 1.6 of the
Loan Agreement is hereby amended to read as follows: 
 1.6 Letters of Credit. At the request of Borrower, Silicon may, in its
good faith business judgment, issue or arrange for the issuance of letters of credit for the account of Borrower, in each case in form and substance satisfactory to Silicon in its sole discretion (collectively, “Letters of Credit”). The
aggregate face amount of all Letters of Credit from time to time outstanding shall not exceed the amount shown on the Schedule (the “Letter of Credit Amount”). Borrower shall pay all bank charges (including charges of Silicon) for the
issuance of Letters of Credit, together with such additional fee as Silicon’s letter of credit department shall charge in connection with the issuance of the Letters of Credit. Any payment by Silicon under or in connection with a Letter of
Credit shall constitute a Loan hereunder on the date such payment is made. Each Letter of Credit shall have an expiry date no later than thirty days prior to the Maturity Date. Borrower hereby agrees to indemnify and hold Silicon harmless from any
loss, cost, expense, or liability, including payments made by Silicon, expenses, and reasonable attorneys’ fees incurred by Silicon arising out of or in connection with any Letters of Credit. Borrower agrees to be bound by the regulations and
interpretations of the issuer of any Letters of Credit guarantied by Silicon and opened for Borrower’s account or by Silicon’s interpretations of any Letter of Credit issued by Silicon for Borrower’s account, and Borrower understands
and agrees that Silicon shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or
supplements thereto. Borrower understands that Letters of Credit may require Silicon to indemnify the issuing bank for certain costs or liabilities arising out of claims by Borrower against such issuing bank. Borrower hereby agrees to indemnify and
hold Silicon harmless with respect to any loss, cost, expense, or liability incurred by Silicon under any Letter of Credit as a result of Silicon’s indemnification of any such issuing bank. The provisions of this Loan Agreement, as it pertains
to Letters of Credit, and any other Loan Documents relating to Letters of Credit are cumulative. 
 3.     Modified
Credit Limit. That portion of the Credit Limit entitled “Cash Management Services and Reserves” as set forth in Section 1 of the Amended and Restated Schedule to Loan and Security Agreement is hereby deleted and replaced with the
following: 
  

			
	 Letter of Credit Amount
	  	
		
	 (Section 1.6):
	  	$250,000; provided that the total of

			
		  	all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), and the FX Reserve, and all amounts for Cash Management Services utilized under the Cash Management
Services Amount may not exceed $250,000.
		
	 Cash Management
	  	
	 Amount:
	  	$250,000; provided that the total of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), and the FX Reserve, and all amounts for Cash Management
Services utilized under the Cash Management Services Amount may not exceed $250,000.
		
	 Cash Management
	  	
	 Services:
	  	Borrower may use up to the Cash Management Amount above, for Silicon’s Cash Management Services (as defined below), including, merchant services, business credit card, ACH and other
services identified in the cash management services agreement related to such service (the “Cash Management Services”). Silicon may charge to Borrower’s Loan account, any amounts that may become due or owing to Silicon in connection
with the Cash Management Services. Borrower agrees to execute and deliver to Silicon all standard form applications and agreements of Silicon in connection with the Cash Management Services, and, without limiting any of the terms of such
applications and agreements, Borrower will pay all standard fees and charges of Silicon in connection with the Cash Management Services. The Cash Management Services shall terminate on the Maturity Date.

			
	 Foreign Exchange
	  	
	 Contract Amount:
	  	$250,000; provided that the total of all outstanding Letters of Credit
		  	(including drawn but unreimbursed Letters of Credit), and the FX Reserve, and all amounts for Cash Management Services utilized under the Cash Management Services Amount may not exceed
$250,000.
		
	 FX Reserve:
	  	Borrower may enter into foreign exchange forward contracts with Silicon, on its standard forms, under which Borrower commits to purchase from or sell to Silicon a set amount of foreign
currency more than one business day after the contract date (the “FX Forward Contracts”); provided that (1) at the time the FX Forward Contract is entered into Borrower has Loans available to it under the Foreign Exchange Contract Amount
in an amount at least equal to 10% of the amount of the FX Forward Contract; and (2) the total FX Forward Contracts at any one time outstanding may not exceed 10 times the amount of the FX Amount set forth above. The “FX Reserve” shall be
a reserve (which shall be in addition to all other reserves) in an amount equal to 10% of the total FX Forward Contracts from time to time outstanding. Silicon may, in its discretion, terminate the FX Forward Contracts at any time that an Event
of Default occurs and is continuing. Borrower shall execute all standard form applications and agreements of Silicon in connection with the FX Forward Contracts, and without limiting any of the terms of such applications and agreements, Borrower
shall pay all standard fees and charges of Silicon in connection with the FX Forward Contracts.

 4.     Modified Term Loan Interest Rate. That portion of Section 2 of the
Amended and Restated Schedule to Loan and Security Agreement that currently reads as follows: 
 With respect to the Term Loan: 

A rate equal to the Prime Rate (as defined above) in effect from time to time, plus 1.50% per annum. Interest shall be calculated on the
basis of a 360-day year for the actual number of days elapsed. The interest rate applicable to the Obligations pertaining to the Term Loan shall change on each date there is a change in the Prime Rate. 
 is hereby amended to read as follows: 
 With respect to the Term Loan: 
 A rate equal to the Prime Rate (as defined above) in effect from time to
time, plus 1.75% per annum; provided, however, from July 1, 2006 and thereafter, a rate equal to the Prime Rate in effect from time to time, plus 1.50% per annum. Interest shall be calculated on the basis
of a 360-day year for the actual number of days elapsed. The interest rate applicable to the Obligations pertaining to the Term Loan shall change on each date there is a change in the Prime Rate. 
 5.     Modified Growth Capital Loan Interest Rate. That portion of Section 2 of the Amended and Restated Schedule to Loan
and Security Agreement that begins “With respect to the Growth Capital Loan” is hereby amended to read as follows: 
 With respect
to the Growth Capital Loan: 
 A rate equal to the Prime Rate (as defined above) in effect from time to time, plus 0.75% per
annum; provided, however, from July 1, 2006 and thereafter, a rate equal to the Prime Rate in effect from time to time, plus 0.50% per annum. Interest shall be calculated on the basis of a 360-day year for the actual
number of days elapsed. The interest rate applicable to the Obligations pertaining to the Growth Capital Loan shall change on each date there is a change in the Prime Rate. 
 6.     Modified Minimum Working Capital Financial Covenant. The Minimum Working Capital Financial Covenant set forth in
Section 5 of the Amended and Restated Schedule to Loan and Security Agreement (and incorporated by reference into the Amended and Restated Schedule to Loan and Security Agreement (Exim Program)) is hereby amended to read as follows: 

			
	 Minimum Working
	  	
	 Capital:
	  	Commencing with the fiscal quarter ending March 31, 2006, and as of the end of each fiscal quarter ending thereafter, Borrower shall maintain Working Capital of not less than
$5,500,000.

 7.     Modified Definition of Working Capital. The definition of
Working Capital set forth in the Definition portion of Section 5 of the Amended and Restated Schedule to Loan and Security Agreement (and incorporated by reference into the Amended and Restated Schedule to Loan and Security Agreement (Exim
Program)) is hereby amended to read as follows: 
 “Working Capital” shall mean the amount equal to the Borrower’s current
assets minus Borrower’s current unsubordinated liabilities, net of Deferred Revenue (defined as all amounts received or invoiced, as appropriate, in advance of performance under contracts and not yet recognized as revenue). 
 8.     Modified Fixed Charge Coverage Ratio Financial Covenant. The Fixed Charge Coverage Ratio Financial Covenant set forth
in Section 5 of the Amended and Restated Schedule to Loan and Security Agreement (and incorporated by reference into the Amended and Restated Schedule to Loan and Security Agreement (Exim Program)) is hereby amended to read as follows:

  

			
	 Fixed Charged
	  	
	 Coverage Ratio:
	  	Borrower shall maintain a Fixed Charge Coverage Ratio (as defined below) (“FCCR”) of not less than 1.0 to 1.0 ending as of March 31, 2006 and as of each month ending
thereafter through the month ending June 30, 2006.
		
		  	Borrower shall maintain a Fixed Charge Coverage Ratio (as defined below) of not less than 1.3 to 1.0 ending as of July 31, 2006 and as of each month ending
thereafter.
		
		  	Notwithstanding the foregoing, if Borrower shall fail to comply with the foregoing FCCR for any fiscal quarter ending in 2006, the same will not constitute an Event of Default if at the time
of such non-compliance, Borrower had and continues to

			
		 	maintain at least $1,250,000 in unrestricted cash maintained at Silicon plus availability under the Revolving Loans (the “FCCR Cure”). The Borrower is entitled to utilize the FCCR Cure
with respect to only one fiscal quarter in 2006. If the Borrower does utilize the FCCR Cure, Borrower shall pay Silicon a fee in the amount of $2,500, which fee shall be in addition to all interest and other fees payable to Silicon under the Loan
Documents.

 9.     Modified Definition of Fixed Charge Coverage Ratio. The
definition of Fixed Charge Coverage Ratio set forth in the Definition portion of Section 5 of the Amended and Restated Schedule to Loan and Security Agreement (and incorporated by reference into the Amended and Restated Schedule to Loan and
Security Agreement (Exim Program)) is hereby amended to read as follows: 
 “Fixed Charge Coverage Ratio” means the ratio of
(a) Borrower’s EBITDA less unfunded capital expenditures (net of demonstration equipment) less cash dividends to (b) one fourth of Borrower’s current maturities of long term debt plus cash interest. For purposes of the foregoing
calculation, the parties agree as follows: (A) For the months ending March 31, 2006 through June 30, 2006, (i) Borrower’s EBITDA and cash dividends shall be the aggregate amount thereof for the three month period ending as
of the last day of the month of compliance and (ii) Borrower’s unfunded capital expenditures will be one-third of the Borrower’s aggregate amount thereof for the 270 days preceding the last day of the month of compliance; (B) For
the month ending July 31, 2006 and each month ending thereafter, (i) Borrower’s EBITDA and cash dividends shall be the aggregate amount thereof for the three month period ending as of the last day of the month of compliance and
(ii) Borrower’s unfunded capital expenditures will be one-fourth of the Borrower’s aggregate amount thereof for the 360 days preceding the last day of the month of compliance 
 10.     Modified Minimum Tangible Net Worth Financial Covenant. The Minimum Tangible Net Worth Financial Covenant set forth in
Section 5 of the Amended and Restated Schedule to Loan and Security Agreement (and incorporated by reference into the Amended and Restated Schedule to Loan and Security Agreement (Exim Program)) is hereby amended to read as follows: 

 

			
	 Minimum Tangible
	  	
	 Net Worth:
	  	Borrower shall maintain a Tangible

			
		 	Net Worth of not less than the following:
		
		 	For each of the months ending January 31, 2006, February 28, 2006, March 31, 2006, April 30, 2006 and May 31, 2006: $4,300,000;
		
		 	For each of the months ending June 30, 2006, July 31, 2006 and August 31, 2006: $4,500,000;
		
		 	For each of the months ending September 30, 2006, October 31, 2006 and November 30, 2006: $4,900,000; and
		
		 	For the month ending December 31, 2006 and each month ending thereafter: $5,300,000.

 11.     Liquidity Reports. The deadline by which the liquidity report
for the reporting period ending December 31, 2005 is to be submitted to Silicon from John P. and Florence G. Stewart is hereby extended to April 30, 2006. 
 12.     Fee. In consideration for Silicon entering into this Amendment, Borrower shall concurrently pay Silicon a fee in the amount of $5,000, which fee is deemed fully earned on the date
hereof, shall be non-refundable and in addition to all interest and other fees payable to Silicon under the Loan Documents. Silicon is authorized to charge said fee to Borrower’s loan account as provided for above. 
 13.     Representations True. Borrower represents and warrants to Silicon that all representations and warranties set forth in
the Loan Agreement and Exim Loan Agreement, as amended hereby, are true and correct. 
 14.     General
Provisions. This Amendment, the Loan Agreement, the Exim Loan Agreement, any prior written amendments to the Loan Agreement and Exim Loan Agreement signed by Silicon and Borrower, and the other written documents and agreements
between Silicon and Borrower 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, representations, agreements and understandings between the parties
with respect to the subject hereof. Except as herein expressly amended, all of the terms and provisions of the Loan Agreement and Exim Loan Agreement, as applicable, and all other documents and agreements between Silicon and Borrower shall continue
in full force and effect and the same are hereby ratified and confirmed. 

									
	Borrower:	 		 	Silicon:
			
	APPLIED PRECISION HOLDINGS, LLC	 		 	SILICON VALLEY BANK
					
	By	 	/s/ Ronald Seubert	 		 	 By
	 	/s/ Illegible Signature
	Title	 	CEO	 		 	Title	 	Sr. Vice President

  

									
					
	 By
	 	/s/ Steve Reichenbach	 		 		 	
	Title	 	CFO	 		 		 	

  

													
	Borrower:	 		 		 	
			
	    APPLIED PRECISION, LLC	 		 	
						
		 	By:	 	Applied Precision Holdings, LLC	 		 		 	
		 	Title:	 	Its Sole Member	 		 		 	
							
		 		 	By	 	Ronald Seubert	 		 		 	
		 		 	Title	 	CEO	 		 		 	

 CONSENT 
 The undersigned acknowledges that his consent to the foregoing Agreement is not required, but the undersigned nevertheless does hereby consent to the foregoing Agreement and to the documents and agreements referred to
therein and to all future modifications and amendments thereto, and any termination thereof, and to any and all other present and future documents and agreements between or among the foregoing parties. Nothing herein shall in any way limit any of
the terms or provisions of the Continuing Guaranty of the undersigned, all of which are hereby ratified and affirmed. 
  

							
	 Guarantor:

	
	Riverside Fund II, L.P.
		
		 	 By: Riverside Partners II, LLC
 Title: Its General Partner

				
		 		 	By	 	/s/ David Belluck
		 		 	Title	 	GP

  

					
	 Guarantor:
	 		 	 Guarantor:

			
	 /s/ Ronald C. Seubert
	 		 	 /s/ Sara Zastrow-Seubert

	 Ronald C. Seubert
	 		 	 Sara Zastrow-Seubert

  

					
	 Guarantor:
	 		 	 Guarantor:

			
	 /s/ Donald B. Snow
	 		 	/s/ Lilyan S. Snow
	 Donald B. Snow
	 		 	 Lilyan S. Snow

  

					
	 Guarantor:
	 		 	 Guarantor:

			
	/s/ John P. Stewart	 		 	/s/ Florence G. Stewart
	 John P. Stewart
	 		 	 Florence G. StewartAmended and Restated Mutual Subordination Agreement

 Exhibit 10.24 
 Silicon Valley Bank 
 Amended and Restated 
 Mutual Subordination Agreement 
 (Debt and Security Interest) 

 

			
	Borrower:	  	Applied Precision Holdings, LLC
		  	Applied Precision, LLC
		
	Subordinating Creditor:	  	Lakeside Management L.L.C.
		
	Date:	  	August 25, 2004

 This Amended and Restated Mutual Subordination Agreement is executed by the above-named Creditor
(“Creditor”) in favor of Silicon Valley Bank (“Silicon”), whose address is 3003 Tasman Drive, Santa Clara, California 95054, with respect to the above-named Borrower (“Borrower”) and amends and restates in its entirety
that certain Mutual Subordination Agreement between Subordinating Creditor and Silicon and dated February 28, 2003. In order to induce Silicon to extend or continue to extend financing to the Borrower (but without obligation on Silicon’s
part to do so), the Creditor hereby agrees as follows: 
 1. Subordination of Security Interest. All security interests now or hereafter acquired
by Silicon in any or all of the Collateral (as defined below), in which the Borrower now has or hereafter acquires any ownership, leasehold or other interest (the “Silicon Interest”) shall at all times be prior and superior to any lien,
ownership interest, security interest or other interest or claim now held or hereafter acquired by the Creditor in the Collateral (the “Subordinate Interest”). Said priority shall be applicable irrespective of the time or order of
attachment or perfection of any security interest or the time or order of filing of any financing statements or other documents, or any statutes, rules or law, or court decisions to the contrary. Upon any disposition of any of the Collateral by
Silicon, or b~ the Borrower with Silicon’s written consent, the Creditor hereby authorizes Silicon to file UCC terminations with respect to any financing statements in favor of Creditor with respect to Borrower and such Collateral, and Creditor
agrees, if requested by Silicon, to execute and immediately deliver any and all other releases, terminations and other documents or agreements which Silicon deems necessary to accomplish a disposition of such Collateral free of the Subordinate
Interest; provided that Creditor shall retain its Subordinate Interest in the proceeds of the Collateral so disposed of. Creditor represents and warrants to Silicon that Creditor is the sole holder of all security interests perfected by all UCC-1
Financing Statements authorized by Borrower to the be filed in favor of Creditor. 
 2. “Collateral” As used in this
Agreement, “Collateral” shall mean all of the following types of property, in which the Borrower now has or hereafter acquires any ownership, leasehold or other interest, wherever located: all tangible and intangible property of every kind
and description, including (but not limited to) all of the following: all Accounts; all Inventory; all Equipment; all Deposit Accounts; all General Intangibles (including without 

 
limitation all Intellectual Property); all Investment Property; all Other Property; and any and all claims, rights and interests in any of the above, and all
guaranties and security for any of the above, and all substitutions and replacements for, additions, accessions, attachments, accessories, and improvements to, and proceeds (including proceeds of any insurance policies, proceeds of proceeds and
claims against third parties) of, all of the above, and all Borrower’s books relating to any of the above. The terms “Accounts”, “Inventory”, ‘Equipment”, “Deposit Accounts”, “General
Intangibles” and “Investment Property” have the meanings given such terms by the California Uniform Commercial Code in effect on the date hereof. “Intellectual Property” means all present and future (a) copyrights,
copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, (b) trade secret rights, including all rights to unpatented
inventions and know-how, and confidential information; (c) mask work or similar rights available for the protection of semiconductor chips; (d) patents, patent applications and like protections including without limitation improvements,
divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same; (e) trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are registered, 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 any such trademarks; (I) computer software and computer software products; (g) designs and design
rights; (h) technology; (i) all claims for damages by way of past, present and future infringement of any of the rights included above; (j) all licenses or other rights to use any property or rights of a type described above.
“Investment Property” means all present and future investment property, securities, stocks, bonds, debentures, debt, securities, partnership interests, limited liability company interests, options, security entitlements, securities
accounts, commodity contracts, commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, and all other securities of every kind, whether certificated or uncertificated. “Other Property”
means the following as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and all rights relating thereto: all present and future “commercial tort
claims”, “documents”, “instruments”, “promissory notes”, “chattel paper”, “letters of credit”, “letter-of-credit rights”, “fixtures”, “farm products” and
“money”; and all other goods and personal property of every kind, tangible and intangible, whether or not governed by the California Uniform Commercial Code. 
 3. Disposition of Collateral. The Creditor agrees that, until Silicon has received payment in full of all indebtedness, liabilities, guarantees and other obligations of the Borrower to Silicon,
now existing or hereafter arising (including without limitation interest accruing after commencement of any bankruptcy or insolvency proceeding with respect to Borrower) (the “Silicon Debt”), Silicon may dispose of, and exercise any other
rights with respect to, any or all of the Collateral, free of the Subordinate Interest, provided that the Creditor retains any rights it may have as a junior secured creditor with respect to the surplus, if any, arising from any such disposition or
enforcement. The Creditor agrees that any funds of the Borrower which it obtains through the exercise of any right of setoff or other similar right constitute Collateral, and the Creditor shall immediately pay such funds to Silicon to be applied to
the outstanding Silicon Debt. 
 4. Subordination of Debt. Creditor hereby subordinates payment by the Borrower of any and all
indebtedness, liabilities, guarantees and other obligations of the Borrower to Creditor, now existing or hereafter arising (collectively, the “Subordinated Debt”), to the payment to Silicon, in full in cash, of all Silicon Debt, and
Creditor agrees not to ask for, demand, sue for, take or receive all or any part of the Subordinated Debt nor any security therefor unless and until all of the Silicon Debt has been paid and performed in fill, in cash; provided that, so long as no
default or event of 

 
default has occurred under any document instrument or agreement evidencing, securing or relating to the Silicon Debt, both before and after giving effect to
the following payments, Creditor may accept payment of the following amounts on the Subordinated Debt: 
  

	 	(i)	Regularly scheduled payments of principal and interest under the Note (as defined below); and 

  

	 	(ii)	Any payments that would have otherwise been made pursuant to subclause (i) above but for the occurrence and continuation of a default or event of default as described above and
which default or event of default was subsequently cured or waived in writing by Silicon. 

 Creditor represents and warrants that the amount
of Subordinated Debt outstanding on the date hereof is the following amount: 
 $294,325 pursuant to that certain Promissory Note dated
February 28, 2003 executed by Applied Precision, LLC in favor of Creditor and in the original principal amount of $522,215.75 (the “Note”) 
 and that Creditor has not executed any other subordination agreements with respect to such debt or the Collateral or the Borrower. Creditor agrees that upon any distribution of the assets or readjustment of the indebtedness of the Borrower
whether by reason of liquidation, composition, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other action or proceeding involving the readjustment of all or any of the Subordinated Debt, or the application of
the assets of the Borrower to the payment or liquidation thereof, Silicon shall be entitled to receive payment in full in cash of all of the Silicon Debt prior to the payment of all or any part of the Subordinated Debt, and in order to enable
Silicon to enforce its rights hereunder in any such action or proceeding, Silicon is hereby irrevocably authorized and empowered in its discretion (but without any obligation on its part) to make and present for and on behalf of Creditor such proof
of claim against the Borrower on account of the Subordinated Debt as Silicon may deem expedient or proper and to vote such proofs of claim in any such proceeding and to receive and collect any and all dividends or other payments or disbursements
made thereon in whatever form the same may be paid or issued and to apply same on account of the Silicon Debt. Creditor further agrees to execute and deliver to Silicon such assignments or other instruments as may be required by Silicon in order to
enable Silicon to enforce any and all such claims and to collect any and all dividends or other payments or disbursements which may be made at any time on account of all and any of the Subordinated Debt. Creditor shall endorse all notes and other
written evidence of the Subordinated Debt with a statement that they are subordinated to the Silicon Debt pursuant to the terms of this agreement, in such form as Silicon shall require, and Creditor will exhibit the originals of such notes and other
written evidence of the Subordinated Debt to Silicon so that Silicon can confirm that such endorsement has been made, but this Subordination Agreement shall be fully effective, even if no such endorsement is made. 
 5. Modifications to Silicon Debt; Waivers. Until Silicon has received payment in full of all Silicon Debt, the Creditor agrees that,
in addition to any other rights that Silicon may have at law or in equity, Silicon may at any time, and from time to time, without the Creditor’s consent and without notice to the Creditor, renew, extend or increase any of the Silicon Debt or
that of any other person at any time directly or indirectly liable for the payment of any Silicon Debt, accept partial payments of the Silicon Debt, settle, release (by operation of law or otherwise), compound, compromise, collect or liquidate any
of the Silicon Debt, make loans or advances to the Borrower secured in whole or in part by the Collateral or refrain from making any loans or advances to the Borrower, change, waive, alter or vary the interest charge on, or any other terms or
provisions of the Silicon Debt or any present or 

 
future instrument, document or agreement between Silicon and the Borrower, release, exchange, fail to perfect, delay the perfection of, fail to resort to, or
realize upon any Collateral, and take any other action or omit to take any other action with respect to the Silicon Debt or the Collateral as Silicon deem necessary or advisable in Silicon’s sole discretion. The Creditor waives any right to
require Silicon to marshal any assets in favor of the Creditor or against or in payment of any or all of the Silicon Debt. Creditor further waives any defense arising by reason of any claim or defense based upon an election of remedies by Silicon
which in any manner impairs, affects, reduces, releases, destroys and/or extinguishes the Creditor’s subrogation rights, rights to proceed against the Borrower for reimbursement, and/or any other rights of the Creditor. 
 6. Default. The Creditor shall promptly give Silicon written notice of any default or event of default under any document, instrument
or agreement evidencing, securing or relating to any of the Subordinated Debt, and, until the Silicon Debt has been paid and performed in full, the Creditor shall not accelerate the maturity of the Subordinated Debt, commence or join in any action
or proceeding to recover any amounts due on the Subordinated Debt, commence or join in any involuntary bankruptcy petition or similar judicial proceeding against the Borrower, or collect, take possession of, foreclose upon, or exercise any other
rights or remedies with respect to, the Collateral, judicially or non-judicially, or attempt to do any of the foregoing. 
 Silicon shall
promptly give the Creditor written notice of any default or event of default under any document, instrument or agreement evidencing, securing or relating to any of the - Silicon Debt; provided, however, Silicon shall not incur any liability to
Creditor or Borrower for negligently or inadvertently failing to send such notice to Creditor and any such failure by Silicon to send such notice to Creditor shall not in any way impair, diminish or affect the rights and remedies of Silicon with
respect to the Silicon Debt. 
 7. No Commitment. It is understood and agreed that this Agreement shall in no way be
construed as a commitment or agreement by Silicon to continue financing arrangements with the Borrower and that Silicon may terminate such arrangements at any time, in accordance with Silicon’s agreements with the Borrower. 
 8. No Contest. Creditor agrees not to contest the validity, perfection, priority or enforceability of Silicon’s security interest
in the Collateral or the Silicon Debt. 
 9. Financial Condition of Borrower. The Creditor is presently informed of the
financial condition of the Borrower and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Silicon Debt and the Subordinated Debt. The Creditor covenants that it will continue to keep
itself informed as to the Borrower’s financial condition and all other circumstances which bear upon the risk of nonpayment of the Silicon Debt and the Subordinated Debt. The Creditor waives any right to require Silicon to disclose to it any
information which Silicon may now or hereafter acquire concerning the Borrower (except for the notice(s) by Silicon as provided for in Section 6 above). 
 10. Revivor. If, after payment of the Silicon Debt, the Borrower thereafter becomes liable to Silicon on account of the Silicon Debt, or any payment made on the Silicon Debt shall for any reason be
returned by Silicon, this Agreement shall thereupon in all respects become effective with respect to such subsequent or reinstated Silicon Debt, without the necessity of any further act or agreement between Silicon and the Creditor. If, after
payment of the Creditor Debt (as defined below), the Borrower thereafter becomes liable to Creditor on account of the Creditor Debt, or any payment made on the Creditor Debt shall for any reason be returned by Creditor, this Agreement shall
thereupon in all respects become effective with respect to such subsequent or reinstated Creditor Debt, without the necessity of any further act or agreement between Silicon and the Creditor. For purposes 

 
hereof, the term “Creditor Debt” shall mean all indebtedness, liabilities, guarantees and other obligations of the Borrower to Creditor, now
existing or hereafter arising (including without limitation interest accruing after commencement of any bankruptcy or insolvency proceeding with respect to Borrower). 
 11. General. Each party agrees, upon the other party’s request, to execute all such documents and instruments and take all such actions as such party shall deem necessary or advisable in order
to carry out the purposes of this Agreement, including, without limitation appropriate amendments to financing statements executed by the Borrower in favor of Creditor or Silicon, as the case may be, in order to refer to this Agreement (but this
Agreement shall remain fully effective notwithstanding any failure to execute any additional documents or instruments). The word “indebtedness” is used in this agreement in its most comprehensive sense and includes without limitation any
and all present and future loans, advances, credit, debts, obligations, liabilities, representations, warranties, and guarantees, of any kind and nature, absolute or contingent, liquidated or unliquidated, and individual or joint. Creditor
represents and warrants that it has not heretofore transferred or assigned the Subordinated Debt, the Subordinate Interest or any financing statement naming Borrower as debtor and Creditor as secured party, and that it will not do so without prior
written notice to Silicon and without making such transfer or assignment expressly subject to this Agreement. This Agreement is solely for the benefit of Silicon and Silicon’s successors and assigns, Creditor and Creditor’s successors and
assigns, and neither the Borrower nor any other person (other than Silicon and Creditor and their respective successors and assigns) shall have any right, benefit, priority or interest under, or because of the existence of, this Agreement. All of
Creditor’s and Silicon’s rights and remedies hereunder and under applicable law are cumulative and not exclusive. This Agreement sets forth in flail the terms of agreement between the parties with respect to the subject matter hereof, and
may not be modified or amended, nor may any rights hereunder be waived, except in a writing signed by Silicon and the Creditor. The Borrower agrees to reimburse Silicon, upon demand, for all costs and expenses (including reasonable attorneys’
fees) incurred by Silicon in enforcing this Agreement against Creditor, whether or not suit be brought. In the event of any litigation between the parties based upon or arising out of 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 shall be construed in accordance with, and governed by, the laws of the State of California. As a material part of the
consideration to the parties for entering into this Agreement, each party (i) agrees that all actions and proceedings based upon, arising out of or relating in any way directly or indirectly to, this Agreement shall be litigated exclusively in
courts located within Santa Clara County, California, (ii) consents to the jurisdiction of any such court and consents to the service of process in any such action or proceeding by personal delivery, first-class mail, or any other method
permitted by law, and (iii) waives any and all rights to transfer or change the venue of any such action or proceeding to any court located outside Santa Clara County, California. This Agreement shall be binding upon the Creditor and its
successors and assigns and shall inure to the benefit of Silicon and Silicon’s successors and assigns. 
 12. Mutual Waiver of
Jury Trial. Creditor and Silicon each hereby waive the- right to trial by jury in any action or proceeding based upon, arising out of, or in any way relating to: (i) this Agreement; or (ii) any other present or future
instrument or agreement between Creditor and Silicon; or (iii) any conduct, acts or omissions of Creditor or Silicon or any of their directors, officers, employees, agents, attorneys or any other persons affiliated with Creditor or Silicon; in
each of the foregoing cases, whether sounding in contract or tort or otherwise. 

 CONSENT AND AGREEMENT OF BORROWER 
 The undersigned Borrower hereby approves of, agrees to and consents to all of the terms and provisions of the foregoing Subordination Agreement and agrees to be bound thereby and further agrees that any default or
event of default by the Borrower under any present or future instrument or agreement between the Borrower and the Creditor shall constitute an immediate default and event of default under all present and future instruments and agreements between the
Borrower and Silicon. Borrower further agrees that, at any time and from time to time, the foregoing Agreement may be altered, modified or amended by Silicon and the Creditor without notice to or the consent of Borrower. Borrower further covenants
and agrees not to prepay any part of the Junior Debt or to cause the Junior Debt to be accelerated. 
 “Creditor:” 
  

					
		 	LAKESIDE MANAGEMENT L.L.C.
			
		 	By:	 	/s/ Ronald C. Seubert
		 	Title:	 	Member
		 	Address:	 	  
		 		 	  
		 		 	  
	
	 Borrower:
  
 APPLIED PRECISION HOLDINGS, LLC

			
		 	By:	 	/s/ Ronald C. Seubert
		 	Title:	 	CEO
			
		 	By:	 	  
		 	Title:	 	  
	
	APPLIED PRECISION, LLC
			
		 	By:	 	Applied Precision Holds, LLC
		 	Title:	 	Its Sole Member
			
		 	By:	 	/s/ Ronald C. Seubert
		 	Title:	 	CEO
	
	Accepted:
	
	Silicon:
		
		 	SILICON VALLEY BANK
			
		 	By:	 	/s/ Illegible Signature
		 	Title:	 	Sr. Vice President

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