Document:

Loan and Security Agreement - Silicon Valley Bank and Gold Hill Venture Lending

 Exhibit 10.12 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (the “Agreement”)
dated August 19, 2005 by and among GOLD HILL VENTURE LENDING 03, LP (“Gold Hill”); SILICON VALLEY BANK, a California-chartered bank, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054
(“SVB”) (SVB and the Gold Hill each individually a “Lender”, and collectively the “Lenders”), SVB in its capacity as agent (the “Agent”), and ACCLARENT, INC., a Delaware corporation, whose address is 1525
O’Brien Drive, Suite B, Menlo Park, CA 94025 (“Borrower”) provides the terms on which Lenders shall lend to Borrower and Borrower shall repay Lenders. The parties agree as follows: 
  

	1	ACCOUNTING AND OTHER TERMS 

 Accounting terms
not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. The term “financial statements” includes the notes and schedules. The terms “including” and
“includes” always mean “including (or includes) without limitation,” in this or any Loan Document. Capitalized terms in this Agreement shall have the meanings as set forth in Section 13. All other terms contained in
this Agreement, unless otherwise indicated, shall have the meanings provided by the Code, to the extent such terms are defined therein. 
  

	2	LOANS AND TERMS OF PAYMENT 

 2.1 Promise
to Pay. 
 Borrower hereby unconditionally promises to pay Lenders the unpaid principal amount of all Credit Extensions hereunder with all
interest, fees and finance charges due thereon as and when due in accordance with this Agreement. 
 2.1.1 Revolving Advances.

 (a) Availability. After the Initial Audit, subject to the terms of this Agreement, SVB shall make Advances not exceeding
(i) the lesser of (A) the Revolving Line or (B) the Borrowing Base, minus (ii) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), minus (iii) the FX Reserve, minus
(iv) the aggregate outstanding Advances hereunder (including any Cash Management Services). Amounts borrowed under this Section may be repaid and reborrowed prior to the Revolving Line Maturity Date. 
 (b) Borrowing Procedure. To obtain an Advance, Borrower must notify SVB (which notice shall be irrevocable) by facsimile or telephone by 12:00
p.m. Pacific time on the Business Day the Advance is to be made. Borrower must promptly confirm the notification by delivering to SVB a completed Payment/Advance Form in the form attached as Exhibit B. SVB shall credit Advances to
Borrower's deposit account. SVB may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. SVB may
rely on any telephone notice given by a person whom SVB believes is a Responsible Officer or designee. Borrower will indemnify SVB for any loss SVB suffers due to such reliance. 
  

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 (c) Payments. Interest is payable monthly on the first calendar day of each month. Payments
received after 12:00 p.m. Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest,
shall continue to accrue. 
 (d) Interest Rate. The principal amounts outstanding under the Revolving Line shall accrue interest at a
per annum rate equal to the aggregate of Lender’s Prime Rate plus one percent (1%), which interest shall be payable monthly. The applicable interest rate shall increase or decrease when the Prime Rate changes. Interest is computed on the basis
of a 360-day year for the actual number of days elapsed. 
 (e) Termination; Repayment. The Revolving Line terminates on the Revolving
Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all Obligations relating to the Revolving Line shall be immediately payable. 
 (f) Default Rate. After an Event of Default, any amounts outstanding under the Revolving Line shall bear interest at a per annum rate equal to the
Default Rate. 
 (g) Debit of Accounts. SVB may debit any of Borrower’s deposit accounts including Account Number 3300481669 for
principal and interest payments or any other amounts Borrower owes SVB. SVB will promptly notify Borrower when it debits Borrower’s accounts. These debits shall not constitute a set-off. 
 (h) Cash Collateral. To the extent that any of the Obligations relating to the Revolving Line will be secured by unencumbered cash, including
without limitation Letters of Credit under Section 2.2.1(a) and Cash Management Services under Section 2.1.4, then SVB may place a “hold” on any deposit account containing such unencumbered cash pledged as
Collateral. 
 2.1.2 Letters of Credit Sublimit. 
 (a) SVB shall issue or have issued Letters of Credit for Borrower’s account not exceeding (i) the lesser of the Revolving Line or the Borrowing Base minus (ii) the outstanding principal balance of any
Advances (including any Cash Management Services), minus (iii) the FX Reserve, minus (iii) the face amount of previously outstanding Letters of Credit. Borrower’s Letter of Credit reimbursement obligation will be secured by
unencumbered cash on terms acceptable to SVB at any time upon the Revolving Line Maturity Date if the Revolving Line Maturity Date is not extended in writing by SVB. All Letters of Credit shall be in form and substance acceptable to SVB in its sole
discretion, and shall be subject to the terms and conditions of SVB’s standard Application and Letter of Credit Agreement (“Letter of Credit Application”); provided, that to the extent that any provision of the Letter of Credit
Application would conflict with any provision of this Agreement, then the provision of this Agreement shall prevail and Events of Default under this Agreement shall be deemed to be Events of Default under the Letter of Credit Application. Borrower
agrees to execute any further documentation in connection with the Letters of Credit as SVB may reasonably request. 
  

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 (b) The obligation of Borrower to immediately reimburse SVB for drawings made under Letters of Credit
shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application. Borrower shall indemnify, defend, protect and hold SVB
harmless from any loss, costs, expense or liability, including without limitation, reasonable attorneys’ fees, arising out of or in connection with any Letters of Credit, except to the extent that such losses, costs, expenses or liabilities
arise out of the gross negligence or willful misconduct of SVB. 
 (c) Borrower may request that SVB issue a Letter of Credit payable in a
Foreign Currency. If a demand for payment is made under any such Letter of Credit, SVB shall treat such demand as an Advance to Borrower of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable,
SWIFT or similar charges) in Dollars at the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 
 (d) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency, SVB shall create a
reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve may be adjusted by SVB from time to time
to account for fluctuations in the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains outstanding. 
 2.1.3 Foreign Exchange Sublimit. 
 If
there is availability under the Revolving Line and the Borrowing Base, then Borrower may enter in foreign exchange forward contracts with SVB under which Borrower commits to purchase from or sell to SVB a set amount of foreign currency more than one
(1) Business Day after the contract date (the “FX Forward Contract”). SVB will subtract 10% of each outstanding FX Forward Contract (the “FX Reserve”) from the availability under the Revolving Line. SVB may terminate the FX
Forward Contracts if an Event of Default occurs and is continuing. The amount of the FX Reserve may not exceed (a) the lesser of (i) the Revolving Line, or (ii) the Borrowing Base, minus (b) the amount of all outstanding Letters
of Credit (including drawn but unreimbursed Letters of Credit), minus (c) the FX Reserve, and minus (d) the aggregate outstanding Advances hereunder (including any amounts used for Cash Management Services). 
 2.1.4 Cash Management Services. 
 Borrower may use SVB’s Cash Management Services, which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in the various cash management services agreements related to
such services (the “Cash Management Services”). Such aggregate amounts utilized under the Cash Management Services shall at all times reduce the amount otherwise available for Advances under the Revolving Line. Any amounts SVB pays on
behalf of Borrower or any amounts that are not paid by Borrower for any Cash Management Services will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances. 
  

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 2.1.5 Overadvances. 
 If Borrower’s Obligations relating to the Revolving Line under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 exceed the lesser of either (i) the Revolving Line or (ii) the Borrowing Base, Borrower
must immediately pay SVB the excess. 
 2.1.6 Equipment Advances. 
 (a) Availability. Subject to the terms and conditions of this Agreement, Lenders agree, severally and not jointly, to lend to Borrower from time to
time prior to the Equipment Commitment Termination Date, advances (each an “Equipment Advance” and collectively the “Equipment Advances”) in an aggregate amount not to exceed the Equipment Commitment Amount according to each
Lender’s pro rata share of the Equipment Commitment Amount (based upon the respective Equipment Commitment Percentage of each Lender). When repaid, the Equipment Advances may not be re-borrowed. The Equipment Advances: (i) may only be used
to finance or refinance Eligible Equipment purchased on or after 90 days before the date of each Equipment Advance (determined based upon the applicable invoice date of such Eligible Equipment) except for the first Equipment Advance only which may
be used to finance or refinance Eligible Equipment purchased on or after September 30, 2004 (determined based upon the applicable invoice date of such Eligible Equipment), and (ii) may not exceed one hundred percent (100%) of the
Original Stated Cost of the Financed Equipment. Each Equipment Advance must be for a minimum of Fifty Thousand Dollars ($50,000). The number of Equipment Advances is limited to eight (8). 
 (b) Procedure. To obtain an Equipment Advance, Borrower must notify Agent (the notice is irrevocable) by facsimile no later than 12:00 p.m.
Pacific time ten (10) Business Days before the day on which the Equipment Advance is to be made. Borrower shall deliver to Agent a completed supplement in substantially the form attached as Exhibit C (the “Loan Supplement”),
signed by a Responsible Officer, or his or her designee, copies of invoices for the Financed Equipment and such additional information as Agent may reasonably request at least five (5) Business Days before the proposed Equipment Advance Funding
Date. At Agent’s discretion, Agent shall have the opportunity to confirm that, upon filing the UCC-1 financing statement covering the Equipment described on the Loan Supplement, Agent and Lenders shall have a first perfected security interest
in such Equipment. In addition, the notice in the form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer or designee and include a copy of the invoice for the Financed Equipment being financed. On the Equipment
Advance Funding Date, each Lender shall credit and/or transfer (as applicable) to Borrower’s deposit account, an amount equal to its Equipment Commitment Percentage multiplied by the amount of the Equipment Advance. Each Lender may make
Equipment Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Equipment Advances are necessary to meet Obligations which have become due. Each Lender may rely on any
telephone notice given by a person whom such Lender believes is a Responsible Officer or designee. Borrower shall indemnify each Lender for any loss Lender suffers due to such reliance. 
 2.1.7 Growth Capital Loan Facility. 
 (a) Availability. Subject to the terms and conditions of this Agreement, Lenders agree, severally and not jointly, to lend to Borrower from time to time prior to the Growth 

  

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Capital Commitment Termination Date, advances (each a “Growth Capital Advance” and collectively the “Growth Capital Advances”) in an
aggregate amount not to exceed the Growth Capital Loan Commitment according to each Lender’s pro rata share of the Growth Capital Loan Commitment (based upon the respective Growth Capital Commitment Percentage of each Lender). When repaid, the
Growth Capital Advances may not be re-borrowed. Lenders’ obligation to lend hereunder shall terminate on the earlier of (i) the occurrence and continuance of an Event of Default, or (ii) the Growth Capital Commitment Termination Date.
For purposes of this Section, the minimum amount of each Growth Capital Advance is Three Hundred Thousand Dollars ($300,000.00). The Borrower may request up to eight (8) Growth Capital Advances. 
 (b) Borrowing Procedure. To obtain a Growth Capital Advance, Borrower must notify Agent by facsimile or telephone by 12:00 p.m. Pacific Time at
most ten (10) Business Days prior to the date the Growth Capital Advance is to be made. If such notification is by telephone, Borrower must promptly confirm the notification by delivering to Agent a completed Payment/Advance Form in the form
attached as Exhibit B. On the Growth Capital Funding Date, each Lender shall credit and/or transfer (as applicable) to Borrower’s deposit account, an amount equal to its Growth Capital Commitment Percentage multiplied by the amount of
the Growth Capital Advance. Each Lender may make Growth Capital Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Growth Capital Advances are necessary to meet
Obligations which have become due. Each Lender may rely on any telephone notice given by a person whom such Lender believes is a Responsible Officer or designee. Borrower shall indemnify each Lender for any loss Lender suffers due to such reliance.

 2.2 Termination of Commitment to Lend. 
 Each Lender’s obligation to lend the undisbursed portion of the Obligations shall terminate if, in such Lender’s sole discretion, there has been a material adverse change in the general affairs, management,
results of operation, condition (financial or otherwise) or the prospect of repayment of the Obligations, or there has been any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Agent
prior to the execution of this Agreement. 
 2.3 Repayment of Credit Extensions on Equipment Advances and Growth Capital Advances. 

 (a) Principal and Interest Payments on Payment Dates. 
 (i) Equipment Advances. For each Equipment Advance, Borrower shall make monthly payments of interest only commencing on the first Business Day of the month following the month in which the Equipment Advance
Funding Date occurs (or commencing on the Equipment Advance Funding Date if the Equipment Advance Funding Date is the first Business Day of the month) with respect to such Equipment Advance and continuing thereafter on the first Business Day of each
successive calendar month (each an “Equipment Interest Only Payment Date”) during the Equipment Interest Only Period. Commencing on the Equipment Advance Amortization Date, Borrower shall make equal monthly payments of principal and
interest, in advance, calculated by the Agent based upon: (1) the amount of the Equipment Advance, (2) the interest rate applicable thereto as determined in accordance with Section 2.3(b) of this Agreement, and (3) an
amortization schedule equal to the Equipment Advance Repayment 

  

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Period (individually, the “Scheduled Equipment Payment”, and collectively, “Scheduled Equipment Payments”), on the first Business Day of
each successive month (each a “Scheduled Equipment Payment Date”). All unpaid principal and accrued interest is due and payable in full on the Equipment Advance Maturity Date. Each Equipment Interest Only Payment Date and each Scheduled
Equipment Payment Date are sometimes referred to as an “Equipment Payment Date.” 
 (ii) Growth Capital Advance. For each
Growth Capital Advance, Borrower shall make monthly payments of interest only commencing on the first Business Day of the month following the month in which the Growth Capital Funding Date occurs (or commencing on the Growth Capital Funding Date if
the Growth Capital Funding Date is the first Business Day of the month) with respect to such Growth Capital Advance and continuing thereafter on the first Business Day of each successive calendar month (each a “Growth Capital Interest Only
Payment Date”) during the Growth Capital Interest Only Period. Commencing on the Growth Capital Amortization Date, Borrower shall make thirty-six (36) equal monthly payments of principal and interest which would fully amortize the
outstanding Growth Capital Advances as of the Growth Capital Amortization Date over the Growth Capital Repayment Period (individually, the “Growth Capital Scheduled Payment”, and collectively, “Growth Capital Scheduled Payments”)
on the first Business Day of each successive month and continuing thereafter during the Growth Capital Repayment Period on the first Business Day of each successive calendar month (each a “Growth Capital Scheduled Payment Date ”). All
unpaid principal and accrued interest is due and payable in full on the Growth Capital Maturity Date. A Growth Capital Advance may only be prepaid in accordance with Sections 2.3(e) and 2.3(f). Each Growth Capital Interest Only Payment Date
and each Growth Capital Scheduled Payment Date are sometimes referred to as a “Growth Capital Payment Date.” 
 (iii) Payments
received as to an Equipment Advance or a Growth Capital Advance after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day. 
 (b) Interest Rate. 
 (i) Equipment Advances. Borrower shall pay interest on each Equipment
Payment Date on the unpaid principal amount of each Equipment Advance until the Equipment Advance has been paid in full, at the fixed rate equal to the greater of: (i) six and one-half percent (6.5%), and (ii) the Basic Rate as of the date
of the Equipment Advance Funding Date, determined by Agent for each Equipment Advance. Interest is computed on the basis of a 360 day year for the actual number of days elapsed. 
 (ii) Growth Capital Loans. Borrower shall pay interest on each Growth Capital Payment Date on the unpaid principal amount of each Growth Capital
Advance until the Growth Capital Advance has been paid in full, at the fixed rate as of the date of the Growth Capital Funding Date, determined by Agent for each Growth Capital Advance, equal to the greater of: (i) six and three-quarters
percent (6.75%), and (ii) the Basic Rate, but in no event greater than nine and three-quarters percent (9.75%). Interest is computed on the basis of a 360 day year for the actual number of days elapsed. 
 (iii) Default Rate. Any amounts outstanding under the Equipment Advances or Growth Capital Loans during the continuance of an Event of Default
shall bear interest at a per annum rate equal to the Default Rate. 
  

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 (c) Interim Payment. 
 (i) Equipment Advances. In addition to the Scheduled Equipment Payments, on the Equipment Advance Funding Date for each Equipment Advance (unless the Equipment Advance Funding Date is the first Business Day of
the month) Borrower shall pay to the Agent, an amount (the “Equipment Advance Interim Payment”) equal to (i) the subject Equipment Advance multiplied by (ii) the rate set forth in Section 2.3(b)(i), divided by
(iii) 360 days and then multiplied by (iv) the number of days from the actual Equipment Advance Funding Date of the Equipment Advance until the first day of the month following such Equipment Advance. 
 (d) Final Payment. 
 (i) Equipment
Advances. On the earlier of the occurrence of an Event of Default or the Equipment Advance Maturity Date with respect to each Equipment Advance, Borrower shall pay, in addition to the unpaid principal and accrued interest and all other amounts
due on such date with respect to such Equipment Advance, an amount equal to the Equipment Advance Final Payment. 
 (ii) Growth Capital
Advances. On the earlier of the occurrence of an Event of Default or the Growth Capital Advance Maturity Date with respect to each Growth Capital Advance, Borrower shall pay, in addition to the unpaid principal and accrued interest and all other
amounts due on such date with respect to such Growth Capital Advance, an amount equal to the Growth Capital Advance Final Payment. 
 (e)
Mandatory Prepayment Upon an Acceleration. If the Equipment Advances and the Growth Capital Advances are accelerated following the occurrence of an Event of Default or otherwise, Borrower shall immediately pay to Lenders an amount equal to
the sum of: (i) all outstanding principal plus accrued interest, (ii) the Final Payment, (iii) the Prepayment Fee, plus (iv) all other sums, if any, that shall have become due and payable, including interest at the Default Rate
with respect to any past due amounts. 
 (f) Permitted Prepayment of Loans. Borrower shall have the option to prepay all, but not less
than all, of the Growth Capital Advances advanced by Lenders under this Agreement, provided Borrower (i) provides written notice to Agent of its election to prepay the Growth Capital Advances at least thirty (30) days prior to such
prepayment, and (ii) pays, on the date of such prepayment (A) all outstanding principal plus accrued interest, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other sums, if any, that shall have become due and
payable, including interest at the Default Rate with respect to any past due amounts. 
 (g) Prepayment of Equipment Advances Upon an
Event of Loss. Borrower shall bear the risk of any loss, theft, destruction, or damage of or to the Financed Equipment. If during the term of this Agreement any item of Financed Equipment is lost, stolen, destroyed, damaged beyond repair,
rendered permanently unfit for use, or seized by a governmental authority for any reason for a period equal to at least the remainder of the term of this Agreement (an “Event of Loss”), then in each case: 
 (i) if no Event of Default has occurred or is continuing, within ten (10) days following the Event of Loss, at Borrower’s option, Borrower shall
(A) pay to Agent on account of the Obligations an amount equal to (1) the ratio (expressed as a percentage) of (A) the Original Stated Costs of the item(s) of Financed Equipment subject to the Event of Loss to (B)

  

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the Equipment Advance Loan Amount for the Equipment Advance financing such item(s) of Financed Equipment, multiplied by (2) all accrued and unpaid
interest with respect to the applicable Equipment Advance(s) to the date of the prepayment, plus all outstanding principal with respect to the applicable Equipment Advance(s), plus the Final Payment with respect to the applicable Equipment
Advance(s); or (B) repair or replace any Financed Equipment subject to an Event of Loss provided the repaired or replaced Financed Equipment is of equal or like value to the Financed Equipment subject to an Event of Loss and provided further
that Agent and Lenders have a first priority perfected security interest in such repaired or replaced Financed Equipment; 
 (ii) if an Event
of Default has occurred and is continuing, on or before the next Equipment Payment Date following such Event of Loss, for each such item of Financed Equipment subject to such Event of Loss, Borrower shall, at Agent’s option, pay to Agent an
amount equal to the sum of: (A) all outstanding principal plus accrued interest, (B) the Final Payment, plus (C) all other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to
any past due amounts. 
 (h) Debit of Accounts. Agent may debit any of Borrower’s deposit accounts including Account Number
3300481669 for principal and interest payments or any amounts Borrower owes any of the Lenders. Agent will promptly notify Borrower when it debits Borrower’s accounts. These debits shall not constitute a set-off. 
 2.4 Fees. 
 Borrower will pay to
Agent: 
 (a) Revolving Line Loan Fee. A fully earned, non-refundable Revolving Line Loan Fee of $10,000 shall be due and payable to
SVB annually commencing on the Closing Date and every year anniversary of the Closing Date so long as any Obligations relating to the Revolving Line remain outstanding or SVB has any commitment to make any Advances under the Revolving Line;
provided, however, for the first year’s annual fee due on the Closing Date, SVB shall apply $5,000 of such fee towards amounts owing under Section 2.4(d) hereof. 
 (b) Final Payment. The Final Payment. 
 (c) Prepayment Fee. The Prepayment Fee, as defined herein, if and when applicable. 
 (d) Agent Expenses. All Agent
Expenses and Lenders Expenses (including reasonable attorneys’ fees and reasonable expenses not exceeding $7,500.00, plus expenses, for documentation and negotiation of this Agreement) incurred through and after the Closing Date, when due.

 2.5 Additional Costs. If any new law or regulation increases any Lender’s costs or reduces its income for any loan, Borrower
shall pay the increase in cost or reduction in income or additional expense; provided, however, that Borrower shall not be liable for any amount attributable to any period before 180 days prior to the date Agent notifies Borrower of such increased
costs. Agent agrees that it shall allocate any increased costs among its customers similarly affected in good faith and in a manner consistent with Agent’s customary practice. 
  

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	3	CONDITIONS OF LOANS 

 3.1 Conditions
Precedent to Initial Credit Extension. 
 The Lenders’ agreement to make the initial Credit Extension is subject to the condition
precedent that Agent shall have received, in form and substance satisfactory to Agent, such documents and completion of such other matters, as Agent may reasonably deem necessary or appropriate, including, without limitation, subject to the
condition precedent that Agent shall have received in form and substance satisfactory to the Agent the following: 
 (a) this Agreement;

 (b) a certificate of the Secretary of Borrower with respect to articles, by-laws, incumbency and resolutions authorizing the execution and
delivery of this Agreement; 
 (c) Perfection Certificate(s) by Borrower; 
 (d) with respect to an Equipment Advance only, a Loan Supplement; 
 (e) with respect to the Revolving Line only, the Initial Audit; 
 (f) Warrants to Purchase Stock;

 (g) financing statements (Forms UCC-1); 
 (h) Account Control Agreement/Investment Account Control Agreements (SVB and other financial institutions); 
 (i) VC/OC (Management) Letter Agreement; 
 (j) insurance certificate; 
 (k) payment of the fees and Agent Expenses and Lenders Expenses then due specified in Section 2.4 hereof; 
 (l) Certificate of Foreign Qualification (if applicable); 
 (m) Certificate of Good Standing/Legal Existence; and 
 (n) such other documents, and completion of such
other matters, as Agent may reasonably deem necessary or appropriate. 
 3.2 Conditions Precedent to all Credit Extensions.

 The obligations of Lenders to make each Credit Extension, including the initial Credit Extension, is subject to the following:

 (a) With respect to Advances, Equipment Advances and Growth Capital Advances only, timely receipt of any Payment/Advance Form; 

(b) with respect to an Equipment Advance only, a Loan Supplement; and 
 (c) the representations and warranties in Section 5 shall be true, correct and complete in all material respects on the date of the Payment/Advance Form and on the effective date of each Credit Extension
and no Event of Default shall have occurred and be continuing, or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in Section 5
remain true. 
  

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	4	CREATION OF SECURITY INTEREST 

 4.1 Grant
of Security Interest. Borrower hereby grants Agent, for the ratable benefit of the Lenders; and to each Lender, to secure the payment and performance in full of all of the Obligations (other than Obligations solely relating to the Equipment
Line) and the performance of each of Borrower’s duties under the Loan Documents, a continuing security interest in, and pledges and assigns to the Agent, for the ratable benefit of the Lenders, and to each Lender the Collateral, wherever
located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrower hereby grants Agent, for the ratable benefit of the Lenders; and to each Lender, to secure the payment and performance in full of all of the
Obligations solely relating to the Equipment Line and the performance of each of Borrower’s duties solely relating to the Equipment Line under the Loan Documents, a continuing security interest in, and pledges and assigns to the Agent, for the
ratable benefit of the Lenders, and to each Lender the Financed Equipment, wherever located, whether now owned or hereafter acquired or arising, and all additions, attachments, accessories, successions and improvements to and replacements, proceeds,
insurance proceeds and products thereof. Borrower warrants and represents that the security interest granted herein shall be a first priority security interest in the Collateral. 
 Except as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any license or other agreement with respect to which the
Borrower is the licensee that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property. 
 If the Agreement is terminated, Lenders’ and Agent’s lien and security interest in the Collateral shall continue until Borrower fully satisfies
its Obligations. If Borrower shall at any time, acquire a commercial tort claim, Borrower shall promptly notify Agent in a writing signed by Borrower of the brief details thereof and grant to Agent and Lenders in such writing a security interest
therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to Agent. 
 4.2 Authorization to File Financing Statements. 
 Borrower hereby authorizes Agent to file financing statements, without
notice to Borrower, with all appropriate jurisdictions, in order to perfect or protect Agent’s and Lenders’ interest or rights hereunder. 
  

	5	REPRESENTATIONS AND WARRANTIES 

 Borrower
represents and warrants to Agent and each Lender as follows: 
 5.1 Due Organization and Authorization. 
 Borrower and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good
standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified, except where the failure to do so could not reasonably be expected to have a material adverse effect on 

  

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Borrower’s business or operations. In connection with this Agreement, the Borrower delivered to the Agent a certificate signed by the Borrower and
entitled “Perfection Certificate”. The Borrower represents and warrants to the Agent and each Lender that: (a) the Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof;
(b) the Borrower is an organization of the type, and is organized in the jurisdiction, set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth the Borrower’s organizational identification number
or accurately states that the Borrower has none; (d) the Perfection Certificate accurately sets forth the Borrower’s place of business, or, if more than one, its chief executive office as well as the Borrower’s mailing address if
different, and (e) all other information set forth on the Perfection Certificate pertaining to the Borrower is accurate and complete. If the Borrower does not now have an organizational identification number, but later obtains one, Borrower
shall forthwith notify the Agent of such organizational identification number. 
 The execution, delivery and performance of the Loan
Documents have been duly authorized, and do not conflict with Borrower’s organizational documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to
which or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s business or operations. 
 5.2 Collateral. 
 Borrower has good title to the Collateral, free of Liens except Permitted Liens.
Borrower has no deposit account, other than the deposit accounts with Lenders and deposit accounts described in the Perfection Certificate delivered to Agent in connection herewith or of which Borrower has given Agent written notice and taken such
actions as are necessary to give Agent a perfected security interest for the benefit of Lenders. To the extent claimed as Eligible Accounts in any Borrowing Base Certificate, the Accounts are bona fide, existing obligations, and the service or
property has been performed or delivered to the account debtor or its agent for immediate shipment to and unconditional acceptance by the account debtor. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor
whose accounts are an Eligible Account in any Borrowing Base Certificate. The Collateral is not in the possession of any third party bailee (such as a warehouse). Except as hereafter disclosed to the Lenders in writing by Borrower, none of the
components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate (except Collateral may be maintained at customer locations in the ordinary course of business). Borrower may maintain Inventory and
Equipment with third parties provided that (i) the value of such Inventory and Equipment does not exceed $500,000 in aggregate at any time (not including Inventory and Equipment at customer locations in the ordinary course of business), and
(ii) Borrower provides Agent, within thirty (30) days of the end of each quarter, a written summary of the location of such Inventory and Equipment (not including Inventory and Equipment at customer locations in the ordinary course of
business). In the event that Borrower, after the date hereof, intends to store or otherwise deliver any portion of the Collateral to a bailee, then Borrower will first receive the written consent of Lenders and such bailee must acknowledge in
writing that the bailee is holding such Collateral for the benefit of Agent and Lenders. Borrower is the sole owner of the Intellectual Property, except for licenses granted to its customers in the ordinary course of business. To Borrower’s
knowledge, each Patent is valid and enforceable and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property violates the rights of any
third party, except to the extent such claim could not reasonably be expected to have a material adverse effect on Borrower’s business or operations. 
  

 11 

 5.3 Litigation. 
 Except as shown in the Perfection Certificate, there are no actions or proceedings pending or, to the knowledge of Borrower’s Responsible Officers or legal counsel, threatened in writing by or against Borrower or
any Subsidiary in which an adverse decision could reasonably be expected to have a material adverse effect on Borrower’s business or operations. 
 5.4 No Material Deterioration in Financial Statements. 
 All consolidated financial statements for
Borrower, and any Subsidiary, delivered to Agent fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any material deterioration in
Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Agent, although Borrower’s cash may have declined to pay necessary and ordinary course business expenses. 
 5.5 Solvency. 
 The fair salable
value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; the Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay
its debts (including trade debts) as they mature. 
 5.6 Regulatory Compliance. 
 Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company
Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair
Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect on Borrower’s business or operations. None of Borrower’s or any
Subsidiary’s properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than
legally. Borrower and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each
Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted, except where the
failure to make such declarations, notices or filings would not reasonably be expected to have a material adverse effect on Borrower’s business or operations. 
 5.7 Subsidiaries. 
 Borrower does not own any stock, partnership interest or other equity securities
except for Permitted Investments. 
  

 12 

 5.8 Full Disclosure. 
 No written representation, warranty or other statement of Borrower in any certificate or written statement given to Agent or any Lender (taken together with all such written certificates and written statements given
to Agent or any Lender and as of the date such representation, warranty or other statement was made) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or
statements not misleading, it being recognized by Agent that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered
by such projections and forecasts may differ from the projected or forecasted results. 
  

	6	AFFIRMATIVE COVENANTS 

 Borrower shall do all
of the following for so long as Agent or any Lender has an obligation to make any Credit Extension, or there are outstanding Obligations: 
 6.1 Government Compliance. 
 Borrower shall maintain its and all Subsidiaries’ legal existence (except as permitted
under Section 7.3) and good standing as a Registered Organization and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s
business or operations. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business or
operations. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Borrower shall deliver to Agent: (i) as soon as available, but no later than thirty (30) days after the last day of each month, a company
prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations during the period certified by a Responsible Officer and in a form reasonably acceptable to Agent; (ii) as soon as available, but no later
than one hundred twenty (120) days after the last day of Borrower’s fiscal year for each of Borrower’s fiscal years commencing with the fiscal year ended 2005 and thereafter, audited consolidated financial statements prepared under
GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Agent (provided, however, that Borrower’s 2005 fiscal year audited
consolidated financial statements shall include the 2004 fiscal year and the additional time period since the inception of Borrower); (iii) annual financial projections approved by Borrower’s Board of Directors consistent in form and
detail with those provided to Borrower’s venture capital investors as soon as available, but no later than thirty (30) days after Board approval; (iv) in the event that the Borrower’s stock becomes publicly held, within five
(5) days of filing, copies of or electronic links to (in the case of electronic links being provided to Agent, Borrower shall still be required to submit to Agent the applicable compliance certificate in the form of Exhibit E) all
statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt and all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission; (v) a prompt report of any
legal actions pending or threatened against Borrower or any Subsidiary that could reasonably be expected to result in damages or costs to Borrower or any Subsidiary of One Hundred Thousand Dollars ($100,000.00) or more; and (vi) budgets, sales
projections, operating plans or other financial information generally prepared by Borrower in the ordinary course of business reasonably requested by Agent. 
  

 13 

 (b) Within twenty (20) days after the last day of each month, Borrower shall deliver to SVB a
Borrowing Base Certificate signed by a Responsible Officer in the form of Exhibit D with aged listings of accounts receivable and accounts payable (by invoice date). 
 (c) Within thirty (30) days after the last day of each month, Borrower shall deliver to Agent with the monthly financial statements a Compliance
Certificate signed by a Responsible Officer in the form of Exhibit E. 
 (d) Allow Agent to audit Borrower’s Collateral at
Borrower’s expense. Such audits shall be conducted no more often than once every six (6) months unless an Event of Default has occurred and is continuing. Notwithstanding the foregoing, no Advances under the Revolving Line shall be made
prior to the completion of the initial audit (“Initial Audit”). 
 6.3 Inventory; Returns. 
 Borrower shall keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between Borrower and its account
debtors shall follow Borrower’s customary practices as they exist at the Closing Date. Borrower must promptly notify Agent of all returns, recoveries, disputes and claims, which involve more than $100,000. 
 6.4 Taxes. 
 Borrower shall make, and
cause each Subsidiary to make, timely payment of all material federal, state, and local taxes or assessments (other than taxes and assessments which Borrower is contesting in good faith, with adequate reserves maintained in accordance with GAAP) and
will deliver to Agent, on demand, appropriate certificates attesting to such payments. 
 6.5 Insurance. 
 Borrower shall keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and
as Lenders and Agent may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Lenders and Agent. All property policies shall have a lender’s loss payable endorsement showing each
Lender as an additional loss payee and waive subrogation against Lenders, and all liability policies shall show, or have endorsements showing, each Lender as an additional insured. All policies (or the loss payable and additional insured
endorsements) shall provide that the insurer must give Lenders at least thirty (30) days notice before canceling, amending, or declining to renew its policy. At Agent’s request, Borrower shall deliver certified copies of policies and
evidence of all premium payments. Proceeds payable under any casualty policy shall, at Agent’s option, be payable to Agent on behalf of Lenders on account of the Obligations. Notwithstanding the foregoing, and other than with respect to
Financed Equipment which is governed by Section 2.3(g), (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy toward the replacement or
repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Agent and Lenders have
been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event 

  

 14 

 
of Default, all proceeds payable under such casualty policy shall, at the option of Agent, be payable to Agent on behalf of Lenders on account of the
Obligations. If Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Agent, Agent may make all or part of such payment or obtain such
insurance policies required in this Section 6.5, and take any action under the policies Agent deems prudent. 
 6.6 Accounts.

 (a) In order to permit the Agent to monitor the Borrower’s financial performance and condition, Borrower, and all Borrower’s
Subsidiaries, shall maintain Borrower’s, and such Subsidiaries’, primary operating accounts with Agent. 
 (b) Borrower shall
identify to Agent, in writing, any bank or securities account opened by Borrower with any institution other than Agent. In addition, for each such account that the Borrower at any time opens or maintains, Borrower shall, at the Agent’s on
behalf of Lenders request and option, pursuant to an agreement in form and substance acceptable to the Lenders and Agent cause the depository bank or securities intermediary to agree that such account is the collateral of the Agent, on behalf of
Lenders pursuant to the terms hereunder, including without limitation, Borrower’s money market funds and any operating or investment accounts maintained by Mid-Peninsula Bank as of the Effective Date (collectively, the “MP Funds”) as
to which Borrower shall obtain such an agreement for the MP Funds from Mid-Peninsula Bank or whatever financial institution subsequently maintains the MP Funds on or before ninety (90) days after the Effective Date of this Agreement. The
provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of the Borrower’s employees. 
 6.7 Intellectual Property. 
 Borrower
shall: (i) protect, defend and maintain the validity and enforceability of the Intellectual Property except where Borrower in the exercise of its business judgment deems it in its best interests not to do so; (ii) promptly advise Lenders
in writing of material infringements of the Intellectual Property; and (iii) not allow any Intellectual Property material to the Borrower’s business to be abandoned, forfeited or dedicated to the public except where Borrower in the
exercise of its business judgment deems it in its best interests not to do so. 
 6.8 Further Assurances. 
 Borrower shall execute any further instruments and take further action as Agent reasonably requests to perfect or continue Agent’s security interest
in the Collateral for the benefit of Lenders or to effect the purposes of this Agreement. 
  

 15 

	7	NEGATIVE COVENANTS 

 Borrower shall not do
any of the following without the Agent’s prior written consent for so long as Agent or any Lender has an obligation to make Credit Extensions or there are any outstanding Obligations: 
 7.1 Dispositions. 
 Convey, sell,
lease, transfer or otherwise dispose of (collectively a “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (i) of Inventory in the ordinary course of business;
(ii) of non-exclusive licenses (or exclusive licenses limited to a particular geographic range outside of the United States or a field of use) and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary
course of business; (iii) of unneeded or worn-out or obsolete Equipment not constituting Financed Equipment; (iv) otherwise permitted by this Agreement; or (v) of other property not constituting Financed Equipment having an aggregate
book value not to exceed $250,000 in any fiscal year. 
 7.2 Changes in Business, Ownership, Management or Locations of Collateral. 

 Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower or
reasonably related thereto, or have a change in its ownership (other than by the sale of Borrower’s equity securities in a public offering or by trading after a public offering or the sale by Borrower of Borrower’s equity securities to
venture capital or strategic investors so long as Borrower identifies to Agent the venture capital or strategic investors prior to the closing of the investment) of greater than thirty percent (30%) of the voting shares of stock, or a change in
a Senior Manager unless a replacement is approved by a majority of Borrower’s Board of Directors, including a majority of those members of the Board of Directors who were members of the Board of Directors and not employees of Borrower (the
“Outside Directors”), within 90 days of the date of termination of such Senior Manager, provided that if a majority of the Outside Directors determine that such Senior Manager shall not be replaced, then Borrower shall notify Agent within
30 days of such determination. Borrower shall not, without at least thirty (30) days prior written notice to Agent: (i) relocate its chief executive office, or add any new offices or business locations, including warehouses (unless such
new offices or business locations contain less than Fifty Thousand Dollars ($50,000) in Borrower’s assets or property), or (ii) change its jurisdiction of organization, or (iii) change its organizational structure or type, or
(iv) change its legal name, or (v) change any organizational number (if any) assigned by its jurisdiction of organization. 
 7.3 Mergers or Acquisitions. 
 Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any
other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except (i) a Subsidiary may merge or consolidate into another Subsidiary or into Borrower,
(ii) as permitted under Section 7.6, (iii) Borrower or a Subsidiary may acquire the assets of a Subsidiary that has dissolved, (iv) Borrower or a Subsidiary may acquire a Person or the assets of a Person in an
all stock transaction or in a transaction where the cash portion of the consideration does not exceed $500,000 so long as the acquisition will not require Borrower to invest cash of more than $500,000 (in addition to any cash
component of the acquisition price) per year in such Person or the assets acquired on an ongoing basis, or (v) Borrower may acquire some or all of the Intellectual Property of another Person with the approval of Borrower’s Board of
Directors. 
  

 16 

 7.4 Indebtedness. 
 Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5 Encumbrance. 
 Create, incur, or allow any Lien on any of its property, or assign or convey any
right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted herein, except for
Permitted Liens. In addition, Borrower shall not sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber, or enter into any agreement, document, instrument or other arrangement (except with or in favor of the Agent
and Lenders) with any Person which directly or indirectly prohibits or has the effect of validly prohibiting Borrower from selling, transferring, assigning, mortgaging, pledging, leasing, granting a security interest in or upon, or encumbering any
of Borrower’s Intellectual Property (other than as permitted under Section 7.1). 
 7.6 Distributions; Investments. 

 (i) Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any
of its Subsidiaries to do so; or (ii) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock other than Permitted Distributions. 
 7.7 Transactions with Affiliates. 
 Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no
less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 
 7.8 Subordinated
Debt. 
 Make or permit any payment on any Subordinated Debt, except under the terms of the Subordinated Debt, or amend any provision in
any document relating to the Subordinated Debt without Agent’s prior written consent. 
 7.9 Compliance. 
 Become an “investment company” or a company controlled by an “investment company,” under the Investment Company Act of 1940 or
undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or
Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on
Borrower’s business or operations, or permit any of its Subsidiaries to do so. 
  

 17 

	8	EVENTS OF DEFAULT 

 Any one of the following
is an Event of Default: 
 8.1 Payment Default. 
 Borrower fails to pay any of the Obligations within three (3) days after their due date. During the additional period the failure to cure the default shall not constitute an Event of Default (but no Credit
Extension shall be made during such cure period). 
 8.2 Covenant Default. 
 (a) If Borrower fails to perform any obligation under Section 6.2 or violates any of the covenants contained in Section 7 of this
Agreement, or 
 (b) If Borrower fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant, or
agreement contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and any Lender and as to any default under such other term, provision, condition, covenant or agreement that can be
cured, has failed to cure such default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be
cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such
default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default (provided that no Credit Extensions will be made during such cure period). 
 8.3 Intentionally Omitted. 
 8.4
Attachment. 
 (i) Any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or
receiver and the attachment, seizure or levy is not removed in ten (10) days; (ii) the service of process upon the Borrower seeking to attach, by trustee or similar process, any funds of the Borrower on deposit with the Lenders and/or
Agent, or any entity under the control of Lenders and/or Agent (including a subsidiary) and the service of process is not rescinded or withdrawn within ten (10) days; (iii) Borrower is enjoined, restrained, or prevented by court order from
conducting a material part of its business; (iv) a judgment or other claim becomes a Lien on a material portion of Borrower’s assets; or (v) a notice of lien, levy, or assessment is filed against any material portion of
Borrower’s assets by any government agency and not paid within ten (10) days after Borrower receives notice. These are not Events of Default if stayed or if a bond is posted pending contest by Borrower (but no Credit Extensions shall be
made during the cure period). 
 8.5 Insolvency. 
 (i) Borrower is unable to pay its debts (including trade debts) as they mature; (ii) Borrower begins an Insolvency Proceeding; or (iii) an Insolvency Proceeding is begun against Borrower and not dismissed or
stayed within thirty (30) days (but no Credit Extensions shall be made before any Insolvency Proceeding is dismissed). 
 8.6 Other
Agreements. 
 If there is a default in any agreement to which Borrower is a party with a third party or parties resulting in a right by
such third party or parties, whether or not exercised, to accelerate 

  

 18 

 
the maturity of any Indebtedness in an amount in excess of Two Hundred Thousand Dollars ($200,000) or that could reasonably be expected to result in a
material adverse effect on Borrower’s business or operations. 
 8.7 Judgments. 
 If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Thousand Dollars ($200,000)
shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment). 
 8.8 Misrepresentations. 
 If Borrower
or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or representation in this Agreement or in any writing delivered to Agent and/or Lenders or to induce Agent and/or Lenders to
enter this Agreement or any Loan Document. 
 8.9 Guaranty. 
 (i) Any guaranty of any Obligations terminates or ceases for any reason to be in full force; or (ii) any Guarantor does not perform any obligation
under any guaranty of the Obligations; or (iii) any material misrepresentation or material misstatement exists now or later in any warranty or representation in any guaranty of the Obligations or in any certificate delivered to Agent in
connection with the guaranty; or (iv) any circumstance described in Section 7, or Sections 8.4, 8.5, or 8.8 occurs to any Guarantor, or (v) the liquidation, winding up, termination of existence, or insolvency of any
Guarantor. 
 8.10 Intentionally Omitted. 
 8.11 Lien Priority. 
 There is a material impairment in the priority of any Lender’s security
interest in the Collateral. 
  

	9	RIGHTS AND REMEDIES 

 9.1 Rights and
Remedies. 
 When an Event of Default occurs and continues Agent may, without notice or demand, do any or all of the following:

 (a) Declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all
Obligations are immediately due and payable without any action by Agent and/or Lenders); 
 (b) Stop advancing money or extending credit for
Borrower’s benefit under this Agreement or under any other agreement between Borrower and Agent and/or Lenders; 
 (c) Demand that
Borrower (i) deposits cash with SVB in an amount equal to the aggregate amount of any Letters of Credit remaining undrawn, as collateral security for the 

  

 19 

 
repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all
Letter of Credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 
 (d) terminate any FX Forward
Contracts; 
 (e) Settle or adjust disputes and claims directly with account debtors for amounts, on terms and in any order that Agent
considers advisable and notify any Person owing Borrower money of Agent’s for the benefit of Lenders’ security interest in such funds and verify the amount of such account. Borrower shall collect all payments in trust for Agent for the
benefit of Lenders and, if requested by Agent, immediately deliver the payments to Lenders in the form received from the account debtor, with proper endorsements for deposit; 
 (f) Make any payments and do any acts it considers necessary or reasonable to protect its security interest in the Collateral. Borrower shall assemble
the Collateral if Agent requests and make it available as Agent designates. Agent may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien
which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Agent for the benefit of Lenders a license to enter and occupy any of its premises, without charge, to exercise any of Agent’s rights
or remedies; 
 (g) Apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Agent
or Lenders owing to or for the credit or the account of Borrower; 
 (h) Ship, reclaim, recover, store, finish, maintain, repair, prepare for
sale, advertise for sale, and sell the Collateral. Agent is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, patents, copyrights, mask works, rights of use of any name, trade
secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Agent’s
exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Agent’s for benefit of Lenders; and 
 (i) Place a “hold” on any account maintained with Agent and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any control agreement or similar
agreements providing control of any Collateral; 
 (j) demand and receive possession of Borrower’s Books; and 
 (k) exercise all rights and remedies and dispose of the Collateral according to the Code. 
 9.2 Power of Attorney. 
 Borrower
hereby irrevocably appoints Agent as its lawful attorney-in-fact, to be effective upon the occurrence and during the continuance of an Event of Default, to: (i) endorse Borrower’s name on any checks or other forms of payment or security;
(ii) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against account debtors, (iii) settle and adjust disputes and claims about the Accounts directly with account debtors, for 

  

 20 

 
amounts and on terms Agent determines reasonable; (iv) make, settle, and adjust all claims under Borrower’s insurance policies; and
(v) transfer the Collateral into the name of Agent for the benefit of Lenders or a third party as the Code permits. Borrower hereby appoints Agent as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect
or continue the perfection of any security interest regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and Agent and Lenders are under no further obligation to make Credit Extensions hereunder.
Agent’s foregoing appointment as Borrower’s attorney in fact, and all of Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Lenders’ and
Agent’s obligation to provide Credit Extensions terminates. 
 9.3 Accounts, Notification and Collection. 
 In the event that an Event of Default occurs and is continuing, Agent may notify any Person owing Borrower money of Agent’s, and Lenders’
security interest in the funds and verify and/or collect the amount of the Account. After the occurrence of an Event of Default, any amounts received by Borrower shall be held in trust by Borrower for Agent, and, if requested by Agent, Borrower
shall immediately deliver such receipts to Agent in the form received from the account debtor, with proper endorsements for deposit. 
 9.4 Agent Expenses 
 Any amounts paid by Agent as provided herein are Agent Expenses and are immediately due and payable and
shall bear interest at the then applicable rate and be secured by the Collateral. No payments by Agent shall be deemed an agreement to make similar payments in the future or Agent’s and Lenders’ waiver of any Event of Default. 

9.5 Agent’s and Lenders’ Liability for Collateral. 
 So long as the Agent and Lenders comply with reasonable banking practices regarding the safekeeping of Collateral, the Agent and Lenders shall not be liable or responsible for: (a) the safekeeping of the
Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or
destruction of the Collateral. 
 9.6 Remedies Cumulative. 
 Agent’s rights and remedies under this Agreement, the Loan Documents, and all other agreements are cumulative. Agent has all rights and remedies
provided under the Code, by law, or in equity. Agent’s exercise of one right or remedy is not an election, and Agent’s waiver of any Event of Default is not a continuing waiver. Agent’s delay is not a waiver, election, or
acquiescence. No waiver hereunder shall be effective unless signed by Agent and each Lender and then is only effective for the specific instance and purpose for which it was given. 
 9.7 Demand Waiver. 
 Borrower waives
demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by
Agent on which Borrower is liable. 
  

 21 

	10	NOTICES 

 Notices or demands by either party
about this Agreement must be in writing and personally delivered or sent by an overnight delivery service, or by certified mail, postage prepaid, return receipt requested, or by telefacsimile at the addresses listed below. A party may change its
notice address by written notice to the other party. 
  

			
	If to Borrower:	  	 Acclarent, Inc.
 1525 O’Brien Drive, Suite
B
 Menlo Park, California 94025
 Attn: Bill Facteau
 Fax: (650) 687-5889

		
	If to Agent:	  	Silicon Valley Bank
	or SVB:	  	 2400 Geng Road, Suite 200
 Palo Alto, California 94303

 Attn: Chris Wagner
 Fax:
(650) 320-0016

		
	If to Gold Hill:	  	 Gold Hill Venture Lending Partners
 3003 Tasman Drive

 Santa Clara, California 95054
 Attn: Tim McDonough

Fax: (408) 654-6256

  

	11	CHOICE OF LAW , VENUE AND JURY TRIAL WAIVER 

 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Lenders, and Agent each submit to the exclusive jurisdiction of the State and Federal courts in California and Borrower accepts
jurisdiction of the courts and venue in Santa Clara County, California. NOTWITHSTANDING THE FOREGOING, THE LENDERS OR AGENT SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER
JURISDICTION WHICH THE AGENT DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE THE LENDERS’ OR AGENT’S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY. 
 BORROWER, AGENT, AND LENDERS EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN
DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

  

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	12	GENERAL PROVISIONS 

 12.1 Successors and
Assigns. 
 This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign
this Agreement or any rights or Obligations under it without Agent’s prior written consent which may be granted or withheld in Agent’s discretion. Lenders and Agent have the right, without the consent of or notice to Borrower, to sell,
transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Lenders’ obligations, rights and benefits under this Agreement, the Loan Documents or any related agreement, including, without limitation, an
assignment to any Affiliate or related party. 
 12.2 Indemnification. 
 Borrower hereby indemnifies, defends and holds Agent and the Lenders and their respective officers, employees, and agents harmless against: (a) all
obligations, demands, claims, and liabilities asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses, Agent Expenses, or Lenders Expenses incurred, or paid by Lenders and/or Agent
from, following, or consequential to transactions between Lenders and Borrower (including reasonable attorneys’ fees and expenses), except for losses caused by a Lender’s or Agent’s gross negligence or willful misconduct. 

12.3 Attorneys’ Fees, Costs and Expenses. 
 In any action or proceeding between Borrower and Agent arising out of the Loan Documents the prevailing party will be entitled to recover its reasonable attorneys’ fees and other reasonable costs and expenses
incurred, in addition to any other relief to which it may be entitled. 
 12.4 Right of Set-Off. 
 Borrower and any guarantor hereby grant to Agent for the ratable benefit of Lenders, a lien, security interest and right of set-off as security for all
Obligations to Agent and each Lender, hereunder, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Agent or any entity
under the control of the Agent (including an Agent subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Agent may set-off the same or any part thereof
and apply the same to any liability or obligation of Borrower and any guarantor even though unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE AGENT TO EXERCISE ITS RIGHTS OR
REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE BORROWER OR ANY GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED. 
 12.5 Time of Essence. 
 Time is of the essence for the performance of all Obligations in this Agreement. 
  

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 12.6 Severability of Provision. 
 Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 
 12.7 Amendments in Writing, Integration. 
 All amendments to this Agreement must be in writing and signed by both Agent and Borrower. This Agreement and the Loan Documents represent the entire agreement about this subject matter, and supersede prior negotiations or agreements. All
prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
 12.8 Counterparts. 
 This Agreement
may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement. 
 12.9 Survival. 
 All covenants,
representations and warranties made in this Agreement continue in full force while any Obligations remain outstanding. The obligations of Borrower to indemnify any Lender and Agent, including without limitation Section 12.2, shall
survive until the statute of limitations with respect to such claim or cause of action shall have run. 
 12.10 Confidentiality.

 All financial information disclosed to Borrower to Agent and Lenders and together with all other written information disclosed by
Borrower to Agent that is marked “confidential” shall be considered confidential for the purposes hereof. In handling any confidential information, Lenders and Agent shall exercise the same degree of care that it exercises for its own
proprietary information, but disclosure of information may be made: (i) to Lenders’ and Agent’s subsidiaries or affiliates in connection with their business with Borrower; (ii) to prospective transferees or purchasers of any
interest in the Credit Extensions (provided, however, Lenders and Agent shall use commercially reasonable efforts in obtaining such prospective transferee’s or purchaser’s agreement to the terms of this provision); (iii) as required
by law, regulation, subpoena, or other order, (iv) as required in connection with Lenders’ and Agent’s examination or audit; and (v) as Agent considers appropriate in exercising remedies under this Agreement. Confidential
information does not include information that either: (a) is in the public domain or in Lenders’ and/or Agent’s possession when disclosed to Lenders and/or Agent, or becomes part of the public domain after disclosure to Lenders and/or
Agent; or (b) is disclosed to Lenders and/or Agent by a third party, if Lenders and/or Agent does not know that the third party is prohibited from disclosing the information. 
 12.11 Effective Date. 
 Notwithstanding anything set forth in this Agreement or any Loan Document to the contrary, this Agreement and all of the Loan Documents shall not be effective until the date on which the Agent and each Lender execute this Agreement as
indicated on the signature page to this Agreement. 
  

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	13	DEFINITIONS 

 13.1 Definitions.

 In this Agreement: 
 “Accounts” are all existing and later arising accounts, contract rights, and other obligations owed Borrower in connection with its sale or lease of goods (including licensing software and other technology) or provision of
services, all credit insurance, guaranties, other security and all merchandise returned or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing, as such definition may be amended from time to time according to the Code.

 “Account Debtor” means the obligor on an Account. 
 “Advance” or “Advances” is a loan advance (or advances) under the Revolving Line. 
 “Affiliate” is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is
under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 
 “Agent” means, SVB, not in its individual capacity, but solely in its capacity as agent on behalf of and for the benefit of the Lenders
and in its capacity as agent on behalf of SVB as the Lender under the Revolving Line. 
 “Agent Expenses” are all audit fees
and expenses and reasonable costs or expenses (including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings). 

“Basic Rate” is: (i) for each Equipment Advance, as of the Equipment Advance Funding Date the per annum rate of interest (based
on a year of 360 days) equal to the sum of (a) U.S. Treasury note yield to maturity for a term equal to three (3) years as quoted in the Wall Street Journal on the Equipment Advance Funding Date, plus (b) the Loan Margin; and
(ii) for each Growth Capital Advance, as of the Growth Capital Advance Funding Date the per annum rate of interest (based on a year of 360 days) equal to the sum of (a) U.S. Treasury note yield to maturity for a term equal to three
(3) years as quoted in the Wall Street Journal on the Growth Capital Advance Funding Date, plus (b) the Loan Margin. 
 “Borrowing Base” is eighty percent (80%) of Eligible Accounts, as determined by SVB from Borrower’s most recent Borrowing Base Certificate; provided, however, that SVB may lower the percentage of the Borrowing
Base after performing an audit of Borrower’s Collateral. 
 “Borrower’s Books” are all Borrower’s books and
records including ledgers, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which the Agent is closed. 
 “Cash Management Services” is the defined in Section 2.1.4. 
  

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 “Closing Date” is the date of this Agreement. 
 “Code” is the Uniform Commercial Code as adopted in California as amended and in effect from time to time. 
 “Collateral” is any and all properties, rights and assets of the Borrower granted by the Borrower to Lenders or arising under the Code,
now, or in the future, including, without limitation, the property described on Exhibit A. 
 “Contingent Obligation”
is, for any Person, any direct or indirect liability, contingent or not, of that Person for (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed,
endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations
from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices;
but “Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made
or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. 
 “Copyrights” are all copyright rights, applications or registrations and like protections in each work or authorship or derivative work,
whether published or not (whether or not it is a trade secret) now or later existing, created, acquired or held. 
 “Credit
Extension” is each Advance, Letter of Credit, F/X Forward Contract, Equipment Advance, Growth Capital Advance or any other extension of credit by any Lender for Borrower’s benefit. 
 “Default Rate” means (i) for each Advance, five percent (5%) above the rate effective immediately before the Event of Default,
and (ii) for each Equipment Advance and Growth Capital Advance, five percent (5%) above the highest rate otherwise applicable thereto. 
 “Dollars” and “$” each means the lawful currency of the United States 
 “Effective
Date” is the date SVB executes this Agreement and as indicated on the signature page hereof. 
 “Eligible Accounts”
are billed Accounts in the ordinary course of Borrower’s business that meet all Borrower’s representations and warranties in Section 5.2; but SVB may change eligibility standards by giving Borrower written notice. Unless
SVB agrees otherwise in writing, Eligible Accounts shall not include: 
 (a) Accounts that the Account Debtor has not paid within ninety
(90) days of invoice date; 
 (b) Accounts for an Account Debtor, fifty percent (50%) or more of whose Accounts have not been paid
within ninety (90) days of invoice date; 
  

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 (c) Credit balances over ninety (90) days from invoice date; 
 (d) Accounts for an Account Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five (25%) of all Accounts, for the
amounts that exceed that percentage, unless SVB approves in writing; 
 (e) Accounts for which the Account Debtor does not have its principal
place of business in the United States; 
 (f) Accounts for which the Account Debtor is a federal, state or local government entity or any
department, agency, or instrumentality thereof except for Accounts of the United States if the payee has assigned its payment rights to SVB and the assignment has been acknowledged under the Assignment of Claims Act of 1940 (31 U.S.C. 3727);

 (g) Accounts for which Borrower owes the Account Debtor, but only up to the amount owed (sometimes called “contra” accounts,
accounts payable, customer deposits or credit accounts); 
 (h) Accounts for demonstration or promotional equipment, or in which goods are
consigned, sales guaranteed, sale or return, sale on approval, bill and hold, or other terms if Account Debtor’s payment may be conditional; 
 (i) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (j) Accounts in which the
Account Debtor disputes liability or makes any claim and SVB believes there may be a basis for dispute (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes
out of business; 
 (k) Accounts which represent deferred revenue where there is an ongoing obligation on behalf of the Borrower (but only to
the extent of such deferred revenue); 
 (l) Accounts for which SVB reasonably determines collection to be doubtful after inquiry and
consultation with Borrower. 
 “Eligible Equipment” is (a) new and used equipment including computer equipment,
manufacturing equipment, office equipment, test and laboratory equipment, furnishings, subject to the limitations set forth herein, and (b) Other Equipment that complies with all of Borrower’s representations and warranties to Agent and
which is acceptable to Agent in all respects. 
 “Equipment” is all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest. 
 “Equipment
Advance” is defined in Section 2.1.6(a). 
 “Equipment Advance Amortization Date” means May 1,
2006. 
 “Equipment Advance Final Payment” is a payment (in addition to and not a substitution for the regular monthly
payments of principal plus accrued interest) due on the Equipment Advance Maturity Date for such Equipment Advance equal to the Equipment 

  

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Advance Loan Amount for such Equipment Advance (less the Original Stated Cost of any item(s) of Equipment subject to an Event of Loss and with respect to
which a prepayment was made pursuant to Section 2.3(g)) multiplied by the Equipment Advance Final Payment Percentage. 
 “Equipment Advance Final Payment Percentage” is, for each Equipment Advance, 2.5%. 
 “Equipment Advance
Funding Date” is any date on which an Equipment Advance is made to or on account of Borrower. 
 “Equipment Advance Loan
Amount” in respect to each Equipment Advance is the original principal amount of such Equipment Advance. 
 “Equipment
Advance Maturity Date” is, for each Equipment Advance, April 1, 2009. 
 “Equipment Advance Payment Date” is
defined in Section 2.3(a). 
 “Equipment Advance Repayment Period” is a period of time equal to thirty six
(36) consecutive Equipment Payment Dates commencing on May 1, 2006. 
 “Equipment Commitment Amount” is One
Million Dollars ($1,000,000). 
 “Equipment Commitment Percentage” means with respect to SVB fifty percent (50%), and with
respect to the Gold Hill means fifty percent (50%). 
 “Equipment Commitment Termination Date” is April 30, 2006.

 “Equipment Interest Only Period” means, for each Equipment Advance, the period of time commencing on its Equipment
Advance Funding Date through the day before the Equipment Advance Amortization Date. 
 “Equipment Line” is an Equipment
Advance or Equipment Advances in an aggregate amount of up to $1,000,000. 
 “ERISA” is the Employment Retirement Income
Security Act of 1974, and its regulations. 
 “Event of Loss” is defined in Section 2.3(g). 
 “Final Payment” means the Equipment Advance Final Payment and/or the Growth Capital Advance Final Payment. 
 “Financed Equipment” is all present and future Eligible Equipment in which Borrower has any interest, the purchase of which is financed
by an Equipment Advance. 
 “Foreign Currency” means lawful money of a country other than the United States. 
 “FX Business Day” is any day when (a) SVB’s Foreign Exchange Department is conducting its normal business and (b) the
Foreign Currency being purchased or sold by Borrower is available to SVB from the entity from which SVB shall buy or sell such Foreign Currency. 
  

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 “FX Forward Contract” is defined in Section 2.1.3. 
 “FX Reserve” is defined in Section 2.1.3. 
 “GAAP” is generally accepted accounting principles. 
 “Growth Capital
Advance” or “Growth Capital Advances” is defined in Section 2.1.7. 
 “Growth Capital Advance
Final Payment” is a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) due on the Growth Capital Advance Maturity Date for such Growth Capital Advance equal to the Growth
Capital Loan Amount for such Growth Capital Advance multiplied by the Growth Capital Advance Final Payment Percentage. 
 “Growth
Capital Advance Final Payment Percentage” is, for each Growth Capital Advance, 2.5%. 
 “Growth Capital Amortization
Date” means October 1, 2006. 
 “Growth Capital Commitment Percentage” means with respect to SVB twenty five
percent (25%), and with respect to the Gold Hill means seventy five percent (75%). 
 “Growth Capital Commitment Termination
Date” is September 30, 2006. 
 “Growth Capital Funding Date” is any date on which a Growth Capital Advance is
made to or on account of Borrower. 
 “Growth Capital Interest Only Period” means, for each Growth Capital Advance, the
period of time commencing on its Growth Capital Funding Date through the day before the Growth Capital Amortization Date. 
 “Growth
Capital Advance Loan Amount” in respect to each Growth Capital Advance is the original principal amount of such Growth Capital Advance. 
 “Growth Capital Loan Commitment” is Three Million Dollars ($3,000,000). 
 “Growth Capital Maturity
Date” is, for each Growth Capital Advance, September 1, 2009. 
 “Growth Capital Payment Date” is defined in
Section 2.3(a)(ii). 
 “Growth Capital Repayment Period” is a period of time equal to thirty six
(36) consecutive Growth Capital Payment Dates commencing on October 1, 2006. 
 “Guarantor” is any present or
future guarantor of the Obligations. 
  

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 “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of
property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent
Obligations. 
 “Initial Audit” is defined in Section 6.2(d). 
 “Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or
insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 
 “Intellectual Property” is: 
 (a) Copyrights, Trademarks and Patents, and Mask Works including amendments, renewals, extensions, and all licenses or other rights to use and all license fees and royalties from the use; 
 (b) Any trade secrets and any intellectual property rights in computer software and computer software products now or later existing, created, acquired
or held; 
 (c) All design rights which may be available to Borrower now or later created, acquired or held; 
 (d) Any claims for damages (past, present or future) for infringement of any of the rights above, with the right, but not the obligation, to sue and
collect damages for use or infringement of the intellectual property rights above; 
 (e) All Proceeds and products of the foregoing,
including all insurance, indemnity or warranty payments. 
 “Interim Payment” means an Equipment Advance Interim Payment (as
defined in Section 2.3(c)(i)). 
 “Inventory” is present and future inventory in which Borrower has any
interest, including merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or
later owned by or in the custody or possession, actual or constructive, of Borrower, including inventory temporarily out of its custody or possession or in transit and including returns on any accounts or other proceeds (including insurance
proceeds) from the sale or disposition of any of the foregoing and any documents of title. 
 “Investment” is any beneficial
ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance or capital contribution to any Person. 
 “Lenders Expenses” are all audit fees and expenses and reasonable costs or expenses (including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan
Documents (including appeals or Insolvency Proceedings). 
  

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 “Letter of Credit” means a letter of credit or similar undertaking issued by Lender
pursuant to Section 2.1.2. 
 “Letter of Credit Application” is defined in Section 2.1.2. 
 “Letter-of-Credit Right” means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded
or is at the time entitled to demand payment or performance. 
 “Letter of Credit Reserve” is defined in Section
2.1.2. 
 “Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 

“Loan Documents” are, collectively, this Agreement, any note, or notes or guaranties executed by Borrower or Guarantor, and any other
present or future agreement between Borrower and/or Guarantor for the benefit of Lenders and Agent in connection with this Agreement, all as amended, extended or restated. 
 “Loan Margin” is: (i) for each Equipment Advance, 250 basis points or two and one-half percent (2.5%), and (ii) for each
Growth Capital Advance, 400 basis points or four percent (4.0%). 
 “Loan Supplement” is defined in Section 2.1.6(b)
and attached as Exhibit C. 
 “Mask Works” are all mask works or similar rights available for the protection of
semiconductor chips, now owned or later acquired. 
 “Obligations” are debts, principal, interest, Final Payment, Interim
Payment, Prepayment Fee, Agent Expenses, Lenders Expenses, and other amounts Borrower owes either of the Lenders and/or Agent now or later, including cash management services, letters of credit and foreign exchange contracts, if any and including
interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Lenders and/or Agent. 
 “Original Stated Cost” is (a) the original cost to Borrower of the item of new Eligible Equipment net of any and all freight, installation, tax, or (b) the fair market value assigned to such item of used Eligible
Equipment by mutual agreement of Borrower and Agent at the time of making of the Equipment Advance. 
 “Other Equipment” is
leasehold improvements, intangible property such as computer software and software licenses, equipment specifically designed or manufactured for Borrower, other intangible property, limited use property and other similar property and soft costs
approved by Agent, including sales tax, freight and installation expenses. Unless otherwise agreed to by Agent, not more than 50% of the proceeds of each Equipment Advance shall be used to finance Other Equipment. 
 “Patents” are patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues,
extensions and continuations in part of the same. 
  

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 “Permitted Distributions” are (a) repurchases of stock from employees, consultants
or directors of Borrower in an aggregate amount not to exceed Two Hundred Thousand Dollars ($200,000) in any fiscal year, provided that no Event of Default has occurred and is continuing or would exist after giving effect to the repurchases;
(b) distributions payable solely in capital stock of Borrower; (c) the conversion by Borrower of any of its convertible securities into other equity securities pursuant to the terms of such convertible securities or otherwise in exchange
therefor; and (d) payments in cash for any fractional shares upon convertible securities or exercise of warrants or similar securities. 
 “Permitted Indebtedness” is: 
 (a) Borrower’s indebtedness to Lenders and Agent under this Agreement or the
Loan Documents; 
 (b) Indebtedness existing on the Closing Date and shown on the Perfection Certificate; 
 (c) Subordinated Debt; 
 (d) Indebtedness to
trade creditors incurred in the ordinary course of business; and 
 (e) Indebtedness secured by Permitted Liens; 
 (f) Other Indebtedness in an aggregate principal amount not to exceed $250,000; 
 (g) Indebtedness of Borrower to any Subsidiary and Indebtedness of any Subsidiary to Borrower that would be permitted under clause (i) of the
definition of Permitted Investments; and 
 (h) Extensions, refinancings, modifications, amendments and restatements of any items of
Permitted Indebtedness (a) through (e) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.

 “Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Closing Date; 
 (b) (i) marketable
direct obligations issued or unconditionally guaranteed by the United States or its agency or any state maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest
rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., (iii) SVB’s certificates of deposit issued maturing no more than 1 year after issue, (iv) any other investments administered
through the Lenders, and (v) any Investments permitted by Borrower’s investment policy, as amended from time to time, provided that such investment policy (and any amendment thereto) has been approved by Agent; 
 (c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
Borrower’s business; 
  

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 (d) Investments consisting of (i) travel advances and employee relocation loans and other employee
loans and advances in the ordinary course of business not to exceed an aggregate amount of $250,000, and (ii) non-cash loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries
pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; 
 (e) Investments accepted in
connection with Transfers permitted under Section 7.1, Investments made or accepted in connection with transactions permitted under Section 7.3, and the Investments of up to $500,000 per year permitted under
Section 7.3(iv); 
 (f) Investments received in connection with the bankruptcy or reorganization of customers or suppliers and in
settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 
 (g)
Investments consisting of notes receivable of, or prepaid royalties and other credit obligations, to customers and suppliers who are not Affiliates, in the ordinary course of business; provide that this Sub-section (g) shall not apply to
Investments in any Subsidiary; 
 (h) Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of
the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed $100,000 in the aggregate in any fiscal year; 
 (i)(i) Investments of Subsidiaries in or to other Subsidiaries or Borrower and (ii) Investments by Borrower in Subsidiaries in an amount not to
exceed $250,000 in any fiscal year; 
 (j) Investments consisting of deposit accounts and investment accounts of Borrower in which Agent has
a Lien perfected through an account control agreement, which Lien is prior to any other Liens (other than Liens securing the customary fees and expenses of the depository or investment intermediary); and 
 (k) Other Investments not otherwise permitted herein and not exceeding $250,000 in aggregate outstanding at any time. 
 “Permitted Liens” are, with respect to Collateral other than Financed Equipment: 
 (a) Liens existing on the Closing Date and shown on the Perfection Certificate or arising under this Agreement or other Loan Documents; 
 (b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for which
Borrower maintains adequate reserves on its Books, if they have no priority over any of Agent’s security interests; 
 (c) Purchase
money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than $500,000 in the aggregate amount outstanding and provided the Equipment Line has been fully utilized by
Borrower, or (ii) existing on equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the equipment; 
  

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 (d) Leases or subleases and non-exclusive licenses or sublicenses granted in the ordinary course of
Borrower’s business, if the leases, subleases, licenses and sublicenses permit granting Agent a security interest; 
 (e) Liens arising
from judgments, decrees or attachments in circumstances not constituting an Event of Default; 
 (f) Liens in favor of other financial
institutions securing the customary fees and expenses of such institutions arising in connection with Borrower’s deposit accounts or investment accounts held at such institutions, provided Agent has a perfected security interest via an account
control agreement in the amounts held in such deposit accounts or investment accounts; 
 (g) Liens of carriers, warehousemen, mechanics,
materialmen, repairmen or other similar Liens arising in the ordinary course of business which secure obligations which are not delinquent or which are being contested in good faith by appropriate proceedings (provided that such appropriate
proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of Collateral or Collateral which in the aggregate is material to Borrower and that Borrower has adequately bonded such Lien or reserves
sufficient to discharge such Lien have been provided on the books of Borrower) ; 
 (h) Liens in favor of customs and revenue authorities
arising as a matter of law to secure payment of custom duties in connection with the importation of goods; 
 (i) Liens on insurance proceeds
in favor of insurance companies granted solely as security for financed premiums; 
 (j) Easements, reservations, restrictions,
rights-of-way, minor defects or irregularities of title and similar charges or encumbrances affecting real property; 
 (k) Deposit or
pledges to secure the performance of bids, tenders, contracts, public or statutory obligations, surety, stay, appeal, indemnity, performance or other similar binds or similar obligations arising in the ordinary course of business; 
 (l) Liens to secure payment for workers’ compensation, employment insurance, old age pensions, social security or other like obligations incurred in
the ordinary course of business; and 
 (m) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens
described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase. 
 And Permitted Liens, with respect to Financed Equipment, are: 
 (a) Liens arising under this Agreement or other Loan Documents; and 
 (b) Liens for taxes, fees, assessments
or other government charges or levies, either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Agent’s security interests. 
  

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 “Person” is any individual, sole proprietorship, partnership, limited liability company,
joint venture, company association, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Prepayment Fee” shall be an amount equal to shall be an amount equal to: (1) if the prepayment date is on or before one year after
the Growth Capital Amortization Date, four percent (4.0%) of the aggregate outstanding principal balances for all of the Growth Capital Advances as of the prepayment date, (2) if the prepayment date is more than one year after the Growth
Capital Amortization Date but on or before two years after the Growth Capital Amortization Date, two percent (2.0%) of the aggregate outstanding principal balances for all of the Growth Capital Advances as of the prepayment date, and
(3) if the prepayment date is more than two years after the Growth Capital Amortization Date, one percent (1.0%) of the aggregate outstanding principal balances for all of the Growth Capital Advances as of the prepayment date;
provided, however, if the Growth Capital Advances are repaid through an Advance under the Revolving Line, the Prepayment Fee shall be fifty percent (50%) of the applicable amount set forth above. 
 “Prime Rate” is SVB’s most recently announced “prime rate,” even if it is not SVB’s lowest rate. 
 “Proceeds” has the meaning described in the Code as in effect from time to time. 
 “Registered Organization” means an organization organized solely under the law of a single state or the United States and as to which
the state or the United States must maintain a public record showing the organization to have been organized. 
 “Responsible
Officer” is each of the Chief Executive Officer, President, Chief Financial Officer and the Controller of Borrower. 
 “Revolving Line” is an Advance or Advances in an aggregate amount of up to Two Million Dollars ($2,000,000). 
 “Revolving Line Default Rate” is defined in Section 2.1.1(f). 
 “Revolving Line Maturity Date”
is the earliest of (a) June 30, 2008, (b) two (2) years from the date of the first Advance. 
 “Schedule” is any attached schedule of exceptions. 
 “Scheduled Payment” means a Scheduled
Equipment Payment and/or a Growth Capital Scheduled Payment. 
 “Senior Manager” is each of the Chief Executive Officer and
the Chief Financial Officer of Borrower. 
 “Subordinated Debt” is debt incurred by Borrower subordinated to Borrower’s
debt to Lenders (pursuant to a subordination agreement entered into between the Agent, the Borrower and the subordinated creditor), on terms acceptable to Agent. 
  

 35 

 “Subsidiary” is any Person, corporation, partnership, limited liability company, joint
venture, or any other business entity of which more than 50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by the Person or one or more Affiliates of the Person. 
 “Supporting Obligation” means a Letter-of-Credit Right, secondary obligation or obligation of a secondary obligor or that supports the
payment or performance of an account, chattel paper, a document, a general intangible, an instrument or investment property. 
 “Trademarks” are trademark and service mark rights, registered or not, applications to register and registrations and like protections, and the entire goodwill of the business of Assignor connected with the trademarks.

 (Signatures are on the following page) 
  

 36 

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

			
	BORROWER:
	
	ACCLARENT, INC.
		
	By:	 	 /s/ William M. Facteau

	Name:	 	William M. Facteau
	Title:	 	President and CEO
	
	AGENT:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Christopher Wayne

	Name:	 	Christopher Wayne
	Title:	 	Senior Relations Manager
	
	LENDERS:
	
	GOLD HILL VENTURE LENDING 03, LP
		
	By:	 	Gold Hill Venture Lending Partners 03, LLC General Partner
		
	By:	 	 /s/ Sean Lynden

	Name:	 	Sean Lynden
		 	Manager
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Christopher Wayne

	Name:	 	Christopher Wayne
	Title:	 	Senior Relations Manager

 Effective as of August 19, 2005 
  

 37 

 EXHIBIT A 
 The Collateral consists of all right, title and interest of Borrower in and to the following: 
 All goods,
equipment, inventory, contract rights or rights to payment of money, license agreements, franchise agreements, general intangibles (including payment intangibles), accounts (including health-care receivables), documents, instruments (including any
promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), commercial tort claims, securities, and all other
investment property, financial assets, whether now owned or hereafter acquired, wherever located; all Supporting Obligations and all of the Borrower’s Books relating to the foregoing and any and all claims, rights and interests in any of the
above and all substitutions for, additions and accessions to and Proceeds thereof. 
 All Letter-Of-Credit Rights (whether or not the letter
of credit is evidenced by a writing); 
 All Financed Equipment; and 
 All Borrower’s Books relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions for,
additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 
 The Collateral does not include: 
 Any copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work, whether published or unpublished, now owned or later acquired; any patents, trademarks, service marks and applications therefor; any trade secret rights, including any rights to
unpatented inventions, or other intellectual property rights, now owned or hereafter acquired. Notwithstanding the foregoing, the Collateral shall include all accounts, license and royalty fees and other revenues, proceeds, or income arising out of
or relating to any of the foregoing intellectual property. To the extent a court of competent jurisdiction holds that a security interest in any intellectual property is necessary to have a security interest in any accounts, license and royalty fees
and other revenues, proceeds, or income arising out of or relating to any of the foregoing intellectual property, then the Collateral shall, effective as of the Closing Date, include the intellectual property, to the extent necessary to permit
perfection of the Lenders’ security interest in such accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the intellectual property. 
  

 38 

 EXHIBIT B 
 Loan Payment/Advance Request Form 
  

			
	Fax
To:                                      
	  	Date:                    

 LOAN PAYMENT: 
  

									
		 		 	                                       
                      (Borrower)
	 	

			
		
	From Account #	 	 To Account #

	(Deposit Account #)	 	 (Loan Account #)

		
	 Principal $
	 	and/or Interest $

 All Borrower’s representation and warranties in the Loan and Security Agreement are true,
correct and complete in all material respects on the date of the telephone transfer request for an advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as
of such date: 
  

			
	Authorized Signature:	 	Phone Number:

 LOAN ADVANCE: 
 Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire. 
  

			
	From Account #	 	 To Account #

	(Loan Account #)	 	 (Deposit Account #)

 Amount of Advance $ 
 All Borrower’s representation and warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the telephone transfer request for an advance, but those representations and
warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date: 
  

			
	Authorized Signature:	 	Phone Number:

 OUTGOING WIRE REQUEST 
 Complete only if all or a portion of funds from the loan advance above are to be wired. 
 Deadline for same day processing is 12:00pm, P.S.T. 
  

			
	Beneficiary Name:	 	Amount of Wire: $
		
	Beneficiary Bank:	 	Account Number:

 City and State: 
 Beneficiary Bank Transit (ABA) #:                              
                 Beneficiary Bank Code (Swift, Sort, Chip, etc.): 
 (For International Wire Only) 
  

 39 

			
	Intermediary Bank:	 	Transit (ABA) #:

 For Further Credit to: 
 Special Instruction: 
 By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and
subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us). 
  

									
	Authorized Signature:	 	  
	 		 	2nd Signature (If Required):	 	  

					
	Print Name/Title:	 		 		 	Print Name/Title:	 	
					
	Telephone #	 	  
	 		 	Telephone #	 	  

  

 40 

 EXHIBIT C 
 FORM OF LOAN AGREEMENT SUPPLEMENT 
 LOAN AGREEMENT SUPPLEMENT No. [  ] 
 LOAN AGREEMENT SUPPLEMENT No. [            ], dated
            , 20     (“Supplement”), to the Loan and Security Agreement dated as of August 19, 2005 (as amended, restated, or otherwise
modified from time to time, the “Loan Agreement) by and among the undersigned                      (“Borrower”), Gold Hill
Venture Lending 03, LP (“Gold Hill”) and Silicon Valley Bank (“SVB” or “Agent”). Capitalized terms used herein but not otherwise defined herein are used with the respective meanings given to such terms in the Loan
Agreement. 
 To secure the prompt payment by Borrower of all amounts from time to time outstanding under the Loan Agreement, and the
performance by Borrower of all the terms contained in the Loan Agreement, Borrower grants Agent and Lenders, a first priority security interest in each item of equipment and other property described in Annex A hereto, which equipment and
other property shall be deemed to be additional Financed Equipment and Collateral. The Loan Agreement is hereby incorporated by reference herein and is hereby ratified, approved and confirmed. Annex A (Equipment Schedule) is attached hereto.

 Borrower hereby certifies that (a) the foregoing information is true and correct; (b) the representations and warranties made by
Borrower in the Loan Agreement are true, correct and complete in all material respects on the date hereof and shall be true, correct and complete in all material respects on such Equipment Advance Funding Date. No Event of Default has occurred and
is continuing under the Loan Agreement. This Supplement may be executed by Borrower and Lenders in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one
and the same instrument. 
 This Supplement is delivered as of this day and year first above written. 
  

									
	SILICON VALLEY BANK, as Agent and a Lender	 		 	ACCLARENT, INC.
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
				
	GOLD HILL VENTURE LENDING 03, LP	 		 		 	
					
	By:	 	Gold Hill Venture Lending Partners 03, LLC General Partner, as a Lender	 		 		 	
					
	By:	 	  
	 		 		 	
	Name:	 		 		 		 	
	Title:	 		 		 		 	

 Annex A - Description of Financed Equipment 
  

 41 

 Annex A to Supplement 
 The Financed Equipment being financed with the Equipment Advance which this Supplement is being executed is listed below. Upon the funding of such
Equipment Advance, this schedule and the property described below automatically shall be deemed to be a part of the Collateral. 
  

									
	 Description of Equipment
	  	Make	  	Model	  	Serial #	  	Invoice #

  

 42 

 EXHIBIT D 
 BORROWING BASE CERTIFICATE 
  
  
 Borrower: Acclarent, Inc. 
 Lender: Silicon Valley Bank 
 Commitment Amount: $2,000,000.00 
  

			
	ACCOUNTS RECEIVABLE	  	
	 1.      Accounts Receivable Book Value as of
                    
	  	$                    
	 2.      Additions (please explain on reverse)
	  	$                    
	 3.      TOTAL ACCOUNTS RECEIVABLE
	  	$                    
		
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	  	
	 4.      Amounts over 90 days due
	  	$                    
	 5.      Balance of 50% over 90 day accounts
	  	$                    
	 6.      Credit balances over 90 days
	  	$                    
	 7.      Concentration Limits
	  	$                    
	 8.      Foreign Accounts
	  	$                    
	 9.      Governmental Accounts
	  	$                    
	 10.    Contra Accounts
	  	$                    
	 11.    Promotion or Demo Accounts
	  	$                    
	 12.    Intercompany/Employee Accounts
	  	$                    
	 13.    Deferred Revenue
 14.    Other (please explain on reverse)
	  	$                     $                    

	 15.    TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	  	$                    
	 16.    Eligible Accounts (#3 minus #15)
	  	$                    
	 17.    LOAN VALUE OF ACCOUNTS (80% of #16)
	  	$                    
		
	BALANCES	  	
	 18.    Maximum Loan Amount
	  	$                    
	 19.    Total Funds Available [Lesser of #17 and #18]
	  	$                    
	 20.    Present balance owing on Line of Credit
	  	$                    
	 21.    Outstanding under Sublimits ( LC, Fx and Cash Mgmt)
	  	$                    
	 22.    RESERVE POSITION (#19 minus #20 and #21])
	  	$                    

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

											
		  		  		  	BANK USE ONLY
		  		  		  	Received by:	  	 
	COMMENTS:	  		  		  	AUTHORIZED SIGNER
		  		  		  	Date:	  	 
	By:	  	  
	  		  	Verified:	  	 
		  	Authorized Signer	  		  		  	AUTHORIZED SIGNER
	Date:	  	  
	  		  	Date:	  	 
		  		  		  	Compliance Status:	  	Yes	  	No

  

 43 

 EXHIBIT E 
 COMPLIANCE CERTIFICATE 
  

	TO:	SILICON VALLEY BANK, as Agent 

	FROM:	ACCLARENT, INC. 

 The undersigned authorized officer of
Acclarent, Inc. certifies that under the terms and conditions of the Loan and Security Agreement among Borrower, Lenders, and Agent (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below and (ii) all representations and warranties in the Agreement are
true and correct in all material respects on this date. Attached are the required documents supporting the certification. The Officer certifies that these are based on books and records maintained in accordance with Generally Accepted Accounting
Principles (GAAP) consistently applied from one period to the next except as explained in an accompanying letter or footnotes. In addition, the undersigned certifies that (1) Borrower and each Subsidiary have timely filed all required tax
returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP and (ii) no liens have been levied or claims made against Borrower or any of its Subsidiaries
relating to unpaid employee payroll or benefits which Borrower has not previously notified in writing to Agent. The Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with
any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. 
  

 44 

 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

							
	 Reporting Covenant
	  	 Required
	  	Complies
	Monthly financial statements with CC	  	Monthly within 30 days	  	Yes	  	No
				
	Annual (Company prepared)	  	FYE within 180 days for fiscal year 2004	  	Yes	  	No
				
	Annual (CPA Audited)	  	FYE within 120 days for fiscal years 2005 and thereafter	  	Yes	  	No
				
	Annual projections	  	FYE within 30 days of Board approval	  	Yes	  	No
				
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes	  	No
				
	BBC A/R & A/P Agings	  	Monthly within 20 days	  	Yes	  	No

  

									
	Comments Regarding Exceptions: See	  		  	BANK USE ONLY
	Attached.	  		  	Received by:	  	 
		  		  		  	AUTHORIZED SIGNER
	Sincerely,	  		  	Date:	  	 
				
	  
	  		  	Verified:	  	 
	Signature	  		  		  	AUTHORIZED SIGNER
				
	  
	  		  	Date:	  	 
	Title	  		  		  	
					
	  
	  		  	Compliance Status:	  	Yes	  	No
	Date	  		  		  		  	

  

 45Loan and Security Agreement - Silicon Valley Bank

 Exhibit 10.13 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (this
“Agreement”), dated as of March 28, 2008 (the “Effective Date”), between SILICON VALLEY BANK, a California corporation (“Bank”), and ACCLARENT, INC., a Delaware corporation
(“Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. 
 RECITALS

 I. Borrower currently is a party to that certain other Loan and Security Agreement, dated August 19, 2005, by and between, on the
one hand, Gold Hill Venture Lending 03, LP (“Gold Hill”) and Bank as the “Lenders” thereunder (collectively, the “2005 Loan Agreement Lenders”) and Silicon Valley Bank as the “Agent” thereunder (the “2005
Loan Agreement Agent”), and, on the other hand, Borrower (as amended, restated, supplemented, or otherwise modified from time to time, the “2005 Loan Agreement”). Pursuant to the 2005 Loan Agreement: (A) Bank solely in its
capacity as a 2005 Loan Agreement Lender has a commitment to make certain revolving advances (or ancillary credit extensions pursuant to letter of credit, foreign exchange forward contracts, and cash management services subfacilities under such
commitment) to Borrower (collectively, the “Existing Revolver Credit Extensions”) in accordance with the terms and conditions of the 2005 Loan Agreement; (B) both 2005 Loan Agreement Lenders had commitments to make certain
non-revolving “Growth Capital Advances” to Borrower in accordance with the terms and conditions of the 2005 Loan Agreement, which commitments previously expired without any such Growth Capital Advances ever having been requested or funded;
and (C) both 2005 Loan Agreement Lenders had commitments to make certain term loan “Equipment Advances” to Borrower (collectively, the “Existing Equipment Loans”) in accordance with the terms and conditions of the 2005 Loan
Agreement, which commitments were fully funded and with respect to which the aggregate principal balance of all outstanding Existing Equipment Loans as of the date hereof is approximately $386,223.80. Pursuant to the 2005 Loan Agreement, all
“Obligations” (as such term is defined therein) relating solely to the Existing Equipment Loans (collectively, the “Existing Equipment Loans Obligations”) are secured by security interests granted by Borrower to the 2005 Loan
Agreement Agent and the 2005 Loan Agreement Lenders in solely the “Financed Equipment” (as such term is defined in the 2005 Loan Agreement) financed by the Existing Equipment Loans and the proceeds thereof (collectively, the “Financed
Equipment Collateral”), and all “Obligations” (as such term is defined therein) other than the Existing Equipment Loans Obligations (collectively, the “Remaining Existing Obligations”) are secured by security interests
granted by Borrower to the 2005 Loan Agreement Agent and the 2005 Loan Agreement Lenders in the Collateral. Each of the 2005 Loan Agreement Lenders and the 2005 Loan Agreement Agent are parties to that certain Intercreditor Agreement, dated as of
August 19, 2005 (as amended, restated, supplemented, or otherwise modified from time to time, the “GH-SVB Intercreditor Agreement”) among them. 
 II. Concurrently herewith, each of the 2005 Loan Agreement and the GH-SVB Intercreditor Agreement are being amended in order to effect and reflect that: (A) the initial Advances made under Section 2.1.1
hereof, the initial Letters of Credit issued under Section 2.1.2 hereof, the initial FX Forward Contracts entered into under Section 2.1.3 hereof, and the initial Cash Management Services utilized under Section 2.1.4 hereof, shall
repay and replace in full (or shall be deemed to do so) the respective Existing Revolver Credit Extensions then outstanding under the 2005 Loan Agreement and, from and after such repayment and replacement, the commitment of Bank solely in its
capacity as a 2005 Loan Agreement Lender to make Existing Revolver Credit Extensions pursuant to the 2005 Loan Agreement shall be irrevocably terminated (collectively, the “Existing Revolver Credit Extensions Replacement”); (B) from
and after giving effect to the Existing Revolver Credit Extensions Replacement, no Remaining Existing Obligations shall be outstanding under the 2005 Loan Agreement and all commitments of the 2005 Loan Agreement Lenders and the 2005 Loan Agreement
Agent to hereafter extend credit to Borrower under the 2005 Loan Agreement have expired or been irrevocably terminated (it being acknowledged that the Existing Equipment Loans remain outstanding in accordance with the terms of the 2005 Loan
Agreement); (C) accordingly, each of (i) Gold Hill in its capacity as a 2005 Loan Agreement Lender, and (ii) the 2005 Loan Agreement Agent solely to the extent it holds security interests for the benefit of Gold Hill as a 2005 Loan
Agreement Lender, release (without recourse, representation, or warranty) their respective security interests in all Collateral (other than the Financed Equipment Collateral); (D) subject to clause (E) below, the security interests of each
of (i) Bank in its capacity as a 2005 Loan Agreement Lender, and (ii) the 2005 Loan Agreement Agent solely to the extent it holds security interests for the benefit of Bank as a 2005 Loan Agreement Lender, in all Collateral (other than the
Financed Equipment Collateral) are transferred to Bank hereunder and shall secure all Obligations hereunder instead of the “Obligations” under the 20005 Loan Agreement; and (E) the 2005 Loan Agreement 

  

 1 

 
Lenders and the 2005 Loan Agreement Agent shall retain their respective continuing security interests in the Financed Equipment Collateral as security for
solely the Existing Equipment Loans Obligations. 
 AGREEMENT 
 The parties agree as follows: 
  

	 	1	ACCOUNTING AND OTHER TERMS 

 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in
Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 
  

	 	2	LOAN AND TERMS OF PAYMENT 

 2.1
Promise to Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions, and all accrued and unpaid interest thereon, as and when due in accordance with this Agreement. 
 2.1.1 Revolving Advances. 
 (a)
Availability. Subject to the terms and conditions of this Agreement and subject to deduction of Reserves, Bank shall make Advances not exceeding the Availability Amount. Amounts borrowed hereunder may be repaid and, prior to the Revolving
Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 
 (b) Streamline Period. As used
herein, the term “Streamline Period” means, as of any date of determination, any month for which both of the following conditions are satisfied: (i) the Adjusted Quick Ratio exceeds 1.25 : 1.00, and no Event of Default
has occurred and is continuing, at all times during such month; and (ii) the Adjusted Quick Ratio exceeded 1.25 : 1.00 at all times during the 30-consecutive-day period immediately preceding such month; provided, however, that the initial
Streamline Period commences on the Effective Date. 
 (c) Termination of Revolving Line; Repayment. Bank’s obligation under this
Agreement to provide Advances and other Credit Extensions in respect of the Revolving Line shall terminate on the Revolving Line Maturity Date. The principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to
the Revolving Line shall be immediately due and payable on the Revolving Line Maturity Date. 
 2.1.2 Letters of Credit Sublimit.

 (a) As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for Borrower’s account, as requested by Borrower.
The aggregate face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), plus any Letter of Credit Reserves, may not exceed $3,000,000, subject to the Overall Ancillary Sublimit set forth in
Section 2.1.5. Such aggregate amounts utilized hereunder shall at all times reduce the amount otherwise available for Advances under the Revolving Line. If, on the Revolving Line Maturity Date, there are any outstanding Letters of Credit, then
on such date Borrower shall provide to Bank cash collateral in an amount equal to 105% of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good
faith business judgment), to secure all of the Obligations relating to said Letters of Credit. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of
Bank’s standard Application and Letter of Credit Agreement (the “Letter of Credit Application”). Borrower agrees to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. Borrower
further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guarantied by Bank and opened for Borrower’s account or by Bank’s interpretations of any Letter of Credit issued by Bank for
Borrower’s account, and Borrower understands and agrees that Bank 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, except as may result from Bank’s gross negligence or willful misconduct. 
  

 2 

 (b) The obligation of Borrower to immediately reimburse Bank for drawings made under Letters of Credit
shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application. Without limiting the generality of the foregoing, any
payment by Bank under or in connection with a Letter of Credit shall constitute an Advance hereunder on the date such payment is made. 
 (c)
Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for payment is made under any such Letter of Credit, Bank shall treat such demand as an Advance to Borrower of the equivalent of the amount thereof
(plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in Dollars at the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such
Foreign Currency. 
 (d) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a
Foreign Currency, Bank shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit
Reserve may be adjusted by Bank from time to time to account for fluctuations in the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of
Credit remains outstanding and shall be subject to the Overall Ancillary Sublimit set forth in Section 2.1.5. 
 2.1.3 Foreign
Exchange Sublimit. As part of the Revolving Line, Borrower may enter into foreign exchange contracts with Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX Forward
Contract”) on a specified date (the “Settlement Date”). FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent
(10%) of each outstanding FX Forward Contract in a maximum aggregate amount equal to $3,000,000 for all such FX Forward Contracts (the “FX Reserve”). Subject to the Overall Ancillary Sublimit set forth in
Section 2.1.5, the aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the amount of the FX Reserve. 
 2.1.4 Cash Management Services Sublimit. Subject to the Overall Ancillary Sublimit set forth in Section 2.1.5, Borrower may use up to $3,000,000 (the “Cash Management Services Sublimit”) of the Revolving
Line for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in Bank’s various cash management services agreements (collectively, the
“Cash Management Services”). Any amounts Bank pays on behalf of Borrower or any amounts that are not paid by Borrower for any Cash Management Services will be treated as Advances under the Revolving Line and will accrue interest at
the interest rate applicable to Advances. 
 2.1.5 Overall Ancillary Sublimit. Anything herein to the contrary notwithstanding, the
sum of the aggregate face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), plus any Letter of Credit Reserve, plus the FX Reserve, plus the aggregate amount of Obligations in respect of Cash Management
Services, shall not exceed $3,000,000 (the “Overall Ancillary Sublimit”). 
 2.1.6 Term Loans. 
 (a) Availability. 
 (i) On the
Effective Date, Bank shall make a single term loan in the original principal amount of $3,500,000 (“Term Loan A”) pursuant to this Section 2.1.6 and subject to the satisfaction of the terms and conditions of this Agreement.

 (ii) Bank shall make one or more additional term loans (individually and collectively, “Term Loan B”) available to Borrower, in
the aggregate original principal amount of up to $4,000,000, during the period commencing on the Effective Date and ending on September 30, 2008 (the “Term Loan B Availability Period”), pursuant to this Section 2.1.6 and subject
to the satisfaction of the terms and conditions of this Agreement. Each Term Loan B must be in an original principal amount equal to at least $1,000,000, and Bank has no obligation to make no more than 4 separate Term Loans B. 
  

 3 

 (iii) As used herein, the term “Term Loan” means, individually and collectively, Term Loan A
and Term Loan B. No portion of any Term Loan may be re-borrowed after being repaid. 
 (b) Repayment. 
 (i) With respect to Term Loan A, the outstanding principal balance of such Term Loan shall be repaid by Borrower to Bank in thirty-six (36) equal
monthly payments of principal, commencing on the first day of the seventh (7th) calendar month following the month in which Term Loan A is made and continuing on the first day of each subsequent month until the earliest of the following dates
(the “Term Loan A Maturity Date”): (A) the date Term Loan A has been paid in full in cash; or (B) the first day of the forty-second (42nd) month after the Effective Date (such date in this clause (B), the “Scheduled
Term Loan A Maturity Date”, and also a “Scheduled Term Loan Maturity Date”); (C) the date that all Obligations have become due and payable; or (D) the date this Agreement terminates by its terms or is terminated by either
party in accordance with its terms. On the Term Loan A Maturity Date, the sum of (w) entire unpaid principal balance of Term Loan A, plus (x) all accrued and unpaid interest thereon, plus (y) a deferred funding fee in respect of Term
Loan A in the amount of 2% of the original principal amount of Term Loan A (which fee is fully earned on the date of funding of Term Loan A and non-refundable), plus (z) the Applicable Term Loan Prepayment Fee (if any) with respect to such Term
Loan, shall be due and payable. Interest on the Term Loan A shall be payable monthly as provided in Section 2.3 of this Agreement. 
 (ii) With respect to each Term Loan B, the outstanding principal balance of such Term Loan B shall be repaid by Borrower to Bank in thirty-six (36) equal monthly payments of principal, commencing on the first day of the fourth
(4th) calendar month following the month in which such Term Loan B is made and continuing on the first day of each subsequent month until the earliest of the following dates (with respect to such Term Loan B, the “Term Loan B Maturity
Date”): (A) the date such Term Loan B has been paid in full in cash; or (B) the first day of the thirty-ninth (39th) month after the date of funding of such Term Loan (such date in this clause (B), with respect to such Term Loan
B, the “Scheduled Term Loan B Maturity Date”, and also a “Scheduled Term Loan Maturity Date”); (C) the date that all Obligations have become due and payable; or (D) the date this Agreement terminates by its terms or is
terminated by either party in accordance with its terms. On the Term Loan B Maturity Date for such Term Loan, the sum of (w) entire unpaid principal balance of such Term Loan B, plus (x) all accrued and unpaid interest thereon, plus
(y) a deferred funding fee in respect of such Term Loan B in the amount of 2% of the original principal amount of such Term Loan B (which fee is fully earned on the date of funding of such Term Loan B and non-refundable), plus (z) the
Applicable Term Loan Prepayment Fee (if any) with respect to such Term Loan, shall be due and payable. Interest on the Term Loan B shall be payable monthly as provided in Section 2.3 of this Agreement. 
 (c) Prepayment. Borrower shall have the option to prepay all, but not less than all, of the outstanding Term Loans in cash, provided Borrower
(a) provides written notice to Bank of its election to prepay the Term Loans at least five (5) days prior to such prepayment, and (b) pays, on the date of the prepayment: (i) all accrued and unpaid interest with respect to the
Term Loan through the date the prepayment is made; (ii) all unpaid principal with respect to the Term Loan; (iii) all deferred funding fees in respect of the Term Loans (as set forth in clause (y) of Sections 2.1.6(b)(i) and
2.1.6(b)(ii) above); (iv) the Applicable Term Loan Prepayment Fee; and (v) all other sums, if any, that shall have become due and payable hereunder with respect to this Agreement. As used herein, the term “Applicable Term Loan
Prepayment Fee” means, with respect to each Term Loan and as of the date of such prepayment (or termination pursuant to Section 4.2): (x) three percent (3.00%) of the outstanding principal amount of such Term Loan, if such
prepayment (or termination pursuant to Section 4.2) occurs on or before the first anniversary of the date of funding of such Term Loan; (y) two percent (2.00%) of the outstanding principal amount of such Term Loan, if such prepayment
(or termination pursuant to Section 4.2) occurs after the first anniversary, but on or before the second anniversary of, the date of funding of such Term Loan; and (z) one percent (1.00%) of the outstanding principal amount of such
Term Loan, if such prepayment (or termination pursuant to Section 4.2) occurs after the second anniversary of the date of funding of such Term Loan but prior to the Scheduled Term Loan Maturity Date applicable to such Term Loan (as set forth in
clause (B) of Section 2.1.6(b)(i) or Section 2.1.6(b)(ii) above, as the case may be). 
 2.2 Overadvances. If at any
time or for any reason the total of all outstanding Advances and all other monetary Obligations exceeds the Availability Amount (an “Overadvance”), Borrower shall immediately pay the amount of the excess in cash to Bank, without
notice or demand. Without limiting Borrower’s obligation to repay to Bank the amount of any Overadvance, Borrower agrees to pay Bank interest on the outstanding amount of any 

  

 4 

 
Overadvance, on demand, at the Default Rate, provided that the Default Rate shall not be charged on any Overadvance unless it has been outstanding for more
than five days. 
 2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest Rate. 
 (i) Advances. Subject to Section 2.3(b), the amounts outstanding under the Revolving Line shall accrue interest at a per annum rate equal to the sum of the Loan Margin plus the Prime Rate, which interest shall be payable
monthly. As used herein, the term “Loan Margin” means, as of any date of determination: (A) 1.25 percentage points (or, from and after the date (if ever) that Borrower receives not less than $75,000,000 of net cash
proceeds from the initial public offering and sale of Borrower’s equity securities in accordance with applicable securities laws, 0.00 percentage points), if and so long as a Streamline Period is in effect; and (B) 2.00
percentage point, if and so long as a Streamline Period is not in effect. Changes in the interest rate based on whether a Streamline Period is in effect shall be effective on the date the Bank receives the Borrower’s reporting required under
this Agreement permitting Bank’s calculation of the applicable Availability Amount, provided that any increase in interest rate increase may be put into effect by Bank effective as of the date on which any such reporting was due, even if the
delivery of such reporting is delayed. 
 (ii) Term Loan. With respect to each Term Loan: subject to
Section 2.3(b), the principal amount outstanding under such Term Loan shall accrue interest at the fixed per annum rate equal to the greater of (A) 2.50 percentage points above the Designated Index Rate, or (B) 8.50% per annum,
which interest shall be payable monthly. As used herein, the term “Designated Index Rate” shall mean, with respect to any Term Loan, the fixed per annum rate equal to the Prime Rate that is in effect on the date of funding of such
Term Loan. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall
bear interest at a rate per annum which is five percentage points above the rate which is otherwise applicable to the Obligations (the “Default Rate”). Payment or acceptance of the increased interest rate provided in this
Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (c) Adjustment to Interest Rate. Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective on the
effective date of any change to the Prime Rate and to the extent of any such change. 
 (d) 360-Day Year. Interest shall be computed
on the basis of a 360-day year for the actual number of days elapsed. 
 (e) Debit of Accounts. Bank may debit any of Borrower’s
deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 
 (f) [reserved] 
 (g) Payment;
Interest Computation; Float Charge. Interest is payable monthly on the first calendar day of each month. In computing interest on the Obligations, all payments received after 12:00 p.m. Pacific time on any day shall be deemed received on the
next Business Day. In addition, so long as no Streamline Period is in effect, Bank shall be entitled to charge Borrower a “float” charge in an amount equal to three (3) Business Days interest, at the interest rate applicable to the
Advances, on all payments received by Bank on Advances under the Revolving Line. Said float charge is not included in interest for purposes of computing Minimum Monthly Interest (if any) under Section 2.3(f) of this Agreement. The float charge
for each month shall be payable on the last day of the month. Bank shall not, however, be required to credit Borrower’s account for the amount of any item of payment which is unsatisfactory to Bank in its good faith business judgment, and Bank
may charge Borrower’s Designated Deposit Account for the amount of any item of payment which is returned to Bank unpaid. 
  

 5 

 2.4 Fees. Borrower shall pay to Bank: 
 (a) Commitment Fee. A fully earned, non-refundable commitment fee of $45,000, of which (i) the first $22,500 is payable on the
Effective Date, and (ii) the remaining $22,500 is payable on the first anniversary of the Effective Date. 
 (b) Letter of
Credit Fee. Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit, upon the issuance or renewal of any such Letter of Credit by Bank. 
 (c) [intentionally omitted] 
 (d)
[intentionally omitted] 
 (e) Collateral Monitoring Fee. A monthly collateral monitoring fee of $1,000.00, payable in arrears on the
last day of each month (prorated for any partial month at the beginning and upon termination of this Agreement) that is not within a Streamline Period; provided, however, that no such collateral monitoring fee shall be payable in respect of any
complete month during which at all times no Advances are outstanding; and 
 (f) Bank Expenses. All Bank Expenses (including
reasonable attorneys’ fees and expenses, and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 
  

	 	3	CONDITIONS OF LOANS 

 3.1
Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Borrower shall consent to or have delivered, in form and substance satisfactory to Bank,
such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) Borrower shall have delivered duly executed original signatures to the Loan Documents to which it is a party, including this Agreement, and one or more Control Agreements relative to all Collateral Accounts maintained with any affiliate
of Bank; 
 (b) Borrower, Gold Hill, and Bank shall have entered into the amendments to the 2005 Loan Agreement and the GH-SVB Intercreditor
Agreement referenced in Recital II above and such amendments shall be in full force and effect; 
 (c) Borrower shall have delivered duly
executed original signatures to one or more Control Agreements relative to all Collateral Accounts maintained with any institution (other than Bank or any affiliate of Bank), except to the extent expressly not required under Section 6.8(b);

 (d) Borrower shall have delivered its Operating Documents and a good standing certificate of Borrower certified by the Secretary of State
of the State of Delaware as of a date prior to the Effective Date acceptable to Bank in its good faith business judgment; 
 (e) Borrower
shall have delivered duly executed original signatures to the completed Borrowing Resolutions for Borrower; 
 (f) Bank shall have received
certified copies, dated as of a recent date, of financing statement searches, as Bank shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either
constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 
 (g) Borrower
shall have delivered the Perfection Certificate(s) executed by Borrower; 
 (h) [reserved] 
 (i) [reserved] 
  

 6 

 (j) Borrower shall have delivered evidence satisfactory to Bank that the insurance policies required by
Section 6.7 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Bank; and 
 (k) Borrower shall have paid the fees and Bank Expenses then due as specified in Section 2.4 hereof. 
 3.2 Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension, including the initial Credit Extension,
is subject to the following: 
 (a) except as otherwise provided in Section 3.4, timely receipt of an executed Transaction Report;

 (b) the representations and warranties in Section 5 shall be true in all material respects on the date of the Transaction Report and
on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided,
further that those representations and warranties expressly referring to a specific date shall be true in all material respects as of such date, and no Default or Event of Default shall have occurred and be continuing or result from the Credit
Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in Section 5 remain true in all material respects; provided, however, that such materiality qualifier shall not
be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true in
all material respects as of such date; and 
 (c) in Bank’s sole discretion, there has not been a Material Adverse Change. 

3.3 Covenant to Deliver. 
 Borrower
agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition to any Credit Extension. Borrower expressly agrees that the extension of a Credit Extension prior to the receipt by Bank of any such item shall
not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and any such extension in the absence of a required item shall be in Bank’s sole discretion. 
 3.4 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this
Agreement, to obtain an Advance (other than Advances under Sections 2.1.2, 2.1.3, or 2.1.4), Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of
the Advance. Together with such notification, Borrower must promptly deliver to Bank by electronic mail or facsimile a completed Transaction Report executed by a Responsible Officer or his or her designee. Bank shall credit Advances to the
Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. Bank may
rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. 
  

	 	4	CREATION OF SECURITY 

 4.1 Grant of
Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, continuing security interests in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter
acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interests granted herein are and shall at all times continue to be first priority perfected security interests in the
Collateral (subject in lien priority only to those Permitted Liens that are expressly entitled to such priority over the security interests of Bank by operation of law or by written subordination agreement duly executed and delivered by Bank in
favor of the holders of such Permitted Liens). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof. Such notification to Bank shall constitute an
additional grant, hereunder, of a continuing security interest in the commercial tort claim and all proceeds thereof to Bank, and Borrower shall execute and deliver all such documents and take all such actions as Bank in its good faith business
judgment may request in connection therewith. 
  

 7 

 Notwithstanding anything to the contrary in this Agreement, the term “Collateral” shall not
include (i) the Financed Equipment Collateral, unless and until the Existing Equipment Loans Obligations under the 2005 Loan Agreement are paid in full (and concurrently with such payment in full of the Existing Equipment Loans Obligations, the
Financed Equipment Collateral shall automatically and thereafter constitute Collateral); (ii) any of the Borrower’s “Excluded IP” (as defined in Exhibit A hereto) (but “Collateral” does include “Included
Proceeds of Excluded IP” (as defined in Exhibit A hereto); (iii) the capital stock of a controlled foreign corporation (as defined in the Internal Revenue Code of 1986, as amended), in excess of 65% of the voting power of all classes
of capital stock of such controlled foreign corporations entitled to vote, and (iv) Equipment subject to a lien described in clause (c) of the definition of Permitted Liens in which the granting of a security interest in such Equipment is
prohibited by or would constitute a default under any agreement or document governing such Equipment (but only to the extent such prohibition is enforceable under applicable law), provided that upon the termination or lapsing of any such
prohibition, such Equipment shall automatically be part of the Collateral. 
 If this Agreement is terminated, Bank’s Lien in the
Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Bank’s obligation to make Credit Extensions has
terminated, Bank shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower. 
 4.2 Release of Bank’s Security Interests. Upon payment in full in cash, and otherwise full performance, of the Obligations (other than inchoate indemnity obligations) and at such time as Bank’s
obligation to make Credit Extensions has irrevocably terminated, Bank’s liens and security interests in the Collateral shall automatically terminate and all rights therein shall revert to Borrower, and Bank shall, at Borrower’s sole cost
and expense, deliver such documents and make such filings as Borrower shall reasonably request to evidence such termination. 
 4.3
Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a
notice that any disposition of the Collateral in violation of this Agreement, by either Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code. 
  

	 	5	REPRESENTATIONS AND WARRANTIES 

 Borrower
represents and warrants as follows: 
 5.1 Due Organization and Authorization. Borrower and each of its Subsidiaries are duly existing
and in good standing in their respective jurisdictions of formation and are qualified and licensed to do business and are in good standing in any jurisdiction in which the conduct of their business or their ownership of property requires that they
be qualified except where the failure to do so could not reasonably be expected to result in a Material Adverse Change. In connection with this Agreement, Borrower has delivered to Bank the completed Representations and Warranties Certificate, dated
as of March 28, 2008 (the “Perfection Certificate”). Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof;
(b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or
accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its
chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational type, or any organizational number assigned by its jurisdiction, in each case,
except as expressly identified in the Perfection Certificate; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete (it being understood and agreed
that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions of this Agreement). If Borrower is not now a Registered Organization but
later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with Borrower’s organizational identification number. 
 The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents,
(ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any
Governmental 

  

 8 

 
Authority by which Borrower or any its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing,
registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect), or (v) constitute an event of default under
any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to result in a Material Adverse Change. 
 5.2 Collateral. 
 (a) Borrower has
good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit account other than the deposit
accounts with Bank and deposit accounts described in the Perfection Certificate delivered to Bank in connection herewith. 
 (b) The
Collateral is not in the possession of any third party bailee (such as a warehouse), except for (i) Inventory in the possession of third-party processors or subcontractors in the ordinary course of business, (ii) Inventory at customer
locations in the ordinary course of business, and (iii) Inventory stored with other third parties in the ordinary course of business, in an aggregate amount not to exceed $500,000 at any time. Except as hereafter disclosed to Bank in writing by
Borrower, none of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate, or as set forth above. In the event that Borrower, after the date hereof, intends to store or otherwise deliver
any portion of the Collateral to a bailee (other than as set forth above), then Borrower will first receive the written consent of Bank and such bailee must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank.

 (c) With respect to any leased premises of Borrower, Borrower shall, promptly upon Bank’s request therefor, use commercially
reasonable efforts to deliver to Bank a landlord agreement (in form and substance satisfactory to Bank) duly executed by the lessor of such leased premises. In the event that Bank requests such a landlord agreement and Borrower uses such efforts but
does not succeed in delivering such a landlord agreement, Bank may (in its good faith business judgment) maintain a Reserve with respect to such leased premises. 
 (d) All Inventory is in all material respects of good and marketable quality, free from material defects. 
 (e) Borrower is the sole owner of its Intellectual Property, except for licenses otherwise allowed under Section 7.1 and for such Intellectual Property as is licensed by Borrower. Each patent owned by Borrower is valid and enforceable
and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and to Borrower’s knowledge, no claim has been made in writing that any part of the Intellectual Property violates, in any material respect,
the rights of any third party. 
 (f) Except as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any
material license or other agreement with respect to which Borrower is the licensee (i) that prohibits or otherwise restricts, in a manner enforceable under applicable law, Borrower from granting a security interest in Borrower’s interest
in such license or agreement or any other property, or (ii) for which a default under or termination of could interfere with Bank’s right to sell any Collateral. 
 (g) The second proviso set forth in Exhibit A states that, if and to the extent that a perfected security interest in the underlying Excluded IP is
required under applicable law (including without limitation pursuant to applicable judicial authority) to have a perfected security interest in the Included Proceeds of Excluded IP, then in such circumstance the Collateral shall include the
underlying Excluded IP only to the extent necessary under applicable law to permit perfection of Bank’s security interest in such Included Proceeds of Excluded IP. 
 5.3 Accounts Receivable. 
 (a) For each Account with respect to which Advances are requested, on the
date each Advance is requested and made, such Account shall be an Eligible Account, set forth in Section 13 below. 
 (b) All statements
made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Accounts are and shall be true and correct in all material respects and all such invoices, instruments and other documents, and all of
Borrower’s Books are genuine and in all material respects 

  

 9 

 
what they purport to be. All sales and other transactions underlying or giving rise to each Account shall comply in all material respects with all applicable
laws and governmental rules and regulations. Borrower has and will have no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are shown as Eligible Accounts in any Transaction Report. To the
Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Accounts are and will be genuine, and all such documents, instruments and agreements are and will be legally enforceable in
accordance with their terms. 
 5.4 Litigation. Except as disclosed to the Bank in writing, there are no actions or proceedings
pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than $200,000 or more in the aggregate. 
 5.5 No Material Deviation in Financial Statements. All consolidated financial statements for Borrower and any of its Subsidiaries delivered to
Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations, except that that interim financial statements may be subject to normal year-end audit adjustments
(which are not expected to be material in the aggregate) and need not contain footnote disclosures required by GAAP. There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent
financial statements submitted to Bank. 
 5.6 Solvency. The fair salable value of Borrower’s assets (including goodwill minus
disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 
 5.7 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all
material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a
“holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse
Change. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or
transporting any hazardous substance other than legally. Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Government Authorities
that are necessary to continue their respective businesses as currently conducted, except to the extent that non-compliance could not reasonably be expected to result in a Material Adverse Change. 
 5.8 Subsidiaries; Investments. Borrower does not have any Subsidiaries, and does not own any stock, partnership interest or other equity
securities in any other Person, except for Permitted Investments. 
 5.9 Tax Returns and Payments; Pension Contributions. Borrower has
timely filed all required material tax returns and reports, and Borrower has timely paid all material foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any contested
taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Bank in writing of the commencement of, and any material
development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted
Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present
pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event
with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 5.10 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital, and to fund its general business
requirements and not for personal, family, household or agricultural purposes. 
  

 10 

 5.11 Full Disclosure. No written representation, warranty or other statement of Borrower in any
certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Bank, contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based
upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
  

	 	6	AFFIRMATIVE COVENANTS 

 Borrower shall do all
of the following: 
 6.1 Government Compliance. Maintain its and all its Subsidiaries’ legal existence and good standing in their
respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to cause a Material Adverse Change. Borrower shall comply, and have each Subsidiary comply, with
all laws, ordinances and regulations to which it is subject, noncompliance with which could reasonably be expected to cause a Material Adverse Change. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Borrower shall provide Bank with the following
written reports, and such other written reports with respect to Borrower (including budgets, sales projections, operating plans and other financial documentation), as Bank shall from time to time specify in its good faith business judgment:

  

	 	(i)	at the time of each Credit Extension, and in addition not less frequently than weekly, a Transaction Report; provided, however, that such Transaction Report shall be required on a
monthly basis within fifteen (15) days after the end of each month (rather than on a weekly basis), so long as either (A) both (1) a Streamline Period is then in effect, and (2) no Event of Default has occurred and is
continuing, or (B) both (1) a Streamline Period is then not in effect, and (2) no Advances are outstanding at all times within the past 30 days (and, in the case of this clause (B), as an additional condition precedent to
Bank’s obligation to make the next Advance, Borrower shall deliver to Bank a current Transaction Report and written notice requesting such next Advance not less than 30 days (nor more than a number of days acceptable to Bank in its good faith
business judgment) prior to the Funding Date of such new Advance); 

  

	 	(ii)	within fifteen (15) days after the end of each month: 

  

	 	(A)	monthly accounts receivable agings, aged by invoice date; 

  

	 	(B)	monthly accounts payable agings, aged by invoice date, and outstanding or held check registers, if any; 

  

	 	(C)	monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports, and general ledger; and 

  

	 	(D)	monthly Deferred Revenue reports; 

  

	 	(iii)	as soon as available, and in any event within thirty (30) days after the end of each month, monthly unaudited financial statements; 

  

	 	(iv)	within thirty (30) days after the end of each month a monthly Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was
in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank shall reasonably request,
including, without limitation, a statement that at the end of such month there were no held checks; 

  

	 	(v)	[intentionally omitted] 

  

 11 

	 	(vi)	within thirty (30) days prior to the end of each fiscal year of Borrower, (A) annual operating budgets (including income statements, balance sheets and cash flow
statements, by month) for the upcoming fiscal year of Borrower, and (B) annual financial projections for the following fiscal year (on a monthly basis) as approved by Borrower’s board of directors, together with any related business
forecasts used in the preparation of such annual financial projections; and 

  

	 	(vii)	as soon as available, and in any event within 180 days following the end of Borrower’s fiscal year, annual financial statements certified by, and with an unqualified opinion
of, independent certified public accountants acceptable to Bank. 

 (b) At all times that Borrower is subject to the reporting
requirements under the Securities Exchange Act of 1934, as amended, within five (5) days after filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission or a link thereto on Borrower’s or another
website on the Internet. 
 6.3 Accounts Receivable. 
 (a) Schedules and Documents Relating to Accounts. Borrower shall deliver to Bank transaction reports and schedules of collections, as provided in Section 6.2, on Bank’s standard forms; provided,
however, that Borrower’s failure to execute and deliver the same shall not affect or limit Bank’s Lien and other rights in all of Borrower’s Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect
or limit Bank’s Lien and other rights therein. If requested by Bank, Borrower shall furnish Bank with copies (or, at Bank’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions,
delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts. In addition, Borrower shall deliver to Bank, on its request, the originals of all instruments, chattel
paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary endorsements, and copies of all credit memos. 
 (b) Disputes. Borrower shall promptly notify Bank of all disputes or claims relating to Accounts, in excess of $100,000 individually or in the
aggregate at any one time, on the Transaction Reports and Borrowing Base reports. Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as
(i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, in arm’s-length transactions, and reports the same to Bank in the regular reports provided to Bank; (ii) no Default or Event
of Default has occurred and is continuing; and (iii) after taking into account all such discounts, settlements and forgiveness, the total outstanding Advances will not exceed the lesser of the Maximum Revolver Amount or the Borrowing Base.

 (c) Collection of Accounts. Borrower shall have the right to collect all Accounts, unless and until a Default or an Event of
Default has occurred and is continuing. Whether or not an Event of Default has occurred and is continuing, Borrower shall hold all payments on, and proceeds of, Accounts in trust for Bank, and Borrower shall immediately deliver all such payments and
proceeds to Bank in their original form, duly endorsed, which payments and proceeds: (i) if the Streamline Period is then not in effect, shall be applied to the Obligations pursuant to the terms of Section 9.4 hereof; or (ii) if the
Streamline Period is then in effect, shall be deposited by Bank into Borrower’s Deposit Account with Bank. Bank may, in its good faith business judgment, require that all proceeds of Accounts be deposited by Borrower into a lockbox account, or
such other “blocked account” as Bank may specify, pursuant to a blocked account agreement in such form as Bank may specify in its good faith business judgment. 
 (d) Returns. Provided no Event of Default has occurred and is continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return,
(ii) issue a credit memorandum to the Account Debtor in the appropriate amount, and (iii) in the event that the amount of such credit memorandum, individually or in the aggregate, exceeds $100,000, provide a copy of each such credit
memorandum to Bank. In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for Bank, and immediately notify Bank of the return of the
Inventory. 
  

 12 

 (e) Verification. Bank may, from time to time, verify directly with the respective Account Debtors
the validity, amount and other matters relating to the Accounts, either in the name of Borrower or Bank or such other name as Bank may choose. 
 (f) No Liability. Bank shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act,
omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible
for any of Borrower’s obligations under any contract or agreement giving rise to an Account. Nothing herein shall, however, relieve Bank from liability for its own gross negligence or willful misconduct. 
 6.4 Remittance of Proceeds. Except as otherwise provided in Section 6.3(c), deliver, in kind, all proceeds arising from the disposition of
any Collateral to Bank in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, which, shall be dealt with as provided in Section 6.3(c); provided that, if no Default or Event of
Default has occurred and is continuing, Borrower shall not be obligated to remit to Bank the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase
price of $100,000 or less (for all such transactions in any fiscal year). Except with respect to funds maintained by Borrower in accounts at Bank during a Streamline Period, Borrower agrees that it will not commingle proceeds of Collateral with any
of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and in an express trust for Bank. Nothing in this Section limits the restrictions on disposition of Collateral set forth
elsewhere in this Agreement. 
 6.5 Taxes; Pensions. Timely file all required tax returns and reports and timely pay all material
foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except for deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, and pay all amounts necessary to fund all present
pension, profit sharing and deferred compensation plans in accordance with their terms. 
 6.6 Access to Collateral; Books and
Records. At reasonable times, on at least three (3) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have the right to inspect the Collateral and
the right to audit and copy Borrower’s Books. The foregoing inspections and audits (collectively, “field examinations”) shall be at Borrower’s expense, and the charge therefor shall be $750 per person per day (or such higher
amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses; provided, however, that so long as no Event of Default has occurred and is continuing, Borrower need not pay for more than two
(2) such field examinations in any 12-consecutive-months-period (commencing on or after the Effective Date); it being understood that field examinations taking place at separate physical locations during substantially the same overall
examination period shall constitute but a single field examination for purposes of the foregoing proviso. In the event Borrower and Bank schedule an audit more than ten (10) days in advance, and Borrower cancels or seeks to reschedules the
audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies), Borrower shall pay Bank a fee of $1,000 plus any out-of-pocket expenses incurred by Bank to compensate Bank for the
anticipated costs and expenses of the cancellation or rescheduling. 
 6.7 Insurance. Keep its business and the Collateral insured for
risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank. All property policies shall
have a lender’s loss payable endorsement showing Bank as lender loss payee and waive subrogation against Bank, and all liability policies shall show, or have endorsements showing, Bank as an additional insured. All policies (or the lender loss
payable and additional insured endorsements) shall provide that the insurer must give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s request, Borrower shall deliver certified
copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default has
occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to $500,000 with respect to any loss, but not exceeding $1,000,000 in the aggregate, toward the replacement or repair of destroyed or
damaged property; provided that any such property purchased to replace or repaire Collateral (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a
first priority security interest, and (b) after the occurrence and during 

  

 13 

 
the continuance of an Event of Default, all proceeds payable under such casualty policy with respect to Collateral shall, at the option of Bank, be payable
to Bank on account of the Obligations. If Borrower fails to obtain insurance as required under this Section 6.7 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment
or obtain such insurance policies required in this Section 6.7, and take any action under the policies Bank deems prudent. 
 6.8
Operating Accounts. 
 (a) Maintain all of its and its Subsidiaries’ primary depository and operating accounts and securities
accounts with Bank and Bank’s affiliates. 
 (b) Provide Bank five (5) days prior written notice before establishing any Collateral
Account at or with any bank or financial institution other than Bank or Bank’s Affiliates. In addition, for each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other
than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance
with the terms hereunder. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and
identified to Bank by Borrower as such. 
 6.9 Financial Covenants. 
 (a) Minimum Tangible Net Worth. Borrower shall maintain at all times, to be tested as of the last day of each month (unless otherwise expressly
noted below), on a consolidated basis with respect to Borrower and its Subsidiaries, a Tangible Net Worth of at least the sum of the following (the “Required TNW Amount”): (a) the TNW Base Amount (as defined below), plus
(b) 35% of all consideration received after the Effective Date for issuances of the Borrower’s equity securities and the principal amount of Subordinated Debt of the Borrower, plus (c) 35% of the Borrower’s positive net income
(determined in accordance with GAAP) in the fiscal quarter ending March 31, 2008 and each fiscal quarter thereafter. 
 As used herein, the term
“TNW Base Amount” means, as of any date of determination: (i) $16,000,000 for the tested month of March 2008; (b) $12,000,000 for each of the tested months of April 2008, May 2008, and June 2008, and
(c) $8,000,000 for any tested month thereafter. 
 Increases in the Required TNW Amount based on consideration received for equity
securities and Subordinated Debt of the Borrower shall be effective as of the end of the month in which such consideration is received, and shall continue effective thereafter. Increases in the Required TNW Amount based on Net Income shall be
effective on the last day of the fiscal quarter in which such Net Income is realized, and shall continue effective thereafter. In no event (except for step-downs in the TNW Base Amount as expressly set forth in the definition thereof) shall the
Required TNW Amount be decreased from one fiscal period to another subsequent fiscal period. 
 (b) Minimum Quarterly Revenue.
Borrower shall achieve, measured as of the end of each fiscal quarter specified below, revenues for such fiscal quarter of at least the following: 
  

			
	With respect to the fiscal quarter ending on:	  	Borrower’s revenues for such fiscal quarter shall not be less than the following minimum required amount (“Required Quarterly Revenues”):
		
	March 31, 2008	  	$6,192,200
		
	June 30, 2008	  	$7,944,392
		
	September 30, 2008	  	$8,727,142
		
	December 31, 2008	  	$11,250,914

 On or before December 31, 2008, the Minimum Quarterly Revenues financial covenant shall be reset, by mutual
written agreement of Bank and Borrower in their respective discretion, for the fiscal quarters ending March 31, 2009 

  

 14 

 
and each fiscal quarter thereafter based on Borrower’s projected financial statements for such periods, such projected financial statements to have been
approved by the Borrower’s Board of Directors and accepted jointly by Borrower and by Bank in their respective discretion, which projected financial statements Borrower hereby covenants and agrees to deliver to Bank no later than
November 30, 2008. 
 6.10 Protection and Registration of Intellectual Property Rights. Borrower shall: (a) protect, defend
and maintain the validity and enforceability of its Intellectual Property; (b) promptly advise Bank in writing of material infringements of its Intellectual Property; and (c) not allow any Intellectual Property material to Borrower’s
business to be abandoned, forfeited or dedicated to the public without Bank’s written consent, unless in each case, Borrower determines in its good faith business judgment that it is in its best interest to do otherwise. Borrower hereby
represents and warrants that, as of the Effective Date, Borrower does not own any Registered Copyrights from the sale, lease, licensing, assignment, or other disposition of which arise Accounts with respect to which Advances are requested. Borrower
will NOT register with the United States Copyright Office (or apply for such registration of) any of Borrower’s maskworks, computer software, or other copyrights from the sale, lease, licensing, assignment, or other disposition of which arise
Accounts with respect to which Advances are requested, unless Borrower: (x) provides Bank with at least fifteen (15) days prior written notice of its intent to register such copyrights or mask works together with a copy of the application
it intends to file with the United States Copyright Office (excluding exhibits thereto); (y) executes a security agreement or such other documents as Bank may reasonably request to maintain the perfection and priority of Bank’s security
interest in the Included Proceeds of Excluded IP relating to such copyrights or mask works intended to be registered with the United States Copyright Office; and (z) records such security agreement with the United States Copyright Office
contemporaneously with filing the copyright or mask work application(s) with the United States Copyright Office. Borrower shall promptly provide to Bank a copy of the application(s) actually filed with the United States Copyright Office together
with evidence of the recording of the security agreement necessary for Bank to maintain the perfection and priority of its security interest in the Included Proceeds of Excluded IP relating to such copyrights or mask works intended to be registered
with the United States Copyright Office. 
 6.11 Litigation Cooperation. From the date hereof and continuing through the termination
of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any
third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 
 6.12
[intentionally omitted] 
 6.13 [intentionally omitted] 
 6.14 Further Assurances. Borrower shall execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of
this Agreement. 
  

	 	7	NEGATIVE COVENANTS 

 Borrower shall not do
any of the following without Bank’s prior written consent: 
 7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose
of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for (a) Transfers of Inventory in the ordinary course of business; (b) Transfers of worn-out
or obsolete Equipment; and (c) Transfers consisting of Permitted Liens and Permitted Investments; (d) Transfers consisting of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of
business; and (e) Transfers consisting of licenses, for the use of the property of Borrower or its Subsidiaries in the ordinary course of business, that could not result in a legal transfer of title of the licensed property but that may be
exclusive in respects other than territory and 

  

 15 

 
that may be exclusive as to territory only as to discreet geographical areas outside of the United States, if such licenses are approved in writing by the
Board of Directors of Borrower in its good faith business judgment (and a true, correct, and complete copy of such written approval, certified by the Secretary of Borrower, has been provided to Bank together with identification in reasonable detail
of the specific licenses so approved). 
 7.2 Changes in Business, Management, Ownership, or Business Locations. 
 (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary,
as applicable, or reasonably related thereto; 
 (b) liquidate or dissolve; or 
 (c) cause, permit or suffer any Change in Control (other than by the sale of Borrower’s equity securities in a public offering or to venture capital
investors so long as Borrower identifies to Bank the venture capital investors prior to the closing of the transaction); or 
 (d) without at
least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain assets and property of Borrower with an aggregate value of less
than $100,000), (2) change its jurisdiction of organization, (3) change its organizational type, (4) change its legal name, or (5) change its organizational number (if any) assigned by its jurisdiction of organization.

 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other
Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except (i) a Subsidiary of Borrower may merge or consolidate into another Subsidiary of Borrower,
(ii) as permitted under Section 7.7, (iii) Borrower or a Subsidiary may acquire the assets of a Subsidiary that has dissolved, (iv) provided no Default or Event of Default has occurred and is continuing or would result from the
transaction, Borrower or a Subsidiary may acquire a Person or the assets of a Person in an all stock transaction or in a transaction where the cash portion of the consideration does not exceed $500,000 so long as the acquisition will not require
Borrower to invest cash of more than $500,000 (in addition to any cash component of the acquisition price) in such Person in any year, or (v) Borrower may acquire some or all of the Intellectual Property of another Person with the approval of
Borrower’s Board of Directors, for an aggregate purchase price for all such acquisitions in any fiscal year not to exceed $500,000. 
 7.4 Indebtedness. 
 (a) Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary of Borrower to do
so, other than Permitted Indebtedness. 
 (b) Without limiting the generality of Section 7.4(a), all present and future indebtedness of
Borrower to its officers, directors, and equityholders (“Inside Debt”) shall, at all times, be subordinated to the Obligations pursuant to a subordination agreement on Bank’s standard form. Borrower represents and warrants that there
is no Inside Debt presently outstanding. Prior to incurring any Inside Debt in the future, Borrower shall cause the person to whom such Inside Debt will be owed to execute and deliver to Bank a subordination agreement on Bank’s standard form.

 7.5 Encumbrance. Create, incur, or allow any Lien on any of the Collateral, or assign or convey any right to receive income,
including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interests of Bank therein (subject in lien priority only to those
Permitted Liens that are expressly entitled to such priority over the security interests of Bank by operation of law or by written subordination agreement duly executed and delivered by Bank in favor of the holders of such Permitted Liens), or enter
into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging,
granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Lien” herein.

  

 16 

 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the
terms of Section 6.8.(b) hereof. 
 7.7 Investments; Distributions. (a) Directly or indirectly make any Investment other
than Permitted Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, provided that (i) Borrower may convert any of its
convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in capital stock; (iii) Borrower may repurchase the stock of former
employees, directors or consultants pursuant to stock repurchase agreements so long as no Default or Event of Default has occurred at the time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchase
does not exceed in the aggregate of 200,000 in any fiscal year; and (iv) payments in cash for any fractional shares upon conversion of convertible securities or exercise of warrants or similar securities. 
 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower,
except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person.

 7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination,
intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or the amount of any permitted payments
thereunder or adversely affect the subordination thereof to Obligations owed to Bank. 
 7.10 Compliance. Become an “investment
company” or a company controlled by an “investment company”, under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of
the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to
occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to cause a Material Adverse Change, or permit any of its Subsidiaries to do so; withdraw or permit
any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be
expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
  

	 	8	EVENTS OF DEFAULT 

 Any one of the following
shall constitute an event of default (an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrower
fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable. During the cure period, the
failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period); 
 8.2
Covenant Default. 
 (a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.3, 6.4, 6.6, 6.8, or 6.9, or violates any
covenant in Section 7; or 
 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant
or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the
default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten
(10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, 

  

 17 

 
and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during
such cure period). Grace periods provided under this section shall not apply, among other things, to financial covenants or any other covenants set forth in subsection (a) above; 
 8.3 Material Adverse Change. An event occurs or condition exists that Bank believes in its good faith business judgment is a Material Adverse
Change, and after meeting with and discussing the circumstances with Borrower, Bank continues to believe in its good faith business judgment that a Material Adverse Change has occurred and so advises Borrower in writing (provided that no such
meeting shall be required if Borrower is not available to meet with Bank or there are exigent circumstances such that it is unreasonable to wait for any such meeting); 
 8.4 Attachment. (a) Any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver; (b) the service of process seeking to attach, by
trustee or similar process, any funds of Borrower or of any entity under control of Borrower (including a Subsidiary) on deposit with Bank or any Bank Affiliate; (c) Borrower is enjoined, restrained, or prevented by court order from conducting
any part of its business; or (d) a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency, and the same under clauses (a) through (d) hereof are not, within ten (10) days after
the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; 
 8.5 Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent;
(b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while of any of the conditions
described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is a default
in any agreement to which Borrower or any Guarantor is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of
$200,000; provided, however, that the Event of Default under this Section 8.6 caused by the occurrence of a default under such other agreement shall be cured or waived for purposes of this Agreement upon Bank receiving written notice from the
party asserting such default of such cure or waiver of the default under such other agreement, if at the time of such cure or waiver under such other agreement (a) Bank has not declared an Event of Default under this Agreement and/or exercised
any rights with respect thereto; (b) any such cure or waiver does not result in an Event of Default under any other provision of this Agreement or any Loan Document; and (c) in connection with any such cure or waiver under such other
agreement, the terms of any agreement with such third party are not modified or amended in any manner which could in the good faith judgment of Bank be materially less advantageous to Borrower or any Guarantor; 
 8.7 Judgments. One or more judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of $200,000 or
more (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower and shall remain unsatisfied, unvacated, or unstayed for a period of ten (10) days
after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order, or decree); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or
to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 
 8.9 Subordinated Debt. A default or breach occurs under any agreement between Borrower and any creditor of Borrower that signed a subordination, intercreditor, or other similar agreement with Bank, or any
creditor that has signed such an agreement with Bank breaches any terms of such agreement; or 
 8.10 Guaranty. (a) Any guaranty
of any Obligations terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 8.3,
8.4, 8.5, 8.7, or 8.8. occurs with respect to any Guarantor, or (d) the death, liquidation, winding up, or termination of existence of any Guarantor; or (e) (i) a material impairment in the perfection or priority of Bank’s Lien
in the collateral provided by Guarantor or in the value of such collateral or (ii) a material adverse change in the general affairs, management, results of operation, 

  

 18 

 
condition (financial or otherwise) or the prospect of repayment of the Obligations occurs with respect to any Guarantor. 
  

	 	9	BANK’S RIGHTS AND REMEDIES 

 9.1
Rights and Remedies. If an Event of Default has occurred and is continuing, Bank may, without notice or demand, do any one or more or all of the following: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 
 (b) stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Bank;

 (c) demand that Borrower (i) deposit cash with Bank in an amount equal to the aggregate amount of any Letters of Credit remaining
undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable
over the remaining term of any Letters of Credit; 
 (d) terminate any FX Forward Contracts; 
 (e) demand payment of, and collect any Accounts and General Intangibles comprising Collateral, settle or adjust disputes and claims directly with Account
Debtors for amounts, on terms, and in any order that Bank considers advisable, notify any Account Debtor or other Person owing Borrower money of Bank’s security interest in such funds, verify the amount of the same and collect the same;

 (f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the
Collateral. Borrower shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase,
contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s
rights or remedies; 
 (g) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by
Bank owing to or for the credit or the account of Borrower; 
 (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale,
advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s premises, vehicles, hoists, lifts, cranes, and other Equipment and all other property,
including Borrower’s labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit;

 (i) place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or
other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 
 (j) demand
and receive possession of Borrower’s Books; and 
 (k) exercise all rights and remedies available to Bank under the Loan Documents or at
law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2
Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other
forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading 

  

 19 

 
for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for
amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the
Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful
attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been
satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable
until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 
 9.3
Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.7 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan
Document, Bank may obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral. Bank will make
reasonable efforts to provide Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s
waiver of any Event of Default. 
 9.4 Application of Payments and Proceeds. Borrower shall have no right to specify the order or the
accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified elsewhere in this Agreement. If an Event
of Default has occurred and is continuing, Bank may apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or
otherwise, to the Obligations in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower by credit to the Designated Deposit Account or to other Persons legally entitled thereto; Borrower shall remain liable
to Bank for any deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any
time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 
 9.5 Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral
in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or
(d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
 9.6 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or
diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Bank and then is only effective for the specific instance and purpose for which it is
given. Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election,
and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.7 Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal
of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 
  

	 	10	NOTICES 

 All notices, consents, requests,
approvals, demands, or other communication (collectively, “Communication”), other than Advance requests made pursuant to Section 3.4, by any party to this Agreement or any other Loan Document must be in writing and be delivered
or sent by facsimile at the addresses or facsimile numbers listed below. Bank or Borrower may change its notice address by giving the other party written notice 

  

 20 

 
thereof. Each such Communication shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three
(3) Business Days after deposit in the U.S. mail, registered or certified mail, return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by facsimile transmission (with such facsimile promptly confirmed by
delivery of a copy by personal delivery or United States mail as otherwise provided in this Section 10); (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered,
if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address or facsimile number indicated below. Advance requests made pursuant to Section 3.4 must be in writing and may be in the form of
electronic mail, delivered to Bank by Borrower at the e-mail address of Bank provided below and shall be deemed to have been validly served, given, or delivered when sent (with such electronic mail promptly confirmed by delivery of a copy by
personal delivery or United States mail as otherwise provided in this Section 10). Bank or Borrower may change its address, facsimile number, or electronic mail address by giving the other party written notice thereof in accordance with the
terms of this Section 10. 
  

			
	 If to Borrower:
	  	ACCLARENT, INC.
		  	1525-B O’Brien Drive
		  	Menlo Park, CA 94025
		  	Attn: Corporate Controller
		  	Fax: 650.687.5889
		  	Email: obrouse@acclarent.com
		
	 If to Bank:
	  	SILICON VALLEY BANK
		  	3979 Freedom Circle, Suite 600
		  	Santa Clara, CA 95054
		  	Attn: CFD Relationship Manager
		  	Fax: 408.654.5517
		  	Email: mpatel@svb.com

  

	 	11	CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE. 

 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County,
California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it
may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the
summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10
of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED
UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS
WAIVER WITH ITS COUNSEL. 
 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if
the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually
selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of
federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in 

  

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Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to
and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering
temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the
course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for
such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be
conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial proceedings in
the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon
pursuant to the California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private
judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
  

	 	12	GENERAL PROVISIONS 

 12.1 Maturity Date;
Early Termination of this Agreement. 
 (a) With respect to each Term Loan B, on the applicable Term Loan B Maturity Date or on any
earlier effective date of termination, Borrower shall pay and perform in full such Term Loan B and all other Obligations specifically relating thereto, whether evidenced by installment notes or otherwise, and whether or not all or any part of such
Obligations are otherwise then due and payable. On the Term Loan A Maturity Date or on any earlier effective date of termination, Borrower shall pay and perform in full the Term Loan A and all other Obligations specifically relating thereto, whether
evidenced by installment notes or otherwise, and whether or not all or any part of such Obligations are otherwise then due and payable. On the Revolving Line Maturity Date or on any earlier effective date of termination, Borrower shall pay and
perform in full all Obligations (excluding outstanding Term Loans and other Obligations specifically relating thereto), whether evidenced by installment notes or otherwise, and whether or not all or any part of such Obligations are otherwise then
due and payable. On the latest to occur of any Term Loan B Maturity Date, the Term Loan A Maturity Date, and the Revolving Line Maturity Date, or on any earlier effective date of termination, Borrower shall pay and perform in full all other
Obligations, whether evidenced by installment notes or otherwise, and whether or not all or any part of such other Obligations are otherwise then due and payable. 
 (b) This Agreement may be terminated prior to the latest to occur of any Term Loan B Maturity Date, the Term Loan A Maturity Date, and the Revolving Line Maturity Date: by Borrower, effective three (3) Business
Days after written notice of termination is given to Bank; or by Bank in the exercise of its remedies (hereunder or under applicable law) after the occurrence and during the continuation of an Event of Default. Notwithstanding any termination of
this Agreement, Bank’s liens and security interests in the Collateral shall continue until Borrower pays in full in cash, and otherwise performs in full, its Obligations (other than inchoate indemnity obligations). If such termination is at
Borrower’s election or at Bank’s election due to the occurrence and continuation of an Event of Default, Borrower shall pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee in an amount equal
to one percent (1.00%) of the Maximum Revolver Amount, with respect to the Revolving Line, if such termination occurs prior to the Revolving Line Maturity Date (and, if such termination occurs on or after the Revolving Line Maturity Date, then
zero); provided that no such termination fee with respect to the Revolving Line shall be charged if the Revolving Line hereunder is replaced with a new revolving facility from another division of Silicon Valley Bank; plus (ii) all Applicable
Term Loan Prepayment Fees in respect of the Term Loans, if and to the extent such termination occurs prior to the applicable Scheduled Term Loan Maturity Date (and, if such termination occurs on or after the applicable Scheduled Term Loan Maturity
Date with respect to a Term Loan, then zero with respect to such Term Loan). 
  

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 12.2 Successors and Assigns. This Agreement binds and is for the benefit of the successors and
permitted assigns of each party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank has the right, without the
consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents. 
 12.3 Indemnification. Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees, agents, attorneys, or any other
Person affiliated with or representing Bank harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with the transactions contemplated by the Loan
Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or arising from transactions between Bank and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly
caused by Bank’s gross negligence or willful misconduct. 
 12.4 Time of Essence. Time is of the essence for the performance of
all Obligations in this Agreement. 
 12.5 Severability of Provisions. Each provision of this Agreement is severable from every other
provision in determining the enforceability of any provision. 
 12.6 Amendments in Writing; Integration. All amendments to this
Agreement must be in writing and signed by both Bank and Borrower. This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings,
representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
 12.7 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, constitute one Agreement. 
 12.8 Survival. All covenants,
representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms,
are to survive the termination of this Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to all claims and causes of action with respect to
which indemnity is given to Bank shall have run. 
 12.9 Confidentiality. In handling any confidential information, Bank shall
exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest
in the Credit Extensions (provided, however, Bank shall use commercially reasonable efforts to obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation,
subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; and (e) as Bank considers appropriate in exercising remedies under this Agreement and the other Loan
Documents. Confidential information does not include information that either: (i) is in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (ii) is
disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 
 12.10
Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Bank arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other
costs and expenses incurred, in addition to any other relief to which it may be entitled. 
  

	 	13	DEFINITIONS 

 13.1 Definitions. As
used in this Agreement, the following terms have the following meanings: 
 “Account” is any “account” as defined
in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 
  

 23 

 “Account Debtor” is any “account debtor” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Adjusted Quick Ratio” means, as of any date of determination, the ratio
of: (A) the amount of Borrower’s Quick Assets; divided by (B) the result of Borrower’s Current Liabilities less Borrower’s Deferred Revenue and less Borrower’s stock option derivatives. 
 “Advance” or “Advances” means an advance (or advances) under the Revolving Line. 
 “Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled
by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 
 “Agreement” is defined in the preamble hereof. 
 “Availability Amount” is the result of (a) the lesser of (i) the Maximum Revolver Amount or (ii) the Borrowing Base, minus (b) the sum of the amount of all outstanding Letters of
Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserve, minus (c) the FX Reserve, minus (d) any amounts used for Cash Management Services, and minus (e) the outstanding
principal balance of any Advances and (without duplication) any Reserves. 
 “Bank” is defined in the preamble hereof.

 “Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and
expenses) for preparing, negotiating, amending, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to
Borrower. 
 “Borrower” is defined in the preamble hereof. 
 “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding
Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Base” means, as of any date of determination, 80% (the “Advance Rate”) of the net amount of Borrower’s
Eligible Accounts (as determined by Bank from Borrower’s most recent Transaction Report); provided, however, that Bank may decrease the Advance Rate in its good faith business judgment based on events, conditions, contingencies, or risks which,
as determined by Bank, may adversely affect Collateral. 
 “Borrowing Resolutions” are, with respect to any Person, those
resolutions adopted by such Person’s Board of Directors and delivered by such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its
secretary on behalf of such Person certifying that (a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) sets forth the resolutions then in full
force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the names of the Persons authorized to execute the Loan Documents on behalf of such Person,
together with a sample of the true signatures of such Persons, and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to Bank a further certificate canceling or amending such prior
certificate. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed. 
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency
or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) certificates of deposit issued 

  

 24 

 
maturing no more than one (1) year after issue; and (d) money market funds at least ninety-five percent (95%) of the assets of which
constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Cash Management
Services” is defined in Section 2.1.4. 
 “Change in Control” means any event, transaction, or occurrence as a
result of which (a) any “person” (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as an amended (the “Exchange Act”)), other than a trustee or other fiduciary holding
securities under an employee benefit plan of Borrower, is or becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of Borrower, representing thirty-five percent
(35%) or more of the combined voting power of Borrower’s then outstanding securities; or (b) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the Board of Directors
of Borrower (together with any new directors whose election by the Board of Directors of Borrower was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority of the directors then in office. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California;
provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9
shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform
Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes on the provisions thereof
relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 
 “Commodity
Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Communication” is defined in Section 10. 
 “Compliance Certificate” is that certain
certificate in the form attached hereto as Exhibit B. 
 “Contingent Obligation” is, for any Person, any direct
or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold
with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent
Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 
 “Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account
or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such Deposit Account,
Securities Account, or Commodity Account. 
 “Credit Extension” is any Advance, Letter of Credit, FX Forward Contract,
amount utilized for Cash Management Services, Term Loan, or any other extension of credit by Bank for Borrower’s benefit. 
  

 25 

 “Current Liabilities” are all Obligations and liabilities of Borrower to Bank, plus,
without duplication, the aggregate amount of Borrower’s Total Liabilities that mature within one (1) year. 
 “Default” means any event which with notice or passage of time or both, would constitute an Event of Default. 
 “Default Rate” is defined in Section 2.3(b). 
 “Deferred Revenue” is all amounts received or
invoiced in advance of performance under contracts and not yet recognized as revenue. 
 “Deposit Account” is any
“deposit account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Designated Deposit
Account” is Borrower’s deposit account, account number 3300481669, maintained with Bank. 
 “Dollars,”
“dollars” and “$” each mean lawful money of the United States. 
 “Effective Date” has the
meaning ascribed to such term in the preamble of this Agreement. 
 “Eligible Accounts” are Accounts which arise in the
ordinary course of Borrower’s business that are subject to Bank’s first-priority perfected security interests therein and meet all Borrower’s representations and warranties in Section 5.3. Bank reserves the right at any time and
from time to time after the Effective Date, to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment. Unless Bank agrees otherwise in writing, Eligible Accounts shall exclude: 
 (a) Accounts for which the Account Debtor has not been invoiced; 
 (b) Accounts that the Account Debtor has not paid within ninety (90) days of invoice date; 
 (c)
Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have not been paid within ninety (90) days of invoice date; 
 (d) Credit balances over ninety (90) days from invoice date; 
 (e) Accounts owing from an Account
Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five (25%) of all Accounts, for the amounts that exceed that percentage, unless Bank approves in writing; 
 (f) Accounts owing from an Account Debtor which does not have its principal place of business in the United States; 
 (g) Accounts owing from an Account Debtor which is a federal, state or local government entity or any department, agency, or instrumentality thereof
except for Accounts of the United States if Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 
 (h) Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor,
supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by Borrower in the
ordinary course of its business; provided, however, that Bank reserves the right to exclude any or all customer deposits under this clause (h); 
 (i) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, “bill and hold”, or other terms if
Account Debtor’s payment may be conditional; 
  

 26 

 (j) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent;

 (k) Accounts in which the Account Debtor disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the
Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 
 (l) Accounts owing from an Account
Debtor with respect to which Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue); 
 (m) Accounts for
which Bank in its good faith business judgment determines collection to be doubtful; 
 (n) Accounts that arise from the sale, lease,
licensing, assignment, or other disposition of any Registered Copyright, unless Borrower is in full compliance with Section 6.10 with respect to such Account and such Registered Copyright; and 
 (o) other Accounts Bank deems ineligible in the exercise of its good faith business judgment. 
 “Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 
 “Event of
Default” is defined in Section 8. 
 “Foreign Currency” means lawful money of a country other than the United
States. 
 “Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a
Business Day. 
 “FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal
business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 
 “FX Forward Contract” is defined in Section 2.1.3. 
 “FX Reserve” is defined in Section 2.1.3. 
 “GAAP” is generally
accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or
in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to
such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any
patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties,
contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property,
rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to
payment of any kind. 
 “Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit,
certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 
  

 27 

 “Governmental Authority” is any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any
securities exchange and any self-regulatory organization. 
 “Guarantor” is any present or future guarantor of any of the
Obligations. 
 “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services,
such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations.

 “Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other
bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 
 “Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may
hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of
Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person. 
 “Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an application, guarantee,
indemnity or similar agreement on the part of Bank as set forth in Section 2.1.2. 
 “Letter of Credit Application” is
defined in Section 2.1.2(a). 
 “Letter of Credit Reserve” has the meaning set forth in Section 2.1.2(d).

 “Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind,
whether voluntarily incurred or arising by operation of law or otherwise against any property. 
 “Loan Documents” are,
collectively, this Agreement, the Perfection Certificate, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower or any Guarantor and/or for the benefit of Bank in
connection with this Agreement, all as amended, restated, or otherwise modified. 
 “Loan Margin” is defined in
Section 2.3(a)(i). 
 “Material Adverse Change” is: (a) a material impairment in the perfection or priority of
Bank’s Lien in the Collateral or in the value of such Collateral; or (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower or any Guarantor; or (c) a material impairment of the
prospect of repayment of any portion of the Obligations; or (d) Bank determines, based upon information available to it and in its reasonable judgment, that there is a reasonable likelihood that Borrower shall fail to comply with one or more of
the financial covenants in Section 6 during the next succeeding financial reporting period. 
 “Maximum Revolver
Amount” is $5,000,000. 
 “Obligations” are Borrower’s obligation to pay when due any debts, principal,
interest, Bank Expenses and other amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement
obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest, and other amounts, accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of
Borrower assigned to Bank, and the performance of Borrower’s duties under the Loan Documents. 

  

 28 

 
Notwithstanding the foregoing, in no event shall any of Borrower’s obligations under any warrants issued to Bank by Borrower or any other equity related
agreements be deemed to be “Obligations” under this Agreement. 
 “Operating Documents” are, for any Person, such
Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in
current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the
foregoing with all current amendments or modifications thereto. 
 “Overall Ancillary Sublimit” has the meaning set forth in
Section 2.1.5. 
 “Perfection Certificate” is defined in Section 5.1. 
 “Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents; 
 (b) Indebtedness existing on the
Effective Date and shown on the Perfection Certificate (including without limitation the Existing Equipment Loans Obligations); 
 (c)
unsecured Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 
 (e) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 
 (f) Indebtedness, in an aggregate principal amount not to exceed $500,000, secured by Permitted Liens described in clause (c) of the definition of
“Permitted Liens”; 
 (g) inter-company Indebtedness that constitutes an Investment allowed under clause (f) of the definition
of Permitted Investments; 
 (h) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness
(a) through (g) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
 (i) other unsecured Indebtedness in an aggregate principal amount not to exceed $250,000 outstanding at any time. 
 “Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; 
 (b) Cash Equivalents; 
 (c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
Borrower; 
 (d) Investments consisting of deposit accounts in which Bank has a perfected security interest; 
 (e) Investments accepted in connection with Transfers permitted by Section 7.1; 
 (f)(i) Investments of Subsidiaries in or to other Subsidiaries or Borrower and (ii) Investments by Borrower in Subsidiaries not to exceed
$250,000 total at any time outstanding for all Subsidiaries; 
  

 29 

 (g) Investments consisting of (i) travel advances and employee relocation loans and other employee
loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements
approved by Borrower’s Board of Directors; 
 (h) Investments (including debt obligations) received in connection with the bankruptcy or
reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; and 
 (i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates,
in the ordinary course of business; provided that this paragraph shall not apply to Investments of Borrower in any Subsidiary. 
 (j) joint
ventures or strategic alliances consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed $250,000 in the aggregate in
any fiscal year; and 
 (k) other Investments not exceeding $250,000 in the aggregate in any fiscal year. 
 “Permitted Liens” are: 
 (a)
Liens: (i) existing on the Effective Date and shown on the Perfection Certificate (including without limitation Liens in favor of the 2005 Loan Agreement Agent and the 2005 Loan Agreement Lenders on solely the Financed Equipment Collateral as
security for solely the Existing Equipment Loans Obligations); or (ii) arising under this Agreement and the other Loan Documents; 
 (b)
inchoate Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such
Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder; 
 (c)
with respect to any Equipment other than the Financed Equipment Collateral, purchase money Liens (including the interests of lessors under capitalized leases): (i) on such Equipment acquired or held by Borrower incurred for financing the
acquisition of such Equipment securing no more than $500,000 in the aggregate amount outstanding; or (ii) existing on such Equipment when acquired; in each case, only if such Lien is confined to such Equipment and related improvements
and the proceeds thereof; 
 (d) inchoate Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising
in the ordinary course of business so long as such Liens attach only to Inventory, and which have no priority over Bank’s security interest, are not delinquent or remain payable without penalty or which are being contested in good faith and by
appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 
 (e)
inchoate Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA), provided, they have
no priority over any of Bank’s Liens; 
 (f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by
Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 
 (g) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of
property (other than real property or intellectual property) granted in the ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest; 
 (h) licenses of intellectual property, otherwise permitted under Section 7.1, granted to third parties in the ordinary course of business;

  

 30 

 (i) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an
Event of Default under Sections 8.4 and 8.7; 
 (j) Liens in favor of customs and revenue authorities arising as a matter of law on goods to
secure payment of custom duties in connection with the importation of such goods; and 
 (k) Liens on insurance proceeds securing the payment
of financed premiums. 
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint
venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 
 “Quick Assets” means, as of any date of determination, the sum of Borrower’s unrestricted cash (and cash equivalents) maintained at
Bank plus the aggregate net amount of Borrower’s Eligible Accounts. 
 “Registered Copyright” means, individually and
collectively, any and all maskworks, computer software, or other copyrights of Borrower that are registered (or the subject of an application for registration) with the United States Copyright Office. 
 “Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Requirement of Law” is as to any Person, the organizational or governing documents of such Person,
and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any
of its property is subject. 
 “Reserves” means, as of any date of determination, such amounts as Bank may from time to time
establish and revise in its good faith business judgment, reducing the amount of Advances and other financial accommodations which would otherwise be available to Borrower (a) to reflect events, conditions, contingencies or risks which, as
determined by Bank in its good faith business judgment, do or may adversely affect (i) the Collateral or any other property which is security for the Obligations or its value (including without limitation any increase in delinquencies of
Accounts), (ii) the assets, business or prospects of Borrower or any Guarantor, or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability, perfection and priority thereof); or (b) to
reflect Bank’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrower or any Guarantor to Bank is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in
respect of any state of facts which Bank determines in good faith constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default. 
 “Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of Borrower. 

“Revolving Line” is an Advance or Advances in an aggregate amount of up to the Maximum Revolver Amount outstanding at any
time. 
 “Revolving Line Maturity Date” is the second anniversary of the Effective Date. 
 “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be
made. 
 “Settlement Date” is defined in Section 2.1.3. 
 “Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of the Obligations Bank (pursuant to a subordination,
intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank. 
  

 31 

 “Subsidiary” means, with respect to any Person, any Person of which more than 50.0% of
the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled directly or indirectly by such Person or one or more of Affiliates of such Person. 
 “Tangible Net Worth” is, on any date, the consolidated total assets of Borrower and its Subsidiaries minus (a) any amounts
attributable to (i) goodwill, (ii) intangible items including unamortized debt discount and expense, patents, trade and service marks and names, copyrights and research and development expenses except prepaid expenses, (iii) notes,
accounts receivable and other obligations owing to Borrower from its officers or other Affiliates, and (iv) reserves not already deducted from assets, minus (b) Total Liabilities, plus (c) Subordinated Debt; provided,
however, that Tangible Net Worth shall not include the impact of FAS 123R or warrant expense. 
 “Term Loan” has the meaning
ascribed to such term in Section 2.1.6 hereof. 
 “Term Loan A” has the meaning ascribed to such term in
Section 2.1.6 hereof. 
 “Term Loan B” has the meaning ascribed to such term in Section 2.1.6 hereof. 

“Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower’s consolidated
balance sheet, including all Indebtedness, and current portion of Subordinated Debt permitted by Bank to be paid by Borrower, but excluding all other Subordinated Debt. 
 “Transaction Report” is that certain report of transactions and schedule of collections in the form attached hereto as Exhibit C. 
 “Transfer” is defined in Section 7.1. 
 [Remainder of page immediately left blank; signature page immediately follows.] 
  

 32 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date. 
  

			
	BORROWER:
	
	ACCLARENT, INC.
		
	By	 	 /s/ George Harter

	Name:	 	George Harter
	Title:	 	CFO
	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Mercy Forde

	Name:	 	Mercy Forde
	Title:	 	SVP

  

 Signature Page 

 EXHIBIT A 
 The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 
 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as provided
below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by
a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 
 all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and
replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 
 Notwithstanding the foregoing, the Collateral does not include any
of the following, whether now owned or hereafter acquired (collectively, the “Excluded IP”): 
 Any copyright
rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions,
continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business
of Borrower connected with and symbolized by such trademarks, service marks, and applications therefor, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or
future infringement of any of the foregoing; 
 provided, however, the Collateral shall include all Accounts, license and royalty fees and
other revenues, proceeds, or income arising out of or relating to any of the Excluded IP (collectively, “Included Proceeds of Excluded IP”); and provided further that, if and to the extent that a perfected security interest in the
underlying Excluded IP is required under applicable law (including without limitation pursuant to applicable judicial authority) to have a perfected security interest in the Included Proceeds of Excluded IP, then in such circumstance the Collateral
shall include the underlying Excluded IP only to the extent necessary under applicable law to permit perfection of Bank’s security interest in such Included Proceeds of Excluded IP. 
 Pursuant to the terms of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its Excluded IP, without Bank’s prior written consent. 
 [END OF EXHIBIT A] 
  

 Exhibit A 

 EXHIBIT B 
 COMPLIANCE CERTIFICATE 

			
	TO: SILICON VALLEY BANK	  	Date:                     
	FROM:
                                        
	  	

 The undersigned authorized officer of
                                        
(“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending
                                        
with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided,
however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true and correct in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all
foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against
Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned
certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the cases of unaudited financials, for the absence of footnotes and
subject to year-end adjustments. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not
just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

					
	Reporting Covenant	  	Required	  	Complies
			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes No
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes No
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes No
			
	A/R & A/P Agings, Deferred Revenue Reports	  	Monthly within 15 days	  	Yes No
			
	Transaction Reports	  	 At the time of each Credit Extension, and also:
  
 Monthly within 15 days, if either (A) both (1) a Streamline Period is then in effect, and (2) no Event of Default has occurred and is continuing, or
(B) both (1) a Streamline Period is then not in effect, and (2) no Advances are outstanding at all times within the past 30 days;
  
 otherwise, weekly
	  	Yes No
	
	The following intellectual property was registered after the Effective Date (if no registrations, state “None”)
	  
	  	

 [remainder of page intentionally left blank; continued on next page] 
  

 Exhibit B 

								
	 Financial Covenants
	  	 Required
	  	 Actual
	  	 Complies

				
	 Maintain on a Monthly Basis:
 Minimum Tangible Net Worth

	  	The Required TNW Amount (as such term is defined in the Loan Agreement).	  	$	            	  	Yes No
				
	 If the month covered by this Compliance Certificate is the last month of a fiscal quarter,
  
 Achieve on a Quarterly Basis: Minimum Quarterly Revenues
	  	The Required Quarterly Revenues Amount (as such term is defined in the Loan Agreement).	  	$	            	  	Yes No

 The following financial covenant analys[is][es] and information set forth in Schedule 1 attached
hereto are true and accurate as of the date of this Certificate. 
 The following are the exceptions with respect to the certification above:
(If no exceptions exist, state “No exceptions to note.”) 
  
  

									
	 ACCLARENT, INC.
	    	BANK USE ONLY	 	
				
		 		    	Received by:	 	  

	By:	 	  
	    		 	AUTHORIZED SIGNER
				
	Name:	 	  
	    	Date:	 	  

				
	Title:	 	  
	    	Verified:	 	  

		 		    		 	AUTHORIZED SIGNER
				
		 		    	Date:	 	  

				
		 		    	Compliance Status:        Yes    No	 	

  

 Exhibit B 

 Schedule 1 to Compliance Certificate 
 Financial Covenants of Borrower 
 In the event
of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 
 Dated:
                     
 Tangible Net Worth
[Section 6.9(a)] 
 Required: $            , which equals the sum of (a) the TNW
Base Amount, plus (b) 35% of all consideration received after the Effective Date for issuances of the Borrower’s equity securities and the principal amount of Subordinated Debt of the Borrower, plus (c) 35% of the Borrower’s
positive net income (determined in accordance with GAAP) in the fiscal quarter ending March 31, 2008 and each fiscal quarter thereafter. 
 Actual:

  

					
	A.	  	Aggregate value of total assets of Borrower and its Subsidiaries	  	$            
			
	B.	  	Aggregate value of goodwill of Borrower and its Subsidiaries	  	$            
			
	C.	  	Aggregate value of intangible assets of Borrower and its Subsidiaries	  	$            
			
	D.	  	Aggregate value of investments of Borrower and its Subsidiaries consisting of minority investments in companies which investments are not publicly-traded	  	$            
			
	E.	  	Aggregate value of any reserves not already deducted from assets	  	$            
			
	F.	  	Aggregate value of liabilities of Borrower and its Subsidiaries (including all Indebtedness) and current portion of Subordinated Debt permitted by Bank to be paid by Borrower (but no other
Subordinated Debt)	  	$            
			
	G.	  	Aggregate value of Indebtedness of Borrower subordinated to Borrower’s Indebtedness to Bank	  	$            
			
	H.	  	Tangible Net Worth (line A minus line B minus line C minus line D minus line E minus line F plus line G)	  	$            

 Is line H equal to or greater than
$            ? 
  

			
	             No, not in compliance	  	             Yes, in compliance

 [continued on next page] 
  

 Exhibit B 

	II.	Minimum Quarterly Revenues (Section 6.9(b)) 

 Required: See
chart below 
  

			
	With respect to the fiscal quarter ending on:	  	Borrower’s revenues for such fiscal quarter shall not be less than the following minimum required amount (“Required Quarterly Revenues”):
		
	March 31, 2008	  	$6,192,200
		
	June 30, 2008	  	$7,944,392
		
	September 30, 2008	  	$8,727,142
		
	December 31, 2008	  	$11,250,914
	
	On or before December 31, 2008, the Minimum Quarterly Revenues financial covenant shall be reset, by mutual written agreement of Bank and Borrower in their respective
discretion, for the fiscal quarters ending March 31, 2009 and each fiscal quarter thereafter based on Borrower’s projected financial statements for such periods, such projected financial statements to have been approved by the
Borrower’s Board of Directors and accepted jointly by Borrower and by Bank in their respective discretion, which projected financial statements Borrower hereby covenants and agrees to deliver to Bank no later than November 30,
2008.

 Actual: 
  

			
	 The fiscal quarter ending on:
	  	Actual Revenues
		
		  	$            

 If the month covered by this Compliance Certificate is the last month of a fiscal quarter, then is the amount of
Actual Revenues for the fiscal quarter ending in the month covered by this Compliance Certificate equal to or greater than the Required Quarterly Revenues amount for such fiscal quarter? 
  

			
	             No, not in compliance	  	             Yes, in compliance

  

 Exhibit B 

 Exhibit C 
 Transaction Report 
 [EXCEL spreadsheet to be provided separately] 
  

 Exhibit C

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