Document:

Venture Loan and Security Agreement

 Exhibit 10.26 
 VENTURE LOAN AND SECURITY AGREEMENT 
 Dated as of October 6, 2006 
 by and between 
 HORIZON TECHNOLOGY FUNDING
COMPANY LLC, 
 a Delaware limited liability company 
 76 Batterson Park Road 
 Farmington, CT 06032 
 as Lender 
 And 
 RF MAGIC, INC., 
 a Delaware corporation 
 10182 Telesis Court, 4th Floor 
 San Diego, CA 92121 
 as Borrower 
  

				
	 Commitment Amount Loan A:
	  	$	5,000,000
	 Commitment Amount Loan B:
	  	$	2,000,000
	 Commitment Termination Date Loan A:
	  	 	October 31, 2006
	 Commitment Termination Date Loan B:
	  	 	June 30, 2007

 The Lender and Borrower hereby agree as follows: 
 AGREEMENT 
 1. Definitions and Construction. 
 1.1 Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings: 
 “Account Control Agreement” means an agreement acceptable to Lender which perfects via control Lender’s security interest in
Borrower’s deposit accounts and/or accounts holding securities. 
 “Affiliate” means any Person that owns or controls
directly or indirectly ten percent (10%) or more of the stock of another entity, any Person that controls or is controlled by or is under common control with such Persons or any Affiliate of such Persons and each of such Person’s officers,
directors, joint venturers or partners. 
 “Agreement” means this certain Venture Loan and Security Agreement by and between
Borrower and Lender dated as of the date on the cover page hereto (as it may from time to time be amended or supplemented in writing signed by the Borrower and Lender). 
 “Borrower” means the Borrower as set forth on the cover page of this Agreement. 
 “Borrower’s Home State” means California. 
 “Business Day” means any day that is not a
Saturday, Sunday, or other day on which banking institutions are authorized or required to close in Connecticut or Borrower’s Home State. 
 “Claim” has the meaning given such term in Section 10.3 of this Agreement. 
 “Code”
means the Uniform Commercial Code as adopted and in effect in the State of Connecticut, as amended from time to time; provided that if by reason of mandatory provisions of law, the creation and/or perfection or the effect of perfection
or non-perfection of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than Connecticut, the term “Code” shall also mean the Uniform Commercial Code as in effect from
time to time in such jurisdiction for purposes of the provisions hereof relating to such creation, perfection or effect of perfection or non-perfection. 
 “Collateral” has the meaning given such term in Section 4.1 of this Agreement. 
 “Commitment Amount Loan A” and “Commitment Amount Loan B” have the meanings as set forth on the cover page of this Agreement. 
 “Commitment Fee” has the meaning given such term in Section 2.6(c) of this Agreement. 
  

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 “Commitment Termination Date Loan A” and “Commitment Termination Date Loan
B” have the meanings as set forth on the cover page of this Agreement. 
 “Default” means any event which with the
passing of time or the giving of notice or both would become an Event of Default hereunder. 
 “Default Rate” means the per
annum rate of interest equal to five percent (5%) over the Loan Rate, but such rate shall in no event be more than the highest rate permitted by applicable law to be charged on commercial loans in a default situation. 
 “Disclosure Schedule” means Exhibit A attached hereto. 
 “Environmental Laws” means all foreign, federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and
codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authorities, in each case relating to environmental, health, safety and land use matters,
including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the
Toxic Substances Control Act and the Emergency Planning and Community Right-to-Know Act. 
 “Equity Securities” of any
Person means (a) all common stock, preferred stock, participations, shares, partnership interests, membership interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting) and
(b) all warrants, options and other rights to acquire any of the foregoing. 
 “ERISA” has the meaning given to such
term in Section 7.12 of this Agreement. 
 “Event of Default” has the meaning given to such term in
Section 8 of this Agreement. 
 “Funding Certificate” means a certificate executed by a Responsible Officer of
Borrower substantially in the form of Exhibit B or such other form as Lender may agree to accept. 
 “Funding Date”
means any date on which a Loan is made to or on account of Borrower under this Agreement. 
 “GAAP” means generally accepted
accounting principles as in effect in the United States of America from time to time, consistently applied. 
 “Good Faith
Deposit” has the meaning given such term in Section 2.6(a) of this Agreement. 
 “Governmental
Authority” means (a) any federal, state, county, municipal or foreign government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department,
instrumentality or public body, (c) any court or administrative tribunal, or (d) with respect to any Person, any arbitration tribunal or other non-governmental authority to whose jurisdiction that Person has consented. 
  

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 “Hazardous Materials” means all those substances which are regulated by, or which may
form the basis of liability under, any Environmental Law, including all substances identified under any Environmental Law as a pollutant, contaminant, hazardous waste, hazardous constituent, special waste, hazardous substance, hazardous material, or
toxic substance, or petroleum or petroleum derived substance or waste. 
 “Indebtedness” means, with respect to Borrower or
any Subsidiary, the aggregate amount of, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all
obligations of such Person to pay the deferred purchase price of property or services (excluding trade payables aged less than one hundred eighty (180) days), (d) all capital lease obligations of such Person, (e) all obligations or
liabilities of others secured by a Lien on any asset of such Person, whether or not such obligation or liability is assumed, and (f) all Indebtedness of others guaranteed by such Person. Unless otherwise indicated, the term
“Indebtedness” shall include all Indebtedness of Borrower and the Subsidiaries. 
 “Indemnified Person” has
the meaning given such term in Section 10.3 of this Agreement. 
 “Intellectual Property” means all of
Borrower’s right, title and interest in and to patents, patent rights (and applications and registrations therefor), trademarks and service marks (and applications and registrations therefor), inventions, copyrights, mask works (and
applications and registrations therefor), trade names, trade styles, software and computer programs, source code, object code, trade secrets, methods, processes, know how, drawings, specifications, descriptions, and all memoranda, notes, and records
with respect to any research and development, all whether now owned or subsequently acquired or developed by Borrower and whether in tangible or intangible form or contained on magnetic media readable by machine together with all such magnetic media
(but not including embedded computer programs and supporting information included within the definition of “goods” under the Code). 
 “Investment” means the purchase or acquisition of any capital stock, equity interest, or any obligations or other securities of, or any interest in, any Person, or the extension of any advance, loan, extension of credit or
capital contribution to, or any other investment in, or deposit with, any Person. 
 “Landlord Agreement” means an agreement
by which a lessor to Borrower of certain real property furnishes its consent to removal of personal property by Lender under certain conditions, substantially in the form provided by Lender to Borrower or such other form as is reasonably acceptable
to Lender. 
 “Lender” means the Lender as set forth on the cover page of this Agreement. 
 “Lender’s Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and expenses) incurred in
connection with the preparation, negotiation, documentation, administration and funding of the Loan Documents; and Lender’s reasonable attorneys’ fees, costs and expenses incurred in amending, modifying, enforcing or defending the Loan
Documents (including fees and expenses of appeal or review), including the exercise of any 

  

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rights or remedies afforded hereunder or under applicable law, whether or not suit is brought, whether before or after bankruptcy or insolvency, including
without limitation all fees and costs incurred by Lender in connection with Lender’s enforcement of its rights in a bankruptcy or insolvency proceeding filed by or against Borrower or its Property. 
 “Lien” means any voluntary or involuntary security interest, pledge, bailment, lease, mortgage, hypothecation, conditional sales and
title retention agreement, encumbrance or other lien with respect to any Property in favor of any Person. 
 “Loan” means
each advance of credit by Lender to Borrower under this Agreement and, “Loans” means, collectively all such advances of credit. 
 “Loan A” means the advance of credit by Lender to Borrower under this Agreement in the Commitment Amount Loan A. 
 “Loan B” means the advance of credit by Lender to Borrower under this Agreement in the Commitment Amount Loan B. 
 “Loan Documents” means, collectively, this Agreement, the Notes, the Warrant, any Landlord Agreement, any Account Control Agreement and all other documents, instruments and agreements entered into in connection with this
Agreement, all as amended or extended from time to time. 
 “Loan Rate” means, with respect to each Loan, the per annum rate
of interest (based on a year of twelve 30-day months) equal to the greater of (a) 11.90 % or (b) 11.90% plus the difference between (i) the one month LIBOR Rate (rounded to the nearest one hundredth percent), as reported
in the Wall Street Journal, on the date which is five (5) Business Days before the Funding Date for such Loan (or, if the Wall Street Journal is not published on such date, the next earlier date on which it is published).and
(ii) 5.33%. 
 “Maturity Date” means, with respect to Loan A, May 1, 2010 and with respect to Loan B, the date
which is forty-two (42) months from the first day of the month next following the first day of the month following the Funding Date for Loan B, or, in the case of Loan A or Loan B, if earlier, the date of acceleration of the Loans following an
Event of Default or the date of prepayment, whichever is applicable. 
 “Note” means each promissory note executed in
connection with a Loan in substantially the form of Exhibit C attached hereto, and, collectively, “Notes” means all such promissory notes. 
 “Obligations” means all debt, principal, interest, fees, charges, expenses and attorneys’ fees and costs and other amounts, obligations, covenants, and duties owing by Borrower to Lender of any
kind and description (whether pursuant to or evidenced by the Loan Documents (other than the Warrant), or by any other agreement between Lender and Borrower, and whether or not for the payment of money), whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, including all Lender’s Expenses. 
 “Officer’s
Certificate” means a certificate executed by a Responsible Officer substantially in the form of Exhibit E or such other form as Lender may agree to accept. 
  

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 “Payment Date” has the meaning given such term in Section 2.2(a) of this
Agreement. 
 “Permitted Indebtedness” means and includes: 
 (a) Indebtedness of Borrower to Lender; 
 (b) Indebtedness of Borrower secured by Liens permitted under clause (e) of the definition of Permitted Liens; 
 (c)
Indebtedness arising from the endorsement of instruments in the ordinary course of business; 
 (d) Indebtedness existing on the date hereof
and set forth on the Disclosure Schedule; 
 (e) Indebtedness owed to Silicon Valley Bank consisting of (i) a revolving credit facility
in which the loans are limited to not more than Eighty Percent (80%) of Borrower’s outstanding accounts receivable plus (ii) term debt existing on the date hereof in the outstanding aggregate principal amount of $1,650,000;

 (f) Other Indebtedness in an aggregate principal amount not to exceed $250,000 at any time; and 
 (g) Extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms
modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
 “Permitted Investments”
means and includes any of the following Investments as to which Lender has a perfected security interest: 
 (a) Deposits and deposit
accounts with commercial banks organized under the laws of the United States or a state thereof to the extent: (i) the deposit accounts of each such institution are insured by the Federal Deposit Insurance Corporation up to the legal limit; and
(ii) each such institution has an aggregate capital and surplus of not less than One Hundred Million Dollars ($100,000,000); 
 (b)
Investments consisting of securities accounts, in which the investments therein otherwise meet the definition of Permitted Investments; 
 (c) Investments in marketable obligations issued or fully guaranteed by the United States and maturing not more than one (1) year from the date of issuance; 
 (d) Investments in open market commercial paper rated at least “A1” or “P1” or higher by a national credit rating agency and
maturing not more than one (1) year from the creation thereof and Investments in money market accounts and certificates of deposit; 
 (e) Investments pursuant to or arising under currency agreements or interest rate agreements entered into in the ordinary course of business; 
  

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 (f) Investments consisting of (1) travel advances and employee relocation loans and other employee
loans and advances in the ordinary course of business; provided the aggregate amount of such loans do not exceed $250,000 at any one time outstanding and (2) loans to employees, officers or directors relating to the purchase of equity
securities of Borrower pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; provided the aggregate amount of such do not exceed $250, 000 at any one time outstanding (exclusive of any non-cash based
loan options, pursuant to which no cash is distributed from the Borrower to such employee, officer or director, to acquire such securities); 
 (g) Investments consisting of 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; 
 (h) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to,
customers who are not Affiliates, in the ordinary course of business; 
 (i) Investments to fund operating expenses or capital costs of
Borrower’s subsidiaries operations, provided that such Investments are consistent with Borrower’s annual operating budget and plan as delivered to Lender each year pursuant to Section 6.3 of this Agreement; provided that (i) the
aggregate amount of such Investments does not exceed Two Million Dollars ($2,000,000) in any fiscal year of Borrower and (ii) upon Lender’s request, Borrower provides or causes any of its domestic subsidiaries to provide any and all
documents required by Lender to make any such domestic subsidiaries guarantors of the Obligations and grant a security in the personal property, excluding Intellectual Property, to secure any such guaranty; and 
 (j) Other Investments aggregating not in excess of Two Hundred Fifty Thousand Dollars ($250,000) at any time. 
 “Permitted IP Claims” means the granting of co-inventor status to, and the allowance of certain system claims by, Echostar Technology
Holdings Corporation, solely with respect to the following patents of Borrower: 10/735521, 10/734603, 10/734604 and 11/164768. 
 “Permitted Liens” means and includes: 
 (a) the Lien created by this Agreement; 
 (b) Liens for fees, taxes, levies, imposts, duties or other governmental charges of any kind which are not yet delinquent or which are being contested
in good faith by appropriate proceedings which suspend the collection thereof (provided that such appropriate proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of 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); 
  

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 (c) Liens identified on the Disclosure Schedule; 
 (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other similar Liens arising in the ordinary course of
business and which are not delinquent or remain payable without penalty or which are being contested in good faith and 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); 
 (e) Liens upon any equipment or other personal property acquired by Borrower after the date hereof to secure (i) the
purchase price of such equipment or other personal property, or (ii) lease obligations or indebtedness incurred solely for the purpose of financing the acquisition of such equipment or other personal property; provided that
(A) such Liens are confined solely to the equipment or other personal property so acquired and the amount secured does not exceed the acquisition price thereof, and (B) no such Lien shall be created, incurred, assumed or suffered to exist
in favor of Borrower’s officers, directors or stockholders holding five percent (5%) or more of Borrower’s Equity Securities; 
 (f) Liens granted to a lender providing Indebtedness permitted under subparagraph (e) of the definition of Permitted Indebtedness; 
 (g) non-exclusive licenses of Intellectual Property entered into in the ordinary course of business, or exclusive licenses of Intellectual Property with respect to scope or geographic area, (A) to customers in connection with
Borrower’s customization of software or other products for such customers, or (B) in connection with “end-of-life” source code where such source code is no longer integral to Borrower’s business; 
 (h) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default; 
 (i) Liens securing Subordinated Debt; 
 (j) Leases or subleases and licenses and sublicenses granted in the ordinary course of business; 
 (k) Liens in favor of customs
and revenue authorities arising as a matter of law, in the ordinary course of Borrower’s business, to secure payment of customs duties in connection with the importation of goods; 
 (l) Liens on insurance proceeds securing the payment of financed insurance premiums; and 
 (m) Deposits in the ordinary course of business under worker’s compensation, unemployment insurance, social security and other similar laws, or to
secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders or contracts (other than for the repayment of
borrowed money) or to secure statutory obligations (other than liens arising under ERISA or environmental liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds. 
  

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 “Person” means and includes any individual, any partnership, any corporation, any
business trust, any joint stock company, any limited liability company, any unincorporated association or any other entity and any domestic or foreign national, state or local government, any political subdivision thereof, and any department,
agency, authority or bureau of any of the foregoing. 
 “Property” means any interest in any kind of property or asset,
whether real, personal or mixed, whether tangible or intangible. 
 “Responsible Officer” has the meaning given such term in
Section 6.3 of this Agreement. 
 “Scheduled Payments” has the meaning given such term in
Section 2.2(a) of this Agreement. 
 “Solvent” has the meaning given such term in Section 5.11 of
this Agreement. 
 “Subsidiary” means any corporation or other entity of which a majority of the outstanding Equity
Securities entitled to vote for the election of directors or other governing body (otherwise than as the result of a default) is owned by Borrower directly or indirectly through Subsidiaries. 
 “Third Party Equipment” has the meaning given such term in Section 4.8 of this Agreement. 
 “Transfer” has the meaning given such term in Section 7.4 of this Agreement. 
 “Warrant” means the separate warrant or warrants dated on or about the date hereof in favor of the Lender or its designees to purchase
securities of Borrower. 
 1.2 Construction. References in this Agreement to “Articles,” “Sections,”
“Exhibits,” “Schedules” and “Annexes” are to recitals, articles, sections, exhibits, schedules and annexes herein and hereto unless otherwise indicated. References in this Agreement and each of the other Loan Documents
to any document, instrument or agreement shall include (a) all exhibits, schedules, annexes and other attachments thereto, (b) all documents, instruments or agreements issued or executed in replacement thereof, and (c) such document,
instrument or agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time to time and in effect at any given time. The words “hereof,” “herein” and “hereunder” and words of similar
import when used in this Agreement or any other Loan Document shall refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case
may be. The words “include” and “including” and words of similar import when used in this Agreement or any other Loan Document shall not be construed to be limiting or exclusive. Unless otherwise indicated in this Agreement or
any other Loan Document, all accounting terms used in this Agreement or any other Loan Document shall be construed, and all accounting and financial computations hereunder or thereunder shall be computed, in accordance with GAAP, and all terms
describing Collateral shall be construed in accordance with the Code. The terms and information set forth on the cover page of this Agreement are incorporated into this Agreement. 
  

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 2. Loans; Repayment. 
 2.1 Commitment. 
 (a) The Commitment Amount. Subject to the terms and conditions of this
Agreement and relying upon the representations and warranties herein set forth as and when made or deemed to be made, Lender agrees to lend to Borrower prior to the Commitment Termination Date Loan A, Loan A. Subject to the terms and conditions of
this Agreement, including without limitation Section 3.3 below, and relying upon the representations and warranties herein set forth as and when made or deemed to be made, Lender agrees to lend to Borrower on or after January 1, 2007, but
prior to the Commitment Termination Date Loan B, Loan B. 
 (b) The Loans and the Notes. The obligation of Borrower to repay the
unpaid principal amount of and interest on the Loan shall be evidenced by a Note issued to Lender. 
 (c) Use of Proceeds. The
proceeds of each Loan shall be used solely for working capital or general corporate purposes of Borrower. 
 (d) Termination of
Commitment to Lend. Notwithstanding anything in the Loan Documents, Lender’s obligation to lend the undisbursed portion of the Commitment Amount Loan A or Commitment Amount Loan B to Borrower hereunder shall terminate on the earlier of
(i) at Lender’s sole election, the occurrence of any Default or Event of Default hereunder, and (ii) with respect to Loan A, Commitment Termination Date Loan A and with respect to Loan B; Commitment Termination Date Loan B.
Notwithstanding the foregoing, Lender’s obligation to lend the undisbursed portion of the Commitment Amount Loan A or Commitment Amount Loan B to Borrower shall terminate if, in Lender’s sole judgment, there has been a material adverse
change in the business, results of operations, condition (financial or otherwise) or prospects of Borrower, whether or not arising from transactions in the ordinary course of business. 
 2.2 Payments. 
 (a) Scheduled
Payments. Borrower shall make payments of accrued interest only on the outstanding principal amount of each Loan on the first twelve (12) Payment Dates specified in the Note applicable to such Loan and thirty (30) equal payments of
principal plus accrued interest on the outstanding principal amount of each Loan on each subsequent Payment Date as set forth in the Note applicable to such Loan (collectively, the “Scheduled Payments”). Borrower shall make such
Scheduled Payments commencing on the date set forth in the Note applicable to such Loan and continuing thereafter on the first Business Day of each calendar month (each a “Payment Date”) through the Maturity Date. In any event, all
unpaid principal and accrued interest shall be due and payable in fall on the Maturity Date. 
  

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 (b) Interim Payment. Unless the Funding Date for a Loan is the first day of a calendar month,
Borrower shall pay the per diem interest (accruing at the Loan Rate from the Funding Date through the last day of that month) payable with respect to such Loan on the first Business Day of the next calendar month following the Funding Date.

 (c) Payment of Interest. Borrower shall pay interest on each Loan at a per annum rate of interest equal to the Loan Rate. All
computations of interest (including interest at the Default Rate, if applicable) shall be based on a year of twelve 30-day months. Notwithstanding any other provision hereof, the amount of interest payable hereunder shall not in any event exceed the
maximum amount permitted by the law applicable to interest charged on commercial loans. 
 (d) Application of Payments. All payments
received by Lender when no Event of Default exists shall be applied as follows: (1) first, to Lender’s Expenses then due and owing; and (2) second to all Scheduled Payments then due and owing (provided, however, if such
payments are not sufficient to pay the whole amount then due, such payments shall be applied first to unpaid interest at the Loan Rate, then to the remaining amount then due). During the existence of an Event of Default, all payments and application
of proceeds shall be made as set forth in Section 9.7. 
 (e) Late Payment Fee. Borrower shall pay to Lender a late
payment fee equal to three percent (3%) of any Scheduled Payment not paid when due. 
 (f) Default Rate. Borrower shall pay
interest at a per annum rate equal to the Default Rate on any amounts required to be paid by Borrower under this Agreement or the other Loan Documents (including Scheduled Payments), payable with respect to any Loan, accrued and unpaid interest, and
any fees or other amounts which remain unpaid after such amounts are due. If an Event of Default has occurred and the Obligations have been accelerated (whether automatically or by Lender’s election), Borrower shall pay interest on the
aggregate, outstanding accelerated balance hereunder from the date of the Event of Default until all Events of Default are cured, at a per annum rate equal to the Default Rate. 
 2.3 Prepayments. 
 (a) Mandatory
Prepayment Upon an Acceleration. If the Loans are accelerated following the occurrence of an Event of Default pursuant to Section 9.1(a) hereof, then Borrower, in addition to any other amounts which may be due and owing hereunder, shall
immediately pay to Lender the amount set forth in Section 2.3(b) below, as if the Borrower had opted to prepay on the date of such acceleration. 
 (b) Optional Prepayment. Upon ten (10) Business Days’ prior written notice to Lender, Borrower may, at its option, at any time, prepay all of the Loans by paying to Lender an amount equal to
(i) any accrued and unpaid interest on the outstanding principal balance of the Loans; (ii) for each Loan an amount equal to (A) if the Loan is prepaid in calendar year 2006, four (4%) percent of the then outstanding principal
balance of the Loan, (B) if the Loan is prepaid in calendar year 2007, two and one half of one (2.5%) percent of the then outstanding principal balance of the Loan, or (C) ) if the Loan is prepaid after December 31, 

  

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2007, one (1.0%) percent of the then outstanding principal balance of the Loan,; (iii) the outstanding principal balance of the Loans and
(iv) all other sums, if any, that shall have become due and payable hereunder. Notwithstanding the foregoing, if on or before the prepayment of the Loans, Borrower completes the sale of its Equity Securities in an initial public offering or is
sold for an amount which results in the Lender receiving net cash proceeds per share equal to two times the Warrant Price (as defined in the Warrant), Borrower shall not owe the amount set forth in Section 2.3(b)(ii) above. 
 2.4 Other Payment Terms. 
 (a)
Place and Manner. Borrower shall make all payments due to Lender in lawful money of the United States. All payments of principal, interest, fees and other amounts payable by Borrower hereunder shall be made, in immediately available funds,
not later than 4:00 p.m. Connecticut time, on the date on which such payment is due. Borrower shall make such payments to Lender via wire transfer as follows: 
  

			
	 Payment via wire transfer:
	  	
	 Credit:
	  	Horizon Technology Funding Company LLC
	 Bank Name:
	  	ABN Amro/LaSalle Bank NA CDO Trust Services
	 Bank Address:
	  	135 South LaSalle Street, Suite 1625
		  	Chicago, Illinois 60603
		  	Attn: Greg Meyers, 312-904-0283
	 Account No.:
	  	2090067 – Trust GL
	 FFCT-Reference Account Number
	  	721771.1
	 ABA Routing No.:
	  	071000505
	 Reference:
	  	RF Magic Invoice #                         

 (b) Date. Whenever any payment is due hereunder on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest or fees, as the case may be. 
 2.5 Procedure for Making the Loans. 
 (a) Notice. Borrower shall notify Lender of the date on
which Borrower desires Lender to make any Loan at least five (5) Business Days in advance of the desired Funding Date, unless Lender elects at its sole discretion to allow the Funding Date to be within five (5) Business Days of
Borrower’s notice. Borrower’s execution and delivery to Lender of a Note shall be Borrower’s agreement to the terms and calculations thereunder with respect to the Loan. Lender’s obligation to make any Loan shall be expressly
subject to the satisfaction of the conditions set forth in Section 3. 
 (b) Loan Rate Calculation. Prior to each Funding
Date, Lender shall establish the Loan Rate with respect to such Loan, which shall be set forth in the Note to be executed by Borrower with respect to such Loan and shall be conclusive in the absence of a manifest error. 
  

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 (c) Disbursement. Lender shall disburse the proceeds of each Loan by wire transfer to Borrower at
the account specified in the Funding Certificate for the Loan. 
 2.6 Good Faith Deposit; Legal and Closing Expenses; and Commitment
Fee. 
 (a) Good Faith Deposit. Borrower has delivered to Lender a good faith deposit in the amount of Thirty Five Thousand
Dollars ($35,000) (the “Good Faith Deposit”). The Good Faith Deposit will be applied to Lender’s Costs (as defined in Section 2.3(b) below) and the balance to the Commitment Fee. If the Funding Date does not occur (other
than as a result of Lender’s election not to fund pursuant to Section 2.1(d) above), Lender shall retain the Good Faith Deposit as compensation for its time, expenses and opportunity cost. 
 (b) Legal, Due Diligence and Documentation Expenses. Concurrently with its execution and delivery of this Agreement, Borrower shall pay to Lender
(from the Good Faith Deposit) Lender’s legal, due diligence and documentation expenses (“Lender’s Costs”) in connection with the negotiation and documentation of this Agreement and the Loan Documents in an amount not to exceed
Ten Thousand Dollars ($10,000). 
 (c) Commitment Fee. Borrower shall pay Lender concurrently with its execution and delivery of this
Agreement a commitment fee in the amount of Thirty Five Thousand Dollars ($35,000) (the “Commitment Fee”). The Commitment Fee shall be retained by Lender and be deemed fully earned upon receipt. 
 3. Conditions of Loan. 
 3.1
Conditions Precedent to Closing. At the time of the execution and delivery of this Agreement, Lender shall have received, in form and substance reasonably satisfactory to Lender, all of the following (unless Lender has agreed to waive such
condition or document, in which case such condition or document shall be a condition precedent to the making of any Loan and shall be deemed added to Section 3.2): 
 (a) Loan Agreement. This Agreement duly executed by Borrower and Lender. 
 (b) Warrant. The Warrant duly executed by Borrower. 
 (c) Secretary’s Certificate. A certificate of the secretary or assistant secretary of Borrower with copies of the following documents attached: (i) the certificate of incorporation and bylaws of
Borrower certified by Borrower as being complete and in full force and effect on the date thereof, (ii) incumbency and representative signatures, and (iii) resolutions authorizing the execution and delivery of this Agreement and each of
the other Loan Documents. 
 (d) Good Standing Certificates. A good standing certificate from Borrower’s state of incorporation
and the state in which Borrower’s principal place of business is located, each dated as of a recent date. 
  

 12 

 (e) Certificate of Insurance. Evidence of the insurance coverage required by
Section 6.8 of this Agreement. 
 (f) Consents. All necessary consents of stockholders and other third parties with
respect to the execution, delivery and performance of this Agreement, the Warrant and the other Loan Documents. 
 (g) Legal Opinion.
A legal opinion of Borrower’s counsel covering the matters set forth in Exhibit D hereto. 
 (h) Account Control
Agreements. Account Control Agreements for all of Borrower’s deposit accounts and accounts holding securities duly executed by all of the parties thereto, in the forms provided by or reasonably acceptable to Lender. 
 (i) Other Documents. Such other documents and completion of such other matters, as Lender may reasonably deem necessary or appropriate.

 3.2 Conditions Precedent to Making a Loan. The obligation of Lender to make each Loan is further subject to the following
conditions: 
 (a) No Default. No Default or Event of Default shall have occurred and be continuing. 
 (b) Note. Borrower shall have duly executed and delivered to Lender a Note in the amount of the Loan. 
 (c) UCC Financing Statements. Lender shall have received such documents, instruments and agreements, including UCC financing statements or
amendments to UCC financing statements, as Lender shall reasonably request to evidence the perfection and priority of the security interests granted to Lender pursuant to Section 4. Borrower authorizes Lender to file any UCC financing
statements, continuations of or amendments to UCC financing statements it deems necessary to perfect its security interest in the Collateral. 
 (d) Funding Certificate. Borrower shall have duly executed and delivered to Lender a Funding Certificate for such Loan. 
 (e) Subordination Agreement. A Subordination Agreement with respect to the Indebtedness constituting Permitted Indebtedness under subsection (e) of the definition of Permitted Indebtedness, executed by the lender providing such
Indebtedness. 
 (f) Other Documents. Such other documents and completion of such other matters, as Lender may reasonably deem
necessary or appropriate. 
 3.3 Condition Precedent to Making Loan B. Borrower shall not request and Lender shall have no obligation
to make, Loan B unless, in addition to all of the other terms and conditions contained herein, (a) on or before June 30, 2007, Borrower provides Lender with evidence reasonably satisfactory to Lender that Borrower has achieved aggregate
revenues, as determined in accordance with GAAP, of not less than Fourteen Million Dollars ($14,000,000) in Borrower’s fiscal quarters ending September 30, 2006 and December 31, 2006. 
  

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 3.4 Covenant to Deliver. Borrower agrees (not as a condition but as a covenant) to deliver to
Lender each item required to be delivered to Lender as a condition to each Loan, if such Loan is advanced. Borrower expressly agrees that the extension of such Loan prior to the receipt by Lender of any such item shall not constitute a waiver by
Lender of Borrower’s obligation to deliver such item, and any such extension in the absence of a required item shall be in Lender’s sole discretion. 
 4. Creation of Security Interest. 
 4.1 Grant of Security Interest. Borrower grants to Lender a
valid and continuing security interest in all presently existing and hereafter acquired or arising Collateral in order to secure prompt, full and complete payment of any and all Obligations and in order to secure prompt, full and complete
performance by Borrower of each of its covenants and duties under each of the Loan Documents (other than the Warrant). The “Collateral” shall mean and include all right, title, interest, claims and demands of Borrower in and to all
personal property of Borrower, including without limitation, all of the following: 
 (a) All goods (and embedded computer programs and
supporting information included within the definition of “goods” under the Code) and equipment now owned or hereafter acquired, including, without limitation, all laboratory equipment, computer equipment, office equipment, machinery,
fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located;

 (b) All inventory now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies,
packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Borrower’s books relating to any of the foregoing; 
 (c) All contract rights and general intangibles (except to the extent included within the definition of Intellectual Property), now owned or hereafter
acquired, including, without limitation, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, software, computer programs, computer disks, computer tapes,
literature, reports, catalogs, design rights, income tax refunds, payment intangibles, commercial tort claims, payments of insurance and rights to payment of any kind; 
 (d) All now existing and hereafter arising accounts, contract rights, royalties, license rights, license fees and all other forms of obligations owing to Borrower arising out of the sale or lease of goods, the
licensing of technology or the rendering of services by 

  

 14 

 
Borrower (subject, in each case, to the contractual rights of third parties to require funds received by Borrower to be expended in a particular manner),
whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s books relating to any of the foregoing; 

(e) All documents, cash, deposit accounts, letters of credit (whether or not the letter of credit is evidenced by a writing), certificates of
deposit, instruments, promissory notes, chattel paper (whether tangible or electronic) and investment property, including, without limitation, all securities, whether certificated or uncertificated, security entitlements, securities accounts,
commodity contracts and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter acquired and Borrower’s books relating to the foregoing (but excluding any cash, deposit
accounts or certificates of deposits which are pledged and continue to be pledged to secure reimbursement obligations of Borrower under letters of credit issued on Borrower’s or its subsidiaries behalf with respect to leases of real property);

 (f) Any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds
thereof, including, without limitation, insurance, condemnation, requisition or similar payments and proceeds of the sale or licensing of Intellectual Property to the extent such proceeds no longer constitute Intellectual Property; but 

(g) Notwithstanding the foregoing, the Collateral shall not include any Intellectual Property; provided, however, that the Collateral
shall include all accounts receivables, accounts, and general intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to
Payment”). Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment,
then the Collateral shall automatically, and effective as of the date hereof, include the Intellectual Property to the extent necessary to permit perfection of Lender’s security interest in the Rights to Payment. 
 4.2 After-Acquired Property. If Borrower shall at any time acquire a commercial tort claim, as defined in the Code, Borrower shall promptly notify
Lender in writing signed by Borrower of the brief details thereof and grant to Lender 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 Lender. 
 4.3 Duration of Security Interest. Lender’s security interest in the Collateral shall continue until
the payment in full and the satisfaction of all Obligations (other than indemnity obligations which have not arisen prior to the date of repayment in full of all other Obligations) and termination of Lender’s commitment to fund the Loans,
whereupon such security interest shall terminate. Lender shall, at Borrower’s sole cost and expense, execute such further documents and take such further actions as may be reasonably necessary to make effective the release contemplated by this
Section 4.3, including duly authorizing and delivering termination statements for filing in all relevant jurisdictions under the Code. 
  

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 4.4 Location and Possession of Collateral. The Collateral is and shall remain in the possession of
Borrower at its location listed on the cover page hereof or as set forth in the Disclosure Schedule. Borrower shall remain in full possession, enjoyment and control of the Collateral (except only as may be otherwise required by Lender for perfection
of its security interest therein) and so long as no Event of Default has occurred, shall be entitled to manage, operate and use the same and each part thereof with the rights and franchises appertaining thereto; provided that the
possession, enjoyment, control and use of the Collateral shall at all time be subject to the observance and performance of the terms of this Agreement. 
 4.5 Delivery of Additional Documentation Required. Borrower shall from time to time execute and deliver to Lender, at the request of Lender, all financing statements and other documents Lender may reasonably
request, in form satisfactory to Lender, to perfect and continue Lender’s perfected security interests in the Collateral and in order to consummate fully all of the transactions contemplated under the Loan Documents. 
 4.6 Right to Inspect. Lender (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to
time during Borrower’s usual business hours, to inspect Borrower’s books and records and to make copies thereof and to inspect, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount,
condition of, or any other matter relating to, the Collateral. 
 4.7 Intellectual Property. Borrower shall (i) protect, defend
and maintain the validity and enforceability of any material Intellectual Property and promptly advise Lender in writing of material infringements, and (ii) not allow any Intellectual Property material to Borrower’s business to be
abandoned, forfeited or dedicated to the public without the consent of the board of directors of the Borrower. 
 4.8 Lien
Subordination. Lender agrees that the Liens granted to it hereunder shall be subordinate to the Liens to secure the Indebtedness permitted under clause (e) of the definition of Permitted Indebtedness. Lender agrees that the Liens granted to
it hereunder in Third Party Equipment shall be subordinate to the Liens of future lenders providing equipment financing and equipment lessors for equipment and other personal property acquired by Borrower after the date hereof (“Third Party
Equipment”); provided that in the case of equipment financings and leasing such Liens are confined solely to the equipment so financed and the proceeds thereof and are Permitted Liens. Notwithstanding the foregoing, the
Obligations hereunder shall not be subordinate in right of payment to any obligations to other equipment lenders or equipment lessors and Lender’s rights and remedies hereunder shall not in any way be subordinate to the rights and remedies of
any such equipment lenders or equipment lessors, except for its rights and remedies with respect to Third Party Equipment. So long as no Event of Default exists, Lender agrees to execute and deliver such agreements and documents as may be reasonably
requested by Borrower from time to time which set forth the lien subordination described in this Section 4.8 and are reasonably acceptable to Lender. Lender shall have no obligation to execute any agreement or document which would impose
obligations, restrictions or lien priority on Lender which are less favorable to Lender than those described in this Section 4.8. 
  

 16 

 5. Representations and Warranties. Except as set forth in the Disclosure Schedule, Borrower
represents and warrants as follows: 
 5.1 Organization and Qualification. Borrower is a corporation duly organized and validly
existing under the laws of its state of incorporation and qualified and licensed to do business in, and is in good standing in, any state in which the conduct of its business or its ownership of Property requires that it be so qualified or in which
the Collateral is located, except for such states as to which any failure to so qualify would not have a material adverse effect on Borrower. 
 5.2 Authority. Borrower has all necessary power and authority to execute, deliver, and perform in accordance with the terms thereof, the Loan Documents to which it is a party. Borrower has all requisite power and authority to own and
operate its Property and to carry on its businesses as now conducted. 
 5.3 Conflict with Other Instruments, etc. Neither the
execution and delivery of any Loan Document to which Borrower is a party nor the consummation of the transactions therein contemplated nor compliance with the terms, conditions and provisions thereof will conflict with or result in a breach of any
of the terms, conditions or provisions of the certificate of incorporation, the by-laws, or any other organizational documents of Borrower or any law or any regulation, order, writ, injunction or decree of any court or governmental instrumentality
or any material agreement or instrument to which Borrower is a party or by which it or any of its Property is bound or to which it or any of its Property is subject, or constitute a default thereunder or result in the creation or imposition of any
Lien, other than Permitted Liens. 
 5.4 Authorization; Enforceability. The execution and delivery of this Agreement, the granting of
the security interest in the Collateral, the incurring of the Loans, the execution and delivery of the other Loan Documents to which Borrower is a party and the consummation of the transactions herein and therein contemplated have each been duly
authorized by all necessary action on the part of Borrower. Except for the consent of Silicon Valley Bank, which consent shall be obtained prior to the making of a Loan, no authorization, consent, approval, license or exemption of, and no
registration, qualification, designation, declaration or filing with, or notice to, any Person is, was or will be necessary to (i) the valid execution and delivery of any Loan Document to which Borrower is a party, (ii) the performance of
Borrower’s obligations under any Loan Document, or (iii) the granting of the security interest in the Collateral, except for filings in connection with the perfection of the security interest in any of the Collateral or the issuance of the
Warrant. The Loan Documents have been duly executed and delivered and constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws of general application relating to or affecting the enforcement of creditors’ rights or by general principles of equity. 
 5.5 No Prior Encumbrances. Borrower has good and marketable title to the Collateral, free and clear of Liens except for Permitted Liens. Borrower has good title and ownership of, or is licensed under, all of
Borrower’s current Intellectual Property that is necessary to operate its business. Borrower has not received any communications alleging that Borrower has violated, or by conducting its business as proposed, would violate any proprietary
rights of 

  

 17 

 
any other Person. Borrower has no knowledge of any infringement or violation by it of the intellectual property rights of any third party and has no
knowledge of any violation or infringement by a third party of any of its Intellectual Property. The Collateral and the Intellectual Property constitute substantially all of the assets and property of Borrower. 
 5.6 Name; Location of Chief Executive Office, Principal Place of Business and Collateral. Borrower has not done business under any name other than
that specified on the signature page hereof. Borrower’s jurisdiction of incorporation, chief executive office, principal place of business, and the place where Borrower maintains its records concerning the Collateral are presently located in
the state and at the address set forth on the cover page of this Agreement. The Collateral is presently located at the address set forth on the cover page hereof or as set forth in the Disclosure Schedule. 
 5.7 Litigation. There are no actions or proceedings pending by or against Borrower before any court or administrative agency in which an adverse
decision could have a material adverse effect on Borrower or the aggregate value of the Collateral. Borrower does not have knowledge of any such pending or threatened actions or proceedings. 
 5.8 Financial Statements. All financial statements relating to Borrower or any Affiliate that have been or may hereafter be delivered by Borrower
to Lender present fairly in all material respects Borrower’s financial condition as of the date thereof and Borrower’s results of operations for the period then ended. 
 5.9 No Material Adverse Effect. No event has occurred and no condition exists which could reasonably be expected to have a material adverse effect
on the financial condition, business or operations of Borrower since December 31, 2005. 
 5.10 Full Disclosure. No
representation, warranty or other statement made by Borrower in any Loan Document (including the Disclosure Schedule), certificate or written statement furnished to Lender contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained in such certificates or statements not misleading (it being recognized by the Lender that projections and estimates as to future events, although reflecting Borrower’s good faith
projections or forecasts based on methods and data which Borrower believes to be reasonable and accurate, are not to be viewed as facts and that the actual results during the period or periods covered by any such projections and estimates may differ
from projected or estimated results). There is no fact known to Borrower which materially adversely affects, or which could in the future be reasonably expected to materially adversely affect, its ability to perform its obligations under this
Agreement. 
 5.11 Solvency, Etc. Borrower is Solvent (as defined below) and, after the execution and delivery of the Loan Documents
and the consummation of the transactions contemplated thereby, Borrower will be Solvent. “Solvent” means, with respect to any Person on any date, that on such date (a) the fair value of the property of such Person is greater
than the fair value of the liabilities (including, without limitation, contingent liabilities) of such Person, (b) the present fair saleable value of the assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or 

  

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liabilities beyond such Person’s ability to pay as such debts and liabilities mature and (d) such Person is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital. 
 5.12 Subsidiaries. Borrower has no Subsidiaries other than those listed on the Disclosure Schedule. 
 5.13 Catastrophic Events; Labor Disputes. Neither Borrower nor its properties is or has been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or
other casualty that could reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower. There are no disputes presently subject to grievance procedure, arbitration or litigation under any of
the collective bargaining agreements, employment contracts or employee welfare or incentive plans to which Borrower is a party, and there are no strikes, lockouts, work stoppages or slowdowns, or, to the knowledge of Borrower, jurisdictional
disputes or organizing activity occurring or threatened which could reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower. 
 5.14 Certain Agreements of Officers, Employees and Consultants. 
 (a) No Violation. To the knowledge of Borrower, no officer, employee or consultant of Borrower is, or is now expected to be, in violation of any term of any employment contract, proprietary information
agreement, nondisclosure agreement, noncompetition agreement or any other material contract or agreement or any restrictive covenant relating to the right of any such officer, employee or consultant to be employed by Borrower because of the nature
of the business conducted or to be conducted by Borrower or relating to the use of trade secrets or proprietary information of others, and to Borrower’s knowledge, the continued employment of Borrower’s officers, employees and consultants
does not subject Borrower to any material liability for any claim or claims arising out of or in connection with any such contract, agreement, or covenant. 
 (b) No Present Intention to Terminate. To the knowledge of Borrower, no officer of Borrower, and no employee or consultant of Borrower whose termination, either individually or in the aggregate, could
reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower, has any present intention of terminating his or her employment or consulting relationship with Borrower. 
 6. Affirmative Covenants. Borrower, until the full and complete payment of the Obligations (other than indemnity obligations which have not arisen
prior to the date of repayment in full of all other Obligations), covenants and agrees that: 
 6.1 Good Standing. Borrower shall
maintain its corporate existence and its good standing in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a material adverse effect on the
financial condition, operations or business of Borrower. Borrower shall maintain in force all licenses, approvals and agreements, the loss of which could reasonably be expected to have a material adverse effect on its financial condition, operations
or business. 
  

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 6.2 Government Compliance. Borrower shall comply with all statutes, laws, ordinances and
government rules and regulations to which it is subject, noncompliance with which could reasonably be expected to materially adversely affect the financial condition, operations or business of Borrower. 
 6.3 Financial Statements, Reports, Certificates. Borrower shall deliver to Lender: (a) as soon as available, but in any event within thirty
(30) days after the end of each month, a company prepared balance sheet, income statement and cash flow statement covering Borrower’s operations during such period, certified by Borrower’s president, treasurer or chief financial
officer (each, a “Responsible Officer”); (b) as soon as available, but in any event within one hundred eighty (180) days after the end of Borrower’s fiscal year, audited financial statements of Borrower prepared in
accordance with GAAP, together with an unqualified (except as a “going concern” or other similar qualification) opinion on such financial statements of a nationally recognized or other independent public accounting firm reasonably
acceptable to Lender; and (c) as soon as available, but in any event within ninety (90) days after the end of Borrower’s fiscal year or, if later, the date of Borrower’s board of directors’ adoption, Borrower’s
operating budget and plan for the next fiscal year; and (d) such other financial information as Lender may reasonably request from time to time. From and after such time as Borrower becomes a publicly reporting company, promptly as they are
available and in any event: (x) at the time of filing of Borrower’s Form 10-K with the Securities and Exchange Commission after the end of each fiscal year of Borrower, the financial statements of Borrower filed with such Form 10-K; and
(y) at the time of filing of Borrower’s Form 10-Q with the Securities and Exchange Commission after the end of each of the first three fiscal quarters of Borrower, the financial statements of Borrower filed with such Form 10-Q. In
addition, Borrower shall deliver to Lender (i) promptly upon becoming available, copies of all statements, reports and notices sent or made available generally by Borrower to its security holders; and (ii) immediately upon receipt of
notice thereof, a report of any material legal actions pending or threatened in writing against Borrower or the commencement of any action, proceeding or governmental investigation involving Borrower is commenced that is reasonably expected to
result in damages or costs to Borrower of One Hundred Fifty Thousand Dollars ($150,000). 
 6.4 Certificates of Compliance. Each time
financial statements are furnished pursuant to Section 6.3 above, Borrower shall deliver to Lender an Officer’s Certificate signed by a Responsible Officer in the form of, and certifying to the matters set forth in Exhibit E
hereto. 
 6.5 Notice of Defaults. As soon as possible, and in any event within five (5) days after the discovery of a Default or
an Event of Default, Borrower shall provide Lender with an Officer’s Certificate setting forth the facts relating to or giving rise to such Default or Event of Default and the action which Borrower proposes to take with respect thereto.

 6.6 Taxes. Borrower shall make due and timely payment or deposit of all material federal, state, and local taxes, assessments, or
contributions required of it by law or imposed upon any Property belonging to it, and will execute and deliver to Lender, on demand, appropriate certificates attesting to the payment or deposit thereof; and Borrower will make timely payment or
deposit of all material tax payments and withholding taxes required of it by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Lender
with proof satisfactory to 

  

 20 

 
Lender indicating that Borrower has made such payments or deposits; provided that Borrower need not make any payment if the amount or validity
of such payment is contested in good faith by appropriate proceedings which suspend the collection thereof (provided that such 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 amounts or reserves sufficient to discharge such amounts have been provided on the books of Borrower). 
 6.7 Use; Maintenance. Borrower shall keep and maintain all items of equipment and other similar types of personal property that form any
significant portion or portions of the Collateral in good operating condition and repair and shall make all necessary replacements thereof and renewals thereto so that the value and operating efficiency thereof shall at all times be maintained and
preserved. Borrower shall not permit any such material item of Collateral to become a fixture to real estate or an accession to other personal property, without the prior written consent of Lender. Borrower shall not permit any such material item of
Collateral to be operated or maintained in violation of any applicable law, statute, rule or regulation. With respect to items of leased equipment (to the extent Lender has any security interest in any residual Borrower’s interest in such
equipment under the lease), Borrower shall keep, maintain, repair, replace and operate such leased equipment in accordance with the terms of the applicable lease. 
 6.8 Insurance. Borrower shall keep its business and the Collateral insured for risks and in amounts as are customary for companies of Borrower’s size and type of business. Insurance policies shall be in a
form and with companies that are satisfactory to Lender. All property policies shall have a lender’s loss payable endorsement showing Lender as an additional loss payee and all liability policies shall show Lender as an additional insured and
all policies shall provide that the insurer must give Lender at least thirty (30) days notice before canceling its policy. At Lender’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments.
Proceeds payable under any policy shall, at Lender’s option, be payable to Lender on account of the Obligations. Notwithstanding the foregoing, 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 (i) any such replaced or repaired property (a) shall be of equal or like value as the replaced or repaired
Collateral and (b) shall be deemed Collateral in which Lender has been granted a first priority security interest and (ii) after the occurrence and during the continuation of an Event of Default all proceeds payable under such casualty
policy shall, at the option of Lender, be payable to Lender, on account of the Obligations. If Borrower fails to obtain insurance as required under Section 6.8 or to pay any amount or furnish any required proof of payment to third persons and
Lender, Lender may make all or part of such payment or obtain such insurance policies required in Section 6.8, and take any action under the policies Lender deems prudent. On or prior to the first Funding Date and prior to each policy renewal,
Borrower shall furnish to Lender certificates of insurance or other evidence satisfactory to Lender that insurance complying with all of the above requirements is in effect. 
 6.9 Security Interest. Assuming the proper filing of one or more financing statement(s) identifying the Collateral with the proper state and/or
local authorities, the security interests in the Collateral granted to Lender pursuant to this Agreement (i) constitute and will continue to constitute first priority security interests to the extent that a security interest in such 

  

 21 

 
Collateral can be perfected by the filing of a UCC-1 financing statement (except to the extent any Permitted Liens may have a superior priority to
Lender’s Lien under this Agreement) and (ii) are and will continue to be superior and prior to the rights of all other creditors of Borrower to the extent that a security interest in such Collateral can be perfected by the filing of a
UCC-1 financing statement (except to the extent of such Permitted Liens). 
 6.10 Further Assurances. At any time and from time to
time Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Lender to make effective the purposes of this Agreement, including without limitation, the continued perfection and
priority of Lender’s security interest in the Collateral. 
 6.11 Equity Investment. Borrower shall permit Lender or its
assignees, at Lender’s option, to purchase up to Five Hundred Thousand ($500,000) of the securities sold in Borrower’s next round of equity financing at the same price and on the same terms as paid and received by the lead investor of the
equity financing. Borrower agrees that it shall notify Lender promptly upon the execution by Borrower of a term sheet or letter of intent setting forth the terms and conditions of such financing and in any event within five (5) days of such
execution. 
 7. Negative Covenants. Borrower, until the full and complete payment of the Obligations (other than indemnity
obligations which have not arisen prior to the date of repayment in full of all other Obligations), covenants and agrees that Borrower shall not: 
 7.1 Chief Executive Office. Change its name, jurisdiction of incorporation, chief executive office, principal place of business or any of the items set forth in Section 1 of the Disclosure Schedule without thirty (30) days
prior written notice to Lender. 
 7.2 Collateral Control. Subject to its rights under Sections 4.4 and 7.4, remove any items
of Collateral from Borrower’s facility located at the address set forth on the cover page hereof or as set forth on the Disclosure Schedule. 
 7.3 Liens. Create, incur, assume or suffer to exist any Lien of any kind upon any of Borrower’s Property, whether now owned or hereafter acquired, except Permitted Liens. 
 7.4 Other Dispositions of Collateral. Convey, sell, lease or otherwise dispose of all or any part of the Collateral to any Person (collectively, a
“Transfer”), except for: (i) Transfers of inventory in the ordinary course of business; (ii) Transfers of worn-out or obsolete equipment; or (iii) Transfers permitted under subclause (f) of the definition of
Permitted Liens with respect to Collateral, (iv) Transfers otherwise permitted under this Section 7, (v) Transfers of non-exclusive (or exclusive solely with respect to scope or geographic area) licenses of property in the ordinary
course of business and (vi) Transfers of exclusive licenses of property with respect to scope or geographic area (A) to customers in connection with Borrower’s customization of software or other products for such customers, or
(B) in connection with “end-of-life” source code where such source code is no longer integral to Borrower’s business. 
 7.5 Distributions. (i) Pay any dividends or make any distributions on its Equity Securities, except for dividends payable in capital stock; (ii) purchase, redeem, retire, defease or otherwise acquire for value any of its
Equity Securities (other than repurchases pursuant to the 

  

 22 

 
terms of employee stock purchase plans, employee restricted stock agreements or similar arrangements in an aggregate amount not to exceed Three Hundred Fifty
Thousand Dollars ($350,000) or by cancellation of Indebtedness); (iii) except as permitted pursuant to Section 7.5(ii), return any capital to any holder of its Equity Securities as such; (iv) except for distributions in capital stock,
make any distribution of assets, Equity Securities, obligations or securities to any holder of its Equity Securities as such; or (v) set apart any sum for any such purpose; provided, however. Borrower may pay dividends payable solely in capital
stock. 
 7.6 Mergers or Acquisitions. Merge or consolidate with or into any other Person or acquire all or substantially all of the
capital stock or assets of another Person; provided that, if any acquisition of all or substantially all of the capital stock or assets of another Person does not materially adversely affect the business or financial performance of Borrower, such
consent shall not be unreasonably withheld by Lender. 
 7.7 Change in Ownership. 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 material change in its ownership of greater than fifty percent (50%) (other than by the sale by Borrower of
Borrower’s Equity Securities in a public offering or to venture capital or institutional investors so long as Borrower identifies to Lender the venture capital or institutional investors prior to the closing of the investment). 
 7.8 Transactions With Affiliates. Except for transactions between Borrower and its Subsidiaries that are not otherwise prohibited by any other
provision of Section 7, enter into any contractual obligation with any Affiliate or engage in any other transaction with any Affiliate except upon terms at least as favorable to Borrower as an arms-length transaction with Persons who are not
Affiliates of Borrower. 
 7.9 Indebtedness Payments. (i) Except for the conversion of Indebtedness to Equity Securities and the
payment of cash in lieu of issuing fractional shares upon conversion thereof, prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the scheduled repayment thereof any Indebtedness for borrowed money (other than amounts due
or permitted to be prepaid under this Agreement or under any revolving credit agreement constituting Permitted Indebtedness under clause (e) of the definition of Permitted Indebtedness) or lease obligations, (ii) except as otherwise
permitted pursuant to Section 7.9(i) amend, modify or otherwise change the terms of any Indebtedness for borrowed money or lease obligations so as to accelerate the scheduled repayment thereof or (iii) repay any notes to officers,
directors or stockholders. 
 7.10 Indebtedness. Create, incur, assume or permit to exist any Indebtedness except Permitted
Indebtedness. 
 7.11 Investments. Make any Investment except for Permitted Investments. 
 7.12 Compliance. Become regulated as 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 Loan for that purpose; fail to meet the minimum funding requirements of 

  

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the Employment Retirement Income Security Act of 1974, and its regulations, as amended from time to time (“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 could reasonably be expected to cause a material adverse change, or permit any of its Subsidiaries to do so. 
 7.13 Maintenance of Accounts. (i) Maintain any deposit account or account holding securities owned by Borrower except accounts with respect to which Lender is able to take such actions as it deems
necessary to obtain a perfected security interest in such accounts through one or more Account Control Agreements; or (ii) grant or allow any other Person (other than Lender) to perfect a security interest in, or enter into any agreements with
any Persons (other than Lender) accomplishing perfection via control as to, any of its deposit accounts or accounts holding securities, other than any lender providing Indebtedness permitted under clause (e) of the definition of Permitted
Indebtedness. 
 7.14 Negative Pledge Regarding Intellectual Property. Create, incur, assume or suffer to exist any Lien of any kind
upon any Intellectual Property or Transfer any Intellectual Property, whether now owned or hereafter acquired, other than licenses of Intellectual Property entered into in the ordinary course of business and Permitted IP Claims. 
 8. Events of Default. Any one or more of the following events shall constitute an “Event of Default” by Borrower under this
Agreement: 
 8.1 Failure to Pay. If Borrower fails to pay when due and payable or when declared due and payable in accordance with the
Loan Documents: (i) any Scheduled Payment within five (5) Business Days of the relevant Payment Date or the relevant Maturity Date, or (ii) any other portion of the Obligations within five (5) Business Days after receipt of
written notice from Lender that such payment is due. 
 8.2 Certain Covenant Defaults. If Borrower fails to perform any obligation
under Section 6.8 or Sections 7.6, 7.7, 7.9, 7.10, 7.11, 7.12 and 7.13 of this Agreement. 
 8.3 Other Covenant Defaults. If
Borrower fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant, or agreement contained in this Agreement (other than as set forth in Sections 8.1. 8.2 or 8.4 through 8.13), in any of the other
Loan Documents and Borrower has failed to cure such default within thirty (30) days of the occurrence of such default. During this thirty (30) day period, the failure to cure the default is not an Event of Default (but no Loan will be made
during the cure period). 
 8.4 Intentionally Omitted. 
 8.5 Seizure of Assets, Etc. If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee,
receiver or Person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained, or in any way prevented
by court order from 

  

 24 

 
continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material
portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the United States Government, or any department, agency, or instrumentality thereof, or by any state,
county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof; provided that none of the foregoing shall constitute an Event of Default where such action or event
is stayed or an adequate bond has been posted pending a good faith contest by Borrower. 
 8.6 Service of Process. The service of
process upon Lender seeking to attach by a trustee or other process any funds of the Borrower on deposit or otherwise held by Lender, or the delivery upon Lender of a notice of foreclosure by any Person seeking to attach or foreclose on any funds of
the Borrower on deposit or otherwise held by Lender, or the delivery of a notice of foreclosure or exclusive control to any entity holding or maintaining Borrower’s deposit accounts or accounts holding securities by any Person (other than
Lender) seeking to foreclose or attach any such accounts or securities. 
 8.7 Default on Indebtedness. One or more defaults shall
exist under any agreement with any third party or parties which consists of the failure to pay any Indebtedness at maturity or which results in a right by such third party or parties, whether or not exercised, to accelerate the maturity of
Indebtedness in an aggregate amount in excess of One Hundred Fifty Thousand Dollars ($150,000) or a default shall exist under any financing agreement with Lender or any of Lender’s Affiliates. 
 8.8 Judgments. If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least One Hundred Fifty
Thousand Dollars ($150,000) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of twenty (20) days or more. 
 8.9 Misrepresentations. If any material misrepresentation or material misstatement is determined to exist in any warranty, representation, statement, certification, or report made to Lender by Borrower or any
officer, employee, agent, or director of Borrower as of the date such warranty, representation, statement, certification or report is made or deemed made. 
 8.10 Breach of Warrant. If Borrower shall breach any material term of the Warrant. 
 8.11
Unenforceable Loan Document. If, prior to the repayment in full of all Obligations, Borrower shall assert that any Loan Document is not, a legal, valid and binding obligation of Borrower enforceable in accordance with its terms. 

8.12 Involuntary Insolvency Proceeding. If a proceeding shall have been instituted in a court having jurisdiction in the premises seeking a
decree or order for relief in respect of Borrower in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or for the appointment of a receiver, liquidator, assignee, custodian, trustee (or
similar official) of Borrower or for any substantial part of its Property, or for the winding-up or liquidation of its affairs, and such proceeding shall remain undismissed or unstayed and in effect for a period of forty-five (45) consecutive
days or such court shall enter a decree or order granting the relief sought in such proceeding. 
  

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 8.13 Voluntary Insolvency Proceeding. If Borrower shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian (or other similar official) of Borrower or for any substantial part of its Property, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they
become due, or shall take any corporate action in furtherance of any of the foregoing. 
 9. Lender’s Rights and Remedies.

 9.1 Rights and Remedies. Upon the occurrence and during the continuance of any Default or Event of Default, Lender shall not have
any further obligation to advance money or extend credit to or for the benefit of Borrower. In addition, upon the occurrence and during the continuance of an Event of Default, Lender shall have the rights, options, duties and remedies of a secured
party as permitted by law and, in addition to and without limitation of the foregoing, Lender may, at its election, without notice of election and without demand, do any one or more of the following, all of which are authorized by Borrower:

 (a) Acceleration of Obligations. Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents,
or otherwise, including (i) any accrued and unpaid interest, (ii) the amounts which would have otherwise come due under Section 2.3(b)(ii) if the Loans had been voluntarily prepaid, (iii) the unpaid principal balance of the Loans
and (iv) all other sums, if any, that shall have become due and payable hereunder, immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.12 or 8.13 all Obligations
shall become immediately due and payable without any action by Lender); 
 (b) Protection of Collateral. Make such payments and do
such acts as Lender considers necessary or reasonable to protect Lender’s security interest in the Collateral. Borrower agrees to assemble the Collateral if Lender so requires and to make the Collateral available to Lender as Lender may
designate. Borrower authorizes Lender and its designees and agents to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any Lien
which in Lender’s determination appears or is claimed to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants
Lender a license to enter into possession of such premises and to occupy the same, without charge, for up to one hundred twenty (120) days in order to exercise any of Lender’s rights or remedies provided herein, at law, in equity, or
otherwise; 
 (c) Preparation of Collateral for Sale. Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale,
advertise for sale, and sell (in the manner provided for herein) the Collateral. Lender and its agents and any purchasers at or after foreclosure are hereby granted a non-exclusive, irrevocable, perpetual, fully paid, royalty-free license or other
right, 

  

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solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s Intellectual Property, including without limitation,
labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any Property of a similar nature, now or at any time hereafter owned or acquired by Borrower or in which
Borrower now or at any time hereafter has any rights; provided that such license shall only be exercisable in connection with the disposition of Collateral upon Lender’s exercise of its remedies hereunder; 
 (d) Sale of Collateral. Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for
cash or on terms, in such manner and at such places (including Borrower’s premises) as Lender determines are commercially reasonable; and 
 (e) Purchase of Collateral. Credit bid and purchase all or any portion of the Collateral at any public sale. 
 Any deficiency that exists
after disposition of the Collateral as provided above will be paid immediately by Borrower. 
 9.2 Set Off Right. Lender may set off
and apply to the Obligations any and all indebtedness at any time owing to or for the credit or the account of Borrower or any other assets of Borrower in Lender’s possession or control. 
 9.3 Effect of Sale. Upon the occurrence and during the continuance of an Event of Default, to the extent permitted by law, Borrower covenants that
it will not at any time insist upon or plead, or in any manner whatsoever claim or take any benefit or advantage of, any stay or extension law now or at any time hereafter in force, nor claim, take nor insist upon any benefit or advantage of or from
any law now or hereafter in force providing for the valuation or appraisement of the Collateral or any part thereof prior to any sale or sales thereof to be made pursuant to any provision herein contained, or to the decree, judgment or order of any
court of competent jurisdiction; nor, after such sale or sales, claim or exercise any right under any statute now or hereafter made or enacted by any state or otherwise to redeem the property so sold or any part thereof, and, to the full extent
legally permitted, except as to rights expressly provided herein, hereby expressly waives for itself and on behalf of each and every Person, except decree or judgment creditors of Borrower, acquiring any interest in or title to the Collateral or any
part thereof subsequent to the date of this Agreement, all benefit and advantage of any such law or laws, and covenants that it will not invoke or utilize any such law or laws or otherwise hinder, delay or impede the execution of any power herein
granted and delegated to Lender, but will suffer and permit the execution of every such power as though no such power, law or laws had been made or enacted. Any sale, whether under any power of sale hereby given or by virtue of judicial proceedings,
shall operate to divest all right, title, interest, claim and demand whatsoever, either at law or in equity, of Borrower in and to the Property sold, and shall be a perpetual bar, both at law and in equity, against Borrower, its successors and
assigns, and against any and all Persons claiming the Property sold or any part thereof under, by or through Borrower, its successors or assigns. 
  

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 9.4 Power of Attorney in Respect of the Collateral. Borrower does hereby irrevocably appoint
Lender (which appointment is coupled with an interest), the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name to file any notices of security interests, financing statements and continuations and
amendments thereof pursuant to the Code or federal law, as may be necessary to perfect, or to continue the perfection of Lender’s security interests in the Collateral. Borrower does hereby irrevocably appoint Lender (which appointment is
coupled with an interest) during the existence of an Event of Default, the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name: (a) to ask, demand, collect, receive, receipt for, sue for,
compound and give acquittance for any and all rents, issues, profits, avails, distributions, income, payment draws and other sums in which a security interest is granted under Section 4 with full power to settle, adjust or compromise any
claim thereunder as fully as if Lender were Borrower itself; (b) to receive payment of and to endorse the name of Borrower to any items of Collateral (including checks, drafts and other orders for the payment of money) that come into
Lender’s possession or under Lender’s control; (c) to make all demands, consents and waivers, or take any other action with respect to, the Collateral; (d) in Lender’s discretion to file any claim or take any other action or
proceedings, either in its own name or in the name of Borrower or otherwise, which Lender may reasonably deem necessary or appropriate to protect and preserve the right, title and interest of Lender in and to the Collateral; (e) endorse
Borrower’s name on any checks or other forms of payment or security; (f) sign Borrower’s name on any invoice or bill of lading for any account or drafts against account debtors; (g) make, settle, and adjust all claims under
Borrower’s insurance policies; (h) settle and adjust disputes and claims about the accounts directly with account debtors, for amounts and on terms Lender determines reasonable; (i) transfer the Collateral into the name of Lender or a
third party as the Code permits; and (j) to otherwise act with respect thereto as though Lender were the outright owner of the Collateral. 
 9.5 Lender’s Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then Lender may do any or all of the
following: (a) make payment of the same or any part thereof; or (b) obtain and maintain insurance policies of the type discussed in Section 6.8 of this Agreement, and take any action with respect to such policies as Lender
deems prudent. Any amounts paid or deposited by Lender shall constitute Lender’s Expenses, shall be immediately due and payable, shall bear interest at the Default Rate and shall be secured by the Collateral. Any payments made by Lender shall
not constitute an agreement by Lender to make similar payments in the future or a waiver by Lender of any Event of Default under this Agreement. Borrower shall pay all reasonable fees and expenses, including without limitation, Lender’s
Expenses, incurred by Lender in the enforcement or attempt to enforce any of the Obligations hereunder not performed when due. 
 9.6
Remedies Cumulative. Lender’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative. Lender shall have all other rights and remedies not inconsistent herewith as provided under the
Code, by law, or in equity. No exercise by Lender of one right or remedy shall be deemed an election, and no waiver by Lender of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Lender shall constitute a
waiver, election, or acquiescence by it. 
  

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 9.7 Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part
thereof, and the proceeds and the avails of any remedy hereunder (as well as any other amounts of any kind held by Lender, at the time of or received by Lender after the occurrence and during the continuance of an Event of Default hereunder) shall
be paid to and applied as follows: 
 (a) First, to the payment of out-of-pocket costs and expenses, including all amounts expended to
preserve the value of the Collateral, of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses, liability and advances, including reasonable legal expenses and
attorneys’ fees, incurred or made hereunder by Lender, including, without limitation, Lender’s Expenses; 
 (b) Second, to
the payment to Lender of the amount then owing or unpaid on the Loans for any accrued and unpaid interest, the amounts which would have otherwise come due under Section 2.3(b)(ii), if the Loans had been voluntarily prepaid, the principal
balance of the Loans, and all other Obligations with respect to the Loans (provided, however, if such proceeds shall be insufficient to pay in full the whole amount so due, owing or unpaid upon the Loans, then to the unpaid interest
thereon, then to the amounts which would have otherwise come due under Section 2.3(b)(ii), if the Loans had been voluntarily prepaid, then to the principal balance of the Loans, and then to the payment of other amounts then payable to Lender
under any of the Loan Documents); and 
 (c) Third, to the payment of the surplus, if any, to Borrower, its successors and assigns,
or to the Person lawfully entitled to receive the same. 
 9.8 Reinstatement of Rights. If Lender shall have proceeded to enforce any
right under this Agreement or any other Loan Document by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely, then and in every such case
(unless otherwise ordered by a court of competent jurisdiction), Lender shall be restored to its former position and rights hereunder with respect to the Property subject to the security interest created under this Agreement. 
 10. Waivers; Indemnification. 
 10.1
Demand; Protest. Borrower waives demand, protest, notice of protest, 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 at any time held by Lender on which Borrower may in any way be liable. 
 10.2 Lender’s Liability for Collateral. So long as Lender complies with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (a) the safekeeping of the Collateral;
(b) any loss or damage thereto occurring or arising in any manner or fashion from any cause other than Lender’s gross negligence or willful misconduct; (c) any diminution in the value thereof; or (d) any act or default of any
carrier, warehouseman, bailee, forwarding agency, or other Person whomsoever. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 
  

 29 

 10.3 Indemnification and Waiver. Whether or not the transactions contemplated hereby shall be
consummated: 
 (a) General Indemnity. Borrower agrees upon demand to pay or reimburse Lender for all liabilities, obligations and
out-of-pocket expenses, including Lender’s Expenses and reasonable fees and expenses of counsel for Lender from time to time arising in connection with the enforcement or collection of sums due under the Loan Documents, and in connection with
any amendment or modification of the Loan Documents or any “work-out” in connection with the Loan Documents. Borrower shall indemnify, reimburse and hold Lender, and each of its respective successors, assigns, agents, attorneys, officers,
directors, equity holders, servants, agents and employees (each an “Indemnified Person”) harmless from and against all liabilities, losses, damages, actions, suits, demands, claims of any kind and nature (including claims relating
to environmental discharge, cleanup or compliance), all costs and expenses whatsoever to the extent they may be incurred or suffered by such Indemnified Person in connection therewith (including reasonable attorneys’ fees and expenses), fines,
penalties (and other charges of any applicable Governmental Authority), licensing fees relating to any item of Collateral, damage to or loss of use of property (including consequential or special damages to third parties or damages to
Borrower’s property), or bodily injury to or death of any person (including any agent or employee of Borrower) (each, a “Claim”), directly or indirectly relating to or arising out of the use of the proceeds of the Loans or
otherwise, the falsity of any representation or warranty of Borrower or Borrower’s failure to comply with the terms of this Agreement or any other Loan Document. The foregoing indemnity shall cover, without limitation, (i) any Claim in
connection with a design or other defect (latent or patent) in any item of equipment or product included in the Collateral, (ii) any Claim for infringement of any patent, copyright, trademark or other intellectual property right, (iii) any
Claim resulting from the presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Materials on the premises owned, occupied or leased by Borrower, including any Claims asserted or arising under
any Environmental Law, (iv) any Claim for negligence or strict or absolute liability in tort, or (v) any Claim asserted as to or arising under any Account Control Agreement or any Landlord Agreement; provided, however,
Borrower shall not indemnify Lender for any liability incurred by Lender as a direct and sole result of Lender’s gross negligence or willful misconduct. Such indemnities shall continue in full force and effect, notwithstanding the expiration or
termination of this Agreement. Upon Lender’s written demand, Borrower shall assume and diligently conduct, at its sole cost and expense, the entire defense of Lender, each of its members, partners, and each of their respective, agents,
employees, directors, officers, equity holders, successors and assigns against any indemnified Claim described in this Section 10.3(a). Borrower shall not settle or compromise any Claim against or involving Lender without first obtaining
Lender’s written consent thereto, which consent shall not be unreasonably withheld. 
 (b) Waiver. NOTWITHSTANDING ANYTHING TO
THE CONTRARY CONTAINED IN THIS AGREEMENT OR ANYWHERE ELSE, BORROWER AGREES THAT IT SHALL NOT SEEK FROM LENDER UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES. 
  

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 (c) Survival; Defense. The obligations in this Section 10.3 shall survive payment of
all other Obligations pursuant to Section 12.8. At the election of any Indemnified Person, Borrower shall defend such Indemnified Person using legal counsel satisfactory to such Indemnified Person in such Person’s reasonable
discretion, at the sole cost and expense of Borrower. All amounts owing under this Section 10.3 shall be paid within thirty (30) days after written demand. 
 11. Notices. Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement
entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by certified mail, postage
prepaid, return receipt requested, or by prepaid nationally recognized overnight courier, as the case may be, at their respective addresses set forth below: 
  

			
	 If to Borrower:
	  	RF Magic, Inc.
		  	10182 Telesis Court, 4th Floor
		  	San Diego, CA 92121
		  	Attention: David Lyle, CFO
		  	Ph: (858) 546-2401 x309
	 If to Lender:
	  	Horizon Technology Funding Company LLC
		  	76 Batterson Park Road
		  	Farmington, CT 06032
		  	Attention: Legal Department
		  	Ph: (860) 676-8654

 The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other. 
 12. General Provisions. 
 12.1 Successors and Assigns. This Agreement and the Loan Documents shall bind and inure to the benefit of the respective successors and permitted
assigns of each of the parties; provided, however, neither this Agreement nor any rights hereunder may be assigned by Borrower without Lender’s prior written consent, which consent may be granted or withheld in Lender’s sole
discretion. Lender shall have the right without the consent of or notice to Borrower to sell, transfer, assign, negotiate, or grant participations in all or any part of, or any interest in Lender’s rights and benefits hereunder, except that
Lender may not sell, transfer, assign, negotiate or grant participations in all or any part of, or any interest in Lender’s rights and benefits hereunder to any competitor of Borrower unless an Event of Default shall, have occurred and be
continuing and Borrower shall have accelerated the Obligations. Lender may disclose the Loan Documents and any other financial or other information relating to Borrower or any Subsidiary to any potential participant or assignee of any of the Loans,
provided that such participant or assignee agrees to protect the confidentiality of such documents and information using the same measures that it uses to protect its own confidential information. 
 12.2 Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement. 
  

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 12.3 Severability of Provisions. Each provision of this Agreement shall be several from every
other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 12.4 Entire
Agreement; Construction; Amendments and Waivers. 
 (a) Entire Agreement. This Agreement and each of the other Loan Documents
dated as of the date hereof, taken together, constitute and contain the entire agreement between Borrower and Lender and supersede any and all prior agreements, negotiations, correspondence, understandings and communications between the parties,
whether written or oral, respecting the subject matter hereof. Borrower acknowledges that it is not relying on any representation or agreement made by Lender or any employee, attorney or agent thereof, other than the specific agreements set forth in
this Agreement and the Loan Documents. 
 (b) Construction. This Agreement is the result of negotiations between and has been
reviewed by each of Borrower and Lender executing this Agreement as of the date hereof and their respective counsel; accordingly, this Agreement shall be deemed to be the product of the parties hereto, and no ambiguity shall be construed in favor of
or against Borrower or Lender. Borrower and Lender agree that they intend the literal words of this Agreement and the other Loan Documents and that no parol evidence shall be necessary or appropriate to establish Borrower’s or Lender’s
actual intentions. 
 (c) Amendments and Waivers. Any and all discharges or waivers of, or consents to any departures from any
provision of this Agreement or of any of the other Loan Documents shall not be effective without the written consent of Lender. Any and all amendments and modifications of this Agreement or of any of the other Loan Documents shall not be effective
without the written consent of Lender and Borrower. Any waiver or consent with respect to any provision of the Loan Documents shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or
demand on Borrower in any case shall entitle Borrower to any other or farther notice or demand in similar or other circumstances. Any amendment, modification, waiver or consent affected in accordance with this Section 12.4 shall be binding upon
Lender and on Borrower. 
 12.5 Reliance by Lender. All covenants, agreements, representations and warranties made herein by Borrower
shall be deemed to be material to and to have been relied upon by Lender, notwithstanding any investigation by Lender. 
 12.6 No Set-Offs
by Borrower. All sums payable by Borrower pursuant to this Agreement or any of the other Loan Documents shall be payable without notice or demand and shall be payable in United States Dollars without set-off or reduction of any manner
whatsoever. 
 12.7 12.7 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on
separate counterparts (including signatures delivered by facsimile or other electronic means), each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the
same Agreement. 
  

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 12.8 Survival. All covenants, representations and warranties made in this Agreement shall continue
in full force and effect so long as any Obligations (other than indemnity obligations which have not arisen prior to the date of repayment in full of all other Obligations) or commitment to fund remain outstanding. The obligations of Borrower to
indemnify Lender with respect to the expenses, damages, losses, costs and liabilities described in Section 10.3 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Lender
have run. 
 13. Relationship of Parties. Borrower and Lender acknowledge, understand and agree that the relationship between
Borrower, on the one hand, and Lender, on the other, is, and at all time shall remain solely that of a borrower and lender. Lender shall not under any circumstances be construed to be a partner or a joint venturer of Borrower or any of its
Affiliates; nor shall Lender under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with Borrower or any of its Affiliates, or to owe any fiduciary duty to Borrower or any of its Affiliates.
Lender does not undertake or assume any responsibility or duty to Borrower or any of its Affiliates to select, review, inspect, supervise, pass judgment upon or otherwise inform Borrower or any of its Affiliates of any matter in connection with its
or their Property, any Collateral held by Lender or the operations of Borrower or any of its Affiliates. Borrower and each of its Affiliates shall rely entirely on their own judgment with respect to such matters, and any review, inspection,
supervision, exercise of judgment or supply of information undertaken or assumed by Lender in connection with such matters is solely for the protection of Lender and neither Borrower nor any Affiliate is entitled to rely thereon. 
 14. Confidentiality. All information (other than periodic reports filed by Borrower with the Securities and Exchange Commission) disclosed by
Borrower to Lender in writing or through inspection pursuant to this Agreement shall be considered confidential, except for information that (a) was known to the public prior to disclosure by Borrower under this Agreement, (b) becomes known to the
public through no fault of Lender, (c) is disclosed to Lender by a third party having a legal right to make such disclosure, or (d) is independently developed by Lender. Lender agrees to use the same degree of care to safeguard and prevent
disclosure of such confidential information as Lender uses with its own confidential information, but in any event no less than a reasonable degree of care. Lender shall not disclose such information to any third party (other than to Lender’s
members, partners, attorneys, governmental regulators, or auditors, or to Lender’s subsidiaries and affiliates and prospective transferees and purchasers of the Loans, all subject to the same confidentiality obligation set forth herein or as
required by law, regulation, subpoena or other order to be disclosed) and shall use such information only for purposes of evaluation of its investment in Borrower and the exercise of Lender’s rights and the enforcement of its remedies under
this Agreement and the other Loan Documents. The obligations of confidentiality shall not apply to any information that (a) was known to the public prior to disclosure by Borrower under this Agreement, (b) becomes known to the public through no
fault of Lender, (c) is disclosed to Lender by a third party having a legal right to make such disclosure, or (d) is independently developed by Lender. Notwithstanding the foregoing, Lender’s agreement of confidentiality shall not apply if
Lender has acquired indefeasible title to any Collateral or in connection with any enforcement or exercise of Lender’s rights and remedies under this Agreement following an Event of Default, including the enforcement of Lender’s security
interest in the Collateral. 
  

 33 

 15. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CONNECTICUT, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF BORROWER AND LENDER HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF
CONNECTICUT. BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS,
TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. 
 [Remainder of page intentionally left blank.] 

 

 34 

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

					
	BORROWER:	 	
		
	RF MAGIC, INC.	 	
			
	By:	 	 /s/ Mark H. Foley
	 	
	Name:	 	Mark H. Foley	 	
	Title:	 	CEO & President	 	
		
	LENDER:	 	
		
	HORIZON TECHNOLOGY FUNDING COMPANY LLC	 	
	By: Horizon Technology Finance, LLC, its sole member	 	
			
	By:	 	 /s/ Robert D. Pomeroy, Jr.
	 	
	Name:	 	Robert D. Pomeroy, Jr.	 	
	Title:	 	Managing Member	 	

  

 35 

 EXHIBIT B 
 FUNDING CERTIFICATE 
 The undersigned, being the duly elected and acting
                                        
     of RF MAGIC, INC., a Delaware corporation (“Borrower”), does hereby certify to HORIZON TECHNOLOGY FUNDING COMPANY LLC (the “Lender”) in connection with that certain Venture Loan and Security Agreement
dated as of October         , 2006 by and between Borrower and Lender (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement)
that: 
 1. The representations and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan
Documents are true and correct in all material respects as of the date hereof. 
 2. No event or condition has occurred and is continuing
that would constitute a Default or an Event of Default under the Loan Agreement or any other Loan Document. 
 3. Borrower is in compliance
with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement. 
 4. All conditions referred to in
Section 3 of the Loan Agreement to the making of the Loan to be made on or about the date hereof have been satisfied. 
 5. No
material adverse change in the general affairs, management, results of operations, condition (financial or otherwise) or prospects of Borrower, whether or not arising from transactions in the ordinary course, of business, has occurred. 

6. The proceeds for Loan [        ] should be disbursed as follows: 
  

				
	 Disbursement from Lender:
	  		
	 Loan Amount
	  	$	                        
	 Less:
	  		
	 Legal Fees
	  	$	 
	 Balance of Commitment Fee
	  	$	 
	 Net Proceeds due from Lender:
	  	$	 

  

 7. The aggregate net proceeds of Loan [        ] in the amount of
$                                         
shall be transferred to Borrower’s account as follows: 
  

			
	 PAYABLE TO:
	  	 FC - SILICON VALLEY BANK
 3003 TASMAN DRIVE

SANTA CLARA, CA 95054, USA

		
	 ABA/ROUTING #:
	  	121140399
		
	 FOR CREDIT OF:
	  	RF Magic, Inc.
		
	 ACCOUNT #:
	  	3300244945
		
	Dated:                     , 200    	  	
		
		  	 BORROWER:
 RF MAGIC, INC.

		
		  	By:                                      
                                        
          
		
		  	Name:                                     
                                        
     
		
		  	Title:                                     
                                        
        

  

 EXHIBIT C 
 SECURED PROMISSORY NOTE 
 (Loan __) 
  

	 $____________________ 
	 Dated: [Date] 

 FOR VALUE RECEIVED, the undersigned, RF MAGIC, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to the order of HORIZON TECHNOLOGY FUNDING COMPANY LLC, a Delaware limited liability company
(“Lender”) the principal amount of _______________ Dollars ($__________) or such lesser amount as shall equal the outstanding principal balance of the Loan [ ] (the “Loan”) made to Borrower by Lender pursuant
to the Loan Agreement (as defined below), and to pay all other amounts due with respect to the Loan on the dates and in the amounts set forth in the Loan Agreement. 
 Interest on the principal amount of this Note from the date of this Note shall accrue at the Loan Rate or, if applicable, the Default Rate. The Loan Rate for this Note is __% per annum based on a year of twelve 30-day
months. If the Funding Date is not the first day of the month, interim interest accruing from the Funding Date through the last day of that month shall be paid on the first calendar day of the next calendar month. Commencing _______, 200_, through
and including ______________, 200_, on the first day of each month (each an “Interest Payment Date”) Borrower shall make payments of accrued interest only on the outstanding principal amount of the Loan in the amount of ___________
Dollars ($_________). Commencing on ______________, 200_, and continuing on the first day of each month thereafter (each a “Principal and Interest Payment Date” and, collectively with each Interest Payment Date, each a
“Payment Date”), Borrower shall make to Lender thirty (30) equal payments of principal plus accrued interest on the then outstanding principal amount due hereunder each in the amount of ____________ Dollars ($____________). If
not sooner paid, all outstanding amounts hereunder and under the Loan Agreement shall become due and payable on _________________. 
 Principal, interest and all other amounts due with respect to the Loan, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement. The principal amount of this Note and the interest rate
applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note. 
 This Note is referred to in, and is entitled to the benefits of, the Venture Loan and Security Agreement dated as of [Date] by and between Borrower and
Lender (the “Loan Agreement”). The Loan Agreement, among other things, (a) provides for the making of a secured Loan to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain
stated events. 
 This Note may not be prepaid, except as set forth in Section 2.3 of the Loan Agreement. 
 This Note and the obligation of Borrower to repay the unpaid principal amount of the Loan, interest on the Loan and all other amounts due Lender under
the Loan Agreement is secured under the Loan Agreement. 
  

 Presentment for payment, demand, notice of protest and all other demands and notices of any kind in
connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 
 Borrower shall pay all reasonable
fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. This Note shall be governed
by, and construed and interpreted in accordance with, the laws of the State of Connecticut. 
 IN WITNESS WHEREOF, Borrower has caused this
Note to be duly executed by one of its officers thereunto duly authorized on the date hereof. 
 BORROWER: 
 RF MAGIC, INC. 
  

			
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 

 EXHIBIT D 
 ITEMS TO BE COVERED BY OPINION OF BORROWER’S COUNSEL 
 1. Borrower is a corporation, duly organized,
validly existing and in good standing under the laws of the State of Delaware, and is duly qualified and authorized to do business in the State of California. 
 2. Borrower has the full corporate power, authority and legal right, and has obtained all necessary approvals, consents and given all notices to execute and deliver the Loan Documents and perform the terms thereof.

 3. The Loan Documents have been duly authorized, executed and delivered by Borrower and constitute valid, legal and binding agreements,
and are enforceable in accordance with their terms. 
 4. To our knowledge, there is no action, suit, audit, investigation, proceeding or
patent claim pending or threatened against Borrower in any court or before any governmental commission, agency, board or authority which might have a material adverse effect on the business, condition or operations of Borrower or the ability of
Borrower to perform its obligations under the Loan Documents. 
 5. The Shares (as defined in the Warrant) issuable pursuant to exercise or
conversion of the Warrant have been duly authorized and reserved for issuance by Borrower and, when issued in accordance with the terms thereof, will be validly issued, fully paid and nonassessable. 
 6. The shares of Common Stock issuable upon conversion of the Shares have been duly authorized and reserved and, when issued in accordance with the terms
of Borrower’s [Articles/Certificate] of Incorporation, as amended, will be validly issued, fully paid and nonassessable. 
 7. The
execution and delivery of the Loan Documents are not, and the issuance of the Shares upon exercise of the Warrant in accordance with the terms thereof will not be, inconsistent with Borrower’s [Articles/Certificate] of Incorporation, as
amended, or Bylaws, do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to Borrower, and do not and will not conflict with or contravene any provision of, or constitute a default under, any
indenture, mortgage, contract or other agreement or instrument of which Borrower is a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration or filing with or the taking of any action in
respect of or by, any federal, state or local government authority or agency or other person, except for the filing of notices pursuant to federal and state securities laws, which filings will be effected by the time required thereby. 
  

 EXHIBIT E 
 FORM OF OFFICER’S CERTIFICATE 
 TO: HORIZON TECHNOLOGY FUNDING COMPANY LLC 
 Reference is made to the Venture Loan and Security Agreement dated as of October __, 2006 (as it may be amended from time to time, the “Loan
Agreement”) by and between RF MAGIC, INC. (“Borrower”) and HORIZON TECHNOLOGY FUNDING COMPANY LLC (“Lender”). Unless otherwise defined herein, capitalized terms have the meanings given such terms in the
Loan Agreement. 
 The undersigned Responsible Officer of Borrower hereby certifies to Lender that: 
  

	1.	No Event of Default or Default has occurred under the Loan Agreement. (If a Default or Event of Default has occurred, specify the nature and extent thereof and the action Borrower
has taken or proposes to take with respect thereto.) 

  

	2.	The information provided in Section 1 of the Disclosure Schedule is currently true and accurate, except as noted below. 

  

	3.	Borrower is in compliance with the provisions of Sections 4, 6 and 7 of the Loan Agreement, except as noted below. 

  

	4.	Attached herewith are the [monthly financial statements pursuant to Section 6.3(a) of the Loan Agreement/annual audited financial statements pursuant to Section 6.3(b) of
the Loan Agreement]. These have been prepared in accordance with GAAP and are consistent from one period to the next except as noted below. 

 NOTES TO ABOVE CERTIFICATIONS: 
  

	 	

  

	 	

  

	 	

  

			
	 BORROWER:
 RF MAGIC,
INC.

		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 

 CONSENT AND WAIVER AGREEMENT 
 This CONSENT AND WAIVER AGREEMENT (this “Agreement”) is
entered into this 16th day of October, 2007 by and between RF MAGIC, INC., a Delaware corporation (“Borrower”), ENTROPIC COMMUNICATIONS,
INC., a Delaware corporation (“Entropic”), and HORIZON TECHNOLOGY FUNDING COMPANY LLC, a Delaware limited liability company
(“Lender”). 
 WITNESSETH 
 WHEREAS, Borrower and Lender are parties to that certain Loan and Security Agreement and Amendment to Existing Loan Agreement dated as of October 6, 2006 (the “Loan Agreement”).

 WHEREAS, on April 9, 2007, Borrower entered into an Agreement and Plan of Merger and Reorganization with Entropic, Raptor Acquisition
Sub Inc., a Delaware corporation and a wholly owned subsidiary of Entropic (“Merger Sub”) and the stockholder’s representative identified therein, pursuant to which Merger Sub was merged with and into Borrower, with
Borrower surviving the merger as a wholly-owned subsidiary of Entropic. 
 WHEREAS, Entropic intends to complete an underwritten initial
public offering of its Common Stock (the “Offering”), in which Lender intends to participate as a selling stockholder. 
 WHEREAS, Borrower and Entropic have requested that Lender consent to the waiver of the prepayment penalty under the Loan Agreement under specified circumstances in connection with the Offering, and Lenders are willing to consent to such
waiver, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth herein. 
 NOW THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein and in the Loan Agreement, the parties agree as follows: 
 Section 1. Definitions. Capitalized terms used herein without definition and defined in the Loan Agreement are used herein as defined
therein. 
 Section 2. Consent and Waiver. Lender hereby consents and agrees to the waiver of Borrower’s obligation to pay
the amount set forth in Section 2.3(b)(ii) of the Loan Agreement if (i) the Loans are prepaid in connection with or after the Offering and (ii) Lender or the holder of the Warrant receives net cash proceeds per share from the Offering
equal to at least two times the Warrant Price (as defined in the Warrant). The consent and waiver set forth herein shall not be deemed or otherwise construed to constitute a consent or waiver with respect to any provision of the Loan Agreement in
connection with any other transaction. 
 Section 3. Representations and Warranties. To induce Lender to enter into this
Agreement, Borrower and Entropic hereby represent and warrant to Lender as follows: 
  

 (a) Immediately after giving effect to this Agreement (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such
date), and (b) no Event of Default has occurred and is continuing; and 
 (b) Entropic and Borrower have the power and due authority to
execute and deliver this Agreement. 
 Section 4. Reference To And Effect Upon The Loan Agreement. 
 (a) Except as specifically provided herein, the Loan Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified
and reaffirmed. 
 (b) The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or
remedy of Lender under the Loan Agreement or any Loan Document, nor constitute a waiver of any provision of the Loan Agreement or any Loan Document, except as specifically set forth herein. This Agreement is not a novation and the terms and
conditions of this Agreement shall be in addition to and supplemental to all terms and conditions set forth in the Loan Documents. In the event of any conflict or inconsistency between this Agreement and the terms of such documents, the terms of
this Agreement shall be controlling, but such document shall not otherwise be affected or the rights therein impaired 
 Section 5.
Effectiveness. This Agreement shall be deemed effective upon the due execution and delivery to Lender of this Agreement by each party hereto. 
 Section 6. Governing Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the state of California, without regard to principles of conflicts of law. 

Section 7. Headings. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purposes. 
 Section 8. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, but all such counterparts shall constitute one and the same instrument. 
 [SIGNATURE PAGE FOLLOWS] 
  

 IN WITNESS WHEREOF, the parties hereto hereupon set their hands as of the date first written above.

  

			
	RF MAGIC, INC., as Borrower
		
	By:	 	/s/ Kurt Noyes
	Name:	 	Kurt Noyes
	Title:	 	Chief Financial Officer
	
	ENTROPIC COMMUNICATIONS, INC. 
		
	By:	 	/s/ Kurt Noyes
	Name:	 	Kurt Noyes
	Title:	 	Vice President Finance
	
	 HORIZON TECHNOLOGY FUNDING COMPANY LLC, as Lender
 by: Horizon Technology Finance, LLC, its member and agent

		
	By:	 	/s/ Robert D. Pomeroy, Jr.
	Name:	 	Robert D. Pomeroy, Jr.
	Title:	 	Managing MemberForm of Registration Rights Agreement

 Exhibit 4.3 
  

 FORM OF 
 REGISTRATION RIGHTS AGREEMENT 
 OF 
 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC 
 Dated as of
                                        , 2007

  

  

 Table of Contents 
  

					
	 	  	 	  	Page
	 ARTICLE I

	 DEFINITIONS AND OTHER MATTERS

			
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	Definitions Generally	  	6
	
	 ARTICLE II

	 REGISTRATION RIGHTS

			
	 Section 2.1
	  	Exchange Registration	  	6
	 Section 2.2
	  	Demand Registration	  	7
	 Section 2.3
	  	Shelf Registration	  	8
	 Section 2.4
	  	Suspension of Use of Registration Statement	  	9
	 Section 2.5
	  	Piggyback Registration	  	10
	 Section 2.6
	  	Lock-Up Agreements	  	12
	 Section 2.7
	  	Registration Procedures	  	12
	 Section 2.8
	  	Indemnification by the Company	  	15
	 Section 2.9
	  	Indemnification by Registering Covered Persons	  	16
	 Section 2.10
	  	Conduct of Indemnification Proceedings	  	17
	 Section 2.11
	  	Contribution	  	17
	 Section 2.12
	  	Participation in Underwritten Public Offering	  	18
	 Section 2.13
	  	Other Indemnification	  	18
	 Section 2.14
	  	Cooperation by the Company	  	18
	 Section 2.15
	  	Parties in Interest	  	18
	 Section 2.16
	  	Acknowledgement Regarding the Company	  	18
	 Section 2.17
	  	Mergers, Recapitalizations, Exchanges or Other Transactions Affecting Registrable Securities	  	19
	
	 ARTICLE III

	 MISCELLANEOUS

			
	 Section 3.1
	  	Term of the Agreement; Termination of Certain Provisions	  	19
	 Section 3.2
	  	Amendments; Waiver	  	19
	 Section 3.3
	  	Governing Law	  	20
	 Section 3.4
	  	Submission to Jurisdiction; Waiver of Jury Trial	  	20
	 Section 3.5
	  	Notices	  	21
	 Section 3.6
	  	Severability	  	22
	 Section 3.7
	  	Specific Performance	  	22
	 Section 3.8
	  	Assignment; Successors	  	22
	 Section 3.9
	  	No Third-Party Rights	  	22
	 Section 3.10
	  	Section Headings	  	22

  

 i 

					
	 Section 3.11
	  	Execution in Counterparts	  	22
			
	 Appendix A
	  	Covered Persons	  	
			
	 Appendix B
	  	Covered Person Questionnaire	  	

  

 ii 

 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT (including Appendix A hereto, as such Appendix A may be amended from time to time pursuant to the provisions hereof, this “Agreement”), is made and entered into as of
                            , 2007, by and among Och-Ziff Capital Management Group LLC, a Delaware limited
liability company (the “Company”), and the Covered Persons (defined below) from time to time party hereto. 
 WHEREAS, the Covered Persons
are holders of Och-Ziff Operating Group A Units (defined below), which, subject to certain restrictions and requirements, are exchangeable at the option of the holder thereof with the Och-Ziff Operating Group (defined below), pursuant to the
Exchange Agreement (defined below) for Class A Shares (defined below) or, at the option of the Och-Ziff Operating Group, the cash equivalent thereof; and 
 WHEREAS, the Company desires to provide the Covered Persons with registration rights with respect to Class A Shares that may be delivered in exchange for their Och-Ziff Operating Group A Units and any other Class A
Shares they may otherwise hold from time to time. 
 NOW, THEREFORE, in consideration of the premises and of the mutual agreements, covenants and
provisions herein contained, the parties hereto agree as follows: 
  
 ARTICLE I

 DEFINITIONS AND OTHER MATTERS 
 Section 1.1
Definitions. Capitalized terms used in this Agreement without other definition shall, unless expressly stated otherwise, have the meanings specified in this Section 1.1: 
 “Affiliate” means any other person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common
control of such first person and “control” for these purposes means the direct or indirect power to direct or cause the direction of the management and policies of another person, whether by operation of law or regulation, through
ownership of securities, as trustee or executor or in any other manner. 
 “Agreement” has the meaning ascribed to such term in the
Recitals. 
 “Beneficial owner” has the meaning set forth in Rule 13d-3 under the Exchange Act. 
 “Board” means the Board of Directors of the Company. 

 “Chairman” shall mean the Chairman of the Demand Committee, who shall be the Chairman of the
Partner Management Committee as determined pursuant to the applicable Och-Ziff Operating Group Agreements. Initially, Daniel Och shall serve as Chairman. 
 “Class A Shares” means Class A shares representing limited liability company interests in the Company. 
 “Class
B Shares” means Class B shares representing limited liability company interests in the Company. 
 “Company” has the meaning
ascribed to such term in the Recitals. 
 “Covered Person” means those persons from time to time listed on Appendix A hereto, and all
persons who may become parties to this Agreement and whose name is required to be listed on Appendix A hereto, in each case in accordance with the terms hereof. 
 “Covered Och-Ziff Operating Group A Units” means, with respect to a Covered Person, such Covered Person’s Och-Ziff Operating Group A Units. 
 “Demand Committee” shall mean a committee consisting of the individuals that are from time to time members of the Partner Management Committee as
determined pursuant to the applicable Och-Ziff Operating Group Agreements. The Chairman of the Demand Committee shall be the same as the Chairman of the Partner Management Committee, and the Chairman of the Demand Committee shall have the sole and
exclusive right and authority to take any action (including, without limitation, the exercise of any demand or request for registration and the consent to any amendment of this Agreement) pursuant to this Agreement on behalf of the Demand Committee,
provided, however, that if and to the extent that at any time no Chairman of the Partner Management Committee exists and, therefore, no Chairman of the Demand Committee exists, any such action may be taken by a simple majority of the
members of the Demand Committee. In addition, on and after the fifth anniversary of the date of this Agreement, any such action may be taken by the Chairman of the Demand Committee or by a simple majority of the Demand Committee (whether or not the
Chairman, if any, votes in favor of such action). 
 “Demand Notice” has the meaning ascribed to such term in Section 2.2(a).

 “Demand Registration” has the meaning ascribed to such term in Section 2.2(a). 
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
  

 2 

 “Exchange Agreement” means the exchange agreement dated as of the date hereof among the Company,
each of the Och-Ziff Operating Group entities and the limited partners of each Och-Ziff Operating Group entity, as amended from time to time. 
 “Exchange Registration” has the meaning ascribed to such term in Section 2.1(a). 
 “FINRA” means the
Financial Industry Regulatory Authority. 
 “Governmental Authority” means any national, local or foreign (including U.S. federal,
state or local) or supranational (including European Union) governmental, judicial, administrative or regulatory (including self-regulatory) agency, commission, department, board, bureau, entity or authority of competent jurisdiction. 
 “Indemnified Parties” has the meaning ascribed to such term in Section 2.8. 
 “Indemnifying Party” has the meaning ascribed to such term in Section 2.10. 
 “Maximum Demand Offering Size” has the meaning ascribed to such term in Section 2.2(e). 
 “Maximum Participation Amount” has the meaning ascribed to such term in Section 2.5(a). 
 “Maximum Piggyback Offering Size” has the meaning ascribed to such term in Section 2.5(b). 
 “New York Courts” has the meaning ascribed to such term in Section 3.4. 
 “Och-Ziff” means the Company and its consolidated subsidiaries, including the Och-Ziff Operating Group. 
 “Och-Ziff Operating Group” means, collectively, persons directly controlled by Och-Ziff Holding Corporation, a Delaware corporation, or Och-Ziff
Holding LLC, a Delaware limited liability company, during the term of this Agreement. As of the date hereof, the Och-Ziff Operating Group is comprised of OZ Management LP, a Delaware limited partnership, OZ Advisors LP, a Delaware limited
partnership and OZ Advisors II LP, a Delaware limited partnership. 
  

 3 

 “Och-Ziff Operating Group Agreements” means, collectively, the limited partnership agreements and
other organizational documents of each of the entities within the Och-Ziff Operating Group, as the same may be amended or implemented from time during the term of this Agreement. 
 “Och-Ziff Operating Group A Units” means, collectively, the units designated as the “Class A common units” representing limited
partnership interests in each of the entities within the Och-Ziff Operating Group issued under the applicable Och-Ziff Operating Group Agreement on or prior to the date hereof. 
 “Partner Management Committee” shall mean the Partner Management Committee of each Och-Ziff Operating Group entity as it may be constituted from
time to time in accordance with the applicable Och-Ziff Operating Group Agreement and, which, as of the date hereof, consists of Messrs. Och, Windreich, Frank, Cohen, Varga, Kelly and Brown, with Mr. Och serving as Chairman. 
 “Permitted Transferee” means any transferee of an Och-Ziff Operating Group A Unit after the date hereof, the transfer of which was permitted by
the Och-Ziff Operating Group Agreements. 
 “Piggyback Registrable Securities” means Registrable Securities then held by Covered
Persons or to be held by Covered Persons upon an exchange pursuant to the Exchange Agreement occurring in connection with a Piggyback Registration hereunder. 
 “Registering Covered Person” has the meaning ascribed to such term in Section 2.7(a). 
 “Registrable
Securities” means Class A Shares that may be delivered in exchange for Och-Ziff Operating Group A Units or otherwise held by Covered Persons from time to time. For purposes of this Agreement, Registrable Securities shall cease to be
Registrable Securities when (i) a registration statement covering resales of such Registrable Securities has been declared effective under the Securities Act by the SEC and such Registrable Securities have been disposed of pursuant to such
effective Registration Statement or (ii) such Registrable Securities cease to be outstanding (or issuable upon exchange of Och-Ziff Operating Group A Units). Registrable Securities shall not include any such Class A Shares covered by an
Exchange Registration (as defined in Section 2.1(a)) and delivered in exchange for Och-Ziff Operating Group A Units held by persons who are not “affiliates” (as such term is defined in Rule 144 promulgated under the Securities Act) of
the Company. 
 “Registration Expenses” means any and all expenses incident to the performance of or compliance with any registration
or marketing of Registrable Securities, including all (i) SEC and securities exchange registration and filing fees, and all other fees and expenses payable in 

  

 4 

 
connection with the listing of securities on any securities exchange or automated interdealer quotation system, (ii) fees and expenses of compliance with any
securities or “blue sky” laws (including reasonable fees and disbursements of counsel in connection with “blue sky” qualifications of the securities registered), (iii) expenses in connection with the preparation, printing,
mailing and delivery of any registration statements, prospectuses and other documents in connection therewith and any amendments or supplements thereto, (iv) security engraving and printing expenses, (v) reasonable fees and disbursements
of counsel for Och-Ziff and customary fees and expenses for independent certified public accountants retained by Och-Ziff, (vi) reasonable fees and expenses of any special experts retained by Och-Ziff in connection with such registration,
(vii) reasonable fees, out-of-pocket costs and expenses of the Covered Persons, including one counsel for all of the Covered Persons participating in the offering selected by the Demand Committee, (viii) fees and expenses in connection
with any review by FINRA of the underwriting arrangements or other terms of the offering, and all fees and expenses of any “qualified independent underwriter,” including the fees and expenses of any counsel thereto, (ix) fees and
disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding any underwriting fees, discounts and commissions attributable to the sale of Registrable Securities, (x) costs of printing and producing any
agreements among underwriters, underwriting agreements, any “blue sky” or legal investment memoranda and any selling agreements and other documents in connection with the offering, sale or delivery of the Registrable Securities,
(xi) transfer agents’ and registrars’ fees and expenses and the fees and expenses of any other agent or trustee appointed in connection with such offering, (xii) expenses relating to any analyst or investor presentations or any
“road shows” undertaken in connection with the registration, marketing or selling of the Registrable Securities and (xiii) all out-of-pocket costs and expenses incurred by Och-Ziff or their appropriate officers in connection with
their compliance with Section 2.7(l). 
 “Resale Shelf Registration” has the meaning ascribed to such term in
Section 2.3(a). 
 “Resale Shelf Registration Statement” has the meaning ascribed to such term in Section 2.3(a).

 “SEC” means the Securities and Exchange Commission. 
 “Securities Act” means the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
 “Shelf Registration” has the meaning ascribed to such term in Section 2.2(c). 
 “Underwritten
Public Offering” means an underwritten public offering pursuant to an effective registration statement under the Securities Act. 
  

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 Section 1.2 Definitions Generally. Wherever required by the context of this Agreement, the singular shall
include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa, and references to any agreement, document or instrument shall be deemed to refer to such agreement, document or instrument as
amended, supplemented or modified from time to time. When used herein: 
 (a) the word “or” is not exclusive; 
 (b) the words “including,” “includes,” “included” and “include” are deemed to be followed by the words
“without limitation”; 
 (c) the terms “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision; 
 (d) the word
“person” means any individual, corporation, limited liability company, trust, joint venture, association, company, partnership or other legal entity or a government or any department or agency thereof or self-regulatory organization; and

 (e) all section, paragraph or clause references not attributed to a particular document shall be references to such parts of this
Agreement, and all exhibit, annex and schedule references not attributed to a particular document shall be references to such exhibits, annexes and schedules to this Agreement. 
 ARTICLE II 
 REGISTRATION RIGHTS 
 Section 2.1 Exchange Registration. 
 (a)
The Company may, in its sole discretion, elect to file and cause to be declared effective under the Securities Act by the SEC one or more registration statements on any appropriate form (the “Exchange Registration”) covering the
delivery by the Company or its subsidiaries, from time to time, to the Covered Persons of Class A Shares registered under the Securities Act in exchange for such Och-Ziff Operating Group A Units. 
 (b) If the Company elects to utilize an Exchange Registration, it shall give prompt notice of such election to the Demand Committee, which notice
shall include the anticipated filing date of the registration statement relating to such Exchange Registration. The notice referred to in this Section 2.1(b) may be revoked at any time. 
  

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 (c) If the Company elects to utilize an Exchange Registration, it shall be liable for and pay all
Registration Expenses in connection with any Exchange Registration, regardless of whether such registration is effected. 
 (d) The
Company shall have no obligation pursuant to this Section 2.1 to file an Exchange Registration, cause an Exchange Registration to be declared effective, maintain the effectiveness of an Exchange Registration or deliver Class A Shares to a
Covered Person pursuant to an Exchange Registration. 
 Section 2.2 Demand Registration. 
 (a) If at any time prior to the fifth anniversary of the date of consummation of the Company’s initial public offering the Company shall
receive a written request (a “Demand Notice”) from the Demand Committee that the Company effect the registration under the Securities Act of all or any portion of the Registrable Securities specified in the Demand Notice (a
“Demand Registration”), specifying the information set forth under Section 2.7(i), then the Company shall use its commercially reasonable efforts to effect, as expeditiously as reasonably practicable, subject to the
restrictions in Section 2.4, the registration under the Securities Act of the Registrable Securities for which the Demand Committee has requested registration under this Section 2.2, all to the extent necessary to permit the disposition
(in accordance with the intended methods thereof as specified) of such Registrable Securities. If the Demand Committee elects to effect a Demand Registration, the provisions of Section 2.5(a) with respect to the notices required and the
determination of the number of Piggyback Registrable Securities to be included in a Piggyback Registration shall apply mutatis mutandis to such Demand Registration, but the inclusion of such Registrable Securities pursuant to this
Section 2.2 shall be treated as part of the Demand Registration and not as a Piggyback Registration hereunder. 
 (b) The Demand
Committee may request an unlimited number of Demand Registrations at any time prior to the fifth anniversary of the date of consummation of the Company’s initial public offering, subject to the limitations set forth in Section 2.4.

 (c) Subject to the availability of Form S-3 or any successor registration form to effect a Demand Registration, at the request of
the Demand Committee, any Demand Registration shall be a shelf registration effected in accordance with Rule 415 under the Securities Act or any successor or similar rule (a “Shelf Registration”). 
 (d) At any time, the Demand Committee may revoke such Demand Registration request by providing a notice to the Company revoking such request. The
Company shall be liable for and pay all Registration Expenses in connection with any Demand Registration, whether or not so revoked. 
  

 7 

 (e) At the request of the Demand Committee, the Demand Registration shall involve an Underwritten
Public Offering. If a Demand Registration involves an Underwritten Public Offering and the managing underwriter advises the Company and the Demand Committee that, in its view, the number of Registrable Securities and other securities requested to be
included in such registration exceeds the largest number of Class A Shares that can be sold without having a material adverse effect on such offering, including the price at which such shares can be sold (the “Maximum Demand Offering
Size”), the Company shall include in such Demand Registration, in the priority listed below, up to the Maximum Demand Offering Size: 
 (i) first, all Registrable Securities requested to be registered in the Demand Registration by the Demand Committee (allocated, if necessary with respect to Covered Persons, on a pro rata basis for the offering not to exceed
the Maximum Demand Offering Size); and 
 (ii) second, any securities proposed to be registered by the Company or any securities
proposed to be registered for the account of any other persons, with such priorities among them as the Company shall determine. 
 Section 2.3 Shelf
Registration. 
 (a) The Company shall prepare and file, at its own expense, not later than the fifth anniversary of the date of
consummation of the Company’s initial public offering, a “shelf” registration statement with respect to the resale of all Registrable Securities (“Resale Shelf Registration”) by the Covered Persons on an appropriate
form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act (the “Resale Shelf Registration Statement”) and permitting registration of such Registrable Securities for resale by such
Covered Persons in accordance with the methods of distribution elected by the Covered Persons pursuant to the questionnaire referred to in paragraph (b) below and set forth in the Resale Shelf Registration Statement. The Company shall use its
reasonable efforts to cause the Resale Shelf Registration Statement to be declared effective by the SEC as promptly as reasonably practicable after the filing thereof, and, subject to Sections 2.3(c) and 2.4, to keep such Resale Shelf Registration
Statement continuously effective for a period ending when all Class A Shares of the Company covered by the Resale Shelf Registration Statement are no longer Registrable Securities. The Demand Committee shall have the right to request that an
Underwritten Public Offering be effected off the Resale Shelf Registration at any time, subject to Section 2.4. Any such Underwritten Public Offering shall be subject to the same priority provisions as set forth in Section 2.2(e).

 (b) At the time the Resale Shelf Registration Statement is declared effective, each Covered Person that has delivered to the Company
a duly completed and executed questionnaire in the form set forth in Appendix B hereto on or prior to the date which is 

  

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ten business days prior to such time of effectiveness shall be named as a selling securityholder in the Resale Shelf Registration Statement and the related prospectus
in such a manner as to permit such Covered Person to deliver such prospectus to purchasers of Registrable Securities in accordance with applicable law. If required by applicable law, subject to the terms and conditions hereof, after effectiveness of
the Resale Shelf Registration Statement, the Company shall file a supplement to such prospectus or amendment to the Resale Shelf Registration Statement not less than once a quarter as necessary to name as selling securityholders therein any Covered
Persons that provide to the Company a duly completed and executed questionnaire in the form set forth in Appendix B hereto and shall use reasonable efforts to cause any post-effective amendment to such Resale Shelf Registration Statement filed for
such purpose to be declared effective by the SEC as promptly as reasonably practicable after the filing thereof. 
 (c) The Company
shall prepare and file such additional registration statements as necessary every three years (or such other period of time as may be required to maintain continuously effective shelf registration statements) and use its commercially reasonable
efforts to cause such registration statements to be declared effective by the SEC so that a shelf registration statement remains continuously effective, subject to Section 2.4, with respect to resales of Registrable Securities as and for the
periods required under Section 2.3(a), such subsequent registration statements to constitute a Resale Shelf Registration Statement hereunder. 
 Section 2.4 Suspension of Use of Registration Statement. 
 (a) Upon prior written notice to the Demand Committee and
the Covered Persons, the Company may postpone effecting a registration (or suspend the use of a Resale Shelf Registration Statement or Shelf Registration) pursuant to Section 2.2 and Section 2.3 on up to three occasions during any period
of six consecutive months for a reasonable time specified in the notice but not exceeding 120 days in the aggregate (which period may not be extended or renewed), if (i) the Board determines in good faith that effecting the registration (or
permitting sales under an effective registration) would materially and adversely affect an offering of securities of the Company; (ii) a Demand Registration or a Piggyback Registration (defined in Section 2.5(a) below) in which Covered
Persons were able to participate was completed within the prior 90 days; or (iii) the Company is in possession of material non-public information and the Board determines in good faith that the disclosure of such information during the period
specified in such notice would not be in the best interests of the Company. 
 (b) If all reports required to be filed by the Company
pursuant to the Exchange Act have not been filed by the required date without regard to any extension, or if the consummation of any business combination by the Company has occurred or is probable for purposes of Rule 3-05 or Article 11 of
Regulation S-X promulgated under the Securities Act or any similar successor rule, upon written notice thereof by the 

  

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Company to the Demand Committee and the Covered Persons, the rights of the Demand Committee and the Covered Persons to offer, sell or distribute any Registrable
Securities pursuant to any registration statement or to require the Company to take action with respect to the registration or sale of any Registrable Securities pursuant to any registration statement shall be suspended until the date on which the
Company has filed such reports or obtained and filed the financial information required by Rule 3-05 or Article 11 of Regulation S-X to be included or incorporated by reference, as applicable, in a registration statement, and the Company shall
notify the Demand Committee and the Covered Persons in writing as promptly as practicable when such suspension is no longer required. 
 Section 2.5
Piggyback Registration. 
 (a) Subject to any contractual obligations to the contrary, if the Company proposes at any time to
register any Class A Shares under the Securities Act (other than an Exchange Registration or a registration on Form S-8 or Form S-4, or any similar successor forms), whether or not for sale for its own account, the Company shall each such time
give prompt written notice at least 20 business days prior to the anticipated filing date of the registration statement relating to such registration to the Demand Committee, which notice shall offer the Demand Committee the opportunity to elect to
include in such registration statement the number of Registrable Securities held by Covered Persons as the Demand Committee may request (the “Maximum Participation Amount”), subject to the provisions of Section 2.5(b) (a
“Piggyback Registration”). 
 If the Demand Committee elects to effect a Piggyback Registration, the Company shall
give written notice of the registration statement relating to such Piggyback Registration to all Covered Persons at least 15 business days prior to such anticipated filing date (which date shall be specified in such notice), and any Covered Person
electing to participate in such Piggyback Registration shall notify the Demand Committee and the Company at least 10 business days prior to any such anticipated filing date of its election to include Registrable Securities in such Piggyback
Registration. Each Covered Person electing to so participate may elect to include, in the Piggyback Registration, Piggyback Registrable Securities in an amount up to that number of Piggyback Registrable Securities then held by such Covered Person
multiplied by a fraction, the numerator of which shall be the Maximum Participation Amount and the denominator of which shall be the aggregate number of Piggyback Registrable Securities then held by all Covered Persons electing to participate in
such Piggyback Registration; provided, that if any Covered Person elects not to participate in such Piggyback Registration up to its portion of the Maximum Participation Amount as provided above, the Demand Committee shall have the sole
discretion to permit the other Covered Persons to include in such Piggyback Registration additional Piggyback Registrable Securities in the same proportions as determined above; and provided further, that the participation of each Covered
Person in any such Piggyback Registration shall be reduced (without duplication) by the aggregate number of Registrable Securities sold by such Covered Person and its Permitted Transferees pursuant to Rule 144 under the Securities 

  

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Act or another exemption from the registration requirements of the Securities Act prior to the date of such Piggyback Registration. Any determination with respect to
the number of Registrable Securities that may be included in any Piggyback Registration by any Covered Person shall be made by the Demand Committee in accordance with this Agreement and such determination shall be final. 
 Upon the request of the Demand Committee, the Company shall use its commercially reasonable efforts to effect the registration under the Securities
Act of all Registrable Securities that the Company has been so requested to register by the Demand Committee, to the extent necessary to permit the disposition of such Registrable Securities to be so registered, provided, that: (i) if
such registration involves an Underwritten Public Offering, all such Covered Persons to be included in the Company’s registration must sell their Registrable Securities to the underwriters selected by the Company on the same terms and
conditions as apply to the Company or any other selling person, as applicable, and (ii) if, at any time after giving notice of its intention to register any securities pursuant to this Section 2.5(a) and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall determine for any reason not to register such securities, the Company shall give written notice to all such Covered Persons and, thereupon, shall be relieved of its
obligation to register any Registrable Securities in connection with such registration. No registration effected under this Section 2.5 shall relieve the Company of its obligations to effect a Demand Registration to the extent required by
Section 2.2 or a Resale Shelf Registration to the extent required by Section 2.3. The Company shall pay all Registration Expenses in connection with each Piggyback Registration. 
 (b) Subject to any contractual obligations to the contrary, if a Piggyback Registration involves an Underwritten Public Offering and the managing
underwriter advises the Company that, in its view, the number of Registrable Securities and other securities intended to be included in such registration exceeds the largest number of Class A Shares that can be sold without having a material
adverse effect on such offering, including the price at which such shares can be sold (the “Maximum Piggyback Offering Size”), the Company shall include in such registration, in the following priority, up to the Maximum Piggyback
Offering Size: 
 (i) first, the Company securities proposed to be registered for the account of the Company or, if such registration
is not for the sale of Company securities for the account of the Company but is to comply with the demand registration rights of third parties, the Company securities proposed to be registered pursuant to such demand registration rights of third
parties; and 
 (ii) second, all Registrable Securities permitted to be included in such registration by Covered Persons and any
securities requested to be included in such registration by other persons having rights to participate in such registration 

  

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(allocated on a pro rata basis if necessary for the offering not to exceed the Maximum Piggyback Offering Size). 
 (c) Notwithstanding any provision in this Section 2.5 or elsewhere in this Agreement, no provision relating to the registration of Registrable
Securities shall be construed as permitting any Covered Person to effect a transfer of securities that is otherwise prohibited by the terms of any agreement between such Covered Person and any Och-Ziff entity. 
 Section 2.6 Lock-Up Agreements. If any registration of Registrable Securities shall be effected in connection with an Underwritten Public Offering, neither
the Company nor any Covered Person shall offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or
otherwise transfer, dispose of or hedge, directly or indirectly, or enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of any Class A Shares or other securities of the
Company or any securities convertible into or exercisable or exchangeable for Class A Shares or other securities of the Company (except as part of such Underwritten Public Offering and except as otherwise permitted by any lock-up executed or
granted in connection with such Underwritten Public Offering) during the period beginning 14 days prior to the effective date of the applicable registration statement until the earlier of (i) such time as the Company and the lead managing
underwriter shall agree and (ii) 180 days following the pricing of the Underwritten Public Offering. 
 Section 2.7 Registration
Procedures. In connection with any request by the Demand Committee that Registrable Securities be registered pursuant to Sections 2.2 or 2.5 and in connection with any Resale Shelf Registration pursuant to Section 2.3, subject to the
provisions of such Sections and unless otherwise set forth in this Section 2.7, the paragraphs below shall be applicable: 
 (a)
The Company shall as expeditiously as reasonably practicable prepare and file with the SEC a registration statement on any form for which the Company then qualifies or that counsel for the Company shall deem appropriate and which form shall be
available for the registration of the Registrable Securities to be registered thereunder in accordance with the intended method of distribution thereof, and use its commercially reasonable efforts to cause such filed registration statement to become
and remain effective for a period of 30 days or such earlier date as, all of the Registrable Securities of the Covered Persons included in any such registration statement (each, a “Registering Covered Person”) shall have actually
been sold, or in the case of a Resale Shelf Registration and a Shelf Registration, the date on which all of the Registrable Securities of all Registering Covered Persons shall have actually been sold. 
 (b) Prior to filing a registration statement or prospectus or any amendment or supplement thereto, the Company shall, if requested, furnish to each
Registering Covered Person and each underwriter, if any, of the Registrable Securities covered by such 

  

 12 

 
registration statement copies of such registration statement as proposed to be filed. Upon and after the filing of such registration statement, the Company shall
furnish to such Registering Covered Person and underwriter, if any, (in each case in an electronic format, unless otherwise required by applicable law) such number of copies of such registration statement, each amendment and supplement thereto (in
each case including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such registration statement (including each preliminary prospectus and any summary prospectus) and any other prospectus filed under
Rule 424 or Rule 430A under the Securities Act and such other documents as such Registering Covered Person or underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Registering Covered
Person. Each Registering Covered Person shall have the right to request in writing that the Company modify any information contained in such registration statement, amendment and supplement thereto pertaining solely to such Registering Covered
Person and the Company shall use its commercially reasonable efforts to comply with such request; provided, however, that the Company shall not have any obligation to so modify any information if the Company reasonably expects that so doing
would cause the prospectus to contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading. 
 (c) After the filing of a registration statement, the Company shall (i) cause the related prospectus to be supplemented by any required
prospectus supplement, and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act, (ii) comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such
registration statement during the applicable period in accordance with the intended methods of disposition by the Registering Covered Person thereof set forth in such registration statement or supplement to such prospectus and (iii) promptly
notify in writing each Registering Covered Person holding Registrable Securities covered by such registration statement of any stop order issued or threatened by the SEC suspending the effectiveness of such registration statement or any state
securities commission and use commercially reasonable efforts to prevent the entry of such stop order or to obtain the withdrawal of such order if entered. 
 (d) To the extent any “free writing prospectus” (as defined in Rule 405 under the Securities Act) is used, the Company shall file with
the SEC any free writing prospectus that is required to be filed by the Company with the SEC in accordance with the Securities Act and retain any free writing prospectus not required to be filed. 
 (e) The Company shall use its commercially reasonable efforts to (i) register or qualify the Registrable Securities covered by such
registration statement under such other securities or “blue sky” laws of such jurisdictions in the United States as any Registering Covered Person holding such Registrable Securities or each underwriter, if any, reasonably (in light of
such Covered Person’s or underwriter’s intended plan of distribution) requests and (ii) cause such Registrable Securities to be registered with or 

  

 13 

 
approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts
and things that may be reasonably necessary or advisable to enable such Registering Covered Person to consummate the disposition of the Registrable Securities owned by such person; provided, that the Company shall not be required to
(A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 2.7(e), (B) subject itself to taxation in any such jurisdiction or (C) consent to general service
of process in any such jurisdiction. 
 (f) The Company shall promptly notify in writing each Registering Covered Person holding such
Registrable Securities covered by such registration statement or each underwriter, if any, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the occurrence of an event requiring the preparation
of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading and promptly prepare and make available to each such Registering Covered Person or underwriter, if any, and file with the SEC any such supplement or amendment. 

(g) The Demand Committee may select an underwriter or underwriters in connection with any Underwritten Public Offering made pursuant to a Demand
Registration or Resale Shelf Registration hereunder, and the Company shall retain such underwriter or underwriters as soon as reasonably practicable after such selection. In connection with any Underwritten Public Offering, the Company shall enter
into customary agreements (including an underwriting agreement in customary form) and take all such other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities in any such Underwritten
Public Offering, including if necessary the engagement of a “qualified independent underwriter” in connection with the qualification of the underwriting arrangements with FINRA. 
 (h) Subject to the execution of confidentiality agreements reasonably satisfactory in form and substance to the Company, upon the reasonable
request of the Demand Committee or underwriter (if any), the Company shall give to each Registering Covered Person, each underwriter (if any) and their respective counsel and accountants (i) reasonable and customary access to the books and
records of the Company and (ii) such opportunities to discuss the business of the Company with its directors, officers, counsel and the independent public accountants who have certified its financial statements, as shall be appropriate, in the
reasonable judgment of counsel to such Registering Covered Person or underwriter, to enable them to exercise their due diligence responsibility. 
 (i) Each Registering Covered Person registering securities under Sections 2.2, 2.3 or 2.5 shall promptly furnish in writing to the Company the information set forth in Appendix B and such other information regarding itself, the
distribution of the 

  

 14 

 
Registrable Securities as the Company may from time to time reasonably request and such other information as may be legally required or advisable in connection with
such registration, including such information necessary to correct any inaccuracies in information previously provided to the Company. 
 (j) Each Registering Covered Person and each underwriter, if any, agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 2.7(f), such Registering Covered Person or
underwriter shall forthwith discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such Registering Covered Person’s or underwriter’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 2.7(f), and, if so directed by the Company, such Registering Covered Person or underwriter shall deliver to the Company all copies, other than any permanent file copies then in such
Registering Covered Person’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. If the Company shall give such notice, the Company shall extend the period during which such
registration statement shall be maintained effective (including the period referred to in Section 2.7(a)) by the number of days during the period from and including the date of the giving of notice pursuant to Section 2.7(f) to the date
when the Company shall make available to such Registering Covered Person a prospectus supplemented or amended to conform with the requirements of Section 2.7(f). 
 (k) The Company shall use its commercially reasonable efforts to list all Registrable Securities covered by such registration statement on any
securities exchange or quotation system on which any of the Registrable Securities are then listed or traded. 
 (l) The Company shall
have appropriate officers of Och-Ziff (i) prepare and make presentations at any “road shows” and before analysts and rating agencies, as the case may be and (ii) otherwise use their commercially reasonable efforts to cooperate as
reasonably requested by the underwriters in the offering, marketing or selling of the Registrable Securities. 
 (m) The Company shall
cooperate with the Registering Covered Persons to facilitate the timely delivery of Registrable Securities to be sold, which shall not bear any restrictive legends, and to enable such Registrable Securities to be issued in such denominations and
registered in such names as such Registering Covered Persons may reasonably request at least two business days prior to the closing of any sale of Registrable Securities. 
 Section 2.8 Indemnification by the Company. In the event of any registration of any Registrable Securities of the Company under the Securities Act pursuant to this Article II, the Company will, and it hereby does,
indemnify and hold harmless, to the extent permitted by law, a Registering Covered Person, each Affiliate of such Registering Covered Person and their respective directors and officers or general and limited partners or members and managing

  

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members (including any director, officer, Affiliate, employee, agent and controlling person of any of the foregoing) and each other person, if any, who controls such
seller within the meaning of the Securities Act (collectively, the “Indemnified Parties”), from and against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred
in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact
contained in any registration statement or amendment or supplement thereto under which such Registrable Securities were registered or any omission or alleged omission to state therein a material fact required to be stated therein or necessary in
order to make the statements therein not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any prospectus, any free writing prospectus or any “issuer information” filed or required to
be filed pursuant to Rule 433(d) under the Securities Act in respect of the Registrable Securities, or amendment or supplement thereto, or any omission or alleged omission to state therein a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading; provided, that the Company shall not be liable to any Indemnified Party in any such case to the extent that any such loss, claim, damage, liability (or
action or proceeding in respect thereof) or expense arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, prospectus, any free writing prospectus or any
“issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act in respect of the Registrable Securities, or amendment or supplement thereto, in reliance upon and in conformity with written information
furnished to the Company with respect to such seller specifically for use in the preparation thereof. 
 Section 2.9 Indemnification by Registering
Covered Persons. Each Registering Covered Person hereby indemnifies and holds harmless, and the Company may require, as a condition to including any Registrable Securities in any registration statement filed in accordance with this Article II,
that the Company shall have received an undertaking reasonably satisfactory to it from any underwriter to indemnify and hold harmless, the Company and all other prospective sellers of Registrable Securities, the Board, each officer of the Company
who signed the Registration Statement and each person, if any, who controls the Company and all prospective sellers of Registrable Securities within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the
same extent as the indemnity set forth in Section 2.8 above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with written information furnished to the Company with respect to such seller or any underwriter, as applicable, specifically for use in the preparation of such registration statement, prospectus, any free writing
prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act in respect of the Registrable Securities, or amendment or supplement thereto. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of the Company, any of the Registering Covered Persons or any underwriter, or any of their respective Affiliates, directors, officers or controlling persons and shall survive the
transfer of such securities by such person. In no event shall any such indemnification liability of any Registering Covered Person be greater in amount than the dollar amount of the proceeds received by such Registering Covered Person upon the sale
of the Registrable Securities giving rise to such indemnification obligation. 
  

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 Section 2.10 Conduct of Indemnification Proceedings. Promptly after receipt by an Indemnified Party
hereunder of written notice of the commencement of any action or proceeding with respect to which a claim for indemnification may be made pursuant to Section 2.8 or Section 2.9 above, such Indemnified Party shall, if a claim of
indemnification in respect thereof is to be made pursuant to this Article II, give written notice of the commencement of such action to the person against whom indemnification is sought (the “Indemnifying Party”); provided,
that the failure of the Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Article II, except to the extent that the Indemnifying Party is materially prejudiced by such failure
to give notice. 
 In case any such action is brought against an Indemnified Party, unless in such Indemnified Party’s reasonable judgment a
conflict of interest between such Indemnified Party and indemnifying parties may exist in respect of such claim, the Indemnifying Party shall be entitled to participate in and to assume the defense thereof, jointly with any other Indemnifying Party
similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such Indemnified Party, and after notice from the Indemnifying Party to such Indemnified Party of its election to assume the defense thereof, the Indemnifying
Party will not be liable to such Indemnified Party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of investigation. It is understood and agreed that the
Indemnifying Party shall not, in connection with any proceeding, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Parties, and that all such fees and expenses shall be
reimbursed as they are incurred. Any such separate firm (x) for any Covered Person, its Affiliates, directors and officers and any control persons of such Indemnified Party, shall be designated in writing by the Demand Committee, and
(y) in all other cases shall be designated in writing by the Company. The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its prior written consent, but if settled with such consent or if there shall
be a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify each Indemnified Party from and against any loss or liability by reason of such settlement or judgment. No Indemnifying Party shall, without the prior written consent
of the Indemnified Party, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnification could have been sought hereunder by such Indemnified Party, unless
such settlement (A) includes an unconditional release of such Indemnified Party, in form and substance reasonably satisfactory to such Indemnified Party, from all liability on claims that are the subject matter of such proceeding and
(B) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. 
 Section 2.11 Contribution. If the indemnification provided for in this Article II from the Indemnifying Party is unavailable to an Indemnified Party hereunder in respect of any losses, claims, damages, liabilities or expenses
referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Parties in connection with the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. The relative fault of such Indemnifying Party and Indemnified Parties shall be determined by 
  

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reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact, has been made by, or relates to information supplied by, such Indemnifying Party or Indemnified Parties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
action. The amount paid or payable by a party under this Section 2.11 as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by
such party in connection with any investigation or proceeding. 
 The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 2.11 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
 Section 2.12 Participation in Underwritten Public Offering. No Covered Person may participate in any Underwritten Public Offering hereunder unless such
Covered Person (a) agrees to sell such Covered Person’s securities on the basis provided in any underwriting arrangements approved by the Demand Committee and the Company and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements and the provisions of this Agreement. 
 Section 2.13 Other Indemnification. Indemnification similar to that specified herein (with appropriate modifications) shall be given by the Company and the
Registering Covered Person participating therein with respect to any required registration or other qualification of securities under any federal or state law or regulation or Governmental Authority other than the Securities Act. 
 Section 2.14 Cooperation by the Company. If a Covered Person shall transfer any Registrable Securities pursuant to Rule 144, the Company shall use its
commercially reasonable efforts to cooperate with such Covered Person and shall use commercially reasonable efforts to provide to such Covered Person such information and legal opinions as may be required to be provided to effect a transfer of such
Registrable Securities under Rule 144. 
 Section 2.15 Parties in Interest. Each Covered Person shall be entitled to receive the benefits of
this Agreement and shall be bound by the terms and provisions of this Agreement by reason of such Covered Person’s election to participate in a registration under this Article II. To the extent the Och-Ziff Operating Group A Units held by
Covered Persons are effectively transferred to a Permitted Transferee, the Permitted Transferee shall be entitled to receive the benefits of this Agreement and shall be bound by the terms and provisions of this Agreement upon becoming bound hereby
pursuant to Section 3.1(c). 
 Section 2.16 Acknowledgement Regarding the Company. Other than those determinations reserved expressly to
the Demand Committee, all determinations necessary or 
  

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advisable under this Article II shall be made by the Board, the determinations of which shall be final and binding. 
 Section 2.17 Mergers, Recapitalizations, Exchanges or Other Transactions Affecting Registrable Securities. The provisions of this Agreement shall apply to
the full extent set forth herein with respect to the Registrable Securities, to any and all securities or units of the Och-Ziff Operating Group or the Company or any successor or assign of any such person (whether by merger, amalgamation,
consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for, or in substitution of such Registrable Securities, by reason of any dividend, split, issuance, reverse split, combination, recapitalization,
reclassification, merger, amalgamation, consolidation or otherwise. 
 ARTICLE III 
 MISCELLANEOUS 
 Section 3.1 Term of the Agreement; Termination of Certain Provisions. 
 (a) The term of this Agreement shall continue until such time as no Covered Person holds any Covered Och-Ziff Operating Group A Units or Registrable
Securities. 
 (b) Unless this Agreement is terminated pursuant to Section 3.1(a) hereof, a Covered Person shall be bound by the
provisions of this Agreement with respect to any Covered Och-Ziff Operating Group A Units or Registrable Securities until such time as such Covered Person ceases to hold any Covered Och-Ziff Operating Group A Units or Registrable Securities.
Thereafter, such Covered Person shall no longer be bound by the provisions of this Agreement other than Sections 2.9, 2.10, 2.11 and 2.13 and this Article III, and such Covered Person’s name shall be removed from Appendix A to this Agreement.
Any person that has ceased to be a Covered Person and that reacquires Covered Och-Ziff Operating Group A Units or Registrable Securities shall be added to Appendix A as a Covered Person; provided, that such person shall first sign an
agreement in the form approved by the Company acknowledging that such person is bound by the terms and provisions of this Agreement. 
 (c) Any Permitted Transferee shall be added to Appendix A as a Covered Person; provided, that such Permitted Transferee shall first sign an agreement in the form approved by the Company acknowledging that such Permitted Transferee is
bound by the terms and provisions of this Agreement. 
 Section 3.2 Amendments; Waiver. 
 (a) Subject to Section 3.2(c), no provision of this Agreement may be amended unless such amendment is approved in writing by the Company and
the Covered Persons who, together with their Permitted Transferees, collectively hold at least two-thirds of the 

  

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Registrable Securities; provided, that no such amendment shall be effective if such amendment will have a disproportionate effect on certain Covered Persons
unless all such Covered Persons disproportionately affected consent in writing to such amendment and provided, further, no such amendment shall impair or diminish the rights of the Demand Committee, unless approved in writing by the Demand
Committee. No provision of this Agreement may be waived unless such waiver is in writing and signed by the party against whom the waiver is to be effective. 
 (b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single
or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by
law. 
 (c) The Company may amend this Agreement in writing without the approval or consent of any Covered Person or Permitted
Transferee if such amendment does not materially and adversely affect any Covered Person’s or Permitted Transferee’s rights under this Agreement. Each Covered Person understands that from time to time certain other persons may become
Covered Persons and certain Covered Persons will cease to be bound by the provisions of this Agreement pursuant to the terms hereof. This Agreement may be amended from time to time by the Company (without the approval of any other person) for the
purposes of (i) adding to Appendix A Permitted Transferees of the Covered Och-Ziff Operating Group A Units as provided in Section 3.1(c) who agree to be bound by this Agreement and (ii) removing from Appendix A such persons as shall
cease to be bound by the provisions of this Agreement pursuant to Sections 3.1(b) hereof, which additions and removals shall be given effect from time to time by appropriate changes to Appendix A. 
 Section 3.3 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
CONFLICTS OF LAW PROVISIONS THEREOF. 
 Section 3.4 Submission to Jurisdiction; Waiver of Jury Trial. Each party to this Agreement hereby
irrevocably and unconditionally, with respect to any matter or dispute arising under, or in connection with, this Agreement and the transactions contemplated hereby (i) submits for itself and its property in any legal action or proceeding
relating to this Agreement, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of
New York, and any appellate courts thereof (the “New York Courts”) (and covenants not to commence any legal action or proceeding in any other venue or jurisdiction); (ii) consents that any such action or proceeding may be
brought in the New York Courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead
or claim the same; (iii) agrees that service of process in any such action will be in accordance with the laws of the State of New York but that nothing 
  

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herein shall affect the right to effect service of process in any other manner permitted by law; (iv) waives any and all immunity from suit, execution, attachment
or other legal process; and (v) waives in connection with any such action any and all rights to a jury trial. The parties agree that any judgment of any New York Court may be enforced in any court having jurisdiction over any party of any of
their assets. 
 Section 3.5 Notices. 
 (a) All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax, by electronic
mail (delivery receipt requested) or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in
accordance with this Section 3.5): 
 If to a Covered Person, initially to the address indicated in such Covered Person’s questionnaire (a
form of which is attached hereto as Appendix B) or to the address then in the records of the Och-Ziff Operating Group or the Company, as applicable, with a copy to the Chief Legal Officer of the Company, as set forth below, or if no such
questionnaire has been delivered or if no address is then in the records of the Och-Ziff Operating Group or the Company, 
 c/o Och-Ziff Capital
Management Group LLC 
 9 West 57th Street 
 New York, New York 10019 
 Attention: Chief Legal Officer 
 Fax: (212) 719-7402 
 Electronic Mail:
[                                ] 
 If to the Company, 
 c/o Och-Ziff Capital Management Group LLC

 9 West 57th Street,
13th Floor 
 New York, New York 10019 
 Attention: Chief Legal Officer 
 Fax: (212) 719-7402

 Electronic Mail:
[                                ] 
 The Company shall be responsible for notifying each Covered Person of the receipt of a notice, request, claim, demand or other communication under this Agreement
relevant to such Covered Person as set forth above (and each Covered Person shall notify the Company of any change in address for notices, requests, claims, demands or other communications). 
  

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 Section 3.6 Severability. If any provision of this Agreement is finally held to be invalid, illegal or
unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired and (b) the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision. 
 Section 3.7 Specific Performance. Each party hereto acknowledges
that the remedies at law of the other parties for a breach or threatened breach of this Agreement would be inadequate and, in recognition of this fact, any party to this Agreement, without posting any bond, and in addition to all other remedies that
may be available, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy that may be then available. 
 Section 3.8 Assignment; Successors. This Agreement shall be binding upon and inure to the benefit of the respective legatees, legal representatives,
successors and assigns of the Covered Persons; provided, however, that a Covered Person may not assign this Agreement or any of his rights or obligations hereunder, and any purported assignment in breach hereof by a Covered Person
shall be void; and provided further, that no assignment of this Agreement by the Company or to a successor of the Company (by operation of law or otherwise) shall be valid unless such assignment is made to a person which succeeds to the
business of such person substantially as an entirety. 
 Section 3.9 No Third-Party Rights. Other than as expressly provided herein, nothing in
this Agreement shall be construed to give any person other than the parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its
provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their successors and assigns. 
 Section 3.10
Section Headings. The headings of sections in this Agreement are provided for convenience only and will not affect its construction or interpretation. 
 Section 3.11 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute but one and the same instrument.

  

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 IN WITNESS WHEREOF, the parties hereto have duly executed or caused to be duly executed this Agreement as of the
dates indicated. 
  

			
	OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 COVERED PERSON

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 23

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