Document:

Exhibit 10.4

 Exhibit 10.4 
 THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS
SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER
IS EXEMPT FROM SUCH REGISTRATION. 
 WARRANT TO PURCHASE STOCK 
 Company: ENTEROMEDICS INC. 
 Number of Shares: 106,746 

Type/Series of Stock: Common 
 Warrant
Price: $2.34 per share 
 Issue Date: April 16, 2012 
 Expiration Date: April 16, 2022             See also Section 5.1(b). 

	Credit	Facility:    This Warrant to Purchase Stock (“Warrant”) is issued in connection with that certain Loan and
                  Security Agreement of substantially even date herewith between Silicon Valley Bank and the Company
                  (the “Loan Agreement”). 

 THIS WARRANT CERTIFIES THAT, for good and valuable consideration, SILICON VALLEY BANK (together with any successor or permitted assignee or transferee of this Warrant or of any shares issued upon exercise
hereof, “Holder”) is entitled to purchase the number of fully paid and non-assessable shares (the “Shares”) of the above-stated Type/Series of Stock (the “Class”) of the
above-named company (the “Company”) at the above-stated Warrant Price, all as set forth above and as adjusted pursuant to Section 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth
in this Warrant. Reference is made to Section 5.4 of this Warrant whereby Silicon Valley Bank shall transfer this Warrant to its parent company, SVB Financial Group. 
 SECTION 1. EXERCISE. 
 1.1 Method of Exercise. Holder may at
any time and from time to time exercise this Warrant, in whole or in part, by delivering to the Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 and, unless
Holder is exercising this Warrant pursuant to a cashless exercise set forth in Section 1.2, a check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate
Warrant Price for the Shares being purchased. 
 1.2 Cashless Exercise. On any exercise of this Warrant, in lieu of
payment of the aggregate Warrant Price in the manner as specified in Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal to the value of this Warrant, or portion
hereof as to which this Warrant is being exercised. Thereupon, the Company shall issue to the Holder such number of fully paid and non-assessable Shares as are computed using the following formula: 

X = Y(A-B)/A 
 where: 

  
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 X =     the number of Shares to be issued to the Holder;

 Y =     the number of Shares with respect to which this Warrant is being exercised
(inclusive of the Shares                    surrendered to the Company in payment of the aggregate Warrant Price); 

A =     the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and

 B =     the Warrant Price. 

1.3 Fair Market Value. If the Company’s common stock is then traded or quoted on a nationally recognized securities exchange,
inter-dealer quotation system or over-the-counter market (a “Trading Market”) and the Class is common stock, the fair market value of a Share shall be the closing price or last sale price of a share of common stock reported
for the Business Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company. If the Company’s common stock is then traded in a Trading Market and the Class is a series of the
Company’s convertible preferred stock, the fair market value of a Share shall be the closing price or last sale price of a share of the Company’s common stock reported for the Business Day immediately before the date on which Holder
delivers this Warrant together with its Notice of Exercise to the Company multiplied by the number of shares of the Company’s common stock into which a Share is then convertible. If the Company’s common stock is not traded in a Trading
Market, the Board of Directors of the Company shall determine the fair market value of a Share in its reasonable good faith judgment. 
 1.4 Delivery of Certificate and New Warrant. Within a reasonable time after Holder exercises this Warrant in the manner set forth in Section 1.1 or 1.2 above, the Company shall deliver to
Holder a certificate representing the Shares issued to Holder upon such exercise and, if this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the Shares not so acquired. 

1.5 Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form, substance and amount to the Company or, in the case of mutilation, on surrender of this Warrant to the
Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant of like tenor and amount. 
 1.6 Treatment of Warrant Upon Acquisition of Company. 
 (a)
Acquisition. For the purpose of this Warrant, “Acquisition” means any transaction or series of related transactions involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially
all of the assets of the Company (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company’s domicile), or any other corporate
reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s)
outstanding voting power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the stockholders of the Company of shares representing at least a majority of the Company’s then-total
outstanding combined voting power. 

  
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 (b) Treatment of Warrant at Acquisition. In the event of an Acquisition in which the
consideration to be received by the Company’s stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable Securities (a “Cash/Public Acquisition”), either (i) Holder
shall exercise this Warrant pursuant to Section 1.1 and/or 1.2 and such exercise will be deemed effective immediately prior to and contingent upon the consummation of such Acquisition or (ii) if Holder elects not to exercise the Warrant,
this Warrant will expire immediately prior to the consummation of such Acquisition. 
 (c) The Company shall provide Holder with
written notice of its request relating to the Cash/Public Acquisition (together with such reasonable information as Holder may reasonably require regarding the treatment of this Warrant in connection with such contemplated Cash/Public Acquisition
giving rise to such notice), which is to be delivered to Holder not less than seven (7) Business Days prior to the closing of the proposed Cash/Public Acquisition. In the event the Company does not provide such notice, then if, immediately
prior to the Cash/Public Acquisition, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date,
then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall
promptly notify the Holder of the number of Shares (or such other securities) issued upon such exercise to the Holder and Holder shall be deemed to have restated each of the representations and warranties in Section 4 of the Warrant as the date
thereof. 
 (d) Upon the closing of any Acquisition other than a Cash/Public Acquisition defined above, the acquiring, surviving
or successor entity shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other property as would have been paid for the Shares issuable upon exercise of the unexercised portion
of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with the provisions of this Warrant. 

(e) As used in this Warrant, “Marketable Securities” means securities meeting all of the following requirements:
(i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of
all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this
Warrant on or prior to the closing thereof is then traded in Trading Market, and (iii) Holder would be able to publicly re-sell, within six (6) months following the closing of such Acquisition, all of the issuer’s shares and/or other
securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition. 
 SECTION 2. ADJUSTMENTS TO THE SHARES AND WARRANT PRICE. 
 2.1 Stock
Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the Class payable in common stock or other securities or property (other than cash), then upon exercise of this Warrant, for each
Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities and property which Holder would have received had Holder owned the Shares of record as of the date the dividend or distribution
occurred. If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number of Shares purchasable hereunder shall be 

  
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proportionately increased and the Warrant Price shall be proportionately decreased. If the outstanding shares of the Class are combined or consolidated, by reclassification or otherwise, into a
lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased. 
 2.2 Reclassification, Exchange, Combinations or Substitution. Upon any event whereby all of the outstanding shares of the Class are reclassified, exchanged, combined, substituted, or replaced for,
into, with or by Company securities of a different class and/or series, then from and after the consummation of such event, this Warrant will be exercisable for the number, class and series of Company securities that Holder would have received had
the Shares been outstanding on and as of the consummation of such event, and subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions of this Section 2.2 shall similarly apply
to successive reclassifications, exchanges, combinations substitutions, replacements or other similar events. 
 2.3
Conversion of Preferred Stock. If the Class is a class and series of the Company’s convertible preferred stock, in the event that all outstanding shares of the Class are converted, automatically or by action of the holders thereof, into
common stock pursuant to the provisions of the Company’s Certificate of Incorporation, including, without limitation, in connection with the Company’s initial, underwritten public offering and sale of its common stock pursuant to an
effective registration statement under the Act (the “IPO”), then from and after the date on which all outstanding shares of the Class have been so converted, this Warrant shall be exercisable for such number of shares of
common stock into which the Shares would have been converted had the Shares been outstanding on the date of such conversion, and the Warrant Price shall equal the Warrant Price in effect as of immediately prior to such conversion divided by the
number of shares of common stock into which one Share would have been converted, all subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant. 

2.4 Adjustments for Diluting Issuances. Without duplication of any adjustment otherwise provided for in this Section 2, the
number of shares of common stock issuable upon conversion of the Shares shall be subject to anti-dilution adjustment from time to time in the manner set forth in the Company’s Articles or Certificate of Incorporation as if the Shares were
issued and outstanding on and as of the date of any such required adjustment. 
 2.5 No Fractional Share. No fractional
Share shall be issuable upon exercise of this Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of the Warrant, the Company shall eliminate such
fractional Share interest by paying Holder in cash the amount computed by multiplying the fractional interest by (i) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (ii) the
then-effective Warrant Price. 
 2.6 Notice/Certificate as to Adjustments. Upon each adjustment of the Warrant Price,
Class and/or number of Shares, the Company, at the Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or number of Shares and facts upon which such adjustment
is based. The Company shall, upon written request from Holder, furnish Holder with a certificate of its Chief Financial Officer, including computations of such adjustment and the Warrant Price, Class and number of Shares in effect upon the date of
such adjustment. 

  
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 SECTION 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY. 

3.1 Representations and Warranties. The Company represents and warrants to, and agrees with, the Holder as follows: 

(a) The initial Warrant Price referenced on the first page of this Warrant is not greater than the price per share at which shares of the
Class were last sold and issued prior to the Issue Date hereof in an arms-length transaction in which at least $500,000 of such shares were sold. 
 (b) All Shares which may be issued upon the exercise of this Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully
paid and non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws. The Company covenants that it shall at all times cause to be reserved and
kept available out of its authorized and unissued capital stock such number of shares of the Class, common stock and other securities as will be sufficient to permit the exercise in full of this Warrant and the conversion of the Shares into common
stock or such other securities. 
 3.2 Notice of Certain Events. If the Company proposes at any time to: 

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

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

(e) effect an IPO; 

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

(1) at least seven (7) Business Days prior written notice of the date on which a record will be taken for such
dividend, distribution, or subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in
(a) and (b) above; 
 (2) in the case of the matters referred to in (c) and (d) above at
least seven (7) Business Days prior written notice of the date when the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange their shares for the securities or other
property deliverable upon the occurrence of such event); and 

  
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 (3) with respect to the IPO, at least seven (7) Business Days
prior written notice of the date on which the Company proposes to file its registration statement in connection therewith. 
 Reference is made
to Section 1.6(c) whereby this Warrant will be deemed to be exercised pursuant to Section 1.2 hereof if the Company does not give written notice to Holder of a Cash/Public Acquisition as required by the terms hereof. Company will also
provide information requested by Holder that is reasonably necessary to enable Holder to comply with Holder’s accounting or reporting requirements. 
 SECTION 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER. 
 The Holder
represents and warrants to the Company as follows: 
 4.1 Purchase for Own Account. This Warrant and the securities to be
acquired upon exercise of this Warrant by Holder are being acquired for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act. Holder also represents
that it has not been formed for the specific purpose of acquiring this Warrant or the Shares. 
 4.2 Disclosure of
Information. Holder is aware of the Company’s business affairs and financial condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect
to the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying
securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which Holder has access.

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

4.4 Accredited Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated under
the Act. 
 4.5 The Act. Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been
registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. Holder understands that this Warrant and the
Shares issued upon any exercise hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws, or unless exemption from such registration and qualification are otherwise available.
Holder is aware of the provisions of Rule 144 promulgated under the Act. 

  
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 4.6 Market Stand-off Agreement. The Holder agrees that the Shares shall be subject to
the Market Standoff provisions in Section 1.13 of the Investor Rights Agreement or similar agreement. 
 4.7 No Voting
Rights. Holder, as a Holder of this Warrant, will not have any voting rights until the exercise of this Warrant. 

SECTION 5. MISCELLANEOUS. 
 5.1 Term and Automatic Conversion Upon Expiration. 
 (a) Term.
Subject to the provisions of Section 1.6 above, this Warrant is exercisable in whole or in part at any time and from time to time on or before 6:00 PM, Pacific time, on the Expiration Date and shall be void thereafter. 

(b) Automatic Cashless Exercise upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share
(or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be
exercised pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall, within a reasonable time, deliver a certificate representing the Shares (or such
other securities) issued upon such exercise to Holder. 
 5.2 Legends. The Shares (and the securities issuable, directly
or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form: 

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO SILICON VALLEY BANK DATED
            , MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH
OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION. 
 5.3 Compliance with Securities Laws on
Transfer. This Warrant and the Shares issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part except in compliance
with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably
requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to SVB Financial Group (Silicon Valley Bank’s parent company) or any other affiliate of Holder, provided that any such
transferee is an “accredited investor” as defined in Regulation D promulgated under the Act. Additionally, the Company shall also not require an opinion of counsel if there is no material question as to the availability of Rule 144
promulgated under the Act. 

  
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 5.4 Transfer Procedure. After receipt by Silicon Valley Bank of the executed Warrant,
Silicon Valley Bank will transfer all of this Warrant to its parent company, SVB Financial Group. By its acceptance of this Warrant, SVB Financial Group hereby makes to the Company each of the representations and warranties set forth in
Section 4 hereof and agrees to be bound by all of the terms and conditions of this Warrant as if the original Holder hereof. Subject to the provisions of Section 5.3 and upon providing the Company with written notice, SVB Financial Group
and any subsequent Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable directly or indirectly, upon conversion of the Shares, if any) to any transferee, provided, however,
in connection with any such transfer, SVB Financial Group or any subsequent Holder will give the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification number of the transferee and Holder
will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable); and provided further, that any subsequent transferee other than SVB Financial Group shall agree in writing with the Company to be bound by all
of the terms and conditions of this Warrant. Notwithstanding any contrary provision herein, at all times prior to the IPO, Holder may not, without the Company’s prior written consent, transfer this Warrant or any portion hereof, or any Shares
issued upon any exercise hereof, or any shares or other securities issued upon any conversion of any Shares issued upon any exercise hereof, to any person or entity who directly competes with the Company, except in connection with an Acquisition of
the Company by such a direct competitor. 
 5.5 Notices. All notices and other communications hereunder from the Company
to the Holder, or vice versa, shall be deemed delivered and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified mail, postage prepaid, (iii) upon
actual receipt if given by facsimile or electronic mail and such receipt is confirmed in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid, in any case at
such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to time in accordance with the provisions of this Section 5.5. All notices to Holder shall be addressed as
follows until the Company receives notice of a change of address in connection with a transfer or otherwise: 
 SVB Financial
Group 
 Attn: Treasury Department 
 3003 Tasman Drive, HC 215 
 Santa Clara, CA 95054 

Telephone: (408) 654-7400 
 Facsimile: (408) 988-8317 
 Email address: derivatives@svb.com 

  
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 Notice to the Company shall be addressed as follows until Holder receives notice of a change
in address: 
 EnteroMedics Inc. 
 Attn: David Brooks 
 2800 Patton Road 

Saint Paul, MN 55113 
 Telephone: (651) 789-2673 
 Facsimile: (651) 634-3212 

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

5.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the
party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 
 5.8 Counterparts; Facsimile/Electronic Signatures. This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement. Any signature page delivered
electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment thereto. 

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

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

			
	“COMPANY”
	
	ENTEROMEDICS INC.
		
	By: 	 	 

			
		
	Name: 	 	 
		 	(Print)

			
		
	Title: 	 	 

  

			
	“HOLDER”
	
	SILICON VALLEY BANK
		
	By: 	 	 

			
		
	Name: 	 	 
		 	(Print)

			
		
	Title: 	 	 

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

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

  

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

 

	 	[    ]	Cashless Exercise pursuant to Section 1.2 of the Warrant 

  

	 	[    ]	Other [Describe]
                                         
            

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

			
		  	
	         Holder’s Name
	  	
		  	
		  	
	 	  	
		  	
	         (Address)
	  	

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

			
	HOLDER:
	
	 
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	(Date):	 	 

 Appendix 1Supplemental Indenture No. 2

 Exhibit 4.1 
 EXECUTION VERSION 
 SUPPLEMENTAL INDENTURE NO. 2 

SUPPLEMENTAL INDENTURE No. 2 (this “Supplemental Indenture”), dated as of May 7, 2012 among EVERTEC, LLC, a
Puerto Rico limited liability company (formerly known as EVERTEC, Inc, the “Issuer”), EVERTEC Finance Corp., a Puerto Rico corporation and Wholly-Owned Subsidiary of the Issuer (“Finance Corp” and, together with the
Issuer, the “Co-Issuers”), the Guarantors (as defined in the Indenture (as defined below)) and Wilmington Trust, National Association (as successor by merger to Wilmington Trust FSB), as trustee under the Indenture referred to below
(the “Trustee”). 
 W I T N E S S E T H: 

WHEREAS, the Co-Issuers and the Guarantors have heretofore executed and delivered to the Trustee an Indenture dated as of
September 30, 2010, as supplemented by Supplemental Indenture No. 1 dated as of April 17, 2012 (the “Indenture”), providing for the issuance of (a) $220,000,000 aggregate principal amount of the Co-Issuers’
11% Senior Notes due 2018 on September 30, 2010, of which $210,500,000 aggregate principal amount was outstanding on the date hereof (the “Existing Notes”) and (b) any Additional Notes (as defined in the Indenture) that
may be issued from time to time after September 30, 2010 (collectively, the “Notes”); 
 WHEREAS, the
Co-Issuers are issuing $40,000,000 aggregate principal amount of Additional Notes as permitted by Sections 2.01, 4.03 and 9.01 of the Indenture (the “New Notes”); 

WHEREAS, the gross proceeds of the offering of the New Notes (the “Escrowed Funds”) will be placed in an escrow account
pursuant to an Escrow Agreement, dated as of the date hereof (the “Escrow Agreement”), by and among the Co-Issuers, the Guarantors and Wilmington Trust, National Association, as escrow agent; 

WHEREAS, upon the satisfaction or waiver of the escrow release conditions specified in the Escrow Agreement (the “Escrow
Conditions”), the Escrowed Funds will be released to the Co-Issuers; 
 WHEREAS, if the Escrow Conditions are not
satisfied or waived on or prior to May 18, 2012 or if the Co-Issuers determine in their sole discretion that the Escrow Conditions cannot be satisfied or will not be waived, the Co-Issuers will be required to redeem the New Notes pursuant to a
Special Mandatory Redemption in accordance with the terms set forth in this Supplemental Indenture; 
 WHEREAS,
Section 2.01 of the Indenture provides that Additional Notes may be issued under the Indenture, provided that the terms of the Additional Notes are (a) established in or pursuant to a resolution of the Board of Directors of the Co-Issuers
and (b) (i) set forth or determined in the manner provided in an Officer’s Certificate or (ii) established in one or more indentures supplemental to the Indenture, prior to the issuance of such Additional Notes; 

WHEREAS, the joint pricing committee of the board of managers of the Issuer and the board of directors of Finance Corp has established
certain terms of the New Notes pursuant to resolutions of the Co-Issuers, which is a duly authorized committee and constitutes the “Board of Directors” of the Co-Issuers for purposes of this Supplemental Indenture, a copy of which
resolutions has been certified by the Secretary of the Issuer and delivered to the Trustee; 

 WHEREAS, the Co-Issuers are permitted to Incur the New Notes by Section 4.03 of the
Indenture and the other applicable provisions of the Indenture; 
 WHEREAS, pursuant to Section 9.01(xi) of the Indenture,
the Trustee and the Co-Issuers are authorized to execute and deliver this Supplemental Indenture; and 
 WHEREAS, the Co-Issuers
have heretofore delivered, or are delivering contemporaneously herewith to the Trustee, the Officer’s Certificate and Opinion of Counsel referred to in Section 9.06 of the Indenture. 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Co-Issuers, the Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the New Notes as follows: 
 ARTICLE I 
 CAPITALIZED TERMS; RELATION TO INDENTURE; GENERAL REFERENCES

 SECTION 1.01. Capitalized Terms. Capitalized terms used herein but not defined shall have the meanings assigned to
them in the Indenture. 
 SECTION 1.02. Relation to Indenture. Except as expressly amended hereby, the Indenture is in
all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or
hereafter authenticated and delivered shall be bound hereby. This Supplemental Indenture constitutes an integral part of the Indenture. 
 SECTION 1.03. General References. All references in this Supplemental Indenture to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this
Supplemental Indenture; and the terms “herein,” “hereof,” “hereunder” and any other words of similar import refer to this Supplemental Indenture. 
 ARTICLE II 
 ISSUANCE OF NEW NOTES AS ADDITIONAL NOTES 

SECTION 2.01. New Notes. The aggregate principal amount of New Notes that may be authenticated and delivered pursuant to the
Indenture, as supplemented by this Supplemental Indenture, is $40,000,000. The New Notes shall be issued on May 7, 2012 at an issue price of 105% plus accrued interest from April 1, 2012 to, but not including, May 7, 2012. Interest
shall accrue on the New Notes from April 1, 2012. The New Notes shall be issued in the form of one or more Global Securities, and the depositary for such New Notes shall be The Depository Trust Company, its nominees and their respective
successors. Except for the Special Mandatory Redemption (as defined below) and as otherwise noted in this Article II, the New Notes shall have terms identical to the Existing Notes. 

  
 2 

 SECTION 2.02. Relationship to Other Notes. The New Notes and the Existing Notes shall
be treated as single class for all purposes under the Indenture, including, without limitation, waivers, amendments, redemptions and offers to purchase (except that (1) the New Notes, but not the Existing Notes, will be subject to the Special
Mandatory Redemption, (2) the New Notes will not be entitled to consent to the proposed amendment described in the Consent Solicitation Statement so long as the record date for eligible consenting holders is prior to the date hereof and
(3) the exception contained in Section 4.04(b)(xx) that is being added pursuant to this Supplemental Indenture will apply to the New Notes on the date hereof but will not apply to the Existing Notes unless and until the supplemental
indenture effecting the proposed amendment described in the Consent Solicitation Statement becomes operative). 
 SECTION 2.03.
Guarantees. Each Guarantor hereby confirms and agrees that the “Guaranteed Obligations” as defined in the Indenture, including the Co-Issuers’ Obligations under the New Notes, are guaranteed by each such Guarantor. 

SECTION 2.04. Definitions. The following definitions are hereby added to Section 1.01 of the Indenture in proper alphabetical
sequence: 
 “Consent Solicitation Statement” means the Consent Solicitation Statement, dated as of
April 30, 2012, as may be amended or supplemented from time to time on or prior to the Outside Date, relating to the Co-Issuers’ solicitation of consents from the holders of the Existing Notes to amend the limitation on restricted payments
covenant in the Indenture. 
 “Escrow Account” means a segregated account, under the sole control of the Escrow
Agent, that includes only cash, free from all Liens. 
 “Escrow Agent” means Wilmington Trust, National
Association. 
 “Escrow Agreement” means the Escrow Agreement to be dated as of May 7, 2012, among the
Co-Issuers, the Trustee and the Escrow Agent, as amended, supplemented, modified, extended, renewed, restated or replaced in whole or in part from time to time. 
 “Escrow Redemption Date” means the date that is no later than five Business Days after the Outside Date. 
 “Escrow Redemption Price” means an amount of cash equal to $42,000,000, plus accrued interest from April 1, 2012 to, but not including, the issue date of the New Notes, calculated
using a rate of 11% per annum. 
 “Existing Notes” means the Initial Notes issued by the Issuer under the
Indenture on the Issue Date and the Exchange Notes issued in exchange therefor. 

  
 3 

 SECTION 2.05. Special Mandatory Redemption. The following Section 3.09 is hereby
added to Article III of the Indenture: 
 SECTION 3.09. Special Mandatory Redemption. 

(a) In the event that, upon the earlier of (i) the date on which the Co-Issuers determine in their sole discretion
that the Escrow Conditions (as defined in the Escrow Agreement) cannot be satisfied and will not be waived and (ii) May 18, 2012 (the “Outside Date”), the Officers’ Certificate included as Exhibit A-1 to the Escrow
Agreement for release of the funds from the Escrow Account has not been delivered to the Escrow Agent (with a copy to the Trustee), the Co-Issuers shall be required to redeem the New Notes on the Escrow Redemption Date at the Escrow Redemption Price
(the “Special Mandatory Redemption”). 
 (b) In the case of a Special Mandatory Redemption, the
provisions of Article III of the Indenture shall apply, except as modified as follows: (i) the Co-Issuers shall mail, or cause the notice of Special Mandatory Redemption to be mailed, to the holders of the New Notes at least three Business
Days prior to the Escrow Redemption Date, (ii) the Co-Issuers shall give notice to the Trustee of a Special Mandatory Redemption at least three Business Days prior to the Escrow Redemption Date and (iii) at the Co-Issuers’ request,
the Trustee shall give the notice of Special Mandatory Redemption in the Co-Issuers’ name and expense, provided that the Co-Issuers deliver to the Trustee the information required at least one Business Day prior to the date such notice is to be
provided to the holders. 
 SECTION 2.06. The following clause (xx) is hereby added to Section 4.04(b) of the
Indenture: 
 (xx) with respect to the New Notes, upon their issuance date, so long as (i) the Co-Issuers
and the Trustee have entered into a supplemental indenture to this Indenture on the terms described in the Consent Solicitation Statement and the proposed amendment therein shall have become operative and (ii) no Default shall have occurred and
be continuing, the declaration and payment of dividends or distributions to holders of any Equity Interests of the Issuer in an amount not to exceed $270.0 million (or such lesser amount contained in the supplemental indenture referenced in
subclause (i) of this clause (xx)). 
 SECTION 2.07. Effect of Amendments. The parties hereto hereby agree that the
Co-Issuers shall not be required under Section 9.05 of the Indenture to issue a new Note reflecting the terms amended in accordance with this Supplemental Indenture. The parties further agree that any Notes issued after the date hereof shall
reflect the terms of the Indenture as amended by this Supplemental Indenture and any subsequent amendments or supplemental indentures. 

  
 4 

 ARTICLE III 
 MISCELLANEOUS 
 SECTION 3.01. Governing Law. THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
 SECTION 3.02. Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. 

SECTION 3.03. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. One signed copy is enough to prove this Supplemental Indenture. 
 SECTION 3.04. Effect of Headings. The section headings herein have been inserted for convenience of reference only, and are not intended to be considered a part thereof and shall not modify or
restrict any of the terms or provisions hereof. 
 [Rest of Page Intentionally Left Blank] 

  
 5 

 IN WITNESS WHEREOF, the parties have caused this Supplemental Indenture to be duly executed
as of the date first written above. 
  

			
	EVERTEC, LLC
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President and Chief Executive Officer
	
	EVERTEC FINANCE CORP.
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President and Chief Executive Officer
	
	EVERTEC DOMINICANA, SAS
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President
	
	SENSE SOFTWARE INTERNATIONAL CORP.
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President
	
	ATH COSTA RICA, S.A.
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President

 
			
	T.I.I. SMART SOLUTIONS INC.
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President
	
	ATH PANAMÁ, S.A.
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President
	
	EVERTEC MÉXICO SERVICIOS DE PROCESAMIENTO, S.A. DE C.V.
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President
	
	TARJETAS INTELIGENTES INTERNACIONALES, S.A.
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: President
	
	TII SMART SOLUTIONS, SOCIEDAD ANÓNIMA
		
	By:	 	 /s/ Peter L. Harrington

		 	Name: Peter L. Harrington
		 	Title: Sole Representative

 
					
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 /s/ Joseph P. O’Donnell

		 	Name:	 	Joseph P. O’Donnell
		 	Title:	 	Vice President

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