Document:

EX-10.32

 EXHIBIT 10.32 

MERGER INTEGRATION PERFORMANCE SHARES AWARD AGREEMENT 

KeyCorp grants to the Participant named below, in accordance with the terms, and subject to the conditions, of the KeyCorp 2013 Equity Compensation Plan (the
“Plan”), this Performance Shares Award Agreement (the “Award Agreement”) and the attached Acceptance Agreement, an award of the target number of performance shares (“Performance Shares” or
“Award”), on the Date of Grant, each as set forth below. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan. 

Each Performance Share represents the contingent right to receive one Common Share, subject to the terms and conditions set forth in the Plan, this Award
Agreement and the Acceptance Agreement. The Participant’s right to receive payment of all, a portion, or a multiple of the Performance Shares shall be contingent upon the level of achievement of the Performance Goals and the Participant’s
continued employment, each as provided herein, in all cases subject to the other terms and conditions of this Award Agreement (including Appendix A hereto), the Plan and the Acceptance Agreement. 

 

	 Name of Participant: 
	[●] 

  

	 Target Number of Performance Shares: 
	[●] 

  

	 Date of Grant: 
	February 15, 2016 

  

	 Vesting Date: 
	February 17, 2019, subject to approval of the Compensation and Organization Committee of the Board of Directors (the “Committee”), and subject to your continued employment on this date and the achievement of the Performance
Goals described below (except as otherwise provided in this Award Agreement) 

  

	 Performance Period: 
	January 1, 2016 through December 31, 2018 

  

	 Performance Goals: 
	The Participant may vest in between 0% and 200% of the target number of Performance Shares subject to this Award based on the weighted level of achievement of the “Performance Goals” set forth on Appendix A during the
Performance Period. 

 The Participant must accept the Award online in accordance with the procedures established by KeyCorp and the Award
administrator or this Award Agreement may be cancelled by KeyCorp, in its sole discretion. By accepting the Award in accordance with these procedures, the Participant acknowledges that: 

 

	 	•	 	This Award is subject to the KeyCorp Incentive Compensation Program and Policy, as amended from time to time. The Participant understands and agrees that the Award is subject to risk adjustment in accordance with
the procedures set forth in the Incentive Compensation Program and Policy. These procedures permit Key, in its sole discretion, to decrease, forfeit, or initiate a clawback, of all or any part of the Award under certain circumstances, including
in the event that the Participant receives a “Does Not Meet” risk rating as part of his or her annual performance review, and/or in the event that the Participant’s business unit experiences negative pre-provision net revenue (before
allocated costs) or significant credit, market or operational losses. If a significant risk event occurs, whether at the individual or business level, a root cause analysis may be conducted, which may result in a risk adjustment of the Award.

  

	 	•	 	The Participant understands that as a condition to receiving the Award, the Participant must agree to be bound by and comply with the terms and conditions of the Plan, the Award Agreement and related Acceptance
Agreement. As soon as the Participant accepts the Award, the terms and conditions of the Award Agreement and Acceptance Agreement will constitute a legal contract that will bind both the Participant and KeyCorp. 

 Additional Terms 

1. Effect of Termination. 

(a) In General. The Award shall be forfeited automatically without further action or notice if the Participant ceases to be
continuously employed by Key prior to the Vesting Date, except as otherwise provided in this Section 1. For purposes of this Section 1, the continuous employment of the Participant shall not be deemed to have been interrupted, and the
Participant shall not be deemed to have ceased to be an employee of Key, by reason of the transfer of employment among KeyCorp and its affiliates. 

(b) Certain Terminations. Notwithstanding Section 1(a), if, prior to the Vesting Date, the Participant’s continuous employment is
terminated as a result of the Participant’s death, Disability, Termination Under Limited Circumstances or Retirement, the Participant will vest in a pro rata portion of the Performance Shares. The pro rata vesting provided for under this
Section 1(b) shall be determined by multiplying the target number of Performance Shares granted under this Award Agreement by a fraction, the numerator of which shall be the number of full months of the Participant’s continuous employment from
the Date of Grant through the date of termination and the denominator of which shall be 36, and adjusting this number at the end of the Performance Period based on the Committee’s determination of the level of achievement of the Performance
Goals (and the satisfaction of the other terms and conditions of this Award Agreement (including Appendix A), the Plan and the Acceptance Agreement). 

For purposes of this Award Agreement, a Participant’s “Retirement” shall mean the Participant’s Voluntary
Resignation on or after attaining age 55 and completion of at least 5 years of service (inclusive of termination after attaining age 60 and completion of at least 10 years of service). 

(c) Certain Terminations Within Two Years After a Change of Control. Notwithstanding the foregoing provisions of Section 1, if,
prior to the Vesting Date, the Participant’s continuous employment with Key is terminated within two years following the date of a Change of Control for any reason other than a Voluntary Resignation (excluding a Voluntary Resignation
constituting a Retirement, as defined above) or a Termination for Cause, the target number of Performance Shares (or if such Change of Control and termination of employment occurs after the end of the Performance Period, the number of Performance
Shares earned under this Award Agreement based upon the Committee’s determination of the level of achievement of the Performance Goals) shall become immediately vested (without pro ration). 

2. Payment of Vested Performance Shares. Except as otherwise provided in Sections 1(b) or 1(c), any Performance Shares earned
pursuant to this Award Agreement shall become vested only if the Participant remains continuously employed by Key from the Date of Grant through the Vesting Date. Payment of any earned and vested Performance Shares shall be made in the form of whole
Common Shares, rounded down to the nearest Common Share, for each vested Performance Share. Payment shall occur as soon as practicable following the vesting of the Performance Shares but in no event later than two and one-half months after the
Vesting Date. 
 3. Dividend Equivalents. Dividend equivalents shall be credited on the target number of Performance Shares
which shall be deemed reinvested and be subject to the same terms and restrictions otherwise applicable to the Performance Shares (including but not limited to vesting requirements) under this Award Agreement, the Plan and the Acceptance Agreement.

 4. Harmful Activity. Notwithstanding any other provision of this Award Agreement to the contrary, if the Participant
engages in any Harmful Activity prior to or within twelve months after the Participant’s termination of employment with Key, then the Performance Shares shall be immediately forfeited without further action or notice, and any Common Shares
delivered in payment of the Award within one year prior to the Participant’s termination of employment, and any Profits realized by the Participant from the sale of such Common Shares, shall become immediately due and payable to KeyCorp on
KeyCorp’s demand. This Section 4 shall survive the termination of Participant’s employment. 
 5. KeyCorp’s Reservation of
Rights. As a condition of receiving this Award, the Participant acknowledges and agrees that Key intends to comply with the requirements of (a) the Dodd-Frank Wall Street Reform and

 
Consumer Protection Act (including clawback provisions), as the same may be amended from time to time; (b) the banking regulatory agencies’ Guidance on Sound Incentive Compensation
Policies; and (c) KeyCorp’s risk requirements and policies. As a condition of receiving this Award, the Participant understands and agrees that KeyCorp may, in its sole discretion, (x) decrease or cause the forfeiture of all or any part of
this Award, (y) initiate a clawback of all or any part of this Award, and/or (z) demand the Participant’s repayment to KeyCorp of any Common Shares paid to the Participant under this Award, or the Profits realized from the sale of such Common
Shares, if KeyCorp determines that such action is necessary or desirable. 
 6. Relation to Other Benefits. Any economic or
other benefit to the Participant under this Award Agreement shall not be taken into account in determining any benefits to which the Participant may be entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by
Key and shall not affect the amount of any life insurance coverage available to any beneficiary under any life insurance plan covering employees of Key. 

7. KeyCorp Stock Ownership Guidelines. If the Participant is subject to and has not met the KeyCorp Stock Ownership Guidelines,
the Participant may not sell or otherwise transfer the Common Shares provided upon vesting of the Award (if any) until and unless the Participant meets the Stock Ownership Guidelines or terminates employment with Key; provided, however, that
notwithstanding the foregoing, the Participant may sell the number of Common Shares necessary to satisfy any withholding tax obligation that may arise in connection with the vesting of this Award even the Participant has not met the Stock Ownership
Guidelines. 
 8. Taxes and Withholding. To the extent that Key is required to withhold any federal, state, local or other
taxes in connection with the delivery of Common Shares under this Award Agreement, then Key shall retain a number of Common Shares otherwise deliverable hereunder with a value equal to the required withholding (based on the Fair Market Value of the
Common Shares on the date of delivery); provided that in no event shall the value of the Common Shares retained exceed the minimum amount of taxes required to be withheld or such other amount that will not result in a negative accounting
impact. To the extent that Key is required to withhold any federal, state, local or other taxes at any time other than upon delivery of Common Shares under this Award Agreement, then Key shall have the right in its sole discretion to (a)
require the Participant to pay or provide for payment of the required tax withholding, or (b) deduct the required tax withholding from any other compensation payable in cash to the Participant. 

9. Entire Agreement; Amendments. This Award Agreement, along with the Plan and the related Acceptance Agreement, contains the
entire agreement and understanding of the parties with respect to the subject matter contained therein, and supersedes all prior written or oral communications, representations and negotiations in respect thereto. KeyCorp may modify or amend this
Award Agreement at any time upon written notice to the Participant, provided that KeyCorp may not amend this Award Agreement in a manner adverse to the interests of the Participant without the Participant’s consent. Notwithstanding any other
provision of this Award Agreement, if the Committee determines that a change in the business, operations, corporate structure or capital structure of KeyCorp, the manner in which it conducts business or other events or circumstances render the
Performance Goals to be unsuitable, the Committee may modify the Performance Goals and/or the related levels of achievement, in whole or in part, as the Committee deems appropriate. In the event of any inconsistency between the provisions of this
Award Agreement or the related Acceptance Agreement, on the one hand, and the Plan, on the other, the Plan shall govern. 
 10.
Administration. KeyCorp shall have the right, in accordance with the Plan, to determine any questions which arise in connection with the Award. All such determinations and decisions shall be final, conclusive and binding on all
persons, including Key, the Participant and the Participant’s estate and beneficiaries. 
 11. Successors and
Assigns. Without limiting Section 14.1 of the Plan, the provisions of this Award Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the
Participant, and the successors and assigns of KeyCorp. 
 12. Compliance with Section 409A of the Internal Revenue Code. To the
extent applicable, it is intended that this Award comply with the provisions of Section 409A of the Code (“Section 409A”). The Award shall 

 
accordingly be administered in a manner consistent with this intent, and any provision that would cause the Award to fail to satisfy Section 409A shall have no force and effect until amended to
comply with Section 409A. In particular, to the extent that the Participant’s right to receive payment under the Award becomes vested and the event triggering the Participant’s right to payment is the Participant’s termination of
employment, then notwithstanding anything herein to the contrary, payment will be made to the Participant, to the extent necessary to comply with Section 409A, on the earlier of (a) the Participant’s “separation from service”
(determined in accordance with Section 409A); provided, however, that if the Participant is a “specified employee” (determined in accordance with KeyCorp’s policies), the date of payment shall not occur until the first business day of
the seventh month following the date of the Participant’s separation from service with Key, or (b) the Participant’s death. Further, to the extent necessary to comply with Section 409A, a transaction shall be considered a Change of Control
only if it also qualifies as a “change in the ownership” a “change in the effective control” or a “change in the ownership of a substantial portion of the assets” of KeyCorp within the meaning of Section 409A. 

 APPENDIX A 

PERFORMANCE GOALS 
 The percentage of the
target number of Performance Shares earned (if any) pursuant to this Award Agreement will be determined by the Committee based upon the achievement of the Performance Goals set out in this Appendix A: 

 

													
	 Performance Goals
	  	Other Factors
(Vesting Reduction Only)
	 Performance Metric
	  	Weight	  	Threshold	  	Target	  	Upper-
Level	  	Stretch/
Maximum	  
	  	  	50%
Weighted
Vesting	  	100%
Weighted
Vesting	  	150%
Weighted
Vesting	  	200%
Weighted
Vesting	  
		  		  	[Intentionally Omitted]	  		  		  	

 The Committee shall determine the level of achievement of the Performance Goals within two and one-half months after the end
of the Performance Period in accordance with the provisions of this Award Agreement, the Plan and the Acceptance Agreement. Notwithstanding any other provision of the Award Agreement, the Committee may reduce the number of Performance Shares
otherwise vesting based on the Other Factors set forth above, as determined by the Committee in its sole discretion. 
 For purposes of the Award Agreement:

  

	 Synergies Realized: 
	The dollar value of synergies realized during the Performance Period as a result of and following the closing of the proposed merger of First Niagara Financial Group, Inc. with and into KeyCorp (the “Merger”). 

 

	 Core Deposit Retention: 
	The retention and/or growth in core deposits following the Merger, measured during the Performance Period against planned levels of core deposit retention or growth as presented to the Committee. 

 

	 Employee Retention: 
	The Committee’s assessment of the amount of regrettable losses during the Performance Period and in connection with the Merger. 

Except as may otherwise be determined by the Committee in its sole discretion, none of the Performance Shares will be earned if the Merger is not completed
during the Performance Period. 

 ACCEPTANCE AGREEMENT 

I acknowledge receipt of the attached Award and in consideration thereof, I accept such Award subject to the terms and conditions of the Plan, the Award
Agreement, and the restrictions that are set forth in this Acceptance Agreement. 
 I also understand and agree that the restrictions set forth in this
Acceptance Agreement are (i) in addition to, and do not in any way limit or vary the restrictions that are contained in any other agreement, plan, policy, or practice that are applicable to me as an employee of Key, and (ii) binding upon me
regardless of whether I vest, sell, transfer, pledge, hypothecate, or otherwise dispose of the Award or any of the Common Shares to be paid to me pursuant to the Award. 

1. I recognize the importance of preserving the confidentiality of Non-Public Information of Key, and I acknowledge and agree that: (a) during my
employment with Key, I will acquire, reproduce, and use such Non-Public Information only to the extent reasonably necessary for the proper performance of my duties; (b) both during and after my employment with Key, I will not use, publish, sell,
trade or otherwise disclose such Non-Public Information; and (c) upon the termination of my employment with Key, I will immediately return to Key all documents, data, and things in my possession or to which I have access that involve such Non-Public
Information. I also agree to enter into and to execute nondisclosure agreements in favor of Key and others doing business with Key with whom Key has a confidential relationship. 

2. I acknowledge and agree that the duties of my position at Key may include the development of Intellectual Property, and that any Intellectual Property
which I create with any of Key’s resources or assistance, or which pertains to the business of Key is the property of Key. I hereby agree and I hereby assign to Key all right, title, and interest in and absolute title to such Intellectual
Property, including, without limitation, copyrights, trademarks, service marks, and patents in or to (or associated with) such Intellectual Property and I agree that I will execute all patent applications and assignments thereof on Key’s behalf
without additional compensation. 
 3. Except in the proper performance of my duties for Key, I acknowledge and agree that from the date hereof
through a period of one (1) year after the termination of my employment with Key for any reason, I will not, directly or indirectly, for myself or on behalf of any other person or entity, hire or solicit or entice for employment any Key Employee,
without the written consent of Key (which consent Key may grant or withhold in its discretion). “Key Employees” shall include (i) all current Key employees, and (ii) all persons who were employed by Key at any time during the
six (6) month period prior to my termination from Key. 
 4. (a) Except in the proper performance of my duties for Key, I acknowledge and agree that
from the date hereof through a period of one (1) year after the termination of my employment with Key for any reason, I will not, directly or indirectly, for myself or on behalf of any other person or entity, call upon, solicit, or do business with
any Key customer or potential customer with whom I interacted, became acquainted, or learned of through access to information while employed at Key, without the written consent of Key (which consent Key may grant or withhold in its discretion). 

(b) In the event that my employment with Key is terminated as a result of a Termination Under Limited Circumstances, the restrictions in paragraph 4(a)
of this Acceptance Agreement shall become inapplicable to me; however, the restrictions in paragraphs 1, 2, and 3 of this Acceptance Agreement shall remain in full force and effect. 

5. The aforementioned restrictions in paragraphs 1, 2, 3 and 4(a) shall not apply in the event that, within the 2-year period commencing on a Change of
Control: (i) my employment with Key is terminated as a result of a Termination Under Limited Circumstances, or (ii) I terminate employment with Key after a relocation of my principal place of employment more than 35 miles from my principal place of
employment immediately prior to the Change of Control, or after a reduction in my base salary after a Change of Control. 
 6. I agree that the Plan,
the Award Agreement and this Acceptance Agreement will be governed by Ohio law without regard to conflicts of laws principles, and that if any term, condition, clause or provision of the Plan, the 

 
Award Agreement or this Acceptance Agreement is determined by a Court of competent jurisdiction to be void or invalid at law, then only that term, condition, clause or provision determined to be
void or invalid shall be stricken, and the remainder of the Plan, the Award Agreement and this Acceptance Agreement shall remain in full force and effect in all other aspects. 

I also understand and agree that if I engage in any activity that is in violation of the Plan, the Award Agreement or this Acceptance Agreement, such conduct
may cause serious damage and irreparable injury to Key, and Key at its election may terminate my employment (if I am still employed), seek monetary damages and attorney fees, and injunctive relief without the necessity of posting bond, as well as
any and all other equitable relief to which it may be entitled under the law, the Plan, the Award Agreement and this Acceptance Agreement. 

* * * * *tndm-ex105_17.htm

Exhibit 10.5

Execution Copy

AMENDMENT NO. 3 TO TERM LOAN AGREEMENT

THIS AMENDMENT NO. 3 TO TERM LOAN AGREEMENT (this “Amendment”), dated as of January 8, 2016, is made among TANDEM DIABETES CARE, INC., a Delaware corporation (the “Borrower”) and the financial institutions listed on the signature pages hereof under the heading “EXISTING TERM LOAN LENDERS” (each a “Lender” and, collectively, the “Lenders”).

The Borrower and the Lenders are parties to an Amended and Restated Term Loan Agreement dated as of April 4, 2014, as amended by that certain Consent and Amendment Agreement, dated as of June 20, 2014, and that certain Omnibus Amendment Agreement No. 2, dated as of February 23, 2015 (as so amended, the “Existing Term Loan Agreement”).

The parties acknowledge that the commitments of the lenders under the New Tranche Term Loan Agreement have expired as of March 31, 2015.  The Borrower has requested that the Lenders increase the amount of loans made available to the Borrower under the Existing Term Loan Agreement, in lieu of making new loans available under the New Tranche Term Loan Agreement.  The Lenders have agreed to such request and the parties hereto have agreed to amend the Existing Term Loan Agreement, subject to the terms and conditions hereof.  

Accordingly, the parties hereto agree as follows:

SECTION 1Definitions; Interpretation.

(a)Terms Defined in Existing Term Loan Agreement.  All capitalized terms used in this Amendment (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Existing Term Loan Agreement.

(b)Interpretation.  The rules of interpretation set forth in Section 1.03 of the Existing Term Loan Agreement shall be applicable to this Amendment and are incorporated herein by this reference.

SECTION 2Amendments.  

In reliance upon the representations and warranties of the Borrower set forth in this Amendment, the Existing Term Loan Agreement shall be amended as follows, effective as of the date hereof:

(a)The following definitions in Section 1.01 of the Existing Term Loan Agreement shall be amended and restated as follows:

““Amendment No. 3” means Amendment No. 3 to Term Loan Agreement, dated as of January 8, 2016, among Borrower and the Lenders party thereto.

 

1

Exhibit 10.5

“Amendment No. 3 Fee Letter” means the fee letter agreement dated as of January 8, 2016 among Borrower and the Lenders party thereto relating to Amendment No. 3.

 

“Borrowing Notice Date” means, (i) in the case of the second Borrowing of term loans, a date that is on or prior to January 19, 2016 and (ii) in the case of a subsequent Borrowing of term loans, a date that is at least twenty (20) Business Days prior to the Borrowing Date of such Borrowing.

 

“Commitment” means, with respect to each Lender, the obligation of such Lender to make Loans to the Borrower in accordance with the terms and conditions of this Agreement, which commitment is in the amount set forth opposite such Lender’s name on Schedule 1 under the caption “Commitment”, as such Schedule may be amended from time to time.  The aggregate Commitments on the date hereof equal $80,000,000. For purposes of clarification, the amount of

any PIK Loans shall not reduce the amount of the available Commitment.

 

“Commitment Period” means the period from and including the Closing Date and through and including December 31, 2016.

 

“Loan Documents” means, collectively, this Agreement, the Notes, the Security Documents, each Warrant, the Fee Letter, the Amendment No. 3 Fee Letter, any subordination agreement or any intercreditor agreement entered into by Lenders with any other creditors of Obligors, including the Capital Royalty Intercreditor Agreement, and any other present or future document, instrument, agreement or certificate executed by Obligors for the benefit of Lenders in connection with this Agreement or any of the other Loan Documents, all as amended, restated, or otherwise modified.

 

“Notice of Borrowing” has the meaning given to such term in Section 2.02.”

 

(b) Section 2.01 of the Existing Term Loan Agreement shall be amended and restated as follows:

“2.01 Commitments.  Each Lender agrees severally, on and subject to the terms and conditions of this Agreement (including Section 6), to make three tranches of term loans in multiple Borrowings (provided that PIK Loans shall be deemed not to constitute “term loans” for purposes of this Section 2.01) to the Borrower, on a Business Day during the Commitment Period in Dollars in an aggregate principal amount for such Lender not to exceed such Lender’s Commitment; provided, however, that at no time shall any Lender be obligated to make a Loan in excess of such Lender’s Proportionate Share of the amount by which the then effective Commitments exceeds the aggregate principal amount of Loans outstanding at such time.  The parties acknowledge that the first Borrowing of $30,000,000 in principal amount of Loans that occurred on the Closing Date constitutes the first tranche of such term loans.  Amounts of Loans repaid may not be reborrowed.”  

(c)The following provision shall be added as Section 2.02 of the Existing Term Loan Agreement:

2

Exhibit 10.5

“2.02  Borrowing Procedures.  Subject to the terms and conditions of this Agreement (including Section 6), the Borrowing of the term loans described in Section 2.01 shall be made on written notice in the form of Exhibit B given by the Borrower to the Lenders not later than 11:00 a.m. (Central time) on the Borrowing Notice Date (a “Notice of Borrowing”).”

(d)The following provisions shall be added as Sections 6.03 and 6.04 of the Existing Term Loan Agreement:

“6.03Conditions to Second Tranche Borrowing.  The obligation of each Lender to make a Loan as part of a second tranche of Borrowings of term loans is subject to the following conditions precedent:

 

(a)Borrowing Date. Such Borrowing of the second tranche of term loans under this Agreement shall occur on or around January 19, 2016.

 

(b) Amount of Second Tranche Borrowing. The amount of such Borrowing shall be $15,000,000.

 

(c)Secretary’s Certificate.  Borrower shall have delivered a Certificate of the Secretary of Borrower confirming approval by the Board of Directors of Borrower and good standing of the Borrower in Delaware and California.

 

6.04Conditions to Subsequent Borrowings.  The obligation of each Lender to make a Loan as part of a third tranche of Borrowings of term loans is subject to the following conditions precedent:

(a)Borrowing Date.  Such Borrowing must occur on or prior to December 31, 2016.

(b)Amount of Borrowing.  The amount of such Borrowing shall be at Borrower’s option, but must be in increments of $5,000,000, and all such Borrowings under this third tranche shall not exceed $35,000,000 in the aggregate.”

(e)Schedule 1 of the Existing Term Loan Agreement is hereby replaced in its entirety by Schedule 1 attached hereto.

(f)The attached Exhibit B shall be added to the Existing Term Loan Agreement as Exhibit B.

SECTION 3Conditions of Effectiveness.  

The effectiveness of Section 2 shall be subject to the following conditions precedent:

(a)Borrower and all of the Lenders shall have duly executed and delivered this Amendment and the Amendment No. 3 Fee Letter pursuant to Section 12.04 of the Existing Term Loan Agreement.  

(b)Borrower shall have paid or reimbursed Lenders for Lenders’ reasonable out of pocket costs and expenses incurred in connection with this Amendment and the Amendment No. 

3

Exhibit 10.5

3 Fee Letter, including Lenders’ reasonable out of pocket legal fees and costs, pursuant to Section 12.03(a)(i)(z) of the Existing Term Loan Agreement.

(c)Borrower shall have provided the Lenders (i) certified copies of the resolutions of the Board of Directors (or shareholders, if applicable) of Borrower authorizing the making and performance by it of this Amendment and the Amendment No. 3 Fee Letter, and (ii) official certificates of good standing in its jurisdiction of organization, dated no earlier than 30 days prior to the date hereof.

(d)The representations and warranties in Section 4 shall be true and correct on the date hereof.

SECTION 4Representations and Warranties; Reaffirmation.  To induce the Lenders to enter into this Amendment, the Borrower hereby represents and warrants to each Lender on the date hereof as follows:

(a)This Amendment is within the Borrower’s corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.  This Amendment has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

(b)Borrower hereby ratifies, confirms, reaffirms, and acknowledges its obligations under the Loan Documents to which it is a party and agrees that the Loan Documents to which it is a party remain in full force and effect, undiminished by this Amendment, except as expressly provided herein.  Borrower further ratifies, confirms, reaffirms, and acknowledges that all indebtedness and obligations of Borrower under the Loan Documents shall be secured by the Security Documents (including the Security Agreement), and confirms the validity, effect and enforceability of all Collateral and the guarantee of the Obligations by any Obligors.  By executing this Amendment, Borrower acknowledges that it has read, consulted with its attorneys regarding, and understands the Amendment.

(c)On the date hereof, after giving effect to this Amendment, no Default shall have occurred and be continuing.  

SECTION 5Miscellaneous.

(a)Existing Term Loan Agreement Otherwise Not Affected; No Waiver.  Except as expressly contemplated hereby, the Existing Term Loan Agreement shall remain unchanged and in full force and effect and is hereby ratified and confirmed in all respects.  Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Existing Term Loan Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties.  Except as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents.  All references in the respective Loan 

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Exhibit 10.5

Documents to the Existing Term Loan Agreement shall be deemed to be references to the Existing Term Loan Agreement as amended hereby.

(b)No Reliance.  The Borrower hereby acknowledges and confirms to the Lenders that the Borrower is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.

(c)Binding Effect.  This Amendment shall be binding upon, inure to the benefit of and be enforceable by the Borrower, each Lender and their respective successors and assigns.

(d)Governing Law.  This Amendment and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York. 

(e)Complete Agreement; Amendments.  This Amendment and the other Loan Documents, contains the entire and exclusive agreement of the parties hereto and thereto with reference to the matters discussed herein and therein.  This Amendment supersedes all prior commitments, drafts, communications, discussions and understandings, oral or written, with respect thereto.  This Amendment may not be modified, amended or otherwise altered except in accordance with the terms of Section 12.04 of the Existing Term Loan Agreement.

(f)Severability. Whenever possible, each provision of this Amendment shall be interpreted in such manner as to be effective and valid under all applicable laws and regulations.  If, however, any provision of this Amendment shall be prohibited by or invalid under any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Amendment, or the validity or effectiveness of such provision in any other jurisdiction.

(g)Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment.

(h)Interpretation.  This Amendment is the result of negotiations between and has been reviewed by counsel to the Lenders, the Borrower and other parties, and is the product of all parties hereto.  Accordingly, this Amendment shall not be construed against any of the Lenders merely because of any Lender’s involvement in the preparation thereof.

(i)Controlling Provisions.  In the event of any inconsistencies between the provisions of this Amendment and the provisions of any other Loan Document, the provisions of this Amendment shall govern and prevail.  Except as expressly modified by this Amendment, the Loan 

5

Exhibit 10.5

Documents shall not be modified and shall remain in full force and effect.  This Amendment shall be deemed a Loan Document.

 

 

[Remainder of page intentionally left blank]

6

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.

THE BORROWER

 

	
Tandem Diabetes Care, Inc.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Kim D. Blickenstaff

	
 
	
 
	
Name: Kim D. Blickenstaff

	
 
	
 
	
Title: President, Chief Executive Officer

[Signature Page 1 to Amendment No. 3 to Term Loan Agreemnent]

 

THE EXISTING TERM LOAN LENDERS

CAPITAL ROYALTY PARTNERS II L.P.

By CAPITAL ROYALTY PARTNERS II GP L.P., its General Partner

By CAPITAL ROYALTY PARTNERS II GP LLC, its General Partner

		
	
By:
	
/s/ Nate Hukill

	
 
	
Name: Nate Hukill

	
 
	
Title: Authorized Signatory

CAPITAL ROYALTY PARTNERS II – PARALLEL FUND “A” L.P. 

By CAPITAL ROYALTY PARTNERS II - PARALLEL FUND “A” GP L.P., its General Partner

By CAPITAL ROYALTY PARTNERS II – PARALLEL FUND “A” GP LLC, its General Partner

		
	
By:
	
/s/ Nate Hukill

	
 
	
Name: Nate Hukill

	
 
	
Title: Authorized Signatory

CAPITAL ROYALTY PARTNERS II (CAYMAN) L.P.

By CAPITAL ROYALTY PARTNERS II (CAYMAN) GP L.P., its General Partner

By: CAPITAL ROYALTY PARTNERS II (CAYMAN) GP LLC, its General Partner

 

		
	
By:
	
/s/ Nate Hukill

	
 
	
Name: Nate Hukill

	
 
	
Title: Authorized Signatory

 

 

WITNESS:

	
	
/s/ Nicole Nesson

	
Name: Nicole Nesson

[Signature Page 2 to Amendment No. 3 to Term Loan Agreemnent]

 

CAPITAL ROYALTY PARTNERS II – 

PARALLEL FUND “B” (CAYMAN) L.P. 

By CAPITAL ROYALTY PARTNERS II 

(CAYMAN) GP L.P., its General Partner

By CAPITAL ROYALTY PARTNERS II 

(CAYMAN) GP LLC, its General Partner

 

		
	
By:
	
/s/ Nate Hukill

	
 
	
Name: Nate Hukill

	
 
	
Title: Authorized Signatory

 

 

WITNESS:

	
	
/s/ Nicole Nesson

	
Name: Nicole Nesson

 

 

[Signature Page 3 to Amendment No. 3 to Term Loan Agreemnent]

 

Schedule 1

to Amended and Restated Term Loan Agreement

 

COMMITMENTS

 

			
	
Lender
	
Commitment
	
Proportionate Share

	
Capital Royalty Partners II L.P.
	
$8,640,000

 
	
10.80%

 

	
Capital Royalty Partners II – Parallel Fund “A” L.P.
	
$12,400,000

 
	
15.50%

 

	
Capital Royalty Partners II

(Cayman) L.P.
	
$7,040,000

 
	
8.80%

 

	
Capital Royalty Partners II – Parallel Fund “B” (Cayman) L.P.
	
$51,920,000

 
	
64.90%

 

	
TOTAL
	
$80,000,000
	
100%

 

 

 

Exhibit B 
to Amended and Restated Term Loan Agreement

Form of Notice of Borrowing

Date :  [__________]

To:Capital Royalty Partners II L.P. and the other Lenders

1000 Main Street, Suite 2500
Houston, TX 77002
Attn:General Counsel

Re:  Borrowing under Amended and Restated Term Loan Agreement

Ladies and Gentlemen:

The undersigned, Tandem Diabetes Care, Inc., a Delaware corporation (“Borrower”), refers to the Amended and Restated Term Loan Agreement, dated as of April 4, 2014 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), among Borrower, Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P., Capital Royalty Partners II (Cayman) L.P.,  Capital Royalty Partners II – Parallel Fund “B” (Cayman) L.P. and other parties from time to time party thereto as lenders (“Lenders”), and the subsidiary guarantors from time to time party thereto.  The terms defined in the Loan Agreement are herein used as therein defined.

Borrower hereby gives you notice irrevocably, pursuant to Section 2.02 of the Loan Agreement, of the borrowing of the Loan specified herein:

1.The proposed Borrowing Date is [__________].

2.The amount of the proposed Borrowing is $[__________].

3.The payment instructions with respect to the funds to be made available to the Borrower are as follows:

Bank name:[__________]

Bank Address:[__________]

Routing Number:[__________]

Account Number:[__________]

Swift Code:[__________]

The Borrower hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed borrowing of the Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

a)subject to the updated Schedules attached hereto and such updated Schedules delivered by the Borrower pursuant to Section 7.21 of the Loan Agreement, the representations and warranties made by the Borrower in Section 7 of the Loan Agreement shall be true on and as 

 

 

of the Borrowing Date and immediately after giving effect to the application of the proceeds of the Borrowing with the same force and effect as if made on and as of such date except that the representation regarding representations and warranties that refer to a specific earlier date shall be that they were true on such earlier date;  

b)on and as of the Borrowing Date, there shall have occurred no Material Adverse Change since [__________]; and

c)no Default exists or would result from such proposed borrowing.

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