Exhibit 10.1

 

FOURTH AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

 

This Fourth Amendment to Loan and Security Agreement is entered into as of June
29, 2005 (the “Amendment”), by and between COMERICA BANK (“Bank”) and BIOMARIN
PHARMACEUTICAL INC. (“Borrower”).

 

RECITALS

 

Borrower and Bank are parties to that certain Loan and Security Agreement dated
as of May 14, 2004, as amended by a First Amendment to Loan and Security
Agreement dated as of November 3, 2004 and a Second Amendment to Loan and
Security Agreement dated February 15, 2005 and a Third Amendment to Loan and
Security Agreement dated April 29, 2005 (collectively, the “Agreement”). The
parties desire to amend the Agreement in accordance with the terms of this
Amendment.

 

NOW, THEREFORE, the parties agree as follows:

 

1. Section 6.8 of the Agreement is hereby amended in its entirety to read as
follows:

 

6.8 Financial Covenant. Measured as of the last day of each month, the balance
of Borrower’s unrestricted cash as reflected on its balance sheet shall be at
least the greater of (i) the Minimum Cash Amount and (ii) the sum of (A) the
Applicable Multiple times Borrower’s Cash Burn, plus (B) any Acquisition
Payments due in the month ending on the date of measurement, plus (C) any
additional Acquisition Payments due in the two months immediately following the
month ending on the date of measurement.

 

As used herein, “Cash Burn” means (i) the change in Borrower’s cash during the
three months immediately preceding the date of measurement, net of any changes
in debt, stock, paid-in capital and minority interests, and calculated without
reference to or inclusion of any Acquisition Payments, divided by (ii) three
(3). As used herein, “Acquisition Payments” means scheduled payments provided
for in the License Agreement.

 

As used herein, the “Applicable Multiple” means six (6). As used herein,
“Minimum Cash Amount” means (i) Forty Million Dollars ($40,000,000) for the
month ending June 30, 2005 and (ii) Forty Five Million Dollars ($45,000,000) for
all other months.

 

2. The Compliance Certificate to be delivered after the date of this Agreement
shall be in substantially the form of Exhibit C hereto.

 

3. Unless otherwise defined, all initially capitalized terms in this Amendment
shall be as defined in the Agreement. The Agreement, as amended hereby, shall be
and remain in full force and effect in accordance with its respective terms and
hereby is ratified and confirmed in all respects. Except as expressly set forth
herein, the execution, delivery, and performance of this Amendment shall not
operate as a waiver of, or as an amendment of, any right, power, or remedy of
Bank under the Agreement, as in effect prior to the date hereof. Borrower
ratifies and reaffirms the continuing effectiveness of all applications,
instruments, documents and agreements entered into in connection with the
Agreement.

 

4. Borrower represents and warrants that the representations and warranties
contained in the Agreement are true and correct as of the date of this
Amendment, and that no Event of Default has occurred and is continuing.

 

5. This Amendment may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one
instrument.

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6. As a condition to the effectiveness of this Amendment, Bank shall have
received, in form and substance satisfactory to Bank, the following:

 

(a) this Amendment, duly executed by Borrower;

 

(b) an amount equal to all Bank Expenses incurred through the date of this
Amendment; and

 

(c) such other documents, and completion of such other matters, as Bank may
reasonably deem necessary or appropriate.

 

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

 

BIOMARIN PHARMACEUTICAL INC. By:  

/s/ Jeffrey Cooper

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Title:   Controller COMERICA BANK By:  

/s/ —Illegible—

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Title:   Corporate Banking Officer

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EXHIBIT C

 

COMPLIANCE CERTIFICATE

 

TO:    COMERICA BANK FROM:    BIOMARIN PHARMACEUTICAL INC.

 

The undersigned Responsible Officer of BIOMARIN PHARMACEUTICAL INC. hereby
certifies that in accordance with the terms and conditions of the Loan and
Security Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is
in complete compliance for the period ending                      with all
required covenants except as noted below and (ii) all representations and
warranties of Borrower stated in the Agreement are true and correct in all
material respects as of the date hereof, except for such representations and
warranties which speak as to a specific date, which are true and correct as of
such date. Attached herewith are the required documents supporting the above
certification. The Responsible Officer further certifies that these are prepared
in accordance with Generally Accepted Accounting Principles (GAAP) and are
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.

 

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

 

Reporting Covenant

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Required

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   Complies

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Form 10Q    Filed Quarterly within 45 days    Yes    No Form 10K    Filed FYE
within 90 days    Yes    No

Financial Covenant

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Required

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   Actual

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   Complies

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Unrestricted Cash    Greater of 6x RML or $45,000,000*    $                 Yes
   No Unrestricted Cash at Bank    Greater of $10,000,000 and balance of
outstanding principal obligations to Bank    $                 Yes    No

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* Greater of 6x RML or $40,000,000 for month ending June 30, 2005

 

Comments Regarding Exceptions: See Attached.    BANK USE ONLY      Received by:
  

 

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Sincerely,    AUTHORIZED SIGNER

 

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   Date:   

 

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SIGNATURE    Verified:   

 

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AUTHORIZED SIGNER

 

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   Date:   

 

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TITLE               

 

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   Compliance Status    Yes         No DATE