Exhibit 10.5

 

[Execution Version]

 

LIQUIDIA TECHNOLOGIES, INC.

 

LOAN AND SECURITY AGREEMENT

 











 

This LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of January 6, 2016, by and between PACIFIC WESTERN BANK, a California state chartered bank (“Bank”) and LIQUIDIA TECHNOLOGIES, INC., a Delaware corporation (“Borrower”).

 

RECITALS

 

Borrower wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth the terms on which Bank will advance credit to Borrower and Borrower will repay the amounts owing to Bank.

 

AGREEMENT

 

The parties agree as follows:

 

1.                                      DEFINITIONS AND CONSTRUCTION.

 

1.1                               Definitions. As used in this Agreement, all capitalized terms shall have the definitions set forth on Exhibit A. Any term used in the Code and not defined herein shall have the meaning given to the term in the Code.

 

1.2                               Accounting Terms. Any accounting term not specifically defined on Exhibit A shall be construed in accordance with GAAP and all calculations shall be made in accordance with GAAP (except for non-compliance with FAS 123R in monthly reporting). The term “financial statements” shall include the accompanying notes and schedules.

 

2.                                      LOAN AND TERMS OF PAYMENT.

 

2.1                               Credit Extensions.

 

(a)                                 Promise to Pay. Borrower promises to pay to Bank, in lawful money of the United States of America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof.

 

(b)                                 Term Loan.

 

(i)                          Subject to and upon the terms and conditions of this Agreement, Bank agrees to make one (1) or more term loans to Borrower in an aggregate principal amount not to exceed $3,000,000 (each a “Term Loan”, and, collectively, the “Term Loans”). Borrower may request Term Loans at any time from the date hereof through the Availability End Date, provided that each Term Loan so requested shall be in the principal amount of $250,000 or an integral multiple thereof. The proceeds of the Term Loans shall be used for general working capital purposes and for capital expenditures.

 

(ii)                      Interest shall accrue from the date of each Term Loan at the rate specified in Section 2.3(a) and, prior to the Availability End Date for the applicable Term Loan, shall be payable monthly beginning on the 18th day of the month next following such Term Loan and continuing on the same day of each month thereafter. Any Term Loans that

 

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are outstanding on the Availability End Date shall be payable in thirty (30) equal monthly installments of principal, plus all accrued interest, beginning on August 6, 2017, and continuing on the same day of each month thereafter through the Term Loan Maturity Date, at which time all amounts due in connection with the Term Loans and any other amounts due under this Agreement shall be immediately due and payable. Term Loans, once repaid, may not be reborrowed. Borrower may prepay any Term Loan without penalty or premium.

 

(iii)                  When Borrower desires to obtain a Term Loan, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission to be received no later than 3:30 p.m. Eastern time on the Business Day prior to the date on which the Term Loan is to be made. Such notice shall be substantially in the form of Exhibit C. The notice shall be signed by an Authorized Officer.

 

(c)                                          Usage of Credit Card Services Under the Credit Card Line.

 

(i)                          Usage Period. Subject to and upon the terms and conditions of this Agreement, at any time from the Closing Date through the Credit Card Maturity Date, Borrower may use the Credit Card Services (as defined below) in amounts and upon terms as provided in Section 2.1(c)(ii) below.

 

(ii)                      Credit Card Services. Subject to and upon the terms and conditions of this Agreement, Borrower may request corporate credit cards and standard and e-commerce merchant account services from Bank (collectively, the “Credit Card Services”). The aggregate limit of the corporate credit cards and merchant credit card processing reserves shall not exceed the Credit Card Line. The terms and conditions (including repayment and fees) of such Credit Card Services shall be subject to the terms and conditions of Bank’s standard forms of application and agreement for the Credit Card Services, which Borrower hereby agrees to execute.

 

(iii)                  Collateralization of Obligations Extending Beyond Maturity. If Borrower has not cash secured its obligations with respect to any Credit Card Services by the Credit Card Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates or accounts), shall automatically secure such obligations to the extent of the then continuing or outstanding Credit Card Services. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the applicable Credit Card Services are outstanding or continue.

 

2.2                               [Reserved].

 

2.3                               Interest Rates, Payments, and Calculations.

 

(a)                                 Interest Rates. Except as set forth in Section 2.3(b), the Term Loans shall bear interest, on the outstanding daily balance thereof, at a rate equal to (i) 3.75% for

 

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the period commencing on the Closing Date and ending on the Availability End Date, and (ii) 5.00% commencing on the day immediately following the Availability End Date.

 

(b)                                 Late Fee; Default Rate. If any payment is not made within fifteen (15) days after the date such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i) 5% of the amount of such unpaid amount or (ii) the maximum amount permitted to be charged under applicable law. All Obligations shall bear interest, from and after the occurrence and during the continuance of an Event of Default, at a rate equal to five (5) percentage points above the interest rate applicable immediately prior to the occurrence of the Event of Default.

 

(c)                                  Payments. Bank shall, at its option, charge interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts. Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder.

 

(d)                                 Computation. All interest chargeable under the Loan Documents shall be computed on the basis of a three hundred sixty (360)-day year for the actual number of days elapsed.

 

2.4                               Crediting Payments. Other than any time after the occurrence and during the continuation of an Event of Default, Bank shall credit a wire transfer of funds, check or other item of payment to such deposit account or Obligation as Borrower specifies, except that, to the extent Borrower uses the Term Loans to purchase Collateral, Borrower’s repayment of the Term Loans shall apply on a “first-in-first-out” basis so that the portion of the Term Loans used to purchase a particular item of Collateral shall be paid in the chronological order Borrower purchased the Collateral. After the occurrence and during the continuance of an Event of Default, Bank shall have the right, in its sole discretion, to immediately apply any wire transfer of funds, check, or other item of payment Bank may receive to conditionally reduce Obligations, but such application of funds shall not be considered a payment on account unless such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when presented for payment. Notwithstanding anything to the contrary contained herein, any wire transfer or payment received by Bank after 5:30 p.m. Eastern time shall be deemed to have been received by Bank as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents would otherwise be due (except by reason of acceleration) on a date that is not a Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period of such extension.

 

2.5                               Fees. Borrower shall pay to Bank the following:

 

(a)                                 Facility Fee. On or before the Closing Date, a fee equal to $15,000 ($5,000 of which was paid upon delivery of that certain Expression of Interest dated August 20, 2015), which shall be nonrefundable;

 

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(b)                                 Success Fee. Upon the occurrence of a Liquidity Event, a one-time success fee equal to $100,000, which shall be nonrefundable. This Section 2.5(b) shall survive any termination of this Agreement.

 

(c)                                  Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date and, after the Closing Date, all Bank Expenses, as and when they become due.

 

2.6                               Term. This Agreement shall become effective on the Closing Date and, subject to Section 12.7, shall continue in full force and effect for so long as any Obligations (other than inchoate indemnity obligations) remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement. Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default.

 

3.                                      CONDITIONS OF LOANS.

 

3.1                               Conditions Precedent to Closing. The agreement of Bank to enter into this Agreement on the Closing Date is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, each the following items and completed each of the following requirements:

 

(a)                                 this Agreement;

 

(b)                                 an officer’s certificate of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Agreement;

 

(c)                                  a financing statement (Form UCC-1);

 

(d)                                 payment of the fees and Bank Expenses then due specified in Section 2.5, which may be debited from any of Borrower’s accounts with Bank;

 

(e)                                  current SOS Reports indicating that, except for Permitted Liens, there are no other security interests or Liens of record in the Collateral;

 

(f)                                   current financial statements, including audited statements (or such other level required by the Investment Agreement) for Borrower’s most recently ended fiscal year, together with an unqualified opinion (or an opinion qualified only for going concern so long as Borrower’s investors provide additional equity as needed), company prepared consolidated and consolidating balance sheets, income statements and statements of cash flows for the most recently ended month in accordance with Section 6.2, and such other updated financial information as Bank may reasonably request;

 

(g)                                 current Compliance Certificate in accordance with Section 6.2;

 

(h)                                 a Borrower Information Certificate;

 

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(i)                                    evidence satisfactory to Bank that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and additional insured clauses or endorsements in favor of Bank;

 

(j)                                    such other documents or certificates, and completion of such other matters, as Bank may reasonably request; and

 

(k)                                 Borrower shall have opened and funded not less than $50,000 in deposit accounts held with Bank.

 

3.2                                       Conditions Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension, is contingent upon Borrower’s compliance with Section 3.1 above and is further subject to the following conditions:

 

(a)                                 timely receipt by Bank of the Loan Advance/Paydown Request Form as provided in Section 2.1;

 

(b)                                 Borrower shall have transferred substantially all of its Cash assets into operating accounts held with Bank and shall otherwise be in compliance with Section 6.6 hereof;

 

(c)                                  in Bank’s sole discretion, there has not been a Material Adverse Effect; and

 

(d)                                 the representations and warranties contained in Article 5 shall be true and correct in all material respects on and as of the date of such Loan Advance/Paydown Request Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date). The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2.

 

4.                                      CREATION OF SECURITY INTEREST.

 

4.1                               Grant of Security Interest. Borrower grants and pledges to Bank a continuing security interest in the Collateral to secure prompt repayment of any and all Obligations and to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents. Except for Permitted Liens or as disclosed in the Schedule, such security interest constitutes a valid, first priority security interest in the presently existing Collateral and will constitute a valid, first priority security interest in later-acquired Collateral. Borrower also hereby agrees not to sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber any of its Intellectual Property, except for any Permitted Transfers. Notwithstanding any termination of this Agreement or of any filings undertaken related to Bank’s rights under the Code, Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations (other than inchoate indemnity obligations) are outstanding.

 

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4.2                               Perfection of Security Interest. Borrower authorizes Bank to file at any time financing statements, continuation statements, and amendments thereto that (a) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder, and (b) contain any other information required by the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, including whether Borrower is an organization, the type of organization and any organizational identification number issued to Borrower, if applicable. Borrower shall have possession of the Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to perfect its security interest by possession in addition to the filing of a financing statement. Where Collateral is in possession of a third-party bailee, Borrower shall take such steps as Bank reasonably requests for Bank to (x) subject to Section 7.11 below, obtain an acknowledgment, in form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank, and (y) obtain “control” of any Collateral consisting of investment property, deposit accounts, letter-of-credit rights or electronic chattel paper (as such items and the term “control” are defined in Revised Article 9 of the Code) by causing the securities intermediary or depositary institution or issuing bank to execute a control agreement in form and substance satisfactory to Bank. Borrower will not create any chattel paper without placing a legend on the chattel paper acceptable to Bank indicating that Bank has a security interest in the chattel paper. Borrower from time to time may deposit with Bank specific cash collateral to secure specific Obligations; Borrower authorizes Bank to hold such specific balances in pledge and to decline to honor any drafts thereon or any request by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the specific Obligations are outstanding. Borrower shall take such other actions as Bank requests to perfect its security interests granted under this Agreement.

 

5.                                      REPRESENTATIONS AND WARRANTIES.

 

Borrower represents and warrants as follows:

 

5.1                               Due Organization and Qualification. Borrower and each Subsidiary is duly existing under the laws of the state in which it is organized and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect.

 

5.2                               Due Authorization; No Conflict. The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s Certificate of Incorporation or Bylaws, nor will they constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement by which it is bound, including that certain Amended and Restated License Agreement dated December 15, 2008 by and between the University of North Carolina at Chapel Hill and Borrower, except to the extent such default would not reasonably be expected to cause a Material Adverse Effect.

 

5.3                               Collateral. Borrower has rights in or the power to transfer the Collateral, and its title to the Collateral is free and clear of Liens, adverse claims, and restrictions on transfer

 

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or pledge except for Permitted Liens. Other than movable items of personal property such as laptop computers, all Collateral having an aggregate book value in excess of $100,000 is located solely in the Collateral States. All Inventory is in all material respects of good and merchantable quality, free from all material defects, except for Inventory for which adequate reserves have been made. Except as set forth in the Schedule, none of Borrower’s Cash is maintained or invested with a Person other than Bank or Bank’s Affiliates.

 

5.4                               Intellectual Property. Borrower’s Intellectual Property is set forth on Schedule 5.4 hereto. Borrower is the licensee, joint owner or sole owner of the Intellectual Property, as set forth on Schedule 5.4, except for licenses granted by Borrower in the ordinary course of business. To Borrower’s knowledge, each of the Copyrights, Patents and Trademarks created or purchased by Borrower is valid and enforceable, and no part of the Intellectual Property created or purchased by Borrower has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower that any part of the Intellectual Property created or purchased by Borrower violates the rights of any third party except to the extent such claim would not reasonably be expected to cause a Material Adverse Effect.

 

5.5                               Name; Location of Chief Executive Office. Except as disclosed in the Schedule, Borrower has not done business under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement. The chief executive office of Borrower is located at the address indicated in Article 10 hereof.

 

5.6                               Litigation. Except as set forth in the Schedule, there are no actions or proceedings pending by or against Borrower or any Subsidiary before any court or administrative agency in which a likely adverse decision would reasonably be expected to have a Material Adverse Effect.

 

5.7                               No Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in all material respects Borrower’s consolidated and consolidating financial condition as of the date thereof and Borrower’s consolidated and consolidating results of operations for the period then ended. There has not been a material adverse change in the consolidated or in the consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank.

 

5.8                               Solvency, Payment of Debts. Borrower is able to pay its debts (including trade debts) as they mature; the fair saleable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital after the transactions contemplated by this Agreement.

 

5.9                               Compliance with Laws and Regulations. Borrower and each Subsidiary have met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s incurring any liability that could have a Material Adverse Effect. Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940.

 

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Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which would reasonably be expected to have a Material Adverse Effect. Borrower and each Subsidiary have filed or caused to be filed all tax returns required to be filed and have paid, or have made adequate provision for the payment of, all taxes reflected therein except those being contested in good faith with adequate reserves under GAAP or where the failure to file such returns or pay such taxes would not reasonably be expected to have a Material Adverse Effect.

 

5.10                        Subsidiaries. Borrower does not own any stock, partnership interest or other equity securities of any Person, except for Permitted Investments.

 

5.11                        Government Consents. Borrower and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of Borrower’s business as currently conducted, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect.

 

5.12                        Inbound Licenses. Except as disclosed on the Schedule, Borrower is not a party to, nor is bound by, any material license or other agreement important for the conduct of Borrower’s business that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property important for the conduct of Borrower’s business, other than this Agreement or the other Loan Documents.

 

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

 

6.                                      AFFIRMATIVE COVENANTS.

 

Borrower covenants that, until payment in full of all outstanding Obligations (other than inchoate indemnity obligations) and for so long as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all of the following:

 

6.1                               Good Standing and Government Compliance. Borrower shall maintain its and each of its Subsidiaries’ corporate existence and good standing in the respective states of formation, shall maintain qualification and good standing in each other jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect, and shall furnish to Bank the organizational identification number issued to Borrower by the authorities of the state in which Borrower is organized, if applicable. Borrower shall meet, and shall cause

 

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each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject and shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply with which would reasonably be expected to have a Material Adverse Effect.

 

6.2                               Financial Statements, Reports, Certificates. Borrower shall deliver to Bank: (a) as soon as available, but in any event within thirty (30) days after the end of each calendar month, a company prepared consolidated and consolidating balance sheet, income statement, and statement of cash flows covering Borrower’s operations during such period, in a form reasonably acceptable to Bank and certified by a Responsible Officer; (b) as soon as available, but in any event: (i) on or prior to November 15, 2015 with respect to the fiscal year of Borrower ended December 31, 2014 and (ii) within one hundred eighty (180) days after the end of each fiscal year of Borrower thereafter, audited (or such other level as is required by the Investment Agreement) consolidated and consolidating financial statements of Borrower prepared in accordance with GAAP, consistently applied, together with an opinion which is either unqualified, qualified only for going concern so long as Borrower’s investors provide additional equity as needed or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (c) an annual budget approved by Borrower’s board of directors as soon as available but not later than January 15th of each year during the term of this Agreement; (d) if applicable, copies of all statements, reports and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; (e) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could reasonably be expected to result in damages or costs to Borrower or any Subsidiary of $250,000 or more; (f) promptly upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s management control systems; and (g) such budgets, sales projections, operating plans or other financial information generally prepared by Borrower in the ordinary course of business as Bank may reasonably request from time to time.

 

(x)                                 Within thirty (30) days after the last day of each month, Borrower shall deliver to Bank with the monthly financial statements a Compliance Certificate certified as of the last day of the applicable month and signed by a Responsible Officer in substantially the form of Exhibit D hereto.

 

(y)                                 As soon as possible and in any event within three (3) calendar days after becoming aware of the occurrence or existence of an Event of Default hereunder, Borrower shall deliver a written statement of a Responsible Officer setting forth details of the Event of Default and the action which Borrower has taken or proposes to take with respect thereto.

 

(z)                                  Bank (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect Borrower’s Books and to make copies thereof and to check, test, inspect, audit, and

 

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appraise the Collateral at Borrower’s expense in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to the Collateral.

 

Borrower may deliver to Bank on an electronic basis any certificates, reports or information required pursuant to this Section 6.2, and Bank shall be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer. Borrower shall include a submission date on any certificates and reports to be delivered electronically.

 

6.3          Inventory and Equipment; Returns. Borrower shall keep all Inventory and Equipment in good and merchantable condition, free from all material defects except for Inventory and Equipment (a) sold in the ordinary course of business, and (b) for which adequate reserves have been made, in all cases in the United States and such other locations as to which Borrower gives prior written notice. Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist on the Closing Date. Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving Inventory having a book value of more than $100,000.

 

6.4          Taxes. Borrower shall make, and cause each Subsidiary to make, due and timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A., and state disability, and will execute and deliver to Bank, on demand, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower or such Subsidiary.

 

6.5          Insurance. Borrower, at its expense, shall (a) keep the Collateral insured against loss or damage, and (b) maintain liability and other insurance, in each case as ordinarily insured against by other owners in businesses similar to Borrower’s. All such policies of insurance shall be in such form, with such companies, and in such amounts as reasonably satisfactory to Bank. All policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an additional loss payee, and all liability insurance policies shall show Bank as an additional insured and specify that the insurer must give at least twenty (20) days’ notice to Bank before canceling its policy for any reason. Within thirty (30) days of the Closing Date, Borrower shall cause to be furnished to Bank a copy of its policies or certificate of insurance including any endorsements covering Bank or showing Bank as an additional insured. Upon Bank’s request, Borrower shall deliver to Bank certified copies of the policies of insurance and evidence of all premium payments. Proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property subject to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been granted a first priority security interest, provided that, if an Event of Default has occurred and is continuing, all proceeds payable under any such policy shall, at Bank’s option, be payable to Bank to be applied on account of the Obligations.

 

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6.6          Primary Depository. Subject to the provisions of Sections 3.1(k) and 3.2(b), Borrower within thirty (30) days of the Closing Date shall maintain all of its depository and operating accounts with Bank and all of its investment accounts with Bank or Bank’s Affiliates; provided that, prior to maintaining any investment accounts with Bank’s Affiliates, Borrower, Bank, and any such Affiliate shall have entered into a securities account control agreement with respect to any such investment accounts, in form and substance satisfactory to Bank. Notwithstanding the above, (a) Borrower shall be permitted to maintain Cash at Bank of America, N.A., provided that (i) the total aggregate amount of Cash maintained by Borrower at Bank of America, N.A. does not exceed $5,000,000 at any time and (ii) Borrower at all times maintains a balance of Cash at Bank of not less than 120% of Borrower’s Indebtedness to Bank, and (b) Borrower shall be permitted to maintain Cash in one or more other accounts outside of Bank, provided that the total aggregate amount of Cash maintained in such accounts does not exceed $20,000 at any time.

 

6.7          Consent of Inbound Licensors. Prior to entering into or becoming bound by any material inbound license or agreement, Borrower shall: (a) provide written notice to Bank of the material terms of such license or agreement with a description of its likely impact on Borrower’s business or financial condition; and (b) in good faith use commercially reasonable efforts to obtain the consent of, or waiver by, any Person whose consent or waiver is necessary for Borrower’s interest in such licenses or contract rights to be deemed Collateral and for Bank to have a security interest in it that might otherwise be restricted by the terms of the applicable license or agreement, whether now existing or entered into in the future, provided, however, that the failure to obtain any such consent or waiver shall not constitute a default under this Agreement.

 

6.8          Creation/Acquisition of Subsidiaries. In the event that Borrower or any Subsidiary of Borrower creates or acquires any Subsidiary, Borrower or such Subsidiary shall promptly notify Bank of such creation or acquisition, and Borrower or such Subsidiary shall take all actions reasonably requested by Bank to achieve any of the following with respect to such “New Subsidiary” (defined as a Subsidiary formed after the date hereof during the term of this Agreement): (a) to cause New Subsidiary to become either a co-Borrower hereunder, if such New Subsidiary is organized under the laws of the United States, or a secured guarantor with respect to the Obligations; and (b) to grant and pledge to Bank a perfected security interest in 100% of the stock, units or other evidence of ownership held by Borrower or its Subsidiaries of any such New Subsidiary which is organized under the laws of the United States, and 65% of the stock, units or other evidence of ownership held by Borrower or its Subsidiaries of any such New Subsidiary which is not organized under the laws of the United States.

 

6.9          Further Assurances. At any time and from time to time Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to effect the purposes of this Agreement.

 

7.             NEGATIVE COVENANTS.

 

Borrower covenants and agrees that, so long as any credit hereunder shall be available and until the outstanding Obligations (other than inchoate indemnity obligations) are paid in full or for so long as Bank may have any commitment to make any Credit Extensions, Borrower will

 

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not do any of the following without Bank’s prior written consent, which shall not be unreasonably withheld:

 

7.1          Dispositions. Convey, sell, lease, license, transfer or otherwise dispose of (collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, or move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers.

 

7.2          Change in Name, Location, Executive Office, or Executive Management; Change in Business; Change in Fiscal Year; Change in Control. Change its name or the state of Borrower’s formation or relocate its chief executive office without thirty (30) days’ prior written notification to Bank; replace or suffer the departure of its chief executive officer or chief financial officer without delivering written notification to Bank within 10 days; fail to appoint an interim replacement or fill a vacancy in the position of chief executive officer or chief financial officer for more than thirty (30) consecutive days; suffer a change on its board of directors which results in the failure of at least one partner of either New Enterprise Associates or Canaan Partners or their respective Affiliates to serve as a voting member, or suffer the resignation of one or more directors from its board of directors in anticipation of Borrower’s insolvency, in either case without the prior written consent of Bank which may be withheld in Bank’s sole discretion take action to liquidate, wind up or otherwise cease to conduct business in the ordinary course; engage in any business, or permit any of its Subsidiaries to engage in any business, other than as reasonably related or incidental to the businesses currently engaged in by Borrower; change its fiscal year end; have a Change in Control.

 

7.3          Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower) or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person except where (a) each of the following conditions is applicable: (i) the consideration paid in connection with such transactions (including assumption of liabilities) does not in the aggregate exceed $250,000 during any fiscal year, (ii) no Event of Default has occurred, is continuing or would exist after giving effect to such transactions, (iii) such transactions do not result in a Change in Control, and (iv) Borrower is the surviving entity; or (b) the Obligations are repaid in full concurrently with the closing of any merger or consolidation of Borrower in which Borrower is not the surviving entity; provided, however, that Borrower shall not, without Bank’s prior written consent, enter into any binding contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower, unless (i) no Event of Default exists when such agreement is entered into by Borrower, (ii) such agreement does not give such Person the right to claim any fee, payment or damages from any parties, other than from Borrower or Borrower’s investors, in connection with a sale of Borrower’s stock or assets pursuant to or resulting from an assignment for the benefit of creditors, an asset turnover to Borrower’s creditors (including, without limitation, Bank), foreclosure, bankruptcy or similar liquidation, and (iii) Borrower notifies Bank in advance of entering into such an agreement (provided that, the failure to give such notification shall not be deemed a material breach of this Agreement).

 

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7.4          Indebtedness. Create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness, except Indebtedness to Bank.

 

7.5          Encumbrances. Create, incur, assume or allow any Lien with respect to its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other Person (other than (a) the licensors of in-licensed property with respect to such property or (b) the lessors of specific equipment or lenders financing specific equipment with respect to such leased or financed equipment) that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s property.

 

7.6          Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any capital stock, except that Borrower may (a) repurchase the stock of former employees or directors pursuant to stock repurchase agreements in an aggregate amount not to exceed $250,000 in any fiscal year, so long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase, and (b) repurchase the stock of former employees or directors pursuant to stock repurchase agreements in any amount where the consideration for the repurchase is the cancellation of indebtedness owed by such former employees or directors to Borrower regardless of whether an Event of Default exists.

 

7.7          Investments. Directly or indirectly acquire or own an Investment in, or make any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments, or maintain or invest any of its investment property with a Person other than Bank or permit any Subsidiary to do so unless such Person has entered into a control agreement with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise distributing property to Borrower.

 

7.8          Capitalized Expenditures. Make Capitalized Expenditures in excess of $500,000 in the aggregate in any fiscal year of Borrower.

 

7.9          Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for (a) transactions that are in the ordinary course of Borrower’s business and (b) bona-fide equity financings with existing investors that do not result in a Change in Control, in each case upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s-length transaction with a non-affiliated Person.

 

7.10        Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent.

 

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7.11        Inventory and Equipment. Store the Inventory or the Equipment of a book value in excess of $100,000 with a bailee, warehouseman, collocation facility or similar third party unless the third party has been notified of Bank’s security interest and Bank (a) has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Bank’s benefit or (b) is in possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment. Except for Inventory sold in the ordinary course of business and for movable items of personal property having an aggregate book value not in excess of $100,000, and, except for such other locations as Bank may approve in writing, Borrower shall keep the Inventory and Equipment only at the location set forth in Article 10 and such other locations of which Borrower gives Bank prior written notice and as to which Bank is able to take such actions as may be necessary to perfect its security interest or to obtain a bailee’s acknowledgment of Bank’s rights in the Collateral.

 

7.12        No Investment Company; Margin Regulation. Become or be controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose of purchasing or carrying margin stock or use the proceeds of any Credit Extension for such purpose.

 

8.             EVENTS OF DEFAULT.

 

Any one or more of the following events shall constitute an Event of Default by Borrower under this Agreement:

 

8.1          Payment Default. If Borrower fails to pay any of the Obligations when due;

 

8.2          Covenant Default.

 

(a)           If Borrower fails to perform any obligation under Section 6.2 (financial reporting), 6.4 (taxes), 6.5 (insurance) or 6.6 (primary accounts) or violates any of the covenants contained in Article 7 of this Agreement; or

 

(b)           If Borrower fails or neglects to perform or observe any other material term, provision, condition, covenant contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within ten (10) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that, if the default cannot by its nature be cured within the ten (10)-day period or cannot after diligent attempts by Borrower be cured within such ten (10)-day period and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made;

 

8.3          Material Adverse Change. If there occurs any circumstance or any circumstances which would reasonably be expected to have a Material Adverse Effect;

 

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8.4          Attachment. If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or Person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy or assessment is filed of record with respect to any material portion of Borrower’s assets by the United States Government, or any department, agency or instrumentality thereof, or by any state, county, municipal or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be made during such cure period);

 

8.5          Insolvency. If Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions will be made prior to the dismissal of such Insolvency Proceeding);

 

8.6          Other Agreements. If there is a default or other failure to perform in any agreement to which Borrower is a party with a third party or parties (a) resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of $250,000, (b) in connection with any lease of real property, or (c) that would reasonably be expected to have a Material Adverse Effect;

 

8.7          Judgments. If a final, uninsured judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least $250,000 shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Credit Extensions will be made prior to the satisfaction or stay of the judgment); or

 

8.8          Misrepresentations. If any material misrepresentation or material misstatement exists now or hereafter in any warranty or representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document.

 

9.             BANK’S RIGHTS AND REMEDIES.

 

9.1          Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrower:

 

(a)           Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable (provided that, upon the occurrence of an Event of Default described in Section 8.5 (insolvency), all Obligations shall become immediately due and payable without any action by Bank);

 

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(b)           Cease advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between Borrower and Bank;

 

(c)           Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that Bank reasonably considers advisable;

 

(d)           Make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral. Borrower agrees to assemble the Collateral if Bank so requires and to make the Collateral available to Bank as Bank may designate. Borrower authorizes Bank to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge or lien which in Bank’s determination appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s rights or remedies provided herein, at law, in equity or otherwise;

 

(e)           Place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any control agreement or similar agreements providing control of any Collateral;

 

(f)            Set off and apply to the Obligations any and all (i) balances and deposits of Borrower held by Bank, and (ii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank;

 

(g)           Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale and sell (in the manner provided for herein) the Collateral. Bank is hereby granted a license or other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names, Trademarks, service marks and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and selling any Collateral, and, in connection with Bank’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit;

 

(h)           Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially reasonable, and apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate. Bank may sell the Collateral without giving any warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. If Bank sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received by Bank and applied to the indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Bank may resell the Collateral and Borrower shall be credited with the proceeds of the sale;

 

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(i)            Credit bid and purchase at any public sale;

 

(j)            Apply for the appointment of a receiver, trustee, liquidator or conservator of the Collateral, without notice and without regard to the adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of the Obligations; and

 

(k)           Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower.

 

Bank may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral, and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.

 

9.2          Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers or employees) as Borrower’s true and lawful attorney to: (a) send requests for verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts and notices to account debtors; (d) dispose of any Collateral; (e) make, settle and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms which Bank determines to be reasonable; and (g) file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral; provided that Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clause (g) above, regardless of whether an Event of Default has occurred. The appointment of Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Bank’s obligation to provide advances hereunder is terminated.

 

9.3          Accounts Collection. At any time after the occurrence and during the continuation of an Event of Default, (a) Bank may notify any Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account and (b) Borrower shall collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit.

 

9.4          Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then Bank may do any or all of the following after reasonable notice to Borrower: (a) make payment of the same or any part thereof; or (b) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any action with respect to such policies as Bank deems prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then

 

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applicable rate hereinabove provided, and shall be secured by the Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement.

 

9.5          Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare the Collateral for sale. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower.

 

9.6          No Obligation to Pursue Others. Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other Person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to pursue any other Person for any of the Obligations.

 

9.7          Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents and all other agreements shall be cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law or in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election or acquiescence by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose for which it was given. Borrower expressly agrees that this Section 9.7 may not be waived or modified by Bank by course of performance, conduct, estoppel or otherwise.

 

9.8          Demand; Protest. Except as otherwise provided in this Agreement, Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment and any other notices relating to the Obligations.

 

10.          NOTICES.

 

Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower or to Bank, as the case may be, at its addresses set forth below:

 

	
If   to Borrower:
    	
LIQUIDIA   TECHNOLOGIES, INC.
    
	
 
    	
419 Davis Drive,   Suite 100
    
	
 
    	
Morrisville, North   Carolina 27560-6837
    
	
 
    	
Attn: Timothy Albury
    
	
 
    	
FAX: (919) 328-4402
    


 

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If   to Bank:
    	
Pacific Western Bank
    
	
 
    	
406 Blackwell Street,   Suite 240
    
	
 
    	
Durham, North Carolina   27701
    
	
 
    	
Attn: Loan Operations   Manager
    
	
 
    	
FAX: (919) 314-3080
    


 

 

	
with   a copy to:
    	
Pacific Western Bank
    
	
 
    	
406 Blackwell Street,   Suite 240
    
	
 
    	
Durham, North Carolina   27701
    
	
 
    	
Attn: Mara Huntington
    
	
 
    	
FAX: (919) 314-3090
    


 

The parties hereto may change the address at which they are to receive notices hereunder by notice in writing in the foregoing manner given to the other.

 

11.          CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

 

This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of North Carolina, without regard to principles of conflicts of law. Jurisdiction shall lie in the State of North Carolina. All disputes, controversies, claims, actions and similar proceedings arising with respect to Borrower’s account or any related agreement or transaction shall be brought in the General Court of Justice of North Carolina sitting in Durham County, North Carolina or the United States District Court for the Middle District of North Carolina, except as provided below with respect to arbitration of such matters. BANK AND BORROWER EACH ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH OF THEM, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT, WITH COUNSEL OF THEIR CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY RELATED INSTRUMENT OR LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY OF THEM. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY BANK OR BORROWER, EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM. If the jury waiver set forth in this Article 11 is not enforceable, then any dispute, controversy, claim, action or similar proceeding arising out of or relating to this Agreement, the Loan Documents or any of the transactions contemplated therein shall be settled by final and binding arbitration held in Durham County, North Carolina in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance with those rules. The arbitrator shall apply North Carolina law to the resolution of any dispute, without reference to rules of conflicts of law or rules of statutory arbitration. Judgment upon any award resulting from arbitration may be entered into and enforced by any state or federal court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this Article

 

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11.       The costs and expenses of the arbitration, including without limitation, the arbitrator’s fees and expert witness fees and reasonable attorneys’ fees, incurred by the parties to the arbitration may be awarded to the prevailing party, in the discretion of the arbitrator, or may be apportioned between the parties in any manner deemed appropriate by the arbitrator. Unless and until the arbitrator decides that one party is to pay for all (or a share) of such costs and expenses, both parties shall share equally in the payment of the arbitrator’s fees as and when billed by the arbitrator.

 

12.                               GENERAL PROVISIONS.

 

12.1                        Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties and shall bind all Persons who become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent, which consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the consent of or notice to Borrower to sell, assign, transfer, negotiate or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits hereunder.

 

12.2                        Indemnification. Borrower shall defend, indemnify and hold harmless Bank and its officers, employees, and agents (each, an “Indemnified Party”) against: (a) all obligations, demands, claims and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement (each, a “Claim”); and (b) all losses or Bank Expenses in any way suffered, incurred or paid by Bank, its officers, employees and agents as a result of or in any way arising out of, following or consequential to transactions between Bank and Borrower whether under this Agreement or otherwise (including without limitation reasonable attorneys’ fees and expenses), except for losses, Claims and Bank Expenses caused by an Indemnified Party’s gross negligence or willful misconduct.

 

12.3                        Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement.

 

12.4                        Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.

 

12.5                        Amendments in Writing, Integration. All amendments to or terminations of this Agreement or the other Loan Documents must be in writing. All prior agreements, understandings, representations, warranties and negotiations between the parties hereto with respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the Loan Documents.

 

12.6                        Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original and all of which, when taken together, shall constitute but one and the same Agreement. Executed copies of the signature pages of this Agreement sent by facsimile or transmitted electronically in Portable Document Format, or any

 

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similar format, shall be treated as originals, fully binding and with full legal force and effect, and the parties waive any rights they may have to object to such treatment.

 

12.7                                Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in Section 12.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run.

 

12.8                                Confidentiality. In handling any confidential information, Bank and Borrower and all employees and agents of each such party shall exercise the same degree of care that such party exercises with respect to its own proprietary information of the same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Agreement except that disclosure of such information may be made (a) in the case of Bank, to the subsidiaries or Affiliates of Bank or Borrower in connection with their present or prospective business relations with Borrower, (b) in the case of Bank, to prospective transferees or purchasers of any interest in the Credit Extensions, provided that they have entered into a comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower, (c) as required by law, regulations, rule or order, subpoena, judicial order or similar order, (d) in the case of Bank, as may be required in connection with the examination, audit or similar investigation of Bank and (e) as Bank may determine in connection with the enforcement of any remedies hereunder. Confidential information hereunder shall not include information that either: (x) is in the public domain or in the knowledge or possession of the receiving party when disclosed to such party, or becomes part of the public domain after disclosure to such receiving party through no fault of such receiving party; or (y) is disclosed to such receiving party by a third party, provided that the receiving party does not have actual knowledge that such third party is prohibited from disclosing such information.

 

[Signature Page Follows]

 

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

 

	
 
    	
PACIFIC WESTERN BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lan Zhu
    
	
 
    	
Name:
    	
Lan Zhu
    
	
 
    	
Title:
    	
AVP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LIQUIDIA   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy   Albury
    
	
 
    	
Name:
    	
Timothy Albury
    
	
 
    	
Title:
    	
CFO
    


 











 

EXHIBIT A

 

DEFINITIONS

 

“Accounts” means all presently existing and hereafter arising accounts, contract rights, payment intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by Borrower and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing.

 

“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors and general partners.

 

“Authorized Officer” means someone designated as such in the corporate resolution provided by Borrower to Bank in which this Agreement and the transactions contemplated hereunder are authorized by Borrower’s board of directors. If Borrower provides subsequent corporate resolutions to Bank after the Closing Date, the individual(s) designated as “Authorized Officer(s)” in the most-recently provided resolution shall be the only “Authorized Officers” for purposes of this Agreement.

 

“Availability End Date” means July 6, 2017.

 

“Bank Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and expenses, whether generated in-house or by outside counsel) incurred in connection with the preparation, negotiation, administration and enforcement of the Loan Documents; reasonable Collateral audit fees; and Bank’s reasonable attorneys’ fees and expenses (whether generated in-house or by outside counsel) incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred before, during and after an Insolvency Proceeding, whether or not suit is brought.

 

“Borrower’s Books” means all of Borrower’s books and records including: ledgers; records concerning Borrower’s assets or liabilities, the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment containing such information.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which banks in the State of North Carolina are authorized or required to close.

 

“Capitalized Expenditures” means current period unfinanced cash expenditures that are capitalized and amortized over a period of time in accordance with GAAP, including but not limited to capitalized cash expenditures for capital equipment, capitalized manufacturing and labor costs as they relate to inventory and software development.

 

“Cash” means unrestricted cash and cash equivalents.

 











 

“Change in Control” means a transaction other than a bona fide equity financing or series of financings on terms and from investors reasonably acceptable to Bank in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the board of directors of Borrower, who did not have such power before such transaction.

 

“Closing Date” means the date of this Agreement.

 

“Code” means the North Carolina Uniform Commercial Code as amended or supplemented from time to time.

 

“Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral to the extent not described on Exhibit B, except to the extent any such property (a) is nonassignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, §25-9-406 and §25-9-408 of the Code), (b) the granting of a security interest which is contrary to applicable law, provided that, upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral, (c) constitutes the capital stock of a controlled foreign corporation (as defined in the IRC), in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporations entitled to vote, or (d) property (including any attachments, accessions or replacements) that is subject to a Lien that is permitted pursuant to clause (c) of the definition of Permitted Liens, if the grant of a security interest with respect to such property pursuant to this Agreement would be prohibited by the agreement creating such Permitted Lien or would otherwise constitute a default thereunder, provided that such property will be deemed “Collateral” hereunder upon the termination and release of such Permitted Lien.

 

“Collateral State” means the state where the Collateral is located, which is North Carolina.

 

“Compliance Certificate” means a compliance certificate, in substantially the form of Exhibit D attached hereto, executed by a Responsible Officer of Borrower.

 

“Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to (a) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (b) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued for the account of that Person; and (c) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount

 

2











 

equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement.

 

“Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held.

 

“Credit Card Line” means a Credit Extension of up to $50,000, to be used exclusively for the provision of Credit Card Services.

 

“Credit Card Maturity Date” means January 4, 2017.

 

“Credit Extension” means each Term Loan, the Credit Card Services provided under the Credit Card Line, or any other extension of credit, by Bank to or for the benefit of Borrower hereunder.

 

“Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder.

 

“Event of Default” has the meaning assigned in Article 8.

 

“GAAP” means generally accepted accounting principles, consistently applied, as in effect from time to time in the United States.

 

“Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all Contingent Obligations, including but not limited to any sublimit contained herein.

 

“Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement or other relief.

 

“Intellectual Property” means all of Borrower’s right, title, and interest in and to the following:

 

(a)                                 Copyrights, Patents and Trademarks;

 

(b)                                 Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held;

 

3











 

(c)                                  Any and all design rights which may be available to Borrower now or hereafter existing, created, acquired or held;

 

(d)                                 Any and all claims for damages by way of past, present and future infringement of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above;

 

(e)                                  All licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties arising from such use to the extent permitted by such license or rights;

 

(f)                                   All amendments, renewals and extensions of any of the Copyrights, Patents or Trademarks; and

 

(g)                                  All other intellectual property.

 

“Inventory” means all present and future inventory in which Borrower has any interest.

 

“Investment” means any beneficial ownership of (including stock, partnership or limited liability company interest or other securities) any Person, or any loan, advance or capital contribution to any Person.

 

“Investment Agreement” means, collectively, Borrower’s stock purchase and other agreement(s) pursuant to which Borrower most recently issued its preferred stock.

 

“IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

 

“Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

 

“Liquidity Event” means (a) any sale, license or other disposition of all or substantially all of the assets (including Intellectual Property) of Borrower, (b) any reorganization, consolidation, merger or sale of the voting securities of Borrower or any other transaction (i) where the holders of Borrower’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction or (ii) that results in a Change in Control, or (c) an initial public offering of Borrower’s equity securities; provided that a Liquidity Event shall exclude any issuance of equity securities by the Company for purposes of raising working capital through a bona fide equity financing transaction where the consideration received by the Company is cash, the cancellation or conversion of indebtedness, or a combination of both.

 

“Loan Documents” means, collectively, this Agreement, any note or notes executed by Borrower, and any other document, instrument or agreement entered into in connection with this Agreement, all as amended or extended from time to time.

 

“Material Adverse Effect” means a material adverse effect on (a) the operations, business or financial condition of Borrower and its Subsidiaries taken as a whole, (b) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents, or (c)

 

4











 

Borrower’s interest in, or the value, perfection or priority of Bank’s security interest in the Collateral.

 

“Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments (including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing.

 

“Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this Agreement or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability or obligation owing from Borrower to others that Bank may have obtained by assignment or otherwise.

 

“Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

 

“Periodic Payments” means all installments or similar recurring payments that Borrower may now or hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument or agreement now or hereafter in existence between Borrower and Bank.

 

“Permitted Indebtedness” means:

 

(a)                                 Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document;

 

(b)                                 Indebtedness existing on the Closing Date and disclosed in the Schedule;

 

(c)                                  Indebtedness not to exceed $250,000 in the aggregate at any time secured by a lien described in clause (c) of the defined term “Permitted Liens,” provided that such Indebtedness does not exceed at the time it is incurred the lesser of the cost or fair market value of the property financed with such Indebtedness;

 

(d)                                 Subordinated Debt;

 

(e)                                  Indebtedness to trade creditors incurred in the ordinary course of business; and

 

(f)                                   Extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.

 

“Permitted Investments” means:

 

(a)                                 Investments existing on the Closing Date disclosed in the Schedule;

 

(b)                                 (i) Marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any state thereof maturing within one year from the date of

 

5











 

acquisition thereof, (ii) commercial paper maturing no more than one year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service, (iii) Bank’s certificates of deposit maturing no more than one year from the date of investment therein, (iv) Bank’s money market accounts, (v) Investments in regular deposit or checking accounts held with Bank or as otherwise permitted by, and subject to the terms and conditions of, Section 6.6 of this Agreement, and (vi) Investments consistent with any investment policy adopted by Borrower’s board of directors;

 

(c)                                  Investments accepted in connection with Permitted Transfers;

 

(d)                                 Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not to exceed $250,000 in the aggregate in any fiscal year;

 

(e)                                  Investments not to exceed $250,000 outstanding in the aggregate at any time consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s board of directors;

 

(f)                                   Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business;

 

(g)                                  Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to, customers and suppliers who are not Affiliates, in the ordinary course of business, provided that this subparagraph (g) shall not apply to Investments of Borrower in any Subsidiary;

 

(h)                                 Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash Investments by Borrower do not exceed $250,000 in the aggregate in any fiscal year; and

 

(i)                                     Investments permitted under Section 7.3.

 

“Permitted Liens” means the following:

 

(a)                                 Any Liens existing on the Closing Date and disclosed in the Schedule (excluding Liens to be satisfied with the proceeds of the Credit Extensions) or arising under this Agreement, the other Loan Documents or any other agreement in favor of Bank;

 

(b)                                 Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and for which Borrower maintains adequate reserves;

 

(c)                                  Liens not to exceed $250,000 in the aggregate at any time (i) upon or in any Equipment (other than Equipment financed by a Credit Extension) acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such Equipment, or (ii) existing on such

 

6











 

Equipment at the time of its acquisition, in each case provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such Equipment;

 

(d)                                 Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (a) through (c) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase;

 

(e)                                  Liens securing Subordinated Debt;

 

(f)                                   Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 (attachment) or 8.7 (judgments);

 

(g)                                  Liens to secure the payment of worker’s compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA, provided that the aggregate of all such Liens shall not exceed $250,000 at any time; and

 

(h)                                 Leases or subleases of real property granted in the ordinary course of business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses of personal property (other than Intellectual Property) granted in the ordinary course of business which (i) do not interfere in any material respect with the business of Borrowers and their Subsidiaries, (ii) do not secure any Indebtedness and (iii) are not otherwise prohibited by this Agreement.

 

“Permitted Transfer” means the conveyance, sale, lease, license, transfer or disposition by Borrower or any Subsidiary of:

 

(a)                                 Inventory in the ordinary course of business;

 

(b)                                 licenses and similar arrangements for the use of the property (including the Intellectual Property) of Borrower or its Subsidiaries in the ordinary course of business;

 

(c)                                  worn-out, surplus or obsolete Equipment;

 

(d)                                 grants of security interests and other Liens that constitute Permitted Liens; and

 

(e)                                  other assets of Borrower or its Subsidiaries that do not in the aggregate exceed $250,000 during any fiscal year.

 

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency.

 

“Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, Vice President of Finance and the Controller of Borrower, as well as

 

7









 

any other officer or employee identified as an Authorized Officer in the corporate resolution delivered by Borrower to Bank in connection with this Agreement.

 

“Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any.

 

“SOS Reports” means the official reports from the Secretaries of State of each Collateral State, the state where Borrower’s chief executive office is located, the state of Borrower’s formation and other applicable federal, state or local government offices identifying all current security interests filed in the Collateral and Liens of record as of the date of such report.

 

“Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by Borrower and Bank).

 

“Subsidiary” means any corporation, partnership or limited liability company or joint venture in which (a) any general partnership interest or (b) more than 50% of the stock, limited liability company interest or joint venture of which by the terms thereof ordinary voting power to elect the board of directors, managers or trustees of the entity, at the time as of which any determination  is being made, is owned by Borrower, either directly or through an Affiliate.

 

“Term Loan Maturity Date” means January 6, 2020.

 

“Trademarks” means any trademark and service mark rights, whether registered or not, applications to register and registrations of the same and like protections and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.

 

8











 

	
DEBTOR
    	
LIQUIDIA   TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
SECURED PARTY:
    	
PACIFIC WESTERN BANK
    


 

EXHIBIT B

 

COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT

 

All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired and wherever located, including, but not limited to:

 

(a)           all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), financial assets, general intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles, domain names and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records;

 

(b)           any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given to them in the North Carolina Uniform Commercial Code, as amended or supplemented from time to time, including revised Division 9 of the Uniform Commercial Code-Secured Transactions.

 

Notwithstanding the foregoing, the Collateral shall not include any of the intellectual property, in any medium, of any kind or nature whatsoever, now or hereafter owned or acquired or received by Borrower, or in which Borrower now holds or hereafter acquires or receives any right or interest (collectively, the “Intellectual Property”); provided, however, that the Collateral shall include all accounts and general intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to Payment”).

 

Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically and effective as of January 6, 2016, include the Intellectual Property to the extent and only to the extent necessary to permit perfection of Bank’s security interest in the Rights to Payment, and further provided, however, that Bank’s enforcement rights with respect to any security interest in the Intellectual Property shall be absolutely limited to the Rights to Payment only, and Bank shall have no recourse whatsoever with respect to the underlying Intellectual Property.

 

1











 

EXHIBIT C

LOAN ADVANCE / PAYDOWN REQUEST FORM

 

[Please refer to New Borrower Kit]

 

EXHIBIT D

COMPLIANCE CERTIFICATE

 

[Please refer to New Borrower Kit]

 











 

SCHEDULE OF EXCEPTIONS

 

Permitted Indebtedness (Exhibit A) — See attached.

 

Permitted Investments (Exhibit A) — None.

 

Permitted Liens (Exhibit A) — See attached.

 

Intellectual Property (Section 5.4) — See attached.

 

Prior Names (Section 5.5) — None.

 

Litigation (Section 5.6) — None.

 

Inbound Licenses (Section 5.12) — See attached.

 











 

Liquidia Technologies, Inc.

 

Exhibit A

 

Permitted Indebtedness

 











 

EXHIBIT A

 

PERMITTED INDEBTEDNESS

 

See attached schedule “LTI Master Lease Schedule” for summary of leases in place,

 

Borrower is indebted to the University of North Carolina at Chapel Hill in the amount of $600,000. Borrower represents and warrants to Bank that such Indebtedness is unsecured and is not evidenced by a promissory note.

 











 

LTI Master Lease Schedule

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Payment
    	
 
    	
No Of
    	
 
    	
 
    	
 
    	
Beginning
    	
 
    	
 
    	
 
    
	
Internal Account No.
    	
 
    	
Financing Company
    	
 
    	
Lendor Account No/Lease No
    	
 
    	
Financed Amount
    	
 
    	
Amount
    	
 
    	
Payments
    	
 
    	
Effective Date
    	
 
    	
Date
    	
 
    	
Ending Date
    	
 
    
	
01.000.3201.00001
    	
 
    	
Lenovo Financial Services
    	
 
    	
908-0004241.000
    	
 
    	
$
    	
19,947.09
    	
 
    	
$
    	
464.85
    	
 
    	
48
    	
 
    	
09/11/13
    	
 
    	
10/02/13
    	
 
    	
09/02/17
    	
 
    
	
01.000.3201.00003
    	
 
    	
DeLage
    	
 
    	
100-10042135
    	
 
    	
$
    	
11,878.75
    	
 
    	
$
    	
388.24
    	
 
    	
36
    	
 
    	
03/17/14
    	
 
    	
05/28/14
    	
 
    	
04/28/17
    	
 
    
	
01.000.3201.00004
    	
 
    	
DeLage
    	
 
    	
100-10052141
    	
 
    	
$
    	
80,123.40
    	
 
    	
$
    	
2,616.48
    	
 
    	
36
    	
 
    	
07/17/14
    	
 
    	
09/15/14
    	
 
    	
08/15/17
    	
 
    
	
01.000.3201.00005
    	
 
    	
Bryn Mawr
    	
 
    	
(PARTNERS15074)/89590
    	
 
    	
$
    	
21,492.00
    	
 
    	
$
    	
606.53
    	
 
    	
48
    	
 
    	
11/02/14
    	
 
    	
11/02/14
    	
 
    	
10/02/18
    	
 
    
	
01.000.3201.00006
    	
 
    	
Wells Fargo
    	
 
    	
301-0160339-001
    	
 
    	
$
    	
11,500.00
    	
 
    	
$
    	
395.87
    	
 
    	
36
    	
 
    	
01/31/14
    	
 
    	
02/01/14
    	
 
    	
01/01/17
    	
 
    
	
01.000.3201.00007
    	
 
    	
Quantum Analytics
    	
 
    	
795817
    	
 
    	
$
    	
37,196.00
    	
 
    	
$
    	
1,699.88
    	
 
    	
24
    	
 
    	
07/30/14
    	
 
    	
07/31/14
    	
 
    	
06/30/16
    	
 
    
	
01.000.3201.00008
    	
 
    	
Dell Financial Services
    	
 
    	
001-8745421-002
    	
 
    	
$
    	
13,418.28
    	
 
    	
$
    	
299.83
    	
 
    	
60
    	
 
    	
02/01/15
    	
 
    	
12/30/14
    	
 
    	
11/30/19
    	
 
    
	
01.000.3201.00009
    	
 
    	
Royal Bank of America
    	
 
    	
LTI112(224963)
    	
 
    	
$
    	
50,625.00
    	
 
    	
$
    	
1,610.00
    	
 
    	
36
    	
 
    	
01/09/15
    	
 
    	
01/09/15
    	
 
    	
12/09/17
    	
 
    
	
01.000.3201.00010
    	
 
    	
ThermoFisher
    	
 
    	
2000-0004641
    	
 
    	
$
    	
33,833.28
    	
 
    	
$
    	
671.46
    	
 
    	
60
    	
 
    	
02/27/16
    	
 
    	
11/25/14
    	
 
    	
10/25/19
    	
 
    
	
01.000.3201.00011
    	
 
    	
Lenovo Financial Services
    	
 
    	
908-0005392-000
    	
 
    	
$
    	
34,624.10
    	
 
    	
$
    	
801.56
    	
 
    	
48
    	
 
    	
05/15/14
    	
 
    	
05/15/14
    	
 
    	
04/15/18
    	
 
    
	
01.000.3201.00012
    	
 
    	
Lenovo Financial Services
    	
 
    	
908-0006524-000
    	
 
    	
$
    	
14,575.40
    	
 
    	
$
    	
391.14
    	
 
    	
48
    	
 
    	
11/19/14
    	
 
    	
11/01/14
    	
 
    	
10/01/18
    	
 
    
	
01.000.3201.00013
    	
 
    	
Partners Capital
    	
 
    	
13717
    	
 
    	
$
    	
12,926.57
    	
 
    	
$
    	
385.09
    	
 
    	
48
    	
 
    	
03/27/14
    	
 
    	
03/31/14
    	
 
    	
02/28/18
    	
 
    
	
01.000.3201.00014
    	
 
    	
ThermoFisher
    	
 
    	
100-10059861
    	
 
    	
$
    	
5,984.43
    	
 
    	
$
    	
272.98
    	
 
    	
24
    	
 
    	
02/19/15
    	
 
    	
03/31/15
    	
 
    	
02/28/17
    	
 
    
	
01.000.3201.00015
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH A
    	
 
    	
$
    	
17,495.00
    	
 
    	
$
    	
491.00
    	
 
    	
36
    	
 
    	
04/03/15
    	
 
    	
05/01/15
    	
 
    	
04/01/18
    	
 
    
	
01.000.3201.00016
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH B
    	
 
    	
$
    	
25,000.00
    	
 
    	
$
    	
700.00
    	
 
    	
36
    	
 
    	
04/07/15
    	
 
    	
05/01/15
    	
 
    	
04/01/18
    	
 
    
	
01.000.3201.00017
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH C
    	
 
    	
$
    	
34,562.31
    	
 
    	
$
    	
966.00
    	
 
    	
36
    	
 
    	
05/04/15
    	
 
    	
06/01/15
    	
 
    	
05/01/18
    	
 
    
	
01.000.3201.00018
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH D
    	
 
    	
$
    	
154,155.00
    	
 
    	
$
    	
—
    	
 
    	
0
    	
 
    	
PENDING
    	
 
    	
 
    	
 
    	
#NUM!
    	
 
    
	
01.000.3201.00019
    	
 
    	
Navitas Lease Corporation
    	
 
    	
40186398
    	
 
    	
$
    	
55,678.00
    	
 
    	
$
    	
1,378.03
    	
 
    	
48
    	
 
    	
02/25/15
    	
 
    	
02/25/15
    	
 
    	
01/25/19
    	
 
    
	
01.000.3201.00020
    	
 
    	
Royal Bank of America
    	
 
    	
LTI112 (225098)
    	
 
    	
$
    	
20,578.33
    	
 
    	
$
    	
656.00
    	
 
    	
38
    	
 
    	
04/14/15
    	
 
    	
02/04/15
    	
 
    	
01/04/18
    	
 
    
	
01.000.3201.00021
    	
 
    	
Lenovo Financial Services
    	
 
    	
1289511 (1037789)
    	
 
    	
$
    	
17,260.20
    	
 
    	
$
    	
479.45
    	
 
    	
36
    	
 
    	
05/22/15
    	
 
    	
05/27/15
    	
 
    	
04/27/18
    	
 
    
	
01.000.3201.00022
    	
 
    	
First American
    	
 
    	
2015215-01
    	
 
    	
$
    	
12,511.72
    	
 
    	
$
    	
389.99
    	
 
    	
36
    	
 
    	
08/04/15
    	
 
    	
09/01/15
    	
 
    	
08/01/18
    	
 
    
	
01.000.3201.00023
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH F
    	
 
    	
$
    	
174,075.00
    	
 
    	
$
    	
4,851.00
    	
 
    	
36
    	
 
    	
09/15/15
    	
 
    	
10/01/15
    	
 
    	
09/01/18
    	
 
    
	
01.000.3201.00024
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH G
    	
 
    	
$
    	
31,026.00
    	
 
    	
$
    	
867.00
    	
 
    	
36
    	
 
    	
10/02/15
    	
 
    	
11/01/15
    	
 
    	
10/01/18
    	
 
    
	
Total ACTIVE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
890,465.86
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
In Process:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TBD
    	
 
    	
Waters Corporation
    	
 
    	
NAD0000580-1
    	
 
    	
$
    	
127,650.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total COMMITTED to Date
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1,018,115.86
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 











 

Liquidia Technologies, Inc.

 

Exhibit A

 

Permitted Liens

 











 

State: Delaware

Office: Secretary of State

Names Searched: Liquid Technologies, Inc.

Type of Search: UCC

Through Date: 9/07/15

 

	
 
    	
 
    	
Secured Creditor/
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
No.
    	
 
    	
Assignee
    	
 
    	
Filing Date
    	
 
    	
Instrument No.
    	
 
    	
Collateral
    
	
1
    	
 
    	
Wells Fargo Bank, N.A.
    	
 
    	
1/31/14
    	
 
    	
20140408054
    	
 
    	
Equipment
    
	
2
    	
 
    	
Union Bank
    	
 
    	
6/27/14
    	
 
    	
20142540177
    	
 
    	
Equipment
    
	
3
    	
 
    	
Thermo Fisher Financial Services Inc.
    	
 
    	
10/20/14
    	
 
    	
20144215810
    	
 
    	
Equipment
    
	
4
    	
 
    	
Bryn Mawr Equip. Finance, LLC
    	
 
    	
11/05/14
    	
 
    	
20144450409
    	
 
    	
Equipment
    
	
5
    	
 
    	
Thermo Fisher Financial Services Inc.
    	
 
    	
12/05/14
    	
 
    	
20144926283
    	
 
    	
Equipment
    
	
6
    	
 
    	
Royal Bank America Leasing
    	
 
    	
1/14/15
    	
 
    	
20150179852
    	
 
    	
Equipment
    
	
7
    	
 
    	
Dell Financial Services, L.L.C.
    	
 
    	
2/17/15
    	
 
    	
20150662774
    	
 
    	
Equipment
    
	
8
    	
 
    	
Navitas Lease Corp.
    	
 
    	
5/07/15
    	
 
    	
20151960698
    	
 
    	
Equipment
    
	
9
    	
 
    	
Capital Bank
    	
 
    	
5/11/15
    	
 
    	
20152004215
    	
 
    	
Equipment
    
	
10
    	
 
    	
Union Bank & Trust
    	
 
    	
6/08/15
    	
 
    	
20152423084
    	
 
    	
Equipment
    
	
11
    	
 
    	
Corporation Service Company, as Representative
    	
 
    	
7/10/15
    	
 
    	
20152979812
    	
 
    	
Master Lease Agreement No. 2015215 — Asset   specific filing, property now or hereafter subject to a lease between lessor   and lessee.
    
	
12
    	
 
    	
Corporation Service Company, as Representative
    	
 
    	
8/25/15
    	
 
    	
20153704862
    	
 
    	
Master Lease Agreement No. 2015215 — Asset specific filing, property now or hereafter subject   to a lease between lessor and lessee.
    


 

State: North Carolina

Office: Secretary of State

Names Searched: Liquid Technologies, Inc.

Type of Search: UCC

Through Date: 10/04/15

 

	
 
    	
 
    	
Secured Creditor/
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
No.
    	
 
    	
Assignee
    	
 
    	
Filing Date
    	
 
    	
Instrument No.
    	
 
    	
Collateral/Notes
    
	
1
    	
 
    	
MD Capital Partners, Inc.
    	
 
    	
6/03/14
    	
 
    	
20140052659F
    	
 
    	
Equipment
    
	
2
    	
 
    	
De Lage Landen Financial Services, Inc.
    	
 
    	
9/16/14
    	
 
    	
20140087654J
    	
 
    	
Equipment — pursuant to Contract # 100-10052141
    
	
3
    	
 
    	
Royal Bank America Leasing, LP
    	
 
    	
4/15/15
    	
 
    	
20150034122A
    	
 
    	
Equipment
    
	
4
    	
 
    	
DE Lage Landen Financial Services, Inc.
    	
 
    	
10/05/15
    	
 
    	
20150094876C
    	
 
    	
Equipment — pursuant to Contract # 100-10082877
    


 











 

Liquidia Technologies, Inc.

 

Intellectual Property (Section 5.4)

 









 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
Internal ID
    	
 
    	
UNC Docket
    	
 
    	
Outside Counsel Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Assigned/ Licensed
    
	
5001US
    	
 
    	
04-0013
    	
 
    	
035052/338792
    	
 
    	
Photocurable 
   perfluoropolyethers 
   for use as novel 
   materials in 
   mlcrofluidic 
   devices
    	
 
    	
10/572764
    	
 
    	
9/23/2004
    	
 
    	
20070254278
    	
 
    	
8268446
    	
 
    	
Assigned to 
   UNC and Cal 
   Tech, 
   exclusively Licensed to Liquidia 
   Technologies 
   (co-exclusion 
   in 
   microfluldies)
    
	
5001AU
    	
 
    	
 
    	
 
    	
035052/338794
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2004276302
    	
 
    	
2004276302
    	
 
    
	
5001CA
    	
 
    	
 
    	
 
    	
035052/338795
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2540035
    	
 
    	
2540035
    	
 
    
	
5001CN
    	
 
    	
 
    	
 
    	
035052/338796
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200480034620
    	
 
    	
200480034620
    	
 
    
	
5001EP
    	
 
    	
 
    	
 
    	
035052/338798
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
04784924.5
    	
 
    	
1694731
    	
 
    
	
5001HK
    	
 
    	
 
    	
 
    	
035052/339054
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
08100301
    	
 
    	
1106262
    	
 
    
	
5001IN
    	
 
    	
 
    	
 
    	
035052/338800
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2212/DELNP/2006
    	
 
    	
261330
    	
 
    
	
5001IP
    	
 
    	
 
    	
 
    	
035052/338801
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006-527164
    	
 
    	
4586021
    	
 
    
	
5001MX
    	
 
    	
 
    	
 
    	
035052/338803
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006/003201
    	
 
    	
299945
    	
 
    
	
5001SG
    	
 
    	
 
    	
 
    	
035052/338805
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006018757.6
    	
 
    	
120640
    	
 
    
	
5002US
    	
 
    	
04-0104
    	
 
    	
035052/338899
    	
 
    	
Methods for 
   fabricating isolated 
   micro-and 
   nanostructures 
   using soft or 
   imprint 
   lithography
    	
 
    	
10/583570
    	
 
    	
12/20/2004
    	
 
    	
20090028910
    	
 
    	
8263129
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
5002AU
    	
 
    	
 
    	
 
    	
035052/338850
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2004318602
    	
 
    	
2004318602
    	
 
    
	
5002BR
    	
 
    	
 
    	
 
    	
035052/338851
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0417848.3
    	
 
    	
PENDING
    	
 
    
	
5002CA
    	
 
    	
 
    	
 
    	
035052/338852
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2549341
    	
 
    	
2549341
    	
 
    
	
5002CADIV1
    	
 
    	
 
    	
 
    	
035052/442868
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2847260
    	
 
    	
PENDING
    	
 
    
	
5002CN
    	
 
    	
 
    	
 
    	
035052/338853
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200480041942.9
    	
 
    	
20048004194   2.9
    	
 
    
	
5002EP
    	
 
    	
 
    	
 
    	
035052/338889
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
04821787.1
    	
 
    	
PENDING
    	
 
    
	
5002HK
    	
 
    	
 
    	
 
    	
035052/338890
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
07103263.7
    	
 
    	
PENDING
    	
 
    
	
5002IL
    	
 
    	
 
    	
 
    	
035052/338892
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
176254
    	
 
    	
PENDING
    	
 
    
	
5002IN
    	
 
    	
 
    	
 
    	
035052/338893
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
3991/DELNP/2006
    	
 
    	
PENDING
    	
 
    
	
5002JP
    	
 
    	
 
    	
 
    	
035052/338895
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006545541
    	
 
    	
PENDING
    	
 
    
	
5002JPDIV1
    	
 
    	
 
    	
 
    	
035052/405505
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2011-104856
    	
 
    	
PENDING
    	
 
    
	
5002JPDIV2
    	
 
    	
 
    	
 
    	
035052/443661
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014.054051
    	
 
    	
PENDING
    	
 
    
	
5002JPDIV3
    	
 
    	
 
    	
 
    	
035052/450277
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014-161427
    	
 
    	
PENDING
    	
 
    
	
5002KR
    	
 
    	
 
    	
 
    	
035052/338894
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2006-7012179
    	
 
    	
10-1281775
    	
 
    
	
5002KRDIV1
    	
 
    	
 
    	
 
    	
035052/408972
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2011-7020441
    	
 
    	
10-1376715
    	
 
    
	
5002KRDIV3
    	
 
    	
 
    	
 
    	
035052/447192
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2014-7018393
    	
 
    	
PENDING
    	
 
    
	
5002MX
    	
 
    	
 
    	
 
    	
035052/338896
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
PA/A/2006/006738
    	
 
    	
266246
    	
 
    
	
5002SG
    	
 
    	
 
    	
 
    	
035052/338898
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200603890-5
    	
 
    	
123152
    	
 
    


 

CONFIDENTIAL

 

1











 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
Internal ID
    	
 
    	
UNC 
   Docket
    	
 
    	
Outside Counsel 
   Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Assigned/ 
   Licensed
    
	
5002ZA
    	
 
    	
 
    	
 
    	
035052/338900
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006/04885
    	
 
    	
PENDING
    	
 
    	
 
    
	
5002-01US
    	
 
    	
 
    	
 
    	
035052/339501
    	
 
    	
 
    	
 
    	
11/825469
    	
 
    	
7/6/2007
    	
 
    	
2009/0061152
    	
 
    	
8420124
    	
 
    	
 
    
	
5002-02US
    	
 
    	
 
    	
 
    	
035052/430281
    	
 
    	
 
    	
 
    	
13/852683
    	
 
    	
3/28/2013
    	
 
    	
20140072632
    	
 
    	
8992992
    	
 
    	
 
    
	
5002-03US
    	
 
    	
 
    	
 
    	
035052/458758
    	
 
    	
 
    	
 
    	
14/658386
    	
 
    	
3/16/2015
    	
 
    	
20150283079
    	
 
    	
PENDING
    	
 
    	
 
    
	
5003-01US
    	
 
    	
04-0067
    	
 
    	
035052/339941
    	
 
    	
Methods and materials for   fabricating microfluidic devices
    	
 
    	
12/063284
    	
 
    	
8/9/2006
    	
 
    	
20090281250
    	
 
    	
8158728
    	
 
    	
Assigned to UNC,   exclusively licensed to Liquidia Technologies
    
	
5003-01EP
    	
 
    	
 
    	
 
    	
035052/339740
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
06801056.0
    	
 
    	
PENDING
    	
 
    
	
5003-01EPDIV1
    	
 
    	
 
    	
 
    	
035052/424881
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
12185073.9
    	
 
    	
PENDING
    	
 
    
	
5003-02US
    	
 
    	
 
    	
 
    	
035052/417580
    	
 
    	
 
    	
 
    	
13/438431
    	
 
    	
4/3/2012
    	
 
    	
20120256354
    	
 
    	
8444899
    	
 
    
	
5013US
    	
 
    	
 
    	
 
    	
064549-5013US
    	
 
    	
Methods and materials for   fabricating laminate nanomolds and nanoparticles therefrom
    	
 
    	
11/633763
    	
 
    	
12/4/2006
    	
 
    	
20080131692
    	
 
    	
8128393
    	
 
    	
Assigned to Liquidia   Technologies
    
	
5013CN
    	
 
    	
 
    	
 
    	
064549-5013CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200780050904.3
    	
 
    	
101668594
    	
 
    
	
5013CNDIV1
    	
 
    	
 
    	
 
    	
063549-5013CNDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
201410061019.7
    	
 
    	
PENDING
    	
 
    
	
5013-01HK
    	
 
    	
 
    	
 
    	
064549-5013-01HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14111960.7
    	
 
    	
PENDING
    	
 
    
	
5013EP
    	
 
    	
 
    	
 
    	
064549-5013EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
07874162
    	
 
    	
PENDING
    	
 
    
	
5013JP
    	
 
    	
 
    	
 
    	
064549-5013JP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009-540277
    	
 
    	
PENDING
    	
 
    
	
5013JPDIV1
    	
 
    	
 
    	
 
    	
064549-5013JPDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2012-185449
    	
 
    	
5680597
    	
 
    
	
5013JPDIV2
    	
 
    	
 
    	
 
    	
064549-5013JPDIV2
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2015016697
    	
 
    	
PENDING
    	
 
    
	
5013KR
    	
 
    	
 
    	
 
    	
064549-5013KR
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009-7013846
    	
 
    	
10-1507816
    	
 
    
	
5013KRDIV1
    	
 
    	
 
    	
 
    	
064549-5013KRDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2014-7011301
    	
 
    	
10-1507805
    	
 
    
	
5013KRDIV2
    	
 
    	
 
    	
 
    	
064549-5013KRDIV2
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2014-7033229
    	
 
    	
PENDING
    	
 
    
	
5013-01US
    	
 
    	
 
    	
 
    	
064549-5013-01
    	
 
    	
 
    	
 
    	
13/354046
    	
 
    	
1/19/2012
    	
 
    	
20120189728
    	
 
    	
8439666
    	
 
    
	
5013-02US
    	
 
    	
 
    	
 
    	
064549-5013-02
    	
 
    	
 
    	
 
    	
13/834454
    	
 
    	
3/15/2013
    	
 
    	
13/834454
    	
 
    	
8662878
    	
 
    
	
5013-03US
    	
 
    	
 
    	
 
    	
064549-5013-03
    	
 
    	
 
    	
 
    	
14/157971
    	
 
    	
1/17/2014
    	
 
    	
14/157971
    	
 
    	
8945441
    	
 
    
	
5013-04US
    	
 
    	
 
    	
 
    	
064549-5013-04
    	
 
    	
 
    	
 
    	
14/574543
    	
 
    	
12/18/2014
    	
 
    	
2015/101743
    	
 
    	
PENDING
    	
 
    
	
5015US
    	
 
    	
 
    	
 
    	
064549-5015US
    	
 
    	
Nanostructured surfaces for   biomedical/
   biomaterial applications and processes 
   thereof
    	
 
    	
12/087374
    	
 
    	
1/4/2007
    	
 
    	
20090250588
    	
 
    	
8944804
    	
 
    	
Assigned to Liquidia   Technologies
    
	
5015-01US
    	
 
    	
 
    	
 
    	
064549-5015-01US
    	
 
    	
 
    	
 
    	
14/572895
    	
 
    	
12/17/2014
    	
 
    	
20150148903
    	
 
    	
PENDING
    	
 
    	
 
    


 

2











 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
Internal ID
    	
 
    	
UNC 
   Docket
    	
 
    	
Outside Counsel 
   Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Assigned/ 
   Licensed
    	
 
    
	
5020-01US
    	
 
    	
04-0104
    	
 
    	
035052/466548
    	
 
    	
Nanoparticle 
   fabrication 
   methods, 
   systems, and 
   materials
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/823334
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, 
   exclusively licensed to 
   Liquidia Technologies
    	
 
    
	
5020AU
    	
 
    	
 
    	
 
    	
035052/339168
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006282042
    	
 
    	
2006282042
    	
 
    
	
5020BR
    	
 
    	
 
    	
 
    	
035052/339169
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
P10611827-5
    	
 
    	
PENDING
    	
 
    
	
5020CA
    	
 
    	
 
    	
 
    	
035052/339170
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2611985
    	
 
    	
PENDING
    	
 
    
	
5020CN
    	
 
    	
 
    	
 
    	
035052/339171
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200680029884.7
    	
 
    	
200680029884.7
    	
 
    
	
5020EP
    	
 
    	
 
    	
 
    	
035052/339172
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
06824764.2
    	
 
    	
PENDING
    	
 
    
	
5020IN
    	
 
    	
 
    	
 
    	
035052/339173
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
9431/DELNP/2007
    	
 
    	
PENDING
    	
 
    
	
S020JP
    	
 
    	
 
    	
 
    	
035052/339175
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2008-517202
    	
 
    	
5570721
    	
 
    
	
5020MX
    	
 
    	
 
    	
 
    	
035052/339176
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
MX/A/2007/016039
    	
 
    	
295862
    	
 
    
	
5022US
    	
 
    	
04-0104
    	
 
    	
035052/330497
    	
 
    	
Isolated and 
   fixed micro and 
   nano structures 
   and methods 
   thereof
    	
 
    	
11/594023
    	
 
    	
11/7/2006
    	
 
    	
20070264481
    	
 
    	
9040090
    	
 
    	
Assigned to 
   UNC, 
   exclusively 

licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5022EP
    	
 
    	
 
    	
 
    	
035052/343596
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
06849872.4
    	
 
    	
PENDING
    	
 
    
	
5022-01US
    	
 
    	
 
    	
 
    	
035052/462485
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/704047
    	
 
    	
PENDING
    	
 
    
	
5026-01US
    	
 
    	
07-0006
    	
 
    	
035052/430336
    	
 
    	
High fidelity 
   nano-structures 
   and arrays for 
   photovoltaics 
   and methods of 
   making the same
    	
 
    	
13/787134
    	
 
    	
3/6/2013
    	
 
    	
20130249138
    	
 
    	
ALLOWED
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5026EP
    	
 
    	
 
    	
 
    	
035052/364241
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
07835750.6
    	
 
    	
PENDING
    	
 
    
	
5026JP
    	
 
    	
 
    	
 
    	
035052/364251
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009509838
    	
 
    	
5162578
    	
 
    
	
5026CN
    	
 
    	
 
    	
 
    	
035052/364249
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200780026068.5
    	
 
    	
200780026068.5
    	
 
    
	
5026KR DIV01
    	
 
    	
 
    	
 
    	
035052/457771
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2015-7002658
    	
 
    	
ALLOWED
    	
 
    
	
5027US
    	
 
    	
07-0079
    	
 
    	
035052/379526
    	
 
    	
Discrete size and 
   shape specific 
   organic 
   nanoparticles 
   designed to 
   elicit an immune 
   response
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20100151031
    	
 
    	
PENDING
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5030-01US
    	
 
    	
 
    	
 
    	
064549-5030-01US
    	
 
    	
Nanoparticle 
   fabrication 
   methods, 
   systems, and 
   materials
    	
 
    	
13/918322
    	
 
    	
6/11/2013
    	
 
    	
13/918322
    	
 
    	
8685461
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5031US
    	
 
    	
04-0063
    	
 
    	
035052/339238
    	
 
    	
Liquid materials 
   for use in 
   electrochemical 

cells
    	
 
    	
11/040317
    	
 
    	
1/21/2005
    	
 
    	
20060083971
    	
 
    	
7435495
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    


 

3









 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Licensed
    
	
5033US
    	
 
    	
04- 0104
    	
 
    	
035052/367428
    	
 
    	
Nanoparticle fabrication methods, systems and   materials for fabricating artificial red blood cells
    	
 
    	
12/374182
    	
 
    	
7/27/2007
    	
 
    	
20100028994
    	
 
    	
8465775
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
5033-01US
    	
 
    	
04- 0104
    	
 
    	
035052/433688
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2013/0336884
    	
 
    	
PENDING
    	
 
    	
 
    
	
5035-01US
    	
 
    	
 
    	
 
    	
064549-5035- 01US
    	
 
    	
Nanoparticles having functional additives for self and   directed assembly and method of fabricating same
    	
 
    	
14/804567
    	
 
    	
7/21/2015
    	
 
    	
20150325329
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5037US
    	
 
    	
 
    	
 
    	
064549-5037US
    	
 
    	
System and method for producing particles and   patterned films
    	
 
    	
12/250461
    	
 
    	
10/13/2008
    	
 
    	
20090098380
    	
 
    	
7976759
    	
 
    	
Assigned to Liquidia Technologies
    
	
5037CN
    	
 
    	
 
    	
 
    	
064549-5037CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200880120295.9
    	
 
    	
20088012029 5.9
    	
 
    	
 
    
	
5037CNDIV1
    	
 
    	
 
    	
 
    	
064549- 0537CNDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
201310435322.4
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037EP
    	
 
    	
 
    	
 
    	
064549-5037EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
08838460.7
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037IN
    	
 
    	
 
    	
 
    	
064549-5037IN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2648/CHENP/2010
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037JP
    	
 
    	
 
    	
 
    	
064549-5037JP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2010529144
    	
 
    	
5604301
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
064549-
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5037JPD1V01
    	
 
    	
 
    	
 
    	
5037JPDIV01
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014150037
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037HK
    	
 
    	
 
    	
 
    	
064549-5037HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1146018
    	
 
    	
PENDING
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
064549-5037-
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5037-01HK
    	
 
    	
 
    	
 
    	
01HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14109535.7
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037-01US
    	
 
    	
 
    	
 
    	
064549-5037-01
    	
 
    	
 
    	
 
    	
13/156147
    	
 
    	
6/8/2011
    	
 
    	
20110300293
    	
 
    	
8518316
    	
 
    	
 
    
	
5037-02US
    	
 
    	
 
    	
 
    	
064549-5037-02
    	
 
    	
 
    	
 
    	
13/950447
    	
 
    	
7/25/2013
    	
 
    	
20140027948
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039-01US
    	
 
    	
 
    	
 
    	
064549-5039- 01US
    	
 
    	
Immunomodulator particles and methods of treating
    	
 
    	
14/737180
    	
 
    	
6/11/2015
    	
 
    	
20150273079
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5039EP
    	
 
    	
 
    	
 
    	
064549-5039EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
09717401.5
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039JP
    	
 
    	
 
    	
 
    	
064549-5039JP 064549-
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2011525477
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039JPDIV01
    	
 
    	
 
    	
 
    	
5039JPDIV01
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014-238952
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039CN
    	
 
    	
 
    	
 
    	
064549-5039CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200980116881
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039HK
    	
 
    	
 
    	
 
    	
064549-5039HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1121640
    	
 
    	
PENDING
    	
 
    	
 
    


 

4











 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Licensed
    
	
5042US
    	
 
    	
08-0090
    	
 
    	
035052/396046
    	
 
    	
Degradable compounds and methods of use thereof, particularly   with particle replication in non-wetting- templates
    	
 
    	
12/989315
    	
 
    	
4/24/2009
    	
 
    	
20110123446
    	
 
    	
8945527
    	
 
    	
Assigned to UNC and Liquidia Technologies, UNC rights   exclusively licensed to Liquidia Technologies
    
	
5044US
    	
 
    	
 
    	
 
    	
064549-5044US
    	
 
    	
Method for producing patterned materials
    	
 
    	
12/630569
    	
 
    	
12/3/2009
    	
 
    	
20100173113
    	
 
    	
8444907
    	
 
    	
Assigned to Liquidia Technologies
    
	
5044BR
    	
 
    	
 
    	
 
    	
064549-5044BR
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0923282-6
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044CN
    	
 
    	
 
    	
 
    	
064549-5044CN 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200980156363
    	
 
    	
ALLOWED
    	
 
    	
 
    
	
5044CNDIV01
    	
 
    	
 
    	
 
    	
064549-5044CNDIV01
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
104162947
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044HK
    	
 
    	
 
    	
 
    	
064549-5044HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1165612
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044-01HK
    	
 
    	
 
    	
 
    	
064549-5044 01HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
15104672
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044IN
    	
 
    	
 
    	
 
    	
064549-5044IN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
4696/CHENP/2011 
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044KR
    	
 
    	
 
    	
 
    	
064549-5044KR
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2011-7015316
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044MX
    	
 
    	
 
    	
 
    	
064549-5044MX
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
MX/a/2011/005 900
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044EP
    	
 
    	
 
    	
 
    	
064549-5044EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
09831124.4
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044-01US
    	
 
    	
 
    	
 
    	
064549-5044-01US 
    	
 
    	
 
    	
 
    	
13/867413
    	
 
    	
4/22/2013
    	
 
    	
20130241107
    	
 
    	
9205594
    	
 
    	
 
    
	
5044-02US
    	
 
    	
 
    	
 
    	
064549-5044- 02US
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/937158
    	
 
    	
PENDING
    	
 
    	
 
    
	
5047 01US
    	
 
    	
10-0005
    	
 
    	
035052/466958
    	
 
    	
Engineered aerosol particles and associated methods
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/809853
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC and Liquidia Technologies, UNC rights   exclusively licensed to Liquidia Technologies
    
	
5047EP
    	
 
    	
 
    	
 
    	
035052/414380
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10742329.5
    	
 
    	
PENDING
    	
 
    
	
5047JP
    	
 
    	
 
    	
 
    	
035052/414381
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2012-532739
    	
 
    	
5656996
    	
 
    
	
5047JP DIV01
    	
 
    	
 
    	
 
    	
035052/451735
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014-182213
    	
 
    	
PENDING
    	
 
    
	
5048US
    	
 
    	
 
    	
 
    	
064549-5048US
    	
 
    	
Nanowire grid polarizers and methods for fabricating   the same
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20120206805
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5052US
    	
 
    	
 
    	
 
    	
064549-5052US
    	
 
    	
Polysaccharide particle vaccines
    	
 
    	
13/580212
    	
 
    	
8/21/2012
    	
 
    	
20130209564
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5052CN
    	
 
    	
 
    	
 
    	
064549-5052CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
102834112
    	
 
    	
ALLOWED
    	
 
    
	
5052EP
    	
 
    	
 
    	
 
    	
064549-5052EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
11745449.6
    	
 
    	
PENDING
    	
 
    	
 
    
	
5052IN
    	
 
    	
 
    	
 
    	
064549-5052IN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
7248/CHENP/2012
    	
 
    	
PENDING
    	
 
    	
 
    
	
5052HK
    	
 
    	
 
    	
 
    	
064549-5052HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1320693
    	
 
    	
PENDING
    	
 
    	
 
    


 

5











 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent   No
    	
 
    	
Licensed
    
	
5055-01US
    	
 
    	
11-0035
    	
 
    	
035052/451764
    	
 
    	
ASYMMETRIC BIFUNCTIONAL SILYL MONOMERS AND PARTICLES THEREOF   AS PRODRUGS AND DELIVERY VEHICLES FOR PHARMACEUTICAL , CHEMICAL AND BIOLOGICAL   AGENTS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2015/0065670
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
5055EP
    	
 
    	
 
    	
 
    	
035052/430928
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
11760950
    	
 
    	
PENDING
    	
 
    	
 
    
	
5055CN
    	
 
    	
 
    	
 
    	
035052/430925
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
201180055328
    	
 
    	
PENDING
    	
 
    	
 
    
	
6001US
    	
 
    	
11-0053
    	
 
    	
035052/435908
    	
 
    	
Nanoparticles with reversible disulfide linkages
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20140081012
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
6002US
    	
 
    	
12-0023
    	
 
    	
035052/445123
    	
 
    	
Geometrically engineered particles and methods for modulating   macrophage or immune response
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2015/0037428
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
6002EP
    	
 
    	
 
    	
 
    	
035052/445051
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2785326
    	
 
    	
PENDING
    	
 
    	
 
    
	
6003US
    	
 
    	
13-0007
    	
 
    	
035052/466560
    	
 
    	
High throughput manufacturing of microneedles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/761651
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC and Liquidia Technologies, UNC rights   exclusively licensed to Liquidia Technologies
    
	
6003EP
    	
 
    	
 
    	
 
    	
035052/466611
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14740839.7
    	
 
    	
PENDING
    	
 
    
	
6004US
    	
 
    	
14-0006
    	
 
    	
035052/470097
    	
 
    	
PARTICLES HAVING PEGYLATED SURFACES MODIFIED FOR LYMPHATIC   TRAFFICKING
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/782217
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Technologies
    
	
6005PCT
    	
 
    	
 
    	
 
    	
308970/2001
    	
 
    	
Virtual conjugate particles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
WO2015/073831
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
6009PCT
    	
 
    	
13-0101
    	
 
    	
035052/454611
    	
 
    	
Particles containing phospholipids or bioactive fatty   acids and uses thereof
    	
 
    	
 
    	
 
    	
 
    	
 
    	
PCT/US14/64312
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    


 

6











 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal   ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent   No
    	
 
    	
Licensed
    
	
6016PCT
    	
 
    	
14-0117
    	
 
    	
035052/460309
    	
 
    	
Responses by increasing cytotoxic T-cell function or production of interferon   gamma therefrom
    	
 
    	
 
    	
 
    	
 
    	
 
    	
PCT/US15/23623
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
6033PR
    	
 
    	
14-0006
    	
 
    	
035052/466070
    	
 
    	
Rapidly dissolvable PRINT Microneedles for the transdermal delivery of   therapeutics
    	
 
    	
62/190958
    	
 
    	
 
    	
 
    	
PENDING
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    


 

7




 






 

	
Liquidia Technologies, Inc.
    


 

	
Trademark Report
    	
 
    	
 
    	
 
    	
 
    	
as of
    	
10/14/2014
    
	
COUNTRY
    	
REFERENCES#
    	
FILED
    	
APPL#
    	
REGDT
    	
REG#
    	
STATUS
    	
CLASSES
    
										


 

	
 
    	
All Actions Due (Oriainal)
    


 

	
ENGINEERING THE FUTURE OF HEALTHCARE
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UNITED STATES
    	
LIQ.21012
    	
2/1/2013
    	
85/838,191
    	
9/2/2014
    	
4,598,038
    	
REGISTERED
    	
40
    
	
 
    	
9/2/2020
    	
AFFIDAVIT OF USE
    	
 
    	
 
    	
 
    	
 
    	
 
    
									


 

40 - Custom manufacture of micro- and nano-particles, namely those composed of polymers, used in the manufacture of industrial goods; custom

manufacture of micro- and nano-partictes, namely those composed predominantly of polymers, prophylactics and/or therapeutics used for medical purposes

 

	
LIQUIDIA ENGINEERED DRUG THERAPIES
    


 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UNITED STATES
    	
LIQ.21014
    	
2/1/2013
    	
85/838,195
    	
10/8/2013
    	
4,413,872
    	
REGISTERED
    	
40
    
	
 
    	
10/8/2019
    	
AFFIDAVIT OF USE
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
10/8/2023
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

 

40 -            Custom manufacture of micro- and nano-particles, namely those composed of polymers, used in the manufacture of industrial goods; custom

manufacture of micro- and nano-particles, namely those composed predominantly of polymers, prophylactics and/or therapeutics used for medical purposes

 

	
LIQUIDIA TECHNOLOGIES
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UNITED STATES
    	
LIQ.21004
    	
3/31/2006
    	
78/851,549
    	
10/23/2007
    	
3,321,419
    	
REGISTERED
    	
01,05,40
    
	
 
    	
10/23/2017
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

01 - Micro- and nano-particles, namely, those composed of polymers, used for general scientific and research purposes; micro- and nano-particles, namely, those composed predominantly of polymers, used in the manufacture of industrial goods; micro- and nano-particles, namely, those composed predominantly of polymers modified with an encapsulated or surface-coated substance that provides identification, used in industrial goods

 

05 - Micro- and nano-particles, namely, those composed of polymers, therapeutics or excipients used for medical diagnostic and treatment purposes

 

40 - Custom manufacture of micro- and nano-particles, namely, those composed predominantly of polymers, for general scientific and research purposes and used in the manufacture of industrial goods; custom manufacture of micro- and nano-particles, namely, those composed predominantly of polymers or therapeutics used for medical purposes

 

	
UNITED STATES
    	
LIQ.21006
    	
8/13/2007
    	
77/253,895
    	
6/10/2008
    	
3,444,256
    	
REGISTERED
    	
09
    
	
 
    	
6/10/2014
    	
AFFIDAVIT OF USE (Per email of   6/2/2014, evaluate filing prior to expiration of grace period)
    
	
 
    	
12/10/2014
    	
END OF GRACE PERIOD FOR   AFFIDAVIT OF USE
    	
 
    	
 
    
	
 
    	
6/10/2018
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

09 - Optical films; namely, micro- and nano-patterned films and membranes composed of polymers and inorganics, used for directing light; imprint

lithography, namely micro- and nano-patterned films and membranes composed primarily of polymers and inorganics, used for manufacture in a wide variety of industrial applications and for general scientific and research purposes

 

	
UNITED STATES
    	
LIQ.21008
    	
11/28/2007
    	
77/338,844
    	
3/15/2011
    	
3,931,367
    	
REGISTERED
    	
01
    
	
 
    	
3/15/2017
    	
AFFIDAVIT OF USE
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
3/15/2021
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

01 - Micro- and nano-particles, namely, those composed predominantly of polymers and inorganics, used in the manufacture of personal care and cosmetic applications and medical devices and microarrays

 











 

	
UNITED STATES
    	
LIQ.21010
    	
11/28/2007
    	
77/338,917
    	
7/22/2008
    	
3,471,235
    	
CANCELED
    	
01
    


 

01 - Micro- and nano-particles and micro- and nano-patterned films and membranes, namely, those composed predominantly of polymers and inorganics, used in the manufacture of photovoltaic and electrochemical cells

 

	
UNITED STATES
    	
LIQ.21016
    	
 
    	
PROPOSED
    	
40
    
	
 
    	
11/21/2014
    	
FILE APPLICATION (per email of 6/2/2014, revisit in   November)
    	
 
    


 

40 - Custom manufacture of micro- and nano-particles, namely those composed of polymers, used in the manufacture of industrial goods; custom

manufacture of micro- and nano-particles, namely those composed predominantly of polymers modified or therapeutics used for medical purposes

 











 

Liquidia Technologies, Inc.

 

Inbound Licenses (Section 5.12)

 











 

Liquidia Technologies, Inc.

 

Technology In-license Schedule, as of 14 December 2015

 

1.              University of North Carolina at Chapel Hill: Amended and Restated License Agreement, effective December 15, 2008, as amended.

2.              Envisia Therapeutics Inc.: License Agreement, effective November 8, 2013, as amended.

3.              LQ3 Pharmaceuticals, Inc.: License Agreement, effective July 10, 2014, as amended; and Sub-License Agreement, effective July 10, 2014, as amended.