Document:

Exhibit 10.12.1

 

Execution Version

 

AMENDMENT NO. 1

TO

LOAN AND SECURITY AGREEMENT

 

THIS AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 24th day of July, 2012 by and between INSMED INCORPORATED, a Virginia corporation (“Parent”), INSMED PHARMACEUTICALS, INC., a Virginia corporation (“Insmed Pharma”), CELTRIX PHARMACEUTICALS, INC. a Delaware corporation (“Celtrix”), TRANSAVE, LLC, a Delaware limited liability company (“Transave”, together with Parent, Insmed Pharma, and Celtrix are hereinafter collectively referred to as the “Borrowers”, and each individually as a “Borrower”), and HERCULES TECHNOLOGY GROWTH CAPITAL, INC., a Maryland corporation (the “Lender”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).

 

RECITALS

 

A.            Each Borrower and the Lender have entered into that certain Loan and Security Agreement dated as of June 29, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), pursuant to which the Lender has agreed to extend and make available to the Borrowers certain extensions of credit.

 

B.            Each Borrower and the Lender have agreed to amend the Loan Agreement upon the terms and conditions more fully set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:

 

1.             AMENDMENTS.

 

1.1          Section 7.13 (Deposit Accounts). Section 7.13 of the Loan Agreement is hereby, retroactively to July 11, 2012, amended and restated in its entirety as follows:

 

“7.13      Deposit Accounts. No Borrower nor any Subsidiary shall maintain any Deposit Accounts, or accounts holding Investment Property, except with respect to (a) which the Lender has an Account Control Agreement and (b) Wells Fargo Bank, National Association, account no. 070491230905172 (the “Wells Fargo CD Account”); provided, that (i) funds in the Wells Fargo CD Account shall not exceed $2,111,248 plus regularly accrued interest and (ii) all amounts in the Wells Fargo CD Account shall be transferred to an account with respect to which the Lender has an Account Control Agreement promptly upon the existing maturity date of the certificate of deposit on July 26, 2013.”

 

2.             BORROWERS’ REPRESENTATIONS AND WARRANTIES. Each Borrower represents and warrants that:

 

 

(a)           immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of Default has occurred and is continuing;

 

(b)           such Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

 

(c)           the certificate or articles of incorporation, bylaws and other organizational documents of such Borrower delivered to the Lender on the Closing Date remain true, accurate and complete and have not been amended, restated, supplemented or otherwise modified and continue to be in full force and effect;

 

(d)           the execution and delivery by such Borrower of this Amendment and the performance by such Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action or limited liability company, as applicable, on the part of such Borrower;

 

(e)           this Amendment has been duly executed and delivered by such Borrower and is the binding obligation of such Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights generally; and

 

(f)            as of the date hereof, such Borrower has no defenses against the obligations to pay any amounts under the Obligations.

 

Each Borrower understands and acknowledges that the Lender is entering into this Amendment in reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate.

 

3.             LIMITATION. The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which the Lender may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof. Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect.

 

4.             EFFECTIVENESS. This Amendment shall become effective upon the satisfaction of all of the following conditions precedent in form and substance satisfactory to the Lender (the “Effective Date”):

 

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4.1          Amendment. The Lender shall have received duly executed counterparts of this Amendment signed by the parties hereto.

 

5.             EXPENSES. Each Borrower agrees to pay the Lender’s costs and expenses (including the reasonable fees and expenses of the Lender’s counsel, advisors and consultants) accrued and incurred in connection with the transactions contemplated by this Amendment, and all other Lender expenses (including the reasonable fees and expenses of the Lender’s counsel, advisors and consultants) payable in accordance with Section 11.11 of the Loan Agreement.

 

6.             COUNTERPARTS. This Amendment may be signed originally or by facsimile or other means of electronic transmission in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument. All counterparts shall be deemed an original of this Amendment.

 

7.             INTEGRATION. This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by the Lender with respect to the Borrowers shall remain in full force and effect.

 

8.             GOVERNING LAW; VENUE. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Each Borrower and the Lender each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California.

 

[Remainder of page intentionally left blank; signature page follows]

 

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

 

BORROWERS:

 

	
INSMED INCORPORATED
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kevin P.   Tully
    	
 
    
	
Name:
    	
Kevin P. Tully
    	
 
    
	
Title:
    	
Chief Financial   Officer
    	
 
    
	
 
    	
 
    	
 
    
	
INSMED PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kevin P.   Tully
    	
 
    
	
Name:
    	
Kevin P. Tully
    	
 
    
	
Title:
    	
Chief Financial   Officer
    	
 
    
	
 
    	
 
    	
 
    
	
TRANSAVE, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kevin P.   Tully
    	
 
    
	
Name:
    	
Kevin P. Tully
    	
 
    
	
Title:
    	
Chief Financial   Officer
    	
 
    
	
 
    	
 
    	
 
    
	
CELTRIX PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kevin P.   Tully
    	
 
    
	
Name:
    	
Kevin P. Tully
    	
 
    
	
Title:
    	
Chief Financial   Officer
    	
 
    
	
 
    	
 
    	
 
    
	
LENDER:
    	
 
    
	
 
    	
 
    	
 
    
	
HERCULES TECHNOLOGY GROWTH
    	
 
    
	
CAPITAL, INC.,
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ K. Nicholas   Martitsch
    	
 
    
	
Name:
    	
K. Nicholas   Martitsch
    	
 
    
	
Its:
    	
Associate   General Counsel
    	
 
    

 

[Signature Page to Amendment No. 1 to Loan and Security Agreement]Exhibit 10.12.2

 

AMENDMENT NO. 2

TO

LOAN AND SECURITY AGREEMENT

 

THIS AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is dated as of November 25, 2013 and is entered into by and among INSMED INCORPORATED, a Virginia corporation (“Parent”), INSMED PHARMACEUTICALS, INC., a Virginia corporation (“Insmed Pharma”), CELTRIX PHARMACEUTICALS, INC., a Delaware corporation (“Celtrix”), TRANSAVE, LLC, a Delaware limited liability company (“Transave”, together with Parent, Insmed Pharma, and Celtrix are hereinafter collectively referred to as the “Borrowers” and each individually as a “Borrower’’), and HERCULES TECHNOLOGY GROWTH CAPITAL, INC., a Maryland corporation (“Lender”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).

 

RECITALS

 

A.                                    Borrowers and Lender have entered into that certain Loan and Security Agreement dated as of June 29, 2012 (as may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement’’), pursuant to which Lender has extended and make available to Borrowers certain extensions of credit.

 

B.                                    Borrowers and Lender have agreed to amend the Loan Agreement upon the terms and conditions more fully set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:

 

1.                                      AMENDMENTS.

 

1.1                               The definition of “Amortization Date” in Section 1.1 is amended and restated with the following:

 

“Amortization Date” means July 1, 2014; provided that if Borrowers (i) achieve positive data from their TARGET-112 Phase II NTM Trial and (ii) pays Lender an additional $100,000 fee on or prior to July 1, 2014, then the Amortization Date shall be extended to January 1, 2015.

 

1.2                               The reference to “$200,000” in clause (vii) of the definition of “Permitted Indebtedness” in Section 1.1 is hereby amended and restated with “$250,000”.

 

1.3                               The second sentence in Section 2.2(d) is amended and restated with the following:

 

The Borrowers shall repay the aggregate Term Loan principal balance that is outstanding on the Amortization Date in equal monthly installments of principal and interest (based upon a 30 month amortization schedule) commencing on the applicable Amortization Date and continuing on the first business day of each month thereafter with any yet to accrue amortization payments (balloon) due on the Term Loan Maturity Date.

 

 

2.                                      BORROWERS’ REPRESENTATIONS AND WARRANTIES. Each Borrower represents and warrants that:

 

(a)                                 immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct in all material respects as of such earlier date), and (ii) no Event of Default has occurred and is continuing;

 

(b)                                 such Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

 

(c)                                  the certificate of incorporation, bylaws and other organizational documents of such Borrower delivered to Lender on the Closing Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

(d)                                 the execution and delivery by such Borrower of this Amendment and the performance by such Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of such Borrower;

 

(e)                                  this Amendment has been duly executed and delivered by such Borrower and is the binding obligation of such Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights; and

 

(f)                                   as of the date hereof, such Borrower has no defenses against the obligations to pay any amounts under the Obligations.

 

Each Borrower understands and acknowledges that Lender is entering into this Amendment in reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate.

 

3.                                      LIMITATION. The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Lender may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof. Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect.

 

4.                                      EFFECTIVENESS. This Amendment shall become effective upon the satisfaction of all the following conditions precedent:

 

4.1                               Fee. The Borrowers shall pay Lender a non-renewable facility fee equal to $100,000.

 

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4.2                               Amendment. The Lender shall have duly executed counterparts of this Amendment signed by the parties hereto.

 

4.3                               Insurance Certificate. The Lender shall have received insurance certificates reasonably satisfactory to Lender adding [DESCRIBE NEW ADDRESS] to such policies.

 

5.                                      COUNTERPARTS. This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument. All counterparts shall be deemed an original of this Amendment.

 

6.                                      INCORPORATION BY REFERENCE. The provisions of Section 11 of the Agreement shall be deemed incorporated herein by reference, mutatis mutandis.

 

[signature page follows]

 

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

 

BORROWERS:

 

	
INSMED   INCORPORATED
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Andrew T.   Drechsler
    	
 
    
	
Name:
    	
Andrew T.   Drechsler
    	
 
    
	
Title:
    	
Chief Financial   Officer
    	
 
    
	
 
    	
 
    
	
INSMED   PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Andrew T.   Drechsler
    	
 
    
	
Name:
    	
Andrew T.   Drechsler
    	
 
    
	
Title:
    	
Chief Financial   Officer
    	
 
    
	
 
    	
 
    
	
TRANSAVE,   LLC
    	
 
    
	
 
    	
 
    
	
BY:   INSMED INCORPORATED, ITS MANAGING
    	
 
    
	
MEMBER
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Christine   Pellizzari
    	
 
    
	
Name:
    	
Christine   Pellizzari
    	
 
    
	
Title:
    	
General   Counsel & Corporate Secretary
    	
 
    
	
 
    	
 
    
	
CELTRIX   PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Andrew T.   Drechsler
    	
 
    
	
Name:
    	
Andrew T.   Drechsler
    	
 
    
	
Title:
    	
Chief Financial   Officer
    	
 
    

 

 

LENDER:

	
 
    	
 
    
	
HERCULES   TECHNOLOGY GROWTH CAPITAL, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Ben Bang
    	
 
    
	
Name:
    	
Ben Bang
    	
 
    
	
Its: 
    	
Senior Counsel

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