Document:

Exhibit 10.2

Exhibit 10.2
FIRST AMENDMENT TO 
LOAN AND SECURITY AGREEMENT
THIS FIRST AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into as of June 11, 2013, by and between OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 of the Loan Agreement (as defined below) or otherwise party thereto from time to time including Oxford in its capacity as a Lender and SQUARE 1 BANK, a North Carolina banking corporation with an office located at 406 Blackwell Street, Suite 240, Durham, NC 27701 (“Bank” or “Square 1”) (each a “Lender” and collectively, the “Lenders”) and LIPOSCIENCE, INC., a Delaware corporation with offices located at 2500 Sumner Boulevard, Raleigh, NC 27616 (“Borrower”)
RECITALS
A.Collateral Agent, Lenders and Borrower have entered into that certain Loan and Security Agreement dated as of December 20, 2012 (as amended from time to time, the “Loan Agreement”).
B.    Lenders have extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Collateral Agent and Lenders (i) waive the Existing Event of Default (defined below) and (ii) revise the performance to plan financial covenant in the Loan Agreement as more fully set forth herein.
D.    Collateral Agent and Lenders have agreed to amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.
2.    Amendments to Loan Agreement.  
2.1    Section 6.10 (Financial Covenants).  Section 6.10(ii) of the Loan Agreement hereby is amended and restated in its entirety to read as follows:
“(ii)    Performance to Plan; Revenue.  Revenues shall (x) for 2013, be at least eighty percent (80.00%) of the trailing three (3) month projections contained in the Annual Projections delivered to the Lenders in accordance with Section 6.2 hereof; and (y) beginning with fiscal year 2014, be at least eighty percent (80.00%) of the trailing three (3) month projections that have been approved by Borrower’s Board of Directors and be equal to or greater than the revenues for the same period from the previous year.  Borrower shall deliver to Collateral Agent and Lenders updated Annual Projections approved by Borrower's Board of Directors for each fiscal year in accordance with Section 6.2 hereof; and this covenant shall be measured against such updated Annual Projections, provided that all such Annual Projections shall include annual projected revenues of at least Fifty Five Million Dollars ($55,000,000.00).”

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3.    Waiver.  Borrower is currently in default of the Loan Agreement for failing to comply with Section 6.10(ii) of the Loan Agreement as in effect immediately prior to the date hereof for the measuring periods ended March 2013, April 2013 and May 2013 (collectively, the “Existing Event of Default”).  Borrower hereby acknowledges, and Collateral Agent and Lenders hereby waive, the Existing Event of Default.
4.    Limitation of Amendment.
4.1    The amendment set forth in Section 2, and the waiver set forth in Section 3 above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Collateral Agent or any Lender may now have or may have in the future under or in connection with any Loan Document.
4.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.
5.    Representations and Warranties.  To induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders as follows:
5.1    Immediately after giving effect to this Amendment (a) 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 (b) no Event of Default has occurred and is continuing;
5.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
5.3    The organizational documents of Borrower delivered to Collateral Agent and Lenders on June 10, 2013, or subsequent thereto, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
5.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;
5.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;
5.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and
5.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower 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.

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6.    Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
7.    Effectiveness.  This Amendment shall be deemed effective upon the due execution and delivery to Collateral Agent and Lenders of (i) this Amendment by each party hereto and (ii) Borrower’s payment of all Lenders’ Expenses incurred through the date of this Amendment.
[Balance of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.
	
		
	COLLATERAL AGENT AND LENDER:

	 
	 

	OXFORD FINANCE LLC

	 
	 

	By:
	/s/    Mark Davis

	Name:
	Mark Davis

	Title:
	Vice President - Finance, Secretary & Treasurer

	
		
	LENDER:

	 
	 

	OXFORD FINANCE FUNDING I, LLC

	By: Oxford Finance LLC, as servicer

	 
	 

	By:
	/s/    Mark Davis

	Name:
	Mark Davis

	Title:
	Vice President - Finance, Secretary & Treasurer

	
		
	LENDER:

	 
	 

	SQUARE 1 BANK

	 
	 

	By:
	/s/    Evan Travis

	Name:
	Evan Travis

	Title:
	Assistant Vice President

	
		
	BORROWER:

	 
	 

	LIPOSCIENCE, INC.

	 
	 

	By:
	/s/    Lucy G. Martindale

	Name:
	Lucy G. Martindale

	Title:
	Chief Financial Officer

[Signature Page to First Amendment to Loan and Security Agreement]Exhibit 10.3

Exhibit 10.3
LEASE AMENDMENT NO. 4

THIS LEASE AMENDMENT NO. 4 (this "Amendment") is made this 11 day of June 2013 ("Execution Date"), by and between Raleigh Portfolio JH-SBP, LLC (formerly known as Raleigh Portfolio JH, LLC) ("Landlord") and LipoScience, Inc, a Delaware corporation (formerly known as LipoMed, Inc.) ("Tenant").
WHEREAS, Parker-Raleigh Development XXX, LLC ("PRD") and Tenant entered into a written agreement of Lease executed October 4, 2001, amended by Lease Amendment No. 1 executed March 5, 2002, Lease Amendment No. 2 executed August 28, 2002 and Lease Amendment No. 3 executed November 29, 2011 (collectively the "Lease") whereby PRD leases to Tenant approximately 82,785 square feet of space located at 2500 Sumner Boulevard (consisting of "Building 307" (39,820 square feet), "Building 308" (33,220 square feet) and a 9,745 square foot connector between Building 307 and Building 308 ("Connector") (collectively the "Premises"); and,
WHEREAS, subsequent to Lease execution, PRD transferred all of its rights, title and interest in the Lease and the Premises to Landlord; and
WHEREAS, the Lease Term expires for the Premises on  September 30, 2022 ("Expiration Date"); and,
WHEREAS, the parties desire to further amend and modify the Lease as hereinafter set forth.
NOW, THEREFORE, by mutual agreement of the parties and in consideration of the mutual promises and obligations hereinafter set forth, the Lease and all related documents are hereby amended and modified as follows:
1.  The foregoing recitals are true and correct and are incorporated herein by reference.
2.  Pursuant to Section 17 of Lease Amendment No. 3, Tenant has satisfied the requirement to reduce its Security Deposit to $500,000 in cash.  Notwithstanding the foregoing, Landlord has agreed to accept Tenant's request that the cash Security Deposit be replaced with a Letter of Credit provided it meets the following criteria:
During the remainder of the Lease Term, Tenant will provide to Landlord, a clean, unconditional, irrevocable, payable-at-sight letter of credit, which shall conform, in all material respects to the form attached to the Lease in the stated principal amount of $500,000.00, drawn on a bank chartered in North Carolina and approved by Landlord ("LOC").

The LOC shall name Landlord as its beneficiary and shall remain outstanding until 30 days after the expiration of the Lease Term, including all extensions and renewals.  The Letter of Credit must require the bank to provide 60-days advance written notice to Landlord in the event of a pending cancellation or for non-renewal of the Letter of Credit.  The Letter of Credit must also allow Landlord to transfer its beneficiary rights in Landlord's sole discretion. If there shall be a monetary event of default under the Lease, in addition to the remedies set forth in Section 11.2 of the Lease, Landlord shall have the right immediately, without further notice, to draw on the LOC in whole or in part at Landlord's sole discretion to reimburse Landlord for the default and all related costs. Notwithstanding the forgoing, Landlord shall provide Tenant the right to cure said monetary default provided such 

default is cured within seven business days. Tenant must provide to Landlord a replacement letter of credit in the same amount and with the same terms, and pay to Landlord a nonrefundable fee of $2,500.00 to reimburse Landlord for its costs associated with drawing upon the LOC.

4.  Miscellaneous
          a.  The signatory of Tenant represents to Landlord that he or she is duly authorized to execute and deliver this Amendment on behalf of Tenant.
              b.  The Lease, this Amendment, and the attached exhibits, if any, which are hereby incorporated into and made a part of this Amendment, set forth the entire agreement between the parties with respect to the matters set forth herein.  There have been no additional oral or written representation or agreements.
         c.  Except as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect.
           d.  In the case of any inconsistency between the provisions of the Lease and this Amendment, the provisions of this Amendment shall govern and control.
         e.  Submission of this Amendment by Landlord is not an offer to enter into this Amendment but rather is a solicitation for such offer by Tenant.  Landlord shall not be bound by this Amendment until Landlord has executed and delivered the same to Tenant.
          f.  The capitalized terms used in this Amendment shall have the same definitions as set forth in the Lease unless otherwise defined herein or the context otherwise requires.  
Except as herein above provided, all other terms and conditions of the Lease shall remain unchanged and in full force and effect, and are hereby ratified and confirmed by the parties hereto.
IN WITNESS WHEREOF, the parties hereto have hereunto executed this Amendment in triplicate causing their respective seals to be affixed hereto the day and year first above written.

	
					
	LANDLORD:
	 
	TENANT:

	 
	 
	 
	 
	 

	Raleigh Portfolio JH-SBP, LLC,    
	 
	LipoScience, Inc.,

	Acting through its authorized agent,    
	 
	a Delaware corporation

	BPG Management Company - NC, LLC
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Nancy C. O'Larnic            (SEAL)    
	 
	By:
	/s/ Lucy G. Martindale              (SEAL)

	 
	Vice President    
	 
	Title:
	Chief Financial Officer

	 
	 
	 
	Name:
	Lucy G. Martindale                          

	 
	 
	 
	 
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