Document:

Exhibit 10.3

FIRST AMENDMENT

TO

LOAN AND SECURITY
AGREEMENT

 

This First Amendment to Loan and Security Agreement
(the “Amendment”) is entered into as of December 19, 2005, by and between
COMERICA BANK (“Bank”) and ARRAY BIOPHARMA, INC. (“Borrower”).

 

RECITALS

 

Borrower and Bank
are parties to that certain Loan and Security Agreement dated as of June 28,
2005 (as amended from time to time, together with any related agreements, the “Agreement”).  Hereinafter, all indebtedness owing by
Borrower to Bank shall be referred to as the “Indebtedness.”  The parties desire to amend the Agreement in
accordance with the terms of this Amendment.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

I.              Incorporation by Reference. The
Recitals and the documents referred to therein are incorporated herein by this
reference.  Except as otherwise noted,
the terms not defined herein shall have the meaning set forth in the Agreement.

 

II.            Amendment to the Agreement.  Subject to the satisfaction of the conditions
precedent as set forth in Article IV hereof, the Agreement is hereby amended as
set forth below.

 

A.            The
first sentence of Section 6.6 of the Agreement is hereby amended and restated
in its entirety to read as follows:

 

“Borrower shall at all
times, measured on a daily basis, (A) maintain a balance of Cash at Bank of not
less than: (i) Zero Dollars ($0) if Borrower’s total Cash at Bank plus Cash
covered by Account Control Agreements is not less than Forty Million Dollars
($40,000,000), (ii) Two Million Dollars ($2,000,000) if Borrower’s total Cash
at Bank plus Cash covered by Account Control Agreements is at least Thirty
Million Dollars ($30,000,000) but less than Forty Million Dollars
($40,000,000), (iii) Eight Million Five Hundred Thousand Dollars ($8,500,000)
if Borrower’s total Cash at Bank plus Cash covered by Account Control
Agreements is at least Twenty Five Million Dollars ($25,000,000) but less than
Thirty Million Dollars ($30,000,000), (iv) Seventeen Million Dollars
($17,000,000) if Borrower’s total Cash at Bank plus Cash covered by Account
Control Agreements is less than Twenty Five Million Dollars ($25,000,000) and
(B) maintain a balance of Cash at Bank plus Cash covered by Account Control
Agreements of not less than Twenty Million Dollars ($20,000,000).”

 

B.            Bank’s
primary address for notices set forth in Section 10 of the Agreement is hereby
amended in its entirety to read as follows:

 

	
  “If to Bank:

  	
   

  	
  Comerica Bank

  
	
   

  	
   

  	
  m/c 4770

  
	
   

  	
   

  	
  75 E Trimble
  Road

  
	
   

  	
   

  	
  San Jose, CA
  95131

  
	
   

  	
   

  	
  Attn: Manager

  
	
   

  	
   

  	
  FAX: (408) 556-5091”

  

 

1

 

C.            The fourth sentence of Section 11 of the
Agreement is hereby amended and restated in its entirety to read as follows:

 

“TO THE EXTENT PERMITTED BY LAW, EACH PARTY, 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.”

 

D.            The
dollar amount of “Eight Million Dollars ($8,000,000)” in Sections 2.a. and 2.b.
of Exhibit D (LIBOR/Cost of Funds Addendum) to the Agreement is hereby changed
to “Ten Million Dollars ($10,000,000)”.

 

III.           Legal Effect.

 

A.            The
Agreement is hereby amended wherever necessary to reflect the changes described
above. Borrower agrees that it has no defenses against the obligations to pay
any amounts under the Indebtedness.

 

B.            Borrower
understands and agrees that in modifying the existing Indebtedness, Bank is
relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Agreement.  Except as
expressly modified pursuant to this Amendment, the terms of the Agreement
remain unchanged, and in full force and effect.   Bank’s agreement to modifications to the
existing Indebtedness pursuant to this Amendment in no way shall obligate Bank
to make any future modifications to the Indebtedness.  Nothing in this Amendment shall constitute a
satisfaction of the Indebtedness.  It is
the intention of Bank and Borrower to retain as liable parties, all makers and
endorsers of Agreement, unless the party is expressly released by Bank in
writing.  No maker, endorser, or
guarantor will be released by virtue of this Amendment.  The terms of this paragraph apply not only to
this Amendment, but also to all subsequent loan modification requests.

 

C.            This
Amendment may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one instrument.  This is an integrated Amendment and
supersedes all prior negotiations and agreements regarding the subject matter
hereof.  All modifications hereto must be
in writing and signed by the parties.

 

IV.           Conditions Precedent.        Except as specifically set forth in this
Amendment, all of the terms and conditions of the Agreement remain in full
force and effect.  The effectiveness of
this Agreement is conditioned upon receipt by Bank of this Amendment, and any
other documents which Bank may require to carry out the terms hereof, including
but not limited to the following:

 

A.            This
Amendment, duly executed by Borrower;

 

B.            A
legal fee from the Borrower in the amount of $250; and

 

C.            Such
other documents, and completion of such other matters, as Bank may reasonably
deem necessary or appropriate.

 

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

 

2

 

	
   

  	
  ARRAY BIOPHARMA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMERICA BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

3Exhibit 10.4

 

ADDENDUM
#5 TO LEASE AGREEMENT

 

THIS ADDENDUM #5 TO LEASE AGREEMENT,
dated as of December 2, 2005, is entered into by and between CIRCLE CAPITAL
LONGMONT LLC, a Delaware limited liability company (“Landlord”) and ARRAY
BIOPHARMA, INC., a Delaware corporation (“Tenant”).

 

Recitals:

 

 
A. Landlord’s predecessor in interest and Tenant entered into a written
lease agreement, dated February 28, 2000, as amended by Addendum to Lease
Agreement #1 dated May 24, 2001, Addendum to Lease Agreement #2, dated February
11, 2002, Addendum to Lease Agreement dated November 30, 2004 and Addendum #4
to Lease Agreement dated August 1, 2005 (“Addendum #4) (collectively, the “Lease”),
pertaining to Suites A & B of the Building located at 2620 Trade Centre
Avenue which Premises consist of approximately 43,200 rentable square feet of
space (the “Premises”). (Initially capitalized terms not otherwise defined
herein have the same meaning as in the Lease.)

 

 
B. Under Addendum #4 to Lease Agreement, Tenant was granted an option,
under certain terms, to lease additional space (as defined in Addendum #4, the “Expansion
Option”) in the buildings located at 2500, 2420 and/or 2410 Trade Centre
Avenue.  To exercise the Expansion
Option, Tenant was required to give written notice to Landlord of its election
to exercise the Expansion Option on or before the 120th day after mutual execution of
Addendum #4.

 

 
C. Tenant desires to exercise the Expansion Option with respect to the
buildings located at 2500 and 2420 Trade Centre Avenue.  Tenant and Landlord have engaged in
discussions concerning Tenant’s interest in the possible expansion and
improvement of the building located at 2410 Trade Centre Avenue.  Tenant remains interested in exercising the
Expansion Option with respect to the building located at 2410 Trade Centre
Avenue, particularly if such building can be appropriately expanded and
improved.

 

 
D. Landlord and Tenant desire to amend the Lease in the manner and form
hereinafter set forth.

 

 NOW, THEREFORE, for good and valuable
consideration, Landlord and Tenant hereby agree as follows:

 

 1. Tenant is not required to exercise the
Expansion Option with respect to all the Option Space at once.  Rather, Tenant may submit more than one
Tenant’s Expansion Notice, provided that Tenant complies with the provisions
set forth in Section 10B(ii) of Addendum #4.

 

 2. Upon execution by both Landlord and Tenant,
this Addendum shall be deemed Tenant’s Expansion Notice with respect to the
buildings located at 2500 and 2420 Trade Centre Avenue. Following the mutual
execution of this Addendum, the procedures provided in Sections 10.B through
10.F of Addendum #4 shall govern the leasing of such space.

 

 3. To exercise the Expansion Option with
respect to the building located at 2410 Trade Centre Avenue, Tenant shall give
Tenant’s Expansion Notice on or before December 31, 2005.  If Tenant exercises the 2410 Trade Centre
Avenue Expansion Option by giving Tenant’s Expansion Notice, Landlord shall use
reasonable efforts to notify Tenant whether 2410 Trade Centre Avenue is
included within the Expansion Premises on or before the 90th day after mutual execution of this
Addendum, but in no event later than the 90th day after
receipt of Tenant’s Expansion Notice for 2410 Trade Centre Avenue.

 

 4. In connection with Tenant’s
consideration of whether to exercise the Expansion Option pertaining to 2410
Trade Centre Avenue, Tenant has requested that Landlord consider addition of a
partial second floor to 2410 Trade Centre Avenue of sufficient size such that
the building would comprise 36,000-40,000 square feet and improvements to the
entry and landscaping to be compatible for use as a corporate office
headquarters.  Tenant has already
provided Landlord with preliminary requirements and with drawings of the requested
addition and improvements. Following the mutual execution of this Addendum,
Landlord

 

 

shall review and approve or suggest
revisions to the preliminary requirements and drawings submitted by Tenant and
thereafter Landlord and Tenant shall reasonably cooperate to finalize
preliminary plans, taking into account reasonable design suggestions by Tenant
concerning the nature and scope of such expansion and improvements; when
approved by Landlord and Tenant such plans shall be deemed the “2410
Preliminary Plans.”  Following mutual
approval of the 2410 Preliminary Plans, (i) Landlord shall use commercially
reasonable efforts to obtain preliminary approvals of the 2410 Preliminary
Plans from all relevant local officials prior to December 31, 2005, and (ii) prior
to December 31, 2005, Landlord shall provide Tenant a written offer (as an
alternative to the terms that would otherwise be applicable under Section 10.D
of Addendum #4), taking into account the estimated costs for completing work in
accordance with the 2410 Preliminary Plans, which offer shall include the terms
under which Landlord would rent 2410 Trade Centre Avenue to Tenant assuming
completion of such expansion and improvements and delivery of such space by
March 1, 2008 (which offer would be subject to Landlord obtaining final
building permit approvals for construction in accordance with the 2410
Preliminary Plans and confirming its ability to reach agreement with the
existing tenant as provided below) and the terms that would be applicable to a purchase
of 2410 Trade Centre Avenue under Section 12 of Addendum #4 taking into account
such work (collectively, “Landlord’s 2410 Offer”).

 

 5. If Tenant desires to exercise Tenant’s
Expansion Option for the building at 2410 Trade Centre Avenue, Tenant shall
give Landlord Tenant’s Expansion Notice on or before January 6, 2006.  The terms of Section 10.D of Addendum #4
(without regard to Landlord’s 2410 Offer) shall govern the leasing of such
space.  In the event Tenant remains
interested in expansion and improvement of the building at 2410 Trade Centre
Avenue in accordance with the 2410 Preliminary Plans, Tenant shall so indicate
in Tenant’s Expansion Notice and the parties shall thereafter negotiate in good
faith, based on Landlord’s 2410 Offer and taking into account the then-current
status of construction building permit approvals, the basis on which Landlord
is able to reach agreement with the existing tenant, and inclusion of 2410
Trade Centre Avenue within the Expansion Premises, the terms under which Landlord
would rent 2410 Trade Centre Avenue to Tenant assuming completion of such
expansion and improvements and delivery of such space by March 1, 2008 and the
terms that would be applicable to a purchase of 2410 Trade Centre Avenue under
Section 12 of Addendum #4 taking into account such work.  All other provisions relating to the Option
Space at 2410 Trade Centre Avenue shall be as set forth in the Lease.

 

 6. Non-Disclosure.  The terms of the Lease, including
this Addendum are subject to Section 16 of Addendum 4.

 

 7. Conflicts.
If there is any conflict between the terms of this Addendum and the
terms of the Lease, the terms of this Addendum shall govern.  The Lease as hereby amended is in full force
and effect, is hereby ratified and affirmed by the parties, and is binding upon
the parties in accordance with its terms.

 

 8. Time of
Essence.  Time is of the
essence herein.

 

 IN WITNESS WHEREOF, the parties
have executed this Addendum as of the day and year first above written and is
effective upon delivery of a fully executed copy to Tenant; the last date
signed is the date of mutual execution as referred to above.

 

	
  LANDLORD:

  	
  CIRCLE
  CAPITAL LONGMONT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Circle
  Capital Property Management LLC, Authorized Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
  Date
  Signed 

  	
   

  	
  Terry
  Fitzpatrick, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
  ARRAY BIOPHARMA, INC., a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
  Date
  Signed 

  	
   

  	
  R. Michael
  Carruthers, CFO

  
						

 

 

ADDENDUM
#6 TO LEASE AGREEMENT

 

THIS ADDENDUM #6 TO LEASE
AGREEMENT, dated as of December 22, 2005 is entered into by and between CIRCLE
CAPITAL LONGMONT LLC, a Delaware limited liability company (“Landlord”) and
ARRAY BIOPHARMA, INC., a Delaware corporation  (“Tenant”).

 

Recitals:

 

A.            Landlord’s predecessor in interest and Tenant entered
into a written lease agreement, dated February 28, 2000, as amended by Addendum
to Lease Agreement #1 dated May 24, 2001, Addendum to Lease Agreement #2, dated
February 11, 2002, Addendum to Lease Agreement dated November 30, 2004,
Addendum #4 to Lease Agreement dated August 1, 2005 (“Addendum #4”), and
Addendum #5 to Lease Agreement dated as of November 30, 2005 (“Addendum #5”)
(collectively, the “Lease”), pertaining to Suites A & B of the Building
located at 2620 Trade Centre Avenue which Premises consist of approximately
43,200 rentable square feet of space (the “Premises”). (Initially capitalized
terms not otherwise defined herein have the same meaning as in the Lease.)

 

B.            Under Addendum #4 to Lease Agreement, Tenant was granted
an option, under certain terms, to lease additional space (as defined in
Addendum #4, the “Expansion Option”) in the buildings located at 2500, 2420
and/or 2410 Trade Centre Avenue.  To
exercise the Expansion Option, Tenant was required to give written notice to
Landlord of its election to exercise the Expansion Option on or before the 120th
day after mutual execution of Addendum #4.

 

C.            Under Addendum #5 to Lease Agreement, Tenant exercised
the Expansion Option with respect to 2500 and 2420 Trade Centre Avenue and
amended the terms of the Expansion Option with respect to the 2410 Trade Centre
Avenue.

 

D.            Landlord and Tenant wish to further amend the terms of
the Expansion Option with respect to 2410 Trade Centre Avenue.

 

E.             Landlord and Tenant desire to amend the Lease in the
manner and form hereinafter set forth.

 

NOW, THEREFORE, for good and
valuable consideration, Landlord and Tenant hereby agree as follows:

 

1.             Modification of
Section 3.  The date, December
31, 2005, in Section 3 of Addendum #5 shall be amended to February 6, 2006.

 

2.             Modification of Section
4.  The date, December 31,
2005 wherever it appears in Section 4 of Addendum #5 shall be amended to
January 31, 2006.

 

3.             Modification of
Section 5.  The date, January
6, 2006, in Section 5 of Addendum #5 shall be amended to February 6, 2006.

 

4.             Conflicts. If
there is any conflict between the terms of this Addendum and the terms of the
Lease, the terms of this Addendum shall govern. 
The Lease as hereby amended is in full force and effect, is hereby
ratified and affirmed by the parties, and is binding upon the parties in
accordance with its terms.

 

5.             Time of Essence.  Time is of the essence herein.

 

 

IN WITNESS WHEREOF, the parties have executed this Addendum as of the day and year first
above written and is effective upon delivery of a fully executed copy to
Tenant; the last date signed is the date of mutual execution as referred to
above.

 

	
  LANDLORD:

  	
  CIRCLE CAPITAL LONGMONT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Circle Capital Property
  Management LLC,

  Authorized Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
   

  
	
  Date Signed

  	
   

  	
   

  	
  Terry Fitzpatrick, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
  ARRAY BIOPHARMA, INC., a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
   

  
	
  Date Signed

  	
   

  	
   

  	
  R. Michael Carruthers, CFO

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