Document:

AMENDMENT NO. 10, DATED JUNE 2, 2010, TO LOAN & SECURITY AGREEMENT

 Exhibit 10.3 

[ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 
 TENTH AMENDMENT

 TO 

LOAN AND SECURITY AGREEMENT 

THIS TENTH AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this 2nd day of June,
2010, by and between Silicon Valley Bank (“Bank”) and Exelixis, Inc., a Delaware corporation (“Borrower”), whose address is 170 Harbor Way, South San Francisco, California 94083. 

RECITALS 

A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of May 22, 2002 (as amended,
modified, supplemented or restated from time to time, the “Loan Agreement”). 
 B. Bank has extended
credit to Borrower for the purposes permitted in the Loan Agreement. 
 C. Borrower has requested that Bank amend the
Loan Agreement and Bank has agreed to so 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 Term Loan. A new Section 2.1.5 is hereby added to the Loan Agreement as follows: 

“2.1.5 Term Loan 

(a) Availability. Bank shall make one (1) term loan available to Borrower in an amount equal to the Term Loan Amount on the
Tenth Amendment Effective Date subject to the satisfaction of the terms and conditions of this Agreement. 
 (b)
Repayment. Borrower shall repay the Term Loan in one (1) balloon principal payment representing 100% of the principal on the Term Loan Maturity Date. 

 

 1 

 
Borrower’s final Term Loan payment, due on the Term Loan Maturity Date, shall include the entire principal balance and accrued and unpaid interest. Once repaid, the Term Loan may not be
reborrowed. 
 (c) Interest. The principal amount outstanding under the Term Loan shall accrue interest at 1.00% per
annum, which interest shall be due and payable monthly. Any amounts outstanding under the Term Loan during the continuance of an Event of Default shall, at the election of Bank, bear interest at a per annum rate equal to 6.00%. Borrower shall pay
accrued interest on the last Business Day of the month following the Term Loan Funding Date (or commencing on the Term Loan Funding Date, if the Term Loan Funding Date is the last Business Day of the month) and continuing thereafter on the last
Business Day of each calendar month to and including the Term Loan Maturity Date. 
 (d) Prepayment. At Borrower’s
option, Borrower shall have the option to prepay all, but not less than all, of the Term Loan Amount advanced by Bank under this Agreement, provided Borrower provides written notice to Bank of its election to prepay the Term Loan at least thirty
(30) days prior to such prepayment. In the event of the termination of this Agreement or repayment of the Term Loan at any time prior to the Term Loan Maturity Date, for any reason, including (a) prepayment upon the election of Borrower in
accordance with the foregoing sentence, (b) termination upon the election of Bank to terminate after the occurrence and during the continuation of an Event of Default, (c) sale of the Collateral in Insolvency Proceedings,
(d) foreclosure and sale of Collateral, or (e) the restructuring, reorganization, or compromise of the Obligations by the confirmation of a plan of reorganization or any other plan of compromise, restructure, or arrangement in Insolvency
Proceedings, Borrower shall pay, in cash (i) all unpaid accrued interest thereon that is due through the date of such prepayment; (ii) the entire principal balance and interest thereon (based on an interest rate of 1.00% per annum)
that would otherwise be due after such prepayment date (as if the Term Loan would have been prepaid on the Term Loan Maturity Date); and (iii) all other sums, including Bank Expenses, if any, that have become due and payable hereunder with
respect to the Term Loan.” 
 2.2 Sections 3.2(a), (b) and (c) of the Loan Agreement are hereby amended as
follows: 
 “(a) In the case of any Equipment Advance, Bank shall have received any Loan Payment/Advance Request Form and
any Loan Supplement. 
 (b) The representations and warranties in Section 5 shall be true in all material respects on the
date of the Loan Payment/Advance Form and the Loan Supplement (in the case of any Equipment Advance), and on the effective date of each Credit Extension, and no Event of Default may have occurred and be continuing, or result from such Credit
Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties of Section 5 remain true in all material respects. 

 
 [ * ] = Certain confidential information contained in this document, marked
by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 
  

 2 

 (c) Borrower shall have opened its primary operating accounts with Bank and shall have
opened a segregated investment account with Bank’s Investment Products and Services Division, which shall have, or immediately upon funding of the requested Credit Extension(s) hereunder will have, a principal balance in an amount at all times
equal to not less than 100% of the principal portion of the Obligations plus the requested Credit Extension(s).” 
 2.3
Cash Collateral. A new Section 6.4(e) is hereby added to the Loan Agreement immediately after the existing Section 6.4(d) as follows: 

“(e) Borrower will at all times maintain on deposit in a non-interest bearing demand deposit account(s) with Bank or one of
Bank’s Affiliates (and Bank or Bank’s Affiliates, as the case may be, will only allocate such deposits to a non-interest bearing certificate deposit account) a compensating balance, which constitutes support for the Obligations, with a
principal balance in a value equal to at least 100% of the outstanding principal balance of the Obligations under Section 2.1.5. In the event that Borrower withdraws funds from such account(s) and, as a result, the compensating balance falls
below a value equal to at least 100% of the outstanding principal balance of the Obligations under Section 2.1.5, then Borrower shall be in violation of this Section 6.4(e).” 

2.4 The last parenthetical clause in Section 6.4(a), Section 6.4(b), and Section 6.4(c) is
hereby deleted in its entirety. 
 2.5 Section 8.1 of the Loan Agreement is hereby amended and restated in
its entirety to read as follows: 
 “8.1 Payment Default 

Borrower fails to pay any of the Obligation within three Business Days after their due date (which three Business Day cure period shall
not apply to payments due on any Maturity Date (with respect to any Equipment Advance) or the Term Loan Maturity Date (with respect to the Term Loan)). During the three-Business Day period, the failure to cure the default is not itself an Event of
Default (but Bank shall have no obligation to make a Credit Extension during the three-Business Day period).” 
 2.6
Amended Definition. The following defined term under Section 13 of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 

“Credit Extension” is each Equipment Advance, the Term Loan, or any other extension of credit made by Bank to Borrower or
for Borrower’s benefit. 
  
 [ * ] = Certain confidential
information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

 

 3 

 “Funding Date” is a date on which an Equipment Advance is made or the Term
Loan is funded to or on account of Borrower. 
 2.7 New Definitions. The following new defined terms are added to
Section 13 of the Loan Agreement in alphabetical order: 
 “Tenth Amendment Effective Date” means
June 2, 2010. 
 “Term Loan” is a loan made by Bank pursuant to the terms of Section 2.1.5 hereof.

 “Term Loan Amount” means Eighty Million Dollars ($80,000,000). 

“Term Loan Funding Date” means the date the Term Loan is funded to Borrower. 

“Term Loan Maturity Date” means the last Business Day in the eighty-fourth (84th) month following the Tenth
Amendment Effective Date. 
 2.8 Exhibit A. Exhibit A attached to the Loan Agreement is hereby deleted in its
entirety and replaced with Exhibit A attached hereto. 
 3. Limitation of Amendments. 

3.1 The amendments set forth in Section 2, 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 Bank may now have or may
have in the future under or in connection with any Loan Document. 
 3.2 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. 
 4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and
warrants to Bank as follows: 
 4.1 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; 
  

[ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 
  

 4 

 4.2 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; 
 4.3 The organizational documents of
Borrower delivered by Borrower to Bank most recently prior to the execution of this Amendment remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

4.4 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; 
 4.5 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; 

4.6 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 either Borrower, except as already has been obtained or made; and 
 4.7 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. 
 5.
Conditions Precedent. The effectiveness of this Amendment is expressly conditioned upon: 
 5.1 receipt by Bank of a
fully executed copy of this Amendment executed by Bank and Borrower; 
 5.2 Bank confirming all deposit balances required
in connection with the Loan Agreement; 
 5.3 Bank having a perfected first-priority security interest in each deposit
and security account required to be maintained by Borrower in connection with the Loan Agreement; and 
  

[ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 
  

 5 

 5.4 receipt by Bank of a fully executed copy of a Borrower’s Secretary
certificate. 
 6. Good Faith Deposit. Borrower has paid to Bank a Good Faith Deposit of $100,000 (the “Good Faith
Deposit”) to initiate Bank’s due diligence process. The Good Faith Deposit is refundable if the transactions contemplated hereunder are not approved by Bank, which approval is in the sole discretion of Bank. Otherwise, the Good Faith
Deposit shall be applied to pay any Bank Expenses incurred by Bank in connection with this Amendment with any remaining amounts refunded to Borrower. 

7. 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. 
 8. Effectiveness. This Amendment shall be deemed effective upon the
due execution and delivery to Bank of this Amendment by each party hereto. 
  

[ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 
  

 6 

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

									
	BANK	 		 	BORROWER
			
	SILICON VALLEY BANK	 		 	EXELIXIS, INC.
					
	By:	 	 /s/ Benjermin Colombo
	 		 	By:	 	 /s/ George Scangos

	Name:	 	Benjermin Colombo	 		 	Name:	 	George Scangos
	Title:	 	Senior Relationship Manager Life Science Practice	 		 	Title:	 	President and Chief Executive Officer

  

[ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

 EXHIBIT A 

The Collateral consists of all of Borrower’s right, title and interest in and to the following: 

All documents, cash, deposit accounts, securities, securities entitlements, securities accounts, investment property, financial assets,
letters of credit, certificates of deposit and instruments held in the following segregated investment or deposit accounts with Bank or an affiliate of Bank, whether now owned or hereafter acquired, and all proceeds of any of the foregoing, and all
of Borrower’s Books relating to the foregoing: 
 ACCOUNT # [ * ] 

ACCOUNT # [ * ] 
 ACCOUNT # [ * ] 

ACCOUNT # [ * ] 
 ACCOUNT # [ * ] 

 
 [ * ] = Certain confidential information contained in this document, marked
by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.TERMINATION AGREEMENT DATED JUNE 18, 2010

 Exhibit 10.4 

 

 

 P.O. Box 4000, Route 206 & Province Line Road, Princeton, NJ 08543-4000 

June 18, 2010 
 Pamela A. Simonton

 Executive Vice President and General Counsel 

Exelixis, Inc. 
 170 Harbor Way 

P.O. Box 511 
 South San Francisco, CA 94083-0511

  

	Re:	Additional Terms Re: Termination of Collaboration Agreement Re: XL184 

Dear Ms. Simonton: 

Reference is hereby made to that certain Collaboration Agreement (the “Agreement”) dated as of December 11,
2008, by and between Exelixis, Inc., a Delaware corporation having its principal place of business at 170 Harbor Way, P.O. Box 511, South San Francisco, California 94083-0511 (“Exelixis”), and Bristol-Myers Squibb Company, a
Delaware corporation headquartered at 345 Park Avenue, New York, NY 10154 (“BMS”). Capitalized terms used in this letter agreement (this “Letter”) that are not otherwise defined herein shall have the
meanings given to them in the Agreement. 
 This Letter is intended to set forth the Parties’ mutual understandings with
respect to the termination of the Agreement with respect to XL184, pursuant to that certain Letter, dated as of the date hereof, from BMS to Exelixis (the “Termination”). 

The Parties hereby agree to the following terms relating to the Termination: 

1. Effective Date of Termination. The Parties hereby agree that the Termination shall be deemed to be effective as of
June 18, 2010 (the “Termination Date”). 
 2. Cost-Sharing and Payment. BMS will be responsible for
its share of Development Costs relating to XL184 that were incurred prior to the Termination Date in accordance with the terms of the Agreement. BMS shall pay to Exelixis, no later than July 1, 2010 the amount of Seventeen Million U.S. Dollars
($17,000,000). Exelixis will be responsible for one hundred percent (100%) of Development Costs relating to XL184 that are incurred beginning July 1, 2010. There will be no additional payments or reimbursement by either Party relating to
Development Costs for XL184 during the period beginning on (and subsequent to) the Termination Date. 
  

 1 

 3. No Press Release by BMS. BMS shall not make a press release relating to the
Termination; provided, that BMS may respond to media or investor inquiries relating to the Termination, and may otherwise disclose any material information relating to the Termination pursuant to the proviso set forth in Section 10.5 of
the Agreement. 
 If you are in agreement with the terms and conditions of this Letter, please execute and return the enclosed
duplicate copy of this Letter. 
  

			
	Sincerely,
	
	BRISTOL-MYERS SQUIBB COMPANY
		
	By:	 	/s/ Jeremy Levin
	Title:	 	SVP

  

			
	ACKNOWLEDGED AND AGREED
	as of June 20, 2010
	
	EXELIXIS, INC.
		
	By:	 	/s/ Pamela A. Simonton
	Title:	 	EVP & General Counsel
		 	Pamela A. Simonton

  

 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]