Document:

Exhibit 10.4(d)

 

LOAN AND SECURITY MODIFICATION AGREEMENT

 

This Loan and Security Modification Agreement is entered into as of July 29, 2009, by and between Singulex, Inc. (the “Borrower”) and Bridge Bank, National Association (“Lender”).

 

1.                                       DESCRIPTION OF EXISTING INDEBTEDNESS:  Among other indebtedness which may be owing by Borrower to Lender, Borrower is indebted to Lender pursuant to, among other documents, an Amended and Restated Loan and Security Agreement, dated May 15, 2007 by and between Borrower to Lender, as may be amended from time to time (the “Loan and Security Agreement”). Capitalized terms used without definition herein shall have the meanings assigned to them in the Loan and Security Agreement.

 

Hereinafter, all indebtedness owing by Borrower to Lender shall be referred to as the “Indebtedness” and the Loan and Security Agreement and any and all other documents executed by Borrower in favor of Lender shall be referred to as the “Existing Documents.”

 

2.                                       DESCRIPTION OF CHANGE IN  TERMS.

 

A.                                   Modification(s) to Loan and Security Agreement:

 

1)                                      Effective August 11, 2008, the following defined term in Section 1.1 entitled “Definitions” is hereby added, amended, or restated as follows:

 

“Asset Coverage Ratio” means all unrestricted cash and cash equivalents in which Bank has a first priority security interest (including those which are otherwise deemed to be Permitted Investments), plus the amount available as of the date of measurement to be advanced under the Revolving Line, divided by all Obligations owed to Bank (excluding cash secured Obligations).

 

“Prime Rate” means the variable rate of interest, per annum, most recently announced by Bank as its “prime rate,” whether or not such announced rate is the lowest rate available from Bank.

 

“Revolving Maturity Date” means May 26, 2010.

 

2)                                      The following subsection in Section 6.3 entitled “Financial  Statements, Reports, Certificates is hereby amended as follows:

 

(a) as soon as available, but in any event within thirty (30) days after the end of each calendar month, a company prepared consolidated balance sheet, income, and cash flow statement covering Borrower’s consolidated operations during such period, prepared in accordance with GAAP, consistently applied, in a form acceptable to Bank and certified by a Responsible Officer, together with a deferred revenue schedule in a form acceptable to Bank;

 

3)                                      The second paragraph in Section 6.3 entitled “Financial Statements, Reports, Certificates is hereby amended as follows:

 

At any time that an Advance is outstanding, within twenty (20) days after the last day of each month, Borrower shall deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer in substantially the form of Exhibit C hereto, together with aged listings of accounts receivable and accounts payable.

 

1

 

4)                                      The fourth paragraph in Section 6.3 entitled “Financial Statements, Reports, Certificates is hereby amended as follows:

 

Bank shall have a right from time to time hereafter to audit Borrower’s Accounts and appraise Collateral at Borrower’s expense, provided that such audits will be conducted no more often than every twelve (12) months unless an Event of Default has occurred and is continuing, and the obligation of Bank to make any additional Credit Extensions under the Revolving Line is subject to Bank’s receipt of a satisfactory audit of Borrower’s Accounts and the Collateral.

 

5)                                      Section 6.7 is hereby amended as follows:

 

6.7                               Accounts.  Borrower shall maintain and shall cause each of its Subsidiaries to maintain all of its depository, operating, and investment accounts with Bank, provided however Borrower may maintain investment accounts outside of Bank so long as the investment account holders enter into an Account Control Agreement with Bank. Such Account Control Agreement must be in a form and substance acceptable to Bank, and must be executed prior to any additional Credit Extensions under the Revolving Line.

 

6)                                      Section 6.8 is hereby amended in its entirety to read as follows:

 

6.8                               Asset Coverage Ratio.  Borrower shall maintain at all times an Asset Coverage Ratio of at least 1.50 to 1.00, to be measured on a monthly basis.

 

7)                                      The obligation of Bank to make additional Credit Extensions under the Revolving Line after the date hereof is subject to the condition precedent that Bank shall have received the following, in a form and substance satisfactory to Bank, (i) a satisfactory audit of Borrower’s Accounts and the Collateral, and (ii) any Account Control Agreements as required in Section 6.7, as amended hereof.

 

3.                                       CONSISTENT CHANGES.  The Existing Documents are each hereby amended wherever necessary to reflect the changes described above.

 

4.                                       PAYMENT OF FACILITY FEE AND RENEWAL DUE DILIGENCE FEE.  Borrower shall pay Lender a fee in the amount of $2,500 (“Facility Fee”) and a fee in the amount of $50 (“Renewal Due Diligence Fee”) plus all out-of-pocket expenses in connection with the amendment and renewal of the facility.

 

5.                                       NO DEFENSES OF BORROWER/GENERAL RELEASE.  Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under the Indebtedness. Each of Borrower and Guarantor (each, a “Releasing Party”) acknowledges that Lender would not enter into this Loan and Security Modification Agreement without Releasing Party’s assurance that it has no claims against Lender or any of Lender’s officers, directors, employees or agents. Except for the obligations arising hereafter under this Loan and Security Modification Agreement, each Releasing Party releases Lender, and each of Lender’s and entity’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Lender of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the Agreement or the transactions contemplated thereby. Releasing Party waives the provisions of California Civil Code section 1542, which states:

 

“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.”

 

2

 

The provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors in interest. The provisions, waivers and releases of this section shall inure to the benefit of Lender and its agents, employees, officers, directors, assigns and successors in interest. The provisions of this section shall survive payment in full of the Obligations, full performance of all the terms of this Loan and Security Modification Agreement and the Agreement, and/or Lender’s actions to exercise any remedy available under the Agreement or otherwise.

 

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

 

7.                                       CONDITIONS.  The effectiveness of this Loan and Security Modification Agreement is conditioned upon payment of the Facility Fee and the Renewal Due Diligence Fee.

 

8.                                       COUNTERSIGNATURE.  This Loan and Security Modification Agreement shall become effective only when executed by Lender and Borrower.

 

 

	
BORROWER:
    	
LENDER:
    
	
 
    	
 
    
	
SINGULEX, INC.
    	
BRIDGE BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
By:
    	
/s/ Philippe Goix
    	
 
    	
By:
    	
/s/ Michael Lederman
    
	
Name:
    	
Philippe Goix
    	
 
    	
Name:
    	
Michael Lederman
    
	
Title: 
    	
President & CEO
    	
 
    	
Title:
    	
SVP
    

 

3Exhibit 10.4(e)

 

AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This Amendment to Amended and Restated Loan and Security Agreement (this “Amendment”)  is entered into as of November 30, 2009, by and between BRIDGE BANK, NATIONAL ASSOCIATION (“Bank”)  and SINGULEX, INC. (“Borrower”).

 

RECITALS

 

Borrower and Bank are parties to that certain Amended and Restated Loan and Security Agreement dated as of May 15, 2007, as amended from time to time, including that certain Loan and Security Modification Agreement dated as of March 18, 2008, that certain Loan and Security Modification Agreement dated as of May 13, 2008, and that certain Consent dated June 26, 2008 by and between Bank and UBS Financial Services Inc., that certain Loan and Security Modification Agreement dated as of July 29, 2009 (collectively, the “Agreement”).  The parties desire to amend the Agreement in accordance with the terms of this Amendment.

 

NOW, THEREFORE, the parties agree as follows:

 

1.                                      The following defined terms in Section 1.1 of the Agreement are hereby added or amended in their entirety to read as follows:

 

“Asset Coverage Ratio” means all Cash plus Eligible Accounts, divided by all Obligations owed to Bank.

 

                                                “Cash” means (i) all unrestricted cash and cash equivalents maintained at Bank, plus (ii) all unrestricted cash and cash equivalents not maintained at Bank in which Bank has a first priority security interest and is subject to an account control agreement that will only enable Borrower to withdraw funds from such account to be deposited in Borrower’s accounts maintained at Bank.

 

                                                “Eligible Foreign Accounts” means Accounts with respect to which the account debtor does not have its principal place of business in the United States or Canada and that (i) are supported by one or more letters of credit in an amount and of a tenor, and issued by a financial institution, acceptable to Bank, or (ii) that Bank approves on a case-by-case basis.

 

2.                                      Section 2.1(b) is amended and restated in its entirety to read as follows:

 

(b)                                 Growth Capital Advances.

 

(i)                                     Subject to and upon the terms and conditions of this Agreement, Bank agrees to make two Growth Capital Advances to Borrower in an aggregate amount not to exceed $1,500,000.  The initial Growth Capital Advance request shall be made by Borrower on November 30, 2009, in an amount not less than $1,000,000.  The second Growth Capital Advance shall be made upon Borrower’s request at any time prior to February 28, 2010, subject to and upon the terms and conditions of this Agreement.

 

(ii)                                  Interest shall accrue from the date of each Growth Capital Advance at the rate specified in Section 2.3, and shall be payable monthly on the tenth day of each month so long as any Growth Capital Advances are outstanding. Any Growth Capital Advances that are outstanding on February 28, 2010 shall be payable in 33 equal monthly installments of principal, plus all accrued interest, beginning on March 10, 2010, and continuing on the same day of each month thereafter until the Growth Capital Advances have been repaid in full. Growth Capital Advances, once repaid, may not be reborrowed.  Borrower may prepay any Growth Capital Advances without penalty or premium.

 

1

 

(iii)                               When Borrower desires to obtain a Growth Capital Advance, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission to be received no later than 3:00 p.m. Pacific time three (3) Business Days before the day on which the Growth Capital Advance is to be made.  Such notice shall be substantially in the form of Exhibit B.

 

3.                                      Section 2.3(a)(ii) is amended in its entirety to read as follows:

 

(ii)                                  Growth Capital Advances.  Except as set forth in Section 2.3(b), the Growth Capital Advances shall bear interest, on the outstanding Daily Balance thereof, at a floating rate equal to 2.25% above the Prime Rate, provided however that at no time shall the rate be less than 5.50%

 

4.                                      The second paragraph in Section 6.3 is amended in its entirety to read as follows:

 

Within 30 days after the last day of each month, Borrower shall deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer in substantially the form of Exhibit C hereto, together with aged listings of accounts receivable and accounts payable.

 

5.                                      Section 6.7 of the Agreement is amended in its entirety to read as follows:

 

6.7                                 Accounts.  Borrower shall maintain and shall cause each of its Subsidiaries to maintain its primary non-interest bearing operating account with Bank, and the cash balance of such account shall not be less than $1,500,000 on an average monthly basis.  Any accounts maintained outside of Bank shall be subject to an account control agreement in form and substance satisfactory to Bank.  Borrower shall provide Bank five (5) days prior written notice before establishing any account at or with any bank or financial institution other than Bank.

 

6.                                      Section 6.8 of the Agreement is amended in its entirety to read as follows:

 

6.8                                 Asset Coverage Ratio.  Borrower shall maintain at all times an Asset Coverage Ratio of at least 1.75 to 1.00, to be measured on a monthly basis.

 

7.                                      The following is hereby added as Section 6.11 of the Agreement as follows:

 

6.11                           Performance to Plan.  For quarter ending December 31, 2009, Borrower’s revenue and net loss after tax shall not negatively deviate more than 20% from the following projected amounts: revenue of $1,027,915, and a net loss of ($3,110,020).  Beginning with quarter ending March 31, 2010 and for each quarter thereafter, Borrower’s revenue and net profit/loss after tax shall not negatively deviate more than 20% from the operating projections for 2010 and beyond as approved by Borrower’s Board of Directors and delivered to Bank in accordance with Section 6.3(e).

 

8.                                      Exhibits B and D to the Agreement are replaced in their entirety with the Exhibits B and D attached hereto.

 

9.                                      As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

a.                                       this Amendment, duly executed by Borrower;

 

b.                                       corporate resolutions and incumbency certification;

 

c.                                       Borrower’s completed Growth Capital Advance notice pursuant to Section 2.1(b)(iii), requesting the initial Growth Capital Advance in an amount of at least $1,000,000.

 

2

 

d.                                       a nonrefundable facility fee equal to $15,000 and payment of Bank Expenses incurred in connection with this Amendment; and

 

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

 

10.                               Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement.  The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.  Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in connection with the Agreement.

 

11.                               Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing.

 

12.                               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.

 

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

 

	
 
    	
SINGULEX, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Philippe Goix
    
	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
Philippe Goix, CEO, Singulex, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BRIDGE BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Michael Lederman
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
SVP
    

 

3

 

EXHIBIT B

 

GROWTH CAPITAL ADVANCE OR ADVANCE REQUEST FORM

 

	
To:
    	
Bridge Bank, National Association
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
(408) 282-1681
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
From: 
    	
Singulex, Inc.
    	
 
    
	
 
    	
Borrower’s Name
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Authorized Signature
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Authorized Signer’s Name (please print)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Phone Number 
    	
 
    
	
 
    	
 
    	
 
    
	
To Account #
    	
 
    	
 
    
				

 

Borrower hereby requests funding in the amount of $          in accordance with the Growth Capital Advance as defined in the Amended and Restated Loan and Security Agreement dated May 15, 2007, as amended from time to time (the “Agreement”).

 

Borrower hereby requests funding in the amount of $          in accordance with the Advance as defined in the Agreement.

 

Borrower hereby authorizes Bank to rely on facsimile stamp signatures and treat them as authorized by Borrower for the purpose of requesting the above advance.

 

All representations and warranties of Borrower stated in the Agreement (inclusive of the schedules and exhibits thereto) are true, correct and complete in all material respects as of the date of this request; provided that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date.

 

Capitalized terms used herein and not otherwise defined have the meanings set forth in the Agreement.

 

1

 

EXHIBIT D
 COMPLIANCE CERTIFICATE

 

TO:                            BRIDGE BANK, NATIONAL ASSOCIATION

 

FROM:         SINGULEX, INC.

 

The undersigned authorized officer of Singulex, Inc. hereby certifies that in accordance with the terms and conditions of the Amended and Restated Loan and Security Agreement dated May 15, 2007 between Borrower and Bank, as amended from time to time (the “Agreement”), (i) Borrower is in complete compliance for the period ending                  with all required covenants except as noted below and (ii) all representations and warranties of Borrower stated in the Agreement are true and correct as of the date hereof.  Attached herewith are the required documents supporting the above certification.  The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes.

 

Please indicate compliance status by circling Yes/No under “Complies” column.

 

	
Reporting Covenants
    	
 
    	
Required
    	
 
    	
Complies
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Monthly financial statements &Deferred Revenue Schedule
    	
 
    	
Monthly within 30 days
    	
 
    	
Yes
    	
 
    	
No
    
	
Annual (CPA Audited)
    	
 
    	
FYE within 180 days
    	
 
    	
Yes
    	
 
    	
No
    
	
10K and 10Q
    	
 
    	
(as applicable)
    	
 
    	
Yes
    	
 
    	
No
    
	
A/R & A/P Agings,   Borrowing Base Certificate
    	
 
    	
Monthly within 30 days
    	
 
    	
Yes
    	
 
    	
No
    
	
A/R Audit
    	
 
    	
Initial and Annual
    	
 
    	
Yes
    	
 
    	
No
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Operating Account balance   with Bank
    	
 
    	
at least $1,500,000
    	
 
    	
Yes
    	
 
    	
No
    

 

	
Financial Covenants
    	
 
    	
Required
    	
 
    	
Actual
    	
 
    	
Complies
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Asset Coverage Ratio (monthly) Performance to Plan (Dec 31, 2009):
    	
 
    	
1.75:1.00
    	
 
    	
:1.00
    	
 
    	
Yes
    	
 
    	
No
    
	
Revenue
    	
 
    	
negative deviation not   more than 20% from $1,027,915
    	
 
    	
%
    	
 
    	
Yes
    	
 
    	
No
    
	
Net Loss
    	
 
    	
negative deviation not   more than 20% from ($3,110,020)
    	
 
    	
%
    	
 
    	
Yes
    	
 
    	
No
    
	
Performance to Plan   (quarterly beginning Q1, 2010):
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Revenue
    	
 
    	
negative deviation not   more than 20% from Plan
    	
 
    	
%
    	
 
    	
Yes
    	
 
    	
No
    
	
Net Profit/Loss
    	
 
    	
negative deviation not   more than 20% from Plan
    	
 
    	
%
    	
 
    	
Yes
    	
 
    	
No
    

 

Comments Regarding Exceptions: See Attached.

 

	
 
    	
BANK USE ONLY
    	
 
    
	
 
    	
 
    	
 
    
	
Sincerely,
    	
 
    	
Received by:
    	
 
    
	
 
    	
 
    	
 
    	
AUTHORIZED SIGNER
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Verified:
    	
 
    
	
SIGNATURE
    	
 
    	
 
    	
AUTHORIZED SIGNER
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
TITLE
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Compliance Status
    	
 
    	
Yes
    	
No
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
DATE
    	
 
    	
 
    	
 
    	
 
    	
 
    
								

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]