Document:

Amendment to Loan and Security Agreement

 Exhibit 10.26 
  
 Silicon Valley Bank 
  
 Amendment to Loan and Security Agreement 
  
 Borrower: Salmedix, Inc. 
  
 Dated as of: August 24, 2004 
  
 THIS AMENDMENT TO LOAN AGREEMENT is entered into between SILICON VALLEY BANK (“Bank”) and the borrower named above (the
“Borrower”). The Parties agree to amend the Loan and Security Agreement between them, dated June 23, 2003, as amended or otherwise modified from time to time (the “Loan Agreement”), as follows, effective as of the date hereof.
(Capitalized terms used but not defined in this Amendment, shall have the meanings set forth in the Loan Agreement.) 
  
 1. New Definitions. Section 13 of the Loan Agreement is hereby amended by adding thereto the following definitions in their appropriate
alphabetical order: 
  
 “Additional Committed Equipment
Line” shall mean is a Credit Extension of up to One Million Dollars ($1,000,000). 
  
 “Additional Commitment Termination Date” shall mean December 31, 2005. 
  
 “Additional Equipment Advance” shall have the meaning ascribed to such term in Section 2.1.2 hereof. 
  
 “Treasury Note Maturity” shall mean 36 months. 
  
 2. Revised Definitions.  
  
 (a) Section 6.8 of the Loan Agreement is hereby amended by replacing the
definition of “Equity Round” with the following definition: 
  
 “Equity Round” shall mean, after the date hereof and while any payment Obligations relating to the Advances remain outstanding, any equity financing transactions of Borrower excluding any sale of capital stock to the public
pursuant to a registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended until such date as Borrower first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of
the Securities Exchange Act of 1934, as amended. 

			
	Silicon Valley Bank	 	Amendment to Loan Agreement

  

 (b) Section 13 of the Loan Agreement is hereby amended by replacing the definitions of
“Advance” or “Advances”, “Basic Rate”, “Loan Amount”, “Loan Factor”, “Maturity Date”, “Obligations” and “Original Stated Cost” with the following respective definitions:

  
 “Advance” or “Advances” are Equipment
Advance, Equipment Advances, Additional Equipment Advance, or Additional Equipment Advances, as applicable. 
  
 “Basic Rate” is, as of the Funding Date, the per annum rate of interest (based on a year of 360 days) equal to the sum of (a) the U.S. Treasury
note yield to maturity for a term equal to the Treasury Note Maturity as quoted in The Wall Street Journal on the day the Loan Supplement is prepared, plus (b) the Loan Margin, provided that the Basic Rate with respect to Equipment Advances
shall under no circumstances be deemed less than a rate equal to 7.68% per annum and the Basic Rate with respect to Additional Equipment Advances shall under no circumstances be deemed less than a rate equal to 7.64% per annum. 
  
 “Loan Amount” is the aggregate original amount of each Equipment
Advance or Additional Equipment Advance, as applicable.  
  
 “Loan Factor” is the percentage which results from amortizing the Equipment Advance and the Additional Equipment Advance, as applicable, over the applicable Repayment Period, using the Basic Rate as the interest rate in connection
therewith. 
  
 “Loan Margin” is 450 basis
points with respect to Additional Equipment Advances and 550 basis points with respect to Equipment Advances. 
  
 “Maturity Date” means for each Equipment Advance or Additional Equipment Advance, as applicable, the last of the applicable Repayment Period
relating thereto, or, if earlier, the date of acceleration of such Advance by Bank following an Event of Default. 
  
 “Obligations” are debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, including Equipment Advances,
Additional Equipment Advances, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank. 
  
 “Original Stated Cost” is (i) the original cost to the Borrower of the item of new Equipment net of any and all
freight, installation, tax or (ii) the fair market value assigned to such item of used Equipment by mutual agreement of Borrower and Bank at the time of making of the Equipment Advance or the Additional Equipment Advance, as applicable. 

  
 3. New Section 2.1.2 Section 2.1.2 of the Loan
Agreement is hereby added to the Loan Agreement that will follow immediately after section 2.1.1 thereof and shall read as follows: 
  
 “2.1.2 Equipment Advances. 
  

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	Silicon Valley Bank	 	Amendment to Loan Agreement

  

 (a) Subject to the terms and conditions of this Agreement, Bank agrees to lend to Borrower, from time
to time prior to the Additional Commitment Termination Date, equipment advances (each an “Additional Equipment Advance” and collectively the “Additional Equipment Advances”) in an aggregate amount not to exceed the Additional
Committed Equipment Line. When repaid, the Additional Equipment Advances may not be re-borrowed. The proceeds of the Additional Equipment Advances will be used solely to reimburse Borrower for the purchase of Eligible Equipment purchased on and 90
days prior to the making of an Additional Equipment Advance. 
  
 (b) To obtain an Additional Equipment Advance, Borrower will deliver to Bank a completed supplement in substantially the form attached as Exhibit C (the “Loan Supplement”), copies of invoices for the Financed Equipment, together
with a UCC Financing Statement covering the Equipment described on the Loan Supplement, and such additional information as Bank may request, all at least five (5) Business Days before the proposed funding date (the “Funding Date”). On each
Funding Date, Bank will specify in the Loan Supplement for each Equipment Advance, the Basic Rate, the Loan Factor, and the Payment Dates. If Borrower satisfies the conditions of each Additional Equipment Advance specified herein, Bank will disburse
such Additional Equipment Advance by internal transfer to Borrower’s deposit account with Bank. Each Additional Equipment Advance may not exceed 100% of the Original Stated Cost of the proposed Financed Equipment and limitations as to the
composition of Other Equipment for Additional Equipment Advances are as set forth in the definition of Eligible Equipment and Other Equipment herein. 
  
 (c) Bank’s obligation to lend the undisbursed portion of the Additional Committed Equipment Line will terminate if, in Bank’s sole discretion,
there has been a material adverse change in the general affairs, management, results of operation, condition (financial or otherwise) or the prospects of Borrower, whether or not arising from transactions in the ordinary course of business, or there
has been any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Bank prior to the execution of this Agreement.” 
  
 4. Use of Defined Term. When referred to in Sections 2.2, 3.2 and 6.7 of the Loan Agreement and in connection the
Loan Supplement, the term “Equipment Advance” shall henceforth mean and refer to Equipment Advance or Additional Equipment Advance, as applicable. 
  
 5. Condition to Effectiveness. The effectiveness of this Amendment is conditioned upon the occurrence of all of the following: 
  
 (a) A certificate of the Secretary or the Assistant Secretary of Borrower, in
form and substance satisfactory to Bank, certifying the adoption of resolutions of the Board of Directors of Borrower approving this Agreement and the transactions contemplated hereby (including the documents, instruments and agreements described in
this Section) is delivered to Bank, in form acceptable to Bank. 
  

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	Silicon Valley Bank	 	Amendment to Loan Agreement

  

 (b) A new ten year Warrant to Purchase Stock is issued to the Bank regarding 18,617 shares of Common
Stock of the Borrower at an initial exercise price of $1.05 per share together with other rights and provisions as are acceptable to Bank. 
  
 (c) Borrower’s payment of a $5,000 fee to Bank and payment of all Bank Expenses relating hereto; 
  
 (d) Counterparts of this Agreement have been duly executed and delivered to
the Administrative Agent by all parties thereto. 
  
 6.
Representations True. Borrower represents and warrants to Bank that all representations and warranties set forth in the Loan Agreement, as amended hereby, are true and correct. 
  
 7. General Provisions. This Amendment, the Loan Agreement, any prior written amendments to the Loan Agreement signed
by Bank and the Borrower, and the other written documents and agreements between Bank and the Borrower set forth in full all of the representations and agreements of the parties with respect to the subject matter hereof and supersede all prior
discussions, representations, agreements and understandings between the parties with respect to the subject hereof. Except as herein expressly amended, all of the terms and provisions of the Loan Agreement, and all other documents and agreements
between Bank and the Borrower shall continue in full force and effect and the same are hereby ratified and confirmed. This Agreement and Consent may be executed in any number of counterparts, which when taken together shall constitute one and the
same agreement. 
  
 IN WITNESS WHEREOF, the parties hereto have
executed this Amendment as of the date first above written. 
  

									
	Borrower:	 	 	 	Silicon:
			
	Salmedix, Inc.	 	 	 	Silicon Valley Bank
					
	By	 	 /s/    ANITA I. BUSQUETS
	 	 	 	By	 	 /S/    ROBERT C.
LAKE

	Title	 	 Chief Financial and Administrative Officer
	 	 	 	Title	 	 Vice President

	 	 	 	 	 	 	 	 	 

  

 4General Release of All Claims

 EXHIBIT 10.27 
  
 GENERAL RELEASE OF ALL CLAIMS 
  

In consideration of the severance payments and severance benefits described in Paragraph 1 below, offered to me by Salmedix, Inc. (the
“Company”), in connection with the termination of my employment at Salmedix, Inc. (the “Company”) on August 6, 2004, I agree to the following release (the “Release”). 
  
 1. Subject to my execution of this Release within the time period described
in Paragraph 13 below, and upon the expiration of the revocation period described in Paragraph 14 (without my having given notice of revocation), the Company will provide me with the following severance payments and severance benefits (the
“Severance Benefits”): 
  
 a. Payment
in a lump sum of an amount equivalent to six (6) months of my base salary (or $ 160,000), subject to applicable deductions and withholdings; 
  
 b. Continuation of my current Aetna medical, MetLife dental, and VSP vision benefits through company paid COBRA through February 28, 2005
or until I obtain comparable employer-provided benefits, whichever occurs first; 
  
 c. Executive outplacement services through a provider selected by the Company for a period of up to six (6) months; and 
  
 d. Reimbursement of up to fifty percent (50%) of my
documented legal expenses for review and negotiation of this Release, up to a maximum payment by the Company not to exceed $1,500. 
  
 2. On behalf of myself, my heirs, executors, administrators, successors and assigns, I hereby fully and forever release and discharge the Company, its
current, former and future parents, subsidiaries, related entities, employee benefit plans and their fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and assigns (collectively, the “Company”) from
any and all claims, causes of action and liabilities arising out of or relating in any way to my employment with the Company, including, but not limited to, the offer and termination of my employment. 
  
 3. I understand and agree that this Release is a full and complete waiver and
release of all claims, including, but not limited to, claims of wrongful discharge, breach of contract, breach of the covenant of good faith and fair dealing, violation of public policy, defamation, personal injury, emotional distress, claims under
Title VII of the 1964 Civil Rights Act, as amended, the Civil Rights Act of 1866, the California Fair Employment and Housing Act, the Equal Pay Act of 1963, as amended, the provisions of the California Labor Code, the Age Discrimination in
Employment Act of 1967, as amended, the Americans with Disabilities Act, the Fair Labor Standards Act, the Family Medical Leave Act, the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) and any other state, federal or
local laws and regulations relating to employment or employment discrimination. The only exceptions are claims I may have for unemployment compensation and worker’s compensation. I do not presently believe I have suffered any work-related
injury or illness. 
  

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 4. I understand and agree that I would not be entitled to receive the Severance Benefits but for my
execution of this Release. I further understand that I have received or will receive, regardless of the execution of this Release, all wages owed to me, less withholdings, in my paycheck earned through my termination date. I acknowledge that no
accrued but unused vacation pay is due. 
  
 5. I acknowledge that
I may discover facts different from or in addition to those which I now know or believe to be true and that this Release shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery thereof. I
hereby expressly waive any and all rights and benefits conferred upon me by the provisions of Section 1542 of the Civil Code of the State of California, and/or any analogous law of any other state. Section 1542 states: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE EMPLOYEE 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 COMPANY. 
  
 I expressly agree and understand that the release given by me pursuant to this Release applies to all unknown, unsuspected
and unanticipated claims, liabilities and causes of action which I may have against the Company. 
  
 6. As part of my existing and continuing obligation to the Company, I have returned, or within seven days of my termination, will return to the Company
all Company documents, information and property, including files, records, computer access codes and instruction manuals, as well as any Company assets or equipment that I have in my possession or under my control. I further agree not to keep any
copies of Company documents or information. I affirm my obligation to keep all Company Information confidential and not to disclose it to any third party in the future. I understand that the term “Company Information” includes, but is not
limited to, the following: 
  
 (a) Confidential
information, including information received from third parties under confidential conditions; and 
  
 (b) Other technical, scientific, marketing, business, product development or financial information, the use or disclosure of which might
reasonably be determined to be contrary to the interests of the Company. 
  
 The
Company’s PROPRIETARY INFORMATION and INVENTIONS AGREEMENT is incorporated herein by this reference, and I agree to continue to abide by its terms following the termination of my employment. Nothing herein shall release me from any
claims by the Company against me for violation of the incorporated Proprietary Information and Inventions Agreement. 
  
 7. I represent and warrant that I am the sole owner of all claims relating to my employment with the Company and that I have not assigned or transferred
any claims relating to my employment to any other person or entity. 
  

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 8. I agree to keep this Release confidential and not to reveal its contents to anyone except my lawyer,
my spouse and/or my financial consultant. 
  
 9. I understand and
agree that this Release shall not be deemed or construed at any time as an admission of liability or wrongdoing by either myself or the Company. 
  
 10. This Release (including the incorporated Proprietary Information and Invention Agreement) contains the entire agreement between the Company and me
with respect to any matters referred to in the Release and supersedes any previous oral or written agreements. 
  
 11. If any one or more of the provisions contained in this Release is, for any reason, held to be unenforceable, that holding will not affect any other
provision of this Release, and this Release shall then be construed as if such unenforceable provision or provisions had never been contained therein. 
  
 12. I acknowledge that I have obtained sufficient information to intelligently exercise my own judgment regarding the terms of the Release before
executing this Release. I understand that I may discuss this Release with an attorney of my choosing before signing this Release, and I hereby acknowledge that I have been encouraged to do so in writing. 
  
 13. I acknowledge that this Release was presented to me on August 6, 2004 and
that I am entitled to have twenty-one (21) days’ time in which to consider it. I further acknowledge that the Company has advised me that I may obtain advice concerning this Release from an attorney of my choice and that I have had sufficient
time to consider the terms of this Release. I represent and acknowledge that if I execute this Release before twenty-one (21) days have elapsed, I do so voluntarily, upon the advice and with the approval of my legal counsel (if any), and that I
voluntarily waive any remaining consideration period. 
  
 14.
I understand that after executing this Release, I have the right to revoke it within seven (7) days after my execution of this Release. I understand that this Release will not become enforceable unless the seven (7) day revocation period passes
and I do not revoke the Release in writing. I understand that this Release may not be revoked after the seven (7) day revocation period has passed. I also understand that any revocation of this Release must be made in writing and delivered to the
Company at 9380 Judicial Drive, San Diego, CA 92121 within the seven (7) day period. 
  
 15. I understand that this Release shall become binding upon the parties on the eighth (8th) day after my execution of this Release, so long as I have not revoked it within the time period and in the manner
specified in Paragraph 14 above. I further understand that I will not be given the Severance Benefits until the revocation period has passed. 
  
 16. With the exception of any claims arising out of a violation of Paragraph 6 hereof, the Company waives and releases all claims against F. Andrew Dorr
arising out of Dr. Dorr’s employment with the Company. The Company hereby expressly waives any and all rights conferred upon it by the provision of Section 1542 of the Civil Code of the State of California, and/or any analogous law of any other
state. 
  
 17. The Company and I mutually agree to communicate
positively with third parties regarding each other, and not to disparage or communicate derogatory statements or opinions about each 
  

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 other in any manner, except that the parties may testify truthfully if required to do so under oath pursuant to
applicable law. 
  
 EMPLOYEE’S ACCEPTANCE OF RELEASE

  
 BEFORE SIGNING MY NAME TO THIS RELEASE, I STATE THAT: I HAVE READ IT; I
UNDERSTAND IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS; I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT; I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING IT; AND I HAVE SIGNED IT
KNOWINGLY AND VOLUNTARILY. 
  

	
	 Date delivered to employee: August 6, 2004
  
 Executed this 23rd day of August,
2004

	
	/s/ F. Andrew Dorr, M.D.
	 Signature
  
 F. Andrew Dorr, M. D. 

  

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