Document:

Exhibit

Exhibit 10.7

SEVENTH AMENDMENT TO THE LOAN AND SECURITY AGREEMENT 
THIS SEVENTH AMENDMENT TO THE LOAN AND SECURITY AGREEMENT (this “Amendment”) is made effective as of April 9, 2019 (the “Seventh Amendment Date”) by and among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (in its individual capacity, “Oxford”; and in its capacity as Collateral Agent, “Collateral Agent”), the Lenders listed on Schedule 1.1 of the Loan Agreement (as defined below) from time to time including Oxford in its capacity as a Lender (each a “Lender” and collectively, the “Lenders”) and REGULUS THERAPEUTICS INC., a Delaware corporation with offices located at 10614 Science Center Dr., San Diego, California 92121 (“Borrower”).
WHEREAS, Collateral Agent, Borrower and Lenders party thereto from time to time have entered into that certain Loan and Security Agreement, dated as of June 17, 2016 (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”), pursuant to which Lenders have provided to Borrower certain loans in accordance with the terms and conditions thereof; and
WHEREAS, Borrower, Lenders and Collateral Agent desire to amend certain provisions of the Loan Agreement as provided herein and subject to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower, Lenders and Collateral Agent hereby agree as follows:
		
	1.
	Capitalized terms used herein but not otherwise defined shall have the respective meanings given to them in the Loan Agreement.

		
	2.
	Section 2.2(b) of the Loan Agreement is hereby amended and restated in its entirety as follows:

		
	3.
	(b)    Repayment.  Borrower shall make monthly payments of interest only commencing on the first (1st) Payment Date following the Funding Date of each Term Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Amortization Date.  Borrower agrees to pay, on the Funding Date of each Term Loan, any initial partial monthly interest payment otherwise due for the period between the Funding Date of such Term Loan and the last day of the calendar month during which the Funding Date occurs.  Commencing on the Amortization Date, and continuing on the Payment Date of each month thereafter, Borrower shall make consecutive equal monthly payments of principal, together with applicable interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule with respect to the Term Loans as set forth on the Amortization Table (as amended from time to time) attached to the Disbursement Letter entered into as of the Effective Date.  Notwithstanding the foregoing, Borrower shall make monthly payments of interest only commencing on August 1, 2018, and continuing on the Payment Date of each successive two (2) months thereafter through and including the October 1, 2018.  Thereafter, Borrower will resume making consecutive equal monthly payments of principal, together with applicable interest, in arrears, to each Lender in accordance with this Section 2.2(b).  Furthermore, notwithstanding the foregoing, Borrower shall make monthly payments of interest only on February 1, 2019 and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Second Amortization Date.  Commencing on the Second Amortization Date, and continuing on each successive Payment Date thereafter, Borrower shall make consecutive equal monthly payments of principal, together with applicable interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule with respect to the Term Loans as set forth on the Amortization Table (as amended from time to time) attached to the Disbursement Letter entered into as of the Effective Date; provided, however, Borrower shall make the monthly principal 

 

payment due April 1, 2019 on May 1, 2019 (in addition to all other payments due on May 1, 2019) if the Capital Event does not occur.   All unpaid principal and accrued and unpaid interest with respect to each Term Loan is due and payable in full on the Maturity Date.  Each Term Loan may only be prepaid in accordance with Sections 2.2(c) and 2.2(d).

		
	4.
	Section 2.2(d)(iii) of the Loan Agreement is hereby amended and restated as follows:

Furthermore, notwithstanding anything herein to the contrary commencing upon the execution of the License Amendment, Borrower shall (1) prepay part of Term Loans advanced by the Lenders under this Agreement with twenty five percent (25.00%) of the License Amendment Payments (described in clauses (i) and (iii) of the definition of License Amendment Payments) and Applicable Sanofi Percentage of the License Amendment Payments (described in clause (ii) of the definition of License Amendment Payments) received by Borrower (collectively, the “Sanofi License Prepayments”) within five (5) Business Days after receipt of such License Amendment Payment (or installment thereof), (2) pay the applicable Prepayment Fee with respect to such Sanofi License Prepayments (or installment thereof) and (3) pay the applicable Final Payment that relates to such Sanofi License Prepayments (or installment thereof).  “License Amendment Payments” shall mean all cash net proceeds received by Borrower pursuant to (i) Paragraph 6.1 of the License Amendment consisting of an upfront payment payable in two installments, (ii) Section 6.2 of the License Amendment consisting of a milestone payment in the amount of $10,000,000 payable upon achievement of the First Milestone Event (as defined in the License Amendment), and (iii) Section 5.5 of the License Amendment relating to the transfer of the Mir-21 Fibrosis POC Program-specific materials identified in Schedule 5.5 to the License Amendment.  For the purposes of clarity, any partial prepayment shall be applied pro-rata to all outstanding amounts under each Term Loan, and shall be applied pro-rata within each Term Loan tranche to reduce amortization payments under Section 2.2(b) on a pro-rata basis.

		
	5.
	Section 2.5 of the Loan Agreement is hereby amended by deleting the word “and” immediately following Section 2.5(h), replacing “.” at the end of Section 2.5(i) with “; and” and adding the following Section 2.5(j) thereto:

(j)    Seventh Amendment Fee.  A fully earned and non-refundable seventh amendment fee in the amount of Fifteen Thousand Dollars ($15,000), which shall become due and payable upon the earliest of: (i) the Maturity Date, (ii) the acceleration of any Term Loan, or (iii) the date on which the Term Loans are fully prepaid pursuant to Section 2.2(c) or (d).

		
	6.
	Section 13.1 of the Loan Agreement is hereby amended by adding the following definitions thereto in alphabetical order:

“Applicable Sanofi Percentage” is 25% unless Borrower irrevocably elects to make it 75% prior to the receipt by Borrower of the License Amendment Payments described in clause (ii) of the definition of the License Amendment Payments.

“Principal Paydown Event” means the prepayment by Borrower to the Lenders of an aggregate principal amount of at least Five Million Dollars ($5,000,000) (which amount shall not include any Sanofi License Payments) in accordance with Section 2.2(d) after the Seventh Amendment Date and on or before April 30, 2019.

“Second Amortization Date” means (i) April 1, 2019, if the Capital Event does not occur, and (ii) May 1, 2019, if the Capital Event occurs.

“Seventh Amendment Date” means April 9, 2019.

		
	7.
	Section 13.1 of the Loan Agreement is hereby further amended by amending and restating the following definitions therein as follows:

2
 

“Capital Event” means the receipt by Borrower on or after the Seventh Amendment Date and on or before April 30, 2019, of unrestricted gross cash proceeds of not less than Ten Million Dollars ($10,000,000.00) from (i) the issuance and sale by Borrower of its unsecured subordinated convertible debt and/or equity securities and/or (ii) “up front” or milestone payments in connection with a joint venture, collaboration or other partnering transaction other than pursuant to the Sanofi License Agreement.

“Minimum Cash Balance” is (i) Ten Million Dollars ($10,000,000.00) if the Applicable Sanofi Percentage is 25% and the Principal Paydown Event has not occurred, (ii) Five Million Dollars ($5,000,000.00) if the Applicable Sanofi Percentage is 75% and the Principal Paydown Event has not occurred and (iii) Zero Dollars ($0.00) if the Principal Paydown Event has occurred. 

		
	8.
	The Amortization Table attached to the Disbursement Letter dated as of the Effective Date is hereby amended and restated as set forth on the Amortization Table attached as Exhibit A hereto.

		
	9.
	Limitation of Amendment.

		
	a.
	The amendments set forth 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, remedy or obligation which Lenders or Borrower may now have or may have in the future under or in connection with any Loan Document, as amended hereby.

		
	b.
	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.

		
	10.
	To induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders as follows: 

		
	a.
	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;

		
	b.
	Borrower has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

		
	c.
	The organizational documents of Borrower delivered to Collateral Agent on the Effective Date, and updated pursuant to subsequent deliveries by the Borrower to the Collateral Agent, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

		
	d.
	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 (i) any law or regulation binding on or affecting Borrower, (ii) any contractual restriction with a Person binding on Borrower, (iii) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (iv) the organizational documents of Borrower; 

		
	e.
	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 

3
 

exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; 

		
	f.
	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; and

		
	g.
	The Borrower hereby remises, releases, acquits, satisfies and forever discharges the Lenders and Collateral Agent, their agents, employees, officers, directors, predecessors, attorneys and all others acting or purporting to act on behalf of or at the direction of the Lenders and Collateral Agent (“Releasees”), of and from any and all manner of actions, causes of action, suit, debts, accounts, covenants, contracts, controversies, agreements, variances, damages, judgments, claims and demands whatsoever, in law or in equity, which any of such parties ever had, now has or, to the extent arising from or in connection with any act, omission or state of facts taken or existing on or prior to the date hereof, may have after the date hereof against the Releasees, for, upon or by reason of any matter, cause or thing whatsoever relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof through the date hereof.  Without limiting the generality of the foregoing, the Borrower waives and affirmatively agrees not to allege or otherwise pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights they do, shall or may have as of the date hereof, including the rights to contest: (a) the right of Collateral Agent and each Lender to exercise its rights and remedies described in the Loan Documents; (b) any provision of this Amendment or the Loan Documents; or (c) any conduct of the Lenders or other Releasees relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof.

		
	11.
	Except as expressly set forth herein, the Loan Agreement shall continue in full force and effect without alteration or amendment.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.

		
	12.
	Borrower agrees to promptly pay (but in no event in less than 5 Business Days of invoice date) all unpaid Lenders’ Expenses incurred through the date hereof, which may be debited (or ACH’d) from any of Borrower’s accounts.

		
	13.
	This Amendment shall be deemed effective as of the Seventh Amendment Date upon the due execution and delivery to Collateral Agent of this Amendment by each party hereto.

		
	14.
	This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument.

		
	15.
	This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.

[Balance of Page Intentionally Left Blank – Signature Pages to Follow]

4
 

IN WITNESS WHEREOF, the parties hereto have caused this Seventh Amendment to Loan and Security Agreement to be executed as of the date first set forth above.
	
			
	BORROWER:
	 
	 

	 
	 
	 

	REGULUS THERAPEUTICS INC.
	 
	 

	 
	 
	 

	 
	 
	 

	By  /s/ Daniel Chevallard   
	 
	 

	Name: Daniel Chevallard
	 
	 

	Title:   Chief Financial Officer
	 
	 

	 
	 
	 

	 
	 
	 

	COLLATERAL AGENT AND LENDER:
	 
	 

	 
	 
	 

	OXFORD FINANCE LLC
	 
	 

	 
	 
	 

	 
	 
	 

	By  /s/ Colette H. Featherly   
	 
	 

	Name:  Colette H. Featherly   
	 
	 

	Title:  Senior Vice President   
	 
	 

 

EXHIBIT A

Amortization Table

Please see attached.

	
	
	Oxford Finance LLC

	Amortization Table

	Regulus Total

	
				
	Start Date:
	6/22/2016
	 
	Disclaimer:

	Interest Rate:     
	8.97885%
	 
	THIS IS A STANDARD AMORTIZATION

	      Term:
	47
	23 IO + 24 PI
	SCHEDULE. IT IS NOT INTENDED TO BE

	Payment:
	Varies
	 
	USED FOR PAYOFF PURPOSES.

	Final Payment:
	$1,041,496.77
	5.50%
	 

	3rd Amendment Fee:
	$25,000.00
	 
	 

	Fifth Amendment Fee:
	$25,000.00
	 
	 

	Sixth Amendment Fee:
	$17,000.00
	 
	 

	Amount:
	20,000,000.00
	 
	THIS AMORTIZATION SCHEDULE REPRESENTS A

	Interim Interest Days:
	9
	 
	FLOATING INTEREST RATE LOAN.  INTEREST RATE

	    Interim Interest:   
	$44,894.25
	 
	CHARGED MAY DIFFER FROM RATE PER THIS

	 
	 
	 
	SCHEDULE BASED ON THE TERMS OF THE

	 
	 
	 
	LOAN AGREEMENT

Regulus AA01 -- updated amort.xlsx $10M Not Raised                                    4/9/2019
    

	
																	
	PMT
	Payment
	Beginning
	Monthly
	 
	 
	Ending

	No.
	Date
	Balance
	Payment
	Interest
	Principal
	Balance

	 
	7/1/16
	 
	Interim Interest Due
	 
	

	$20,000,000.00
	

	1
	8/1/16
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	2
	9/1/16
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	3
	10/1/16
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	4
	11/1/16
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	5
	12/1/16
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	6
	1/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	7
	2/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	8
	3/1/17
	

	$20,000,000.00
	

	

	$139,671.00
	

	

	$139,671.00
	

	

	$0.00
	

	

	$20,000,000.00
	

	9
	4/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	10
	5/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	11
	6/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	12
	7/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	13
	8/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	14
	9/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	15
	10/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	16
	11/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	17
	12/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	18
	1/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	19
	2/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	20
	3/1/18
	

	$20,000,000.00
	

	

	$139,671.00
	

	

	$139,671.00
	

	

	$0.00
	

	

	$20,000,000.00
	

	21
	4/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	22
	5/1/18
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	23
	6/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	24
	7/1/18
	

	$20,000,000.00
	

	

	$982,980.83
	

	

	$149,647.50
	

	

	$833,333.33
	

	

	$19,166,666.67
	

	25
	8/1/18
	

	$19,166,666.67
	

	

	$148,192.59
	

	

	$148,192.59
	

	

	$0.00
	

	

	$19,166,666.67
	

	26
	9/1/18
	

	$19,166,666.67
	

	

	$148,192.59
	

	

	$148,192.59
	

	

	$0.00
	

	

	$19,166,666.67
	

	27
	10/1/18
	

	$19,166,666.67
	

	

	$143,412.19
	

	

	$143,412.19
	

	

	$0.00
	

	

	$19,166,666.67
	

	28
	11/1/18
	

	$19,166,666.67
	

	

	$1,106,525.93
	

	

	$148,192.59
	

	

	$958,333.33
	

	

	$18,208,333.33
	

	29
	12/1/18
	

	$18,208,333.33
	

	

	$1,686,680.17
	

	

	$136,241.58
	

	

	$1,550,438.60
	

	

	$16,657,894.74
	

	30
	1/1/19
	

	$16,657,894.74
	

	

	$1,054,233.90
	

	

	$128,795.30
	

	

	$925,438.60
	

	

	$15,732,456.14
	

	31
	2/1/19
	

	$15,732,456.14
	

	

	$121,640.01
	

	

	$121,640.01
	

	

	$0.00
	

	

	$15,732,456.14
	

	32
	3/1/19
	

	$15,732,456.14
	

	

	$109,868.39
	

	

	$109,868.39
	

	

	$0.00
	

	

	$15,732,456.14
	

	33
	4/1/19
	

	$15,732,456.14
	

	

	$560,335.01
	

	

	$121,640.01
	

	

	$438,695.00
	

	

	$15,293,761.14
	

	34
	5/1/19
	

	$15,293,761.14
	

	

	$2,153,601.81
	

	

	$114,433.66
	

	

	$2,039,168.16
	

	

	$13,254,592.98
	

	35
	6/1/19
	

	$13,254,592.98
	

	

	$1,122,065.77
	

	

	$102,481.70
	

	

	$1,019,584.08
	

	

	$12,235,008.91
	

	36
	7/1/19
	

	$12,235,008.91
	

	

	$1,111,131.00
	

	

	$91,546.92
	

	

	$1,019,584.08
	

	

	$11,215,424.83
	

	37
	8/1/19
	

	$11,215,424.83
	

	

	$1,106,299.36
	

	

	$86,715.28
	

	

	$1,019,584.08
	

	

	$10,195,840.76
	

	38
	9/1/19
	

	$10,195,840.76
	

	

	$1,098,416.15
	

	

	$78,832.07
	

	

	$1,019,584.08
	

	

	$9,176,256.68
	

	39
	10/1/19
	

	$9,176,256.68
	

	

	$1,088,244.27
	

	

	$68,660.19
	

	

	$1,019,584.08
	

	

	$8,156,672.60
	

	40
	11/1/19
	

	$8,156,672.60
	

	

	$1,082,649.74
	

	

	$63,065.66
	

	

	$1,019,584.08
	

	

	$7,137,088.53
	

	41
	12/1/19
	

	$7,137,088.53
	

	

	$1,072,986.45
	

	

	$53,402.37
	

	

	$1,019,584.08
	

	

	$6,117,504.45
	

	42
	1/1/20
	

	$6,117,504.45
	

	

	$1,066,883.32
	

	

	$47,299.24
	

	

	$1,019,584.08
	

	

	$5,097,920.38
	

	43
	2/1/20
	

	$5,097,920.38
	

	

	$1,059,000.11
	

	

	$39,416.04
	

	

	$1,019,584.08
	

	

	$4,078,336.30
	

	44
	3/1/20
	

	$4,078,336.30
	

	

	$1,049,082.53
	

	

	$29,498.45
	

	

	$1,019,584.08
	

	

	$3,058,752.22
	

	45
	4/1/20
	

	$3,058,752.22
	

	

	$1,043,233.70
	

	

	$23,649.62
	

	

	$1,019,584.08
	

	

	$2,039,168.15
	

	46
	5/1/20
	

	$2,039,168.15
	

	

	$1,034,841.90
	

	

	$15,257.82
	

	

	$1,019,584.08
	

	

	$1,019,584.07
	

	47
	6/1/20
	

	$1,019,584.07
	

	

	$1,027,467.28
	

	

	$7,883.21
	

	

	$1,019,584.08
	

	

	$0.00
	

	Final
	6/1/20
	Final Payment
	

	

	$1,108,496.77
	

	

	$1,108,496.77
	

	

	$0.00
	

	 

	 
	 
	Totals
	

	

	$26,778,236.78
	

	

	$6,778,236.77
	

	

	$20,000,000.00
	

	 

	
		
	Note:
	Interest rate floats monthly (greater of 1 Month Libor + 8.51% or 8.95%).

Regulus AA01 -- updated amort.xlsx $10M Not Raised                                    4/9/2019
    

	
				
	 
	 
	Oxford Finance LLC
	 

	 
	 
	Amortization Table
	 

	 
	 
	Regulus Total
	 

	
				
	Start Date:
	6/22/2016
	 
	Disclaimer:

	Interest Rate:     
	8.97885%
	 
	THIS IS A STANDARD AMORTIZATION

	      Term:
	47
	23 IO + 24 PI
	SCHEDULE. IT IS NOT INTENDED TO BE

	Payment:
	Varies
	 
	USED FOR PAYOFF PURPOSES.

	Final Payment:
	$1,041,496.77
	5.50%
	 

	3rd Amendment Fee:
	$25,000.00
	 
	 

	Fifth Amendment Fee:
	$25,000.00
	 
	 

	Sixth Amendment Fee:
	$17,000.00
	 
	 

	Amount:
	20,000,000.00
	 
	THIS AMORTIZATION SCHEDULE REPRESENTS A

	Interim Interest Days:
	9
	 
	FLOATING INTEREST RATE LOAN.  INTEREST RATE

	    Interim Interest:   
	$44,894.25
	 
	CHARGED MAY DIFFER FROM RATE PER THIS

	 
	 
	 
	SCHEDULE BASED ON THE TERMS OF THE

	 
	 
	 
	LOAN AGREEMENT

Regulus AA01 -- updated amort.xlsx $10M Raised                                    4/9/2019
    

	
																	
	PMT
	Payment
	Beginning
	Monthly
	 
	 
	Ending

	No.
	Date
	Balance
	Payment
	Interest
	Principal
	Balance

	 
	7/1/16
	 
	Interim Interest Due
	 
	

	$20,000,000.00
	

	1
	8/1/16
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	2
	9/1/16
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	3
	10/1/16
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	4
	11/1/16
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	5
	12/1/16
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	6
	1/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	7
	2/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	8
	3/1/17
	

	$20,000,000.00
	

	

	$139,671.00
	

	

	$139,671.00
	

	

	$0.00
	

	

	$20,000,000.00
	

	9
	4/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	10
	5/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	11
	6/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	12
	7/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	13
	8/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	14
	9/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	15
	10/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	16
	11/1/17
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	17
	12/1/17
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	18
	1/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	19
	2/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	20
	3/1/18
	

	$20,000,000.00
	

	

	$139,671.00
	

	

	$139,671.00
	

	

	$0.00
	

	

	$20,000,000.00
	

	21
	4/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	22
	5/1/18
	

	$20,000,000.00
	

	

	$149,647.50
	

	

	$149,647.50
	

	

	$0.00
	

	

	$20,000,000.00
	

	23
	6/1/18
	

	$20,000,000.00
	

	

	$154,635.75
	

	

	$154,635.75
	

	

	$0.00
	

	

	$20,000,000.00
	

	24
	7/1/18
	

	$20,000,000.00
	

	

	$982,980.83
	

	

	$149,647.50
	

	

	$833,333.33
	

	

	$19,166,666.67
	

	25
	8/1/18
	

	$19,166,666.67
	

	

	$148,192.59
	

	

	$148,192.59
	

	

	$0.00
	

	

	$19,166,666.67
	

	26
	9/1/18
	

	$19,166,666.67
	

	

	$148,192.59
	

	

	$148,192.59
	

	

	$0.00
	

	

	$19,166,666.67
	

	27
	10/1/18
	

	$19,166,666.67
	

	

	$143,412.19
	

	

	$143,412.19
	

	

	$0.00
	

	

	$19,166,666.67
	

	28
	11/1/18
	

	$19,166,666.67
	

	

	$1,106,525.93
	

	

	$148,192.59
	

	

	$958,333.33
	

	

	$18,208,333.33
	

	29
	12/1/18
	

	$18,208,333.33
	

	

	$1,686,680.17
	

	

	$136,241.58
	

	

	$1,550,438.60
	

	

	$16,657,894.74
	

	30
	1/1/19
	

	$16,657,894.74
	

	

	$1,054,233.90
	

	

	$128,795.30
	

	

	$925,438.60
	

	

	$15,732,456.14
	

	31
	2/1/19
	

	$15,732,456.14
	

	

	$121,640.01
	

	

	$121,640.01
	

	

	$0.00
	

	

	$15,732,456.14
	

	32
	3/1/19
	

	$15,732,456.14
	

	

	$109,868.39
	

	

	$109,868.39
	

	

	$0.00
	

	

	$15,732,456.14
	

	33
	4/1/19
	

	$15,732,456.14
	

	

	$560,335.01
	

	

	$121,640.01
	

	

	$438,695.00
	

	

	$15,293,761.14
	

	34
	5/1/19
	

	$15,293,761.14
	

	

	$1,206,845.17
	

	

	$114,433.66
	

	

	$1,092,411.51
	

	

	$14,201,349.63
	

	35
	6/1/19
	

	$14,201,349.63
	

	

	$1,202,213.33
	

	

	$109,801.82
	

	

	$1,092,411.51
	

	

	$13,108,938.12
	

	36
	7/1/19
	

	$13,108,938.12
	

	

	$1,190,497.50
	

	

	$98,085.99
	

	

	$1,092,411.51
	

	

	$12,016,526.61
	

	37
	8/1/19
	

	$12,016,526.61
	

	

	$1,185,320.74
	

	

	$92,909.23
	

	

	$1,092,411.51
	

	

	$10,924,115.10
	

	38
	9/1/19
	

	$10,924,115.10
	

	

	$1,176,874.45
	

	

	$84,462.94
	

	

	$1,092,411.51
	

	

	$9,831,703.59
	

	39
	10/1/19
	

	$9,831,703.59
	

	

	$1,165,976.00
	

	

	$73,564.49
	

	

	$1,092,411.51
	

	

	$8,739,292.08
	

	40
	11/1/19
	

	$8,739,292.08
	

	

	$1,159,981.86
	

	

	$67,570.35
	

	

	$1,092,411.51
	

	

	$7,646,880.57
	

	41
	12/1/19
	

	$7,646,880.57
	

	

	$1,149,628.34
	

	

	$57,216.83
	

	

	$1,092,411.51
	

	

	$6,554,469.06
	

	42
	1/1/20
	

	$6,554,469.06
	

	

	$1,143,089.27
	

	

	$50,677.76
	

	

	$1,092,411.51
	

	

	$5,462,057.55
	

	43
	2/1/20
	

	$5,462,057.55
	

	

	$1,134,642.98
	

	

	$42,231.47
	

	

	$1,092,411.51
	

	

	$4,369,646.04
	

	44
	3/1/20
	

	$4,369,646.04
	

	

	$1,124,017.00
	

	

	$31,605.49
	

	

	$1,092,411.51
	

	

	$3,277,234.53
	

	45
	4/1/20
	

	$3,277,234.53
	

	

	$1,117,750.39
	

	

	$25,338.88
	

	

	$1,092,411.51
	

	

	$2,184,823.02
	

	46
	5/1/20
	

	$2,184,823.02
	

	

	$1,108,759.18
	

	

	$16,347.67
	

	

	$1,092,411.51
	

	

	$1,092,411.51
	

	47
	6/1/20
	

	$1,092,411.51
	

	

	$1,100,857.80
	

	

	$8,446.29
	

	

	$1,092,411.51
	

	

	$0.00
	

	Final
	6/1/20
	Final Payment
	

	

	$1,108,496.77
	

	

	$1,108,496.77
	

	

	$0.00
	

	 

	 
	 
	Totals
	

	

	$28,828,787.39
	

	

	$6,828,787.39
	

	

	$20,000,000.00
	

	 

	
		
	Note:
	Interest rate floats monthly (greater of 1 Month Libor + 8.51% or 8.95%).

Regulus AA01 -- updated amort.xlsx $10M Raised                                    4/9/2019ex_142770.htm

Exhibit 10.7

 

 [Cable One Letterhead]

 

 

February 12, 2018

 

 

Mr. Peter Witty

[REDACTED]

 

 

Dear Pete,

 

We are delighted at the prospect that you will be joining Cable One as Senior Vice President, General Counsel and Secretary in Phoenix, Arizona. This letter confirms our offer of employment to you with an anticipated hire date of April 2, 2018. As we have discussed, this offer is subject to your satisfactory completion of the pre-employment physical, background check and all other pre-hire clearances.

 

SALARY AND BONUS 

Your starting salary will be $315,000 per annum, payable bi-weekly in accordance with the Company’s normal payroll practices. This salary is subject to review and possible adjustment in Cable One’s discretion periodically.  As part of your employment with Cable One and for the role you will be fulfilling of Senior Vice President, General Counsel and Secretary, you will be eligible to receive an annual bonus targeted at 50% of your base annual salary (with potential of up to 100% of base pay).  Bonuses are awarded in the Company’s sole discretion, are not guaranteed, and are determined after an evaluation of the Company's performance as well as your own performance for the period reviewed.  Payment of a bonus for one year does not guarantee payment in any subsequent year.  Any bonus in respect of your first year of employment would be prorated for the number of months worked.  Bonuses are typically paid in March after the calendar year for which they are awarded, and only associates who remain on the Company’s payroll on the date of payment are eligible.  No pro-rated bonus is awarded for the final year of employment.

 

RELOCATION & TEMPORARY HOUSING*

The Company will also provide you with relocation assistance and a temporary housing allowance of $120,000. These amounts are typically payable as reimbursement for all reasonable, travel, food, gasoline, lodging and related expenses in connection with your visit to Phoenix, Arizona to search for a home and all other moving-related expenses, including but not limited to movement of household goods, storage, rental agency/temporary housing, buying or selling a home, etc., in one lump sum when you begin your employment with us. As a condition of accepting this offer, you agree that, if your employment with Cable One ends for any reason (other than a layoff, reduction-in-force, or due to the termination of your position in the event the Company is sold) less than two years after your hire date, any amount owed to the Company will be deducted from your final pay check. If any relocation money owed to the Company is still outstanding after such deduction, you shall reimburse the Company for the pro-rated net amount paid in relocation assistance no later than 30 days after the date of termination.*

 

 

 

 

Page 2

 

EQUITY COMPENSATION

	 	
			(a)

				
			SARs. Subject to the approval of the Compensation Committee, you will receive a grant of 2,000 stock appreciation rights under the Amended and Restated Cable One, Inc. 2015 Omnibus Incentive Compensation Plan (the “Plan”). This grant will vest in four equal installments on the first four anniversaries of the grant date, provided that you remain employed with Cable One through each vesting date, except as otherwise provided in your award agreement.

			

 

	 	
			(b)

				
			Restricted Stock. Subject to the approval of the Compensation Committee, you will receive a grant of restricted stock with a grant date fair value equal to approximately $945,000 multiplied by a fraction (i) the numerator of which is the number of full and partial months from your hire date through December 31, 2020 and (ii) the denominator of which is 36. This grant will cliff-vest on January 3, 2021, provided that you remain employed with Cable One through the vesting date, except as otherwise provided in your award agreement.

			

 

The SARs grant and the Restricted Stock grant will be subject to Cable One’s standard terms and conditions and the restrictive covenants applicable to other executives of Cable One, as set forth in your award agreements and the Plan, provided that you acknowledge and agree that your relocation to Phoenix, Arizona will not be considered “Good Reason” for purposes of your award agreements.

 

You also understand and agree that you are solely responsible for any additional tax obligations resulting from the Company’s payments.

 

Nothing in this letter modifies your at-will employment status. Accordingly, either you or Cable One may end the employment relationship at any time and for any reason or no reason, with or without notice.

 

Please sign and date this letter below to indicate your acceptance and return the original to me at your earliest convenience. Keep the copy for your records.

 

We look forward to seeing you on April 2, 2018.

 

Sincerely,

 

/s/ Julia M. Laulis

 

Julia M. Laulis

President and CEO

Cable One, Inc.

[REDACTED]

[REDACTED]

 

Original – via US mail

Copy – via email                                    

 

 

 

 

Page 3

 

ACCEPTED AND AGREED:

 

 

 

/s/ Peter N. Witty                                    ,                         February 14, 2018

Peter Witty

 

 

*Relocation & Temporary Housing Proration Schedule:                    

0 to 6 months     -  100%

7 to 12 months   -  75%

13 to 18 months -  50%

19 to 24 months -  25%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]