Document:

Exhibits 10.23  

        
AMENDMENT NO. 02 

Dated
September 11, 2006 

TO

that
certain Loan and Security Agreement No. 4611

dated as of March 21, 2005, as amended ("Agreement"), by and between
 LIGHTHOUSE CAPITAL PARTNERS V, L.P. ("Lender") and
 NOVACARDIA, INC. ("Borrower"). 

(All
capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Agreement.) 

Without
limiting or amending any other provisions of the Agreement, Lender and Borrower agree to the following: 

The
following definition shall be deleted in its entirety and replaced with the following: 

        "Bridge Loan Commitment Termination Date" means September 22, 2006. 

Except
as amended hereby, the Agreement remains unmodified and unchanged. 

	 BORROWER:	 	LENDER:
	

NOVACARDIA, INC.	
 	

LIGHTHOUSE CAPITAL PARTNERS V, L.P.
	

 	
 	

 	
 	
By:	
 	
LIGHTHOUSE MANAGEMENT

PARTNERS V, L.L.C., its general partner
	

By:	
 	

/s/  RANDALL E. WOODS      
	
 	

By:	
 	

/s/  THOMAS CONNEELY      

	

Name:	
 	

Randall E. Woods
	
 	

Name:	
 	

Thomas Conneely

	

Title:	
 	

President and CEO
	
 	

Title:	
 	

Vice PresidentQuickLinks
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Exhibits 10.24  

 
 

AMENDMENT NO. 03 TO THE LOAN AND SECURITY AGREEMENT
  DATED March 21, 2005    
    

Dated April 11, 2007 

        This Amendment No. 03 ("Amendment 03") to that certain Loan and Security Agreement
No. 4611 dated March 21, 2005, as amended by Amendment No. 01 to Loan and Security Agreement No. 4611 and Amendment No. 02 to Loan and Security Agreement
No. 4611 (the "Agreement") is entered into as of April 11, 2007, by and between Lighthouse Capital Partners V,
L.P. ("Lender") and NovaCardia, Inc., a Delaware corporation
("Borrower"). 

        WHEREAS,
Borrower and Lender have previously entered into the Agreement; and 

        WHEREAS,
Borrower has requested Lender provide additional term loan financing in the amount of $15,000,000 and restructure the terms of its existing term loan financing with Lender; and 

        WHEREAS,
Lender has agreed to do so under the Agreement, subject to all of the terms and conditions hereof and of the Agreement; 

        NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, the parties hereby agree to modify the Agreement and to perform such other covenants and
conditions as follows: 

        (All
capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Agreement.) 

I.    Section 1.1, the following definitions shall be added to the Agreement: 

"Amendment 01" means Amendment No. 01 dated July 14, 2006 to the Loan and Security Agreement dated March 21, 2005. 

"Amendment 02" means Amendment No. 02 dated September 11, 2006 to the Loan and Security Agreement dated March 21, 2005. 

"Amendment 03" means Amendment No. 03 to the Loan and Security Agreement dated March 21, 2005. 

"Amendment 03 Effective Date" means April 11, 2007. 

"Commitment One" means $5,000,000. 

"Commitment Three" means $15,000,000, of which a minimum of $5,000,000 shall be drawn on the Amendment 03 Effective Date. 

"New Warrant" mean the Warrant in favor of Lender to purchase securities of Borrower, substantially in the form of  Exhibit C-1 attached to Amendment 03 and
issued in conjunction with Commitment Three. 

II.    Section 1.1, each of the following definitions of the Agreement shall be deleted in its entirety and replaced with the
following: 

"Basic Rate" means a variable per annum rate of interest equal to the Index plus the Interest Margin
which shall be subject to upward or downward adjustment as effective as of the day the Index is changed. On and after the Loan Commencement Date the Basic Rate shall be fixed and not subject to any
further adjustments. Notwithstanding the foregoing, in no event shall the Basic Rate be less than 9.75%. 

1

 

"Commitment" means collectively, Commitment One, the Bridge Loan Commitment, and Commitment Three. 

"Commitment Fee" means (i) $10,000 in conjunction with Commitment One, and  (ii) $10,000 in conjunction with Commitment
Three. 

"Commitment Termination Date" means the earliest to occur of (i) for Advances under Commitment One,
September 1, 2005; (ii) for Advances under the Bridge Loan Commitment, the Bridge Loan Commitment Termination Date;  (iii) for Advances under
Commitment Three, September 1, 2007; (iv) any Default or Event of
Default, or (v) in Lender's reasonable judgment, any adverse change in the management or composition of Borrower's Board of Directors. 

"Incumbency Certificate" means the document in the form of Exhibit E of the Agreement and in the
form of Exhibit E-1 attached to Amendment 03. 

"Interest Margin" means (A) for Advances under Commitment One,  (i) prior to September 1, 2005, 4% per annum;
(ii) on and after September 1, 2005 and
prior to the Amendment 03 Effective Date, 1.75% per annum; (iii) on and after the Amendment 03 Effective Date and prior to the Loan Commencement Date,
4.25% per annum; and (iv) on and after the Loan Commencement Date, 1.5% per annum and (B) for Advances
under Commitment Three, (i) on and after the Amendment 03 Effective Date and prior to the Loan Commencement Date, 4.25% per annum; and  (ii)on and after the
Loan Commencement Date, 1.5% per annum. 

"Loan Commencement Date" means January 1, 2008. 

"Loan Documents" means, collectively, the Agreement, Amendment 01, Amendment 02, Amendment 03, the Warrants, the Notes and all other documents,
instruments and agreements entered into between Borrower and Lender in connection with the Loan, all as amended or extended from time to time. 

"Note" means (i) a Secured Promissory Note in the form of  Exhibit B attached to this Agreement for Advances
funded under Commitment One; (ii) the Bridge
Loan Note; and (iii) a Secured Promissory Note in the form of Exhibit B-1 attached to
Amendment 03 for Advances funded under Commitment Three. 

"Notice of Borrowing" means the form attached to Amendment 03 as Exhibit D-1 for
Advances under Commitment Three. Lender acknowledges and agrees that Borrower may submit a Notice of Borrowing on or prior to the Amendment 03 Effective
Date with respect to Advances to be made on that date, notwithstanding Section 3.2 of this Agreement. 

"Warrants" means (i) means a Warrant in favor of Lender to purchase securities of Borrower substantially
in the form of Exhibit C to this Agreement; (ii) the Warrant issued in conjunction with the
Bridge Loan Commitment; and (iii) the New Warrant. 

III.    Section 3, Conditions of Advances; Procedure for requesting Advances

The
following new Section 3.3 shall be added to the Agreement: 

3.3    Conditions Precedent to Initial Advance under Commitment Three:

        (a)   Amendment 03 duly executed by Borrower. 

        (b)   The New Warrant to be issued to Lender duly executed by Borrower. 

        (c)   An officer's certificate of each Borrower with copies of the following documents attached:  (i) the certificate of incorporation and by-laws or
other organizational documents of Borrower certified by Borrower as being in full force
and effect as of the Amendment 03 Effective Date, (ii) incumbency and representative signatures, and  (iii) resolutions authorizing the execution and
delivery of Amendment 03 and each of the other Loan Documents. 

2

 

        (e)   A good standing certificate from Borrower's state of incorporation or formation and the state in which Borrower's
principal place of business is located, together with certificates of the applicable governmental authorities stating that Borrower is in compliance with the franchise tax laws of each such state,
each dated as of a recent date. 

        (f)    All necessary consents of shareholders, members, and other third parties with respect to the execution, delivery and
performance of this Agreement, Amendment 03, the New Warrant, and the other Loan Documents. 

        (g)   Borrower shall have satisfied all the conditions set forth in  Section 3.1 and 3.2 of this
Agreement. 

        (h)   Borrower reaffirms the representations and warranties made to Lender in this Agreement as of the date hereof as though
fully set forth herein, as amended by the amended Disclosure Schedule attached hereto. 

IV.    Section 12, General Provisions

Section 12.9 of the Agreement shall be deleted and replaced with the following: 

12.9    No Original Issue Discount. Borrower and Lender acknowledge and agree that the Warrants are part of an investment unit within the
meaning of Section 1273(c)(2) of the Internal Revenue Code, which includes the Loan. Borrower and Lender further agree as between them, that they will cooperate with each other in determining
the fair market value of the Warrants and that, pursuant to Treas. Reg. § 1.1273-2(h), a portion of the issue price of the investment unit will be allocable to the Warrants and
the balance shall be allocable to the Loans. Borrower and Lender agree to prepare their federal income tax returns in a manner consistent with the foregoing and to cooperate with each other in
determining such valuation and allocation approach and methodology, pursuant to Treas. Reg. § 1.1273. 

V.    Promissory Note Restructure. The repayment terms of the Note dated September 1, 2005 shall be modified as set forth below and
shall be effective as of the Amendment 03 Effective Date: 

In
the Note, dated September 1, 2005, the following definitions shall be deleted and replaced with the following: 

"Basic Rate" means a variable per annum rate of interest equal to the Index plus the Interest Margin
which shall be subject to upward or downward adjustment effective as of the day the Index is changed. On and after the Loan Commencement Date the Basic Rate shall be fixed and not subject to any
further adjustments. Notwithstanding the foregoing, in no event shall the Basic Rate be less than 9.75%. 

"Final Payment" means 5.25% of the Advance. 

"Interest Margin" means (i) from September 1, 2005 to the Amendment 03 Effective Date, 1.75% per
annum; (ii) from the Amendment 03 Effective Date to December 31, 2007, 4.25% per annum; and (iii)
on and after the Loan Commencement Date, 1.5% per annum. 

"Loan Commencement Date" means January 1, 2008. 

Notwithstanding
the foregoing, there shall be no rebate of any principal payments made prior to the revised Loan Commencement Date for the Note as set forth above. Effective on the Amendment 03
Effective Date, the Basic Rate shall again be subject to adjustment, subject to the terms of the Note referenced above and this Section V and on
the revised Loan Commencement Date, the Note shall again amortize for a new 36 month Repayment Period. 

VI.    Disclosure Schedule. The Disclosure Schedule is hereby amended and restated in the form attached to this Amendment 03. 

3

 

Except
as amended hereby, the Agreement remains unmodified and unchanged. 

	 BORROWER:	 	LENDER:
	

NOVACARDIA, INC.	
 	

LIGHTHOUSE CAPITAL PARTNERS V, L.P.
	

 	
 	

 	
 	
By:	
 	
LIGHTHOUSE MANAGEMENT

PARTNERS V, L.L.C., its general partner
	

By:	
 	

/s/  JOHN E. CRAWFORD      
	
 	

By:	
 	

/s/  THOMAS CONNEELY      

	

Name:	
 	

John E. Crawford
	
 	

Name:	
 	

Thomas Conneely

	

Title:	
 	

Chief Financial Officer
	
 	

Title:	
 	

Vice President

4

 
Exhibit B-1  

        [                        ]

Secured Promissory Note  

This
Secured Promissory Note (this "Note") is made                        , 2007, by
NovaCardia, Inc.
("Borrower") in favor of Lighthouse Capital Partners V, L.P. (collectively with its assigns,
"Lender"). Initially capitalized terms used and not otherwise defined herein are defined in that certain Loan and Security Agreement No. 4611
between Borrower and Lender dated March 21, 2005, as amended (the "Loan Agreement"). 

For
Value Received, Borrower promises to pay in lawful money of the United States, to the order of Lender, at 500 Drake's Landing Road, Greenbrae, California 94904, or such other place as Lender may
from time to time designate ("Lender's Office"), the principal sum of
$                        (the "Advance"), including interest on the unpaid balance and all
other amounts due or to become due hereunder according to the terms hereof and of the Loan Agreement. 

"Basic Rate" means a variable per annum rate of interest equal to the Index plus the Interest Margin
which shall be subject to upward or downward adjustment effective as of the day the Index is changed. On and after the Loan Commencement Date the Basic Rate shall be fixed and not subject to any
further adjustments. Notwithstanding the foregoing, in no event shall the Basic Rate be less than 9.75%. 

"Final Payment" means 5.25% of the Advance. 

"Index" means the prevailing variable Prime Rate of annual interest as quoted from time to time in the western edition of the Wall Street Journal. 

"Interest Margin" means (i) prior to the Loan Commencement Date, 4.25% per annum; or  (ii) at the Loan Commencement Date,
1.5% per annum. 

"Loan Commencement Date" means January 1, 2008. 

"Maturity Date" means the last day of the Repayment Period, or if earlier, the date of prepayment under the Note. 

"Payment Date" means the first day of each calendar month. 

"Repayment Period" means the period beginning on the Loan Commencement Date and continuing for 36 calendar months. 

1.    Repayment. Borrower shall pay principal and interest due hereunder from the Funding Date, until this Note is paid in full, on each
Payment Date pursuant to the terms of the Loan Agreement and this Note. Prior to the Loan Commencement Date, Borrower shall pay to Lender, monthly in advance on each Payment Date, interest calculated
using the Basic Rate prevailing on the first business day of such calendar month. Beginning on the Loan Commencement Date and on each Payment Date thereafter during the Repayment Period, Borrower
shall make equal installments of principal and interest in advance, calculated at the Basic Rate. On the Maturity Date, Borrower shall pay, in addition to all unpaid principal and interest outstanding
hereunder, the Final Payment. 

2.    Interest. Interest not paid when due will, to the maximum extent permitted under applicable law, become part of principal, at Lender's
option, and thereafter bear like interest as principal. Interest shall be computed on the basis of a 360 day year. All Obligations not paid when due shall bear interest at the Default Rate
unless waived in writing by Lender. All amounts paid hereunder will be applied to the Obligations in Lender's discretion and as provided in the Loan Agreement. 

5

 

3.    Voluntary Prepayment. Borrower may prepay this Note if and only if Borrower pays to Lender  (i) the outstanding principal amount of
this Note and any unpaid accrued interest; (ii) the Final
Payment; and (iv) all other sums, if any, that shall have become due and payable hereunder with respect to this Note. 

4.    Collateral. This Note is secured by the Collateral. 

5.    Waivers. Borrower, and all guarantors and endorsers of this Note, regardless of the time, order or place of signing, hereby waive
notice, demand, presentment, protest, and notices of every kind, presentment for the purpose of accelerating maturity, diligence in collection, and, to the fullest extent permitted by law, all rights
to plead any statute of limitations as a defense to any action on this Note. 

6.    Choice of Law; Venue. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAW. EACH OF BORROWER AND LENDER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE CITY AND COUNTY OF SAN FRANCISCO, STATE OF CALIFORNIA. BORROWER AND
LENDER EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE. EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY ACTION
IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.

7.    Miscellaneous. This Note may be modified only by a writing signed by Borrower and
Lender. Each provision hereof is severable from every other provision hereof and of the Loan Agreement when determining its legal enforceability.
Sections and subsections are titled for convenience, and not for construction. "Hereof," "herein," "hereunder," and similar words refer to this Note in its entirety. "Or" is not necessarily exclusive.
"Including" is not limiting. The terms and conditions hereof inure to the benefit of and are binding upon the parties' respective permitted successors and assigns. This Note is subject to all the
terms and conditions of the Loan Agreement. 

In
Witness Whereof, Borrower has caused this Note to be executed by a duly authorized officer as of the day and year first above written. 

	 	 	NOVACARDIA, INC.
	

 	
 	

BY:	

 
	 	 	 	

	

 	
 	

NAME:	

 
	 	 	 	

	

 	
 	

TITLE:	

 
	 	 	 	

6

 
Exhibits C-1  

New Warrant  

7

 
 Exhibit D-1  

Notice of Borrowing  

                    ,             

Lighthouse
Capital Partners V, L.P.

500 Drake's Landing Road

Greenbrae, CA 94904-3011 

Ladies
and Gentlemen: 

        Reference
is made to the Loan and Security Agreement No. 4611 dated as of March 21, 2005 (as it has been and may be amended from time to time, the
"Loan Agreement," initially capitalized terms used herein as defined therein), between Lighthouse Capital Partners V,
L.P. and NovaCardia, Inc. (the "Company") 

        The
undersigned is the President and CEO of the Company, and hereby irrevocably requests an Advance under the Loan Agreement, and in that connection certifies as follows: 

        1.     The
amount of the proposed Advance is $                        . The business day of the proposed Advance is
                        . 

        2.     The
Loan Commencement Date for this Advance shall be January 1, 2008. 

        3.     As
of this date, no Event of Default, or event which with notice or the passage of time would constitute an Event of Default, has occurred and is continuing, or will
result from the making of the proposed Advance, and the representations and warranties of the Company contained in Section 5 of the Loan
Agreement are true and correct in all material respects (as amended by the amended Disclosure Schedule delivered in connection with Amendment 03). 

        4.     No
event that could reasonably be expected to have a material adverse effect on the ability of Company to fulfill its obligations under the Loan Agreement has occurred
since the date of the most recent financial statements, submitted to you by the Company. 

        The
Company agrees to notify you promptly before the funding of the Advance if any of the matters to which I have certified above shall not be true and correct on the Funding Date. 

	 	 	Very truly yours,
	

 	
 	
NOVACARDIA, INC.
	

 	
 	

BY:	

 
	 	 	 	

	

 	
 	

NAME:	

 
	 	 	 	

	

 	
 	

TITLE:	

 
	 	 	 	

8

 
Exhibit E-1  

Incumbency Certificate  

        The undersigned, John E. Crawford, hereby certifies that: 

1.    He/She is the duly elected and acting Secretary of NovaCardia, Inc., a Delaware
corporation (the "Company"). 

2.    That on the date hereof, each person listed below holds the office in the Company indicated opposite his or her name and that the
signature appearing thereon is the genuine signature of each such person: 

	NAME
	 	OFFICE
	 	SIGNATURE

	Randall E. Woods	 	President and CEO	 	 
	 	 	 	 	

	

John E. Crawford	
 	

Chief Financial Officer and Secretary	
 	

 
	 	 	 	 	

3.    Attached hereto as Exhibit A is a true and correct copy of the Certificate of
Incorporation of the Company, as amended, as in effect as of the date hereof. 

4.    Attached hereto as Exhibit B is a true and correct copy of the Bylaws of the
Company, as amended, as in effect as of the date hereof. 

5.    Attached hereto as Exhibit C is a copy of the resolutions of the Board of
Directors of the Company authorizing and approving the Company's execution, delivery and performance of a loan facility with Lighthouse Capital Partners V, L.P. 

        IN
WITNESS WHEREOF, the undersigned has executed this Incumbency Certificate on April 11, 2007. 

	 	 	NOVACARDIA, INC.
	

 	
 	

BY:	

 
	 	 	 	

	

 	
 	

NAME:	

JOHN E. CRAWFORD

	

 	
 	

TITLE:	

SECRETARY

        I,
the President and CEO of the Company, do hereby certify that John E. Crawford is the duly qualified, elected and acting Secretary of the Company and that the above signature is his or
her genuine signature. 

9

 

        IN
WITNESS WHEREOF, the undersigned has executed and delivered this Officer's Certificate on April 11, 2007. 

	 	 	NOVACARDIA, INC.
	

 	
 	

BY:	

 
	 	 	 	

	

 	
 	

NAME:	

RANDALL E. WOODS

	

 	
 	

TITLE:	

PRESIDENT AND CEO

10

 
Schedule 1  

Disclosure Schedule  

Deposit and Securities Accounts  

	 
	 	Account Information:
	 	Contact Information for Account:

	Account Number 1	 	Company Name: Silicon Valley Bank

Address: 4445 Eastgate Mall, Suite 110

City, State, Zip: San Diego, CA 92121

Phone: (858) 784-3300

Fax: (858) 622-1424

Type of Account: Corporate Checking

Account number: XXXXXXXXXXX	 	Contact Name: Deanna Mihalinec

Phone: (858) 784-3324

Fax: (858) 622-1424

E-mail: dmihalinec@svbank.com
	

Account Number 2	
 	

Company Name: Capital Advisors

Group/State Street Bank

Address: 389 Passaic Ave.

City, State, Zip: Fairfield, NJ 07004

Phone: (973) 808-0869

Fax: (973) 808-0783

Type of Account: Money Market/Investment

Account number: XXXXXX	
 	

Contact Name: Glen T. Fuzy

Phone: (973) 808-0869

Fax: (973) 808-0783

E-mail: gfuzy@capitaladvisors.com.
	

Account Number 3	
 	

Company Name: Comerica Bank

Address: 11943 El Camino Real,

Suite 350B

City, State, Zip: San Diego, CA 92130

Phone:

Fax: (858) 509-2360

Type of Account: Checking Account

number: XXXXXXXXXX	
 	

Contact Name: Danielle Dunwell

Phone:

Fax: (858) 509-2360

E-mail:
	

Account Number 4	
 	

Company Name:

Address:

City, State, Zip:

Phone:

Fax:

Type of Account:

Account number:	
 	

Contact Name:

Phone:

Fax:

E-mail:

Permitted Liens  

11

 
 Existing Liens  

        None 

Subsidiaries  

        None 

Litigation and Administrative Proceedings  

        None 

Business Premises  

        [TO BE PROVIDED BY BORROWER—indicate street address and landlord contact information] 

	 
	 	Each Location Address where Lighthouse Capital

Partners has financed assets:
	 	Landlord/Property Management Information:

	Current Headquarters (Location 1)	 	Contact Name: Randall Woods

Address: 12651 High Bluff Drive, Suite 200

City, State, Zip: San Diego, CA 92130

Phone: (858) 509-0455

Fax:	 	Contact Name: Deanna Delaney

Company Name: Coast Income

Properties, Inc.

Address: 4350 La Jolla Village Drive,

Suite 150 City, State, Zip: San Diego, CA

92122

Phone: (858) 587-9192

Fax: (858) 587-0576
	

Location 2	
 	

Contact Name:

Company Name:

Address:

City, State, Zip:

Phone:

Fax:	
 	

Contact Name:

Company Name:

Address:

City, State, Zip:

Phone:

Fax:
	

Location 3	
 	

Contact Name:

Company Name:

Address:

City, State, Zip:

Phone:

Fax:	
 	

Contact Name:

Company Name:

Address:

City, State, Zip:

Phone:

Fax:

12

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AMENDMENT NO. 03 TO THE LOAN AND SECURITY AGREEMENT DATED March 21, 2005

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