Document:

cers-ex103_264.htm

Exhibit 10.3

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS FIRST AMENDMENT to Loan and Security Agreement (this “Amendment”) is made effective as of July 31, 2017 (the “First Amendment Date”) and made, 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 thereof from time to time including Oxford in its capacity as a Lender (each a “Lender” and collectively, the “Lenders”) and CERUS CORPORATION, a Delaware corporation with offices located at 2550 Stanwell Drive, Concord, CA  94520 (“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 date hereof (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(a)(i) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

(a)Availability.  (i) Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, to make term loans to Borrower on the Effective Date in an aggregate amount of Thirty Million Dollars ($30,000,000.00) according to each Lender’s Term A Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term A Loan”, and collectively as the “Term A Loans”).  After repayment, no Term A Loan may be re‐borrowed.  Subject to the terms and conditions of the Original Agreement, the Lenders, severally and not jointly, loaned to Borrower advances according to each Lender’s Term Loan Commitment (as defined in the Original Agreement) as set forth on Schedule 1.1 of the Original Agreement (such term loans referred to singly as “Original Term Loan”, and collectively as “Original Term Loans”), of which an aggregate principal amount of Seventeen Million Six Hundred Thirty Thousand Five Hundred Nine Dollars and Forty Four cents ($17,630,509.44) remains outstanding on the date hereof and shall, as of the Effective Date, be governed by the terms and provisions of  this Agreement.  The Original Term Loans are evidenced by, among other things, : (1) that certain Term A Loan – Note No. 1, issued on June 30, 2014 (“Original Note 1”) in the original principal amount of Five Million Dollars ($5,000,000.00), of which Four Million Four Hundred Seven Thousand Four Hundred Forty Eight Dollars Thirty cents ($4,407,448.30) of principal amount remain outstanding; (2) that certain Term A Loan – Note No. 2, issued on June 30, 2014 (“Original Note 2”) in the original principal amount of Five Million Dollars ($5,000,000.00), of which Four Million Four Hundred Seven Thousand Four Hundred Forty Eight Dollars Thirty cents ($4,407,448.30) of principal amount remain outstanding; (3) that certain Term B Loan – Note 1, issued on June 15, 2015 (“Original Note 3”) in the original principal amount of Five Million Dollars ($5,000,000.00), of which Four Million Four Hundred Seven Thousand Eight Hundred  Six Dollars Forty Two cents ($4,407,806.42) of principal amount remain outstanding; and (4) that certain Term B Loan – Note 2, issued on June 15, 2015 (“Original Note 4,” and together with Original Note 1, Original Note 2 and Original Note 3, the “Original Notes”) in the original principal amount of Five Million Dollars ($5,000,000.00), of which Four Million Four Hundred Seven Thousand Eight Hundred  Six Dollars Forty Two cents ($4,407,806.42) of principal amount remain outstanding.  Each Original Note shall be amended and restated on the Effective Date and as amended and restated shall represent, effective as of the Effective Date, the respective principal amount of the Original Term Loans outstanding that is evidenced by such Original Note and set forth above as equivalent principal amount of the Term A Loans being issued hereunder and shall be governed in all respects by the terms of 

 

 

this Agreement.  The balance of the aggregate principal amount of the Term A Loans shall be evidenced by Secured Promissory Notes issued hereunder.

 

	
 
	
3.
	
Footnote 1 on the Schedule 1.1 to the Loan Agreement is hereby amended and restated in its entirety as follows:

 

Oxford provided terms loans earlier to Borrower, an aggregated principal amount of $17,630,509.44 of which is outstanding immediately prior to the Effective Date.  Such aggregate principal amount shall convert to Term A Loans hereunder and will be evidenced by Amended and Restated Promissory Notes showing applicable principal balances as of July 31, 2017.  New Secured Promissory Notes evidencing the Term A Loans hereunder shall be issued on the Effective Date in the respective amounts of $7,000,000.00 and $5,369,490.56.

 

	
 
	
4.
	
Limitation of Amendment.

 

	
 
	
a.
	
The amendments set forth in Sections 2 through 3 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.

 

	
 
	
5.
	
To induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders as follows: 

 

 

	
 
	
a.
	
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; 

 

	
 
	
b.
	
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; and 

 

	
 
	
c.
	
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. 

 

	
 
	
6.
	
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.

 

	
 
	
7.
	
This Amendment shall be deemed effective as of the First Amendment Date upon (a) the due execution and delivery to Collateral Agent of this Amendment by each party hereto and (b) Borrower’s payment of all Lenders’ Expenses incurred through the date hereof, which may be debited from any of Borrower’s accounts.

 

	
 
	
8.
	
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.

2

 

 

	
 
	
9.
	
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]

 

3

 

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

			
	
BORROWER:
	
 
	
 

	
 
	
 
	
 

	
CERUS CORPORATION
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By /s/ Kevin D. Green
	
 
	
 

	
Name: Kevin D. Green
	
 
	
 

	
Title:   VP, Finance and CFO
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
COLLATERAL AGENT AND LENDER:
	
 
	
 

	
 
	
 
	
 

	
OXFORD FINANCE LLC
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By /s/ Colette H. Featherly
	
 
	
 

	
Name: Colette H. Featherly
	
 
	
 

	
Title: Senior Vice President
	
 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature page to First Amendment to Loan and Security Agreement]EX-4.1

 EXHIBIT 4.1 
  

			
	
                RIGHTS
CERTIFICATE #:
	  	     NUMBER OF RIGHTS:

 THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING SET FORTH IN THE COMPANY’S PROSPECTUS DATED [●], 2017 ARE AVAILABLE
UPON REQUEST FROM BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE INFORMATION AGENT. 
 SCHMITT INDUSTRIES, INC. 

(Incorporated under the laws of the State of Oregon) 

Non-transferable SUBSCRIPTION RIGHTS CERTIFICATE 

Evidencing non-transferable Subscription Rights, each to Purchase Shares of Common Stock of 

SCHMITT INDUSTRIES, INC. 
 Subscription Price: $[●] per
Share 
 THE SUBSCRIPTION RIGHTS ARE EXPECTED TO EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN TIME, ON [●], 2017, SUBJECT TO EXTENSION OR
EARLIER TERMINATION. 
 REGISTERED OWNER: 
 THIS CERTIFIES THAT

 The registered owner whose name is inscribed hereon is the owner of the number of subscription rights (“Rights”) set forth above. Each Right
entitles the holder thereof to subscribe for and purchase (the “Basic Subscription Privilege”) one-third of a share (each share, a “Share”) of common stock, no par value (“Common
Stock”), of SCHMITT INDUSTRIES, INC., an Oregon corporation, at a subscription price of $[●] per Share (the “Subscription Price”), pursuant to a rights offering (the “Rights Offering”), on the terms and subject to the
conditions set forth in the Prospectus. Holders who fully exercise their Basic Subscription Privileges are entitled to subscribe for additional shares of Common Stock that remain unsubscribed for as a result of any unexercised Basic Subscription
Privileges pursuant to the terms and conditions of the Rights Offering, distributed proportionately among shareholders who exercised their over subscription rights, subject to the limitations and as otherwise described in the Prospectus (the
“Over-subscription Privilege”). The Rights represented by this Subscription Rights Certificate may be exercised by completing the appropriate forms on the reverse side hereof and by returning the full payment of the subscription price for
each share of Common Stock. If the subscriber attempts to exercise its Over-subscription Privileges and the Company is unable to issue the subscriber the full amount of shares of Common Stock requested, the Subscription Agent will return to the
subscriber any excess funds submitted promptly, without interest or penalty. 
 This Subscription Rights Certificate is not valid unless countersigned by
Broadridge Corporate Issuer Solutions, Inc., the subscription agent. 
 WITNESS the seal of SCHMITT INDUSTRIES, INC. and the signatures of its duly
authorized officers. 
 COUNTERSIGNED AND REGISTERED: 
  

							
		 	  
	    	  
	  	
		 	David M. Hudson, Chief Executive Officer            	    	Ann M. Ferguson, Corporate Secretary	  	

  

					
		 	
                                         
                                         
                       
	 By:    
	 	BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.

 FORM OF ELECTION TO PURCHASE 

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY. 
 The
registered holder of this Rights Certificate is entitled to exercise the number of Rights shown in the upper right hand corner of the Subscription Rights Certificate and may subscribe for additional shares of Common Stock upon the terms and
conditions specified in the Prospectus. The undersigned hereby notified the Subscription Agent of its irrevocable election to subscribe for shares of Common Stock in the following amounts: To subscribe for shares of Common Stock pursuant to your
Basic Subscription Privilege, please complete lines (a) and (c) below. To subscribe for shares pursuant to your Over-subscription Privilege, please also complete line (b). 

 

											
	           (a)
	  		 		  		  		  	
						
	 	  	 NUMBER OF SHARES OF
 COMMON
STOCK
	 	 	  	SUBSCRIPTION
PRICE	  	 	  	PAYMENT
	 Basic Subscription Privilege
	  	  
	 	X	  	$[●]	  	=	  	$            
		  	  
	 		  		  		  	  

						
	           (b)
	  		 		  		  		  	
						
	 	  	 NUMBER OF SHARES OF
 COMMON
STOCK
	 	 	  	SUBSCRIPTION
PRICE	  	 	  	PAYMENT
	 Oversubscription Privilege
	  	  
	 	X	  	$[●]	  	=	  	$
		  	  
	 		  		  		  	  

  

					
	 (c) TOTAL AMOUNT OF PAYMENT ENCLOSED
	  	$	                                  
              	 
		  	  
	  
	 

 The undersigned acknowledges receipt of the Prospectus dated [●], 2017, in connection with the Rights
Offering and agrees to its terms. 
  
 
                                         
                            

Signature(s) of Subscriber(s) 
 IMPORTANT: THE
SIGNATURE(S) MUST CORRESPOND IN EVERY PARTICULAR, WITHOUT ALTERATION, WITH THE NAME(S) AS PRINTED ON THE FRONT OF THIS RIGHTS CERTIFICATE. 
 If
signature is by trustee(s), executor(s), administrator(s), guardian(s), attorney(s)-in-fact, agent(s), officer(s) of a corporation or another acting in a fiduciary or
representative capacity, please provide the following information (please print). See the instructions. 
  

 

Name(s):                        
                                    

 
  

Capacity (Full Title):
                                         
              
 METHOD OF PAYMENT (CHECK ONE): 

 

					
	  
	 	 ☐
	  	 PERSONAL CHECK, CASHIER’S OR CERTIFIED CHECK DRAWN ON A U.S. BANK

 

	  
	 	 ☐
	  	 Wire transfer of immediately available funds directly to the account maintained by Broadridge Corporate Issuer Solutions, Inc., as
Subscription Agent, for purposes of accepting subscriptions in this Rights Offering at U.S. Bank, 800 Nicollet Mall, Minneapolis, MN 55402 United States, Beneficiary Account Name: Broadridge, Account Number: 153910728465, ABA/Routing number:
123000848, with reference to the rights holder’s name
  

	  
	 	 ☐
	  	U.S. POSTAL MONEY ORDER

 DELIVERY TO DIFFERENT ADDRESS: If you wish for the Common Stock underlying your subscription rights
to be delivered to an address different from that shown on the face of this Subscription Rights Certificate, please enter the alternate address below, sign and have your signature guaranteed. 

 

                          
                                   

 
 
                                         
                    
  

                                         
                    
 TO SUBSCRIBE: I acknowledge that I
have received the Prospectus for the Rights Offering and I hereby irrevocably subscribe for the number of shares indicated above on the terms and conditions specified in the Prospectus. 

 

					
	 SIGNATURE

GUARANTEED:    
	  	
                                         
                               	  	  

	  
	  	Name of Bank of Firm	  	 Registered Holder (or

authorized signatory)

Signature(s):

	  
	  	
                                         
                               	  	  
 
                                    

	  
	  	Name & Title of Signing Officer	  	  

	  
	  	  
 
                                         
                               
	  	  

	  
	  	Signature of Signing Officer	  	  

 IMPORTANT: The signature(s) should be guaranteed by an eligible guarantor institution (bank, stock broker,
savings & loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended. FOR
INSTRUCTIONS ON THE USE OF SCHMITT INDUSTRIES, INC. SUBSCRIPTION RIGHTS CERTIFICATES, CONSULT BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE INFORMATION AGENT, AT
800-733-1121 OR BY EMAIL (SHAREHOLDER@BROADRIDGE.COM).

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