Document:

pbyi-ex102_54.htm

Exhibit 10.2

 

	

	
Pfizer Inc.

	
500 Arcola Road

	
Dock E – D 4214

	
Collegeville, PA  19426

	
Jason.Smith@pfizer.com

 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed.

June 8, 2020

Mr. Alan H. Auerbach (via Electronic Mail)

Chief Executive Officer, President and Chairman of the Board

Puma Biotechnology Inc.

10940 Wilshire Blvd, Suite 600

Los Angeles, CA 90024

	
Re:
	
NERLYNX® (neratinib) Milestone Achievement  

Dear Alan,

This letter agreement (“Letter Agreement”) by and between Pfizer Inc. (“Pfizer”) and Puma Biotechnology, Inc. (“Puma”) is in reference to that certain License Agreement, dated August 18, 2011, as amended (“License Agreement”), by and between Pfizer and Puma.  Pfizer and Puma may each be referred to herein individually as a “Party” and collectively as the “Parties.” Capitalized terms used but not defined herein shall have the meaning given to them in the License Agreement.

Pursuant to [***] of the License Agreement, Puma is obligated to pay Pfizer forty million dollars ($40,000,000) upon “[***]” (“Milestone [***]”).  The Parties acknowledge and agree that a Product achieved [***].  Further, Puma does not dispute that a Product achieved [***] on [***], thereby resulting in the forty million dollar ($40,000,000) Milestone Payment for the achievement of Milestone [***] becoming due and payable on or before [***] (which is [***] after [***]).

As of the date of this letter, Puma has not made any payment to Pfizer relating to Milestone [***].  In accordance with the Parties’ discussion regarding this matter, the Parties desire to permit Puma pay the forty-million-dollar ($40,000,000) Milestone Payment associated with the achievement of Milestone [***] plus accrued interest thereon in installments on the schedule set forth below.

 

 

In consideration of the mutual promises and covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

	
 
	
1.
	
For purposes of this Letter Agreement, the Parties agree that interest shall be calculated [***] at six and one-quarter percent (6.25%) [***] (“Interest”), for the purposes of prorating such Interest in the event any payment under Sections 2, 3 or 4 hereunder is made earlier than the applicable due date.

	
 
	
2.
	
On or before [***], Puma shall pay to Pfizer, via wire transfer, a non-creditable and non-refundable installment payment of US $[***] dollars, consisting of the first [***] ($[***]) portion of the forty million dollar ($40,000,000) milestone payment for achievement of Milestone [***] plus accrued Interest from [***], in the amount of $[***] if paid on the due date or as prorated in the event the installment is paid earlier. 

	
 
	
3.
	
On or before [***], Puma shall pay to Pfizer, via wire transfer, a non-creditable and non-refundable installment payment of US$[***] dollars, consisting of the second [***] ($[***]) portion of the forty million dollar ($40,000,000) milestone payment for achievement of Milestone [***] plus accrued Interest from [***], in the amount of $[***] if paid on the due date or as prorated in the event the installment is paid earlier.

	
 
	
4.
	
On or before September 30, 2021, Puma shall pay to Pfizer, via wire transfer, a non-creditable and non-refundable installment payment of US$[***] dollars, consisting of the final [***] ($[***]) portion of the forty million dollar ($40,000,000) milestone payment for achievement of Milestone [***] plus accrued Interest from [***], in the amount of $[***] if paid on the due date or as prorated in the event the installment is paid earlier.

	
 
	
5.
	
All amounts due under this Letter Agreement shall be paid on or before the applicable dates set forth in Sections 2, 3 and 4 hereunder, by wire, with or without the issuance of an invoice by Pfizer, using the following instructions:

[***]

	
 
	
6.
	
For the avoidance of doubt, the timing of all other Milestone Payments set forth in Section 5.1 of the License Agreement shall continue to be governed by Section 5.1 of the License Agreement and shall not be affected by this Letter Agreement. 

2

 

	
 
	
7.
	
Provided that [***] (a) [***] and (b) [***]. Notwithstanding the foregoing, the Parties represent and agree that if Puma fails to make any of the payments required under Sections 2, 3 or 4 of this Letter Agreement on or before the applicable dates specified in such Sections: (a) [***]; (b) [***]; (c) [***]; (d) [***]; and (e) [***].  For the avoidance of doubt, disputes that arise out of or in connection with the License Agreement (other than Disputes) shall continue to be subject to the applicable procedures set forth under the License Agreement, including the Dispute Resolution provisions set forth under Section 16 of the License Agreement.

	
 
	
8.
	
Each Party hereby represents and warrants to the other that it has the corporate power and authority to execute this Letter Agreement and that this Letter Agreement constitutes a legal, valid and binding obligation, enforceable against such Party in accordance with its terms.

	
 
	
9.
	
Except as expressly modified herein, all the terms and conditions of the License Agreement shall remain in full force and effect.  To the extent that there are any inconsistencies between this Letter Agreement and the License Agreement, the terms of this Letter Agreement shall govern and shall supersede the License Agreement.

	
 
	
10.
	
This Letter Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. Each Party may execute this Letter Agreement by facsimile transmission or in Portable Document Format (PDF) sent by electronic mail.  Facsimile or PDF signatures of authorized signatories of the Parties will be deemed to be original signatures, will be valid and binding upon the Parties.  Additionally, and for the avoidance of doubt, the Parties agree to accept delivery of this Letter Agreement by electronic mail and hereby waive any requirement for delivery of a copy by an internationally recognized overnight delivery service. 

Please acknowledge Puma’s agreement to this Letter Agreement and the terms contained herein by signing a copy of this Letter Agreement and returning the same to Pfizer by electronic mail to [***] at [***]. 

Sincerely yours, 

 

	
PFIZER INC.

	
 
	
 

	
By:
	
/s/ Andrew A. Schmeltz

	
Name:
	
Andrew A. Schmeltz

	
Title:
	
Global President, Oncology, Pfizer Inc.

 

3

 

ACKNOWLEDGED, ACCEPTED AND AGREED

PUMA BIOTECHNOLOGY, INC.

 

	
By:
	
/s/ Alan H. Auerbach

	
Name:
	
Alan H. Auerbach

	
Title:
	
Chief Executive Officer, President and Chairman of the Board of Puma Biotechnology, Inc.

	
Date:
	
June 8, 2020

	
cc: [***]

 

4pbyi-ex103_221.htm

Exhibit 10.3

SECOND AMENDMENT TO
amended and restated LOAN AND SECURITY AGREEMENT

THIS SECOND AMENDMENT to Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into as of July 6, 2020, by and between OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 hereof or otherwise a party hereto from time to time (including Oxford in its capacity as a Lender) (each a “Lender” and collectively, the “Lenders”), and PUMA BIOTECHNOLOGY, INC., a Delaware corporation with offices located at 10880 Wilshire Blvd., Ste. 2150, Los Angeles, CA 90024 (“Borrower”).

Recitals

A.Collateral Agent, Lenders and Borrower have entered into that certain Amended and Restated Loan and Security Agreement dated as of June 8, 2019, as amended by that certain First Amendment to Amended and Restated Loan and Security Agreement dated as of February 27, 2020 (as amended from time to time, the “Loan Agreement”).

B.Lenders have extended credit to Borrower for the purposes permitted in the Loan Agreement.  

C.Borrower has requested that Collateral Agent and Lenders (i) modify the account reference and requirements for one of its Wells Fargo accounts and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.

D.Collateral Agent and Lenders have agreed to amend certain provisions of the Loan Agreement, but only to the extent and subject to the terms and conditions, and in reliance upon the representations and warranties, set forth below.

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Amendment to Loan Agreement.  

2.1Section 6.6 (Operating Accounts).  Section 6.6(a) of the Loan Agreement hereby is amended by replacing the reference to “xxxxxx2454” with “xxxxxx9896”.

2.2Section 13.1 (Definitions). Clause (k) in the defined “Permitted Liens” hereby is amended and restated as follows: 

	
“(k)
	
Liens in favor of Wells Fargo arising from that certain restricted cash account no. xxxxxx9896 which secures (i) the standby letters of credit issued by Wells Fargo for Borrower’s office leases so long as the amount in such restricted cash account in respect of such letters of credit does not exceed Four Million Dollars ($4,000,000.00) in the aggregate and (ii) Borrower’s credit card issued by Wells Fargo so long as the amount in such restricted cash account in respect of such credit card does not exceed Twenty Thousand Dollars ($20,000.00);”.

3.Limitation of Amendment.

3.1The amendment set forth in Section 2, is 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 

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Exhibit 10.3

modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Collateral Agent or any Lender may now have or may have in the future under or in connection with any Loan Document.

3.2This 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.

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

4.1Immediately 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 ; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

4.3The organizational documents of Borrower delivered to Collateral Agent and Lenders prior to the date hereof, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4The 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, have been duly authorized;

4.5The 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 (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

4.6The 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 exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower; (in each case, except as already have been obtained and are in full force and effect); and

4.7This 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.

5.Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

6.Effectiveness.  This Amendment shall be deemed effective upon the due execution and delivery to Collateral Agent and Lenders of (i) this Amendment by each party hereto, and (ii) Borrower’s payment of all Lenders’ Expenses incurred through the date of this Amendment.

[Balance of Page Intentionally Left Blank]

 

 

2

 

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

		
	
COLLATERAL AGENT AND LENDER:

 

OXFORD FINANCE LLC 

 

 

By:/s/ Colette H. Featherly

Name:Colette H. Featherly

Title:Senior Vice President

 
	
 

	
 

BORROWER:

 

PUMA BIOTECHNOLOGY, INC.

 

By:/s/ Maximo Nougues

Name:Maximo Nougues

Title:Chief Financial Officer

 

 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Second Amendment to Amended and Restated Loan and Security Agreement]

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