Document:

Exhibit 10.2

 

LIQUIDIA TECHNOLOGIES, INC.

 

2016 EQUITY INCENTIVE PLAN

 

ADOPTED BY THE BOARD OF DIRECTORS: May 18, 2016

APPROVED BY THE STOCKHOLDERS:  August 10, 2016

TERMINATION DATE: May 17, 2026

 

1.                                      GENERAL.

 

(a)                                 Successor to and Continuation of Prior Plan.  The Plan is intended as the successor to and continuation of the Liquidia Technologies, Inc. Stock Option Plan, as amended (the “Prior Plan”).  Following the Effective Date, no additional option awards will be granted under the Prior Plan.  All Awards granted on or after the Effective Date will be granted under this Plan.  All option awards granted under the Prior Plan will remain subject to the terms of the Prior Plan.  Any shares that would otherwise remain available for future grants under the Prior Plan as of the Effective Date will cease to be available under the Prior Plan at such time.

 

(b)                                 Eligible Stock Award Recipients.  Employees, Directors and Consultants are eligible to receive Stock Awards.

 

(c)                                  Available Stock Awards.  The Plan provides for the grant of the following types of Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation Rights, (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards and (vi) Other Stock Awards.

 

(d)                                 Purpose.  The Plan, through the grant of Stock Awards, is intended to help the Company secure and retain the services of eligible award recipients, provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate and provide a means by which the eligible recipients may benefit from increases in value of the Common Stock.

 

2.                                      ADMINISTRATION.

 

(a)                                 Administration by the Board.  The Board will administer the Plan.  The Board may delegate administration of the Plan to a Committee or Committees, as provided in Section 2(c).

 

(b)                                 Powers of the Board.  The Board will have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i)                                    To determine (A) who will be granted Stock Awards; (B) when and how each Stock Award will be granted; (C) what type of Stock Award will be granted; (D) the provisions of each Stock Award (which need not be identical), including when a person will be permitted to exercise or otherwise receive cash or Common Stock under the Stock Award; (E) the number of shares of Common Stock subject to, or the cash value of, a Stock Award; and (F) the Fair Market Value applicable to a Stock Award.

 

(ii)                                To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for administration of the Plan and Stock Awards.  The 

 

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Board, in the exercise of these powers, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it will deem necessary or expedient to make the Plan or Stock Award fully effective.

 

(iii)                            To settle all controversies regarding the Plan and Stock Awards granted under it.

 

(iv)                             To accelerate, in whole or in part, the time at which a Stock Award may be exercised or vest (or the time at which cash or shares of Common Stock may be issued in settlement thereof).

 

(v)                                 To suspend or terminate the Plan at any time.  Except as otherwise provided in the Plan or a Stock Award Agreement, suspension or termination of the Plan will not impair a Participant’s rights under the Participant’s then-outstanding Stock Award without the Participant’s written consent except as provided in subsection (viii) below.

 

(vi)                             To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, by adopting amendments relating to Incentive Stock Options and certain nonqualified deferred compensation under Section 409A of the Code and/or bringing the Plan or Stock Awards granted under the Plan into compliance with the requirements for Incentive Stock Options or ensuring that they are exempt from, or compliant with, the requirements for nonqualified deferred compensation under Section 409A of the Code, subject to the limitations, if any, of applicable law. If required by applicable law or listing requirements, and except as provided in Section 9(a) relating to Capitalization Adjustments, the Company will seek stockholder approval of any amendment of the Plan that (A) materially increases the number of shares of Common Stock available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive Stock Awards under the Plan, (C) materially increases the benefits accruing to Participants under the Plan, (D) materially reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (E) materially extends the term of the Plan, or (F) materially expands the types of Stock Awards available for issuance under the Plan.  Except as otherwise provided in the Plan or a Stock Award Agreement, no amendment of the Plan will materially impair a Participant’s rights under an outstanding Stock Award without the Participant’s written consent.

 

(vii)                         To submit any amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 422 of the Code regarding Incentive Stock Options.

 

(viii)                     To approve forms of Stock Award Agreements for use under the Plan and to amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide terms more favorable to the Participant than previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that a Participant’s rights under any Stock Award will not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and (B) such Participant consents in writing.  Notwithstanding the foregoing, (1) a Participant’s rights will not be deemed to have been impaired by any such amendment if the Board, in its sole discretion, determines that the amendment, taken as a whole, does not materially impair the Participant’s rights, and (2) subject to the limitations of applicable law, if any, the Board may amend the terms of any one or more Stock Awards without the affected Participant’s consent (A) to maintain the qualified status of the Stock Award as an 

 

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Incentive Stock Option under Section 422 of the Code; (B) to change the terms of an Incentive Stock Option, if such change results in impairment of the Stock Award solely because it impairs the qualified status of the Stock Award as an Incentive Stock Option under Section 422 of the Code; (C) to clarify the manner of exemption from, or to bring the Stock Award into compliance with, Section 409A of the Code; or (D) to comply with other applicable laws.

 

(ix)                             Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Stock Awards.

 

(x)                                 To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed outside the United States (provided that Board approval will not be necessary for immaterial modifications to the Plan or any Stock Award Agreement that are required for compliance with the laws of the relevant foreign jurisdiction).

 

(xi)                             To effect, with the consent of any adversely affected Participant, (A) the reduction of the exercise, purchase or strike price of any outstanding Stock Award; (B) the cancellation of any outstanding Stock Award and the grant in substitution therefor of a new (1) Option or SAR, (2) Restricted Stock Award, (3) Restricted Stock Unit Award, (4) Other Stock Award, (5) cash and/or (6) other valuable consideration determined by the Board, in its sole discretion, with any such substituted award (x) covering the same or a different number of shares of Common Stock as the cancelled Stock Award and (y) granted under the Plan or another equity or compensatory plan of the Company; or (C) any other action that is treated as a repricing under generally accepted accounting principles.

 

(c)                                  Delegation to Committee.  The Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration of the Plan is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be to the Committee or subcommittee, as applicable).  Any delegation of administrative powers will be reflected in resolutions, not inconsistent with the provisions of the Plan, adopted from time to time by the Board or Committee (as applicable).  The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.

 

(d)                                 Delegation to an Officer.  The Board may delegate to one or more Officers the authority to do one or both of the following: (i) designate Employees who are not Officers to be recipients of Options and SARs (and, to the extent permitted by applicable law, other Stock Awards) and, to the extent permitted by applicable law, the terms of such Stock Awards, and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Employees; provided, however, that the Board resolutions regarding such delegation will specify the total number of shares of Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself or herself.  Any such Stock Awards will be granted on the form of Stock Award Agreement most recently approved for use by the Committee or the Board, unless otherwise provided in the resolutions approving the delegation authority.  The Board may not delegate authority to an Officer who is acting solely in the capacity of an Officer (and not also as a Director) to determine the Fair Market Value pursuant to Section 13(t) below.

 

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(e)                                  Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons.

 

3.                                      SHARES SUBJECT TO THE PLAN.

 

(a)                                 Share Reserve.

 

(i)                                    Subject to Section 9(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued pursuant to Stock Awards from and after the Effective Date will not exceed 1,612,504 shares (the “Share Reserve”).

 

(ii)                                For clarity, the Share Reserve in this Section 3(a) is a limitation on the number of shares of Common Stock that may be issued pursuant to the Plan.  Accordingly, this Section 3(a) does not limit the granting of Stock Awards except as provided in Section 7(a).

 

(b)                                 Reversion of Shares to the Share Reserve.  If a Stock Award or any portion thereof (i) expires or otherwise terminates without all of the shares covered by such Stock Award having been issued or (ii) is settled in cash (i.e., the Participant receives cash rather than stock), such expiration, termination or settlement will not reduce (or otherwise offset) the number of shares of Common Stock that may be available for issuance under the Plan.  If any shares of Common Stock issued pursuant to a Stock Award are forfeited back to or repurchased by the Company because of the failure to meet a contingency or condition required to vest such shares in the Participant, then the shares that are forfeited or repurchased will revert to and again become available for issuance under the Plan.  Any shares reacquired by the Company in satisfaction of tax withholding obligations on a Stock Award or as consideration for the exercise or purchase price of a Stock Award will again become available for issuance under the Plan.

 

(c)                                  Incentive Stock Option Limit.  Subject to the Share Reserve and Section 9(a) relating to Capitalization Adjustments, the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options will be a number of shares of Common Stock equal to three multiplied by the Share Reserve.

 

(d)                                 Source of Shares.  The stock issuable under the Plan will be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market or otherwise.

 

4.                                      ELIGIBILITY.

 

(a)                                 Eligibility for Specific Stock Awards.  Incentive Stock Options may be granted only to employees of the Company or a “parent corporation” or “subsidiary corporation” thereof (as such terms are defined in Sections 424(e) and 424(f) of the Code).  Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants; provided, however, that Stock Awards may not be granted to Employees, Directors and Consultants who are providing Continuous Service only to any “parent” of the Company, as such term is defined in Rule 405, unless (i) the stock underlying such Stock Awards is treated as “service recipient stock” under Section 409A of the Code (for example, because the Stock Awards are granted pursuant to a corporate transaction such as a spin off transaction), (ii) the Company, in consultation with its legal counsel, has determined that such Stock Awards are otherwise exempt from Section 409A of the Code, or (iii) the Company, in consultation with its legal counsel, has 

 

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determined that such Stock Awards comply with the distribution requirements of Section 409A of the Code.

 

(b)                                 Ten Percent Stockholders.  A Ten Percent Stockholder will not be granted an Incentive Stock Option unless the exercise price of such Option is at least 110% of the Fair Market Value on the date of grant and the Option is not exercisable after the expiration of five years from the date of grant.

 

(c)                                  Consultants.   A Consultant will not be eligible for the grant of a Stock Award if, at the time of grant, either the offer or sale of the Company’s securities to such Consultant is not exempt under Rule 701 because of the nature of the services that the Consultant is providing to the Company, because the Consultant is not a natural person, or because of any other provision of Rule 701, unless the Company determines that such grant need not comply with the requirements of Rule 701 and will satisfy another exemption under the Securities Act as well as comply with the securities laws of all other relevant jurisdictions.

 

5.                                      PROVISIONS RELATING TO OPTIONS AND STOCK APPRECIATION RIGHTS.

 

Each Option or SAR will be in such form and will contain such terms and conditions as the Board deems appropriate.  All Options will be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise of each type of Option.  If an Option is not specifically designated as an Incentive Stock Option, or if an Option is designated as an Incentive Stock Option but some portion or all of the Option fails to qualify as an Incentive Stock Option under the applicable rules, then the Option (or portion thereof) will be a Nonstatutory Stock Option. The provisions of separate Options or SARs need not be identical; provided, however, that each Stock Award Agreement will conform to (through incorporation of provisions hereof by reference in the applicable Stock Award Agreement or otherwise) the substance of each of the following provisions:

 

(a)                                 Term.  Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no Option or SAR will be exercisable after the expiration of 10 years from the date of its grant or such shorter period specified in the Stock Award Agreement.

 

(b)                                 Exercise Price.  Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, the exercise or strike price of each Option or SAR will be not less than 100% of the Fair Market Value of the Common Stock subject to the Option or SAR on the date the Stock Award is granted.  Notwithstanding the foregoing, an Option or SAR may be granted with an exercise or strike price lower than 100% of the Fair Market Value of the Common Stock subject to the Stock Award if such Stock Award is granted pursuant to an assumption of or substitution for another option or stock appreciation right pursuant to a Corporate Transaction and in a manner consistent with the provisions of Section 409A of the Code and, if applicable, Section 424(a) of the Code.  Each SAR will be denominated in shares of Common Stock equivalents.

 

(c)                                  Purchase Price for Options.  The purchase price of Common Stock acquired pursuant to the exercise of an Option may be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below.  The Board will have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to use a particular method of payment.  The permitted methods of payment are as follows:

 

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(i)                                    by cash, check, bank draft or money order payable to the Company;

 

(ii)                                pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;

 

(iii)                            by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;

 

(iv)                             if an Option is a Nonstatutory Stock Option, by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company will accept a cash or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued.  Shares of Common Stock will no longer be subject to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations;

 

(v)                                 according to a deferred payment or similar arrangement with the Optionholder; provided, however, that interest will compound at least annually and will be charged at the minimum rate of interest necessary to avoid (A) the imputation of interest income to the Company and compensation income to the Optionholder under any applicable provisions of the Code, and (B) the classification of the Option as a liability for financial accounting purposes; or

 

(vi)                             in any other form of legal consideration that may be acceptable to the Board and specified in the applicable Stock Award Agreement.

 

(d)                                 Exercise and Payment of a SAR.  To exercise any outstanding SAR, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such SAR.  The appreciation distribution payable on the exercise of a SAR will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the SAR) of a number of shares of Common Stock equal to the number of Common Stock equivalents in which the Participant is vested under such SAR, and with respect to which the Participant is exercising the SAR on such date, over (B) the aggregate strike price of the number of Common Stock equivalents with respect to which the Participant is exercising the SAR on such date.  The appreciation distribution may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and contained in the Stock Award Agreement evidencing such SAR.

 

(e)                                  Transferability of Options and SARs.  The Board may, in its sole discretion, impose such limitations on the transferability of Options and SARs as the Board will determine.  In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability of Options and SARs will apply:

 

(i)                                    Restrictions on Transfer.  An Option or SAR will not be transferable except by will or by the laws of descent and distribution (or pursuant to subsections (ii) and (iii) below), and will be exercisable during the lifetime of the Participant only by the Participant.  The Board may permit transfer 

 

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of the Option or SAR in a manner that is not prohibited by applicable tax and securities laws. Except as explicitly provided in the Plan, neither an Option nor a SAR may be transferred for consideration.

 

(ii)                                Domestic Relations Orders.  Subject to the approval of the Board or a duly authorized Officer, an Option or SAR may be transferred pursuant to the terms of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulation 1.421-1(b)(2).  If an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory Stock Option as a result of such transfer.

 

(iii)                            Beneficiary Designation.  Subject to the approval of the Board or a duly authorized Officer, a Participant may, by delivering written notice to the Company, in a form approved by the Company (or the designated broker), designate a third party who, upon the death of the Participant, will thereafter be entitled to exercise the Option or SAR and receive the Common Stock or other consideration resulting from such exercise.  In the absence of such a designation, upon the death of the Participant, the executor or administrator of the Participant’s estate will be entitled to exercise the Option or SAR and receive the Common Stock or other consideration resulting from such exercise.  However, the Company may prohibit designation of a beneficiary at any time, including due to any conclusion by the Company that such designation would be inconsistent with the provisions of applicable laws.

 

(f)                                   Vesting Generally.  The total number of shares of Common Stock subject to an Option or SAR may vest and therefore become exercisable in periodic installments that may or may not be equal.  The Option or SAR may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of performance goals or other criteria) as the Board may deem appropriate.  The vesting provisions of individual Options or SARs may vary.  The provisions of this Section 5(f) are subject to any Option or SAR provisions governing the minimum number of shares of Common Stock as to which an Option or SAR may be exercised.

 

(g)                                 Termination of Continuous Service.  Except as otherwise provided in the applicable Stock Award Agreement or other agreement between the Participant and the Company, if a Participant’s Continuous Service terminates (other than for Cause and other than upon the Participant’s death or Disability), the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Stock Award as of the date of termination of Continuous Service) within the period of time ending on the earlier of (i) the date three months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the applicable Stock Award Agreement, which period will not be less than 30 days if necessary to comply with applicable laws unless such termination is for Cause) and (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR (as applicable) within the applicable time frame, the Option or SAR will terminate.

 

(h)                                 Extension of Termination Date.  If the exercise of an Option or SAR following the termination of the Participant’s Continuous Service (other than for Cause and other than upon the Participant’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option or SAR will terminate on the earlier of (i) the expiration of a total period of time (that need not be consecutive) equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the exercise of the Option or SAR would not be in violation of such registration requirements, and (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.  In addition, unless otherwise provided in a Participant’s 

 

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Stock Award Agreement, if the sale of any Common Stock received upon exercise of an Option or SAR following the termination of the Participant’s Continuous Service (other than for Cause) would violate the Company’s insider trading policy, then the Option or SAR will terminate on the earlier of (i) the expiration of the period of time (that need not be consecutive) equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the sale of the Common Stock received upon exercise of the Option or SAR would not be in violation of the Company’s insider trading policy, and (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.

 

(i)                                    Disability of Participant.  Except as otherwise provided in the applicable Stock Award Agreement or other agreement between the Participant and the Company, if a Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date 12 months following such termination of Continuous Service (or such longer or shorter period specified in the Stock Award Agreement, which period will not be less than six months if necessary to comply with applicable laws unless such termination is for Cause), and (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR within the applicable time frame, the Option or SAR (as applicable) will terminate.

 

(j)                                    Death of Participant.  Except as otherwise provided in the applicable Stock Award Agreement or other agreement between the Participant and the Company, if (i) a Participant’s Continuous Service terminates as a result of the Participant’s death, or (ii) the Participant dies within the period (if any) specified in the Stock Award Agreement for exercisability after the termination of the Participant’s Continuous Service (for a reason other than death), then the Option or SAR may be exercised (to the extent the Participant was entitled to exercise such Option or SAR as of the date of death) by the Participant’s estate, by a person who acquired the right to exercise the Option or SAR by bequest or inheritance or by a person designated to exercise the Option or SAR upon the Participant’s death, but only within the period ending on the earlier of (i) the date 18 months following the date of death (or such longer or shorter period specified in the Stock Award Agreement, which period will not be less than six months if necessary to comply with applicable laws unless such termination is for Cause), and (ii) the expiration of the term of such Option or SAR as set forth in the Stock Award Agreement.  If, after the Participant’s death, the Option or SAR is not exercised within the applicable time frame, the Option or SAR (as applicable) will terminate.

 

(k)                                 Termination for Cause.  Except as explicitly provided otherwise in a Participant’s Stock Award Agreement or other individual written agreement between the Company or any Affiliate and the Participant, if a Participant’s Continuous Service is terminated for Cause, the Option or SAR will terminate immediately upon such Participant’s termination of Continuous Service, and the Participant will be prohibited from exercising his or her Option or SAR from and after the date of such termination of Continuous Service.

 

(l)                                    Non-Exempt Employees.  If an Option or SAR is granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, the Option or SAR will not be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Option or SAR (although the Stock Award may vest prior to such date).  Consistent with the provisions of the Worker Economic Opportunity Act, (i) if such non-exempt Employee dies or suffers a Disability, (ii) upon a Corporate Transaction in which such Option or SAR is not assumed, continued, 

 

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or substituted, (iii) upon a Change in Control, or (iv) upon the Participant’s retirement (as such term may be defined in the Participant’s Stock Award Agreement, in another agreement between the Participant and the Company, or, if no such definition, in accordance with the Company’s then current employment policies and guidelines), the vested portion of any Options and SARs may be exercised earlier than six months following the date of grant.  The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will be exempt from his or her regular rate of pay. To the extent permitted and/or required for compliance with the Worker Economic Opportunity Act to ensure that any income derived by a non-exempt employee in connection with the exercise, vesting or issuance of any shares under any other Stock Award will be exempt from the employee’s regular rate of pay, the provisions of this Section 5(l) will apply to all Stock Awards and are hereby incorporated by reference into such Stock Award Agreements.

 

(m)                             Early Exercise of Options.  An Option may, but need not, include a provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option.  Subject to the “Repurchase Limitation” in Section 8(l), any unvested shares of Common Stock so purchased may be subject to a repurchase right in favor of the Company or to any other restriction the Board determines to be appropriate.  Provided that the “Repurchase Limitation” in Section 8(l) is not violated, the Company will not be required to exercise its repurchase right until at least six months (or such longer or shorter period of time required to avoid classification of the Option as a liability for financial accounting purposes) have elapsed following exercise of the Option unless the Board otherwise specifically provides in the Option Agreement.

 

(n)                                 Right of Repurchase.  Subject to the “Repurchase Limitation” in Section 8(l), the Option or SAR may include a provision whereby the Company may elect to repurchase all or any part of the vested shares of Common Stock acquired by the Participant pursuant to the exercise of the Option or SAR.

 

(o)                                 Right of First Refusal.  The Option or SAR may include a provision whereby the Company may elect to exercise a right of first refusal following receipt of notice from the Participant of the intent to transfer all or any part of the shares of Common Stock received upon the exercise of the Option or SAR.  Such right of first refusal will be subject to the “Repurchase Limitation” in Section 8(l).  Except as expressly provided in this Section 5(o) or in the Stock Award Agreement, such right of first refusal will otherwise comply with any applicable provisions of the bylaws of the Company.

 

6.                                      PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS AND SARS.

 

(a)                                 Restricted Stock Awards.  Each Restricted Stock Award Agreement will be in such form and will contain such terms and conditions as the Board will deem appropriate.  To the extent consistent with the Company’s bylaws, at the Board’s election, shares of Common Stock underlying a Restricted Stock Award may be (i) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (ii) evidenced by a certificate, which certificate will be held in such form and manner as determined by the Board.  The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical.  Each Restricted Stock Award Agreement will conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

 

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(i)                                    Consideration. A Restricted Stock Award may be awarded in consideration for (A) cash, check, bank draft or money order payable to the Company, (B) past services to the Company or an Affiliate, or (C) any other form of legal consideration (including future services) that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

 

(ii)                                Vesting.  Subject to the “Repurchase Limitation” in Section 8(l), shares of Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board.

 

(iii)                            Termination of Participant’s Continuous Service.  If a Participant’s Continuous Service terminates, the Company may receive through a forfeiture condition or a repurchase right, any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.

 

(iv)                             Transferability.  Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement will be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board will determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement.

 

(v)                                 Dividends.  A Restricted Stock Award Agreement may provide that any dividends paid on Restricted Stock will be subject to the same vesting and forfeiture restrictions as apply to the shares subject to the Restricted Stock Award to which they relate.

 

(b)                                 Restricted Stock Unit Awards.  Each Restricted Stock Unit Award Agreement will be in such form and will contain such terms and conditions as the will Board deem appropriate.  The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical.  Each Restricted Stock Unit Award Agreement will conform to (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:

 

(i)                                    Consideration.  At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award.  The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

 

(ii)                                Vesting.  At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions on or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.

 

(iii)                            Payment.  A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.

 

(iv)                             Additional Restrictions.  At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the 

 

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delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.

 

(v)                                 Dividend Equivalents.  Dividend equivalents may be credited in respect of shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.  At the sole discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board.  Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all of the same terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate.

 

(vi)                             Termination of Participant’s Continuous Service.  Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.

 

(vii)                         Compliance with Section 409A of the Code.   Notwithstanding anything to the contrary set forth herein, any Restricted Stock Unit Award granted under the Plan that is not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Restricted Stock Unit Award will comply with the requirements of Section 409A of the Code.  Such restrictions, if any, shall be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing such Restricted Stock Unit Award.  For example, such restrictions may include, without limitation, a requirement that any Common Stock that is to be issued in a year following the year in which the Restricted Stock Unit Award vests must be issued in accordance with a fixed pre-determined schedule.

 

(c)                                  Other Stock Awards.  Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common Stock, including the appreciation in value thereof (e.g., options or stock rights with an exercise price or strike price less than 100% of the Fair Market Value of the Common Stock at the time of grant) may be granted either alone or in addition to Stock Awards provided for under Section 5 and the preceding provisions of this Section 6.  Subject to the provisions of the Plan, the Board will have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards.

 

7.                                      COVENANTS OF THE COMPANY.

 

(a)                                 Availability of Shares.  The Company will keep available at all times the number of shares of Common Stock reasonably required to satisfy then-outstanding Stock Awards.

 

(b)                                 Securities Law Compliance.  The Company will seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking will not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after reasonable efforts and at a reasonable cost, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company will be relieved from any liability for 

 

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failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. A Participant will not be eligible for the grant of a Stock Award or the subsequent issuance of cash or Common Stock pursuant to the Stock Award if such grant or issuance would be in violation of any applicable securities law.

 

(c)                                  No Obligation to Notify or Minimize Taxes.  The Company will have no duty or obligation to any Participant to advise such holder as to the time or manner of exercising such Stock Award.  Furthermore, the Company will have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised.  The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award.

 

8.                                      MISCELLANEOUS.

 

(a)                                 Use of Proceeds from Sales of Common Stock.  Proceeds from the sale of shares of Common Stock pursuant to Stock Awards will constitute general funds of the Company.

 

(b)                                 Corporate Action Constituting Grant of Stock Awards.  Corporate action constituting a grant by the Company of a Stock Award to any Participant will be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by, the Participant.  In the event that the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those in the Stock Award Agreement or related grant documents as a result of a clerical error in the papering of the Stock Award Agreement or related grant documents, the corporate records will control and the Participant will have no legally binding right to the incorrect term in the Stock Award Agreement or related grant documents.

 

(c)                                  Stockholder Rights.  No Participant will be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to a Stock Award unless and until (i) such Participant has satisfied all requirements for exercise of, or the issuance of shares of Common Stock under, the Stock Award pursuant to its terms, and (ii) the issuance of the Common Stock subject to the Stock Award has been entered into the books and records of the Company.

 

(d)                                 No Employment or Other Service Rights.  Nothing in the Plan, any Stock Award Agreement or any other instrument executed thereunder or in connection with any Stock Award granted pursuant thereto will confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or will affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

 

(e)                                  Change in Time Commitment.  In the event a Participant’s regular level of time commitment in the performance of his or her services for the Company and any Affiliates is reduced (for example, and without limitation, if the Participant is an Employee of the Company and the Employee has a change in status from a full-time Employee to a part-time Employee or takes an extended leave of absence) after the date of grant of any Stock Award to the Participant, the Board has the right in its sole 

 

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discretion to (x) make a corresponding reduction in the number of shares subject to any portion of such Stock Award that is scheduled to vest or become payable after the date of such change in time commitment, and (y) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Stock Award. In the event of any such reduction, the Participant will have no right with respect to any portion of the Stock Award that is so reduced or extended.

 

(f)                                   Incentive Stock Option Limitations.  To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and any Affiliates) exceeds $100,000 (or such other limit established in the Code) or otherwise does not comply with the rules governing Incentive Stock Options, the Options or portions thereof that exceed such limit (according to the order in which they were granted) or otherwise do not comply with such rules will be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s).

 

(g)                                 Investment Assurances.  The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that the Participant is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock.  The foregoing requirements, and any assurances given pursuant to such requirements, will be inoperative if (A) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (B) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws.  The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock.

 

(h)                                 Withholding Obligations.  Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the following means or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid classification of the Stock Award as a liability for financial accounting purposes); (iii) withholding cash from a Stock Award settled in cash; (iv) withholding payment from any amounts otherwise payable to the Participant; or (v) by such other method as may be set forth in the Stock Award Agreement.

 

(i)                                    Electronic Delivery.  Any reference herein to a “written” agreement or document will include any agreement or document delivered electronically or posted on the Company’s intranet (or other shared electronic medium controlled by the Company to which the Participant has access).

 

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(j)                                    Deferrals.  To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Stock Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants.  Deferrals by Participants will be made in accordance with Section 409A of the Code.  Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee or otherwise providing services to the Company.  The Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous Service, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.

 

(k)                                 Compliance with Section 409A of the Code.  To the extent that the Board determines that any Stock Award granted hereunder is subject to Section 409A of the Code, the Stock Award Agreement evidencing such Stock Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code.  To the extent applicable, the Plan and Stock Award Agreements shall be interpreted in accordance with Section 409A of the Code. Notwithstanding anything to the contrary in the Plan (and unless the Stock Award Agreement specifically provides otherwise), if the shares of Common Stock are publicly traded, and if a Participant holding a Stock Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or payment of any amount that is due because of a “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) will be issued or paid before the date that is six months following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s death, unless such distribution or payment can be made in a manner that complies with Section 409A of the Code, and any amounts so deferred will be paid in a lump sum on the day after such six month period elapses, with the balance paid thereafter on the original schedule.

 

(l)                                    Repurchase Limitation.  The terms of any repurchase right will be specified in the Stock Award Agreement.  The repurchase price for vested shares of Common Stock will be the Fair Market Value of the shares of Common Stock on the date of repurchase.  The repurchase price for unvested shares of Common Stock will be the lower of (i) the Fair Market Value of the shares of Common Stock on the date of repurchase or (ii) their original purchase price.  However, the Company will not exercise its repurchase right until at least six months (or such longer or shorter period of time necessary to avoid classification of the Stock Award as a liability for financial accounting purposes) have elapsed following delivery of shares of Common Stock subject to the Stock Award, unless otherwise specifically provided by the Board.

 

9.                                      ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER CORPORATE EVENTS.

 

(a)                                 Capitalization Adjustments.  In the event of a Capitalization Adjustment, the Board will appropriately and  proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options pursuant to Section 3(c), and (iii) the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards.  The Board will make such adjustments, and its determination will be final, binding and conclusive.

 

(b)                                 Dissolution or Liquidation.  Except as otherwise provided in the Stock Award Agreement, in the event of a dissolution or liquidation of the Company, all outstanding Stock Awards

 

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(other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) will terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion.

 

(c)                                  Corporate Transaction.   The following provisions will apply to Stock Awards in the event of a Corporate Transaction unless otherwise provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Board at the time of grant of a Stock Award.  In the event of a Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board may take one or more of the following actions with respect to Stock Awards, contingent upon the closing or completion of the Corporate Transaction:

 

(i)                                    arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume or continue the Stock Award or to substitute a similar stock award for the Stock Award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction);

 

(ii)                                arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to the Stock Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company);

 

(iii)                            accelerate the vesting, in whole or in part, of the Stock Award (and, if applicable, the time at which the Stock Award may be exercised) to a date prior to the effective time of such Corporate Transaction as the Board determines (or, if the Board does not determine such a date, to the date that is five days prior to the effective date of the Corporate Transaction), with such Stock Award terminating if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction; provided, however, that the Board may require Participants to complete and deliver to the Company a notice of exercise before the effective date of a Corporate Transaction, which exercise is contingent upon the effectiveness of such Corporate Transaction;

 

(iv)                             arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Company with respect to the Stock Award;

 

(v)                                 cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective time of the Corporate Transaction, in exchange for such cash consideration as the Board, in its sole discretion, may consider appropriate;

 

(vi)                             cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective time of the Corporate Transaction, without the payment of consideration; and

 

(vii)                         make a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the Participant would have received upon the exercise of

 

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the Stock Award immediately prior to the effective time of the Corporate Transaction, over (B) any exercise price payable by such holder in connection with such exercise.  For clarity, this payment may be zero ($0) if the value of the property is equal to or less than the exercise price.  Payments under this provision may be delayed to the same extent that payment of consideration to the holders of the Company’s Common Stock in connection with the Corporate Transaction is delayed as a result of escrows, earn outs, holdbacks or any other contingencies.

 

The Board need not take the same action or actions with respect to all Stock Awards or portions thereof or with respect to all Participants.  The Board may take different actions with respect to the vested and unvested portions of a Stock Award.

 

(d)                                 Change in Control.  A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration will occur.

 

10.                               PLAN TERM; EARLIER TERMINATION OR SUSPENSION OF THE PLAN.

 

(a)                                 Plan Term.  The Board may suspend or terminate the Plan at any time.  Unless terminated sooner by the Board, the Plan will automatically terminate on the day before the 10th anniversary of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved by the stockholders of the Company.  No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

 

(b)                                 No Impairment of Rights.  Suspension or termination of the Plan will not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant or as otherwise permitted in the Plan.

 

11.                               EFFECTIVE DATE OF PLAN.

 

This Plan will become effective on the Effective Date.

 

12.                               CHOICE OF LAW.

 

The laws of the State of Delaware will govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.

 

13.                               DEFINITIONS.   As used in the Plan, the following definitions will apply to the capitalized terms indicated below:

 

(a)                                 “Affiliate” means, at the time of determination, any “parent” or “majority-owned subsidiary” of the Company, as such terms are defined in Rule 405.  The Board will have the authority to determine the time or times at which “parent” or “majority-owned subsidiary” status is determined within the foregoing definition.

 

(b)                                 “Board” means the Board of Directors of the Company.

 

(c)                                  “Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization,

 

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recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, reverse stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure, or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company will not be treated as a Capitalization Adjustment.

 

(d)                                 “Cause” will have the meaning ascribed to such term in any written agreement between the Participant and the Company defining such term and, in the absence of such agreement, such term means, with respect to a Participant, the occurrence of any of the following events:  (i) such Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant’s attempted commission of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or of any statutory duty owed to the Company; (iv) such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) such Participant’s gross misconduct. The determination that a termination of the Participant’s Continuous Service is either for Cause or without Cause will be made by the Company, in its sole discretion.  Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for the purposes of outstanding Stock Awards held by such Participant will have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose.

 

(e)                                  “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

 

(i)                                    any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.  Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account of the acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (C) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control will be deemed to occur;

 

(ii)                                there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same

 

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proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction; or

 

(iii)                            there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than 50% of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition.

 

Notwithstanding the foregoing definition or any other provision of this Plan, (A) the term Change in Control will not include (i) a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company or (ii) to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant will supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition will apply.

 

(f)                                   “Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.

 

(g)                                 “Committee” means a committee of one or more Directors to whom authority has been delegated by the Board in accordance with Section 2(c).

 

(h)                                 “Common Stock” means the Class A Voting Common Stock of the Company.

 

(i)                                    “Company” means Liquidia Technologies, Inc., a Delaware corporation.

 

(j)                                    “Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services.  However, service solely as a Director, or payment of a fee for such service, will not cause a Director to be considered a “Consultant” for purposes of the Plan.

 

(k)                                 “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Director or Consultant or a change in the Entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, will not terminate a Participant’s Continuous Service; provided, however, that if the Entity for which a Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board in its sole discretion, such Participant’s Continuous Service will be considered to have terminated on the date such Entity ceases to qualify as an Affiliate.  For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or to a Director will not constitute an interruption of Continuous Service.  To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service will be considered interrupted in the

 

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case of (i) any leave of absence approved by the Board or chief executive officer, including sick leave, military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their successors.  Notwithstanding the foregoing, a leave of absence will be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.

 

(l)                                    “Corporate Transaction” means the consummation, in a single transaction or in a series of related transactions, of any one or more of the following events:

 

(i)                                    a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;

 

(ii)                                a sale or other disposition of at least 50% of the outstanding securities of the Company;

 

(iii)                            a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

 

(iv)                             a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

 

(m)                             “Director” means a member of the Board.

 

(n)                                 “Disability” means, with respect to a Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than twelve (12) months as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and will be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

 

(o)                                 “Effective Date” means the effective date of this Plan, which is the earlier of (i) the date that this Plan is first approved by the Company’s stockholders, and (ii) the date this Plan is adopted by the Board.

 

(p)                                 “Employee” means any person employed by the Company or an Affiliate.  However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee” for purposes of the Plan.

 

(q)                                 “Entity” means a corporation, partnership, limited liability company or other entity.

 

(r)                                  “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(s)                                   “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” will not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the

 

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Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities.

 

(t)                                    “Fair Market Value” means, as of any date, the value of the Common Stock determined by the Board in compliance with Section 409A of the Code or, in the case of an Incentive Stock Option, in compliance with Section 422 of the Code.

 

(u)                                 “Incentive Stock Option” means an option granted pursuant to Section 5 of the Plan that is intended to be, and that qualifies as, an “incentive stock option” within the meaning of Section 422 of the Code.

 

(v)                                 “Nonstatutory Stock Option” means an option granted pursuant to Section 5 of the Plan that does not qualify as an Incentive Stock Option.

 

(w)                               “Officer” means any person designated by the Company as an officer.

 

(x)                                 “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to the Plan.

 

(y)                                 “Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an Option grant.  Each Option Agreement will be subject to the terms and conditions of the Plan.

 

(z)                                  “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

 

(aa)                          “Other Stock Award” means an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 6(c).

 

(bb)                          “Other Stock Award Agreement” means a written agreement between the Company and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant.  Each Other Stock Award Agreement will be subject to the terms and conditions of the Plan.

 

(cc)                            “Own,” “Owned,” “Owner,” “Ownership”  A person or Entity will be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.

 

(dd)                          “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.

 

(ee)                            “Plan” means this 2016 Equity Incentive Plan.

 

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(ff)                              “Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(a).

 

(gg)                          “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant.  Each Restricted Stock Award Agreement will be subject to the terms and conditions of the Plan.

 

(hh)                          “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(b).

 

(ii)                                “Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant.  Each Restricted Stock Unit Award Agreement will be subject to the terms and conditions of the Plan.

 

(jj)                                “Rule 405” means Rule 405 promulgated under the Securities Act.

 

(kk)                          “Rule 701” means Rule 701 promulgated under the Securities Act.

 

(ll)                                “Securities Act” means the Securities Act of 1933, as amended.

 

(mm)                  “Stock Appreciation Right” or “SAR” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 5.

 

(nn)                          “Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant.  Each Stock Appreciation Right Agreement will be subject to the terms and conditions of the Plan.

 

(oo)                          “Stock Award” means any right to receive Common Stock granted under the Plan, including an Incentive Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation Right or any Other Stock Award.

 

(pp)                          “Stock Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of a Stock Award grant.  Each Stock Award Agreement will be subject to the terms and conditions of the Plan.

 

(qq)                          “Subsidiary” means, with respect to the Company, (i) any corporation of which more than 50% of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation will have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than 50%.

 

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(rr)                            “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Affiliate.

 

22Exhibit 10.5

 

[Execution Version]

 

LIQUIDIA TECHNOLOGIES, INC.

 

LOAN AND SECURITY AGREEMENT

 

 

This LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of January 6, 2016, by and between PACIFIC WESTERN BANK, a California state chartered bank (“Bank”) and LIQUIDIA TECHNOLOGIES, INC., a Delaware corporation (“Borrower”).

 

RECITALS

 

Borrower wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth the terms on which Bank will advance credit to Borrower and Borrower will repay the amounts owing to Bank.

 

AGREEMENT

 

The parties agree as follows:

 

1.                                      DEFINITIONS AND CONSTRUCTION.

 

1.1                               Definitions. As used in this Agreement, all capitalized terms shall have the definitions set forth on Exhibit A. Any term used in the Code and not defined herein shall have the meaning given to the term in the Code.

 

1.2                               Accounting Terms. Any accounting term not specifically defined on Exhibit A shall be construed in accordance with GAAP and all calculations shall be made in accordance with GAAP (except for non-compliance with FAS 123R in monthly reporting). The term “financial statements” shall include the accompanying notes and schedules.

 

2.                                      LOAN AND TERMS OF PAYMENT.

 

2.1                               Credit Extensions.

 

(a)                                 Promise to Pay. Borrower promises to pay to Bank, in lawful money of the United States of America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof.

 

(b)                                 Term Loan.

 

(i)                          Subject to and upon the terms and conditions of this Agreement, Bank agrees to make one (1) or more term loans to Borrower in an aggregate principal amount not to exceed $3,000,000 (each a “Term Loan”, and, collectively, the “Term Loans”). Borrower may request Term Loans at any time from the date hereof through the Availability End Date, provided that each Term Loan so requested shall be in the principal amount of $250,000 or an integral multiple thereof. The proceeds of the Term Loans shall be used for general working capital purposes and for capital expenditures.

 

(ii)                      Interest shall accrue from the date of each Term Loan at the rate specified in Section 2.3(a) and, prior to the Availability End Date for the applicable Term Loan, shall be payable monthly beginning on the 18th day of the month next following such Term Loan and continuing on the same day of each month thereafter. Any Term Loans that

 

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are outstanding on the Availability End Date shall be payable in thirty (30) equal monthly installments of principal, plus all accrued interest, beginning on August 6, 2017, and continuing on the same day of each month thereafter through the Term Loan Maturity Date, at which time all amounts due in connection with the Term Loans and any other amounts due under this Agreement shall be immediately due and payable. Term Loans, once repaid, may not be reborrowed. Borrower may prepay any Term Loan without penalty or premium.

 

(iii)                  When Borrower desires to obtain a Term Loan, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission to be received no later than 3:30 p.m. Eastern time on the Business Day prior to the date on which the Term Loan is to be made. Such notice shall be substantially in the form of Exhibit C. The notice shall be signed by an Authorized Officer.

 

(c)                                          Usage of Credit Card Services Under the Credit Card Line.

 

(i)                          Usage Period. Subject to and upon the terms and conditions of this Agreement, at any time from the Closing Date through the Credit Card Maturity Date, Borrower may use the Credit Card Services (as defined below) in amounts and upon terms as provided in Section 2.1(c)(ii) below.

 

(ii)                      Credit Card Services. Subject to and upon the terms and conditions of this Agreement, Borrower may request corporate credit cards and standard and e-commerce merchant account services from Bank (collectively, the “Credit Card Services”). The aggregate limit of the corporate credit cards and merchant credit card processing reserves shall not exceed the Credit Card Line. The terms and conditions (including repayment and fees) of such Credit Card Services shall be subject to the terms and conditions of Bank’s standard forms of application and agreement for the Credit Card Services, which Borrower hereby agrees to execute.

 

(iii)                  Collateralization of Obligations Extending Beyond Maturity. If Borrower has not cash secured its obligations with respect to any Credit Card Services by the Credit Card Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates or accounts), shall automatically secure such obligations to the extent of the then continuing or outstanding Credit Card Services. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the applicable Credit Card Services are outstanding or continue.

 

2.2                               [Reserved].

 

2.3                               Interest Rates, Payments, and Calculations.

 

(a)                                 Interest Rates. Except as set forth in Section 2.3(b), the Term Loans shall bear interest, on the outstanding daily balance thereof, at a rate equal to (i) 3.75% for

 

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the period commencing on the Closing Date and ending on the Availability End Date, and (ii) 5.00% commencing on the day immediately following the Availability End Date.

 

(b)                                 Late Fee; Default Rate. If any payment is not made within fifteen (15) days after the date such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i) 5% of the amount of such unpaid amount or (ii) the maximum amount permitted to be charged under applicable law. All Obligations shall bear interest, from and after the occurrence and during the continuance of an Event of Default, at a rate equal to five (5) percentage points above the interest rate applicable immediately prior to the occurrence of the Event of Default.

 

(c)                                  Payments. Bank shall, at its option, charge interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts. Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder.

 

(d)                                 Computation. All interest chargeable under the Loan Documents shall be computed on the basis of a three hundred sixty (360)-day year for the actual number of days elapsed.

 

2.4                               Crediting Payments. Other than any time after the occurrence and during the continuation of an Event of Default, Bank shall credit a wire transfer of funds, check or other item of payment to such deposit account or Obligation as Borrower specifies, except that, to the extent Borrower uses the Term Loans to purchase Collateral, Borrower’s repayment of the Term Loans shall apply on a “first-in-first-out” basis so that the portion of the Term Loans used to purchase a particular item of Collateral shall be paid in the chronological order Borrower purchased the Collateral. After the occurrence and during the continuance of an Event of Default, Bank shall have the right, in its sole discretion, to immediately apply any wire transfer of funds, check, or other item of payment Bank may receive to conditionally reduce Obligations, but such application of funds shall not be considered a payment on account unless such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when presented for payment. Notwithstanding anything to the contrary contained herein, any wire transfer or payment received by Bank after 5:30 p.m. Eastern time shall be deemed to have been received by Bank as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents would otherwise be due (except by reason of acceleration) on a date that is not a Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period of such extension.

 

2.5                               Fees. Borrower shall pay to Bank the following:

 

(a)                                 Facility Fee. On or before the Closing Date, a fee equal to $15,000 ($5,000 of which was paid upon delivery of that certain Expression of Interest dated August 20, 2015), which shall be nonrefundable;

 

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(b)                                 Success Fee. Upon the occurrence of a Liquidity Event, a one-time success fee equal to $100,000, which shall be nonrefundable. This Section 2.5(b) shall survive any termination of this Agreement.

 

(c)                                  Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date and, after the Closing Date, all Bank Expenses, as and when they become due.

 

2.6                               Term. This Agreement shall become effective on the Closing Date and, subject to Section 12.7, shall continue in full force and effect for so long as any Obligations (other than inchoate indemnity obligations) remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement. Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default.

 

3.                                      CONDITIONS OF LOANS.

 

3.1                               Conditions Precedent to Closing. The agreement of Bank to enter into this Agreement on the Closing Date is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, each the following items and completed each of the following requirements:

 

(a)                                 this Agreement;

 

(b)                                 an officer’s certificate of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Agreement;

 

(c)                                  a financing statement (Form UCC-1);

 

(d)                                 payment of the fees and Bank Expenses then due specified in Section 2.5, which may be debited from any of Borrower’s accounts with Bank;

 

(e)                                  current SOS Reports indicating that, except for Permitted Liens, there are no other security interests or Liens of record in the Collateral;

 

(f)                                   current financial statements, including audited statements (or such other level required by the Investment Agreement) for Borrower’s most recently ended fiscal year, together with an unqualified opinion (or an opinion qualified only for going concern so long as Borrower’s investors provide additional equity as needed), company prepared consolidated and consolidating balance sheets, income statements and statements of cash flows for the most recently ended month in accordance with Section 6.2, and such other updated financial information as Bank may reasonably request;

 

(g)                                 current Compliance Certificate in accordance with Section 6.2;

 

(h)                                 a Borrower Information Certificate;

 

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(i)                                    evidence satisfactory to Bank that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and additional insured clauses or endorsements in favor of Bank;

 

(j)                                    such other documents or certificates, and completion of such other matters, as Bank may reasonably request; and

 

(k)                                 Borrower shall have opened and funded not less than $50,000 in deposit accounts held with Bank.

 

3.2                                       Conditions Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension, is contingent upon Borrower’s compliance with Section 3.1 above and is further subject to the following conditions:

 

(a)                                 timely receipt by Bank of the Loan Advance/Paydown Request Form as provided in Section 2.1;

 

(b)                                 Borrower shall have transferred substantially all of its Cash assets into operating accounts held with Bank and shall otherwise be in compliance with Section 6.6 hereof;

 

(c)                                  in Bank’s sole discretion, there has not been a Material Adverse Effect; and

 

(d)                                 the representations and warranties contained in Article 5 shall be true and correct in all material respects on and as of the date of such Loan Advance/Paydown Request Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date). The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2.

 

4.                                      CREATION OF SECURITY INTEREST.

 

4.1                               Grant of Security Interest. Borrower grants and pledges to Bank a continuing security interest in the Collateral to secure prompt repayment of any and all Obligations and to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents. Except for Permitted Liens or as disclosed in the Schedule, such security interest constitutes a valid, first priority security interest in the presently existing Collateral and will constitute a valid, first priority security interest in later-acquired Collateral. Borrower also hereby agrees not to sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber any of its Intellectual Property, except for any Permitted Transfers. Notwithstanding any termination of this Agreement or of any filings undertaken related to Bank’s rights under the Code, Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations (other than inchoate indemnity obligations) are outstanding.

 

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4.2                               Perfection of Security Interest. Borrower authorizes Bank to file at any time financing statements, continuation statements, and amendments thereto that (a) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder, and (b) contain any other information required by the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, including whether Borrower is an organization, the type of organization and any organizational identification number issued to Borrower, if applicable. Borrower shall have possession of the Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to perfect its security interest by possession in addition to the filing of a financing statement. Where Collateral is in possession of a third-party bailee, Borrower shall take such steps as Bank reasonably requests for Bank to (x) subject to Section 7.11 below, obtain an acknowledgment, in form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank, and (y) obtain “control” of any Collateral consisting of investment property, deposit accounts, letter-of-credit rights or electronic chattel paper (as such items and the term “control” are defined in Revised Article 9 of the Code) by causing the securities intermediary or depositary institution or issuing bank to execute a control agreement in form and substance satisfactory to Bank. Borrower will not create any chattel paper without placing a legend on the chattel paper acceptable to Bank indicating that Bank has a security interest in the chattel paper. Borrower from time to time may deposit with Bank specific cash collateral to secure specific Obligations; Borrower authorizes Bank to hold such specific balances in pledge and to decline to honor any drafts thereon or any request by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the specific Obligations are outstanding. Borrower shall take such other actions as Bank requests to perfect its security interests granted under this Agreement.

 

5.                                      REPRESENTATIONS AND WARRANTIES.

 

Borrower represents and warrants as follows:

 

5.1                               Due Organization and Qualification. Borrower and each Subsidiary is duly existing under the laws of the state in which it is organized and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect.

 

5.2                               Due Authorization; No Conflict. The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s Certificate of Incorporation or Bylaws, nor will they constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement by which it is bound, including that certain Amended and Restated License Agreement dated December 15, 2008 by and between the University of North Carolina at Chapel Hill and Borrower, except to the extent such default would not reasonably be expected to cause a Material Adverse Effect.

 

5.3                               Collateral. Borrower has rights in or the power to transfer the Collateral, and its title to the Collateral is free and clear of Liens, adverse claims, and restrictions on transfer

 

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or pledge except for Permitted Liens. Other than movable items of personal property such as laptop computers, all Collateral having an aggregate book value in excess of $100,000 is located solely in the Collateral States. All Inventory is in all material respects of good and merchantable quality, free from all material defects, except for Inventory for which adequate reserves have been made. Except as set forth in the Schedule, none of Borrower’s Cash is maintained or invested with a Person other than Bank or Bank’s Affiliates.

 

5.4                               Intellectual Property. Borrower’s Intellectual Property is set forth on Schedule 5.4 hereto. Borrower is the licensee, joint owner or sole owner of the Intellectual Property, as set forth on Schedule 5.4, except for licenses granted by Borrower in the ordinary course of business. To Borrower’s knowledge, each of the Copyrights, Patents and Trademarks created or purchased by Borrower is valid and enforceable, and no part of the Intellectual Property created or purchased by Borrower has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower that any part of the Intellectual Property created or purchased by Borrower violates the rights of any third party except to the extent such claim would not reasonably be expected to cause a Material Adverse Effect.

 

5.5                               Name; Location of Chief Executive Office. Except as disclosed in the Schedule, Borrower has not done business under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement. The chief executive office of Borrower is located at the address indicated in Article 10 hereof.

 

5.6                               Litigation. Except as set forth in the Schedule, there are no actions or proceedings pending by or against Borrower or any Subsidiary before any court or administrative agency in which a likely adverse decision would reasonably be expected to have a Material Adverse Effect.

 

5.7                               No Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in all material respects Borrower’s consolidated and consolidating financial condition as of the date thereof and Borrower’s consolidated and consolidating results of operations for the period then ended. There has not been a material adverse change in the consolidated or in the consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank.

 

5.8                               Solvency, Payment of Debts. Borrower is able to pay its debts (including trade debts) as they mature; the fair saleable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital after the transactions contemplated by this Agreement.

 

5.9                               Compliance with Laws and Regulations. Borrower and each Subsidiary have met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s incurring any liability that could have a Material Adverse Effect. Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940.

 

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Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which would reasonably be expected to have a Material Adverse Effect. Borrower and each Subsidiary have filed or caused to be filed all tax returns required to be filed and have paid, or have made adequate provision for the payment of, all taxes reflected therein except those being contested in good faith with adequate reserves under GAAP or where the failure to file such returns or pay such taxes would not reasonably be expected to have a Material Adverse Effect.

 

5.10                        Subsidiaries. Borrower does not own any stock, partnership interest or other equity securities of any Person, except for Permitted Investments.

 

5.11                        Government Consents. Borrower and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of Borrower’s business as currently conducted, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect.

 

5.12                        Inbound Licenses. Except as disclosed on the Schedule, Borrower is not a party to, nor is bound by, any material license or other agreement important for the conduct of Borrower’s business that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property important for the conduct of Borrower’s business, other than this Agreement or the other Loan Documents.

 

5.13                        Full Disclosure. No representation, warranty or other statement made by Borrower in any certificate or written statement furnished to Bank taken together with all such certificates and written statements furnished to Bank contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained in such certificates or statements not misleading in light of the circumstances in which they were made, it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not to be viewed as facts and that actual results during the period or periods covered by any such projections and forecasts may differ from the projected or forecasted results.

 

6.                                      AFFIRMATIVE COVENANTS.

 

Borrower covenants that, until payment in full of all outstanding Obligations (other than inchoate indemnity obligations) and for so long as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all of the following:

 

6.1                               Good Standing and Government Compliance. Borrower shall maintain its and each of its Subsidiaries’ corporate existence and good standing in the respective states of formation, shall maintain qualification and good standing in each other jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect, and shall furnish to Bank the organizational identification number issued to Borrower by the authorities of the state in which Borrower is organized, if applicable. Borrower shall meet, and shall cause

 

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each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject and shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply with which would reasonably be expected to have a Material Adverse Effect.

 

6.2                               Financial Statements, Reports, Certificates. Borrower shall deliver to Bank: (a) as soon as available, but in any event within thirty (30) days after the end of each calendar month, a company prepared consolidated and consolidating balance sheet, income statement, and statement of cash flows covering Borrower’s operations during such period, in a form reasonably acceptable to Bank and certified by a Responsible Officer; (b) as soon as available, but in any event: (i) on or prior to November 15, 2015 with respect to the fiscal year of Borrower ended December 31, 2014 and (ii) within one hundred eighty (180) days after the end of each fiscal year of Borrower thereafter, audited (or such other level as is required by the Investment Agreement) consolidated and consolidating financial statements of Borrower prepared in accordance with GAAP, consistently applied, together with an opinion which is either unqualified, qualified only for going concern so long as Borrower’s investors provide additional equity as needed or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (c) an annual budget approved by Borrower’s board of directors as soon as available but not later than January 15th of each year during the term of this Agreement; (d) if applicable, copies of all statements, reports and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; (e) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could reasonably be expected to result in damages or costs to Borrower or any Subsidiary of $250,000 or more; (f) promptly upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s management control systems; and (g) such budgets, sales projections, operating plans or other financial information generally prepared by Borrower in the ordinary course of business as Bank may reasonably request from time to time.

 

(x)                                 Within thirty (30) days after the last day of each month, Borrower shall deliver to Bank with the monthly financial statements a Compliance Certificate certified as of the last day of the applicable month and signed by a Responsible Officer in substantially the form of Exhibit D hereto.

 

(y)                                 As soon as possible and in any event within three (3) calendar days after becoming aware of the occurrence or existence of an Event of Default hereunder, Borrower shall deliver a written statement of a Responsible Officer setting forth details of the Event of Default and the action which Borrower has taken or proposes to take with respect thereto.

 

(z)                                  Bank (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect Borrower’s Books and to make copies thereof and to check, test, inspect, audit, and

 

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appraise the Collateral at Borrower’s expense in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to the Collateral.

 

Borrower may deliver to Bank on an electronic basis any certificates, reports or information required pursuant to this Section 6.2, and Bank shall be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer. Borrower shall include a submission date on any certificates and reports to be delivered electronically.

 

6.3          Inventory and Equipment; Returns. Borrower shall keep all Inventory and Equipment in good and merchantable condition, free from all material defects except for Inventory and Equipment (a) sold in the ordinary course of business, and (b) for which adequate reserves have been made, in all cases in the United States and such other locations as to which Borrower gives prior written notice. Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist on the Closing Date. Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving Inventory having a book value of more than $100,000.

 

6.4          Taxes. Borrower shall make, and cause each Subsidiary to make, due and timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A., and state disability, and will execute and deliver to Bank, on demand, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower or such Subsidiary.

 

6.5          Insurance. Borrower, at its expense, shall (a) keep the Collateral insured against loss or damage, and (b) maintain liability and other insurance, in each case as ordinarily insured against by other owners in businesses similar to Borrower’s. All such policies of insurance shall be in such form, with such companies, and in such amounts as reasonably satisfactory to Bank. All policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an additional loss payee, and all liability insurance policies shall show Bank as an additional insured and specify that the insurer must give at least twenty (20) days’ notice to Bank before canceling its policy for any reason. Within thirty (30) days of the Closing Date, Borrower shall cause to be furnished to Bank a copy of its policies or certificate of insurance including any endorsements covering Bank or showing Bank as an additional insured. Upon Bank’s request, Borrower shall deliver to Bank certified copies of the policies of insurance and evidence of all premium payments. Proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property subject to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been granted a first priority security interest, provided that, if an Event of Default has occurred and is continuing, all proceeds payable under any such policy shall, at Bank’s option, be payable to Bank to be applied on account of the Obligations.

 

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6.6          Primary Depository. Subject to the provisions of Sections 3.1(k) and 3.2(b), Borrower within thirty (30) days of the Closing Date shall maintain all of its depository and operating accounts with Bank and all of its investment accounts with Bank or Bank’s Affiliates; provided that, prior to maintaining any investment accounts with Bank’s Affiliates, Borrower, Bank, and any such Affiliate shall have entered into a securities account control agreement with respect to any such investment accounts, in form and substance satisfactory to Bank. Notwithstanding the above, (a) Borrower shall be permitted to maintain Cash at Bank of America, N.A., provided that (i) the total aggregate amount of Cash maintained by Borrower at Bank of America, N.A. does not exceed $5,000,000 at any time and (ii) Borrower at all times maintains a balance of Cash at Bank of not less than 120% of Borrower’s Indebtedness to Bank, and (b) Borrower shall be permitted to maintain Cash in one or more other accounts outside of Bank, provided that the total aggregate amount of Cash maintained in such accounts does not exceed $20,000 at any time.

 

6.7          Consent of Inbound Licensors. Prior to entering into or becoming bound by any material inbound license or agreement, Borrower shall: (a) provide written notice to Bank of the material terms of such license or agreement with a description of its likely impact on Borrower’s business or financial condition; and (b) in good faith use commercially reasonable efforts to obtain the consent of, or waiver by, any Person whose consent or waiver is necessary for Borrower’s interest in such licenses or contract rights to be deemed Collateral and for Bank to have a security interest in it that might otherwise be restricted by the terms of the applicable license or agreement, whether now existing or entered into in the future, provided, however, that the failure to obtain any such consent or waiver shall not constitute a default under this Agreement.

 

6.8          Creation/Acquisition of Subsidiaries. In the event that Borrower or any Subsidiary of Borrower creates or acquires any Subsidiary, Borrower or such Subsidiary shall promptly notify Bank of such creation or acquisition, and Borrower or such Subsidiary shall take all actions reasonably requested by Bank to achieve any of the following with respect to such “New Subsidiary” (defined as a Subsidiary formed after the date hereof during the term of this Agreement): (a) to cause New Subsidiary to become either a co-Borrower hereunder, if such New Subsidiary is organized under the laws of the United States, or a secured guarantor with respect to the Obligations; and (b) to grant and pledge to Bank a perfected security interest in 100% of the stock, units or other evidence of ownership held by Borrower or its Subsidiaries of any such New Subsidiary which is organized under the laws of the United States, and 65% of the stock, units or other evidence of ownership held by Borrower or its Subsidiaries of any such New Subsidiary which is not organized under the laws of the United States.

 

6.9          Further Assurances. At any time and from time to time Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to effect the purposes of this Agreement.

 

7.             NEGATIVE COVENANTS.

 

Borrower covenants and agrees that, so long as any credit hereunder shall be available and until the outstanding Obligations (other than inchoate indemnity obligations) are paid in full or for so long as Bank may have any commitment to make any Credit Extensions, Borrower will

 

11

 

not do any of the following without Bank’s prior written consent, which shall not be unreasonably withheld:

 

7.1          Dispositions. Convey, sell, lease, license, transfer or otherwise dispose of (collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, or move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers.

 

7.2          Change in Name, Location, Executive Office, or Executive Management; Change in Business; Change in Fiscal Year; Change in Control. Change its name or the state of Borrower’s formation or relocate its chief executive office without thirty (30) days’ prior written notification to Bank; replace or suffer the departure of its chief executive officer or chief financial officer without delivering written notification to Bank within 10 days; fail to appoint an interim replacement or fill a vacancy in the position of chief executive officer or chief financial officer for more than thirty (30) consecutive days; suffer a change on its board of directors which results in the failure of at least one partner of either New Enterprise Associates or Canaan Partners or their respective Affiliates to serve as a voting member, or suffer the resignation of one or more directors from its board of directors in anticipation of Borrower’s insolvency, in either case without the prior written consent of Bank which may be withheld in Bank’s sole discretion take action to liquidate, wind up or otherwise cease to conduct business in the ordinary course; engage in any business, or permit any of its Subsidiaries to engage in any business, other than as reasonably related or incidental to the businesses currently engaged in by Borrower; change its fiscal year end; have a Change in Control.

 

7.3          Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower) or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person except where (a) each of the following conditions is applicable: (i) the consideration paid in connection with such transactions (including assumption of liabilities) does not in the aggregate exceed $250,000 during any fiscal year, (ii) no Event of Default has occurred, is continuing or would exist after giving effect to such transactions, (iii) such transactions do not result in a Change in Control, and (iv) Borrower is the surviving entity; or (b) the Obligations are repaid in full concurrently with the closing of any merger or consolidation of Borrower in which Borrower is not the surviving entity; provided, however, that Borrower shall not, without Bank’s prior written consent, enter into any binding contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower, unless (i) no Event of Default exists when such agreement is entered into by Borrower, (ii) such agreement does not give such Person the right to claim any fee, payment or damages from any parties, other than from Borrower or Borrower’s investors, in connection with a sale of Borrower’s stock or assets pursuant to or resulting from an assignment for the benefit of creditors, an asset turnover to Borrower’s creditors (including, without limitation, Bank), foreclosure, bankruptcy or similar liquidation, and (iii) Borrower notifies Bank in advance of entering into such an agreement (provided that, the failure to give such notification shall not be deemed a material breach of this Agreement).

 

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7.4          Indebtedness. Create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness, except Indebtedness to Bank.

 

7.5          Encumbrances. Create, incur, assume or allow any Lien with respect to its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other Person (other than (a) the licensors of in-licensed property with respect to such property or (b) the lessors of specific equipment or lenders financing specific equipment with respect to such leased or financed equipment) that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s property.

 

7.6          Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any capital stock, except that Borrower may (a) repurchase the stock of former employees or directors pursuant to stock repurchase agreements in an aggregate amount not to exceed $250,000 in any fiscal year, so long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase, and (b) repurchase the stock of former employees or directors pursuant to stock repurchase agreements in any amount where the consideration for the repurchase is the cancellation of indebtedness owed by such former employees or directors to Borrower regardless of whether an Event of Default exists.

 

7.7          Investments. Directly or indirectly acquire or own an Investment in, or make any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments, or maintain or invest any of its investment property with a Person other than Bank or permit any Subsidiary to do so unless such Person has entered into a control agreement with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise distributing property to Borrower.

 

7.8          Capitalized Expenditures. Make Capitalized Expenditures in excess of $500,000 in the aggregate in any fiscal year of Borrower.

 

7.9          Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for (a) transactions that are in the ordinary course of Borrower’s business and (b) bona-fide equity financings with existing investors that do not result in a Change in Control, in each case upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s-length transaction with a non-affiliated Person.

 

7.10        Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent.

 

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7.11        Inventory and Equipment. Store the Inventory or the Equipment of a book value in excess of $100,000 with a bailee, warehouseman, collocation facility or similar third party unless the third party has been notified of Bank’s security interest and Bank (a) has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Bank’s benefit or (b) is in possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment. Except for Inventory sold in the ordinary course of business and for movable items of personal property having an aggregate book value not in excess of $100,000, and, except for such other locations as Bank may approve in writing, Borrower shall keep the Inventory and Equipment only at the location set forth in Article 10 and such other locations of which Borrower gives Bank prior written notice and as to which Bank is able to take such actions as may be necessary to perfect its security interest or to obtain a bailee’s acknowledgment of Bank’s rights in the Collateral.

 

7.12        No Investment Company; Margin Regulation. Become or be controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose of purchasing or carrying margin stock or use the proceeds of any Credit Extension for such purpose.

 

8.             EVENTS OF DEFAULT.

 

Any one or more of the following events shall constitute an Event of Default by Borrower under this Agreement:

 

8.1          Payment Default. If Borrower fails to pay any of the Obligations when due;

 

8.2          Covenant Default.

 

(a)           If Borrower fails to perform any obligation under Section 6.2 (financial reporting), 6.4 (taxes), 6.5 (insurance) or 6.6 (primary accounts) or violates any of the covenants contained in Article 7 of this Agreement; or

 

(b)           If Borrower fails or neglects to perform or observe any other material term, provision, condition, covenant contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within ten (10) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that, if the default cannot by its nature be cured within the ten (10)-day period or cannot after diligent attempts by Borrower be cured within such ten (10)-day period and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made;

 

8.3          Material Adverse Change. If there occurs any circumstance or any circumstances which would reasonably be expected to have a Material Adverse Effect;

 

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8.4          Attachment. If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or Person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy or assessment is filed of record with respect to any material portion of Borrower’s assets by the United States Government, or any department, agency or instrumentality thereof, or by any state, county, municipal or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be made during such cure period);

 

8.5          Insolvency. If Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions will be made prior to the dismissal of such Insolvency Proceeding);

 

8.6          Other Agreements. If there is a default or other failure to perform in any agreement to which Borrower is a party with a third party or parties (a) resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of $250,000, (b) in connection with any lease of real property, or (c) that would reasonably be expected to have a Material Adverse Effect;

 

8.7          Judgments. If a final, uninsured judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least $250,000 shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Credit Extensions will be made prior to the satisfaction or stay of the judgment); or

 

8.8          Misrepresentations. If any material misrepresentation or material misstatement exists now or hereafter in any warranty or representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document.

 

9.             BANK’S RIGHTS AND REMEDIES.

 

9.1          Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrower:

 

(a)           Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable (provided that, upon the occurrence of an Event of Default described in Section 8.5 (insolvency), all Obligations shall become immediately due and payable without any action by Bank);

 

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(b)           Cease advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between Borrower and Bank;

 

(c)           Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that Bank reasonably considers advisable;

 

(d)           Make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral. Borrower agrees to assemble the Collateral if Bank so requires and to make the Collateral available to Bank as Bank may designate. Borrower authorizes Bank to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge or lien which in Bank’s determination appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s rights or remedies provided herein, at law, in equity or otherwise;

 

(e)           Place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any control agreement or similar agreements providing control of any Collateral;

 

(f)            Set off and apply to the Obligations any and all (i) balances and deposits of Borrower held by Bank, and (ii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank;

 

(g)           Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale and sell (in the manner provided for herein) the Collateral. Bank is hereby granted a license or other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names, Trademarks, service marks and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and selling any Collateral, and, in connection with Bank’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit;

 

(h)           Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially reasonable, and apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate. Bank may sell the Collateral without giving any warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. If Bank sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received by Bank and applied to the indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Bank may resell the Collateral and Borrower shall be credited with the proceeds of the sale;

 

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(i)            Credit bid and purchase at any public sale;

 

(j)            Apply for the appointment of a receiver, trustee, liquidator or conservator of the Collateral, without notice and without regard to the adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of the Obligations; and

 

(k)           Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower.

 

Bank may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral, and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.

 

9.2          Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers or employees) as Borrower’s true and lawful attorney to: (a) send requests for verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts and notices to account debtors; (d) dispose of any Collateral; (e) make, settle and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms which Bank determines to be reasonable; and (g) file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral; provided that Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clause (g) above, regardless of whether an Event of Default has occurred. The appointment of Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Bank’s obligation to provide advances hereunder is terminated.

 

9.3          Accounts Collection. At any time after the occurrence and during the continuation of an Event of Default, (a) Bank may notify any Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account and (b) Borrower shall collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit.

 

9.4          Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then Bank may do any or all of the following after reasonable notice to Borrower: (a) make payment of the same or any part thereof; or (b) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any action with respect to such policies as Bank deems prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then

 

17

 

applicable rate hereinabove provided, and shall be secured by the Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement.

 

9.5          Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare the Collateral for sale. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower.

 

9.6          No Obligation to Pursue Others. Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other Person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to pursue any other Person for any of the Obligations.

 

9.7          Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents and all other agreements shall be cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law or in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election or acquiescence by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose for which it was given. Borrower expressly agrees that this Section 9.7 may not be waived or modified by Bank by course of performance, conduct, estoppel or otherwise.

 

9.8          Demand; Protest. Except as otherwise provided in this Agreement, Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment and any other notices relating to the Obligations.

 

10.          NOTICES.

 

Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower or to Bank, as the case may be, at its addresses set forth below:

 

	
If   to Borrower:
    	
LIQUIDIA   TECHNOLOGIES, INC.
    
	
 
    	
419 Davis Drive,   Suite 100
    
	
 
    	
Morrisville, North   Carolina 27560-6837
    
	
 
    	
Attn: Timothy Albury
    
	
 
    	
FAX: (919) 328-4402
    

 

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If   to Bank:
    	
Pacific Western Bank
    
	
 
    	
406 Blackwell Street,   Suite 240
    
	
 
    	
Durham, North Carolina   27701
    
	
 
    	
Attn: Loan Operations   Manager
    
	
 
    	
FAX: (919) 314-3080
    

 

 

	
with   a copy to:
    	
Pacific Western Bank
    
	
 
    	
406 Blackwell Street,   Suite 240
    
	
 
    	
Durham, North Carolina   27701
    
	
 
    	
Attn: Mara Huntington
    
	
 
    	
FAX: (919) 314-3090
    

 

The parties hereto may change the address at which they are to receive notices hereunder by notice in writing in the foregoing manner given to the other.

 

11.          CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

 

This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of North Carolina, without regard to principles of conflicts of law. Jurisdiction shall lie in the State of North Carolina. All disputes, controversies, claims, actions and similar proceedings arising with respect to Borrower’s account or any related agreement or transaction shall be brought in the General Court of Justice of North Carolina sitting in Durham County, North Carolina or the United States District Court for the Middle District of North Carolina, except as provided below with respect to arbitration of such matters. BANK AND BORROWER EACH ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH OF THEM, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT, WITH COUNSEL OF THEIR CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY RELATED INSTRUMENT OR LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY OF THEM. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY BANK OR BORROWER, EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM. If the jury waiver set forth in this Article 11 is not enforceable, then any dispute, controversy, claim, action or similar proceeding arising out of or relating to this Agreement, the Loan Documents or any of the transactions contemplated therein shall be settled by final and binding arbitration held in Durham County, North Carolina in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance with those rules. The arbitrator shall apply North Carolina law to the resolution of any dispute, without reference to rules of conflicts of law or rules of statutory arbitration. Judgment upon any award resulting from arbitration may be entered into and enforced by any state or federal court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this Article

 

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11.       The costs and expenses of the arbitration, including without limitation, the arbitrator’s fees and expert witness fees and reasonable attorneys’ fees, incurred by the parties to the arbitration may be awarded to the prevailing party, in the discretion of the arbitrator, or may be apportioned between the parties in any manner deemed appropriate by the arbitrator. Unless and until the arbitrator decides that one party is to pay for all (or a share) of such costs and expenses, both parties shall share equally in the payment of the arbitrator’s fees as and when billed by the arbitrator.

 

12.                               GENERAL PROVISIONS.

 

12.1                        Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties and shall bind all Persons who become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent, which consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the consent of or notice to Borrower to sell, assign, transfer, negotiate or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits hereunder.

 

12.2                        Indemnification. Borrower shall defend, indemnify and hold harmless Bank and its officers, employees, and agents (each, an “Indemnified Party”) against: (a) all obligations, demands, claims and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement (each, a “Claim”); and (b) all losses or Bank Expenses in any way suffered, incurred or paid by Bank, its officers, employees and agents as a result of or in any way arising out of, following or consequential to transactions between Bank and Borrower whether under this Agreement or otherwise (including without limitation reasonable attorneys’ fees and expenses), except for losses, Claims and Bank Expenses caused by an Indemnified Party’s gross negligence or willful misconduct.

 

12.3                        Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement.

 

12.4                        Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.

 

12.5                        Amendments in Writing, Integration. All amendments to or terminations of this Agreement or the other Loan Documents must be in writing. All prior agreements, understandings, representations, warranties and negotiations between the parties hereto with respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the Loan Documents.

 

12.6                        Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original and all of which, when taken together, shall constitute but one and the same Agreement. Executed copies of the signature pages of this Agreement sent by facsimile or transmitted electronically in Portable Document Format, or any

 

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similar format, shall be treated as originals, fully binding and with full legal force and effect, and the parties waive any rights they may have to object to such treatment.

 

12.7                                Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in Section 12.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run.

 

12.8                                Confidentiality. In handling any confidential information, Bank and Borrower and all employees and agents of each such party shall exercise the same degree of care that such party exercises with respect to its own proprietary information of the same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Agreement except that disclosure of such information may be made (a) in the case of Bank, to the subsidiaries or Affiliates of Bank or Borrower in connection with their present or prospective business relations with Borrower, (b) in the case of Bank, to prospective transferees or purchasers of any interest in the Credit Extensions, provided that they have entered into a comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower, (c) as required by law, regulations, rule or order, subpoena, judicial order or similar order, (d) in the case of Bank, as may be required in connection with the examination, audit or similar investigation of Bank and (e) as Bank may determine in connection with the enforcement of any remedies hereunder. Confidential information hereunder shall not include information that either: (x) is in the public domain or in the knowledge or possession of the receiving party when disclosed to such party, or becomes part of the public domain after disclosure to such receiving party through no fault of such receiving party; or (y) is disclosed to such receiving party by a third party, provided that the receiving party does not have actual knowledge that such third party is prohibited from disclosing such information.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

	
 
    	
PACIFIC WESTERN BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lan Zhu
    
	
 
    	
Name:
    	
Lan Zhu
    
	
 
    	
Title:
    	
AVP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LIQUIDIA   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy   Albury
    
	
 
    	
Name:
    	
Timothy Albury
    
	
 
    	
Title:
    	
CFO
    

 

 

EXHIBIT A

 

DEFINITIONS

 

“Accounts” means all presently existing and hereafter arising accounts, contract rights, payment intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by Borrower and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing.

 

“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors and general partners.

 

“Authorized Officer” means someone designated as such in the corporate resolution provided by Borrower to Bank in which this Agreement and the transactions contemplated hereunder are authorized by Borrower’s board of directors. If Borrower provides subsequent corporate resolutions to Bank after the Closing Date, the individual(s) designated as “Authorized Officer(s)” in the most-recently provided resolution shall be the only “Authorized Officers” for purposes of this Agreement.

 

“Availability End Date” means July 6, 2017.

 

“Bank Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and expenses, whether generated in-house or by outside counsel) incurred in connection with the preparation, negotiation, administration and enforcement of the Loan Documents; reasonable Collateral audit fees; and Bank’s reasonable attorneys’ fees and expenses (whether generated in-house or by outside counsel) incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred before, during and after an Insolvency Proceeding, whether or not suit is brought.

 

“Borrower’s Books” means all of Borrower’s books and records including: ledgers; records concerning Borrower’s assets or liabilities, the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment containing such information.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which banks in the State of North Carolina are authorized or required to close.

 

“Capitalized Expenditures” means current period unfinanced cash expenditures that are capitalized and amortized over a period of time in accordance with GAAP, including but not limited to capitalized cash expenditures for capital equipment, capitalized manufacturing and labor costs as they relate to inventory and software development.

 

“Cash” means unrestricted cash and cash equivalents.

 

 

“Change in Control” means a transaction other than a bona fide equity financing or series of financings on terms and from investors reasonably acceptable to Bank in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the board of directors of Borrower, who did not have such power before such transaction.

 

“Closing Date” means the date of this Agreement.

 

“Code” means the North Carolina Uniform Commercial Code as amended or supplemented from time to time.

 

“Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral to the extent not described on Exhibit B, except to the extent any such property (a) is nonassignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, §25-9-406 and §25-9-408 of the Code), (b) the granting of a security interest which is contrary to applicable law, provided that, upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral, (c) constitutes the capital stock of a controlled foreign corporation (as defined in the IRC), in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporations entitled to vote, or (d) property (including any attachments, accessions or replacements) that is subject to a Lien that is permitted pursuant to clause (c) of the definition of Permitted Liens, if the grant of a security interest with respect to such property pursuant to this Agreement would be prohibited by the agreement creating such Permitted Lien or would otherwise constitute a default thereunder, provided that such property will be deemed “Collateral” hereunder upon the termination and release of such Permitted Lien.

 

“Collateral State” means the state where the Collateral is located, which is North Carolina.

 

“Compliance Certificate” means a compliance certificate, in substantially the form of Exhibit D attached hereto, executed by a Responsible Officer of Borrower.

 

“Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to (a) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (b) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued for the account of that Person; and (c) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount

 

2

 

equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement.

 

“Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held.

 

“Credit Card Line” means a Credit Extension of up to $50,000, to be used exclusively for the provision of Credit Card Services.

 

“Credit Card Maturity Date” means January 4, 2017.

 

“Credit Extension” means each Term Loan, the Credit Card Services provided under the Credit Card Line, or any other extension of credit, by Bank to or for the benefit of Borrower hereunder.

 

“Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder.

 

“Event of Default” has the meaning assigned in Article 8.

 

“GAAP” means generally accepted accounting principles, consistently applied, as in effect from time to time in the United States.

 

“Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all Contingent Obligations, including but not limited to any sublimit contained herein.

 

“Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement or other relief.

 

“Intellectual Property” means all of Borrower’s right, title, and interest in and to the following:

 

(a)                                 Copyrights, Patents and Trademarks;

 

(b)                                 Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held;

 

3

 

(c)                                  Any and all design rights which may be available to Borrower now or hereafter existing, created, acquired or held;

 

(d)                                 Any and all claims for damages by way of past, present and future infringement of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above;

 

(e)                                  All licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties arising from such use to the extent permitted by such license or rights;

 

(f)                                   All amendments, renewals and extensions of any of the Copyrights, Patents or Trademarks; and

 

(g)                                  All other intellectual property.

 

“Inventory” means all present and future inventory in which Borrower has any interest.

 

“Investment” means any beneficial ownership of (including stock, partnership or limited liability company interest or other securities) any Person, or any loan, advance or capital contribution to any Person.

 

“Investment Agreement” means, collectively, Borrower’s stock purchase and other agreement(s) pursuant to which Borrower most recently issued its preferred stock.

 

“IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

 

“Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

 

“Liquidity Event” means (a) any sale, license or other disposition of all or substantially all of the assets (including Intellectual Property) of Borrower, (b) any reorganization, consolidation, merger or sale of the voting securities of Borrower or any other transaction (i) where the holders of Borrower’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction or (ii) that results in a Change in Control, or (c) an initial public offering of Borrower’s equity securities; provided that a Liquidity Event shall exclude any issuance of equity securities by the Company for purposes of raising working capital through a bona fide equity financing transaction where the consideration received by the Company is cash, the cancellation or conversion of indebtedness, or a combination of both.

 

“Loan Documents” means, collectively, this Agreement, any note or notes executed by Borrower, and any other document, instrument or agreement entered into in connection with this Agreement, all as amended or extended from time to time.

 

“Material Adverse Effect” means a material adverse effect on (a) the operations, business or financial condition of Borrower and its Subsidiaries taken as a whole, (b) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents, or (c)

 

4

 

Borrower’s interest in, or the value, perfection or priority of Bank’s security interest in the Collateral.

 

“Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments (including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing.

 

“Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this Agreement or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability or obligation owing from Borrower to others that Bank may have obtained by assignment or otherwise.

 

“Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

 

“Periodic Payments” means all installments or similar recurring payments that Borrower may now or hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument or agreement now or hereafter in existence between Borrower and Bank.

 

“Permitted Indebtedness” means:

 

(a)                                 Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document;

 

(b)                                 Indebtedness existing on the Closing Date and disclosed in the Schedule;

 

(c)                                  Indebtedness not to exceed $250,000 in the aggregate at any time secured by a lien described in clause (c) of the defined term “Permitted Liens,” provided that such Indebtedness does not exceed at the time it is incurred the lesser of the cost or fair market value of the property financed with such Indebtedness;

 

(d)                                 Subordinated Debt;

 

(e)                                  Indebtedness to trade creditors incurred in the ordinary course of business; and

 

(f)                                   Extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.

 

“Permitted Investments” means:

 

(a)                                 Investments existing on the Closing Date disclosed in the Schedule;

 

(b)                                 (i) Marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any state thereof maturing within one year from the date of

 

5

 

acquisition thereof, (ii) commercial paper maturing no more than one year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service, (iii) Bank’s certificates of deposit maturing no more than one year from the date of investment therein, (iv) Bank’s money market accounts, (v) Investments in regular deposit or checking accounts held with Bank or as otherwise permitted by, and subject to the terms and conditions of, Section 6.6 of this Agreement, and (vi) Investments consistent with any investment policy adopted by Borrower’s board of directors;

 

(c)                                  Investments accepted in connection with Permitted Transfers;

 

(d)                                 Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not to exceed $250,000 in the aggregate in any fiscal year;

 

(e)                                  Investments not to exceed $250,000 outstanding in the aggregate at any time consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s board of directors;

 

(f)                                   Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business;

 

(g)                                  Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to, customers and suppliers who are not Affiliates, in the ordinary course of business, provided that this subparagraph (g) shall not apply to Investments of Borrower in any Subsidiary;

 

(h)                                 Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash Investments by Borrower do not exceed $250,000 in the aggregate in any fiscal year; and

 

(i)                                     Investments permitted under Section 7.3.

 

“Permitted Liens” means the following:

 

(a)                                 Any Liens existing on the Closing Date and disclosed in the Schedule (excluding Liens to be satisfied with the proceeds of the Credit Extensions) or arising under this Agreement, the other Loan Documents or any other agreement in favor of Bank;

 

(b)                                 Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and for which Borrower maintains adequate reserves;

 

(c)                                  Liens not to exceed $250,000 in the aggregate at any time (i) upon or in any Equipment (other than Equipment financed by a Credit Extension) acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such Equipment, or (ii) existing on such

 

6

 

Equipment at the time of its acquisition, in each case provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such Equipment;

 

(d)                                 Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (a) through (c) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase;

 

(e)                                  Liens securing Subordinated Debt;

 

(f)                                   Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 (attachment) or 8.7 (judgments);

 

(g)                                  Liens to secure the payment of worker’s compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA, provided that the aggregate of all such Liens shall not exceed $250,000 at any time; and

 

(h)                                 Leases or subleases of real property granted in the ordinary course of business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses of personal property (other than Intellectual Property) granted in the ordinary course of business which (i) do not interfere in any material respect with the business of Borrowers and their Subsidiaries, (ii) do not secure any Indebtedness and (iii) are not otherwise prohibited by this Agreement.

 

“Permitted Transfer” means the conveyance, sale, lease, license, transfer or disposition by Borrower or any Subsidiary of:

 

(a)                                 Inventory in the ordinary course of business;

 

(b)                                 licenses and similar arrangements for the use of the property (including the Intellectual Property) of Borrower or its Subsidiaries in the ordinary course of business;

 

(c)                                  worn-out, surplus or obsolete Equipment;

 

(d)                                 grants of security interests and other Liens that constitute Permitted Liens; and

 

(e)                                  other assets of Borrower or its Subsidiaries that do not in the aggregate exceed $250,000 during any fiscal year.

 

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency.

 

“Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, Vice President of Finance and the Controller of Borrower, as well as

 

7

 

any other officer or employee identified as an Authorized Officer in the corporate resolution delivered by Borrower to Bank in connection with this Agreement.

 

“Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any.

 

“SOS Reports” means the official reports from the Secretaries of State of each Collateral State, the state where Borrower’s chief executive office is located, the state of Borrower’s formation and other applicable federal, state or local government offices identifying all current security interests filed in the Collateral and Liens of record as of the date of such report.

 

“Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by Borrower and Bank).

 

“Subsidiary” means any corporation, partnership or limited liability company or joint venture in which (a) any general partnership interest or (b) more than 50% of the stock, limited liability company interest or joint venture of which by the terms thereof ordinary voting power to elect the board of directors, managers or trustees of the entity, at the time as of which any determination  is being made, is owned by Borrower, either directly or through an Affiliate.

 

“Term Loan Maturity Date” means January 6, 2020.

 

“Trademarks” means any trademark and service mark rights, whether registered or not, applications to register and registrations of the same and like protections and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.

 

8

 

	
DEBTOR
    	
LIQUIDIA   TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
SECURED PARTY:
    	
PACIFIC WESTERN BANK
    

 

EXHIBIT B

 

COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT

 

All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired and wherever located, including, but not limited to:

 

(a)           all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), financial assets, general intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles, domain names and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records;

 

(b)           any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given to them in the North Carolina Uniform Commercial Code, as amended or supplemented from time to time, including revised Division 9 of the Uniform Commercial Code-Secured Transactions.

 

Notwithstanding the foregoing, the Collateral shall not include any of the intellectual property, in any medium, of any kind or nature whatsoever, now or hereafter owned or acquired or received by Borrower, or in which Borrower now holds or hereafter acquires or receives any right or interest (collectively, the “Intellectual Property”); provided, however, that the Collateral shall include all accounts and general intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to Payment”).

 

Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically and effective as of January 6, 2016, include the Intellectual Property to the extent and only to the extent necessary to permit perfection of Bank’s security interest in the Rights to Payment, and further provided, however, that Bank’s enforcement rights with respect to any security interest in the Intellectual Property shall be absolutely limited to the Rights to Payment only, and Bank shall have no recourse whatsoever with respect to the underlying Intellectual Property.

 

1

 

EXHIBIT C

LOAN ADVANCE / PAYDOWN REQUEST FORM

 

[Please refer to New Borrower Kit]

 

EXHIBIT D

COMPLIANCE CERTIFICATE

 

[Please refer to New Borrower Kit]

 

 

SCHEDULE OF EXCEPTIONS

 

Permitted Indebtedness (Exhibit A) — See attached.

 

Permitted Investments (Exhibit A) — None.

 

Permitted Liens (Exhibit A) — See attached.

 

Intellectual Property (Section 5.4) — See attached.

 

Prior Names (Section 5.5) — None.

 

Litigation (Section 5.6) — None.

 

Inbound Licenses (Section 5.12) — See attached.

 

 

Liquidia Technologies, Inc.

 

Exhibit A

 

Permitted Indebtedness

 

 

EXHIBIT A

 

PERMITTED INDEBTEDNESS

 

See attached schedule “LTI Master Lease Schedule” for summary of leases in place,

 

Borrower is indebted to the University of North Carolina at Chapel Hill in the amount of $600,000. Borrower represents and warrants to Bank that such Indebtedness is unsecured and is not evidenced by a promissory note.

 

 

LTI Master Lease Schedule

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Payment
    	
 
    	
No Of
    	
 
    	
 
    	
 
    	
Beginning
    	
 
    	
 
    	
 
    
	
Internal Account No.
    	
 
    	
Financing Company
    	
 
    	
Lendor Account No/Lease No
    	
 
    	
Financed Amount
    	
 
    	
Amount
    	
 
    	
Payments
    	
 
    	
Effective Date
    	
 
    	
Date
    	
 
    	
Ending Date
    	
 
    
	
01.000.3201.00001
    	
 
    	
Lenovo Financial Services
    	
 
    	
908-0004241.000
    	
 
    	
$
    	
19,947.09
    	
 
    	
$
    	
464.85
    	
 
    	
48
    	
 
    	
09/11/13
    	
 
    	
10/02/13
    	
 
    	
09/02/17
    	
 
    
	
01.000.3201.00003
    	
 
    	
DeLage
    	
 
    	
100-10042135
    	
 
    	
$
    	
11,878.75
    	
 
    	
$
    	
388.24
    	
 
    	
36
    	
 
    	
03/17/14
    	
 
    	
05/28/14
    	
 
    	
04/28/17
    	
 
    
	
01.000.3201.00004
    	
 
    	
DeLage
    	
 
    	
100-10052141
    	
 
    	
$
    	
80,123.40
    	
 
    	
$
    	
2,616.48
    	
 
    	
36
    	
 
    	
07/17/14
    	
 
    	
09/15/14
    	
 
    	
08/15/17
    	
 
    
	
01.000.3201.00005
    	
 
    	
Bryn Mawr
    	
 
    	
(PARTNERS15074)/89590
    	
 
    	
$
    	
21,492.00
    	
 
    	
$
    	
606.53
    	
 
    	
48
    	
 
    	
11/02/14
    	
 
    	
11/02/14
    	
 
    	
10/02/18
    	
 
    
	
01.000.3201.00006
    	
 
    	
Wells Fargo
    	
 
    	
301-0160339-001
    	
 
    	
$
    	
11,500.00
    	
 
    	
$
    	
395.87
    	
 
    	
36
    	
 
    	
01/31/14
    	
 
    	
02/01/14
    	
 
    	
01/01/17
    	
 
    
	
01.000.3201.00007
    	
 
    	
Quantum Analytics
    	
 
    	
795817
    	
 
    	
$
    	
37,196.00
    	
 
    	
$
    	
1,699.88
    	
 
    	
24
    	
 
    	
07/30/14
    	
 
    	
07/31/14
    	
 
    	
06/30/16
    	
 
    
	
01.000.3201.00008
    	
 
    	
Dell Financial Services
    	
 
    	
001-8745421-002
    	
 
    	
$
    	
13,418.28
    	
 
    	
$
    	
299.83
    	
 
    	
60
    	
 
    	
02/01/15
    	
 
    	
12/30/14
    	
 
    	
11/30/19
    	
 
    
	
01.000.3201.00009
    	
 
    	
Royal Bank of America
    	
 
    	
LTI112(224963)
    	
 
    	
$
    	
50,625.00
    	
 
    	
$
    	
1,610.00
    	
 
    	
36
    	
 
    	
01/09/15
    	
 
    	
01/09/15
    	
 
    	
12/09/17
    	
 
    
	
01.000.3201.00010
    	
 
    	
ThermoFisher
    	
 
    	
2000-0004641
    	
 
    	
$
    	
33,833.28
    	
 
    	
$
    	
671.46
    	
 
    	
60
    	
 
    	
02/27/16
    	
 
    	
11/25/14
    	
 
    	
10/25/19
    	
 
    
	
01.000.3201.00011
    	
 
    	
Lenovo Financial Services
    	
 
    	
908-0005392-000
    	
 
    	
$
    	
34,624.10
    	
 
    	
$
    	
801.56
    	
 
    	
48
    	
 
    	
05/15/14
    	
 
    	
05/15/14
    	
 
    	
04/15/18
    	
 
    
	
01.000.3201.00012
    	
 
    	
Lenovo Financial Services
    	
 
    	
908-0006524-000
    	
 
    	
$
    	
14,575.40
    	
 
    	
$
    	
391.14
    	
 
    	
48
    	
 
    	
11/19/14
    	
 
    	
11/01/14
    	
 
    	
10/01/18
    	
 
    
	
01.000.3201.00013
    	
 
    	
Partners Capital
    	
 
    	
13717
    	
 
    	
$
    	
12,926.57
    	
 
    	
$
    	
385.09
    	
 
    	
48
    	
 
    	
03/27/14
    	
 
    	
03/31/14
    	
 
    	
02/28/18
    	
 
    
	
01.000.3201.00014
    	
 
    	
ThermoFisher
    	
 
    	
100-10059861
    	
 
    	
$
    	
5,984.43
    	
 
    	
$
    	
272.98
    	
 
    	
24
    	
 
    	
02/19/15
    	
 
    	
03/31/15
    	
 
    	
02/28/17
    	
 
    
	
01.000.3201.00015
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH A
    	
 
    	
$
    	
17,495.00
    	
 
    	
$
    	
491.00
    	
 
    	
36
    	
 
    	
04/03/15
    	
 
    	
05/01/15
    	
 
    	
04/01/18
    	
 
    
	
01.000.3201.00016
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH B
    	
 
    	
$
    	
25,000.00
    	
 
    	
$
    	
700.00
    	
 
    	
36
    	
 
    	
04/07/15
    	
 
    	
05/01/15
    	
 
    	
04/01/18
    	
 
    
	
01.000.3201.00017
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH C
    	
 
    	
$
    	
34,562.31
    	
 
    	
$
    	
966.00
    	
 
    	
36
    	
 
    	
05/04/15
    	
 
    	
06/01/15
    	
 
    	
05/01/18
    	
 
    
	
01.000.3201.00018
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH D
    	
 
    	
$
    	
154,155.00
    	
 
    	
$
    	
—
    	
 
    	
0
    	
 
    	
PENDING
    	
 
    	
 
    	
 
    	
#NUM!
    	
 
    
	
01.000.3201.00019
    	
 
    	
Navitas Lease Corporation
    	
 
    	
40186398
    	
 
    	
$
    	
55,678.00
    	
 
    	
$
    	
1,378.03
    	
 
    	
48
    	
 
    	
02/25/15
    	
 
    	
02/25/15
    	
 
    	
01/25/19
    	
 
    
	
01.000.3201.00020
    	
 
    	
Royal Bank of America
    	
 
    	
LTI112 (225098)
    	
 
    	
$
    	
20,578.33
    	
 
    	
$
    	
656.00
    	
 
    	
38
    	
 
    	
04/14/15
    	
 
    	
02/04/15
    	
 
    	
01/04/18
    	
 
    
	
01.000.3201.00021
    	
 
    	
Lenovo Financial Services
    	
 
    	
1289511 (1037789)
    	
 
    	
$
    	
17,260.20
    	
 
    	
$
    	
479.45
    	
 
    	
36
    	
 
    	
05/22/15
    	
 
    	
05/27/15
    	
 
    	
04/27/18
    	
 
    
	
01.000.3201.00022
    	
 
    	
First American
    	
 
    	
2015215-01
    	
 
    	
$
    	
12,511.72
    	
 
    	
$
    	
389.99
    	
 
    	
36
    	
 
    	
08/04/15
    	
 
    	
09/01/15
    	
 
    	
08/01/18
    	
 
    
	
01.000.3201.00023
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH F
    	
 
    	
$
    	
174,075.00
    	
 
    	
$
    	
4,851.00
    	
 
    	
36
    	
 
    	
09/15/15
    	
 
    	
10/01/15
    	
 
    	
09/01/18
    	
 
    
	
01.000.3201.00024
    	
 
    	
CSC Leasing Company
    	
 
    	
15016 SCH G
    	
 
    	
$
    	
31,026.00
    	
 
    	
$
    	
867.00
    	
 
    	
36
    	
 
    	
10/02/15
    	
 
    	
11/01/15
    	
 
    	
10/01/18
    	
 
    
	
Total ACTIVE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
890,465.86
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
In Process:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TBD
    	
 
    	
Waters Corporation
    	
 
    	
NAD0000580-1
    	
 
    	
$
    	
127,650.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total COMMITTED to Date
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1,018,115.86
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

Liquidia Technologies, Inc.

 

Exhibit A

 

Permitted Liens

 

 

State: Delaware

Office: Secretary of State

Names Searched: Liquid Technologies, Inc.

Type of Search: UCC

Through Date: 9/07/15

 

	
 
    	
 
    	
Secured Creditor/
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
No.
    	
 
    	
Assignee
    	
 
    	
Filing Date
    	
 
    	
Instrument No.
    	
 
    	
Collateral
    
	
1
    	
 
    	
Wells Fargo Bank, N.A.
    	
 
    	
1/31/14
    	
 
    	
20140408054
    	
 
    	
Equipment
    
	
2
    	
 
    	
Union Bank
    	
 
    	
6/27/14
    	
 
    	
20142540177
    	
 
    	
Equipment
    
	
3
    	
 
    	
Thermo Fisher Financial Services Inc.
    	
 
    	
10/20/14
    	
 
    	
20144215810
    	
 
    	
Equipment
    
	
4
    	
 
    	
Bryn Mawr Equip. Finance, LLC
    	
 
    	
11/05/14
    	
 
    	
20144450409
    	
 
    	
Equipment
    
	
5
    	
 
    	
Thermo Fisher Financial Services Inc.
    	
 
    	
12/05/14
    	
 
    	
20144926283
    	
 
    	
Equipment
    
	
6
    	
 
    	
Royal Bank America Leasing
    	
 
    	
1/14/15
    	
 
    	
20150179852
    	
 
    	
Equipment
    
	
7
    	
 
    	
Dell Financial Services, L.L.C.
    	
 
    	
2/17/15
    	
 
    	
20150662774
    	
 
    	
Equipment
    
	
8
    	
 
    	
Navitas Lease Corp.
    	
 
    	
5/07/15
    	
 
    	
20151960698
    	
 
    	
Equipment
    
	
9
    	
 
    	
Capital Bank
    	
 
    	
5/11/15
    	
 
    	
20152004215
    	
 
    	
Equipment
    
	
10
    	
 
    	
Union Bank & Trust
    	
 
    	
6/08/15
    	
 
    	
20152423084
    	
 
    	
Equipment
    
	
11
    	
 
    	
Corporation Service Company, as Representative
    	
 
    	
7/10/15
    	
 
    	
20152979812
    	
 
    	
Master Lease Agreement No. 2015215 — Asset   specific filing, property now or hereafter subject to a lease between lessor   and lessee.
    
	
12
    	
 
    	
Corporation Service Company, as Representative
    	
 
    	
8/25/15
    	
 
    	
20153704862
    	
 
    	
Master Lease Agreement No. 2015215 — Asset specific filing, property now or hereafter subject   to a lease between lessor and lessee.
    

 

State: North Carolina

Office: Secretary of State

Names Searched: Liquid Technologies, Inc.

Type of Search: UCC

Through Date: 10/04/15

 

	
 
    	
 
    	
Secured Creditor/
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
No.
    	
 
    	
Assignee
    	
 
    	
Filing Date
    	
 
    	
Instrument No.
    	
 
    	
Collateral/Notes
    
	
1
    	
 
    	
MD Capital Partners, Inc.
    	
 
    	
6/03/14
    	
 
    	
20140052659F
    	
 
    	
Equipment
    
	
2
    	
 
    	
De Lage Landen Financial Services, Inc.
    	
 
    	
9/16/14
    	
 
    	
20140087654J
    	
 
    	
Equipment — pursuant to Contract # 100-10052141
    
	
3
    	
 
    	
Royal Bank America Leasing, LP
    	
 
    	
4/15/15
    	
 
    	
20150034122A
    	
 
    	
Equipment
    
	
4
    	
 
    	
DE Lage Landen Financial Services, Inc.
    	
 
    	
10/05/15
    	
 
    	
20150094876C
    	
 
    	
Equipment — pursuant to Contract # 100-10082877
    

 

 

Liquidia Technologies, Inc.

 

Intellectual Property (Section 5.4)

 

 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
Internal ID
    	
 
    	
UNC Docket
    	
 
    	
Outside Counsel Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Assigned/ Licensed
    
	
5001US
    	
 
    	
04-0013
    	
 
    	
035052/338792
    	
 
    	
Photocurable 
   perfluoropolyethers 
   for use as novel 
   materials in 
   mlcrofluidic 
   devices
    	
 
    	
10/572764
    	
 
    	
9/23/2004
    	
 
    	
20070254278
    	
 
    	
8268446
    	
 
    	
Assigned to 
   UNC and Cal 
   Tech, 
   exclusively Licensed to Liquidia 
   Technologies 
   (co-exclusion 
   in 
   microfluldies)
    
	
5001AU
    	
 
    	
 
    	
 
    	
035052/338794
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2004276302
    	
 
    	
2004276302
    	
 
    
	
5001CA
    	
 
    	
 
    	
 
    	
035052/338795
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2540035
    	
 
    	
2540035
    	
 
    
	
5001CN
    	
 
    	
 
    	
 
    	
035052/338796
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200480034620
    	
 
    	
200480034620
    	
 
    
	
5001EP
    	
 
    	
 
    	
 
    	
035052/338798
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
04784924.5
    	
 
    	
1694731
    	
 
    
	
5001HK
    	
 
    	
 
    	
 
    	
035052/339054
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
08100301
    	
 
    	
1106262
    	
 
    
	
5001IN
    	
 
    	
 
    	
 
    	
035052/338800
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2212/DELNP/2006
    	
 
    	
261330
    	
 
    
	
5001IP
    	
 
    	
 
    	
 
    	
035052/338801
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006-527164
    	
 
    	
4586021
    	
 
    
	
5001MX
    	
 
    	
 
    	
 
    	
035052/338803
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006/003201
    	
 
    	
299945
    	
 
    
	
5001SG
    	
 
    	
 
    	
 
    	
035052/338805
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006018757.6
    	
 
    	
120640
    	
 
    
	
5002US
    	
 
    	
04-0104
    	
 
    	
035052/338899
    	
 
    	
Methods for 
   fabricating isolated 
   micro-and 
   nanostructures 
   using soft or 
   imprint 
   lithography
    	
 
    	
10/583570
    	
 
    	
12/20/2004
    	
 
    	
20090028910
    	
 
    	
8263129
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
5002AU
    	
 
    	
 
    	
 
    	
035052/338850
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2004318602
    	
 
    	
2004318602
    	
 
    
	
5002BR
    	
 
    	
 
    	
 
    	
035052/338851
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0417848.3
    	
 
    	
PENDING
    	
 
    
	
5002CA
    	
 
    	
 
    	
 
    	
035052/338852
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2549341
    	
 
    	
2549341
    	
 
    
	
5002CADIV1
    	
 
    	
 
    	
 
    	
035052/442868
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2847260
    	
 
    	
PENDING
    	
 
    
	
5002CN
    	
 
    	
 
    	
 
    	
035052/338853
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200480041942.9
    	
 
    	
20048004194   2.9
    	
 
    
	
5002EP
    	
 
    	
 
    	
 
    	
035052/338889
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
04821787.1
    	
 
    	
PENDING
    	
 
    
	
5002HK
    	
 
    	
 
    	
 
    	
035052/338890
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
07103263.7
    	
 
    	
PENDING
    	
 
    
	
5002IL
    	
 
    	
 
    	
 
    	
035052/338892
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
176254
    	
 
    	
PENDING
    	
 
    
	
5002IN
    	
 
    	
 
    	
 
    	
035052/338893
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
3991/DELNP/2006
    	
 
    	
PENDING
    	
 
    
	
5002JP
    	
 
    	
 
    	
 
    	
035052/338895
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006545541
    	
 
    	
PENDING
    	
 
    
	
5002JPDIV1
    	
 
    	
 
    	
 
    	
035052/405505
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2011-104856
    	
 
    	
PENDING
    	
 
    
	
5002JPDIV2
    	
 
    	
 
    	
 
    	
035052/443661
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014.054051
    	
 
    	
PENDING
    	
 
    
	
5002JPDIV3
    	
 
    	
 
    	
 
    	
035052/450277
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014-161427
    	
 
    	
PENDING
    	
 
    
	
5002KR
    	
 
    	
 
    	
 
    	
035052/338894
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2006-7012179
    	
 
    	
10-1281775
    	
 
    
	
5002KRDIV1
    	
 
    	
 
    	
 
    	
035052/408972
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2011-7020441
    	
 
    	
10-1376715
    	
 
    
	
5002KRDIV3
    	
 
    	
 
    	
 
    	
035052/447192
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2014-7018393
    	
 
    	
PENDING
    	
 
    
	
5002MX
    	
 
    	
 
    	
 
    	
035052/338896
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
PA/A/2006/006738
    	
 
    	
266246
    	
 
    
	
5002SG
    	
 
    	
 
    	
 
    	
035052/338898
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200603890-5
    	
 
    	
123152
    	
 
    

 

CONFIDENTIAL

 

1

 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
Internal ID
    	
 
    	
UNC 
   Docket
    	
 
    	
Outside Counsel 
   Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Assigned/ 
   Licensed
    
	
5002ZA
    	
 
    	
 
    	
 
    	
035052/338900
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006/04885
    	
 
    	
PENDING
    	
 
    	
 
    
	
5002-01US
    	
 
    	
 
    	
 
    	
035052/339501
    	
 
    	
 
    	
 
    	
11/825469
    	
 
    	
7/6/2007
    	
 
    	
2009/0061152
    	
 
    	
8420124
    	
 
    	
 
    
	
5002-02US
    	
 
    	
 
    	
 
    	
035052/430281
    	
 
    	
 
    	
 
    	
13/852683
    	
 
    	
3/28/2013
    	
 
    	
20140072632
    	
 
    	
8992992
    	
 
    	
 
    
	
5002-03US
    	
 
    	
 
    	
 
    	
035052/458758
    	
 
    	
 
    	
 
    	
14/658386
    	
 
    	
3/16/2015
    	
 
    	
20150283079
    	
 
    	
PENDING
    	
 
    	
 
    
	
5003-01US
    	
 
    	
04-0067
    	
 
    	
035052/339941
    	
 
    	
Methods and materials for   fabricating microfluidic devices
    	
 
    	
12/063284
    	
 
    	
8/9/2006
    	
 
    	
20090281250
    	
 
    	
8158728
    	
 
    	
Assigned to UNC,   exclusively licensed to Liquidia Technologies
    
	
5003-01EP
    	
 
    	
 
    	
 
    	
035052/339740
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
06801056.0
    	
 
    	
PENDING
    	
 
    
	
5003-01EPDIV1
    	
 
    	
 
    	
 
    	
035052/424881
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
12185073.9
    	
 
    	
PENDING
    	
 
    
	
5003-02US
    	
 
    	
 
    	
 
    	
035052/417580
    	
 
    	
 
    	
 
    	
13/438431
    	
 
    	
4/3/2012
    	
 
    	
20120256354
    	
 
    	
8444899
    	
 
    
	
5013US
    	
 
    	
 
    	
 
    	
064549-5013US
    	
 
    	
Methods and materials for   fabricating laminate nanomolds and nanoparticles therefrom
    	
 
    	
11/633763
    	
 
    	
12/4/2006
    	
 
    	
20080131692
    	
 
    	
8128393
    	
 
    	
Assigned to Liquidia   Technologies
    
	
5013CN
    	
 
    	
 
    	
 
    	
064549-5013CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200780050904.3
    	
 
    	
101668594
    	
 
    
	
5013CNDIV1
    	
 
    	
 
    	
 
    	
063549-5013CNDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
201410061019.7
    	
 
    	
PENDING
    	
 
    
	
5013-01HK
    	
 
    	
 
    	
 
    	
064549-5013-01HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14111960.7
    	
 
    	
PENDING
    	
 
    
	
5013EP
    	
 
    	
 
    	
 
    	
064549-5013EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
07874162
    	
 
    	
PENDING
    	
 
    
	
5013JP
    	
 
    	
 
    	
 
    	
064549-5013JP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009-540277
    	
 
    	
PENDING
    	
 
    
	
5013JPDIV1
    	
 
    	
 
    	
 
    	
064549-5013JPDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2012-185449
    	
 
    	
5680597
    	
 
    
	
5013JPDIV2
    	
 
    	
 
    	
 
    	
064549-5013JPDIV2
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2015016697
    	
 
    	
PENDING
    	
 
    
	
5013KR
    	
 
    	
 
    	
 
    	
064549-5013KR
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009-7013846
    	
 
    	
10-1507816
    	
 
    
	
5013KRDIV1
    	
 
    	
 
    	
 
    	
064549-5013KRDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2014-7011301
    	
 
    	
10-1507805
    	
 
    
	
5013KRDIV2
    	
 
    	
 
    	
 
    	
064549-5013KRDIV2
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2014-7033229
    	
 
    	
PENDING
    	
 
    
	
5013-01US
    	
 
    	
 
    	
 
    	
064549-5013-01
    	
 
    	
 
    	
 
    	
13/354046
    	
 
    	
1/19/2012
    	
 
    	
20120189728
    	
 
    	
8439666
    	
 
    
	
5013-02US
    	
 
    	
 
    	
 
    	
064549-5013-02
    	
 
    	
 
    	
 
    	
13/834454
    	
 
    	
3/15/2013
    	
 
    	
13/834454
    	
 
    	
8662878
    	
 
    
	
5013-03US
    	
 
    	
 
    	
 
    	
064549-5013-03
    	
 
    	
 
    	
 
    	
14/157971
    	
 
    	
1/17/2014
    	
 
    	
14/157971
    	
 
    	
8945441
    	
 
    
	
5013-04US
    	
 
    	
 
    	
 
    	
064549-5013-04
    	
 
    	
 
    	
 
    	
14/574543
    	
 
    	
12/18/2014
    	
 
    	
2015/101743
    	
 
    	
PENDING
    	
 
    
	
5015US
    	
 
    	
 
    	
 
    	
064549-5015US
    	
 
    	
Nanostructured surfaces for   biomedical/
   biomaterial applications and processes 
   thereof
    	
 
    	
12/087374
    	
 
    	
1/4/2007
    	
 
    	
20090250588
    	
 
    	
8944804
    	
 
    	
Assigned to Liquidia   Technologies
    
	
5015-01US
    	
 
    	
 
    	
 
    	
064549-5015-01US
    	
 
    	
 
    	
 
    	
14/572895
    	
 
    	
12/17/2014
    	
 
    	
20150148903
    	
 
    	
PENDING
    	
 
    	
 
    

 

2

 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
Internal ID
    	
 
    	
UNC 
   Docket
    	
 
    	
Outside Counsel 
   Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Assigned/ 
   Licensed
    	
 
    
	
5020-01US
    	
 
    	
04-0104
    	
 
    	
035052/466548
    	
 
    	
Nanoparticle 
   fabrication 
   methods, 
   systems, and 
   materials
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/823334
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, 
   exclusively licensed to 
   Liquidia Technologies
    	
 
    
	
5020AU
    	
 
    	
 
    	
 
    	
035052/339168
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2006282042
    	
 
    	
2006282042
    	
 
    
	
5020BR
    	
 
    	
 
    	
 
    	
035052/339169
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
P10611827-5
    	
 
    	
PENDING
    	
 
    
	
5020CA
    	
 
    	
 
    	
 
    	
035052/339170
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2611985
    	
 
    	
PENDING
    	
 
    
	
5020CN
    	
 
    	
 
    	
 
    	
035052/339171
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200680029884.7
    	
 
    	
200680029884.7
    	
 
    
	
5020EP
    	
 
    	
 
    	
 
    	
035052/339172
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
06824764.2
    	
 
    	
PENDING
    	
 
    
	
5020IN
    	
 
    	
 
    	
 
    	
035052/339173
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
9431/DELNP/2007
    	
 
    	
PENDING
    	
 
    
	
S020JP
    	
 
    	
 
    	
 
    	
035052/339175
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2008-517202
    	
 
    	
5570721
    	
 
    
	
5020MX
    	
 
    	
 
    	
 
    	
035052/339176
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
MX/A/2007/016039
    	
 
    	
295862
    	
 
    
	
5022US
    	
 
    	
04-0104
    	
 
    	
035052/330497
    	
 
    	
Isolated and 
   fixed micro and 
   nano structures 
   and methods 
   thereof
    	
 
    	
11/594023
    	
 
    	
11/7/2006
    	
 
    	
20070264481
    	
 
    	
9040090
    	
 
    	
Assigned to 
   UNC, 
   exclusively 

licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5022EP
    	
 
    	
 
    	
 
    	
035052/343596
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
06849872.4
    	
 
    	
PENDING
    	
 
    
	
5022-01US
    	
 
    	
 
    	
 
    	
035052/462485
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/704047
    	
 
    	
PENDING
    	
 
    
	
5026-01US
    	
 
    	
07-0006
    	
 
    	
035052/430336
    	
 
    	
High fidelity 
   nano-structures 
   and arrays for 
   photovoltaics 
   and methods of 
   making the same
    	
 
    	
13/787134
    	
 
    	
3/6/2013
    	
 
    	
20130249138
    	
 
    	
ALLOWED
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5026EP
    	
 
    	
 
    	
 
    	
035052/364241
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
07835750.6
    	
 
    	
PENDING
    	
 
    
	
5026JP
    	
 
    	
 
    	
 
    	
035052/364251
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009509838
    	
 
    	
5162578
    	
 
    
	
5026CN
    	
 
    	
 
    	
 
    	
035052/364249
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200780026068.5
    	
 
    	
200780026068.5
    	
 
    
	
5026KR DIV01
    	
 
    	
 
    	
 
    	
035052/457771
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2015-7002658
    	
 
    	
ALLOWED
    	
 
    
	
5027US
    	
 
    	
07-0079
    	
 
    	
035052/379526
    	
 
    	
Discrete size and 
   shape specific 
   organic 
   nanoparticles 
   designed to 
   elicit an immune 
   response
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20100151031
    	
 
    	
PENDING
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5030-01US
    	
 
    	
 
    	
 
    	
064549-5030-01US
    	
 
    	
Nanoparticle 
   fabrication 
   methods, 
   systems, and 
   materials
    	
 
    	
13/918322
    	
 
    	
6/11/2013
    	
 
    	
13/918322
    	
 
    	
8685461
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    
	
5031US
    	
 
    	
04-0063
    	
 
    	
035052/339238
    	
 
    	
Liquid materials 
   for use in 
   electrochemical 

cells
    	
 
    	
11/040317
    	
 
    	
1/21/2005
    	
 
    	
20060083971
    	
 
    	
7435495
    	
 
    	
Assigned to 
   UNC, 
   exclusively 
   licensed to 
   Liquidia 
   Technologies
    	
 
    

 

3

 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Licensed
    
	
5033US
    	
 
    	
04- 0104
    	
 
    	
035052/367428
    	
 
    	
Nanoparticle fabrication methods, systems and   materials for fabricating artificial red blood cells
    	
 
    	
12/374182
    	
 
    	
7/27/2007
    	
 
    	
20100028994
    	
 
    	
8465775
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
5033-01US
    	
 
    	
04- 0104
    	
 
    	
035052/433688
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2013/0336884
    	
 
    	
PENDING
    	
 
    	
 
    
	
5035-01US
    	
 
    	
 
    	
 
    	
064549-5035- 01US
    	
 
    	
Nanoparticles having functional additives for self and   directed assembly and method of fabricating same
    	
 
    	
14/804567
    	
 
    	
7/21/2015
    	
 
    	
20150325329
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5037US
    	
 
    	
 
    	
 
    	
064549-5037US
    	
 
    	
System and method for producing particles and   patterned films
    	
 
    	
12/250461
    	
 
    	
10/13/2008
    	
 
    	
20090098380
    	
 
    	
7976759
    	
 
    	
Assigned to Liquidia Technologies
    
	
5037CN
    	
 
    	
 
    	
 
    	
064549-5037CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200880120295.9
    	
 
    	
20088012029 5.9
    	
 
    	
 
    
	
5037CNDIV1
    	
 
    	
 
    	
 
    	
064549- 0537CNDIV1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
201310435322.4
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037EP
    	
 
    	
 
    	
 
    	
064549-5037EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
08838460.7
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037IN
    	
 
    	
 
    	
 
    	
064549-5037IN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2648/CHENP/2010
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037JP
    	
 
    	
 
    	
 
    	
064549-5037JP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2010529144
    	
 
    	
5604301
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
064549-
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5037JPD1V01
    	
 
    	
 
    	
 
    	
5037JPDIV01
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014150037
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037HK
    	
 
    	
 
    	
 
    	
064549-5037HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1146018
    	
 
    	
PENDING
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
064549-5037-
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5037-01HK
    	
 
    	
 
    	
 
    	
01HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14109535.7
    	
 
    	
PENDING
    	
 
    	
 
    
	
5037-01US
    	
 
    	
 
    	
 
    	
064549-5037-01
    	
 
    	
 
    	
 
    	
13/156147
    	
 
    	
6/8/2011
    	
 
    	
20110300293
    	
 
    	
8518316
    	
 
    	
 
    
	
5037-02US
    	
 
    	
 
    	
 
    	
064549-5037-02
    	
 
    	
 
    	
 
    	
13/950447
    	
 
    	
7/25/2013
    	
 
    	
20140027948
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039-01US
    	
 
    	
 
    	
 
    	
064549-5039- 01US
    	
 
    	
Immunomodulator particles and methods of treating
    	
 
    	
14/737180
    	
 
    	
6/11/2015
    	
 
    	
20150273079
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5039EP
    	
 
    	
 
    	
 
    	
064549-5039EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
09717401.5
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039JP
    	
 
    	
 
    	
 
    	
064549-5039JP 064549-
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2011525477
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039JPDIV01
    	
 
    	
 
    	
 
    	
5039JPDIV01
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014-238952
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039CN
    	
 
    	
 
    	
 
    	
064549-5039CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200980116881
    	
 
    	
PENDING
    	
 
    	
 
    
	
5039HK
    	
 
    	
 
    	
 
    	
064549-5039HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1121640
    	
 
    	
PENDING
    	
 
    	
 
    

 

4

 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent No
    	
 
    	
Licensed
    
	
5042US
    	
 
    	
08-0090
    	
 
    	
035052/396046
    	
 
    	
Degradable compounds and methods of use thereof, particularly   with particle replication in non-wetting- templates
    	
 
    	
12/989315
    	
 
    	
4/24/2009
    	
 
    	
20110123446
    	
 
    	
8945527
    	
 
    	
Assigned to UNC and Liquidia Technologies, UNC rights   exclusively licensed to Liquidia Technologies
    
	
5044US
    	
 
    	
 
    	
 
    	
064549-5044US
    	
 
    	
Method for producing patterned materials
    	
 
    	
12/630569
    	
 
    	
12/3/2009
    	
 
    	
20100173113
    	
 
    	
8444907
    	
 
    	
Assigned to Liquidia Technologies
    
	
5044BR
    	
 
    	
 
    	
 
    	
064549-5044BR
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0923282-6
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044CN
    	
 
    	
 
    	
 
    	
064549-5044CN 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
200980156363
    	
 
    	
ALLOWED
    	
 
    	
 
    
	
5044CNDIV01
    	
 
    	
 
    	
 
    	
064549-5044CNDIV01
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
104162947
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044HK
    	
 
    	
 
    	
 
    	
064549-5044HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1165612
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044-01HK
    	
 
    	
 
    	
 
    	
064549-5044 01HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
15104672
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044IN
    	
 
    	
 
    	
 
    	
064549-5044IN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
4696/CHENP/2011 
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044KR
    	
 
    	
 
    	
 
    	
064549-5044KR
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10-2011-7015316
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044MX
    	
 
    	
 
    	
 
    	
064549-5044MX
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
MX/a/2011/005 900
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044EP
    	
 
    	
 
    	
 
    	
064549-5044EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
09831124.4
    	
 
    	
PENDING
    	
 
    	
 
    
	
5044-01US
    	
 
    	
 
    	
 
    	
064549-5044-01US 
    	
 
    	
 
    	
 
    	
13/867413
    	
 
    	
4/22/2013
    	
 
    	
20130241107
    	
 
    	
9205594
    	
 
    	
 
    
	
5044-02US
    	
 
    	
 
    	
 
    	
064549-5044- 02US
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/937158
    	
 
    	
PENDING
    	
 
    	
 
    
	
5047 01US
    	
 
    	
10-0005
    	
 
    	
035052/466958
    	
 
    	
Engineered aerosol particles and associated methods
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/809853
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC and Liquidia Technologies, UNC rights   exclusively licensed to Liquidia Technologies
    
	
5047EP
    	
 
    	
 
    	
 
    	
035052/414380
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
10742329.5
    	
 
    	
PENDING
    	
 
    
	
5047JP
    	
 
    	
 
    	
 
    	
035052/414381
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2012-532739
    	
 
    	
5656996
    	
 
    
	
5047JP DIV01
    	
 
    	
 
    	
 
    	
035052/451735
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2014-182213
    	
 
    	
PENDING
    	
 
    
	
5048US
    	
 
    	
 
    	
 
    	
064549-5048US
    	
 
    	
Nanowire grid polarizers and methods for fabricating   the same
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20120206805
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5052US
    	
 
    	
 
    	
 
    	
064549-5052US
    	
 
    	
Polysaccharide particle vaccines
    	
 
    	
13/580212
    	
 
    	
8/21/2012
    	
 
    	
20130209564
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
5052CN
    	
 
    	
 
    	
 
    	
064549-5052CN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
102834112
    	
 
    	
ALLOWED
    	
 
    
	
5052EP
    	
 
    	
 
    	
 
    	
064549-5052EP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
11745449.6
    	
 
    	
PENDING
    	
 
    	
 
    
	
5052IN
    	
 
    	
 
    	
 
    	
064549-5052IN
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
7248/CHENP/2012
    	
 
    	
PENDING
    	
 
    	
 
    
	
5052HK
    	
 
    	
 
    	
 
    	
064549-5052HK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1320693
    	
 
    	
PENDING
    	
 
    	
 
    

 

5

 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent   No
    	
 
    	
Licensed
    
	
5055-01US
    	
 
    	
11-0035
    	
 
    	
035052/451764
    	
 
    	
ASYMMETRIC BIFUNCTIONAL SILYL MONOMERS AND PARTICLES THEREOF   AS PRODRUGS AND DELIVERY VEHICLES FOR PHARMACEUTICAL , CHEMICAL AND BIOLOGICAL   AGENTS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2015/0065670
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
5055EP
    	
 
    	
 
    	
 
    	
035052/430928
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
11760950
    	
 
    	
PENDING
    	
 
    	
 
    
	
5055CN
    	
 
    	
 
    	
 
    	
035052/430925
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
201180055328
    	
 
    	
PENDING
    	
 
    	
 
    
	
6001US
    	
 
    	
11-0053
    	
 
    	
035052/435908
    	
 
    	
Nanoparticles with reversible disulfide linkages
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20140081012
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
6002US
    	
 
    	
12-0023
    	
 
    	
035052/445123
    	
 
    	
Geometrically engineered particles and methods for modulating   macrophage or immune response
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2015/0037428
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
6002EP
    	
 
    	
 
    	
 
    	
035052/445051
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2785326
    	
 
    	
PENDING
    	
 
    	
 
    
	
6003US
    	
 
    	
13-0007
    	
 
    	
035052/466560
    	
 
    	
High throughput manufacturing of microneedles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/761651
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC and Liquidia Technologies, UNC rights   exclusively licensed to Liquidia Technologies
    
	
6003EP
    	
 
    	
 
    	
 
    	
035052/466611
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14740839.7
    	
 
    	
PENDING
    	
 
    
	
6004US
    	
 
    	
14-0006
    	
 
    	
035052/470097
    	
 
    	
PARTICLES HAVING PEGYLATED SURFACES MODIFIED FOR LYMPHATIC   TRAFFICKING
    	
 
    	
 
    	
 
    	
 
    	
 
    	
14/782217
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Technologies
    
	
6005PCT
    	
 
    	
 
    	
 
    	
308970/2001
    	
 
    	
Virtual conjugate particles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
WO2015/073831
    	
 
    	
PENDING
    	
 
    	
Assigned to Liquidia Technologies
    
	
6009PCT
    	
 
    	
13-0101
    	
 
    	
035052/454611
    	
 
    	
Particles containing phospholipids or bioactive fatty   acids and uses thereof
    	
 
    	
 
    	
 
    	
 
    	
 
    	
PCT/US14/64312
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    

 

6

 

Liquidia Technologies, Inc.

Patent Portfolio Docket

17 December 2015

 

	
 
    	
 
    	
UNC
    	
 
    	
Outside Counsel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Assigned/
    
	
Internal   ID
    	
 
    	
Docket
    	
 
    	
Docket
    	
 
    	
Title
    	
 
    	
App. No.
    	
 
    	
App. Date
    	
 
    	
Pub No
    	
 
    	
Patent   No
    	
 
    	
Licensed
    
	
6016PCT
    	
 
    	
14-0117
    	
 
    	
035052/460309
    	
 
    	
Responses by increasing cytotoxic T-cell function or production of interferon   gamma therefrom
    	
 
    	
 
    	
 
    	
 
    	
 
    	
PCT/US15/23623
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    
	
6033PR
    	
 
    	
14-0006
    	
 
    	
035052/466070
    	
 
    	
Rapidly dissolvable PRINT Microneedles for the transdermal delivery of   therapeutics
    	
 
    	
62/190958
    	
 
    	
 
    	
 
    	
PENDING
    	
 
    	
PENDING
    	
 
    	
Assigned to UNC, exclusively licensed to Liquidia Technologies
    

 

7

 

 

	
Liquidia Technologies, Inc.
    

 

	
Trademark Report
    	
 
    	
 
    	
 
    	
 
    	
as of
    	
10/14/2014
    
	
COUNTRY
    	
REFERENCES#
    	
FILED
    	
APPL#
    	
REGDT
    	
REG#
    	
STATUS
    	
CLASSES
    
										

 

	
 
    	
All Actions Due (Oriainal)
    

 

	
ENGINEERING THE FUTURE OF HEALTHCARE
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UNITED STATES
    	
LIQ.21012
    	
2/1/2013
    	
85/838,191
    	
9/2/2014
    	
4,598,038
    	
REGISTERED
    	
40
    
	
 
    	
9/2/2020
    	
AFFIDAVIT OF USE
    	
 
    	
 
    	
 
    	
 
    	
 
    
									

 

40 - Custom manufacture of micro- and nano-particles, namely those composed of polymers, used in the manufacture of industrial goods; custom

manufacture of micro- and nano-partictes, namely those composed predominantly of polymers, prophylactics and/or therapeutics used for medical purposes

 

	
LIQUIDIA ENGINEERED DRUG THERAPIES
    

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UNITED STATES
    	
LIQ.21014
    	
2/1/2013
    	
85/838,195
    	
10/8/2013
    	
4,413,872
    	
REGISTERED
    	
40
    
	
 
    	
10/8/2019
    	
AFFIDAVIT OF USE
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
10/8/2023
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

40 -            Custom manufacture of micro- and nano-particles, namely those composed of polymers, used in the manufacture of industrial goods; custom

manufacture of micro- and nano-particles, namely those composed predominantly of polymers, prophylactics and/or therapeutics used for medical purposes

 

	
LIQUIDIA TECHNOLOGIES
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UNITED STATES
    	
LIQ.21004
    	
3/31/2006
    	
78/851,549
    	
10/23/2007
    	
3,321,419
    	
REGISTERED
    	
01,05,40
    
	
 
    	
10/23/2017
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

01 - Micro- and nano-particles, namely, those composed of polymers, used for general scientific and research purposes; micro- and nano-particles, namely, those composed predominantly of polymers, used in the manufacture of industrial goods; micro- and nano-particles, namely, those composed predominantly of polymers modified with an encapsulated or surface-coated substance that provides identification, used in industrial goods

 

05 - Micro- and nano-particles, namely, those composed of polymers, therapeutics or excipients used for medical diagnostic and treatment purposes

 

40 - Custom manufacture of micro- and nano-particles, namely, those composed predominantly of polymers, for general scientific and research purposes and used in the manufacture of industrial goods; custom manufacture of micro- and nano-particles, namely, those composed predominantly of polymers or therapeutics used for medical purposes

 

	
UNITED STATES
    	
LIQ.21006
    	
8/13/2007
    	
77/253,895
    	
6/10/2008
    	
3,444,256
    	
REGISTERED
    	
09
    
	
 
    	
6/10/2014
    	
AFFIDAVIT OF USE (Per email of   6/2/2014, evaluate filing prior to expiration of grace period)
    
	
 
    	
12/10/2014
    	
END OF GRACE PERIOD FOR   AFFIDAVIT OF USE
    	
 
    	
 
    
	
 
    	
6/10/2018
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

09 - Optical films; namely, micro- and nano-patterned films and membranes composed of polymers and inorganics, used for directing light; imprint

lithography, namely micro- and nano-patterned films and membranes composed primarily of polymers and inorganics, used for manufacture in a wide variety of industrial applications and for general scientific and research purposes

 

	
UNITED STATES
    	
LIQ.21008
    	
11/28/2007
    	
77/338,844
    	
3/15/2011
    	
3,931,367
    	
REGISTERED
    	
01
    
	
 
    	
3/15/2017
    	
AFFIDAVIT OF USE
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
3/15/2021
    	
RENEWAL
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

01 - Micro- and nano-particles, namely, those composed predominantly of polymers and inorganics, used in the manufacture of personal care and cosmetic applications and medical devices and microarrays

 

 

	
UNITED STATES
    	
LIQ.21010
    	
11/28/2007
    	
77/338,917
    	
7/22/2008
    	
3,471,235
    	
CANCELED
    	
01
    

 

01 - Micro- and nano-particles and micro- and nano-patterned films and membranes, namely, those composed predominantly of polymers and inorganics, used in the manufacture of photovoltaic and electrochemical cells

 

	
UNITED STATES
    	
LIQ.21016
    	
 
    	
PROPOSED
    	
40
    
	
 
    	
11/21/2014
    	
FILE APPLICATION (per email of 6/2/2014, revisit in   November)
    	
 
    

 

40 - Custom manufacture of micro- and nano-particles, namely those composed of polymers, used in the manufacture of industrial goods; custom

manufacture of micro- and nano-particles, namely those composed predominantly of polymers modified or therapeutics used for medical purposes

 

 

Liquidia Technologies, Inc.

 

Inbound Licenses (Section 5.12)

 

 

Liquidia Technologies, Inc.

 

Technology In-license Schedule, as of 14 December 2015

 

1.              University of North Carolina at Chapel Hill: Amended and Restated License Agreement, effective December 15, 2008, as amended.

2.              Envisia Therapeutics Inc.: License Agreement, effective November 8, 2013, as amended.

3.              LQ3 Pharmaceuticals, Inc.: License Agreement, effective July 10, 2014, as amended; and Sub-License Agreement, effective July 10, 2014, as amended.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00285-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00285-of-00352.parquet"}]]