Document:

Credit Agreement between Cancer Genetics, Inc. and Wells Fargo Bank N.A.

 Exhibit 10.21 

 

					
	

	  	 Wells Fargo Bank,

National Association
	  	 Credit Agreement

 

  
  

THIS CREDIT AGREEMENT (the “Agreement”) dated as of April 29, 2008 (“Effective Date”) is between Wells Fargo Bank,
National Association (the “Bank”) and Cancer Genetics, Inc. (the “Borrower”). 
 BACKGROUND 

The Borrower has asked that the Bank provide it with a $1,500,000.00 revolving line of credit for general business purposes. The Bank is agreeable to
meeting the Borrower’s request, provided that the Borrower agrees to the terms of this Agreement. The Revolving Note, this Agreement, and all “Security Documents” described in Exhibit A may collectively be referred to as the
“Documents.” 
 In consideration of the promises contained in this Agreement, the Borrower and the Bank agree as follows: 

 

	1.	LINE OF CREDIT 

  

	1.1	Line of Credit Amount. During the Line Availability Period defined below, the Bank agrees to provide a revolving line of credit (the “Line”) to
the Borrower. Outstanding amounts under the Line will not, at any one time, exceed ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AND 00/100 DOLLARS ($1,500,000.00). 

 

	1.2	Line Availability Period. The “Line Availability Period” will mean the period of time from the Effective Date or the date on which all conditions
precedent described in this Agreement have been met, whichever is earlier, through and including the earlier of October 31, 2009 (the “Line Expiration Date”). 

 

	1.3	Advances. The Borrower’s obligation to repay advances made under the Line will be evidenced by a single promissory note (the “Revolving
Note”) dated as of the Effective Date and in form and content acceptable to the Bank. Reference is made to the Revolving Note for interest rate and repayment terms. 

 

	2.	EXPENSES 

  

	2.1	Intentionally Omitted. 

  

	2.2	Documentation Expense. The Borrower agrees to reimburse the Bank for its reasonable expenses relating to the preparation of the Documents and any possible
future amendments to the Documents, which reimbursement may include, but shall not be limited to, reimbursement of reasonable attorneys’ fees, including the allocated costs of the Bank’s in-house counsel. Despite such reimbursement the
Borrower acknowledges that the Bank’s counsel is engaged solely to represent the Bank and does not represent the Borrower. 

  

	2.3	Collection Expenses. In the event the Borrower fails to pay the Bank any amounts due under this Agreement or under the Documents, the Borrower will pay all costs
of collection, including reasonable attorneys’ fees and legal expenses incurred by the Bank. 

	3.	DISBURSEMENTS AND PAYMENTS 

  

	3.1	Requests for Advances. Any Line advance permitted under this Agreement must be requested by telephone or in a writing delivered to the Bank (or
transmitted via facsimile) by any person reasonably believed by the Bank to be an authorized officer of the Borrower. The Bank will not consider any such request if there is an event which is, or with notice or the lapse of time would be, an event
of default under this Agreement. Proceeds will be deposited into the Borrower’s account at the Bank or disbursed in such other manner as the parties agree. 

 

	3.2	Payments. All principal, interest and fees due under the Documents shall be paid in immediately available funds as contracted in this Agreement and no later than
the payment due date set forth in the statement mailed to the Borrower by the Bank. Should a payment come due on a day other than a day on which the Bank is open for substantially all of its business (a “Banking Day”, except as otherwise
provided), then the payment shall be made no later than the next Banking Day. 

  

	4.	SECURITY 

 All amounts due
under this Agreement and the Documents will be secured as provided in Exhibit A. The Borrower also hereby grants the Bank a security interest (independent of the Bank’s right of set-off) in its deposit accounts at the Bank, if any, and in any
other debt obligations of the Bank to the Borrower. 
  

	5.	CONDITIONS PRECEDENT 

Notwithstanding the execution of this Agreement, or the delivery of all Documents in furtherance thereof, this Agreement and the Revolving
Note shall only become effective upon the timely satisfaction of the following conditions precedent: 
  

	(a)	The Borrower must deliver to the Bank the documents described in Exhibit A, properly executed and in form and content acceptable to the Bank, prior to the Bank’s
initial advance or disbursement under this Agreement and such documents shall have been filed of record and recorded as necessary or appropriate with such verification of filing and priority as may be required by the Bank. 

 

	(b)	The Borrower shall have reimbursed the Bank for all expenses and fees, including, without limitation, attorney’s fees, incurred by the Bank in connection with the
negotiation and preparation of the Documents. 

  

	6.	REPRESENTATIONS AND WARRANTIES 

 To induce the Bank to enter into this Agreement, the Borrower, to the best of its knowledge and upon due inquiry, makes the representations and warranties contained in Exhibit B. Each request for an
advance under this Agreement constitutes a reaffirmation of these representations and warranties. 
  

	7.	COVENANTS 

 During the
Line Availability Period, and thereafter until all amounts due under the Documents are paid in full, unless the Bank shall otherwise agree in writing, the Borrower agrees to: 

  
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	7.1	Financial Information 

  

	(a)	Annual Financial Statements. Provide the Bank within 120 days of the Borrower’s fiscal year end, beginning with fiscal year end 2008, the Borrower’s
annual audited financial statements, including but not limited to balance sheet, income statement, and statement of cash flows. 

  

	(b)	Notices. Provide the Bank prompt written notice of (1) any event which has or might after the passage of time or the giving of notice, or both, constitute
an event of default under the Documents, or (2) any event that would cause the representations and warranties contained in this Agreement to be untrue. 

 

	(c)	Additional Information. Provide the Bank with such other information as it may reasonably request, and permit the Bank to visit and inspect its properties and
examine its books and records. 

  

	7.2	Other Covenants 

  

	(a)	Nature of Business. Refrain from engaging in any line of business materially different from that presently engaged in by the Borrower. 

 

	(b)	Books and Records. Maintain adequate books and records consistent with sound business practices. 

 

	(c)	Compliance with Laws. Comply in all material respects with all laws applicable to its business and the ownership of its property. 

 

	(d)	Preservation of Rights. Maintain and preserve all rights, privileges, charters and franchises it now has, excluding sale of assets in the ordinary course of
business and the loss of a management contract with independent physicians. 

 These covenants were negotiated by
the Bank and Borrower based on information provided to the Bank by the Borrower. A breach of a covenant is an indication that the risk of the transaction has increased. As consideration for any waiver or modification of these covenants, the Bank may
require: additional collateral, guaranties or other credit support; higher fees or interest rates; and possible modifications to the Documents and the monitoring of the Agreement. The waiver or modification of any covenant that has been violated by
the Borrower will be made in the sole discretion of the Bank. These options do not limit the Bank’s right to exercise its rights under Section 8 of this Agreement. 

 

	8.	EVENTS OF DEFAULT AND REMEDIES 

  

	8.1	Default 

 Upon the
occurrence of any one or more of the following events of default, or at any time afterward unless the default has been cured, the Bank may declare the Line to be terminated and in its discretion accelerate and declare the unpaid principal, accrued
interest and all other amounts payable under the Revolving Note to be immediately due and payable, except as may be stated below: 
  

	(a)	Default by the Borrower in the payment when due of any principal or interest due under the Revolving Note and continuance for twenty (20) days.

  
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	(b)	Default by the Borrower in the observance or performance of any covenant or agreement contained in this Agreement, and continuance for more than twenty (20) days.

  

	(c)	Default by the Borrower in the observance or performance of any covenant or agreement contained in the Documents, or any of them, excluding this Agreement, after giving
effect to any applicable grace period. 

  

	(d)	Default by the Borrower in an amount exceeding $50,000.00 in any agreement with the Bank or any other lender that relates to indebtedness or contingent liabilities
which would allow the maturity of such indebtedness to be accelerated. 

  

	(e)	Any representation or warranty made by the Borrower to the Bank in this Agreement, or in any financial statement or report submitted to the Bank by or on behalf of the
Borrower or by or on behalf of the Personal Guarantor (defined below) before or after the Effective Date is untrue or misleading in any material respect. 

  

	(f)	Any litigation or governmental proceeding against the Borrower seeking an amount that would have a material adverse effect on the Borrower or the Borrower’s
operations and which is not insured or subject to indemnity by a solvent third party either 1) results in a judgment equal to or in excess of that amount against the Borrower or 2) remains unresolved on the 270th day following its filing.

  

	(g)	A garnishment, levy or writ of attachment, or any local, state, or federal notice of tax lien or levy is served upon the Bank for the attachment of property of the
Borrower in the Bank’s possession or indebtedness owed to the Borrower by the Bank. 

  

	(h)	John Pappajohn, or any other person who personally guaranties indebtedness of the Borrower, (the “Personal Guarantor”) dies. If the Bank exercises its right
to declare the Line to be terminated upon the death of the Personal Guarantor, and/or in its discretion accelerates and declares the unpaid principal, accrued interest and all other amounts payable under the Revolving Note due and payable, such
amounts shall be paid to the Bank by Borrower within ninety (90) days of the date that the Bank exercises its right to terminate and/or accelerate the Revolving Note. 

 

	(i)	The Personal Guarantor becomes insolvent or is the subject of a voluntary or involuntary petition under the United States Bankruptcy Code. 

 

	(j)	The Personal Guarantor is in default with respect to any liabilities or indebtedness owed to the Bank which would permit the Bank to accelerate his indebtedness or the
personal line of credit supporting the Personal Guarantor’s Personal Guaranty matures by its terms without extension, renewal, replacement, or refinancing. 

 

	8.2	Immediate Default 

  

	(a)	On the Line Expiration Date, the Line shall immediately terminate and the unpaid principal, accrued interest and all other amounts under the Revolving Note and the
Documents will become immediately due and payable without notice or demand. 

  

	(b)	 If, with or without the Borrower’s consent, a custodian, trustee or receiver is appointed for any of the Borrower’s properties, or if a
petition is filed by or against the Borrower under the United States Bankruptcy Code, then the Line shall immediately terminate and the unpaid principal, 

  
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accrued interest and all other amounts payable under the Revolving Note and the Documents will become immediately due and payable without notice or demand. 

 

	9.	LIMITATION AND INDEMNIFICATION OF LIABILITY. 

 The Bank shall not be liable or responsible to the Borrower, the Personal Guarantor, or any third party, in connection with its conduct or performance under this Agreement, or any of the Documents, except
for acts of gross negligence or willful misconduct, and the Borrower shall indemnify the Bank and hold the Bank harmless against all claims, actions, suits, proceedings, costs, expenses, losses, damages and liabilities of any kind, including tort,
penalties and interest, whether made by the Borrower, the Personal Guarantor or any third party, in connection with any act of the Bank, directly or indirectly, in connection with this Agreement, or the Documents, except for acts of gross negligence
or willful misconduct of the Bank. 
 These provisions and conditions shall survive the payment of all obligations to the Bank.

  

	10.	ARBITRATION. 

 Except for
“Core Proceedings” under the United States Bankruptcy Code, the Bank and the Borrower agree to submit to binding arbitration all claims, disputes and controversies between or among them, whether in tort, contract or otherwise (and their
respective employees, officers, directors, attorneys, and other agents) arising out of or relating to in any way (i) this Agreement, the Revolving Note, any loan documents executed in conjunction with this Agreement or the Revolving Note, their
negotiation, execution, collateralization, administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or termination; or (ii) requests for additional credit. Any arbitration proceeding will
(i) proceed in Des Moines, Iowa; (ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code); and (iii) be conducted in accordance with the Commercial Arbitration rules of the American Arbitration Association
(“AAA”). 
 This arbitration requirement does not limit the right of either party to (i) foreclose against
collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional ancillary remedies such as replevin, injunctive relief, attachment or the appointment
of a receiver, before, during or after the pendency or any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of either party to submit any dispute to arbitration, including those arising from the exercise
of the actions detailed in sections (i), (ii) and (iii) of this Section. 
 Any arbitration proceeding will be before a
single arbitrator selected according to the Commercial Arbitration Rules of the AAA. The arbitrator will be a neutral attorney who has practiced in the area of commercial law for a minimum of ten years. The arbitrator will determine whether or not
an issue is arbitratable and will give effect to the statutes of limitation in determining any claim. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. 

In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator’s discretion) any
pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. 

In any arbitration proceeding, discovery will be permitted and will be governed by the Iowa Rules of Civil Procedure. All discovery must
be completed no later than 20 days before the hearing 

  
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date and within 180 days of the commencement of arbitration proceedings. Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination
by the arbitrator upon a showing that the request for discovery is essential for the party’s presentation and that no alternative means for obtaining information is available. 

The arbitrator shall award costs and expenses of the arbitration proceeding in accordance with the provisions of the Revolving Note.

 This Section shall survive the payment of all obligations to the Bank. 

 

	11.	MISCELLANEOUS 

  

	(a)	360 Day Year. All interest and fees due under this Agreement will be calculated on the basis of actual days elapsed in a 360 day year. 

 

	(b)	GAAP. Except as otherwise stated in this Agreement, all financial information provided to the Bank and all calculations for compliance with financial covenants
will be made using generally accepted accounting principles consistently applied (“GAAP”). 

  

	(c)	No Waiver: Cumulative Remedies. No failure or delay by the Bank in exercising any rights under this Agreement shall be deemed a waiver of those rights. The
remedies provided for in the Agreement are cumulative and not exclusive of any remedies provided by law. 

  

	(d)	Amendments or Modifications. Any amendment or modification of this Agreement must be in writing and signed by the Bank and Borrower. Any waiver of any provision
in this Agreement must be in writing and signed by the Bank. 

  

	(e)	Binding Effect: Assignment. This Agreement and the Documents are binding on the successors and assigns of the Borrower and Bank. The Borrower may not assign its
rights under this Agreement and the Documents without the Bank’s prior written consent. The Bank may sell participations in or assign this Agreement and the Documents and exchange financial information about the Borrower with actual or
potential participants or assignees. 

  

	(f)	Iowa Law. This Agreement and the Documents will be governed by the substantive laws of the State of Iowa. Any action to enforce the provisions of this Agreement
and the Documents or arising from the actions of any party in connection therewith, shall be brought in the United States District Court for the Southern District of Iowa or in the Iowa District Court in Polk County, Iowa, except such action as may
be necessary by the Bank to protect, preserve and realize its security interest in collateral located in another jurisdiction. 

  

	(g)	Severability of Provisions. If any part of this Agreement or the Documents are unenforceable, the rest of this Agreement or the Documents may still be enforced.

  

	(h)	Integration. This Agreement and the Documents describe the entire understanding and agreement of the parties and supersedes all prior agreements between the Bank
and the Borrower relating to each credit facility subject to this Agreement, whether verbal or in writing. 

  

	(i)	Copies. The Borrower acknowledges receipt of a copy of the Agreement and all related documents referenced therein and executed by the Borrower in connection with
the Agreement and the indebtedness of the Borrower to the Bank under the Agreement. 

  
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 14. INTEGRATION. This Agreement represents the entire understanding of the Bank and Borrower with
respect to the Collateral and supersedes all prior oral or written agreements between the parties relating to the Collateral. 

IN WITNESS WHEREOF, this Agreement was executed the day and year first above written. 

 

			
	CANCER GENETICS, INC.
		
	By:	 	 /s/ Louis J. Maione

	Title:	 	 President

  
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 EXHIBIT A 
 CONDITIONS PRECEDENT TO INITIAL ADVANCE 
 Note 

The Revolving Note 
 Security Documents

 Personal Guaranty of John Pappajohn. The unconditional Personal Guaranty of John Pappajohn. Pursuant to the Guaranty, the Guarantor
guarantees repayment of the Revolving Note and any extensions, renewals, replacements or refinancings thereof. 
 Consent to Credit Agreement
and Ratification of Guaranty of John Pappajohn. An agreement with John Pappajohn whereby he (i) agrees that the Bank may reduce his personal line of credit with the Bank that is evidenced by a promissory note, dated August 1, 2007, in
the principal amount of $14,000,000 (and any extensions, renewals, replacements or refinancings thereof) for purposes of supporting the Personal Guaranty of John Pappajohn. and (ii) permits the Bank, in the event that it makes demand under such
Personal Guaranty, to make an advance under such personal line of credit for purposes of satisfying his obligations under such Personal Guaranty. 
 Security Agreement of Borrower. The Security Agreement signed by the Borrower, granting the Bank a security interest in all of the Borrower’s assets, including, without limitation, accounts,
inventory, equipment and general intangibles described in that Agreement, together with one or more UCC-1 Financing Statements sufficient to perfect the security interest granted to the Bank in each jurisdiction where such property is located and/or
the jurisdiction in which the Borrower is organized. 
 Authorization 
 Corporate Certificate of Authority. A certificate of the Borrower’s corporate secretary as to the incumbency and signatures of the officers of the Borrower signing the Documents and containing
a copy of resolutions of the Borrower’s board of directors authorizing execution of the Documents and performance in accordance with the terms of the Agreement. 
 Organization 
 Articles of Incorporation And By-Laws. A certified copy of the
Borrower’s Articles of Incorporation and By-Laws and any amendments, if applicable. 
 Certificate of Good Standing. A copy of the
Borrower’s Certificate of Good Standing, recently certified by the Delaware Secretary of State. 

  
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 EXHIBIT B 
 REPRESENTATIONS AND WARRANTIES 
 Organizational Status. The Borrower is a corporation
duly formed and in good standing under the laws of the State of Delaware. 
 Chief Executive Office. The Borrower’s chief executive
office is located at 228 River Vale Road, River Vale, NJ 07675. 
 Authorization. This Agreement, and the execution and delivery of the
Documents required hereunder, is within the Borrower’s powers, has been duly authorized and does not conflict with any of its organizational documents or any other agreement by which the Borrower is bound, and has been signed by all persons
authorized and required to do so under its organizational documents. 
 Litigation. There is no litigation or governmental proceeding
pending or threatened against the Borrower which could have a material adverse effect on the Borrower’s financial condition or business, except those disclosed in Exhibit C attached hereto. 

Taxes. The Borrower has paid when due all federal, state and local taxes. 
 No Default. Except as otherwise disclosed to the Bank prior to the date hereof, there is no event which is, or with notice or the lapse of time would be, an event of default under this Agreement.

 ERISA. The Borrower is in compliance in all material respects with ERISA and has received no notice to the contrary from the PBGC or
other governmental entity. 
 Environmental Matters. (1) The Borrower is in compliance in all material respects with all health and
environmental laws applicable to the Borrower and its operations and knows of no conditions or circumstances that could interfere with such compliance in the future; (2) the Borrower has obtained all environmental permits and approvals required
by law for the operation of its business; and (3) the Borrower has not identified any “recognized environmental conditions”, as that term is defined by the American Society for Testing and Materials in its standards for environmental
due diligence, which could subject the Borrower to enforcement action if brought to the attention of appropriate governmental authorities. 

  
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 EXHIBIT C 
 PENDING AND/OR THREATENED LITIGATION 
 The Borrower brought suit against Kreatech
Biotechnology B.V. (“Kreatech”) in the United States District Court for the District of New Jersey on or about February, 2007 for fraud, breach of contract, unfair competition and injunctive relief resulting from Kreatech’s refusal to
abide by its obligations under certain agreements between the Borrower and Kreatech. Kreatech subsequently counterclaimed for unjust enrichment, unfair business practices and abuse of process. 

The case was recently transferred to the United States District Court for the Southern District of New York. Prior to the transfer,
however, both parties filed partial Motions to Dismiss which, as a result of the transfer, are presently pending before the Southern District. A status and scheduling conference has been scheduled by the Court for May 9, 2008. However, the
parties are actively discussing the possibility of an out-of-court settlement prior to the May 9th conference. 

  
 10Security Agreement between Cancer Genetics, Inc and Wells Fargo Bank N.A.

 Exhibit 10.22 

 

					
	

	  	Wells Fargo Bank, National Association	  	Security Agreement

  
  

 

			
	Wells Fargo Bank, National Association	 	Cancer Genetics, Inc.
	666 Walnut Street, P.O. Box 837	 	228 River Vale Road
	Des Moines, Iowa 50304-0837	 	River Vale, NJ 07675
	(the “Bank”)	 	(the “Borrower”)

 April 29, 2008 
 1. SECURITY INTEREST AND COLLATERAL. To secure payment of the Obligations (as defined below), the Borrower hereby enters into this Security Agreement (the “Agreement”) and grants to the Bank a
security interest (the “Security Interest”) in the Collateral (defined below). 
 “Obligations” means every present and
future debt, liability, and obligation which the Borrower may owe to the Bank, whether direct or indirect, due or unmatured, absolute or contingent, primary or secondary, or joint, several or joint and several, and whether it arises with or without
documents, such as deposit account overdrafts and charges, and including all extensions, renewals, amendments or replacements of such debt, liability, or obligation. 
 “Collateral” shall mean all right, title and interest of Borrower in and to the following: 
 (a) All goods and equipment now owned or hereafter acquired, including, without limitation, all machinery, fixtures, vehicles, and any interest in any of the foregoing, and all attachments, accessories,
accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located; 
 (b) All inventory, now owned
or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including inventory as is temporarily out of Borrower’s custody or
possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above;

 (c) All contract rights and general intangibles now owned or hereafter acquired, including, without limitation, goodwill, trademarks,
servicemarks, trade styles, trade names, patents, patent applications, leases, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs, computer discs,
computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind; 

(d) All accounts and each and every right of Borrower to the payment of money, whether such right to payment now exists or hereafter arises, whether such
accounts or other rights to payment arise out of a sale, lease or other disposition of goods or other property by Borrower, out of a rendering of services by Borrower, out of a loan by Borrower, out of the overpayment of taxes or other liabilities
of Borrower, or otherwise arise under any contract or agreement whether such right to payment is or is not already earned by performance, and howsoever such 

 
right to payment may be evidenced, together with all other rights and interests (including all liens and security interests) which Borrower may at any time have by law or agreement against any
account debtor or other obligor obligated to make any such payment or against any of the property of such account debtor or other obligor; all including but not limited to all present and future debt instruments, chattel papers including tangible
and electronic chattel paper, accounts including account receivables, and health-care-insurance receivables, contract rights, deposit accounts, letter of credit rights, loans and obligations receivable, tax refunds, unearned insurance premiums,
rebates, and instruments and negotiable documents. 
 (d) All documents, cash, deposit accounts, securities, investment property, letters of
credit, certificates of deposit, instruments and chattel paper now owned or hereafter acquired and Borrower’s Books relating to the foregoing; 
 (e) All copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, now owned or
hereafter acquired; all trade secret rights, including all rights to unpatented inventions, know-how, operating manuals, license rights and agreements and confidential information, now owned or hereafter acquired; all mask work or similar rights,
now owned or hereafter acquired; all claims for damages by way of any past, present and future infringement of any of the foregoing; and 
 (f)
All Borrower’s Books relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds thereof. 

The Collateral shall also include, as applicable, all (i) products of the Collateral; (ii) substitutions and replacements for the Collateral;
(iii) proceeds from the sale or disposition of the Collateral, including insurance proceeds and any rights of subrogation resulting from the damage or destruction of the Collateral; and (iv) for Collateral that is tangible, all additions,
increases, improvements, accessories, attachments, parts, equipment and repairs now or in the future attached to or used in connection with such Collateral, and any warehouse receipts, bills of lading or other documents of title now or in the future
evidencing the Borrower’s ownership of the Collateral. 
 2. REPRESENTATIONS, WARRANTIES AND AGREEMENTS. Borrower represents, warrants and
agrees that: 
 (a) Borrower is a corporation organized under the laws of the State of Delaware whose chief executive office is located at 228
River Vale Road, River Vale, NJ 07675, and that this Agreement has been authorized by all necessary corporate action. 
 (b) The Collateral will
be primarily used for business purposes. 
 (c) Borrower has and will have title to each item of Collateral free and clear of all security
interests and other encumbrances, except: 
 (i) the Security Interest; 

(ii) liens for taxes not delinquent or which the Borrower is contesting in good faith; 

  
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 (iii) liens securing purchase money indebtedness to the extent consented to in writing in
advance by the Bank; and 
 (iv) those liens of record against the Collateral as of the date of the Agreement. 

The Borrower will defend the Collateral against the claims of all persons except the Bank. Borrower will not dispose of any interest in the Collateral
without the prior written consent of the Bank, except that, until the occurrence of an Event of Default and the revocation by the Bank of Borrower’s right to do so, Borrower may sell Inventory in the ordinary course of business. 

(d) Borrower will execute and deliver to the Bank financing statements and any other documents that the Bank may require to perfect its Security Interest
in the Collateral, and will not permit any tangible Collateral to be located in any state and/or county in which a financing statement perfecting such Collateral is required to be but has not been filed. The Borrower hereby irrevocably authorizes
the Bank at any time and from time to time to file in any filing office in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as all assets of the Borrower
or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the Uniform Commercial Code of the State or such jurisdiction, or (ii) as being of an equal or lesser
scope or with greater detail, and (b) provide any other information required by part 5 of Article 9 of the Uniform Commercial Code of the State, or such other jurisdiction, for the sufficiency or filing office acceptance of any financing
statement or amendment, including (i) whether the Borrower is an organization, the type of organization and any organizational identification number issued to the Borrower and, (ii) in the case of a financing statement filed as a fixture
filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the Collateral relates. The Borrower agrees to furnish any such information to the Bank promptly upon the Bank’s
request. The Borrower also ratifies its authorization for the Bank to have filed in any Uniform Commercial Code jurisdiction any like initial financing statements or amendments thereto if filed prior to the date hereof. 

(e) Each Account and each document is (or will be when arising or issued) the valid and legally enforceable obligation, subject to no defense, set-off or
counterclaim (other than those arising in the ordinary course of business) of the obligor shown by the Borrower’s records to be obligated to pay such Account. Borrower will not agree to the material modification or cancellation of any such
right to payment without the Bank’s prior written consent, and will not subordinate any such Account or right to payment to any other claim. 
 (f) Borrower will at all times: 
 (i) keep all tangible Collateral in good working
order and condition, normal depreciation excepted; 
 (ii) promptly pay all taxes and other governmental charges levied or
assessed upon Collateral; 
 (iii) permit the Bank to examine or inspect any Collateral, wherever located, and to examine,
inspect and copy Borrower’s books and records pertaining to the Collateral and Borrower’s business, and to request verifications from account obligors of amounts owed to Borrower; 

  
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 (iv) keep accurate and complete records regarding the Collateral and Borrower’s
business and financial condition and provide the Bank such periodic reports of condition as the Bank may reasonably request; 

(v) promptly notify the Bank of any loss of or material damage to any Collateral or of any adverse change known to Borrower regarding the
prospect of payment on any Account; 
 (vi) upon Bank’s request, promptly deliver to the Bank any instrument, document or
chattel paper constituting Collateral, duly endorsed or assigned by Borrower; 
 (vii) keep all tangible Collateral insured
against loss and damage, including risks of fire (including extended coverage), theft, collision (in case of Collateral consisting of motor vehicles) and such other risks in such amounts as the Bank may reasonably request, with any loss payable to
the Bank to the extent of its interest and with the commitment of the insurer to notify the Bank before cancellation; 
 (viii)
pay when due or reimburse the Bank on demand for all costs of collection of the Obligations and all other out-of-pocket expenses (including in each case all reasonable attorney’s fees) incurred by the Bank in connection with this Agreement and
the Obligations, including expenses incurred in any litigation or bankruptcy proceedings; 
 (ix) prevent the Collateral from
being used or kept in violation of all applicable law; 
 (x) obtain a waiver or consent from the owner and any mortgagee of any
real property where the Collateral may be located that provides that the Security Interest will at all times be senior to any such interest or lien. 
 (g) If Borrower breaches any covenant or warranty in this Agreement, and the breach or failure continues for a period of ten calendar days after the Bank gives written notice (or, in the case of the
agreement contained in clause (vii) of Section 2(f), immediately upon the occurrence of such failure, without notice or lapse of time), the Bank may in its discretion perform or observe such agreements in the Borrower’s or the
Bank’s name, and may take any other actions which the Bank deems necessary to cure or correct such failure. Borrower shall reimburse the Bank on demand for all costs and expenses (including reasonable attorneys’ fees) incurred by the Bank
in performing or observing such agreements. If the Borrower fails to reimburse the Bank upon demand, the Bank may cause such amounts to be advanced or added to any of the Obligations secured hereunder, which will bear interest at the highest rate
provided under the note designated for this purpose by the Bank at the time of the advance. 
 (h) Borrower irrevocably appoints the Bank or its
delegate as attorney-in-fact of Borrower with the right (but not the duty) to execute, deliver, endorse or file, in the name and on behalf of Borrower, any instruments, documents, financing statements, applications for insurance or other agreements
required of Borrower under Section 2 at any time following an Event of Default. Following an Event of Default, the Bank may in its discretion enforce any rights of the Borrower under any contract of insurance, and in the Borrower’s or the
Bank’s name, execute and deliver proofs of claim, receive payment of proceeds, endorse checks and other instruments representing payment of such proceeds, and adjust, litigate, compromise or release any claim against the issuer of any such
policy. 

  
 4 

 3. EVENTS OF DEFAULT. Each of the following occurrences shall constitute an event of default under this
Agreement (each an “Event of Default”): 
 (a) the Borrower fails to make any payment of principal or interest due under any of the
Obligations or the Borrower is otherwise in default with respect to any of the Obligations, and any applicable grace period stated therein, if any, has lapsed and the indebtedness has been accelerated and is fully due and payable; or 

(b) the Borrower fails to observe or perform any of the covenants or agreements contained in this Agreement, after giving effect to any applicable grace
period, if any; or 
 (c) any representation or warranty by the Borrower set forth in this Agreement or made to the Bank in any financial
statements or reports submitted to the Bank by or on behalf of Borrower is materially false or misleading. 
 4. REMEDIES UPON EVENT OF DEFAULT.
Upon the occurrence of an Event of Default and at any time thereafter, the Bank may exercise any one or more of the following rights and remedies: 
 (a) declare all unmatured Obligations to be immediately due and payable, without presentment or other notice or demand; 
 (b) exercise all rights available upon default to a secured party under the Uniform Commercial Code. The Bank may require Borrower to make the Collateral available to the Bank at a place to be designated
by the Bank which is reasonably convenient to both parties, and if notice to Borrower of any intended disposition of Collateral or any other intended action is required by law in a particular instance, such notice shall be deemed commercially
reasonable if given in the manner specified in this Agreement at least 10 calendar days prior to the date of any public sale or disposition or the date after which any private sale may occur; 
 (c) exercise any or all other rights available to the Bank by law or agreement against the Collateral, the Borrower or any other person or property. 

The Bank shall not be obligated to preserve any rights Borrower may have against prior parties, to liquidate or realize on the Collateral at all or in
any particular manner or order, or apply any cash proceeds of Collateral in any particular order. 
 5. OTHER PERSONAL PROPERTY. Unless at the
time the Bank takes possession of any tangible Collateral, or at any time within seven days thereafter, the Borrower gives the Bank written notice of the existence of property belonging to the Borrower that does not constitute Collateral, but which
is located or found upon or within such Collateral, together with a description of such property, the Bank shall not be responsible or liable to the Borrower with respect to such property unless it has actual knowledge of its existence and location
upon or in such Collateral. 
 6. LOCK BOX, COLLATERAL ACCOUNT. Upon the Bank’s request following an Event of Default, the Borrower will
direct each obligor on an account to make payments to a special lock box under the control of the Bank. Borrower authorizes and directs the Bank to deposit into a special collateral account to be established and maintained with the Bank all checks,
drafts and cash payments, received in said lock box. All deposits to this collateral account shall constitute Collateral and shall not constitute payment of any Obligation. At its 

  
 5 

 
option, the Bank may, at any time, apply collected funds on deposit in the collateral account to the payment of the Obligations in such order of application as the Bank may determine, or permit
the Borrower to withdraw all or part of the balance of the collateral account. If a collateral account is established, Borrower agrees that it will promptly deliver to the Bank for deposit into the collateral account all payments on Accounts. All
such payments shall be delivered to the Bank in the form received (except for Borrower’s endorsement where necessary). Until deposited, all payments on Accounts received by Borrower shall be held in trust by the Borrower as the property of the
Bank, and shall not be commingled with any funds or property of the Borrower. 
 7. COLLECTION RIGHTS OF THE BANK. In addition to its rights
under Sections 4 and 6, the Bank may, at any time following an Event of Default, notify any account obligor or any other person obligated to pay any amount due with respect to an Account to make payment directly to the Bank. Upon the Bank’s
request, Borrower will notify such account obligors and other obligors in writing and will state on all invoices to such account obligors or other obligors that the amount due is payable directly to the Bank. At any time after the Bank or Borrower
gives such notice to an account obligor or other obligor, the Bank may, in its discretion, and in its own name or in Borrower’s name, demand, sue for, collect or receive any money or property at any time payable or receivable on account of, or
securing, any such chattel paper, account, or other right to payment, or grant any extension to, make any compromise or settlement with or otherwise agree to waive or change the obligations (including collateral obligations) of any such account
obligor or other obligor. 
 8. AMENDMENTS. This Agreement can be waived, amended or terminated and the Security Interest released, only in an
express writing signed by the Bank. A waiver signed by the Bank shall be effective only in the specific instance and for the specific purpose given. 
 9. NO WAIVER; CUMULATIVE REMEDIES. Delay or failure to act shall not preclude the exercise or enforcement of any of the Bank’s rights or remedies. All rights of the Bank shall be cumulative and may
be exercised singularly or concurrently, at the Bank’s option, and the exercise of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other. 

10. NOTICES. All notices to be given to Borrower shall be deemed sufficiently given if delivered or mailed to the Borrower at the above address or at the
most recent address shown on the Bank’s records. 
 11. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure to the
benefit of Borrower and the Bank and their respective heirs, representatives, successors and assigns and shall take effect when signed by Borrower and delivered to the Bank. A photographic or other reproduction of this Agreement or of any financing
statement signed by the Borrower shall have the same force and effect as the original. 
 12. APPLICABLE LAW; SEVERABILITY. Except to the extent
otherwise required by law, this Agreement shall be governed by the laws of the state in which the Bank’s main office is located. If any provision or application of this Agreement is unenforceable in any respect, such unenforceability shall not
affect other provisions of this Agreement. 
 13. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and warranties contained in
this Agreement shall survive the execution, delivery and performance of this Agreement and the creation and payment of the Obligations. 

  
 6 

	(i)	Counterparts; Telefax Signature. This Agreement may be executed in one or more identical counterparts, which, when executed by all parties, shall constitute one
and the same Agreement. The parties hereto may accept this Agreement by sending an executed copy of the signature page by telefax to the other and by forwarding on the same date to the other the originally executed signature page.

 IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE
ENFORCEABLE. NO OTHER TERNS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE ALSO APPLIES TO ANY OTHER CREDIT AGREEMENTS
(EXCEPT CONSUMER LOANS OR OTHER EXEMPT TRANSACTIONS) NOW IN EFFECT BETWEEN YOU AND THIS LENDER. BY SIGNING BELOW THE BORROWER HEREBY ACKNOWLEDGES THAT IT HAS RECEIVED COPIES OF THIS AGREEMENT AND ALL OTHER DOCUMENTS. 

 

			
	Address for notices to Bank:	 	Address for notices to Borrower:
		
	Wells Fargo Bank, National Association	 	Cancer Genetics Inc.
	666 Walnut Street, P.O. Box 837	 	228 River Vale Road
	Des Moines, Iowa 50304-0837	 	River Vale, NJ 07675
	Attention: Rebecca Gibson, Vice President	 	
		
		 	With a copy to:
		
		 	John Pappajohn
		 	c/o Equity Dynamics
		 	2116 Financial Center
		 	666 Walnut Street
		 	Des Moines, Iowa 50309

  

											
		 	WELLS FARGO BANK, NATIONAL ASSOCIATION	 		 	CANCER GENETICS, INC.
						
		 	By:	 	 /s/ Rebecca Gibson
	 		 	By:	 	 /s/ Louis J. Maione

		 		 	Rebecca Gibson, Vice President	 		 	Its:	 	 President

  
 7

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