Document:

a50564812ex10_4.htm

Exhibit 10.4

 

SECOND AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

(EX-IM LOAN FACILITY)

THIS SECOND AMENDMENT to Loan and Security Agreement (Ex-Im Loan Facility) (this “Amendment”) is entered into as of February __, 2013, by and among Silicon Valley Bank (“Bank”) and ADVANCED PHOTONIX, INC. and PICOMETRIX, LLC (individually, a “Borrower” and, collectively, the “Borrowers”).

 

Recitals

 

A.           Bank, Advanced Photonix, Inc. and Picometrix, LLC are parties to that certain Loan and Security Agreement (Ex-Im Loan Facility) dated as of January 31, 2012, as amended by a First Amendment to Loan and Security Agreement dated as of October 25, 2012  (as the same may from time to time be further amended, modified, supplemented or restated, collectively, the “Loan Agreement”).

 

B.           Borrowers have requested that Bank amend the Loan Agreement.

 

C.           In reliance upon the representations and warranties set forth below, Bank has agreed to so amend certain provisions of the Loan Agreement in accordance with the terms and subject to the conditions set forth herein.

 

Agreement

 

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

 

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

 

2.           Amendments to Loan Agreement.

 

              2.1            Section 13 (Definitions).  The following term in Section 13.1 is amended and restated to read as follows:

 

“Revolving Margin” is 0.5% when the Liquidity Ratio is greater than or equal to 3.0 and trailing 3 month EBITDA is greater than or equal to $1.00, 1.5% when the Liquidity Ratio is greater than or equal to 3.0 and trailing 3 month EBITDA is less than $1.00, but greater than or equal to negative $500,000, 3.0% when the Liquidity Ratio is greater than or equal to 3.0 and trailing 3 month EBITDA is less than negative $500,000 but greater than or equal to negative $750,000; 1.25% when the Liquidity Ratio is greater than or equal to 2.5 but less than 3.0 and trailing 3 month EBITDA is greater than or equal to $1.00, 2.25% when the Liquidity Ratio is greater than or equal to 2.5 but less than 3.0 and trailing 3 month EBITDA is less than $1.00 but greater than or equal to negative $500,000, 3.50% when the Liquidity Ratio is greater than or equal to 2.5 but less than 3.0 and trailing 3 month EBITDA is less than negative $500,000 but greater than or equal to negative $750,000; and 1.75% when the Liquidity Ratio is less than 2.5 and trailing 3 month EBITDA is greater than or equal to $1.00, 2.75% when the Liquidity Ratio is less than 2.5 and trailing 3 month EBITDA is less than $1.00 but greater than or equal to negative $500,000, 4.00% when the Liquidity Ratio is less than 2.5 and trailing 3 month EBITDA is less than negative $500,000 but greater than or equal to negative $750,000.

 

3.           Limitation of Amendments.

 

              3.1            The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

 

  

  

  

 

              3.2            This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

 

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

 

              4.1             Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

 

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

 

              4.3            Except with respect to Borrower’s By-Laws, which were amended on October 16, 2012, the organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

              4.4            The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;

 

              4.5            The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

 

              4.6            The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

 

              4.7            This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

 

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

 

6.           Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment an amount equal to the Bank Expenses incurred in connection with this Amendment, and (c) and such other documents as Bank may reasonably request.

 

[Signature page follows.]

 

  

  

  

 

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

	
BANK

	 	
BORROWER

	 
	 	 	 	 
	
SILICON VALLEY BANK                                              

	 	
ADVANCED PHOTONIX, INC.

	 
	 	 	 	 	 	 
	 	 	 	By: 	 	 
	By: 	 	 	Name:	 	 
	Name: 	 	 	Title:	 	 
	Title: 	 	 	 	 	 
	 	 	 	PICOMETRIX, LLC	 
	 	 	 	 	 	 
	 	 	 	By: 	 	 
	 	 	 	Name: 	 	 
	 	 	 	Title:EX-10.64

 Exhibit 10.64 
 February 13, 2013 
 John Pappajohn 
 666 Walnut Street, Ste 2116 
 Des Moines, IA 50309 

 

	Re:	      Amended and Restated Credit Agreement with Cancer Genetics, Inc. 

Dear John: 
 This letter
agreement will memorialize your agreement with respect to the $2.0 million in outstanding principal amount of your loans to the Company made pursuant to that certain Amended and Restated Credit Agreement (“Credit Agreement”) by and among
you, Pecora and Company and NNJCA Capital, LLC, as lenders, and CANCER GENETICS, INC., a Delaware corporation (the “Company”), as borrower, dated as of February 13, 2012, and the promissory notes (the “Notes”) issued
pursuant thereto. The promises set forth in this letter agreement are made to induce us and our underwriters to proceed with the initial public offering, which is also beneficial to you. 

You hereby irrevocably agree to convert the $2.0 million principal amount of your loans under the Credit Agreement into shares of common
stock of the Company effective upon the consummation of the Company’s initial public offering and that, notwithstanding anything to the contrary in the Credit Agreement or the Notes, the conversion price shall be equal to the initial public
offering price per share so that all Notes issued to you under the Credit Agreement shall be converted to common stock upon consummation of the initial public offering. You also hereby represent to us that your spouse, Mary Pappajohn, has consented
to the terms of this letter agreement. 
  

	
	Very truly yours,
	
	 /s/ Panna L. Sharma

	Panna L. Sharma
	President and CEO

  

	
	Agreed to and Accepted by:
	
	/s/ John Pappajohn
	John PappajohnEX-10.65

 Exhibit 10.65 
 February 13, 2013 
 NNJCA Capital, LLC 
 100 First Street - Suite 301 
 Hackensack, New Jersey 07601 

Attention: Dr. Andrew Pecora 
  

	Re:	      Amended and Restated Credit Agreement with Cancer Genetics, Inc. 

Dear Dr. Pecora: 
 This letter
agreement will memorialize your agreement with respect to $500,000 of the outstanding principal amount of your loan to the Company made pursuant to that certain Amended and Restated Credit Agreement (“Credit Agreement”) by and among John
Pappajohn, Pecora and Company and NNJCA Capital, LLC, as lenders, and Cancer Genetics, Inc., a Delaware corporation (the “Company”), as borrower, dated as of February 13, 2012 and the promissory note (the “Note”) issued
pursuant thereto. The promises set forth in this letter agreement are made to induce us and our underwriters to proceed with the initial public offering, which is also beneficial to you. 

You hereby irrevocably agree to convert $500,000 of the principal amount of your loan into shares of common stock of the Company
effective upon the consummation of the Company’s initial public offering and that, notwithstanding anything to the contrary in the Credit Agreement or the Note, the conversion price shall be equal to the initial public offering price per share.
The remaining outstanding principal amount of your loan, together with accrued interest and premium, shall be paid in accordance with the Credit Agreement. 

 

	
	Very truly yours,
	
	 /s/ Panna L. Sharma

	Panna L. Sharma
	President and CEO

 Agreed to and Accepted by: 
  

			
	NNJCA CAPITAL, LLC
		
	By:	 	 /s/ Andrew Pecora

	Name:	 	Andrew Pecora
	Title:	 	Manager (President)

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