Document:

ex_130549.htm

Exhibit 4.12

 

 

Form of Representative’s Warrant

 

 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “Securities ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION THEREFROM. 

 

This Warrant is subject to restrictions on transfer and may not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant or the Shares acquirable upon exercise hereof, other than in compliance with THE 180 DAY LOCK-UP PERIOD OF Rule 5110(g) of the Financial Industry Regulatory Authority, Inc. and Section 7 hereof. 

 

WARRANT

 

To Purchase

Common Shares of

 

DIAMEDICA THERAPEUTICS, INC. 

 

Date: [_________], 2018

 

THIS CERTIFIES THAT, for value received, Craig-Hallum Capital Group LLC, or its registered assigns (herein referred to as the “Purchaser” or “holder”), is entitled to purchase from DiaMedica Therapeutics Inc., a company organized under the laws of Canada (herein called the “Company”), ____________ (____________)1 voting common shares (the “Shares”), without par value (the “Common Shares”), of the Company (subject to adjustment as noted below) at the exercise price of USD$[____]2 per Share (the “Warrant Purchase Price”) (subject to adjustment as noted below). This Warrant may only be exercised during the Exercise Period specified herein. This Warrant has been issued pursuant to the Underwriting Agreement, dated [______], 2018, between the Company and the Purchaser, as representative of the several underwriters listed in Schedule I thereto, in connection with a public offering (the “Offering”) of [_______] Common Shares.

 

 

1 NTD: Insert 5.0% of the number of shares sold in the Offering on the Date of this Warrant.

2 NTD: The exercise price of the Warrant will be equal to 120.0% of the price to the public per share in the Offering.

 

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This Warrant is subject to the following provisions, terms and conditions:

 

1.     The Warrant exercise period (the “Exercise Period”) for this Warrant shall begin on the effective date of the Offering and shall end on the fifth (5th) anniversary of the effective date of the Offering. As used herein, the “effective date of the Offering” means [insert pricing date], 2018.

 

2.     The rights represented by this Warrant may be exercised, in whole or in part, by the holder hereof as follows:

 

 (a)      The holder hereof shall deliver to the Company written notice of exercise of this Warrant and in connection therewith shall surrender this Warrant (properly endorsed if required) at the principal office of the Company and pay the Warrant Purchase Price for such Shares as provided for herein.

 

 (b)      The holder hereof shall pay the Warrant Purchase Price (i) in immediately available funds or (ii) by “cashless exercise,” in which event the Company shall issue to the holder hereof a number of Shares determined as follows:

 

X = Y * [(A-B)/A]

 

where:

 

X = the number of Shares to be issued to the holder.

 

Y = the total number of Shares with respect to which this Warrant is being exercised.

 

A = the fair market value of one Share at the time the “cashless exercise” election is made.

 

B = the Warrant Purchase Price then in effect for the Shares at the “cashless exercise” election is made.

 

For purposes of this Warrant, the fair market value of one Share as of a particular date shall be determined as follows: (i) if the Common Shares are traded on a U.S. national securities exchange, the value shall be deemed to be the average of the closing prices of the Common Shares on such exchange over the 10-Trading Day period ending on the Trading Day prior to the net exercise election; (ii) if clause (i) is not applicable, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) of the Common Shares on the principal securities exchange or securities market on which the Common Shares trade over the 10-Trading Day period ending on the Trading Day prior to the net exercise election; and (iii) if none of the foregoing is applicable, the value shall be the fair market value of one Common Share mutually agreed upon by the holder and the Company; provided, that if the Company and the holder are unable to agree upon the fair market value of a Common Share, then the board of directors of the Company shall use its good faith judgment to determine the fair market value, and such determination shall be binding upon all parties absent demonstrable error.

 

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For purposes of this Warrant, “Trading Day” means any day on which the Common Shares are traded on a U.S. stock exchange or, if inapplicable, the principal securities exchange or securities market on which the Common Shares are then traded.

 

 (c)      Upon exercise of this Warrant, the Company shall promptly (but in no event later than five Trading Days after the date this Warrant is exercised in accordance with its terms) issue or cause to be issued and cause to be delivered to or upon the written order of the holder and in such name or names as the holder may designate (provided that, if the holder directs the Company to deliver a certificate for the Shares in a name other than that of the holder or an affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”)) of the holder, it shall deliver to the Company on the date of exercise an opinion of counsel reasonably satisfactory to the Company to the effect that the issuance of such Shares in such other name may be made pursuant to an available exemption from the registration requirements of the Securities Act and all applicable state securities or blue sky laws), a certificate for the Shares issuable upon such exercise or credit for such Shares through the facilities of The Depository Trust Company (“DTC”) to the account designated by the holder (with any restrictive legends required by applicable securities laws). The form of delivery of the Shares acquired upon exercise will be at the election of the holder, subject to the other terms of this Warrant. The holder, or any person permissibly so designated by the holder to receive the Shares acquired upon exercise hereof, shall be deemed to have become the holder of record of such Shares as of the date notice of exercise and payment of the applicable Warrant Purchase Price is made in accordance with the terms hereof.

 

 (d)      If by the sixth Trading Day after the date this Warrant is exercised in accordance with this Section 2 the Company fails to deliver the required number of Shares in the manner required pursuant to Section 2(c), then, in addition to any other remedy the holder may have at law or in equity (including a decree of specific performance or injunctive relief), the holder hereof will have the right to rescind such exercise.

 

 (e)      In the event that this Warrant has not been exercised prior to the end of the Exercise Period and the fair market value of one Share as determined in accordance with the provisions hereof exceeds the Warrant Purchase Price on the last day of the Exercise Period, on such date this Warrant will be automatically exercised pursuant to the cashless exercise provisions set forth in Section 2(b); provided, that the holder hereof, upon the request of the Company, must surrender to the Company this Warrant within 30 days of such request for delivery thereof by the Company. If the holder hereof does not surrender this Warrant within such time period, this Warrant will be deemed to not have been exercised under this Section 2(e) and will terminate and no longer be exercisable.

 

3.     The Company represents and warrants that this Warrant has been duly authorized by all necessary corporate action, has been duly executed and delivered and is a legal and binding obligation of the Company, enforceable against the Company in accordance with the terms of this Warrant, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity. The Company covenants and agrees that all Shares which may be issued upon the exercise of the rights represented by this Warrant according to the terms hereof have been duly authorized and will, upon issuance and payment therefor, be validly issued and fully paid. The Company further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized, and reserved for the purpose of issue upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of its Common Shares to provide for the exercise of the rights represented by this Warrant, free from preemptive rights or other actual contingent purchase rights other than those held by a holder of this Warrant (as a result of holding this Warrant).

 

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4.     The Company will pay any documentary stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings attributable to the issuance of Shares upon the exercise of this Warrant; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrants, or Shares issued upon exercise of this Warrant, in a name other than that of the Purchaser. The Purchaser shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Shares upon exercise hereof.

 

5.     The above provisions are, however, subject to the following:

 

 (a)      The Warrant Purchase Price shall, from and after the date of issuance of this Warrant, be subject to adjustment from time to time as hereinafter provided. Upon each adjustment of the Warrant Purchase Price, the holder of this Warrant shall thereafter be entitled to purchase, at the Warrant Purchase Price resulting from such adjustment, the number of Shares obtained by multiplying the Warrant Purchase Price in effect immediately prior to such adjustment by the number of Shares purchasable pursuant hereto immediately prior to such adjustment and dividing the product thereof by the Warrant Purchase Price resulting from such adjustment.

 

 (b)      In case the Company shall at any time subdivide its outstanding Common Shares into a greater number of shares, the Warrant Purchase Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding Common Shares shall be combined into a smaller number of shares, the Warrant Purchase Price in effect immediately prior to such combination shall be proportionately increased.

 

 (c)      If any capital reorganization or reclassification of the capital stock of the Company, shall be effected in such a way that holders of Common Shares shall be entitled to receive stock or securities with respect to or in exchange for Common Shares, then, as a condition of such reorganization, reclassification or consolidation, lawful and adequate provision shall be made whereby the holder hereof shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in this Warrant and in lieu of the Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby, such shares of stock or securities as may be issued or payable with respect to or in exchange for a number of Shares equal to the number of Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby had such reorganization, reclassification or consolidation not taken place, and in any such case appropriate provision shall be made with respect to the rights and interests of the holder of this Warrant to the end that the provisions hereof (including without limitation provisions for adjustments of the warrant purchase price and of the number of shares purchasable upon the exercise of this Warrant) shall thereafter be applicable, as nearly as may be, in relation to any shares of stock or securities thereafter deliverable upon the exercise hereof.

 

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 (d)      Upon any adjustment of the Warrant Purchase Price or any adjustment of any material terms hereof, then and in each such case an officer of the Company shall, as soon as practicable after the occurrence of any event that requires an adjustment or readjustment, give signed written notice thereof, by first–class mail, postage prepaid, addressed to the registered holder of this Warrant at the address of such holder as shown on the books of the Company, which notice shall state the Warrant Purchase Price resulting from such adjustment, any material change in the terms of the Warrant, and the increase or decrease, if any, in the number of Shares purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

 

 (e)      If at any time during the Exercise Period:

 

(i)      there shall be any capital reorganization, or reclassification of the capital stock of the Company; or

 

(ii)     there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company;

 

then, in any one or more of said cases, the Company shall give written notice, by first–class mail, postage prepaid, addressed to the registered holder of this Warrant at the address of such holder as shown on the books of the Company, of the date on which (A) the books of the Company shall close or a record shall be taken for such distribution or subscription rights, or (B) such reorganization, reclassification or consolidation, dissolution, liquidation or winding up, or conversion or redemption shall take place, as the case may be. Such notice shall also specify the date as of which the holders of capital stock of record shall participate in such distribution or subscription rights, or shall be entitled to exchange their capital stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, dissolution, liquidation or winding up, or conversion or redemption, as the case may be. Such written notice shall be given at least 15 days prior to the action in question and not less than 15 days prior to the record date or the date on which the Company’s transfer books are closed in respect thereto.

 

 (f)      If any event occurs as to which in the opinion of the Board of Directors of the Company the other provisions of this Section 5 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the holder of this Warrant or of the Common Shares in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make an adjustment in the application of such provisions, in accordance with such essential intent and principles, so as to protect such purchase rights as aforesaid.

 

6.     This Warrant shall not entitle the holder hereof to any voting rights or other rights as a shareholder of the Company.

 

7.     This Warrant is exchangeable, upon the surrender hereof by the holder hereof at the principal office of the Company, for new Warrants of like tenor representing in the aggregate the right to purchase the number of Shares which may be purchased hereunder, each of such new Warrants to represent the right to purchase such number of Shares as shall be designated by said holder hereof at the time of such surrender. Subject to compliance with applicable securities laws and the other terms of this Warrant, if the Company’s Common Shares are delisted from the TSX Venture Exchange this Warrant then may be assigned or transferred by the holder and this Warrant shall be binding on and inure to the benefit of the parties hereto and their respective transferees, successors and assigns. Notwithstanding the foregoing, pursuant to Rule 5110(g) of the Financial Industry Regulatory Authority, Inc. (“FINRA”), this Warrant shall not be sold during the Offering, or sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant or the Shares acquirable upon exercise hereof, by any person for a period of 180 days immediately following the effective date of the Offering, except as provided in paragraph (g)(2) of Rule 5110(g) of the FINRA.

 

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8.     Each certificate for the securities purchased under this Warrant shall bear a legend as follows unless such securities have been registered under the Securities Act:

 

“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

 The securities evidenced by this Warrant shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of the counsel of the Company, or (ii) a registration statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission and compliance with applicable state securities law has been established.

 

9.     The Company will not be required upon the exercise of this Warrant to issue fractions of Shares, but may, at its option, either (a) purchase such fraction for an amount in cash equal to the current value of such fraction computed on the basis of the closing market price of the Common Shares as quoted on the principal exchange or trading facility on which the Common Shares are traded on the Trading Day immediately preceding the day upon which this Warrant was surrendered for exercise in accordance with Section 2 hereof, or (b) issue the required Share. By accepting this Warrant, the holder hereof expressly waives any right to receive any fractional share upon exercise of a Warrant, except as expressly provided in this Section 9.

 

10.    If this Warrant is exercised for less than all of the then-current number of Shares purchasable hereunder, then the Company shall, concurrently with the issue of the Shares purchased by the holder hereof upon such exercise in accordance with Section 2, issue a new warrant exercisable for the remaining number of Shares purchasable under this Warrant.

 

11.    Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant and security reasonably satisfactory to it, the Company shall execute and deliver a new warrant of like tenor as the Warrant so lost, stolen, destroyed or mutilated.

 

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12.    This Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company and the holder agree that the prevailing party(ies) in any action or proceeding arising out of or relating to this Warrant shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses directly relating to such action or proceeding and/or incurred in connection with the preparation therefor.

 

13.     The Company hereby irrevocably submits to the non–exclusive jurisdiction of the U.S. Federal and state courts in the Borough of Manhattan in The City of New York (each, a “New York Court”) in any suit or proceeding arising out of or relating to this Warrant. The Company irrevocably and unconditionally waives any objection to the laying of venue of any suit or proceeding arising out of or relating to this Warrant in a New York Court, and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such suit or proceeding in any such court has been brought in an inconvenient forum. The Company irrevocably appoints DiaMedica USA Inc., located at 2 Carlson Parkway, Suite 260, Minneapolis, Minnesota 55447, Attention: President and Chief Executive Officer, as its authorized agent (the “Authorized Agent”) upon which process may be served in any such suit or proceeding, and agrees that service of process in any manner permitted by applicable law upon such Authorized Agent shall be deemed in every respect effective service of process in any manner permitted by applicable law upon the Company in any such suit or proceeding. The Company further agrees to take any and all action as may be necessary to maintain such designation and appointment of such Authorized Agent in full force and effect for a period of five years from the date of this Warrant. The Company irrevocably waives, to the fullest extent permitted by law, any and all rights to trial by jury in any legal proceeding arising out of or relating to this Warrant.

 

14.     To the extent that the Company or any of its respective properties, assets or revenues may have or may hereafter become entitled to, or have attributed to them, any right of immunity, on the grounds of sovereignty, from any legal action, suit or proceeding, from set off or counterclaim, from the jurisdiction of any Canadian, New York State or U.S. federal court, from service of process, from attachment upon or prior to judgment, or from attachment in aid of execution of judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any such court in which proceedings may at any time be commenced, with respect to their obligations, liabilities or any other matter under or arising out of or in connection with this Warrant, the Company hereby irrevocably and unconditionally, to the extent permitted by applicable law, waives and agrees not to plead or claim any such immunity and consents to such relief and enforcement.

 

15.      All modifications or amendments of this Warrant shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought.

 

16.     This Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

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17.     This Warrant shall inure solely to the benefit of and shall be binding upon, the holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Warrant or any provisions herein contained.

 

[The remainder of this page has intentionally been left blank.]

 

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IN WITNESS WHEREOF, DiaMedica Therapeutics Inc. has caused this Warrant to be signed by its duly authorized officer and this Warrant to be dated as of the date set forth above.

 

 

	 	DiaMedica Therapeutics Inc.
	 	 
	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

 

Acknowledged and agreed:

 

Craig-Hallum Capital Group LLC

 

 

 

By:                                                      

Name:

Title:

 

[Signature Page to Representative’s Warrant]

 

 

 

 

WARRANT EXERCISE FORM

 

To be Executed by the Holder of this Warrant if such Holder

Desires to Exercise this Warrant in Whole or in Part

 

To:     DiaMedica Therapeutics Inc. (the “Company”)

 

The undersigned                                                                                         

 

 

Please insert Social Security or other

identifying number of Holder:

 

 

hereby irrevocably elects to exercise the right of purchase represented by this Warrant for, and to purchase thereunder, ___________ Common Shares (the “Shares”) provided for therein.

 

Payment of the Warrant Purchase Price for the Shares shall take the form of [Check the applicable box below]:

 

	 	
			☐

				
			Immediately available U.S. funds; or

			

 

	 	
			☐

				
			the cancellation of such number of Shares as is necessary to satisfy the Warrant Purchase Price with respect to the exercise of the number of Shares set forth above in accordance with the formula set forth in Section 2(b) of the Warrant.

			

 

The undersigned requests that such Shares be registered in the name of the undersigned or in such other name specified below:

 

	Name:	 

 

The Shares shall be delivered as follows:

 

	 
	 
	 

 

and, if such number of Shares does not constitute all shares purchasable under the Warrant, that a new Warrant for the balance remaining of such shares be registered in the name of, and delivered to, the undersigned at the address stated above.

 

Unless the undersigned has selected the “cashless exercise” option provided for in Section 2(b) of the Warrant, the undersigned hereby represents and warrants that the undersigned is acquiring the Shares for its own account for investment purposes only, and not for resale or with a view to distribution of such shares or any part thereof.

 

 

 

 

Dated:                                                    

 

Name of Holder:                                                                 

 

Signature                                                                            

 

TitleEX-10.1

 Exhibit 10.1 

Execution Version 

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of November 21, 2018 (the
“Amendment Effective Date”), is made among scPharmaceuticals Inc., a Delaware corporation (“Borrower”), Solar Capital Ltd., a Maryland corporation (“Solar”), in its capacity as collateral agent (in
such capacity, together with its successors and assigns in such capacity, “Collateral Agent”) and the Lenders listed on Schedule 1.1 of the Loan and Security Agreement (as defined below) or otherwise a party hereto from time to time
including Solar in its capacity as a Lender and Silicon Valley Bank (“Bank”) as a Lender (each a “Lender” and collectively, the “Lenders”). 

The Borrower, the Lenders and Collateral Agent are parties to a Loan and Security Agreement dated as of May 23, 2017 (as amended, restated or
modified from time to time, the “Loan and Security Agreement”). The Borrower has requested that the Lenders agree to certain amendments to the Loan and Security Agreement. The Lenders have agreed to such request, subject to the
terms and conditions hereof. 
 Accordingly, the parties hereto agree as follows: 

 

	SECTION	 1    Definitions; Interpretation. 

(a)    Terms Defined in Loan and Security Agreement. All capitalized terms used in this Amendment (including in the
recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan and Security Agreement. 

(b)    Interpretation. The rules of interpretation set forth in Section 1.1 of the Loan and Security Agreement
shall be applicable to this Amendment and are incorporated herein by this reference. 
  

	SECTION	 2    Amendments to the Loan and Security Agreement. 

(a)    The Loan and Security Agreement shall be amended as follows effective as of the Amendment Effective Date: 

(i)    New Definitions. The following definitions are added to Section 1.3 in their proper
alphabetical order: 
 “First Interest Only Extension Conditions” shall mean satisfaction of each of the following:
(a) no Event of Default shall have occurred and be continuing and (b) the Borrower shall have maintained compliance with Section 7.14 at all times, subject to verification by Collateral Agent and each Lender (including supporting
documentation reasonably requested by Collateral Agent or any Lender). 
 “Qualified Cash” means the amount of
Borrower’s cash and Cash Equivalents held in accounts subject to a Control Agreement in favor of Collateral Agent. 

“Qualified Cash A/P Amount” means the amount of Borrower’s accounts payable that have not been paid within ninety
(90) days from the invoice date of the relevant account payable (other than accounts that are subject to good faith disputes as permitted herein and for which Borrower maintains adequate reserves in accordance with GAAP). 

“Second Interest Only Extension Conditions” shall mean satisfaction of each of the following: (a) no Event of Default
shall have occurred and be continuing; (b) the Borrower shall have maintained compliance with Section 7.14 at all times, subject to verification by Collateral Agent and each Lender (including supporting documentation reasonably requested
by Collateral Agent or any Lender); (c) on or before May 15, 2019, Borrower has furnished Collateral Agent and each Lender with (i) FDA minutes of Borrower’s Type C meetings with the FDA evidencing agreement regarding protocols for a dose
delivery validation study, (ii) written response from the FDA evidencing 

 
agreement regarding protocols for the human factors studies (collectively, the “Dose Delivery Validation and Human Factors Studies”) required for FUROSCIX® and (iii) evidence that the FDA does not require additional clinical trials prior to resubmission of the new drug application for
FUROSCIX®, in each case, in form and substance satisfactory to Collateral Agent and each Lender; (d) as of May 31, 2019, Qualified Cash is at least
Seventy-Two Million Dollars ($72,000,000.00) plus the Qualified Cash A/P Amount; and (e) achievement of the First Interest Only Extension Conditions. 

“Third Interest Only Extension Conditions” shall mean satisfaction of each of the following: (a) no Event of Default
shall have occurred and be continuing; (b) the Borrower shall have maintained compliance with Section 7.14 at all times, subject to verification by Collateral Agent and each Lender (including supporting documentation reasonably requested
by Collateral Agent or any Lender); (c) on or before August 31, 2019, Borrower has furnished Collateral Agent and each Lender with evidence satisfactory to Collateral Agent and each Lender of completion of enrollment of the Dose Delivery Validation
and Human Factors Studies; (d) as of August 31, 2019, Qualified Cash is at least Sixty-Three Million Dollars ($63,000,000.00) plus the Qualified Cash A/P Amount; and (e) achievement of the Second Interest Only Extension Conditions. 

(ii)    Amended Definition. The definition of “Final Fee” is hereby amended by replacing
“$250,000” appearing therein with “$325,000” therein. 
 (iii)    Amended and Restated
Definition. The following definitions are hereby amended and restated as follows: 
 “Amortization Date” is December 1,
2018; provided that, (i) if the First Interest Only Extension Conditions are satisfied and the Borrower so elects, then June 1, 2019; (ii) if the Second Interest Only Extension Conditions are satisfied and the Borrower so elects, then
September 1, 2019; and (iii) if the Third Interest Only Extension Conditions are satisfied and Borrower so elects, then December 1, 2019. 

(iv)    Section 2.2(b) is hereby amended by replacing “thirty (30) months” appearing therein with “the
number of Payment Dates from the Amortization Date through the Maturity Date”. 
 (v)    Section 7 is hereby amended
by inserting a new Section 7.14 at the end thereof as follows: 
 7.14    Minimum Liquidity Requirement.
Permit, at any time, Qualified Cash to be less than Ten Million Dollars ($10,000,000.00) plus the Qualified Cash A/P Amount. 

(vi)    Exhibit D to the Loan and Security Agreement is hereby amended and restated in its entirety in the form attached
hereto as Exhibit A. 
 (b)    References Within Loan and Security Agreement. Each reference in the Loan
and Security Agreement to “this Agreement” and the words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment.

 SECTION 3    Conditions of Effectiveness. The effectiveness of Section 2 of this Amendment
shall be subject to the satisfaction of each of the following conditions precedent: 
 (a)    Fees and Expenses.
The Borrower shall have paid (i) an amendment fee of Thirty-Five Thousand Dollars ($35,000), which shall be deemed fully earned and non-refundable upon payment, (ii) all invoiced costs and expenses
then due in accordance with Section 5(e), and (iii) all other fees, costs and expenses, if any, due and payable as of the Amendment Effective Date under the Loan and Security Agreement. 

  
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 (b)    This Amendment. Collateral Agent shall have received this
Amendment, executed by the Borrower. 
 (c)    Officer’s Certificate. Collateral Agent shall have received a
certificate of an officer of the Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Agreement, in form acceptable to Collateral Agent and the Lenders. 

(d)    Representations and Warranties; No Default. On the Amendment Effective Date, after giving effect to the
amendment of the Loan and Security Agreement contemplated hereby: 
 (i)    The representations and warranties contained
in Section 4 shall be true and correct on and as of the Amendment Effective Date as though made on and as of such date; and 

(ii)    There exist no Events of Default or events that with the passage of time would result in an Event of Default. 

SECTION 4 Representations and Warranties. To induce the Lenders to enter into this Amendment, the Borrower hereby confirms, as of the date hereof,
(a) that the representations and warranties made by it in Section 5 of the Loan and Security Agreement and in the other Loan Documents are true and correct in all material respects; provided, however, that such materiality qualifier shall
not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; (b) that there has not been and there does not exist a Material Adverse Change; and (c) that the information
included in the Perfection Certificate delivered to Collateral Agent on the Effective Date remains true and correct in all material respects. For the purposes of this Section 4, (i) each reference in Section 5 of the Loan and Security
Agreement to “this Agreement,” and the words “hereof,” “herein,” “hereunder,” or words of like import in such Section, shall mean and be a reference to the Loan and Security Agreement as amended by this
Amendment, and (ii) any representations and warranties which relate solely to an earlier date shall not be deemed confirmed and restated as of the date hereof (provided that such representations and warranties shall be true, correct and
complete in all material respects as of such earlier date). 
 SECTION 5    Miscellaneous. 

(a)    Loan Documents Otherwise Not Affected; Reaffirmation. Except as expressly amended pursuant hereto or
referenced herein, the Loan and Security Agreement and the other Loan Documents shall remain unchanged and in full force and effect and are hereby ratified and confirmed in all respects. The Lenders’ and Collateral Agent’s execution and
delivery of, or acceptance of, this Amendment shall not be deemed to create a course of dealing or otherwise create any express or implied duty by any of them to provide any other or further amendments, consents or waivers in the future. The
Borrower hereby reaffirms the grant of security under Section 4.1 of the Loan and Security Agreement and hereby reaffirms that such grant of security in the Collateral secures all Obligations under the Loan and Security Agreement, including without
limitation any Term Loans funded on or after the Amendment Effective Date, as of the date hereof. 

(b)    Conditions. For purposes of determining compliance with the conditions specified in
Section 3, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless Collateral Agent shall have received notice from such Lender prior to the Amendment Effective Date specifying its objection thereto. 

(c)    Release. In consideration of the agreements of Collateral Agent and each Lender contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby fully, absolutely, unconditionally and
irrevocably releases, remises and forever discharges Collateral Agent and each Lender, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys,
employees, agents and other representatives (Agent, Lenders and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands,
actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, 

  
 3 

 accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which Borrower, or any of its successors, assigns, or other legal
representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of
this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with the Loan Agreement, or any of the other Loan Documents or transactions thereunder or related thereto. Borrower understands,
acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in
breach of the provisions of such release. Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional
nature of the release set forth above. 
 (d)    No Reliance. The Borrower hereby acknowledges and confirms to
Collateral Agent and the Lenders that the Borrower is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any
other Person. 
 (e)    Costs and Expenses. The Borrower agrees to pay to Collateral Agent within ten
(10) days of its receipt of an invoice (or on the Amendment Effective Date to the extent invoiced on or prior to the Amendment Effective Date), the reasonable documented
out-of-pocket costs and expenses of Collateral Agent and the Lenders party hereto, and the reasonable documented fees and disbursements of counsel to Collateral Agent
and the Lenders party hereto (including allocated costs of internal counsel), in connection with the negotiation, preparation, execution and delivery of this Amendment and any other documents to be delivered in connection herewith on the Amendment
Effective Date or after such date. 
 (f)    Binding Effect. This Amendment binds and is for the benefit of the
successors and permitted assigns of each party. 
 (g)    Governing Law. THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY
LAWS OTHER THAN THE LAWS OF THE STATE OF NEW YORK), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL. 

(h)    Complete Agreement; Amendments; Exit Fee Agreement. This Amendment and the Loan Documents represent the
entire agreement about this subject matter and supersede prior negotiations or agreements with respect to such subject matter. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject
matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents. For the avoidance of doubt and notwithstanding anything to the contrary in this Amendment, Borrower (a) reaffirms its obligations under the Exit
Fee Agreement, including without limitation its obligation to pay the Exit Fee (as defined in the Exit Fee Agreement) if and when due thereunder, and (b)    agrees that the defined term “Loan Agreement” as defined in
the Exit Fee Agreement shall on and after the Amendment Effective Date mean the Loan and Security Agreement as amended by this Amendment and as may be amended, restated or modified from time to time on or after the Amendment Effective Date. 

(i)    Severability of Provisions. Each provision of this Amendment is severable from every other provision in
determining the enforceability of any provision. 
 (j)    Counterparts. This Amendment may be executed in any
number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Amendment. Delivery of an executed counterpart of a signature page of this
Amendment by facsimile, portable document format (.pdf) or other electronic transmission will be as effective as delivery of a manually executed counterpart hereof. 

  
 4 

 (k)    Loan Documents. This Amendment and the documents related
thereto shall constitute Loan Documents. 
 [Balance of Page Intentionally Left Blank; Signature Pages Follow] 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date
first above written. 
  

			
	 BORROWER:
  

SCPHARMACEUTICALS INC.,
 as
Borrower

 
			
		
	By:	 	/s/ John Tucker
	Name:	 	John Tucker
	Title:	 	President and Chief Executive Officer

 [Signature Page to First Amendment to Loan and Security Agreement (scPharma/Solar)]

 
			
	 COLLATERAL AGENT AND LENDER:
  

SOLAR CAPITAL LTD.,
 as Collateral Agent and a
Lender

 
			
		
	By:	 	/s/ Anthony J. Storino
	Name:	 	Anthony J. Storino
	Title:	 	Authorized Signatory

 [Signature Page to First Amendment to Loan and Security Agreement (scPharma/Solar)]

 
			
	 LENDER:
  

SILICON VALLEY BANK,
 as a Lender

		
	By:	 	/s/ Lauren Cole
	Name:	 	Lauren Cole
	Title:	 	Vice President

 [Signature Page to First Amendment to Loan and Security Agreement (scPharma/Solar)]

 EXHIBIT A 

EXHIBIT D 

Compliance Certificate 
  

	TO:	 SOLAR CAPITAL LTD., as Collateral Agent and Lender 

	    	 SILICON VALLEY BANK, as Lender 

 

	FROM:	 SCPHARMACEUTICALS INC. 

The undersigned authorized officer (“Officer”) of SCPHARMACEUTICALS INC. (“Borrower”), hereby certifies that in accordance
with the terms and conditions of the Loan and Security Agreement dated as of May 23, 2017, by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the “Loan Agreement;” capitalized terms used but
not otherwise defined herein shall have the meanings given them in the Loan Agreement), 
 (a)    Borrower is in
complete compliance for the period ending                                  with
all required covenants except as noted below; 
 (b)    There are no defaults or Events of Default, except as noted
below; 
 (c)    Except as noted below, all representations and warranties of Borrower stated in the Loan Documents are
true and correct in all material respects on this date and for the period described in (a), above; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date. 

(d)    Borrower, and each of Borrower’s Subsidiaries, has timely filed all required tax returns and reports,
Borrower, and each of Borrower’s Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower, or Subsidiary, except as otherwise permitted pursuant to the terms of
Section 5.8 of the Loan Agreement; 
 (e)    No Liens have been levied or claims made against Borrower or any of
its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent and the Lenders. 

Attached are the required documents, if any, supporting our certification(s). The Officer, on behalf of Borrower, further certifies that the attached
financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of
unaudited financial statements, for the absence of footnotes and subject to year-end audit adjustments as to the interim financial statements. 

Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column. 

 

													
	 	 	Reporting Covenant	  	Requirement	  	Actual	 	  	Complies	 
					
	1)	 	Financial statements	  	Monthly within 30 days	  	 	                	 	  	 	Yes        No        N/A	 
					
	2)	 	Annual (CPA Audited) statements	  	Within 180 days after FYE	  				  	 	Yes        No        N/A	 
					
	3)	 	Annual Financial Projections/Budget (prepared on a monthly basis)	  	 Annually (within earlier 30 days of
 approval
or 60 days of FYE), and when revised
	  				  	 	Yes        No        N/A	 
					
	4)	 	A/R & A/P agings	  	If applicable	  				  	 	Yes        No        N/A	 
					
	5)	 	8-K, 10-K and 10-Q Filings	  	If applicable, within 5 days of filing	  				  	 	Yes        No        N/A	 
					
	6)	 	Compliance Certificate	  	Monthly within 30 days	  				  	 	Yes        No        N/A	 
					
	7)	 	IP Report	  	When required	  				  	 	Yes        No        N/A	 
					
	8)	 	Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period	  		  	$	                 	 	  	 	Yes        No        N/A	 
					
	9)	 	Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period	  		  	$	                 	 	  	 	Yes        No        N/A	 

 Deposit and Securities Accounts 

(Please list all accounts; attach separate sheet if additional space needed) 

 

									
	 	 	Institution Name	  	Account Number	  	New Account?	  	Account Control Agreement in place?
					
	1)	 		  		  	Yes        No	  	Yes        No
					
	2)	 		  		  	Yes        No	  	Yes        No
					
	3)	 		  		  	Yes        No	  	Yes        No
					
	4)	 		  		  	Yes        No	  	Yes        No

 Financial Covenants 
  

											
	Minimum Liquidity Requirement	 	(A)
Qualified
Cash	  	 (B)

A/P not paid
within 90
days from
invoice date
	  	Complies with Minimum Liquidity
Requirement (Is (B) plus
$10,000,000 less than
(A))?
						
		 		  		  	Yes	  	No	  	N/A

 Other Matters 
  

							
				
	1)	 	Have there been any changes in Key Persons since the last Compliance Certificate?	  	Yes	    	No
				
	2)	 	Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?	  	Yes	    	No
				
	3)	 	 Have there been any new or pending claims or causes of action against Borrower that

involve more than Two Hundred Fifty Thousand Dollars ($250,000.00)?
	  	Yes	    	No
				
	4)	 	 Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any
of its Subsidiaries? If yes, provide copies of any such amendments or changes with this Compliance Certificate.
	  	Yes	    	No

							
				
	5)	 	Has Borrower or any Subsidiary entered into or amended any Material Agreement? If yes, please explain and provide a copy of the Material Agreement(s) and/or amendment(s).	  	Yes	  	No
				
	6)	 	Has Borrower provided the Collateral Agent with all notices required to be delivered under Sections 6.2(a) and 6.2(b) of the Loan Agreement?	  	Yes	  	No

 Exceptions 

Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.” Attach separate sheet if
additional space needed.) 
  

			
	SCPHARMACEUTICALS INC.

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 
		
	Date:	 	 

  

							
	COLLATERAL AGENT USE ONLY

 
							
				
	Received by:	 	 	 	Date:	 	 
				
	Verified by:	 	 	 	Date:	 	 
				
	Compliance Status:	 	Yes	 	No

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