Document:

Exhibit 10.33

 

Execution Version

 

[PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIALITY UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT THAT HAVE BEEN OMITTED ARE MARKED WITH “XXXX.” A COPY OF THIS EXHIBIT WITH ALL SECTIONS INTACT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

Amendment No. 6

 

to the

 

License Agreement 
 dated 13th of June 2000

 

by and between

 

Antares Pharma IPL AG, Zug, Switzerland as Licensor
 (formerly known as Permatec Technologies AG)

 

and

 

BioSante Pharmaceuticals, Inc., Lincolnshire, IL, USA as Licensee

 

WHEREAS, Antares Pharma IPL AG, Zug, Switzerland (“Antares”) and BioSante Pharmaceuticals, Inc., Lincolnshire, Illinois, United States of America (“BioSante”) have previously entered into a License Agreement dated June 13, 2000 (“License Agreement”), as amended in a series of five amendments, as follows:  Amendment No. 1, dated May 20, 2001; Amendment No. 2, dated July 5, 2001; Amendment No. 3, dated August 30, 2001; Amendment No. 4, dated August 8, 2002; and Amendment No. 5, dated December 30, 2002 (collectively the Amendments and with the License Agreement, the “Agreement”); and

 

NOW THEREFORE, Antares and BioSante agree pursuant to this Amendment No. 6 dated October 20, 2006 to the Agreement (“Amendment No. 6”) to amend the Agreement as follows:

 

1.             License Grant.  The licenses granted under the Agreement are hereby amended as follows:

 

(a)           Paragraph 1.10 of the Agreement is hereby amended and restated in its entirety as follows:

 

“Products” shall have the meaning set forth in Exhibit B of this License Agreement.”

 

(b)           Exhibit B of this Agreement is hereby amended and replaced in its entirety as follows:

 

 

“A.          Products shall include all estrogen gels, all testosterone gels, all E and T gels, and all E and P gels, whether or not if any of the above gel formulations contain lauryl alcohol, except as noted in Section B below.

 

B.            BIOSANTE owns on an exclusive worldwide basis, free and clear of any claims by ANTARES, its product and formulation currently known as and referred to as Bio-T-Gel (XXXXXXXXXXXXXXXXXXXXXXXXXX  XXXXXXX), and has no obligation to share information regarding Bio-T Gel with ANTARES, including data generated during development.  [PORTIONS OF THIS SECTION HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIALITY UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT THAT HAVE BEEN OMITTED ARE MARKED WITH “XXXX.” A COPY OF THIS EXHIBIT WITH ALL SECTIONS INTACT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

C.            Notwithstanding the above, AP-108l (gel containing norelgestromin and ethinyl estradiol and which is a competitor to Ortho Evra) shall not be included in Products.

 

D.            Notwithstanding the above, Nestorone (gel formulation made pursuant to Joint Development Agreement with The Population Council) shall not be included in Products.

 

E.             Notwithstanding the above, Antares shall retain its rights to testosterone gels for prevention or treatment of diseases in males in the Territory but only for products for which regulatory approval is sought and obtained by submission of (what in the United States would be known as) a full New Drug Application, and not an Abbreviated New Drug Application, “paper NDA” under section 505(b)(2) of the United States FD&C Act, or other form of application that relies on clinical studies conducted by others as to which the applicant does not have a right of reference.”

 

(c)           Paragraph I-1 of Amendment No. 4 to the License Agreement is no longer applicable and is deleted in its entirety.

 

(d)           Paragraph 2.1 of the Agreement is hereby amended and replaced in its entirety as follows:

 

“2.1.1      ANTARES hereby grants to BIOSANTE an exclusive license, with the right to grant sublicenses as provided in this License Agreement, to Develop the Products in the field of transdermal gel preparations (“Field”) in the Territory for purposes of obtaining Approvals, and upon receipt of the Approvals, to Market and sell the Products in the Field in the Territory, and to use the Patents and Know-How exclusively for that purpose, all in accordance with provisions contained in this Agreement.  It is the parties’ intention that any product characterized by its

 

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marketing approval, as opposed to Products, developed by BIOSANTE and based on PERMATECH’S Technology will be and remain the property of BIOSANTE but BIOSANTE will not be allowed to use or market the products in case this License Agreement between ANTARES and BIOSANTE is terminated.

 

2.1.2        ANTARES hereby grants to BIOSANTE a non-exclusive license, with the right to grant sublicenses as provided in this License Agreement, under the Patents and Know-How, to make and have made Bio-E-Gel in the Territory.

 

2.1.3        ANTARES additionally grants to BIOSANTE a non-exclusive license with the right to grant sublicenses as provided in this License Agreement, to conduct the following activities:  investigation, research, conduct clinical trials and perform market research in any country outside of the Territory.  For purposes of clarity the above license shall not include a license or right to apply or seek any regulatory approval/marketing authorization for any Product outside the Territory.”

 

(e)           Paragraph B(2) of Amendment No. 5 to the License Agreement is no longer applicable and is deleted in its entirety.

 

(f)            Paragraph 2.2 of the Agreement is hereby amended by the deletion of “(with only the commercial terms redacted)” from the last sentence therein.

 

(g)           Paragraph 2.2 of the Agreement is hereby further amended by the insertion of the following sentence after the end of the sentence beginning with “Furthermore, BIOSANTE undertakes . . .” with the following sentence:

 

“Additionally, BIOSANTE covenants that any and all sublicense agreements, in which Bio-E-Gel is sublicensed, shall provide that (i) all up-front, sublicense and milestone payments due from such sublicense agreement shall be paid into an interest bearing escrow account established for the benefit of both ANTARES and BIOSANTE and shall be the account designated by both ANTARES and BIOSANTE (“Escrow Account”) and (ii) that ANTARES is a third party beneficiary of such sublicense agreement solely with respect to subsection (i) above.  The parties agree that the terms of the Escrow Account shall provide that (a) ANTARES is responsible for all costs and fees to establish and maintain the Escrow Account, (b) seventy-five (75%) of funds deposited shall immediately be released to BIOSANTE, and (c) the remaining twenty-five (25%) of funds deposited plus any and all interest accrued shall be released to ANTARES upon thirty days from deposit.”

 

2.             Credit for Sublicense Payments for Bio-E-Gel.  In the event that BioSante (i) terminates a sublicense agreement for Bio-E-Gel (“Sublicense Agreement”) prior to February 15, 2007 and where such termination is based on BioSante failing to receive regulatory approval for Bio-E-Gel by the FDA (as defined below) and (ii) has to return all or a portion of the upfront consideration received pursuant to such Sublicense Agreement, then Antares will credit the pro rata portion of such upfront consideration that it received to future payments due by BioSante for Bio-E-Gel.

 

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3.             Disclosure of Confidential Information.  Each party may disclose non-public confidential information of the other party to subcontractors or potential licensees who are under a binding obligation of confidentiality to such party, at least as strict as in the Agreement and so long as such party remains responsible for the potential licensees’ compliance.

 

4.             Patent Prosecution and Maintenance.  From the effective date of this Amendment No. 6, Antares will, at its cost and expense, file, prosecute, and maintain the Patents, including, but not limited to, those listed on Appendix A hereto.  If Antares determines to abandon or not file any Patent, then Antares shall provide BioSante with written notice at least thirty (30) days or if less, as long as reasonably practicable, prior to the date such abandonment or failure to file would become effective for BioSante to act in its stead, provided, that BioSante has received from Antares any and all reasonable documentation and information it reasonably needs to make a decision and take the necessary action in reasonable sufficient time to avoid abandonment.  For purposes of clarity, discontinuance shall be elected on a country-by-country basis.  BioSante may elect at its sole discretion to continue prosecution or maintenance of any discontinued Patent at its sole expense.  BioSante shall then own any such Patent, and Antares shall execute such documents and perform such acts, at BioSante’s cost, as may be reasonably necessary for BioSante to continue prosecution or maintenance, including assigning and transferring ownership of such Patent to BioSante and directing its counsel to transfer the complete file to BioSante or its counsel as BioSante may request.  Upon the assignment or transfer of any Patent to BioSante, Antares shall not be thereafter entitled to any royalties from sales of a Product sold in a country where such Patent was abandoned and where such Patent claims such Product.

 

5.             Patent Reports and Updates.  Antares will (at its sole cost and expense) provide BioSante with a complete paper, organized file set of material prosecution documents for each of the Patents.  Going forward, Antares will at its sole cost and expense copy BioSante on all material communications with respective patent offices in the Territory and provide BioSante with twice-yearly update summaries reviewed by its patent counsel regarding each of the Patents (including filing, prosecution, and maintenance status in each country in the Territory).  Additionally, Antares will, at BioSante’s expense, make its counsel reasonably available to consult with BioSante and potential licensees regarding the status of the Patents.

 

6.             Patent Enforcement.  To the extent BioSante consents in writing, BioSante’s exclusive sublicensee(s) in the United States shall have those rights possessed by BioSante as set forth in section 8.2.2 and 8.2.4 of the Agreement.

 

7.             LibiGel Package.  BioSante will promptly provide Antares with a copy of all material filings and submissions submitted to date to the United States Food and Drug Administration (“FDA”) regarding LibiGel and the minutes from the BioSante LibiGel meeting held with the FDA on or about April 2006 (collectively, the “LibiGel Package”).

 

8. XXXXXXXXXXXXXX.  BioSante consents to Antares’ engagement of XXXXXXXXXXXXXX in Europe for work on testosterone gel for women; provided that Antares agrees that no BioSante confidential information is used or disclosed in connection with the engagement.  [PORTIONS OF THIS SECTION HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIALITY UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  THE CONFIDENTIAL PORTIONS OF THIS

 

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EXHIBIT THAT HAVE BEEN OMITTED ARE MARKED WITH “XXXX.”  A COPY OF THIS EXHIBIT WITH ALL SECTIONS INTACT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

9.             Steering Committee.  Antares and BioSante will each send at least one representative who is an officer to a steering committee meeting to be held on a twice-yearly basis alternating between Antares’ facility and BioSante’s facility.  Each party will provide a summary update twice-yearly to the other of its activities being conducted to establish that it is in substantial compliance with its material obligations under the Agreement.

 

10.           Further Sublicensing.  BioSante may, in connection with the exercise of its sublicense rights under the Agreement, authorize (i) its sublicensee(s) to solely grant a further sublicense to their contract manufacturer(s) for the sole purpose of manufacturing Product for such sublicensee(s) to the extent that BioSante has such license right itself or (ii) an exclusive sublicensee of BioSante (“Sublicensee”) the right to further sublicense Bio-E-Gel subject to Antares’ written consent (not to be unreasonably withheld), provided, that all payments due to BioSante from its Sublicensee, directly or indirectly, for the grant of such further sublicense by the Sublicensee shall be paid into the Escrow Account and disbursed in accordance with the procedures and allocation percentages provided in Paragraph 2.2 of the Agreement.

 

11.           Audits of Sublicensees.  With respect to any audits that Antares may conduct of sublicensees pursuant to Sections 2.2 and 3.5.2.4 of the Agreement, Antares agrees that it and any independent certified public accounting firm retained by Antares to conduct the audit will treat any information obtained from the sublicensee during the course of the inspection and audit as confidential pursuant to Section 7 of the Agreement, and if requested by the sublicensee will execute a commercially reasonable confidentiality agreement before beginning the audit in which Antares and such public accounting firm agree to maintain the confidentiality of the sublicensees’ books and records and to use all information received from the sublicensee only for such audit purpose.

 

12.           Effect of Termination on Sublicensee.  Antares agrees that if so provided in a sublicense agreement signed by BioSante and its sublicensee of its rights hereunder and where such sublicense has been granted in accordance with the Agreement, then a termination of the Agreement due to BioSante’s breach that is not caused by the sublicensee will not terminate the sublicensee’s license rights and that in such case the sublicense agreement (and all future payments and performance under the sublicense agreement by the sublicensee) will continue between the sublicense and Antares.  In the event the aforesaid termination was caused by BioSante’s non-payment of monies due to Antares, such continuation of the sublicense agreement between sublicense and Antares shall not effect BioSante’s obligation to pay Antares for any and all monies due from BioSante to Antares as of the date of termination.

 

13.           Representation.  Antares hereby represents that, to its knowledge as of the effective date of this Amendment No. 6, Bio-E-Gel does not infringe any patent or other proprietary right of any third party in the United States.

 

14.           Amended and Restated Agreement.  The parties will exercise good faith efforts to prepare and execute an amended and restated agreement of this Agreement as it exists as of the execution

 

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of this Amendment No. 6 as soon as practicable, and no later than within 90 days, following execution of this Amendment No. 6, with ANTARES to prepare a full and complete initial draft of same at its expense.  After preparation of such initial draft by ANTARES, each party will be responsible for its own costs and expenses incurred in the completion of such amended and restated agreement.  For clarity, such amended and restated agreement shall strictly conform in all respects to this Agreement as it exists as of the execution of this Amendment No. 6.

 

15.           Headings.  The captions to the paragraphs/section in this Amendment No. 6 are not a part of this Amendment No. 6 or the Agreement, and are included merely for convenience of reference only and shall not affect its meaning or interpretation.

 

16.           Counterparts.  This Amendment may be signed in any number of counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

17.           Construction.  This Amendment No. 6 (i) was drafted by both parties and thus any rule of contract interpretation calling for documents to be construed against the drafter shall not apply to the construction of this Amendment, and (ii) shall not affect the construction of the Agreement as it existed before the effective date of this Amendment.

 

18.           Miscellaneous.  Antares and BioSante confirm and acknowledge that the Agreement is in full force and effect, that there have been no uncured events of breach to date, and that each is in material compliance with the Agreement.  Nothing in this Amendment No. 6 shall constitute an admission of wrongdoing by either party vis a vis the other and each party expressly denies any wrongdoing.  Except for the changes made by this Amendment No. 6 to the Agreement, the Agreement remains in full force and effect without modification.

 

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their duly authorized officers with effect as of the 20th day of October, 2006.

 

	
Antares Pharma IPL AG
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Jack E. Stover
    	
 
    	
/s/   Dario Carrara
    
	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Jack E. Stover
    	
 
    	
Dario   Carrara
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
President & CEO
    	
 
    	
Managing   Dir. Swiss Operations
    
	
 
    	
 
    	
 
    	
 
    
	
Date: 
    	
10/20/06
    	
 
    	
10/20/06
    
	
 
    	
 
    	
 
    
	
BioSante   Pharmaceuticals, Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Stephen M. Simes
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Stephen M. Simes
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
President * CEO
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date: 
    	
10/20/06
    	
 
    	
 
    

 

6

 

Appendix A
 Patents

 

1.             U.S. Appl. No. 10/798,111

 

2.             U.S. Appl. No. 10/343,570

 

3.             U.S. Appl. No. 10/798,161

 

4.             U.S. Appl. No. 11/371,042

 

5.             U.S. Patent. No. 5,891,462

 

6.             U.S. Appl. No. 11/441,311

 

7.             U.S. Prov. Appl. No. 60/794,015

 

 

BioSante Pharmaceuticals, Inc.

111 Barclay Boulevard

Lincolnshire, IL  60069

 

	
 
    	
October 27, 2006
    

 

Antares Pharma IPL AG

c/o Antares Pharma Inc.

Princeton Crossroads Corporate Center

250 Phillips Boulevard, Suite 290

Ewing, NJ  08618

 

	
Re:
    	
 
    	
License Agreement between Antares Pharma IPL AG   (“Antares”) and
    	
 
    
	
 
    	
 
    	
BioSante   Pharmaceuticals, Inc. (“BioSante”), dated June 13, 2000,
    	
 
    
	
 
    	
 
    	
as   amended in six amendments (collectively, the “Agreement”)
    	
 
    

 

Gentlemen:

 

I write to clarify paragraph 12 of Amendment No. 6 (dated as of October 20, 2006) of the Agreement.  Specifically, it is BioSante’s understanding that in the event that a sublicense agreement is assigned to Antares under that paragraph 12, any moneys that the sublicensee owed BioSante as a result of events (such as sales or milestone-triggering events) that occurred before the effective date of the termination of the Agreement would still be owed and paid to BioSante, even if the actual payment date were to fall after the effective date of the termination.

 

If this clarification is agreeable to Antares, please countersign below and return a copy of this letter to me.  Thank you.

 

	
 
    	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
 
    	
BIOSANTE   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Phillip B. Donenberg
    
	
 
    	
 
    	
 
    	
Phillip B. Donenberg
    
	
 
    	
 
    	
 
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
Agreed   and Accepted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ANTARES   PHARMA IPL AG
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Jack E. Stover
    	
 
    	
 
    
	
 
    	
Jack E. Stover
    	
 
    	
 
    
	
 
    	
President and CEO
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
DATED:   October 27, 2006
    	
 
    	
 
    
							

 

 

BioSante Pharmaceuticals, Inc.

111 Barclay Boulevard

Lincolnshire, IL  60069

 

	
 
    	
November 6,   2006
    

 

Antares Pharma IPL AG

c/o Antares Pharma Inc.

Princeton Crossroads Corporate Center

250 Phillips Boulevard, Suite 290

Ewing, NJ  08618

 

	
Re:
    	
 
    	
License   Agreement between Antares Pharma IPL AG (“Antares”) and
    	
 
    
	
 
    	
 
    	
BioSante   Pharmaceuticals, Inc. (“BioSante”), dated June 13, 2000,
    	
 
    
	
 
    	
 
    	
as   amended in six amendments (collectively, the “Agreement”)
    	
 
    

 

Gentlemen:

 

I write to seek clarification of two paragraphs of Amendment No. 6 (dated as of October 20, 2006) of the Agreement.

 

With respect to paragraph 6, BioSante would like to clarify that in the event that it and/or its sublicensee assert any of the Patents listed in Appendix A to Amendment No. 6 against an infringer, Antares would agree if commercially reasonable and if requested to join as a coplaintiff (to assure standing) at the sole cost and expense of the party making the request (BioSante or the sublicensee, as the case may be).

 

With respect to paragraph 12, BioSante we would like to clarify that the provisions of this paragraph would also apply if the Agreement is terminated due to BioSante’s bankruptcy, by inserting the phrase “or bankruptcy” after the phrase “BioSante’s breach” in the third line.

 

If this is agreeable, please countersign below and return a copy of this letter to me.

 

	
 
    	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
 
    	
BIOSANTE   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Stephen M. Simes
    
	
 
    	
 
    	
 
    	
Name   and title:
    
	
 
    	
 
    	
 
    	
Stephen M. Simes
    
	
 
    	
 
    	
 
    	
President & CEO
    
	
 
    	
 
    	
 
    
	
Agreed   and Accepted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ANTARES   PHARMA IPL AG
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Jack E. Stover
    	
 
    	
 
    
	
 
    	
Name and title:
    	
 
    	
 
    
	
 
    	
Jack E. Stover
    	
 
    	
 
    
	
 
    	
President & CEO
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
DATED:   November 6, 2006
    	
 
    	
 
    
							

 

 

BioSante Pharmaceuticals, Inc.

111 Barclay Boulevard

Lincolnshire, IL  60069

 

	
 
    	
November 7,   2006
    

 

Antares Pharma IPL AG

c/o Antares Pharma Inc.

Princeton Crossroads Corporate Center

250 Phillips Boulevard, Suite 290

Ewing, NJ  08618

 

	
Re:
    	
 
    	
License   Agreement between Antares Pharma IPL AG (“Antares”) and
    	
 
    
	
 
    	
 
    	
BioSante   Pharmaceuticals, Inc. (“BioSante”), dated June 13, 2000,
    	
 
    
	
 
    	
 
    	
as   amended in six amendments (collectively, the “Agreement”)
    	
 
    

 

Gentlemen:

 

I write to provide language to embody a clarification and amendment to the Agreement.

 

With respect to the proposed sublicense of Bio-E-Gel to Bradley Pharmaceuticals, Inc. (“Sublicensee”) by BioSante (“Sublicense Agreement”), BioSante and Antares agree that Antares shall receive twenty-five percent (25%) of all up-front, sublicense and milestone payments due from such Sublicense Agreement as provided in Amendment No. 6 of the Agreement dated October 20, 2006 (“Amendment No. 6”), and in the event that BioSante is to receive at least seven million dollars upon the regulatory approval of Bio-E-Gel in the United States, then BioSante shall not be obligated to pay any additional milestone payments on the regulatory approval of Bio-E-Gel for the United States other than twenty-five percent (25%) of the payment it receives for regulatory approval of Bio-E-Gel from Sublicensee for the United States.  For purposes of clarity, if Sublicensee is obligated to pay seven million dollars to BioSante upon regulatory approval of Bio-E-Gel in the United States, then Antares shall receive twenty-five percent of such amount - $1,750,000 to be paid as provided in paragraph 1(g) in Amendment No. 6.

 

Additionally, because the escrow account contemplated by Amendment No. 6 has not been established and we are on the verge of executing the Sublicense Agreement for Bio-E-Gel with the Sublicensee, we ask Antares’ agreement that the escrow requirement of Amendment No. 6 is satisfied if the Sublicensee pays directly upon signing to Antares twenty-five percent (25%) of all payments due to BioSante or its Affiliates upon signing by wire to the following account:

 

Bank name and address:

Wells Fargo Bank, N.A.

6th and Marquette

Minneapolis, MN  55479

Account name:  Antares Pharma, Inc.

Account number:  323-869-1379

ABA:  121000248

 

Except for the changes made by this letter, the Agreements remains in full force and effect without modification.

 

 

If this is agreeable, please countersign below and return a copy of this letter to me.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
BIOSANTE   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Stephen M. Simes
    
	
 
    	
 
    	
Name:   
    	
Stephen   M. Simes
    
	
 
    	
 
    	
Title”   
    	
President &   CEO
    
	
 
    	
 
    
	
Agreed   and Accepted:
    	
 
    
	
 
    	
 
    
	
ANTARES   PHARMA IPL AG
    	
 
    
	
`
    	
 
    
	
By:   
    	
/s/   Robert Apple
    	
 
    
	
 
    	
Name:   
    	
Robert   Apple
    	
 
    
	
 
    	
Title:   
    	
CFO
    	
 
    
	
 
    	
 
    
	
DATED:   November 7, 2006ex10_17.htm

Exhibit 10.17

AMENDMENT TO THE TERM LOAN AGREEMENT

This AMENDMENT TO THE TERM LOAN AGREEMENT (this “Amendment”), dated as of March 11, 2011 (the “Amendment Effective Date”), is by and among CONTAINER APPLICATIONS LIMITED, a corporation organized under the laws of Barbados having its principal place of business at Suite 102, Bush Hill, Bay Street, St. Michael, Barbados, West  Indies (“CAL” or the “Borrower”), CAI INTERNATIONAL, INC., a Delaware corporation having its principal place of business at Steuart Tower, 1 Market Plaza, Suite 900, San Francisco, CA 94105 (“CAI”) and the other the Guarantors listed on the signature pages hereto (each a “Guarantor” and collectively, the “Guarantors”), the lending institutions from time to time listed on the signature pages hereto (the “Lenders”), ING BANK N.V., as administrative agent for itself and the other Lenders (in such capacity, the “Administrative Agent”), and ING BANK N.V., acting as Mandated Lead Arranger and Physical Bookrunner).  Capitalized terms used herein without definition shall have the respective meanings provided therefor in the Loan Agreement referred to below.

WHEREAS, the Borrower, CAI, the Lenders and the Administrative Agent are parties to that certain Term Loan Agreement, dated as of December 20, 2010 (as amended by this Amendment and as may be further amended, restated, amended and restated, supplemented and otherwise in effect from time to time, the “Loan Agreement”), pursuant to which the Lenders, upon certain terms and conditions, have agreed to make loans and otherwise extend credit to the Borrower;

WHEREAS, the Borrower request that the Administrative Agent and the Lenders amend certain of the terms and provisions of the Loan Agreement as set forth herein subject to the conditions set forth below; and

NOW THEREFORE, in consideration of the mutual agreements contained in the Loan Agreement and herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

§1.           Amendments to Loan Agreement.  Subject to the satisfaction of the conditions precedent set forth in §4 below,

(a)           The Loan Agreement is hereby amended by deleting the definition of “Principal Payment Amount” in Section 1.1 of the Loan Agreement and substituting the following new definition in lieu thereof:

“Principal Payment Amount.  With respect to each Term Loan drawdown described under Section 2.1(A) and (B) of the Loan Agreement, (A) for each Principal Payment Date (other than the Maturity Date), an amount equal to the product of (x) the quotient obtained by dividing 46.0% by the number of remaining scheduled Principal Payment Dates, as of the Drawdown Date of such Term Loan, prior to the Maturity Date with respect to such Term Loan and (y) the initial Principal Balance of such Term Loan, and (B) on the Maturity Date, the then unpaid Principal Balance of such Term Loan, in each case as such amounts in (A) and (B) may be reduced from time to time pursuant to Section 3.2.4 hereof as a consequence of any principal prepayments made hereunder.  The Principal Payment Amount due on any Principal Payment Date is in addition to any prepayment required pursuant to the provisions of Section 3.2 hereof.”

  

  

  

(b)           The Loan Agreement is hereby amended by amending and restating Section 2.9 of the Loan Agreement as follows:

“2.9           Change in Borrowing Base.  The Borrowing Base shall be calculated (based on the application of the formula contained in the definition of “Borrowing Base”) by the Borrower pursuant to a Borrowing Base Report delivered to the Administrative Agent with each Loan Request and at such other intervals as may be specified pursuant to §8.4(f) by reference to the Borrowing Base Report most recently delivered to the Lenders and the Administrative Agent.  The Administrative Agent shall give to the Borrower written notice of the amount of the Borrowing Base determined by the Administrative Agent as a result of its calculation thereof to the extent that the Administrative Agent’s calculation thereof differs from that of the Borrower.  Prior to the time any such notice becomes effective, the Borrowing Base shall be computed as it would have been computed in the absence of such notice.”

(c)           The Loan Agreement is hereby amended by adding the following phrase to the beginning of Section 3.2.3(d) of the Loan Agreement:

“except for the Eligible Containers substituted as set forth in Schedule 3.2.3(d) hereto,”

(d)           Schedule 3.2.3(d) is hereby added to the Loan Agreement in the form of Schedule 3.2.3(d) attached to this Amendment.

§2.           Representations and Warranties.  As of the Amendment Effective Date, each of the Borrower and the Guarantors, as the case may be, represents and warrants to the Lenders and the Administrative Agent as follows:

(a)           Representations and Warranties in Loan Agreement.  The representations and warranties of the Borrower contained in the Loan Agreement were true and correct in all material respects when made, and continue to be true and correct on the date hereof.

(b)           Authority, Etc.  The execution and delivery by each of the Borrower and the Guarantors of this Amendment and the performance by each of the Borrower and the Guarantors of all of its respective agreements and obligations of this Amendment and the other documents delivered in connection therewith (collectively, the “Amendment Documents”), the Loan Agreement as amended hereby and the other Loan Documents (i) are within the corporate or company authority of such Borrower or such Guarantor, (ii) have been duly authorized by all necessary corporate or company proceedings by such Borrower and such Guarantor, (iii) do not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which such Borrower or such Guarantor is subject or any judgment, order, writ, injunction, license or permit applicable to such Borrower or such Guarantor, (iv) do not conflict with any provision of the Governing Documents of, or any agreement or other instrument binding upon, such Borrower or such Guarantor, and (v) do not require the approval or consent of, or filing with, any Person other than those already obtained.

(c)           Enforceability of Obligations. The Amendment Documents, the Loan Agreement as amended hereby, and the other Loan Documents constitute the legal, valid and binding obligations of such Borrower or such Guarantor, enforceable against such Borrower or such Guarantor in accordance with their respective terms.

(d)           No Default.  Immediately after giving effect to this Amendment, no Default or Event of Default exists under the Loan Agreement or any other Loan Document.

  

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§3.           Affirmation of Borrower and Guarantors.

(a)           The Borrower hereby affirms its absolute and unconditional promise to pay to each Lender and the Administrative Agent the Term Loans, and all other amounts due under the Term Notes, the Loan Agreement as amended hereby and the other Loan Documents, at the times and in the amounts provided for therein.  The Borrower confirms and agrees that (i) the obligations of the Borrower to the Lenders and the Administrative Agent under the Loan Agreement as amended hereby are secured by and entitled to the benefits of the Security Documents and (ii) all references to the term "Loan Agreement" in the Security Documents and the other Loan Documents shall hereafter refer to the Loan Agreement as amended hereby.

(b)           Each of the undersigned Guarantors hereby acknowledges that it has read and is aware of the provisions of this Amendment.  Each such Guarantor hereby reaffirms its absolute and unconditional guaranty of the applicable Borrower’s payment and performance of its obligations to the Lenders and the Administrative Agent under the Loan Agreement as amended hereby.  Each Guarantor hereby confirms and agrees that all references to the term "Loan Agreement" in the Guaranty to which it is a party shall hereafter refer to the Loan Agreement as amended hereby.

§4.           Conditions to Effectiveness.  The amendments provided for in this Amendment shall take effect as of the Amendment Effective Date upon the satisfaction of the following conditions precedent:

(a)           the Administrative Agent shall have received a counterpart signature page to this Amendment, duly executed and delivered by each of the Borrower, the Guarantors, the Lenders, and the Administrative Agent, and this Amendment shall be in full force and effect;

(b)           the Administrative Agent shall have received Schedule 3.2.3(d) (Exempt Eligible Containers) to the Loan Agreement, updated as of the Amendment Effective Date;

(c)           the Administrative Agent shall have received an updated Perfection Certificate for each of the Loan Parties;

(d)           the Administrative Agent shall have received any necessary amendments and/or revisions to the Barbados Security Documents which are required pursuant to the transactions contemplated by this Amendment;

(e)           the Administrative Agent shall have received a certificate of the authorized officer of the Borrower and each Guarantor dated the Amendment Effective Date certifying as to (i) no amendments, modifications or supplements to the Governing Documents of the Borrower or any Guarantor since the last delivery of such Governing Documents by such Loan Party to the Administrative Agent and that such Governing Documents are in full force and effect or attaching complete and certified copies of such Governing Documents including any amendments, modifications or supplements thereto (including certifications of such Governing Documents by the appropriate Governmental Authority of such Person’s jurisdiction of formation or organization), (ii) all corporate or other organizational actions taken by the Borrower and each of the Guarantors authorizing the execution, delivery, and performance of this Amendment and the other Amendment Documents and attaching copies of the board minutes and/or resolutions relating to such authorization and (iii) the names, titles, incumbency, and specimen signatures of the authorized officers of the Borrower and each of the Guarantors authorized to sign this Amendment and the other Amendment Documents on behalf of such Person;

(f)           a Borrowing Base Report, dated as of the date hereof, executed by the Borrower; and

  

3

  

(g)           there shall not have occurred (i) a Material Adverse Effect since December 20, 2010 or (ii) a material adverse change in the facts and information regarding the Borrower and Guarantors represented to date to the Administrative Agent and the Lenders.

§5.           Satisfaction of Conditions.  Without limiting the generality of the foregoing §4, for purposes of determining compliance with the conditions specified in §4, 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 the Administrative Agent shall have received notice from such Lender prior to the proposed Amendment Effective Date justifying its objection thereto.

§6.           Miscellaneous Provisions.  This Amendment shall constitute one of the Loan Documents referred to in the Loan Agreement.  Except as otherwise expressly provided by this Amendment, all of the terms, conditions and provisions of the Loan Agreement shall remain the same.  It is declared and agreed by each of the parties hereto that the Loan Agreement, as amended hereby, shall continue in full force and effect, and that this Amendment and the Loan Agreement shall be read and construed as one instrument.  Nothing contained in this Amendment shall be construed to imply a willingness on the part of the Lenders or the Administrative Agent to grant any similar or other future amendment of any of the terms and conditions of the Loan Agreement or the other Loan Documents or shall in any way prejudice, impair or effect any rights or remedies of the Lenders and the Administrative Agent under the Loan Agreement or the other Loan Documents.  THIS AMENDMENT SHALL BE CONSTRUED ACCORDING TO AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID STATE (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW (OTHER THAN THE NEW YORK GENERAL OBLIGATIONS LAW §5-1401)).  This Amendment may be executed in any number of counterparts, but all such counterparts shall together constitute but one instrument.  Delivery of an executed signature page of this Amendment by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart thereof.  In making proof of this Amendment it shall not be necessary to produce or account for more than one counterpart signed by each party hereto by and against which enforcement hereof is sought.  Headings or captions used in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof.  The Borrower hereby agrees to pay to the Administrative Agent on demand all reasonable costs and expenses incurred or sustained by the Administrative Agent in connection with the preparation of this Amendment (including reasonable legal fees and disbursements of the Administrative Agent’s Special Counsel).

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

	  	Borrower:
	  	  	  
	  	CONTAINER APPLICATIONS LIMITED
	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:  

	  	  	
Title:  

  

  

  

	  	
Guarantors:

	  	  	  
	  	  	  
	  	
CAI INTERNATIONAL, INC.

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name: 

	  	  	
Title:  

 

	  	
CONTAINER APPLICATIONS INTERNATIONAL (U.K.) LIMITED

	  	  	  
	  	
By:

	 
	  	  	
Name:  

	  	  	
Title:  

 

	  	CONTAINER APPLICATIONS INTERNATIONAL, LTD.
	  	  	  
	  	  	  
	  	
By:

	 
	  	  	
Name: 

	  	  	
Title:  

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

	  	
CONTAINER APPLICATIONS (MALAYSIA) SDN BDH

	  	  	  
	  	  	  
	  	
By:

	 
	  	  	
Name:  

	  	  	
Title:  

 

	  	
SKY CONTAINER TRADING LIMITED

	  	  	  
	  	  	  
	  	
By:

	 
	  	  	
Name:  

	  	  	
Title:  

	  	
SKY DOMESTIC CONTAINER LEASING LIMITED

	  	  	  
	  	  	  
	  	
By:

	 
	  	  	
Name:  

	  	  	
Title:  

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

 

	  	
CAI CONSENT SWEDEN AB

	  	  	  
	  	  	  
	  	
By:

	 
	  	  	
Name:  

	  	  	
Title: 

 

	  	
CAI INTERNATIONAL GMBH

	  	  	  
	  	  	  
	  	
By:

	 
	  	  	
Name:  

	  	  	
Title:  

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

 

	  	
Lenders and Administrative Agent:

	  	  	  
	  	  	  
	  	
ING BANK N.V., as

	  	
Administrative Agent

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

	  	
ING BANK N.V., as Lender

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

	  	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

	  	
DVB BANK S.E., as Lender

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

	  	
ABN AMRO BANK N.V., as Lender

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

 

	  	
CREDIT INDUSTRIEL ET COMMERCIAL, as Lender

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

	  	
UNION BANK, N.A., as Lender

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

 

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

 

	  	
COMERICA BANK, as Lender

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	
By:

	
 

	  	  	
Name:

	  	  	
Title:

Signature Page to Amendment to the Term Loan Agreement

 

  

  

  

SCHEDULE 3.2.3(D)

[ATTACH SCHEDULE]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]