Document:

rdus-ex101_24.htm

 

amendment No. 1 to CREDIT AND SECURITY AGREEMENT (TERM LOAN)

This AMENDMENT NO. 1 TO CREDIT AND SECURITY AGREEMENT (TERM  LOAN) (this “Agreement”) is made as of 27th day of March, 2020, by and among RADIUS HEALTH, INC., a Delaware corporation (“Radius Health”), RADIUS PHARMACEUTICALS, INC., a Delaware corporation (“Radius Pharma” and, together with Radius Health, collectively, “Borrowers”, and each individually a “Borrower”), MidCap Financial Trust, a Delaware statutory trust, as Agent (in such capacity, together with its successors and assigns, “Agent”) and the other financial institutions or other entities from time to time parties to the Credit Agreement referenced below, each as a Lender.

RECITALS

A.Agent, Lenders and Borrowers have entered into that certain Credit and Security Agreement (Term Loan), dated as of January 10, 2020 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Original Credit Agreement” and, as the same is amended hereby and as it may be further amended, modified, supplemented and restated from time to time, the “Credit Agreement”), pursuant to which the Lenders have agreed to make certain advances of money and to extend certain financial accommodations to Borrowers in the amounts and manner set forth in the Credit Agreement.

 

B.Borrowers have requested, and Agent and Lenders have agreed, on and subject to the terms and conditions set forth in this Agreement and the other Financing Documents, to amend certain terms and conditions related to the Term Loan Tranche 2 in accordance with the terms and conditions set forth in this Agreement.  

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing, the terms and conditions set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Agent, Lenders and Borrowers hereby agree as follows:

1.Recitals.  This Agreement shall constitute a Financing Document and the Recitals and each reference to the Credit Agreement, unless otherwise expressly noted, will be deemed to reference the Credit Agreement as amended hereby.  The Recitals set forth above shall be construed as part of this Agreement as if set forth fully in the body of this Agreement and capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement (including those capitalized terms used in the Recitals hereto).

2.Amendment to Original Credit Agreement.  Subject to the terms and conditions of this Agreement, including, without limitation, the conditions to effectiveness set forth in Section 4 below, the Original Credit Agreement is hereby amended as follows:

(a)The definitions of “Term Loan Tranche 2 Activation Date” and “Term Loan Tranche 2 Commitment Termination Date” in Section 1.1 of the Original Credit Agreement are hereby amended and restated in their entirety as follows: 

“Term Loan Tranche 2 Activation Date” means June 25, 2020.

“Term Loan Tranche 2 Commitment Termination Date” means the earlier of (a) December 31, 2020 and (b) the date on which Agent provides notice to the Credit Parties, following the occurrence of an Event of Default (which has not been waived or cured as of the date such notice is given), that the Term Loan Tranche 2 Commitments have been 

 

 

terminated.

 

(b)Section 2.1(a)(i)(E) is hereby amended and restated in its entirety to read as follows:

“(E)No Borrower shall have any right to reborrow any portion of the Term Loan that is repaid or prepaid from time to time. As a condition to each Term Loan advance, Borrowers shall have delivered to Agent a Notice of Borrowing with respect to such proposed Term Loan advance, (i) in the case of a Term Loan Tranche 1 borrowing, no later than noon (Eastern time) two (2) Business Days prior to such proposed borrowing and (ii) in the case of a Term Loan Tranche 2, Term Loan Tranche 3 or a Term Loan Tranche 4 borrowing, no later than noon (Eastern time) ten (10) Business Days (or such shorter period as may be agreed by Agent  and the Lenders) prior to such proposed borrowing.”

(c)Section 2.1(a)(ii)(B) is hereby amended by:

(i)adding “and” to the end of clause (ii) thereof;

(ii)deleting the “; and” at the end of clause (iii) thereof and replacing it with “.”; and

(iii)deleting clause  (iv) thereof.

3.Representations and Warranties; Reaffirmation of Security Interest.  Each Borrower hereby confirms that all of the representations and warranties set forth in the Credit Agreement are true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) with respect to such Borrower as of the date hereof except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty shall be true and correct as of such earlier date.  Without limiting the foregoing, each Borrower represents and warrants that prior to and after giving effect to the agreements set forth herein, no Default or Event of Default shall exist under any of the Financing Documents. Nothing herein is intended to impair or limit the validity, priority or extent of Agent’s security interests in and Liens on the Collateral.  Each Borrower acknowledges and agrees that the Credit Agreement, the other Financing Documents and this Agreement constitute the legal, valid and binding obligation of such Borrower, and are enforceable against such Borrower in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’ rights generally and by general equitable principles.  

4.Conditions to Effectiveness.  This Agreement shall become effective as of the date on which each of the following conditions has been satisfied: 

(a)Agent shall have received (including by way electronic transmission) a duly authorized, executed and delivered counterpart of the signature page to this Agreement from each Borrower, Agent and each Lender;

(b)all representations and warranties of Credit Parties contained herein shall be true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) as of the date hereof except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty shall be true and correct in all material respects as of such earlier date (and such parties’ delivery of their respective signatures hereto shall be deemed to be its certification thereof); and

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(c)immediately prior to and after giving effect to this Agreement, no Default or Event of Default exists under any of the Financing Documents.

5.No Waiver or Novation.  The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided in this Agreement, operate as a waiver of any right, power or remedy of Agent, nor constitute a waiver of any provision of the Credit Agreement, the Financing Documents or any other documents, instruments and agreements executed or delivered in connection with any of the foregoing.  Nothing herein is intended or shall be construed as a waiver of any existing Defaults or Events of Default under the Credit Agreement or the other Financing Documents or any of Agent’s rights and remedies in respect of such Defaults or Events of Default.  This Agreement (together with any other document executed in connection herewith) is not intended to be, nor shall it be construed as, a novation of the Credit Agreement.

6.Affirmation.  Except as specifically amended pursuant to the terms hereof, each Borrower hereby acknowledges and agrees that the Credit Agreement and all other Financing Documents (and all covenants, terms, conditions and agreements therein) shall remain in full force and effect, and are hereby ratified and confirmed in all respects by such Borrower.  Each Borrower covenants and agrees to comply with all of the terms, covenants and conditions of the Credit Agreement and the Financing Documents, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Agent’s or any Lender’s part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions.

7.Miscellaneous.

(a)Reference to the Effect on the Credit Agreement.  Upon the effectiveness of this Agreement, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of similar import shall mean and be a reference to the Credit Agreement, as amended by this Agreement.  Except as specifically amended above, the Credit Agreement, and all other Financing Documents (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified and confirmed in all respects by each Borrower.   

(b)GOVERNING LAW.  THIS AGREEMENT AND ALL DISPUTES AND OTHER MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM (WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW). 

(c)WAIVER OF JURY TRIAL.   EACH BORROWER, AGENT AND THE LENDERS PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  EACH BORROWER, AGENT AND EACH LENDER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH BORROWER, AGENT AND EACH LENDER WARRANTS AND REPRESENTS THAT IT HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY 

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WAIVER WITH LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

(d)Incorporation of Credit Agreement Provisions.  The provisions contained in Section 11.6 (Indemnification), and Section 12.8 (Submission to Jurisdiction) of the Credit Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

(e)Headings.  Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

(f)Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by facsimile or by electronic mail delivery of an electronic version (e.g., .pdf or .tif file) of an executed signature page shall be effective as delivery of an original executed counterpart hereof and shall bind the parties hereto. 

(g)Entire Agreement.This Agreement constitutes the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

(h)Severability.  In case any provision of or obligation under this Agreement shall be invalid, illegal or unenforceable in any applicable jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

(i)Successors/Assigns.  This Agreement shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the parties hereto, subject to the provisions of the Credit Agreement and the other Financing Documents.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

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IN WITNESS WHEREOF, intending to be legally bound, the undersigned have executed this Agreement as of the day and year first hereinabove set forth.

 

 

 

 

		
	
AGENT:
	
MIDCAP FINANCIAL TRUST

	
 
	
 

	
 
	
By:   Apollo Capital Management, L.P., 
its investment manager

	
 
	
 

	
 
	
By:   Apollo Capital Management GP, LLC, 
its general partner

	
 
	
 

	
 
	
By:  /s/ Maurice Amsellem

	
 
	
Name: Maurice Amsellem

	
 
	
Title: Authorized Signatory

 

 

 

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LENDER:
	
MIDCAP FINANCIAL TRUST

	
 
	
 

	
 
	
By:   Apollo Capital Management, L.P., 
its investment manager

	
 
	
 

	
 
	
By:   Apollo Capital Management GP, LLC, 
its general partner

	
 
	
 

	
 
	
By:  /s/ Maurice Amsellem

	
 
	
Name: Maurice Amsellem

	
 
	
Title: Authorized Signatory

 

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LENDER:
	
APOLLO INVESTMENT CORPORATION

	
 
	
 

	
 
	
By: Apollo Investment Management, L.P.,
as Advisor

	
 
	
 

	
 
	
By:   ACC Management, LLC,
as its General Partner 

	
 
	
 

	
 
	
By:  /s/ Joseph D. Glatt

	
 
	
Name: Joseph D. Glatt

	
 
	
Title: Vice President

 

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LENDER:
	
FLEXPOINT MCLS HOLDINGS LLC

	
 
	
 

	
 
	
By:  /s/ David Edelman

	
 
	
Name: David Edelman

	
 
	
Title: Vice President

 

 

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LENDER:
	
ELM 2018-2 TRUST

	
 
	
 

	
 
	
By: MidCap Financial Services Capital Management, LLC,
as Servicer

	
 
	
 

	
 
	
By:  /s/ John O’Dea

	
 
	
Name: John O’Dea

	
 
	
Title: Authorized Signatory

 

 

 

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BORROWERS:

 

 

 

 
	
RADIUS HEALTH, INC.

By:  /s/ Jose I. Carmona
Name:  Jose I. Carmona
Title:  CFO

 

RADIUS PHARMACEUTICALS, INC.

 

By: /s/ Jose I. Carmona
Name:  Jose I. Carmona
Title:  Director

 

 

	
 
	
 

 

 

 

10curr_ex42.htm

EXHIBIT 4.2 
  
 Description of Capital Stock of Cure Pharmaceutical Holding Corp.
  
 The following is a description of the capital stock of Cure Pharmaceutical Holding Corp. Our common stock, par value $0.001 per share, is registered under Section 12 of the Securities Exchange Act of 1934, as amended; This description does not describe every aspect of our capital stock and is subject to, and qualified in its entirety by reference to, the provisions of our Amended and Restated Certificate of Incorporation and our Bylaws, each as currently in effect, each of which is incorporated by reference as an exhibit to our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, to which this Description of Capital Stock is filed as an exhibit. References to “we,” “our,” and “us” refer to Cure Pharmaceutical Holding Corp. 
  
 Authorized Capital Stock
  
 Our authorized capital stock consists of 150,000,000 shares of common stock, par value $0.001 per share.
  
 Common Stock
  
 Our common stock is quoted on the OTCQB under the trading symbol “CURR.” The transfer agent for our common stock is VStock Transfer LLC.
  
 The following summarizes the rights of holders of our common stock:
 Voting
  
 The holders of our common stock are entitled to one vote per share. The number of authorized shares of common stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting power of our capital stock entitled to vote, irrespective of the provisions of Section 242(b)(2) of the Delaware General Corporation Law (“DGCL”).
  
 Dividends
  
 Subject to applicable law, dividends may be declared and paid on of our common stock when and as determined by our board of directors out of assets legally available for dividends.
  
 As a Delaware corporation, we are subject to certain restrictions on dividends under the DGCL. Generally, a Delaware corporation may only pay dividends either out of “surplus” or out of the current or the immediately preceding year’s net profits. Surplus is defined as the excess, if any, at any given time, of the total assets of a corporation over its total liabilities and statutory capital. The value of a corporation’s assets can be measured in a number of ways and may not necessarily equal their book value.
  
 Liquidation Rights
  
 Upon our voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of common stock will be entitled to share in all of our assets legally remaining for distribution after payment of all debt and other liabilities, ratably in proportion to the number of shares of common stock held by them.
  
 Redemption Rights
  
 There are no redemption or sinking fund provisions applicable to our common stock.
  
 Preemptive Rights and Conversion Rights
  
 There are no preemptive or conversion rights applicable to our common stock.
  
 	 
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 Anti-Takeover Effects of Provisions of Delaware Law, our Amended and Restated Certificate of Incorporation, and our Bylaws
  
 Delaware Anti-Takeover Law
  
 We are subject to Section 203 of the DGCL (“Section 203”). Section 203 generally prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the time that such stockholder became an interested stockholder, unless:
  
 	  
	 ·
	prior to such time the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
	  
	  
	  

	  
	 ·
	upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
	  
	  
	  

	  
	 ·
	at or subsequent to such time the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

  
 In general, Section 203 defines a business combination to include:
  
 	  
	 ·
	any merger or consolidation involving the corporation and the interested stockholder;
	  
	  
	  

	  
	 ·
	any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;
	  
	  
	  

	  
	 ·
	subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
	  
	  
	  

	  
	 ·
	subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or
	  
	  
	  

	  
	 ·
	the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

   
 In general, Section 203 defines an interested stockholder as any entity (other than the corporation and any direct or indirect majority-owned subsidiary of the corporation) or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with, associated with or controlling or controlled by such entity or person.
  
 Amended and Restated Certificate of Incorporation and Bylaws
  
 The following provisions of our Amended and Restated Certificate of Incorporation and Bylaws may make a change in control of our company more difficult and could delay, defer or prevent a tender offer or other takeover attempt that a stockholder might consider to be in its best interest, including takeover attempts that might result in the payment of a premium to stockholders over the market price for their shares. These provisions also may promote the continuity of our management by making it more difficult for a person to remove or change the incumbent members of our board of directors.
  
 	 
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 Election and Removal of Directors. Our Amended and Restated Certificate of Incorporation and Bylaws contain provisions that establish specific procedures for appointing and removing members of our board of directors. Under our Amended and Restated Certificate of Incorporation and Bylaws, vacancies and newly created directorships on our board of directors may be filled by a majority of the directors then serving on the board of directors, not by stockholders.
  
 No Cumulative Voting. Stockholders do not have the right to cumulate votes in the election of directors under our Amended and Restated Certificate of Incorporation (therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose).
  
 Special Meetings of Stockholders. Our Amended and Restated Certificate of Incorporation and Bylaws provide that special meetings of our stockholders may only be called by our board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors, the chairperson of the board, our officers, or any stockholder holding at least fifteen percent (15%) of the voting power of the capital stock issued and outstanding and entitled to vote thereat.
  
 Advance Notice Procedures for Director Nominations. Our Bylaws establish advance notice procedures for stockholders seeking to nominate candidates for election as directors at an annual or special meeting of stockholders. Although our Bylaws do not give the board of directors the power to approve or disapprove stockholder nominations of candidates to be elected at an annual meeting, our Bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquiror from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of us.
  
 Action by Written Consent. Our Bylaws provide that any action required or permitted to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by any consent in writing in lieu of a meeting of such stockholders, subject to the rights of the holders of any series of preferred stock.
  
 Amending Our Certificate of Incorporation and Bylaws. Our Amended and Restated Certificate of Incorporation may be amended by the affirmative vote of the holders of at least majority of the voting power of our then-outstanding capital stock entitled to vote thereon. Our Bylaws may be amended by the affirmative vote of a majority of our board of directors or by the affirmative vote of the holders of at least majority of the voting power of our then-outstanding capital stock entitled to vote thereon.
  
 Exclusive Jurisdiction. Our Bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for any derivative action or proceeding brought on our behalf, any action asserting a claim of breach of duty by any of our directors, officers, employees, or agents, or our stockholders in such capacity, any action asserting a claim arising pursuant to the DGCL, any action to interpret, apply, enforce, or determine the validity of the Delaware Certificate of Incorporation or Bylaws, or any action asserting a claim governed by the internal affairs doctrine. Our Bylaws also provide that this section is not intended to apply to claims arising under the Securities Act and the Exchange Act.
  
 	 
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