Document:

exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT 

     This First Amendment to Credit and Security Agreement (“Amendment”) is made as of this
2nd day of July, 2007, by and among OREXIGEN THERAPEUTICS, INC., a Delaware corporation
(the “Borrower”), those financial institutions listed on the signature pages hereto as the
“Lenders” party to the Credit Agreement referenced below and MERRILL LYNCH CAPITAL, a division of
Merrill Lynch Business Financial Services Inc., as “Administrative Agent” under the Credit
Agreement referenced below.

BACKGROUND

     A. Borrower, Lenders and Administrative Agent are party to that certain Credit and Security
Agreement dated as of December 15, 2006 (as it may heretofore have been and may hereafter be
amended, modified, extended, supplemented, restated or replaced, the “Credit Agreement”) among
Borrower and any other persons from time to time party thereto as a “Borrower”, Lenders and any
other financial institutions or other entities from time to time party thereto as “Lenders” and
Administrative Agent. All capitalized terms used herein and not defined herein shall have the
meaning ascribed to such term in the Credit Agreement. Pursuant to the Credit Agreement, Lenders
extended a certain Term Loan to Borrowers as more particularly described therein. The Credit
Agreement, all Financing Documents and all instruments, documents, and agreements related thereto
or executed in connection therewith, together with all amendments, restatements, modifications,
extensions, consolidations and substitutions, are sometimes referred to herein collectively as the
“Existing Loan Documents.”

     B. Borrower has requested that Lenders agree to extend the draw period during which Borrowers
are entitled to request, and Lenders (subject to all the terms and conditions of the Credit
Agreement) are obligated to make, advances under the Term Loan, and Lenders have agreed to grant
such request on and subject to the conditions and terms provided for in this Amendment.

     NOW THEREFORE, with the foregoing Background deemed incorporated by reference in this
Amendment and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, covenant and agree as follows:

     1. AMENDMENTS.

          (a) Amendment to Extend Draw Period. Section 2.1(a)(i) of the Credit Agreement is
hereby amended and restated in its entirety as follows:

Term Loan Amounts. On the terms and subject to the conditions set forth
herein, the Lenders hereby agree to make to Borrowers a term loan in an
original principal amount equal to the Term Loan Commitment (“Term Loan”).
Each Lender’s obligation to fund the Term Loan shall be limited to such
Lender’s Term Loan Commitment Percentage, and no Lender shall have any
obligation to fund any portion of any Term Loan required to be funded by any
other Lender, but not so funded. No Borrower shall have any right to
reborrow any portion of the Term Loan that is repaid or prepaid from time to
time. The Term Loan may be funded in multiple advances in an aggregate
amount not to exceed the Term Loan Commitment, but no advances under the
Term Loan shall be made after December 31, 2007, and any portion of the Term
Loan Commitment not funded as of the close of business on such December 31,
2007 shall thereupon automatically be terminated and the Term Loan
Commitment Amount of each Lender as of such date shall be reduced by such
Lender’s Pro Rata Share of such total reduction in the Term Loan Commitment.
Lenders shall have no obligation to make more than one (1) advance in
respect of the
Term Loan per calendar month and Lenders shall have no obligation to make
any advance of the Term Loan that is less than $1,000,000 (other than any
final disbursement). Borrowers

 

 

shall deliver to Administrative Agent a
Notice of Borrowing with respect to each proposed Term Loan advance, such
Notice of Borrowing to be delivered no later than 2:00 PM (Chicago time) two
(2) Business Days prior to such proposed borrowing.

          (b) Amendment to Adjust Amortization for Advances Taken During Extended Draw Period.
Schedule 2.1 attached to the Credit Agreement shall be amended and restated in its entirety
and replaced with the new Schedule 2.1 attached as Exhibit A to this Amendment.

     2. EFFECTIVENESS CONDITIONS. This Amendment is conditioned upon the satisfaction of
each of the conditions (“Effectiveness Conditions”) set forth below (as determined by
Administrative Agent in its reasonable discretion):

          (a) Execution and delivery of this Amendment by the parties hereto;

          (b) Delivery by Borrower of certified copies of resolutions of Borrower’s board of directors
authorizing the execution of this Amendment and performance by Borrower of its obligations
hereunder; and

          (c) Payment by Borrower to Administrative Agent of any and all costs, fees and expenses of
Lenders and Administrative Agent, including attorneys’ fees, in connection with this Amendment and
the transactions contemplated hereby.

     3. REPRESENTATIONS AND WARRANTIES. Borrower represents, warrants and acknowledges to
Administrative Agent and Lenders as follows:

          (a) The execution, delivery and performance by Borrower of this Amendment are within its
corporate powers and have been duly authorized by all necessary action pursuant to its
Organizational Documents, require no further action by or in respect of, or filing with, any
Governmental Authority and do not violate, conflict with, cause a breach or a default under or
result in the imposition of any Lien on any of the property of Borrower pursuant to (a) any Law
applicable to Borrower or any of its Organizational Documents, or (b) any agreement or instrument
binding upon Borrower or by which Borrower’s property is bound , except for such violations,
conflicts, breaches or defaults as could not, with respect to this clause (b), reasonably be
expected to have a Material Adverse Effect. This Amendment has been duly executed and delivered by
Borrower and constitutes a legal, valid and binding obligation of Borrower, enforceable against
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; and

          (b) No Default or Event of Default exists or has occurred and is continuing as of the date of
this Amendment.

     4. REAFFIRMATION OF EXISTING LOAN DOCUMENTS AND EXISTING LIENS. Borrower hereby
confirms and ratifies in all respects the Existing Loan Documents and the Obligations outstanding
thereunder, and acknowledges that the Existing Loan Documents shall continue in full force and
effect as therein written except as amended or modified hereby and that no claims, counterclaims,
offsets or defenses arising out of or with respect to the Existing Loan Documents or the
outstanding Obligations exist. All references to the Credit Agreement in any Financing Document
shall mean the Credit Agreement as modified by this Amendment. Borrower hereby confirms and
restates its existing grant to Administrative Agent for the benefit of Administrative Agent and
Lenders of all Liens in the Collateral as provided for in the Credit Agreement, the other Security
Documents and the other
Existing Loan Documents. Borrower hereby confirms that all Liens at any time granted by it to
Administrative Agent for the benefit of Administrative Agent and Lenders continue and shall
continue in full force and effect and do and shall continue to secure the Obligations, including
any additional advances made pursuant to this Amendment, so long as any such Obligations remain
outstanding and that

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all Collateral subject thereto remain free and clear of any Liens other than
(i) those in favor of Administrative Agent for the benefit of Administrative Agent and Lenders, and
(ii) Liens expressly permitted in the Existing Loan Documents and exhibits thereto. Nothing herein
contained is intended to in any manner impair or limit the validity, priority and extent of
Administrative Agent’s existing Liens upon the Collateral.

     5. CONFIRMATION OF INDEBTEDNESS. Borrower confirms and acknowledges that as of the
date hereof, Borrower is indebted to Lenders and Administrative Agent under the Credit Agreement
and the other Existing Loan Documents in the aggregate principal amount of $9,444,444.44 with
respect to the Term Loan, plus all accrued and unpaid interest thereon at the applicable rate(s)
provided for under the Credit Agreement, plus any and all accrued and unpaid fees at the applicable
rate(s) provided for under the Credit Agreement and the other Financing Documents (if any), plus
any and all unpaid costs and expenses (including attorneys’ fees) incurred to date in connection
with the Credit Agreement and the other Financing Documents and payable by Borrower as and to the
extent provided for in the Credit Agreement and the other Financing Documents, which amounts are
absolutely and unconditionally and jointly and severally owing by Borrowers without defense,
setoff, claim, counterclaim or deduction of any nature and Borrower hereby confirms that no such
defense, setoff, claim, counterclaim or deduction of any nature exists with respect to any of its
respective Obligations under the Credit Agreement and the other Existing Loan Documents.

     6. RELEASE. Borrower, by signing below, acknowledges and agrees that it has no actual
or potential claim or counterclaim or cause of action against Administrative Agent or any Lender
relating to the Credit Agreement or any other Existing Loan Documents and/or the Obligations of
Borrower arising thereunder or related thereto arising on or before the date hereof. As further
consideration for the amendments and accommodations granted by Administrative Agent and Lenders
under and set forth in this Amendment, Borrower hereby waives and releases and forever discharges
Administrative Agent and each Lender, and the respective officers, directors, attorneys, agents,
professionals and employees of Administrative Agent and each Lender (all collectively the
“Releasees”) from any liability, damage, claim, loss or expense of any kind that Borrower had, may
now have or may hereafter have against any one or more of the Releasee(s) arising out of or
relating to this Amendment, the Credit Agreement or any other Existing Loan Document and/or the
transactions described therein or contemplated thereby and/or the Obligations of Borrower arising
thereunder or therefrom or relating thereto and/or any actual or alleged actions, conduct, inaction
or omission on the part of any Releasee(s) in connection with the foregoing, to the extent arising
or occurring on or before the date hereof. Borrower hereby further agrees and covenants not to sue
any of the Releasees for any matter released or discharged by the foregoing, and not to bring any
such cause of action against any Releasee at any time in the future.

     7. MISCELLANEOUS

          (a) Counterparts. This Amendment may be executed in any number of counterparts and by
different parties on separate counterparts (including by facsimile or email transmission of
executed signature pages hereto), each of which counterparts, when so executed and delivered, shall
be deemed to be an original and all of which counterparts, taken together, shall constitute but one
and the same Amendment.

          (b) Modifications. No modification hereof or any agreement referred to herein shall
be binding or enforceable unless in writing and signed on behalf of the party against whom
enforcement is sought.

          (c) No Third Party Beneficiaries; Indemnity. No rights are intended to be created
under this Amendment for the benefit of any third-party not party hereto, including without
limitation any donee, creditor, incidental beneficiary or equity holder or other affiliate of any
Borrower. Each Borrower now or hereafter party to the Credit Agreement (as modified by this
Amendment) hereby agrees to indemnify Administrative Agent and each Lender from and against all
losses, costs, expenses, demands and damages whatsoever which Administrative Agent or such Lender
(as applicable) may suffer or incur

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in respect of any claims which have or may be brought by any
third party relating to this Amendment, the Existing Loan Documents or the transactions
contemplated hereby or thereby. This indemnity shall continue in full force and effect after the
termination of this Amendment, the Credit Agreement and the other Existing Loan Documents and
notwithstanding the completion of the other matters referred to in this Amendment. This
indemnification is in addition to and shall not limit any other indemnification agreement between
Borrowers and Administrative Agent and Lenders, and shall be included within the Obligations.

          (d) Integrated Agreement. This Amendment shall be deemed incorporated into and made a
part of the Existing Loan Documents. The Existing Loan Documents and this Amendment shall be
construed as integrated and complementary of each other, and as augmenting and not restricting
Administrative Agent’s and/or Lenders’ rights, remedies and security. If, after applying the
foregoing, an inconsistency still exists, the provisions of this Amendment shall control.

          (e) Non-Amendment. No omission or delay by Administrative Agent and/or any Lender in
exercising any right or power under this Amendment, or the Existing Loan Documents or any related
agreement will impair such right or power or be construed to be a waiver of any Default or Event of
Default or an acquiescence therein, and any single or partial exercise of any such right or power
will not preclude other or further exercise thereof or the exercise of any other right, and no
further amendment or waiver will be valid unless in writing and then only to the extent specified.
Administrative Agent’s and Lenders’ rights and remedies are cumulative and concurrent and may be
pursued singly, successively or together.

          (f) Headings. The headings of any paragraph of this Amendment are included for
convenience of reference only and shall not be given any substantive effect.

          (g) Survival. All warranties, representations and covenants made by Borrowers herein,
or in any agreement referred to herein or on any certificate, document or other instrument
delivered by them or on their behalf under this Amendment, shall be considered to have been relied
upon by Administrative Agent and Lenders. All statements in any such certificate or other
instrument shall constitute warranties and representations by the respective Borrowers hereunder.
All warranties, representations, indemnities and covenants made by Borrowers hereunder or under any
other agreement or instrument shall be deemed continuing until the Obligations are indefeasibly
paid and satisfied in full.

          (h) Further Assurances. The parties hereto shall execute and deliver such additional
documents and take such additional action, as may be reasonably necessary or desirable to
effectuate the provisions and purposes of this Amendment.

          (i) Successors and Assigns. This Amendment shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties hereto, provided that, no
Borrower may assign, delegate or otherwise transfer any of its rights or other obligations
hereunder without the prior written consent of Administrative Agent and each Lender.

          (j) Time of the Essence. Time is of the essence with respect to the performance by
Borrowers of all of their obligations, undertakings, liabilities and duties under this Amendment.

          (k) Severability. In case any provision of or obligation under this Amendment shall
be invalid, illegal or unenforceable in any 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.

          (l) Governing Law. THIS AMENDMENT, AND ALL 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 ILLINOIS,

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WITHOUT
REGARD TO CONFLICTS OF LAWS PRINCIPLES. EACH BORROWER NOW OR HEREAFTER PARTY TO THE CREDIT
AGREEMENT (AS MODIFIED BY THIS AMENDMENT) HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR
FEDERAL COURT LOCATED WITHIN CHICAGO, STATE OF ILLINOIS AND IRREVOCABLY AGREES THAT, SUBJECT TO
ADMINISTRATIVE AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE OTHER FINANCING DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. EACH BORROWER NOW OR
HEREAFTER PARTY TO THE CREDIT AGREEMENT (AS MODIFIED BY THIS AMENDMENT) EXPRESSLY SUBMITS AND
CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON
CONVENIENS. EACH BORROWER NOW OR HEREAFTER PARTY TO THE CREDIT AGREEMENT (AS MODIFIED BY THIS
AMENDMENT) HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE
OF PROCESS MAY BE MADE UPON SUCH BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
REQUESTED, ADDRESSED TO SUCH BORROWER AT THE ADDRESS SET FORTH IN THE CREDIT AGREEMENT AND SERVICE
SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

          (m) Jury Trial. EACH BORROWER NOW OR HEREAFTER PARTY TO THE CREDIT AGREEMENT (AS
MODIFIED BY THIS AMENDMENT), ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AMENDMENT OR ANY OF THE EXISTING LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
EACH BORROWER NOW OR HEREAFTER PARTY TO THE CREDIT AGREEMENT (AS MODIFIED BY THIS AMENDMENT),
ADMINISTRATIVE 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
AMENDMENT AND THE OTHER EXISTING LOAN, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR
RELATED FUTURE DEALINGS. EACH BORROWER NOW OR HEREAFTER PARTY TO THE CREDIT AGREEMENT (AS MODIFIED
BY THIS AMENDMENT), ADMINISTRATIVE AGENT AND EACH LENDER WARRANTS AND REPRESENTS THAT IT HAS HAD
THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

[Signatures on Following Page]

[Remainder of Page Left Intentionally Blank]

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     IN WITNESS WHEREOF, the undersigned parties have executed this Amendment the day and year
first above written.

BORROWER:

OREXIGEN THERAPEUTICS, INC.

By: /s/ Graham Cooper

Name: Graham Cooper

Title: Chief Financial Officer

AGENT:

MERRILL LYNCH CAPITAL,

a division of Merrill Lynch Business Financial Services Inc.,

as Administrative Agent and a Lender

By: /s/ William D. Gould

Name: William D. Gould

Title: Director

LENDERS:

MERRILL LYNCH CAPITAL,

a division of Merrill Lynch Business Financial Services Inc.,

as sole Lender

By: /s/ William D. Gould

Name: William D. Gould

Title: Director

[Signature Page 1 of 1 to First Amendment to Merrill Lynch/Orexigen Credit and Security Agreement]

 

 

EXHIBIT
A TO FIRST AMENDMENT TO MERRILL LYNCH/OREXIGEN CREDIT AGREEMENT

New Schedule 2.1 to Credit Agreement

See Attached

 

 

	 	 	 
	

	 	Schedule 2.1 — Amortization Schedule

     Commencing on the first day of the first calendar month following the date of each advance
under the Term Loan, and in the case of each such advance continuing on the first day of each
calendar month thereafter, Borrowers shall pay to Administrative Agent as a principal payment under
each Term Loan advance outstanding an amount equal to the “Amortization Payment” (defined below) as
an amortization payment in respect of each advance under the Term Loan. The term “Amortization
Payment” means the principal payment based upon a thirty-six (36) month straight-line amortization
of equal monthly principal payments; provided that, in the case of any Term Loan advance
requested by Borrowers and made by Lenders on or after July 1, 2007, “Amortization Payment” shall
mean a principal payment based upon a straight-line amortization of equal monthly principal
payments over the number of months equal to the number of full calendar months (beginning with the
first full calendar month beginning after the date of such advance) between the date of such
advance and June 30, 2010 (for example, the number of months in the amortization schedule for an
advance made on August 15, 2007 would be thirty-four (34)).<PAGE>
                                                                     Exhibit 4.1

[FACE OF CERTIFICATE]

NDMX

NANODYNAMICS, INC.

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP 63009A 10 6

THIS IS TO CERTIFY THAT

IS THE OWNER OF

FULLY-PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK OF THE PAR VALUE OF
$.001 PER SHARE OF

NANODYNAMICS, INC.

(hereinafter called the "Corporation") transferable on the books of the
Corporation by said owner in person or by duly authorized attorney, upon
surrender of this certificate properly endorsed. This certificate is not valid
unless countersigned by the Transfer Agent. Witness the facsimile seal of the
Corporation and the facsimile signatures of its duly authorized officers.

Dated:

[SIGNATURE AND TITLE TO COME]

[SEAL]

[SIGNATURE AND TITLE TO COME]

COUNTERSIGNED:
AMERICAN STOCK TRANSFER & TRUST COMPANY
      (NEW YORK, NEW YORK)
TRANSFER AGENT
BY
AUTHORIZED OFFICER

<PAGE>

[REVERSE OF CERTIFICATE]

The Corporation will furnish without charge to each stockholder who so requests
a statement of the powers, designations, preferences and relative,
participating, optional or other special rights of each class of stock or series
thereof and the qualifications, limitations or restrictions of such preferences
and/or rights.

The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common

TEN ENT - as tenants by the entireties

JT TEN - as joint tenants with right of survivorship and not as tenants in
common

UNIF GIFT MIN ACT ----                  Custodian
                       -------------------------------------------------
                        (Cust)                        (Minor)
under Uniform Gifts to Minors
Act
    -------------------------
      (State)

Additional abbreviations may also be used though not in the above list.

For value received,                        hereby sell, assign and transfer unto
                    ----------------------

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

shares of the capital stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint

Attorney to transfer the said stock on the books of the within named Corporation
with full power of substitution in the premises.

Dated

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS
WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION
OR ENLARGEMENT OR ANY CHANGE WHATEVER.
<PAGE>

Signature(s) Guaranteed:

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15.

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