SEC Contract Filing

Filing Date: 2018-07-03

Document Content:
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<TYPE>EX-10.1
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<FILENAME>d466633dex101.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>LOAN AND SECURITY AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">THIS LOAN AND SECURITY AGREEMENT is made and dated as of July&nbsp;2, 2018 and is entered into by and between MERRIMACK PHARMACEUTICALS, INC.,
a Delaware corporation, and each of its Qualified Subsidiaries (collectively referred to as &#147;Borrower&#148;), the several banks and other financial institutions or entities from time to time parties to this Agreement (collectively, referred to
as &#147;Lender&#148;) and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and Lender (in such capacity, &#147;Agent&#148;). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RECITALS </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A. Borrower has
requested Lender to make available to Borrower a loan or loans in an aggregate principal amount of up to Twenty-Five Million Dollars ($25,000,000.00) (the &#147;Term Loan&#148;); and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">B. Lender is willing to make the Term Loan on the terms and conditions set forth in this Agreement. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AGREEMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW,
THEREFORE, Borrower, Agent and Lender agree as follows: </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SECTION 1. <U>DEFINITIONS AND RULES OF CONSTRUCTION</U> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.1 Unless otherwise defined herein, the following capitalized terms shall have the following meanings: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Account Control Agreement(s)&#148; means any agreement entered into by and among Agent, Borrower and a third party Bank or other
institution (including a Securities Intermediary) in which Borrower maintains a Deposit Account or an account holding Investment Property and which perfects Agent&#146;s first priority security interest in the subject account or accounts. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;ACH Authorization&#148; means the ACH Debit Authorization Agreement in substantially the form of Exhibit G, which account numbers may be
redacted for security purposes if and when filed publicly by Borrower. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Advance(s)&#148; means a Term Loan Advance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Advance Date&#148; means the funding date of any Advance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Advance Request&#148; means a request for an Advance submitted by Borrower to Agent in substantially the form of Exhibit&nbsp;A, which
account numbers may be redacted for security purposes if and when filed publicly by Borrower. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Affiliate&#148; means (a)&nbsp;any Person that directly or indirectly controls, is
controlled by, or is under common control with the Person in question, (b)&nbsp;any Person directly or indirectly owning, controlling or holding the power to vote ten percent (10%) or more of the outstanding voting securities of another Person,
(c)&nbsp;any Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held by another Person with power to vote such securities, or (d)&nbsp;any Person related by blood or marriage to
any Person described in subsection (a), (b) or (c)&nbsp;of this paragraph. As used in the definition of &#147;Affiliate,&#148; the term &#147;control&#148; means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Agent&#148;
has the meaning given to such term in the preamble to this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Agreement&#148; means this Loan and Security Agreement, as
amended from time to time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Amortization Date&#148; means February&nbsp;1, 2020. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;Anti-Corruption Laws&#148; shall mean all laws, rules, and regulations of any jurisdiction applicable to Borrower or any of its
Affiliates from time to time co