Exhibit 4.6
LOAN AND SECURITY AGREEMENT
THIS AGREEMENT (the "Agreement"), dated as of December 16, 1999 (the
"Closing Date") is entered into by and between Cytokinetics, Incorporated, a
Delaware corporation having a principal place of business at 000 Xxxx Xxxxx
Xxxxxx, Xxxxx Xxx Xxxxxxxxx, XX 00000 (the "Borrower") and Comdisco, Inc., a
Delaware corporation having a principal place of business at 0000 Xxxxx Xxxxx
Xxxx, Xxxxxxxx, Xxxxxxxx 00000 (the "Lender"). In consideration of the mutual
agreements contained herein, the parties hereto agree as follows:
WHEREAS, Borrower has requested Lender to make available to Borrower a
loan in the aggregate principal amount of up to FIVE MILLION and 00/100 DOLLARS
($5,000,000) (as the same may from time to time be amended, modified,
supplemented or revised, the "Loan"), which shall be available in minimum
installments of TWO HUNDRED FIFTY THOUSAND and 00/100 DOLLARS ($250,000) each
(the "Advance") on various dates prior to December 16, 2000 ("Advance Date(s)"),
which would be evidenced by Secured Promissory Note(s) executed by Borrower
substantially in the form of EXHIBIT A-1 AND A-2 hereto (as the same may from
time to time be amended, modified, supplemented or restated the "Note(s)");
NOW, THEREFORE, it is agreed:
SECTION 1. THE LOAN
1.1 Subject to the terms and conditions set forth herein, Lender
shall lend to Borrower the aggregate original principal amount of FIVE MILLION
AND 00/100 DOLLARS ($5,000,000) in two parts, the first part in the amount of
Two Million Dollars ($2,000,000) ("Part I") and the second part in the amount of
Three Million dollars ($3,000,000) ("Part II') together with interest at the
rate of eight and one quarter percent (8.25%) per annum due and payable in
monthly installments as set forth in the Note.
Proceeds of this Loan may finance computers, workstations, peripherals,
instrumentation, electronic test equipment, office furniture, certain microscopy
equipment and other equipment approved by Lender and evidenced by Secured
Promissory Note(s) executed by Borrower substantially in the form of EXHIBIT A-1
.. Up to 20% of the Loan may be used to finance software and tenant improvements
evidenced by Secured Promissory Note(s) executed by Borrower substantially in
the form of EXHIBIT A-2. Lender will not finance custom equipment, installation
costs, delivery costs, rolling stock, special tooling, molds and hand held
items.
1.2 Upon the occurrence of and during an Event of Default (as
defined herein), interest shall thereafter be calculated at a rate of five
percent (5%) in excess of the rate that would otherwise be applicable ("Default
Rate"). All such interest shall be due and payable in arrears, on the first day
of the following month.
1.3 Notwithstanding any provision in this Agreement, the Note, or
any other "Loan Document" (as defined herein), it is not the parties' intent to
contract for, charge or receive interest at a rate that is greater than the
maximum rate permissible by law which a court of competent jurisdiction shall
deem applicable hereto (which under the laws of the State of Illinois shall be
deemed to be the laws relating to permissible rates of interest on commercial
loans) (the "Maximum Rate"). If the Borrower actually pays Lender an amount of
interest, chargeable on the
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total aggregate principal Secured Obligations of Borrower under this Agreement
and the Note (as said rate is calculated over a period of time that is the
longer of (i) the time from the date of this Agreement through the maturity time
as set forth on the Note, or (ii) the entire period of time that any principal
is outstanding on the Note), which amount of interest exceeds interest
calculated at the Maximum Rate on said principal chargeable over said period of
time, then such excess interest actually paid by Borrower shall be applied
first, to the payment of principal outstanding on the Note; second, after all
principal is repaid, to the payment of Lender's out of pocket costs, expenses,
and professional fees which are owed by Borrower to Lender under this Agreement
or the Loan Documents; and third, after all principal, costs, expenses, and
professional fees owed by Borrower to Lender are repaid, the excess (if any)
shall be refunded to Borrower.
1.4 In the event any interest is not paid when due hereunder,
delinquent interest shall be added to principal and shall bear interest on
interest, compounded at the rate set forth in Section 1.1.
1.5 Upon and during the continuation of an Event of Default
hereunder (as defined herein), all Secured Obligations, including principal,
interest, compounded interest, and reasonable professional fees, shall bear
interest at a rate per annum equal to the Default Rate.
1.6 Borrower shall have the option to prepay the Note, in whole or
in part, at any time after the date hereof by paying the principal amount
together with all accrued and unpaid interest with respect to such principal
amount, as of the date of such prepayment and the Balloon Payment as described
in the Note together with a prepayment premium equal to the difference, if any,
between (x) the amount being prepaid and (y) the present value, discounted at
the Treasury Rate, of each installment of principal and interest being prepaid
discounted to the date of prepayment. If the amount in (x) is greater than the
amount in (y), no prepayment premium shall be due. The "Treasury Rate" shall
mean the then prevailing yield on US Treasury Constant Maturities for the most
recent business day, as quoted in the Federal Reserve Statistical Release H15,
as of the date of prepayment for an obligation of comparable maturity to the
maturity date of the Note.
SECTION 2. SECURITY INTEREST
As security for the payment of all indebtedness ("Indebtedness") of the
Borrower to the Lender hereunder and under the Note, as the same may be renewed,
extended for any period or rearranged, and the performance by the Borrower of
its other obligations hereunder (the Indebtedness and such other obligations
being hereinafter sometimes collectively referred to as the "Secured
Obligations"), the Borrower hereby assigns to the Lender, and grants to the
Lender a first priority security interest in, all the Borrower's right, title,
and interest in and to the following property ("Collateral"): (i) the equipment
and other property (the "Equipment") described in Exhibit B attached hereto; and
(ii) all proceeds, products, replacements, additions to, substitutions for and
accessions to any and all Equipment including, without limitation, the proceeds
applicable to the insurance referred to in Section 4 hereof.
Equipment shall consist of computers, workstations, peripherals,
instrumentation, electronic test equipment, office furniture, certain types of
microscopy equipment and other items of equipment approved by Lender. Up to 20%
of the Loan may be used for software and tenant improvements.
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SECTION 3. REPRESENTATIONS AND WARRANTIES OF BORROWER
The Borrower represents, warrants and agrees that:
3.1 it has good title in and to the Equipment, free of all liens,
security interests, encumbrances and claims whatsoever, except for the interest
of the Lender therein;
3.2 it has the full power and authority to, and does hereby grant
and convey to the Lender, a valid first priority perfected security interest in
the Collateral as security for the Secured Obligations, free of all liens,
security interests, encumbrances and claims, and shall execute such Uniform
Commercial Code ("UCC") financing statements in connection herewith as the
Lender may reasonably request. No other lien, security interest, adverse claim
or encumbrance has been created by Borrower or is known by Borrower to exist
with respect to any Collateral;
3.3 it is a corporation duly organized, legally existing and in
good standing under the laws of the State of Delaware, and is duly qualified as
a foreign corporation in all jurisdictions where the failure to so qualify would
have a material adverse effect on the Collateral or the business of the Borrower
taken as a whole;
3.4 the execution, delivery and performance of the Note, this
Agreement, the Warrant Agreement dated December 16, 1999 pursuant to which
Borrower granted to Lender the right to purchase the number of shares of
preferred stock as set forth therein ("Warrant Agreement"), and all financing
statements, certificates and other documents required to be delivered or
executed in connection herewith (collectively, the "Loan Documents") have been
duly authorized by all necessary corporate action of Borrower, the individual or
individuals executing the Loan Documents were duly authorized to do so, the
Equipment is personal property and as used by the Borrower will not be or become
fixtures under applicable law, and the Loan Documents constitute legal, valid
and binding obligations of the Borrower, enforceable in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, reorganization
or other similar laws generally affecting the enforcement of the rights of
creditors;
3.5 the Loan Documents do not and will not violate any provisions
of its Certificate of Incorporation, bylaws or any contract, agreement, law,
regulation, order, injunction, judgment, decree or writ to which the Borrower is
subject, or result in the creation or imposition of any lien, security interest
or other encumbrance upon the Collateral, other than those created by this
Agreement;
3.6 the execution, delivery and performance of the Loan Documents
do not require the consent or approval of any other person or entity including,
without limitation, any regulatory authority or governmental body of the United
States or any state thereof or any political subdivision of the United States or
any state thereof.
3.7 as of the date hereof no fact or condition exists that would
(or could, with the passage of time, the giving of notice, or both) constitute
an Event of Default under this Agreement or any of the Loan Documents and no
event which has had or could reasonably be expected to have a Material Adverse
Effect has occurred and is continuing. For purposes of this Agreement, "Material
Adverse Effect" means a material adverse effect upon (i) the business,
operations, properties, assets or financial condition of Borrower; or (ii) the
ability of Borrower to perform the Secured Obligations.
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SECTION 4. INSURANCE AND RISK OF LOSS
4.1 Risk of loss of, damage to or destruction of the Equipment
shall be borne by the Borrower and effective from the date of this Agreement and
until the payment and performance in full of all Secured Obligations, Borrower
shall at its own expense cause to be carried and maintained all risk casualty
insurance (covering risk of fire, theft and other such risks as the Lender may
require, including standard and extended coverage) with respect to each item of
Equipment in an amount no less than the replacement costs applicable to such
item of Equipment during the term of this Agreement. All policies evidencing
such casualty insurance shall contain a standard mortgagee's endorsement and
shall provide for at least thirty days prior written notice by the underwriter
or insurance company to the Lender in the event of cancellation or expiration.
Borrower shall provide Lender with insurance certificates evidencing the
foregoing at time of closing.
4.2 If any item of Equipment is lost or rendered unusable as a
result of any physical damage to or destruction of such item of Equipment during
the period from the date hereof to and including the maturity date under the
Note or the date all Secured Obligations hereunder have been fully satisfied,
whichever is later, Borrower shall give to Lender prompt notice thereof.
Borrower shall determine, within fifteen (15) days after the date of occurrence
of such loss, damage or destruction, whether such item of Equipment can be
repaired and restored to the condition in which such item of Equipment was
required to be maintained as of the date immediately preceding such damage. If
Borrower determines that such item of Equipment can be repaired, Borrower, at
its expense, shall cause such item of Equipment to be promptly repaired. If
Borrower determines that such item of I Equipment is lost or cannot be repaired,
Borrower shall promptly notify the Lender and such item of Equipment shall be
deemed to have suffered a "Casualty Loss" for purposes of this Section as of the
date of the occurrence of such loss. Within fifteen (15) days following the
occurrence of any such loss, damage or destruction, Borrower shall notify the
Lender of the item(s) of Equipment which has suffered such Casualty Loss ("Loss
Item"), and within thirty (30) days thereafter (the "Settlement Date"), Borrower
shall either (a) replace such item(s) of Equipment with equipment of the same
model, type and feature configuration, in an operating condition and repair no
less than that required hereunder of the damaged or lost equipment immediately
prior to the date of such damage or loss, and having a fair market value no less
than the Casualty Value (as defined herein) applicable to such item of Equipment
as of the date immediately prior to such damage, in which case such replacement
equipment shall for all purposes hereunder become part of the Collateral and
(without limiting the preceding provisions) Borrower shall grant to Lender a
first lien and security interest in respect of such replacement equipment
pursuant to the terms of this Agreement, and Borrower shall provide the Lender
evidence satisfactory to the Lender of Borrower's good and marketable title to
such replacement equipment (free of any liens, security interests or
encumbrances other than those created by this Agreement and Borrower shall be
entitled to receive the amount of any insurance or other recovery received by
Lender up to cost of obtaining the replacement equipment; or (b) so long as no
Event of Default or event which with the giving of notice or passage of time, or
both, would constitute an Event of Default, has occurred and is continuing,
Borrower may provide substitute equipment satisfactory to Lender to become part
of the Collateral and Borrower shall grant to Lender a first lien and security
interest in respect of such substitute equipment pursuant to the terms of this
Agreement, and Borrower shall provide the Lender evidence satisfactory to Lender
of Borrower's good and marketable title to such substitute equipment (free of
any liens, security interests or
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encumbrances other than created by this Agreement and Lender shall provide any
required endorsements in connection with any insurance proceeds received by
Borrower pursuant to such insurance policies; or (c) Borrower shall pay Lender
the insurance proceeds payable pursuant to such insurance policies ("Insurance
Proceeds")with respect to such Loss Item(s) and the principal amount of the Note
(and interest accrued on the principal amount so prepayable) shall become due
and payable on the Settlement Date to the extent of the replacement cost for all
such Loss Item(s). For purposes of this Section 4.2, Casualty Value shall mean
an amount equal to the greater of the fair market value of the Equipment as of
the date of the Casualty Loss or the outstanding principal and accrued interest
on the Loan. Moneys so received shall be applied, on the date of such receipt,
as follows: first, to pay any accrued interest on the outstanding principal
amount of the Note on such date; second, to prepay, the outstanding principal
amount of the Note (to the extent of the fair market value attributable to such
Loss Item(s)); third, to pay any other Indebtedness of amounts then due and
owing to the Lender hereunder; and fourth, so long as there has occurred no
Event of Default under Section 8 hereof and no event which with the giving of
notice or passage of time or both would constitute an Event of Default, has
occurred and is continuing, Borrower and Lender hereby agree that the balance of
any such Insurance Proceeds shall be paid promptly to the Borrower.
4.3 Effective upon the date hereof under the Note and while there
are any Secured Obligations outstanding, Borrower shall cause to be carried and
maintained comprehensive general liability insurance with regard to the
Collateral against risks customarily insured against in the Borrower's business.
Such risks shall include, without limitation, the risks of death, bodily injury
and property damage associated with the Collateral. All policies evidencing such
insurance shall provide for at least thirty (30) days prior written notice by
the underwriter or insurance company to the Lender in the event of cancellation
or expiration.
4.4 Borrower shall and does hereby indemnify and hold Lender, its
agents and shareholders harmless from and against any and all claims, costs,
expenses, damages and liabilities (including without limitation such claims,
costs, expenses, damages and liabilities based on liability in tort including
without limitation strict liability in tort) including reasonable attorneys'
fees, arising out of Borrower's ownership, possession, operation, control, use,
maintenance, delivery, or other disposition of the Collateral. Notwithstanding
the foregoing, Borrower shall not be responsible under the terms of this Section
4.4 to a party indemnified hereunder for any claims, costs, expenses, damages
and liabilities occasioned by the negligence or willful misconduct of such
indemnified party.
SECTION 5. COVENANTS OF BORROWER
Borrower covenants and agrees as follows at all times while any of the
Secured Obligations remain outstanding:
5.1 Borrower shall maintain the Equipment in good operating order,
repair, condition and appearance and protect the Equipment from deterioration,
other than normal wear and tear. Borrower shall not use the Equipment or permit
its use for any purpose other than for which it was designed. Borrower's
obligation regarding the maintenance of the Equipment shall include, without
limitation, all maintenance, repair, refurbishment and replacement recommended
or advised either by the manufacturer, or that commonly performed by prudent
business and/or professional practice. Any exceptions or qualifications
expressed in this Agreement relating to normal or
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ordinary wear and tear shall not be deemed to limit Borrower's obligations
pursuant to the preceding sentence.
5.2 Borrower shall only relocate any item of the Collateral
provided that: (a) it shall have caused to be filed and/or delivered to the
Lender all UCC financing statements, certificates or other documents or
instruments necessary to continue in effect the first prior perfected security
interest of the Lender in the Collateral, and (b) it shall have given the Lender
no less than fifteen (15) days prior written notice of such relocation.
5.3 Upon the request of Lender, Borrower shall, during business
hours, make the Equipment available to Lender for inspection at the place where
it is normally located and shall make Borrower's log and maintenance records
pertaining to the Equipment available to the Equipment available to Lender for
inspection. Borrower shall take all action necessary to maintain such logs and
maintenance records in a correct and complete fashion.
5.4 Upon the request of Lender, Borrower shall cause the Equipment
to be plainly, permanently and conspicuously marked, by stenciling or by metal
tag or plate affixed thereto, indicating Lender's security interest in the
Equipment. Borrower shall replace any such stenciling, tag or plate which may be
removed or destroyed or become illegible. Borrower shall keep all Equipment free
from any marking or labeling which might be interpreted as a claim of ownership
adverse to Borrower's.
5.5 Borrower covenants and agrees to pay when due, all taxes, fees
or other charges of any nature whatsoever (together with any related interest or
penalties) now or hereafter imposed or assessed against Borrower, Lender or the
Collateral or upon Borrower's ownership, possession, use, operation or
disposition thereof or upon Borrower's rents, receipts or earnings arising
therefrom. Borrower shall file on or before the due date therefor all personal
property tax returns in respect of the Collateral.
5.6 Borrower shall furnish to Lender the financial statements
listed hereinafter, prepared in accordance with generally accepted accounting
principles consistently applied (the "Financial Statements"):
(a) as soon as practicable (and in any event within
thirty (30) days) after the end of each month: an internally prepared
income statement, balance sheet, and cash flow statement, (including
the commencement of any material litigation by or against Borrower),
each certified by Borrower's Chief Executive or Financial Officer to be
true and correct;
(b) as soon as practicable (and in any event within
ninety (90) days) after the end of each fiscal year, audited Financial
Statements, setting forth in comparative form the corresponding figures
for the preceding fiscal year, and accompanied by any audit report and
opinion of the independent certified public accountants selected by
Borrower; and
(c) promptly any additional information (including but
not limited to tax returns, income statements, balance sheets, and
names of principal creditors) as Lender reasonably believes necessary
to evaluate Borrower's continuing ability to meet financial
obligations.
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5.7 Notwithstanding the foregoing, after the effective date of the
initial registration statement covering a public offering of Borrower's
securities, the term "Financial Statements" shall be deemed to refer to only
those statements required by the Securities and Exchange Commission, to be
provided no less frequently than quarterly. Borrower will from time to time
execute, deliver and file, alone or with Lender, any financing statements,
security agreements or other documents; and take all further action that may be
necessary, or that Lender may reasonably request, to confirm, perfect, preserve
and protect the security interests intended to be granted hereby, and in
addition, and for such purposes only, Borrower hereby authorizes Lender to
execute and deliver on behalf of Borrower and to file such financing statements,
security agreement and other documents without the signature of Borrower either
in Lender's name or in the name of Borrower as agent and attorney-in-fact for
Borrower.
5.8 Borrower shall protect and defend Borrower's title as
well as the interest of the Lender against all persons claiming any interest
adverse to Borrower or Lender and shall at all times keep the Collateral free
and clear from any attachment or levy, liens or encumbrances whatsoever (except
any placed thereon by Lender, or any liens arising by operation of law with
respect to any obligations not yet overdue or any other liens consented to in
writing by Lender) and shall give Lender immediate written notice thereof.
SECTION 6. CONDITIONS PRECEDENT TO LOAN
The obligation of Lender to fund the Loan on each Advance Date(s) shall be
subject to satisfaction by Borrower or waiver by Lender, in Lender's sole
discretion, of the following conditions:
6.1 (a) The Advance Date(s) for any installment shall occur on or
before December 16, 2000.
6.2 DOCUMENT DELIVERY. Borrower, on or prior to the Closing Date,
shall have delivered to Lender the following, in form and substance reasonably
satisfactory to Lender:
(a) executed originals of the Agreement, Note(s), Warrant
Agreement and any documents reasonably required by Lender to effectuate
the liens of Lender, with respect to all Collateral;
(b) certified copy of resolutions of Borrower's board of
directors evidencing approval of the borrowing and other transactions
evidenced by the Loan Documents;
(c) certified copies of the Certificate of Incorporation
and the Bylaws of Borrower, as amended through the Closing Date;
(d) certificate of good standing for Borrower from its
state of incorporation and similar certificates from all other
jurisdictions in which it does business and where the failure to be
qualified would have a Material Adverse Effect;
(e) such other documents as Lender may reasonably
request.
6.3 ADVANCE REQUEST. Borrower, on or prior to each Advance
Date(s), shall have delivered to Lender the following:
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(a) a minimum of two (2) business days prior to the
Advance Date(s), written notice in the form of an Advance Request, or
as otherwise specified by Lender from time to time, specifying amount
of such Advance and wire transfer instructions;
(b) such other documents as Lender may reasonably
request.
6.4 PERFECTION OF SECURITY INTERESTS. Borrower shall have taken or
caused to be taken such actions requested by Lender to grant Lender a first
priority perfected security interest in the Collateral. Such actions shall
include, without limitation, the delivery to Lender of all appropriate financing
statements, executed by Borrower, as to the Collateral granted by Borrower for
all jurisdictions as may be necessary or desirable to perfect the security
interest of Lender in such Collateral
6.5 ABSENCE OF EVENTS OF DEFAULTS. As of the Closing Date or the
Advance Date, no fact or condition exists that would (or would, with the passage
of time, the giving of notice, or both) constitute an Event of Default under
this Agreement or any of the Loan Documents.
6.6 MATERIAL ADVERSE EFFECT. As of the Closing Date or the Advance
Date, no event which has had or could reasonably be expected to have a Material
Adverse Effect has occurred and is continuing.
SECTION 7. ASSIGNMENT BY LENDER
7.1 Borrower acknowledges and understands that Lender may sell and
assign all or a part of its interest hereunder and under the Note and Loan
Documents to any person or entity (an "Assignee"). After such assignment the
term Lender shall mean such Assignee, and such Assignee shall be vested with all
rights, powers and remedies of Lender hereunder with respect to the interest so
assigned; but with respect to any such interest not so transferred, the Lender
shall retain all rights, powers and remedies hereby given. No such assignment by
Lender shall relieve Borrower of any of its obligations hereunder. Borrower
shall acknowledge such assignment or assignments as shall be designated by
written notice given by Lender to Borrower. The Lender agrees that in the event
of any transfer by it of the Note, it will endorse thereon a notation as to the
portion of the principal of the Note which shall have been paid at the time of
such transfer and as to the date to which interest shall have been last paid
thereon.
SECTION 8. DEFAULT
The occurrence of any one or more of the following events (herein
called "Events of Default") shall constitute a default hereunder and under the
Note:
8.1 The Borrower defaults in the payment of any principal or
interest payable under this Agreement, the Note or any of the other Loan
Documents and such default continues for more than five (5) days after the due
date thereof;
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8.2 The Borrower defaults in the payment or performance of any
other covenant or obligation of the Borrower hereunder or under the Note or any
other Loan Documents for more than ten (10) days after the Lender has given
notice of such default to the Borrower;
8.3 Any representation or warranty made herein by the Borrower
shall prove to have been false or misleading in any material respect;
8.4 The making of an assignment by Borrower for the benefit of its
creditors or the admission by Borrower in writing of its inability to pay its
debts as they become due, or the insolvency of Borrower, or the filing by
Borrower of a voluntary petition in bankruptcy, or the adjudication of Borrower
as a bankrupt, or the filing by Borrower of any petition or answer seeking for
itself any reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under any present or future statute, law or
regulation, or the filing of any answer by Borrower admitting, or the failure by
Borrower to deny, the material allegations of a petition filed against it for
any such relief, or the seeking or consenting by Borrower to, or acquiescence by
Borrower in, the appointment of any trustee, receiver or liquidator of Borrower
or of all or any substantial part of the properties of Borrower, or the
inability of Borrower to pay its debts when due, or the commission by Borrower
of any act of bankruptcy as defined in the Federal Bankruptcy Act, as amended;
8.5 The failure by Borrower, within sixty (60) days after the
commencement of any proceeding against Borrower seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any present or future statute, law or regulation, to obtain the
dismissal of such proceeding or, within sixty (60) days after the appointment,
without the written consent or acquiescence of Lender, of any trustee, receiver
or liquidator of Borrower or of all or any substantial part of the properties of
Borrower, to vacate such appointment; or
8.6 The default by Borrower under any other notes or other
agreement for borrowed money, lease or other agreement between Borrower and
Lender.
SECTION 9. REMEDIES
Upon the occurrence hereof of any one or more Events of Default,
Lender, at its option, may declare the Note to be accelerated and immediately
due and payable, (provided, that upon the occurrence of an Event of Default of
the type described in 8.4 or 8.5, the Note and all other Secured Obligations
shall automatically be accelerated and made due and payable without any further
act) whereupon the unpaid principal of and accrued interest on such Note shall
become immediately due and payable, and shall thereafter bear interest at the
Default Rate and calculated in accordance with Section 1.2. Lender may exercise
all rights and remedies with respect to the Collateral granted pursuant hereto
for such Note, or otherwise available to it under applicable law, including the
right to release, hold or otherwise dispose of all or any part of the Collateral
and the right to utilize, process and commingle the Collateral.
Upon the happening and during the continuance of any Event of Default,
Lender may then, or at any time thereafter and from time to time, apply,
collect, sell in one or more sales, lease or otherwise dispose of, any or all of
the Collateral, in its then condition or following any commercially reasonable
preparation or processing, in such order as Lender may elect, and any such sale
may be made either at public or private sale at its place of business or
elsewhere.
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Borrower agrees that any such public or private sale may occur upon five (5)
calendar day's notice to Borrower. Lender may require Borrower to assemble the
Collateral and make it available to Lender at a place designated by Lender which
is reasonably convenient to Lender and Borrower. The proceeds of any sale,
disposition or other realization upon all or any part of the collateral shall be
distributed by Lender in the following order of priorities:
First, to Lender in an amount sufficient to pay in full Lender's
reasonable costs and professionals' and advisors' fees and expenses;
Second, to Lender in an amount equal to the then unpaid amount of the
Secured Obligations in such order and priority as Lender may choose in
its sole discretion; and
Finally, upon payment in full of all of the Secured Obligations, to
Borrower or its representatives or as a court of competent jurisdiction
may direct.
The Lender shall return to the Borrower any surplus Collateral remaining after
payment of all Secured Obligations.
SECTION 10. MISCELLANEOUS
10.1 Borrower shall remain liable to Lender for any unpaid Secured
Obligations, advances, costs, charges and expenses, together with interest
thereon and shall pay the same immediately to Lender at Lender's offices.
10.2 The powers conferred upon Lender by this Agreement are solely
to protect its interest in the Collateral and shall not impose any duty upon
Lender to exercise any such powers.
10.3 This is a continuing Agreement and the grant of a security
interest hereunder shall remain in full force and effect and all the rights,
powers and remedies of Lender hereunder shall continue to exist until the
Secured Obligations are paid in full as the same become due and payable. When
Borrower has paid in full all Secured Obligations, Lender will execute a written
termination statement, reassigning to Borrower, without recourse, the Collateral
and all rights conveyed hereby and return possession (if Lender has possession)
of the Collateral to Borrower. The rights, powers and remedies of Lender
hereunder shall be in addition to all rights, powers and remedies given by
statute or rule of law and are cumulative. The exercise of any one or more of
the rights, powers and remedies provided herein shall not be construed as a
waiver of any other rights, powers and remedies of Lender. Furthermore,
regardless of whether or not the UCC is in effect in the jurisdiction where such
rights, powers and remedies are asserted, Lender shall have the rights, powers
and remedies of a secured party under the UCC.
10.4 Upon payment in full of all Secured Obligations, the Lender
shall cancel the Note, this Agreement and all UCC financing statements, if any,
and shall promptly deliver all such canceled documents to the Borrower.
10.5 GOVERNING LAW. This Agreement, the Note and the other Loan
Documents have been negotiated and delivered to Lender in the State of Illinois
and shall not become effective until accepted by Lender in the State of
Illinois. Payment to Lender by Borrower of the Secured Obligations is due in the
State of Illinois. This Agreement shall be governed by, and
Loan and Security Agr. -10-
construed and enforced in accordance with the laws of the State of Illinois
excluding conflict of laws principles that would cause the application of laws
of any other jurisdiction.
10.6 CONSENT TO JURISDICTION AND VENUE. All judicial proceedings
arising in or under or related to this Agreement, the Note or any of the other
Loan Documents may be brought in any state or federal court of competent
jurisdiction located in the State of Illinois. By execution and delivery of this
Agreement, each party hereto generally and unconditionally: (a) consents to
personal jurisdiction in Xxxx County, State of Illinois; (b) waives any
objection as to jurisdiction or venue in the aforesaid courts; and (d)
irrevocably agrees to be bound by any judgment rendered thereby in connection
with this Agreement, the Note and the other Loan Documents. Service of process
on any party hereto in any action arising out of or relating to this Agreement
shall be effective if given in accordance with the requirements for notice set
forth in Section 10.8 below and shall be deemed effective and received as set
forth in Section 10.8 below. Nothing herein shall affect the right to serve
process in any other manner permitted by law or shall limit the right of either
party to bring proceedings in the courts of any other jurisdiction.
10.7 Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
such law, such provision shall be ineffective only to the extent and duration of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.
10.8 Any notice required or given hereunder shall be deemed
properly given upon the earlier of: (i) the first business day after
transmission by facsimile or hand delivery or deposit with an overnight express
service or overnight mail delivery service; or (ii) or three (3) days after
mailed, postage prepaid, in each case, addressed to the designated recipient at
its address set forth herein or such other address as such party may advise the
other party by notice given in accordance with this provision.
10.9 Lender and Borrower acknowledge that there are no agreements
or understandings, written or oral, between Lender and Borrower with respect to
the Loan, other than as set forth herein, in the Note and the other Loan
Documents and that this Agreement, the Note and the other Loan Documents contain
the entire agreement between Lender and Borrower with respect thereto. None of
the terms of this Agreement, the Note and the other Loan Documents may be
amended except by an instrument executed by each of the parties hereto.
10.10 No omission, or delay, by Lender at any time to enforce any
right or remedy reserved to it, or to require performance of any of the terms,
covenants or provisions hereof by Borrower at any time designated, shall be a
waiver of any such right or remedy to which Lender is entitled, nor shall it in
any way affect the right of Lender to enforce such provisions thereafter.
10.11 All agreements, representations and warranties contained in
this Agreement or the Note, or in any Loan Documents delivered pursuant hereto
or in connection herewith shall be for the benefit of Lender and any Assignee
and shall survive the execution and delivery of this Agreement or the Note and
the expiration or other termination of this Agreement or the Note.
10.12 This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all such counterparts together
shall constitute but one and the same instrument.
Loan and Security Agr. -11-
10.13 This Agreement shall be binding upon, and shall inure to the
benefit of, Borrower and its permitted assigns (if any). Borrower shall not
assign its obligations under this Agreement, the Note or any of the other Loan
Documents without Lender's express written consent and any such attempted
assignment shall be void and of no effect. Any assignment by Borrower in
connection with a "Merger" (as defined below) shall be subject to Lender's prior
consent. Any consent granted by Lender shall be conditioned upon such surviving
entity or transferee assuming Borrower's Secured Obligations hereunder pursuant
to assignment documents reasonably acceptable to Lender. If Lender reasonably
withholds its consent to such assignment in connection with a Merger, the
outstanding principal and accrued and unpaid interest shall be prepaid in whole
without a prepayment premium.
For purposes of this Agreement, a "Merger" shall mean any consolidation
or merger of the Borrower with or into any other corporation or entity, any sale
or conveyance of an or substantially all of the assets or stock of the Borrower
by or to any other person or entity in which Borrower is not the surviving
entity.
IN WITNESS WHEREOF, the Borrower and the Lender have duly executed and
delivered this Agreement as of the day and year first above written.
BORROWER: CYTOKINETICS, INCORPORATED.
By: /s/ XXXXX XXXXX
---------------------
Title:
Date: _________________
ACCEPTED IN ROSEMONT, ILLINOIS:
LENDER: COMDISCO, INC.
By: /s/ XXXX X. XXXXXX
--------------------
Title: XXXX X. XXXXXX SENIOR VICE
PRESIDENT
Date: DEC 23 1999
Loan and Security Agr. -12-
EXHIBIT A-1
SECURED PROMISSORY NOTE
Date: ____________
$______
Due: _____________
FOR VALUE RECEIVED, Cytokinetics, Inc., Inc. a Delaware corporation (the
"Borrower") hereby promises to pay to the order of Comdisco, Inc., a Delaware
corporation (the "Lender") at X.X. Xxx 00000, Xxxxxxx, XX 00000 or such other
place of payment as the holder of this Secured Promissory Note (this "Note") may
specify from time to time in writing, in lawful money of the United States of
America, the principal amount of ____________________________and 00/100 Dollars
($______________) together with interest at eight and one quarter percent
(8.25%) per annum from the date of this Note to maturity of each installment on
the principal hereof remaining from time to time unpaid, such principal and
interest to be paid 48 equal monthly installments of $___________each,
commencing__________________and on the same day of each month thereafter to and
including_____________ and an additional installment in the amount of $____(15%)
("Balloon Payment")* to be paid on___________________, such installments to be
applied first to accrued and unpaid interest and the balance to unpaid
principal. Interest shall be computed on the basis of a year consisting of
twelve months of thirty days each.
This Note is the Note referred to in, and is executed and delivered in
connection with, that certain Loan and Security Agreement of even date herewith
by and between Borrower and Lender (as the same may from time to time be
amended, modified or supplemented in accordance with its terms, the "Loan
Agreement"), and is entitled to the benefit and security of the Loan Agreement
and the other Loan Documents (as defined in the Loan Agreement), to which
reference is made for a statement of all of the terms and conditions thereof.
All terms defined in the Loan Agreement shall have the same definitions when
used herein, unless otherwise defined herein. Attached hereto as Exhibit B is a
list of Collateral which is being financed with the proceeds of the Loan
evidenced by this Note, which Collateral shall be deemed to be listed on Exhibit
B to the Loan Agreement.
The Borrower waives presentment and demand for payment, notice of dishonor,
protest and notice of protest and any other notice as permitted under the UCC or
any applicable law.
This Note has been negotiated and delivered to Lender and is payable in the
State of Illinois, and shall not become effective until accepted by Lender in
the State of Illinois. This Note shall be governed by and construed and enforced
in accordance with, the laws of the State of Illinois, excluding any conflicts
of law rules or principles that would cause the application of the laws of any
other jurisdiction.
BORROWER: CYTOKINETICS, INC.
000 Xxxx Xxxxx Xxx
Xxxxx Xxx Xxxxxxxxx, XX 00000
Signature: _________________________
Print Name: ________________________
Title: ______________________________
* Borrower may request Lender to finance the Balloon Payment over 12 months at
8%. In that case a new promissory note will be prepared.
-1-
EXHIBIT A-2
SECURED PROMISSORY NOTE
Date: ____________
$______
Due: _____________
FOR VALUE RECEIVED, Cytokinetics, Inc., Inc. a Delaware corporation (the
"Borrower") hereby promises to pay to the order of Comdisco, Inc., a Delaware
corporation (the "Lender") at X.X. Xxx 00000, Xxxxxxx, XX 00000 or such other
place of payment as the holder of this Secured Promissory Note (this "Note") may
specify from time to time in writing, in lawful money of the United States of
America, the principal amount of ____________________________and 00/100 Dollars
($ _______) together with interest at eight and one quarter percent (8.25%) per
annum from the date of this Note to maturity of each installment on the
principal hereof remaining from time to time unpaid, such principal and interest
to be paid 36 equal monthly installments of $__________each,
commencing__________________and on the same day of each month thereafter to and
including____________ and an additional installment in the amount of $____(15%)
("Balloon Payment")* to be paid on _______, such installments to be applied
first to accrued and unpaid interest and the balance to unpaid principal.
Interest shall be computed on the basis of a year consisting of twelve months of
thirty days each.
This Note is the Note referred to in, and is executed and delivered in
connection with, that certain Loan and Security Agreement of even date herewith
by and between Borrower and Lender (as the same may from time to time be
amended, modified or supplemented in accordance with its terms, the "Loan
Agreement"), and is entitled to the benefit and security of the Loan Agreement
and the other Loan Documents (as defined in the Loan Agreement), to which
reference is made for a statement of all of the terms and conditions thereof.
All terms defined in the Loan Agreement shall have the same definitions when
used herein, unless otherwise defined herein. Attached hereto as Exhibit B is a
list of Collateral which is being financed with the proceeds of the Loan
evidenced by this Note, which Collateral shall be deemed to be listed on Exhibit
B to the Loan Agreement.
The Borrower waives presentment and demand for payment, notice of dishonor,
protest and notice of protest and any other notice as permitted under the UCC or
any applicable law.
This Note has been negotiated and delivered to Lender and is payable in the
State of Illinois, and shall not become effective until accepted by Lender in
the State of Illinois. This Note shall be governed by and construed and enforced
in accordance with, the laws of the State of Illinois, excluding any conflicts
of law rules or principles that would cause the application of the laws of any
other jurisdiction.
BORROWER: CYTOKINETICS, INC.
000 Xxxx Xxxxx Xxx
Xxxxx Xxx Xxxxxxxxx, XX 00000
Signature: _________________________
Print Name: ________________________
Title: _____________________________
* Borrower may request Lender to finance the Balloon Payment over 12 months at
8%. In that case a new promissory note will be prepared.
-1-
