First Amendment to Loan and Security Agreement by and between Comerica Bank, Interpace Biosciences, Inc., Interpace Diagnostics Corporation, Interpace Diagnostics, LLC and Interpace Pharma Solutions, Inc., dated November 1, 2021

Contract Categories: Business Finance - Loan Agreements
EX-10.2 3 ex10-2.htm

 

Exhibit 10.2

 

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT AND CONSENT

 

This First Amendment to Loan and Security Agreement and Consent (“Amendment”) is entered into as of November 1, 2021 between Interpace Biosciences, Inc., a Delaware corporation (“Parent”), Interpace Diagnostics Corporation, a Delaware corporation (“Diagnostics Corporation”), Interpace Diagnostics, LLC, a Delaware limited liability company (“Diagnostics”) and Interpace Pharma Solutions, Inc., a Delaware corporation (“Pharma Solutions”, and together with Parent, Diagnostics Corporation, and Diagnostics, the “Borrowers” and each individually a “Borrower”) and Comerica Bank (“Bank”).

 

RECITALS

 

Borrowers and Bank are parties to that Loan and Security Agreement dated October 13, 2021, as it may be amended, restated or otherwise modified from time to time (“Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment. In addition, Borrowers have requested Bank’s consent to the incurrence of certain Indebtedness and the prepayment of Subordinated Debt.

 

NOW, THEREFORE, the parties agree as follows:

 

1. Consents.

 

(a) Section 7.4 of the Agreement prohibits (i) the incurrence of certain Indebtedness and (ii) the prepayment of Subordinated Debt, without the Bank’s prior written consent. Sections 7.9 and 8.7 of the Agreement prohibits any payment in respect of any Subordinated Debt, except in compliance with the terms of such Subordinated Debt and the terms of the subordination agreement relating to such Subordinated Debt, without the Bank’s prior written consent. Borrowers have informed Bank that Borrowers desire to (i) incur certain Indebtedness in an aggregate original principal amount equal to Eight Million Dollars ($8,000,000.00) (“BroadOak Transaction”) payable to BroadOak Fund V, L.P. (“Subordinated Creditor”), under that certain Loan and Security Agreement dated as of the date hereof by and among Subordinated Creditor and Borrowers, a copy of which is attached hereto as Exhibit A (“BroadOak Loan Agreement”) and (ii) payoff in its entirety the Subordinated Debt owing to Ampersand 2018 Limited Partnership, a Delaware limited partnership (“Ampersand”) and 1315 Capital II, L.P., a Delaware limited partnership (“1315”) (“Ampersand Payoff” and collectively with the BroadOak Transaction, the “Transactions”). Borrowers have requested that Bank consent to the Transactions.

 

(b) Bank hereby consents to the Transactions; provided that (i) on or before the consummation of the BroadOak Transaction, the Subordinated Creditor (1) executes and delivers to Bank a subordination and intercreditor agreement, in form and substance acceptable to Bank, and (2) within three (3) days after the consummation of the BroadOak Transaction, Borrower shall have delivered to Bank fully executed copies of the BroadOak Loan Agreement and all schedules and exhibits thereto and all related material documents, and (ii) within three (3) days after the Ampersand Payoff, Ampersand and 1315 deliver to Bank, in form and substance satisfactory to Bank, a UCC-3 termination related to any UCC financing statements filed in connection with any security interest in favor of Ampersand and 1315 and Borrowers (if any), and (iii) no default or Event of Default has occurred (and not been waived in writing by Bank) under any of the Loan Documents prior to the consummation of the Transactions or would result after giving effect thereto.

 

(c) Except as specifically set forth herein, the consents above shall not be deemed to amend or alter in any respect the terms and conditions of the Agreement or any of the other Loan Documents, or to constitute a waiver or release by Bank of any right, remedy, Collateral, default or Event of Default under the Agreement or any of the other Loan Documents, except to the extent specifically set forth herein. These consents shall not act as a consent to any other transaction, act or omission, whether related or unrelated thereto and shall not extend to or affect any obligation, covenant or agreement not expressly consented hereto. Furthermore, these consents shall not affect in any manner whatsoever any rights or remedies of Bank with respect to any other non-compliance by any Borrower with the Agreement or the other Loan Documents, whether in the nature of a default or Event of Default, and whether now in existence or subsequently arising, and shall not apply to any other transaction.

 

1

 

 

2. Amendments to Agreement.

 

(a) Clause (g) of the definition of “Permitted Liens” in Exhibit A to the Agreement is amended and restated in its entirety as follows:

 

“(g) A Lien in favor of BroadOak Fund V, L.P., that is expressly subordinate in priority to any and all liens, security interests and mortgages in favor of Bank pursuant to the terms of a subordination and intercreditor agreement executed and delivered unto, and acceptable to, Bank; and”

 

(b) Section 7.5 is hereby amended and restated in its entirety to read as follows:

 

“7.5 Encumbrances. Create, incur, assume or allow any Lien with respect to any of its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other Person (other than Broad Oak, pursuant to the BroadOak Loan Agreement; provided that the BroadOak Loan Agreement does not prohibit Liens in favor of Bank) that such Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of such Borrower’s property.”

 

(c) Section 7.6 is hereby amended to add the following sentence to the end thereof:

 

“Nothing in this Section 7.6 shall restrict or otherwise prohibit dividends or distributions from any Subsidiary to a Borrower.”

 

(d) New Section 8.11 is added to the Agreement to read in its entirety as follows:

 

“8.11 BroadOak Agreement. If there is a default or other failure to perform by any Borrower under that certain Loan and Security Agreement dated as of October 29, 2021 (as amended, amended and restated, or modified from time to time, the “BroadOak Loan Agreement”) by and among BroadOak Fund V, L.P. (together with its successors and assigns, “BroadOak”) and Borrowers resulting in a right by BroadOak, whether or not exercised, to accelerate the maturity of any Indebtedness.”

 

(e) The attached Schedule of Exceptions amends and restates the Schedule of Exceptions attached to the Agreement.

 

3. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of Bank.

 

4. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remains in full force and effect in accordance with its terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.

 

5. Each Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct in all material respects as of the date of this Amendment, and that no Event of Default has occurred and is continuing.

 

6. As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

(a) this Amendment, duly executed by each Borrower;

 

(b) all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any of any Borrower’s accounts; and

 

(c) such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

 

7. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

 

[Remainder of Page Intentionally Left Blank]

 

2

 

 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

 

  INTERPACE BIOSCIENCES, INC.
     
  By:  
     
  Name: Thomas W. Burnell
     
  Title: Chief Executive Officer
     
  INTERPACE DIAGNOSTICS CORPORATION
     
  By:  
     
  Name: Thomas W. Burnell
     
  Title: Chief Executive Officer
     
  INTERPACE DIAGNOSTICS, LLC
     
  By:  
     
  Name: Thomas W. Burnell
     
  Title: Chief Executive Officer
     
  INTERPACE PHARMA SOLUTIONS, INC.
     
  By:  
     
  Name: Thomas W. Burnell
     
  Title: Chief Executive Officer
     
  COMERICA BANK
     
  By:  
     
  Name: Shane Merkord
     
  Title: Vice President

 

[Signature Page to First to Loan and Security Agreement and Consent (18083894)]

 

 

 

 

EXHIBIT A

 

BROADOAK TRANSACTION

 

(see attached)

 

 

 

 

SCHEDULE OF EXCEPTIONS

TO LOAN AND SECURITY AGREEMENT

 

Permitted Indebtedness (Exhibit A)

 

Lender  Aggregate Principal Amount   Maturity Date  Secured/Unsecured
BroadOak Fund V, L.P.  $8,000,000.00   October 31, 2024  Secured

 

Permitted Investments (Exhibit A)

 

Borrower  Investment   Shares   Value   Shares Certificated? 
Interpace Biosciences, Inc.  Shares in Diamir Biosciences Corp.   42,280 shares of common stock   Approximately $248,000 at the time of the transaction   Yes. 

 

Permitted Liens (Exhibit A)

 

Holder of Lien/Encumbrance  Description of Property Encumbered  Borrower/Subsidiary
Thermo Fisher Financial Services, Inc.  T630 Server (A28563); AV (A39558); Oncomine Focus x 7 (A42008); 520 Chip x 4 (A27762); ION 510/520/530 KIT-CHEF x 4 (A24461); Superscript x 5 (11756050)  Interpace Biosciences, Inc.
Thermo Fisher Financial Services, Inc.  KF Apex 96 DW Head (5400930); KF Apex 96 Combi Head (24079920); SVC IQOQ KF Apex (A47012); Freight  Interpace Biosciences, Inc.
NFS Leasing, Inc.
 
People’s United Bank, N.A
  Equipment or Software as described in the Schedule 1 to Master Lease Agreement 2021-0280  Interpace Biosciences, Inc.
NFS Leasing, Inc.
 
People’s United Bank, N.A
  Equipment or Software as described in the Schedule 1 to Master Lease Agreement 2021-0280  Interpace Diagnostics Corporation

 

 

 

 

Dell Financial Services L.L.C.  Equipment or Software as described in Agreement Number 001 ###-###-####-002  Interpace Diagnostics Corporation
Dell Financial Services L.L.C.  Equipment or Software as described in Agreement Number 001 ###-###-####-001  Interpace Diagnostics Corporation
Thermo Fisher Financial Services Inc.  ION PGM DX INST System x 2 (A25511); PGM Trade In  Interpace Pharma Solutions, Inc.
NFS Leasing, Inc.
 
People’s United Bank, N.A
  Equipment or Software as described in the Schedule 1 to Master Lease Agreement 2021-0281  Interpace Pharma Solutions, Inc.

 

Security Interests (Section 4.1)

 

Holder of Lien/Encumbrance  Description of Property Encumbered  Borrower/Subsidiary
Thermo Fisher Financial Services, Inc.  T630 Server (A28563); AV (A39558); Oncomine Focus x 7 (A42008); 520 Chip x 4 (A27762); ION 510/520/530 KIT-CHEF x 4 (A24461); Superscript x 5 (11756050)  Interpace Biosciences, Inc.
Thermo Fisher Financial Services, Inc.  KF Apex 96 DW Head (5400930); KF Apex 96 Combi Head (24079920); SVC IQOQ KF Apex (A47012); Freight  Interpace Biosciences, Inc.
NFS Leasing, Inc.
 
People’s United Bank, N.A
  Equipment or Software as described in the Schedule 1 to Master Lease Agreement 2021-0280  Interpace Biosciences, Inc.
NFS Leasing, Inc.
 
People’s United Bank, N.A
  Equipment or Software as described in the Schedule 1 to Master Lease Agreement 2021-0280  Interpace Diagnostics Corporation
Dell Financial Services L.L.C.  Equipment or Software as described in Agreement Number 001 ###-###-####-002  Interpace Diagnostics Corporation
Dell Financial Services L.L.C.  Equipment or Software as described in Agreement Number 001 ###-###-####-001  Interpace Diagnostics Corporation
Thermo Fisher Financial Services Inc.  ION PGM DX INST System x 2 (A25511); PGM Trade In  Interpace Pharma Solutions, Inc.
NFS Leasing, Inc.
 
People’s United Bank, N.A
  Equipment or Software as described in the Schedule 1 to Master Lease Agreement 2021-0281  Interpace Pharma Solutions, Inc.

 

 

 

 

Collateral (Section 5.3)

 

Deposit or Securities Accounts

 

Institution Name   Account Number   Name of Account Owner
Silicon Valley Bank  

3302869016

 

3303131218

 

3302347153

 

3302544768

 

3302859599

 

3302544787

 

3302347168

 

6600003926

 

3302950600

 

3302870604

 

3302874674

  Interpace Biosciences, Inc.
PNC Bank   1012785997   Interpace Diagnostics Corporation
Pacific Western Bank  

0002002871

 

000109021

  Interpace Diagnostics Corporation

 

Intellectual Property Collateral (Section 5.4)

 

Patents:

 

Interpace Diagnostics, LLC:

 

Country   Serial No.   Filing Date   Patent No.   Issue Date   Expiration Date
MICRO RNAs DIFFERENTIALLY EXPRESSED IN PANCREATIC DISEASE AND USES THEREOF
US   60/826173   19-Sep-2006            
US (Abandoned)   11/857948   19-Sep-2007            
US (Abandoned)   15/917935   12-Mar-2018            
MIRNAS AS BIOMARKERS FOR DISTINGUISHING BENIGN FROM MALIGNANT THYROID NEOPLASMS
US   61/414778   17-Nov-2010            
US   13/299226   17-Nov-2011   10150999   11-Dec-2018   17-Nov-2031
US   16/188769   13-Nov-2018   11118231   14-Sep-2021   17-Nov-2031
US   17/400660   12-Aug-2021            
METHODS AND COMPOSITIONS INVOLVING MIR-135B FOR DISTINGUISHING PANCREATIC CANCER FROM BENIGN PANCREATIC DISEASE
US   61/534332   13-Sep-2011            
US   61/536486   19-Sep-2011            

 

 

 

 

US   13/615066   13-Sep-2012   9644241   09-May-2017   13-Sep-2032
US   15/491399   19-Apr-2017   10655184   19-May-2020   13-Sep-2032
US (Abandoned)   16/855469   22-Apr-2020            
MIRNAS AS DIAGNOSTIC BIOMARKERS TO DISTINGUISH BENIGN FROM MALIGNANT THYROID TUMORS
US   61/552451   27-Oct-2011            
US   61/552762   28-Oct-2011            
US (Abandoned)   13/662450   27-Oct-2012            
US (Abandoned)   15/873067   17-Jan-2018            
DIAGNOSTIC MIRNAS FOR DIFFERENTIAL DIAGNOSIS OF INCIDENTAL PANCREATIC CYSTIC LESIONS
US   61/709411   04-Oct-2012            
US   61/716396   19-Oct-2012            
US (Abandoned)   13/801737   13-Mar-2013            

US

(Abandoned)

  15/826909   30-Nov-2017          

 

US (Abandoned)   16/869405   07-May-2020            

 

Interpace Diagnostics Corporation:

 

Country   Serial No.   Filing Date   Patent No.   Issue Date   Expiration Date
METHODS FOR TREATING BARRETT’S METAPLASIA AND ESOPHAGEAL ADENOCARCINOMA
US   62/267619   15-Dec-2015            
US (Abandoned)   15/378370   14-Dec-2016            

TOPOGRAPHIC GENOTYPING FOR DETERMINING THE DIAGNOSIS, MALIGNANT POTENTIAL, AND BIOLOGIC BEHAVIOR OF PANCREATIC

 

CYSTS AND RELATED CONDITIONS

US   60/620926   22-Oct-2004            
US   60/631240   29-Nov-2004            
US   60/644568   19-Jan-2005            
US   60/679968   12-May-2005            
US   60/679969   12-May-2005            
US (Abandoned)   11/255978   24-Oct-2005            
US (Abandoned)   11/256150   24-Oct-2005            
US (Abandoned)   11/256152   24-Oct-2005            
US (Abandoned)   11/255980   24-Oct-2005            
US (Abandoned)   14/305727   16-Jun-2014            
US   15/912654   06-Mar-2018   11143657   12-Oct-2021   23-Jul-2036
US   17/498365   11-Oct-2021            
METHODS FOR TREATING BARRETT’S METAPLASIA AND ESOPHAGEAL ADENOCARCINOMA
US   61/565879   01-Dec-2011            
US   61/640527   30-Apr-2012            
US   61/661256   18-Jun-2012            
US   13/692727   03-Dec-2012   10255410   09-Apr-2019   23-Jan-2033
US   13/954247   30-Jul-2013   10131942   20-Nov-2018   19-Mar-2033
US (Abandoned)   16/166486   22-Oct-2018            
US   16/285604   26-Feb-2019            

 

 

 

 

METHODS FOR MEASURING CARCINOEMBRYONIC ANTIGEN
US   61/731725   30-Nov-2012            
US   61/824623   17-May-2013            
US   61/840963   28-Jun-2013            
US   14/092036   27-Nov-2013   9341628   17-May-2016   23-Mar-2034
US   15/147960   06-May-2016   10444239   15-Oct-2019   27-Nov-2033
US   16/558489   03-Sep-2019            
METHODS OF IDENTIFYING AND TREATING AGGRESSIVE THYROID TUMORS
US   62/573370   17-Oct-2017            
US   16/162883   17-Oct-2018            

 

Trademarks:

 

Interpace Diagnostics, LLC:

 

Word Mark   Serial No.   Filing Date   Registration No.   Registration Date
BARREGEN   86525982   05-Feb-2015   5142307   14-Feb-2017
BARAGEN (Abandoned)   86390390   10-Sep-2014        
BARREGEN ESOPHAGEAL CANCER RISK CLASSIFIER   86910938   17-Feb-2016   5210362   23-May-2017
BARREMIR (Abandoned)   87623146   26-Sep-2017        
INTERPACE DIAGNOSTICS (Abandoned)   86126455   22-Nov-2013        
INTERPACEDX (Abandoned)   86526999   06-Feb-2015        
INTERPACE DIAGNOSTICS   86130866   27-Nov-2013   4646544   25-Nov-2014
INTERPACE DIAGNOSTICS   86944287   17-Mar-2016   5072603   01-Nov-2016
INTERPACE BIOSCIENCES   88651133   11-Oct-2019   6092660   30-Jun-2020
INTERPACE PHARMA SOLUTIONS   88680696   05-Nov-2019   6092700   30-Jun-2020
INTERPACE BIOSCIENCES   90531881   17-Feb-2021        
[DESIGN ONLY]   86290079   23-May-2014   4882368   05-Jan-2016
[DESIGN ONLY]   86944266   17-Mar-2016   5067909   25-Oct-2016
MIRINFORM (Cancelled)   77447187   14-Apr-2008   3546361   16-Dec-2008
MIRINFORM   85067844   21-Jun-2010   4071426   13-Dec-2011
MIRINFORM   85067850   21-Jun-2010   4071427   13-Dec-2011
MANAGEMDX (Abandoned)   86434107   24-Oct-2014        
PANDNA   87178397   21-Sep-2016   5318439   24-Oct-2017
PANCRAGEN   86370325   19-Aug-2014   4796668   18-Aug-2015
PANCRAMIR (Abandoned)   86357914   05-Aug-2014        
POWER IN PERFORMANCE   86325980   01-Jul-2014   4729240   28-Apr-2015
RESPRIDX   87647404   16-Oct-2017   5504939   26-Jun-2018
THYMIRA (Abandoned)   86370332   19-Aug-2014        
THYGENX   86365003   13-Aug-2014   4729279   28-Apr-2015
THYRAMIR   86370328   19-Aug-2014   4882519   05-Jan-2016
THYGENEXT   87868479   09-Apr-2018   5651597   08-Jan-2019
WE OWN THE FUTURE   90539740   22-Feb-2021        

 

 

 

 

Interpace Diagnostics Corporation:

 

Word Mark   Serial No.   Filing Date   Registration No.   Registration Date
COVIANT   88906872   08-May-2020   6343361   04-May-2021
COVIANT DX   90086014   31-Jul-2020        
[DESIGN ONLY]   90452747   07-Jan-2021        
MARKERS THAT MATTER   90097773   06-Aug-2020   6407358   06-Jul-2021
PATHFINDERTG   78848127   28-Mar-2006   3208314   13-Feb-2007
SERACOV (Abandoned)   88906794   08-May-2020        
THYGRESSA   88532986   24-Jul-2019        

 

Interpace Biosciences, Inc.:

 

Word Mark   Serial No.   Filing Date   Registration No.   Registration Date
THYGRESSA   88532986   24-Jul-2019        

 

Prior Names (Section 5.5)

 

Borrower   Prior Name   Period of Use   Note whether legal name, fictitious name, d/b/a, trade name, etc.
Interpace Biosciences, Inc.   Interpace Diagnostics Group Inc.   12/22/15 – 11/12/19   Prior legal name
    PDI, Inc.   Prior to 12/22/15   Prior legal name
Interpace Pharma Solutions, Inc.   Interpace BioPharma, Inc.   06/28/19 – 11/12/19   Prior legal name

 

Inventory or Equipment Locations (Section 5.5)

 

Address   Borrower   Equipment/Inventory
2515 Liberty Avenue Pittsburgh, Pa 15222   Interpace Diagnostics Corporation   Lab equipment
2 Church Street Suite B-05 New Haven, Ct 06519   Interpace Diagnostics Lab, Inc.   Lab equipment
133 Southcenter Court, Suite 400, Morrisville, NC 27560   Interpace Pharma Solutions, Inc.   Lab equipment

 

Litigation (Section 5.6)

 

None.

 

Subsidiaries (Section 5.10)

 

Subsidiary   Jurisdiction   Shareholder(s)/Member(s)   Percentage of Equity Interests
Interpace Diagnostics, LLC   Delaware   Interpace Biosciences, Inc.   100%
Interpace Diagnostics Corporation   Delaware   Interpace Diagnostics, LLC   100%
Interpace Diagnostics Lab Inc.   Delaware   Interpace Diagnostics, LLC   100%
Interpace Pharma Solutions, Inc.   Delaware   Interpace Biosciences, Inc.   100%

 

Restricted Agreements (Section 5.12)

 

1. Loan and Security Agreement, dated as of October 29, 2021, among BroadOak Fund V, L.P. (“Lender”), Interpace Biosciences, Inc., Interpace Diagnostics Corporation, Interpace Diagnostics, LLC and Interpace Pharma Solutions, Inc. (as amended, modified, restated, replaced or supplemented from time to time).