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OMNIBUS JOINDER AND AMENDMENT NO. 5 TO CREDIT AND SECURITY AGREEMENT AND AMENDMENT NO. 1 TO PLEDGE AGREEMENT
This OMNIBUS JOINDER AND AMENDMENT NO. 5 TO CREDIT AND SECURITY AGREEMENT AND AMENDMENT NO. 1 TO PLEDGE AGREEMENT (this
Agreement ) is made as of this 29th day of December, 2020, by and among MANNKIND CORPORATION, a Delaware corporation ( MannKind ), MANNKIND LLC, a Delaware limited liability company
( MannKind LLC and together with MannKind, each, individually, an Original Borrower , and collectively the Original Borrowers ), QRUMPHARMA, INC., a Delaware corporation
( New Borrower , and New Borrower, together with the Original Borrowers, the Borrowers ), MIDCAP FINANCIAL TRUST, as Agent (in such capacity, together with its successors and assigns,
Agent ) and the financial institutions or other entities from time to time parties to the Credit Agreement referenced below, each as a Lender.
Lenders and Original Borrowers have entered into that certain Credit and Security Agreement, dated as of August 6, 2019 (as amended by that certain Amendment No. 1 to Credit and Security Agreement, dated as of December 18, 2019, that
certain Amendment No. 2 to Credit and Security Agreement, dated as of August 21, 2020, that certain Amendment No. 3 to Credit and Security Agreement, dated as of November 30, 2020, that certain Amendment No. 4 to Credit and
Security Agreement, dated as of December 7, 2020 and as further amended, supplemented or otherwise modified from time to time prior to the date hereof, the Existing Credit Agreement and, as the same is amended hereby and as
it may be further amended, modified, supplemented and restated from time to time, the Credit Agreement ), pursuant to which the Lenders have agreed to make certain advances of money and to extend certain financial accommodations to
the Original Borrowers in the amounts and manner set forth in the Credit Agreement.
B. Original Borrowers and Agent have entered into that
certain Pledge Agreement, dated as of August 6, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the Original Pledge Agreement ; the Original Pledge Agreement, as
amended hereby, the Pledge Agreement ), pursuant to which the Pledgors (as defined therein) have granted to Agent a security interest in certain equity interests set forth therein to secure the Obligations under the Credit
C. Original Borrowers have acquired New Borrower as a new Subsidiary of MannKind.
D. Borrowers have requested, and Agent and Lenders have agreed, on and subject to the terms and conditions set forth in this Agreement, the
Credit Agreement and the other Financing Documents, to among other things (a) join New Borrower to the Credit Agreement, the Pledge Agreement and the other applicable Financing Documents, and (b) amend certain other provisions of the
Existing Credit Agreement in relation to the foregoing.
NOW, THEREFORE, in consideration of the foregoing, the terms and conditions set forth in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Agent, Lenders and Borrower hereby agree as follows:
Recitals. This Agreement shall constitute a Financing Document and the Recitals and each reference to the Credit Agreement, unless otherwise expressly noted, will be deemed to reference the Credit Agreement as amended hereby. The
Recitals set forth above shall be construed as part of this Agreement as if set forth fully in the body of this Agreement and capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement
(including those capitalized terms used in the Recitals hereto).
2. Joinder. Subject to the satisfaction of the conditions precedent set forth
(a) New Borrower hereby assumes the Obligations under the Credit Agreement and joins in, adopts
and becomes (i) a Borrower under the Credit Agreement, (ii) a Pledgor (as defined in the Pledge Agreement) under the Pledge Agreement, (iii) an Issuer (as defined in the Pledge Agreement) under the Pledge Agreement, and
(iv) party to the other Financing Documents applicable to it as a Borrower and a Pledgor. Each party hereto agrees that all references to Borrower or Borrowers contained in the Financing Documents (or a
Pledgor or Pledgors in the Pledge Agreement) are hereby deemed for all purposes to also refer to and include New Borrower as a Borrower (and, in the Pledge Agreement, as a Pledgor), and New Borrower hereby agrees to comply
with all of the terms and conditions of the Financing Documents as if such New Borrower was an original signatory thereto.
Australia hereby joins in, adopts and becomes an Issuer under the Pledge Agreement.
(c) Without limiting the generality of the provisions
of subparagraph (a) or (b) above, each party agrees that the Pledged Collateral (as defined in the Pledge Agreement) owned by New Borrower and listed in Exhibit B shall be and become a part of the Pledged Collateral referred
to in Pledge Agreement and shall secure all Obligations referred to and in accordance with said Pledge Agreement.
Existing Credit Agreement. Subject to the terms and conditions of this Agreement, including, without limitation, the conditions to effectiveness set forth in Section 8 below, the Existing Credit Agreement is hereby
(a) The definition of Qrum in Section 15 of the Existing Credit Agreement is hereby amended and
restated as follows:
Qrum means QrumPharma, Inc., a Delaware corporation.
4. Amendment to Pledge Agreement. Each Borrower, including New Borrower, hereby agrees that the schedules attached hereto
as Exhibit B are true and correct as of the date hereof and reflect the joinder of New Borrower as a Pledgor and as an Issuer under the Pledge Agreement and the joinder of Qrum Australia as an Issuer under the Pledge Agreement and shall be
deemed to be added to the corresponding schedules of the same number in the Pledge Agreement and shall be deemed attached thereto and become a part thereof.
5. Grant of Security Interest. Consistent with the intent of the parties and in consideration of the accommodations set forth
herein, as further security for the prompt payment in full of all Obligations, and without limiting any other grant of a Lien and security interest in a Security Document, New Borrower hereby collaterally assigns and grants to Agent, for the benefit
of itself and Lenders, and subject only to Permitted Liens, a continuing first priority Lien on and security interest in, upon, and to all of New Borrower s right, title and interest in and to all property and assets of New Borrower that
constitute Collateral, described in Article 4 and Exhibit A of the Credit Agreement.
New Borrower hereby authorizes Agent to file UCC-1 financing statements against New Borrower covering the Collateral owned by New Borrower in such jurisdictions as Agent shall deem necessary, prudent or desirable to perfect and protect the liens and security
interests granted to Agent hereunder.
6. Representations and Warranties; Reaffirmation of Security Interest.
Each Borrower hereby (a) confirms that all of the representations and warranties set forth in the Credit Agreement are true and correct in all material respects (without duplication of any materiality qualifier in the text of such
representation or warranty) with respect to such Borrower as of the date hereof except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty shall be true and correct as of
such earlier date, and (b) covenants to perform its respective obligations under the Credit Agreement. Each Borrower confirms and agrees that all security interests and Liens granted to Agent continue in full force and effect, and all
Collateral remains free and clear of any Liens, other than Permitted Liens. Nothing herein is intended to impair or limit the validity, priority or extent of Agent s security interests in and Liens on the Collateral. Each Borrower acknowledges
and agrees that the Credit Agreement, the other Financing Documents and this Agreement constitute the legal, valid and binding obligation of such Borrower, and are enforceable against such Borrower in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency or other similar laws relating to the enforcement of creditors rights generally and by general equitable principles.
7. Costs and Fees. Borrowers shall be responsible for the payment of all reasonable and documented out-of-pocket costs and fees of Agent s counsel incurred in connection with the preparation of this Agreement and any related documents.
8. Conditions to Effectiveness. This Agreement shall become effective as of the date on which each of the following
conditions has been satisfied, as determined by Agent in its sole discretion:
(a) Agent shall have received (including by way of facsimile
or other electronic transmission) a duly authorized, executed and delivered counterpart of the signature page to this Amendment from each Borrower, Agent and the Lenders;
(b) Agent shall have received an Intellectual Property Security Agreement executed by New Borrower;
(c) Agent shall have received a certificate from an officer (or another authorized person) of New Borrower certifying as to (i) the names
and signatures of each officer or authorized signatories of the New Borrower authorized to execute and deliver this Agreement and all documents executed in connection therewith, (ii) the Organizational Documents (as defined in the Credit
Agreement) of New Borrower attached to such certificate are complete and correct copies of such Organizational Documents as in effect on the date of such certification, (iii) the resolutions of New Borrower s board of directors or other
appropriate governing body approving and authorizing the execution, delivery and performance of this Agreement and the other documents executed in connection therewith, and (iv) certificates attesting to the good standing of New Borrower in
each applicable jurisdiction, together with, if applicable, related tax certificates;
(d) Agent shall have received reasonably
satisfactory results in respect of searches run against the Borrowers, including the New Borrower, in accordance with Section 3.5 of the Credit Agreement, as Agent may determine reasonably necessary;
(e) Agent shall have received a duly executed legal opinion of New Borrower s counsel, addressed to Agent and Lenders, addressing matters
Agent may reasonably request;
(f) Agent shall have received a Perfection Certificate executed by New Borrower;
(g) Agent shall have received fully executed Control Agreements for the Deposit Accounts of the New Borrower, as and to the extent required by
Section 6.6 of the Credit Agreement;
(h) all representations and warranties of Borrower contained herein shall be true and
correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) as of the date hereof except to the extent that any such representation or warranty relates to a specific date in
which case such representation or warranty shall be true and correct as of such earlier date (and such parties delivery of their respective signatures hereto shall be deemed to be its certification thereof);
(i) prior to and after giving effect to the agreements set forth herein, no Default or Event of Default shall exist under any of the Financing
(j) Agent shall have received such other documents, information, certificates, and information as Agent may reasonably
request in connection with this Agreement.
9. Post-Closing Requirements. Credit Parties hereby covenant and agree that:
(a) By the date that is thirty (30) days following the date hereof (or such later date as Agent may agree in its sole discretion in
writing), New Borrower shall provide Agent with insurance certificates and endorsements, naming Agent as additional insured, assignee or lender loss payee, as applicable, as required by Section 6.5 of the Credit Agreement;
(b) By the date that is thirty (30) days following the date hereof (or such later date as Agent may agree in its sole discretion in
writing), Credit Parties shall deliver to Agent the original stock certificates of New Borrower, together with accompanying undated stock powers executed by the applicable Pledgor;
(c) Each Borrower hereby agrees that failure to comply with the requirements set forth in Section 9 of this Agreement
shall constitute an immediate and automatic Event of Default.
10. Release. In consideration of the agreements of Agent and
Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower, voluntarily, knowingly, unconditionally and irrevocably, with specific and express intent, for and on
behalf of itself and all of its respective parents, subsidiaries, affiliates, members, managers, predecessors, successors, and assigns, and each of its respective current and former directors, officers, shareholders, agents, and employees, and each
of its respective predecessors, successors, heirs, and assigns (individually and collectively, the Releasing Parties ) does hereby fully and completely release, acquit and forever discharge each of Agent, Lenders, and each their
respective parents, subsidiaries, affiliates, members, managers, shareholders, directors, officers and employees, and each of their respective predecessors, successors, heirs, and assigns (individually and collectively, the Released
Parties ), of and from any and all actions, causes of action, suits, debts, disputes, damages, claims, obligations, liabilities, costs, expenses and demands of any kind whatsoever, at law or in equity, whether matured or unmatured,
liquidated or unliquidated, vested or contingent, choate or inchoate, known or unknown that the Releasing Parties (or any of them) has against the Released Parties or any of them (whether directly or indirectly), based in whole or in part on facts,
whether or not now known, existing on or before the date hereof, that relate to, arise out of or otherwise are in connection with: (i) any or all of the Financing Documents or transactions contemplated thereby or any actions or omissions in
connection therewith or (ii) any aspect of the dealings or relationships between or among any Borrower, on the one hand, and any or all of the Released Parties, on the other hand, relating to any or all of the documents, transactions, actions
or omissions referenced in clause (i) hereof, in each case, based in whole or in part on facts, whether or not now known, existing before the First Amendment Effective Date. Borrower acknowledges that the foregoing release is a material
inducement to Agent s and each Lender s decision to enter into this Agreement and agree to the modifications contemplated hereunder, and has been relied upon by Agent and Lenders in connection therewith.
11. No Waiver or Novation. The execution, delivery and effectiveness of
this Agreement shall not, except as expressly provided in this Agreement, operate as a waiver of any right, power or remedy of Agent, nor constitute a waiver of any provision of the Credit Agreement, the Financing Documents or any other documents,
instruments and agreements executed or delivered in connection with any of the foregoing. Nothing herein is intended or shall be construed as a waiver of (a) any existing Defaults or Events of Default under the Credit Agreement or the other
Financing Documents or any of Agent s rights and remedies in respect of such Defaults or Events of Default. Except as expressly provided herein, nothing in this Agreement shall be construed as an amendment to or waiver of any condition
precedent to any funding of Credit Extensions by the Lenders under the Credit Agreement, including those conditions set forth in Section 3.2 of the Credit Agreement. This Agreement (together with any other document executed in connection