Exhibit 10.1

 

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is
entered into as of May 7, 2008, by and among EPICEPT CORPORATION, a Delaware
corporation (“EpiCept”), MAXIM PHARMACEUTICALS INC., a Delaware corporation
(“Maxim”; EpiCept and Maxim are sometimes referred to individually as a
“Borrower” and collectively as the “Borrowers”) and HERCULES TECHNOLOGY GROWTH
CAPITAL, INC., a Maryland corporation (“Lender”).

 

RECITALS

 

A.      Borrowers and Lender are parties to that certain Loan and Security
Agreement, dated as of August 30, 2006 (the “Agreement”). Unless otherwise
defined herein, capitalized terms in this Amendment shall have the meanings
assigned in the Agreement.

 

B.         The parties desire to confirm the amount outstanding under the
Agreement and certain other matters, as set forth in this Amendment.

 

NOW, THEREFORE, the parties agree as follows:

 

1.         As of May 7, 2008, the outstanding principal balance under the
Agreement is $5,702,981. Borrowers represents that, as of the date hereof, (a)
EpiCept maintains two deposit accounts with Wachovia Bank, National Association,
as follows: Account Number 2000002596060, with a balance of $165,445.26, and
Account Number 2000013005634, with a balance of $1,601,558.50, and one
securities account with Bear Stearns Securities Corp., Account Number 22012035,
with a balance of $91,071.79, and (b) neither Borrower owns, maintains, or has
any interest in any other deposit, securities, investment, or other account, or
any other investment property or cash.

2.         Borrowers and Lender confirm that the Collateral consists of all of
the personal property of each Borrower, including without limitation all
accounts, equipment, inventory, general intangibles (including intellectual
property), deposit accounts, and investment property, in each case now existing
or hereafter arising, and all proceeds thereof. Borrowers represent that neither
Borrower owns any Patents, registered Trademarks, or registered Copyrights
except as set forth on Exhibit D of the Agreement.

3.         Lender acknowledges that no Event of Default has occurred as of the
date hereof. Provided Borrowers comply with the provisions of this Amendment,
Lender forbears from enforcing any right it may have to exercise any remedies
arising out of any Event of Default that may have occurred before the date of
this Amendment.

4.         By May 19, 2008, EpiCept shall deliver to Lender an accepted term
sheet or commitment letter for any transaction on terms reasonably acceptable to
Lender, providing in any case for gross proceeds of at least $10,000,000.
Borrowers shall receive at least $5,000,000 in proceeds from such transaction
not later than June 15, 2008 and shall have received the remainder by July 31,
2008.

5.         Borrower shall pay Lender an amendment fee of $50,000, one half of
which shall be due on the date of this Amendment, and one half of which shall be
due on the earlier to occur of (i) June 15, 2008 or (ii) the day that all
amounts outstanding under the Agreement become due and payable or are paid.

6.         Except as disclosed in the schedule attached to this Amendment, all
representations and warranties set forth in the Agreement are true and correct
as of the date hereof.

7.         In connection with this Amendment, Borrower shall deliver to Lender
an Amendment to Warrant and Amendment to Account Control Agreement in
substantially the form attached to this Amendment.

8.         Except as amended hereby, the Agreement shall be and remain in full
force and effect. 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.

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

 

MAXIM PHARMACEUTICALS, INC.

 

 

By: _________________________________

 

Name:_______________________________

 

Title: _______________________________

 

 

 

 

EPICEPT CORPORATION

 

By: _________________________________

 

Name:_______________________________

 

Title: _______________________________

 

 

 

 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

 

 

By: _________________________________

 

Name:_______________________________

 

Title: _______________________________