Exhibit 10.2

SECURED PROMISSORY NOTE

 

$4,000,000    January 23, 2012

FOR VALUE RECEIVED, LIGAND PHARMACEUTICALS INCORPORATED, a Delaware corporation,
and each of the other Persons signing below as a Borrower (individually, a
“Borrower” and, collectively, the “Borrowers”) jointly and severally PROMISE TO
PAY to the order of OXFORD FINANCE LLC (“Lender”) the principal amount of FOUR
MILLION DOLLARS ($4,000,000) or such lesser amount as shall equal the
outstanding principal balance of the Term B Loan made to Borrowers by Lender,
plus interest on the aggregate unpaid principal amount of Term B Loan, at the
rates and in accordance with the terms of the Loan and Security Agreement dated
as of January 24, 2011 by and among Borrowers, Oxford Finance LLC, as Collateral
Agent and as a Lender, and Lenders from time to time party thereto (as amended,
restated, supplemented or otherwise modified from time to time, the “Loan
Agreement”). If not sooner paid, the entire principal amount and all accrued and
unpaid interest hereunder shall be due and payable on the Maturity Date as set
forth in the Loan Agreement. Any capitalized term not otherwise defined herein
shall have the meaning attributed to such term in the Loan Agreement.

Borrowers agree to pay any initial partial monthly interest payment from the
date the Term B Loan is made to Borrowers under this Secured Promissory Note
(this “Note”) to the first Payment Date (“Interim Interest”) on the first
Payment Date.

Principal, interest and all other amounts due with respect to the Term B Loan,
are payable in lawful money of the United States of America to Lender as set
forth in the Loan Agreement and this Note. The principal amount of this Note and
the interest rate applicable thereto, and all payments made with respect
thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed
on the grid attached hereto which is part of this Note.

The Loan Agreement, among other things, (a) provides for the making of a secured
Term Loan by Lender to Borrowers, and (b) contains provisions for acceleration
of the maturity hereof upon the happening of certain stated events.

This Note may not be prepaid except as set forth in Section 2.2 (c) and
Section 2.2(d) of the Loan Agreement.

This Note and the obligation of Borrowers to repay the unpaid principal amount
of the Term B Loan, interest on the Term B Loan and all other amounts due Lender
under the Loan Agreement is secured under the Loan Agreement.

Presentment for payment, demand, notice of protest and all other demands and
notices of any kind in connection with the execution, delivery, performance and
enforcement of this Note are hereby waived.

Borrowers shall pay all reasonable fees and expenses, including, without
limitation, reasonable attorneys’ fees and costs, incurred by Lender in the
enforcement or attempt to enforce any of a Borrower’s obligations hereunder not
performed when due.

This Note shall be governed by, and construed and interpreted in accordance
with, the internal laws of the State of California.

The ownership of an interest in this Note shall be registered on a record of
ownership maintained by Lender or its agent. Notwithstanding anything else in
this Note to the contrary, the right to the principal of, and stated interest
on, this Note may be transferred only if the transfer is registered on such
record of ownership and the transferee is identified as the owner of an interest
in the obligation. Borrowers shall be entitled to treat the registered holder of
this Note (as recorded on such record of ownership) as the owner in fact thereof
for all purposes and shall not be bound to recognize any equitable or other
claim to or interest in this Note on the part of any other person or entity.
Unless and until Lender notifies Borrowers in writing that such a registered
transfer has occurred and that it is so recorded on the record of ownership,
Borrowers shall be entitled to act as if there has been no such transfer and no
such recordation on the record of ownership.

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IN WITNESS WHEREOF, Borrowers have caused this Note to be duly executed by one
of its officers thereunto duly authorized on the date hereof.

 

LIGAND PHARMACEUTICALS INCORPORATED     CYDEX PHARMACEUTICALS, INC. By  
/s/    John P. Sharp     By   /s/    John P. Sharp Name:   John P. Sharp    
Name:   John P. Sharp Title:   Vice President, Finance and Chief Financial
Officer     Title:   Vice President and Chief Financial Officer         SERAGEN,
INC.     By   /s/    John P. Sharp       Name:   John P. Sharp       Title:  
Vice President and Chief Financial Officer               METABASIS THERAPEUTICS,
INC.       By   /s/    John P. Sharp       Name:   John P. Sharp       Title:  
Vice President and Chief Financial Officer               PHARMACOPEIA, LLC      
By:  Ligand Pharmaceuticals Incorporated,       Its Sole and Managing Member    
                  By   /s/    John P. Sharp               Name:   John P. Sharp
              Title:   Vice President, Finance and Chief Financial Officer      
        NEUROGEN CORPORATION       By   /s/    John P. Sharp       Name:   John
P. Sharp       Title:   Vice President and Chief Financial Officer              
ALLERGAN LIGAND RETINOID THERAPEUTICS, INC.       By   /s/    John P. Sharp    
  Name:   John P. Sharp       Title:   Chief Financial Officer              
LIGAND JVR, INC.       By   /s/    John P. Sharp       Name:   John P. Sharp    
  Title:   Chief Financial Officer      

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LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL

 

Date

 

Principal

Amount

 

Interest Rate

   Scheduled
Payment Amount    Notation By

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Amortization Table

(Term B Loan; Note 1)

Attached.

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Oxford Finance LLC

Amortization Table

Ligand AA02a

 

Start Date:

     1/23/2012        Disclaimer:

Interest Rate:

     8.9012 %      THIS IS A STANDARD AMORTIZATION

Term:

     30        12IO + 18PI      SCHEDULE. IT IS NOT INTENDED TO BE

Payment:

   $ 238,209.54        USED FOR PAYOFF PURPOSES.

Final Payment:

   $ 240,000.00        6.00 %   

Amount:

     4,000,000.00       

 

PMT    Payment      Beginning      Monthly                    Ending  

No.

   Date      Balance      Payment      Interest      Principal      Balance     
  2/1/12         Interim Interest Due - Billed Seperately       $ 4,000,000.00
  

1

     3/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

2

     4/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

3

     5/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

4

     6/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

5

     7/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

6

     8/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

7

     9/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

8

     10/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

9

     11/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

10

     12/1/12       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

11

     1/1/13       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

12

     2/1/13       $ 4,000,000.00       $ 29,670.67       $ 29,670.67       $
0.00       $ 4,000,000.00   

13

     3/1/13       $ 4,000,000.00       $ 238,209.54       $ 29,670.67       $
208,538.87       $ 3,791,461.13   

14

     4/1/13       $ 3,791,461.13       $ 238,209.54       $ 28,123.79       $
210,085.75       $ 3,581,375.38   

15

     5/1/13       $ 3,581,375.38       $ 238,209.54       $ 26,565.45       $
211,644.09       $ 3,369,731.29   

16

     6/1/13       $ 3,369,731.29       $ 238,209.54       $ 24,995.54       $
213,214.00       $ 3,156,517.29   

17

     7/1/13       $ 3,156,517.29       $ 238,209.54       $ 23,413.99       $
214,795.55       $ 2,941,721.74   

18

     8/1/13       $ 2,941,721.74       $ 238,209.54       $ 21,820.71       $
216,388.83       $ 2,725,332.91   

19

     9/1/13       $ 2,725,332.91       $ 238,209.54       $ 20,215.61       $
217,993.93       $ 2,507,338.98   

20

     10/1/13       $ 2,507,338.98       $ 238,209.54       $ 18,598.60       $
219,610.94       $ 2,287,728.05   

21

     11/1/13       $ 2,287,728.05       $ 238,209.54       $ 16,969.60       $
221,239.94       $ 2,066,488.11   

22

     12/1/13       $ 2,066,488.11       $ 238,209.54       $ 15,328.52       $
222,881.02       $ 1,843,607.09   

23

     1/1/14       $ 1,843,607.09       $ 238,209.54       $ 13,675.26       $
224,534.28       $ 1,619,072.81   

24

     2/1/14       $ 1,619,072.81       $ 238,209.54       $ 12,009.74       $
226,199.80       $ 1,392,873.01   

25

     3/1/14       $ 1,392,873.01       $ 238,209.54       $ 10,331.87       $
227,877.67       $ 1,164,995.34   

26

     4/1/14       $ 1,164,995.34       $ 238,209.54       $ 8,641.55       $
229,567.99       $ 935,427.35   

27

     5/1/14       $ 935,427.35       $ 238,209.54       $ 6,938.69       $
231,270.85       $ 704,156.49   

28

     6/1/14       $ 704,156.49       $ 238,209.54       $ 5,223.20       $
232,986.34       $ 471,170.15   

29

     7/1/14       $ 471,170.15       $ 238,209.54       $ 3,494.98       $
234,714.56       $ 236,455.59   

30

     8/1/14       $ 236,455.59       $ 238,209.54       $ 1,753.95       $
236,455.59       $ 0.00         8/1/14         Final Payment       $ 240,000.00
      $ 240,000.00       $ 0.00               

 

 

    

 

 

    

 

 

             Totals       $ 4,883,819.74       $ 883,819.74       $ 4,000,000.00