Document:

exv10w1

Exhibit 10.1

VIA PHARMACEUTICALS, INC.

NOTE AND WARRANT PURCHASE AGREEMENT

     THIS NOTE AND WARRANT PURCHASE AGREEMENT (this “Agreement”) is made as of March 12, 2009 by
and among VIA Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the investors
listed on Schedule A hereto (each of which is herein referred to as an “Investor”).

     THE PARTIES HEREBY AGREE AS FOLLOWS:

SECTION 1

ISSUANCE OF NOTES AND WARRANTS

     1.1 Issuance of Notes. Subject to the terms and conditions of this Agreement, at the
Initial Closing (as defined below), the Company shall issue and sell to each Investor a promissory
note (each such note, a “Note” and collectively, the “Notes”) in the form of Exhibit A
attached hereto, in a principal amount (the “Principal Amount”) of up to the amount set forth
opposite such Investor’s name beneath the caption “Total Aggregate Principal Amount” on
Schedule A attached hereto. Each such Note shall be issued to such Investor against
payment by such Investor at the Initial Closing of the amount set forth opposite such Investor’s
name beneath the caption “Principal Amount of Initial Advance” on Schedule A attached
hereto. At each Subsequent Closing (as defined below), each Investor, to the extent such Investor
is participating in such Subsequent Closing, shall fund an additional advance to the Company under
such Investor’s Note and the grid attached as Schedule 1 to such Note shall be updated to reflect
such additional advance. Capitalized but otherwise undefined terms used herein shall have the
meanings provided therefor in the Notes.

     1.2 Issuance of Warrants. Subject to the terms and conditions of this Agreement, at
the Initial Closing, the Company shall issue to each Investor a warrant (each such warrant, the
"Warrant” and collectively, the “Warrants”), in the form attached hereto as Exhibit B,
representing the right, subject to the terms of the Warrant, to purchase in the aggregate up to the
number of shares Common Stock of the Company (as adjusted for stock splits, recapitalizations or
other similar events) set forth opposite such Investor’s name beneath the caption “No. of Warrant
Shares” on Schedule A attached hereto. Each Warrant shall, unless sooner terminated as
provided therein, have a term of five years from the date of the Initial Closing and shall be
exercisable (subject to the terms of the Warrant) at an exercise price (subject to adjustment as
set forth in the Warrant) equal to the Exercise Price.

     1.3 Exercise Price. For purposes of this Agreement, “Exercise Price” shall mean $0.12
per share.

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SECTION 2

CLOSINGS

     2.1 Initial Closing. The initial closing of the purchase and sale of the Notes and
the Warrants hereunder (the “Initial Closing”) shall be held at Morrison & Foerster LLP located at
425 Market Street, San Francisco, California 94105 on the date of this Agreement or at such other
place and date as is mutually agreeable to the Company and the Investors.

     2.2 Subsequent Closings. Subsequent to the Initial Closing, the Company may receive
additional advances from each Investor in accordance with the terms of each Note, up to a maximum
of the amount set forth opposite such Investor’s name beneath the caption “Total Aggregate
Principal Amount” (including the initial advance made at the Initial Closing). The closing of such
additional advances shall be held at Morrison & Foerster LLP located at 425 Market Street, San
Francisco, California 94105, on such date or at such other place as is mutually agreeable to the
Company and the Investors providing such additional advances (which each such date and place a
"Subsequent Closing” and, together with the Initial Closing, a “Closing”).

     2.3 Conditions to Initial Closing. The several obligations of the Investors to
purchase the Notes on the date of the Initial Closing shall be subject to the prior or concurrent
satisfaction of each of the conditions precedent set forth in this Section 2.3.

          (a) Security Agreements; Registration Rights Agreement. The Investors shall have
received, each executed and delivered by the Company and the Investors or any Collateral Agent on
their behalf (each, in form and substance satisfactory to the Investors): (i) a security agreement
(the “Security Agreement”) under which the Company grants to the Investors (or any Collateral Agent
on their behalf) a blanket security interest in its personal property; and (ii) a Collateral
Assignment of Patents (the “Patent Security Agreement”) under which the Company grants to the
Investors a security interest in all of the Company’s United States patents and applications for
United States patents. The Investors shall have received, executed and delivered by the Company
and all other required parties thereto, a registration rights agreement (in form and substance
satisfactory to the Investors) (the “Registration Rights Agreement”) under which the Company grants
to the Investors registration rights in respect of the Common Stock issuable upon exercise of the
Warrants.

          (b) Resolutions, etc. The Investors shall have received (i) a certificate, dated the
date of the Initial Closing, of an authorized signatory of the Company as of the date of the
Initial Closing certifying (A) copies of the resolutions and other actions taken or adopted by the
Company authorizing the execution, delivery and performance of the Transaction Documents (as
defined below) to which the Company is a party (and confirming that no resolutions or actions
contrary to such resolutions or actions have been taken), and (B) the Certificate of Incorporation
of the Company (which shall also be certified by the Secretary of State of the state in which the
Company is organized or formed) and Bylaws of the Company, (ii) a good standing certificate with
respect to the Company as of a date recently prior to the date of the Initial Closing from the
Secretary of the State of the state in which the Company is organized or formed, and (iii) evidence
of qualification of the Company to do business in each jurisdiction where the nature of

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its properties of the conduct of its business requires it to be so qualified to do business as
of a recent date and where the failure so to qualify could result in a Material Adverse Effect. As
used herein, the “Transaction Documents” means this Agreement, the Collateral Documents (as defined
below), the Notes, the Warrants, the Registration Rights Agreement and any other and all other
certificates, documents, agreements and instruments delivered to the Investors under or in
connection with this Agreement.  “Collateral Documents” means, collectively, the
Security Agreement, the Patent Security Agreement, and any other agreement pursuant to which the
Company or any other Person provides a Lien on its assets in favor of the Investors in connection
herewith, and all filings, documents and agreements made or delivered pursuant thereto.

          (c) Collateral Matters. The Company shall have delivered to the Investors (or any
Collateral Agent on their behalf) each of the following: (i) confirmation that all UCC-1 financing
statements and other filings necessary or appropriate in the reasonable opinion of the Investors to
perfect the security interests of the Investors (or any Collateral Agent on their behalf) in the
Collateral have been accepted for filing; (ii) such lien and judgment searches as the Investors
have reasonably requested, and such termination statements or other documents, as may be necessary
to confirm that the Collateral is subject to no other security interests in favor of any Persons
other than Permitted Liens; (iii) the certificates or instruments representing any pledged
Collateral, together with undated stock powers or endorsements, as the case may be, executed in
blank, with respect thereto; (iv) if as of the date of the Initial Closing any Collateral is
located on any premises in which any third party has an interest, such bailee agreement,
subordination agreement, landlord waiver agreement or collateral access agreement, as applicable,
duly executed by such third party, as the Investors shall reasonably request; (v) evidence that all
other actions necessary or appropriate in the reasonable opinion of the Investors to perfect and
protect the security interests in the Collateral have been taken, including such account control
agreements in favor of the Investors (or any Collateral Agent on their behalf) with respect to the
Company’s deposit and securities accounts, executed by each applicable bank, broker or other
securities intermediary as the Investors shall reasonably request; and (vi) evidence of
satisfactory insurance coverage, together with evidence that the Investors have been named (or any
Collateral Agent on their behalf has been named) as loss payee under all policies of property
insurance and as additional insured under all policies of liability insurance.

          (d) No Contest, etc. No claim, litigation, arbitration, governmental investigation,
injunction, order, proceeding or inquiry shall be pending or threatened which: (i) seeks to enjoin
or would be reasonably be expected to materially delay, impose material limitations on, or
otherwise prevent the consummation of, or to recover any damages or obtain relief as a result of,
the transactions contemplated by or in connection with the Transaction Documents; or (ii) would
otherwise be adverse to any of the parties hereto in any material respect with respect to the
transactions contemplated hereby.

          (e) Certificate as to Completed Conditions, Warranties, No Default, etc. The
Investors shall have received a certificate, dated as of the date of the Initial Closing, of an
authorized signatory of the Company to the effect that: (i) all conditions precedent set forth in
this Section 2 have been satisfied; (ii) all representations and warranties set forth in
Section 4 are true and correct in all material respects (except for representations or
warranties already qualified by materiality, which shall be true and correct in all respects); and
(iii) all representations and warranties set forth in any other documents entered into in
connection herewith are true and correct in all material respects (except for representations or warranties already qualified
by materiality, which shall be true and correct in all respects).

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          (f) Certificate as to Compliance with Requirements of Law. The Investors shall have
received a certificate, dated as of the date of the Initial Closing, of an authorized signatory of
the Company to the effect that the Company has obtained and maintains in full force and effect each
and every consent, approval, filing and registration by or with any Person, including, without
limitation, any Governmental Authority, necessary to authorize or permit the execution, delivery or
performance of the Transaction Documents, the issuance of the Notes and the Warrants (including any
approval, consent, filing and registration required under Federal or State securities laws), the
validity or enforceability thereof, or the consummation of the transactions contemplated by the
Transaction Documents.

          (g) NASDAQ Qualification. The shares of the Company’s Common Stock issuable upon
exercise of the Warrants shall be duly authorized for listing by NASDAQ, subject to official notice
of issuance, to the extent required by the rules of NASDAQ.

          (h) Due Diligence. The Investors shall have completed their business, legal, and
collateral due diligence with respect to the Company and shall be satisfied therewith.

     2.4 Conditions to Subsequent Closings. Each Investor shall not have any obligation to
participate in any Subsequent Closing or otherwise to fund any amounts to the Company, other than
the obligation of such Investor in respect of the Initial Closing, subject to Section 2.3. Each
Investor may participate in any Subsequent Closing in its sole discretion. Prior and as a
condition to each Subsequent Closing, the Company shall deliver to the Investor participating in
such Subsequent Closing a certificate, dated as of the date of such Subsequent Closing, of an
authorized signatory of the Company confirming the matters set forth in Sections 2.3(e) and (f)
(with all representations and warranties so confirmed to be deemed made as of the date of such
Subsequent Closing). The Investor participating in any Subsequent Closing also may request, as a
condition to the closing of such Subsequent Closing, that the Company execute a Collateral
Assignment of Copyrights or a Collateral Assignment of Trademarks, each in the form attached as an
exhibit to the Security Agreement.

     2.5 Delivery.

          (a) Initial Closing. At the Initial Closing (i) each Investor shall deliver to the
Company a check or wire transfer of immediately available funds (pursuant to wire instructions
previously provided by the Company to the Investors) in the amount set forth opposite such
Investor’s name beneath the caption “Principal Amount of Initial Advance” on Schedule A
attached hereto, and (ii) the Company shall execute and deliver to each Investor a Note reflecting
the name of the Investor, the amount of the initial advance (which shall be set forth in the grid
attached as Schedule 1 to such Note), and the date of the Initial Closing, together with the
Investor’s Warrant as contemplated by Section 1.2.

          (b) Subsequent Closings. At any Subsequent Closing, each Investor participating in
such Subsequent Closing shall deliver to the Company a check or wire transfer of immediately
available funds (pursuant to wire instructions previously provided by the Company

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to the Investors) in the amount of such additional drawdown by the Company on such Note
previously purchased by such Investor, and such Investor shall provide the Company with a copy of
the updated grid in Schedule 1 of the Note reflecting the additional drawdown made at such
Subsequent Closing.

SECTION 3

REPRESENTATIONS AND WARRANTIES OF INVESTORS

     Each Investor hereby represents and warrants to the Company that, as of the date of the
Initial Closing, and each Subsequent Closing at which such Investor participates:

     3.1 Purchase for Own Account. Such Investor represents that it is acquiring the
Notes, the Warrants and the Common Stock issuable upon exercise of the Warrants (collectively, the
"Securities”) solely for investment for such Investor’s own account not as a nominee or agent, and
not with a view to the resale or distribution of any part thereof, and that such Investor has no
present intention of selling, granting any participation in, or otherwise distributing the same.
The acquisition by such Investor of any of the Securities shall constitute confirmation of the
representation by such Investor that such Investor does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant participations to such person
or to any third person, with respect to any of the Securities.

     3.2 Investment Experience. Either (i) such Investor or its officers, directors,
managers or controlling persons has a preexisting personal or business relationship with the
Company or its officers, directors or controlling persons, or (ii) such Investor, by reason of its
own business and financial experience, has the capacity to protect its own interests in connection
with the investment contemplated hereby. Such Investor represents that it is an investor in
securities of companies in the development stage and acknowledges that it is able to fend for
itself, can bear the economic risk of its investment, and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and risks of the
investment in the Securities. Such Investor acknowledges that any investment in the Securities
involves a high degree of risk, and represents that it is able, without materially impairing its
financial condition, to hold the Securities for an indefinite period of time and to suffer a
complete loss of its investment.

     3.3 Accredited Investor. Such Investor represents that it is an “accredited investor”
within the meaning of Securities and Exchange Commission (“SEC”) Rule 501 of Regulation D, as
presently in effect and, for the purpose of Section 25102(f) of the California Corporations Code,
it is excluded from the count of “purchasers” pursuant to Rule 260.102.13 thereunder.

     3.4 Restrictions on Transfer. Such Investor understands that the Securities are
characterized as “restricted securities” under the federal securities laws inasmuch as they are
being acquired from the Company in a transaction not involving a public offering and that under
such laws and applicable regulations such securities may be resold without registration under the
Securities Act of 1933, as amended (the “Act”), only in certain limited circumstances. In this
connection, such Investor represents that it is familiar with SEC Rule 144, as presently in effect,
and understands the resale limitations imposed thereby and by the Act. SUCH INVESTOR

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UNDERSTANDS AND ACKNOWLEDGES HEREIN THAT AN INVESTMENT IN THE COMPANY’S SECURITIES INVOLVES AN
EXTREMELY HIGH DEGREE OF RISK AND MAY RESULT IN A COMPLETE LOSS OF HIS, HER OR ITS INVESTMENT.
Such Investor understands that the Securities have not been and will not be registered under the
Act (other than as set forth in the Registration Rights Agreement) and have not been and will not
be registered or qualified in any state in which they are offered, and thus the Investor will not
be able to resell or otherwise transfer his, her or its Securities unless they are registered under
the Act and registered or qualified under applicable state securities laws, or an exemption from
such registration or qualification is available. Such Investor has no immediate need for liquidity
in connection with this investment and does not anticipate that it will need to sell his, her or
its Securities in the foreseeable future.

     3.5 Further Limitations on Disposition. Without in any way limiting the
representations set forth above, such Investor further agrees not to make any disposition of all or
any portion of the Securities (other than the shares of Common Stock issuable on exercise of the
Warrants, during such time as a registration statement under the Act covering such shares is in
effect) unless and until the transferee has agreed in writing for the benefit of the Company to be
bound by this Section 3 and (i) such Investor shall have notified the Company of the proposed
disposition and shall have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and (ii) if requested by the Company, such Investor shall
have furnished the Company with an opinion of counsel reasonably satisfactory to the Company that
such disposition will not require registration of such Securities under the Act. Notwithstanding
the foregoing provision, no such registration statement or opinion of counsel shall be necessary
for a transfer by such Investor that is a partnership or limited liability company to a partner of
such partnership or a member of such limited liability company or a retired partner of such
partnership who retires after the date hereof or a retired member of such limited liability company
who retires after the date hereof, or to the estate of any such partner, retired partner, member or
retired member or the transfer by gift, will or intestate succession by any partner or member to
his or her spouse or to the siblings, lineal descendants or ancestors of such partner or member or
his or her spouse, if the transferee agrees in writing to be subject to the terms hereof to the
same extent as if he or she were an original Investor hereunder.

     3.6 Legends. The Investor understands that the Securities, and any securities issued
in respect thereof or exchange therefor, may bear one or all of the following legends:

          (a) “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
1933.”

          (b) Any legend required by the Blue Sky laws of any state to the extent such laws are
applicable to the shares represented by the certificate so legended.

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SECTION 4

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company hereby represents and warrants to each Investor that, as of the date of the
Initial Closing and each Subsequent Closing and other than as disclosed in the Company’s public
filings:

     4.1 Organization, Good Standing and Qualification; Licenses. The Company is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization and has all requisite power and authority, and holds all governmental licenses,
permits, registrations and other approvals required under applicable law, to own and hold under
lease its property and to carry on its business as now conducted and as proposed to be conducted,
except where the failure to hold any such licenses, permits, registrations and other approvals
could not result in a Material Adverse Effect. The Company is qualified to do business in each
jurisdiction where the nature of its properties of the conduct of its business requires it to be so
qualified to do business and where the failure so to qualify could result in a Material Adverse
Effect.

     4.2 Authorization. All action on the part of the Company necessary for the
authorization, execution and delivery of this Agreement, the performance of all obligations of the
Company hereunder, and the authorization, issuance (or reservation for issuance), sale and delivery
of the Notes, the Warrants, and the shares of Common Stock underlying the Warrants, has been taken
or will be taken prior to each Closing. The Company covenants and agrees that all shares of Common
Stock which may be issued upon the exercise of the rights represented by the Warrants will, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable and free from all
preemptive rights of any stockholder and free of all taxes, liens and charges with respect to the
issue thereof. The Company has reserved a sufficient number of shares of authorized but unissued
shares of Common Stock to provide for the exercise of the rights represented by the Warrants
(assuming full vesting thereof). Each of the Transaction Documents to which the Company is a party
constitutes the valid and legally binding obligation of the Company, enforceable against the
Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies.

     4.3 Litigation. There is no action, suit, proceeding or investigation pending or, to
the Company’s knowledge, currently threatened against the Company that questions the validity of
this Agreement, the right of the Company to enter into this Agreement, or to consummate the
transactions contemplated hereby, or that could reasonably be expected to result, either
individually or in the aggregate, in any Material Adverse Effect, nor is the Company aware that
there is any basis for the foregoing. The Company is not a party or subject to the provisions of
any order, writ, injunction, judgment or decree of any court or Governmental Authority. There is
no action, suit, proceeding or investigation by the Company currently pending or that the Company
intends to initiate.

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     4.4 Absence of Required Consents; No Violations. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or filing with, any
Governmental Authority on the part of the Company is required in connection with the consummation
of the transactions contemplated by the Transaction Documents, except for such filing(s) pursuant
to applicable state securities laws as may be necessary, which filings will be timely effected
after the relevant Closing, and except for recordings or filings in connection with the perfection
of the Liens on the Collateral in favor of the Investors (or any Collateral Agent on their behalf).
The Company is not in violation or default (i) of any provision of its Certificate of
Incorporation and Bylaws, or (ii) in any material respect of any instrument, judgment, order, writ,
decree or contract to which it is a party or by which it is bound, or, to the best of its
knowledge, of any provision of any federal or state statute, rule or regulation which is, to the
best of the Company’s knowledge, applicable to the Company (including the Employee Retirement
Income Security Act of 1974, as amended, and any Environmental Laws). The execution, delivery and
performance of the Transaction Documents and the consummation of the transactions contemplated
thereby will not result in any such violation or be in conflict with or constitute, with or without
the passage of time and giving of notice, either a default under any such provision, instrument,
judgment, order, writ, decree or contract or an event that results in the creation of any Lien upon
any material assets of the Company or the suspension, revocation, impairment, forfeiture or
nonrenewal of any material permit, license, authorization or approval applicable to the Company,
its business or operations or any of its assets or properties. As used herein, “Environmental
Laws” means all applicable federal, state and local laws, rules, regulations, codes, ordinances,
and the common law governing, regulating or otherwise affecting the environment or occupational
health and safety relating to exposures to Hazardous Materials, including the federal Clean Air
Act, the federal Clean Water Act, the federal Resource Conservation and Recovery Act, the federal
Comprehensive Environmental Response, Compensation and Liability Act, the federal Toxic Substances
Control Act and their state and local counterparts. The term “Hazardous Materials” means the
existence in any form of polychlorinated biphenyls, friable asbestos, urea formaldehyde foam
insulation, oil, gasoline, petroleum, petroleum products and petroleum-derived substances (other
than in vehicles operated in the ordinary course of business), pesticides and herbicides, and any
other chemical, material or substance deemed hazardous, toxic, corrosive, reactive, ignitable,
radioactive, or flammable under any Environmental Laws.

     4.5 Transaction Documents. All representations and warranties of the Company
contained in the other Transaction Documents are true and correct in all material respects (except
for representations or warranties already qualified by materiality, which are true and correct in
all respects).

     4.6 Insurance. All policies of insurance in effect of any kind or nature owned by or
issued to the Company, including policies of life, fire, theft, product liability, public
liability, property damage, other casualty, employee fidelity, workers’ compensation, property and
liability insurance, (a) are, together with all policies of employee health and welfare and title
insurance, if any, in full force and effect, (b) comply in all respects with the applicable
requirements set forth herein and (c) are of a nature and provide such coverage, including through
self-insurance, retentions and deductibles, as is customarily carried by companies engaged in
similar businesses and owning similar properties in the same general areas in which the Company
operates.

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     4.7 Permits. The Company has all franchises, permits, licenses, and any similar
authority necessary for the conduct of its business as now conducted and as presently proposed to
be conducted, the lack of which could materially and adversely affect the business, properties,
prospects, or financial condition of the Company. The Company is not in default in any material
respect under any of such franchises, permits, licenses, or other similar authority.

     4.8 Intellectual Property. The Company has all intellectual property necessary for
the conduct of its business as now conducted and as presently proposed to be conducted, the lack of
which could materially and adversely affect the business, properties, prospects, or financial
condition of the Company. None of such intellectual property infringes on the rights of any other
person. The Company does not own any registered copyrights or registered trademarks. A complete
list of the Company’s United States patents and applications for United States patents is set forth
on Schedule A of the Patent Security Agreement.

     4.9 Subsidiaries. The Company has no subsidiaries (direct or indirect) other than as
set forth in Exhibit 21.1 to its Annual Report on Form 10-K filed on March 28, 2008. Each direct
or indirect subsidiary of the Company (a) is not actively engaged in any business and (b) holds no
material assets.

     4.10 Financial Statements. The Company has delivered to the Investors its unaudited
balance sheet, income statement and statement of stockholders’ equity at and for the three and nine
months ended September 30, 2008 (collectively, the “Financial Statements”). The Financial
Statements fairly present the financial condition and operating results of the Company as of the
dates, and for the periods, indicated therein, subject to normal year-end audit adjustments.
Except as set forth in the Financial Statements, the Company has no material liabilities
(contingent or otherwise) other than (i) liabilities incurred in the ordinary course of business
subsequent to September 30, 2008, and (ii) obligations under contracts and commitments incurred in
the ordinary course of business and not required under generally accepted accounting principles to
be reflected in the Financial Statements, which, in both cases, individually or in the aggregate,
are not material to the financial condition or operating results of the Company.

     4.11 No Material Adverse Effect. Since the date of the Financial Statements, no event
has occurred or condition exists with respect to the Company or any other Person that has resulted
in, or could reasonably be expected to result in, a Material Adverse Effect.

     4.12 Disclosure. None of the representations or warranties made by the Company herein
as of the date of such representations and warranties, and none of the statements contained in any
other information with respect to the Company and its properties and assets, including each exhibit
or report, furnished by or on behalf of the Company to the Investors in connection herewith,
contains any untrue statement of a material fact or omits any material fact required to be stated
therein or necessary to make the statements made therein, in the light of the circumstances under
which they are made, not misleading.

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     4.13 Offering. Subject in part to the truth and accuracy of each Investor’s
representations set forth in Section 3 of this Agreement, the offer, sale and issuance of
the Notes and the Warrants as contemplated by this Agreement are exempt from the registration
requirements of the Act and will not result in a violation of the qualification or registration
requirements of the any applicable state securities laws, and neither the Company nor any
authorized agent acting on its behalf will take any action hereafter that would cause the loss of
such exemption.

SECTION 5

MISCELLANEOUS

     5.1 Survival of Representations, Warranties and Covenants. The warranties,
representations and covenants of the Company and the Investors contained in or made pursuant to
this Agreement shall survive the execution and delivery of this Agreement and all Closings and
shall in no way be affected by any investigation of the subject matter thereof made by or on behalf
of the Investors or the Company.

     5.2 Successors and Assigns. Except as otherwise provided therein, the terms and
conditions of this Agreement and the other Transaction Documents shall inure to the benefit of and
be binding upon the respective successors and assigns of the parties (including transferees of any
Securities); provided, however, that the Company may not assign or transfer its
rights or obligations hereunder or under the other Transaction Documents without the prior written
consent of all Investors. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

     5.3 Governing Law; Jury Trial Waiver. This Agreement is to be construed in accordance
with and governed by the laws of the State of California. The Company irrevocably waives, to the
fullest extent permitted by law, any objection which it may now or hereafter have to the laying of
the venue of any such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum. Nothing herein shall affect the
right of any Investor to bring proceedings against the Company in the courts of any other
jurisdiction. EACH OF THE INVESTORS AND THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY, AND
INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER TRANSACTION
DOCUMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE INVESTORS ENTERING INTO THIS AGREEMENT.

     5.4 Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     5.5 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

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     5.6 Notices. Except as may be otherwise provided herein, all notices, requests,
waivers and other communications made pursuant to this Agreement shall be in writing and shall be
conclusively deemed to have been duly given (a) when hand delivered to the other party; (b) when
sent by facsimile or electronic mail to the number or electronic mail address set forth on the
signature pages hereto if sent between 8:00 a.m. and 5:00 p.m. recipient’s local time on a Business
Day, or on the next Business Day if sent by facsimile or electronic mail to the number or
electronic mail address set forth on the signature pages hereto if sent other than between 8:00
a.m. and 5:00 p.m. recipient’s local time on a Business Day; (c) three Business Days after deposit
in the U.S. mail with first class or certified mail receipt requested postage prepaid and addressed
to the other party at the address set forth on the signature pages hereto; or (d) the next Business
Day after deposit with a national overnight delivery service, postage prepaid, addressed to the
parties as set forth on the signature pages hereto with next Business Day delivery guaranteed,
provided that the sending party receives a confirmation of delivery from the delivery service
provider. Each Person making a communication hereunder by facsimile or electronic mail shall
promptly confirm by telephone to the Person to whom such communication was addressed each
communication made by it by facsimile or electronic mail pursuant hereto but the absence of such
confirmation shall not affect the validity of any such communication. A party may change or
supplement the addresses given above, or designate additional addresses, for purposes of this
Section 5.6 by giving the other party written notice of the new address in the manner set forth
above.

     5.7 Finder’s Fee. Each party represents that it neither is nor will be obligated for
any finder’s fee or commission in connection with this transaction. Each Investor agrees to
indemnify and to hold harmless the Company from any liability for any commission or compensation in
the nature of a finder’s fee (and the costs and expenses of defending against such liability or
asserted liability) for which each Investor or any of its officers, employees, or representatives
is responsible. The Company agrees to indemnify and hold harmless each Investor from any liability
for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of
defending against such liability or asserted liability) for which the Company or any of its
officers, employees or representatives is responsible.

     5.8 Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only if such amendment, modification or waiver
is in writing and only with the written consent of the Company and all Investors. Any amendment or
waiver effected in accordance with this section shall be binding upon each holder of any Securities
acquired under this Agreement at the time outstanding, each future holder of all such Securities,
and the Company.

     5.9 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

     5.10 Corporate Securities Law. THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF
THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF
CALIFORNIA AND THE

11

 

ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM
QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF
ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
UNLESS THE SALE IS SO EXEMPT.

     5.11 Expenses. The Company shall reimburse the reasonable expenses of the Investors
(including the fees of one special counsel for both of the Investors) with respect to the
negotiation, execution and delivery of this Agreement and the other Transaction Documents, in an
amount not to exceed $35,000 in the aggregate.

     5.12 Register. The Company shall maintain at its principal executive offices a
register for the Securities, in which the Company shall record the name and address of the person
in whose name the Securities have been issued (including the name and address of each transferee)
and the amount of the Securities held by such person. The Company shall keep the register open and
available during business hours for inspection by the Investors or their legal representatives upon
prior written notice.

     5.13 Interpretation. In this Agreement and the other Transaction Documents, except to
the extent the context otherwise requires: (i) any reference in this Agreement or other
Transaction Document to a Section, a Schedule or an Exhibit is a reference to a Section thereof, a
schedule thereto or an exhibit thereto, respectively, and to a subsection thereof or a clause
thereof is, unless otherwise stated, a reference to a subsection or a clause of the Section or
subsection in which the reference appears; (ii) the words “hereof,” “herein,” “hereto,” “hereunder”
and the like mean and refer to this Agreement or other Transaction Document as a whole and not
merely to the specific Section, subsection, paragraph or clause in which the respective word
appears; (iii) the meaning of defined terms shall be equally applicable to both the singular and
plural forms of the terms defined; (iv) references to agreements and other contractual instruments
shall be deemed to include all subsequent amendments and other modifications thereto; (v)
references to statutes or regulations are to be construed as including all statutory and regulatory
provisions consolidating, amending or replacing the statute or regulation referred to; and (vi) the
captions and headings are for convenience of reference only and shall not affect the construction
of this Agreement or other Transaction Document.

     5.14 Further Assurances. Each party agrees to cooperate fully with the other parties
and to execute such further instruments, documents and agreements and to give such further written
assurance as may be reasonably requested by any other party to evidence and reflect the
transactions described in this Agreement and the other Transaction Documents and contemplated
hereby and thereby and to carry into effect the intents and purposes of this Agreement and the
other Transaction Documents.

     5.15 Entire Agreement. This Agreement and the documents referred to herein constitute
the entire agreement among the parties with respect to the subject matter hereof and no party shall
be liable or bound to any other party in any manner by any warranties, representations or covenants
except as specifically set forth herein or therein.

* * *

12

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	COMPANY:

VIA PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/
Lawrence K. Cohen	 
	 	 	Name:  	Lawrence K.
Cohen	 
	 	 	Title:  	President
and Chief Executive Officer	 
	 

Address:

VIA Pharmaceuticals, Inc.

750 Battery Street, Suite 330

San Francisco, California 94111

Attention: Chief Financial Officer

Facsimile: (415) 283-2201

Electronic mail: James.Stewart@viapharmaceuticals.com

[Signature page to Note and Warrant Purchase Agreement]

13

 

	 	 	 	 	 
	 	INVESTORS:

BAY CITY CAPITAL FUND IV, L.P.

 	 
	 	By:  	Bay City Capital Management IV LLC, its 
general partner
 	 
	 
	 	By:  	                                              Bay City Capital LLC, its manager
 	 
	 	
By:  	

/s/ Fred Craves	 
	 	 	Name:  	Fred
Craves	 
	 	 	Title:  	Manager
and Managing Director	 
	 
	 	Address:

Bay City Capital Fund IV, L.P.

750 Battery Street, Suite 400

San Francisco, California 94111

Attention: Managing Director

Facsimile: (415) 835-5569

Electronic mail: lionel@baycitycapital.com

 	 
	 	BAY CITY CAPITAL FUND IV CO-INVESTMENT FUND, L.P.,

 	 
	 	By:  	Bay City Capital Management IV LLC, its 
general partner

 	 
	 	By:  	                                              Bay City Capital LLC, its manager
 	 
	 
	 	By:  	
/s/ Fred Craves	 
	 	 	Name:  	Fred Craves	 
	 	 	Title:  	Manager and Managing Director	 
	 
	 	Address:

Bay City Capital Fund IV, L.P.

750 Battery Street, Suite 400

San Francisco, California 94111

Attention: Managing Director

Facsimile: (415) 835-5569

Electronic mail: lionel@baycitycapital.com
 	 

[Signature page to Note and Warrant Purchase Agreement]

14

 

SCHEDULE A

SCHEDULE OF INVESTORS

Closing Dated March 12, 2009

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Principal	 	 	 	 
	 	 	Amount	 	Total Aggregate	 	No. of Warrant
	Name	 	of Initial Advance	 	Principal Amount	 	Shares
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bay City Capital Fund IV, L.P.
	 	$	1,957,800.00	 	 	$	9,789,000.00	 	 	 	81,575,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bay City
Capital Fund IV, L.P.
	 	$	42,200.00	 	 	$	211,000.00	 	 	 	1,758,333	 
	Co-Investment Fund, L.P.
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	TOTAL
	 	$	2,000,000.00	 	 	$	10,000,000.00	 	 	 	83,333,333	 

 

 

EXHIBIT A

FORM OF PROMISSORY NOTE

 

 

EXHIBIT B

FORM OF WARRANT TO PURCHASE COMMON STOCKexv10w2

Exhibit 10.2

THIS PROMISSORY NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THIS PROMISSORY
NOTE MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN
EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

THIS PROMISSORY NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFER CONTAINED IN THAT CERTAIN NOTE AND
WARRANT PURCHASE AGREEMENT, DATED MARCH 12, 2009, WHICH RESTRICTIONS ON TRANSFER ARE INCORPORATED
HEREIN BY REFERENCE.

PROMISSORY NOTE

	 	 	 
	Up to $9,789,000

	 	March 12, 2009
	 

	 	San Francisco, California

     FOR VALUE RECEIVED, VIA Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
promises to pay to the order of Bay City Capital Fund IV, L.P., or its registered assigns
(“Holder”), the principal amount outstanding from time to time under this Promissory Note
(the “Note”), with interest, on the outstanding principal amount at the rate of fifteen
percent (15%) per annum (computed on the basis of actual calendar days elapsed and a year of 365
days) or, if less, at the highest rate of interest then permitted under applicable law; provided,
however, that from and after an Event of Default (as defined below), the outstanding principal
balance under this Note from time to time shall accrue interest at the rate of eighteen percent
(18%) per annum (computed on the basis of actual calendar days elapsed and a year of 365 days) or,
if less, at the highest rate permitted by applicable law (the “Post-Default Rate”).
Interest shall commence with the date hereof and shall continue on the outstanding principal of
this Note until paid.

     1. Definitions. For purposes of this Note, the following terms shall have the
following meanings (capitalized terms used herein but not otherwise defined shall have the meanings
provided therefor in that certain Note and Warrant Purchase Agreement (the “Agreement”)
dated as of March 12, 2009, by and among the Company and the investors set forth on Schedule A
thereto):

     “Business Day” means any day which is not a Saturday or Sunday or a legal holiday on
which banks are authorized or required to be closed in San Francisco, California.

     “Collateral” shall have the meaning assigned to such term in the Security Agreement.

1

 

     “Control” shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a person, whether through the ownership of
voting securities, by contract or otherwise, and the terms “Controlling” and
“Controlled” (and the lower-case versions of the same) shall have meanings correlative
thereto.

     “Convertible Securities” shall mean evidences of Debt, shares of stock or other
securities or instruments which are convertible into or exchangeable for shares of common stock,
either immediately or upon the arrival of a specified date or the occurrence of a specified event.

     “Debt” shall mean all liabilities, obligations and indebtedness of every kind and
nature of any Person, including, without limitation: (1) indebtedness or liability for borrowed
money, or for the deferred purchase price of property or services (including trade obligations);
(2) obligations as lessee under any leases (including under any capital leases); (3) any
reimbursement or other obligations under any performance or surety bonds or any letters of credit
issued for the account of such Person; (4) all net obligations in respect of any derivative
products; (5) all guaranties, endorsements (other than for collection or deposit in the ordinary
course of business), and other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any other Person, or otherwise to assure a creditor against loss; and (6)
obligations secured by any Lien on property owned by such Person, whether or not the obligations
have been assumed.

     “GAAP” means generally accepted accounting principles in the United States,
consistently applied.

     “Governmental Authority” shall mean any federal, state, local or other governmental
department, commission, board, bureau, agency or other instrumentality or authority, domestic or
foreign, exercising executive, legislative, judicial, regulatory or administrative authority or
functions of or pertaining to government.

     “Lien” shall mean any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), claim or other priority or
preferential arrangement of any kind or nature whatsoever (other than a financing statement filed
by a lessor in respect of an operating lease not intended as security).

     “Material Adverse Effect” shall mean event, matter, condition or circumstance which
(i) has or would reasonably be expected to have a material adverse effect on the business,
properties, results of operations, condition (financial or otherwise) or prospects of the Company;
(ii) would materially impair the ability of the Company, or any other Person to perform or observe
its obligations under or in respect of the Transaction Documents; or (iii) affects the legality,
validity, binding effect or enforceability of any of the Transaction Documents or the perfection or
priority of any Lien granted to the Investor under any of the Collateral Documents.

     “Obligations” shall mean all obligations of the Company to Holder howsoever created,
arising or evidenced, whether direct or indirect, joint or several, absolute or contingent, or now
or hereafter existing, or due or to become due, which arise out of or in connection with this Note,
the Collateral Documents and each other related document including, without limitation, all costs
and expenses incurred by Holder in connection with the enforcement of this Note or the
Collateral Documents.

2

 

     “Options” shall mean any rights or options to subscribe for or to purchase common
stock or Convertible Securities.

     “Permitted Debt” shall mean the Obligations, trade accounts payable incurred in the
ordinary course which are due no later than 90 calendar days after invoice, other current
liabilities incurred in the ordinary course of business and not incurred through the borrowing of
money or the obtaining of credit, obligations under long-term real property leases incurred in the
ordinary course of business, short-term lease obligations of the Company in an amount per annum not
exceeding $75,000 in the aggregate, Debt incurred to finance the cost of tangible personal property
(which was acquired after the date hereof, and the cost of which, individually or in the aggregate,
does not exceed $75,000), Debt in respect of taxes or other governmental charges which is not yet
due or which is being contested in good faith by appropriate proceedings, and any refinancing,
extension or renewal of any existing Debt permitted hereunder not involving an increase in the
principal amount thereof.

     “Permitted Liens” shall mean, as of any particular time, (a) Liens of taxes,
assessments or other charges of an Governmental Authority not then delinquent or being contested as
provided below, (b) Liens created in favor of the Investor pursuant to the Collateral Documents,
(c) any mechanic’s, worker’s, repairer’s, supplier’s, vendor’s or like Liens securing obligations
arising in the ordinary course of business that (i) are not mature and not overdue, or (ii) both
(x) are being contested in good faith and (y) as to which adequate reserves have been established
on the books of the Company in accordance with GAAP or (z) that do not materially impair the value
of value of the Collateral provided to the Investor pursuant to the Collateral Documents and could
not result in an aggregate liability in excess of $75,000, (d) Liens upon tangible personal
property (which was acquired after the date hereof, and the cost of which, individually or in the
aggregate, does not exceed $75,000) granted by the Company, each of which Liens was created solely
to secure Debt incurred to finance the cost of such property (provided that no such Lien shall
extend to cover any property other than the property so acquired), (e) Liens arising solely by
virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or
similar rights and remedies as to deposit accounts or other funds maintained with a creditor
depository institution, provided that such deposit account is not a dedicated cash
collateral account, and (f) any Liens disclosed in writing to Holder and existing as of the date of
the Initial Closing under the Agreement. A contest referred to in this definition shall be
permitted only if the execution or enforcement of the Lien being contested shall have been stayed
as a result thereof and such contest could not be reasonably be expected to have a Material Adverse
Effect.

     “Person” shall mean an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.

     “Subsidiary” shall mean, with respect to any Person (herein referred to as the
“parent”), any corporation, limited liability company, partnership, association or other
business entity (a) of which securities of other ownership interests representing more than 50% of
the equity or more

3

 

than 50% of the ordinary voting power or more than 50% of the general partnership interests
are, at the time any determination is being made, owned, Controlled or held by the parent, or (b)
that is, at any time any determination is made, otherwise Controlled by, the parent or one or more
Subsidiaries of the parent and one or more Subsidiaries of the parent.

     2. Note and Warrant Purchase Agreement. This Note is issued pursuant to the terms of
the Agreement.

     3. Principal; Drawdowns.

     (a) The principal of this Note shall equal the advances made by Holder to the Company from
time to time. On the date of the Initial Closing, the Company shall receive an advance on this
Note of an amount equal to $1,957,800 (the “Initial Drawdown”). The Company may request
additional drawdown advances (each, an “Additional Drawdown” and, together with the Initial
Drawdown, a “Drawdown”) thereafter on this Note up to a maximum aggregate principal amount
of $9,789,000 (including the $1,957,800 drawdown on the date of the Initial Closing). Holder may,
in its sole discretion, determine whether to accept or reject such additional drawdown request from
the Company.

     (b) The Company shall provide Holder at least ten Business Days prior written notice of the
Company’s intention to drawdown any additional advances on this Notice. If Holder accepts such
additional drawdown request, it shall notify the Company in writing of such acceptance within such
ten Business Day period.

     (c) Each drawdown shall be recorded on the grid in Schedule 1 hereto. The Company
hereby authorizes Holder to record on the grid in Schedule 1 hereto all advances,
repayments, prepayment and unpaid principal balance on this Note from time to time to reflect the
drawdown advances made on the date of the Initial Closing and any subsequent drawdown advance.

     4. Maturity. Unless sooner paid, the entire unpaid principal amount and all unpaid
accrued interest shall become fully due and payable on the earliest of (i) September 14, 2009, and
(ii) the acceleration of the maturity of this Note by Holder upon the occurrence of an Event of
Default (such earliest date, the “Maturity Date”).

     5. Payments.

     (a) Form of Payment. All payments of interest and principal shall be in accordance
with Section 20 herein.

     (b) Interest Payments. The Company shall pay to Holder accrued and unpaid interest on
the Maturity Date. Interest at the rate first set forth above shall accrue on any interest which
has not been paid on the date on which it is payable until such time as payment therefor is
actually delivered to Holder.

     (c) Prepayment. The Company shall have the right to prepay any and all amounts owed
under this Note in whole or in part at any time without notice.

4

 

     (d) Collateral Documents. The Company’s obligations hereunder shall be secured
pursuant to the Collateral Documents.

     6. Repayment Upon Maturity. All outstanding Obligations under this Note shall become
immediately due and payable on the Maturity Date.

     7. Repayment Upon Acquisition or Financing. In the event that the Company sells,
conveys, licenses or otherwise disposes of a majority of its assets or is acquired by way of a
merger, consolidation, reorganization or other transaction or series of transactions pursuant to
which stockholders of the Company prior to such acquisition own less than fifty percent (50%) of
the voting interests in the surviving or resulting entity (each, an “Acquisition”), then
all outstanding Obligations under this Note shall, at the option of Holder, become immediately due
and payable upon the closing of the Acquisition, senior in preference to any payment in respect of
any other equity or debt security of the Company. In the event that the Company closes a Debt,
equity or combined Debt or equity financing resulting in gross proceeds or available credit to the
Company of not less than $20,000,000, including the gross proceeds from this Note to the extent
that any amounts owing hereunder are converted into Debt or equity in connection with such
financing (a “Financing”), then all of the remaining outstanding Obligations under this
Note shall, at the option of Holder, become immediately due and payable upon the closing of such
financing.

     8. Affirmative Covenants. So long as any Obligations under this Note remain
outstanding, the Company shall:

     (a) Compliance with Laws. Comply in all material respects with applicable laws,
rules, regulations and orders, such compliance to include, without limitations, paying before the
same become delinquent all taxes, assessments, and charges imposed upon it or upon its property by
any Governmental Authority except for good faith contests for which adequate reserves are being
maintained.

     (b) Information. Deliver to Holder or cause to be delivered to Holder, in form and
detail satisfactory to Holder, the following financial and other information:

          (i) as soon as available but no later than 90 days after and as of the end of each fiscal
year, the Company’s annual audited financial statements, accompanied by an unqualified report
thereon of independent certified public accountants selected by the Company and reasonably
satisfactory to Holder (all such financial statements to be delivered pursuant to this subsection
(b)(i) to be prepared in accordance with GAAP);

          (ii) as soon as available but no later than 30 days after and as of the end of each fiscal
quarter, the Company’s quarterly unaudited financial statements (all such financial statements to
be delivered pursuant to this subsection (b)(ii) to be prepared in accordance with GAAP);

          (iii) concurrently with delivery to the equity investors of the Company, any and all operating
and financial information, or other communications, delivered, from time to time, to such equity
investors;

5

 

          (iv) written notice of any of the following, promptly, and in any event within three (3) days
after the Company becomes aware of any of the following: (i) any proceeding being instituted or
threatened by or against it involving a sum in excess of the Threshold Amount (as defined below) in
the aggregate for all proceedings, (ii) any order, judgment or decree being entered against the
Company or any of its properties or assets involving a sum in excess of the Threshold Amount in the
aggregate for all such orders, judgments and decrees, and (iii) any actual or prospective change,
development or event which has had or could reasonably be expected to have a Material Adverse
Effect; and

          (v) such other statements, lists of property and accounts, budgets, forecasts, projections,
reports, or other information as Holder may from time to time reasonably request.

     (c) Notice of Litigation. Provide to Holder promptly after the commencement thereof,
notice of all actions, suits, and proceedings before any court or Governmental Authority affecting
the Company.

     (d) Notice of Defaults and Events of Defaults. Provide to Holder, as soon as possible
and in any event within three (3) days after the occurrence thereof, with written notice of each
event which either (i) is an Event of Default, or (ii) with the giving of notice or lapse of time
or both would constitute an Event of Default, in each case setting forth the details of such event
and the action which is proposed to be taken by the Company with respect thereto.

     (e) Governmental Approvals. Promptly obtain and maintain any and all authorizations,
consents, approvals, licenses, franchises, concessions, leases, rulings, permits, certifications,
exemptions, filings or registrations by or with any Governmental Authority material and necessary
for the Company to conduct its business and own (or lease) its properties or to execute, deliver
and perform the Transaction Document.

     (f) Insurance. Promptly obtain and maintain in full force and effect at all times
with responsible insurance companies such insurance covering its assets and properties, in such
amounts and against such risks and with such deductibles as an enterprise conducting a similar
business under similar business conditions as the Company would customarily maintain.

     (g) Continuance of Business. Maintain its legal existence, licenses and privileges in
good standing under and in compliance with all applicable laws and continue to operate the business
currently conducted by the Company. Without limiting the generality of the foregoing, the Company
shall do and cause to be done all things necessary to apply for, preserve, maintain and keep in
full force and effect all of its registrations of trademarks, service marks and other marks, trade
names and other trade rights, patents, copyrights and other intellectual property in accordance
with prudent business practices.

     (h) Maintenance. Conduct its business in a manner consistent with relevant industry
standards, keep its material assets and properties in good working order and condition, make all
needful and proper repairs, replacements and improvements thereof, and pay when due all amounts
payable in the course of ordinary operation of the business of the Company (or, in the case of
trade accounts payable, pay such amounts payable in the ordinary course within 90
calendar days after invoice), so that such business may be properly and prudently conducted at
all times.

6

 

     (i) Taxes. Pay and discharge (i) all federal and other material taxes, fees,
assessments and governmental charges or levies imposed upon it or upon its properties or assets
prior to the date on which penalties attach thereto, and all lawful claims for labor, materials and
supplies which, if unpaid, might become a Lien upon any of its properties or assets, except to the
extent such taxes, fees, assessments or governmental charges or levies, or such claims, are being
contested in good faith by appropriate proceedings and are adequately reserved against in
accordance with GAAP; and (ii) all other lawful claims which, if unpaid, would by law become a Lien
upon its property not constituting a Permitted Lien.

     9. Negative Covenants. So long as any Obligations under this Note remain outstanding,
the Company shall not take any of the following actions, unless such action was set forth in the
Company’s operating budget approved by the Company’s Board of Directors on December 17, 2008:

     (a) Liens. Create or suffer to exist any Lien on any assets of the Company except
Permitted Liens.

     (b) Debt. Incur any Debt other than Permitted Debt; prepay, redeem, purchase, defease
or otherwise satisfy in any manner prior to the scheduled repayment thereof any Permitted Debt
(other than amounts due or permitted to be prepaid in respect of the Notes); or amend, modify or
otherwise change the terms of any Permitted Debt (other than the Notes) so as to accelerate the
scheduled repayment thereof.

     (c) Merger. Enter into any consolidation, merger, or other combination, or become a
partner in a partnership, a member of a joint venture, or a member of a limited liability company.

     (d) Sale of Assets. Sell, license, transfer or otherwise dispose of any interest in
any of the Company’s assets except as provided for under the Security Agreement.

     (e) Acquisitions and Investments. Acquire or commit or agree to acquire all or any
stock, securities or assets of any other Person, other than inventory and equipment acquired in the
ordinary course of business, or make any loans to or other investments in any other Person, other
than in the ordinary course of business.

     (f) Distributions. Declare or pay any dividends or make any distribution of any kind
on the Company’s capital stock, or purchase, redeem or otherwise acquire, directly or indirectly,
any shares of the Company’s capital stock, any Options, any Convertible Securities or other rights
to acquire shares of capital stock of the Company, except for the repurchase of such securities
from former employees of or consultants to the Company at the original issue price paid therefor
pursuant to contractual rights of the Company upon the termination of such employees’ or
consultants’ employment by or provision of service to the Company.

     (g) Additional Issuances. Issue, designate or authorize the issuance of any shares of
capital stock of the Company or any security or other instrument convertible into capital stock of
the Company; permit any such issuance, designation, or authorization of issuance with respect
to any subsidiary of the Company; or form any Subsidiary.

7

 

     (h) Changes in Business. Enter into or engage in any business other than that carried
on (or contemplated to be carried on) as of the date of the Initial Closing.

     (i) Operating Leases. The Company shall not make any expenditures in respect of
operating leases, except for: (i) operating leases between the Company and any of its wholly owned
Subsidiaries or between any of its wholly owned Subsidiaries; and (ii) operating leases entered
into or assumed by the Company in the ordinary course of business.

     (j) Capital Expenditures. The Company shall not make or become legally obligated to
make any expenditure in respect of the purchase or other acquisition of any fixed or capital asset
(including obligations under any capital lease), but excluding any expenditures in respect of any
normal replacements and maintenance which are properly charged to current operations), except for
capital expenditures in the ordinary course of business not exceeding $75,000, on a consolidated
basis, in any fiscal year.

     (k) Subsidiaries. Cause or permit any direct or indirect Subsidiary of the Company to
(i) acquire or hold any material assets or (ii) engage in any business activities, except (in
either case) without the prior written approval of Holder.

     10. Use of Proceeds. The Company shall use the proceeds from this Note for general
corporate purposes, excluding any payment of dividends, repurchase of capital stock or repayment of
Debt of the Company or of any subsidiary of the Company (other than as provided herein or in any
other Transaction Document, and other than Permitted Debt).

     11. Default.

     (a) Events of Default. For purposes of this Note, any of the following events which
shall occur shall constitute an “Event of Default”:

          (i) any Obligation under this Note is not paid when and as the same shall become due and
payable, whether at maturity, by acceleration, or otherwise;

          (ii) default shall occur in the observance or performance of (A) any covenant, obligation or
agreement of the Company contained in Sections 9 or 10, or (B) any other provision of this Note,
the Agreement or any of the Collateral Documents and any such default shall continue uncured for a
period of five (5) days after the Company knew or should have known, exercising reasonable
diligence, of the event or circumstances giving rise to such default; or any “Event of
Default” shall exist under any Collateral Document;

          (iii) any representation, warranty or certification made by the Company herein or in the
Agreement or the Collateral Documents or in any certificate, report, document, agreement or
instrument delivered pursuant to any provision hereof or thereof shall prove to have been false or
incorrect in any material respect on the date or dates as of which made (any such falsity being a
“Representation Default”) and, to the extent the event or circumstances giving rise to such
Representation Default is amenable to being cured such that the Representation Default

8

 

would no longer exist, such Representation Default shall continue uncured for a period of five
(5) days after the Company knew or should have known, exercising reasonable diligence, of the event
or circumstances giving rise to such Representation Default;

          (iv) the Company shall (A) apply for or consent to the appointment of a receiver, trustee,
custodian or liquidator of itself or any part of its property, (B) become subject to the
appointment of a receiver, trustee, custodian or liquidator for itself or any part of its property
if such appointment is not terminated or dismissed within thirty (30) days, (C) make an assignment
for the benefit of creditors, (D) fail generally or admit in writing to its inability to pay its
debts as they become due, (E) institute any proceedings under the United States Bankruptcy Code or
any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar
law affecting the rights of creditors generally, or file a petition or answer seeking
reorganization or an arrangement with creditors to take advantage of any insolvency law, or file an
answer admitting the material allegations of a bankruptcy, reorganization or insolvency petition
filed against it, or (F) become subject to any involuntary proceedings under the United States
Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency
or other similar law affecting the rights of creditors generally, which proceeding is not dismissed
within thirty (30) days of filing, or have an order for relief entered against it in any proceeding
under the United States Bankruptcy Code;

          (v) the Company shall (i) liquidate, wind up or dissolve (or suffer any liquidation, wind-up
or dissolution), (ii) suspend its operations other than in the ordinary course of business, or
(iii) take any action to authorize any of the actions or events set forth above in this Section
11(a)(v);

          (vi) any final judgment or judgments for the payment of money aggregating in excess of $75,000
(the “Threshold Amount”) shall be rendered against the Company which judgments are not,
within 30 days after the entry thereof, bonded, discharged or stayed pending appeal, or are not
discharged within 30 days after the expiration of such stay;

          (vii) (A) any Debt of the Company (other than the Notes and trade payables) shall not be paid
at its stated maturity or shall be duly declared to be or shall become due and payable prior to the
stated maturity thereof, or (B) there shall occur and be continuing any default or event of default
under any agreement or instrument relating to any such Debt (other than trade payables), or (C) the
holder or holders of such Debt, or any trustee, agent or other representative on behalf of such
holder or holders, shall have demanded or required, pursuant to the terms of any agreement or
instrument relating to such Debt (other than trade payables), that the Company redeem, repurchase
or otherwise acquire or retire such Debt for value at any time prior to its stated maturity;

          (viii) there shall fail, at any time, to be sufficient authorized shares of Common Stock of
the Company to permit the issuance of that number of shares of Common Stock for which all of the
Warrants are exercisable (assuming full vesting thereof); or

          (ix) the occurrence or existence of any event or condition that, in Holder’s reasonable
judgment, would have or could result in a Material Adverse Effect.

9

 

     (b) Consequences of Events of Default.

          (i) If any Event of Default shall occur for any reason, whether voluntary or involuntary, and
be continuing, Holder may, upon notice or demand, declare the outstanding Obligations under this
Note to be due and payable, whereupon the outstanding Obligations under this Note shall be and
become immediately due and payable, and the Company shall immediately pay to Holder all such
Obligations. Upon the occurrence of an actual or deemed entry of an order for relief with respect
to the Company under the United States Bankruptcy Code, then all Obligations under this Note shall
automatically be due immediately without notice of any kind. The Company agrees to pay Holder all
reasonable out-of-pocket costs and expenses incurred by Holder in any effort to collect Obligations
under this Note, including attorneys’ fees, and to pay interest at the lesser of (A) Post-Default
Rate hereunder and (B) the highest rate permitted by applicable law, on such costs and expenses to
the extent not paid when demanded.

          (ii) Holder shall also have any other rights which Holder may have been afforded under any
contract or agreement at any time and any other rights which Holder may have pursuant to applicable
law. Holder may exercise any and all of its remedies under the Collateral Documents and the other
Transaction Documents contemporaneously or separately from the exercise of any other remedies
hereunder or under applicable law.

     12. Lost, Stolen, Destroyed or Mutilated Notes. In case any Note shall be mutilated,
lost, stolen or destroyed, the Company shall issue a new Note of like date, tenor and denomination
and deliver the same in exchange and substitution for and upon surrender and cancellation of any
mutilated Note, or in lieu of any Note lost, stolen or destroyed, upon receipt of evidence
satisfactory to the Company of the loss, theft or destruction of such Note.

     13. Transferability of Note; Agent.

     (a) Subject to compliance with applicable federal and state securities laws and the transfer
restrictions set forth in Section 3.6 of the Agreement under which this Note was issued,
this Note and all rights hereunder may be transferred, in whole or in part, without charge to
Holder hereof (except for transfer taxes), upon surrender of this Note properly endorsed and in
compliance with the provisions of the Agreement. Each taker and holder of this Note, by taking or
holding the same, consents and agrees that this Note, when endorsed in blank, shall be deemed
negotiable, and that the holder hereof, when this Note shall have been so endorsed, may be treated
by the Company, at the Company’s option, and all other persons dealing with this Note as the
absolute owner hereof for any purpose and as the person entitled to exercise the rights represented
by this Note, or to the transfer hereof on the books of the Company and notice to the contrary
notwithstanding; but until such transfer on such books, the Company may treat the registered owner
hereof as the owner for all purposes. Upon any such transfer, a new Note, in substantially the
form of this Note (the “New Note”), evidencing the portion of this Note so transferred,
shall be issued to the transferee and a New Note evidencing the remaining portion of this Note not
so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Note
by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of a Note.

10

 

     (b) As a condition to any transfer of this Note, the original Holder of this Note, the
proposed transferee of this Note, and the Company shall enter into an agency agreement in a form
mutually agreeable to the parties thereto, which provides for the appointment of, and duties and
responsibilities of, the original Holder of this Note as agent, and which shall provide that
observance of any term of this Note and all Notes issued pursuant to the Agreement or pursuant to
any transferee may be waived (either generally or in a particular instance and either retroactively
or prospectively) with holders representing at least a majority of the aggregate principal amount
of the Notes issued by the Company at such time.

     14. Governing Law. This Note is to be construed in accordance with and governed by
the laws of the State of California.

     15. Amendment and Waiver. Any term of this Note may be amended only with the written
consent of the Company and Holder. The observance of any term of this Note may be waived (either
generally or in a particular instance and either retroactively or prospectively) only with the
written consent of persons then holding at least a majority of the aggregate principal amount of
the Note.

     16. Notices. Except as may be otherwise provided herein, all notices, requests,
waivers and other communications made pursuant to this Note shall be made in accordance with
Section 5.6 of the Agreement.

     17. Severability. If one or more provisions of this Note are held to be unenforceable
under applicable law, such provision shall be excluded from this Note and the balance of the Note
shall be interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms.

     18. Assignment. The Company shall not have the right to assign its rights and
obligations hereunder or any interest herein.

     19. Remedies Cumulative; Failure or Indulgence Not a Waiver. The remedies provided in
this Note shall be cumulative and in addition to all other remedies available under this Note and
any of the other Transaction Documents. No failure or delay on the part of Holder in the exercise
of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude other or further exercise
thereof or of any other right, power or privilege.

     20. Payments. Whenever any payment of cash is to be made by the Company to any Person
pursuant to this Note, such payment shall be made in lawful money of the United States of America
by a check drawn on the account of the Company and sent via overnight courier service to such
Person at such address as previously provided to the Company in writing (which address, in the case
of Holder as of the date of issuance hereof, shall initially be the address for Holder as set forth
in the Agreement); provided that Holder may elect to receive a payment of cash via wire transfer of
immediately available funds by providing the Company with prior written notice setting out such
request and Holder’s wire transfer instructions. Whenever any payment to be made shall otherwise
be due on a day which is not a Business Day, such payment shall be made on the immediately succeeding Business Day and such extension of time shall be
included in the computation of accrued interest.

11

 

     21. Excessive Interest. Notwithstanding any other provision herein to the contrary,
this Note is hereby expressly limited so that the interest rate charged hereunder shall at no time
exceed the maximum rate permitted by applicable law. If, for any circumstance whatsoever, the
interest rate charged exceeds the maximum rate permitted by applicable law, the interest rate shall
be reduced to the maximum rate permitted, and if Holder shall have received an amount that would
cause the interest rate charged to be in excess of the maximum rate permitted, such amount that
would be excessive interest shall be applied to the reduction of the principal amount owing
hereunder (without charge for prepayment) and not to the payment of interest, or if such excessive
interest exceeds the unpaid balance of principal, such excess shall be refunded to the Company.

     22. Waiver of Notice. To the extent permitted by law, the Company hereby waives
demand, notice, protest and all other demands and notices in connection with the delivery,
acceptance, performance, default or enforcement of this Note and the Transaction Documents.

12

 

     IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by its officers,
thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	VIA PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/
Lawrence K. Cohen	 
	 	 	Name:  	Lawrence K.
Cohen	 
	 	 	Title:  	President
and Chief Executive Officer	 

[Signature page to Note for BCC Fund]

13

 

SCHEDULE 1

Outstanding Note Balance for Note issued to Bay City Capital Fund IV, L.P.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date	 	Drawdown	 	Prepayment	 	Unpaid Principal	 	Accrued Interest	 	Outstanding Balance
	3/12/09

	 	$	1,957,800	 	 	 	 	 	 	 	 	$	1,957,800

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