Document:

Unassociated Document

    
      THIS NOTE
AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
APPLICABLE STATE SECURITIES LAWS, OR APPLICABLE LAWS OF ANY FOREIGN
JURISDICTION. THIS NOTE AND SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE OFFERED, SOLD,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS AND IN THE ABSENCE OF COMPLIANCE WITH APPLICABLE LAWS OF ANY
FOREIGN JURISDICTION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED AND SUCH FOREIGN JURISDICTION LAWS HAVE BEEN
SATISFIED.

    

    
      

    

    
      CORMEDIX
INC.

    

    
      

    

    
      AMENDED
AND RESTATED

    

    
      

    

    
      FUTURE
ADVANCE PROMISSORY NOTE

    

    
      

    

    
      Summit,
NJ

    

    
      

    

    
      	
              $434,714.66

            	
              September
      30, 2009

            

    

    
      

    

    
      Recitals

    

    
      

    

    
      A.            In
consideration of certain services provided by The Lindsay A. Rosenwald Family
Trusts Dated December 15, 2000 (the “Trusts”) to CorMedix
Inc., a Delaware corporation (the “Company”), the
Company made that certain FUTURE ADVANCE PROMISSORY NOTE, dated as of August 11,
2006 and amended on June 15, 2007 and July 22, 2008 (as amended, the “Existing Promissory
Note”) in favor of the Trusts.

    

    
      

    

    
      B.            As
of the date hereof, the unpaid principal balance of the Existing Promissory Note
was $344,678.73, and the amount of accrued and unpaid, interest thereon was
$90,035.93, including accrued and unpaid interest was outstanding under the
Existing Promissory Note.

    

    
      

    

    
      C.            Each
party desires to add the entire amount of such accrued and unpaid interest to
the principal balance of the Existing Promissory Note and to amend and restate
the Existing Promissory Note on the terms and subject to the conditions
contained herein.

    

    
      

    

    
      Agreements

    

    
      

    

    
      
        	 	
                1.

              	
                Principal and
      Interest

              

      

    

    
      

    

    
      The
Company, for value received, hereby promises to pay to the order of the Trusts,
or its assigns (“Holder”), in
lawful money of the United States of America at the address for notices to
Holder set forth in the applicable Purchase Agreement (as defined below) (or
such other address as Holder shall provide to the Company in writing pursuant
hereto), the principal amount of Four Hundred Thirty Four Thousand Seven Hundred
Fourteen dollars and Sixty Six cents ($434,714.66), together with interest as
set forth below.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      The
Company promises to pay interest on the unpaid principal amount from the date
hereof until such principal amount is paid in full at the rate of eight percent
(8%), or such lesser rate as shall be the maximum rate allowable under
applicable law. Interest from the date hereof shall be computed on the basis of
a 360-day year of twelve 30-day months, shall compound annually and shall be
accrued and added to principal on an annual basis. Unless converted, all unpaid
principal and unpaid accrued interest on this promissory note (this “Note”) shall be due
and payable on July 31, 2010; provided, however, that upon an
Event of Default (as defined herein), the interest rate on this Note shall be
increased to twelve percent (12%) per annum during the term of the default. For
purposes of this Note, an “Event of Default”
shall occur if (i) the Company shall default in the payment on this Note, when
and as the same shall become due and payable; or (ii) the Company shall default
in the due observance or performance of any material covenant, condition or
agreement on the part of the Company contained in this Note, and any such
default shall continue for a period of five (5) business days after the Company
receives written notice thereof.

    

    
      

    

    
      This Note
shall rank pari passu in right of payment with all other existing indebtedness
of the Company, including (a) the future advance promissory note between the
Company and Paramount BioSciences, LLC, dated July 28, 2006, as amended on June
15, 2007 and amended and restated on the date hereof (as amended, the “PBS Note”), (b) the
series of convertible promissory notes issued by the Company in connection with
an offering described in the Company’s Confidential Offering Memorandum dated
June 15, 2007 and Supplement No. 1 thereto dated August 14, 2007 (such
notes, as amended to date, shall be collectively referred to as the “First Bridge Notes”),
(c) the series of convertible promissory notes issued by the Company in
connection with an offering described in the Company’s Confidential Offering
Memorandum dated August 5, 2008 (such notes, as amended to date, shall be
collectively referred to as the “Second
Bridge Notes” and collectively with the First Bridge Notes, the “Bridge Notes”), and
(d) the convertible promissory note in the principle amount of $1,000,000 dated
as of April 30, 2009 issued by the Company to Galenica Ltd., on terms
substantially the same as the Bridge Notes (the “Galenica Note”). No
consent of the Holder will be required for issuances by the Company of unsecured
indebtedness that ranks pari passu in right of payment with, or junior in right
of payment to, this Note.

    

    
      

    

    
      
        	 	
                2.

              	
                Conversion.

              

      

    

    
      

    

    
      2.1  (a)  All
unpaid principal and unpaid accrued interest on this Note shall be automatically
converted into the Company’s equity securities (the “Securities”) issued
in the Company’s next equity financing (or series of related equity financings)
involving the sale of Securities in which the Company receives gross aggregate
cash proceeds (before brokers’ fees or other transaction related expenses, and
excluding any such proceeds resulting from any conversion of the First Bridge
Notes) of at least $10,000,000 minus the aggregate principal amount of the
Second Bridge Notes (a “Qualified
Financing”), at a conversion price equal to the lesser of (a) the lowest
per unit price paid for such Securities in cash by investors in such Qualified
Financing, and upon such other terms, conditions and agreements as may be
applicable in such Qualified Financing, and (b) $30,000,000 divided by the
number of shares of Common Stock outstanding immediately prior to such Qualified
Financing (determined on a fully diluted basis) (the “Conversion
Price”).

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      (b) In
the event that the Company consummates a merger, share exchange, or other
transaction (or series of related transactions), other than in connection with a
Qualified Financing, in which (i) the Company merges into or otherwise becomes a
wholly-owned subsidiary of a company subject to the public company reporting
requirements of the Securities Exchange Act of 1934, as amended, and (ii) the
aggregate consideration payable to the Company or its stockholders in such
transaction(s) (the “Reverse Merger
Consideration”) is greater than or equal to $10,000,000 (a “Reverse Merger”),
then immediately prior to such Reverse Merger, all unpaid principal and unpaid
accrued interest on this Note shall be automatically converted into Common Stock
at a conversion price per share equal to the quotient obtained by dividing (i)
the Reverse Merger Consideration less the amount of unpaid principal and accrued
interest on all Bridge Notes by (ii) the number of shares of Common Stock then
outstanding, on a fully diluted basis, without giving effect to the warrants
issued in connection with the Bridge Notes or to the warrants issued to
Paramount BioCapital, Inc., as placement agent in connection with the sale of
the First Bridge Notes.

    

    
      

    

    
      The
shares of Common Stock issuable pursuant to clause 2.1(b) above shall be issued
effective prior to the consummation of the Reverse Merger and as a condition to
such Reverse Merger. As a holder of such shares of Common Stock, the Holder will
receive the consideration payable in connection with such Reverse Merger on a
share-for-share basis with all other stockholders of the Company and in like
kind, at the same time and upon the same conditions as all other stockholders of
the Company.

    

    
      

    

    
      If any
Reverse Merger Consideration is other than cash, its value will be deemed to be
its fair market value as determined, in good faith, by the Board of Directors of
the Company. The value of any securities shall be determined by the Board of
Directors of the Company as set forth for a Sale of the Company in Section
3.2(c) below.

    

    
      

    

    
      In the
event the Company completes (in one or a series of related transactions) a
merger, consolidation, sale or transfer of more than fifty percent (50%) of the
Company’s capital stock, in each case, which does not constitute a Sale of the
Company (as defined below), a Reverse Merger or a Qualified Financing, then the
term “Securities” as used
herein shall thereafter refer to the equity securities or securities convertible
into or exchangeable for equity securities of the surviving, resulting, combined
or acquiring entity in such merger, consolidation, sale or
transfer.

    

    
      

    

    
      2.2 Upon
conversion of this Note in accordance with the terms of Section 2.1, the
outstanding unpaid principal and unpaid accrued interest of this Note shall be
converted without any further action by the Holder and whether or not this Note
is surrendered to the Company or its transfer agent, and the indebtedness
evidenced by this Note shall be satisfied in full and no interest shall continue
to accrue on this Note and all rights of the Holder hereunder shall terminate.
The Company shall not be obligated to issue certificates evidencing the shares
of the securities issuable upon such conversion unless this Note is either
delivered to the Company or its transfer agent, or the Holder notifies the
Company or its transfer agent that such Note has been lost, stolen or destroyed
and executes an agreement satisfactory to the Company to indemnify the Company
from any loss incurred by it in connection with such Note. The Company shall, as
soon as practicable after such delivery, or such agreement, and indemnification,
issue and deliver to such Holder of such Note, a certificate or certificates for
the securities to which the Holder shall be entitled. Such conversion shall be
deemed to have been made concurrently with the close of the Qualified Financing
or the Reverse Merger, as applicable. The person or persons entitled to receive
securities issuable upon such conversion shall be treated for all purposes as
the record holder or holders of such securities on such date. The Company shall
not issue fractional shares but shall round down the number of shares issued to
the nearest whole number. Any conversion effected in accordance with this
Section 2 shall be binding upon the Holder hereof.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      

    

    
      
        	 	
                3.

              	
                Prepayment.

              

      

    

    
      

    

    
      3.1           Other
than as provided in Section 3.2 hereof, this Note may not be prepaid at any
time, in whole or in part, prior to their maturity.

    

    
      

    

    
      3.2           In
the event of a Sale of the Company prior to a Qualified Financing, the Company
shall:

    

    
      

    

    
      (a)           pay
to the Holder an amount equal to the unpaid principal balance of this Note,
payable in cash or such other form of Sale Proceeds (as defined below), having a
value equal to such unpaid principal balance;

    

    
      

    

    
      (b)           pay
to the Holder all accrued but unpaid interest on this Note, payable in cash or
such other form of Sale Proceeds, having a value equal to such accrued but
unpaid interest; and

    

    
      

    

    
      (c)           as
consideration for the permitted prepayment of this Note, issue to the Holder a
number of fully paid, non-assessable shares of Common Stock equal to (i) the
Aggregate Prepayment Equity Amount (as defined below), multiplied by (ii) the
quotient equal to the principal amount of the Holder’s Note divided by the sum
of the aggregate principal amount of (w) this Note plus (x) the PBS Note plus
(y) all Bridge Notes plus (z) the Galenica Note, in each case, then
outstanding.

    

    
      

    

    
      The
shares of Common Stock issuable pursuant to clause (c) above shall be issued
effective immediately prior to, and conditioned upon, the consummation of the
Sale of the Company and as a condition to such Sale of the Company. As a holder
of such shares of Common Stock, the Holder will receive the consideration
payable in connection with such Sale of the Company on a share-for-share basis
with all other stockholders of the Company and in like kind, at the same time
and upon the same conditions as all other stockholders of the
Company.

    

    
      

    

    
      Upon the
consummation of the Sale of the Company and completion by the Company of the
deliveries set forth in clauses (a) through (c) above, the indebtedness
evidenced by this Note shall be satisfied in full and no interest shall continue
to accrue on this Note and all rights of the Holder hereunder shall
terminate.

    

    
      

    

    
      If any
Sale Proceeds resulting from the Sale of the Company are other than cash, the
value of such Sale Proceeds will be deemed to be its fair market value as
determined, in good faith, by the Board of Directors of the Company. The value
of any securities shall be determined by the Board of Directors of the Company
as follows:

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      

    

    
      (i)           Securities not subject
to an investment letter or other restriction on free
marketability covered by (ii) below:

    

    
      

    

    
      (A)          If
traded on a securities exchange, the value shall be the average of the daily
average bid and asked prices of the securities on such exchange over the thirty
(30) day period ending three (3) days prior to the date of the Sale of the
Company;

       

      (B)          If
not traded on a securities exchange, but actively traded over-the-counter, the
value shall be the average of the daily average of the closing bid and sale
prices over the thirty (30) day period ending three (3) days prior to the date
of the Sale of the Company; and

       

      (C)          If
not traded on a securities exchange and if there is no active public market, the
value shall be the fair market value thereof, as determined by the Board of
Directors with reference to the last sale of securities undertaken by the issuer
of such securities.

    

    
      

    

    
      (ii)   An appropriate
discount from the market value determined in accordance with clauses (A), (B) or
(C) of subsection (i) above shall be made with respect to any securities subject
to an investment letter or other restriction on free marketability (other than
restrictions arising solely by virtue of a shareholder’s status as an affiliate
or former affiliate) to reflect the approximate fair market value thereof, as
determined by the Board of Directors.

    

    
      

    

    
      The
following definitions shall apply for purposes of this Section
3.2:

    

    
      

    

    
      (w)            “Aggregate Prepayment Equity Amount”
shall mean a number of shares of Common Stock determined in accordance with the
following formula:

    

    
      

    

    
      
        
          	
                	
                  Aggregate
      Prepayment Equity Amount =

                	
                  

                

        

      

    

    
      

    

    
      For
purposes of the foregoing formula:

    

    
      

    

    
      A = the
number of shares of the Company’s then outstanding Common Stock, determined on a
fully diluted basis, prior to any issuance under this Section 3.2;

       

      B = the
Applicable Percentage (as defined below).

    

    
      

    

    
      (x)            “Applicable Percentage” shall mean the
number determined in accordance with the following formula:

    

    
      

    

    
      
        
          	
                	
                  Applicable
      Percentage =

                	
                  

                

        

      

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      For
purposes of the foregoing formula:

    

    
      

    

    
      A = the
aggregate principal amount of this Note, the PBS Note, all Bridge Notes and the
Galenica Note outstanding immediately prior to the Sale of the
Company;

       

      B = 50%;
and

       

      C = the
aggregate principal amount of this Note, the PBS Note, all Bridge Notes and. the
Galenica Note then outstanding.

    

    
      

    

    
      (y)   “Sale of the Company”
shall mean a transaction (or series of related transactions) with one or more
non-affiliates, pursuant to which such party or parties acquire (i) capital
stock of the Company or the surviving entity possessing the voting power to
elect a majority of the board of directors of the Company or the surviving
entity (whether by merger, consolidation, sale or transfer of the Company’s
capital stock or otherwise) (a “Stock Acquisition”);
or (ii) all or substantially all of the Company’s assets determined on a
consolidated basis (an “Asset Sale”); provided, however, that
notwithstanding anything to the contrary contained herein, to the extent any
transaction (or series of related transactions) qualifies as a Qualified
Financing or a Reverse Merger, such transaction(s) shall not be deemed to
constitute a Sale of the Company.

    

    
      

    

    
      (z)   “Sale Proceeds” shall
mean (i) in the event of a Stock Acquisition, the cash or securities paid by the
acquirer to the Company or the selling stockholders to acquire such shares; and
(ii) in the event of an Asset Sale, the cash or securities legally available for
distribution to the Company’s stockholders, after creation of adequate reserves
for liabilities of the Company.

    

    
      

    

    
      4.           Attorney’s Fees. If
the indebtedness represented by this Note or any part thereof is collected in
bankruptcy, receivership or other judicial proceedings or if this Note is placed
in the hands of attorneys for collection after default, the Company agrees to
pay, in addition to the principal and interest, payable hereunder, reasonable
attorneys’ fees and costs incurred by Holder.

    

    
      

    

    
      5.           Notices. Any notice,
other communication or payment required or permitted hereunder shall be in
writing and shall be deemed to have been given upon delivery to the address
provided pursuant to the Purchase Agreement.

    

    
      

    

    
      6.           Notice of Proposed
Transfers. Prior to any proposed transfer of this Note or the Securities,
unless there is in effect a registration statement under the Securities Act
covering the proposed transfer, the Holder shall give written notice to the
Company of such Holder’s intention to effect such transfer. Each such notice
shall describe the manner and circumstances of the proposed transfer in
sufficient detail, and shall, if the Company so requests, be accompanied (except
in transactions in compliance with Rule 144) by an unqualified written opinion
of legal counsel, who shall be reasonably satisfactory to the Company, addressed
to the Company and reasonably satisfactory in form and substance to the
Company’s counsel, to the effect that the proposed transfer of this Note or
Securities may be effected without registration under the Securities Act; provided, however, no such
opinion of counsel shall be necessary for a transfer without consideration by a
Holder to any affiliate of such Holder, or a transfer by a Holder which is a
partnership to a partner of such partnership or a retired partner of such
partnership who retires after the date hereof, or to the estate of any such
partner or retired partner or the transfer by gift, will or intestate succession
of any partner to his spouse or lineal descendants or ancestors, if the
transferee agrees in writing to be subject to the terms hereof to the same
extent as if such transferee were the original Holder hereunder. Each
certificate evidencing Securities or this Note transferred as above provided
shall bear an appropriate restrictive legend, except that this Note or
certificate shall not bear such restrictive legend if in the opinion of counsel
for the Company such legend is not required in order to establish compliance
with any provisions of the Securities Act.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
       

    

    
      7.           Acceleration, This
Note shall become immediately due and payable if (i) the Company commences any
proceeding in bankruptcy or for dissolution, liquidation, winding-up,
composition or other relief under state or federal bankruptcy laws; or (ii)
there is any material breach of any material covenant, warranty, representation
or other term or condition of this Note or the Purchase Agreement at any time
which is not cured within the time periods permitted therein, or if no cure
period is provided therein, within sixty (60) days after the date on which the
Company receives written notice of such breach.

    

    
      

    

    
      8.           No Dilution or
Impairment. The Company will not, by amendment of its Certificate of
Incorporation or Bylaws or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Note, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Holder of this
Note against dilution or other impairment.

    

    
      

    

    
      9           Waivers.   The
Company hereby waives presentment, demand for performance, notice of
non-performance, protest, notice of protest and notice of dishonor. No delay on
the part of Holder in exercising any right hereunder shall operate as a waiver
of such right or any other right. This Note is being delivered in and shall be
construed in accordance with the laws of the State of New York, without regard
to the conflicts of laws provisions thereof.

    

    
      

    

    
      10.        No Stockholder
Rights. Nothing contained in this Note shall be construed as conferring
upon the Holder or any other person the right to vote or to consent or to
receive notice as a stockholder of the Company.

    

    
      

    

    
      11.        Amendment. Any term
of this Note may be amended with the written consent of the Company and the
Holder hereof.

    

    
      

    

    *  *  *  *  *

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      IN WITNESS WHEREOF, this Amended and Restated Future Advance
Promissory Note is executed by the parties hereto as of the day and year first
above written.

    

    
      

    

    
      

    

    
      

    

    
      CORMEDIX
INC.

       

       

      By: /s/ John Houghton        

      Name:
John Houghton

      Title:
President and Chief Executive Officer

       

       

      THE
LINDSAY A. ROSENWALD FAMILY

      TRUSTS
DATED DECEMBER 15, 2000

       

       

      By:  /s/ Jon Rosenwald        

      Name: Jon
Rosenwald

      Title:  Trustee

    

    
      
         

      

      
        8Unassociated Document

    

    ESCROW
AGREEMENT

    

    This Escrow
Agreement (“Agreement”)
is made and entered into as of this 30th day of January, 2008, by and among:
CorMedix,
Inc., a Delaware corporation (the “Corporation”),
ND
Partners LLC, a Delaware limited liability
company (the “Subscriber”)
and the Secretary of the Corporation (the “Escrow
Agent”).

    

    Recitals

    

    A. The Corporation and
the Subscriber have entered into a Common Stock Subscription Agreement dated as
of the date hereof (the “Subscription
Agreement”), pursuant to which the Corporation is issuing shares of
Common Stock to the Subscriber in consideration for the Subscriber’s performance
under a License and Assignment Agreement dated as of even date therewith (the
“License
Agreement”).

    

    B. The Subscription
Agreement contemplates the establishment of an escrow arrangement to secure
rights of Subscriber to shares of Common Stock upon the achievement of certain
milestones.

    

    Agreement

    

    The
parties, intending to be legally bound, agree as follows:

    

    Section
1.  Defined
Terms.

    

    1.1 Capitalized terms
used in this Agreement and not otherwise defined herein shall have the meanings
given to them in the Subscription Agreement and the License Agreement, as
applicable.

    

    Section
2. Escrow.

    

    2.1 Shares and Stock Powers Placed in
Escrow.  Upon execution of the Subscription Agreement, in
accordance with Section 1(b) of the Subscription Agreement, (a) the Corporation
shall issue certificates for shares of Common Stock registered in the name of
Subscriber, evidencing the shares of Common Stock to be held in escrow on behalf
of the Subscriber in accordance with this Agreement, and (b) the Subscriber
shall deliver to the Corporation five “assignments separate from certificate”
(“Stock
Powers”) endorsed by Subscriber.  The shares of Common Stock
being held in escrow pursuant to this Agreement (the “Escrow
Shares”) shall collectively constitute an escrow fund (the “Escrow
Fund”) to secure the rights of Subscriber to receive certain shares of
Common Stock pursuant to the Subscription Agreement.  The Escrow Agent
agrees to accept delivery of the Escrow Fund and to hold the Escrow Fund in an
escrow account (the “Escrow
Account”), subject to the terms and conditions of this
Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    2.2 Voting of Escrow
Shares.  The record owner of the Escrow Shares shall be
entitled to exercise all voting rights with respect to such Escrow
Shares.

    

    2.3 Dividends, Etc.  The
Corporation and the Subscriber agree among themselves, for the benefit of the
Corporation and the Escrow Agent, that any shares of the Corporation’s stock or
other property (including ordinary cash dividends) distributable or issuable
(whether by way of dividend, stock split or otherwise) in respect of or in
exchange for any Escrow Shares (including pursuant to or as a part of a merger,
consolidation, acquisition of property or stock, reorganization or liquidation
involving the Corporation) shall not be distributed or issued to the beneficial
owners of such Escrow Shares, but rather shall be distributed or issued to and
held by the Escrow Agent in the Escrow Account as part of the Escrow
Fund.  Any securities or other property (including ordinary cash
dividends) received by the Escrow Agent in respect of any Escrow Shares held in
escrow as a result of any stock split or combination of shares of Common Stock,
payment of a stock dividend or other stock distribution in or on shares of
Common Stock, or change of Common Stock into any other securities pursuant to or
as a part of a merger, consolidation, acquisition of property or stock,
reorganization or liquidation involving the Corporation, or otherwise, shall be
held by the Escrow Agent as, and shall be included within the definition of,
Escrow Shares.

    

    2.4 Transferability.  The
interests of the Subscriber in the Escrow Account and in the Escrow Shares shall
not be assignable or transferable, other than by operation of law.  No
assignment or transfer of any of such interests by operation of law shall be
recognized or given effect until the Corporation and the Escrow Agent shall have
received written notice of such assignment or transfer.

    

    2.5 Fractional
Shares.  No fractional shares of Common Stock or other
securities shall be retained in or released from the Escrow Account pursuant to
this Agreement.  In connection with any release of Escrow Shares from
the Escrow Account, the Corporation and the Escrow Agent shall be permitted to
“round down” or to follow such other rounding procedures as the Corporation
reasonably determines to be appropriate in order to avoid retaining any
fractional shares in the Escrow Account and in order to avoid releasing any
fractional shares from the Escrow Account.

    

    2.6 Trust Fund.  The
Escrow Fund shall be held as a trust fund and shall not be subject to any lien,
attachment, trustee process or any other judicial process of any creditor of the
Subscriber or of any party hereto.  The Escrow Agent shall hold and
safeguard the Escrow Fund until the Termination Date.

    

    Section
3.  Release of
Escrow Shares.

    

    3.1 Within five business
days after each Milestone Date (as defined below), the Escrow Agent shall
distribute or cause to be distributed to the Subscriber at its business address
25% of the original number of Escrow Shares (or other property held in the
Escrow Account), if any, held on such Milestone Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    3.2 The distributions
described in Section 3.1 above shall occur on the following dates (each a “Milestone
Date”):

    

    (a)           The
date of the first commercial sale of a Licensed Product in the United
States.

    

    (b)           The
date of the first commercial sale of a Licensed Product in the European
Union.

    

    (c)           The
date 30 days after the end of the first calendar quarter during which aggregate,
lifetime Net Sales of all Licensed Products exceed $200,000,000.

    

    (d)           The
date 30 days after the end of the first calendar quarter during which aggregate,
lifetime Net Sales of all Licensed Products exceed $500,000,000.

    

    3.3 If any Escrowed
Shares (or other property held in the Escrow Account) have not been delivered to
the Subscriber pursuant to Section 3.1 by December 31, 2022 (or, subject to
Section 6, such earlier date if the License Agreement is terminated), the Escrow
Agent shall, on such date, distribute or cause to be distributed to the
Corporation at its business address the total number of such Escrow Shares (or
other property held in the Escrow Account) for cancellation.  The
Subscriber will have no further right, title or interest to such Escrowed Shares
distributed to the Corporation in accordance with this Section 3.3.

    

    3.4 The Escrow Agent is
not the stock transfer agent for the Common Stock.  Accordingly,
whenever a distribution of a number of shares of Common Stock is to be made, the
Escrow Agent must requisition the appropriate number of shares from such stock
transfer agent, delivering to it the appropriate stock
certificates.  For purposes of this Agreement, the Escrow Agent shall
be deemed to have delivered Common Stock to the Subscriber when the Escrow Agent
has delivered such certificates to such stock transfer agent with instructions
to deliver it to the Subscriber.

    

    Section
4. Stock Splits.

    

    4.1 All numbers contained
in, and all calculations required to be made pursuant to, this Agreement with
respect to the Escrow Shares shall be adjusted as appropriate to reflect any
stock split, reverse stock split, stock dividend or similar transaction effected
by the Corporation after the date hereof.

    

    Section
5. Limitation of Escrow Agent’s Liability.

    

    5.1 The Escrow Agent
undertakes to perform such duties as are specifically set forth in this
Agreement only and shall have no duty under any other agreement or document, and
no implied covenants or obligations shall be read into this Agreement against
the Escrow Agent.  The Escrow Agent shall incur no liability with
respect to any action taken by him or for any inaction on his part in reliance
upon any notice, direction, instruction, consent, statement or other document
believed by him in good faith to be genuine and duly authorized, nor for any
other action or inaction except for his own gross negligence or willful
misconduct.  In all questions arising under this Agreement, the Escrow
Agent may rely on the advice of counsel, and for anything done, omitted or
suffered in good faith by the Escrow Agent based upon such advice the Escrow
Agent shall not be liable to anyone.  In no event shall the Escrow
Agent be liable for incidental, punitive or consequential damages, except for in
the case of gross negligence or willful misconduct by the Escrow
Agent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    5.2 The Corporation and
the Subscriber hereby agree to indemnify the Escrow Agent for, and hold him
harmless against, any loss, liability or expense incurred without negligence or
willful misconduct on the part of Escrow Agent, arising out of or in connection
with the Escrow Agent carrying out his duties hereunder.  This right
of indemnification, compensation and reimbursement shall survive the termination
of this Agreement, and the resignation of the Escrow Agent.

    

    Section
6. Termination.  This
Agreement shall terminate on the Termination Date.  The “Termination
Date” shall be the earlier of (i) the date that all Escrowed Shares have
been released and distributed to either the Subscriber or the Corporation in
accordance with Section 3 above or the (ii) the termination of the License
Agreement.  Notwithstanding the foregoing, if the License Agreement is
terminated by the Corporation pursuant to Article 11.4 of the License Agreement,
then this Agreement shall survive such termination until the date described in
clause (i) of the preceding sentence; provided, that Escrowed Shares shall
continue to be released and distributed in accordance with Section 3 hereof
solely with respect to products the manufacture, use or sale of which would
infringe one or more issued patents licensed pursuant to the Exclusive License
and Consulting Agreement between Subscriber and Hans-Dietrich Polaschegg, dated
as of April 29, 2005.

    

    Section
7. Successor Escrow
Agent.  In the event the individual serving as Escrow Agent is
no longer serving as the secretary of the Corporation, or if the Escrow Agent
becomes unavailable or unwilling to continue as escrow agent under this
Agreement, the Escrow Agent may resign and be discharged from his duties and
obligations hereunder by giving his written resignation to the parties to this
Agreement.  Such resignation shall take effect not less than 30 days
after it is given to all parties hereto.  In any such event, the
Corporation may appoint a successor Escrow Agent, who may be the successor
secretary of the Corporation, if applicable.  The successor Escrow
Agent shall, without further acts, be vested with all the estates, property
rights, powers and duties of the predecessor Escrow Agent as if originally named
as Escrow Agent herein.  The Escrow Agent shall act in accordance with
written instructions from the Corporation as to the transfer of the Escrow Fund
to a successor escrow agent.

    

    Section
8. Miscellaneous.

    

    8.1 Attorneys’ Fees.  In
any action at law or suit in equity to enforce or interpret this Agreement or
the rights of any of the parties hereunder, the prevailing party in such action
or suit shall be entitled to receive a reasonable sum for its attorneys’ fees
and all other reasonable costs and expenses incurred in such action or
suit.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    8.2 Notices.  Any notice
or other communication required or permitted to be delivered to any party under
this Agreement shall be in writing and shall be deemed properly delivered, given
and received (a) when delivered by hand, or (b) two business days after sent by
registered mail or, by courier or express delivery service, or by facsimile, to
the address or facsimile telephone number set forth below (or to such other
address or facsimile telephone number as such party shall have specified in a
written notice given to the other parties hereto):

    

    if
to the Corporation:

    

    CorMedix,
Inc.

    86 Summit
Avenue, Suite 301

    Summit,
NJ 07901

    Attn:
President

    

    Telephone:
(908) 517-9500

    Facsimile:
(908) 522-9199

    

    if
to the Subscriber:

    

    ND
Partners LLC

    One Joy
Street

    Boston,
MA 02108

    Attention:  Anastasios
Parafestas

    

    With a copy to:

    

    BRL Law Group LLC

    31 St. James Avenue, Suite
850

    Boston, MA 02116

    

    Telephone:  (617)
399-6931

    Facsimile:  (617)
399-6930

    

    if
to the Escrow Agent:

    

    Corporate
Secretary

    CorMedix,
Inc.

    86 Summit
Avenue, Suite 301

    Summit,
NJ 07901

    Attention:
Secretary

    

    Telephone:
(212) 554-4388

    Facsimile:
(908) 522-9199

    

    With a
copy to:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
Paramount
BioSciences, LLC

    787
Seventh Avenue

    48th
Floor

    New York,
NY 10019

    Attention:
Tim Hofer

    

    Telephone:
(212) 489-0428

    

    8.3 Headings.  The
bold-faced headings contained in this Agreement are for convenience of reference
only, shall not be deemed to be a part of this Agreement and shall not be
referred to in connection with the construction or interpretation of this
Agreement.

    

    8.4 Counterparts.  This
Agreement may be executed in several counterparts, each of which shall
constitute an original and all of which, when taken together, shall constitute
one agreement.

    

    8.5 Applicable Law;
Jurisdiction.  This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York, regardless of the laws that might otherwise govern under
applicable principles of conflicts of laws thereof.  In any action
between the parties arising out of or relating to this Agreement or any of the
transactions contemplated by this Agreement: (a) each of the parties
irrevocably and unconditionally consents and submits to the exclusive
jurisdiction and venue of the state and federal courts located in the Borough of
Manhattan, County of New York; (b) if any such action is commenced in a state
court, then, subject to applicable law, no party shall object to the removal of
such action to any federal court located in the Borough of Manhattan, County of
New York; (c) each of the parties irrevocably waives the right to trial by jury;
and (d) each of the parties irrevocably consents to service of process by first
class certified mail, return receipt requested, postage prepaid, to the address
at which such party is to receive notice in accordance with Section
8.2.

    

    8.6 Successors and Assigns.  This
Agreement shall be binding upon and shall inure to the benefit of each of the
parties hereto and each of their respective permitted successors and assigns, if
any.  The Subscriber may not assign its rights under this Agreement
without the express prior written consent of the Corporation, and any attempted
assignment of this Agreement or any of such rights by the Subscriber without
such consent shall be void and of no effect.

    

    8.7 Waiver.  No
failure on the part of any party to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of any party in exercising
any power, right, privilege or remedy under this Agreement, shall operate as a
waiver of such power, right, privilege or remedy; and no single or partial
exercise of any such power, right, privilege or remedy shall preclude any other
or further exercise thereof or of any other power, right, privilege or
remedy.  No party shall be deemed to have waived any claim arising out
of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is
expressly set forth in a written instrument duly executed and delivered on
behalf of such party; and any such waiver shall not be applicable or have any
effect except in the specific instance in which it is given.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    8.8 Amendment.  This
Agreement may not be amended, modified, altered or supplemented other than by
means of a written instrument duly executed and delivered on behalf of all of
the parties hereto.

    

    8.9 Severability.  Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.  If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is invalid or
unenforceable, the parties hereto agree that the court making such determination
shall have the power to limit the term or provision, to delete specific words or
phrases, or to replace any invalid or unenforceable term or provision with a
term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision, and
this Agreement shall be enforceable as so modified.  In the event such
court does not exercise the power granted to it in the prior sentence, the
parties hereto agree to replace such invalid or unenforceable term or provision
with a valid and enforceable term or provision that will achieve, to the extent
possible, the economic, business and other purposes of such invalid or
unenforceable term.

    

    8.10 Parties in Interest. Except
as expressly provided herein, none of the provisions of this Agreement, express
or implied, is intended to provide any rights or remedies to any person other
than the parties hereto and their respective successors and assigns, if
any.

    

    8.11 Entire Agreement.  This
Agreement and the other agreements referred to herein set forth the entire
understanding of the parties hereto relating to the subject matter hereof and
supersede all prior agreements and understandings among or between any of the
parties relating to the subject matter hereof.

    

    8.12 Waiver of Jury
Trial.  Each of the parties hereto hereby irrevocably waives
any and all right to trial by jury in any action arising out of or related to
this Agreement or the transactions contemplated hereby.

    

    8.13 Tax
Reporting Information and Certification of Tax Identification
Numbers.

    

    (a) The parties hereto
agree that, for tax reporting purposes, all interest on or other income, if any,
attributable to the Escrow Fund or any other amount held in escrow by the Escrow
Agent pursuant to this Agreement shall be allocable to the
Subscriber.

    

    (b) The Corporation and
the Subscriber agree to provide the Escrow Agent with certified tax
identification numbers for each of them by furnishing appropriate forms W-9 (or
Forms W-8, in the case of non-U.S. persons) and any other forms and documents
that the Escrow Agent may reasonably request (collectively, “Tax Reporting
Documentation”) to the Escrow Agent within 30 days after the date
hereof.  The parties hereto understand that, if such Tax Reporting
Documentation is not so furnished to the Escrow Agent, the Escrow Agent shall be
required by the Code to withhold a portion of any interest or other income
earned on the investment of monies or other property held by the Escrow Agent
pursuant to this Agreement, and to immediately remit such withholding to the
Internal Revenue Service.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    8.14 Cooperation.  The
Subscriber agrees to cooperate fully with the Corporation and the Escrow Agent
and to execute and deliver such further documents, certificates, agreements and
instruments and to take such other actions as may be reasonably requested by the
Corporation or the Escrow Agent to evidence or reflect the transactions
contemplated by this Agreement and to carry out the intent and purposes of this
Agreement.

    

    8.15 Construction.

    

    (a) For purposes of this
Agreement, whenever the context requires: the singular number shall include the
plural, and vice versa; the masculine gender shall include the feminine and
neuter genders; the feminine gender shall include the masculine and neuter
genders; and the neuter gender shall include masculine and feminine
genders.

    

    (b) The parties hereto
agree that any rule of construction to the effect that ambiguities are to be
resolved against the drafting party shall not be applied in the construction or
interpretation of this Agreement.

    

    (c) As used in this
Agreement, the words “include” and “including,” and variations thereof, shall
not be deemed to be terms of limitation, but rather shall be deemed to be
followed by the words “without limitation.”

    

    (d) Except as otherwise
indicated, all references in this Agreement to “Sections” and “Exhibits” are
intended to refer to Sections of this Agreement and Exhibits to this
Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    In Witness
Whereof, the parties have duly caused this Agreement to be executed as of
the day and year first above written.

     

     

    
      
        
          	 
      	
                  Corporation:

                
	 
      	 
      
	 
      	 
      
	 
      	
                  CORMEDIX,
      INC.

                
	 
      	 
      
	 
      	
                  By:
       /s/ Bruce
      Cooper                                           
      

                
	 
      	
                  Name: Bruce
      Cooper                                            
       

                
	 
      	
                  Title: CEO                                                               
      

                
	  	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  Subscriber:

                
	 
      	 
      
	 
      	 
      
	 
      	
                  ND
      PARTNERS LLC

                
	 	 
	 
      	
                  
                    By:   /s/ Anastasios
      Parafestas                     
      

                  

                
	 
      	
                  Anastasios
      Parafestas, managing member 

                  of
      Spinnaker Capital, LLC, the managing 

                  member
      of ND Partners LLC

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  Escrow
      Agent:

                
	 
      	 
      
	 
      	 
      
	 
      	
                  SECRETARY, CORMEDIX,
    INC.

                
	 
      	 
      
	 
      	
                  
                    By:  /s/ Timothy
      Hofer                                       
      

                  

                
	 
      	
                  Name: Timothy
      Hofer                                         
      

                
	 
      	
                  
                    Title: 
      Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]