Document:

exv10w25

 

Exhibit 10.25

     THIS FIRST ALLONGE TO PROMISSORY NOTE (“Allonge”), is effective the
18th day of August, 1998, by and between METAMORPHIX, INC. (the “Maker”)
and GENETICS INSTITUTE, INC. (the “Lender”).

     WHEREAS, on or about February 9, 1998 the Maker executed and delivered a Promissory note
(the “Note”) to Lender in the original principal sum of Two Million Dollars ($2,000,000),
which Note is repayable by the Maker to the Lender in accordance with the terms set forth
therein; and

     WHEREAS, the Maker has requested that the Lender advance to Maker an additional Two
Hundred Thousand Dollars ($200,000) pursuant to the same terms as set
forth in the Note and
Lender has agreed, provided that the Maker agrees to the execution of this Allonge; wherefore
Maker and Lender now agree to modify the Note as follows:

     1. The Principal Sum due and owing on account of the Note as of the date of the execution
of this Allonge is Two Million Two Hundred Thousand Dollars ($2,200,000), plus any and all
interest that has accrued in accordance with the terms of the Note; and

     2. The
parties hereto do not intend that a novation of the loan shall be created or
effectuated because of the modification described herein. The parties hereto do not intend
that the execution of this Allonge and the transaction described herein shall affect the
validity or priority of any lien or security interest imposed by or granted in the Promissory
Note.

     3. All other terms, covenants, and conditions contained in the Note, except as herein
modified, shall remain in full force and effect and the Maker by the execution hereof hereby
ratifies and confirms each and every other term, covenant, and condition of the Note.

     IN WITNESS WHEREOF, the parties hereto have set their hands and seals to this First
Allonge to Promissory Note upon the day herein above first written.

	 	 	 	 	 
	SEAL
	 	 	 	 
	WITNESS
	 	 	 	 
	 
	 	 	 	 
	 	 	METAMORPHIX, INC.
	 
	 	 	 	 
	/s/ William E. Carlson
	 	By:	 	/s/ Edwin C. Quattlebaum

	 	 	 	 	 
	William E. Carlson

	 	 	 	Edwin C. Quattlebaum
	Secretary

	 	 	 	Executive Vice President of
	

	 	 	 	Agriculture and Interim
	

	 	 	 	President
	 
	 	 	 	 
	ATTEST/WITNESS	 	GENETICS INSTITUTE, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ Richard P. Shea
	 	 	 	 	 
	
	 	 	 	Name: Richard P. Shea
	

	 	 	 	Title: VP Financeexv10w26

 

Exhibit 10.26

     THIS SECOND ALLONGE TO PROMISSORY NOTE (“Second Allonge”), is effective the
30th day of October, 1998, by and between METAMORPHIX, INC. (the “Maker”)
and GENETICS INSTITUTE, INC. (the “Lender”).

     WHEREAS,
on or about February 9, 1998 the Maker executed and delivered a Promissory Note
(the “Note”) to Lender in the original principal sum of Two Million Dollars ($2,000,000), which
is repayable by the Maker to the Lender on demand at any time after December 31, 1998 (“Original
Demand Date”) and which, in the event certain conditions are met, provides for the conversion of
the debt represented by the Note to equity on or before December 31, 1998 (“Original Conversion
Date”); and

     WHEREAS, on or about August 18, 1998 the Maker executed and delivered a First Allonge to
Promissory Note (“First Allonge”) to Lender modifying the Note such that the principal sum due
and owing on account of a Note as of the date of the First Allonge was, and is, Two Million Two
Hundred Thousand Dollars ($2,200,000), plus any and all interest that has accrued in accordance
with the terms of the Note; and,

     WHEREAS, the Maker has requested, and Lender has agreed, to extend the Original Demand Date
and the Original Conversion, provided that the Maker agrees to the execution of this Second
Allonge; wherefore Maker and Lender now agree to modify the Note and First Allonge as follows:

     1. The principal sum, plus any and all interest that has accrued in accordance with the
terms of the Note, shall be paid by Maker to Lender on demand at any time after June 30, 1999 (“New
Demand Date”); and

     2. The debt created by this Note, and the payment of principal and interest, shall be
subordinate to any new debt (the “Bridge Loan”) incurred by the Maker, up to the amount of One
Million Dollars ($1,000,000), if:

(a) Such Bridge Loan is incurred subsequent to the date of this Second Allonge and
prior to February 28, 1999; and

(b) Such Bridge Loan is created by Promissory Notes, convertible or otherwise, in
an aggregate amount of at least Two Hundred and Fifty Thousand Dollars
($250,000) and not exceeding One Million Dollars ($1,000,00); and

(c) The proceeds of such may be used for working capital

     3. In the event that Maker closes an equity financing in which it raises at least Two Million
Dollars ($2,000,000) from investors other than the Lender on or before June 30, 1999 (“New
Conversion Date”) in a transaction approved by Maker’s Board of Directors, the unpaid principal
balance of the Note, plus any and all interest that has accrued in accordance with the terms of the
note, shall be converted into fully paid and non-assessable shares of the capital stock of Maker
issued in connection with such equity financing, concurrently with the first closing of such equity
financing, at the same price as is paid by the investors in such financing.

     4. The parties hereto do not intend that a novation of the loan shall be created or
effectuated because of the modification described herein. The parties hereto do not intend that the
execution of this Second Allonge and the transaction described herein shall affect the validity or
priority of any lien or security interest imposed by or granted in the Promissory Note. This Second
Allonge (a) is being physically attached to the Note and the First Allonge simultaneously with the
entry into this Second

 

 

Allonge by the parties hereto to evidence the modification of the provisions of the Note and
the First Allonge, and (b) shall upon such attachment be deemed to be a part of the Note
and First Allonge as fully and completely as if the provisions were set forth at length in the body
of the Note and First Allonge.

     5. All other terms, covenants, and conditions contained in the Note, except as herein
modified, shall remain in full force and effect and the Maker by the execution hereof hereby
ratifies and confirms each and every other term, covenant, and condition of the Note.

     IN WITNESS WHEREOF, the parties hereto have set their hands and seals to this Second Allonge
to Promissory Note upon the day hereinabove first written.

	 	 	 	 	 
	[SEAL}
	 	 	 	 
	 
	 	 	 	 
	WITNESS:	 	METAMORPHIX, INC.
	 
	 	 	 	 
	/s/ William E. Carlson

	 	By:
	 	/s/ Edwin C. Quattlebaum
	 	 	 	 	 
	William E. Carlson

	 	 	 	Edwin C. Quattlebaum
	Secretary

	 	 	 	President & CEO
	 
	 	 	 	 
	ATTEST/WITNESS:	 	GENETICS INSTITUTE, INC.
	 
	 	 	 	 
	/s/ Bruce Leicher

	 	By:
	 	/s/ Richard P Shea
	 	 	 	 	 
	Bruce Leicher

	 	 	 	Name: Richard P Shea
	VP Law

	 	 	 	Title: VP Financeexv10w27

 

Exhibit 10.27

THIRD ALLONGE TO PROMISSORY NOTE

     THIS THIRD ALLONGE TO PROMISSORY NOTE (“Third Allonge”), is effective the
26th day of January, 1999, by and between METAMORPHIX, INC., a Delaware
Corporation (the “Maker”) and GENETICS INSTITUTE, INC. a Delaware Corporation (the “Lender”).

     WHEREAS, on or about February 9, 1998 the Maker executed and delivered a Promissory Note (the
“Original Note”) to Lender in the original principal sum of Two Million
Dollars ($2,000,000), which is repayable by the Maker to the Lender on demand at any time after
December 31, 1998 (“Original Demand Date”) and which, in the event certain conditions are met,
provides for the conversion of the debt represented by the Note to equity on or before December
31, 1998 (“Original Conversion Date”); and

     WHEREAS, on or about August 18, 1998 the Maker executed and delivered a First Allonge to
Promissory Note (“First Allonge”) to Lender modifying the Note such that the principal sum due and
owing on account of the Note as of the date of the First Allonge was, and is, Two Million Two
Hundred Thousand Dollars ($2,200,000), plus any and all interest that has accrued in accordance
with the terms of the Note; and

     WHEREAS, on or about October 30, 1998 the Maker executed and delivered a Second Allonge to
Promissory Note (“Second Allonge”) to Lender modifying the Note, as modified by the First Allonge,
such that: (1) the principal sum, plus any and all interest, was to be paid by Maker to Lender on
demand at any time on or after June 30, 1999 (the “Second Demand Date”); (2) the debt created by
the Note, and the payment of principal and interest thereunder, was, and is, to be subordinate to
any new debt incurred by Maker up to One Million Dollars ($1,000,000) provided that
certain conditions were, and are, met; and (3) if Maker closed an equity financing such that it
raised Two Million Dollars ($2,000,000) from investors other than the Lender on or before June 30,
1999 (the “Second Conversion Date”) in a transaction approved by Maker’s Board of Directors, the
unpaid principal balance of the Note, plus any and all interest, was to be converted into fully
paid and non-assessable shares of the capital stock of Maker issued in connection with such equity
financing, concurrently with the first closing of such equity financing, at the same price as is
paid by the investors in such financing; and

     WHEREAS, as of December 31, 1998, Two Million Two Hundred Thousand Dollars ($2,200,000)
remains unpaid and One Hundred Fifty-Three Thousand Six Hundred Ninety-Two Dollars and
Seventy-Four Cents ($153,692.74) of interest has accrued and remains unpaid; and

     WHEREAS, the Maker has requested, and Lender has agreed, to extend the Second Demand Date
and, in effect, to eliminate the Second Conversion Date, provided that the Maker agrees to the
execution of this Third Allonge; wherefore Maker and Lender now agree to modify the Original Note,
as modified by the First and Second Allonges and now this Third Allonge (hereinafter collectively
the “Note”), as follows:

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     1. The Maker may prepay the principal sum, plus any and all interest that has accrued in
accordance with the terms of the Note, in part or in whole, at any time without penalty; and

     2. The principal sum, plus any and all interest that has accrued in accordance with the terms
of the Note, shall be paid by Maker to Lender, without any notice or demand on January 1, 2005
("Third Due Date”), if not sooner paid; and

     3. Upon the Third Due Date, in lieu of a payment of cash, the Maker may pay the principal
balance of the Note, plus any and all interest that has accrued in accordance with the terms of the
Note, by issuing to Lender fully paid and non-assessable shares of the common stock of
Maker, if such stock is then publicly traded, at the then market price of such stock, calculated at
the average closing price for the ten (10) trading days up to and including the fifth
(5th) trading day preceding the Third Due Date.

     4. At the Lender’s sole election, on or before December 31, 2004, provided that the Lender has
provided the Maker with at least ninety (90) days prior written notice of such election, the Lender
may convert the outstanding principal and interest under this Note into fully paid and
non-assessable shares of common stock of the Maker, at a per share price valued at either (a) one
hundred twenty-five percent (125%) of the IPO price if the stock is then publicly traded, or (b) a
price to be negotiated in good faith by the Maker and the Lender if the stock is not then publicly
traded. This right of conversion is personal to Genetics, Institute, Inc. and may not be assigned
except upon full transfer and assignment of this Note. to American Home Products Corporation or
other affiliate of Genetics Institute, Inc.

     5. In the event of a stock issuance under either Paragraphs 3 or 4 of this Third Allonge, no
fractional shares of the common stock shall be issuable upon conversion of this Note, but
an adjustment in cash shall be made in respect of any fraction of a share which
would otherwise be issuable upon the surrender of this Note for conversion.

     6. The third and fourth paragraphs of this Original Note, i.e., the provisions for automatic
conversion upon a certain equity financing, are hereafter null and void and of no effect.

     7. The parties hereto do not intend that a novation of the loan shall be created or
effectuated because of the modifications described in this Third Allonge. The parties in this Third
Allonge do not intend that the execution of this Third Allonge and the transaction described herein
shall affect the validity or priority of any indebtedness created by the Note. This Third Allonge
(a) is being physically attached to the Note simultaneously with the entry into this Third Allonge
by the parties hereto to evidence the modification of the provisions of the Note and (b) shall upon
such attachment be deemed to be apart of the Note as fully and completely as if the provisions were
set forth at length in the body of the Note.

Page 2 of 3

 

     8. All other terms, covenants, and conditions contained in the Note, except as herein
modified, shall remain in full force and effect and the Maker by the execution hereof hereby
ratifies and confirms each and every other term, covenant, and condition of the Note.

     IN WITNESS WHEREOF, the Maker and the Lender have set their hands and seals to this Third
Allonge to Promissory Note upon the day hereinabove first written.

	 	 	 	 	 	 	 
	[SEAL],
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ATTEST:	 	METAMORPHIX, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ William
          E. Carlson 
	 	By:
	 	/s/ Edwin C. Quattlebaum, Ph.D	 	(SEAL)
	 	 	 	 	 	 	 
	William E. Carlson	 	Edwin C. Quattlebaum, Ph.D	 	 
	Secretary	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	WITNESS/ATTEST:	 	GENETICS INSTITUTE, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Katherine Turner	 	(SEAL)
	 	 	 	 	 	 	 
	 	 	Name: Katherine Turner	 	 
	 	 	Title: Vice President	 	 

Page 3 of 3

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