Document:

EX-10.3

 Exhibit 10.3 

THIS 12% SENIOR SECURED NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED (A) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THIS NOTE
UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAW, (B) IN THE ABSENCE OF AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO INSITE VISION INCORPORATED, THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS OR (C) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT. 
 INSITE VISION INCORPORATED

 12% SENIOR SECURED NOTE 
  

			
	$[amount]	  	[            , 201    ]

FOR VALUE RECEIVED, InSite Vision Incorporated, a Delaware corporation (the “Maker”), promises to pay to the order of [name]
(the “Holder”), at [            ], the principal sum of $[amount] together with all accrued interest thereon, upon the terms and conditions specified below. This
Note is issued pursuant to the terms of the Securities Purchase Agreement dated as of October 6, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), among the Maker,
Riverbank Capital Securities, Inc. and the purchasers party thereto (collectively, the “Holders”). This Note is secured pursuant to the Security Agreement dated as of October 9, 2014 (as amended, restated, supplemented or
otherwise modified from time to time, the “Security Agreement” and, together with the Purchase Agreement, the “Reference Agreements”), made by the Maker in favor of the Holders and US Bank National Association, as
collateral agent (in such capacity, the “Collateral Agent”) for the Purchasers (as defined in the Purchase Agreement). 
 1.
Loan Proceeds. The Maker shall use the proceeds of this Note for general corporate purposes. 
 2. Due Date. Unless earlier
accelerated pursuant to the terms hereof, this Note matures and the outstanding principal balance of this Note together with all accrued and unpaid interest hereunder becomes due and payable in a lump sum on
[            , 201    ]1 (the “Maturity Date”); provided that if the Maker
delivers written notice to the Holder at any time not less than 15 days prior to the Maturity Date stating that the Maker has elected to extend the term of this Note effective as of the Maturity Date, this Note instead matures and the outstanding
principal balance of this Note together with all accrued and unpaid interest hereunder becomes due and payable in a lump sum on [            , 201    ]2 (the “Extended Maturity Date”). 
  

1 One year from date of issuance. 

2 Two years from date of issuance. 

 3. Interest. Interest accrues on the unpaid balance outstanding from time to time under
this Note at the rate of 12% per annum until the Maturity Date; provided that (a) if the term of this Note is extended by the Maker pursuant to Section 2, then from and after the Maturity Date to and including the
Extended Maturity Date, interest accrues on the unpaid balance outstanding from time to time under this Note at the rate of 14% per annum and (b), upon an Event of Acceleration, at the written election of the Majority Holders (as defined in the
Purchase Agreement), any outstanding principal amount and accrued but unpaid interest bears interest at the rate of 20% per annum from the date of such Event of Acceleration. All computations of interest are made on the basis of a year of 365
days for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is payable. Accrued and unpaid interest is due and payable semi-annually on
[            ]3 and [            ]4, and semi-annually thereafter, and at the maturity of this Note. In no event will the interest rate payable under this Note exceed the maximum rate of interest permitted to be charged under
applicable law. If the rate of interest payable under this Note is ever reduced as a result of the preceding sentence and at any time thereafter the maximum rate permitted by applicable law exceeds such reduced rate of interest then provided for
hereunder, then the rate provided for hereunder will be increased to a rate not to exceed the maximum rate permitted by applicable law at such time, such that the total amount of interest received by the Holder is equal to or as nearly equal to the
amount provided for in the first sentence of this Section 3 as applicable law permits. 
 4. Payment. Payment shall be
made in lawful tender of the United States and shall be applied first to the payment of all accrued and unpaid interest and then to the payment of principal. Subject to Sections 8 and 9, prepayment of the principal balance of this
Note, together with all accrued and unpaid interest on the portion of principal so prepaid, may be made in whole or in part at any time without penalty. 

5. Covenants. The Maker covenants and agrees that until this Note is paid in full it shall: 

 

	 	(A)	promptly after the occurrence of an Event of Acceleration (as defined below) or an event, act or condition that, with notice or lapse of time or both, would constitute an Event of Acceleration, provide the Holder and
Collateral Agent with a certificate of the chief executive officer or chief financial officer of the Maker specifying the nature of such event, act or condition and the Maker’s proposed cure thereto; 

 

	 	(B)	not, without the written consent of the Majority Holders (i) incur any indebtedness for money borrowed, other than indebtedness (a) in an aggregate amount not to exceed $100,000, (b) owing to a seller
incurred solely for the purpose of financing the purchase price of an asset of a type customarily purchased by the Maker acquired from such seller or (c) that is subordinated to this Note in a manner reasonably satisfactory to the Holder or
(ii) grant, or permit to be created, any lien other than the security interests created under the Security Agreement and any security interest which would constitute a Permitted Lien (as defined in the Security Agreement); 

 
 3 Last day of the sixth month after issuance. 

4 Last day of the twelfth month after issuance. 

  
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	 	(C)	not, without the prior written consent of the Majority Holders, directly or indirectly (i) purchase, redeem, retire or otherwise acquire for value any of its capital stock or other securities now or hereafter
outstanding, return any capital to its stockholders (other than the repurchase at cost of shares of unvested or restricted stock as permitted under the Company’s stock option or stock purchase plan upon termination of employment or service), or
distribute any of its assets to its stockholders or (ii) make any payment or declare any dividend on any of its capital stock or other securities; 

  

	 	(D)	not, without the prior written consent of the Majority Holders, change its primary line of business from that conducted by it as of the date hereof; or 

 

	 	(E)	not make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement,
understanding, loan, advance or guaranty with, or for the benefit of, any Affiliate (as defined in the Purchase Agreement) of the Maker, other than on terms and conditions at least as favorable to the Maker, as applicable, as would reasonably be
obtained by the Maker at that time in a comparable arm’s-length transaction with a Person (as defined in the Purchase Agreement) other than an Affiliate. 

6. Events of Acceleration. The entire unpaid principal balance of this Note, together with all accrued and unpaid interest, becomes
immediately due and payable prior to the specified due date of this Note upon the occurrence of one or more of the following events (each an “Event of Acceleration”): 

 

	 	(A)	the Maker fails to make any payment of principal or interest due under this Note; provided that such occurrence is not an Event of Acceleration unless such condition remains uncured at the end of the third
business day after such payment is due, other than payments due upon maturity which is an Event of Acceleration immediately upon such failure; 

  

	 	(B)	the Maker fails to observe or perform, in any material respects, any term or provision of this Note or any Reference Agreement; provided that such occurrence is not an Event of Acceleration unless such condition
remains uncured at the end of the 10th day after the earlier of (i) written notice from any Holder (or the Collateral Agent) of the occurrence of such failure and (ii) the Holder’s
receipt of written notice from the Maker of the occurrence of such event in accordance with Section 6(H); provided that if such failure cannot by its nature be cured within the ten day period or cannot after diligent attempts by
the Maker be cured within such ten day period, and such failure is likely to be cured within a reasonable time, then the Maker will have an additional period (not in any case to exceed 30 days) to attempt to cure such failure, and within such
reasonable time period the failure to cure such failure is not an Event of Acceleration; 

  
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	 	(C)	any representations or warranties of the Maker in any of the Reference Agreements is found to be untrue or incorrect and the effect of which has a material adverse effect on the business or operations of the Maker or
impairs the ability of the Maker to repay this Note on the Maturity Date or the Extended Maturity Date, as the case may be; 

  

	 	(D)	pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state law relating to insolvency or relief of debtors (a “Bankruptcy Law”), the Maker (i) commences a
voluntary case or proceeding, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a trustee, receiver, assignee, liquidator or similar official, (iv) makes an
assignment for the benefit of its creditors or (v) admits in writing its inability generally to pay its debts as they become due; 

  

	 	(E)	a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Maker in an involuntary case, (ii) appoints a trustee, receiver, assignee, liquidator or
similar official for the Maker or substantially all of the Maker’s properties or (iii) orders the liquidation of the Maker, and in each case the order or decree is not dismissed or stayed within 30 days; 

 

	 	(F)	any order, judgment or decree (other than in connection with any amounts payable to Chandler Dawson or his heirs or assigns) is entered against the Maker decreeing the dissolution or split-up of the Maker or any money
judgment in excess of $500,000 (exclusive of amounts covered by insurance or subject to indemnification by a person capable of fulfilling its indemnification obligations, for which the insurer or person providing indemnity has acknowledged
responsibility) and, in each case, the order, judgment or decree is not paid, dismissed or stayed within 60 days; 

  

	 	(G)	The occurrence of any event of acceleration or default under any other note issued or obligation for borrowed money with a principal amount in excess of $100,000 owed by Maker; or 

 

	 	(H)	the Maker fails to provide written notice to the Holders and Collateral Agent of the occurrence of any event set forth in this Section 6 within ten days of an officer of the Maker having knowledge of the
occurrence of such event. 

 7. Security. Payment of this Note is secured by a lien on the Collateral (as defined in the
Security Agreement) in accordance with the Security Agreement. The Maker remains liable for payment of this Note, and assets of the Maker, in addition to the Collateral under the Security Agreement, may be applied to the satisfaction of the
Maker’s obligations hereunder. In the case of any Event of Acceleration, the Holder, or the Collateral Agent on behalf of the Majority Holders, as applicable, has the rights set forth herein and as set forth in the Security Agreement. 

  
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 8. Optional Redemption. This Note may be redeemed by the Maker at any time upon 10 days
prior written notice to the Holder, in whole or in part, at a redemption price equal to 100% of the principal amount of this Note plus accrued but unpaid interest thereon (the “Redemption Price”); provided that if at the time of
such redemption a Subsequent Closing had occurred more than 210 days after the Initial Closing, then the Redemption Price for such redemption is increased by an amount equal to the interest that would have been payable to the Holder until the
Maturity Date or, if the Maker has elected to extend the term of this Note pursuant to Section 2, the Extended Maturity Date, in each case had such redemption not occurred. 

9. Mandatory Redemption. The Maker shall redeem this Note at the Redemption Price within ten days after the consummation of a Qualified
Financing or a Sale of Maker. For purposes hereof, (a) “Qualified Financing” means the closing of an equity financing or series of equity financings by the Maker resulting in aggregate gross cash proceeds (before commissions or
other expenses) to the Maker of at least $25,000,000 and (b) “Sale of Maker” means a transaction (or series of related transactions) between the Maker and one or more non-affiliates, pursuant to which such party or parties
acquire (i) capital stock of the Maker possessing the voting power to elect a majority of the board of directors of the Maker (whether by merger, consolidation, sale or transfer of the Maker’s capital stock or otherwise) or (ii) all
or substantially all of the Maker’s assets determined on a consolidated basis; provided that a transaction (or series of related transactions) pursuant to which the then-existing holders of the Maker’s capital stock immediately
prior to such transaction (or series of related transactions) continue to own, directly or indirectly, a majority of the outstanding shares of the capital stock of the Maker or such other resulting, surviving or combined company resulting from such
transaction (or series of related transactions) is not a Sale of Maker. 
 10. Transfer Restrictions. This Note is subject to transfer
restrictions as set forth in the Purchase Agreement. 
 11. Collection. If action is instituted to collect this Note, the Maker shall
pay all out-of-pocket costs and expenses (including reasonable attorney fees) incurred in connection with such action. 
 12. Amendment;
Waiver. Any modification, amendment or waiver of any term of this Note must be made in writing and signed by the Majority Holders and the Maker; provided that the Holders that do not consent to such modification, amendment or waiver will
be treated the same as the Holders that do consent to such modification, amendment or waiver. Any such modification, amendment or waiver shall be limited to its express terms. No delay by the Holder in acting with respect to the terms of this Note
constitutes a waiver of any breach, default, or failure of a condition under this Note. 
 13. Maker’s Waivers. The Maker waives
presentment, demand, notice of dishonor, notice of default or delinquency, notice of acceleration, notice of protest and nonpayment, notice of costs, expenses or losses and interest thereon, notice of interest on interest and diligence in taking any
action to collect any sums owing under this Note or in proceeding against any of the rights or interests in or to properties securing payment of this Note. 

  
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 14. Construction; Section Headings. This Note is the result of negotiations among, and has
been reviewed by the Holder, the Maker and their respective counsel. Accordingly, this Note is deemed to be the product of all parties hereto and no ambiguity may be construed in favor of or against the Holder or the Maker. The headings of Sections
in this Note are provided for convenience only and do not affect its construction or interpretation. All references to “Section” or “Sections” refer to the corresponding Section or Sections of this Note unless otherwise
specified. All words used in this Note are construed to be of such gender or number as the circumstances require. Unless otherwise expressly provided, the words “hereof and “hereunder” and similar references refer to this Note in its
entirety and not to any specific section or subsection hereof, the words “including” or “includes” do limit the preceding words or terms and the word “or” is used in the inclusive sense. 

15. Notices. All notices and other communications provided for hereunder must be delivered as provided in the Purchase Agreement. 

16. Governing Law. This Note is construed in accordance with the laws of the State of New York (including without limitation
Section 5-1401 of the General Obligations Law of the State of New York). 
 17. Severability. If any provision in this Note is
held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Note remain in full force and effect. Any provision of this Note held invalid or unenforceable only in part or degree remains in full force and effect
to the extent not held invalid or unenforceable. 
 18. Replacement of Note. Upon receipt by the Maker of evidence satisfactory to it
of the loss, theft, destruction or mutilation of this Note, and (in case of loss, theft or destruction) of indemnity reasonably satisfactory to it, and upon reimbursement to the Maker of all reasonable expenses incidental thereto, and (if mutilated)
upon surrender and cancellation of this Note, the Maker shall make and deliver to the Holder a new note of like tenor in lieu of this Note. Any replacement note made and delivered in accordance with this Section 18 will dated as of the
date hereof. 
 (Signature Page Follows) 

  
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 Executed and delivered as of the day and year and at the place first above written. 

 

			
	INSITE VISION INCORPORATED
		
	By:	 	 
	Name:	 	Timothy M. Ruane
	Title:	 	Chief Executive Officer

 [Signature Page to 12% Senior Secured Note]optionandstockpurchaseag

OPTIONS AND STOCK PURCHASE AGREEMENT   This Options and Stock Purchase Agreement dated effective as of October 10, 2014 (the   "Agreement") is by and between Magellan Petroleum Corporation, a Delaware corporation (the   "Company"), and William H, Hastings, a Falmouth, Maine resident (the "Seller").   RECITALS   WHEREAS, the Seller owns exercisable options previously granted under the   Company's 1998 Stock Incentive Plan, as amended, to purchase 1,512,500 shares of the   Company's common stock, par value $0.01 per share (the "Common Stock"), at an exercise   price of$1.20 per share (the "Options"), and 250,000 shares of Common Stock held in book   entry form in an individual retirement account for the benefit of the Seller (the "IRA Shares");   and   WHEREAS, the Seller wishes to sell such Options and IRA Shares to the Company, and   the Company wishes to purchase such Options and IRA Shares from the Seller, subject to the   terms and conditions set forth herein;   NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth   herein and for other good and valuable consideration, the receipt and sufficiency of which are   hereby acknowledged, the parties hereto agree as follows:   ARTICLE I   PURCHASE OF OPTIONS AND IRA SHARES   1.1 Purchase of Options and IRA Shares   Subject to the terms and conditions set forth herein, the Seller agrees to sell to the   Company, and the Company agrees to purchase from the Seller, the Options and the IRA Shares   at a total purchase price of$I,445,625.00 (the "Purchase Price").   1.2 Consideration to be Delivered   As promptly as reasonably practicable but in no event later than five business days after   the date of this Agreement, (i) the Company shall deliver to the Seller cash (pursuant to wire   transfer instructions to be furnished by the Seller) in the amount of the Purchase Price, without   interest and less applicable tax withholding with respect to the Options, and cancel the Options,   upon which cancellation the Seller shall no longer have any rights thereunder; and (ii) the Seller   shall irrevocably cause the IRA Shares to be delivered to the Company by book-entry transfer of   the IRA Shares to the Company. The Company shall not be obligated to wire transfer the   Purchase Price, without interest and less applicable tax withholding with respect to the Options,   to the Seller until the Company is able to confirm with Broadridge, the Company's stock transfer   agent, that the Seller has irrevocably caused the IRA Shares to be transferred from the Seller to   the Company (including the satisfaction by the Seller of any Medallion Signature Guarantee and   any other requirements by Broadridge to effect such transfer).   DMWEST#11351237 v3     

 

ARTICLE II   REPRESENTATIONS AND WARRANTIES   2.1 Representations and Warranties of the Company   The Company represents and warrants to the Seller that:   (a) This Agreement has been duly approved by all necessary corporate action by the   Company, has been duly executed and delivered by the Company, and is the legal, valid, and   binding obligation of the Company, enforceable against the Company in accordance with its   terms.   (b) The Company has had the opportunity to ask questions of and request information   and documents from the Seller concerning the Seller's ownership of the Options and the IRA   Shares and to receive corresponding answers, information, and documents from the Seller, and   the Company desires no further information from the Seller concerning the purchase of the   Options and the IRA Shares.   2.2 Representations and Warranties of the Seller   The Seller represents and warrants to the Company that:   (a) This Agreement has been duly approved by all necessary action by the Seller, has   been duly executed and delivered by the Seller, and is the legal, valid, and binding obligation of   the Seller, enforceable against the Seller in accordance with its terms.   (b) The Seller owns the Options and the IRA Shares free and clear of all liens,   encumbrances, security interests, pledges, charges, or claims, and the Seller has disclosed to the   Company all material facts relating to the Seller's ownership of the Options and the IRA Shares.   As a former executive officer and member of the Board of Directors of the Company, the Seller   is familiar with the Company and its business and has had the opportunity to ask questions of   and request information and documents from the Company concerning the Company, and to   receive corresponding answers, information, and documents from the Company, subject to an   agreement by the Seller to maintain the confidentiality of any material nonpublic information   about the Company or its securities and to use such information only in connection with the   transaction that is the subject of this Agreement, and the Seller desires no further information   from the Company concerning the sale of the Options and the IRA Shares.   3.1 Counterparts   ARTICLE III   MISCELLANEOUS   This Agreement may be executed in any number of counterparts, all of which taken   together shall constitute one and the same instrument, and any of the parties hereto may execute   this Agreement by signing any such counterpart. Executed signature pages hereto may be   delivered by email or fax transmission.   2     

 

3.2 Applicable Law and Venue   This Agreement shall be governed by, and construed in accordance with, the laws of the   State of Colorado, without giving effect to any conflicts oflaws principles thereof which would   result in the application of the laws of another jurisdiction, except that the Delaware General   Corporation Law shall govern as to matters of corporate law with respect to the Company. The   place of any mediation, arbitration, or judicial resolution of any dispute under this Agreement   shall be Denver, Colorado.   [Signature page follows 1   3     

 

IN WITNESS WHEREOF, the parties hereto have executed this Options and Stock   Purchase Agreement effective as of the date first above written.   COMPANY:   MAGELLAN PETROLEUM CORPORATION   ;:;~~:;.'~~~~~~~~==~~~----/" By:'   .... J. Thomas Wilson ~   President and Chief Executive Officer   SELLER:   By: __ ~~ ______ ~ ______________ __   William I-I. Hastings   4     

 

IN WITNESS WHEREOF, the parties hereto have executed this Options and Stock   Purchase Agreement effective as of the date first above written.   COMPANY:   MAGELLAN PETROLEUM CORPORATION   By: ________________________________ _   1. Thomas Wilson   President and Chief Executive Officer   SELLER:   By:   ----~+_--~~~~----_7+_-------   4

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