Document:

Exhibit 10.1

 

	 	 	 	 	 
		 	
        4 West 4th Ave., Suite 400

        

        San Mateo, CA 94402

         
	 	
        (650) 458-2670 Tel.

        (415) 875-7075 Fax

         

 

August 3, 2012

 

 

Darlene Horton, M.D.

[ADDRESS]

 

 

 

Dear Dr. Horton:

 

This letter (the “Letter”)
will confirm our understanding as to the terms of our offer of employment to you as President & Chief Executive Officer of
Nile Therapeutics, Inc. (“Nile” or the “Company”). Should you accept this position with Nile:

 

		1.	You will report to the Board of Directors of the Company (the “Board”), which may include reporting to its Chairman,
and you shall have such powers and perform such duties as are customarily performed by the President and Chief Executive Officer
of a similarly situated company. Your employment shall commence on August 6, 2012 (the “Commencement Date”). As of
the Commencement Date, you will also be appointed to serve as a director of the Company.

 

		2.	Beginning with the Commencement Date and until a Compensation Adjustment Event (as defined below) has occurred, you will receive
a monthly base salary (the “Base Salary”) equal to $28,314, paid in accordance with Nile’s normal payroll procedures.
In addition, if the Company completes a Change of Control Transaction (defined below) prior to the date of a Compensation Adjustment
Event, and your employment is terminated by the Company (or any successor entity) without “cause” during the period
beginning on the effective date of the Change of Control Transaction and ending on the six-month anniversary of such effective
date, then you will be entitled to receive a cash payment equal to 5% of the applicable Change of Control Proceeds (defined below).

 

		3.	If you remain employed by the Company as of the date of a Compensation Adjustment Event, then your compensation shall automatically
be modified as follows:

 

(a) Your annualized Base Salary shall be increased
to $400,000.

 

(b) You shall be eligible to receive an annual
performance target bonus in an amount equal to 30% of your annualized Base Salary (“Annual Bonus”). The actual amount
of Annual Bonus awarded to you each year shall be based upon the achievement of performance criteria to be annually determined
by the Board (or a committee thereof) in its discretion.

 

(c)You shall be entitled to a stock option award,
pursuant to the Company’s Amended & Restated 2005 Stock Option Plan (the “Plan”), to purchase a number of
shares of the Company’s common stock equal to 5% of the then issued and outstanding shares of common stock (the “Option”)
at an exercise price equal to the current market price of the Company’s common stock on the date of grant. The right to purchase
50% of the shares subject to the Option shall vest ratably over a three-year period and the right to purchase the remaining 50%
of the shares shall vest over a three-year period upon the achievement of performance criteria to be determined by the Board (or
an authorized committee thereof). The Option shall be evidenced by a stock option agreement in the standard form approved for use
under the Plan and shall contain such other terms and conditions as provided in such form.

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(d)If the Company terminates your employment for
a reason other than “cause,” then in addition to the payment of any accrued but unpaid Base Salary and reimbursement
of unpaid business expenses, in each case as of such termination date, you shall be entitled to continuation of your Base Salary
(based on the then current annualized Base Salary and without taking into account any payment of any bonus payments, including
any Annual Bonus) and participation, at the Company’s expense, in any Company-sponsored medical/health insurance plan to
the extent in which you were then participating, in each case for a period of six (6) months following the date of termination
(the “Severance Benefits”); provided, however, that the Severance Benefits shall be increased to twelve (12)
months if such termination occurs following the first anniversary of the Compensation Adjustment Event.

 

You will be entitled to four (4) weeks of paid vacation
per year, in addition to holidays observed by the Company.

 

		4.	During your employment with the Company, whether prior to or following a Compensation Adjustment Event, you will be entitled
to participate in the insurance and benefit plans that are generally available to the Company’s employees, which include
group medical coverage pursuant to the Company’s group policy and participation in the Company sponsored 401(k) plan. Please
further note the employee benefits provided to you by the Company are subject to change by the Company, at its sole discretion,
at any time and from time to time. Subject to and in accordance with Company policy in effect from time to time, you will be reimbursed
for all of your pre-approved out-of-pocket expenses incurred in connection with the Company’s business.

 

		5.	You understand that the Company shall withhold all applicable federal, state and local taxes and
social security and such other amounts as may be required by law from all amounts payable to you as described herein. 

 

		6.	Notwithstanding anything to the contrary contained in this Agreement, the Company’s obligation to pay any compensation
or provide any benefits or other consideration to you following the termination of your employment shall be conditioned upon your
execution and non-revocation of a separate agreement releasing the Company and entities and persons affiliated with the Company
from any and all claims relating to or in connection with your employment with the Company, including any claims relating to your
employment termination.

 

		7.	For purpose of this Letter, the following terms have the following meanings:

 

(a)The term “cause” means any of the
following acts or omissions committed by you: (i) breach of any material term of this agreement or your Confidentiality Agreement
(defined below); provided that the first occasion of any particular breach shall not constitute cause unless you shall have previously
received written notice from the Company stating the nature of such breach and affording you at least 10 days to correct such
breach; (ii) conviction of, or plea of guilty or nolo contendere to, any felony or other crime of moral turpitude; (iii)
an act of fraud or dishonesty injurious to the Company or its reputation; (iv) your continual failure or refusal to perform your
material duties as required under this Letter or under a lawful directive from the Board, in either case after written notice from
the Company stating the nature of such failure or refusal and affording you at least 10 days to correct the same; (iv) an act or
omission that, in the Company’s reasonable determination, indicates alcohol or drug abuse by you; or (v) engagement in some
form of harassment prohibited by law (including, without limitation, age, sex or race discrimination), as determined by the Company,
after a reasonable and good-faith investigation by the Company following a written allegation by another employee of the Company).

 

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(b)“Change of Control Transaction”
means the consummation of:

 

(i) a merger, consolidation or
similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation
or similar transaction, the stockholders of the Company immediately prior thereto do not beneficially own, directly or indirectly,
either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of
the surviving entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined
outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction, in each case
in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior
to such transaction; or

 

(ii) a sale, lease, exclusive
worldwide license or other disposition of all or substantially all of the total gross value of the consolidated assets of the Company
and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of total gross value of
the consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are beneficially owned by stockholders of the Company in substantially the same proportions
as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other
disposition (for purposes of this subparagraph, “gross value” means the value of the assets of the Company or the value
of the assets being disposed of, as the case may be, determined without regard to any liabilities associated with such assets).

 

Notwithstanding the foregoing, a Change of Control
Transaction shall not include any transaction or series of related transactions the primary purpose of which is to obtain financing
for the Company through the issuance of equity securities

 

(c)“Change of Control Proceeds” means
with respect to any Change of Control Transaction and without duplication, all cash and the fair market value on the effective
date of such transaction, as determined in good faith by the Board, of all other property actually paid, directly or indirectly,
by a third party or the Company to the Company’s stockholders in respect of their shares (or to the Company in the case of
a Change of Control structured as an asset sale or similar transaction), but excluding any expenses incurred by the Company in
connection with such transaction. To the extent the payment of the amounts described in the preceding sentence are subject to future
contingencies (e.g., earn-outs, milestones, etc.), then such amounts shall not be deemed Change of Control Proceeds until such
time as such payments are actually made to the Company or its stockholders.

 

(d)“Compensation Adjustment Event”
shall means the date on which the Company shall have secured sufficient capital, whether by a financing or strategic transaction
(or any combination thereof) or another means, in order to enable the Company to initiate and fund to completion a Board-approved
and appropriately powered Phase 2 clinical trial (including a Phase 2a trial) of cenderitide when administered in patients for
up to 90 days following admission for acutely decompensated heart failure.

 

		8.	Your employment with the Company is for no specific period of time. Your employment with the Company will be “at will,”
meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause; provided,
however, that if the Company terminates your employment without cause prior to a Compensation Adjustment Event, it will provide
you with 30 days’ advance notice of such termination. Any contrary representations that may have been made to you are superseded
by this letter agreement. In addition, if at any time your employment as President and Chief Executive Officer is terminated, whether
by you or by the Company, then you shall be deemed to have resigned as a director of the Company, effective as of the date of such
termination.

 

		9.	As a condition of your employment, you will be required to sign a confidentiality, non-competition and invention assignment
(the “Confidentiality Agreement”). Further, you and the Company agree that the Consulting Agreement between us dated
June 18, 2012 is hereby terminated.

 

The offer of employment contained in this
letter is subject to and conditioned upon the results of a references check. At any time prior to the Commencement Date, the Company
may revoke the offer of employment made hereby if it is not satisfied, in its sole discretion, with the results of the references
check.

 

 

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If you find the foregoing arrangement acceptable,
please kindly so indicate by executing and dating the attached copy of this Letter in the space provided and returning a copy to
me before that time.

 

	 	Very truly yours,	 
	 	 	 
	 	NILE THERAPEUTICS, INC.	 
	 	 	 
	 	 	 
	 	/s/ Joshua A. Kazam	 
	 	Joshua A. Kazam	 
	 	President & Chief Executive Officer	 

 

 

Agreed and accepted this

3rd day of August, 2012:

 

 

 

/s/ Darlene Horton, M.D.

Darlene Horton, M.D.

 

 

 

 

 

    	4 | PageTDCP

 

$140,000 PROMISSORY NOTE#2 DATED AUGUST 1, 2012

 

FOR VALUE RECEIVED, 3D Icon Corp.,
an Oklahoma corporation (the “Borrower”) with at least 39,000,000 common shares issued and outstanding, promises to
pay to JMJ Financial or its Assignees (the “Lender”) the Principal Sum along with the Interest Rate and any other fees
according to the terms herein. This Note will become effective only upon execution by both parties and delivery of the first payment
of Consideration by the Lender (the “Effective Date”).

 

The Principal Sum is $140,000 (one hundred
forty thousand) plus accrued and unpaid interest and any other fees. The Consideration is $125,000 (one hundred twenty-five thousand)
payable by wire (there exists a $15,000 original issue discount (the “OID”)). The Lender shall pay $75,000 of Consideration
upon closing of this Note. The Lender may pay additional Consideration to the Borrower in such amounts and at such dates as set
forth in the attached Funding Schedule. The Principal Sum due to Lender shall be prorated
based on the Consideration actually paid by Lender (plus an approximate 10% original issue discount that is prorated based on the
Consideration actually paid by the Lender as well as any other interest or fees) such
that the Borrower is only required to repay the amount funded and the Borrower is not required to repay any unfunded portion of
this Note. The Maturity Date is one year from the Effective Date of each payment (the “Maturity Date”) and
is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable.
The Conversion Price is the lesser of $0.15 or 70% of the lowest trade price in the 25 trading days previous to the conversion
(In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled
for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise
agreed in writing by both parties, at no time will the Lender convert any amount of the Note into common stock that would result
in the Lender owning more than 4.99% of the common stock outstanding.

 

1.Interest. A one-time Interest
charge of 5% shall be applied to the Principal Sum. Any interest payable is in addition to the OID, and that OID (or prorated OID,
if applicable) remains payable regardless of time and manner of payment by Borrower.

 

2.Conversion. The Lender has
the right, at any time after the Effective Date, at its election, to convert all or part of the outstanding and unpaid Principal
Sum and accrued interest (and any other fees) into shares of fully paid and non-assessable shares of common stock of the Borrower
as per this conversion formula: Number of shares receivable upon conversion equals the dollar conversion amount divided by the
Conversion Price. Conversions may be delivered to Borrower by method of Lender’s choice (including but not limited to email,
facsimile, mail, overnight courier, or personal delivery), and all conversions shall be cashless and not require further payment
from the Lender. If no objection is delivered from Borrower to Lender regarding any variable or calculation of the conversion notice
within 24 hours of delivery of the conversion notice, the Borrower shall have been thereafter deemed to have irrevocably confirmed
and irrevocably ratified such notice of conversion and waived any objection thereto. The Borrower shall deliver the shares from
any conversion to Lender (in any name directed by Lender) within 3 (three) business days of conversion notice delivery.

 

3.Conversion Delays. If Borrower
fails to deliver shares in accordance with the timeframe stated in Section 2, Lender, at any time prior to selling all of those
shares, may rescind any portion, in whole or in part, of that particular conversion attributable to the unsold shares and have
the rescinded conversion amount returned to the Principal Sum with the rescinded conversion shares returned to the Borrower (under
Lender’s and Borrower’s expectations that any returned conversion amounts will tack back to the original date of the
Note). In addition, for each conversion, in the event that shares are not delivered by the fourth business day (inclusive of the
day of conversion), a penalty of $2,000 per day will be assessed for each day after the third business day (inclusive of the day
of the conversion) until share delivery is made; and such penalty will be added to the Principal Sum of the Note (under Lender’s
and Borrower’s expectations that any penalty amounts will tack back to the original date of the Note).

 

4.Reservation of Shares. At
all times during which this Note is convertible, the Borrower will reserve from its authorized and unissued Common Stock to provide
for the issuance of Common Stock upon the full conversion of this Note. The Borrower will at all times reserve at least 6,000,000
shares of Common Stock for conversion.

 

5.Registration Rights. The Borrower
shall register shares for the conversion of this Note, pursuant to the attached Registration Rights Agreement Document RR-08012012
dated August 1, 2012.

 

6.Terms of Future Financings.
So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries of any security (in an amount
under $200,000) with any term more favorable to the holder of such security or with a term in favor of the holder of such security
that was not similarly provided to the Lender in this Note, then the Borrower shall notify the Lender of such additional or more
favorable term and such term, at Lender’s option, shall become a part of the transaction documents with the Lender. The types
of terms contained in another security that may be more favorable to the holder of such security include, but are not limited to,
terms addressing conversion discounts, conversion lookback periods, interest rates, original issue discounts, stock sale price,
private placement price per share, and warrant coverage.

 

7.Default. The following are
events of default under this Note: (i) the Borrower shall fail to pay any principal under the Note when due and payable (or payable
by conversion) thereunder; or (ii) the Borrower shall fail to pay any interest or any other amount under the Note when due and
payable (or payable by conversion) thereunder; or (iii) a receiver, trustee or other similar official shall be appointed over the
Borrower or a material part of its assets and such appointment shall remain uncontested for twenty (20) days or shall not be dismissed
or discharged within sixty (60) days; or (iv) the Borrower shall become insolvent or generally fails to pay, or admits in writing
its inability to pay, its debts as they become due, subject to applicable grace periods, if any; or (v) the Borrower shall make
a general assignment for the benefit of creditors; or (vi) the Borrower shall file a petition for relief under any bankruptcy,
insolvency or similar law (domestic or foreign); or (vii) an involuntary proceeding shall be commenced or filed against the Borrower;
or (viii) the Borrower shall lose its status as “DTC Eligible” or the borrower’s shareholders shall lose the
ability to deposit (either electronically or by physical certificates, or otherwise) shares into the DTC System; or (ix) the Borrower
shall become delinquent in its filing requirements as a fully-reporting issuer registered with the SEC.

 

    	 

    	 

    
 

8.Remedies. In the event of
any default, the outstanding principal amount of this Note, plus accrued but unpaid interest, liquidated damages, fees and other
amounts owing in respect thereof through the date of acceleration, shall become, at the Lender’s election, immediately due
and payable in cash at the Mandatory Default Amount. The Mandatory Default Amount means the greater of (i) the outstanding principal
amount of this Note, plus all accrued and unpaid interest, liquidated damages, fees and other amounts hereon, divided by the Conversion
Price on the date the Mandatory Default Amount is either demanded or paid in full, whichever has a lower Conversion Price, multiplied
by the VWAP on the date the Mandatory Default Amount is either demanded or paid in full, whichever has a higher VWAP, or (ii) 150%
of the outstanding principal amount of this Note, plus 100% of accrued and unpaid interest, liquidated damages, fees and other
amounts hereon. Commencing five (5) days after the occurrence of any event of default that results in the eventual acceleration
of this Note, the interest rate on this Note shall accrue at an interest rate equal to the lesser of 18% per annum or the maximum
rate permitted under applicable law. In connection with such acceleration described herein, the Lender need not provide, and the
Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and the Lender may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such acceleration may be rescinded and annulled by Lender at any time prior to payment hereunder and the
Lender shall have all rights as a holder of the note until such time, if any, as the Lender receives full payment pursuant to this
Section 8. No such rescission or annulment shall affect any subsequent event of default or impair any right consequent thereon.
Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Borrower’s failure to timely deliver
certificates representing shares of Common Stock upon conversion of the Note as required pursuant to the terms hereof.

 

9.No Shorting. Lender agrees
that so long as this Note from Borrower to Lender remains outstanding, Lender will not enter into or effect “short sales”
of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock of Borrower.
Borrower acknowledges and agrees that upon delivery of a conversion notice by Lender, Lender immediately owns the shares of Common
Stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered
short sales.

 

10.Assignability. The Borrower
may not assign this Note. This Note will be binding upon the Borrower and its successors and will inure to the benefit of the Lender
and its successors and assigns and may be assigned by the Lender to anyone of its choosing without Borrower’s approval.

 

11.Governing Law. This Note
will be governed by, and construed and enforced in accordance with, the laws of the State of Florida, without regard to the conflict
of laws principles thereof. Any action brought by either party against the other concerning the transactions contemplated by this
Agreement shall be brought only in the state courts of Florida or in the federal courts located in Miami-Dade County, in the State
of Florida. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

 

12.Delivery of Process by Lender
to Borrower. In the event of any action or proceeding by Lender against Borrower, and only by Lender against Borrower, service
of copies of summons and/or complaint and/or any other process which may be served in any such action or proceeding may be made
by Lender via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server, or by mailing or otherwise
delivering a copy of such process to the Borrower at its last known attorney as set forth in its most recent SEC filing.

 

13.Attorney Fees. In the event
any attorney is employed by either party to this Note with regard to any legal or equitable action, arbitration or other proceeding
brought by such party for the enforcement of this Note or because of an alleged dispute, breach, default or misrepresentation in
connection with any of the provisions of this Note, the prevailing party in such proceeding will be entitled to recover from the
other party reasonable attorneys' fees and other costs and expenses incurred, in addition to any other relief to which the prevailing
party may be entitled.

 

14.Opinion of Counsel. In the
event that an opinion of counsel is needed for any matter related to this Note, Lender has the right to have any such opinion provided
by its counsel. Lender also has the right to have any such opinion provided by Borrower’s counsel.

 

15.Notices. Any notice required
or permitted hereunder (including Conversion Notices) must be in writing and either personally served, sent by facsimile or email
transmission, or sent by overnight courier. Notices will be deemed effectively delivered at the time of transmission if by facsimile
or email, and if by overnight courier the business day after such notice is deposited with the courier service for delivery.

 

 

	Borrower:	 	 	Lender:	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ Mark Willner	 	 	/s/ Signature	 
	Mark Willner	 	 	JMJ Financial	 
	3DIcon Corporation	 	 	Its Principal	 
	Chief Executive Officer	 	 	 	 

 

    	 

    	 

    

 

Funding Schedule

 

		·	$75,000 paid to Borrower within 3 (three) days of execution
of this Note.

 

		·	$50,000 to be paid within 3 (three) days of notice of
effective registration of the Registration Statement described in Registration Rights Agreement
RR-08012012, provided the following conditions are met:

 

-At the time of the payment,
the Conversion Price calculation on Borrower’s common stock must yield a Conversion Price equal to or greater than $0.20
per share (based on the Conversion Price calculation, regardless of whether a conversion is actually completed or not).

 

-At the time of the payment,
there must be an adequate number of shares reserved to cover any unconverted amounts previously paid in, as well as the
payment being contemplated (based on the current Conversion Price calculation).

 

-At the time of the payment,
there must be an adequate number of shares registered to cover any unconverted amounts previously paid in, as well as the
payment being contemplated (based on the current Conversion Price calculation).

 

-At the time of the payment,
the total dollar trading volume of Borrower’s common stock for the previous 23 trading days must be equal to or greater than
$300,000 (three hundred thousand). The total dollar volume will be calculated by removing the three highest dollar volume days
and summing the dollar volume for the remaining 20 trading days.

 

-The Registration Statement
must be effective within 60 days of execution of this Note.

 

-At the time of the payment,
there shall not exist an event of Borrower default as described within any of the agreements between Borrower and Lender.

 

		·	Lender shall have the right, at its election, to fund full or partial
payments of any amounts set forth above even if the conditions precedent to Lender’s funding obligation have not been met.

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