Document:

Form of Promissory Note

 Exhibit 10.4 
 PROMISSORY NOTE 
  

					
	$200,000.00	  		  	As of December 28, 2007
		  		  	New York, New York

 FOR VALUE RECEIVED, Grail Investment Corp. (“Maker”) promises to pay to the order of
Grail Chalice SPAC Holdings LLC (“Payee”) the principal sum of Two Hundred Thousand Dollars and No Cents ($200,000.00) in lawful money of the United States of America, on the terms and conditions described below. 
 1. Principal. The principal balance of this Note shall be repayable on the earlier of (i) December 28, 2008 and (ii) the date on
which Maker consummates an initial public offering of its securities. 
 2. Interest. No interest shall accrue or be payable on the
unpaid principal balance of this Note. 
 3. Application of Payments. All payments shall be applied first to payment in full of any
reasonable costs incurred in the collection of any sum due under this Note, including (without limitation) reasonable attorneys’ fees, then to the reduction of the unpaid principal balance of this Note. 
 4. Events of Default. The following shall constitute Events of Default: 
 (a) Failure to Make Required Payments. Failure by Maker to pay the principal of this Note within five (5) business days following the date
when due. 
 (b) Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now
constituted or hereafter amended, or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as
such debts become due, or the taking of corporate action by Maker in furtherance of any of the foregoing. 
 (c) Involuntary Bankruptcy,
Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in an involuntary case under the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation of
its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days. 
 5.
Remedies. (a) Upon the occurrence of an Event of Default specified in Section 4(a), Payee may, by written notice to Maker, declare this Note to be due and payable, whereupon 

 
the principal amount of this Note, and all other amounts payable hereunder, shall become immediately due and payable without presentment, demand, protest or
other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding. 
 (b) Upon the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all other sums payable with regard to, this Note shall automatically and immediately become due
and payable, in all cases without any action on the part of Payee. 
 6. Waivers. Maker and all endorsers and guarantors of, and
sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest and notice of protest with regard to the Note and Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof,
on any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee. 
 7.
Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the
liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or
modifications that may be granted by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers, guarantors or sureties may become parties hereto without notice to them or affecting their
liability hereunder. 
 8. Assignment. Maker shall not assign its rights or delegate its obligations hereunder without the prior
written consent of Payee. Payee may freely assign its rights or delegate its obligations without any consent whatsoever of Maker. 
 9.
Notices. Any notice, request, demand, waiver, consent, approval or other communication that is required or permitted to be given to either party hereunder shall be in writing and shall be deemed given only if delivered to such party
personally (including by recognized overnight courier), or sent to such party by facsimile transmission (promptly followed by a hard-copy delivered in accordance with this Section 9), or by registered or certified mail (return receipt
requested), with postage and registration or certification fees thereon prepaid, addressed to the party at its address set forth below: 
 If
to Maker: 
 Grail Investment Corp. 
 767 Third Avenue, 21st Floor 
 New York, NY 100177 
 Facsimile: (212) 676-5524 
 Attn: John C. Siciliano, Chief Executive Officer 
  

 2 

 If to Payee: 
 Grail Chalice SPAC Holdings LLC 
 767 Third Avenue, 21st Floor 
 New York, NY 10017 
 Facsimile: (212) 676-5524 
 Attn: Donald H. Putnam 
 or to such other address as either party may have specified in a notice duly given to the other
party as provided herein. Such notice, request, demand, waiver, consent, approval or other communication will be deemed to have been given as of the date so delivered, telegraphed or mailed. 
 10. Construction. This Note shall be governed by, and construed in accordance with, the laws of the State of New York. This Note qualifies as an
instrument for the payment of money only, under Section 3213 of the Civil Practice Law and Rules of the State of New York. 
 11.
Severability. Any provision contained in this Note that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed as of the day and year first above written. 
  

			
	GRAIL INVESTMENT CORP.
		
	By:	 	 /s/ John C. Siciliano

	Name:	 	John C. Siciliano
	Title:	 	President and Chief Executive Officer

  

 3Form of Warrant Subscription Agreement

 Exhibit 10.6 
 WARRANT SUBSCRIPTION AGREEMENT, dated as of December 28, 2007 (this “Agreement”), by and between Grail Chalice SPAC Holdings LLC, a Delaware limited liability company (the “Purchaser”),
and Grail Investment Corp., a Delaware corporation (the “Company”). 
 INTRODUCTION 
 In connection with the consummation of the Company’s initial public offering (the “IPO”), the Company desires to issue and sell, and
Purchaser desires to purchase, on the terms and conditions set forth in this Agreement, 6,000,000 warrants (the “Insider Warrants”), each to purchase one share of the Company’s common stock, par value $0.0001 per share (the
“Common Stock”) at an initial exercise price of $7.50 per Insider Warrant. 
 The Insider Warrants shall have the terms set forth
in the warrant agreement to be entered into by and between the Company and Continental Stock Transfer & Trust Company (“Continental”), as Warrant Agent, in connection with the IPO, substantially in the form attached hereto as
Exhibit A (the “Warrant Agreement”). 
 In consideration of the premises and the mutual covenants and agreements contained
in this Agreement, Purchaser and the Company agree as follows: 
 1. Purchase and Sale of Insider Warrants. The purchase and sale of
the Insider Warrants shall occur simultaneously with the consummation of the IPO. At least 24 hours prior to the date of the final prospectus in connection with the IPO, the undersigned shall deliver $6,000,000 (the “Purchase Price”) to
Continental or such other agent as may be agreed to by the parties hereto (“Agent”) to hold in an account until the Company consummates the IPO. Simultaneously with the consummation of the IPO, Agent shall deposit the Purchase Price,
without interest or deduction, into a trust account established by the Company for the benefit of the Company’s public stockholders at JP Morgan Chase Bank and maintained by Continental, as trustee. In the event that the IPO is not consummated
within fourteen (14) days of the date the Purchase Price is delivered to Agent, Agent shall return the Purchase Price to the Purchaser, with accrued interest. 
 2. Terms of the Insider Warrants. Each Insider Warrant shall have the terms set forth in the Warrant Agreement. In connection with the IPO, the Company and Purchaser shall enter into an agreement granting
holders of the Insider Warrants registration rights with respect to the Insider Warrants and the shares of Common Stock issuable upon exercise of the Insider Warrants (the “Warrant Shares” and, together with the Insider Warrants, the
“Securities”). 
 3. Investment Representations and Covenants. 
 (a) Purchaser is acquiring the Insider Warrants for his, her or its own account, for investment only and not with a view towards, or for resale in
connection with, any public sale or distribution thereof. Unless a registration statement at the time of exercise of the Insider Warrants, the Purchaser covenants to acquire the Warrant Shares for his, her or its own account, for investment only and
not with a view towards, or for resale in connection with, any public sale or distribution thereof. 

 (b) Purchaser is an accredited investor as such term is defined in Rule 501 of Regulation D promulgated
by the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”). Purchaser understands that its investment in the Securities involves a high degree of risk. Purchaser has sought such
accounting, legal and tax advice as Purchaser has considered necessary to make an informed decision with respect to the Purchaser’s acquisition of such Securities. Purchaser has knowledge and experience in financial and business matters and
knows of the high degree of risk associated with investments generally and particularly investments in the securities of development stage companies. Purchaser is able to bear the economic risk of an investment in the Securities in the amount
contemplated hereunder for an indefinite period of time. Purchaser can afford a complete loss of its investment in the Securities. Purchaser has had access to all information that it believes is necessary, sufficient or appropriate in connection
with the purchase of the Warrants. 
 (c) Purchaser understands that the Securities have not been and are not being registered under the
Securities Act or any state securities laws and may not be offered for sale, sold, assigned or transferred unless (i) subsequently registered thereunder or (ii) sold in reliance on an exemption therefrom. No U.S. federal or state agency or
any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have any such governmental authorities passed upon or
endorsed the merits of the offering of the Securities. 
 (d) Purchaser understands that the Securities are being offered and will be sold
to it in reliance on specific exemptions from the registration requirements of the U.S. federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations
and warranties of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire such Securities. 
 4. Certificates; Legends. 
 (a) The
certificates evidencing the Insider Warrants shall be substantially in the form attached as an exhibit to the Warrant Agreement and shall include a legend substantially in the following form: 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH 

  

 2 

 
ALL APLICABLE SECURITIES LAWS, AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, ONLY IF THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY REGARDING THE AVAILABILITY OF SUCH EXEMPTION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS. 
 (b)
Purchaser agrees, prior to any permitted transfer of the Securities, to give written notice to the Company expressing its desire to effect such transfer and describing briefly the proposed transfer. Upon receiving such notice, the Company shall
present copies thereof to its counsel. Purchaser shall not make any disposition of any Securities unless and until (i) there is then in effect a registration statement under the Securities Act covering such transfer and such transfer is made in
accordance with such registration statement or (ii) if reasonably requested by the Company, (x) Purchaser shall have furnished to the Company an opinion of counsel reasonably satisfactory to the Company that such disposition will not
require registration under the Securities Act and (y) the transferee shall have agreed to comply with the restrictions in the legend set forth in Section 4(a) above. 
 5. Miscellaneous. 
 (a) Any notice,
request, demand, waiver, consent, approval or other communication that is required or permitted to be given to either party hereunder shall be in writing and shall be deemed given only if delivered to such party personally (including by recognized
overnight courier), or sent to such party by facsimile transmission (promptly followed by a hard-copy delivered in accordance with this Section 5(a)) or by registered or certified mail (return receipt requested), with postage and registration
or certification fees thereon prepaid, addressed to such party at its address set forth below: 
 If to the Company: 
 Grail Investment Corp. 
 767 Third Avenue, 21st Floor 
 New York, NY 10017 
 Facsimile: (212) 676-5524 
 If to
Purchaser: 
 Grail Chalice SPAC Holdings LLC 
 c/o Grail Partners LLC 
 767 Third Avenue, 21st Floor 
 New York, NY 10017 
 Facsimile: (212) 676-5524 
 or to such other address as
such party may have specified in a notice duly given to the other party hereto as provided herein. Such notice, request, demand, waiver, consent, approval or other communication will be deemed to have been given as of the date so delivered,
telegraphed or mailed. 
  

 3 

 (b) This Agreement may be amended, modified or supplemented at any time by mutual agreement of the
parties hereto. Any amendment, modification or revision of this Agreement and any waiver of compliance or consent with respect hereto shall be effective only if in a written instrument executed by the parties hereto. For the avoidance of doubt, any
such written instrument shall only be effective if it is manually-signed by an individual with actual authority to act on behalf of such party. 
 (c) This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. Each of the parties hereto (i) consents to submit itself to the personal jurisdiction of the United States District Court for
the Southern District of New York or the Supreme Court of the State of New York, New York County in the event any dispute arises out of this Agreement or any of the transactions contemplated hereby, (ii) agrees that it will not attempt to deny
or defeat such personal jurisdiction by motion or other request for leave from any such court and (iii) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated hereby in any court other than
the United States District Court for the Southern District of New York or the Supreme Court of the State of New York, New York County. 
 (d) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 (e) If any term or other provision of this Agreement is determined to be invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other terms and provisions of this Agreement shall remain in full force and effect. Upon such determination, the parties hereto shall negotiate in good faith to modify this Agreement so as to give effect to the original intent of the
parties hereto to the fullest extent permitted by applicable law. 
 (f) This Agreement may be executed in one or more counterparts
(including by facsimile), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

 4 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed and delivered as of
the day and year first above written. 
  

			
	GRAIL INVESTMENT CORP.
		
	By:	 	 /s/ John C. Siciliano

	Name:	 	John C. Siciliano
	Title:	 	President and Chief Executive Officer
	
	GRAIL CHALICE SPAC HOLDINGS LLC
	
	Member: Grail Partners LLC
		
	By:	 	 /s/ John C. Siciliano

	Name:	 	John C. Siciliano
	Title:	 	Managing Member
	
	Member: The Chalice Fund, L.P.
		
	By:	 	Grail Partners LLC, its General Partner
		
	By:	 	 /s/ John C. Siciliano

	Name:	 	John C. Siciliano
	Title:	 	Managing Member

  

 5 

 Exhibit A 
 Form of Warrant Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]