Document:

Tonix Pharmaceuticals Holding Corp. 10-Q

 

 

 Exhibit 10.2

 

 

 

CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM
TO THE REGISTRANT IF PUBLICLY DISCLOSED. THE OMISSIONS HAVE BEEN INDICATED BY “[***].”

 

RESEARCH
SERVICE AGREEMENT

 

UNIVERSITY
RES0050511

 

THIS AGREEMENT made the 6th day of May, 2020 (“Effective Date”)

BETWEEN:

Tonix
Pharmaceuticals (Canada) Inc.

(the
“Client”)

-
and -

The
Governors of the University of Alberta,

a
corporation continued under the Post-Secondary Learning Act (Alberta) (the “University”)

The
Client and the University agree as follows:

 

 

1.       

UNIVERSITY
TO PERFORM SERVICE – The University as an independent contractor, will perform the review, test or other academic or
technical service outlined in Schedule A (the “Service”) and will use reasonable efforts to complete such service
eighteen (18) months from the effective date of this Agreement. The Service does not include the provision of improvements, additions
or changes to any information, product or technique which is the subject of the Service, or the provision of solutions to problems
identified in such information, product or techniques as a result of the provision of the Service. The University will perform
such services in good faith.

 

2.       

PRINCIPAL
INVESTIGATOR - The Service will be performed under the direction of a Principal Investigator (a “Principal Investigator”).
If for any reason the then designated Principal Investigator is unable to complete the Service and a successor proposed by the
University is not accepted by the Client, acting reasonably, the parties will take all reasonable steps to wind down the Service
with a minimum of costs and in accordance with applicable provisions of Section 9.2. The initial Principal Investigator is Dr.
David Evans of the University’s Department of Medical Microbiology and Immunology.

 

3.       

PAYMENT
- The Client will pay to the University the service fee provided in Schedule B (the “Service Fee”) in accordance
with the payment provisions set forth in Schedule B.

 

4.       

CONFIDENTIALITY

 

4.1       

Each
of the University and the Client may disclose information it considers confidential to the other to facilitate the Service. Each
party will use all reasonable efforts to treat and keep confidential, and cause its officers, servants and employees to treat
and keep confidential, any such information received by it from the other marked “Confidential” (“Confidential
Information”) and in no event will such efforts be less than the degree of care and discretion the recipient exercises in
protecting its own confidential information. Any such information will be disclosed within the recipient’s organization
on a “need to know” basis. Except as otherwise permitted pursuant to Section 7 the University will use all reasonable
efforts to treat and to cause all officers, servants and employees of the University to treat as strictly confidential all Service
Results.

 

The
obligation to keep confidential will however not apply to information which:

    	 

    	 

    

 

		(a)	was
in recipient’s possession before receipt from discloser;

		(b)	is
or becomes a matter of public knowledge through no fault of recipient; or

		(c)	is
rightfully received by recipient from a third party without a duty of confidentiality; or

		(d)	is
disclosed by discloser to a third party without a duty of confidentiality on the third party.

 

Notwithstanding
the provisions of this Section 4, a recipient may disclose Confidential Information if such disclosure:

		(e)	

is
required by law including but not limited to applicable statute, regulation or other enactment or by lawful order of a court or
administrative tribunal having jurisdiction provided recipient provides discloser with immediate notice of such requirement upon
recipient’s receipt of notice of the same; or

		(f)	is
made by recipient with discloser’s prior written approval.

4.2       

Each
party shall also keep confidential and shall ensure its subcontractors, agents and their respective employees and students keep
confidential any and all personal information disclosed directly or indirectly by the other party under this Agreement. Notwithstanding
anything to the contrary, the parties shall not do anything with such personal information which may cause another party to be
in violation of privacy legislation in force in Alberta or legislation that is substantially similar thereto.

 

5.       

SERVICE
RESULTS

 

5.1       

“Service
Results” means the physical samples of one or more [***] which are developed and delivered to the Client pursuant to
this Agreement. Sequence documentation, computer records and any other documentation related to the Services will be promptly
provided to the Client but are explicitly excluded from the Service Results. Service Results do not include intellectual
property relating to processes or methods developed by or utilized by the University in the provision of the Service,
including but not limited to the University Background IP listed in Schedule “C” and the Methods described in
Schedule “A”. Subject to Section 6.2, the Client is acquiring no interest in, or right to use, any such
intellectual property as a result of this Agreement.

 

5.2       

The
University will provide the Client with reports in accordance with the report schedule detailed in Schedule A. Each report will
contain a summary of previously unreported Service Results developed in the provision of the Service.

 

6.       

OWNERSHIP
AND USE

 

6.1       

Subject
to the rights of the University pursuant to this Section 6 and Section 7, all Service Results will be the property of the Client..

 

6.2       

University
grants to Client and Client’s affiliate Tonix Pharma Holdings Limited (“Tonix Holdings”) (each, a “Licensee”)
an exclusive, royalty-free license with the right to sublicense to University Patent Rights according to the terms and conditions
of the license agreement attached hereto as Schedule “D” (the “License Agreement”.

 

7.       

PUBLICATION
OF SERVICE RESULTS - The University will be entitled, after giving the Client thirty (30) days’ notice to review any
proposed publication of Service Results, to publish, or to allow others to publish,
the Service Results or any portion thereof with identifying the Client as the sponsor and ownership of the Services Results. Should
the Client at any time publish the Service Results in its entirety, the University and all investigators of the University designated
by it will be appropriately identified in such publication.

    	 

    	 

    

 

 

8.       

NO
REPRESENTATIONS AND WARRANTIES ON SERVICE RESULTS - The University makes no representations or warranties, either express or implied,
as to any matter including, without limitation, the existence or non-existence of competing technology, the condition, quality
or freedom from error of the Services and Service Results or any part thereof, or its merchantability or fitness for any particular
purpose and all warranties and conditions, expressed or implied, statutory or otherwise, are hereby disclaimed. The Client and
Tonix Holdings assumes the risk of defects or inaccuracies in the Services and Service Results supplied by the University and
the University will have no liability, consequential, special, punitive or otherwise which might arise from the use by the Client
and Tonix Holdings of the Services or Service Results or any other materials delivered hereunder.

 

9.       

TERMINATION

 

9.1       

In
the event that either party fails to remedy any breach or default on its part pursuant to this Agreement within thirty (30) days
of notice from the other to that effect, the party not in default may upon written notice to the party in default terminate the
Service and any further right of the party in default under this Agreement. Any such termination is without prejudice to or limitation
of any other right or remedies of the party not in default including the right to collect sums due to it at the time of such termination.
Upon such termination, the parties will wind down the Service with a minimum of costs. In these circumstances, the Client will
pay for the portion of the Services completed and the University’s committed and uncancellable costs of the Service, the
total of which in no event will exceed the Service Fee.

 

9.2       

The
Service may be terminated by the Client on thirty (30) days’ notice to the University in which event the parties will take
all reasonable steps to wind down the Service with a minimum of costs. In these circumstances, or if the Service is wound down
as provided in Section 2, the Client will pay for the portion of the Services completed and the University’s committed and
uncancellable costs of the Service, the total of which in no event will exceed the Service Fee.

 

9.3       

In
the event the University’s performance is delayed or prevented by any event beyond the University’s control, including,
without limitation, destruction or damage to a facility, disease, war, terrorism, insurrection, civil strife, riots, labour dispute
or strike, government action, or power failure, the University will not be breach of this Agreement because of that delay or failure
in performance.

 

10.       

INDEMNIFICATION -
The Client and Tonix Holdings each jointly and severally will defend, indemnify and hold harmless the University (including
its officers, employees, students and agents) from all liabilities, demands, damages, expenses and losses (collectively
“Losses”) arising out of the use by the Client and Tonix Holdings or by any party acting on behalf
of or under authorization from the Client and Tonix Holdings of the Service Results or out of any use, sale or other
disposition by the Client and Tonix Holdings, or by any party acting on behalf of or under authorization from the Client and
Tonix Holdings of any product or technique which is the subject of the Service or is created or modified based on the Service
Results, except for Losses arising from the University’s negligence, willful misconduct or breach of this
Agreement.

 

11.       

LIMITATION
OF LIABILITY - In no event will the University be liable to the Client and Tonix Holdings for all breaches of contract or
for torts or otherwise arising from or in relation to this Agreement or the matters or activities dealt with herein in excess
of the aggregate amounts paid by the Client and Tonix Holdings to the University pursuant hereto except in connection with the
University’s gross negligence or wilful misconduct. The University shall not be liable to the Client and Tonix Holdings
for any general, indirect or consequential damages or any economic losses of any kind, regardless of whether the liability to
which such damages relate arises in contract, tort or otherwise in law except in connection with the University’s gross
negligence or willful misconduct.
Neither party shall be liable for losses or damages resulting from the non-performance of its obligations under this Agreement
for any reason or event (other than lack of finances) beyond the reasonable control of the party relying on such reason or event

    	 

    	 

    

  

12.       

USE
OF UNIVERSITY NAME – Except as contemplated in Section 7 hereto, the Client will not utilize the name of the University
or any identifying marks of the University, the Principal Investigator, any University employees or any University students in
conjunction with the Client’s use or exploitation of the Service Results, including without limitation, the development,
production or marketing of products.

 

13.       

FOIPP
– The Client acknowledges that all records prepared by the University in the performance of this Agreement are in the
custody and control of the University. The University is or will be subject to the access and privacy provisions of the Freedom
of Information and Protection of Privacy Act (Alberta) which creates a right of access to records under the custody and control
of public bodies subject to specific, limited exceptions. Except as required by law or as otherwise permitted pursuant to the
terms of this Agreement, neither the University nor the Client will disclose the contents of this Agreement or the foregoing records
other than for the purpose of implementation or enforcement of the same or for a general statement on the parties to this Agreement,
the amount being paid for the Service and the general nature of the Service, either party being entitled to publish that information.

 

14.       

NOTICES
- All notices, requests, directions or other communications required or permitted herein will be in writing and will be delivered
to the parties hereto respectively as follows:

 

The
Client:

 

Tonix
Pharmaceuticals (Canada) Inc.

1176
Bishop Street Montreal, QC, H3G 2E3 Canada

Phone:
(514) 657-2335

Attention
Regina Kiu

Email:
Regina.Kiu@tonixpharma.com

 

With
a copy to (which shall not constitute notice):

 

Torys
LLP

79
Wellington Street West 30th Floor

Box
270, TD South Tower Toronto, ON M5K 1N2 Canada

Attention:
Cheryl V. Reicin Phone: (416) 865-0040

Email:
creicin@torys.com

 

The
University:

 

For
Contract/Finance Matters:

Research
Services Office 222 Campus Tower University of Alberta Edmonton, Alberta, T6G 2E1

Attention:
Julaine Herst, Assistant Director – Contracts & Agreements

    	 

    	 

    

 

Phone:
(780) 492-7885

Email:
Julaine.herst@ualberta.ca

 

For
Service Matters:

Dr.
David Evans

Department
of Medical Microbiology and Immunology Faculty of Medicine & Dentistry

University
of Alberta Edmonton, Alberta Phone: (780) 492-2109

Email:
devans@ualberta.ca

 

In
order for any notices, requests, directions, or other communications to be effective, the same will either be delivered in person
or by overnight courier or email to the party for whom it is intended at the above-mentioned address and will be deemed to have
been received, at the time of delivery. Any notice given by email must be promptly followed by a copy of such notice by overnight
courier. The address or fax number of either party may be changed by notice in the manner set out in this Section.

 

15.       

GOVERNING
LAW - This Agreement will be governed by and interpreted in accordance with the laws in force in the Province of Alberta and
the parties expressly attorn to the exclusive jurisdiction of the courts of Alberta for enforcement thereof.

 

 

16.       

ENTIRE
AGREEMENT - This Agreement constitutes the entire understanding between the parties relating to the Services. There are no
agreements, representations or warranties except as set forth in this Agreement. No modification or amendment to this Agreement
shall be binding unless executed in writing by the parties.

 

 

17.       

ASSIGNMENT,
SUBCONTRACTING AND AMENDMENT

 

17.1       

No
part of this Agreement may be assigned or subcontracted by any party without the written consent of the other party signed by
authorized representatives of each party; provided that the Client can assign or subcontract this to any of its affiliates.

 

17.2       

No
amendment or variation of this Agreement will operate to change or vary the terms, obligations, or conditions hereof except upon
mutual agreement by both parties signed by authorized representatives of each party.

 

18.       

NO
IMPLIED WAIVER - The failure of either party at any time to require performance of any provision of this Agreement shall in
no way affect the right to require such performance at any time thereafter, nor shall the waiver of either party of a breach of
any provision constitute a waiver of any succeeding breach of the same or any other provision.

 

19.       

FORCE
MAJEURE - If the performance by either party of any of its obligations under this Agreement (except a payment obligation)
is delayed or prevented by circumstances beyond its reasonable control, including without limitation acts of God, war, terrorism,
labour disputes, pandemics, epidemics, or governmental action, that party will not be in breach of this Agreement because of that
delay or failure in performance.

 

20.       

RELATIONSHIP
OF PARTIES – The University and the Client are independent contracting parties and nothing in this Agreement shall make
either party the agent or legal representative of the other for any purpose whatsoever,
nor does it grant either party any authority to assume or to create any obligation on behalf of or in the name of the other.

    	 

    	 

    

 

21.       

SEVERABILITY
- If any term of this Agreement is invalid or unenforceable under any statute, regulation, ordinance, executive order or other
rule of law, such term shall be deemed reformed or deleted, but only to the extent necessary to comply with such statute, regulation,
ordinance, order or rule, and the remaining provisions of this Agreement shall remain in full force and effect.

 

22.       

EXECUTION
OF AGREEMENT – This Agreement may be executed in counterparts that together shall be deemed to constitute one valid
and binding Agreement. The counterparts of this agreement may be signed and delivered electronically, and such counterparts will
have the same effect as if original copies had been delivered.

 

23.       

INCORPORATION
OF SCHEDULES - The following attached Schedules are incorporated in this Agreement and are deemed to be part of this Agreement
and any references to this Agreement shall mean this Agreement including such Schedules:

 

Schedule
“A”Service Description (Scope of Work) and Budget Schedule “B”Payment

 

IN
WITNESS WHEREOF the duly authorized officers of the parties have executed this Agreement on the date first above written.

 

The
Governors of the University of AlbertaTonix Pharmaceuticals (Canada) Inc.:

 

	Per:	 	Per:
	 	 	 
	 	Research Services Office	 	 
	 	 	Per:
	 	 	 

 

    	 

    	 

    

SCHEDULE
A

THE SERVICE

 

 

 

Creation
of [***]

 

Prepared
by:

 

Ryan
Noyce, PhD

David Evans, PhD

 

 

A
proposal prepared for:

 

Tonix
Pharmaceuticals Holding Corporation

 

CONFIDENTIAL

This
document is the property of the University of Alberta

 

    	 

    	 

    

 

 

 

 

[***]

    	 

    	 

    

 

SCHEDULE
B

PAYMENT

B.1       Service
Fee -The Client will pay to the University for the University’s performance of the Service, a Service Fee of $ USD
[***] (the “Contract Amount”). The total service fee includes both total direct costs of service plus 20% indirect
costs. The Contract Amount shall not be adjusted as a result of any difference between budgeted costs and actual costs.

 

The
University is not required to provide the Client with a Financial Statement of Revenue and Expenditures.

 

B.2       Invoicing
– The Client shall pay (i) [***] of the Contract Amount upon full execution of this Service Agreement (ii) the remaining
[***] of the Contract Amount is due thirty (30) days after the Client’s receipt of the invoice and deliverables.

 

Interest
will be paid on overdue amounts at a rate of prime rate plus 2% based on the noon rate of the Bank of Canada as the date the payment
first becomes due as specified on the invoice. The Service Fee is exclusive of GST which, if applicable, will be paid by the Client
at the same time as the payment of the Service Fee on which the same is based.

 

 

 

INVOICE
TO BE SENT TO:

 

Tonix
Pharmaceuticals (Canada) Inc. 1176 Bishop Street

Montreal,
QC, H3G 2E3 Canada

Phone:
(514) 657-2335

Attention:
Regina Kiu, Manager

 

CHEQUES
SHOULD BE MADE PAYABLE TO: The Governors of the University of Alberta

PLEASE REFERENCE RESEARCHER’S NAME, RES0050511
AND FORWARD TO THE FOLLOWING ADDRESS:

 

Financial
Services University of Alberta

3rd
Floor, Administration Building Edmonton, Alberta

Canada
T6G 2M7

ATTENTION:
RESEARCH RECEIVABLES

    	 

    	 

    

 

Schedule
“C”

 

University
Background IP: US provisional patent application [***] and any corresponding patents or patent applications related thereto, including
divisionals, continuations, extensions and reissue applications, term restorations and renewals.

    	 

    	 

    

 

SCHEDULE
“D”

 

License
Agreementmrin-ex101_118.htm

 

Exhibit 10.1

 

 

NOTE

 

	
SBA Loan #
	
7968987108

	
SBA Loan Name
	
Marin Software Incorporated

	
Date
	
05/04/2020

	
Loan Amount
	
$3,319,600.00

	
Interest Rate
	
1% fixed

	
Borrower
	
Marin Software Incorporated

	
Lender
	
Harvest Small Business Finance, LLC

	
1.
	
PROMISE TO PAY:

In return for the Loan, Borrower promises to pay to the order of Lender the amount of 

Three Million Three Hundred Nineteen Thousand Six Hundred Dollars

plus interest on the unpaid principal balance at the rate set forth below, and all other amounts required by this Note. Before the funding of the Loan, the following conditions must be satisfied:

 

	
 
	
A.
	
Lender has approved the request for the Loan.

 

	
 
	
B.
	
Lender has received approval from SBA to fund the Loan.

 

	
2.
	
DEFINITIONS:

“Loan” means the loan evidenced by this Note.

 

”Loan Documents” means the documents related to this loan signed by Borrower.

 

“SBA” means the Small Business Administration, an Agency of the United States of America.

 

 

 

	
3.
	
PAYMENT TERMS:

Borrower must make all payments at the place Lender designates. The payment terms for this Note are:

 

Initial Deferment Period (“Deferment Period”): No payments are due on this Loan for 6 months from the date of first disbursement of this loan. Interest will continue to accrue during the deferment period.

 

Loan Forgiveness: Borrower may apply to Lender for forgiveness of the amount due on this loan in an amount equal to the sum of the following costs incurred by Borrower during the 8-week period beginning on the date of first disbursement of this loan:

 

	
 
	
A.
	
Payroll costs

	
 
	
B.
	
Any payment of interest on a covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation)

	
 
	
C.
	
Any payment on a covered rent obligation

	
 
	
D.
	
Any covered utility payment

The amount of loan forgiveness shall be calculated (and may be reduced) in accordance with the requirements of the Paycheck Protection Program, including the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (P.L. 116-136). Not more than 25% of the amount forgiven can be attributable to non- payroll costs.

If any portion of the Loan refinances an Economic Injury Disaster Loan advance, an amount equal to the lesser of (a) such portion of the Loan and (b) $10,000 shall be subtracted from the loan forgiveness amount.

 

In the event that the Loan, or any portion thereof, is forgiven pursuant to the CARES Act, the amount so forgiven shall be applied to principal and any interest accrued thereon. Forgiveness of the Loan is only available for principal that is used for the limited purposes that qualify for forgiveness under SBA requirements, and to obtain forgiveness, Borrower must request it and must provide documentation in accordance with the SBA requirements, and certify that the amounts Borrower is requesting to be forgiven qualify under those requirements. Borrower is not relying on Lender for its understanding of the requirements for forgiveness such as eligible expenditures, necessary records/documentation, or possible reductions due to changes in number of employees or compensation. Rather, Borrower will consult the SBA’s program materials.

 

Maturity: This Note will mature two years from the date of first disbursement of this Loan.

 

Repayment Terms: The interest rate on this Note is one percent per year. The interest rate is fixed and will not be changed during the life of the loan. Interest payable under this Note shall be calculated on the basis of a 365-day year for the actual days elapsed.

 

Commencing on the first day of the next month after the expiration of the Deferment Period, and continuing on the first day of each month thereafter until the Maturity Date, Borrower shall pay to Lender monthly payments of principal and interest, each in such equal amount required to fully amortize the principal amount outstanding on the Loan on the last day of the Deferment Period by the Maturity Date. If any payment is due on a day that is not a Business Day, the payment will be made on the next Business Day. The term “Business Day” 

 

 

 

means a day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed.

 

Lender will apply each installment payment first to pay interest accrued to the day Lender received the payment, then to bring principal current, then to pay any late fees, and will apply any remaining balance to reduce principal.

 

If any payment under this Note is made more than ten days late, after the date such payment is due under this Note, Borrower shall pay to Lender a fully-earned, non- refundable late fee of the lesser of 5% or the maximum amount, if any, allowed by applicable law, of the portion of such payment that was not made when due.

 

Loan Prepayment: Notwithstanding any provision in this Note to the contrary: Borrower may prepay this Note at any time without penalty. Borrower may prepay 20 percent or less of the unpaid principal balance at any time without notice. If Borrower prepays more than 20 percent and the Loan has been sold on the secondary market, Borrower must: a. Give Lender written notice; b. Pay all accrued interest; and c. If the prepayment is received less than 21 days from the date Lender received the notice, pay an amount equal to 21 days interest from the date Lender received the notice, less any interest accrued during the 21 days and paid under b. of this paragraph. If Borrower does not prepay within 30 days from the date Lender received the notice, Borrower must give Lender a new notice.

 

Non-Recourse: Lender and SBA shall have no recourse against any individual shareholder, member or partner of Borrower for non-payment of the loan, except to the extent that such shareholder, member or partner uses the loan proceeds for an unauthorized purpose.

 

	
4.
	
DEFAULT:

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower:

 

	
 
	
A.
	
Fails to do anything required by this Note and other Loan Documents;

 

	
 
	
B.
	
Defaults on any other loan with Lender;

 

	
 
	
C.
	
Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;

 

	
 
	
D.
	
Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA, or Borrower makes a false certification under paragraph 10 of this Note;

 

	
 
	
E.
	
Defaults on any loan or agreement with another creditor, if Lender believes that the default may then materially affect Borrower’s ability to pay this Note, as compared to the time when the loan is made;

 

	
 
	
F.
	
Fails to pay any taxes when due;

 

	
 
	
G.
	
Becomes the subject of a proceeding under any bankruptcy or insolvency law;

 

 

 

 

	
 
	
H.
	
Has a receiver or liquidator appointed for any part of their business or property;

 

	
 
	
I.
	
Makes an assignment for the benefit of creditors;

 

	
 
	
J.
	
Has any adverse change in financial condition or business operation that Lender believes may then materially affect Borrower’s ability to pay this Note, as compared to the time when the loan is made;

 

	
 
	
K.
	
Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent; or

 

	
 
	
L.
	
Becomes the subject of a civil or criminal action that Lender believes may then materially affect Borrower’s ability to pay this Note, as compared to the time when the loan is made.

 

	
5.
	
LENDER’S RIGHTS IF THERE IS A DEFAULT:

Without notice or demand and without giving up any of its rights, Lender may:

 

	
 
	
A.
	
Require immediate payment of all amounts owing under this Note;

 

	
 
	
B.
	
Collect all amounts owing from any Borrower; and

 

	
 
	
C.
	
File suit and obtain judgment.

 

	
6.
	
LENDER’S GENERAL POWERS:

Without notice and without Borrower’s consent, Lender may:

 

	
 
	
A.
	
Incur expenses to collect amounts due under this Note, and enforce the terms of this Note or any other Loan Document. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower;

 

	
 
	
B.
	
Release anyone obligated to pay this Note; or

 

	
 
	
C.
	
Take any action necessary to collect amounts owing on this Note.

 

	
7.
	
CHOICE OF LAW, JURISDICTION AND VENUE:

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

 

 

 

 

If SBA is not the holder, this Note shall be governed by and construed in accordance with federal law and California state law with respect to determining interest and otherwise the laws of the State of California without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of California. Borrower agrees that, upon a request by Lender, any legal action or proceeding with respect to any of its obligations under this Note may be brought by Lender in any state or federal court located in the State of California, as Lender in its sole discretion may elect. Upon a request by Lender, Borrower submits to and accepts in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. Borrower waives any claim that the State of California is not a convenient forum or the proper venue for any such suit, action or proceeding.

 

	
8.
	
Borrower waives the right to trial by jury in any proceeding or dispute of any kind relating in any way to any Loan or Loan Documents. If any action, litigation or proceeding relating to any Loan or Loan Documents is filed in a court sitting in or applying the laws of California, the court shall, and is hereby directed to, make a general reference pursuant to Cal. Civ. Proc. Code §638 to a referee (who shall be an active or retired judge) to hear and determine all issues in the case (whether fact or law) and to report a statement of decision. Nothing in this Section shall limit the right of Lender to exercise self-help remedies, such as setoff or to obtain provisional or ancillary remedies from a court of competent jurisdiction before, during or after any judicial reference. The exercise of a remedy does not waive the right of any party to require judicial reference.

	
9.
	
SUCCESSORS AND ASSIGNS:

Under this Note, Borrower includes its successors, and Lender includes its successors and assigns.

 

	
10.
	
GENERAL PROVISIONS:

	
 
	
A.
	
All individuals and entities signing this Note are jointly and severally liable.

 

	
 
	
B.
	
Borrower waives all suretyship defenses.

 

	
 
	
C.
	
Borrower must sign all documents necessary at any time to comply with the Loan Documents.

 

	
 
	
D.
	
Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them.

 

	
 
	
E.
	
Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

 

	
 
	
F.
	
If any part of this Note is unenforceable, all other parts remain in effect.

 

 

 

 

	
 
	
G.
	
To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor.

 

	
 
	
H.
	
Borrower’s liability under this Note will continue with respect to any amounts SBA may pay Lender based on an SBA guarantee of this Note. Any agreement with Lender under which SBA may guarantee this Note does not create any third party rights or benefits for Borrower and, if SBA pays Lender under such an agreement, SBA or Lender may then seek recovery from Borrower of amounts paid by SBA.

 

	
 
	
I.
	
Lender reserves the right to modify the Loan Amount based on documentation received from Borrower.

 

	
11.
	
STATE SPECIFIC PROVISIONS:

	
 
	
A.
	
If any Borrower is a resident of Delaware: WARRANT OF ATTORNEY/CONFESSION OF JUDGMENT. In addition to any other remedies Lender may possess, Borrower knowingly, voluntarily and intentionally authorizes any attorney to appear on behalf of Borrower, from time to time, in any court of record possessing jurisdiction over this Note and to waive issuance and service of process and to confess judgment in favor of Lender against Borrower, for the unpaid principal, accrued interest, accrued charges, reasonable attorney fees and court costs and such other amounts due under this Note.

 

	
 
	
B.
	
If any Borrower is a resident of Iowa: IMPORTANT: READ BEFORE SIGNING. The terms of this agreement should be read carefully because only those terms in writing are enforceable. No other terms or oral promises not contained in this written contract may be legally enforced. You may change the terms of this agreement only be another written agreement.

 

	
 
	
C.
	
If any Borrower is a resident of Maryland: WARRANT OF ATTORNEY/CONFESSION OF JUDGMENT. Borrower authorizes an attorney to appear in a court of record and confess judgment, without process, against Borrower in favor of Lender for all indebtedness owed in connection with the loan, including but not limited to service charges, other charges and reasonable attorney’s fees.

 

	
 
	
D.
	
If any Borrower is a resident of Missouri: Oral or unexecuted agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt including promises to extend or renew such debt are not enforceable, regardless of the legal theory upon which it is based that is in any way related to the credit agreement. To protect you (Borrowers(s)) and us (Creditor) from misunderstanding or disappointment, any agreements we reach covering such matters are contained in this writing, which is the complete and exclusive statement of the agreement between us, except as we may later agree in writing to modify it.

 

 

 

 

	
 
	
E.
	
If any Borrower is a resident of Ohio: WARRANT OF ATTORNEY/CONFESSION OF JUDGMENT. In addition to any other remedies Lender may possess, Borrower knowingly, voluntarily and intentionally authorizes any attorney to appear on behalf of Borrower from time to time, in any court of record possessing jurisdiction over this Note and to waive issuance and service of process and to confess judgment in favor of Lender against Borrower, for the unpaid principal, accrued interest, accrued charges, reasonable attorney fees and court costs and such other amount due under this Note. WARNING: BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF THE COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT OR ANY OTHER CAUSE.

 

	
 
	
F.
	
If any Borrower is a resident of Oregon: UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY [BENEFICIARY]/US CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY GRANTOR'S/BORROWER'S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY [AN AUTHORIZED REPRESENTATIVE OF BENEFICIARY]/US TO BE ENFORCEABLE.

 

	
 
	
G.
	
If any Borrower is a resident of Pennsylvania: WARRANT OF ATTORNEY/CONFESSION OF JUDGMENT. Borrower irrevocably authorizes and empowers the prothonotary, any attorney or any clerk of any court of record, upon default, to appear for and confess judgment against Borrower for such sums as are due and/or may become due under this Note including costs of suit, without stay of execution, and for attorney’s fees and costs as set forth in this Note and knowingly, voluntarily and intentionally waives any and all rights Borrower may have to notice and hearing under the state and federal laws prior to entry of judgment. To the extent permitted by law, Borrower releases all errors in such proceedings. If a copy of this Note, verified by or on behalf of the holder, shall have been filed in such action, it shall not be necessary to file the original Note as a warrant of attorney. The authority and power to appear for and confess judgment against Borrower shall not be exhausted by the initial exercise thereof and may be exercised as often as the holder shall find it necessary and desirable and this Note shall be a sufficient warrant for such authority and power.

 

 

 

 

	
 
	
H.
	
If any Borrower is a resident of Utah: This is a final expression of the agreement between the creditor and debtor and the written agreement may not be contradicted by evidence of any alleged oral agreement.

 

	
 
	
I.
	
If any Borrower is a resident of Virginia: IMPORTANT NOTICE: THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER NOTICE. WARRANT OF ATTORNEY/CONFESSION OF JUDGMENT. In addition to any other remedies Lender may possess, Borrower knowingly, voluntarily and intentionally authorizes to appear on behalf of Borrower, from time to time, in the District Court of Alexandria, Virginia and to waive issuance and service of process and to confess judgment in favor of Lender against Borrower, for the unpaid principal, accrued interest, accrued charges, reasonable attorney fees and court costs and such other amount due under this Note.

 

	
 
	
J.
	
If any Borrower is a resident of Washington: Oral agreements or oral commitments to loan money, extend credit, or to forbear from enforcing repayment of a debt are not enforceable under Washington law.

 

	
12.
	
BORROWER CERTIFICATIONS:

Borrower certifies as follows:

	
 
	
A.
	
Current economic uncertainty makes this Loan necessary to support the ongoing operations of Borrower.

 

	
 
	
B.
	
Loan funds will be used only to retain workers and to maintain payroll or make mortgage payments, lease payments, and utility payments.

 

	
 
	
C.
	
Unless as otherwise permitted under applicable law including as permitted under the CARES Act, the Paycheck Protection Program, or any subsequent amendment to these programs, during the period beginning on February 15, 2020 and ending on December 31, 2020, Borrower has not applied for, and has not and will not receive another loan under this program.

 

	
 
	
D.
	
Borrower was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes.

 

 

 

	
13.
	
ADDITIONAL BORROWER AGREEMENTS:

Borrower understands and agrees, and waives and releases Lender, as follows:

 

	
 
	
A.
	
The Loan would be made under the SBA’s Paycheck Protection Program. Accordingly, it must be submitted to and approved by the SBA. There is limited funding available under the Paycheck Protection Program and so all applications submitted will not be approved by the SBA. The Loan also remains subject to the SBA issuing an SBA loan number.

 

	
 
	
B.
	
Lender does not represent or guarantee that it will submit the application before SBA funding is no longer available or at all.

 

You agree that Lender is not responsible or liable to you (i) if the application is not submitted to the SBA until after SBA stops approving applications, for any reason or (ii) if the application is not processed. You forever release and waive any claims against Lender concerning failure to obtain the Loan. This release and waiver applies to but is not limited to any claims concerning Lender’s (i) pace, manner or systems for processing or prioritizing applications, or (ii) representations by Lender regarding the application process, the Paycheck Protection Program, or availability of funding.

 

This agreed-to release and waiver supersedes any prior communications, understandings, agreements or communications on the issues set forth herein.

 

	
14.
	
BORROWER’S NAME(S) AND SIGNATURE(S):

By signing below, each individual or entity becomes obligated under this Note as Borrower.

 

IN WITNESS WHEREOF, the undersigned have caused this Note to be executed under seal to be effective on the day and year first written above.

 

				
	
Marin Software Incorporated
	
	
 
	
 
	
 

	
By:
	
 
	
/s/Robert Bertz

	
 
	
 
	
Signature of PPP Applicant/Authorized Representative

	
Print Name:
	
 
	
Robert Bertz

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