Document:

securealertexh1017.htm

Exhibit 10.17

 

AMENDMENT NO. 1

TO

CONVERTIBLE DEBENTURE

SecureAlert, Inc. and SecureAlert Monitoring, Inc. (collectively the “Company”) entered into a debenture with the creditors listed below (the “Creditors”) on April 20, 2012 with a maturity date of July 31, 2012 in the principal amount of $2,500,000.00 with a “green shoe” option to raise an additional $500,000.00 (the “Debenture”).  The parties to the Debenture have desire to extend the maturity date on the Debenture as follows:

	
1.

	
Final Maturity Date: The parties hereto acknowledge and agree that the Final Maturity Date of the Debenture shall be extended from July 31, 2012 to August 31, 2012.

	  	  
	
2.

	
Interest:  Simple interest shall accrue at a rate of eight percent (8%) per annum.  Interest shall accrue from the date funds were received by the Company from each respective Creditor under the Debenture.  All interest shall be due and payable in cash at the Final Maturity Date. In lieu of a cash interest payment, each Creditor has the right to convert all or any part of the interest amount into shares of Common Stock of the Company at a conversion price per share of $0.03 per Share.

	 	 
	
3.

	
Security:  For the avoidance of doubt and in addition to the Security outlined in section #2.4 of this Convertible Debenture, Creditor(s) shall receive a first priority lien on the recently issued patent “United States Patent No. 8232876”.  Company acknowledges that the patent listed above is covered by the existing Security Agreement.

	 	 
	
4.

	
Terms of Debenture: Except as provided herein the remaining terms of the Debenture shall be unchanged and fully enforceable by the parties hereto.

 

IN WITHNESS WHEREOF, this Amendment No. 1 to Convertible Debenture has been duly executed and delivered as of July 31, 2012.

SecureAlert, Inc.SecureAlert Monitoring, Inc.

	
By:_/s/  John L. Hastings, III

	
By:   /s/  John L. Hastings, III

	
John L. Hastings, III

	
John L. Hastings, III

	
President and CEO

	
President

 

 

 

(Remainder of Page Intentionally Left Blank)

 

 

  

Page 1of 2

  

 

	
Creditor: Laemi Real Estates Inc.

	
Address:

	  
	
Investment Amount: $500,000.00

	  	  
	  	  	  
	
By:     /s/  Hans-Jorg Gatt

	
Laemi Real Estates, Inc.

	  
	
Hans-Jorg Gatt, Director

	
15 Neugasse

	  
	  	  	  
	  	
.O. Box 424

	  
	
By:    /s/  Christina Meusburger

	
LI-9490

	  
	
Christina Meusburger, Director

	
Principality of Liechtenstein

	  
	  	  	  
	
Creditor: Sapinda Holding BV

	  	  
	
Investment Amount: $500,000.00

	  	  
	  	  	  
	  	  	  
	
By:      /s/  Dr. Peter Wiesing

	
Sapinda Holding BV

	  
	
Dr. Peter Wiesing, Managing Director

	
Attn: Herm Holding BV

	  
	  	
World Trade Center

	  
	  	
Schiphol Boulevard 127, A 3.14

	  
	  	
The Netherlands

	  
	  	  	  
	
Creditor: SAPINDA ASIA Limited

	  	  
	
Investment Amount: $1,000,000.00

	  	  
	  	  	  
	  	  	  
	
By:      /s/ Lars Windhorst

	
Sapinda Asia Limited

	  
	
Lars Windhorst, Managing Director

	
Rooms 803-4, 8/F

	  
	  	
Hang Seng Bank Building

	  
	  	
200 Hennessy Road

	  
	  	
Wanchai

	  
	  	
Hong Kong

	  
	  	  	  
	  	  	  
	
Creditor: George Schmitt

	  	  
	
Investment Amount: $500,000.00

	  	  
	  	
George Schmitt

	  
	
By:      /s/ George Schmitt

	
554 Hamilton Way

	  
	
George Schmitt

	
Pleasanton, CA 94566

	  

 

 

 

Page 2 of 2exh10_4.htm

 

	

 

Exhibit 10.4

*** Text Omitted and Filed Separately

Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 240.24b-2

 

 

 

 

	

 

 

 

Appendix 2 to the Research and Manufacturing Agreement

 

Between

 

Johnson Matthey Pharma Services and Aeolus Pharmaceuticals

 

Dated:  February 16, 2011

 

 

Proposal #:  AEO-110902-972

 

 

Title:  Impurity Isolation and Process Research and Development for AEOL

 

10150

 

 

Preparation Date:  November 15, 2011

 

 

 

  

Page 1 of 6

  

 

PROJECT PROPOSAL

 

	
Client:

	
Aeolus Pharmaceuticals, Inc.

26361 Crown Valley Parkway

Suite 150

Mission Viejo, CA 92691

	  	  
	
Client Contact:

	
John McManus, President and CEO

	  	  
	
Phone:

	
949-547-2840

	
Fax:

	  
	
E-mail:

	
john@aolsrx.com

	  	  

TITLE

 

Impurity Isolation and Process Research and Development for AEOL 10150

 

SUMMARY

 

Aeolus Pharmaceuticals, Inc. (Aeolus) will engage Johnson Matthey Pharma Services (JMPS) to use reasonable commercial efforts to achieve the following objectives:

 

	
1.  

	
Impurity Isolation

	
a.  

	
Isolate key impurities in the API identified as 2318.C (AEOL 10150)

	
b.  

	
Obtain analytical data for isolated impurities

	
2.  

	
Process Research and Development

	
a.  

	
Evaluate current 2318.A to 2318.B process

	
b.  

	
Evaluate current 2318.B to 2318.C process and non-isolated intermediates

	
c.  

	
Evaluate isolation of 2318.C

	
d.  

	
Use of 2318.A material from new process

 

JMPS has considerable experience providing process research and GMP API manufacture for all development stages including commercial API supply.  Estimated price and timeline are summarized below:

 

	
Scope of Work

	
Service Fee

	
Est. Direct Expenses

	
Duration

	
Task 1 Impurity Isolation - key impurities identified in 2318.C (AEOL 101050) – [...***...] FTE months

	
$[...***...]

	
$[...***...]

	
[...***...]

	
Task 2 Process Research and Development - process from 2318.A porphyrin forward – [...***...] FTE months

	
$[...***...]

	
$[...***...]

	
[...***...]

	  	  	  	  

BASIS / ASSUMPTIONS

 

This proposal is based on information obtained from previous JMPS manufacture of AEOL 10150 and current efforts on behalf of Aeolus at JMPS.  This proposal is based on the following assumptions:

 

 

  

Page 2 of 6

  

 

	
1.  

	
Impurity isolation and process development work will be recorded in laboratory notebooks.

	
2.  

	
This proposal assumes that all Intermediates and AEOL 10150 are not potent (category 2 out of 4 on the SafeBridge scale) and will not require the use of containment techniques.  If it is later determined that any of the Intermediates or AEOL 10150 are potent then the costs and timelines may be adjusted.

	
3.  

	
All raw materials are commercially available in quantities necessary to complete this project.

	
4.  

	
JMPS will use 200 grams of non-GMP AEOL 10150 for Task 1.

	
5.  

	
The quantity of impurities A-E estimated in 200 grams of non-GMP AEOL is based on area percent ranges of 0.2-0.7% and assumes a similar response factor and molecular weight to the API.  JMPS will target isolation of up to 500 mg of each impurity as is feasible based on the actual isolated yields and amount of available API.

	
6.  

	
Additional analytical data will be obtained for information only.  JMPS anticipates impurity samples (or enriched mixtures) may be sent for outside testing (mass spectrometry services) as part of the estimate direct expenses for Task 1 (not to exceed $[...***...]).

	
7.  

	
A new process for manufacture of 2318.C (AEOL 10150) is in development and may or may not result in the generation of impurities A-E in TM-113.258.

	
8.  

	
JMPS will not be responsible for any freight charges associated with materials sent directly by or at the request of customers.

 

SCOPE OF WORK

 

TASK 1:  Impurity Isolation

 

[...***...]  The impurity isolation will include but is not limited to the following objectives:

 

	
1.  

	
JMPS will target the isolation of five key impurities identified as impurities A-E in TM-113.258.

	
2.  

	
The targeted impurities are observed in historical lots using the current process for manufacture of 2318.C (AEOL 10150).  Isolation of these impurities will help determine the nature of each impurity as process related or degradation products.

	
3.  

	
JMPS will evaluate whether the impurities can be enriched through non-chromatographic methods to afford crude mixtures enhanced in the desired impurities identified above.  These mixtures would then be subjected to chromatography.

	
4.  

	
JMPS will evaluate chromatography with a variety of silicas to achieve impurity separation under normal or reverse phase conditions.  This may require some optimization to obtain sufficient separation from other impurities and to obtain markers of a suitable quality.  Fractions will be analyzed with either LCMS or GCMS.

	
5.  

	
JMPS will perform preparative chromatography using non-GMP AEOL 10150 to afford a sufficient amount of impurities suitable for analytical analysis with additional materials retained as markers.  A mixture of two or more impurities of a known ratio may be used for development purposes if Aeolus and JMPS mutually agree that further attempts at chromatographic separation would result in loss of material without added benefit.

	
6.  

	
At this time, analysis by HPLC using TM-113.258 will be used to label the isolated materials as supporting markers for analytical development.

 

Deliverables:

	
·  

	
Weekly updates

	
·  

	
Brief summary report

 

  

Page 3 of 6

  

 

TASK 2:  Process Research and Development

 

JMPS will undertake process research and development on the formation of 2318.C (AEOL 10150) starting from isolated 2318.A (porphyrin).  [...***...]

 

The process development will include but is not limited to the following objectives:

 

	
1.  

	
Evaluate current 2318.A to 2318.B process

	
a.  

	
Evaluation of the reaction temperature

	
b.  

	
Evaluation of the reagents for the reaction - specifically the alkylating reagent

	
c.  

	
Evaluation of different salt forms for isolated 2318.B

	
2.  

	
Evaluate current 2318.B to 2318.C process chemistry and non-isolated intermediates

	
a.  

	
Evaluate the effect of different reaction solvents

	
b.  

	
Evaluate the effect of the oxidation state of the metal salt reagent on the oxidation state of 2318.C

	
c.  

	
Evaluate the effect of using anhydrous tetrabutylammonium chloride for the introduction of the chloride counter ions

	
3.  

	
Evaluate isolation of 2318.C

	
a.  

	
Monitor effect of isolation conditions (i.e.  wash solvent, number of washes, etc.) on impurity formation

	
b.  

	
Evaluate different isolation equipment (filtration by pressure filtration and/or centrifuge)

	
c.  

	
Further evaluate final drying conditions

	
4.  

	
Evaluate use of different 2318.A lots obtained from new porphyrin formation process

 

Deliverables:

	
·  

	
Weekly updates

	
·  

	
Brief summary report

 

STAFFING/COMMUNICATIONS

 

	
1.  

	
JMPS will appoint a Project Leader for the work.  The Project Leader will manage the activities at JMPS, have responsibility to meet the project objectives, and serve as the primary technical liaison.

	
2.  

	
JMPS will provide a technical team to support the project.  The team composition will be adjusted as needed.

	
3.  

	
Project updates will be submitted to Aeolus.  Bi-weekly conference calls will be arranged to discuss project results and adjust the project plan.  Meetings between Aeolus and JMPS will be scheduled as needed.

 

PROJECT SCHEDULE

 

	
1.  

	
Firm project scheduling will be established at proposal acceptance.  Scheduling is contingent on prevailing staff and equipment availability.

	
2.  

	
Project communication and coordination will be with one Project Leader.

 

 

  

Page 4 of 6

  

 

PRICE & INVOICE SHEDULE

 

TASK 1:  Impurity isolation is offered on a time and materials basis.  The duration of time to accomplish the scope outlined above is estimated as [...***...] FTE months.  Actual time to accomplish stated goals will depend on research results.  The FTE rate is $[...***...]per month and will be rounded to the nearest [...***...] FTE’s for invoicing purposes.  Direct Expenses (raw materials, supplies, waste, equipment, outside testing and freight) will be charged additionally for the actual cost incurred plus the [...***...]% handling fee.  Outside testing for mass spectrometry services as part of the estimated Direct Expenses are not to exceed $[...***...].

 

	
Scope of Work

	
Service Fee

	
Est. Direct Expenses

	
TASK 1:  Impurity Isolation

	
$[...***...]

	
$[...***...]

	  	  	  

TASK 2:  Process research is offered on a time and materials basis.  The duration of time to accomplish the scope outlined above is estimated as [...***...] FTE months.  Actual time to accomplish stated goals will depend on research results.  The FTE rate is $[...***...]per month and will be rounded to the nearest [...***...] FTE’s for invoicing purposes.  Direct Expenses (raw materials, supplies, waste, equipment, outside testing and freight) will be charged additionally for the actual cost incurred plus the [...***...]% handling fee.

 

	
Scope of Work

	
Service Fee

	
Est. Direct Expenses

	
TASK 2:  Process Research and Development

	
$[...***...]

	
$[...***...]

	  	  	  

Upon acceptance of this proposal, Aeolus will be invoiced for labor and project direct expenses monthly as incurred.  Invoices are payable within thirty (30) days from the date of issuance.

 

 

GENERAL

 

	
1.  

	
This statement of work shall be governed by the terms and conditions of that certain Master Services Agreement of February 16, 2011, between Aeolus Pharmaceuticals, Inc. and Johnson Matthey Pharmaceutical Materials, Inc. d/b/a Johnson Matthey Pharma Services.

	
2.  

	
This proposal is based on a specific scope of work that was developed using the available technical information.  Actual results obtained during project execution may differ from the anticipated results on which the proposal was based.  If a significant difference occurs, JMPS will assess the impact on the scope of work, schedule, and cost, and inform Aeolus.  JMPS and Aeolus will promptly devise and agree to a modified project plan as warranted to ensure that project delays are avoided or minimized.  If these changes result in additional cost, Aeolus must authorize the additional cost in writing prior to implementation using a Scope Change Order.

	
3.  

	
Aeolus consents to release of Aeolus information or material to outside testing services for the limited purpose of obtaining analytical or other requested tests during the project.

	
4.  

	
All estimates of cost and timelines listed above are based on previous experience however they may not reflect the actual cost for Aeolus.  Significant process improvements in yield, purification, or material processing may lower the overall required manpower.  Similarly, the assumption is made that the yields, purification, and material processing results from previous campaigns can be maintained for the outlined scope of work and JMPS may re-evaluate the cost basis for manufacture at each stage based on the most recent data.

	
5.  

	
All work performed is subject to the JMPS Quality System.

	
6.  

	
JMPS acknowledges Aeolus right to review relevant JMPS standard operating procedures (SOPs) and test methods (TMs).

	
7.  

	
This proposal is valid for sixty (60) days from the preparation date.

 

 

  

Page 5 of 6

  

 

AUTHORIZATION

 

Appendix 2:  Impurity Isolation and Process Research and Development for AEOL 10150

 

Proposal #:  AEO-110902-972

 

The proposed work may be authorized by returning (via facsimile, PDF by email, or standard mail services) a signed copy of the Proposal to:

 

[...***...]

Johnson Matthey Pharma Services

70 Flagship Drive

North Andover, MA 01845

 

Phone:                         [...***...]

Fax:                              [...***...]

E-mail:                         [...***...]

 

	
For:  Johnson Matthey Pharma Services

	  
	
/s/ Jayachandra Reddy, PhD__________________

	
Date: February 16, 2011

	  	  
	
Jayachandra Reddy, PhD

General Manager

	  
	  	  

By their signature below, Aeolus Pharmaceuticals authorizes Johnson Matthey Pharma Services to perform the work detailed in this proposal subject to the Terms and Conditions of the Research and Manufacturing Agreement.

 

	
For:  Aeolus Pharmaceuticals, Inc.

	  
	  	  
	
/s/ John McManus__________________________

	
Date: February 16, 2011

	  	  
	
John McManus

President & CEO

	  
	  	  

 

Page 6 of 6

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