Document:

Exhibit
10.139

 

THE IMMUNE RESPONSE
CORPORATION

8% CONVERTIBLE SECURED PROMISSORY NOTE

 

	
  $80,000

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
  May 9, 2003

  

 

In consideration of the receipt of $80,000, the
undersigned, The Immune Response Corporation, a Delaware corporation (the “Issuer”),
hereby unconditionally promises to pay to the order of Cheshire Associates LLC
(the “Purchaser”), at the office of the Purchaser located at 535 Madison
Avenue, 18th Floor, New York, New York 10022, or such other address
designated by the Purchaser, in lawful money of the United States of America
and in immediately available funds, on May 9, 2004 (the “Note Maturity Date”)
the principal amount of Eighty Thousand Dollars ($80,000) and accrued interest
at the rate of eight (8%) percent per annum based on a 365-day year (“Interest
Rate”).

 

Interest (other than interest accruing as a result of
a failure by Issuer to pay any amount when due as set forth below) in respect
of the Note shall accrue until all amounts remaining owed under such Note shall
be fully repaid, and shall be due and payable in full on the Note Maturity
Date.  If all or a portion of the
principal amount of the Note or any interest payable thereon shall not be
repaid when due whether on the applicable repayment date, by acceleration or otherwise,
such overdue amounts on such Note shall bear interest at a rate per annum that
is three (3%) percent above the Interest Rate (i.e., 11%) from the date
of such non-payment until such amount is paid in full (after as well as before
judgment).  All payments to be made by
Issuer hereunder or pursuant to the Notes shall be made in lawful money of the
United States by certified check or wire transfer in immediately available
funds. Any interest accruing on overdue amounts shall be payable on demand.

 

The obligation to make the payments provided for in
this Note are absolute and unconditional, and are not subject to any defense,
set-off, counterclaim, rescission, recoupment or adjustment whatsoever.

 

The obligations under this Note shall be secured by that
certain Intellectual Property Security Agreement, dated November 9, 2001, by
and between the Issuer and Kevin Kimberlin Partners, L.P., a Delaware limited
partnership (“KKP”), as amended by Amendment No. 1, dated February 26, 2002, by
and between the Issuer, KKP and Oshkim Limited Partnership (“Oshkim”), and as
further amended by Amendment No. 2, dated July 11, 2002, by and between the
Issuer, KKP, Oshkim and The Kimberlin Family 1998 Irrevocable Trust (the
“Kimberlin Trust”).

 

This Note (including all accrued and unpaid interest)
shall be convertible, at the sole option of the Purchaser, in whole or in part,
into shares of the Issuer’s common stock, par value $0.0025 per share (the
“Common Stock”), at the closing price of the Common Stock on the date immediately
preceding the date hereof (i.e., $1.35).

 

 

Upon the occurrence of any one or more of the Events
of Default specified on Exhibit A, attached hereto, all amounts then
remaining unpaid on this Note and all other promissory notes issued by the Issuer
to Purchaser or to any related party of the Purchaser shall become, or may be
declared by the Purchaser to be, immediately due and payable.

 

This Note is freely transferable and assignable, in
whole or in part, by the Purchaser, and such transferee or assignee shall have
the same rights hereunder as the Purchaser. 
The Issuer may not assign or delegate any of its obligations under this
Note without the prior written consent of the Purchaser (or its successor, transferee
or assignee).

 

All parties now and hereafter liable with respect to
this Note, whether maker, principal, surety, guarantor, endorser or otherwise,
hereby waive presentment, demand, protest and all other notices of any kind.

 

The Issuer agrees to pay all of the Purchaser’s
expenses, including reasonable attorneys’ costs and fees, incurred in
collecting sums due under this Note.

 

All or part of the Note may be prepaid by Issuer upon
at least five (5) days’ prior written notice to the Purchaser thereof; provided,
however, that any such prepayment on such Note shall be first applied to
accrued and unpaid interest of the outstanding Note and then against its
outstanding principal.

 

This Note shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.

 

	
   

  	
  THE IMMUNE RESPONSE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

Exhibit
A

 

Events
of Default.

 

If any of the following events (each, an “Event of
Default”) shall occur:

 

(i)                                     Issuer
shall fail to pay any principal or interest on the Note, or on any other
promissory note issued by the Issuer to the Purchaser or to any related party
of the Purchaser, within three (3) business days after such payment becomes due
in accordance with the terms thereof or hereof;

 

(ii)                                  Any
representation or warranty made or deemed made by Issuer herein or in any other
agreement, certificate or instrument contemplated by the Note Purchase
Agreement, dated as of November 9, 2001, by and between the Issuer and KKP, as
amended by Amendment No. 1, dated as of February 14, 2002 and Amendment No. 2,
dated as of May 3, 2002, each by and between the Issuer, KKP, and Oshkim and as
further amended by Amendment No. 3, dated as of July 11, 2002, by and between
the Issuer, KKP, Oshkim and the Kimberlin Trust (the “Agreement”) or that is
contained in any certificate, document or financial or other statement
furnished by Issuer at any time under or in connection with the Agreement shall
have been incorrect in any material respect on or as of the date made or deemed
made;

 

(iii)                               Issuer shall default, in
any material respect, in the observance or performance of any other agreement
contained in the Agreement or any other agreement or instrument contemplated by
the Agreement (including the Notes, Warrant Agreements, and the Intellectual
Property Security Agreement, each as defined in the Agreement), and such
default shall continue unremedied for a period of ten (10) days after written
notice to Issuer of such default;

 

(iv)                              (a)  Issuer shall commence any case, proceeding
or other action (x) under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization,
conservatorship or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts or (y)
seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or
Issuer shall make a general assignment for the benefit of its creditors; or (b)
there shall be commenced against Issuer any case, proceeding or other action of
a nature referred to in clause (a) above that (A) results in the entry of an
order for relief of any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of sixty (60) days; or (c)
there shall be commenced against Issuer any case, proceeding or other action
seeking issuance of a warrant of attachment, execution, distrait or similar
process against all or any substantial part of its assets that results in the
entry of an order for any such relief that shall not have been vacated,
discharged, or stayed or bonded pending appeal within sixty (60) days from the
entry thereof; or (d) Issuer shall take any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the acts set
forth in clauses (a), (b) or (c) above; or (e) Issuer shall generally not, or
shall be unable to, or shall admit in writing its inability to, pay its debts
as they become due;

 

 

(v)
Issuer shall default in the payment of principal on any indebtedness (to any
party other than Purchaser) in excess of $200,000 beyond the period of grace,
if any, provided in the instrument or agreement under which such indebtedness
was created; or

 

(vi)
Issuer shall have been unable to obtain by June 28, 2003 stockholder approval
of the Next Issuer Offering and the Purchaser’s
participation therein in
accordance with Rule 4350(i) of the National Association of Securities Dealers,
Inc.;

 

then, and in any such event, (x) if such event is an
Event of Default specified in clause (iv) above of with respect to Issuer, the
Note (with all accrued and unpaid interest thereon) and all other amounts owing
under the Agreement or under any of the promissory notes issued by the Issuer
to the Purchaser or any related party of the Purchaser shall automatically and
immediately become due and payable and (y) if such event is any other Event of
Default, Purchaser may, by written notice to Issuer, immediately declare the
Note (with all accrued and unpaid interest thereon) and all other promissory
notes (with all accrued and unpaid interest thereon) issued by the Issuer to
the Purchaser or any related party of the Purchaser to be due and payable
forthwith, whereupon the same shall immediately become due and payable.  Except as expressly provided above,
presentation, demand, protest and all other notices of any kind are hereby
expressly waived by Issuer.Exhibit
10.140

 

THE IMMUNE RESPONSE
CORPORATION

8% CONVERTIBLE SECURED PROMISSORY NOTE

 

	
  $1,000,000

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
  May 15, 2003

  

 

In consideration of the receipt of $1,000,000, The
Immune Response Corporation, a Delaware corporation (the “Issuer”), hereby
unconditionally promises to pay to the order of Cheshire Associates LLC (the
“Purchaser”), at the office of the Purchaser located at 535 Madison Avenue, 18th
Floor, New York, New York 10022, or such other address designated by the
Purchaser, in lawful money of the United States of America and in immediately
available funds, on September 15, 2003 (the “Note Maturity Date”) the principal
amount of One Million Dollars ($1,000,000) and all accrued interest at the rate
of eight (8%) percent per annum based on a 365-day year (“Interest Rate”).

 

Interest (other than interest accruing as a result of
a failure by Issuer to pay any amount when due as set forth below) in respect
of this Note shall accrue until all amounts remaining owed under such Note
shall be fully repaid, and shall be due and payable in full on the Note
Maturity Date.  If all or a portion of
the principal amount of the Note or any interest payable thereon shall not be
repaid when due whether on the applicable repayment date, by acceleration or
otherwise, such overdue amounts on such Note shall bear interest at a rate per
annum that is three (3%) percent above the Interest Rate (i.e., 11%)
from the date of such non-payment until such amount is paid in full (after as
well as before judgment).  All payments
to be made by the Issuer hereunder or pursuant to the Notes shall be made in
lawful money of the United States by certified check or wire transfer in
immediately available funds. Any interest owing on overdue amounts shall be
payable on demand.

 

The obligation to make the payments provided for in
this Note is absolute and unconditional, and is not subject to any defense,
set-off, counterclaim, rescission, recoupment or adjustment whatsoever.

 

The obligations under this Note shall be secured by that
certain Intellectual Property Security Agreement, dated November 9, 2001 (the
“Security Agreement”), by and between the Issuer and Kevin Kimberlin Partners,
L.P., a Delaware limited partnership (“KKP”), as amended by Amendment No. 1,
dated February 26, 2002, by and between the Issuer, KKP and Oshkim Limited
Partnership (“Oshkim”), and as further amended by Amendment No. 2, dated July
11, 2002, by and between the Issuer, KKP, Oshkim and The Kimberlin Family 1998
Irrevocable Trust.

 

This Note (including all accrued and unpaid interest)
shall become convertible on the terms to be reasonably negotiated in good faith
by the Purchaser and the Issuer.

 

Upon the occurrence of any one or more of the Events
of Default specified on Exhibit A attached hereto, all amounts then
remaining unpaid on this Note may be declared by the Purchaser to be
immediately due and payable.

 

 

This Note is freely transferable and assignable, in
whole or in part, by the Purchaser, and such transferee or assignee shall have
the same rights hereunder as the Purchaser. 
The Issuer may not assign or delegate any of its obligations under this
Note without the prior written consent of the Purchaser (or its successor,
transferee or assignee).

 

All parties now and hereafter liable with respect to
this Note, whether maker, principal, surety, guarantor, endorser or otherwise,
hereby waive presentment, demand, protest and all other notices of any kind.

 

The Issuer agrees to pay all of the Purchaser’s
expenses, including reasonable attorneys’ costs and fees, incurred in
collecting sums due under this Note.

 

All or part of the Note may be prepaid by Issuer upon
at least five (5) days’ prior written notice to the Purchaser thereof; provided,
however, that any such prepayment on such Note shall be first applied to
accrued and unpaid interest of the outstanding Note and then against its
outstanding principal.

 

This Note shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.

 

	
   

  	
  THE IMMUNE RESPONSE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

Exhibit
A

 

Events
of Default.

 

If any of the following events (each, an “Event of
Default”) shall occur:

 

(i)                                     Issuer
shall fail to pay any principal or interest on the Note within three (3)
business days after such payment becomes due in accordance with the terms
thereof or hereof;

 

(ii)                                  Issuer
shall default, in any material respect, in the observance or performance of any
other agreement contained in the Security Agreement and such default shall
continue unremedied for a period of ten (10) days after written notice to
Issuer of such default; or

 

(iii)                               (a)  Issuer shall commence any case, proceeding
or other action (x) under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization,
conservatorship or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it bankrupt or insolvent,
or seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts or (y)
seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or
Issuer shall make a general assignment for the benefit of its creditors; or (b)
there shall be commenced against Issuer any case, proceeding or other action of
a nature referred to in clause (a) above that (A) results in the entry of an
order for relief of any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of sixty (60) days; or (c)
there shall be commenced against Issuer any case, proceeding or other action
seeking issuance of a warrant of attachment, execution, distrait or similar
process against all or any substantial part of its assets that results in the
entry of an order for any such relief that shall not have been vacated,
discharged, or stayed or bonded pending appeal within sixty (60) days from the
entry thereof; or (d) Issuer shall take any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the acts set
forth in clauses (a), (b) or (c) above; or (e) Issuer shall generally not, or
shall be unable to, or shall admit in writing its inability to, pay its debts
as they become due;

 

then, and in any such event, (x) if such event is an
Event of Default specified in clause (iii) above of with respect to Issuer, the
Note (with all accrued and unpaid interest thereon) and all other amounts owing
under any of the promissory notes issued by the Issuer to the Purchaser or any
related party of the Purchaser shall automatically and immediately become due
and payable and (y) if such event is any other Event of Default, Purchaser may,
by written notice to Issuer, immediately declare the Note (with all accrued and
unpaid interest thereon) to be due and payable forthwith, whereupon the same
shall immediately become due and payable. 
Except as expressly provided above, presentation, demand, protest and
all other notices of any kind are hereby expressly waived by Issuer.

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