Document:

Exhibit
10.7

 

SECURITY
AGREEMENT

 

THIS SECURITY AGREEMENT (this “Agreement”)
dated as of April 3, 2008, is made by and between VIVUS, INC.,
a Delaware corporation (the “Debtor”), DEERFIELD ED
CORPORATION, a Delaware corporation (“ED”), and the entities
listed on Exhibit 1 hereto (each a “Stockholder,” together the “Stockholders”
and together with ED the “Secured Parties”).

 

WHEREAS, the Debtor and the
Secured Parties have entered into that certain Option and Put Agreement dated
as of April 3, 2008 (the “Option and Put Agreement”) pursuant to
which the Secured Parties have granted the Debtor an option to purchase from
the Stockholders all of the outstanding shares of common stock of ED and the
Debtor has agreed to grant to the Stockholders an option to require the Debtor
to purchase from the Stockholders all of the outstanding shares of common stock
of ED, all upon the terms and conditions set forth therein;

 

WHEREAS, the Debtor and ED have
entered into that certain Funding and Royalty Agreement dated as of April 3,
2008 (the “Royalty Agreement”) pursuant to which ED has agreed to
provide funds to the Debtor in consideration of the payment by the Debtor of a
royalty on future sales of certain pharmaceutical products specified therein;

 

WHEREAS, it is a condition
precedent to the Secured Parties’ execution of the Option and Put Agreement
that the Debtor execute and deliver to the Secured Parties a security agreement
in substantially the form hereof;

 

WHEREAS, the Debtor wishes to
grant a security interest in favor of the Secured Parties on the terms and
subject to the conditions set forth herein; and

 

WHEREAS, the Debtor intends to
enter into a separate Security Agreement (the “Royalty Security Agreement”)
with ED, pursuant to which the Debtor will grant to ED a security interest in
the same Collateral (as defined herein) as the Debtor grants a security
interest to the Secured Parties pursuant to this Agreement, which security
interest shall be subordinate to the security interest granted to the Secured
Parties under this Agreement.

 

NOW, THEREFORE, in consideration
of the promises contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

1.1                                 UCC
Terms.  The following terms that are
defined in the Uniform Commercial Code (as hereinafter defined) are used in
this Agreement as so defined (and, in the event any such term is defined
differently for purposes of Article 9 of the Uniform Commercial Code than
for any other purpose or purposes of the Uniform Commercial Code, the Article 9
definition shall govern):  Account,
Documents, Equipment, Inventory, Proceeds and Records.

 

 

1.2                                 Royalty
Agreement Terms.  All other
capitalized terms not otherwise defined herein shall have the meanings ascribed
to such terms in the Royalty Agreement.

 

1.3                                 Other
Defined Terms.  In addition, the
following terms shall have the meanings set forth below:

 

“Collateral” means and includes the
Registrations, the Intellectual Property and all of the Accounts, Equipment and
Inventory arising out of or relating specifically to the Royalty Products,
wherever located, of the Debtor now or hereafter held or received by, in
transit to, or in the possession or control of the Debtor or ED, and any
substitutions or replacements thereof and any products and proceeds thereof,
including without limitation, insurance proceeds.  Equipment of which Debtor makes significant
use for purposes unrelated to the Royalty Products is not Collateral.

 

“Collateral Accounts” means any Accounts
comprising any or all of the Collateral.

 

“Collateral Collection Accounts” has the
meaning set forth in Section 5.4.

 

“Collateral Equipment” means Equipment
comprising part of the Collateral.

 

“Collateral Inventory” means any Inventory
comprising any or all of the Collateral.

 

“Copyright” means the legal right provided by
the Copyright Act of 1976, as amended, to the expression contained in any work
of authorship fixed in any tangible medium of expression together with any
similar rights arising in any other country as a result of statute or treaty,
and any right that may exist to obtain a registration with respect thereto from
any Governmental Authority and any rights arising under any such application.

 

“Event of Default” shall mean any failure of
the Debtor to make any payments to any of the Secured Parties when and as
required pursuant to the Option and Put Agreement within fifteen (15) days
after the Debtor receives written notice of such failure to pay from the
Secured Parties.

 

“Governmental Authority” means any nation or
government, any state or other political subdivision thereof, any municipal,
local, city or county government, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government
and any corporation or other entity owned or controlled, through capital stock
or otherwise, by any of the foregoing.

 

“Intellectual Property” means all Patents,
Marks, Trade Names, Copyrights, Software, Trade Secrets, Know-How, tests,
protocols, standard operating procedures, results and data owned, licensed,
possessed, used or useful by the Debtor specifically relating to or necessary
for the Royalty Products or the composition, manufacture, quality control,
testing, packaging, storage or use of the Royalty Products.  “Intellectual Property” includes the contents
of the drug master file, all adverse event reports made or received by the
Debtor and all submissions made to the FDA relating to the Royalty Products.

 

2

 

“Know-How” means ideas, designs, inventions,
discoveries, concepts, compilations of information, methods, techniques,
procedures and processes, whether confidential or not, whether patentable or not
and whether reduced to practice or not.

 

“Lien” means any mortgage, claim, lien,
security interest, pledge, escrow, charge, option, restriction or encumbrance
of any kind or character whatsoever.

 

“Mark” means any word, name, symbol or device
used by a Person to identify its goods or services, whether or not registered,
all goodwill associated therewith, and any right that may exist to obtain a
registration with respect thereto from any Governmental Authority and any
rights arising under any such application. 
“Mark” includes trademarks and service marks.

 

“Obligations” means all of the obligations and
liabilities of the Debtor to make payments to the Secured Parties pursuant to
the Option and Put Agreement.

 

“Patent” means any patent granted by the U.S. Patent
and Trademark Office or by the comparable agency of any other country, and any
renewal thereof, and any rights arising under any patent application filed with
the U.S. Patent and Trademark Office or the comparable agency of any other
country and any rights that may exist to file any such application.

 

“Permitted Liens” means (i)  Liens for
current Taxes not yet delinquent or Liens for Taxes being contested in good
faith and by appropriate proceedings for which adequate reserves have been
made, (ii)  possessory Liens on personal property imposed by law, such as
the Liens of carriers, warehousemen, mechanics, materialmen and landlords,
incurred in the ordinary course for sums not constituting borrowed money, that
are not overdue or which are being contested in good faith and by appropriate
proceedings, (iii) the Liens granted pursuant to this Agreement (iv) Liens
in favor of the Stockholders and (v) Liens in favor of customs and revenue
authorities arising as a matter of law to secure payments of customs duties in
connection with the importation of goods.

 

“Person” means any corporation, association,
joint venture, partnership, limited liability company, organization, business,
individual, trust, Governmental Authority or other legal entity.

 

“Registrations” has the meaning given such term
in the Royalty Agreement.

 

“Royalty Products” has the meaning given such
term in the Royalty Agreement.

 

“Software” means, with respect to a Person, all
types of computer software programs owned, licensed, used or usable by such
Person, including operating systems, application programs, software tools,
firmware and software imbedded in equipment, including both object code and
source code versions thereof.  The term “Software”
also includes all written or electronic materials that explain the structure or
use of the Software or that were used in the development of the Software,
including logic diagrams, flow charts, procedural diagrams, error reports,
manuals and training materials.

 

“Trade Names” means any words, names or symbols
used by a Person to identify its business.

 

3

 

“Trade Secrets” means the business or technical
information of any Person including, but not limited to, customer lists,
marketing data and Know-How that is not generally known to other Persons who
are not subject to an obligation of nondisclosure and that derives actual or
potential commercial value from being not generally known to other Persons.

 

“Uniform Commercial Code” means the Uniform
Commercial Code as the same may be in effect from time to time in the State of
Delaware; provided that if, by reason of applicable law, the validity or
perfection of any security interest in any Collateral granted under this
Agreement is governed by the Uniform Commercial Code as in effect in another
jurisdiction, then as to the validity or perfection, as the case may be, of
such security interest, “Uniform Commercial Code” means the Uniform Commercial
Code as in effect from time to time in such other jurisdiction.

 

1.4                                 Construction.  Unless the context requires otherwise, words
in the singular include the plural, words in the plural include the singular,
and words importing any gender shall be applicable to all genders.  If a term is defined as one part of speech
(such as a noun), it shall have a corresponding meaning when used as another
part of speech (such as a verb).

 

ARTICLE 2

 

GRANT
OF SECURITY INTEREST

 

2.1                                 Pledge
and Grant of Security Interest.  The
Debtor hereby pledges, assigns and delivers to the Secured Parties and grants
to the Secured Parties, to secure the payment and performance in full of all of
the Obligations, a lien upon and security interest in all of its right, title
and interest in and to the Collateral, wherever located, whether now owned or
hereafter acquired or arising, and all proceeds and products thereof.

 

2.2                                 Security
for Debtor’s Obligations.  This
Agreement and the Collateral secure the full and prompt payment, at any time
and from time to time as and when due (whether at the stated maturity, by
acceleration or otherwise), of all of the Obligations of the Debtor.

 

2.3                                 Security
Interests Absolute.  All rights of
the Secured Parties and security interests hereunder, and all obligations of
the Debtor hereunder, shall be absolute and unconditional and, without limiting
the generality of the foregoing, shall not be released, discharged or otherwise
affected by:

 

(a)                                  any
extension, renewal, settlement, compromise, waiver or release in respect of any
Obligation, the Option and Put Agreement or any other document evidencing or
securing such Obligation, by operation of law or otherwise;

 

(b)                                 any
modification, amendment or supplement to the Option and Put Agreement or any
other document evidencing or securing any Obligation;

 

(c)                                  any
release, non-perfection or invalidity of any direct or indirect security for
any Obligation;

 

4

 

(d)                                 any
insolvency, bankruptcy, reorganization or other similar proceeding affecting
the Debtor or its assets or any resulting disallowance, release or discharge of
all or any portion of the Obligations;

 

(e)                                  the
existence of any claim, set-off or other right which the Secured Parties may
have at any time against the Debtor or any other Person, whether in connection
herewith or any unrelated transactions; provided, that nothing herein
shall prevent the assertion of any such claim by separate suit or compulsory
counterclaim;

 

(f)                                    any
invalidity or unenforceability relating to or against the Debtor for any reason
of any Obligation, or any provision of applicable law or regulation purporting
to prohibit the payment by the Debtor of the Obligations;

 

(g)                                 any
failure by the Secured Parties (A) to file or enforce a claim against the
Debtor (in a bankruptcy or other proceeding), (B) to give notice of the
existence, creation or incurrence by the Debtor of any new or additional
indebtedness or obligation under or with respect to the Obligations, (C) to
commence any action against the Debtor or (D) to proceed with due
diligence in the collection, protection or realization upon any collateral
securing the Obligations; or

 

(h)                                 any
other act or omission to act or delay of any kind by the Secured Parties or the
Debtor or any other corporation or Person or any other circumstance whatsoever
which might, but for the provisions of this clause, constitute a legal or
equitable discharge of the Debtor’s obligations hereunder.

 

ARTICLE 3

 

REPRESENTATIONS
AND WARRANTIES

 

Debtor hereby represents and warrants as follows:

 

3.1                                 Ownership
of Collateral.  The Debtor owns, or
has valid rights as a lessee or licensee with respect to, all Collateral
purported to be pledged by it hereunder, free and clear of any Liens except for
Permitted Liens.  No mortgage, security
agreement, financing statement or other public notice with respect to all or
any part of the Collateral is on file or of record in any government or public
office, and the Debtor has not filed or consented to the filing of any such
mortgage, agreement, statement or notice, except (i) Uniform Commercial
Code financing statements naming the Secured Parties as Secured Parties and (ii) Liens
in favor of ED pursuant to the Royalty Security Agreement.

 

3.2                                 Security
Interests; Filings.  This Agreement,
together with (i) the filing of duly completed and executed Uniform
Commercial Code financing statements naming the Debtor as debtor, the Secured
Parties as secured parties, and describing the Collateral, in the jurisdictions
set forth with respect to the Debtor on Schedule I
hereto (which filing is hereby authorized by the Debtor) and (ii) to the
extent required by applicable law, the filing of duly completed and executed
assignments in the forms required by the U.S. Copyright Office or the U.S.
Patent and Trademark Office, creates, and at all times shall constitute, a
valid and perfected security interest 

 

5

 

in and Lien upon the Collateral in favor of the Secured Parties, to the
extent a security interest and Lien therein can be perfected by such filings,
recordings or possession, as applicable, superior and prior to the rights of
all other Persons therein except for Permitted Liens.

 

3.3                                 Locations.  Schedule I
lists as to the Debtor, (i) its exact legal name, (ii) the
jurisdiction of its incorporation or organization, its federal tax
identification number, and (if applicable) its organizational identification
number, (iii) the addresses of its chief executive office and each other
place of business and (iv) the address of each location at which any of
the Collateral Inventory or Collateral Equipment is kept, except for any new
locations established in accordance with the provisions of Section 4.2.  The Debtor does not presently conduct
business under any prior or other corporate or company name or under any trade
or fictitious names, except as indicated beneath its name on Schedule I, and the Debtor has not entered into any contract
or granted any Lien within the past five (5) years under any name other
than its legal corporate name or a trade or fictitious name indicated on Schedule I.

 

3.4                                 No
Violations.  The signing, delivery
and performance of this Agreement by the Debtor is not prohibited or limited
by, and will not result in the breach of or a default under, any provision of
the certificate of incorporation, bylaws or other formation documents of the
Debtor, any material agreement or instrument binding on the Debtor or any Legal
Requirement applicable to the Debtor, except for such prohibitions,
limitations, defaults or Legal Requirements as would not prevent or impair
consummation by the Debtor of the transactions contemplated hereby, the
performance by the Debtor of its obligations hereunder or the exercise of the
Secured Parties of their rights hereunder. 
The execution, delivery and performance of this Agreement by the Debtor,
the Debtor’s compliance with the terms and provisions hereof and the Secured
Parties’ exercise of any of their rights hereunder, do not and will not
conflict with or result in a breach of any of the terms and provisions of or
constitute a default or create a termination right under, with or without the
passage of time and the giving of notice, any material contract or other
instrument or obligation binding or affecting the Debtor, the Royalty Products
or the Collateral including, without limitation, that certain agreement dated December 28,
2000 between Tanabe Seiyaku Co., Ltd. and the Debtor (the “Tanabe Agreement”),
except as set forth in that certain disclosure letter of even date herewith
delivered by the Debtor to ED pursuant to Section 7
of the Royalty Agreement.

 

3.5                                 No
Restrictions.  There are no statutory
or regulatory restrictions, prohibitions or limitations on the Debtor’s ability
to grant to the Secured Parties a Lien upon and security interest in the
Collateral pursuant to this Agreement or (except for the provisions of the
federal Anti-Assignment Act (41 U.S.C. 15), as amended and the Anti-Claims Act
(31 U.S.C. 3727), as amended) on the exercise by the Secured Parties of their
rights and remedies hereunder (including any foreclosure upon or collection of
the Collateral), and there are no contractual restrictions on the Debtor’s
ability to grant such Lien and security interest.

 

3.6                                 Accounts.  Each Collateral Account is, or at the time it
arises will be, (i) a bona fide, valid and legally enforceable
indebtedness of the account debtor according to its terms, arising out of or in
connection with the sale, lease or performance of goods or services by the
Debtor or any of them, (ii) subject to no offsets, discounts,
counterclaims, contra accounts or any other defense of any kind and character,
other than warranties and discounts customarily given by the Debtor in the
ordinary course of business and warranties provided by applicable law, 

 

6

 

(iii) to the extent listed on any schedule of Collateral Accounts
at any time furnished to the Secured Parties, a true and correct statement of
the amount actually and unconditionally owing thereunder, maturing as stated in
such schedule and in the invoice covering the transaction creating such
Collateral Account, and (iv) not evidenced by any other instrument; or if
so, such other instrument (other than invoices and related correspondence and
supporting documentation) shall promptly be duly endorsed to the order of the
Secured Parties and delivered to the Secured Parties to be held as Collateral
hereunder.  To the knowledge of the
Debtor, there are no facts, events or occurrences that would in any way impair
the validity or enforcement of any Collateral Accounts except as set forth
above.

 

ARTICLE 4

 

COVENANTS

 

The Debtor agrees that so long as any Obligation
remains unpaid:

 

4.1                                 Use
and Disposition of Collateral.  So
long as no Event of Default shall have occurred and be continuing, the Debtor
may, in any lawful manner not inconsistent with the provisions of this
Agreement, use, control and manage the Collateral in the operation of its
business, and receive and use the income, revenue and profits arising therefrom
and the proceeds thereof, in the same manner and with the same effect as if
this Agreement had not been made; provided, however, that the
Debtor will not sell or otherwise dispose of (other than sales of Royalty
Products in the ordinary course of the Debtor’s business), grant any option
with respect to or grant any Lien with respect to or otherwise encumber any of
the Collateral or any interest therein, except for Permitted Liens, except as
may be otherwise expressly permitted in accordance with the terms of this
Agreement (including any applicable provisions therein regarding delivery of
proceeds of sale or disposition to the Secured Parties) or except in connection
with a permitted assignment under Section 10.7
of the Option and Put Agreement.

 

4.2                                 Change
of Name, Locations, etc.  The Debtor
will not (i) change its name, identity or corporate structure, (ii) change
its chief executive office from the location thereof listed on Schedule I, (iii) change the jurisdiction of its
incorporation or organization from the jurisdiction listed on Schedule I (whether by merger or otherwise) or (iv) remove
any Collateral, or any books, records or other information relating to such
Collateral, from the applicable location thereof listed on Schedule I,
or keep or maintain any Collateral at a location not listed on Schedule I, (except for Collateral with an aggregate fair
market value not to exceed $250,000 at any time, in the ordinary course of
business, including, without limitation, for testing or evaluation purposes)
unless in each case the Debtor has (A) given prior written notice to the
Secured Parties of its intention to do so, together with information regarding
any such new location and such other information in connection with such
proposed action as the Secured Parties may reasonably request, and (B) delivered
to the Secured Parties, prior to any such change or removal, such documents,
instruments and financing statements as may be reasonably required by the
Secured Parties, all in form and substance reasonably satisfactory to the
Secured Parties, paid all necessary filing and recording fees and taxes, and
taken all other actions reasonably requested by the Secured Parties, in order
to perfect and maintain the Lien upon and security interest in the Collateral.

 

7

 

4.3                                 Records;
Inspection.

 

(a)                                  The
Debtor will keep and maintain at its own cost and expense satisfactory and
complete records of the Collateral Accounts and all other Collateral, and will
furnish to the Secured Parties from time to time such statements, schedules and
reports (including, without limitation, accounts receivable aging schedules)
with regard to the Collateral as the Secured Parties may reasonably request.

 

(b)                                 The
Debtor shall, from time to time at such times as may be reasonably requested
and upon not less than seven (7) days’ prior notice, permit the Secured
Parties to visit its offices or the premises upon which any Collateral may be
located (provided that with respect to locations owned or operated by third
parties, Debtor shall satisfy its obligations hereunder by making reasonable
commercial efforts to secure access to the Secured Parties), inspect its books
and records relating to the Collateral and make copies and memoranda thereof,
inspect the Collateral, discuss its finances and affairs relating to the
Collateral with its officers, employees and independent accountants and take
any other actions necessary for the protection of the interests of the Secured
Parties in the Collateral, provided that such audit or inspection shall not be
conducted more than once per year.

 

4.4                                 Accounts.  Unless notified otherwise by the Secured
Parties in accordance with the terms hereof, the Debtor shall endeavor to
collect its Collateral Accounts and all amounts owing to it thereunder in the
ordinary course of its business consistent with past practices and shall apply
forthwith upon receipt thereof all such amounts as are so collected to the
outstanding balances thereof, and in connection therewith shall, at the request
of the Secured Parties, take such reasonable action as the Secured Parties may
deem necessary or advisable (within applicable laws) to enforce such
collection.  The Debtor shall promptly
inform the Secured Parties of any disputes with any account debtor or obligor
and of any claimed offset and counterclaim that may be asserted with respect
thereto involving, in each case, any material amount, where the Debtor
reasonably believes that the likelihood of payment by such account debtor is
materially impaired, indicating in detail the reason for the dispute, all
claims relating thereto and the amount in controversy.

 

4.5                                 Collateral
Inventory.  Debtor will maintain at
all times at least six months’ inventory of active pharmaceutical ingredient
for Muse.

 

4.6                                 Intellectual
Property.  The Debtor will execute
and deliver to the Secured Parties fully completed collateral assignments in
the forms requested by the Secured Parties for recordation in the U.S.
Copyright Office or the U.S. Patent and Trademark Office with regard to any
registered Intellectual Property owned by the Debtor and included among the
Collateral.  In the event that after the
date hereof the Debtor shall acquire any or effect any registration of any such
registered Intellectual Property, the Debtor shall promptly furnish written
notice thereof to the Secured Parties and execute and deliver to the Secured
Parties, as promptly as possible after the date of such acquisition or
registration fully completed collateral assignments in the forms requested by
the Secured Parties for recordation in the U.S. Copyright Office or the U.S.
Patent and Trademark Office.  The Debtor
hereby appoints ED its attorney-in-fact to execute, deliver and record any and
all such amendments, agreements, instruments and documents for the 

 

8

 

foregoing purposes, all acts of such attorney being hereby ratified and
confirmed and such power, being coupled with an interest, shall be irrevocable
for so long as this Agreement shall be in effect with respect to the Debtor.

 

4.7                                 Collateral
in Possession of Third Party. 
Without limiting the generality of any other provision of this
Agreement, the Debtor agrees that it shall not permit any Collateral to be in
the possession of any bailee, warehouseman, agent, processor or other third
party at any time (except for relocations of Collateral with an aggregate fair
market value not to exceed $250,000 at any time, in the ordinary course of
business, including, without limitation, for testing or evaluation purposes)
unless such bailee or other Person shall have been notified of the security
interest created by this Agreement (or, if required under applicable law in
order to perfect the Secured Parties’s security interest in such Collateral,
such bailee or other Person shall have acknowledged to the Secured Parties in
writing that it is holding such Collateral for the benefit of the Secured
Parties and subject to such security interest and to the instructions of the
Secured Parties) and the Debtor shall have exercised its commercially reasonable
efforts to obtain from such bailee or other Person, at the Debtor’s sole cost
and expense, the written acknowledgement described above (if not already
required by applicable law to perfect the Secured Parties’s security interest)
and agreement to waive and release any Lien (whether arising by operation of
law or otherwise) it may have with respect to such Collateral, such agreement
to be in form and substance reasonably satisfactory to the Secured Parties.

 

4.8                                 Protection
of Security Interest; Further Assurances. 
The Debtor will, at its expense and in such manner and form as the
Secured Parties may reasonably require, execute, deliver, file and record any
financing statement, specific assignment or other paper, obtain all necessary
consents of third parties and take any other action that may be necessary or
desirable, or that the Secured Parties may reasonably request, in order to
create, preserve, perfect or validate the security interests granted hereby or
to enable the Secured Parties to exercise and enforce their rights hereunder
with respect to any of the Collateral. 
To the extent permitted by applicable law, the Debtor hereby authorizes
the Secured Parties to execute and file, in the name of the Debtor or otherwise,
Uniform Commercial Code financing statements which the Secured Parties in their
sole discretion may deem necessary or appropriate to further perfect the
security interests.

 

ARTICLE 5

 

5.1                                 General
Authority.  Upon the occurrence and
during the continuance of an Event of Default, the Debtor hereby irrevocably
appoints ED and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact, in the name of the Debtor or its own
name, for the sole use and benefit of the Secured Parties, but at the Debtor’s
expense, at any time and from time to time, to take any and all appropriate
action and to execute any and all documents and instruments which may be
necessary or desirable to carry out the terms of this Agreement and, without
limiting the foregoing, the Debtor hereby gives the Secured Parties the power
and right on its behalf, without notice to or further assent by the Debtor to
do the following:

 

9

 

(a)                                  to
receive, take, endorse, assign and deliver any and all checks, notes, drafts,
acceptances, documents and other negotiable and nonnegotiable instruments taken
or received by the Debtor as, or in connection with, the Collateral;

 

(b)                                 to
demand, sue for, collect, receive and give acquittance for any and all monies
due or to become due upon or in connection with the Collateral;

 

(c)                                  to
commence, settle, compromise, compound, prosecute, defend or adjust any claim,
suit, action or proceeding with respect to, or in connection with, the
Collateral;

 

(d)                                 to
sell, transfer, assign or otherwise deal in or with the Collateral or any part
thereof, as fully and effectually as if the Secured Parties were the absolute
owners thereof; and

 

(e)                                  to
do, at their option, but at the expense of the Debtor, at any time or from time
to time, all acts and things which the Secured Parties deem necessary to
protect or preserve the Collateral and to realize upon the Collateral.

 

5.2                                 Rights
and Remedies.  If an Event of Default
shall have occurred and be continuing, the Secured Parties shall be entitled to
exercise in respect of the Collateral all of their rights, powers and remedies
provided for herein or otherwise available to them by law, in equity or
otherwise, including all rights and remedies of a secured party under the
Uniform Commercial Code, and shall be entitled in particular, but without
limitation of the foregoing, to exercise the following rights, which the Debtor
agrees to be commercially reasonable:

 

(a)                                  To
notify any or all account debtors or obligors under any Collateral Accounts or
other Collateral of the security interest in favor of the Secured Parties
created hereby and to direct all such Persons to make payments of all amounts
due thereon or thereunder directly to the Secured Parties or to an account
designated by the Secured Parties; and in such instance and from and after such
notice, all amounts and proceeds received by the Debtor in respect of any
Collateral Accounts or other Collateral shall be received in trust for the
benefit of the Secured Parties hereunder, shall be segregated from the other
funds of the Debtor and shall be forthwith deposited into such account or paid
over or delivered to the Secured Parties in the same form as so received (with
any necessary endorsements or assignments), to be held as Collateral and
applied to the Obligations as provided herein;

 

(b)                                 To
take possession of, receive, endorse, assign and deliver, in the name of any
Secured Party or in the name of the Debtor, all checks, notes, drafts and other
instruments relating to any Collateral, including receiving, opening and
properly disposing of all mail addressed to the Debtor concerning Collateral
Accounts and other Collateral; to verify with account debtors or other contract
parties the validity, amount or any other matter relating to any Collateral
Accounts or other Collateral, in the name of any Secured Party or in the name
of the Debtor; to accelerate any indebtedness or other obligation constituting
Collateral that may be accelerated in accordance with its terms; to take or
bring all actions and suits deemed necessary or appropriate to effect
collections and to enforce payment of any Collateral Accounts or other
Collateral; to settle, 

 

10

 

compromise or
release in whole or in part any amounts owing on Collateral Accounts or other
Collateral; and to extend the time of payment of any and all Collateral
Accounts or other amounts owing under any Collateral and to make allowances and
adjustments with respect thereto, all in the same manner and to the same extent
as the Debtor might have done;

 

(c)                                  To
transfer to or register in the name of any Secured Party or the name of any of
their agents or nominees all or any part of the Collateral;

 

(d)                                 To
require the Debtor to, and the Debtor hereby agrees that it will at its expense
and upon request of the Secured Parties forthwith, assemble all or any part of
the Collateral as directed by the Secured Parties and make it available to the
Secured Parties at a place designated by the Secured Parties;

 

(e)                                  To
enter and remain upon the premises of the Debtor and take possession of all or
any part of the Collateral, with or without judicial process; to use the
materials, services, books and records of the Debtor for the purpose of
liquidating or collecting the Collateral, whether by foreclosure, auction or
otherwise; and to remove the same to the premises of the Secured Parties or any
designated agent for such time as the Secured Parties may desire, in order to
effectively collect or liquidate the Collateral; and

 

(f)                                    To
sell, resell, assign and deliver, in their sole discretion, all or any of the
Collateral, in one or more parcels, at public or private sale, at any of the
Secured Parties’ offices or elsewhere, for cash, upon credit or for future
delivery, at such time or times and at such price or prices and upon such other
terms as the Secured Parties may deem satisfactory.  If any of the Collateral is sold by the
Secured Parties upon credit or for future delivery, the Secured Parties shall
not be liable for the failure of the purchaser to purchase or pay for the same
and, in the event of any such failure, the Secured Parties may resell such
Collateral.  In no event shall the Debtor
be credited with any part of the proceeds of sale of any Collateral until and
to the extent cash payment in respect thereof has actually been received by the
Secured Parties.  Each purchaser at any
such sale shall hold the property sold absolutely, free from any claim or right
of whatsoever kind, including any equity or right of redemption of the Debtor,
and the Debtor hereby expressly waives all rights of redemption, stay or
appraisal, and all rights to require the Secured Parties to marshal any assets
in favor of the Debtor or any other party or against or in payment of any or
all of the Obligations, that it has or may have under any rule of law or
statute now existing or hereafter adopted. 
No demand, presentment, protest, advertisement or notice of any kind
(except any notice required by law, as referred to below), all of which are hereby
expressly waived by the Debtor, shall be required in connection with any sale
or other disposition of any part of the Collateral.  If any notice of a proposed sale or other
disposition of any part of the Collateral shall be required under applicable law,
the Secured Parties shall give the Debtor at least ten (10) days’ prior
notice of the time and place of any public sale and of the time after which any
private sale or other disposition is to be made, which notice the Debtor agrees
is commercially reasonable.  The Secured
Parties shall not be obligated to make any sale of Collateral if they shall
determine not to do so, regardless of the fact that notice of sale may have
been given.  The Secured Parties may,
without notice or publication, adjourn 

 

11

 

any public or
private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for sale, and such sale may, without
further notice, be made at the time and place to which the same was so
adjourned.  Upon each public sale and, to
the extent permitted by applicable law, upon each private sale, the Secured
Parties may purchase all or any of the Collateral being sold, free from any
equity, right of redemption or other claim or demand, and may make payment
therefor by endorsement and application (without recourse) of the Obligations
in lieu of cash as a credit on account of the purchase price for such
Collateral.

 

5.3                                 Application
of Proceeds.

 

(a)                                  All
proceeds collected by the Secured Parties upon any sale, other disposition of
or realization upon any of the Collateral, together with all other moneys
received by the Secured Parties hereunder, shall be applied as follows:

 

(i)                                     first,
to payment of the expenses of such sale or other realization, including
reasonable compensation to the Secured Parties and their agents and counsel,
and all expenses, liabilities and advances incurred or made by the Secured
Parties, their agents and counsel in connection therewith or in connection with
the care, safekeeping or otherwise of any or all of the Collateral, and any
other unreimbursed expenses for which the Secured Parties are to be reimbursed
pursuant to Section 6.1;

 

(ii)                                  second,
after payment in full of the amounts specified in clause (i) above,
to payment of the Obligations; and

 

(iii)                               finally, after payment
in full of the amounts specified in clauses (i) and
(ii) above, any surplus then
remaining shall be paid to the Debtor, or its successors or assigns, or to
whomever may be lawfully entitled to receive the same or as a court of
competent jurisdiction may direct.

 

(b)                                 The
Debtor shall remain liable to the extent of any deficiency between the amount
of all proceeds realized upon sale or other disposition of the Collateral
pursuant to this Agreement and the amount of any then outstanding
Obligations.  Upon any sale of any
Collateral hereunder by the Secured Parties (whether by virtue of the power of
sale herein granted, pursuant to judicial proceeding, or otherwise), the
receipt of the Secured Parties or the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold,
and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Secured Parties
or such officer or be answerable in any way for the misapplication thereof.

 

5.4                                 Collateral
Collection Accounts.  Upon the
occurrence and during the continuance of an Event of Default, the Secured
Parties shall have the right to cause to be established and maintained, at the
principal office of any Secured Party or such other location or locations as
they may establish from time to time in their discretion, one or more accounts
(collectively, “Collateral Collection Accounts”) for the collection of
cash proceeds of the Collateral.  Such 

 

12

 

proceeds, when deposited, shall continue to constitute Collateral for
the Obligations and shall not constitute payment thereof until applied as
herein provided.  The Secured Parties
shall have sole dominion and control over all funds deposited in any Collateral
Collection Account, and such funds may be withdrawn therefrom only by the
Secured Parties.  Upon the occurrence and
during the continuance of an Event of Default, the Secured Parties shall have
the right to apply amounts held in the Collateral Collection Accounts in
payment of the Obligations in the manner provided for in Section 5.3.

 

5.5                                 Grant
of License.  The Debtor hereby grants
to the Secured Parties, with effect upon the occurrence and during the
continuance of an Event of Default, an irrevocable, non-exclusive license or
sublicense (as applicable) of any duration, with right to sublicense
(exercisable without payment of royalty or other compensation to the Debtor),
in, to and under all Intellectual Property now owned or licensed or hereafter
acquired or licensed by the Debtor, wherever the same may be located throughout
the world, for any purpose relating to the Royalty Products, subject to
applicable law and subject to the requirements of the Tanabe Agreement,
including, without limitation, Section 2.3
thereof.

 

5.6                                 Waivers.  The Debtor, to the greatest extent not
prohibited by applicable law, hereby (i) agrees that it will not invoke,
claim or assert the benefit of any rule of law or statute now or hereafter
in effect (including, without limitation, any right to prior notice or judicial
hearing in connection with the Secured Parties’ possession, custody or
disposition of any Collateral or any appraisal, valuation, stay, extension,
moratorium or redemption law), or take or omit to take any other action, that
would or could reasonably be expected to have the effect of delaying, impeding
or preventing the exercise of any rights and remedies in respect of the
Collateral, the absolute sale of any of the Collateral or the possession
thereof by any purchaser at any sale thereof, and waives the benefit of all
such laws and further agrees that it will not hinder, delay or impede the
execution of any power granted hereunder to the Secured Parties, but that it
will permit the execution of every such power as though no such laws were in
effect, (ii) waives all rights that it has or may have under any rule of
law or statute now existing or hereafter adopted to require the Secured Parties
to marshal any Collateral or other assets in favor of the Debtor or any other
party or against or in payment of any or all of the Obligations, and (iii) waives
all rights that it has or may have under any rule of law or statute now
existing or hereafter adopted to demand, presentment, protest, advertisement or
notice of any kind (except notices expressly provided for herein).

 

ARTICLE 6

 

6.1                                 Indemnity
and Expenses.  Debtor agrees:

 

(a)                                  To
indemnify and hold harmless the Secured Parties and each of their directors,
managers, officers, employees, agents, members and affiliates from and against
any and all claims, damages, demands, losses, obligations, judgments and
liabilities (including, without limitation, reasonable attorneys’ fees and
expenses) in any way arising out of or in connection with this Agreement and
the transactions contemplated hereby, except to the extent the same shall arise
as a result of the gross negligence or willful misconduct of the party seeking to
be indemnified; and

 

13

 

(b)                                 To
pay and reimburse Secured Parties upon demand for all reasonable costs and
expenses (including, without limitation, reasonable attorneys’ fees and
expenses) that the Secured Parties may incur in connection with (i) the
custody, use or preservation of, or the sale of, collection from or other
realization upon, any of the Collateral, including the reasonable expenses of
re-taking, holding, preparing for sale or lease, selling or otherwise disposing
of or realizing on the Collateral, (ii) the exercise or enforcement of any
rights or remedies granted hereunder (including, without limitation, under Article 5), under the Option and Put Agreement or
otherwise available to them (whether at law, in equity or otherwise), or (iii) the
failure by the Debtor to perform or observe any of the provisions hereof.  The provisions of this Section 6.1
shall survive the execution and delivery of this Agreement, the repayment of
any of the Obligations and the termination of this Agreement, the Option and
Put Agreement or any other instruments or documents executed and delivered
pursuant to or in connection with this Agreement.

 

6.2                                 No
Waiver.  The Secured Parties’ failure
at any time or times hereafter to require strict performance by the Debtor of
any of the provisions of this Agreement or of the Option and Put Agreement
shall not waive, affect or diminish any right of the Secured Parties at any
time or times hereafter to demand strict performance therewith and with respect
to any other provision of this Agreement, and any waiver of any Event of
Default shall not waive or affect any other Event of Default, whether prior or
subsequent thereto, and whether of the same or a different type.  None of the provisions of this Agreement
shall be deemed to have been waived by any act or knowledge of the Secured
Parties, their agents, officers or employees except by an instrument in writing
signed by an officer of each of the Secured Parties and directed to the Debtor
specifying such waiver.

 

6.3                                 Binding
Effect.  This Agreement and all other
instruments and documents executed and delivered pursuant hereto or in
connection herewith shall be binding upon and inure to the benefit of the
successors and assigns of the parties hereto.

 

6.4                                 Governing
Law.  This Agreement shall be
construed and interpreted in accordance with the internal laws and judicial
decisions of the State of Delaware without giving effect to the conflict of
laws principles thereof, except to the extent that matters of perfection and
validity of the security interests hereunder, or remedies hereunder, are
governed by the laws of a jurisdiction other than the State of Delaware.

 

6.5                                 Survival
of Agreement.  All representations
and warranties of the Debtor and all obligations of the Debtor contained herein
shall survive the execution and delivery of this Agreement.

 

6.6                                 Pre-Filing
and Filing of Financing Statements. 
By execution of this Agreement, the Debtor (a) expressly authorizes
the Secured Parties to prepare and file or cause to be filed such Uniform
Commercial Code financing statements (including attached schedules, exhibits,
and addenda) as the Secured Parties may deem reasonably necessary to perfect
the security interests and liens granted herein and (b) hereby ratifies
and confirms that the Secured Parties were and are authorized to file all such
Uniform Commercial Code financing statements 

 

14

 

(including attached schedules, exhibits, and addenda) prior to the
execution and delivery of this Agreement, and hereby ratifies any such filings.

 

6.7                                 Continuing
Security Interest; Term; Successors and Assigns; Assignment; Termination and
Release; Survival.  This Agreement
shall create a continuing security interest in the Collateral and shall secure
the payment and performance of all of the Obligations as the same may arise and
be outstanding at any time and from time to time from and after the date
hereof, and shall (i) remain in full force and effect until all of the
Obligations have been finally discharged in full, (ii) be binding upon and
enforceable against the Debtor and its successors and assigns (provided,
however, that the Debtor may not sell, assign or transfer any of its
rights, interests, duties or obligations hereunder without the prior written
consent of the Secured Parties, except that the Debtor may assign this
Agreement without such consent to any successor to all or substantially all of
the Debtor’s assets or business to which the Option and Put Agreement relates
(whether by stock purchase, asset purchase, merger, operation of law or
otherwise); provided, however, that any such assignment shall be effective only
if the assignee shall have assumed all of the obligations of the Debtor under
the Option and Put Agreement and this Agreement), and (iii) inure to the
benefit of and be enforceable by the Secured Parties and their successors and
assigns.  Upon the termination of the
security interest created by this Agreement, the security interest in the
Collateral granted herein shall terminate and all rights to the Collateral
shall revert to Debtor.  Upon such
termination of the security interest, the Secured Parties hereby authorize the
Debtor to file any UCC termination statements necessary to effect such
termination and the Secured Parties will execute and deliver to the Debtor any
additional documents or instruments reasonably requested by the Debtor to
evidence such termination.

 

6.8                                 Notices.  All notices, consents, waivers and other
communications hereunder shall be in writing and shall be (i) delivered by
hand, (ii) sent by facsimile transmission, or (iii) sent certified
mail or by a nationally recognized overnight delivery service, charges prepaid,
to the address set forth below (or such other address for a Party as shall be
specified by like notice):

 

	
  If to the Secured
  Parties, to:

  	
  c/o Deerfield
  Capital, L.P.

  
	
   

  	
  780 Third
  Avenue, 37th Floor

  
	
   

  	
  New York, New
  York 10017

  
	
   

  	
  Attention: James E. Flynn

  
	
   

  	
  Facsimile: (212) 573-8111

  
	
   

  	
   

  
	
  Copy to:

  	
  Robinson,
  Bradshaw & Hinson, P.A.

  
	
   

  	
  101 North Tryon
  Street, Suite 1900

  
	
   

  	
  Charlotte, North
  Carolina 28246

  
	
   

  	
  Attention: David
  J. Clark

  
	
   

  	
  Facsimile: (704)
  373-3990

  
	
   

  	
   

  
	
  If to the
  Debtor, to:

  	
  Vivus, Inc.

  
	
   

  	
  1172 Castro
  Street

  
	
   

  	
  Mountain View,
  California 94040

  
	
   

  	
  Attention:
  Leland F. Wilson

  
	
   

  	
  Facsimile: (650)
  934-5389

  

 

15

 

	
  Copy to:

  	
  Wilson Sonsini
  Goodrich & Rosati

  
	
   

  	
  650
  Page Mill Road

  
	
   

  	
  Palo Alto, CA
  94304

  
	
   

  	
  Attention: Ian
  B. Edvalson

  
	
   

  	
  Facsimile: (650)
  493-6811

  

 

Each such notice
or other communication shall be deemed to have been duly given and to be
effective (x) if delivered by hand, immediately upon delivery if delivered
on a Business Day during normal business hours and, if otherwise, on the next
Business Day; (y) if sent by facsimile transmission, immediately upon
confirmation that such transmission has been successfully transmitted on a
Business Day before or during normal business hours and, if otherwise, on the
Business Day following such confirmation, or (z) if sent by certified mail
or a nationally recognized overnight delivery service, on the day of delivery
if delivered during normal business hours on a Business Day and, if otherwise,
on the first Business Day after delivery. 
Notices and other communications sent via facsimile must be followed by notice
delivered by hand or by certified mail or overnight delivery service as set
forth herein within five (5) Business Days.

 

6.9                                 Severability.  To the extent any provision of this Agreement
is prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

 

6.10                           Captions.  The captions to the sections of this
Agreement have been inserted for convenience only and shall not limit or modify
any of the terms hereof.

 

6.11                           Counterparts.  This Agreement may be executed in two or more
counterparts, which when assembled shall constitute one and the same agreement.

 

6.12                           Amendments
and Waivers.  Any provision of this
Agreement may be amended or waived, if, but only if, such amendment or waiver
is in writing and is signed by the Debtor and each of the Secured Parties.

 

[Signature
Page Follows]

 

16

 

IN WITNESS WHEREOF, intending to
be legally bound, the Debtor has caused this Security Agreement to be duly
executed as of the date first above written.

 

	
   

  	
  VIVUS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy E.
  Morris

  
	
   

  	
  Name: Timothy E.
  Morris

  
	
   

  	
  Title: Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  Accepted:

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  ED CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeff Kaplan

  
	
   

  	
  Name: Jeff
  Kaplan

  
	
   

  	
  Title: Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  PRIVATE DESIGN FUND, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Flynn

  
	
   

  	
  Name: James
  Flynn

  
	
   

  	
  Title: General
  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  PRIVATE DESIGN

  INTERNATIONAL, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Flynn

  
	
   

  	
  Name: James
  Flynn

  
	
   

  	
  Title: General
  Partner

  

 

17

 

SCHEDULE
I

 

	
  Name and
  Jurisdiction of Incorporation:

  	
   

  	
  VIVUS, Inc.,
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
  Federal Tax
  Identification Number:

  	
   

  	
  94-3136179

  
	
   

  	
   

  	
   

  
	
  Chief Executive
  Office:

  	
   

  	
  1172 Castro
  Street, Mountain View, CA 94040

  
	
   

  	
   

  	
   

  
	
  Other Place of
  Business:

  	
   

  	
  735 an 745
  Airport Road, Lakewood, NJ 08701

  
	
   

  	
   

  	
   

  
	
  Locations of
  Collateral Inventory and Collateral Equipment:

  	
   

  	
  1172 Castro
  Street, Mountain View, CA 94040

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  735 and 745
  Airport Road, Lakewood, NJ 08701

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15 Ingram
  Boulevard, La Vergne, TN 37086 (Cardinal Health)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  118 Melrich
  Road, Cranbury, NJ 08512 (E-Beam)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  500 West 4th
  Street, Lima, OH 45804 (Beam One)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  930 Wanamaker
  Avenue, Ontario, CA 91761 (Medegen)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  122 Fairfield
  Road, Fairfield, NJ 07004 (Gibraltor Labs)

  

 

 

EXHIBIT 1

 

Stockholders

 

	
  Stockholders

  
	
  Deerfield Private Design International, L.P., a
  British Virgin Islands limited partnership

  
	
  Deerfield
  Private Design Fund, L.P., a Delaware limited partnershipExhibit 10.1

 

SECOND AMENDMENT TO LEASE

 

THIS SECOND AMENDMENT TO LEASE is made and entered into this 12th day  of February, 2008, by and between Kesef, LLC
(the “Landlord”) and CoBiz Financial Inc., f/k/a Colorado Business Bankshares, Inc.
(the “Tenant”).

 

Recitals

 

A.            The
parties entered into an Office Lease dated September 1, 2001, as amended
by the First Amendment to Lease dated October 19, 2001 (collectively, the “Lease”)
wherein the Tenant leases 56,671 rentable square feet of office space, as more
particularly defined in the Lease, at the real property commonly known and
numbered as 821 17th Street, Denver, Colorado (hereinafter referred
to as the “Original Premises”).

 

B.            The
expiration date of the Lease is May 31, 2011.

 

C.            Pursuant
to Article 34 of the Lease, the Tenant has the option to lease additional
space in the building that becomes available. 
By execution of this Agreement, the Tenant hereby exercises its option
to lease the 6th floor of the building.

 

D.            The
Landlord and the Tenant are desirous of amending the Lease to provide for an
extension of the lease term, an expansion of the Original Premises, and other
changes described herein on the following terms and conditions.

 

NOW, THEREFORE, for valuable consideration,
the receipt and sufficiency of  which are
mutually acknowledged, the parties agree as follows:

 

1.             Lease
of Additional Space.  In
consideration of the payment of the rent hereinafter provided, and the keeping
and performance of each of the covenants and agreements of the Tenant, hereinafter
set forth, Landlord has and does hereby lease unto the Tenant the additional
space located on the 6th floor of the building consisting of 10,608 rentable
square feet (the “Expanded Premises”) for a total of 67,279 rentable square
feet.  The lease of the Expanded Premises
shall commence upon the vacation of the current tenant (Icenogle, Norton,
Smith, Blieszner & Gilida, PC) which shall be no later than June 1,
2008.  The Landlord shall deliver thirty
(30) days prior written notice to the Tenant of the vacation of the current
tenant.  In this Agreement, the term “Premises”
shall mean the Original Premises and the Expanded Premises.

 

2.             Delivery of the Expanded Premises. The Landlord
shall deliver and the Tenant shall accept the Expanded Premises in its “AS IS
WHERE IS” condition and without any express or implied warranty and without any
representation as to physical condition or suitability of the Tenant’s intended
use.

 

3.             Extended Term. 
The Lease shall be extended for an additional term of five (5) years
(the “Extended Term) expiring on May 31, 2016 (the “Expiration Date”).  Upon delivery of possession of the Expanded
Premises to Tenant, the first sentence in Article 1, 

 

 

paragraph G shall be deemed superseded and Tenant shall pay monthly Base
Rent as follows:

 

	
  Upon possession – 5/31/09

  	
  $131,754.75 per month

  
	
  6/1/09 – 5/31/10

  	
  $134,558.00 per month

  
	
  6/1/10 – 5/31/11

  	
  $137,361.33 per month

  
	
  6/1/11 – 5/31/12

  	
  $140,164.58 per month

  
	
  6/1/12 – 5/31/13

  	
  $142,967.92 per month

  
	
  6/1/13 – 5/31/14

  	
  $145,771.17 per month

  
	
  6/1/14 – 5/31/15

  	
  $148,574.50 per month

  
	
  6/1/15 – 5/31/16

  	
  $151,377.75 per month

  

 

Notwithstanding anything herein to the contrary, in the event that the Expanded
Premises is delivered to Tenant on any day of the month other than the first
day of the month, the monthly Base Rent shall be pro-rated accordingly.

 

4.             Tenant’s Share
Adjustment.  Article 1,
Paragraph F shall be amended to reflect that the Tenant’s Share shall be deemed
to be sixty-three and 33/100 percent (63.33%), subject to Articles 3 and 30.

 

5.             Additional Rent
Adjustment.  Article 1,
Paragraph H shall be amended to reflect that the Tenant shall pay Tenant’s
Share of Taxes and Expenses in excess of $7.61 per rentable square foot, as
further described in Article 3.

 

6.             Option to Renew.  Article 33 of the Lease shall be amended
to reflect that  the option to renew
shall be exercised by the Tenant no earlier than 450 days and no later than 365
days prior to the expiration of the Extended Term. All other terms and
conditions of Article 33 shall remain unchanged.

 

7.             Availability
of Additional Rental Space.  Article 34
of the Lease shall be deleted in its entirety and replaced with the following
paragraph:

 

During the term of this Lease, provided that
Tenant has not been in default of this Lease, in the event that any additional
space in the Building becomes available due to (i) a tenant moving out or (ii) such
lease being terminated or having expired (the “Available Space”), Landlord
shall provide Tenant with written notice of the same and Tenant shall have
thirty (30) days in which to exercise this option by delivering written notice
to Landlord, failing which this option to expand for the Available Space which
was offered shall automatically terminate and Landlord shall be able to lease the
offered Available Space on terms acceptable to the Landlord in the Landlord’s
sole and absolute discretion.  The amount
of minimum rent to be paid for the Available Space shall be at the same rate
per square foot currently being paid by the Tenant for the existing Premises at
the time of possession of the additional space. 
Notwithstanding anything herein to the contrary, Tenant shall not be
allowed to exercise the rights contained in this paragraph if Tenant is  in the last year of the Extended Term unless
Tenant exercises its option to renew; and 

 

2

 

provided further, if Tenant has exercised its option to renew and is in
the last year of the option period, Tenant shall be required to extend the term
of this Lease at then prevailing market rates as a condition of exercising the
rights contained in this paragraph.

 

8.             Incorporation of
Lease Provisions.  All of the terms
and conditions of the Lease which have not been modified in this Agreement
shall apply to the Lease of the Conference Rooms with the same force and effect
as if set forth herein in full.  All
capitalized terms shall have the meaning set forth in the Lease unless
separately defined in this Agreement.  If
any portion of this Agreement is in conflict with the terms and conditions of
the Lease, the terms and conditions of this Agreement shall control.

 

	
   

  	
  LANDLORD:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KESEF, LLC, a Colorado

  	
   

  
	
   

  	
  limited liability company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Evan Makovsky

  	
   

  
	
   

  	
  Evan Makovsky, Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COBIZ FINANCIAL INC., f/k/a Colorado

  	
   

  
	
   

  	
  Business Bankshares, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Richard Dalton

  	
   

  
	
   

  	
  Richard Dalton, President

  	
   

  

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]