Document:

peregrine_10q-ex10113.htm

Exhibit 10.113

    SECURED
TERM PROMISSORY NOTE

    
    

     

    
      	$3,500,000	
              December 19,
      2008

            

    

    

    FOR VALUE
RECEIVED, PEREGRINE
PHARMACEUTICALS, INC., a Delaware corporation (“Peregrine”), and AVID BIOSERVICES, INC., a
Delaware corporation (“Avid,” and together with
Peregrine, jointly and severally, individually and collectively, referred to as
“Borrower”) hereby
jointly and severally promise to pay to the order of MIDCAP FUNDING I, LLC, a
Delaware limited liability company, or the registered holder of this Note
(“Lender”), at such place of payment as the registered holder of this Secured
Term Promissory Note (this “Promissory Note”) may specify from time to time in
writing, in lawful money of the United States of America, the principal amount
of Three Million Five Hundred Thousand Dollars ($3,500,000) or such other
principal amount as Lender has advanced to Borrower, together with interest in
accordance with the Loan Agreement (as hereinafter defined) (or if and when
applicable, at a rate equal to the “Default Rate” (as defined in the Loan
Agreement referenced below) based upon a year consisting of 360 days, with
interest computed daily based on the actual number of days in each month until
the principal balance is paid in full.

     

    This
Promissory Note is executed and delivered in connection with that certain Loan
and Security Agreement of even date herewith by and among Borrower, MidCap
Funding I, LLC, as agent for Lenders, MidCap Funding I, LLC, as a Lender, and
BlueCrest Capital Finance, L.P., as a Lender (as the same may from time to time
be amended, modified, restated or supplemented in accordance with its terms, the
“Loan Agreement”), and is entitled to the benefit and security of the Loan
Agreement and the other Loan Documents (as defined in the Loan Agreement), to
which reference is made for a statement of all of the terms and conditions
thereof.  All payments shall be made in accordance with the Loan
Agreement.  All terms defined in the Loan Agreement shall have the
same definitions when used herein, unless otherwise defined
herein.  An Event of Default under the Loan Agreement shall constitute
a default under this Promissory Note, and upon any such Event of Default and
default, all principal and interest and other obligations owing under this
Promissory Note may be accelerated and declared immediately due and payable as
provided for in the Loan Agreement.  Reference to the Loan Agreement
shall not affect or impair the absolute and unconditional obligation of Borrower
to pay all principal and interest and premium, if any, under this Promissory
Note upon demand or as otherwise provided herein.

     

    Borrower
waives presentment and demand for payment, notice of dishonor, protest and
notice of protest under the Uniform Commercial Code as in effect in the State of
Maryland or any applicable law.  Borrower agrees to make all payments
under this Promissory Note without setoff, recoupment or deduction and
regardless of any counterclaim or defense.  This Promissory Note has
been negotiated and delivered to Lender and is payable in the State of
Maryland.  This Promissory Note shall be governed by and construed and
enforced in accordance with, the laws of the State of Maryland, excluding any
conflicts of law rules or principles that would cause the application of the
laws of any other jurisdiction.  Without limiting the generality of
the preceding paragraph, the provisions of Section 11 of the Loan Agreement
regarding jurisdiction, venue and jury trial waiver are incorporated
herein.

     

    [SIGNATURES
APPEAR ON THE FOLLOWING PAGE]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, Borrower, as of the day and year first above written, has
caused this Note to be executed under seal.

    
    

     

     

    
      	 	
              PEREGRINE
      PHARMACEUTICALS, INC.

               

            	 
	 	By:  /s/ Steven
      King  	(SEAL)
	 	
              Name:
      Steven King

              Title:
      President and CEO

            	 
	 	 	 
	 	AVID BIOSERVICES,
      INC.	 
	 	 	 
	 	By:  /s/ Steven
      King 	(SEAL)
	 	
              Name:
      Steven King

              Title:
      President and CEOperegrine_10q-ex10114.htm

    Exhibit 10.114

     

    INTELLECTUAL
PROPERTY SECURITY AGREEMENT

    

    This Intellectual Property Security
Agreement is entered into as of December 19, 2008 by and between MIDCAP FUNDING
I, LLC ("Agent") and AVID BIOSERVICES, INC. ("Grantor").

    

    RECITALS

    

    A.           The
Lenders have agreed to make certain advances of money and to extend certain
financial accommodation to Grantor (the "Loans") in the amounts and manner set
forth in that certain Loan and Security Agreement by and between Agent, the
Lenders, Peregrine Pharmaceuticals, Inc. and Grantor dated the Effective Date
(as the same may be amended, modified or supplemented from time to time, the
"Loan Agreement"; capitalized terms used herein are used as defined in the Loan
Agreement).  The Lenders are willing to make the Loans to Grantor, but
only upon the condition, among others, that Grantor shall grant to Agent, for
the ratable benefit of the Lenders, a security interest in certain Copyrights,
Trademarks, Patents, and Mask Works (as each term is described below) to secure
the obligations of Grantor under the Loan Agreement.

    

    B.           Pursuant
to the terms of the Loan Agreement, Grantor has granted to Agent, for the
ratable benefit of the Lenders, a security interest in all of Grantor's right,
title and interest, whether presently existing or hereafter acquired, in, to and
under all of the Collateral.

    

    NOW, THEREFORE, for good and valuable
consideration, receipt of which is hereby acknowledged, and intending to be
legally bound, as collateral security for the prompt and complete payment when
due of its obligations under the Loan Agreement, Grantor hereby represents,
warrants, covenants and agrees as follows:

    

    AGREEMENT

    

    To secure its obligations under the
Loan Agreement, Grantor grants and pledges to Agent, for the ratable benefit of
the Lenders, a security interest in all of Grantor's right, title and interest
in, to and under its intellectual property (all of which shall collectively be
called the "Intellectual Property Collateral"), including, without limitation,
the following:

    

    (a)           Any
and all copyright rights, copyright applications, copyright registrations and
like protections in each work or authorship and derivative work thereof, whether
published or unpublished and whether or not the same also constitutes a trade
secret, now or hereafter existing, created, acquired or held, including without
limitation those set forth on Exhibit A attached
hereto (collectively, the "Copyrights");

    

    (b)           Any
and all trade secrets, and any and all intellectual property rights in computer
software and computer software products now or hereafter existing, created,
acquired or held;

    

    (c)           Any
and all design rights that may be available to Grantor now or hereafter
existing, created, acquired or held;

    

    (d)           All
patents, patent applications and like protections including, without limitation,
improvements, divisions, continuations, renewals, reissues, extensions and
continuations-in-part of the same, including without limitation the patents and
patent applications set forth on Exhibit B attached
hereto (collectively, the "Patents");

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)           Any
trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire
goodwill of the business of Grantor connected with and symbolized by such
trademarks, including without limitation those set forth on Exhibit C attached
hereto (collectively, the "Trademarks");

    

    (f)           All
mask works or similar rights available for the protection of semiconductor
chips, now owned or hereafter acquired, including, without limitation those set
forth on Exhibit
D attached hereto (collectively, the  “Mask
Works”);

    

    (g)           Any
and all claims for damages by way of past, present and future infringements of
any of the rights included above, with the right, but not the obligation, to sue
for and collect such damages for said use or infringement of the intellectual
property rights identified above;

    

    (h)           All
licenses or other rights to use any of the Copyrights, Patents, Trademarks, or
Mask Works and all license fees and royalties arising from such use to the
extent permitted by such license or rights;

    

    (i)           All
amendments, extensions, renewals and extensions of any of the Copyrights,
Trademarks, Patents, or Mask Works; and

    

    (j)           All
proceeds and products of the foregoing, including without limitation all
payments under insurance or any indemnity or warranty payable in respect of any
of the foregoing.

    

    This security interest is granted in
conjunction with the security interest granted to Agent, for the ratable benefit
of the Lenders, under the Loan Agreement.  The rights and remedies of
Agent with respect to the security interest granted hereby are in addition to
those set forth in the Loan Agreement and the other Loan Documents, and those
which are now or hereafter available to Agent as a matter of law or
equity.  Each right, power and remedy of Agent provided for herein or
in the Loan Agreement or any of the Loan Documents, or now or hereafter existing
at law or in equity shall be cumulative and concurrent and shall be in addition
to every right, power or remedy provided for herein and the exercise by Agent of
any one or more of the rights, powers or remedies provided for in this
Intellectual Property Security Agreement, the Loan Agreement or any of the other
Loan Documents, or now or hereafter existing at law or in equity, shall not
preclude the simultaneous or later exercise by any person, including Agent, of
any or all other rights, powers or remedies.

    

    [Signature
page follows.]

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties have
caused this Intellectual Property Security Agreement to be duly executed by its
officers thereunto duly authorized as of the first date written
above.

    

     

    
      	 	 	
              GRANTOR:

               

            
	Address of
      Grantor: 	 	AVID BIOSERVICES,
      INC.
	 	 	 
	 	 	
              By:
      /s/ Steven
  King 

            
	Attn: 	 	
               

              Title:
      President  

            
	 	 	 
	 	 	
              AGENT:

               

            
	Address
      of Agent:	 	MIDCAP
      FUNDING I, LLC
	 	 	 
	7735 Old Georgetown
      Road, Suite 400	 	By: /s/ Joshua Groman  
	Bethesda,
      Maryland 20814 

              Attn:
      Portfolio Management- Life Sciences

            	 	
               

              Title:
      Managing
      Director     

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    Copyrights

     

     

    
      	
              Description

            	
              Registration/

              Application

              Number

            	
              Registration/

              Application

              Date

            
	
              None

            	 
      	 
      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    Patents

    

    

    
      	
              Description

            	
              Registration/

              Application

              Number

            	
              Registration/

              Application

              Date

            
	
              None

            	 
      	 
      

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    Trademarks

    

    

    
      	
              Description

            	
              Registration/

              Application

              Number

            	
              Registration/

              Application

              Date

            
	
              None

            	 
      	 
      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    EXHIBIT
D

    

    Mask
Works

    

    

    
      	
              Description

            	
              Registration/

              Application

              Number

            	
              Registration/

              Application

              Date

            
	
              None

            	 
      	 
      

    

     

    
      7

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