Document:

Exhibit 10.2

 

SECOND FORBEARANCE AGREEMENT

 

THIS
SECOND FORBEARANCE AGREEMENT (this “Agreement”) is
entered into as of October 9, 2009, among Vitesse Semiconductor
Corporation, a Delaware corporation (the “Borrower”), the
other Loan Parties (as defined below), and Whitebox VSC, Ltd., a limited
partnership organized under the law of the British Virgin Islands (the “Agent”).  Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to
such terms in the Loan Agreement dated as of August 23, 2007, by and among
the lenders from time to time signatory thereto (collectively the “Lenders” and individually each a “Lender”),
the Borrower, and the Agent, as one of the Lenders and as agent for the
Lenders.

 

RECITALS

 

WHEREAS,
the Borrower and U.S. Bank National Association (the “Trustee”)
are parties to that certain Indenture, dated as of September 22, 2004 (the
“Indenture”), which governs the
Borrower’s 1.50% Convertible Subordinated Debentures due 2024 (the “Notes”).

 

WHEREAS,
pursuant to the Indenture, the Borrower has issued Notes in principal amount of
$96,700,000 and certain holders of Notes (the “Forbearing
Holders”) exercised their rights pursuant to Section 11.1 of
the Indenture and required the Borrower to repurchase their Notes (the “Forbearing Notes”) on October 1, 2009 (the “Put Repurchase Date”).

 

WHEREAS,
a default has occurred and is continuing under Section 4.1(d) of the
Indenture as a result of the Borrower’s failure to mail a Repurchase Event
Notice (as defined in the Indenture) pursuant to Section 11.3 of the
Indenture and a Repurchase Event Purchase Notice (as defined in the Indenture)
pursuant to Section 11.4 of the Indenture or to file a Schedule TO
pursuant to Section 11.7 of the Indenture (the “Notes
Existing Defaults”).

 

WHEREAS,
the Forbearing Holders assert (and the Borrower disputes) that an event of
default has occurred and is continuing under Section 4.1(c) of the
Indenture because of the Borrower’s failure to repurchase the Forbearing Notes
from the Forbearing Holders on the Put Repurchase Date at a purchase price
equal to 113.76% of the principal amount of such Forbearing Notes (the “Notes  Put Repurchase Default”
and together with the Notes Existing Defaults, the “Notes
Specified Defaults”).

 

WHEREAS,
the Borrower and the Forbearing Holders have entered into a Forbearance
Agreement dated as of October 9, 2009 in substantially the form previously
provided by the Borrower to the Agent (the “Indenture
Forbearance Agreement”) pursuant to which the Forbearing Holders have
agreed to forbear from exercising their rights and remedies with respect to the
Notes Specified Defaults for a certain limited period, under the terms and
conditions specified therein.

 

WHEREAS,
the Notes Put Repurchase Default may result in an Event of Default under Section 7.1(i) of
the Loan Agreement and may also result in an Event of Default under Sections

 

1

 

7.1(d) and
(e) of the Loan Agreement (the “Loan Specified Defaults”)
(it being expressly understood that the Borrower makes no admissions hereunder
to any Event of Default under the Loan Agreement).

 

WHEREAS,
the Borrower has requested that the Lenders agree to forbear, and the Lenders
have agreed to forbear, from exercising their rights and remedies with respect
to any Loan Specified Defaults during the Forbearance Period (as defined below)
should any Loan Specified Default be determined to have actually occurred, on
the terms and conditions and in consideration for the terms set forth below.

 

AGREEMENT

 

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

 

1                        Acknowledgement
and Reaffirmation.  The
Borrower hereby acknowledges and agrees that:

 

(a)          (i) the
Borrower is indebted and liable to the Lenders in the aggregate principal
amount of $30,000,000 in respect of the Term Loans, plus interest, fees,
expenses (including but not limited to attorneys’, advisors’ and consultants’
fees that are reimbursable under the Loan Agreement), charges and all other
obligations incurred in connection therewith as provided in the Loan Agreement,
and (ii) such amounts outstanding under the Loan Agreement constitute
valid and subsisting obligations of the Borrower to the Agent and the Lenders
that are not subject to any credits, offsets, defenses, claims, counterclaims
or adjustments of any kind.  The Borrower
and the Guarantors (collectively, the “Loan Parties”)
hereby (i) acknowledge and affirm their obligations under the respective
Loan Documents to which they are party, (ii) acknowledge and affirm the
liens created and granted by the Loan Parties in the Loan Documents and (iii) agree
that this Agreement shall in no manner adversely affect or impair such
obligations and/or liens; and

 

(b)         the Lenders do
not waive any of the Loan Specified Defaults.

 

2                  Forbearance.  Subject to the terms and conditions set forth
herein, from the Effective Date through the earlier of (a) the date on
which the Loan Parties fail to comply with the covenants contained in Section 7
of this Agreement, (b) the date on which the “Forbearance Period” under
and as defined in the Indenture Forbearance Agreement applicable to them ends, (c) the
date of the commencement by the Borrower of a voluntary bankruptcy, insolvency,
reorganization or other similar proceeding or the commencement of any similar
non-voluntary case or proceeding with respect to the Borrower, and (d) 12:00
noon (EST) on October 16, 2009 (the “Forbearance Period”),
the Lenders hereby agree to forbear from exercising any and all rights or
remedies available under the Loan Agreement or applicable law as a result of
the Loan Specified Defaults, but only to the extent that such rights and
remedies arise solely as a result of the occurrence and continuation of the
Loan Specified Defaults; provided, however, that in each case,
the Lenders shall be free to exercise any or all rights and remedies arising on
account of any Loan Specified Default at the end of the Forbearance Period; provided  further, that except as

 

2

 

expressly set forth herein,
this Agreement shall not operate as a waiver, amendment or modification of the
Loan Agreement.

 

3                  No Waiver of Rights or
Remedies.  The Lenders
and the Loan Parties agree that, other than as expressly set forth herein,
nothing in this Agreement, or the performance by the Lenders of their
obligations hereunder, constitutes or shall be deemed to constitute a waiver of
any of the rights or remedies available to the Lenders or the Loan Parties
under the Loan Agreement, the Loan Documents or any applicable law, all of
which are hereby reserved.

 

4                  Representations and
Warranties of the Loan Parties.  The Loan Parties hereby represents and
warrants to the Forbearing Holders that:

 

(a)          No Default or
Event of Default exists (or shall exist), to the knowledge of the Loan Parties,
as of the date hereof (other than the Specified Defaults); and

 

(b)         The execution,
delivery and performance by the Loan Parties of this Agreement has been duly
authorized by all necessary corporate or other organizational action, and do
not and will not: (i) contravene the terms of any of such Person’s
organizational documents; (ii) conflict with or result in any breach or
contravention of, or result in or require the creation of any Lien under, or
require any payment to be made under (A) any contractual obligation to
which such Person is a party or affecting such Person or the properties of such
Person or any of its subsidiaries or (B) any order, injunction, writ or
decree of any governmental authority or any arbitral award to which such Person
or its property is subject; or (iii) violate any applicable law.  No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
governmental authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against the Loan Parties of this Agreement.

 

5                  Interest.  The Term Loans will accrue interest at a rate
per annum equal to the Effective Rate plus 2.0% during the term of this
Agreement.

 

6                  Representation
and Warranty of the Agent and the Lenders. The Agent and the Lenders
represent and warrant to the Borrower that no Default or Event of Default exists
(or shall exist), to the knowledge of the Agent or such Lender, as of the date
hereof (other than the Loan Specified Defaults).

 

7                  Covenants.

 

(a)          The Loan Parties shall not
repay, in part or in full, any Notes that are not Forbearing Notes.

 

(b)         The Loan Parties shall not
incur, create, issue, assume or suffer to exist any indebtedness for borrowed
money other than indebtedness existing on the Effective Date.

 

(c)          The Loan
Parties shall not incur, create, assume or suffer to exist any lien on any
assets or properties of any Loan Party other than (i) liens existing on
the Effective

 

3

 

Date
and (ii) customary liens incurred in the ordinary course of business and
otherwise permitted under the Loan Agreement.

 

(d)         During the term
hereof, none of the Loan Parties shall breach its obligation to exclusively
pursue the Noteholder Transaction (as defined below) after delivery of the
written notice provided pursuant to Section 5 of the Indenture Forbearance
Agreement.

 

(e)          The Borrower
shall not enter into an exchange of the Forbearing Notes (the “Noteholder Transaction”) without the prior written consent
of the Lenders and agrees that any failure of the Borrower to comply with this Section 7.1(e) shall
constitute an Event of Default under the Loan Agreement.

 

8                  Conditions.  The agreement of the Agent, the Lenders, and
the Loan Parties hereunder shall become effective as of the date when the
following conditions shall have been satisfied (the “Effective
Date”):

 

(a)          the Agent shall
have received counterparts of this Agreement duly executed by the Loan Parties;
and

 

(b)         the Agent shall
have received fully executed copies of the Indenture Forbearance Agreement
(which copy may be redacted to omit confidential information concerning the
Forbearing Holders from their respective signature pages), in form and
substance satisfactory to the Agent in its reasonable discretion.

 

9                  Release.  In partial consideration of the Lenders’
willingness to enter into this Agreement, the Loan Parties hereby release the
Lenders and the Agent and their officers, affiliates, employees,
representatives, agents, financial advisors, counsel and directors from any and
all actions, causes of action, claims, demands, damages and liabilities of
whatever kind or nature, in law or in equity, now known or unknown, suspected
or unsuspected to the extent that any of the foregoing arises from any action
or failure to act in connection with the Loan Agreement or any other Loan
Document on or prior to the date hereof.

 

10            Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument.

 

11            Effectiveness.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt
by the Borrower and the Agent of written or telephonic notification of such
execution and authorization of delivery thereof.

 

12            APPLICABLE LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

13            Entirety.  This Agreement and the Loan Documents embody
the entire agreement between the parties and supersede all prior agreements and
understandings, if any, relating to the

 

4

 

subject
matter hereof.  This Agreement together
with the Loan Documents represent the final agreement between the parties and
may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties.  There
are no oral agreements between the parties. 
In the event there is a conflict between this Agreement and the Loan
Documents, this Agreement shall control.

 

14            Severability.  In case any provision in or obligation
hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

15            Successors and Assigns;
Transfers.  This
Agreement shall be binding upon and inure to the benefit of each of the parties
and their respective successors and assigns. 
The Lenders may transfer all or any of the Term Loans at any time during
the Forbearance Period provided that the transferee shall agree in writing with
the Borrower, as a condition to such transfer, to be bound by all of the provisions
of this Agreement as if they had been original signatories to this Agreement.

 

16            Notices.  Any notice or other communication to any
party in connection with this Agreement shall be in writing and shall be sent
by manual delivery, facsimile transmission, overnight courier or United States
mail (postage prepaid) addressed to such party at the address specified on the
signature page hereof, or at such other address as such party shall have
specified to the other party hereto in writing. 
All periods of notice shall be measured from the date of delivery
thereof if manually delivered, from the date of sending thereof if sent by
facsimile transmission, from the first business day after the date of sending
if sent by overnight courier, or from four days after the date of mailing if
mailed.

 

17            Waivers and Amendments.  This Agreement can be waived, modified,
amended, or terminated only explicitly in a writing signed by the parties.  A waiver so signed shall be effective only in
the specific instance and for the specific purpose given.

 

18            Captions.  Captions in this Agreement are for reference
and convenience only and shall not affect the interpretation or meaning of any
provision of this Agreement.

 

[Signature Page Follows]

 

5

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

 

	
   

  	
  VITESSE
  SEMICONDUCTOR CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VITESSE
  MANUFACTURING & DEVELOPMENT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VITESSE
  SEMICONDUCTOR SALES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VITESSE
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

6

 

	
   

  	
  WHITEBOX
  VSC, LTD, as Lender and Agent under the Loan Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

7EXHIBIT
4.1

 

BIOSANTE PHARMACEUTICALS, INC.,

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

Trustee

 

 

SUPPLEMENTAL INDENTURE

 

Dated as of October 14, 2009

 

To

 

INDENTURE

 

Dated as of October 20, 2004

 

 

Relating to

 

Cell Genesys, Inc.

 

3.125% Convertible Senior Subordinated Notes due 2011

 

 

SUPPLEMENTAL INDENTURE

 

This SUPPLEMENTAL INDENTURE,
dated as of the 14th day of October, 2009, is by and between BIOSANTE
PHARMACEUTICALS, INC., a Delaware corporation (“BioSante”) and U.S. BANK
NATIONAL ASSOCIATION, as trustee under the Indenture referred to below (the “Trustee”).

 

WITNESSETH:

 

WHEREAS, Cell Genesys, Inc.,
a Delaware corporation (the “Company”) and the Trustee are parties to
that certain Indenture dated as of October 20, 2004 (as amended, modified
and supplemented from time to time, the “Indenture”), pursuant to which
the Company issued its  3.125%
Convertible Senior Notes due 2011 (the “Securities”);

 

WHEREAS, BioSante and
the Company have entered into an Agreement and Plan of Merger dated as of June 29,
2009 (the “Merger Agreement”), pursuant to which the Company will merge
with and into BioSante and BioSante will continue  as the surviving corporation (the “Merger”);

 

WHEREAS, pursuant to
the Merger Agreement, each share of the Company’s common stock outstanding
immediately prior to the effective time of the consummation of the Merger (the
effective time of the consummation of the Merger, herein the “Effective Time”)
will be converted into the right to receive 0.1828 of a share of common stock
of BioSante;

 

 

WHEREAS, Section 5.1
of the Indenture provides that the Company shall not merge with another
corporation unless certain conditions specified therein are satisfied,
including, inter alia, that any resulting successor corporation be
organized under the laws of the United States or any State thereof and shall
expressly assume, by an indenture supplemental to the Indenture, all of the
obligations of the Company under the Securities and the Indenture;

 

WHEREAS, Section 9.4
of the Indenture provides, inter alia, that if there occurs a merger of
the Company with another person, as a result of which holders of the Company’s
common stock shall receive stock or other property in exchange for such Company
common stock, then the Company, or the successor corporation, and the Trustee
shall execute a supplemental indenture providing that the Securities shall be
convertible into the kind and amount of shares of stock  or other property which the  Holder of such Securities would have been
entitled to receive upon such merger had such Securities been converted into
common stock of the Company immediately prior to such merger;

 

WHEREAS, Sections 8.1(c),(d) and (h) of the Indenture authorizes the Company and the Trustee without the consent of the Holders to: (i) provide for conversion rights of Holders of Securities if, inter alia, any merger occurs;   (ii) provide for the assumption of the Company’s obligations to the Holders of Securities in the case, inter alia, of a merger pursuant to Article V of the Indenture; and (iii) add or modify any other provisions of the Indenture with respect to matters or questions arising thereunder which the Company and the Trustee may deem necessary or desirable and that will not, in the good faith opinion of the Board of Directors of BioSante (as evidenced by a Board Resolution), adversely affect the interests of the Holders of Securities;
 

WHEREAS, BioSante and
the Trustee desire to execute a supplemental indenture that complies with Section 8.1
of the Indenture and implements the provisions of Sections 5.1 and 9.4
referenced above;

 

WHEREAS, all acts and
things necessary to make this Supplemental Indenture a valid and binding
agreement for the purposes and objects herein expressed have been duly done and
performed, and the execution of this Supplemental Indenture has been in all
respects, duly authorized; and

 

WHEREAS, capitalized
terms not otherwise specifically defined herein are defined as provided in the
Indenture;

 

NOW,
THEREFORE, in consideration of the foregoing premises and of
other good and valuable consideration, the receipt and validity of which are
hereby acknowledged, BioSante hereby covenants and agrees with the Trustee, for
the equal and proportionate benefit of the respective Holders from time to time
of the Securities, as follows:

 

ARTICLE I

 

AMENDMENTS TO THE INDENTURE

 

On the terms and subject to
the conditions set forth herein, the Indenture is amended as follows:

 

(a) Section 11.2
of the Indenture is hereby amended by replacing the provision relating to the
address, telephone, facsimile and e-mail for notice to the Company and its
counsel, to provide as follows:

 

2

 

“If to the Company:

 

BioSante Pharmaceuticals, Inc.

111 Barclay Boulevard

Lincolnshire, Illinois  60069

Attention :  Stephen M. Simes -
Vice Chairman, President and Chief Executive Officer

Telephone :  (847) 478-0500

Facsimile:  (847) 478-9260

E-mail:  ssimes@biosantepharma.com

 

With a copy to:

 

Oppenheimer Wolff &
Donnelly LLP

Plaza VII, 45 South Seventh
Street

Suite 3300

Minneapolis, MN  55402-1609

Attention:  Amy Culbert

Telephone:  (612) 607-7287

Facsimile:  (612) 607-7100

E-mail:  aculbert@oppenheimer.com”

 

(b) Based on the final
exchange ratio in the Merger of 0.1828 shares of common stock of BioSante for
each share of common stock of the Company, the table set forth in Section 9.1(b) of
the Indenture and all of the provisions of such Section 9.1(b) following
such table are hereby replaced in their entirety to provide as follows:

 

	
  Stock Price

  	
   

  	
  $

  	
  38.29

  	
   

  	
  $

  	
  46.50

  	
   

  	
  $

  	
  54.70

  	
   

  	
  $

  	
  62.91

  	
   

  	
  $

  	
  71.16

  	
   

  	
  $

  	
  79.32

  	
   

  	
  $

  	
  87.53

  	
   

  	
  $

  	
  95.73

  	
   

  	
  $

  	
  103.94

  	
   

  	
  $

  	
  112.14

  	
   

  	
  $

  	
  120.35

  	
   

  	
  $

  	
  128.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Effective Date

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 1, 2008

  	
   

  	
  5.83

  	
   

  	
  3.54

  	
   

  	
  2.16

  	
   

  	
  1.36

  	
   

  	
  0.88

  	
   

  	
  0.60

  	
   

  	
  0.40

  	
   

  	
  0.29

  	
   

  	
  0.22

  	
   

  	
  0.17

  	
   

  	
  0.14

  	
   

  	
  0.00

  	
   

  
	
  November 1, 2009

  	
   

  	
  5.90

  	
   

  	
  3.31

  	
   

  	
  1.79

  	
   

  	
  0.82

  	
   

  	
  0.18

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  November 1, 2010

  	
   

  	
  5.84

  	
   

  	
  2.97

  	
   

  	
  1.46

  	
   

  	
  0.63

  	
   

  	
  0.13

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  November 1, 2011

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  

 

If
the Stock Price and Effective Date are not set forth on the table above and the
Stock Price is:

 

(A) between
two Stock Prices on the table or the Effective Date is between two dates on the
table, the number of shares of Additional Common Stock will be determined by
straight-line interpolation between the number of shares of Additional Common
Stock set forth for the higher and lower Stock Price and the two Effective
Dates, as applicable, based on a 360-day year;

 

(B) in
excess of $128.56 per share (subject to adjustment), no shares of Additional
Common Stock will be issued upon conversion; or

 

(C) less
than $38.29  per share (subject to
adjustment), no shares of Additional Common Stock will be issued upon
conversion.

 

Notwithstanding the foregoing, in no event shall the
total number of shares of Common Stock issuable upon conversion exceed 25.92
per $1,000 of aggregate principal amount of Securities, subject to adjustments
in the same manner as the Conversion Price in Section 9.3.

 

(c)  Section 9.3(m) of the Indenture
is hereby amended by replacing the reference to “$7.00” with “$38.29”.

 

3

 

ARTICLE II

 

ASSUMPTION OF INDENTURE AND SECURITIES

 

As of the Effective Time,
concurrently with the Merger, BioSante does hereby assume the due and punctual
payment of all amounts payable on the Securities, according to their terms, and
subject to Article III below, the due and punctual performance and
observance of all of the covenants and conditions of the Securities and the
Indenture to be performed by the Company. 
As of the Effective Time, concurrently with the Merger, BioSante shall
succeed to, and be substituted for  and
may exercise rights and powers of, the Company under the Indenture with the
same effect as if BioSante had been initially named as the Company therein.

 

ARTICLE III

 

CONVERSION RIGHTS

 

Subject
to and in accordance with Section 9.4 of the Indenture,  the Holder of any Securities outstanding as
of the Effective Time shall have the right to convert such Securities into the
number of shares of common stock, $0.0001 par value per share, of BioSante
which such Holder would have been entitled to receive upon the Merger had such
Securities been converted into common stock of the Company immediately prior to
the Merger (which, for the avoidance of doubt, shall equal 20.0884 shares of
common stock of BioSante per $1,000 aggregate principal amount of Securities at
a Conversion Price of $49.78.)

 

ARTICLE IV

 

CONDITIONS TO EFFECTIVENESS

 

This Supplemental Indenture
shall become effective concurrently with the consummation of the Merger and
delivery to the Trustee by BioSante of an Officer’s Certificate and Opinion of
Counsel as required by Section 5.1(c) of the Indenture.  This Supplemental Indenture shall be
automatically null and void if and in the event that the Merger shall not have
been consummated on or before November 30, 2009.  BioSante will promptly notify the Trustee of
the consummation of the Merger and the effectiveness of this Supplemental
Indenture.

 

ARTICLE V

 

MISCELLANEOUS PROVISIONS

 

Section 5.1  Governing Law.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW
YORK

 

Section 5.2  Definitions.  The terms specifically defined in this
Supplemental Indenture shall have the respective meanings so specified for all
purposes of this Supplemental Indenture. 
All other terms used in this Supplemental Indenture which are defined in
the Indenture, the Trust Indenture Act, or which are by reference therein
defined in the Securities Act (except as herein otherwise expressly provided or
unless the context otherwise requires) shall have the meanings assigned to such
terms in the Indenture, the Trust Indenture Act, and in said Securities Act, as
in force at the date of the execution of this Supplemental Indenture.  The words “herein,” “hereof’ and “hereunder,”
and words of similar import 

 

4

 

refer to this Supplemental Indenture as a whole and not to any
particular Article, Section or other Subsection.  The terms specifically defined in this
Supplemental Indenture include the plural as well as the singular.

 

Section 5.3  No Third Party Beneficiaries.  Nothing in this Supplemental Indenture,
expressed or implied, shall give or be construed to give any person, firm or
corporation, other than the parties hereto and their successors hereunder, and
the holders of the Securities, any legal or equitable right, remedy or claim
under or in respect to this Supplemental Indenture, or under any covenant,
condition or provision herein contained; all such covenants, conditions and
provisions being for the sole benefit of the parties hereto and their
successors hereunder and the Holders of the Securities.

 

Section 5.4  Acceptance by Trustee.  The Trustee accepts the amendment of the
Indenture effected by this Supplemental Indenture and agrees to execute the
trust created by the Indenture as hereby amended, but only upon the terms and
conditions set forth in the Indenture, including the terms and provisions
defining and limiting the liabilities and responsibilities of the Trustee,
which terms and provisions shall in like manner define and limit its
liabilities and responsibilities in the performance of the trust created by the
Indenture as hereby amended.

 

Section 5.5  Legend on Securities.  After the consummation of the Merger, any
Securities authenticated and delivered in substitution for, or in lieu of,
Securities then outstanding and all Securities presented or delivered to the
Trustee on and after the Effective Time for such purpose shall be either
restated to give the effect to the Supplemental Indenture or, in lieu thereof,
shall bear a legend substantially as follows:

 

The consideration received
upon conversion of the principal amount of this Security shall be determined
with reference to shares of the common stock, $0.0001 par value per share, of
BioSante Pharmaceuticals, Inc., a Delaware corporation, at a Conversion
Price per share of $49.78  as of the
consummation of the Merger, such Conversion Price being subject to certain
adjustments as set forth in the Indenture. 
Reference herein to “Common Stock of the Company” or the “Company’s
Common Stock” shall be deemed to be to the Common Stock of BioSante Pharmaceuticals, Inc.  The Indenture, dated as of October 20,
2004, referred to in this Security has been amended by a Supplemental Indenture
dated as of October 14, 2009 to provide for such convertibility.  Reference is hereby made to the Supplemental
Indenture, copies of which are on file with BioSante Pharmaceuticals, Inc.
for a statement of the amendments therein made.

 

Nothing contained in this
Supplemental Indenture shall require the holder of any Securities to submit or
exchange such Security prior to the consummation of the Merger in order to
obtain the benefits of any provisions hereunder.

 

BioSante hereby agrees to
provide for the reproduction of the above legend on the Securities without
materially obscuring the text of the Securities.

 

Anything herein contained to
the contrary notwithstanding, the Trustee shall not at any time be under any
responsibility to acquire or cause any Security now or hereafter outstanding to
be presented or delivered to it for any purpose provided for in this Section 5.5.

 

Section 5.6  Effect on Indenture and Securities.  Except as expressly supplemented by this
Supplemental Indenture, the Indenture and 
the Securities issued thereunder and the obligations created thereby are
in all respects ratified and confirmed and except as expressly supplemented by
this Supplemental Indenture, all of the rights, remedies, terms, conditions,
covenants and agreements of the Indenture and the Securities issued thereunder
shall remain in full force and effect.

 

5

 

Section 5.7  Trust Indenture Act.  If any provision of this Supplemental
Indenture limits, qualifies or conflicts with (a) another provision of
this Supplemental Indenture, or (b) any provision of the Indenture, which
in each case is required to be included by any of the provisions of Section 310
to 317, inclusive, of the Trust Indenture Act, such required provision shall
control.

 

Section 5.8  Recitals.  The recitals contained in this Supplemental
Indenture shall be taken as statements of the BioSante, and the Trustee assumes
no responsibility for their correctness. 
The Trustee makes no representations as to the validity or sufficiency
of this Supplemental Indenture.

 

Section 5.9  Counterparts.  This Supplemental Indenture may be executed
in any number of counterparts, each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

 

[Signatures on next page]

 

6

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of
the day and year first above written.

 

	
   

  	
  BIOSANTE PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Phillip B. Donenberg

  
	
   

  	
  Name: Phillip B. Donenberg

  
	
   

  	
  Title: Chief Financial Officer, Treasurer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paula Oswald

  
	
   

  	
  Name: Paula Oswald

  
	
   

  	
  Title: Vice President

  

 

7

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