Document:

Exhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT NO. 2 TO SENIOR

SECURED TERM LOAN AGREEMENT 

 

This AMENDMENT NO. 2 (this “Amendment),
dated as of January 23, 2013, is made with respect to the Senior Secured Term Loan Credit Agreement, dated as of August 31, 2011
(as amended by that certain Amendment No. 1 dated as of December 7, 2012, and as further amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among MEDLEY CAPITAL CORPORATION, a Delaware corporation
(the “Borrower”), the several banks and other financial institutions from time to time party to the Credit Agreement
as lenders (the “Lenders”), ING CAPITAL LLC, as administrative agent for the Lenders under the Credit Agreement
(in such capacity, together with its successors in such capacity, the “Administrative Agent”), and solely for
purposes of Section 2.8, MOF I BDC LLC, a Delaware limited liability company (“the “Subsidiary Guarantor”,
and together with the Borrower, the “Obligors”). Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement (as amended hereby).

 

WITNESSETH:

 

WHEREAS, pursuant to the Credit Agreement,
the Lenders have made certain loans and other extensions of credit to the Borrower; and

 

WHEREAS, the Borrower has requested that the
Lenders and the Administrative Agent amend certain provisions of the Credit Agreement and the Lenders signatory hereto and the
Administrative Agent have agreed to do so on the terms and subject to the conditions contained in this Amendment.

 

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

 

SECTION I AMENDMENT
TO CREDIT AGREEMENT

 

Effective as of the Effective Date (as defined
below), and subject to the terms and conditions set forth below, Section 2.06(f)(i)(A) of Credit Agreement is hereby deleted in
its entirety and replaced by the following provision:

 

“(A) the minimum amount
of the Loans of any Assuming Lender, and the minimum amount of the increase of the Loans of any Increasing Lender, as part of such
Term Loan Increase shall be $1,000,000 or a larger multiple of $500,000;”

 

SECTION II MISCELLANEOUS

 

2.1. Conditions to Effectiveness
of Amendment. This Amendment shall become effective as of the date (the “Effective Date”) on which the Borrower
and each Subsidiary Guarantor party hereto have satisfied each of the following conditions precedent (unless a condition shall
have been waived in accordance with Section 9.02 of the Credit Agreement):

 

    	 

    	 	

    
 

(a)Documents.
The Administrative Agent shall have received each of the following documents, each of which shall
be reasonably satisfactory to the Administrative Agent (and to the extent specified below to each Lender) in form and substance:

 

(1)Executed Counterparts.
From each of the Required Lenders, the Administrative Agent and the Obligors, either (1) a counterpart of this Amendment signed
on behalf of such party or (2) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission
or electronic mail of a signed signature page to this Amendment) that such party has signed a counterpart of this Amendment.

 

(b)Fees and Expenses.
The Borrower shall have paid in full to the Administrative Agent and the Lenders
all fees and expenses related to this Amendment and the Credit Agreement owing on Effective Date, including any up-front fee due
to any Lender on the Effective Date.

 

(c)Other Documents.
The Administrative Agent shall have received such other documents, instruments, certificates, opinions and information as the Administrative
Agent may reasonably request in form and substance satisfactory to the Administrative Agent.

 

The contemporaneous exchange and release
of executed signature pages by each of the Persons contemplated to be a party hereto shall render this Amendment effective and
any such exchange and release of such executed signature pages by all such persons shall constitute satisfaction or waiver (as
applicable) of any condition precedent to such effectiveness set forth above.

 

2.2. Representations and Warranties.
To induce the other parties hereto to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent
and each of the Lenders that, as of the Effective Date and after giving effect to this Amendment:

 

(a) This Amendment has
been duly authorized, executed and delivered by the Borrower and the Subsidiary Guarantor, and constitutes a legal, valid and binding
obligation of the Borrower and the Subsidiary Guarantor enforceable in accordance with its terms. The Credit Agreement, as amended
by the Amendment, constitutes the legal, valid and binding obligation of the Borrower enforceable in accordance with its respective
terms.

 

(b)The representations
and warranties set forth in Article 3 of the Credit Agreement as amended by this Amendment and the representations and warranties
in each other Loan Document are true and correct in all material respects (other than any representation or warranty already qualified
by materiality or Material Adverse Effect, which shall be true and correct is all respects) on and as of the Effective Date or
as to any such representations and warranties that refer to a specific date, as of such specific date, with the same effect as
though made on and as of the Effective Date.

 

(c)No Default or Event
of Default has occurred or is continuing under the Credit Agreement.

 

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2.3. Counterparts. This
Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute
an original, but all of which when taken together shall constitute a single contract. This Amendment constitutes the entire contract
between and among the parties relating to the subject matter hereof and supersedes any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Delivery of an executed counterpart of this Amendment by telecopy or electronic
mail shall be effective as delivery of a manually executed counterpart of this Amendment.

 

2.4. Payment of Expenses.
The Borrower agrees to pay and reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket costs
and expenses incurred in connection with this Amendment, including, without limitation, the reasonable fees, charges and disbursements
of legal counsel to the Administrative Agent, (but excluding, for the avoidance of doubt, the allocated costs of internal counsel).

 

2.5. GOVERNING LAW. THIS
AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

2.6. Incorporation of Certain
Provisions. The provisions of Sections 9.01, 9.07, 9.09, 9.10 and 9.12 of the Credit Agreement are hereby incorporated by reference
with respect to Section I.

 

2.7. Effect of Amendment.
Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of,
or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent, the Borrower or the
Subsidiary Guarantor under the Credit Agreement or any other Loan Document, and, except as expressly set forth herein, shall not
alter, modify, amend or in any way affect any of the other terms, conditions, obligations, covenants or agreements contained in
the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full
force and effect. Nothing herein shall be deemed to entitle any Person to a consent to, or a waiver, amendment, modification or
other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other
Loan Document in similar or different circumstances. This Amendment shall apply and be effective only with respect to the provisions
amended herein of the Credit Agreement. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and
be a reference to the Credit Agreement as amended by this Amendment and each reference in any other Loan Document shall mean the
Credit Agreement as amended hereby. This Amendment shall constitute a Loan Document.

 

2.8. Consent and Affirmation.
Without limiting the generality of the foregoing, by its execution hereof, each of the Borrower and the Subsidiary Guarantor hereby
to the extent applicable as of the Effective Date (a) consents to this Amendment and the transactions contemplated hereby, (b)
agrees that the Amended and Restated Guarantee and Security Agreement and each of the other Security Documents is in full force
and effect, (c) confirms its guarantee (solely in the case of Subsidiary Guarantor) and affirms its obligations under the Amended
and Restated Guarantee and Security Agreement and confirms its grant of a security interest in its assets as Collateral for the
Secured Obligations (as defined in the Amended and Restated Guarantee and Security Agreement), and (d) acknowledges and affirms
that such guarantee and/or grant is in full force and effect in respect of, and to secure, the Secured Obligations (as defined
in the Amended and Restated Guarantee and Security Agreement).

 

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[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

 

	 	MEDLEY CAPITAL CORPORATION, as Borrower
	 	 
	 	 
	 	By: 	 
	 	Name:
Title:	 

 

 

    	[Signature Page to Amendment No. 2]

    	 	

    

 

 

	 	MOF I BDC LLC, as Subsidiary Guarantor
	 	 
	 	 
	 	By: 	 
	 	Name:
Title:	 

 

 

    	[Signature Page to Amendment No. 2]

    	 	

    
 

	 	ING CAPITAL LLC, as Administrative Agent and a Lender
	 	 
	 	 
	 	By: 	 
	 	 	 
	 	 	 
	 	Name:
Title:	 

 

 

    	[Signature Page to Amendment No. 2]

    	 	

    
 

	 	GOLDMAN SACHS BANK USA, as a Lender
	 	 
	 	 
	 	By: 	 
	 	 	 
	 	 	 
	 	Name:
Title:	 

 

 

    	[Signature Page to Amendment No. 2]

    	 	

    
 

	 	EVERBANK COMMERCIAL FINANCE, INC., as a Lender
	 	 
	 	 
	 	By: 	 
	 	 	 
	 	 	 
	 	Name:
Title:	 

 

 

    	[Signature Page to Amendment No. 2]Exhibit 10.1

 

January 31, 2008

 

Stefan Proniuk, Ph.D.

[ADDRESS]

 

Dear Dr. Proniuk:

 

We are pleased to offer you the position of Director of Product
Development of Arno Therapeutics, Inc. (“Arno”). This letter (the “Letter”) sets forth the proposed terms
of your employment with Arno:

 

	 	1.	You shall serve as Director of Product Development of Arno and shall have such powers and perform such duties as are customarily performed by a Director of Product Development. You shall report directly to Dr. Scott Fields.

 

	 	2.	You shall receive an annual base salary equal to One Hundred Fifty Thousand Dollars ($150,000), payable in accordance with Arno’s payroll practices.

 

	 	3.	You will receive an annual bonus of up to 15% of your base salary based upon the successful accomplishment of individual and corporate performance goals to be agreed upon annually between you and the President of Arno, which amount shall be pro-rated for the year 2008. Any performance bonus shall be payable on or about December 31st of each year. 

 

	 	4.	Arno shall grant to you stock options pursuant to the Company’s 2005 Stock Option Plan (the “Employment Options”) to purchase Forty Thousand (40,000) shares of common stock of Arno, par value $0.001 per share (the “Common Stock”). The Employment Options shall have an exercise price equal to the price per share paid by investors in Arno’s next equity financing (the “Exercise Price”). The Employment Options shall be subject to the terms and conditions of the Plan and shall vest and become exercisable in accordance with the following schedule: 

 

	 	a.	10,000 Employment Options shall become exercisable on the first anniversary of the Effective Date; and 

 

	 	b.	thereafter, 833.33 Employment Options shall become exercisable on the last day of each calendar month until all remaining Employment Options are fully vested and exercisable (each date on which Employment Options vest is hereinafter referred to as a "Vesting Date"). 

 

	 	5.	Arno will reimburse you for all normal, usual and necessary expenses incurred in furtherance of the business and affairs of Arno, including reasonable travel and entertainment, upon timely receipt by Arno of appropriate vouchers or other proof of your expenditures and otherwise in accordance with any expense reimbursement policy as may from time to time be adopted by Arno. Prior to your permanent relocation to the New Jersey area, Arno will reimburse you for your reasonable travel expenses between California and New Jersey in an amount up to $10,000, subject to increase upon the written consent of Arno’s President. In addition, Arno shall reimburse you for qualified moving expenses (as defined by the U.S. Internal Revenue Service) incurred by you in connection with your relocation to New Jersey.

 

	 	6.	You shall be entitled to four (4) weeks of vacation, sick and personal days per year.

 

	 	7.	Your employment will be on an at-will basis and shall commence on February 11, 2008, or such other time as may be agreed to by you and Arno.

 

    	 

    	 

    
 

	 	8.	You and your spouse shall be entitled to participate in the group medical policy of Arno. Arno will pay for health and dental insurance premiums for you at the basic level insurance plan. Should you desire to enroll in the higher insurance plan, you will be responsible for the payment of the difference in premium costs between the two plans. You shall be entitled to participate in any other benefits made available to employees of Arno.

 

	 	9.	Confidentiality.

 

	 	a.	You recognize and acknowledge that in the course of your duties you are likely to receive confidential or proprietary information owned by Arno, its affiliates or third parties with whom Arno or any such affiliates has an obligation of confidentiality. Accordingly, during and after the Term, you agree to keep confidential and not disclose or make accessible to any other person or use for any other purpose other than in connection with the fulfillment of your duties under this Agreement, any Confidential and Proprietary Information (as defined below) owned by, or received by or on behalf of, Arno or any of its affiliates. “Confidential and Proprietary Information” shall include, but shall not be limited to, confidential or proprietary scientific or technical information, data, formulas and related concepts, business plans (both current and under development), client lists, promotion and marketing programs, trade secrets, or any other confidential or proprietary business information relating to development programs, costs, revenues, marketing, investments, sales activities, promotions, credit and financial data, manufacturing processes, financing methods, plans or the business and affairs of Arno or of any affiliate or client of Arno. You expressly acknowledge the trade secret status of the Confidential and Proprietary Information and that the Confidential and Proprietary Information constitutes a protectable business interest of Arno. You agree: (i) not to use any such Confidential and Proprietary Information for strictly personal use or for others; and (ii) not to permanently remove any Company material or reproductions (including but not limited to writings, correspondence, notes, drafts, records, invoices, technical and business policies, computer programs or disks) thereof from Arno’s offices at any time during your employment by Arno, except as required in the execution of your duties to Arno, provided; however, that you shall not be prevented from using or disclosing any Confidential and Proprietary Information:

 

	 	i.	that you can demonstrate was known to you prior to the effective date of that certain confidentiality agreement dated February 11, 2008;

 

	 	ii.	that is now, or becomes in the future, available to persons who are not legally required to treat such information as confidential unless such persons acquired the Confidential and Proprietary Information through acts or omissions by you; 

 

	 	iii.	that is within your general business or industry knowledge, know-how or expertise; or 

 

	 	iv.	that you are compelled to disclose pursuant to the order of a court or other governmental or legal body having jurisdiction over such matter.

 

	 	b.	You agree to return immediately all Company material and reproductions (including but not limited, to writings, correspondence, notes, drafts, records, invoices, technical and business policies, computer programs or disks) thereof in your possession to Arno upon request and in any event immediately upon termination of employment.

 

	 	c.	Except with prior written authorization by Arno, you agree not to disclose or publish any of the Confidential and Proprietary Information, or any confidential, scientific, technical or business information of any other party to whom Arno or any of its affiliates owes a legal duty of confidence, at any time during or after your employment with Arno.

 

    	 

    	 

    
 

	 	d.	You agree that all inventions, discoveries, improvements and patentable or copyrightable works, relating to Arno’s Business (as defined below). (“Inventions”) initiated, conceived or made by him, either alone or in conjunction with others, during the Term shall be the sole property of Arno to the maximum extent permitted by applicable law and, to the extent permitted by law, shall be “works made for hire” as that term is defined in the United States Copyright Act (17 U.S.C.A., Section 101). For purposes of this Agreement, “Company’s Business” shall be the development of novel therapeutics for the treatment of cardiovascular disease and in the future, any other business in which it actually devotes substantive resources to study, develop or pursue. Arno shall be the sole owner of all patents, copyrights, trade secret rights, and other intellectual property or other rights in connection therewith. You hereby assign to Arno all right, title and interest you may have or acquire in all such Inventions; provided; however, that the Board of Directors of Arno may in its sole discretion agree to waive Arno’s rights pursuant to this section with respect to any Invention that is not directly or indirectly related to Arno’s business. You further agree to assist Arno in every proper way (but at Arno’s expense) to obtain and from time to time enforce patents, copyrights or other rights on such Inventions in any and all countries, and to that end you will execute all documents necessary:

 

	 	i.	to apply for, obtain and vest in the name of Arno alone (unless Arno otherwise directs) letters patent, copyrights or other analogous protection in any country throughout the world and when so obtained or vested to renew and restore the same; and

 

	 	ii.	to defend any opposition proceedings in respect of such applications and any opposition proceedings or petitions or applications for revocation of such letters patent, copyright or other analogous protection.

 

	 	e.	You acknowledge that while performing the services under this Agreement you may locate, identify and/or evaluate patented or patentable inventions having commercial potential in the fields of pharmacy, pharmaceutical, biotechnology, healthcare, technology and other fields which may be of potential interest to Arno or one of its affiliates (the “Third Party Inventions”). You understand, acknowledge and agree that all rights to, interests in or opportunities regarding, all Third-Party Inventions identified by Arno, any of its affiliates or either of the foregoing persons’ officers, directors, employees (including you), agents or consultants during the Term shall be and remain the sole and exclusive property of Arno or such affiliate and you shall have no rights whatsoever to such Third-Party Inventions and will not pursue for himself or for others any transaction relating to the Third-Party Inventions which is not on behalf of Arno.

 

	 	f.	The provisions of this Section 9 shall survive any termination of your employment.

 

If you find the foregoing arrangement acceptable, kindly sign
where appropriate and return a copy of this Letter to me.

 

	 	Very truly yours,
	 	 
	 	By	   /s/ Scott Fields
	 	Name: Scott Fields
	 	Title: President
	 	Date: January 31, 2008

 

Agreed and Accepted:

 

	By:	  /s/ Stefan Proniuk, Ph.D.	 
	Name: Stefan Proniuk, Ph.D.
	Date: January 31, 2008

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