Document:

Primus Therapeutics, Inc.: Exhibit 10.5 - Filed by newsfilecorp.com

Exhibit 10.5

[            ], 201_ 

[Name] 

[address] 

[address] 

Dear [            ]: 

 This letter confirms the terms and conditions under which you (hereinafter “Lender”) have agreed to lend to Primus Therapeutics, Inc., a Delaware corporation (the “Company”), the sum specified on the signature page
hereof (the “Loan”): 

1.   The Loan. Not later than one (1) business day following the date of execution of this letter agreement, Lender shall deposit to the Company’s account, as specified in Schedule 1, by bank wire
transfer of immediately available funds, the amount of the Loan. In consideration of the making of the Loan, the Company shall (A) immediately upon receipt of the proceeds thereof, issue to Lender an unsecured note (the “Note”), in
the form attached hereto as Exhibit A, (B) subject to satisfaction of the Equity Condition, as defined below, issue to the Lender the Applicable Number of shares (the “Shares”) of the Company’s common stock, par value
$0.001 (the “Common Stock”) as defined in Section 2 hereof, fully paid and non-assessable, and (C) subject also to satisfaction of the Equity Condition, issue to the Lender a warrant (the “Warrant”), in the form
attached hereto as Exhibit B, to purchase the Applicable Number of shares of Common Stock at the Exercise Price, determined in accordance with Section 2 hereof. This letter agreement, the Note and the Warrant are referred to herein as the
“Transaction Documents”. 

2.   Equity Condition; Applicable Number; Exercise Price. For purposes of the Transaction Documents, the following definitions shall apply: 

a. The term “Equity Condition” means the closing of an initial public offering by the Company for its Common Stock (the “Offering”). The Company shall use commercially reasonably efforts to ensure that the Equity
Condition is fulfilled with eighteen (18) months following the date of this letter agreement. 

b. The term “Applicable Number” means the number derived by multiplying the principal amount of the Loan by ten percent (10%) and dividing the resulting amount by the price of each share of Common Stock as finally determined for
purposes of the Offering (the “Offering Price”), expressed in Dollars. Solely for purposes of clarification (and not by way of representation or warranty as to the actual or estimated Offering Price) in the event such Offering Price
per share of Common Stock were to be Four Dollars ($4.00) the number of shares of Common Stock issuable to Lender upon fulfillment of the Equity Condition would be Two Thousand Five Hundred (2,500) for each One Hundred Thousand Dollars
($100,000) of loan principal, i.e., 100,000 x 10% ÷ 4 = 2,500. 

c. The term “Exercise Price” means one hundred and ten percent (110%) of the Offering Price. Solely for purposes of clarification (and not by way of
representation or warranty as to the actual or estimated Offering Price) in the event such Offering Price per share of Common Stock were to be Four Dollars ($4.00), the Exercise Price would be Four Dollars and Forty Cents ($4.40) . 

3.  Representations and Warranties of the Company. The Company hereby represents and warrants to Lender, subject to Schedule 3 hereof, that as of the date hereof and as of the date upon which the Equity Condition is
satisfied: 

a. The Company is duly organized, validly existing and in good standing under the laws of the state of Delaware and has the requisite power and authorization to own its properties and to carry on its business as now being conducted.

b. The Company has the requisite corporate power and authority to enter into and perform its obligations under the Transaction Documents and to issue the Note and Warrant in accordance with their terms. The execution and delivery of the Transaction
Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Note and the Warrant, the reservation for issuance and the issuance of the Shares
and the securities underlying the Warrant (the securities underlying the Warrant are referred to herein as the “Warrant Shares”), have been duly authorized by the Company's board of directors and (other than such filings as
may be required by any state securities agencies) no further filing, consent, or authorization is required by the Company, its board of directors or its stockholders. This letter agreement and the Note have been, and subject to satisfaction of the
Equity Condition the Shares and the Warrant will be, duly executed and delivered by the Company and upon execution will constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their
respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or generally affecting, creditors' rights and
remedies.

c. The issuance of the Note and the Warrant are duly authorized and upon issuance in accordance with the terms of the Transaction Documents shall be free from all taxes, liens, pre-emptive rights and charges with respect thereto. In connection with
the Offering, the Company shall reserve from its duly authorized (but unissued) capital stock not less than one hundred percent (100%) of the number of shares of Common Stock issuable as Shares or Warrant Shares. Upon issuance, the Shares and
Warrant Shares will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof.

d. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Note, the Shares and
the Warrant, and reservation for issuance of the Warrant Shares) will not (i) violate the Certificate of Incorporation or by-laws of the Company, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, indenture or instrument to which the Company is a party, or (iii) result in a violation
of any material law, rule, regulation, order, judgment or decree applicable to the Company or by which any property or asset of the Company is bound. 

 - 2 -

e. The Company is not, and has never been, in default of any material obligation to any of its lenders, creditors, stockholders or other obliges. 

4.   Representations and Warranties of the Lender. Lender hereby represents and warrants to the Company as follows: 

a. Lender is acquiring the Note, and will (subject to satisfaction of the Equity Condition) be acquiring the Shares and the Warrant, and upon exercise of the Warrant, if applicable, will acquire the Warrant Shares, in each case for its own account
and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act of 1933 (the “1933 Act”); 

b. Lender is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D promulgated under the 1933 Act; 

c. Lender understands that the securities to be acquired by Lender pursuant to the Transaction Documents (the “Securities”) are being offered for sale and sold to Lender in reliance upon specific exemptions from the registration
requirements of Federal and state securities laws and that in determining the eligibility of Lender to acquire the Securities, the Company is relying in part upon the truth and accuracy of, and Lender’s compliance with, the representations,
warranties, agreements and acknowledgments of Lender set forth herein.

d. Lender and its advisers, if any, have been provided with all materials relating to the Company’s business operations, prospects and financial condition, and all materials relating to the offer and sale of the Securities, that Lender has
deemed necessary in order to make an informed investment decision with respect to an investment in the Securities. Lender and its advisers, if any, have been afforded the opportunity to ask questions of the Company and its management regarding the
same. Lender understands that its investment in the Company involves a high degree of risk. Lender has sought such accounting, legal and tax advice as it has deemed necessary or appropriate in order to make an informed decision regarding the
purchase of the Securities, and is not relying on the Company for any such accounting, legal or tax advice. In making its decision to acquire the Securities, Lender has not relied upon any information other than information provided to Lender by the
Company and contained herein. 

e. Lender understands that: (i) the Securities have not been registered under the 1933 Act or any state securities laws, are “restricted securities” as such term is defined in Rule 501 promulgated under the 1933 Act and may not be offered
for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) Lender shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that any Securities to be sold, assigned or
transferred pursuant to an exemption from registration, or (C) Lender provides the Company with reasonable assurance, including an opinion of counsel in a generally acceptable form that such Securities can be sold, assigned or transferred pursuant
to Rule 144
promulgated under the 1933 Act, as amended, or successor rules thereto (“Rule 144”); and (ii) any sale of Securities made in reliance upon Rule 144 may be made only in accordance with the terms thereof and further, if Rule 144 is
not applicable, any re-sale of Securities under circumstances in which the seller (or the person through whom or which the sale is made) may be deemed to be an underwriter for purposes of the 1933 Act may require compliance with some other exemption
under the 1933 Act or the rules and regulations promulgated thereunder. 

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f. Lender understands that the certificates or other instruments representing the Note and Warrant and, unless the Shares and Warrant Shares have been registered under the 1933 Act, the stock certificates representing the Shares and the Warrant
Shares, shall bear any legend required by the “blue sky” laws of any state, and a restrictive legend in substantially the following form: 

“THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.”

 Lender understands (and the Company agrees) that upon the request of the holder of the Securities, the legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of said Securities if, unless
otherwise required by state securities law, (i) such Securities are registered for re-sale under the 1933 Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, in a generally
acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable provisions of the 1933 Act, or (ii) such holder provides the Company with reasonable assurance, including
an opinion of counsel in a generally acceptable form, that the Securities can be sold, assigned or transferred pursuant to Rule 144(b)(1)(i), without the need to comply with the requirements set forth in Rule 144(c)(1). 

g. Lender understands that neither the United States Securities and Exchange Commission (“SEC”) nor any securities commission or other governmental authority of any state, country or other jurisdiction has approved the issuance of
the Securities or passed upon or endorsed the merits of the Securities or this letter agreement, or confirmed the accuracy of, determined the adequacy of, or reviewed this letter agreement or the Securities. 

h. Lender is unaware of, and in deciding to purchase the Securities is in no way relying upon, and did not become aware of the offer of the Securities through or as a result of, any form of general solicitation or general advertising including,
without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media, or broadcast over television or radio or the internet, in connection with the offer of the Securities. 

 - 4 -

5.   Miscellaneous. 

a. Any notice given hereunder shall be valid and effective only if made in writing and delivered by U.S. certified mail, postage prepaid, or by reputable overnight courier service, with a copy via facsimile or e-mail, addressed as follows: 

	
If to the Company:
	
	
Primus Therapeutics, Inc.
	
	
 
	
	
23 Orchard Road, Suite 105
	
	
 
	
	
Skillman, NJ 08558
	
	
 
	
	
Attention: [            
]
	
	
 
	
	
[            
]
	
	
 
	
	
Telephone: [            
]
	
	
 
	
	
Facsimile: [            
]
	
	
 
	
	
Email: [            
]
	
	
 
	
 
	
With a copy (which shall not
	
	
[            
]
	
	
constitute notice) to:
	
	
[            
]
	
	
 
	
	
[            
]
	
	
 
	
	
Attention:[            
]
	
	
 
	
	
Telephone: [            
] 
	
	
 
	
	
Facsimile: [            
] 
	
	
 
	
	
Email: [            
]
	
	
 
	
 
	
If to Lender:
	
	
[            
]
	
	
 
		
[            
]
	
	
 
		
[            
]
	
	
 
		
Attention: [            
] 
	
	
 
		
Telephone: [            
]
	
	
 
		
Facsimile: [            
]
	
	
 
		
Email: [            
]
	

b. All questions concerning the construction, validity, enforcement and interpretation of this letter agreement shall be governed by New York law. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address specified in Section 5.a. and agrees that such service shall
constitute good and sufficient service of process and notice thereof, provided, however, that nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS 
LETTER AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

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c. This letter agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided
that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 

d. If any provision of this letter agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this letter agreement in that jurisdiction or
the validity or enforceability of any provision of this letter agreement in any other jurisdiction. 

e. The Transaction Documents contain the entire understanding of the parties with respect to the matters covered herein and therein. No provision of this letter agreement may be amended other than by an instrument in writing signed by the Company
and Lender.

f. This letter agreement shall be binding upon and inure to the benefit of the parties and their respective successors. The Company shall not assign this letter agreement or any rights or obligations hereunder without the prior written consent of
Lender. Lender may assign its rights hereunder only in connection with the transfer of any of all or a portion of the Note, the Warrant or the Warrant Shares, which transfer shall be in accordance with applicable securities laws. 

g. This letter agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 

h. The representations and warranties of Lender shall survive the delivery of the Note and the Warrant and the exercise of the Warrant.

i. The parties shall each do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably
request in order to carry out the intent and accomplish the purposes of this letter agreement and the consummation of the transactions contemplated hereby. 

j. The language used in this letter agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 

  Kindly confirm your agreement to the foregoing by signing one counterpart of this letter agreement and return the same to the Company, prior to the close of business on
  [            ]. [           
  ], 201_. 

Sincerely, 

PRIMUS THERAPEUTICS, INC. 

	
 	
 
By: ____________________________
	
          
		
           [               
]
	
	
            	
           [               
]
	

	
Amount of Loan:   [               
]
	
	
Lender’s Taxpayer ID Number:   [               
]
	
	
 
	
Acknowledged and agreed this   [               
]  day of  [               
]  , 201_:
	

	
 
	
 
	
By: _______________________
	
	
Name:   [               
]
	

- 6 -Primus Therapeutics, Inc.: Exhibit 10.6 - Filed by newsfilecorp.com

Exhibit 10.6

  
  	

THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II)
UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

      

  

PRIMUS THERAPEUTICS, INC.

 PROMISSORY NOTE      

	Principal Amount: U.S. $[      
]	Issuance Date: [           
    ] [    ],
201_ 
	Interest Rate: 12% per annum 	Maturity Date: [           
    ] [    ],
201_  

 FOR VALUE RECEIVED, PRIMUS THERAPEUTICS, INC., a Delaware corporation (the “Company”) hereby promises to pay to the order of [Lender] or his permitted assigns (the “Holder”) the Principal Amount of this Note
upon the Maturity Date (as specified above), with interest on the outstanding Principal Amount at the rate of twelve percent (12%) per annum, running from the Issuance Date specified above until the Principal Amount and all accrued but unpaid
Interest has been paid in full, whether upon an Interest Payment Date (as defined in Section 1 below) or the Maturity Date. This note (the “Note”) is issued pursuant to Section 1 of that certain letter agreement between the Company
and the Holder dated as of [Date] (the “Loan Agreement”), and the representations, warranties, covenants and agreements set forth in the Loan Agreement are deemed incorporated herein by reference. Capitalized terms used herein and
not otherwise defined have the meanings specified in the Loan Agreement. 

1. Interest. Interest on this Note shall commence accruing on the Issuance Date and shall be computed on the basis of a 365-day year and actual days elapsed and shall be payable in arrears to the holder of record of this
Note on the anniversary of the Issuance Date and quarterly thereafter until this Note is repaid in full (each such date, an “Interest Payment Date”). If any Interest Payment Date would, except for the application of this sentence,
falls on a day that is not a Business Day, the Interest Payment Date shall be deemed to fall on the next succeeding Business Day. 

2. Default Interest.  Upon the occurrence of any Event of Default as defined in Section 4.b(i) hereof, the Company shall pay, in addition to the amount specified in Section 1 hereof, default interest at the rate of 5
percent (5%) on the principal amount of the loan then due and outstanding, commencing from the date upon which the Event of Default occurs through and including the day upon which all amounts then due have been paid in full. 

3. Prepayment. The Company may prepay the Principal Amount, in whole or in part, together with interest thereon, without penalty or make-whole payment, at any time, provided, however, that the Company shall not
make any such prepayment prior to [date that is thirteen months from date of issuance].

4. Events of Default.

a. Upon the occurrence of any Event of Default as defined in paragraph b. hereof, the Holder may, by written notice to the Company, declare the outstanding Principal Amount of this Note, together with accrued interest thereon, to be due and payable,
and the outstanding Principal amount of this Note together with such interest shall thereupon immediately become due and payable without presentment, further notice, protest or other requirements of any kind (all of which are hereby expressly waived
by the Company.)  The Company shall pay to the Holder upon demand any costs and expenses of the Holder (including, without limitation, reasonable attorneys’ fees) incurred in collecting any amounts due pursuant to this Section 4.a. 

b.
The following shall constitute an “Event of Default” for purposes of this
Note: 

(i)
The Company fails to pay any amount due on this Note
within 5 Business Days of the due date; 

(ii)
The Company fails to comply with or observe any material
covenant or obligation under the Loan Agreement
(including without limitation the obligation to issue the Shares and the Warrants upon fulfillment of the Equity
Condition) and such failure is not cured within five (5) days
of the Company receiving written notice thereof from the
Holder, unless the Lender has waived such default or
granted any forbearance with respect thereto, in each case
in writing; 

(iii)
The Company is default of any material obligation under
any other agreement for the borrowing of money, subject to
any provisions regarding notice or cure under such other
agreement, unless the obligee shall have granted any
waiver or forbearance with respect thereto; 

(iv) Any representation or warranty of the Company given
hereunder is materially untrue on the date as to which such representation or
warranty is given; 

(v) Following the satisfaction of the Equity Condition, the
Company shall fail to make any filing required under the
Securities Exchange Act of 1934 and the regulations
promulgated thereunder, after giving effect to any
extensions provided for therein; 

(vi) The Company shall generally fail to pay its debts as they
become due; 

 

- 2 -

(vii) The Company, pursuant to Title 11, U.S. Code, or any similar Federal or state law for the relief of debtors (collectively, “Bankruptcy Law”), (A) commences a voluntary case, (B) consents to the entry of an order for relief
against it in an involuntary case, (C) consents to the appointment of a receiver, trustee, assignee, liquidator or similar official (a “Custodian”), or (D) makes a general assignment for the benefit of its; and 

(viii) A court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company in an involuntary case, (B) appoints a Custodian of the Company or (C) orders the liquidation of the Company and
such order or decree remains undismissed or unstayed for a period of sixty (60) days. 

5.   Transfer. This Note may be not be offered, sold, assigned or transferred by the Holder without the written consent of the Company, and other than in compliance with applicable securities laws, provided, however, that
the Holder may sell, assign or transfer the Note (in whole but not in part) upon written notice to the Company to any Family Member. For purposes of this Note, the term “Family Member” means any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the Holder, including adoptive relationships, any person sharing the Holder’s
household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Holder) control the management of assets, and any other entity in which
these persons (or the Holder) own more than fifty percent of the voting interests. 

6.   Security. This Note shall not be secured.

7.   Construction; Headings. This Note shall be deemed to be jointly drafted by
the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of, this Note.

8.   Failure of Indulgence or Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 

9.   Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with Section 5.a. of the Loan Agreement. 

- 3 -

10.   Waiver of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of
this Note. 

11.   Governing Law; Jurisdiction; Jury Trial. This Note shall be construed and enforced in accordance with New York law. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan, for the adjudication of any dispute arising hereunder or in connection herewith and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each of the parties hereto irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof at the address set forth in Section 5.a. of the Loan Agreement, or in the case of a transferee of any Note, at
such address as is provided to the Company by such holder at the time of such transfer, and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision that may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of
this Note.  EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY
TRANSACTION CONTEMPLATED HEREBY. 

 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date specified above. 

PRIMUS THERAPEUTICS, INC.

	
 
By: ____________________________
	
           [               
]
	
	
           [               
]
	

 

 

- 4 -

AMENDMENT NO. 1 AND ALLONGE TO PROMISSORY NOTE

THIS AMENDMENT NO. 1 AND ALLONGE TO PROMISSORY NOTE (the
“Agreement”) is entered into as of this __ day of February, 2011, by and
between PRIMUS THERAPEUTICS, INC., a Delaware corporation with offices at 23
Orchard Road, Suite 105, Skillman, NJ 08850 (the “Company”) and [_____________], with an address at
[____________] (“Lender” and, with the
Company, collectively the “Parties” and each a
“Party”). 

W I T N E S S E T H 

WHEREAS the Company and Lender are parties to that certain Loan
Agreement dated as of [________], 2010 (the “Loan
Agreement”); 

WHEREAS the obligations of the Company under the Loan Agreement
are witnessed by a promissory note dated as of [________], 2010 (the “Note”); and 

WHEREAS the Parties wish to amend the Note in the manner
hereinafter provided; 

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

ARTICLE I 
DEFINITIONS 

Section 1.1 In General.
Unless the context requires otherwise, all capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Loan
Agreement. 

ARTICLE II 
AMENDMENT AND ALLONGE 

Section 2.1 Amendment. Clause (v) of Section 4.b of the
Note is hereby amended to read as follows: 

		“(v) 	Following the satisfaction of the Equity
      Condition, the Company’s independent registered public accounting firm
      shall issue an opinion questioning the ability of the Company to continue
      as a going concern;” 

Section 2.2 Allonge. This
Agreement shall constitute an allonge, and an original counterpart of this
Agreement shall be attached to the original Note and made a part of thereof;
provided, however, that the failure to attach an original counterpart of
this Agreement to the Note shall not affect in any manner the validity,
effectiveness or enforceability of this Agreement. 

- 5 -

Section 2.3 Effective Date.
This Agreement, and the amendment to the Note provided for in Section 2.2, shall
for all purposes be deemed effective as between the Parties as of December 31,
2010. 

Section 2.4 Remaining Terms
Unchanged. Except as expressly set forth in this Agreement, the terms
of each of the Transaction Documents shall remain unchanged, and all such
Transaction Documents shall remain in full force and effect.

Section 2.5 Treatment as Transaction
Document. The Note, as modified by this Agreement, shall be deemed a
Transaction Document and all references in the Transaction Documents to the Note
shall be deemed to refer to the Note as modified by this Agreement. 

ARTICLE III 
REPRESENTATIONS AND WARRANTIES 

Section 3.1 Representations and
Warranties of the Company. In consideration of the agreement of
Lender to enter into this Agreement, the Company hereby represents and warrants
to Lender that, as of the date hereof: 

(a) The Company is duly organized, validly existing and in good
standing under the laws of the state of Delaware and has the requisite power and
authorization to own its properties and to carry on its business as now being
conducted.

(b) The Company has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement. The execution
and delivery of this Agreement by the Company and the consummation by the
Company of the transactions contemplated hereby have been duly authorized, and
upon execution and delivery by the Parties this Agreement will constitute the
legal, valid and binding obligations of the Company, enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
generally affecting, creditors' rights and remedies.

(c) The execution, delivery and performance of this Agreement
by the Company and the consummation by the Company of the transactions
contemplated hereby will not (i) violate the Certificate of Incorporation or
by-laws of the Company, or (ii) conflict with, or constitute a default (or an
event that with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture or instrument to which the
Company is a party, or (iii) result in a violation of any material law, rule,
regulation, order, judgment or decree applicable to the Company or by which any
property or asset of the Company is bound. 

- 6 -

ARTICLE IV 
MISCELLANEOUS 

Section 4.1 Governing Law.
This Agreement shall be governed by, and construed in accordance with, New York
law. 

Section 4.2 Amendment,
Waiver. This Agreement may not be amended, or any provision hereof
waived, other than an agreement in writing signed by both Parties or, in the
case of waiver, by the Party charged. No waiver of any breach of a
representation, warranty, covenant or agreement set forth herein in a particular
instance shall operate as a waiver of any other breach, or as waiver of any
subsequent breach or breaches of the same or a different kind.

Section 4.3 Execution in
Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original, but all of which, taken together, shall constitute one and the same
instrument. 

IN WITNESS WHEREOF, the Parties hereto have caused this
Agreement to be executed as of the date first set forth above. 

PRIMUS THERAPEUTICS, INC. 

By:
______________________
[Name]
[Title] 

[LENDER] 

By: ______________________
[Name]

[Title] 

 

- 7-

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