Document:

Exhibit 10.1

 

MASTER SECURITY AGREEMENT

No. 5081095

 

Dated as of June 20, 2005 (“Agreement”)

 

THIS AGREEMENT is between Oxford
Finance Corporation (together with its successors and assigns, if
any, “Secured Party”)
and Acusphere, Inc. (“Debtor”).  Secured Party has an office at 133 N. Fairfax
Street, Alexandria, VA 22314.  Debtor is
a corporation organized and existing under the laws of the state of
Delaware.  Debtor’s mailing address and
chief place of business is 500 Arsenal Street, Watertown, MA 02472.

 

1.                                      CREATION
OF SECURITY INTEREST.

 

Debtor grants to Secured Party, its successors and assigns, a security
interest in and against all property listed on any collateral schedule now
or in the future annexed to or made a part of this Agreement by mutual agreement
(“Collateral Schedule”),
and in and against all additions, attachments, accessories and accessions to
such property, all substitutions, replacements or exchanges therefore, and all
insurance and/or other proceeds thereof (all such property is individually and
collectively called the “Collateral”).  This security interest is given to secure the
payment and performance of all debts, obligations and liabilities of any kind
whatsoever of Debtor to Secured Party, now existing or arising in the future,
including but not limited to the payment and performance of certain Promissory
Notes from time to time identified on any Collateral Schedule (collectively
“Notes”
and each a “Note”),
and any renewals, extensions and modifications of such debts, obligations and
liabilities (such Notes, debts, obligations and liabilities are called the “Indebtedness”). Debtor
acknowledges that, notwithstanding that the Note(s) may be paid in full, this
Security Agreement shall continue to secure the payment and performance of all
other debts, obligations and liabilities of any kind whatsoever of Debtor to
Secured Party under the Note(s) or this Agreement, now existing or arising in
the future, and that Secured Party shall be under no obligation to release the
Collateral unless and until all Indebtedness of Debtor to Secured Party has
been paid and satisfied; provided, however, Secured Party, in its sole and
exclusive discretion, may elect to release some of the Collateral without
prejudice to Secured Party’s security interest in the remaining Collateral.

 

2.                                      REPRESENTATIONS,
WARRANTIES AND COVENANTS OF DEBTOR.

 

Debtor represents, warrants and covenants as of the date of this
Agreement and as of the date of each Collateral Schedule that:

 

(a)          Due Organization.  Debtor’s exact legal name is as set forth in
the preamble of this Agreement and Debtor is, and will remain, duly organized,
existing and in good standing under the laws of the State set forth in the
preamble of this Agreement, has its chief executive offices at the location specified
in the preamble, and is, and will remain duly qualified and licensed in every
jurisdiction wherever necessary to carry on its business and operations, except
where the failure to be so qualified and licensed will not have a material
adverse effect on Debtor, its business or operations;

 

(b)         Power and Capacity to Enter Into and
Perform Obligations.  Debtor has
adequate power and capacity to enter into, and to perform its obligations under
this Agreement, each Collateral Schedule, each Note and any other documents
evidencing, or given in connection with, any of the Indebtedness (all of the
foregoing are called the “Debt
Documents”);

 

(c)          Due Authorization.  This Agreement and the other Debt Documents
have been duly authorized, executed and delivered by Debtor and constitute
legal, valid and binding agreements enforceable against the Debtor in
accordance with their terms, except to the extent that the enforcement of
remedies may be limited under applicable bankruptcy and insolvency laws and
similar laws of general applicability relating to or affecting creditors’
rights and by equitable principles;

 

(d)         Approvals and Consents.  No approval, consent or withholding of
objections is required from any governmental authority or instrumentality with
respect to the entry into, or performance by Debtor of any of the Debt
Documents, except any already obtained;

 

 

(e)          No Violations or Defaults.  The entry into, and performance by, Debtor of
the Debt Documents will not (i) violate any of the organizational
documents of Debtor or any judgment, order, law or regulation applicable to
Debtor, or (ii) result in any breach of or constitute a default under any
contract to which Debtor is a party, or result in the creation of any lien,
claim or encumbrance on any of Debtor’s property (except for liens in favor of
Secured Party) pursuant to any indenture, mortgage, deed of trust, bank loan,
credit agreement, or other agreement or instrument to which Debtor is a party;

 

(f)            Litigation.  There are no suits or proceedings pending in
court or before any commission, board or other administrative agency against or
affecting Debtor which could, in the aggregate, have a material adverse effect
on Debtor, its business or operations, or its ability to perform its
obligations under the Debt Documents, nor to Debtor’s knowledge are any such
suits or proceedings threatened;

 

(g)         Financial Statements Prepared In Accordance
with GAAP.  All financial statements
delivered to Secured Party in connection with the Indebtedness have been
prepared in accordance with generally accepted accounting principles (provided
that those financial statements that are unaudited are subject to normal
year-end adjustments, which adjustments the Debtor does not expect to be
material, and do not contain all footnotes required under generally accepted
accounting principles), and since the date of the most recent financial
statement, there has been no material adverse change in Debtor’s financial
condition;

 

(h)         Use of Collateral.  The Collateral is not, and will not be, used
by Debtor for personal, family or household purposes;

 

(i)             Collateral in Good Condition and Repair.  The Collateral is, and will remain, in good
condition and repair, normal wear and tear excepted, and Debtor will not be
negligent in its care and use;

 

(j)             Location of Collateral.  All of the tangible Collateral is located at
the locations set forth on each Collateral Schedule. Debtor shall give the
Secured Party 30 days prior written notice of any relocation of any Collateral;

 

(k)          Ownership of Collateral.  Debtor is, and will remain, the sole and
lawful owner, and in possession of, the Collateral, and has the sole right and
lawful authority to grant the security interest described in this Agreement;

 

(l)             Encumbrances.  The Collateral is, and will remain, free and
clear of all liens, claims and encumbrances of any kind whatsoever, except for
Permitted Liens;

 

(m)       Intellectual
Property Rights.  Debtor will use commercially reasonable
efforts to seek to (i) protect, defend and maintain the validity and enforceability
of the Intellectual Property material to Debtor’s business and (ii) not
allow any Intellectual Property material to Debtor’s business to be abandoned,
forfeited or dedicated to the public.

 

(n)         Taxes. 
All federal, state and local tax returns required to be filed by Debtor
have been filed with the appropriate governmental agencies and all taxes due
and payable by Debtor have been timely paid except to the extent contested in
good faith and by appropriate proceedings and for which adequate reserves have
been established or except where the failure to so file or so pay will not have
a material adverse effect on the Collateral or the Debtor, its business or
operations.  Debtor will pay when due all
taxes, assessments and other liabilities except as contested in good faith and
by appropriate proceedings and for which adequate reserves have been
established or except where the failure to so pay will not have a material
adverse effect on the Collateral or the Debtor, its business or operations;

 

(o)         No Defaults.  No event or condition exists under any
material agreement, instrument or document to which Debtor is a party or may be
subject, or by which Debtor or any of its properties are bound, which
constitutes a default or an event of default thereunder, or will, with the
giving of notice, passage of time, or both, would constitute a default or event
of default thereunder, which default will have a material adverse effect on
Debtor, its business or operations;

 

(p)         Certification of Financial Information.  All reports, certificates, schedules, notices
and financial information submitted by Debtor to the Secured Party pursuant to
this Agreement shall be certified as true and correct by the president or chief
financial officer of Debtor; and

 

 

(q)         Notice of Material Adverse Change.  Debtor shall give the Secured Party prompt
written notice of any event, occurrence or other matter which (a) has
resulted or will result in a material adverse change in its financial
condition, business operations, prospects, product development, technology, or
business or contractual relations with third parties of Debtor, or (b) which
would impair the ability of Debtor to perform its material obligations
hereunder or under any of the other financing agreements to which it is a
party, or (c) which would impair the ability of Secured Party to enforce the
Indebtedness or realize upon the Collateral.

 

(r)            Transactions with Affiliates. 
Debtor shall not, without the prior written consent of Secured Party,
directly or indirectly enter into or permit to exist any material transaction
with any Affiliate of Debtor except for transactions that are in the ordinary
course of Debtor’s business, upon fair and reasonable terms that are no less
favorable to Debtor than would be obtained in an arm’s length transaction with
a nonaffiliated Person.

 

(s)          Perfection
Certificate.   Debtor has previously
delivered to the Secured Party a certificate signed by the Debtor and entitled “Perfection
Certificate” (the “Perfection Certificate”). The
Debtor represents and warrants to the Secured Party as follows: (a) the
Debtor’s exact legal name is that indicated on the Perfection Certificate and
on the signature page hereof, (b) the Debtor is an organization of
the type, and is organized in the jurisdiction set forth in the Perfection
Certificate, (c) the Perfection Certificate accurately sets forth the
Debtor’s organizational identification number or accurately states that the
Debtor has none, (d) the Perfection Certificate accurately sets forth the
Debtor’s place of business or, if more than one, its chief executive office, as
well as the Debtor’s mailing address, if different, (e) all other
information set forth on the Perfection Certificate pertaining to the Debtor is
accurate and complete, and (f) that there has been no change in any
information provided in the Perfection Certificate since the date on which it
was executed by the Debtor.

 

3.                                      COLLATERAL.

 

The Debtor, covenants and agrees that, so long as any of the Debt
Documents shall remain in effect, or unless the Secured Party shall otherwise
consent in writing:

 

(a)          Possession
of Collateral; Inspection of Collateral. 
Until the declaration of
any default, Debtor shall remain in possession of the Collateral; except that
Secured Party shall have the right to possess (i) any chattel paper or
instrument that constitutes a part of the Collateral, and (ii) any other
Collateral in which Secured Party’s security interest may be perfected only by
possession.  Secured Party may inspect
any of the Collateral during normal business hours after giving Debtor
reasonable prior notice.

 

(b)         Maintenance
of Collateral.  Debtor shall (i) use
the Collateral only in its trade or business, 
(ii) maintain all of the Collateral in good operating order and
repair, normal wear and tear excepted,  (iii) use and maintain the Collateral only in
compliance with manufacturers recommendations and all applicable laws, and (iv) keep
all of the Collateral free and clear of all liens, claims and encumbrances
(except for Permitted Liens).

 

(c)          Disposition
of Collateral.  Secured Party does
not authorize and Debtor agrees it shall not (i) part with possession of
any of the Collateral (except to Secured Party or for maintenance and repair), (ii) remove
any of the Collateral from the continental United States, or (iii) sell,
rent, lease, mortgage, license, grant a security interest in or otherwise
transfer or encumber (except for Permitted Liens) any of the Collateral.

 

(d)         Taxes.  Debtor shall pay promptly when due all taxes,
license fees, assessments and public and private charges levied or assessed on
any of the Collateral, on its use, or on this Agreement or any of the other
Debt Documents.  At its option, Secured
Party may discharge taxes, liens, security interests or other encumbrances at
any time levied or placed on the Collateral and may pay for the maintenance,
insurance and preservation of the Collateral and effect compliance with the
terms of this Agreement or any of the other Debt Documents.  Debtor agrees to reimburse Secured Party, on
demand, all costs and expenses incurred by Secured Party in connection with
such payment or performance and agrees that such reimbursement obligation shall
constitute Indebtedness.

 

 

(e)          Books
and Records.  Debtor shall, at all
times, keep accurate and complete records of the Collateral, and Secured Party
shall have the right to inspect and make copies of all of Debtor’s books and
records relating to the Collateral during normal business hours, after giving
Debtor reasonable prior notice.

 

(f)            Third
Party Possession of Collateral. 
Debtor agrees and acknowledges that any third person who may at any time
possess all or any portion of the Collateral shall be deemed to hold, and shall
hold, the Collateral as the agent of, and as pledge holder for, Secured Party.
Secured Party may at any time give notice to any third person described in the
preceding sentence that such third person is holding the Collateral as the
agent of, and as pledge holder for, the Secured Party.

 

(g)         Change of Address.  The
Debtor has not at any time within the past four (4) months either
maintained its chief executive office at any other location other than as set
forth above and shall not do so hereafter except with the prior written consent
of the Secured Party.  The Secured Party
shall be entitled to rely upon the foregoing unless it receives 14 days’
advance written notice of a change in the address of the Debtor’s executive
offices.

 

(h)         Fixtures.  Not permit any item of the Collateral to
become a fixture to real estate or an accession to other property without the
prior written consent of the Secured Party, and the Collateral is now and shall
at all times remain personal property except with the Secured Party’s prior
written consent.  If any of the
Collateral is or will be attached to real estate in such a manner as to become
a fixture under applicable state law and if such real estate is encumbered, the
Debtor will obtain from the holder of each Lien or encumbrance a written
consent and subordination to the security interest hereby granted, or a written
disclaimer of any interest in the Collateral, in a form acceptable to the
Secured Party.

 

(i)             Distributions.  Without
the prior written consent of Secured Party, which consent shall not be
unreasonably withheld, conditioned or delayed, Debtor shall not (i) pay
any cash dividends on its common stock; or (ii) voluntarily purchase,
redeem, retire, defease or otherwise acquire for cash any of its common stock
(other than repurchases pursuant to the terms of employee stock purchase plans,
restricted stock agreements or similar arrangements).

 

(j)             Indebtedness Payments. Without the prior written consent of Secured
Party, which consent shall not be unreasonably withheld, conditioned or
delayed, Debtor shall not (i) prepay, redeem, purchase, defease or
otherwise satisfy in any manner prior to the scheduled repayment thereof any
Additional Indebtedness for borrowed money or lease obligations, or (ii) amend,
modify or otherwise change the terms of any Additional Indebtedness for
borrowed money or lease obligations so as to accelerate the scheduled repayment
thereof, in any such case, if such prepayment, redemption, purchase or
satisfaction, of if such amendment would accelerate any payment, in an
aggregate amount in excess of $1,000,000.

 

4.                                      INSURANCE.

 

(a)          Risk of
Loss.  Debtor shall at all times bear
the entire risk of any loss, theft, damage to, or destruction of, any of the
Collateral from any cause whatsoever.

 

(b)         Insurance
Requirements.  Debtor agrees to keep
the Collateral insured against loss or damage by fire and extended coverage
perils, theft, burglary, and for any or all Collateral, which are vehicles, for
risk of loss by collision, and if requested by Secured Party, against such
other risks as Secured Party may reasonably require. The insurance coverage
shall be in an amount no less than the full replacement value of the
Collateral, and deductible amounts, insurers and policies shall be acceptable
to Secured Party.  Debtor shall deliver
to Secured Party policies or certificates of insurance evidencing such
coverage.  Each policy shall name Secured
Party as a loss payee, and Debtor shall seek appropriate amendments to such
insurance policies such that they shall provide for coverage to Secured Party
regardless of the breach by Debtor of any warranty or representation made
therein, shall not be subject to co-insurance, and shall provide that coverage
may not be canceled or altered by the insurer except upon thirty (30) days
prior written notice to Secured Party. 
Debtor appoints Secured Party as its attorney-in-fact to make proof of
loss, claim for insurance and adjustments with insurers, and to receive payment
of and execute or endorse all documents, checks or drafts in connection with
insurance payments. Secured Party shall not act as Debtor’s attorney-in-fact
unless Debtor is in default.  Proceeds of
insurance shall be applied, at the option of Secured Party, to repair or
replace the Collateral or to reduce any of the Indebtedness.

 

 

5.                                      REPORTS.

 

(a)          Notice
of Events.  Debtor shall promptly notify
Secured Party of (i) any change in the name of Debtor,  (ii) any change in the state of its
incorporation or registration,  (iii) any
relocation of its chief executive offices, 
(iv) any of the Collateral being lost, stolen, missing, destroyed,
materially damaged or worn out, (v) any lien, claim or encumbrance other
than Permitted Liens attaching to or being made against any of the Collateral,
or (vi) any occurrence of any default pursuant to Section 7
herein.

 

(b)         Financial
Statements, Reports and Certificates. 
Debtor will deliver to Secured Party copies of all Forms 10-K and 10-Q,
if any, within 30 days after the dates on which they are filed with the
Securities and Exchange Commission. 
Concurrently with delivery of the foregoing information, and from time
to time promptly upon request of Secured Party, Debtor will deliver to Secured
Party a Compliance Certificate substantially consistent with the form of the
document attached hereto as Schedule A.  Debtor will deliver to Secured Party promptly
upon request of Secured Party, in form satisfactory to Secured Party, such
other and additional information, including but not limited to financial
information, as Secured Party may reasonably request from time to time.  Secured Party agrees not to disclose and to
keep any such other and additional information strictly confidential.

 

6.                                      FURTHER
ASSURANCES.

 

(a)          Further
Assurances Regarding Security Interests. 
Debtor shall, upon request of Secured Party, furnish to Secured Party
such further information, execute and deliver to Secured Party such documents
and instruments (including, without limitation, Uniform Commercial Code
financing statements) and shall do such other acts and things as Secured Party
may at any time reasonably request relating to the perfection or protection of
the security interest created by this Agreement or for the purpose of carrying
out the intent of this Agreement. 
Without limiting the foregoing, Debtor shall cooperate and do all acts
deemed necessary or advisable by Secured Party to continue in Secured Party a
perfected first security interest in the Collateral, and shall obtain and
furnish to Secured Party any subordinations, releases, landlord waivers, lessor
waivers, mortgagee waivers, or control agreements, and similar documents as may
be from time to time requested by, and in form and substance satisfactory to,
Secured Party.

 

(b)         Authorization
To File Financing Statements.  Debtor
shall perform any and all acts reasonably requested by the Secured Party to
establish, maintain and continue the Secured Party’s security interest and
liens in the Collateral, including but not limited to, executing or
authenticating financing statements and such other instruments and documents
when and as reasonably requested by the Secured Party. Debtor hereby authorizes
Secured Party through any of Secured Party’s employees, agents or attorneys to
file any and all financing statements, including, without limitation, any
original filings, continuations, transfers or amendments thereof required to
perfect Secured Party’s security interest and liens in the Collateral under the
UCC without authentication or execution by Debtor. Debtor hereby irrevocably
authorizes the Secured Party at any time and from time to time to file in any
filing office in any Uniform Commercial Code jurisdiction any initial financing
statement(s) and amendments thereto that (a) indicate the Collateral (i) is
subject to Secured Party’s security interest, regardless of whether any
particular asset comprised in the Collateral falls within the scope of Article 9
of the Uniform Commercial Code of the State or such jurisdiction, or (ii) as
being of an equal or lesser scope or with greater detail, and (b) provide
any other information required by part 5 of Article 9 of the Uniform
Commercial Code of the State or such other jurisdiction for the sufficiency or
filing office acceptance of any financing statement or amendment, including (i) whether
the Debtor is an organization, the type of organization and any organization
identification number issued to the Debtor, and (ii) in the case of a
financing statement filed as a fixture filing, a sufficient description of real
property to which the Collateral relates. 
The Debtor agrees to furnish any such information to the Secured Party
promptly upon the Secured Party’s request. 
Upon the satisfaction in full of all Indebtedness of Debtor to Secured
Party, Secured Party shall file any financing statements (or terminations
thereof) or other documents reasonably requested by Debtor in order to release
and terminate Secured Party’s security interest and liens in the Collateral
under the UCC.

 

(c)          Indemnification.  Debtor shall indemnify and defend the Secured
Party, its successors and assigns, and their respective directors, officers and
employees, from and against all claims, actions and suits (including, without
limitation, related attorneys’ fees) of any kind whatsoever arising, directly
or indirectly, in connection with any of the Collateral or the Debt Documents,
provided that such claim, action or suit does not arise out of Secured Party’s
willful misconduct or gross negligence.

 

 

7.                                      DEFAULT
AND REMEDIES.

 

(a)          Defaults.  Debtor shall be in default under this
Agreement and each of the other Debt Documents if any one of the following
should occur:

 

	
  (i)

  	
   

  	
  Debtor
  breaches its obligation to pay when due any installment or other amount due
  or coming due under any of the Debt Documents and fails to cure the breach
  within five (5) days;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  Debtor,
  without the prior written consent of Secured Party, attempts to or does sell,
  rent, lease, license, mortgage, grant a security interest in, or otherwise
  transfer or encumber, or allow Liens (except for Permitted Liens) upon, any
  of the Collateral;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  Debtor
  breaches any of its insurance obligations under Section 4 and
  fails to cure the breach within five (5) days;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  Debtor breaches any of its
  obligations under Section 2(j) and fails to cure the
  breach within five (5) days;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  Debtor
  breaches any of its other non-payment obligations under any of the Debt
  Documents and fails to cure that breach within thirty (30) days after it has
  occurred;

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  Any
  warranty, representation or statement made by Debtor in any of the Debt
  Documents or otherwise in connection with any of the Indebtedness shall be
  false or misleading in any material respect when made;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  Any material
  portion of the Collateral is subjected to attachment, execution, levy,
  seizure or confiscation in any legal proceeding or otherwise, or if any legal
  or administrative proceeding is commenced against Debtor or any material
  portion of the Collateral, which in the
  good faith judgment of Secured Party subjects any material portion of the
  Collateral to a material risk of attachment, execution, levy, seizure or
  confiscation and no bond is posted or protective order obtained to negate
  such risk;

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  Debtor
  materially breaches or is in material default under any other agreement
  between Debtor and Secured Party;

  
	
   

  	
   

  	
   

  
	
  (ix)

  	
   

  	
  Debtor or
  any guarantor or other obligor for any of the Indebtedness (collectively “Guarantor”) dissolves,
  terminates its existence, becomes insolvent or ceases to do business as a
  going concern;

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  If Debtor or
  any Guarantor is a natural person, and Debtor or any such Guarantor dies or
  becomes incompetent;

  
	
   

  	
   

  	
   

  
	
  (xi)

  	
   

  	
  A receiver
  is appointed for all or of any part of the property of Debtor or any
  Guarantor, or Debtor or any Guarantor makes any assignment for the benefit of
  creditors;

  
	
   

  	
   

  	
   

  
	
  (xii)

  	
   

  	
  Debtor or
  any Guarantor files a petition under any bankruptcy, insolvency or similar
  law, or any such petition is filed against Debtor or any Guarantor and is not
  dismissed within sixty (60) days;

  
	
   

  	
   

  	
   

  
	
  (xiii)

  	
   

  	
  Debtor’s
  improper filing of an amendment or termination statement relating to a filed
  financing statement describing the Collateral not cured within five
  (5) days;

  
	
   

  	
   

  	
   

  
	
  (xiv)

  	
   

  	
  Without the prior written
  consent of Secured Party, which consent shall not be unreasonably withheld,
  conditioned or delayed, Debtor shall merge with or consolidate into any other
  entity or sell all or substantially all of its assets or in any manner
  terminate its existence;

  
	
   

  	
   

  	
   

  
	
  (xv)

  	
   

  	
  Without the prior written
  consent of Secured Party, which consent shall not be unreasonably withheld,
  conditioned or delayed, If Debtor is a publicly held corporation, there shall
  be a change in the ownership of Debtor’s stock such that Debtor is no longer
  subject to the reporting requirements of the Securities Exchange Act of 1934
  or no longer has a class of equity securities registered under Section 12
  of the Securities Act of 1933;

  
	
   

  	
   

  	
   

  
	
  (xvi)

  	
   

  	
  Debtor
  defaults under any agreement to pay a material amount under any Additional
  Indebtedness or any other financing arrangement between Debtor and a third
  party; or

  

 

 

	
  (xvii)

  	
   

  	
  Secured
  Party shall have determined in its sole and good faith judgment that there
  has been a material adverse change in the financial condition of Debtor from
  the date hereof. Secured Party acknowledged that Debtor anticipates reporting
  continuing losses and this alone will not be construed as a material adverse
  change. In addition, Secured Party acknowledges that Debtor anticipates the
  need to incur additional indebtedness. Such additional indebtedness alone
  shall not be construed as a material adverse change.

  

 

(b)         Acceleration.  If Debtor is in default, the Secured Party, at its
option, may declare any or all of the Indebtedness to be immediately due and
payable, without demand or notice to Debtor or any Guarantor (provided that if
there is a default as a result of a bankruptcy or insolvency all Indebtedness
shall become immediately due and payable without any action by Secured
Party).  The accelerated obligations and
liabilities shall bear interest (both before and after any judgment) until paid
in full at the Default Rate.

 

(c)          Rights
and Remedies.  Secured Party shall have all of the rights and remedies of
a Secured Party under the Uniform Commercial Code, and under any other
applicable law.  Without limiting the
foregoing, Secured Party shall have the right during Debtor’s default to (i) notify
any account debtor of Debtor or any obligor on any instrument which constitutes
part of the Collateral to make payment to the Secured Party,  (ii) with or without legal process,
enter any premises where the Collateral may be and take possession of and
remove the Collateral from the premises or store it on the premises,  (iii) sell the Collateral at public or
private sale, in whole or in part, and have the right to bid and purchase at
said sale, or (iv) lease or otherwise dispose of all or part of the
Collateral, applying proceeds from such disposition to the obligations then in
default.  If requested by Secured Party,
Debtor shall promptly assemble the Collateral and make it available to Secured
Party at a place to be designated by Secured Party, which is reasonably
convenient to both parties.  Secured
Party may also render any or all of the Collateral unusable at the Debtor’s
premises and may dispose of such Collateral on such premises without liability
for rent or costs.  Any notice that Secured
Party is required to give to Debtor under the Uniform Commercial Code of the
time and place of any public sale or the time after which any private sale or
other intended disposition of the Collateral is to be made shall be deemed to
constitute reasonable notice if such notice is given to the last known address
of Debtor at least five (5) days prior to such action. Upon the occurrence
and during the continuation of a default, Debtor hereby appoints Secured Party
as Debtor’s attorney-in-fact, with full authority in Debtor’s place and stead
and in Debtor’s name or otherwise, from time to time in Secured Party’s sole
and arbitrary discretion, to take any action and to execute any instrument
which Secured Party may deem necessary or advisable to accomplish the purpose
of this Agreement.

 

(d)         Application of Proceeds.  The
proceeds and/or avails of the Collateral, or any part thereof, and the proceeds
and the avails of any remedy hereunder (as well as any other amounts of any
kind held by Secured Party, at the time of or received by Secured Party after
the occurrence of a default hereunder) shall be paid to and applied as follows:

 

a.               First, to the payment of documented out-of-pocket costs and expenses,
including all amounts expended to preserve the value of the Collateral, all
costs of repossession, storage, and disposition including without limitation
attorneys’, appraisers’, and auctioneers’ fees, of foreclosure or suit, if any,
and of such sale and the exercise of any other rights or remedies, and of all
proper fees, expenses, liability and advances, including reasonable legal
expenses and attorneys’ fees, incurred or made hereunder by Secured Party,
including without limitation, Secured Party’s Expenses;

 

b.              Second, to the payment to Secured Party of the amount then owing or unpaid on
the Loans for scheduled payments, any accrued and unpaid interest, and all
other Indebtedness (provided, however, if such proceeds shall be
insufficient to pay in full the whole amount so due, owing or unpaid upon the
Loans, then to the unpaid interest thereon, then to the outstanding principal
amount of the Loans, and then to the payment of other amounts then payable to
Secured Party under any of the Debt Documents or otherwise); and

 

c.               Third, to the payment of the surplus, if any, to Debtor, its successors and
assigns, or to whosoever may be lawfully entitled to receive the same.

 

(e)          Fees and Costs. 
Debtor agrees to pay all reasonable attorneys’ fees and other costs
incurred by Secured Party in connection with the enforcement, assertion,
defense or preservation of Secured Party’s rights and remedies under this
Agreement, or if prohibited by law, such lesser sum as may be permitted. Debtor
further agrees that such fees and costs shall constitute Indebtedness.

 

 

(f)            Remedies Cumulative. 
Secured Party’s rights and remedies under this Agreement or otherwise
arising are cumulative and may be exercised singularly or concurrently.  Neither the failure nor any delay on the part
of the Secured Party to exercise any right, power or privilege under this
Agreement shall operate as a waiver, nor shall any single or partial exercise
of any right, power or privilege preclude any other or further exercise of that
or any other right, power or privilege. 
SECURED PARTY SHALL NOT BE DEEMED TO HAVE WAIVED ANY OF ITS RIGHTS UNDER
THIS AGREEMENT OR UNDER ANY OTHER AGREEMENT, INSTRUMENT OR PAPER SIGNED BY
DEBTOR UNLESS SUCH WAIVER IS EXPRESSED IN WRITING AND SIGNED BY SECURED
PARTY.  A waiver on any one occasion
shall not be construed as a bar to or waiver of any right or remedy on any
future occasion.

 

(g)         WAIVER OF JURY TRIAL. 
DEBTOR AND SECURED PARTY UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE INDEBTEDNESS SECURED
HEREBY, ANY DEALINGS BETWEEN DEBTOR AND SECURED PARTY RELATING TO THE SUBJECT
MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP
THAT IS BEING ESTABLISHED BETWEEN DEBTOR AND SECURED PARTY.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT.
THIS WAIVER IS IRREVOCABLE.  THIS WAIVER MAY NOT
BE MODIFIED EITHER ORALLY OR IN WRITING. 
THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, ANY OTHER DEBT DOCUMENTS, OR TO
ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED
TRANSACTION.  THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

8.                                      MISCELLANEOUS.

 

(a)          Assignment.  This Agreement and/or any of the other Debt
Documents may be assigned, in whole or in part, by Secured Party without notice
to Debtor, and Debtor agrees not
to assert against any such assignee, or assignee’s assigns, any defense,
set-off, recoupment claim or counterclaim which Debtor has or may at any time
have against Secured Party for any reason whatsoever.  Debtor agrees that if Debtor
receives written notice of an assignment from Secured Party, Debtor will pay
all amounts payable under any assigned Debt Documents to such assignee or as
instructed by Secured Party.  Debtor also
agrees to confirm in writing receipt of the notice of assignment as may be
reasonably requested by Secured Party or assignee.

 

(b)         Notices.  All notices to be given in connection with
this Agreement shall be in writing, shall be addressed to the parties at their
respective addresses set forth in this Agreement (unless and until a different
address may be specified in a written notice to the other party), and shall be
deemed given (i) on the date of receipt if delivered in hand or by
facsimile transmission,  (ii) on the
next business day after being sent by express mail, and (iii) on the
fourth business day after being sent by regular, registered or certified
mail.  As used herein, the term “business
day” shall mean and include any day other than Saturdays, Sundays, or other
days on which commercial banks in New York, New York are required or authorized
to be closed.

 

(c)          Correction
of Errors.  Secured Party may correct
patent errors and fill in all blanks in this Agreement, any Collateral Schedule or
in any Note consistent with the agreement of the parties.

 

(d)         Time is
of the Essence.  Time is of the
essence of this Agreement.  This
Agreement shall be binding, jointly and severally, upon all parties described
as the “Debtor” and their respective heirs, executors, representatives,
successors and assigns, and shall inure to the benefit of Secured Party, its
successors and assigns.

 

(e)          Entire
Agreement.  This Agreement and the
Debt Documents constitute the entire agreement between the parties with respect
to the subject matter of this Agreement and supersede all prior understandings
(whether written, verbal or implied) with respect to such subject matter.  NEITHER THIS AGREEMENT NOR ANY OF THE DEBT
DOCUMENTS SHALL BE CHANGED OR TERMINATED
ORALLY OR BY COURSE OF CONDUCT, BUT ONLY BY A WRITING SIGNED BY BOTH
PARTIES.  Section headings contained
in this Agreement have been included for convenience only, and shall not affect
the construction or interpretation of this Agreement.

 

 

(f)            Termination of Agreement.  This
Agreement shall continue in full force and effect until all of the Indebtedness
has been indefeasibly paid in full to Secured Party or its assignee; provided,
that Debtor’s indemnity obligations set forth in Section 6(c) shall
survive until all applicable statute of limitations periods with respect to
actions that may be brought against Secured Party have run.  The surrender, upon payment or otherwise, of
any Note or any of the other documents evidencing any of the Indebtedness shall
not affect the right of Secured Party to retain the Collateral for such other
Indebtedness as may then exist or as it may be reasonably contemplated will
exist in the future.  This Agreement
shall automatically be reinstated if Secured Party is ever required to return
or restore the payment of all or any portion of the Indebtedness (all as though
such payment had never been made). Secured Party shall, at Debtor’s sole cost
and expense, execute such further documents and take such further actions as
may be reasonably necessary to effect the release of its security interests
contemplated by this paragraph, including duly executing and delivering
termination statements for filing in all relevant jurisdictions under the Code.

 

(g)         CHOICE OF
LAW.  DEBTOR AGREES THAT SECURED
PARTY AND/OR ITS SUCCESSORS AND ASSIGNS SHALL HAVE THE OPTION BY WHICH STATE
LAWS THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED: (A) THE LAWS OF THE
COMMONWEALTH OF VIRGINIA; OR (B) IF COLLATERAL HAS BEEN PLEDGED TO SECURE
THE LIABILITIES, THEN BY THE LAWS OF THE STATE OR STATES WHERE THE COLLATERAL
IS LOCATED, AT SECURED PARTY’S OPTION. 
THIS CHOICE OF STATE LAWS IS EXCLUSIVE TO THE SECURED PARTY.  DEBTOR SHALL NOT HAVE ANY OPTION TO CHOOSE
THE LAWS BY WHICH THIS AGREEMENT SHALL BE GOVERNED.  DEBTOR ACKNOWLEDGES THAT THIS AGREEMENT IS
BEING SIGNED BY THE SECURED PARTY IN PARTIAL CONSIDERATION OF SECURED PARTY’S
RIGHT TO ENFORCE IN THE JURISDICTION STATED ABOVE.  DEBTOR CONSENTS TO JURISDICTION IN THE
COMMONWEALTH OF VIRGINIA OR THE STATE IN WHICH ANY COLLATERAL IS LOCATED AND
VENUE IN ANY FEDERAL OR STATE COURT IN THE COMMONWEALTH OF VIRGINIA OR THE STATE
IN WHICH COLLATERAL IS LOCATED FOR SUCH PURPOSES AND WAIVES ANY AND ALL RIGHTS
TO CONTEST SAID JURISDICTION AND VENUE AND ANY OBJECTION THAT SAID COUNTY IS
NOT CONVENIENT.  DEBTOR WAIVES ANY RIGHTS
TO COMMENCE ANY ACTION AGAINST SECURED PARTY IN ANY JURISDICTION EXCEPT
VIRGINIA, OR IF SECURED PARTY CHOOSES TO LITIGATE IN A STATE WHERE COLLATERAL
IS LOCATED THEN IN SUCH COUNTY AND STATE.

 

(h)         Power of
Attorney.  Upon the occurrence and
continuation of a default, To facilitate direct collection, the Debtor hereby
appoints the Secured Party and any officer or employee of the Secured Party, as
the Secured Party may from time to time designate, as attorney-in-fact for the
Debtor to (a) endorse the name of the Debtor in favor of the Secured Party
upon any and all checks, drafts, money orders, notes, acceptances or other
evidences of payment or Collateral that may come into the Secured Party’s
possession; (b) do all acts and things necessary to carry out this
Agreement and the transactions contemplated hereby, including signing the name
of the Debtor on any instruments required by law in connection with the
transactions contemplated hereby and on financing statements as permitted by
the Virginia Uniform Commercial Code. 
The Debtor hereby ratifies and approves all acts of such
attorneys-in-fact, and neither the Secured Party nor any other such
attorney-in-fact shall be liable for any acts of commission or omission, or for
any error of judgment or mistake of fact
or law of any such attorney-in-fact. 
This power, being coupled with an interest, is irrevocable so long as
the Loan remains unsatisfied, or any Debt Document remains effective, as solely
determined by the Secured Party.

 

(i)             Loss, Depreciation or Other Damage.  The
Secured Party shall not be liable for or prejudiced by any loss, depreciation
or other damage to Collateral unless caused by the Secured Party’s willful and
malicious act and the Secured Party shall have no duty to take any action to
preserve or collect any Collateral.

 

(j)             Demand; Protest. 
Debtor waives demand, protest, notice of protest, notice of default or
dishonor, notice of payment and nonpayment, notice of any default, nonpayment
at maturity, release, compromise, settlement, extension, or renewal of
accounts, documents, instruments, chattel paper, and guarantees at any time held
by Secured Party on which Debtor may in any way be liable.

 

 

9.                                      DEFINITIONS.

 

As used herein, the following terms, when initial capital letters are
used, shall have the respective meanings set forth below.  In addition, all terms defined in the Code shall
have the meanings given therein unless otherwise defined herein.

 

Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings, unless the context otherwise requires:

 

“Additional Indebtedness”
means, with respect to Debtor or any of its subsidiaries, the aggregate amount
of, without duplication, (a) all obligations of such Person for borrowed
money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (c) all obligations of such Person to
pay the deferred purchase price of property or services (excluding trade
payables aged less than one hundred eighty (180) days), (d) all capital
lease obligations of such Person, (e) all obligations or liabilities of
others secured by a Lien on any asset of such Person, whether or not such
obligation or liability is assumed, (f) all obligations or liabilities of
others guaranteed by such Person, and (g) any other obligations or
liabilities which are required by GAAP to be shown as debt on the balance sheet
of such Person.  Unless otherwise
indicated, the term “Additional Indebtedness”
shall include all Indebtedness of Debtor and all of its subsidiaries.

 

“Affiliate”
of a Person is a Person that owns or controls directly or indirectly the
Person, any Person that controls or is controlled by or is under common control
with the Person, and each of that Person’s senior executive officers,
directors, partners and, for any Person that is a limited liability company,
that Person’s managers and members.

 

“Code” means
the Virginia Uniform Commercial Code (including revised Article 9
thereof).

 

“Collateral”
has the meaning given such capitalized term in Section 1.

 

“Collateral Schedule”
has the meaning given such capitalized term in Section 1.

 

“Debt Documents”
has the meaning given such capitalized term in Section 2(b).

 

“Default Rate”
is the lower of
eighteen percent (18%) per annum or the maximum rate not prohibited by
applicable law.

 

“Indebtedness”
has the meaning given such capitalized term in Section 1.

 

“Intellectual Property”
shall mean (a) all of the Debtor’s right, title and interest, whether now
owned or existing or hereafter acquired or arising, in and to all domestic and
foreign copyrights, copyright registrations and copyright applications, whether
or not registered or filed with any governmental authority, together with (i) all
renewals thereof, (ii) all present and future rights of the Debtor under
all present and future license agreements relating thereto, whether the Debtor
is licensee or licensor thereunder, (iii) all income, royalties, damages
and payments now or hereafter due and/or payable to the Debtor thereunder or
with respect thereto, including, without limitation, damages and payments for
past, present or future infringements thereof, (iv) all of the Debtor’s
present and future claims, causes of action and rights to sue for past, present
or future infringements thereof, and (v) all rights corresponding thereto
throughout the world (collectively “Copyright Rights”);
(b) all of the Debtor’s right, title and interest, whether now owned or
existing or hereafter acquired or arising, in and to all United States and
foreign patents, and pending and abandoned United States and foreign patent
applications, including, without limitation, the inventions and improvements
described or claimed therein, together with(i) any reissues, divisions,
continuations, certificates of re-examination, extensions and
continuations-in-part thereof, (ii) all present and future rights of the
Debtor under all present and future license agreements relating thereto,
whether the Debtor is licensee or licensor thereunder, (iii) all income,
royalties, damages and payments now or hereafter due and/or payable to the
Debtor thereunder or with respect thereto, including, without limitation,
damages and payments for past, present or future infringements thereof, (iv) all
of the Debtor’s present and future claims, causes of action and rights to sue
for past, present or future infringements thereof, and (v) all rights corresponding
thereto throughout the world (collectively “Patent
Rights”); (c) all of the Debtor’s right, title and interest,
whether now owned or existing or hereafter acquired or arising, in and to all
domestic and foreign trademarks, trademark registrations, trademark
applications and trade names, whether or not registered or filed with any
governmental authority, together with (i) all renewals thereof, (ii) all
present and future rights of the Debtor under all present and future license
agreements relating thereto, whether the Debtor is licensee or licensor
thereunder, (iii) all income, royalties, damages and payments now or
hereafter due and/or payable to the Debtor thereunder or with respect thereto,
including, without limitation, damages and payments for past, present or future
infringements thereof, (iv) all of the Debtor’s present and future claims,
causes of action and rights to sue for past, present or future infringements
thereof, and (v) all rights corresponding thereto throughout the world
(collectively “Trademark Rights”); (d) all
present and future licenses and license agreements of the Debtor, and all
rights of the Debtor under or in connection therewith, whether the Debtor is
licensee or licensor thereunder, including, without limitation, any present or
future franchise agreements under which the Debtor is franchisee or franchisor,
together with (i) all renewals thereof, (ii) all income, royalties,
damages and payments now or hereafter due and/or payable to the Debtor
thereunder or with respect thereto, including, without limitation, damages and
payments for past, present or future infringements thereof, (iii) all
claims, causes of action and rights to sue for past, present or future
infringements thereof, and (iv) all rights corresponding thereto
throughout the world (collectively “License Rights”);
(e)  all present and future trade secrets of the Debtor; and (f) all
other present and future intellectual property of the Debtor.

 

“Lien(s)” shall mean any voluntary or involuntary mortgage, pledge,
deed of trust, assignment, security interest, encumbrance, hypothecation, lien,
or charge of any kind (including any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as
any of the foregoing, and the filing of, or agreement to give, any financing
statement under the Uniform Commercial Code or comparable law of any
jurisdiction).

 

 

“Loan” means
an advance of credit by Secured Party to Debtor.

 

“Note” has
the meaning given such capitalized term in Section 1.

 

“Permitted Liens”
means:  (i) liens in favor of
Secured Party, (ii) liens for taxes not yet due or for taxes being
contested in good faith and which do not involve, in the judgment of Secured
Party, any imminent risk of the sale, forfeiture or loss of any of the
Collateral, and (iii) inchoate material men’s, mechanic’s, repairmen’s and
similar liens arising by operation of law in the normal course of business for
amounts which are not delinquent.

 

“Person”
is any individual, sole proprietorship, partnership, limited liability company,
joint venture, company association, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or government agency.

 

 “Primary Operating Account” has the
meaning given such capitalized term in Section 2(w).

 

“Secured Party’s Expenses”
means all
reasonable documented costs or expenses (including reasonable attorneys’ fees
and expenses) incurred in connection with the preparation, negotiation,
documentation, administration and funding of the Debt Documents; and Secured
Party’s reasonable attorneys’ fees, costs and expenses incurred in amending,
modifying, enforcing or defending the Debt Documents (including fees and
expenses of appeal or review), including the exercise of any rights or remedies
afforded hereunder or under applicable law, whether or not suit is brought,
whether before or after bankruptcy or insolvency, including without limitation
all fees and costs incurred by Secured Party in connection with Secured Party’s
enforcement of its rights in a bankruptcy or insolvency proceeding filed by or
against Debtor or its property.

 

 

IN WITNESS WHEREOF, Debtor and Secured Party,
intending to be legally bound hereby, have duly executed this Agreement in one
or more counterparts, each of which shall be deemed to be an original, as of
the day and year first aforesaid.

 

	
  SECURED
  PARTY:

  	
  DEBTOR:

  	
   

  
	
   

  	
   

  	
   

  
	
  Oxford Finance
  Corporation

  	
  Acusphere, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /S/ Michael
  J. Altenburger

  	
   

  	
  By:

  	
    /S/
  John Thero

  	
   

  
	
   

  	
   

  
	
  Name:

  	
    Michael
  J. Altenburger

  	
   

  	
  Name:

  	
   John
  Thero

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  CFO

  	
   

  	
  Title:

  	
       Sr.
  VP, Treasurer & CFO

  	
   

  
														

 

 

SCHEDULE A

(Compliance
Certificate)

 

 

FORM OF

COMPLIANCE CERTIFICATE

 

Oxford Finance Corporation

 

133 N. Fairfax Street

 Alexandria, VA 22314

 

Re:                               <Debtor>

 

Gentlemen:

 

Reference is made to the Master Security Agreement dated as of                               ,
200     (as the same have been and may be amended from
time to time in writing, the “Loan Agreement”,
the capitalized terms used herein as defined therein), between Oxford Finance
Corporation and <Debtor> (the “Company”).

 

The undersigned authorized representative of the
Company hereby certifies that in accordance with the terms and conditions of
the Loan Agreement, the Company is in compliance for the financial reporting
period ending                  in
all material respects with all required financial reporting under the Loan
Agreement, except as noted below. 
Attached herewith are the required documents supporting the foregoing
certification.  The undersigned further
certifies that the accompanying financial statements have been prepared in
accordance with Generally Accepted Accounting Principles (provided that those
financial statements that are unaudited are subject to normal year-end
adjustments, which adjustments the Debtor does not expect to be material, and
do not contain all footnotes required under generally accepted accounting
principles), and are consistent from one period to the next, except as explained
below.

 

Indicate
compliance status by circling Yes/No under “Complies”

 

	
  REPORTING REQUIREMENT

  	
   

  	
  REQUIRED

  	
   

  	
  COMPLIES

  
	
  Form 10-Q

  	
   

  	
  Within 30 days of being filed with SEC

  	
   

  	
   

  
	
  Form 10-K

  	
   

  	
  Within 30 days of being filed with SEC

  	
   

  	
   

  

 

EXPLANATIONS

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  <Debtor>

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:*

  

 

* Must be executed by Debtor’s Chief Financial Officer.

 

 

[SCHEDULE B]

 

[Listing of Additional Indebtedness]Exhibit 10.2

 

PROMISSORY NOTE

 

To Master Security
Agreement No.                      

 

(Date)

 

FOR VALUE RECEIVED, Acusphere, Inc., a Delaware
corporation, located at the address stated below (“Maker”)
promises, jointly and severally if more than one, to pay to the order of Oxford Finance Corporation or any subsequent holder hereof
(each, a “Payee”) at its office located at 133 N. Fairfax Street, Alexandria, VA 22314 or at such other
place as Payee or the holder hereof may designate, the principal sum of                               Dollars ($                             ),
with interest on the unpaid principal balance, from the date hereof through and
including the dates of payment, at a fixed interest rate of                percent
(                %)
per annum, in                
(                 )
consecutive                    installments
of principal and interest as follows:

 

Periodic

 

Installment Amount

 

each (“Periodic Installment”)
and a final installment which shall be in the amount of the total outstanding
principal and interest.  The first
Periodic Installment shall be due and payable on                             and
the following Periodic Installments and the final installment shall be due and
payable on the first day of each succeeding month (each, a “Payment
Date”) beginning                     .  Such installments have been calculated on the
basis of a 360-day year of twelve 30-day months.  Each payment may, at the option of the Payee,
be calculated and applied on an assumption that such payment would be made on
its due date. Maker agrees to pay any initial partial month interest payment
from the date of this Note to the first day of the following month (“Interim
Interest”).

 

The acceptance by Payee of any payment which is less than payment in
full of all amounts due and owing at such time shall not constitute a waiver of
Payee’s right to receive payment in full at such time or at any prior or
subsequent time.

 

The Maker hereby expressly authorizes the Payee to insert the date
value is actually given in the blank space on the face hereof and on all
related documents pertaining hereto.

 

This Note may be secured by a security agreement, chattel mortgage,
pledge agreement or like instrument (each of which is hereinafter called a “Security Agreement” and any Security Agreement, this Note and any
other document evidencing or securing this loan is hereinafter called a “Debt
Document”).

 

 

Time is of the
essence hereof.  If any installment or
any other sum due under this Note or any Security Agreement is not received
when due (subject to applicable cure periods, if any), the Maker agrees to pay,
in addition to the amount of each such installment or other sum, a late payment
charge of five percent (5%) of the amount of said installment or other sum, but
not exceeding any lawful maximum.  If (i) Maker
fails to make payment of any amount due hereunder ; or (ii) Maker is in
default under, or fails to perform under any term or condition contained in any
Security Agreement, in either case, subject to applicable cure periods, if any,
then the entire principal sum remaining unpaid, together with all accrued
interest thereon and any other sum payable under this Note or any Security
Agreement, at the election of Payee, shall immediately become due and payable, with
interest thereon at the lesser of eighteen percent (18%) per annum or the
highest rate not prohibited by applicable law from the date of such accelerated
maturity until paid (both before and after any judgment).

 

Notwithstanding
anything to the contrary contained herein or in the Security Agreement, Maker
may prepay in full, but not in part, its entire Indebtedness hereunder by
payment of the entire Indebtedness plus an additional sum as a premium equal to
the following percentages of the remaining principal balance for the indicated
period:

 

From the date of this Note until the first
annual anniversary date of this Note: six percent (6%)

 

From the first annual anniversary date of
this Note until the second annual anniversary date of this Note: five percent
(5%)

 

From the second annual anniversary date of
this Note until the third annual anniversary date of this Note: four percent
(4%)

 

From the third annual anniversary date of
this Note until the fourth annual anniversary date of this Note: two percent (2%)

 

Notwithstanding
the foregoing, Maker may prepay in full, but not in part, its entire
Indebtedness hereunder by payment of the entire Indebtedness without having to
pay the additional sums described above as premiums in the event that Payee
does not consent on a timely basis to (i) any of the distributions
described in Section 3(i) of the Security Agreement, (ii) any of
the payments described in Section 3(j) of the Security Agreement or (iii) any
of the transactions described in Section 7(a)(xiv) of the Security
Agreement.

 

The Maker and
all sureties, endorsers, guarantors or any others (each such person, other than
the Maker, an “Obligor”) who may at any time
become liable for the payment hereof jointly and severally consent hereby to
any and all extensions of time, renewals, waivers or modifications of, and all
substitutions or releases of, security or of any party primarily or secondarily
liable on this Note or any Security Agreement or any term and provision of
either, which may be made, granted or consented to by Payee, and agree that
suit may be brought and maintained against any one or more of them, at the
election of Payee without joinder of any other as a party thereto, and that
Payee shall not be required first to foreclose, proceed against, or exhaust any
security hereof in order to enforce payment of this Note.  The Maker and each Obligor hereby waives
presentment, demand for payment, notice of nonpayment, protest, notice of
protest, notice of dishonor, and all other notices in connection herewith, as
well as filing of suit (if permitted by law) and diligence in collecting this
Note or enforcing any of the security hereof, and agrees to pay (if and to the
extent permitted by law) all expenses incurred in collection, including Payee’s
actual attorneys’ fees.  Maker and each
Obligor agrees that fees not in excess of twenty percent (20%) of the amount
then due shall be deemed reasonable.

 

Maker and
Payee intend to strictly comply with all applicable federal and Virginia laws,
including applicable usury laws (or the usury laws of any jurisdiction whose
usury laws are deemed to apply to the Note or any other Debt Document despite
the intention and desire of the parties to apply the usury laws of the
Commonwealth of Virginia).  Accordingly,
the provisions of this paragraph shall govern and control over every other
provision of this Note or any other Debt Document which conflicts or is
inconsistent with this Section, even if such provision declares that it
controls.  As used in this paragraph, the
term “interest” includes the aggregate of
all charges, fees, benefits or other compensation which constitute interest
under applicable law, provided that, to the maximum extent permitted by
applicable law, (a) any non-principal payment shall be characterized as an
expense or as compensation for something other than the use, forbearance or
detention of money and not as interest, and (b) all interest at any time
contracted for, reserved, charged or received shall be amortized, prorated,
allocated and spread, in equal parts during the full term of the
obligations.  In no event shall Maker or
any other person be obligated to pay, or Payee have any right or privilege to
reserve, receive or retain, (a) any interest in excess of the maximum
amount of non-usurious interest permitted under the laws of the Commonwealth of
Virginia or the applicable laws (if any) of the United States or of any other
state, or (b) total interest in excess of the amount which Payee could
lawfully have contracted for, reserved, received, retained or charged had the
interest been calculated for the full term of the obligations.  On each day, if any, that the interest rate
(the “Stated Rate”) called for under this Note or any other Debt
Document exceeds the maximum non-usurious rate, the rate at which interest
shall accrue shall automatically be fixed by operation of this sentence at the
maximum non-usurious rate for that day. 
Thereafter, interest shall accrue at the Stated Rate unless and until
the Stated Rate again exceeds the maximum non-usurious rate, in which case, the
provisions of the immediately preceding sentence shall again automatically
operate to limit the interest accrual rate to the maximum non-usurious
rate.  The daily interest 

 

 

rates to be
used in calculating interest at the maximum non-usurious rate shall be
determined by dividing the applicable maximum non-usurious rate by the number
of days in the calendar year for which such calculation is being made.  None of the terms and provisions contained in
this Note or in any other Debt Document which directly or indirectly relate to
interest shall ever be construed without reference to this paragraph, or be
construed to create a contract to pay for the use, forbearance or detention of
money at an interest rate in excess of the maximum non-usurious rate.  If the term of any obligation is shortened by
reason of acceleration of maturity as a result of any Default or by any other
cause, or by reason of any required or permitted prepayment, and if for that
(or any other) reason Payee at any time, including but not limited to, the
stated maturity, is owed or receives (and/or has received) interest in excess
of interest calculated at the maximum non-usurious rate, then and in any such
event all of any such excess interest shall be canceled automatically as of the
date of such acceleration, prepayment or other event which produces the excess,
and, if such excess interest has been paid to Payee, it shall be credited pro
tanto against the then-outstanding principal balance of Maker’s obligations
to Payee, effective as of the date or dates when the event occurs which causes
it to be excess interest, until such excess is exhausted or all of such
principal has been fully paid and satisfied, whichever occurs first, and any
remaining balance of such excess shall be promptly refunded to its payor.

 

THE MAKER
HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS NOTE, ANY
OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN MAKER AND PAYEE RELATING TO THE
SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE
RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN MAKER AND PAYEE.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL
ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
(INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.)  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT
BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY
RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
TRANSACTION OR ANY RELATED TRANSACTION. 
IN THE EVENT OF LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

 

This Note and
any Security Agreement constitute the entire agreement of the Maker and Payee
with respect to the subject matter hereof and supercedes all prior
understandings, agreements and representations, express or implied.

 

No variation
or modification of this Note, or any waiver of any of its provisions or
conditions, shall be valid unless in writing and signed by an authorized
representative of Maker and Payee.  Any
such waiver, consent, modification or change shall be effective only in the
specific instance and for the specific purpose given.

 

Any provision
in this Note or any Security Agreement which is in conflict with any statute,
law or applicable rule shall be deemed omitted, modified or altered to
conform thereto.

 

Upon receipt of an
affidavit of an officer of Payee as to the loss, theft, destruction or
mutilation of this Note or any Debt Document which is not of public record,
and, in the case of any such loss, theft, destruction or mutilation, upon
surrender and cancellation of such Note or other Debt Document, Maker will
issue, in lieu thereof, a replacement Note or other Debt Document in the same
principal amount thereof and otherwise of like tenor.

 

It is understood and
agreed that this Note and all of the Debt Documents were negotiated and have
been or will be delivered to Payee in the Commonwealth of Virginia, which State
the parties agree has a substantial relationship to the parties and to the
underlying transactions embodied by this Note and the Debt Documents. Maker
agrees to furnish to Payee at Payee’s office in Alexandria, VA, all further
instruments, certifications and documents to be furnished hereunder.  The parties also agree that if collateral is
pledged to secure the debt evidenced by this Note, that the state or states in
which such collateral is located each have a substantial relationship to the
parties and to the underlying transaction embodied by this Note and the Debt
Documents.

 

MAKER AGREES
THAT THE PAYEE OF THIS NOTE SHALL HAVE THE OPTION BY WHICH STATE LAWS THIS NOTE
SHALL BE GOVERNED AND CONSTRUED: (A) THE LAWS OF THE COMMONWEALTH OF
VIRGINIA; OR (B) IF COLLATERAL HAS BEEN PLEDGED TO SECURE THE DEBT
EVIDENCED BY THIS NOTE, THEN BY THE LAWS OF THE STATE OR STATES WHERE THE
COLLATERAL IS LOCATED, AT PAYEE’S OPTION. 
THIS CHOICE OF STATE LAWS IS EXCLUSIVE TO THE PAYEE OF THIS NOTE.  MAKER SHALL NOT HAVE ANY OPTION TO CHOOSE THE
LAWS BY WHICH THIS NOTE SHALL BE GOVERNED. 
MAKER AND GUARANTORS HEREBY CONSENT TO THE EXERCISE OF 

 

 

JURISDICTION
OVER IT BY ANY FEDERAL COURT SITTING IN VIRGINIA OR ANY VIRGINIA COURT SELECTED
BY PAYEE, FOR THE PURPOSES OF ANY AND ALL LEGAL PROCEEDINGS ARISING OUT OF OR
RELATING TO THE NOTE, THE LOAN AGREEMENT AND ALL OTHER DOCUMENTS.  MAKER AND GUARANTORS IRREVOCABLY WAIVE, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH PROCEEDING BROUGHT IN ANY
SUCH COURT, ANY CLAIM BASED ON THE CONSOLIDATION OF PROCEEDINGS IN SUCH COURTS
IN WHICH PROPER VENUE MAY LIE IN DIVERGENT JURISDICTIONS, AND ANY CLAIM
THAT ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.  MAKER AND GUARANTORS
HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS NOTE, THE OTHER DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY.

 

 

	
   

  	
  Acusphere, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
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  (Witness)

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
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  Federal Tax
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  Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]