Document:

Exhibit
10.4

    Execution
Copy

    

    THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR APPLICABLE STATE SECURITIES LAWS.  IT MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR
EVIDENCE REASONABLY SATISFACTORY TO THE BORROWER THAT SUCH REGISTRATION IS NOT
REQUIRED.  THE SECURITIES ISSUED UPON SUCH CONVERSION MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR
EVIDENCE REASONABLY SATISFACTORY TO THE BORROWER THAT SUCH REGISTRATION IS NOT
REQUIRED.

    

    SENIOR SECURED PROMISSORY
NOTE

    

    
      
        	 
      	
                Montvale,
      New Jersey

              
	
                $____________

              	
                February
      __, 2009

              

      

    

    

    FOR VALUE
RECEIVED, Synvista Therapeutics, Inc., a Delaware corporation (the “Borrower”), located at 221
West Grand Avenue, Montvale, NJ 07645, hereby promises to pay to
_______________________ (the “Lender”), located at
____________________________________________, or at such other place as the
Lender may from time to time reasonably designate, the principal sum of
______________________ ($___________) (the “Principal Amount”) in lawful
money of the United States, in immediately available funds, ON DEMAND, on or
after ____, 2012 (the “Maturity
Date”).

     

    1.           Interest
shall accrue at a rate per annum equal to one and one-quarter percent (1.25%)
from the date hereof until maturity (whether by demand on or after the Maturity
Date or by acceleration).  Such interest shall be payable in cash at
maturity.  In no event shall the rate of interest hereunder exceed the
maximum interest rate permitted by applicable law.

     

    2.           This
Note is one of several notes (the “Notes”) in the aggregate
principal amount of up to $______ and of like tenor issued by the Borrower to
the Lender and others (together, the “Lenders”) pursuant to the
terms of that certain Note Purchase Agreement, dated February __, 2009, as
amended (the “Purchase
Agreement”).  By acceptance of this Note, the Lender hereby
agrees that each of the Notes issued pursuant to the Purchase Agreement shall
rank equally and ratably without priority over one another, and the Borrower
agrees that, except as expressly provided by the terms of the Notes, none of the
Notes shall be paid, in whole or in part, unless an equivalent, pro rata payment
is made with respect to all other Notes.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           As
security for the payment, performance and observance of the obligations set
forth in this Note, the Borrower has granted a security interest in its assets
to the collateral agent named in, and pursuant to, that certain Security
Agreement, dated _______, 2009 (the “Security Agreement”) and that
certain Intellectual Property Security Agreement, dated _______, 2009 (the
“IP Security Agreement” and
together with the Security Agreement, the “Security
Agreements”).  Borrower hereby acknowledges and agrees that the
performance and observance of the obligations set forth in this Note by the
Borrower shall be deemed to be “Obligations” for purposes of the Security
Agreements.

     

    4.           The
Borrower may prepay the principal balance of this Note plus accrued but unpaid
interest, without penalty, at any time prior to the Maturity Date, provided that
(a) at the date of prepayment there is no Event of Default (as defined below)
existing under this Note, and (b) following the prepayment, the Company will
have a minimum cash balance of the greater of (i) one year of anticipated cash
expenditures for the Company, as determined by the Company’s Board of Directors,
or (ii) $7,500,000.

     

    5.           If
(a) the Borrower fails to make any payment under this Note; (b) the Borrower
breaches any representation, warranty, covenant or agreement in the Purchase
Agreement or any other Transaction Document (as defined in the Purchase
Agreement), (c) the Borrower fails to pay when due any Indebtedness (as defined
in the Purchase Agreement) of the Borrower in an aggregate amount of One Hundred
Thousand Dollars ($100,000) or greater at any one time; (d) a final judgment or
judgments for the payment of money aggregating in excess of One Hundred Thousand
Dollars ($100,000) are rendered against the Borrower and which judgments are
not, within sixty (60) days after the entry thereof, bonded, discharged or
stayed pending appeal, or are not discharged within sixty (60) days after the
expiration of such stay; (e) the Borrower shall be dissolved, become insolvent
(however defined or evidenced), make an assignment for the benefit of creditors
or make or send a notice of intended bulk transfer; (f) any petition or
proceeding for any relief under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, receivership, liquidation or dissolution law
or statute now or hereinafter in effect (whether at law or in equity) is filed
or commenced by the Borrower; or (g) any trustee or receiver is appointed for
the Borrower or any property of the Borrower, a meeting of creditors is convened
or a committee of creditors is appointed for, or any petition or proceeding for
any relief under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, receivership, liquidation or dissolution law or statute
now or hereinafter in effect (whether at law or in equity) is filed or commenced
against the Borrower, which proceeding is not dismissed within thirty (30) days
(each of the foregoing, an “Event of Default”), then and
in any such event and at any time thereafter, the Lender may, at its option,
declare all amounts owing under Section 11 of this Note to be due and payable,
whereupon the maturity of the unpaid balance hereof shall be accelerated and the
principal, together with all unpaid interest accrued thereon, shall forthwith
become due and payable; provided, that, if
any petition or proceeding for any relief under any bankruptcy, reorganization,
arrangement, insolvency, readjustment or debt, receivership, liquidation or
dissolution law or statute now or hereinafter in effect (whether at law or in
equity) is filed or commenced by the Borrower, all amounts owing under this Note
shall be, without notice, declaration or any action by the Lender, accelerated,
and immediately due and payable.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    6.           The
Borrower hereby waives diligence, demand, presentment, protest and notice of any
kind, and assents to extensions of time of payment, release, surrender or
substitution or security, or forbearance or other indulgence, without
notice.

     

    7.           No
act, omission or delay by the Lender or course of dealing between the Lender and
the Borrower shall constitute a waiver of the rights and remedies of the Lender
hereunder.   No single or partial waiver by the Lender of any
Event of Default or right or remedy which it may have shall operate as a waiver
of any other Event of Default, right or remedy or of the same Event of Default,
right or remedy on a future occasion.

     

    8.         Unless
otherwise provided herein or in the Purchase Agreement, any notice or other
communication herein required or permitted to be given shall be in writing and
may be personally served, telecopied, telexed or sent by United States mail, to
Borrower or Lender, as the case may be, addressed to it at the respective
address set forth on the first page of this Note and in the Purchase Agreement,
or at such other address as shall be designated by Borrower or Lender, as the
case may be, in a written notice to the other party complying as to delivery
with the terms of this Section 8.  All such notices and other
communications shall be deemed to have been given when (i) delivered by hand,
(ii) sent by overnight courier, with receipt acknowledgment, or
(iii) sent by certified mail, return receipt requested, postage
prepaid.

     

    9.           This
Note shall be governed by and construed in accordance with the internal law of
the State of New York (without giving effect to the conflict of laws principles
thereof).  Any legal action or proceeding with respect to this Note
shall be brought in the courts of the State of New York or of the United States
of America for the Southern District of New York, and, by execution and delivery
of this Note, the Borrower hereby accepts for itself and in respect of its
property, generally and unconditionally, the jurisdiction of the aforesaid
courts.

     

    10.           No
provision hereof shall be modified, altered or limited except by a written
instrument expressly executed by the Borrower and Lenders holding a majority in
principal amount of the then outstanding Notes.

     

    11.           In
the event that any court of competent jurisdiction shall determine that any
provision, or any portion thereof, contained in this Note shall be unreasonable
or unenforceable in any respect, then such provision shall be deemed limited to
the extent that such court deems it reasonable and enforceable, and as so
limited shall remain in full force and effect.  In the event that such
court shall deem any such provision, or portion thereof, wholly unenforceable,
the remaining provisions of this Note shall nevertheless remain in full force
and effect.

     

    12.           This
Note and all obligations evidenced hereby shall be binding upon the heirs,
executors, administrators, successors and assigns of the Borrower and shall,
together with the rights and remedies of the Lender hereunder, inure to the
benefit of the Lender, its successors, endorsees and permitted
assigns.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Borrower has
caused this Note to be executed by its duly elected officer as of the date first
set forth above.

     

    
      
        
          
            
              
                
                  
                    	 
      	
                            SYNVISTA
      THERAPEUTICS, INC.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      	 
      
	 
      	
                            Name:

                          	
                            Noah
      Berkowitz, M.D., Ph.D.

                          
	 
      	
                            Title:

                          	
                            President
      and Chief Executive
Officer

                          

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        4EXHIBIT 10.27

December 10, 2008
  
 

Mr. Douglas B. Hansen
 13 Peninsula Road
 Belvedere, CA 94920
   
Re: Transition Agreement
  
 

Dear Doug: 

This letter agreement (the “Agreement”) confirms the agreement between you and Redwood Trust, Inc. (the “Company”) with respect to your transition from serving as an officer of the Company to serving solely as a non-employee member of the Board of Directors of the Company (the “Board”). This Agreement also serves to amend the terms and conditions of certain outstanding stock options and deferred stock awards granted to you pursuant to the 2002 Redwood Trust, Inc. Incentive Stock Plan to reflect your transition to non-employee director. 

You acknowledge and agree that you will resign from your position as President of the Company effective as of 11:59 pm Pacific Standard Time on December 31, 2008, and that you will retire from employment with the Company effective as of 11:59 pm Pacific Standard Time on January 1, 2009. Such retirement on January 1, 2009 shall constitute a termination of your employment pursuant to Section 6(e) of that certain Employment Agreement dated April 7, 2003, by and between you and the Company, as amended. 

Through the date of your retirement on January 1, 2009, the Company will continue to provide you with your base salary and standard employee benefits. You will be eligible for a 2008 annual bonus at a percentage equal to the percentage received by George Bull. You will not, however, be eligible to receive an executive equity incentive grant at the end of 2008. 

Although you will not be eligible to receive an executive equity incentive grant at the end of 2008, you will be eligible to receive an annual director equity grant in May 2009 equal to that awarded other non-employee members of the Board. You will also be entitled to continued indemnification protection by the Company with respect to your service as a director and as an officer of the Company. 

Exhibit A attached hereto sets forth each outstanding Stock Option Grant (the “Options”) and each Deferred Stock Award Agreement (“Deferred Stock Awards,” and together with the Options, the “Awards”) which the Company has granted to you. 

Deferred Stock Awards. 

This Agreement serves to amend the vesting provisions of your Deferred Stock Awards to reflect your transition to a role as a non-employee member of the Board. Accordingly, each Deferred Stock Award is hereby amended to provide that it shall become fully vested effective on January 1, 2009. In particular, Section 3 of each Deferred Stock Agreement is hereby amended to provide that all unvested Award Shares (as such term is defined in the Deferred Stock Agreements) are fully vested as of January 1, 2009. For the avoidance of doubt, for purposes of the Deferred Stock Agreements and the Company’s Executive Deferred Compensation Plan, your
termination of employment with the Company shall constitute a “retirement.” The Award Shares shall continue to be delivered at the time or times provided in their respective Deferred Stock Election Forms and in accordance with the terms of the Company’s Executive Deferred Compensation Plan. 

Mr. Douglas B. Hansen
 December 10, 2008
 Page Two
  
 

Options. 

This Agreement also serves to amend the provisions of your outstanding Options to reflect your transition to a role as a non-employee member of the Board. Accordingly, each Option is hereby amended to provide that the Option shall remain exercisable through, and for a period of time following, the termination of your relationship with the Company as a director, to the extent each is then vested; provided, however, that in no event shall an Option be exercisable beyond its original expiration date. In particular, Sections 7 and 8 of each Option agreement are hereby amended, as applicable, such that any reference to “Optionee’s
relationship as an employee” shall mean “Optionee’s relationship as a director” and any reference to “employment” shall mean “service as a director.” Similarly, Section 9 of each Option agreement is hereby amended, as applicable, to replace any reference to “relationship as an employee” with the phrase “relationship as a director” and any reference to “employment” shall mean “service as a director.” Notwithstanding the foregoing, however, the Options numbered 1930, 2343, 1842 and 2012 on Exhibit A are hereby amended to provide that they shall remain exercisable through the later of (i) January 1, 2012 and (ii) (a) twelve months following the termination of your relationship as a director with the Company by reason of death or disability (as determined pursuant to Sections 7 and 8 of the applicable Options, as amended above) or (b) three months following the termination of your relationship as a director
with the Company for any reason other than death or disability; provided, however, that in no event shall an Option be exercisable beyond its original expiration date. For the avoidance of doubt, with respect to the Options numbered 1487, 1842, and 2012 on Exhibit A, you will continue to be entitled to receive Dividend Equivalent Rights pursuant to those outstanding Options until the earlier of the date the related Option has been exercised or is terminated. 

Except as amended hereby, your Options and Deferred Stock Awards shall remain subject to the terms and conditions regarding vesting, exercisability and termination as currently set forth in the applicable Award agreements. This letter agreement sets forth our entire understanding and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of the Company in respect of the subject matter contained herein. 

Please indicate your acceptance of the terms and provisions of this Agreement by signing both copies of this letter agreement and returning one copy to me. Please keep a copy for your files. By signing below, you acknowledge and agree that you have carefully read this Agreement in its entirety; fully understand and agree to its terms and provisions; and intend and agree that it be final and legally binding on you and the Company. This letter agreement shall be governed by and construed under the internal laws, but not any law of conflicts that would require the application of the laws of any other jurisdiction, of the State of Maryland and may be
executed in several counterparts. 

		 	
	                  	 	Very truly yours,
	                  	 	/s/ George E. Bull, III

George E. Bull, III
 Chairman and Chief Executive Officer
	                  	 	                  
	Agreed and Accepted:	 	                  
	/s/ Douglas B. Hansen
Douglas B. Hansen

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