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Exhibit 10.17    
  

SERENA SOFTWARE, INC.

1999 DIRECTOR OPTION PLAN

As Amended and Restated*  

	*
	As
Amended and Restated and Adopted by the Board of Directors on December 7, 2001 and ratified by the Shareholders on June 28, 2002. Share numbers referenced in this amendment
and restatement reflect the single 3-for-2 forward stock split implemented by the Company (on March 30, 2000) since the adoption of the Plan. 

        1.    Purposes of the Plan.    The purposes of this 1999 Director Option Plan as amended and restated are to attract
and retain the best available personnel for service as Outside Directors (as defined herein) of the Company, to provide additional incentive to the Outside Directors of the Company to serve as
Directors, and to encourage their continued service on the Board. 

        All
options granted hereunder shall be nonstatutory stock options. 

        2.    Definitions.    As used herein, the following definitions shall apply: 

        (a)  "Board" means the Board of Directors of the Company. 

        (b)  "Code" means the Internal Revenue Code of 1986, as amended. 

        (c)  "Common Stock" means the common stock of the Company. 

        (d)  "Company" means SERENA Software, Inc. 

        (e)  "Director" means a member of the Board. 

        (f)    "Disability" means total and permanent disability as defined in section 22(e)(3) of the Code. 

        (g)  "Employee" means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the
Company. The payment of a Director's fee by the Company shall not be sufficient in and of itself to constitute "employment" by the Company. 

        (h)  "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (i)    "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

        (i)    If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; 

        (ii)  If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be
the mean between the high bid and low asked prices for the Common Stock for the last market trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable; or 

        (iii)  In
the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 

        (j)    "Inside Director" means a Director who is an Employee. 

        (k)  "Option" means a stock option granted pursuant to the Plan. 

 

        (l)    "Optioned Stock" means the Common Stock subject to an Option. 

        (m)  "Optionee" means a Director who holds an Option. 

        (n)  "Outside Director" means a Director who is not an Employee. 

        (o)  "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the
Code. 

        (p)  "Plan" means this 1999 Director Option Plan as amended and restated. 

        (q)  "Share" means a share of the Common Stock, as adjusted in accordance with Section 10 of the Plan. 

        (r)  "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of
the Internal Revenue Code of 1986. 

        3.    Stock Subject to the Plan.    Subject to the provisions of Section 10 of the Plan, the maximum aggregate
number of Shares which may be optioned and sold under the Plan is 225,000 Shares (the "Pool") (the Shares may be authorized, but unissued, or reacquired Common Stock), plus an annual increase to be
added on the first day of each fiscal year, beginning with the fiscal year ending January 31, 2001, equal to the lesser of (i) 1/2% of the Shares of Common Stock outstanding on the last
day of each preceding fiscal year or (ii) such amount as determined by the Board of Directors. 

        If
an Option expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant or sale
under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan shall not be returned to the Plan and shall not become available for future distribution under the
Plan. 

        4.    Administration and Grants of Options under the Plan.    

        (a)    Procedure for Grants.    All grants of Options to Outside Directors under this Plan shall be automatic and
nondiscretionary and shall be made strictly in accordance with the following provisions: 

        (i)    No
person shall have any discretion to select which Outside Directors shall be granted Options or to determine the number of Shares to be covered by Options. 

        (ii)  Each
Outside Director shall be automatically granted an Option to purchase 37,500 Shares (the "First Option") on the date on which such person first becomes an Outside
Director, whether through election by the shareholders of the Company or appointment by the Board to fill a vacancy; provided, however, that an Inside Director who ceases to be an Inside Director but
who remains a Director shall not receive a First Option. 

        (iii)  Each
Outside Director shall be automatically granted an Option to purchase 15,000 Shares (a "Subsequent Option") on the first day of each fiscal year (beginning
February 1, 2002) provided he or she is then an Outside Director and if as of such date, he or she shall have served on the Board for at least the preceding six (6) months. 

        (iv)  Notwithstanding
the provisions of subsections (ii) and (iii) hereof, any exercise of an Option granted before the Company has obtained shareholder
approval of the Plan in accordance with Section 16 hereof shall be conditioned upon obtaining such shareholder approval of the Plan in accordance with Section 16 hereof. 

        (v)  The
terms of a First Option granted hereunder shall be as follows: 

        (A)  the
term of the First Option shall be ten (10) years. 

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        (B)  the
First Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof. 

        (C)  the
exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the First Option. 

        (D)  subject
to Section 10 hereof, the First Option shall become exercisable cumulatively with respect to 1/4th of the Shares subject to the First Option on the
anniversary of the date of grant, and as to 1/48th of the First Option at the end of each month thereafter, provided that the Optionee continues to serve as a Director on such dates. 

        (vi)  The
terms of a Subsequent Option granted hereunder shall be as follows: 

        (A)  the
term of the Subsequent Option shall be ten (10) years. 

        (B)  the
Subsequent Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof. 

        (C)  the
exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the Subsequent Option. 

        (D)  subject
to Section 10 hereof, the Subsequent Option shall become exercisable with respect to 100% of the Shares subject to the Subsequent Option on the
anniversary of the date of grant, provided that the Optionee continues to serve as a Director on such date. 

        (vii) In
the event that any Option granted under the Plan would cause the number of Shares subject to outstanding Options plus the number of Shares previously purchased
under Options to exceed the Pool, then the remaining Shares available for Option grant shall be granted under Options to the Outside Directors on a pro rata basis. No further grants shall be made
until such time, if any, as additional Shares become available for grant under the Plan through action of the Board or the shareholders to increase the number of Shares which may be issued under the
Plan or through cancellation or expiration of Options previously granted hereunder. 

        5.    Eligibility.    Options may be granted only to Outside Directors. All Options shall be automatically granted in
accordance with the terms set forth in Section 4 hereof. 

        The
Plan shall not confer upon any Optionee any right with respect to continuation of service as a Director or nomination to serve as a Director, nor shall it interfere in any way with
any rights which the Director or the Company may have to terminate the Director's relationship with the Company at any time. 

        6.    Term of Plan.    The Plan shall become effective upon the earlier to occur of its adoption by the Board or its
approval by the shareholders of the Company as described in Section 16 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated under
Section 11 of the Plan. 

        7.    Form of Consideration.    The consideration to be paid for the Shares to be issued upon exercise of an Option,
including the method of payment, shall consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of Shares acquired upon exercise of an option, have been
owned by the Optionee for more than six (6) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares
as to which said Option shall be exercised, (iv) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or
(v) any combination of the foregoing methods of payment. 

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        8.    Exercise of Option.    

        (a)    Procedure for Exercise; Rights as a Shareholder.    Any Option granted hereunder shall be exercisable at such
times as are set forth in Section 4 hereof; provided, however, that no Options shall be exercisable until shareholder approval of the Plan in accordance with Section 16 hereof has been
obtained. 

        An
Option may not be exercised for a fraction of a Share. 

        An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise
the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may consist of any consideration and method of payment allowable
under Section 7 of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the
Option. A share certificate for the
number of Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment shall be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan. 

        Exercise
of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by
the number of Shares as to which the Option is exercised. 

        (b)    Termination of Continuous Status as a Director.    Subject to Section 10 hereof, in the event an
Optionee's status as a Director terminates (other than upon the Optionee's death or Disability), the Optionee may exercise his or her Option, but only within three (3) months following the date
of such termination, and only to the extent that the Optionee was entitled to exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year term).
To the extent that the Optionee was not entitled to exercise an Option on the date of such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so
entitled) within the time specified herein, the Option shall terminate. 

        (c)    Disability of Optionee.    In the event Optionee's status as a Director terminates as a result of Disability,
the Optionee may exercise his or her Option, but only within twelve (12) months following the date of such termination, and only to the extent that the Optionee was entitled to exercise it on
the date of such termination (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the date of
termination, or if he or she does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 

        (d)    Death of Optionee.    In the event of an Optionee's death, the Optionee's estate or a person who acquired the
right to exercise the Option by bequest or inheritance may exercise the Option, but only within twelve (12) months following the date of death, and only to the extent that the Optionee was
entitled to exercise it on the date of death (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the
date of death, and to the extent that the Optionee's estate or a person who acquired the right to exercise such Option does not exercise such Option (to the extent otherwise so entitled) within the
time specified herein, the Option shall terminate. 

        9.    Non-Transferability of Options.    The Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 

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        10.    Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale.    

        (a)    Changes in Capitalization.    Subject to any required action by the shareholders of the Company, the number of
Shares covered by each outstanding Option, the number of Shares which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to
the Plan upon cancellation or expiration of an Option, as well as the price per Share covered by each such outstanding Option, and the number of Shares issuable pursuant to the automatic grant
provisions of Section 4 hereof shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of
Shares subject to an Option. 

        (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, to the
extent that an Option has not been previously exercised, it shall terminate immediately prior to the consummation of such proposed action. 

        (c)    Merger or Asset Sale.    In the event of a merger of the Company with or into another corporation or the sale
of substantially all of the assets of the Company, the Option or option shall become fully exercisable, including as to Shares for which it would not otherwise be exercisable. Thereafter, the Option
or option shall remain exercisable in accordance with Sections 8(b) through (d); provided, however, that if the Successor Corporation does not assume
such outstanding Option or substitute for it an equivalent option, and the Option would otherwise terminate pursuant to Sections 8(b) through 8(d) after the consummation of the merger or asset sale
transaction, then the Board shall notify the Optionee that the Option shall be fully exercisable for a period of thirty (30) days from the date of such notice, and upon the expiration of such
period the Option shall terminate. 

        For
the purposes of this Section 10(c), an Option shall be considered assumed if, following the merger or sale of assets, the Option confers the right to purchase or receive, for
each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or
sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares). If such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the
Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock subject to the Option,
to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 

        11.    Amendment and Termination of the Plan.    

        (a)    Amendment and Termination.    The Board may at any time amend, alter, suspend, or discontinue the Plan, but no
amendment, alteration, suspension, or discontinuation shall be made which would impair the rights of any Optionee under any grant theretofore made, without his or her consent. In addition, to the
extent necessary and desirable to comply with any applicable law, regulation or stock exchange rule, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a
degree as required. 

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        (b)    Effect of Amendment or Termination.    Any such amendment or termination of the Plan shall not affect Options
already granted and such Options shall remain in full force and effect as if this Plan had not been amended or terminated. 

        12.    Time of Granting Options.    The date of grant of an Option shall, for all purposes, be the date determined in
accordance with Section 4 hereof. 

        13.    Conditions Upon Issuance of Shares.    Shares shall not be issued pursuant to the exercise of an Option unless
the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933,
as amended, the Exchange Act, the rules and regulations promulgated thereunder, state securities laws, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such compliance. 

        As
a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or distribute such Shares, if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned relevant provisions of law. 

        Inability
of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

        14.    Reservation of Shares.    The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

        15.    Option Agreement.    Options shall be evidenced by written option agreements in such form as the Board shall
approve. 

        16.    Shareholder Approval.    The Plan shall be subject to approval by the shareholders of the Company within twelve
(12) months after the date the Plan is adopted. Such shareholder approval shall be obtained in the degree and manner required under applicable state and federal law and any stock exchange
rules. 

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EXHIBIT 10.60  

 
 

THIRD AMENDED AND RESTATED CONSOLIDATED
  MULTIPLE ADVANCE NON-REVOLVING NOTE    
  

        FOR VALUE RECEIVED, Bionutrics, Inc., a Nevada corporation ("Borrower"), hereby promises to pay to the order of William McCormick,
as agent ("Agent"), for the ratable, or as otherwise agreed upon herein, benefit of HealthSTAR Holdings, LLC ("Holdings"), Ropart Investments, LLC, Xiagen Ltd., Ronald H.
Lane, William McCormick, Fred Rentschler, William J. Ritger, Healthstar Communications, Inc. ("HCI"), and any other party who signs this Note as a lender (Holdings, HCI and the other
lenders are collectively referred to herein as the "Lenders" and the Lenders excluding HCI are referred to herein as the "Other Lenders"), at the office of Agent located at c/o Inverness, 660
Steamboat Road, Greenwich, Connecticut 06830 or at such other place as Agent may designate, on June 1, 2002, or earlier as required herein (the "Maturity Date"), the sum of One Million Five
Hundred Sixty Thousand Dollars ($1,560,000) or such lesser sum as from time to time shall be outstanding hereunder, as reflected in the books and records of Agent, such sum to include the Accreted
Interest (defined below), and, to the extent applicable, shall pay the Default Interest Rate specified below, in accordance with the following terms and conditions: 

        1.    Background.    

        (a)  Pursuant
to Amendment No. 2 of even date herewith to Amendment No. 1 to the Amended and Restated Loan and Stock Pledge Agreement dated April 9, 2002
executed by Borrower, Lenders and Agent (as amended, the "Loan Agreement"), Lenders have agreed at their discretion to make a multiple advance loan to Borrower in an amount not to exceed One Million
Three Hundred Thousand Dollars ($1,300,000) (the "Loan") of which One Million Fifty Four Thousand Five Hundred Dollars ($1,054,500) has been advanced as of the date hereof, with Holdings' commitment
limited to Four Hundred Twenty-one Thousand Five Hundred Dollars ($421,500) of the Loan amount, all of which has been advanced as of the date hereof, and with HCI's commitment limited to
Two Hundred Fifty Thousand Dollars ($250,000) (herein referred to as the "Senior Loan") of which Fifty Thousand Dollars ($50,000) previously has been advanced and Two Hundred Thousand Dollars
($200,000) will be
advanced immediately following the execution hereof by all parties. All of the Loans advanced or to be advanced by the Other Lenders are collectively referred to herein as the "Subordinated Loans." 

        (b)  This
Third Amended and Restated Consolidated Multiple Advance Non-Revolving Note (this "Note") replaces the Second Amended and Restated Consolidated Multiple
Advance Non-Revolving Note dated April 9, 2002 (the "April 2002 Note"), as well as the Amended and Restated Consolidated Multiple Advance Non-Revolving Note dated
October 26 2001 (the "October 2001 Note"), which consolidated the unpaid principal balance of (i) that certain promissory note dated September 7, 2001 in the original
principal amount of Four Hundred thousand Dollars ($400,000) with unpaid principal balance of One Hundred Fifty Thousand Dollars ($150,000) executed by Borrower in favor of Pharmaceutical Marketing
Brands, Inc. and assigned to Holdings and (ii) that certain multiple advance non-revolving note dated June 20, 2001 executed by Borrower in favor of Ropart
Investments, LLC, Xiagen Ltd., Ronald H. Lane, William McCormick, Fred Rentschler, and William J. Ritger with unpaid principal balance of Four Hundred Thirty-Three Thousand
Dollars ($433,000) (collectively, the "Original Notes"). 

        (c)  The
April 2002 Note replaced the October 2001 Note. The October 2001 Note replaced the Original Notes. This Note shall fully supercede the
provisions of the Original Notes, the October 2001 Note and the April 2002 Note but does not constitute an accord and satisfaction, a novation or other extinguishments of the obligations
of Borrower under the Original Notes, the October 2001 Note and the April 2002 Note. 

        (d)  This
Note is executed pursuant to the Loan Agreement. 

 

        (e)  Borrower's
obligations under the Loan are secured by the collateral described in the Loan Agreement and by that certain Amended and Restated Security Agreement of even
date herewith by and between Borrower, Agent, and Lenders. The Loan Agreement and the Amended and Restated Security Agreement are collectively referred to herein as the "Loan Documents." 

        (f)    The
Loan Agreement contains additional terms relating to the Loan. 

        2.    Contracted For Rate of Interest.    The contracted for rate of interest of the
indebtedness evidenced hereby, without limitation, shall consist of the following: 

        (a)  The
Accreted Interest, which shall be equal to the original issue discount between the date of issuance and the date of payment based on the advances made under this
Note from time to time outstanding such that the Accreted Interest shall be equal to $260,000 if the full $1,300,000 is advanced pursuant to the Loan; 

        (b)  The
Default Interest Rate (as hereinafter defined), as from time to time in effect, calculated daily on the basis of actual days elapsed over a 365-day year,
applied to the principal balance from time to time outstanding hereunder; and 

        (c)  All
Additional Sums (as hereinafter defined), if any. 

Borrower
agrees to pay an effective contracted for rate of interest which is the sum of the Accreted Interest referred to in subsection 2(a)  above, plus any additional rate of interest resulting from the
application of the Default Interest Rate referred to in subsection 2(b)  above, and the Additional Sums, if any, referred to in subsection 2(c) above. 

        3.    Default Interest Rate.    The Default Interest Rate shall be a per annum rate equal to
25% of the unpaid principal balance. The principal balance outstanding hereunder from time to time shall bear interest at the Default Interest Rate from the date of the occurrence of an Event of
Default (as hereinafter defined) until the earlier of: (a) the date on which the principal balance outstanding hereunder, together with all Accreted Interest and other amounts payable
hereunder, are paid in full; or (b) the date on which such Event of Default is timely cured in a manner satisfactory to Agent. The Default Interest Rate shall be payable on the fifth (5th) day
of each month. 

        4.    Principal Balance.    The principal balance outstanding hereunder at any time shall be
the total amount of advances made hereunder by Lenders less the total amount of payments of principal hereon as reflected in the books and records of Agent with respect to the indebtedness evidenced
hereby. 

        5.    Aggregate of Advances.    Borrower and Lenders contemplate a series of discretionary
advances from time to time hereunder, even if the principal balance outstanding hereunder has previously been reduced to zero; provided, however, such advances in the aggregate shall not exceed the
principal amount first set forth above. Lenders shall at their discretion make any advance requested by Borrower in accordance with this Note as long as no Event of Default exists on the date of such
request. Such advances shall be on a nonrevolving basis and any reduction in the principal balance outstanding hereunder shall not entitle Borrower to any additional advance to the extent such
additional advance in the aggregate with all prior advances hereunder would exceed the principal amount first set forth above. 

        6.    Requests for Advances and Disbursement of Advances.    When Borrower desires an advance
under the Loan, Borrower shall make a written request to Agent for such an advance. Such request shall specify the amount of the advance and the date of disbursement. Agent shall immediately
communicate Borrower's request to each of the Lenders and Lenders shall at their discretion make available to the Agent the appropriate amount of funds to satisfy the disbursement request of Borrower.
Agent shall remit the appropriate amounts to Borrower on the date requested by Borrower. Lenders shall agree among themselves as to the amount to be advanced by each. 

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        7.    Payment.    This Note shall be payable in full on the earlier of
(i) January 10, 2003; (ii) the funding of any loan or loans in cumulative amounts in excess of one million dollars; or (iii) the issuance by the Borrower of any
common stock or preferred stock in cumulative amounts in excess of one million dollars (iv) the consummation of any corporate transaction including, but not limited to, the sale of any
assets, or the sale of the assets or stock of its subsidiary, InCon Technologies, Inc. for an amount equal to at least two million dollars. Payments received by Agent with respect to the
indebtedness evidenced hereby shall be applied in such order and manner as Agent in his sole and absolute discretion may elect. Payments hereunder shall be made at the address for Agent first set
forth above, or at such other address as Agent may specify to Borrower in writing. 

        8.    Prepayments.    Payments may be made at any time, or from time to time, in whole or in
part, without penalty, together with all previously matured Accreted Interest and other charges accrued to the date of prepayment. Notwithstanding any prepayment hereof: (a) there will be no
change in the due date or amount of scheduled payments due hereunder unless Lenders unanimously agree in writing to such change; and (b) Borrower's obligations hereunder shall continue in
effect and this Note shall remain outstanding, unless and until (i) the principal balance outstanding hereunder, together with all Accreted Interest and other amounts payable hereunder or in
any of the Loan Documents, are paid in full, and (ii) thereafter, upon Borrower's request, Agent delivers to Borrower the original executed copy of this Note marked "cancelled." 

        9.    Events of Default; Acceleration.    The occurrence of any one or more of the following
events shall constitute an "Event of Default" hereunder, and upon such Event of Default, the entire principal balance outstanding hereunder, together with all Accreted Interest and other amounts
payable hereunder, at the election of Agent, shall become immediately due and payable, without any notice to Borrower: 

        (a)  Nonpayment
of principal, interest or any other amounts when the same shall become due and payable hereunder; 

        (b)  The
failure of Borrower to comply with any provision of this Note, the Loan Agreement or any of the other documents executed in connection with the transaction
contemplated by the Loan Documents; or 

        (c)  The
appointment of (or application for appointment of) a receiver of Borrower or any other person or entity who is or may become liable hereunder, or the involuntary
filing against or voluntary filing by Borrower, or any other person or entity who is or may become liable hereunder, of a petition or application for relief under federal bankruptcy law or any similar
state or federal law, or the issuance of any writ of garnishment, execution or attachment for service with respect to Borrower or any person or entity who is or may become liable hereunder, or any
property of Borrower or property of any person or entity who is or may become liable hereunder. 

        10.    Additional Sums.    All fees, charges, goods, things in action or any other sums or
things of value, other than the interest resulting from the Accreted Interest and the Default Interest Rate, as applicable, paid or payable by Borrower (collectively, the "Additional Sums"), whether
pursuant to this Note, the Loan Documents or any other document or instrument in any way pertaining to this lending transaction, or otherwise with respect to this lending transaction, that, under the
laws of the State of Arizona, may be deemed to be interest with respect to this lending transaction, for the purpose of any laws of the State of Arizona that may limit the maximum amount of interest
to be charged with respect to this lending transaction, shall be payable by Borrower as, and shall be deemed to be, additional interest, and for such purposes only, the agreed upon and "contracted for
rate of interest" of this lending transaction shall be deemed to be increased by the rate of interest resulting from the Additional Sums. Borrower understands and believes that this lending
transaction complies with the usury laws of the State of Arizona; however, if any interest or other charges in connection with this lending transaction are ever determined to exceed the maximum amount
permitted by law, then 

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Borrower agrees that: (a) the amount of interest or charges payable pursuant to this lending transaction shall be reduced to the maximum amount permitted by law; and (b) any excess
amount previously collected from Borrower in connection with this lending transaction that exceeded the maximum amount permitted by law, will be credited against the principal balance then outstanding
hereunder. If the outstanding principal balance hereunder has been paid in full, the excess amount paid will be refunded to Borrower. 

        11.    Conversion of Note.    

        (a)    Conversion Price.    At any time prior to the close of business on the business day
immediately prior to the Maturity Date, this Note is convertible in whole, but not in part, at the option of the Lenders, into shares of the Borrower's common stock, par value $.001 per share (the
"Common Stock") at the rate of One Dollar and Zero Cents ($1.00) per share (the "Conversion Price"), subject to adjustment as provided in Section 11(b) or 11(c) hereof. Notwithstanding the
foregoing, Borrower shall not be required to issue fractional shares of Common Stock or other capital stock upon conversion of this Note and, in lieu thereof, shall pay a cash adjustment based upon
the then fair market value of the Common Stock based on the average closing price on the OTC Bulletin Board for the five trading days preceding the last business day immediately prior to the date of
conversion. 

        (b)    Adjustment Based Upon Combination of Shares or Recapitalization.    The Conversion
Price shall be adjusted in the event that Borrower shall at any time (i) pay a dividend or make a distribution on Common Stock in shares of Common Stock, (ii) subdivide or reclassify its
outstanding Common Stock into a greater number of shares, or (iii) combine its outstanding shares of Common Stock into a smaller number of shares. Upon the occurrence of any of the foregoing
events, the Conversion Price shall be adjusted so that the Lenders, upon surrender of this Note for conversion, shall be entitled to receive the number of shares of Common Stock or other capital stock
of the Borrower that the Lenders would have owned or have been entitled to receive after the happening of any of the events described above had this Note been converted immediately prior to the
happening of such event. 

        (c)    Adjustment Based Upon Merger or Consolidation.    In case of any consolidation or
merger to which the Borrower is a party (other than a merger in which the Borrower is the entity surviving such merger and which does not result in any reclassification of or change in the outstanding
Common Stock of the Borrower), or in case of any sale or conveyance to another person, firm, or corporation of the property of Borrower as an entirety or substantially as an entirety, the Lenders
shall have the right to convert this Note into the kind and amount of securities and property (including cash) receivable upon such consolidation, merger, sale or conveyance by a holder of the number
of shares of Common Stock into which such Note might have been converted immediately prior thereto. 

        (d)    Exercise of Conversion Privilege.    The conversion privilege provided for herein shall
be exercisable by the Lenders by written notice to the Borrower or its successor and the surrender of this Note in exchange for the number of shares of Common Stock (or other securities and property,
including cash, in the event of an adjustment of the Conversion Price pursuant to Section 11(b) or 11(c) hereof) into which this Note is convertible based upon the Conversion Price, as
adjusted. All conversion rights will expire at the close of business on the business day immediately prior to the Maturity Date. 

        12.    Subordination.    Notwithstanding any other provision herein to the contrary, the
Borrower, Lenders and Agent agree as follows: 

        (a)  The
Subordinated Loans hereby are expressly subordinated in right of payment, delivery and issuance and in right of remedies and action to the prior performance and
satisfaction and 

4

 

irrevocable and indefeasible payment in full in cash of the Senior Loan and to HCI's right to take all actions and to pursue all remedies under this Note and the other Loan Documents, at law, in
equity and otherwise as provided herein. In furtherance of the foregoing, the Other Lenders hereby subordinates all of their claims, rights and interest in and to the Senior Loan and agree not to
accept any payment of any Subordinated Loan or any security therefor, in each case to the extent of the subordination and other provisions to the benefit of HCI in this Note and the other Loan
Documents. 

        (b)  The
Borrower covenants and agrees not to make, and each Other Lender covenants not to receive or collect, or permit to be received or collected, directly or indirectly
from the Borrower, any amount in connection with a Subordinated Loan until the prior performance and satisfaction and irrevocable and indefeasible payment in full in cash of the Senior Loan. 

        (c)  Each
Other Lender agrees that it shall not take any action, including, without limitation, any "Enforcement Action," with respect to any of the Subordinated Loans until
irrevocable and indefeasible payment in full in cash and full performance and satisfaction of the Senior Loan. For purposes hereof, an "Enforcement Action" shall mean any action, whether legal,
equitable, judicial, non-judicial or otherwise, to collect or receive any payment on any Subordinated Loan or to enforce or realize upon any lien, security interest, encumbrance, claim,
right or other interest or arrangement now or in the future existing, including, without limitation, any repossession, foreclosure, public sale, private sale, collection, receipt, obtaining of a
receiver or retention of all or any part of the Subordinated Loans. 

        (d)  If
the Borrower shall make any payment, delivery or issuance with respect to any Subordinated Loan to any Other Lender or any Other Lender shall receive or collect any
such payment, delivery or issuance or shall take any action or remedy, including, without limitation, any Enforcement Action, while any principal, interest or other amounts are due and owing with
regard to the Senior Loan, then (i) such payment, delivery or issuance shall be deemed to be the property of, segregated, received and held in trust for the benefit of HCI, and shall be
immediately paid over and delivered forthwith to HCI, and (ii) such action or remedy shall be null and void and of no force or effect. 

        (e)  The
subordinations and priorities specified in this Note and the other Loan Documents are applicable irrespective of (i) the time or order of attachment,
creation, making or perfection of any liens, security interests, encumbrances or charges, now or hereafter existing, of or for the benefit of any Other Lender or of HCI; (ii) the time or order
of filing of financing statements, (iii) the acquisition of purchase money or other security interests, (iv) the time of giving or failure to give notice of the acquisition or expected
acquisition of purchase money or other security interests; or (v) the time or order of creation, making, payment or incurring of the Senior Loan or execution of the Loan Documents. The
subordinations and priorities specified herein are not conditioned upon the nonavoidability or perfection of HCI's security interest in the Collateral or any part thereof under the bankruptcy code or
other insolvency laws or any other applicable law. No Other Lender shall be subrogated to the rights of HCI to receive payments and distributions of assets of the Borrower applicable to the Senior
Loan. 

        (f)    Each
Other Lender and the Borrower each hereby agrees to take or cause to be taken such further actions, to obtain such consents and approvals and to duly execute,
deliver and file or cause to be executed, delivered and filed such further agreements, assignments, instructions, documents and instruments as may be necessary or as may be reasonably requested by HCI
in order to fully effectuate the purposes, terms and conditions of this Note and the other Loan Documents and the consummation of the transactions contemplated hereby, whether before, at or after the
performance of the transactions contemplated hereby or the occurrence of an Event of Default. 

5

 

        13.    No Other Liens.    Borrower represents and warrants that it shall not grant, nor
attempt to grant, any lien, security interest, encumbrance, charge, claim, right or other interest or arrangement which is superior in priority or has greater rights or remedies than the Loan. Should
the Borrower borrow any loan or advance after the date hereof from any party (other than from one or more of the Lenders), Borrower shall provide the Lenders, in form satisfactory to the Agent and
HCI, with a written subordination agreement executed by any subsequent lender, which shall expressly subordinate any future loan or advance to the Loan. 

        14.    Waivers.    Except as set forth in this Note or the Loan Documents, to the extent
permitted by applicable law, Borrower, and each person who is or may become liable hereunder, severally waive and agree not to assert: (a) any homestead or exemption rights; (b) demand,
diligence, grace, presentment for payment, protest, notice of nonpayment, nonperformance, extension, dishonor, maturity, protest and default; and (c) recourse to guaranty or suretyship defenses
(including, without limitation, the right to require Lenders to bring an action on this Note). Lenders may, if they unanimously agree, extend the time for payment of or renew this Note, release
collateral as security for the indebtedness evidenced hereby, or release any party from liability hereunder, and any such extension, renewal, release or other indulgence shall not alter or diminish
the liability of Borrower or any other person or entity who is or may become liable on this Note except to the extent expressly set forth in a writing evidencing or constituting such extension,
renewal, release or other indulgence. 

        15.    Collection Costs and Expenses.    Borrower agrees to pay all costs of collection,
including, without limitation, attorneys' fees, whether or not suit is filed, and all costs of suit and preparation for suit (whether at trial or appellate level), in the event any payment of
principal, interest or other amount under the Loan is not paid when due, or in the event it becomes necessary to protect the Pledged Collateral (as defined in the Loan Agreement), or to exercise any
other right or remedy under this Note, the Loan Agreement or in the Loan Documents, or in the event Agent or Lenders are made parties to any litigation because of the existence of this Note, the Loan
Agreement or the other Loan Documents or if at any time Lenders should incur any attorneys' fees in any proceeding under any federal bankruptcy law (or any similar state or federal law) in connection
with this Note, the Loan Agreement or the other Loan Documents. In the event of any court proceeding, attorneys' fees shall be set by the court and not by the jury and shall be included in any
judgment obtained by Agent or Lenders, as applicable. 

        16.    No Waiver by Lenders.    No delay or failure of Lenders in exercising any right
hereunder shall affect such right, nor shall any single or partial exercise of any right preclude further exercise thereof. 

        17.    Governing Law.    This Note shall be governed by and construed and interpreted in
accordance with the laws of the State of Arizona, notwithstanding any Arizona or other conflict-of-laws provision to the contrary. 

        18.    Jurisdiction and Venue.    Borrower, Agent, and Lenders hereby expressly agree that in
the event any actions or other legal proceedings are initiated by or against Borrower, Agent or Lenders involving any alleged breach or failure by any party to pay, perform or observe any sums,
obligations or covenants to be paid, performed or observed by it under this Note, the Loan Agreement or the other Loan Documents, or involving any other claims or allegations arising out of the
transactions evidenced or contemplated by this Note, the Loan Agreement or the other Loan Documents, regardless of whether such actions or proceedings shall be for damages, specific performance or
declaratory relief or otherwise, such actions shall be brought in Maricopa County, Arizona, or Middlesex County, New Jersey and Borrower, Agent, and Lenders hereby submit to the jurisdiction of the
State of Arizona or New Jersey for such purposes and agree that the venue of such actions or proceedings shall properly lie in Maricopa County, Arizona or Middlesex County, New Jersey 

6

 

        19.    Amendments.    No amendment, modification, change, waiver, release or discharge hereof
and hereunder shall be effective unless evidenced by an instrument in writing and signed by the party against whom enforcement is sought. 

        20.    Provisions Severable.    The provisions of this Note are independent of and severable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole
or in part. Further, if a court of competent jurisdiction determines that any provision of this Note is invalid or unenforceable as written, the court may interpret, construe, rewrite or revise such
provision, to the fullest extent allowed by law, so as to make it valid and enforceable consistent with the intent of the parties. 

        21.    Binding Nature.    The provisions of this Note shall be binding upon Borrower and the
heirs, personal representatives, successors and assigns of Borrower, and shall inure to the benefit of Lenders and any subsequent holder of all or any portion of this Note, and their respective
successors and assigns. 

        22.    Notice.    Any notice or other communication with respect to this Note shall:
(a) be in writing; (b) be effective on the day of hand-delivery thereof to the party to whom directed, one day following the day of deposit thereof with delivery charges
prepaid with a national overnight delivery service, or two days following the day of deposit thereof with postage prepaid with the United States Postal Service, by regular first class, certified or
registered mail; (c) if directed to Agent, be addressed to Agent at the address of Agent first set forth above or to such other address as Agent shall have specified by like notice;
(d) if directed to Borrower, be addressed to Borrower at the address for Borrower set forth below Borrower's name, or to such other address as Borrower shall have specified by like notice; and
(e) if directed to one of Lenders, be addressed to Lender at the address for that Lender set forth below Lender's name, or to such other address as Lender shall have specified by like notice. 

        23.    Section Headings.    The section headings set forth in this Note are for convenience
only and shall not have substantive meaning hereunder or be deemed part of this Note. 

        24.    Construction.    This Note shall be construed as a whole in accordance with its fair
meaning and without regard to or taking into account any presumption or other rule of law requiring construction against the party preparing this Note. 

        IN WITNESS WHEREOF, Borrower has executed this Note as of the 10th day of July, 2002. 

	 	 	"Borrower"
	

 	
 	

BIONUTRICS, INC., a Nevada corporation
	

 	
 	

By:	

/s/  RONALD H. LANE      

	 	 	Name:	Ronald H. Lane
	 	 	Title:	President
	

 	
 	

Address of Borrower:

2425 East Camelback Road, Suite 650

Phoenix, AZ 85016

Attention: Ronald H. Lane

7

 

	

 	
 	
"Agent"
	

 	
 	

William McCormick
	

 	
 	

/s/  WILLIAM MCCORMICK      

	 	 	Address of Agent:

c/o Inverness

660 Steamboat Road

Greenwich, CT 06830

 
 

ACKNOWLEDGEMENT OF LENDERS    
  

        The Lenders hereby agree to be bound by the terms of this Note. 

	 	 	"Lenders"
	

 	
 	

HEALTHSTAR HOLDINGS LLC, as a Lender
	

 	
 	

By:	

/s/  JERRY BRAGER      

	 	 	Name:	Jerry Brager

	 	 	Title:	Managing Member

	

 	
 	

Address of HealthSTAR Holdings LLC:

100 Woodbridge Center Drive, Suite 202

Woodbridge, NJ 07095
	

 	
 	

William McCormick, as a Lender
	

 	
 	

/s/  WILLIAM MCCORMICK      

	

 	
 	

Address of William McCormick:

c/o Inverness

660 Steamboat Road

Greenwich, CT 06830
	

 	
 	

Xiagen Ltd., as a Lender
	

 	
 	

By:	

/s/  WILLIAM M. MCCORMICK      

	 	 	Name:	William M. McCormick

	 	 	Title:	President/Chairman

	

 	
 	

Address of Xiagen Ltd.:

c/o Inverness

660 Steamboat Road

Greenwich, CT 06830

8

 

	

 	
 	

Ropart Investments, LLC, as a Lender
	

 	
 	

By:	

/s/  TODD A. GOERGEN      

	 	 	Name:	Todd A. Goergen

	 	 	Title:	Managing Member

	

 	
 	

Address of Ropart Investments LLC:

One East Weaver Street

Greenwich, CT 06831
	

 	
 	

Frederick B. Rentschler, as a Lender
	

 	
 	

/s/  FREDERICK B. RENTSCHLER      

	

 	
 	

Address of Frederick B. Rentschler:

P.O. Box 4710

Cave Creek, AZ 85327
	

 	
 	

Ronald H. Lane, as a Lender
	

 	
 	

/s/  RONALD H. LANE      

	

 	
 	

Address of Ronald H. Lane:

2425 East Camelback Road

Suite 650

Phoenix, AZ 85016
	

 	
 	

William J. Ritger, as a Lender
	

 	
 	

/s/  WILLIAM J. RITGER      

	

 	
 	

Address of William J. Ritger

623 Ocean Ave.

Sea Girt, NJ 07650
	

 	
 	

HEALTHSTAR COMMUNICATIONS, INC, as a Lender
	

 	
 	

By:	

/s/  JERRY BRAGER      

	 	 	Name:	Jerry Brager

	 	 	Title:	Chairman/CEO

	

 	
 	

Address of HealthSTAR Communications, Inc.:

100 Woodbridge Center Drive, Suite 202

Woodbridge, NJ 07095

9

QuickLinks

THIRD AMENDED AND RESTATED CONSOLIDATED MULTIPLE ADVANCE NON-REVOLVING NOTE

ACKNOWLEDGEMENT OF LENDERS

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