Document:

Exhibit 10.5

Exhibit 10.5

SECOND AMENDMENT TO

REGISTRATION RIGHTS AGREEMENT

Second
Amendment (this “Second Amendment”), dated as of December 6, 2010, by and among
Neurologix, Inc., a Delaware corporation (the “Company”), General Electric Pension Trust (“GE”),
Corriente Master Fund, L.P. (“Corriente”), Palisade Concentrated Equity Partnership II, L.P.
(“Palisade”) and those additional entities executing the signature page hereto as “Existing
Investors” (GE, Corriente, Palisade and such Existing Investors are hereafter referred to
collectively as the “Amending Investors”).

WHEREAS, the Company and all of the Amending Investors except Palisade are parties to that
certain Registration Rights Agreement, dated as of November 19, 2007, as amended on April 28, 2008
(the “Registration Agreement”), which provides for certain registration rights relating to the
Registrable Securities held by each of such Amending Investors, as more fully specified in the
Registration Agreement;

WHEREAS, the Company is issuing to each of GE, Corriente and Palisade, on the date hereof,
secured senior promissory notes in the aggregate principal amount of $7,000,000 and warrants (the
“Bridge Warrants”) to purchase an aggregate of 2,430,555 shares of the Company’s common stock, par
value $0.001 per share (the “Common Stock”), pursuant to the terms and conditions of that certain
Note and Warrant Purchase Agreement (the “Purchase Agreement”), dated as of even date herewith, by
and among the Company, GE, Corriente and Palisade;

WHEREAS, the Company and the Amending Investors desire that (i) Palisade become a party to the
Registration Agreement and (ii) each of GE, Corriente and Palisade are granted registration rights
with respect to the shares of Common Stock issuable upon exercise of the Bridge Warrants; and

WHEREAS, the consummation of the transactions set forth in the Purchase Agreement is
conditioned upon the execution, delivery and effectiveness of this Second Amendment.

NOW, THEREFORE, the Company and the parties signatory hereto agree as follows:

1. Unless otherwise specifically provided herein, all terms used and capitalized in this
Second Amendment, but which are not defined herein, shall be deemed to have the respective meanings
set forth in the Registration Agreement.

2. By its execution and delivery of this Second Amendment, Palisade shall become an “Investor”
under the Registration Agreement and shall have all of the rights, privileges and benefits of, and
shall be subject to all obligations, restrictions and conditions of, an “Investor” thereunder.

3. Section 2(a)(ii) of the Registration Agreement is hereby amended by deleting the phrase
“pursuant to paragraph (k) of Rule 144” in the second sentence thereof and inserting in its place
the following:

“...without resale conditions pursuant to Rule 144...”

 

 

 

4. Section 2(h) of the Registration Agreement is hereby amended by deleting the phrase
“pursuant to Rule 144(k)” and inserting in its place the following:

“...without resale conditions pursuant to Rule 144...”

5. Section 2(a)(vii)(y) of the Registration Agreement is hereby amended by inserting the
following phrase after the phrase “plus (3) the Total Purchase Price (as defined in the New Series
D Agreement) paid by such holder”:

“...plus (4) the total principal amount then outstanding on the promissory notes issued to such
holder by the Company in connection with the transactions described in the Note and Warrant
Purchase Agreement dated as of December 6, 2010...”

6. Section 9 of the Registration Agreement is hereby amended by deleting the word “NASD” and
inserting in its place the following:

“...Financial Industry Regulatory Authority...”

7. Section 9 of the Registration Agreement is hereby amended by deleting the word “Purchased”
in the last line thereof.

8. Exhibit A to the Registration Agreement is hereby amended by adding Palisade as an Investor
thereunder and including the following information for Palisade at the end of Exhibit A:

“Palisade Concentrated Equity Partnership II, L.P.

c/o Palisade Capital Management, L.L.C.

One Bridge Plaza

Suite No. 695

Fort Lee, New Jersey 07024

Tel: (201) 585-5433

Fax: (201) 585-7552

Taxpayer ID No.: 86-1103899

Attn: Bradley R. Goldman, General Counsel & Chief Compliance Officer”

9. This Second Amendment will become effective upon the execution hereof by the Company,
Palisade, and at least fifty percent (50%) in interest of the Investors and will be binding on each
party to the Registration Agreement. Except as amended hereby, the Registration Agreement, and all
of the terms and provisions thereof, shall remain in full force and effect. After the effective
date of this Second Amendment, any reference to the Registration Agreement shall mean the
Registration Agreement as modified hereby.

10. This Second Amendment may be executed in one or more counterparts, each of which shall
constitute an original. This Second Amendment, to the extent signed and delivered by means of a
facsimile machine or other electronic transmission, shall be treated in all manner and respects and
for all purposes as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original signed version
thereof delivered in person.

11. This Second Amendment shall be governed by, and construed in accordance with, the internal
laws of the State of New York, without regard to the choice of law principles thereof.

[Signature page follows.]

 

2

 

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

NEUROLOGIX, INC.

	 	 	 	 	 
	By:
	 	/s/ Clark A. Johnson	 	 
	 

	 	 

Name: Clark A. Johnson
	 	 
	 

	 	Title:   President and Chief Executive Officer	 	 
	 
	 	 	 	 
	By:
	 	/s/ Marc L. Panoff	 	 
	 

	 	 	 	 
	 

	 	Name: Marc L. Panoff	 	 
	 

	 	Title:   Chief Financial Officer, Treasurer and Secretary	 	 
	 
	 	 	 	 
	GENERAL ELECTRIC PENSION TRUST	 	 
	 
	 	 	 	 
	By:

	 	GE Asset Management Incorporated,

its Investment Manager	 	 
	 
	 	 	 	 
	By:
	 	/s/ B.C. Sophia Tsai	 	 
	 

	 	 	 	 
	 

	 	Name: B.C. Sophia Tsai	 	 
	 

	 	Title:   Vice President and Managing Director	 	 
	 
	 	 	 	 
	CORRIENTE MASTER FUND, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Corriente Capital Management, L.P.,
its Managing General Partner	 	 
	 
	 	 	 	 
	By:

	 	Corriente Advisors, LLC,

its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ James Haddaway	 	 
	 

	 	 	 	 
	 

	 	Name: James Haddaway	 	 
	 

	 	Title:   President	 	 
	 
	 	 	 	 
	PALISADE CONCENTRATED EQUITY PARTNERSHIP II, L.P.
	 
	 	 	 	 
	By:

	 	Palisade Concentrated Holdings II, LLC,

its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Jeffrey D. Serkes	 	 
	 

	 	 	 	 
	 

	 	Name: Jeffrey D. Serkes	 	 
	 

	 	Title:   Authorized Person	 	 

 

 

	 	 	 	 	 
	EXISTING INVESTORS:	 	 
	 
	CHRYSLER GROUP LLC MASTER RETIREMENT TRUST	 	 
	By:

	 	State Street Bank and Trust Company,
as Trustee of the Chrysler Group LLC Master Retirement Trust	 	 
	 
	 	 	 	 
	By:
	 	/s/ Steve Sovany	 	 
	 

	 	 	 	 
	 

	 	Name: Steve Sovany	 	 
	 

	 	Title:   Vice President	 	 
	 
	 	 	 	 
	PROMED PARTNERS, LP

	 
	 	 	 	 
	By:
	 	/s/ David Musket	 	 
	 

	 	 	 	 
	 

	 	Name: David Musket	 	 
	 

	 	Title:   GPExhibit 10.6

Exhibit 10.6

Neurologix, Inc.

One Bridge Plaza

Fort Lee, NJ 07024

November 23, 2010

Via Facsimile and Federal Express

To: The Investors Listed on the Signature Pages

Re: Proposed Financing

Ladies and Gentlemen:

Reference is made to (i) the Stock and Warrant Subscription Agreement, dated as of May 10,
2006, by and among Neurologix, Inc. (the “Company”), General Electric Pension Trust
(“GE”), DaimlerChrysler Corporation Master Retirement Trust, n/k/a Chrysler Group LLC
Master Retirement Trust (“Chrysler”), certain funds managed by ProMed Asset Management LLC,
Paul Scharfer, and David Musket (“Musket”), as amended by letter agreement dated November
8, 2007 (such Stock and Warrant Subscription Agreement, as amended, is hereafter referred to as the
“Series C Subscription Agreement”), (ii) the Stock and Warrant Subscription Agreement,
dated as of November 19, 2007, by and among the Company, GE and Corriente Master Fund, L.P. (the
“Series D Subscription Agreement”), and (iii) the Stock and Warrant Subscription Agreement,
dated as of April 28, 2008, by and among the Company, GE and Corriente Master Fund, L.P. (the
“Corriente Subscription Agreement”). Capitalized terms used but not defined herein shall
have the meanings set forth in the Series C Subscription Agreement, the Series D Subscription
Agreement and the Corriente Subscription Agreement.

As of the date hereof, each of GE, Chrysler, ProMed Partners, LP, ProMed Offshore Fund Ltd.
and Musket constitute all of the holders of the Company’s Series C Convertible Preferred Stock, par
value $0.10 per share (each of GE, Chrysler, ProMed Partners LP, ProMed Offshore Fund Ltd. and
Musket is hereafter referred to individually as an “Existing Series C Holder” and
collectively as the “Existing Series C Holders”).

As of the date hereof, each of GE and Corriente Master Fund, L.P. (“Corriente”)
constitute all of the holders of the Company’s Series D Convertible Preferred Stock, par value
$0.10 per share (each of GE and Corriente, in each such entity’s respective capacity as a holder of
such shares, is hereafter referred to individually as an “Existing Series D Holder” and
collectively as the “Existing Series D Holders”).

As you know, the Company is proposing to issue senior secured promissory notes and common
stock warrants on substantially the terms set forth in the letter of intent attached hereto as
Exhibit A (the issuance of such notes and warrants on such terms is hereafter referred to
as the “Financing”). You are either participating in, or have waived your rights to
participate in, the Financing.

 

 

 

One of the Financing terms provides that the investors participating in the Financing (the
“Financing Investors”) be given the right to participate in certain future financings of
the Company in an amount equal to the greater of (i) nineteen percent (19%) of the aggregate amount
of securities offered in such financing and (ii) the amount of such offered securities not
subscribed for by the Company’s existing preemptive rights holders (such participation right is
hereafter referred to as the “Financing Right of First Refusal”).

Sections 3.1 of the Series C Subscription Agreement, the Series D Subscription Agreement and
the Corriente Subscription Agreement provide the Existing Series C Holders and the Existing Series
D Holders with participation rights in future equity or equity-related financings of the Company
(such participation rights are hereafter referred to as the “Existing Right of First
Refusal”).

In order to permit the Company to comply with the Financing Right of First Refusal, the
Company is hereby requesting your consent to the following modifications to Section 3.1 of the
Series C Subscription Agreement, the Series D Subscription Agreement and the Corriente Subscription
Agreement:

Modifications:

You hereby acknowledge and agree that any Offered Securities for which you may subscribe, as
set forth in your Notice of Acceptance, shall be reduced to the extent necessary for the Company to
comply with the Financing Right of First Refusal; provided, that, any such
reduction shall be made on a pro rata basis among all other participating Existing Series C Holders
and Existing Series D Holders based on each such Holder’s participation amount as set forth in its
Notice of Acceptance; and provided, further, that, any such reduction shall
first be made to any Undersubscription Amounts on a pro rata basis among the oversubscribing
Existing Series C Holders and Existing Series D Holders based on each such Holder’s
Undersubscription Amount as set forth in its Notice of Acceptance.

 

 

 

Sections 6.2 of the Series C Subscription Agreement and the Series D Subscription Agreement
and Section 7.2 of the Corriente Subscription Agreement require your consent to the modifications
described in the preceding paragraph. Your acknowledgment below indicates your consent to such
modifications and your acceptance of and agreement to the matters set forth herein. Accordingly,
please sign the copy of this letter enclosed for such purpose in the designated space below and
return it to the Company by e-mail to marcpanoff@neurologix.net, or by facsimile to (201) 592-0366,
attention: Marc Panoff, Chief Financial Officer.

This letter shall be governed by, and construed in accordance with, the internal laws of the
State of New York, without regard to the choice of law principles thereof.

This letter may be executed in two or more counterparts, each of which shall constitute an
original, but all of which, when taken together, shall constitute but one instrument.

Sincerely,

/s/ Marc L.
Panoff
Marc L. Panoff

Chief Financial Officer

 

 

 

	 	 	 	 	 
	Consented and Accepted:	 	 
	 
	 	 	 	 
	Investors:	 	 
	 
	 	 	 	 
	GENERAL ELECTRIC PENSION TRUST	 	 
	By: GE Asset Management Incorporated, 

its Investment Manager	 	 
	 
	 	 	 	 
	By:
	 	/s/ B.C. Sophia Tsai	 	 
	 

	 	 

Name: B.C. Sophia Tsai
	 	 
	 

	 	Title:   Vice President and Managing Director	 	 
	 
	 	 	 	 
	CHRYSLER GROUP LLC MASTER RETIREMENT TRUST
	By: State Street Bank and Trust Company,
as Trustee of the Chrysler Group LLC Master Retirement Trust	 	 
	 
	 	 	 	 
	By:
	 	/s/ Steve Sovany	 	 
	 

	 	 	 	 
	 

	 	Name: Steve Sovany	 	 
	 

	 	Title:   Vice President	 	 
	 
	 	 	 	 
	PROMED PARTNERS, LP	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Musket	 	 
	 

	 	 	 	 
	 

	 	Name: David Musket	 	 
	 

	 	Title:   GP	 	 
	 
	 	 	 	 
	PROMED OFFSHORE FUND LTD.	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Musket	 	 
	 

	 	 	 	 
	 

	 	Name: David Musket	 	 
	 

	 	Title:   Managing Member	 	 
	 
	 	 	 	 
	CORRIENTE MASTER FUND, L.P.	 	 
	By: Corriente Capital Management, L.P., 

its Managing General Partner	 	 
	By: Corriente Advisors, LLC, 

its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ James Haddaway	 	 
	 

	 	 	 	 
	 

	 	Name: James Haddaway	 	 
	 

	 	Title:   President	 	 
	 
	 	 	 	 
	/s/ David Musket	 	 
	 	 	 
	David Musket

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