Document:

ex10_1.htm

Exhibit 10.1

 

FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This First Amendment to Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into as of June 11, 2012, by and between COMERICA BANK (“Bank”) and SCIENTIFIC LEARNING CORPORATION (“Borrower”).

 

RECITALS

 

Borrower and Bank are parties to that certain Amended and Restated Loan and Security Agreement dated as of February 9, 2012 (as amended from time to time, “Agreement”).  The parties desire to amend the Agreement in accordance with the terms of this Amendment.

 

NOW, THEREFORE, the parties agree as follows:

 

1.           Section 6.8 of the Agreement hereby is amended and restated in its entirety to read as follows:

 

“6.8       Adjusted Quick Ratio.  Borrower shall maintain a ratio of (I) unrestricted cash and cash equivalents maintained at Bank or at Bank’s affiliates covered by control agreements in form and substance satisfactory to Bank, plus net trade accounts receivable less than 90 days from invoice date to Current Liabilities less non-refundable deferred revenues plus, (to the extent not already included therein) all Indebtedness to Bank, of at least 1.15 to 1.00.  The foregoing covenant shall be measured (i) as of the last day of each month if Advances are outstanding during such month or (ii) as of the last day of each calendar quarter if there were no Advances outstanding during such quarter.”

 

2.           Section 6.9 of the Agreement hereby is amended and restated in its entirety to read as follows:

 

“6.9       Net Worth.   Borrower shall maintain Net Worth greater than or equal to the following amounts as of the relevant measurement date:

 

	
Measuring Period

	
Minimum Net Worth

	
May 31, 2012

	
($4,750,000)

	
June 30, 2012

	
($5,250,000)

	
July 31, 2012, August 31, 2012 and September 30, 2012

	
($5,750,000)

	
October 31, 2012

	
($4,750,000)

	
November 30, 2012

	
($4,500,000)

	
December 31, 2012

	
($4,000,000)

 

The foregoing covenant shall be measured (i) as of the last day of each month if Advances are outstanding during such month or (ii) as of the last day of each calendar quarter if there were no Advances outstanding during such quarter.  In addition, Bank and Borrower shall mutually agree to reset the foregoing covenant for the 2013 calendar year.”

 

3.           Exhibit D to the Agreement hereby is replaced with Exhibit D attached hereto.

 

4.           No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right.  Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance.  Any suspension or waiver of a right must be in writing signed by an officer of Bank.

 

  

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5.           Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement.  The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.

 

6.           Borrower represents and warrants that the Representations and Warranties contained in the Agreement, as qualified by the Schedule included with this Amendment, are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing.

 

7.           As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

(a)           this Amendment, duly executed by Borrower;

 

(b)           a Certificate of the Secretary of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Amendment;

 

(c)           all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any of Borrower's accounts; and

 

(d)           such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

 

8.           This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

 

[Balance of Page Intentionally Left Blank]

 

  

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

 

	 	
SCIENTIFIC LEARNING CORPORATION

	 
	 	 	 	 
	 	
By: 

	/s/ Robert Feller	 
	 	 	 	 
	 	Title 	CFO	 
	 	 	 	 
	 	

COMERICA BANK

	 
	 	 	 	 
	 	By:	/s/ Dennis Rapoport	 
	 	 	 	 
	 	Title:	 VP	 

 

[Signature Page to First Amendment to Amended and Restated Loan and Security Agreement]

 

 

 -1-Exhibit 10.1

 

	 	Redpoint Bio Corporation
	 	5501 Old York Road
	 	Philadelphia, Pennsylvania 19141

 

 

 

June 12, 2012

 

Mr. Scott Horvitz

7 Timber Knoll Drive

Washington Crossing, PA 18977

 

Re: Employment Compensation

 

Dear Mr. Horvitz:

 

As you know, on September 27, 2011, the
Board of Directors (the “Board”) of Redpoint Bio Corporation (the “Company”), and you agreed, due to the
financial condition of the Company, to reduce your 2011 compensation by ninety percent (90%) and reduce by ninety percent (90%)
your severance under the severance arrangement included in your Employment Agreement dated as of June 28, 2004, as amended on
December 19, 2008, by and between you and the Company (together, the “Employment Agreement”). 

 

This letter is to further memorialize and to confirm that the
amount by which your 2011 compensation was reduced was $59,174 and the amount by which your severance was reduced was $245,667,
for a total reduction of $ 304,841 (the “Management Writeoff”). You and the Company confirm and agree that the remaining
amounts of deferred compensation, in an aggregate amount equal to $6,575, and deferred severance payments, in an aggregate amount
equal to $27,296, shall be paid to you only if and when the Company enters into a Change of Control (as defined in your Employment
Agreement) and that (except as provided in the following sentence), whether or not a Change of Control occurs, no portion of the
Management Writeoff will be paid to you. Notwithstanding the foregoing, you and the Company also agreed that in the event the Company
files for bankruptcy before a Change of Control, you shall continue to be entitled to claim the full Management Writeoff.

 

 

    	 

    	 	

    
 

In consideration of the foregoing terms
and other benefits accrued, and that may in the future accrue, to you by the Company, you hereby release and forever discharge
the Company, its predecessors, successors and assigns, current and former parents, affiliates, subsidiaries, divisions and related
business entities, and its and their current and former directors, officers, shareholders, employees, agents and representatives
(individually and collectively, “Released Parties”) of and from any and all controversies, claims, causes of action,
demands, obligations, agreements, promises, liability, damages, costs and remedies of any kind and nature, known and unknown,
that you now have or may have by, or thereafter claim to have, on behalf of yourself or any other person or entity, at any time,
arising out of or relating in any way to your employment with or termination from employment with the Company, including, without
limitation, any right to any compensation from the Company pursuant to your employment relationship with the Company, and the
tax treatment thereof. This is a general release. Nothing in this general release shall constitute a waiver of rights that as
a matter of law cannot be waived. You expressly acknowledge that, to the maximum extent permitted by law, this general release
includes but is not limited to any claims in tort or contract, including without limitation claims concerning salary, bonus and
any award(s), grant(s) or purchases under any equity and incentive compensation plan or program, and severance pay, and any claims
which may be waived under any federal, state and local laws, regulations, ordinances or common law pertaining to employment or
employment discrimination, specifically including without limitation the Americans with Disabilities Act, Title VII of the Civil
Rights Act of 1964, The Rehabilitation Act of 1973 and The Equal pay Act and amendments thereto. The identification of specific
statutes is for purposes of example only and the failure to include any specific statute or law shall not be read to limit the
scope of this general release in any manner. You agree that you have received adequate consideration for this release.

 

This
letter agreement constitutes the entire understanding between the Company and you with respect to the subject matter hereof. Please
countersign this letter agreement below indicating your acceptance and agreement with all of the foregoing terms and conditions.

 

 

  

	 	 	 Redpoint Bio Corporation
	 	 	 	 
		 	 By:	/s/ Richard Shanley
	 	 	 Name:	 Richard Shanley
	 	 	 Title:	Chairman

 

  

Signature: /s/ Scott Horvitz

Name: Scott HorvitzExhibit 10.2 

 

	 	Redpoint Bio Corporation
	 	5501 Old York Road
	 	Philadelphia, Pennsylvania 19141

 

 

 

June 12, 2012

 

Dr. F. Raymond Salemme

1970 Timber Lakes Drive

Yardley, PA 19067

 

Re: Employment Compensation

 

Dear Dr. Salemme:

 

As you know, on September 27, 2011, the
Board of Directors (the “Board”) of Redpoint Bio Corporation (the “Company”), and you agreed, due to the
financial condition of the Company, to reduce your 2011 compensation by ninety percent (90%) and reduce by ninety percent (90%)
your severance under the severance arrangement included in your Employment Agreement dated as of May 25, 2004, as amended on December
22, 2008, by and between you and the Company (together, the “Employment Agreement”).

 

This letter is to further memorialize and
to confirm that the amount by which your 2011 compensation was reduced was $82,397 and the amount by which your severance was reduced
was $334,163, for a total reduction of $416,560 (the “Management Writeoff”). You and the Company confirm and agree
that the remaining amounts of deferred compensation, in an aggregate amount equal to $9,155, and deferred severance payments, in
an aggregate amount equal to $37,129, shall be paid to you only if and when the Company enters into a Change of Control (as defined
in your Employment Agreement) and that (except as provided in the following sentence), whether or not a Change of Control occurs,
no portion of the Management Writeoff will be paid to you. Notwithstanding the foregoing, you and the Company also agreed that
in the event the Company files for bankruptcy before a Change of Control, you shall continue to be entitled to claim the full Management
Writeoff.

 

    	 

    	 	

    
 

 

In consideration of the foregoing terms
and other benefits accrued, and that may in the future accrue, to you by the Company, you hereby release and forever discharge
the Company, its predecessors, successors and assigns, current and former parents, affiliates, subsidiaries, divisions and related
business entities, and its and their current and former directors, officers, shareholders, employees, agents and representatives
(individually and collectively, “Released Parties”) of and from any and all controversies, claims, causes of action,
demands, obligations, agreements, promises, liability, damages, costs and remedies of any kind and nature, known and unknown, that
you now have or may have by, or thereafter claim to have, on behalf of yourself or any other person or entity, at any time, arising
out of or relating in any way to your employment with or termination from employment with the Company, including, without limitation,
any right to any compensation from the Company pursuant to your employment relationship with the Company, and the tax treatment
thereof. This is a general release. Nothing in this general release shall constitute a waiver of rights that as a matter of law
cannot be waived. You expressly acknowledge that, to the maximum extent permitted by law, this general release includes but is
not limited to any claims in tort or contract, including without limitation claims concerning salary, bonus and any award(s), grant(s)
or purchases under any equity and incentive compensation plan or program, and severance pay, and any claims which may be waived
under any federal, state and local laws, regulations, ordinances or common law pertaining to employment or employment discrimination,
specifically including without limitation the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, The Rehabilitation
Act of 1973 and The Equal pay Act and amendments thereto. The identification of specific statutes is for purposes of example only
and the failure to include any specific statute or law shall not be read to limit the scope of this general release in any manner.
You agree that you have received adequate consideration for this release.

 

This letter agreement constitutes the entire
understanding between the Company and you with respect to the subject matter hereof. Please countersign this letter agreement below
indicating your acceptance and agreement with all of the foregoing terms and conditions.

  

	 	 	 Redpoint Bio Corporation
	 	 	 	 
		 	 By:	 /s/ Scott Horvitz
	 	 	 Name:	 Scott Horvitz
	 	 	 Title:	Interim Chief Executive Officer,
	 	 	 	Chief Financial Officer, Treasurer
	 	 	 	and Secretary

 

 

Signature: /s/ F. Raymond Salemme, Ph.D.

Name: F. Raymond Salemme, Ph.D.

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