Document:

Exhibit 10.1

 

September 18, 2008

 

Barbara R. Mittman

Grushko &
Mittman, P.C.

Attorneys at Law

551 Fifth Avenue, Suite 1601

New York, NY 10176

 

Dear Ms. Mittman:

 

Reference is made to the
Amended and Restated Collateral Agent Agreement dated December 5, 2006, by
and among Barbara R. Mittman as Collateral Agent, Ceragenix Pharmaceuticals, Inc.
(the “Company”), and the Lenders listed
therein (the “Collateral Agent Agreement”).  All terms used in this letter and not
otherwise defined shall have the meanings given them in the Collateral Agent
Agreement.

 

The Company and a
Majority in Interest of the Lenders have agreed to amend the terms of the Notes
and the Borrower Documents on the terms agreed to in the amendment agreements
attached hereto as Attachment A and Attachment B (the “Amendments”).  The
terms of the Amendments are substantially similar and are made with respect to
all of the Notes and with the same force and effect with respect to each of the
Lenders.

 

The Lenders listed on the
signature page hereto constitute a Majority in Interest under the
Collateral Agent Agreement and represent all of the Lenders that are
signatories to the Amendments.  The
Company hereby certifies the principal amount held by each Lender and the accompanying
percentages shown on Attachment C as being accurate and correct as of
the date hereof.

 

Accordingly, you are
hereby instructed to amend the terms of the Notes and the Borrower Documents as
provided for in the Amendments by affixing your signature thereto.

 

Thank you for your assistance.

 

 

Sincerely,

 

[Signature Page Follows]

 

 

LENDERS CONSTITUTING A MAJORITY
IN INTEREST:

 

 

	
  MIDSUMMER INVESTMENTS, LTD

  	
   

  	
  PIERCE DIVERSIFIED STRATEGIES 

  
	
   

  	
   

  	
  MASTER FUND LLC SERIES BUS

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BUSHIDO CAPITAL MASTER FUND LP

  	
   

  	
  BCMF TRUSTEES LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LONGVIEW FUND

  	
   

  	
  LONGVIEW EQUITY FUND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  

 

 

COMPANY:

 

 

CERAGENIX PHARMACEUTICALS, INC.

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  

 

Signature Page to Letter
of Instruction

Dated September 18, 2008

 

 

 

ATTACHMENT
A

 

FOURTH
AMENDMENT AGREEMENT

 

See attached.

 

 

ATTACHMENT
B

 

AUGUST
2008 AMENDMENT AGREEMENT

 

See attached.

 

 

ATTACHMENT
C

 

PRINCIPAL
AMOUNTS

 

Ceragenix Pharmaceuticals, Inc.

August 2008 Debt Amendments

 

	
   

  	
   

  	
  Outstanding

  	
   

  	
  % of Total

  	
   

  
	
   

  	
   

  	
  Balance

  	
   

  	
  Debt

  	
   

  
	
  Holders
  Approving Amendment

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Longview Fund

  	
   

  	
  2,057,189

  	
   

  	
  23.91

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Longview Equity
  Fund

  	
   

  	
  550,000

  	
   

  	
  6.39

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Midsummer

  	
   

  	
  3,300,000

  	
   

  	
  38.36

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bushido Capital
  Master Fund

  	
   

  	
  550,916

  	
   

  	
  6.40

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pierce
  Diversified Fund

  	
   

  	
  550,000

  	
   

  	
  6.39

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BCFM Trustees

  	
   

  	
  895,656

  	
   

  	
  10.41

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7,903,761

  	
   

  	
  91.88

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Holders
  Not Approving Amendment

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Alpha Capital

  	
   

  	
  495,000

  	
   

  	
  5.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACM SPV

  	
   

  	
  179,865

  	
   

  	
  2.09

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ralph Rabman

  	
   

  	
  9,923

  	
   

  	
  0.12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CFRR Holdings 

  	
   

  	
  13,640 

  	
    

  	
  0.16 

  	
  % 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  698,428

  	
   

  	
  8.12

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
  8,602,189

  	
   

  	
  100.00

  	
  %Exhibit 10.2

 

FOURTH AMENDMENT AGREEMENT

 

This
Fourth Amendment Agreement (the “Agreement”), dated as of August 20,
2008 and effective as of July 18, 2008 (the “Effective Date”), is
by and among Ceragenix Pharmaceuticals, Inc., a Delaware corporation (the “Company”)
and the investors signatory hereto (each, a “Purchaser” and
collectively, the “Purchasers”). 
Capitalized terms not defined in this Agreement shall have the meanings
ascribed to such terms in the Purchase Agreement (as defined below).

 

WHEREAS,
pursuant to a Securities Purchase Agreement, dated December 5, 2006, as
amended, among the Company and the Purchasers (the “Purchase Agreement”),
the Purchasers were issued convertible debentures with an original aggregate
principal amount of $5,000,000 and warrants to purchase shares of Common Stock;
and

 

WHEREAS,
on each of June 30, 2007, November 30, 2007 and July 1, 2008,
the parties entered into an Amendment Agreement pursuant to which the parties
agreed to amend and restate certain terms of the Purchase Agreement and the
Transaction Documents; and

 

WHEREAS,
the parties wish to further amend certain terms of the Transaction Documents.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Purchasers and the Company agree as follows:

 

1.             Amendment to Maturity Date. The Maturity Date of the Debentures is
hereby amended to be December 31, 2011.

 

2.             Adjustments to Conversion Price of Debentures.  Section 4(b) of
the Debentures is hereby deleted in its entirety and replaced with the
following:

 

“Conversion
Price.  The conversion price in
effect on any Conversion Date shall be equal to $0.80, subject to adjustment herein (the
“Conversion Price”); provided, however, if the Company
shall fail to pay the cumulative Quarterly Redemption Amounts during any of the
12-month periods ending June 30, 2010 and June 30, 2011 (each such
date, the “Triggering Date”), then the Conversion Price shall be reduced
on, as applicable, each of July 1, 2010 and July 1, 2011,
respectively, to equal the lesser of (i) the then Conversion Price and (ii) the
average of the ten (10) lowest VWAPs for the 60 consecutive Trading Day
period immediately prior to the respective Triggering Date, subject to
adjustment herein.”

 

3.             Adjustment to Interest Rate. The interest rate of the Debentures shall
be increased to 12% per annum and all references to such non-default interest
rate shall be replaced with 12%.

 

4.             Option to Defer Interest Payments. The following shall be added to Section 2(a) of
the Debentures:

 

1

 

“Upon each
interest payment pursuant to this Section 2(a), if the Company fails to
pay interest on any Interest Payment Date, as to the unpaid balance, the Holder
shall have the option to either (i) receive such interest payment in
shares of Common Stock pursuant to this Section 2(a) or (ii) as
to such interest payment hereunder, in lieu of receiving shares of Common Stock
and upon prior notice to the Company, the Holder may accrete such interest
payment to the outstanding principal amount of this Debenture which shall be
recorded on the Debenture Register and, upon the request of the Holder, a certificate of
this Debenture, as amended, representing such interest payments.”

 

5.             Interest Conversion Rate.  The
definition of “Interest Conversion Rate” set forth in Section 1 of
the Debenture is hereby amended and restated in its entirety as follows:

 

““Interest
Conversion Rate” means 85% of the average of the 5 lowest VWAPs during any
30 consecutive Trading Day period during the 365 day period immediately prior
to the applicable Interest Payment Date.”

 

6.             Amendment to Monthly Redemption.

 

a)             The
definition of “Monthly Redemption Date” set forth in Section 1 of
the Debentures is hereby amended and restated in its entirety as follows:

 

““Quarterly
Redemption Date” means June 30, 2009, and each September 30, December 31,
March 31, and June 30 thereafter, and terminating upon the full
redemption of this Debenture. The first such Quarterly Redemption Date shall be
herein referred to as the “First Quarterly Redemption Date” and each such date thereafter, each a “Quarterly Redemption Date”.”

 

b)            All
instances of “Monthly Redemption Date” in the Debentures are hereby
replaced in their entirety with “Quarterly Redemption Date”.

 

c)             The
definition of “Monthly Redemption Amount” set forth in Section 1 of
the Debentures is hereby amended and restated in its entirety as follows:

 

“Quarterly
Redemption Amount” means, with respect to each Quarterly Redemption Date,
the amounts specified for each Quarterly Redemption Date on Schedule 2 to this
Agreement plus accrued but unpaid
interest, liquidated damages and any other amounts then owing to such Holder in
respect of this Debenture.

 

d)            The first sentence of Section 6(a) of
the Debentures is hereby amended and restated in its entirety as follows: “On
each Quarterly Redemption Date, the Company shall redeem the applicable
Quarterly Redemption Amount (the “Quarterly Redemption”).”

 

e)             The Debentures are hereby amended by
addition of Schedule 2 attached to this Agreement as Schedule 2 to the
Debentures.

 

2

 

f)             All instances of “Monthly Redemption Amount”
in the Debentures are hereby replaced in their entirety with “Quarterly
Redemption Amount”.

 

g)            All instances of “Monthly Conversion
Period” in the Debentures are hereby replaced in their entirety with “Quarterly
Conversion Period”.

 

h)            All instances of “Monthly Conversion
Price” in the Debentures are hereby replaced in their entirety with “Quarterly
Conversion Price”.

 

i)              All instances of “Monthly Redemption”
in the Debentures are hereby replaced in their entirety with “Quarterly
Redemption”.

 

j)              All instances of “Monthly Redemption
Notice” in the Debentures are hereby replaced in their entirety with “Quarterly
Redemption Notice”.

 

k)             All instances of “Monthly Redemption
Share Amount” in the Debentures are hereby replaced in their entirety with “Quarterly
Redemption Share Amount”.

 

7.             Adjustment to Exercise Price of Warrants.  Section 2(b) of
the Warrants is hereby deleted in its entirety and replaced with the following:

 

“Exercise Price.  The
exercise price per share of the Common Stock under this Warrant shall be $0.80, subject to adjustment hereunder (the “Exercise
Price”).”

 

8.             Issuance of New Warrants.  As
partial consideration hereunder, each Purchaser shall be issued new five-year
warrants (the “New Warrants”), to purchase up to a number of shares of
Common Stock equal to 25% of the number of Warrant Shares issuable to such
Purchaser immediately following the date of this Agreement, as set forth on Schedule
8 attached hereto, with an Initial Exercise Date (as defined therein) of August 20,
2008, a Termination Date (as defined therein) of August 20, 2013, and an
initial Exercise Price (as defined therein) of $0.80, subject to adjustment
therein, which New Warrants shall otherwise be in the form of the Warrants
issued pursuant to the Purchase Agreement, as amended. The New Warrants shall
be included in the definition of “Warrants” hereunder and in the
Transaction Documents.  The shares of
Common Stock underlying such New Warrants shall be included in the definition
of “Warrant Shares” hereunder and in the Transaction Documents.

 

9.             Mandatory Redemption of Debentures.  The
Company hereby agrees to use certain expected revenues for the cash redemption
of the Debentures and the notes issued pursuant to that certain Subscription
Agreement among the Company and the subscribers thereto dated November 28,
2005, as amended (the “Notes”), as follows; provided, that such revenues
shall be further subject to apportionment among each of the holders of the
Debentures and the Notes according to the percentages set forth on Schedule 9
attached hereto:

 

(a)           100% of any net revenues received by or
payable to the Company, including, but not limited to, all milestone payments,
all partnership payments, all royalty payments and any other payments, and
excluding any direct costs, direct fees, or direct royalties (such payments,
the “Net Revenue”) derived, directly or indirectly, from the 

 

3

 

Distribution and Supply Agreement between Dr. Reddy’s Laboratories, Inc.
(“Dr. Reddy’s”), the Company and Ceragenix Corporation, dated November 16,
2007 (the “DRL Agreement”), except for any milestone payments, net sales
royalties and product cost reimbursements paid or owed to the Company prior to April 1,
2009. By way of example, Net Revenue shall not include such direct costs,
direct fees or direct royalties such as, but not limited to, the 5% royalty for
EpiCeram pursuant to the Exclusive License Agreement by and among the Company
and The Regents of the University of California, dated June 28, 2000;

 

(b)           100% of the Net Revenue derived, directly or
indirectly, from any other EpiCeram commercialization arrangements;

 

(c)           50% of the Net Revenue derived, directly or
indirectly, from the sale of NeoCeram;

 

(d)           33% of any Net Revenue derived, directly or
indirectly, from the sales of Ceragenins Partnerships; and

 

(e)           33% of any Net Revenue not reference above
and received by the Company in excess of, in the aggregate until the Debentures
are no longer outstanding, $ 250,000,
excluding any capital raised by the Company through investment from the
Purchasers or any other equity investment in or issuance of debt by the
Company.

 

Upon receipt of any of the Net Revenues described above, the Company
shall immediately place such funds in a segregated account for the benefit of
the Purchasers and notify the Purchasers in writing of the receipt of such
funds.  Upon notice to the Company that a
Purchaser wishes to have its Debenture redeemed, the Company shall immediately
wire such Purchaser its pro-rata share of such funds (based on the original
principal amount purchased by such Purchaser) and record the reduction in
principal in the Debenture register.  In
the event that a Purchaser declines to receive a redemption payment or does not
respond to the Company within ten (10) Trading Days, the Company shall
notify all other Purchasers of such excess amount and any Purchasers that wish
to have their Debentures further redeemed by such additional amount shall
receive their pro-rata share of such remaining funds.

 

10.           Additional Covenants. The following covenants shall be added to Section 4
of the Purchase Agreement.

 

a)             As
of the date of this Agreement and until the earlier of (i) June 30,
2010 and (ii) the date that 50% of the initial aggregate principal amount
of the Debentures is no longer outstanding and has been redeemed by the Company
pursuant to the terms of such Debentures and this Agreement (such earlier date,
the “Accrual Termination Date”), the Company shall (i) not pay cash
retainers or make any other cash payments to the Board of Directors except
meeting fees for up to four (4) meetings of the Board of Directors per
year and meeting fees for any meetings of the Audit Committee of the Board of
Directors (the “Board Payments”) and the Company shall revise the
payment schedule and methods 

 

4

 

of payment for all Board Payments and (ii) use commercially
reasonable efforts to minimize the cost of holding meetings of the Board of
Director, including providing for telephonic meetings of the Board of Directors
rather than in-person quarterly meetings of the Board of Directors. All Board
Payments shall accrue until the Accrual Termination Date.

 

b)            No
later than September 30, 2008, the Company shall terminate its consulting
agreement with Armada Medical Marketing.

 

c)             Immediately
upon execution of this Agreement, the Company hereby agrees that it shall not
renew its consulting agreement with CEOcast.

 

d)            The
Company shall use best efforts to renegotiate its obligation to Osmotics
Corporation for the purchase of Triceram from a 12-month note to a 24-month
note no later than the 30th day following the date of this Agreement, and such
renegotiation shall not result in the Company paying to Osmotics Corporation
more than $20,000 per month.

 

e)             The
Company shall use best efforts to renegotiate the payment terms for EpiCeram
under the DRL Agreement pursuant to which Dr. Reddy’s shall prepay 50% of
each EpiCeram purchase order placed by Dr. Reddy’s.

 

f)             The
Company shall use best efforts to monetize or securitize the EpiCeram and
NeoCeram royalties on or prior to the one year anniversary of the date of this
Agreement.

 

11.           Effect on Purchase Agreement.  The foregoing amendments are given
solely in respect of the transactions described herein. Except as expressly set
forth herein, all of the terms and conditions of the Transaction Documents, as
amended, shall continue in full force and effect after the execution of this
Agreement, and shall not be in any way changed, modified or superseded by the
terms set forth herein.  The Warrants and
Warrant Shares issued and issuable pursuant to Section 8 hereof shall be
deemed “Warrants” and Warrant Shares” under the Transaction Documents.  This Agreement shall not constitute a
novation or satisfaction and accord of any Transaction Document.

 

12.           Filing of Form 8-K. 
Within two (2) Trading Days of the date of execution of this
Agreement, the Company shall issue a Current Report on Form 8-K,
reasonably acceptable to each Purchaser disclosing the material terms of the
transactions contemplated hereby, which shall include this Agreement as an
attachment thereto. In addition, within two (2) Trading Days of the date
of execution of this Agreement, the Company shall file a prospectus supplement under
Rule 424 under the Securities Act to registration statement number
333-139627, disclosing the terms of the transactions hereunder.

 

13.           Representations and Warranties of the Company.  The
Company hereby makes the representations and warranties set forth below to the
Purchasers that as of the date of its execution of this Agreement:

 

5

 

a)             Authorization;
Enforcement.  The Company has the requisite corporate  power
and authority to enter into and to consummate the transactions contemplated by
this Agreement and otherwise to carry out its obligations hereunder and
thereunder.  The execution and delivery
of this Agreement by the Company and the consummation by it of the transactions
contemplated hereby have been duly authorized by all necessary action on the
part of such Company and no further action is required by such Company, its
board of directors or its stockholders in connection therewith.  This Agreement has been duly executed by the
Company and, when delivered in accordance with the terms hereof, will
constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.

 

b)            No
Conflicts.  The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby do not and will not: (i) conflict with or
violate any provision of the Company’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii) conflict
with, or constitute a default (or an event that with notice or lapse of time or
both would become a default) under, result in the creation of any lien upon any
of the properties or assets of the Company, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse
of time or both) of, any material agreement, credit facility, debt or other
material instrument (evidencing Company debt or otherwise) or other material
understanding to which the Company is a party or by which any property or asset
of the Company is bound or affected, or (iii) conflict with or result in a
violation of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which the Company
is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected.

 

c)             Issuance of Warrants.  The Warrants are duly authorized and duly and
validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company other than restrictions on transfer provided for in the
Transaction Documents.  The Warrant
Shares, when issued in accordance with the terms of the Warrants, will be
validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company.  The Company has
reserved from its duly authorized capital stock a number of shares of Common
Stock for issuance of the Warrant Shares and additional shares issuable
pursuant to the Warrants under this Agreement.

 

14.           Representation and Warranty of the
Purchasers.  The Purchasers severally and not jointly
hereby make the representation and warranty set forth below to the Company that
as of the date of its execution of this Agreement, such Purchaser represents
and warrants that (a) the execution and delivery of this Agreement by it
and the consummation by it of the transactions 

 

6

 

contemplated
hereby have been duly authorized by all necessary action on its behalf and (b) this
Agreement has been duly executed and delivered by such Purchaser and
constitutes the valid and binding obligation of such Purchaser, enforceable
against it in accordance with its terms except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.

 

15.           Notices.  Any and all notices or other
communications or deliveries required or permitted to be provided hereunder
shall be made in accordance with the provisions of the Purchase Agreement.

 

16.           Survival. All warranties and representations (as of the date such warranties
and representations were made) made herein or in any certificate or other
instrument delivered by it or on its behalf under this Agreement shall be
considered to have been relied upon by the parties hereto and shall survive the
issuance of the Debentures. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties; provided,
however, that no party may assign this Agreement or the obligations and
rights of such party hereunder without the prior written consent of the other
parties hereto.

 

17.           Execution.  This Agreement may be executed
in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered
by facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page were
an original thereof.

 

18.           Severability.  If
any provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

 

19.           Governing Law.  All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be determined pursuant to the Governing Law provision
of the Purchase Agreement.

 

20.           Entire Agreement.  The
Agreement, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules.

 

7

 

21.           Construction.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.  The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

 

22.           Independent Nature of Purchasers’ Obligations
and Rights.  The obligations of each Purchaser hereunder
are several and not joint with the obligations of any other Purchasers
hereunder, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser hereunder. Nothing contained herein
or in any other agreement or document delivered at any closing, and no action
taken by any Purchaser pursuant hereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement. Each Purchaser shall be entitled to protect and enforce its rights,
including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose.

 

23.           Fees and Expenses.  Each
party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this
Agreement.

 

***********************

 

8

 

IN
WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment Agreement
to be duly executed by their respective authorized signatories as of the date
first indicated above.

 

 

	
   

  	
  CERAGENIX PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

9

 

[PURCHASER SIGNATURE PAGES TO CGXP FOURTH AMENDMENT AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated
above.

 

 

	
  Name of Purchaser: BCMF Trustees, LLC

  
	
  Signature of Authorized Signatory of Purchaser:

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  
	
  Email Address of Purchaser:

  	
   

  
					

 

Address
for Notice of Purchaser:

BCMF
Trustees, LLC

c/o
Bushido Capital

145
East 57th Street, 11th Floor

New
York, NY 10022

Attn:
Ronald S. Dagar

 

Address
for Delivery of Securities for Purchaser (if not same as above):

 

 

New
Principal Amount: $

New
Warrant Shares:

 

10

 

[PURCHASER SIGNATURE PAGES TO CGXP FOURTH AMENDMENT AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated
above.

 

 

	
  Name of Purchaser: ACM SPV, LLC

  
	
  Signature of Authorized Signatory of Purchaser:

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  
	
  Email Address of Purchaser:

  	
   

  
					

 

Address
for Notice of Purchaser:

ACM
SPV, LLC

c/o
ARIS Capital Management, LLC

152
West 57th Street, 19th Floor

New
York, NY 10019

Attn:
Apostolos Peristeris

 

 

Address
for Delivery of Securities for Purchaser (if not same as above):

 

 

New
Principal Amount: $

New
Warrant Shares:

 

11

 

[PURCHASER SIGNATURE PAGES TO CGXP FOURTH AMENDMENT AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated
above.

 

 

	
  Name of Purchaser: Ralph Rabman

  
	
  Signature of Authorized Signatory of Purchaser:

  	
   

  
	
  Name of Authorized Signatory: Ralph Rabman

  
	
  Title of Authorized Signatory:

  	
   

  
	
  Email Address of Purchaser: rrabman@yahoo.com

  
	
   

  
	
  Address for Notice of Purchaser:

  
	
  313 Nicolson Street

  
	
  Brooklyn 0181

  
	
  Gauteng North

  
	
  South Africa

  
			

 

 

Address
for Delivery of Securities for Purchaser (if not same as above):

 

 

New
Principal Amount: $

New
Warrant Shares:

 

12

 

[PURCHASER SIGNATURE PAGES TO CGXP FOURTH AMENDMENT AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated
above.

 

 

	
  Name of Purchaser: CFRR Holdings, LLC

  
	
  Signature of Authorized Signatory of Purchaser:

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  
	
  Email Address of Purchaser:

  	
   

  
	
   

  
	
  Address for Notice of Purchaser:

  
	
  CFRR Holdings, LLC

  
	
  424 Madison Avenue, Suite 800

  
	
  New York, NY 10017

  
	
  Attn: Edward Cullen

  
					

 

 

Address
for Delivery of Securities for Purchaser (if not same as above):

 

 

New
Principal Amount: $

New
Warrant Shares:

 

13

 

[PURCHASER SIGNATURE PAGES TO CGXP FOURTH AMENDMENT AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated
above.

 

 

	
  Name of Purchaser: Bushido Capital Master Fund, LP

  
	
  Signature of Authorized Signatory of Purchaser:

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  
	
  Email Address of Purchaser:

  	
   

  
	
   

  
	
  Address for Notice of Purchaser:

  
	
  Bushido Capital Master Fund, LP

  
	
  145 East 57th Street, 11th Floor

  
	
  New York, NY 10022

  
	
  Attn: Ronald S. Dagar

  
					

 

 

Address
for Delivery of Securities for Purchaser (if not same as above):

 

 

New
Principal Amount: $

New
Warrant Shares:

 

14

 

[PURCHASER
SIGNATURE PAGES TO CGXP FOURTH AMENDMENT AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated
above.

 

 

	
  Name of Purchaser: Pierce Diversified Strategy Master Fund, LLC -
  Series BUS

  
	
  Signature of Authorized Signatory of Purchaser:

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  
	
  Email Address of Purchaser:

  	
   

  
	
   

  
	
  Address for Notice of Purchaser:

  
	
  Pierce Diversified Strategy Master Fund, LLC - Series BUS

  
	
  c/o Bushido Capital

  
	
  145 East 57th Street, 11th Floor

  
	
  New York, NY 10022

  
					

 

 

Address
for Delivery of Securities for Purchaser (if not same as above):

 

 

New
Principal Amount: $

New
Warrant Shares:

 

15

 

[PURCHASER SIGNATURE PAGES TO CGXP FOURTH AMENDMENT AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
by their respective authorized signatories as of the date first indicated
above.

 

 

	
  Name of Purchaser: MIDSUMMER INVESTMENT, LTD.

  
	
  Signature of Authorized Signatory of Purchaser:

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  
	
  Email Address of Purchaser:

  	
   

  
	
   

  
	
  Address for Notice of Purchaser:

  
	
  MIDSUMMER INVESTMENT, LTD.

  
	
  c/o Midsummer Capital

  
	
  295 Madison Avenue, 38th Floor

  
	
  New York, NY 10017

  
	
  Attn: Scott D. Kaufman

  
					

 

 

Address
for Delivery of Securities for Purchaser (if not same as above):

 

 

New
Principal Amount: $

New
Warrant Shares:

 

16

 

Schedule
2

 

Midsummer

 

	
   

  	
   

  	
  Beginning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quarterly

  Redemption

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Rate

  	
   

  	
  Interest

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  
	
  9/30/2008

  	
   

  	
  3,300,000.00

  	
   

  	
  12

  	
  %

  	
  99,000.00

  	
   

  	
  —

  	
   

  	
  3,399,000.00

  	
   

  
	
  12/31/2008

  	
   

  	
  3,399,000.00

  	
   

  	
  12

  	
  %

  	
  101,970.00

  	
   

  	
  —

  	
   

  	
  3,500,970.00

  	
   

  
	
  3/31/2009

  	
   

  	
  3,500,970.00

  	
   

  	
  12

  	
  %

  	
  105,029.10

  	
   

  	
  —

  	
   

  	
  3,605,999.10

  	
   

  
	
  6/30/2009

  	
   

  	
  3,605,999.10

  	
   

  	
  12

  	
  %

  	
  108,179.97

  	
   

  	
  (38,362.33

  	
  )

  	
  3,675,816.74

  	
   

  
	
  9/30/2009

  	
   

  	
  3,675,816.74

  	
   

  	
  12

  	
  %

  	
  110,274.50

  	
   

  	
  (163,039.90

  	
  )

  	
  3,623,051.35

  	
   

  
	
  12/31/2009

  	
   

  	
  3,623,051.35

  	
   

  	
  12

  	
  %

  	
  108,691.54

  	
   

  	
  (86,315.24

  	
  )

  	
  3,645,427.65

  	
   

  
	
  3/31/2010

  	
   

  	
  3,645,427.65

  	
   

  	
  12

  	
  %

  	
  109,362.83

  	
   

  	
  (145,776.85

  	
  )

  	
  3,609,013.63

  	
   

  
	
  6/30/2010

  	
   

  	
  3,609,013.63

  	
   

  	
  12

  	
  %

  	
  108,270.41

  	
   

  	
  (195,647.88

  	
  )

  	
  3,521,636.17

  	
   

  
	
  9/30/2010

  	
   

  	
  3,521,636.17

  	
   

  	
  12

  	
  %

  	
  105,649.09

  	
   

  	
  (232,092.09

  	
  )

  	
  3,395,193.17

  	
   

  
	
  12/31/2010

  	
   

  	
  3,395,193.17

  	
   

  	
  12

  	
  %

  	
  101,855.79

  	
   

  	
  (276,976.01

  	
  )

  	
  3,220,072.95

  	
   

  
	
  3/31/2011

  	
   

  	
  3,220,072.95

  	
   

  	
  12

  	
  %

  	
  96,602.19

  	
   

  	
  (934,122.70

  	
  )

  	
  2,382,552.44

  	
   

  
	
  6/30/2011

  	
   

  	
  2,382,552.44

  	
   

  	
  12

  	
  %

  	
  71,476.57

  	
   

  	
  (546,663.18

  	
  )

  	
  1,907,365.83

  	
   

  
	
  9/30/2011

  	
   

  	
  1,907,365.83

  	
   

  	
  12

  	
  %

  	
  57,220.97

  	
   

  	
  (498,710.27

  	
  )

  	
  1,465,876.54

  	
   

  
	
  12/31/2011

  	
   

  	
  1,465,876.54

  	
   

  	
  12

  	
  %

  	
  43,976.30

  	
   

  	
  (1,509,852.83

  	
  )

  	
  —

  	
   

  

 

Bushido Capital Master Fund

 

	
   

  	
   

  	
  Beginning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quarterly

  Redemption

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Rate

  	
   

  	
  Interest

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  
	
  9/30/2008

  	
   

  	
  550,916.00

  	
   

  	
  12

  	
  %

  	
  16,527.48

  	
   

  	
  —

  	
   

  	
  567,443.48

  	
   

  
	
  12/31/2008

  	
   

  	
  567,443.48

  	
   

  	
  12

  	
  %

  	
  17,023.30

  	
   

  	
  —

  	
   

  	
  584,466.78

  	
   

  
	
  3/31/2009

  	
   

  	
  584,466.78

  	
   

  	
  12

  	
  %

  	
  17,534.00

  	
   

  	
  —

  	
   

  	
  602,000.79

  	
   

  
	
  6/30/2009

  	
   

  	
  602,000.79

  	
   

  	
  12

  	
  %

  	
  18,060.02

  	
   

  	
  (6,404.37

  	
  )

  	
  613,656.44

  	
   

  
	
  9/30/2009

  	
   

  	
  613,656.44

  	
   

  	
  12

  	
  %

  	
  18,409.69

  	
   

  	
  (27,218.57

  	
  )

  	
  604,847.56

  	
   

  
	
  12/31/2009

  	
   

  	
  604,847.56

  	
   

  	
  12

  	
  %

  	
  18,145.43

  	
   

  	
  (14,409.83

  	
  )

  	
  608,583.16

  	
   

  
	
  3/31/2010

  	
   

  	
  608,583.16

  	
   

  	
  12

  	
  %

  	
  18,257.49

  	
   

  	
  (24,336.61

  	
  )

  	
  602,504.05

  	
   

  
	
  6/30/2010

  	
   

  	
  602,504.05

  	
   

  	
  12

  	
  %

  	
  18,075.12

  	
   

  	
  (32,662.29

  	
  )

  	
  587,916.88

  	
   

  
	
  9/30/2010

  	
   

  	
  587,916.88

  	
   

  	
  12

  	
  %

  	
  17,637.51

  	
   

  	
  (38,746.44

  	
  )

  	
  566,807.95

  	
   

  
	
  12/31/2010

  	
   

  	
  566,807.95

  	
   

  	
  12

  	
  %

  	
  17,004.24

  	
   

  	
  (46,239.55

  	
  )

  	
  537,572.64

  	
   

  
	
  3/31/2011

  	
   

  	
  537,572.64

  	
   

  	
  12

  	
  %

  	
  16,127.18

  	
   

  	
  (155,946.41

  	
  )

  	
  397,753.41

  	
   

  
	
  6/30/2011

  	
   

  	
  397,753.41

  	
   

  	
  12

  	
  %

  	
  11,932.60

  	
   

  	
  (91,262.27

  	
  )

  	
  318,423.74

  	
   

  
	
  9/30/2011

  	
   

  	
  318,423.74

  	
   

  	
  12

  	
  %

  	
  9,552.71

  	
   

  	
  (83,256.81

  	
  )

  	
  244,719.65

  	
   

  
	
  12/31/2011

  	
   

  	
  244,719.65

  	
   

  	
  12

  	
  %

  	
  7,341.59

  	
   

  	
  (252,061.24

  	
  )

  	
  —

  	
   

  

 

Pierce Diversified Fund

 

	
   

  	
   

  	
  Beginning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quarterly

  Redemption

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Rate

  	
   

  	
  Interest

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  
	
  9/30/2008

  	
   

  	
  550,000.00

  	
   

  	
  12

  	
  %

  	
  16,500.00

  	
   

  	
  —

  	
   

  	
  566,500.00

  	
   

  
	
  12/31/2008

  	
   

  	
  566,500.00

  	
   

  	
  12

  	
  %

  	
  16,995.00

  	
   

  	
  —

  	
   

  	
  583,495.00

  	
   

  
	
  3/31/2009

  	
   

  	
  583,495.00

  	
   

  	
  12

  	
  %

  	
  17,504.85

  	
   

  	
  —

  	
   

  	
  600,999.85

  	
   

  
	
  6/30/2009

  	
   

  	
  600,999.85

  	
   

  	
  12

  	
  %

  	
  18,030.00

  	
   

  	
  (6,393.72

  	
  )

  	
  612,636.12

  	
   

  
	
  9/30/2009

  	
   

  	
  612,636.12

  	
   

  	
  12

  	
  %

  	
  18,379.08

  	
   

  	
  (27,173.32

  	
  )

  	
  603,841.89

  	
   

  
	
  12/31/2009

  	
   

  	
  603,841.89

  	
   

  	
  12

  	
  %

  	
  18,115.26

  	
   

  	
  (14,385.87

  	
  )

  	
  607,571.28

  	
   

  
	
  3/31/2010

  	
   

  	
  607,571.28

  	
   

  	
  12

  	
  %

  	
  18,227.14

  	
   

  	
  (24,296.14

  	
  )

  	
  601,502.27

  	
   

  
	
  6/30/2010

  	
   

  	
  601,502.27

  	
   

  	
  12

  	
  %

  	
  18,045.07

  	
   

  	
  (32,607.98

  	
  )

  	
  586,939.36

  	
   

  
	
  9/30/2010

  	
   

  	
  586,939.36

  	
   

  	
  12

  	
  %

  	
  17,608.18

  	
   

  	
  (38,682.01

  	
  )

  	
  565,865.53

  	
   

  
	
  12/31/2010

  	
   

  	
  565,865.53

  	
   

  	
  12

  	
  %

  	
  16,975.97

  	
   

  	
  (46,162.67

  	
  )

  	
  536,678.82

  	
   

  
	
  3/31/2011

  	
   

  	
  536,678.82

  	
   

  	
  12

  	
  %

  	
  16,100.36

  	
   

  	
  (155,687.12

  	
  )

  	
  397,092.07

  	
   

  
	
  6/30/2011

  	
   

  	
  397,092.07

  	
   

  	
  12

  	
  %

  	
  11,912.76

  	
   

  	
  (91,110.53

  	
  )

  	
  317,894.31

  	
   

  
	
  9/30/2011

  	
   

  	
  317,894.31

  	
   

  	
  12

  	
  %

  	
  9,536.83

  	
   

  	
  (83,118.38

  	
  )

  	
  244,312.76

  	
   

  
	
  12/31/2011

  	
   

  	
  244,312.76

  	
   

  	
  12

  	
  %

  	
  7,329.38

  	
   

  	
  (251,642.14

  	
  )

  	
  —

  	
   

  

 

1

 

ACM
SPV

 

	
   

  	
   

  	
  Beginning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quarterly

  Redemption

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Rate

  	
   

  	
  Interest

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  
	
  9/30/2008

  	
   

  	
  179,865.00

  	
   

  	
  12

  	
  %

  	
  5,395.95

  	
   

  	
  —

  	
   

  	
  185,260.95

  	
   

  
	
  12/31/2008

  	
   

  	
  185,260.95

  	
   

  	
  12

  	
  %

  	
  5,557.83

  	
   

  	
  —

  	
   

  	
  190,818.78

  	
   

  
	
  3/31/2009

  	
   

  	
  190,818.78

  	
   

  	
  12

  	
  %

  	
  5,724.56

  	
   

  	
  —

  	
   

  	
  196,543.34

  	
   

  
	
  6/30/2009

  	
   

  	
  196,543.34

  	
   

  	
  12

  	
  %

  	
  5,896.30

  	
   

  	
  (2,090.92

  	
  )

  	
  200,348.72

  	
   

  
	
  9/30/2009

  	
   

  	
  200,348.72

  	
   

  	
  12

  	
  %

  	
  6,010.46

  	
   

  	
  (8,886.42

  	
  )

  	
  197,472.77

  	
   

  
	
  12/31/2009

  	
   

  	
  197,472.77

  	
   

  	
  12

  	
  %

  	
  5,924.18

  	
   

  	
  (4,704.57

  	
  )

  	
  198,692.38

  	
   

  
	
  3/31/2010

  	
   

  	
  198,692.38

  	
   

  	
  12

  	
  %

  	
  5,960.77

  	
   

  	
  (7,945.50

  	
  )

  	
  196,707.65

  	
   

  
	
  6/30/2010

  	
   

  	
  196,707.65

  	
   

  	
  12

  	
  %

  	
  5,901.23

  	
   

  	
  (10,663.70

  	
  )

  	
  191,945.18

  	
   

  
	
  9/30/2010

  	
   

  	
  191,945.18

  	
   

  	
  12

  	
  %

  	
  5,758.36

  	
   

  	
  (12,650.07

  	
  )

  	
  185,053.46

  	
   

  
	
  12/31/2010

  	
   

  	
  185,053.46

  	
   

  	
  12

  	
  %

  	
  5,551.60

  	
   

  	
  (15,096.45

  	
  )

  	
  175,508.61

  	
   

  
	
  3/31/2011

  	
   

  	
  175,508.61

  	
   

  	
  12

  	
  %

  	
  5,265.26

  	
   

  	
  (50,913.93

  	
  )

  	
  129,859.94

  	
   

  
	
  6/30/2011

  	
   

  	
  129,859.94

  	
   

  	
  12

  	
  %

  	
  3,895.80

  	
   

  	
  (29,795.63

  	
  )

  	
  103,960.11

  	
   

  
	
  9/30/2011

  	
   

  	
  103,960.11

  	
   

  	
  12

  	
  %

  	
  3,118.80

  	
   

  	
  (27,181.98

  	
  )

  	
  79,896.93

  	
   

  
	
  12/31/2011

  	
   

  	
  79,896.93

  	
   

  	
  12

  	
  %

  	
  2,396.91

  	
   

  	
  (82,293.84

  	
  )

  	
  —

  	
   

  

 

BCMF
Trustees

 

	
   

  	
   

  	
  Beginning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quarterly

  Redemption

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Rate

  	
   

  	
  Interest

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  
	
  9/30/2008

  	
   

  	
  895,656.00

  	
   

  	
  12

  	
  %

  	
  26,869.68

  	
   

  	
  —

  	
   

  	
  922,525.68

  	
   

  
	
  12/31/2008

  	
   

  	
  922,525.68

  	
   

  	
  12

  	
  %

  	
  27,675.77

  	
   

  	
  —

  	
   

  	
  950,201.45

  	
   

  
	
  3/31/2009

  	
   

  	
  950,201.45

  	
   

  	
  12

  	
  %

  	
  28,506.04

  	
   

  	
  —

  	
   

  	
  978,707.49

  	
   

  
	
  6/30/2009

  	
   

  	
  978,707.49

  	
   

  	
  12

  	
  %

  	
  29,361.22

  	
   

  	
  (10,411.95

  	
  )

  	
  997,656.76

  	
   

  
	
  9/30/2009

  	
   

  	
  997,656.76

  	
   

  	
  12

  	
  %

  	
  29,929.70

  	
   

  	
  (44,250.81

  	
  )

  	
  983,335.66

  	
   

  
	
  12/31/2009

  	
   

  	
  983,335.66

  	
   

  	
  12

  	
  %

  	
  29,500.07

  	
   

  	
  (23,426.90

  	
  )

  	
  989,408.83

  	
   

  
	
  3/31/2010

  	
   

  	
  989,408.83

  	
   

  	
  12

  	
  %

  	
  29,682.26

  	
   

  	
  (39,565.43

  	
  )

  	
  979,525.67

  	
   

  
	
  6/30/2010

  	
   

  	
  979,525.67

  	
   

  	
  12

  	
  %

  	
  29,385.77

  	
   

  	
  (53,100.97

  	
  )

  	
  955,810.47

  	
   

  
	
  9/30/2010

  	
   

  	
  955,810.47

  	
   

  	
  12

  	
  %

  	
  28,674.31

  	
   

  	
  (62,992.32

  	
  )

  	
  921,492.46

  	
   

  
	
  12/31/2010

  	
   

  	
  921,492.46

  	
   

  	
  12

  	
  %

  	
  27,644.77

  	
   

  	
  (75,174.31

  	
  )

  	
  873,962.93

  	
   

  
	
  3/31/2011

  	
   

  	
  873,962.93

  	
   

  	
  12

  	
  %

  	
  26,218.89

  	
   

  	
  (253,531.09

  	
  )

  	
  646,650.72

  	
   

  
	
  6/30/2011

  	
   

  	
  646,650.72

  	
   

  	
  12

  	
  %

  	
  19,399.52

  	
   

  	
  (148,370.35

  	
  )

  	
  517,679.89

  	
   

  
	
  9/30/2011

  	
   

  	
  517,679.89

  	
   

  	
  12

  	
  %

  	
  15,530.40

  	
   

  	
  (135,355.41

  	
  )

  	
  397,854.88

  	
   

  
	
  12/31/2011

  	
   

  	
  397,854.88

  	
   

  	
  12

  	
  %

  	
  11,935.65

  	
   

  	
  (409,790.53

  	
  )

  	
  —

  	
   

  

 

Ralph
Rabman

 

	
   

  	
   

  	
  Beginning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quarterly

  Redemption

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Rate

  	
   

  	
  Interest

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  
	
  9/30/2008

  	
   

  	
  9,923.00

  	
   

  	
  12

  	
  %

  	
  297.69

  	
   

  	
  —

  	
   

  	
  10,220.69

  	
   

  
	
  12/31/2008

  	
   

  	
  10,220.69

  	
   

  	
  12

  	
  %

  	
  306.62

  	
   

  	
  —

  	
   

  	
  10,527.31

  	
   

  
	
  3/31/2009

  	
   

  	
  10,527.31

  	
   

  	
  12

  	
  %

  	
  315.82

  	
   

  	
  —

  	
   

  	
  10,843.13

  	
   

  
	
  6/30/2009

  	
   

  	
  10,843.13

  	
   

  	
  12

  	
  %

  	
  325.29

  	
   

  	
  (115.35

  	
  )

  	
  11,053.07

  	
   

  
	
  9/30/2009

  	
   

  	
  11,053.07

  	
   

  	
  12

  	
  %

  	
  331.59

  	
   

  	
  (490.26

  	
  )

  	
  10,894.41

  	
   

  
	
  12/31/2009

  	
   

  	
  10,894.41

  	
   

  	
  12

  	
  %

  	
  326.83

  	
   

  	
  (259.55

  	
  )

  	
  10,961.69

  	
   

  
	
  3/31/2010

  	
   

  	
  10,961.69

  	
   

  	
  12

  	
  %

  	
  328.85

  	
   

  	
  (438.35

  	
  )

  	
  10,852.19

  	
   

  
	
  6/30/2010

  	
   

  	
  10,852.19

  	
   

  	
  12

  	
  %

  	
  325.57

  	
   

  	
  (588.31

  	
  )

  	
  10,589.45

  	
   

  
	
  9/30/2010

  	
   

  	
  10,589.45

  	
   

  	
  12

  	
  %

  	
  317.68

  	
   

  	
  (697.89

  	
  )

  	
  10,209.24

  	
   

  
	
  12/31/2010

  	
   

  	
  10,209.24

  	
   

  	
  12

  	
  %

  	
  306.28

  	
   

  	
  (832.86

  	
  )

  	
  9,682.66

  	
   

  
	
  3/31/2011

  	
   

  	
  9,682.66

  	
   

  	
  12

  	
  %

  	
  290.48

  	
   

  	
  (2,808.88

  	
  )

  	
  7,164.26

  	
   

  
	
  6/30/2011

  	
   

  	
  7,164.26

  	
   

  	
  12

  	
  %

  	
  214.93

  	
   

  	
  (1,643.80

  	
  )

  	
  5,735.39

  	
   

  
	
  9/30/2011

  	
   

  	
  5,735.39

  	
   

  	
  12

  	
  %

  	
  172.06

  	
   

  	
  (1,499.61

  	
  )

  	
  4,407.85

  	
   

  
	
  12/31/2011

  	
   

  	
  4,407.85

  	
   

  	
  12

  	
  %

  	
  132.24

  	
   

  	
  (4,540.08

  	
  )

  	
  —

  	
   

  

 

2

 

CFRR
Holdings

 

	
   

  	
   

  	
  Beginning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quarterly

  Redemption

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Rate

  	
   

  	
  Interest

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  
	
  9/30/2008

  	
   

  	
  13,640.00

  	
   

  	
  12

  	
  %

  	
  409.20

  	
   

  	
  —

  	
   

  	
  14,049.20

  	
   

  
	
  12/31/2008

  	
   

  	
  14,049.20

  	
   

  	
  12

  	
  %

  	
  421.48

  	
   

  	
  —

  	
   

  	
  14,470.68

  	
   

  
	
  3/31/2009

  	
   

  	
  14,470.68

  	
   

  	
  12

  	
  %

  	
  434.12

  	
   

  	
  —

  	
   

  	
  14,904.80

  	
   

  
	
  6/30/2009

  	
   

  	
  14,904.80

  	
   

  	
  12

  	
  %

  	
  447.14

  	
   

  	
  (158.56

  	
  )

  	
  15,193.38

  	
   

  
	
  9/30/2009

  	
   

  	
  15,193.38

  	
   

  	
  12

  	
  %

  	
  455.80

  	
   

  	
  (673.90

  	
  )

  	
  14,975.28

  	
   

  
	
  12/31/2009

  	
   

  	
  14,975.28

  	
   

  	
  12

  	
  %

  	
  449.26

  	
   

  	
  (356.77

  	
  )

  	
  15,067.77

  	
   

  
	
  3/31/2010

  	
   

  	
  15,067.77

  	
   

  	
  12

  	
  %

  	
  452.03

  	
   

  	
  (602.54

  	
  )

  	
  14,917.26

  	
   

  
	
  6/30/2010

  	
   

  	
  14,917.26

  	
   

  	
  12

  	
  %

  	
  447.52

  	
   

  	
  (808.68

  	
  )

  	
  14,556.10

  	
   

  
	
  9/30/2010

  	
   

  	
  14,556.10

  	
   

  	
  12

  	
  %

  	
  436.68

  	
   

  	
  (959.31

  	
  )

  	
  14,033.47

  	
   

  
	
  12/31/2010

  	
   

  	
  14,033.47

  	
   

  	
  12

  	
  %

  	
  421.00

  	
   

  	
  (1,144.83

  	
  )

  	
  13,309.63

  	
   

  
	
  3/31/2011

  	
   

  	
  13,309.63

  	
   

  	
  12

  	
  %

  	
  399.29

  	
   

  	
  (3,861.04

  	
  )

  	
  9,847.88

  	
   

  
	
  6/30/2011

  	
   

  	
  9,847.88

  	
   

  	
  12

  	
  %

  	
  295.44

  	
   

  	
  (2,259.54

  	
  )

  	
  7,883.78

  	
   

  
	
  9/30/2011

  	
   

  	
  7,883.78

  	
   

  	
  12

  	
  %

  	
  236.51

  	
   

  	
  (2,061.34

  	
  )

  	
  6,058.96

  	
   

  
	
  12/31/2011

  	
   

  	
  6,058.96

  	
   

  	
  12

  	
  %

  	
  181.77

  	
   

  	
  (6,240.73

  	
  )

  	
  —

  	
   

  

 

3

 

Schedule 8 – New Warrant Shares

 

	
   

  	
   

  	
   

  	
   

  	
  25%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Warrants as of

  	
   

  	
  additional

  	
   

  	
   

  	
   

  	
  Total Warrants

  	
   

  
	
  Additional Warrants Debentures

  	
   

  	
  6/30/2008

  	
   

  	
  warrants

  	
   

  	
  Ratchet warrants

  	
   

  	
  After Amendment

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Midsummer

  	
   

  	
  2,284,026

  	
   

  	
  1,031,250

  	
   

  	
  456,805

  	
   

  	
  3,772,081

  	
   

  
	
  Bushido Capital Master Fund

  	
   

  	
  381,306

  	
   

  	
  172,161

  	
   

  	
  76,261

  	
   

  	
  629,728

  	
   

  
	
  Pierce Diversified Fund

  	
   

  	
  380,671

  	
   

  	
  171,875

  	
   

  	
  76,134

  	
   

  	
  628,680

  	
   

  
	
  ACM SPV

  	
   

  	
  124,491

  	
   

  	
  56,208

  	
   

  	
  24,898

  	
   

  	
  205,597

  	
   

  
	
  BCFM Trustees

  	
   

  	
  619,911

  	
   

  	
  279,893

  	
   

  	
  123,982

  	
   

  	
  1,023,786

  	
   

  
	
  Ralph Rabman

  	
   

  	
  6,867

  	
   

  	
  3,101

  	
   

  	
  1,373

  	
   

  	
  11,341

  	
   

  
	
  CFRR Holdings

  	
   

  	
  9,438

  	
   

  	
  4,263

  	
   

  	
  1,888

  	
   

  	
  15,588

  	
   

  
	
   

  	
   

  	
  3,806,710

  	
   

  	
  1,718,750

  	
   

  	
  761,342

  	
   

  	
  6,286,802

  	
   

  

 

1

 

Schedule 9 – Net Revenues Apportionment

 

	
   

  	
   

  	
  Debt

  	
   

  	
  Cash Receipt

  	
   

  
	
   

  	
   

  	
  6/30/2008

  	
   

  	
  Application

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Longview Fund

  	
   

  	
  2,057,189

  	
   

  	
  23.91

  	
  %

  
	
  Longview Equity
  Fund

  	
   

  	
  550,000

  	
   

  	
  6.39

  	
  %

  
	
  Alpha Capital

  	
   

  	
  495,000

  	
   

  	
  5.75

  	
  %

  
	
  Midsummer

  	
   

  	
  3,300,000

  	
   

  	
  38.36

  	
  %

  
	
  Bushido Capital
  Master Fund

  	
   

  	
  550,916

  	
   

  	
  6.40

  	
  %

  
	
  Pierce
  Diversified Fund

  	
   

  	
  550,000

  	
   

  	
  6.39

  	
  %

  
	
  ACM SPV

  	
   

  	
  179,865

  	
   

  	
  2.09

  	
  %

  
	
  BCFM Trustees

  	
   

  	
  895,656

  	
   

  	
  10.41

  	
  %

  
	
  Ralph Rabman

  	
   

  	
  9,923

  	
   

  	
  0.12

  	
  %

  
	
  CFRR Holdings

  	
   

  	
  13,640

  	
   

  	
  0.16

  	
  %

  
	
   

  	
   

  	
  8,602,189

  	
   

  	
  100.00

  	
  %

  

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]