Document:

Unassociated Document

PROMISSORY NOTE

 

	 $131,000.00	 Louisville, Kentucky 
 January 18, 2012

 

 

FOR VALUE RECEIVED, NTS/VIRGINIA DEVELOPMENT COMPANY, a Virginia corporation (the “Borrower”), with an address at 10172 Linn Station Road, Louisville, Kentucky 40223, promises to pay to the order of NTS FINANCIAL PARTNERSHIP, a Kentucky general partnership (the “Lender”), in lawful money of the United States of America in immediately available funds at its offices located at 10172 Linn Station Road, Louisville, Kentucky 40223, or at such other location as the Lender may designate from time to time, the principal sum of ONE HUNDRED THIRTY ONE THOUSAND DOLLARS AND NO CENTS ($131,000.00) (the “Loan”), together with interest accruing on the outstanding principal balance from the date hereof, as provided below:

1.           Interest Rate.  The principal balance of the Loan will bear interest at a fixed rate per annum (calculated on the basis of the actual number of days that principal is outstanding over a year of 360 days) equal to five and thirty-four one-hundredths percent (5.34%) per annum (the “Fixed Rate”).

In no event will the rate of interest hereunder exceed the maximum rate allowed by law.

2.           Payment Terms.  Interest shall be due and payable commencing on the first day of each month beginning February 1, 2012 until April 30, 2012 on which date all outstanding principal and accrued interest shall be due and payable in full (the “Maturity Date”).  Payments received will be applied to charges, fees and expenses (including attorneys’ fees), accrued interest and principal in any order the Lender may choose, in its sole discretion.

3.           Late Payments; Default Rate.  If a payment is more than 15 days late, the Borrower shall also pay to the Lender a late charge equal to 5% of the unpaid portion of the payment or $100, whichever is greater (the “Late Charge”).  Such 15 day period shall not be construed in any way to extend the due date of any such payment.  Upon maturity, whether by acceleration, demand or otherwise, and at the option of the Lender upon the occurrence of any Event of Default (as hereinafter defined) and during the continuance thereof, this Note shall bear interest at a rate per annum (calculated on the basis of the actual number of days that principal is outstanding over a year of 360 days) which shall be four percentage points (4%) in excess of the Fixed Rate in effect from time to time but not more than the maximum rate allowed by law (the “Default Rate”).  The Default Rate shall continue to apply whether or not judgment shall be entered on this Note.  Both the Late Charge and the Default Rate are imposed as liquidated damages for the purpose of defraying the Lender’s expenses incident to the handling of delinquent payments, but are in addition to, and not in lieu of, the Lender’s exercise of any rights and remedies hereunder, under the Loan Documents or under applicable law, and any fees and expenses of any agents or attorneys which the Lender may employ.  In addition, the Default Rate reflects the increased credit risk to the Lender of carrying a loan that is in default.  The Borrower agrees that the Late Charge and Default Rate are reasonable forecasts of just compensation for

  

  

  

anticipated and actual harm incurred by the Lender, and that the actual harm incurred by the Lender cannot be estimated with certainty and without difficulty.

4.           Prepayment.  The indebtedness evidenced by this Note may be prepaid in whole or in part at any time without penalty or premium.

5.           Events of Default.  The occurrence of any of the following events will be deemed to be an “Event of Default” under this Note:

(i)           Borrower fails to make any payment when due hereunder, or fails to otherwise comply with any term or provision of this Note, and such failure is not cured within any applicable cure period or fails to comply;

(ii)           The filing by or against Borrower of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against any Obligor, such proceeding is not dismissed or stayed within 30 days of the commencement thereof);

(iii)           Any assignment by Borrower for the benefit of creditors, or any levy, garnishment, attachment or similar proceeding is instituted against any property of Borrower;

(iv)           A judgment or judgments are entered against Borrower, Borrower defaults in the payment of any other debts or there is a material adverse change in the financial condition of Borrower, or the Lender in good faith believes the prospects for repayment of this Note have been impaired; and

(v)           Any material statement made to the Lender about Borrower, or about Borrower’s financial condition, or about any collateral securing this Note is false or misleading.

Upon the occurrence of an Event of Default: (a) in an Event of Default specified in clauses (ii) or (iii) above shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder shall be immediately due and payable without demand or notice of any kind; (b) if any other Event of Default shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder, at the option of the Lender and without demand or notice of any kind may be accelerated and become immediately due and payable; (c) at the option of the Lender, this Note will bear interest at the Default Rate from the date of the occurrence of the Event of Default; and (d) the Lender may exercise from time to time any of the rights and remedies available to the Lender under applicable law.

6.           Indemnity.  The Borrower agrees to indemnify each of the Lender, each legal entity, if any, who controls, is controlled by or is under common control with the Lender, and each of their respective directors, officers and employees (the “Indemnified Parties”), and to hold each Indemnified Party harmless from and against any and all claims, damages, losses, liabilities and expenses (including all fees and charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation therefor) which any

  

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Indemnified Party may incur or which may be asserted against any Indemnified Party by any person, entity or governmental authority (including any person or entity claiming derivatively on behalf of the Borrower), in connection with or arising out of or relating to the matters referred to in this Note whether (a) arising from or incurred in connection with any breach of a representation, warranty or covenant by the Borrower, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before any court or governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified Party’s gross negligence or willful misconduct. The indemnity agreement contained in this Section shall survive the termination of this Note, payment of any amounts hereunder and the assignment of any rights hereunder.  The Borrower may participate at its expense in the defense of any such auction or claim.

7.           Miscellaneous. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (“Notices”) must be in writing (except as may be agreed otherwise above with respect to borrowing requests) and will be effective upon receipt. Notices may be given in any manner to which the parties may separately agree, including electronic mail.  Without limiting the foregoing, first-class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices.  Regardless of the manner in which provided, Notices may be sent to a party’s address as set forth above or to such other address as any party may give to the other for such purpose in accordance with this section.  No delay or omission on the Lender’s part to exercise any right or power arising hereunder will impair any such right or power.  The Lender’s rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which the Lender may have under other agreements, at law or in equity.  No modification, amendment or waiver of, or consent to any departure by the Borrower from, any provision of this Note will be effective unless made in a writing signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  The Borrower agrees to pay on demand, to the extent permitted by law, all costs and expenses incurred by the Lender in the enforcement of its rights in this Note and in any security therefor, including without limitation reasonable fees and expenses of the Lender’s counsel.  If any provision of this Note is found to be invalid, illegal or unenforceable in any respect by a court, all the other provisions of this Note will remain in full force and effect.  The Borrower and all other makers and indorsers of this Note hereby forever waive presentment, protest, notice of dishonor and notice of non-payment.  The Borrower also waives all defenses based on suretyship or impairment of collateral.  If this Notice is executed by more than one Borrower, the obligations of such persons or entities hereunder will be joint and several.  This Note shall bind the Borrower and its heirs, executors, administrators, successors and assigns, and the benefits hereof shall inure to the benefit of the Lender and its successors and assigns; provided, however, that the Borrower may not assign this Note in whole or in part without the Lender’s written consent and the Lender at any time may assign this Note in whole or in part.

This Note has been delivered to and accepted by the Lender and will be deemed to be made in the State where the Lender’s office indicated above is located.  This Note will be interpreted and the rights and liabilities of the Lender and the Borrower determined in

  

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accordance with the laws of the State where the Lender’s office indicated above is located, excluding its conflict of laws rules. The Borrower hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district where the Lender’s office indicated above is located; provided that nothing contained in this Note will prevent the Lender from bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security or against any property of the Borrower within any other county, state or other foreign or domestic jurisdiction.  The Borrower acknowledges and agrees that the venue provided above is the most convenient forum for both the Lender and the Borrower. The Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note.

8.           Waiver of Jury Trial.  The Borrower irrevocably waives any and all right it may have to a trial by jury in any action, proceeding or claim of any nature relating to this Note, any documents executed in connection with this Notice or any transaction contemplated in any of such documents.  The Borrower acknowledges that the foregoing waiver is knowing and voluntary.

The Borrower acknowledges that it has read and understands all of the provisions of this Note, including the waiver of jury trial, and has been advised by counsel as necessary or appropriate.

WITNESS the due execution hereof by an authorized officer of Borrower, with the intent to be legally bound hereby.

 

 

	 	
NTS/VIRGINIA DEVELOPMENT COMPANY,

a Virginia corporation

 

 

By:           /s/ Gregory A. Wells         

Name:      Gregory A. Wells

Title:        Executive Vice President

 

 

4exv10w3

 Exhibit 10.3

Text Marked By [* * *] Has Been Omitted Pursuant To A Request For Confidential Treatment And Was

Filed Separately With The Securities And Exchange Commission.

RXi Pharmaceuticals Corporation

One Innovation Drive

Worcester, MA 01605

Attention: Tod Woolf, President and CEO

Re: Patent Rights Based On Certain Patent Applications To Be Filed Claiming The Benefit Of One Or
More Of USSN 10/940892, 10/7 14333, 60/502050 and 60/426 137

Ladies and Gentlemen:

     In connection with the future filing of U.S. patent applications by Dharmacon, Inc., a
Delaware corporation (“Dharmacon”) claiming the benefit of one or more of U.S. applications
10/940892, 10/714333, 60/502050 and 60/426137 (the ‘Priority Applications”), Dharmacon and RXi
agree as follows:

	 	1.	 	RXi shall pay Dharmacon $150,000 as a non-refundable (except if the 12 applications
are not able to be filed, the pro rata amount shall be refundable) fee within 30 days of
the signing of this letter. The $150,000 shall be credited towards the $[***] fee per
application filed between October 24, 2007 and October 31, 2007 that meets the criteria
of paragraph 3, below. RXi shall pay Dharmacon a further non-refundable fee of $[***] per
additional (beyond the first 12 cited above) application filed between October 24, 2007
and October 31, 2007 that meets the criteria of paragraph 3, below, payable within thirty
(30) days of RXi’s receipt of notice of the filing of the respective First Round
Application. If it comes to pass that the U S Patent And Trademark Office allows claims
to additional gene targets to be filed and prosecuted subsequent to Nov 1st
2007, then RXi shall have the right to add additional human gene targets under the terms
of this agreement for an initial fee of $[***] per additional human gene target for the
First Round Application as specified herein and under the additional terms and
restrictions set forth in this agreement.
	 
	 	2.	 	At or before 3 PM MDT on October 26, 2007, RXi shall transmit to Dharmacon a list
of no more than fifty (50) proposed human gene targets (by name and NCBI accession
number) in priority ranking order. Dharmacon shall promptly inform RXi which of the
proposed gene targets are excluded because of Dharmacon commitments to third

 

 

	 	 	 	parties (“Excluded Targets”) or because Dharmacon has already filed, prior to October
24, 2007, a U S patent application claiming priority from one or more of the Priority
Applications directed to sequences for silencing that human gene target (“Already Filed
Targets”).
	 
	 	3.	 	For each human gene target proposed by RXi which is not an Excluded Target or an
Already Filed Target, Dharmacon shall use commercially reasonable efforts (following
RXi’s prioritization) to file a target-specific application before November 1, 2007
directed at multiple sequences disclosed, but not claimed, in at least one of the
Priority Applications. Dharmacon shall report promptly to RXi which such patent
applications (First Round Applications) have been filed and, for each, the serial number
and filing date. After Dharmacon’s receipt of the $[***] fee per First Round
Application, Dharmacon shall transmit to RXi a copy of the respective First Round
Application Information transmitted by either party to the other under Paragraphs 2 and 3
shall be subject to an obligation of non-disclosure in effect until December 31, 2008,
excluding that which is in the public domain, but otherwise shall be without obligation
except as expressly provided in this agreement.
	 
	 	4.	 	Each human gene target on which a First Round Application has been filed shall
remain subject to the following terms so long as the First Round Application and any
divisional or continuation of that First Round Application remains pending or, if issued,
remains in force, provided, however, that RXi may remove any First Round Application (and
the associated human gene target) from the coverage of these terms by thirty days notice
to Dharmacon.
	 
	 	5.	 	So long as a human gene target is subject to these terms, RXi shall promptly
reimburse Dharmacon for: (a) any and all out-of-pocket expenses (including outside
attorney fees and USPTO fees) associated with the prosecution (but not filing which would
have already been paid as part of the fees specified above) of each respective First
Round Application and (b) any and all out-of-pocket expenses (including outside attorneys
fees and USPTO fees) associated with the filing and prosecution of each divisional or
continuation of each respective First Round Application which RXi either proposes (and
Dharmacon accepts) or which Dharmacon proposes (and RXi accepts). Neither party shall be
obligated to file or support more than three pending applications at any one time on the
same human gene target.
	 
	 	6.	 	So long as a human gene target is subject to these terms, RXi shall have a
non-exclusive license under the respective First Round Application and all continuations
and divisionals of it to make, use and sell siRNA (defined herein as RNAi having a
duplexed region shorter than 25 nucleotides) compositions and methods for all purposes
including, without limitation, research, diagnostics, the development of therapeutics
(subject to the progress payments of Paragraph 10) and therapeutics compositions and
methods (subject to the progress payments of Paragraph 10 having been paid). Each such
license shall be without the right to sublicense or assign, except as provided in
paragraphs 8 and 9, below. Furthermore, so long as a human gene target is subject to
these terms, RXi shall have an exclusive license

 

 

	 	 	 	under the respective First Round Application and all continuations and divisionals of it
to make, use and sell RNAi compositions and methods for RNAi compounds having a duplexed
region 25 nucleotides or longer that cleave the respective target mRNA and specifically
excludes antigomers, for all purposes including, without limitation, research,
diagnostics, the development of therapeutics (subject to the progress payments of
Paragraph 10) and therapeutics compositions and methods (subject to the progress
payments of Paragraph 10 having been paid); provided, however, that for RNAi compounds
having a duplexed region of 25 nucleotides or longer, Dharmacon reserves a non-exclusive
right to make, use and sell for research purposes. Each such license shall be without
the right to sublicense or assign, except as provided in paragraphs 8 and 9, below.
	 
	 	7.	 	Dharmacon shall consult with, and give reasonable consideration to the comments and
recommendations of RXi in the prosecution of each First Round Application subject to this
agreement and in the selection, filing and prosecution of divisional applications and
continuation applications claiming priority from each such First Round Application
(“Subsequent Round Applications”). To the extent that RXi has made a progress payment
under paragraph 10 with respect to a particular sequence which is within the scope of a
First Round Application as filed which has been subject to a restriction requirement,
Dharmacon shall either (after consultation with RXi) elect a species which covers RXi’s
sequence of interest or, if the period for such election has passed, file a divisional
application directed to a species which covers RXi’s sequence of interest.
	 
	 	8.	 	RXi may not sublicense any rights under this agreement to any third party, except
for the limited purpose of evaluating siRNA composition made by RXi for possible
acquisition of rights consistent with the terms of paragraph 9, below.
	 
	 	9.	 	RXi may not assign its rights under this agreement to any third party (including
without limitation, a change of control in RXi), in whole or in part, except:

	 	a.	 	With respect to a particular human gene target which is subject to this
Agreement, RXi may assign its license rights to a third party upon paying Dharmacon
a non-refundable, non-creditable fee of [***], provided that RXi shall remain
liable (along with the third party assignee) to reimburse Dharmacon for patent
filing and prosecution costs unless and until Dharmacon is notified by RXi that the
license rights with respect to that human gene target have been terminated.
	 
	 	b.	 	With respect to all of RXi’s license rights (excluding those assigned
to other third parties under subparagraph 9(a)), RXi may assign all of its rights
hereunder in case of a merger or acquisition of its RNAi therapeutics program to a
single third party (or such rights may survive a change of control in RXi).

 

 

	 	c.	 	If such merger or acquisition involves payment to RXi or RXi
shareholders of $[***] or more by a company worth [***] dollars or more, RXi pays
Dharmacon $[***].

	 	10.	 	If RXi or a permitted assignee under subparagraph 9(a) or 9(b) achieves any of the
following milestones with respect to the therapeutic development of an siRNA composition
covered by any of: a) a First Round Application as filed or b) a pending continuation or
division of a First Round Application or c) any patent issuing on either, then Dharmacon
shall be paid the milestone payment indicated below (for which RXi shall remain
responsible, jointly and severally with the permitted assignee unless Dharmacon has
expressly accepted the assignee as solely responsible):

	 	a.	 	Approval of IND or equivalent $[***]
	 
	 	b.	 	First dosing in a Phase II study $[***]
	 
	 	c.	 	First dosing in a Phase III study $[***]
	 
	 	d.	 	Regulatory approval (USA) $[***]
	 
	 	e.	 	Regulatory approval (EU) $[***]

     Each of milestone payments (a) through (e) shall be payable only once per therapeutic
indication for any particular human gene target.

	 	11.	 	For sales of siRNA compositions covered by a claim of an issued patent in the
country of manufacture, use or sale, RXi and its permitted assignee shall pay Dharmacon a
royalty of one half percent (0.5%) of Net Sales (subject to standard definitions) for an
exclusive license or one quarter percent (0.25%) for a non-exclusive license. RXi shall be
permitted to downgrade to a nonexclusive license at it sole discretion.
	 
	 	12.	 	Upon payment of either Regulatory Approval milestone payment with respect to a
particular human gene target and indication, RXi or its permitted assignee may notify
Dharmacon which particular sequence (among those disclosed in the respective First Round
Application) is the basis for the approval and, then and only then, the licenses provided
in this Agreement shall become exclusive for nucleic acids compositions containing that
sequence, directed against that human gene target for that clinical indication (subject
to whatever rights Dharmacon may have granted to third parties during the period of
non-exclusivity). Within the scope of such exclusivity, RXi or the permitted licensee
shall have the right to participate (at its own expense) in any enforcement of
Dharmacon’s patent rights on such basis as the parties then reasonably determine.

 

 

	 	13.	 	No license is granted by either party to the other under any invention, patent
application or patent, nor are any rights granted by either party to the other expressly
or by implication with respect to any trade secret or other propriety right by virtue of
this Letter Agreement.
	 
	 	14.	 	While the parties shall negotiate in good faith a restated License Agreement to
memorialize the terms of this Letter Agreement in greater detail, it is the intention of
the parties that this Letter Agreement be a binding agreement, enforceable as of October
26, 2007 (the “Effective Date”). The parties may address, but undertake no obligation to
address intellectual property in the License Agreement which is not addressed in this
Letter Agreement.
	 
	 	15.	 	This Letter Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Massachusetts irrespective of conflict of laws principles.
Any legal action that arises out of or in connection with its provisions shall be brought
solely in the Superior Court of Suffolk County, Massachusetts unless subject to the
exclusive jurisdiction of federal courts, in which event it shall be brought in the
federal district of Massachusetts.
	 
	 	16.	 	This letter agreement may be executed via facsimile or electronic means, and each
fully-signed copy exchanged by the parties shall be deemed to be an original of the same
instrument and agreement.

	 	 	 	 	 
	 	Dharmacon, Inc.

 	 
	 	By:  	/s/ Mitchell Kennedy
 	 
	 	 	Mitchell Kennedy, General Manager 	 
	 	 	Date: October 29, 2007	 
	 
	 	RXi Pharmaceuticals Corporation

 	 
	 	By:  	/s/ Tod Woolf
 	 
	 	 	Tod Woolf, Ph.D. 	 
	 	 	President and CEO

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