Document:

blku_ex1035.htm

Exhibit 10.35

 

EIGHTH AMENDMENT AND RESTATEMENT OF

LOAN AGREEMENT AND PROMISSORY NOTE

 

THIS EIGHTH AMENDMENT AND RESTATEMENT OF LOAN AGREEMENT AND PROMISSORY NOTE (“Amendment and Note Restatement”) by and among BLINK COUTURE, INC., a Delaware corporation (the "Maker") and CHARLES C. STEPHENSON, JR. and CYNTHIA S. FIELD (the “Payees”), entered into as of January 31, 2014.   Each of the Maker and the Payees are referred to herein as a “Party”, and collectively as the “Parties.”

WHEREAS, on January 31, 2009, the Maker entered into a Loan Agreement and Promissory Note (the “Original Note”) with Fountainhead Capital Management Limited (“Fountainhead”), which Original Note was amended by a First Amendment to Loan Agreement and Promissory Note, dated as of April 30, 2009, and subsequently amended by a Second Amendment to Loan Agreement and Promissory Note, dated as of July 31, 2010, and then further amended by a Third Amendment to Loan Agreement and Promissory Note, dated as of October 31, 2009, in each case increasing the principal amount of the Original Note (collectively referred to hereafter as the “Fountainhead Note Amendments”) and the Original Note; and

WHEREAS, the Original Note and the Fountainhead Note Amendments were further amended and restated by the Fourth Amendment (defined hereafter), the Fifth Amendment (defined hereafter), the Sixth Amendment (defined hereafter), and the Seventh Amendment (defined hereafter);  and

WHEREAS, on December 29, 2009, in connection with certain transactions, Fountainhead assigned all of its right, title and interest in and to the Original Note, along with the Fountainhead Note Amendments including, without limitation, the payment of all amounts due and payable thereunder, to Regent Private Capital, LLC (“Regent”); and

WHEREAS, pursuant to the provisions of the Original Note and the Fountainhead Note Amendments, all outstanding principal and accrued interest thereon became due and payable on or before January 31, 2010; and

WHEREAS, the Maker did not repay all of the outstanding principal and accrued interest on or before January 31, 2010; and

WHEREAS, Regent and the Maker entered into a Fourth Amendment and Restatement of Loan Agreement to Promissory Note (the “Fourth Amendment”) to, among other things, further extend the maturity date of the of the Original Note (as further amended, from time to time, being hereinafter referred to as the “Note”) to January 31, 2011, and to increase the principal sum due and payable under the Note; and

WHEREAS, Regent and Maker, during 2010, also entered into three supplements to the Fourth Amendment, further increasing the principal sum due and payable under the Note; and

 WHEREAS, the Maker did not repay all of the outstanding principal and accrued interest on or before January 31, 2011; and

WHEREAS, Regent elected not to declare the Maker in default under the terms of the Note, as permitted pursuant to Paragraph 5 of the Original Note and Paragraph 6 of the Fourth Amendment, but instead entered into a Fifth Amendment and Restatement of Loan Agreement to Promissory Note (the “Fifth Amendment”) to, among other things, further extend the maturity date of the Note to January 31, 2012, and to increase the principal sum due and payable under the Note; and

WHEREAS, Regent and Maker, during 2011, also entered into three supplements to the Fifth Amendment, further increasing the principal sum due and payable under the Note; and

  

 

  

 

WHEREAS, the Maker did not repay all of the outstanding principal and accrued interest on or before January 31, 2012; and

WHEREAS, Regent elected not to declare the Maker in default under the terms of the Note, as permitted pursuant to Paragraph 5 of the Original Note and Paragraph 6 of the Fifth Amendment, but instead entered into a Sixth Amendment and Note Restatement (“Sixth Amendment”) to, among other things, further extend the maturity date of the Note to January 31, 2013, and to increase the principal sum due and payable under the Note; and

WHEREAS, Regent and Maker, during 2012, also entered into four supplements to the Sixth Amendment, further increasing the principal sum due and payable under the Note; and

WHEREAS, effective as of December 31, 2012, Regent assigned all of its right, title and interest in and to the Note to the Payees, pursuant to the Assignments annexed hereto as Exhibit A and Exhibit B, respectively; and

WHEREAS, the Payees, in connection with such assignment, entered into a Seventh Amendment and Note Restatement (“Seventh Amendment”) to, among other things, further extend the maturity date of the Note to January 31, 2014, and to increase the principal sum due and payable under the Note; and

WHEREAS, the Maker did not repay all of the outstanding principal and accrued interest on or before January 31, 2014; and

WHEREAS, the Payees elected not to declare the Maker in default under the terms of the Note, as permitted pursuant to Paragraph 5 of the Original Note and Paragraph 6 of the Seventh Amendment, but instead, have agreed to enter into this Amendment and Note Restatement to, among other things, further extend the maturity date of the Note to January 31, 2015, and to increase the principal sum due and payable under the Note;

NOW THEREFORE, in consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

1.           Extension of Maturity Date.  Effective as of January 31, 2014, the maturity date of the Original Note, which was January 31, 2010, and which was previously extended to January 31, 2011, pursuant to the terms and conditions of the Fourth Amendment, and to January 31, 2012, pursuant to the terms and conditions of the Fifth Amendment, and to January 31, 2013, pursuant to the terms and conditions of the Sixth Amendment, and to January 31, 2014, pursuant to the terms and conditions of the Seventh Amendment, shall be extended through and until January 31, 2015, upon which date the Maker unconditionally promises to pay to the order of the Payees, the principal sum then outstanding under this Note together with accrued interest thereon.

2.  Outstanding Principal and Accrued Interest.  The Parties hereby agree that at January 31, 2014, the outstanding principal and accrued but unpaid interest owed to the Payees is as follows:

 

	
Payee

	 	
Outstanding Principal

	 	 	
Accrued Interest

	 
	
Charles C. Stephenson, Jr.

	 	$	192,898.99	 	 	$	35,730	 
	
Cynthia S. Field

	 	$	192,898.99	 	 	$	35,730	 

  

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3.  Interest.  Unpaid principal of this Note shall bear interest (computed on the basis of a year of 365 days of actual days elapsed) of 6% per annum in cash or kind, from the date hereof until such principal is paid.

 

4.   Prepayment.  The Maker shall have the option to prepay any or all of the principal amount due here­under, without penalty, at any time, together with interest accrued thereon to the date of such prepayment, provided, however, that any such payments shall be made to both Payees on a pari pasu basis.

 

5.  Place of Payment.  All amounts payable hereunder shall be payable to the Payees and delivered c/o Regent Private Capital II, LLC, 5727 S. Lewis Avenue, Suite 210 Tulsa, OK 74105, unless another place of payment shall be specified in writing by either Payee, as applicable.

 

6.  Event of Default.  It shall be an event of default (“Event of Default”), and the then unpaid portion of this Note shall become immediately due and payable, at the election of Payees, upon the occurrence of any of the following events:

 

                       (a) any failure on the part of Maker to make any payment hereunder when due, whether by acceleration or otherwise;

 

                       (b) Maker shall commence (or take any action for the purpose of commencing) any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt, moratorium or similar law or statute; or

 

                       (c) a proceeding shall be commenced against Maker under any bankruptcy, reorganization, arrangement, readjustment of debt, moratorium or similar law or statute and relief is ordered against Maker, or the proceeding is controverted but is not dismissed within sixty (60) days after the commencement thereof.

7.           No Waiver; Remedies.  No failure on the part of the Payees or any other holder(s) of this Note to exercise and no delay in exercising any right, remedy or power hereunder or under any other document or agreement executed in connection herewith shall operate as a waiver thereof, nor shall any single or partial exercise by the Payees or any other holder(s) of this Note of any right, remedy or power hereunder preclude any other or future exercise of any other right, remedy or power.

8.           Enforceability.  This Note shall be binding upon the Maker and the Maker’s successors and assigns.

9.           Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of Delaware, excluding the conflicts of laws principles thereof.

10.          Severability.   In the event that any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part, or in any respect, or in the event that any one or more of the provisions of this Note shall operate, or would prospectively operate, to invalidate this Note, then, and in any such event, such provision or provisions only shall be deemed null and void and of no force or effect and shall not affect any other provision of this Note, and the remaining provisions of this Note shall remain operative and in full force and effect, shall be valid, legal and enforceable, and shall in no way be affected, prejudiced or disturbed thereby.

11.           Usury.  All agreements between the Maker and the Payees, whether now existing or hereafter arising and whether written or oral, are expressly limited so that in no contingency or event whatsoever, whether by acceleration of the maturity of this Note or otherwise, shall the amount paid, or agreed to be paid, to the Maker, or any other holder(s) of this Note, for the use, forbearance or detention of the money to be loaned hereunder or otherwise, exceed the maximum amount permissible under applicable law.

 

  

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12.       Assignment.  Subject to applicable federal and state securities laws, each Payee may assign his or her interest in this Note without first obtaining the consent of the Maker.

13.      Certain Waivers.  EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED HEREIN, THE MAKER, AND ALL OTHERS THAT MAY BECOME LIABLE FOR ALL OR ANY PART OF THE OBLIGATIONS EVIDENCED BY THIS NOTE, HEREBY WAIVES PRESENTMENT, DEMAND, NOTICE OF NONPAYMENT, PROTEST AND ALL OTHER DEMANDS AND NOTICES IN CONNECTION WITH THE DELIVERY, ACCEPTANCE, PERFORMANCE OR ENFORCEMENT OF THIS NOTE, AND DOES HEREBY CONSENT TO ANY NUMBER OF RENEWALS OR EXTENSIONS OF THE TIME OF PAYMENT HEREOF AND AGREE THAT ANY SUCH RENEWALS OR EXTENSIONS MAY BE MADE WITHOUT NOTICE TO ANY SUCH PERSONS AND WITHOUT AFFECTING THEIR LIABILITY HEREIN AND DO FURTHER CONSENT TO THE RELEASE OF ANY PERSON LIABLE WITH RESPECT TO FAILURE TO GIVE SUCH NOTICE, (ALL WITHOUT AFFECTING THE LIABILITY OF THE OTHER PERSONS, FIRMS, OR CORPORATIONS LIABLE FOR THE PAYMENT OF THIS NOTE).

14.      Waiver of Jury Trial.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE MAKER HEREBY KNOWINGLY AND VOLUNTARILY WAIVES TRIAL BY JURY AND THE RIGHT THERETO IN ANY ACTION OR PROCEEDING OF ANY KIND ARISING UNDER OR OUT OF OR OTHERWISE RELATED TO OR CONNECTED WITH THIS NOTE OR ANY RELATED DOCUMENT.

15.  Miscellaneous.  If any payment of principal or interest on this Note shall become due on a Saturday, Sunday, or a public holiday under the laws of the State of Delaware, such payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest in connection with such payment.  Upon payment in full of all aggregate unpaid principal and interest payable hereunder, this Note shall be surrendered to the Maker for cancellation.

 

16.  Fees and Expenses. The Maker shall reimburse the Payees for all fees in connection with the documentation and administration of this Note upon an invoice being provided by the Payees.

 

17.  Entire Agreement.  This Amendment and Note Restatement shall set forth the entire agreement of the Parties with respect to the subject matter contained herein and shall replace all prior agreements and understandings relating to the subject matter contained herein, whether oral or written, including without limitation the Original Note and amendments thereto.

 

Signature Page Follows

  

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IN WITNESS WHEREOF, the Maker has caused this Eighth Amendment and Restatement of Loan Agreement and Promissory Note to be duly executed and delivered as of the day and year first written above.

 

	 	 
BLINK COUTURE, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Lawrence Field	 
	 	 	 
Name: Lawrence Field

	 
	 	 	 
Title: President & CEO

	 
	 	 	 	 

	 	 	 	 
	
 

	
By: 

	/s/ Charles C. Stephenson, Jr.	 
	 	 	 
CHARLES C. STEPHENSON, JR.

	 
	 	 	 	 
	 	 	 	 

	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Cynthia S. Field	 
	 	 	 
CYNTHIA S. FIELD

	 
	 	 	 	 
	 	 	 	 

 

  

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EXHIBIT A

Assignment to Charles C. Stephenson, Jr.

Attached

  

 

  

EXHIBIT B

Assignment to Cynthia S. Field

Attachedonce_ex101.htm

Exhibit 10.1

 

March 12, 2014

Page 1

 

Brighthaven Ventures L.L.C./Islet Sciences, Inc.

 

BINDING LETTER OF INTENT

 

For the Acquisition of Brighthaven Ventures, L.L.C.

 

This Letter of Intent (this “Letter of Intent”) sets forth the agreement of the parties hereto for Islet Sciences, Inc. (together with any newly organized parent company of Islet Sciences, Inc. utilized in a restructuring of Islet Sciences, Inc. or in connection with the transactions contemplated herein, “Islet”) to acquire 100% of the issued and outstanding interests (the “Interests”)_ in Brighthaven Ventures L.L.C., d/b/a BHV Pharma (“BHV”).  As described below, the parties hereby agree to negotiate in good faith to execute definitive agreements in connection with the transactions contemplated by this Letter of Intent.  However, it is expressly understood that this Letter of Intent shall itself be contractually binding regardless of whether or not a further agreement is executed, subject to the terms and conditions described herein.

 

Brighthaven Ventures L.L.C.:  BHV is headquartered in Research Triangle Park, North Carolina. BHV was launched in 2009 with the mission to develop novel therapeutics aimed at improving the lives of patients suffering from metabolic disorders, including diabetes and NASH/NAFLD.

 

BHV Assets:   BHV has licensed exclusive  rights to issued patents for the compound remogliflozin-etabonate (“Remo”, designated BHV091009). BHV also owns certain patent applications related to a biphasic formulation technology (the “Biphasic Patent”). Remo is a selective sodium glucose co-transporter 2, (“SGLT2”), inhibitor being developed for the treatment of type 2 diabetes and non-alcoholic steatohepatitis (“NASH”). Remogliflozin is in late phase 2 clinical development.

 

BHV holds an exclusive license to issued patents for Remo from Kissei Pharmaceutical Co., Ltd., a corporation organized and existing under the laws of Japan (“Kissei”), for the development and commercialization of pharmaceutical preparations containing Remo (the “Products”) in all countries of the world except for Japan, Korea and Taiwan, under the Exclusive License Agreement between BHV and Kissei dated December 1, 2010 (the “Kissei Agreement”). BHV and Kissei share co-exclusive rights in China.

 

Islet Sciences, Inc.:   Islet is a biopharmaceutical company developing new medicines and technologies for the diagnosis and treatment of metabolic disease.  

 

Purchase: Islet will acquire all of the Interests, subject to the terms described herein and the terms contained in the definitive purchase agreement (the “Definitive Purchase Agreement”) and related agreements.

 

 

  

  

  

 

March 12, 2014

Page 2

 

 

Remo Development: Following the closing of the transaction, Islet shall use commercially reasonable efforts to pursue the clinical development of Remo assuming the rights and obligations of BHV under the Kissei Agreement.

 

Closing: On the closing date, Islet will issue to the current holders of the Interests 30,000,000 unregistered common shares of Islet.  All of the shares will have demand and piggyback registration rights pursuant to which the holders of such shares may require Islet, at Islet’s sole cost and expense, to register the shares under the Securities Act of 1933, as amended (the “1933 Act”).

 

Milestones: Within five (5) business days of the applicable Milestone Date as set forth in the Definitive Purchase Agreement, Islet shall issue to the current holders of the Interests the number of shares of Islet common stock based on the dollar value assigned to the specific  Milestone in the Definitive Purchase Agreement, with the total dollar value of the Milestones to be $71,000,000.  The number of shares to be issued with respect to each Milestone will be determined using the volume weighted average closing price of the Islet common stock for the 30 trading days preceding the occurrence of each Milestone.   In the event that at the time of any Milestone, Islet’s common stock is not listed and traded on a national securities exchange or quoted on the OTC Bulletin Board, the market price of Islet’s common stock shall be determined in accordance with the Definitive Purchase Agreement by a nationally recognized independent third party with expertise in valuing companies similar to Islet. All of the shares will have demand and piggyback registration rights pursuant to which the holders of such shares may require Islet, at Islet’s sole cost and expense, to register the shares under the 1933 Act.

General Terms & Conditions: Although this Letter of Intent is a contractually binding obligation of the parties, it is not intended to be exhaustive of all the points for inclusion in the Definitive Purchase Agreement and any related agreements.  The parties will negotiate in good faith additional customary and reasonable terms and conditions as part of the Definitive Purchase Agreement and any related agreements, including, without limitation, provisions related to warranties, confidentiality, limitation on liability, patent prosecution, enforcement, indemnification and approvals.

 

Governing Law: This Letter of Intent shall be governed and construed in accordance with the laws of the state of New York without giving effect to principles of conflicts or choice of law thereof.

 

Fees and Expenses:  Islet shall bear all expenses incurred by each of Islet and BHV in connection with the negotiation and consummation of the transactions contemplated by this Letter of Intent, the Definitive Purchase Agreement and/or the related agreements.

 

 

  

  

  

 

March 12, 2014

Page 3

 

Authority: Each of Islet and BHV represent and warrant that they each have the legal right, power and authority to enter into this Letter of Intent.

 

Assignment:   Neither party may assign or transfer this Letter of Intent without the prior written consent of the other party.

 

Termination: The parties may terminate this agreement by mutual agreement.  In addition, either party has the right to terminate this agreement upon a material breach by the other party that remains uncured for thirty (30) days following written notice thereof or in the event that a Definitive Purchase Agreement has not been entered into by July 31, 2014.  Notwithstanding the foregoing, the provisions of the confidentiality agreement entered into between BHV and COVA Capital LLC acting on behalf of Islet Sciences, Inc. dated September 10, 2013  (the “Confidentiality Agreement”)] and the section entitled “Fees and Expenses” set forth above will survive termination.

 

Entire Agreement:  This Letter of Intent constitutes the full and complete agreement between the parties with respect to the subject matter contained in this Letter of Intent and there are no further or other agreements or understandings, written or oral, in effect between the parties relating to such subject matter, except the Confidentiality Agreement and as otherwise expressly referred to herein.

 

Counterparts:  This Letter of Intent and any amendment hereto may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument.  The exchange of copies of this Letter of Intent or amendments thereto and of signature pages by facsimile transmission or by email transmission in portable document format, or similar format, shall constitute effective execution and delivery of such instrument(s) as to the parties and may be used in lieu of the original Letter of Intent or amendment for all purposes. Signatures of the parties transmitted by facsimile or by email transmission in portable document format, or similar format, shall be deemed to be their original signatures for all purposes.

 

[signature page follows]

 

  

  

  

 

March 12, 2014

Page 4

 

[Signature Page to Binding Letter of Intent]

 

Each party has executed this agreement by its duly authorized representative on this 12th day of March, 2014.

 

Islet Sciences, Inc.

 

By:__________________________

 

Name: James Green

 

Title:   Chief Executive Officer

 

 

 

 

Brighthaven Ventures, LLC

 

By:__________________________

 

Name: Dr. Bentley Cheatham

 

Title:    Chief Executive Officer

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