Document:

ex10-4.htm

Exhibit 10.4

 

COLLATERAL ASSIGNMENT OF

DEALER’S NOTES AND SECURITY AGREEMENTS

 

THIS COLLATERAL ASSIGNMENT OF DEALER’S NOTES AND SECURITY AGREEMENTS (this “Assignment”) is made this 16th day of July, 2015 by and between Art’s-Way Manufacturing Co., Inc., a Delaware corporation (the “Company”) to U.S. Bank National Association (the “Lender”).

 

RECITALS

 

WHEREAS, the Company, as Borrower thereunder, and Lender, as Lender thereunder, are parties to that certain Promissory Note of even date herewith (the “Note”), pursuant to which Lender has agreed to make Advances to the Company up to ONE MILLION FIVE HUNDRED THOUSAND DOLLARS and 00/100 ($1,500,000.00) on the terms and conditions set forth in the Note; and

 

WHEREAS, in order to induce Lender to make the Advances to the Company as provided for in the Note, the Company has agreed to collaterally assign all of its right, title and interest in and to those certain Dealer’s Notes (collectively, the “Dealer’s Notes”, and each, a “Dealer’s Note”) and Dealer’s Security Agreements (collectively, the “Dealer’s Security Agreements”, and each a “Dealer’s Security Agreement”) as may be identified on Schedule A attached hereto and as may be later identified by inserting into Schedule A any subsequent Dealer’s Note and Dealer’s Security Agreement related to any and every Advance given by Lender to the Company under the Note (the Dealer’s Notes and the Dealer’s Security Agreements are hereinafter collectively referred to as the “Collateral Documents”);

 

NOW, THEREFORE, for and in consideration of the premises, the covenants herein contained, and for other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the Company and Lender hereby covenant and agree, as follows:

 

1.     DEFINED TERMS. Capitalized terms not defined herein shall have the meanings given them in the Note.

 

2.     COLLATERAL ASSIGNMENT OF COLLATERAL DOCUMENTS. In order to secure repayment of the Advances and the other obligations and liabilities at any time owing by the Company to Lender on account of Note (all such indebtedness, obligations and liabilities being hereinafter collectively referred to as the “Obligations”), the Company hereby collaterally transfers, assigns and conveys to Lender any and all of the right, title and interest of the Company in and with respect to the Collateral Documents as more specifically described on Schedule A, and as may be subsequently added to Schedule A at the time of an Advance. Schedule A is attached hereto and by this reference incorporated herein as if fully set forth.

 

The Company does hereby agree to warrant and forever defend the title to such Collateral Documents unto Lender, its successors and assigns against any claims of any person whatsoever. The Company represents and warrants to Lender, its successors and assigns that such Collateral Documents are collaterally assigned hereunder, free and clear of any lien, claim or encumbrances of any nature any lien, claim or encumbrances of any nature.

 

 

 

 

 

3.     THE COMPANY’S RIGHTS UNTIL DEFAULT. So long as no default shall exist under the Obligations and the Note, the Company shall have the right to exercise all of the Company’s rights and benefits under, in and to the Collateral Documents.

 

4.     LENDER’S RIGHTS IN EVENT OF DEFAULT.

 

(a)     Immediately upon the occurrence of a default under the Obligations or the Note, and until such default shall have been cured, as hereinafter defined, the Lender is hereby expressly and irrevocably authorized to assume any or all of the Company’s rights with respect to the Collateral Documents without further authorization, notice or demand and without the commencement of any action.

 

(b)     The Company hereby constitutes and appoints the Lender irrevocably, and with full power of substitution and revocation, the true and lawful attorney, for and in the name, place and stead of the Company, to exercise any and all rights and remedies of the Company under the Collateral Documents. The Company hereby grants unto said attorney full power and authority to do and perform each and every act whatsoever requisite to be done with respect to the Collateral Documents, as fully to all intents and purposes, as the Company could do if personally present, hereby ratifying and confirming all that said attorney shall lawfully do or cause to be done by virtue hereof, provided, however, that any acts or omissions by the Lender after default shall be at the Lender’s discretion and shall not be or become the basis for any liability of the Company.

 

(c)     Acceptance of this Assignment by the Lender shall not constitute a satisfaction of all or any part of the Obligations of the Company.

 

(d)     The rights and powers of the Lender hereunder shall continue and remain in full force and effect until all Obligations are satisfied in full. Lender shall not be liable to the Company or anyone claiming under or through the Company by reason of any act or omission by the Company hereunder.

 

(e)     A default shall be cured when the Company shall have satisfied applicable provisions for cure in the Note.

 

5.     TERMINATION. Upon satisfaction in full of the Obligations, this Assignment shall be void and of no effect and, in that event, upon the Company’s request, the Lender agrees to execute and deliver to the Company instruments evidencing the termination of this Assignment and/or release of Lender’s interest in the Collateral Documents.

 

6.     RECORDATION OF ASSIGNMENT. At Lender’s request, the Company will cause this Assignment and amendments thereto to be properly recorded, filed, registered and maintained in such manner and in such places as Lender may reasonably deem necessary or advisable for the purpose of fully protecting and perfecting the rights of Lender hereunder; and (ii) execute, acknowledge, deliver and record all such further instruments as Lender may reasonably deem necessary or advisable for the purpose of better assuring, granting, conveying and assigning the Company’s rights, title, interests, claims and liens arising out of the Collateral Documents to Lender, and as may be required to perfect, preserve and protect the security interest therein granted hereby; provided, however, that any recording or filing expenses incurred in connection herewith shall be borne by Lender.

 

 

 

 

 

7.     GOVERNING LAW. THIS ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF IOWA WITHOUT REGARD TO ANY CHOICE OF LAW RULES WHICH WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION

 

8.     NO WAIVER. Neither this Assignment nor any provision hereof may be changed, waived, discharged or terminated orally, but shall be changed, waived, discharged or terminated only by an instrument in writing signed by the party against whom enforcement of the change, waiver, discharge or termination is sought.

 

9.     BINDING EFFECT. This Assignment shall be binding upon and inure to the benefit of the parties hereto, all future holders of the Note and their respective successors and assigns, except that the Company may not transfer or assign any of its rights or obligations hereunder without the prior written consent of Lender.

 

10.   COUNTERPARTS. This Assignment may be executed in any number of counterparts, all of which, when taken together, shall constitute one and the same instrument, and any party hereto may execute this Assignment by signing any such counterpart.

 

IN WITNESS WHEREOF, the undersigned has executed this instrument as of the 16th day of July, 2015.

 

ART’S-WAY MANUFACTURING CO., INC., the Company

 

By:          /s/ Carrie Majeski                    

                Carrie Majeski, President & CEO

 

STATE OF IOWA, COUNTY OF STORY, SS:

 

This record was acknowledged before me on this 16th day of July, 2015, by Carrie Majeski, as the President of Art’s-Way Manufacturing Co., Inc.

 

 /s/ Brooke J Brewington

Notary Public in and for the State of Iowa

My commission expires March 29, 2016ex10-1.htm

Exhibit 10.1

  

October 1, 2015

 

Dear Don:

 

This letter (the “Agreement”) sets forth the terms of your continuing employment with Senomyx, Inc. (the “Company”) effective as of October 1, 2015. 

 

1.     Terms of Service. Effective October 1, 2015 you will retire and resign from the position of Senior Vice President and Chief Scientific Officer. As of that date, your continuing service will be as a Scientific Advisor whereby you will devote (as requested by the Company): up to forty (40) hours of service to the Company per week until December 31, 2015; up to thirty (30) hours of service per week until June 30, 2016; up to twenty (20) hours of service per week until September 30, 2016; and up to ten (10) hours of service per week until December 31, 2016. In your advisor role, you will continue to report to me in my capacity as the Company’s Chief Executive Officer and President. You acknowledge your continuing obligations under your Proprietary Information and Inventions Agreement during the period of your ongoing employment with the Company. 

 

2.     Accrued Paid Time Off. At the time you become benefit ineligible, currently anticipated to occur on July 1, 2016, the Company will pay to you all accrued and unused paid time off earned through that date, less applicable deductions and withholdings.

 

3.     Continuous Service. You agree to serve as a Scientific Advisor to the Company under the terms specified below.

 

(a)     Service Period. Your service shall commence on October 1, 2015 and will continue until terminated as provided in Paragraph 3(f) below (the “Service Period”). The parties hereto presently contemplate that the Service Period shall not extend beyond December 31, 2016. 

 

(b)     Additional Terms. The parties acknowledge that you will perform the services contemplated above at the location of your choice, but with advance notice you may also be available to attend meetings at Company’s principal place of business or at other places upon mutual agreement of between you and an authorized representative of the Company. You also agree to perform a reasonable amount of informal consultation with the Company over the telephone or otherwise. 

 

(c)     Compensation; Expenses. As compensation for performing the services contemplated during the Service Period you will be paid a bi-weekly amount of $15,334.23 when working 40 hours per week; of $11,500.67 when working 30 hours per week; of $7,667.12 when working 20 hours per week; and $3,833.56 when working 10 hours per week, less applicable deductions and withholdings, payable in accordance with the Company’s normal payroll policies and procedures. The Company will also reimburse you for business expenses reasonably incurred on behalf of the Company during the Service Period pursuant to its established expense reimbursement policy. You and the Company may mutually agree to modify the compensation arrangement for services at any time. 

 

(d)     Treatment of Outstanding Stock Options. Your issued and outstanding stock options under the Company’s Amended and Restated 2004 Equity Incentive Plan and the 2013 Equity Incentive Plan will continue to vest in accordance with their terms during the Service Period. 

 

 

 

 

  

(e)     No Solicitation. During the Service Period, you will not personally or through others recruit, solicit or induce any employee of the Company to terminate his or her employment with the Company; provided, however, that this provision shall not apply with respect to any employee of the Company who responds independently to a general advertisement or job posting not specifically directed to employees of the Company. 

 

(f)     At-Will Employment; Termination of Service Period. Your employment will be “at-will,” which means it may be terminated at any time by you or the Company with or without cause or advance notice. Any such termination shall be in writing. In fact, every aspect of your employment relationship with the Company is on an at-will basis. As part of your at-will employment, the Company expressly reserves its inherent authority to manage and control its business enterprise and to exercise its sole discretion to determine all issues pertaining to your employment. No one other than the Company’s Chief Executive Officer or his designee has the authority to alter this Agreement, to enter into a different agreement for your employment for a specified period, or to make any agreement contrary to this Agreement. Furthermore, any agreement that alters the at-will nature of employment must be in writing and must be signed by both the Company’s Chief Executive Officer or his designee and you. Termination or expiration of your Service Period shall not affect: (i) the Company's obligation to pay for services previously performed by you or expenses reasonably incurred by you for which you are entitled to reimbursement; (ii) the Company’s obligations and your associated rights as contemplated by Sections 2, 3 and 4 of this letter; or (iii) your continuing obligations to the Company under your Proprietary Information and Inventions Agreement.

 

4.     2015 Incentive Cash Bonus. In addition to the compensation set forth above, the parties acknowledge and agree that you will be eligible to receive your cash incentive bonus under the Company’s 2015 Executive Bonus Plan (the “2015 Bonus Plan”) based on your target bonus of 40% of your base salary, including expressly the one-time commercialization incentive portion of the 2015 Bonus Plan. The determination of the actual bonus, if any, remains subject to the final determination by the Compensation Committee of the Board (the “Committee”) of the Company’s corporate goal achievement as well as the Committee’s discretionary authority under the 2015 Bonus Plan; but in any event will be determined for you using the same methodology applied to all of the Company’s officers (other than the target bonus amount). We anticipate that this will occur during the first quarter of 2016 and your bonus will be paid to you at the same time as bonuses, if any, are paid to the Company’s other officers. 

 

5.     Other Compensation Or Benefits. While you are a full-time employee, and while you are regularly scheduled to work 30 hours or more per week, you will be eligible to participate in the Company’s medical and dental plans, the paid time off program and holiday pay. When you become a part-time employee regularly scheduled to work less than 30 hours per week, you will not be eligible to participate in the Company’s medical or dental benefit plans, the paid time off program, or receive holiday pay. To the extent provided by the federal COBRA law or, if applicable, state insurance laws, and by the Company’s current group health insurance policies, you will be eligible to continue your current group health insurance benefits. Should you choose to elect such coverage, the Company will reimburse you for this expense at the same rate paid for an active employee provided that you remain an employee of the Company, but no later than December 31, 2016. Except as specifically provided in Section 4 above, you also will not be eligible for any cash bonus as compensation for your service during the 2016 calendar year. You may continue to be eligible to participate in the Company’s 401(k) plan pursuant to plan eligibility. If you have any questions regarding benefits, please see the Company’s Human Resources Department. The Company may modify compensation and benefits from time to time as it deems necessary. 

 

6.     Change of Control Benefits. The parties mutually agree and acknowledge that your Amended and Restated Change in Control Agreement dated as of December 31, 2008 (“CIC Agreement”) shall remain in full force and effect through December 31, 2016. The parties mutually acknowledge and agree that the changes to your salary, to the number of hours of service provided by you and to your position and responsibilities after October 1, 2015, as contemplated by this Agreement, shall not constitute Good Reason for purposes of the CIC Agreement. For purposes of the CIC Agreement, the Annual Pay (as such term is defined in the CIC Agreement) for 2016 is the pro-rata salary for the year, or $225,029.85.

 

 

 

 

  

7.     Return of Company Property. You agree that, within 30 days after the expiration or termination of your Service Period, you will return to the Company all Company documents and other Company property in your possession or control, including, but not limited to files, notes, memoranda, correspondence, agreements, notebooks, records, reports, tangible property and equipment; provided, however, that during the Service Period only, the Company will permit you to retain, receive, and/or use any documents, equipment and/or information reasonably necessary to perform the services contemplated hereunder. 

 

8.     Miscellaneous. This Agreement constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to its subject matter. This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement may not be modified or amended except in a writing signed by both you and the Company’s Chief Executive Officer or his designee. This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified so as to be rendered enforceable. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of California as applied to contracts made and to be performed entirely within California. Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach. This Agreement may be executed in counterparts and facsimile signatures will suffice as original signatures.

 

If this Agreement is acceptable to you, please sign below and return the original to me. 

 

Sincerely,

 

SENOMYX, INC.

 

 

	  	
By:
	
/S/ JOHN POYHONEN

	
 
	
 
	
John Poyhonen

	
 
	
 
	
President and Chief Executive Officer

 

 

I HAVE READ, UNDERSTAND AND AGREE FULLY TO THE FOREGOING AGREEMENT:

 

 

	  	
By:
	
/S/ DON KARANEWSKY

	
 
	
 
	
Don Karanewsky

	 	 
	
Date:
	
October 1, 2015

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