Document:

First Amendment of Venture Loan and Security Agreement

 Exhibit 10.1 
 FIRST AMENDMENT OF VENTURE LOAN AND SECURITY AGREEMENT 
 This AMENDMENT OF
VENTURE LOAN AND SECURITY AGREEMENT (this “Agreement”), dated as of May 1, 2012, is entered into by and among CEREPLAST, INC., a Delaware corporation (“Borrower”), COMPASS HORIZON FUNDING COMPANY LLC
(“Horizon”), a Delaware corporation and HORIZON CREDIT I LLC (“HCI” and collectively with Horizon, “Lender”), a Delaware limited liability company, as assignee and holder of Advance (Loan A).

 RECITALS 
 A. Pursuant to that certain Venture Loan and Security Agreement dated as of December 21, 2010 (as the same has been and may be further amended, supplemented or otherwise modified from time to time,
the “Loan Agreement”) between Borrower and Lender, Lender, among other things, has (i) provided certain loans to Borrower as evidenced by (a) a certain Secured Promissory Note (Loan A) executed by Borrower in favor of
Lender, dated as of December 21, 2010, in the original principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00) (“Note A”) and (b) a certain Secured Promissory Note (Loan B) executed by Borrower in
favor of Lender, dated as of February 17, 2011, in the original principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00) (“Note B” and collectively with Note A, the “Notes”) and
(ii) been granted a security interest in all assets of Borrower. 
 B. Borrower has now requested that Lender amend certain
of the payment provisions relating to the Notes. 
 C. Lender is willing to grant such request, but only to the extent, and in
accordance with the terms, and subject to the conditions, set forth herein. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, Borrower and Lender hereby agree as follows: 
  

	1.	Definitions; Interpretation. Unless otherwise defined herein, all capitalized terms used herein and defined in the Loan Agreement shall have the respective
meanings given to those terms in the Loan Agreement. Other rules of construction set forth in the Loan Agreement, to the extent not inconsistent with this Agreement, apply to this Agreement and are hereby incorporated by reference.

  

	2.	 Confirmation. Borrower hereby acknowledges and agrees that: (i) the Loan Agreement sets forth the legal, valid, binding and continuing
Obligations of Borrower to Lender, and (ii) the Obligations to Lender under the Loan Agreement are secured by validly perfected security interests in all assets of Borrower, except for Borrower’s Intellectual Property, and with respect to
Third Party Equipment, consistent with the provisions of Section 4.8 of the Loan Agreement, and (iii) Borrower has no cause of action, claim, defense or set off against the Lender in any way regarding or relating to the

	 	
Loan Agreement or Lender’s actions thereunder and to the extent any such cause of action, claim, defense or set-off ever existed, it is waived and Lender is released from any claims of
Borrower. Borrower represents and warrants that no Default or Event of Default has occurred and is continuing under the Loan Agreement. 

  

	3.	Amendments to Loan Agreement. 

  

	 	(a)	Borrower and Lender hereby agree that the definition of “Maturity Date” in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and
replaced with the following: 

 ““Maturity Date” means the earlier to occur of
(i) August 1, 2014 or (ii) the date of acceleration of a Loan following an Event of Default or the date of prepayment of a Loan, whichever is applicable.” 

 

	 	(b)	Borrower and Lender hereby agree that Section 2.2(a) of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

 “Scheduled Payments. With respect to Loan A, Borrower shall make payments of accrued interest and
principal in such amounts and on such Payment Dates as set forth in the Note applicable to Loan A (the “Loan A Scheduled Payments”). With respect to Loan B, Borrower shall make payments of accrued interest and principal in such
amounts and on such Payment Dates as set forth in the Note applicable to Loan B (the “Loan B Scheduled Payments”, and collectively with the Loan A Scheduled Payments, the “Scheduled Payments”). Borrower shall make
such Scheduled Payments commencing on the dates set forth in the Notes and continuing thereafter on the first Business Day of each calendar month (each a “Payment Date”) through the Maturity Date. In any event, all unpaid principal
and accrued interest shall be due and payable in full on the Maturity Date.” 
  

	 	(c)	Borrower and Lender hereby agree that Section 6.3 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

 “Financial Statements, Reports, Certificates. Borrower shall deliver to Lender (a) as soon as
available, but in any event within thirty (30) days after the end of each month, a company prepared balance sheet, income statement and cash flow statement covering Borrower’s operations during such period, certified by Borrower’s
president, treasurer or chief financial officer (each, a “Responsible Officer”); (b) as soon as available, but in any event within one hundred thirty-five (135) days after the end of Borrower’s fiscal year, audited
financial statements of Borrower prepared in accordance with GAAP, together with an unqualified opinion on such financial statements of a nationally recognized or other independent public accounting firm reasonably acceptable to Lender, which
initially shall be HJ Associates & Consultants, LLP; (c) as soon as available, but in any event within ninety (90) days after the end of Borrower’s fiscal year or the date of Borrower’s board of directors’ adoption,
Borrower’s operating budget and plan for the next fiscal year; and (d) such other financial information as Lender may reasonably request from time to time. Promptly as they are available and in any event: (x) at the

  
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time of filing of Borrower’s Form 10-K with the Securities and Exchange Commission after the end of each fiscal year of Borrower, the financial statements of Borrower filed with such
Form 10-K; and (y) at the time of filing of Borrower’s Form 10-Q with the Securities and Exchange Commission after the end of each of the first three fiscal quarters of Borrower, the financial statements of Borrower filed with
such Form 10-Q. In addition, Borrower shall deliver to Lender (i) promptly upon becoming available, copies of all statements, reports and notices sent or made available generally by Borrower to its security holders; and
(ii) immediately upon receipt of notice thereof, a report of any material legal actions pending or threatened against Borrower or the commencement of any action, proceeding or governmental investigation involving Borrower is commenced that is
reasonably expected to result in damages or costs to Borrower of Two Hundred Fifty Thousand Dollars ($250,000).” 
  

	4.	Borrower and Lender hereby agree that the following shall be added to the Loan Agreement as Section 6.12: 

“Late Fees. Borrower shall, on or before September 1, 2012, pay to Lender the sum of Fifteen Thousand Four Hundred
Ninety-Nine and 24/100 Dollars ($15,499.24) in late fees incurred by Borrower in connection with amounts due on the Notes on the Payment Dates in May 2012 and June 2012.” 

 

	5.	Borrower and Lender hereby agree that the following shall be added to the Loan Agreement as Section 6.13: 

“Amendment Fee. Borrower shall, on or before September 1, 2012, pay to Lender the sum of Sixty-Three Thousand Nine
Hundred Ninety and 46/100 Dollars ($63,990.46) in connection with the First Amendment of Venture Loan and Security Agreement.” 
  

	6.	Borrower and Lender hereby agree that Section 8.2 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

 “Certain Covenant Defaults. If Borrower fails to perform any obligation under
Section 6.8, Section 6.12, or Section 6.13 or violates any of the covenants contained in Section 7 of this Agreement.” 

 

	7.	Amendment to Notes. The Notes are hereby amended and restated in their entirety as set forth in Exhibit A attached hereto and made a part hereof
(“Amended and Restated Notes”). 

  

	8.	Amendment to Warrant. The Warrant is hereby amended and restated in its entirety as set forth in Exhibit B attached hereto and made a part hereof
(“Amended and Restated Warrant”). 

  

	9.	Conditions to Effectiveness. Lender’s consent and agreement herein is expressly conditioned on all of the following 

 

	 	(a)	Borrower executing and delivering to Lender an executed copy of this Agreement; 

  
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	 	(b)	Borrower executing and delivering to Lender executed copies of the Amended and Restated Notes; 

 

	 	(c)	Borrower executing and delivering to Lender an executed copy of the Amended and Restated Warrant; 

 

	 	(d)	Borrower executing and delivering to Lender an executed copy of a new Warrant entitling Lender to purchase Two Hundred Twenty Five Thousand (225,000) shares of
Borrower’s common stock at a strike price of One Cent ($0.01) per share; 

  

	 	(e)	Borrower delivering to Lender executed copies of forebearance agreements with each of Borrower’s current bondholders for whom an interest payment due June 1,
2012 was not made by the Company; and 

  

	 	(f)	Borrower’s shall pay to Lender accrued but unpaid interest on the Loans in an amount of Eighty Five Thousand Three Hundred Twenty and 62/100 Dollars ($85,320.62).

  

	10.	Effect of Agreement. On and after the date hereof, each reference to the Loan Agreement in the Loan Agreement or in any other document shall mean the Loan
Agreement as amended by this Agreement. Except as expressly provided hereunder, the execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power, or remedy of Lender, nor constitute a waiver of any
provision of the Loan Agreement. Except to the limited extent expressly provided herein, nothing contained herein shall, or shall be construed to (nor shall the Borrower ever argue to the contrary) (i) modify the Loan Agreement or any other
Loan Document (ii) modify, waive, impair, or affect any of the covenants, agreements, terms, and conditions thereof, or (iii) waive the due keeping, observance and/or performance thereof, each of which is hereby ratified and confirmed by
the Borrower. Except as amended above, the Loan Agreement remains in full force and effect. 

  

	11.	Headings. Headings in this Agreement are for convenience of reference only and are not part of the substance hereof. 

 

	12.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut without reference to conflicts of law
rules. 

  

	13.	Counterparts. This Agreement may be executed in any number of counterparts, including by electronic or facsimile transmission, each of which when so delivered
shall be deemed an original, but all such counterparts taken together shall constitute but one and the same instrument. 

  

	14.	Integration. This Agreement and the Loan Documents constitute and contain the entire agreement of Borrower and Lender with respect to their respective subject
matters, and supersede any and all prior agreements, correspondence and communications. 

  
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 IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed as of the day and year
first above written. 
  

			
	BORROWER:
	CEREPLAST, INC.
		
	By:	 	 /s/ Frederic Scheer

	Name: Frederic Scheer
	Title: Chief Executive Officer
	
	LENDER:
	COMPASS HORIZON FUNDING COMPANY LLC
	By: Horizon Technology Finance Corporation, its sole member
		
	By:	 	 /s/ Robert D. Pomeroy, Jr.

	Name: Robert D. Pomeroy, Jr.
	Title: Chief Executive Officer
	
	HORIZON CREDIT I LLC
	By: Compass Horizon Funding Company LLC, its sole member
	By: Horizon Technology Finance Corporation, its
sole member
		
	By:	 	 /s/ Robert D. Pomeroy, Jr.

	Name: Robert D. Pomeroy, Jr.
	Title: Chief Executive Officer

  
 - 6 -Amended and Restated Secured Promissory Note (Loan A)

 Exhibit 10.2 
 AMENDED AND RESTATED SECURED PROMISSORY NOTE 
 (Loan A) 

 

			
	$2,500,000.00	  	Originally Dated: December 21, 2010
		
		  	Amended and Restated June 22, 2012

 FOR VALUE RECEIVED, the undersigned, CEREPLAST, INC., a Nevada corporation (“Borrower”),
HEREBY PROMISES TO PAY to HORIZON CREDIT I LLC, as successor in interest to COMPASS HORIZON FUNDING COMPANY LLC, a Delaware limited liability company (“Lender”) the principal amount of Two Million Five Hundred Thousand and 00/100
Dollars ($2,500,000.00) or such lesser amount as shall equal the outstanding principal balance of the Loan A (the “Loan”) made to Borrower by Lender pursuant to the Loan Agreement (as defined below), and to pay all other amounts due
with respect to the Loan on the dates and in the amounts set forth in the Loan Agreement. This Amended and Restated Secured Promissory Note amends and restates in its entirety a certain Secured Promissory Note executed by Borrower in favor of Lender
dated as of December 21, 2010 (the “Original Note”) and nothing contained herein shall constitute a repayment or novation of the Original Note. 
 Interest on the principal amount of this Note from the date of this Note shall accrue at the Loan Rate or, if applicable, the Default Rate. The Loan Rate for this Note is 12.00% per annum based on a
year of twelve 30-day months. If the Funding Date is not the first day of the month, interim interest accruing from the Funding Date through the last day of that month shall be paid on the first calendar day of the next calendar month. Commencing
February 1, 2011, through and including October 1, 2011, on the first day of each month (each an “Interest Payment Date”) Borrower shall make payments of accrued interest only on the outstanding principal amount of the
Loan in the amount of Twenty-Five Thousand and 00/100 Dollars ($25,000.00). Commencing on November 1, 2011, and continuing on the first day of each month thereafter through April 1, 2012, (each a “Principal and Interest
Payment Date” and, collectively with each Interest Payment Date, each a “Payment Date”), Borrower shall make to Lender equal payments of principal plus accrued interest on the then outstanding principal amount due
hereunder each in the amount of Ninety-Six Thousand Eight Hundred Seventy and 28/100 Dollars ($96,870.28). Commencing on May 1, 2012, and continuing on the first day of each month thereafter through August 1, 2012 (each a
“Subsequent Interest Payment Date”), Borrower shall make to Lender payments of accrued interest only on the outstanding principal amount of the Loan in the amount of Twenty Thousand Five Hundred Seventy-Eight and 53/100 Dollars
($20,578.53). Commencing on September 1, 2012 and continuing on the first day of each month thereafter through August 1, 2014 (each a “Subsequent Principal and Interest Payment Date”), Borrower shall make to Lender equal
payments of principal plus accrued interest on the then outstanding principal amount due hereunder, each in the amount of Ninety-Six Thousand Eight Hundred Seventy and 28/100 Dollars ($96,870.28). Notwithstanding the foregoing, if Borrower
(i) receives net proceeds of not less than One Million Dollars ($1,000,000) from the sale of its equity securities after the date hereof and (ii) receives proceeds of no less than Eight Million Six Hundred Thousand Dollars ($8,600,000) as
a result of its performance under that certain Sales Agreement dated as of May 8, 2012 between Borrower and Singularis Solutions Pvt. Ltd., (the “Subsequent Interest Only Milestones) Borrower may elect to make payments of accrued
interest 

 
only on the outstanding principal amount of the Loan on each of September 1, 2012 and October 1, 2012 (each an “Optional Subsequent Interest Only Payment Date”), and
the Subsequent Principal and Interest Payment Dates shall commence as of November 1, 2012 and continue through August 1, 2014, and each payment of principal and interest due on the Subsequent Principal and Interest Dates shall equal One
Hundred Four Thousand Six Hundred Seventy and 05/100 Dollars ($104,670.05). Borrower must satisfy each of the Subsequent Interest Only Milestones to make payments of accrued interest only on the Optional Subsequent Interest Only Payment Dates. If
not sooner paid, all outstanding amounts hereunder and under the Loan Agreement shall become due and payable on August 1, 2014. 
 Principal, interest and all other amounts due with respect to the Loan, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement. The principal amount of
this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note. 

This Note is referred to in, and is entitled to the benefits of, the Venture Loan and Security Agreement dated as of December 21,
2012 and amended on or about the date hereof by and between Borrower and Lender (the “Loan Agreement”). The Loan Agreement, among other things, (a) provides for the making of a secured Loan to Borrower, and (b) contains
provisions for acceleration of the maturity hereof upon the happening of certain stated events. 
 This Note may not be prepaid,
except as set forth in Section 2.3 of the Loan Agreement. 
 This Note and the obligation of Borrower to repay the
unpaid principal amount of the Loan, interest on the Loan and all other amounts due Lender under the Loan Agreement is secured under the Loan Agreement. 
 Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived.

 Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and
costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of
Connecticut. 
 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers thereunto duly
authorized on the date hereof. 
  

			
	BORROWER:
	CEREPLAST, INC.
		
	By:	 	 /s/ Frederic Scheer

	Name:	 	Frederic Scheer
	Title:	 	Chief Executive Officer

  
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