Document:

EX-10.1

PROMISSORY NOTE

$XXX,000.00 June   , 2012

FOR VALUE RECEIVED, Circle Entertainment Inc., a Delaware corporation (the “Payor”), hereby
unconditionally promises to pay to the order of XXXXX, (the “Payee”), in lawful money of
the United States of America in immediately available funds, the principal sum of XXXXXXXXXXXXXXXX
Dollars ($XXXXXX), together with interest thereon, compounded annually, from the date hereof
through maturity at the rate of 6.00% per annum (calculated on the actual number of days elapsed
and an assumed year of 360 days) (the “Stated Rate”). This principal amount, together with
interest accrued thereon at the Stated Rate commencing on the date hereof, shall be due and payable
in full upon demand.

This Promissory Note (“Note”) evidences Payee’s loan to Payor in the principal amount
of this Note.

Payor shall use the principal amount of this Note for working capital requirements. So long
as any amounts under this Note remain unpaid, Payor shall not incur any indebtedness for borrowed
money without the prior written consent of Payee (which consent shall not be unreasonably withheld,
delayed or conditioned). For the avoidance of doubt and ambiguity, the foregoing restriction on the
incurrence of indebtedness for borrowed money shall not apply to indebtedness incurred by Payor in
the ordinary course of business for goods and services from trade creditors.

The principal and accrued interest balance of this Note may be prepaid in whole or in part at
any time without a premium or penalty of any kind.

If any Acceleration Event (as defined below) shall occur for any reason then and in any such
event, in addition to all rights and remedies of the Payee under this Note, applicable law or
otherwise, all such rights and remedies being cumulative, not exclusive and enforceable
alternatively, successively and concurrently, the Payee may, at its option, declare due any or all
of the Payor’s obligations, liabilities and indebtedness owing to the Payee under this Note
whereupon the then unpaid balance hereof shall immediately be due and payable, together with all
expenses of collection hereof, including, but not limited to, attorneys’ fees and legal expenses
(for this purpose, the Payor shall pay all trial and appellate attorneys’ fees, costs and expenses,
paid or incurred by the Payee in connection with collection of this Note). If the foregoing unpaid
balances, expenses and collection costs are not paid upon demand upon the occurrence of an
Acceleration Event (collectively, the “Unpaid Amounts”), such Unpaid Amounts shall bear
interest until paid in full at the Stated Rate plus 5.00% per annum or the maximum interest rate
then permitted under applicable law (whichever is less) (the “Default Rate”). From and
after maturity of this Note, the Unpaid Amounts shall bear interest until paid in full at the
Default Rate. For purposes hereof, “Acceleration Event” means the first to occur of the following:
(i) if any principal or accrued interest or other amount owing under this Note is not paid when due
and such default continues unremedied for fifteen (15) days after written notice provided by Payee
to Payor, (ii) Payor having made an assignment for the benefit of creditors, filed a petition in
bankruptcy, applied to or petitioned any tribunal for the appointment of a custodian, receiver,
intervener or trustee for Payor, or commenced any proceeding for any arrangement or readjustment of
its debts, (iii) any such petition or application having been filed or proceeding having commenced
against Payor and Payor not having interposed a defense thereto within the time permitted under
applicable law, (iv) the sale or other disposition of all or substantially all of Payor’s assets,
(v) the dissolution of Payor or (vi) the failure by Payor to perform any other covenant, agreement
or condition contained in this Note and such default continues unremedied for thirty (30) days
after written notice thereof is given to Payor by Payee; provided, however, in the event such
default is curable but is not reasonably capable of cure within said 30-day period, Payor shall
have such additional time as required to cure any such default so long as Payor is diligently
undertaking the cure of such default.

The Payor (i) waives diligence, demand, presentment, protest and notice of any kind, except
for any notice expressly required by the provisions of this Note, and (ii) agrees that it will not
be necessary for the Payee to first institute suit in order to enforce payment of this Note.

The validity, interpretation and enforcement of this Note and any dispute arising in
connection herewith or therewith shall be governed by the internal laws of the State of New York
(without giving effect to principles of conflicts of law).

The Payor irrevocably consents and submits to the exclusive jurisdiction of the state courts
of the State of New York located in the County of New York and the United States District Court
whose district covers such county, and waives any objection based on venue or forum non conveniens
with respect to any action instituted therein arising under this Note.

EACH OF PAYOR AND PAYEE HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER THIS NOTE, AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY.

The Payor may not assign this Note and/or delegate any of its obligations hereunder without
the written consent of the Payee. This Note is not secured by any collateral of any nature.
Neither this Note nor all or any portion of the Payee’s rights and interests herein may be
negotiated, assigned, pledged, hypothecated or otherwise transferred by Payee.

The Payor shall be solely responsible for any necessary tax or assessment relating to this
Note; provided, however, that the Payor shall not be responsible for Payee’s tax obligations
arising from receipt of funds set forth herein.

If any term or provision of this Note shall be held invalid, illegal or unenforceable, the
validity of all other terms and provisions hereof shall in no way be affected thereby.

The waiver by the Payee of the Payor’s prompt and complete performance of, or default under,
any provision of this Note shall not operate nor be construed as a waiver of any subsequent breach
or default, and the failure by the Payee to exercise any right or remedy which it may possess
hereunder or under applicable law shall not operate nor be construed as a bar to the exercise of
any such right or remedy upon the occurrence of any subsequent breach or default.

[Signature Page Follows]

1

IN WITNESS WHEREOF, the Payor has executed this Promissory Note the day and year first written
above.

CIRCLE ENTERTAINMENT INC.

By:

Name:

Title:

2exhibit101.htm

	Exhibit 10.1

 

FIRST AMENDMENT TO

 

LOAN AND SECURITY AGREEMENT

 

THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of June 8, 2012, is made by and among MIDCAP FINANCIAL SBIC, LP, a Delaware limited partnership (“MidCap”), as administrative agent (“Agent”), the Lenders listed on signature pages hereto (each a “Lender”, and collectively the “Lenders”), and POLYMEDIX, INC., a Delaware corporation (“Parent”) and POLYMEDIX PHARMACEUTICALS, INC., a Delaware corporation (“PYMX” and together with Parent, individually and collectively referred to herein as “Borrower”).

 

WHEREAS, Borrower, Agent and Lenders listed on Schedule 1 thereto entered into that certain Loan and Security Agreement, dated April 5, 2012 (as amended, modified, supplemented or restated from time to time, the “Agreement”) pursuant to which Lenders agreed to make Term Loans available to Borrower in an aggregate amount not to exceed $12,000,000, $8,000,000 of which was funded as Tranche One on April 5, 2012 and $4,000,000 was to be funded as Tranche Two upon satisfaction of certain conditions present; and

 

WHEREAS, Borrower, Agent and the Lenders hereto, being the Required Lenders, desire to amend certain provisions of the Agreement pursuant to the terms and conditions set forth herein to, among other items, eliminate Tranche Two and the funding obligations associated therewith.

 

NOW, THEREFORE, in consideration of the premises contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1. All capitalized terms used herein which are defined in the Agreement shall have the same meaning herein as in the Agreement unless the context clearly indicates otherwise.

 

2. Paragraphs (a) and (b) of Section 2.2. of the Agreement are hereby amended by deleting the existing paragraphs (a) and (b) in their entirety and inserting in lieu thereof the following new paragraphs (a) and (b) of Section 2.2:

 

(a)           Availability.  Subject to the terms and conditions of this Agreement, the Lenders shall make, severally and not jointly, a term loan to Borrower in an amount equal to Eight Million and 00/100 Dollars ($8,000,000.00) according to each Lender’s Term Loan Commitment as set forth on Schedule 1 hereto (such term loan is hereinafter referred to as the “Term Loan,” “Term Loans,” or “Tranche One”).  After repayment, the Term Loan may not be re-borrowed.  The Term Loan shall be advanced in its entirety on the Closing Date.

 

  

  

  

(b)           Interest Payments and Repayment.  Commencing on the first (1st) Payment Date following the Funding Date of the Term Loan and continuing on the Payment Date of each successive month thereafter through and including the Maturity Date, Borrower shall make monthly payments of interest to Agent, for payment to each Lender in accordance with its respective Pro Rata Share, in arrears, and calculated as set forth in Section 2.3.  Commencing on the Amortization Date, and continuing on the Payment Date of each successive month thereafter through and including the Maturity Date, Borrower shall make consecutive monthly payments of principal to Agent, for payment to each Lender in accordance with its respective Pro Rata Share, as calculated by Agent based upon: (i) the amount of such Lender’s Term Loans, (ii) the effective rate of interest, as determined in Section 2.3, and (iii) a straight-line amortization schedule for each Credit Extension beginning on the Amortization Date and ending on the Maturity Date.  All unpaid principal and accrued interest with respect to the Term Loans is due and payable in full on the Maturity Date.  The Term Loan may be prepaid only in accordance with Sections 2.2(c) and 2.2(d).

 

3. Section 2.4(a)(ii) of the Agreement is hereby deleted in its entirety.

 

4. Section 8.14 of the Agreement is hereby amended by deleting the existing Section 8.14 in its entirety and inserting in lieu thereof the following new Section 8.14:

 

8.14           Withdrawals, Recalls, Adverse Test Results and Other Matters.  Borrower ceases clinical development of PMX-30063 as a result of either (i) an internal decision to cease all further clinical testing in humans for all indications or (ii) the institution of any action or proceeding by any Regulatory Authority to cause Borrower to cease all further clinical testing in humans for all indications.  In and of itself, (i) the failure of any nonclinical or clinical trial to demonstrate the desired safety or efficacy or (b) the denial, delay or limitation of approval of, or taking of any other regulatory action by, any Regulatory Authority shall not constitute an Event of Default under this Section 8.14.

 

5. Section 14 of the Agreement is hereby amended by deleting the existing paragraph (a) of the defined term, “Prepayment Fee,” in its entirety and inserting in lieu thereof the following new paragraph (a):

 

(a)           for a prepayment made on or after the Closing Date through and including the date which is twelve (12)  months after the Closing Date, three percent (3.0%) multiplied by the principal amount of the Term Loan that is prepaid; provided that, notwithstanding the foregoing, solely with respect to a voluntary prepayment made at any time on or after the Closing Date through and including the date which is twelve (12)  months after the Closing Date when an Event of Default does not exist, the percentage set forth in this clause (a) shall be zero percent (0.0%) (i.e., there shall be no Prepayment Fee);

 

6. Section 14 of the Agreement is hereby further amended by deleting the following defined terms in their entirety: “Draw Period”, “Draw Period Termination Date”, and “Tranche Two Eligibility Date”.

 

7. Section 14 of the Agreement is hereby further amended by deleting Schedule I referred to in the definition of “Term Loan Commitment” in its entirety and inserting in lieu thereof “Schedule I” attached to this Amendment as Annex A.

 

8. The agreements contained in this Amendment are limited to the specific agreements made herein.  Except as amended hereby, all of the terms and conditions of the Agreement shall remain in full force and effect.  This Amendment amends the Agreement and is not a novation thereof.

 

9. Each of Borrower, Agent and Lenders hereby acknowledges and agrees that as of the date hereof no Default or Event of Default exists under the Agreement or the other Loan Documents, nor will any occur as a result of the execution and delivery of this Amendment or the performance or observance of any provision hereof.

 

10. Each reference to the Agreement that is made in the Agreement or any other document executed or to be executed in connection therewith shall hereafter be construed as a reference to the Agreement as amended hereby.

 

11. This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Amendment.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE(S)]

 

  

  

  

(Signature Page to First Amendment to Loan and Security Agreement)

 

IN WITNESS WHEREOF, intending to be legally bound, and intending that this Amendment constitute an agreement executed under seal, the undersigned have duly executed this Amendment under seal as of the date first written above.

 

	
BORROWER:

 

	
POLYMEDIX, INC., a Delaware corporation

By:           Edward F. Smith (SEAL)

Name:      Edward F. Smith

Title:        Vice President, Chief Financial

 Officer and Secretary

	  	
POLYMEDIX PHARMACEUTICALS, INC., a Delaware corporation

By:           Edward F. Smith(SEAL)

Name:      Edward F. Smith

Title:        Vice President, Chief Financial

 Officer and Secretary

	
AGENT:

	
MIDCAP FINANCIAL SBIC, LP, a Delaware limited partnership

By:           Midcap Financial SBIC GP, LLC

By:           Luis Viera (SEAL)

Name:      Luis Viera

Title:        Authorized Signatory

	
LENDERS:

	
MIDCAP FINANCIAL SBIC, LP, a Delaware limited partnership

By:           Midcap Financial SBIC GP, LLC

By:           Luis Viera (SEAL)

Name:      Luis Viera

Title:        Authorized Signatory

 

 

  

  

  

ANNEX A

 

SCHEDULE 1

 

LENDERS AND COMMITMENTS

 

	
Lender

	
Term Loan Commitment

	
Commitment Percentage

	
MidCap Financial SBIC, LP

	
$8,000,000

	
100%

	  	  	  
	
TOTAL

	
$8,000,000

	
100%

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