Document:

Exhibit 10.27

 

This Note and payment hereof are subject to and governed by the terms of a Subordination Agreement dated as of November 1, 2013 by and among the Lender named below, Glaukos Corporation and Comerica Bank, the provisions of which are incorporated herein by this reference and made a part hereof.

 

FORM OF PROMISSORY NOTE DUE DECEMBER 31, 2016

 

$[                           ]

 

	
 
    	
Laguna   Hills, California
    
	
 
    	
 
    
	
 
    	
November 1,   2013
    

 

FOR VALUE RECEIVED, GLAUKOS CORPORATION, a Delaware corporation (“Company”), unconditionally promises to pay,                                (“Lender”), in the manner and at the place hereinafter provided, the principal amount of                          Dollars ($                        ) and interest thereon as provided below.  Interest only will be payable on this Note on the last day of each month commencing on November 30, 2013 and ending on December 31, 2014.  Thereafter, principal and interest will be payable on this Note, in consecutive monthly installments, consisting of $                       each, on the last day of each month commencing January 31, 2015 and ending December 31, 2016; provided that the last such installment shall be in the amount necessary to pay this Note in full.  Notwithstanding the foregoing, upon the occurrence of a Company Sale (as defined in that certain Agreement by and between Company and GMP VISION SOLUTIONS, INC., dated as of December 12, 2006, as amended from time to time), the entire remaining principal balance and all accrued and unpaid interest as of the date of such Company Sale shall be automatically immediately due and payable without presentment, demand, notice, protest or other requirements of any kind (all of which are hereby expressly waived by Company).

 

Interest on the unpaid principal amount will accrue, from the date hereof until paid in full, at the rate of 5% per annum; provided that any payment of principal or interest that is not paid in full within thirty (30) days of its due date shall bear interest payable upon demand at a rate that is 5% per annum in excess of the rate of interest otherwise payable under this Note.  In addition, interest on this Note shall be payable on the date of any prepayment or acceleration of this Note (to the extent accrued on the amount being prepaid or accelerated).  All computations of interest shall be made by Lender on the basis of a 365/366-day year, for the actual number of days elapsed in the relevant period (including the first day but excluding the last day).  In no event shall the interest rate payable on this Note exceed the maximum rate of interest permitted to be charged under applicable law.

 

1.                                      Payments.  All payments of principal and interest in respect of this Note shall be made in lawful money of the United States of America in same day funds to the Lender at                                               , Attn:                                           , or at such other place as Lender may direct.  Whenever any payment on this Note is stated to be due on a day that is not a Business Day, such payment shall instead be made on the next Business Day, and such extension of time shall be included in the computation of interest payable on this Note.  Each payment made hereunder shall be credited first to interest then

 

1

 

due and the remainder of such payment shall be credited to principal, and interest shall thereupon cease to accrue upon the principal so credited.  Lender and any subsequent holder of this Note agrees, by its acceptance hereof, that before disposing of this Note or any part hereof it will make a notation hereon of all principal payments previously made hereunder and of the date to which interest hereon has been paid; provided, however, that the failure to make a notation of any payment made on this Note shall not limit or otherwise affect the obligation of Company hereunder with respect to payments of principal or interest on this Note.

 

2.                                      Prepayments.  Company shall have the right at any time and from time to time to prepay the principal of this Note in whole or in part, without premium or penalty.  Any prepayment hereunder shall be accompanied by any unpaid interest accrued on the principal amount of the Note being prepaid to the date of such prepayment.

 

3.                                      Events of Default.  Except to the extent restricted by the Subordination Agreement, the occurrence of any of the following events shall constitute an “Event of Default”:

 

(a)         failure of Company to pay any principal, interest or other amount due under this Note within one hundred twenty (120) days of the date such amount is due, provided, that if an Event of Default occurs pursuant to this Section 3(a), such Event of Default shall be deemed to have occurred as of the date that such payment was originally due; or

 

(b)         (i) a court having jurisdiction in the premises shall enter a decree or order for relief in respect of Company in an involuntary case under Title 11 of the United States Code entitled “Bankruptcy” (as now and hereinafter in effect, or any successor thereto, the “Bankruptcy Code”) or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal or state law; or (ii) an involuntary case shall be commenced against Company under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over Company or over all or a substantial part of its property shall have been entered; or the involuntary appointment of an interim receiver, trustee or other custodian of Company for all or a substantial part of its property shall have occurred; or a warrant of attachment, execution or similar process shall have been issued against any substantial part of the property of Company, and, in the case of any event described in this clause (ii), such event shall have continued for 60 days unless dismissed, bonded or discharged; or

 

(c)          an order for relief shall be entered with respect to Company, or Company shall commence a voluntary case under the Bankruptcy Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the

 

2

 

appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; or Company shall make an assignment for the benefit of creditors; or Company shall be unable or fail, or shall admit in writing its inability, to pay its debts as such debts become due; or the Board of Directors of Company (or any committee thereof) shall adopt any resolution or otherwise authorize action to approve any of the foregoing; or

 

(d)         Company shall challenge, or institute any proceedings to challenge, the validity, binding effect or enforceability of this Note or any endorsement of this Note or any other obligation to Lender; or

 

(e)          If there is any default or other failure to perform by the Company under that certain Loan and Security Agreement, dated as of June 5, 2013, by and between Comerica Bank and Company, as it may be amended from time to time resulting in a right by Comerica Bank to accelerate the maturity of the indebtedness owed thereunder; or

 

(f)           Lender shall not have or shall cease to have a valid and perfected second priority security interest in the collateral described in the Security Agreement.

 

4.                                      Remedies.  Upon the occurrence of any Event of Default specified in Section 3(b) or 3(c) above, the principal amount of this Note together with accrued interest thereon shall become immediately due and payable, without presentment, demand, notice, protest or other requirements of any kind (all of which are hereby expressly waived by Company).  Upon the occurrence and during the continuance of any other Event of Default, Lender may, by written notice to Company, declare the principal amount of this Note together with accrued interest thereon to be due and payable, and the principal amount of this Note together with such interest shall thereupon immediately become due and payable without presentment, further notice, protest or other requirements of any kind (all of which are hereby expressly waived by Company.  Notwithstanding anything else in this Note to the contrary, upon the occurrence and during the continuance of any Event of Default, interest on the entire unpaid principal amount shall accrue, from the date of the occurrence of such Event of Default, at the rate of 10% per annum.

 

5.                                      Definitions.  The following terms used in this Note shall have the following meanings (and any of such terms may, unless the context otherwise requires, be used in the singular or the plural depending on the reference):

 

“Business Day” means any day other than a Saturday, Sunday or legal holiday under the laws of the State of California or any other day on which banking institutions located in such state are authorized or required by law or other governmental action to close.

 

“Event of Default” means any of the events set forth in Section 3.

 

“Person” means any individual, partnership, limited liability company, joint venture, firm, corporation, association, bank, trust or other enterprise, whether or not a legal entity, or any government or political subdivision or any agency, department or instrumentality thereof.

 

3

 

“Security Agreement” means the Security Agreement dated as of the date hereof by and between Company and Lender, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Subordination Agreement” means the Subordination Agreement dated as of the date hereof by and among Lender, Company and Comerica Bank, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

6.                                      Miscellaneous.

 

(a)                                 All notices and other communications provided for hereunder shall be in writing (including faxes) and mailed, telecopied, or delivered as follows: if to Company, at its address specified opposite its signature below; and if to Lender, at        , Attn:                             .; or in each case at such other address as shall be designated by Lender or Company.  All such notices and communications shall, when mailed, faxed or sent by overnight courier, be effective when deposited in the mails, delivered to the overnight courier, as the case may be, or sent by fax.  Electronic mail may be used to distribute routine communications; provided that no signature with respect to any notice, request, agreement, waiver, amendment, or other documents may be sent by electronic mail.

 

(b)                                 THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND LENDER HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

 [Remainder of page intentionally left blank]

 

4

 

IN WITNESS WHEREOF, Company has caused this Promissory Note to be executed and delivered by its duly authorized officer, as of the day and year and at the place first above written.

 

	
 
    	
GLAUKOS   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
Address:
    	
26051   Merit Circle, Suite 103
    
	
 
    	
 
    	
Laguna   Hills, CA 92653
    
	
 
    	
Telephone:
    	
(949)   367-9600
    
	
 
    	
Fax:
    	
(949)   949-9984
    
	
 
    	
Email:
    	
rharrison@glaukos.com
    

 

Signature Page to Promissory NoteExhibit 10.28

 

This Security Agreement and the exercise of the rights granted hereunder are subject to and governed by the terms of a Subordination Agreement dated as of November 1, 2013 by and among the Secured Party named below, Glaukos Corporation and Comerica Bank, the provisions of which are incorporated herein by this reference and made a part hereof.

 

FORM OF SECURITY AGREEMENT

 

This SECURITY AGREEMENT (this “Agreement”) is dated as of November 1, 2013 and entered into by and between Glaukos Corporation, a Delaware corporation (“Grantor”), and                                    , as Lender (in such capacity, the “Secured Party”).

 

RECITALS

 

A.                                    Grantor has delivered to Secured Party a Secured Promissory Note in the principal amount of $                         and dated the date hereof (as it may hereafter be amended, restated, supplemented or otherwise modified from time to time, the “Note”).

 

B.                                    Grantor has agreed to grant the security interests contemplated by this Agreement in order to further secure payment of the Note.

 

NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor hereby agrees with Secured Party as follows:

 

SECTION 1.                         Grant of Security.

 

Grantor hereby grants to Secured Party a security interest in, all of Grantor’s right, title and interest in all personal property of Grantor of every kind, whether presently existing or hereafter created or acquired, and wherever located, including but not limited to the following: (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and all of Grantor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records; and (b) any and all cash proceeds and/or noncash proceeds thereof, including, without limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment (collectively, the “Collateral”).  All terms above have the meanings given to them in the California Uniform Commercial Code, as amended or supplemented from time to time

 

Notwithstanding the foregoing, the Collateral shall not include any copyrights, patents, trademarks, servicemarks and applications therefor, now owned or hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing.

 

 

Notwithstanding anything herein to the contrary, in no event shall the Collateral include, and Grantor shall not be deemed to have granted a security interest in, any of Grantor’s rights or interests in or under: (a) any license, contract, permit, Instrument, Security or franchise or any of its rights or interests thereunder to the extent, but only to the extent, that such a grant would, under the terms of such license, contract, permit, Instrument, Security or franchise, result in a breach of the terms of, or constitute a default under, such license, contract, permit, Instrument, Security or franchise (other than to the extent that any such term would be rendered ineffective pursuant to the UCC or any other applicable law (including the Bankruptcy Code) or principles of equity); provided, that immediately upon the ineffectiveness, lapse or termination of any such provision the Collateral shall include, and Grantor shall be deemed to have granted a security interest in, all such rights and interests as if such provision had never been in effect; (b) any assets subject to purchase money or other equipment financing liens (but only to the extent secured by the assets financed); and (c) any Equity Interests issued by a Person if such Person is a controlled foreign corporation (as such term is defined in Section 957(a) of the Internal Revenue Code of 1986, as amended) to the extent that creation of a security interest by Grantor in such Equity Interests could reasonably be expected to result in material adverse tax consequences to Grantor, it being acknowledged and agreed that the creation of a security interest in Equity Interests possessing up to 66% of the voting power of all classes of Equity Interests of such Person entitled to vote will not result in such adverse tax consequences.

 

SECTION 2.                         Security for Obligations.

 

This Agreement secures, and the Collateral is collateral security for, the prompt payment in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of the obligations of Grantor under the Note.

 

SECTION 3.                         Remedies.

 

If any Event of Default shall have occurred and be continuing, Secured Party may exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default under the UCC (whether or not the UCC applies to the affected Collateral).

 

SECTION 4.                         Amendments; Etc.

 

No amendment, modification, termination or waiver of any provision of this Agreement, and no consent to any departure by Grantor therefrom, shall in any event be effective unless the same shall be in writing and signed by Secured Party and, in the case of any such amendment or modification, by Grantor and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.

 

SECTION 5.                         Notices.

 

Any notice or other communication herein required or permitted to be given shall be in writing and may be personally served or sent by telefacsimile or United States mail or courier service and shall be deemed to have been given when delivered in person or by courier service, upon receipt of telefacsimile, or three (3) Business Days after depositing it in the United states mail with postage prepaid and properly addressed. For the purposes hereof, the address of

 

2

 

each party hereto, shall be set forth under such party’s name on the signature pages hereof or such other address as shall be designated by such party in a written notice delivered to the other parties hereto.

 

SECTION 6.                         Severability.

 

In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

SECTION 7.                         Headings.

 

Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect.

 

SECTION 8.                         Governing Law; Rules of Construction.

 

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA (INCLUDING, WITHOUT LIMITATION, SECTION 1646.5 OF THE CIVIL CODE OF THE STATE OF CALIFORNIA), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, EXCEPT TO THE EXTENT THAT THE UCC PROVIDES THAT THE PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF CALIFORNIA.

 

SECTION 9.                         Counterparts.

 

This Agreement may be executed in one or more counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.

 

SECTION 10.                  Definitions.

 

(a)                                 Each capitalized term utilized in this Agreement that is not defined in this Agreement, but that is defined in the UCC, including the categories of Collateral listed in Section 1 hereof shall have the meaning set forth in Divisions 1, 8 or 9 of the UCC.

 

(b)                                 In addition, the following terms used in this Agreement shall have the following meanings:

 

“Collateral” has the meaning set forth in Section 1 hereof.

 

3

 

“Event of Default” means any Event of Default as defined in the Note.

 

“Note” has the meaning set forth in the Recitals of this Agreement.

 

“UCC” means the Uniform Commercial Code, as it exists on the date of this Agreement or as it may hereafter be amended, in the State of California.

 

[Remainder of page intentionally left blank]

 

4

 

IN WITNESS WHEREOF, Grantor and Secured Party have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

 

 

	
 
    	
GLAUKOS CORPORATION, as Grantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Notice   Address:
    
	
 
    	
 
    	
 
    
	
 
    	
26501   Merit Circle, Suite 103
    
	
 
    	
Laguna   Hills, California 92653
    
	
 
    	
Attention:
    
	
 
    	
Fax:   (949) 949-9984
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
                    .,   as   Lender and as Secured Party
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Notice   Address:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    
	
 
    	
Fax:
    

 

Signature Page to Security Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]