THIS NOTE HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAS BEEN
ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE
EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED
THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED IN CONNECTION WITH
SUCH TRANSFER UNDER THE SECURITIES ACT OF 1933.
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$3,200,000
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Charlottesville,
Virginia
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August 4, 2008
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FOR
VALUE RECEIVED, the undersigned, PGX Health, LLC , a Delaware
limited liability company (together with its successors, the
“ Company ”), hereby unconditionally
promises to pay to the order of ADENOSINE THERAPEUTICS,
L.L.C. , a Virginia limited liability company (together with
its successors and permitted assigns, the “
Holder ”), without setoff or deduction, the
aggregate principal amount of Three Million Two Hundred Thousand
and 00/100 Dollars ($3,200,000), together with interest thereon as
provided herein. Capitalized terms used in this Note but not
otherwise defined herein have the meanings given such terms in
Article 5 hereof.
1.1
Interest . The outstanding principal amount of this Note
shall bear interest (computed on the basis of a 365 or 366 day
year, as the case may be) at a fixed rate equal to eleven percent
(11%) per annum, from the date hereof until paid. Accrued interest
shall be payable in arrears commencing on September 1, 2008
and continuing on the first day of each month thereafter until
April 1, 2011 (the “ Maturity Date
”), at which time all accrued and unpaid interest on this
Note shall be immediately due and payable.
1.2
Principal . The Company shall repay the principal amount of
this Note in thirty-two (32) equal payments of principal, each
in the amount of $100,000, commencing on September 1, 2008 and
continuing on the first day of each month thereafter until the
Maturity Date, at which time the entire then outstanding principal
balance of this Note shall be immediately due and
payable.
1.3
Business Days . Whenever payment of principal of, or
interest on, this Note shall be due on a date that is not a
Business Day, the date for payment thereof shall be the next
succeeding Business Day and interest due on the unpaid principal
shall accrue during such extension and shall be payable on such
succeeding Business Day.
ARTICLE 2
PREPAYMENTS; COLLATERAL SECURITY
2.1
Prepayment . The Company shall have the right to prepay the
principal amount of this Note in whole or in part, at any time and
from time to time, without payment of any premium or penalty
whatsoever, together with interest thereon accrued to the date of
prepayment, and any such prepayment shall be applied to reduce the
Company’s principal payment obligations under Section
1.2 ; provided that any such prepayment shall be in an amount
of not less than $500,000.
2.2
Collateral Security . Payment of this Note is secured
pursuant to the terms of that certain Security Agreement, dated of
even date herewith, between the Company and the Holder (the “
Security Agreement ”).
3.1
Events of Default . If one or more of the following events
(each an “ Event of Default ”) shall have
occurred and be continuing:
(a) the
Company shall fail to pay within five (5) Business Days of the
due date thereof any principal of this Note, any interest payable
hereunder, or any other amounts payable hereunder, or shall fail to
perform any of its other covenants or agreements hereunder, which
failure continues uncured more than thirty (30) days after
written notice thereof to the Company;
(b) the
occurrence of an event of default under the Security Agreement or
of an event of default under that certain secured promissory note,
dated of even date herewith, made by the Company payable to the
order of the Holder in the stated principal amount of
$22,000,000;
(c) Clinical
Data, Inc., a Delaware corporation (together with its successors,
“ CLDA ”), shall at any time fail to
satisfy the “current public information” conditions of
Rule 144(c)(1) under the Securities Act;
(d) any
default under that certain Guaranty Agreement, of even date
herewith, from CLDA to the Holder;
(e) any
merger or series of mergers of CLDA pursuant to which the surviving
entity is not controlled by those who were stockholders of CLDA
immediately prior to such merger or series or mergers, or any sale
or transfer of all or substantially all of the stock in, or the
assets of, CLDA or its subsidiaries;
(f) any
merger or series of mergers of the Company pursuant to which the
surviving entity is not controlled by those who owned the equity
interests in the Company immediately prior to such merger or series
or mergers, or any sale or transfer of all or substantially all of
the equity interests in, or the assets of, the Company;
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(g) any
merger or series of mergers of Cogenics, Inc., a Delaware
corporation (“ Cogenics ”), pursuant to
which the surviving entity is not controlled by those who were
stockholders of Cogenics immediately prior to such merger or series
or mergers, or any sale or transfer of all or substantially all of
the stock in, or the assets of, the Cogenics;
(h) any
of the Company, Cogenics or CLDA shall commence a voluntary case or
other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy,
insolvency or other similar law, now or hereafter in effect, or
seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official, or shall consent to any such
relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced
against it, or shall make a general assignment for the benefit of
creditors; or
(i) an
involuntary case or other proceeding shall b
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