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EXHIBIT 10.1
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AMENDED AND RESTATED SECURITY AGREEMENT
THIS AMENDED AND RESTATED SECURITY AGREEMENT (the "Agreement"),
is
entered into and made effective as of June 14, 2007, by and
between Thomas
Pharmaceuticals, Ltd., a New Jersey Corporation, with its
principal office at
750 Route 34, Matawan, NJ, 07747 (the "Company"), Thomas
Pharmaceutical
Acquisition Corp., a Delaware corporation with its principal
office at 320 West
22nd Street, Suite 3A, New York, NY 10011 ("Thomas Acquisition")
and BioBridge
LLC, a California limited liability company, with its principal
office at 15941
Overlook Drive, Los Gatos, CA 95030, (the "Secured Party").
WHEREAS, the Parties entered into a Stock Purchase Agreement
dated
August 7, 2006 (the "Agreement");
WHEREAS, pursuant to said Stock Purchase Agreement because a
Closing
of the Agreement did not occur prior to October 31, 2006,
iVoice, Inc.
("iVoice") is permitted to terminate the right of Thomas
Acquisition to
effectuate a Closing of the Stock Purchase Agreement pursuant to
Article X
Section 10.1 thereof;
WHEREAS, the Thomas Acquisition is seeking to obtain financing
in
order to enable Thomas Acquisition to consummate the purchase
transaction
provided for in the Stock Purchase Agreement (the
"Financing");
WHEREAS, the Thomas Acquisition is also seeking to obtain
interim
funds amounting to $200,000 ("Bridge Financing") for operations
of the Company
pending completion of the Financing through the issuance of a
secured
convertible debenture of the Thomas Acquisition convertible for
securities of
the Company (the "Purchaser Secured Convertible Debenture")
under certain
conditions provided for herein;
WHEREAS, the holder(s) of the Purchaser Secured Convertible
Debenture
intend to deposit funds into an account of Thomas Acquisition
and disburse the
same as provided hereinafter, as a loan to the Company which
loan is represented
by a note ("Note") executed by the Company;
WHEREAS, the parties herein wish to delete and replace in
its
entirely Section 4.2 of the Security Agreement dated January 26,
2007 between
the parties herein and wish to execute an Amended and Restated
Security
Agreement; and
NOW, THEREFORE, in consideration of the premises and the
mutual
covenants herein contained, and for other good and valuable
consideration, the
adequacy and receipt of which are hereby acknowledged, the
parties hereto hereby
agree as follows:
<PAGE>
ARTICLE 1.
DEFINITIONS AND INTERPRETATIONS
Section 1.1. Recitals.
The above recitals are true and correct and are incorporated
herein,
in their entirety, by this reference.
Section 1.2. Interpretations.
Nothing herein expressed or implied is intended or shall be
construed
to confer upon any person other than the Secured Party any
right, remedy or
claim under or by reason hereof.
Section 1.3. Obligations Secured.
In exchange and the consideration for the Secured Party
purchasing
the Purchaser Secured Convertible Debenture No. 1 dated the date
hereof and
thereby permitting Thomas Acquisition to loan to Thomas
Pharmaceuticals Ltd,
(the "Company") One Hundred and Sixty Thousand Dollars
($160,000) on the date
hereof in the form of a Note, the Company hereby agrees to
permit the Secured
Party to secure the obligations pursuant to this Security
Agreement and such
Purchaser Secured Convertible Debenture No. 1 dated the date
hereof for the sum
of One Hundred and Three Thousand Two Hundred Dollars ($103,200)
and any other
amounts now or hereafter owed to the Secured Party by Thomas
Acquisition
thereunder or hereunder, excluding the Purchaser Convertible
Debenture No. 2
(collectively, the "Obligations").
ARTICLE 2.
PLEDGED PROPERTY, ADMINISTRATION OF COLLATERAL
AND TERMINATION OF SECURITY INTEREST
Section 2.1. Pledged Property.
(a) Company hereby pledges to the Secured Party, and
creates in the Secured Party for its benefit, a security
interest in and to all
of the property of the Company as set forth in Exhibit A
attached hereto and the
products thereof and the proceeds of all such items
(collectively, the "Pledged
Property") for such time until the Obligations are paid in
full.
(b) Simultaneously with the execution and delivery of this
Agreement, the Company shall make, execute, acknowledge, file,
record and
deliver to the Secured Party any documents reasonably requested
by the Secured
Party to perfect its security interest in the Pledged Property.
Simultaneously
with the execution and delivery of this Agreement, the Company
shall make,
execute, acknowledge and deliver to the Secured Party such
documents and
instruments, including, without limitation, financing
statements, certificates,
affidavits and forms as may, in the Secured Party's reasonable
judgment, be
necessary to effectuate, complete or perfect, or to continue and
preserve, the
security interest of the Secured Party in the Pledged Property,
and the Secured
Party shall hold such documents and instruments as secured
party, subject to the
terms and conditions contained herein.
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<PAGE>
Section 2.2. Rights; Interests; Etc.
(a) So long as no Event of Default (as hereinafter defined)
shall have occurred and be continuing:
(i) the Company shall be entitled to exercise any
and all rights pertaining to the Pledged Property or any part
thereof for any
purpose not inconsistent with the terms hereof; and
(ii) the Company shall be entitled to receive and
retain any and all payments paid or made in respect of the
Pledged Property.
(b) Upon the occurrence and during the continuance of an
Event of Default:
(i) All rights of the Company to exercise the
rights which it would otherwise be entitled to exercise pursuant
to Section
2.2(a)(i) hereof and to receive payments which it would
otherwise be authorized
to receive and retain pursuant to Section 2.2(a)(ii) hereof
shall be suspended,
and all such rights shall thereupon become vested in the Secured
Party who shall
thereupon have the sole right to exercise such rights and to
receive and hold as
Pledged Property such payments; PROVIDED, HOWEVER, that if the
Secured Party
shall become entitled and shall elect to exercise its right to
realize on the
Pledged Property pursuant to Article 5 hereof, then all cash
sums received by
the Secured Party, or held by Company for the benefit of the
Secured Party and
paid over pursuant to Section 2.2(b)(ii) hereof, shall be
applied against any
outstanding Obligations;
(ii) All interest, dividends, income and other
payments and distributions which are received by the Company
contrary to the
provisions of Section 2.2(b)(i) hereof shall be received in
trust for the
benefit of the Secured Party, shall be segregated from other
property of the
Company and shall be forthwith paid over to the Secured Party;
and
(iii) The Secured Party in its sole discretion
shall be authorized to sell any or all of the Pledged Property
at public or
private sale in order to recoup all of the outstanding principal
plus accrued
interest owed pursuant to the Debenture as described herein
(c) Each of the following events shall constitute a default
under this Agreement (each an "Event of Default"):
(i) any default, whether in whole or in part,
shall occur in the payment to the Secured Party of principal,
interest or other
item comprising the Obligations as and when due or with respect
to any other
debt or obligation of the Company to a party other than the
Secured Party;
(ii) any default, whether in whole or in part,
shall occur in the due observance or performance of any
obligations or other
covenants, terms or provisions to be performed under the
Transaction Documents
(as defined in the Merger Agreement);
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<PAGE>
(iii) the Company shall: (1) make a general
assignment for the benefit of its creditors; (2) apply for or
consent to the
appointment of a receiver, trustee, assignee, custodian,
sequestrator,
liquidator or similar official for itself or any of its assets
and properties;
(3) commence a voluntary case for relief as a debtor under the
United States
Bankruptcy Code; (4) file with or otherwise submit to any
governmental authority
any petition, answer or other document seeking: (A)
reorganization, (B) an
arrangement with creditors or (C) to take advantage of any other
present or
future applicable law respecting bankruptcy, reorganization,
insolvency,
readjustment of debts, relief of debtors, dissolution or
liquidation; (5) file
or otherwise submit any answer or other document admitting or
failing to contest
the material allegations of a petition or other document filed
or otherwise
submitted against it in any proceeding under any such applicable
law; or (6) be
adjudicated a bankrupt or insolvent by a court of competent
jurisdiction; or
(iv) any case, proceeding or other action shall
be commenced against the Company for the purpose of effecting,
or an order,
judgment or decree shall be entered by any court of competent
jurisdiction
approving (in whole or in part) anything specified in Section
2.2(c)(iii)
hereof, or any receiver, trustee, assignee, custodian,
sequestrator, liquidator
or other official shall be appointed with respect to the
Company, or shall be
appointed to take or shall otherwise acquire possession or
control of all or a
substantial part of the assets and properties of the Company,
and any of the
foregoing shall continue unstayed and in effect for any period
of thirty (30)
days.
ARTICLE 3.
ATTORNEY-IN-FACT; PERFORMANCE
Section 3.1. Secured Party Appointed Attorney-In-Fact.
Upon the occurrence of an Event of Default, the Company
hereby
appoints the Secured Party as its attorney-in-fact, with full
authority in the
place and stead of the Company and in the name of the Company or
otherwise, from
time to time in the Secured Party's discretion to take any
action and to execute
any instrument which the Secured Party may reasonably deem
necessary to
accomplish the purposes of this Agreement, including, without
limitation, to
receive and collect all instruments made payable to the Company
representing any
payments in respect of the Pledged Property or any part thereof
and to give full
discharge for the same. The Secured Party may demand, collect,
acknowledge,
receipt for, settle, compromise, adjust, sue for, foreclose, or
realize on the
Pledged Property as and when the Secured Party may determine. To
facilitate
collection, upon the occurrence of an Event of Default, the
Secured Party may
notify account debtors and obligors on any Pledged Property to
make payments
directly to the Secured Party.
Section 3.2. Secured Party May Perform.
If the Company fails to perform any agreement contained herein,
the
Secured Party, at its option, may itself perform, or cause
performance of, such
agreement, and the expenses of the Secured Party incurred in
connection
therewith shall be included in the Obligations secured
hereby.
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<PAGE>
ARTICLE 4.
REPRESENTATIONS AND WARRANTIES
Section 4.1. Authorization; Enforceability.
Each of the parties hereto represents and warrants that it has
taken
all action necessary to authorize the execution, delivery and
performance of
this Agreement and the transactions contemplated hereby; and
upon execution and
delivery, this Agreement shall constitute a valid and binding
obligation of the
respective party, subject to applicable bankruptcy, insolvency,
reorganization,
moratorium and similar laws affecting creditors' rights or by
the principles
governing the availability of equitable remedies.
Section 4.2. Ownership of Pledged Property.
The Company warrants and represents that it is the legal and
beneficial owner of the Pledged Property, subject to the liens
and security
interests created by (a) that certain Security Agreement by and
between Thomas
Pharmaceuticals Ltd., f/k/a iVoice Acquisition Corp. and iVoice,
Inc. and (b)
the security interest created by this Agreement.
ARTICLE 5.
DEFAULT; REMEDIES; SUBSTITUTE COLLATERAL
Section 5.1. Default and Remedies.
(a) If an Event of Default described in Section 2.2(c)(i)
and (ii) occurs, then in each such case the Secured Party may
declare the
Obligations to be due and payable immediately, by a notice in
writing to the
Company, and upon any such declaration, the Obligations shall
become immediately
due and payable. If an Event of Default described in Sections
2.2(c)(iii) or
(iv) occurs and is continuing for the period set forth therein,
then the
Obligations shall automatically become immediately due and
payable without
declaration or other act on the part of the Secured Party.
(b) Upon the occurrence of an Event of Default, the Secured
Party shall: (i) be entitled to receive all distributions with
respect to the
Pledged Property, (ii) to cause the Pledged Property to be
transferred into the
name of the Secured Party or its nominee, (iii) to dispose of
the Pledged
Property, and (iv) to realize upon any and all rights in the
Pledged Property
then held by the Secured Party.
Section 5.2. Method of Realizing Upon the Pledged Property:
Other
Remedies.
Upon the occurrence of an Event of Default, in addition to any
rights
and remedies available at law or in equity, the following
provisions shall
govern the Secured Party's right to realize upon the Pledged
Property:
(a) Any item of the Pledged Property may be sold for cash
or other value in any number of lots at brokers board, public
auction or private
sale and may be sold without demand, advertisement or notice
(except that the
Secured Party shall give the Company
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<PAGE>
ten (10) days' prior written notice of the time and place or of
the time after
which a private sale may be made (the "Sale Notice")), which
notice period is
hereby agreed to be commercially reasonable. At any sale or
sales of the Pledged
Property, the Company may bid for and purchase the whole or any
part of the
Pledged Property and, upon compliance with the terms of such
sale, may hold,
exploit and dispose of the same without further accountability
to the Secured
Party. The Company will execute and deliver, or cause to be
executed and
delivered, such instruments, documents, assignments, waivers,
certificates, and
affidavits and supply or cause to be supplied such further
information and take
such further action as the Secured Party reasonably shall
require in connection
with any such sale.
(b) Any cash being held by the Secured Party as Pledged
Property and all cash proceeds received by the Secured Party in
respect of, sale
of, collection from, or other realization upon all or any part
of the Pledged
Property shall be applied as follows:
(i) first, to the payment of all amounts due the
Secured Party for the expenses reimbursable to it hereunder or
owed to it
pursuant to Section 8.3 hereof;
(ii) second, to the payment of the Obligations
then due and unpaid; and
(iii) the balance, if any, to the person or
persons entitled thereto, including, without limitation, the
Company.
(c) In addition to all of the rights and remedies which the
Secured Party may have pursuant to this Agreement, the Secured
Party shall have
all of the rights and remedies provided by law, including,
without limitation,
those under the Uniform Commercial Code.
(i) If the Company fails to pay such amounts due
upon the occurrence of an Event of Default which is continuing,
then the Secured
Party may institute a judicial proceeding for the collection of
the sums so due
and unpaid, may prosecute such proceeding to judgment or final
decree and may
enforce the same against the Company and collect the monies
adjudged or decreed
to be payable in the manner provided by law out of the property
of Company,
wherever situated.
(ii) The Company agrees that it shall be liable
for any reasonable fees, expenses and costs incurred by the
Secured Party in
connection with enforcement, collection and preservation of the
Transaction
Documents, including, without limitation, reasonable legal fees
and expenses,
and such amounts shall be deemed included as Obligations secured
hereby and
payable as set forth in Section 8.3 hereof.
Section 5.3. Proofs of Claim.
In case of the pendency of any receivership, insolvency,
liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition
or other
judicial proceeding relating to the Company or the property of
the Company or of
such other obligor or its creditors, the Secured Party
(irrespective of whether
the Obligations shall then be due and payable as therein
expressed or by
declaration or otherwise and irrespective of whether the Secured
Party shall
have made any demand on the Company for the payment of the
Obligations) shall be
entitled and empowered, by intervention in such proceeding or
otherwise:
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