Exhibit 4.3
VAEKSTFONDEN
Tagensvej 137
DK-2200 Kobenhavn N
Telefon: 35 86 86 35
Telefax: 35 86 86 36
Laneaftale
Debitor Phytera A/S under stiftelse
c/o Dragsted & Helmer Nielsen
Advokat Mogens Bach
Radhuspladsen 4
1550 Kobenhavn V
A/S-reg.nr.
SE-nr.
erkender herved at skylde
Kreditor VaekstFonden, Tagensvej 137, 2200 Kobenhavn N
Projekt nr. og betegnelse 1211 Phytera
- ---------------------------- --------------------------------------------------
Lanetype FU-lan
- ---------------------------- --------------------------------------------------
Lanebelob, kr. 13.232.7000
- ---------------------------- --------------------------------------------------
Projektnr. 1211
- ---------------------------- --------------------------------------------------
Udbetaling Lanet udbetales I 3-maneders rater forud
- ---------------------------- --------------------------------------------------
Projektbudget, kr. 29.406.000
- ---------------------------- --------------------------------------------------
Finansieringsprocent 45
- ---------------------------- --------------------------------------------------
Projektperiode, start* 01.11.1995
- ---------------------------- --------------------------------------------------
Projektperiode, slut 31.12.1998
- ---------------------------- --------------------------------------------------
- ---------------------------- --------------------------------------------------
Rente** p.a., fast 7,98%
- ---------------------------- --------------------------------------------------
Rente** p.a., variabel 7,98%. Renten fastsaettes den forste bankdag I
hver maned
- ---------------------------- --------------------------------------------------
Forrentning sker fra Udbetaling
- ---------------------------- --------------------------------------------------
Morarente 14% p.a.
- ---------------------------- --------------------------------------------------
Stempelafgift, lan, kr. 39.698
- ---------------------------- --------------------------------------------------
Losoreejerpantebrev, kr. 150, forudsat vaerdipategning 10,000
- ---------------------------- --------------------------------------------------
Retsafgift, kr. 700
- ---------------------------- --------------------------------------------------
- ---------------------------- --------------------------------------------------
Terminsdatoer, kr. 01.04, 01.07, 01.10, 01.01
- ---------------------------- --------------------------------------------------
1. ydelse 01.04.1999
- ---------------------------- --------------------------------------------------
Ydelse pr. termin*** Se tilbagebetalingsoversigt af 12.12.1955
- ---------------------------- --------------------------------------------------
Royaltyprocent**** 12,23
- ---------------------------- --------------------------------------------------
- ---------------------------- --------------------------------------------------
Projektrapporteringsdatoer 01.04, 01.07, 01.10, 01.01
- ---------------------------- --------------------------------------------------
1. gang den 01.04.1996 for perioden indtil 31.12.1996
- ---------------------------- --------------------------------------------------
Indsendelsesfrist 3 uger
- ---------------------------- --------------------------------------------------
Sikkerhed Pant I projektet
- ---------------------------- --------------------------------------------------
*) Omkost for arbejde udfort for projektets startdata medfinansieres ikke.
**) Renten tilskrives kvartalsvis bagud.
***) Afdragenes storrelse fremglr af vedlagte tilbagebetalingsoversigt.
****) Se under afonittet oen tilbagetetaling pa side 2.
Forudsaetning Lanet gives under forudsaetning af, at
. projektet udfores som specificeret I det
ansogningsmateriale, VaekstFonden har lagt til
grund for bevillingen,
. projektets budget f0lges, jf. VaekstFonden
budgetskema,
. royalty beregnes af Phytera Inc.'s samlede
koncernomsaetning.
. lanet tilbagebetales over maks. 5 ar efter
projektafslutning. Erlagt royalty tilbagebetales
ikke i forbindelse med en evt.
gaeldsnedskrivning.
. DUF skal have en repraesentant i Phytera Inc.'s
bestyrelse indtil en evt. b0rsintroduktion af
Phytera Inc.
. semest 1/2 ar efter udbetaling af 1. rate skal
det danske selskab have ansat en fuldtidsdirekt0r
. lanet forfalder til betaling uden ret til
gaeldsnedskrivning, hvis antal let af
udviklingspersonale i Phytera A/S falder til
under 8 personer, inden lanet er tilbagebetalt.
. VaekstFonden vil lade foretage en evaluering af
projektet, der afsluttes senest den 30. marts
1997. Indtil evalueringen er gennemf0rt med et
efter VaekstFondens sk0n positivt resltat, kan
der h0jst ud betales 4 mio. kr. pa lanet.
Projektets forl0b, Phytera Inc.'s finansielle
situation samt forventningerne til det danske
selskabs kommercialiseringsmuligheder indgar i
evalueringen.
Betingelser 1. rate udbetales, nar VaekstFonden har modtaget
for udbetaling denne aftale i underskrevet stand sammen med de
0vrige oplysninger og dokumenter, angivet i
f0lgebrevet, og nar f0lgende betingelser er
opfyldt:
. Phytera A/S skal vaere etableret med en kontant
indbetalt aktiekapital pa 500.000 kr.
. kautionserklaering fra Phytera Inc. er modtaget.
. Phytera Inc. skal tilf0res 6,0 mio. USD i ny
aktiekapital, heraf milnimum 1,8 mio. USD fra
DUF (Series C Preferred Shares).
Inden 2 rate udbetales skal VaekstFonden endvidere
modtage
. anmaerkningsfrit tinglyst l0s0reejerpantebrev.
2
Sikkerhed L0s0reejerpantebrev 13.232.700 kr. med pant i
projektrettighederne.
Tilbagebetaling Lanet afvikles som anf0rt i laneaftalen og
tilbagebetalingsoversigten. Ydelserne opkraeves via PBS.
Tilbagebetalingsaftalen kan ikke aendres.
Afviklingen er fastsat ud fra en beregnet royalty af Phytera
Inc.'s forventede omsaetning. Royaltyprocenten er anf0rt pa
side l i denne laneaftale.
Hvis der resterer en restgaeld den sidste terminsdato,
fortsaetter afvikllingen af lanet med samme terminsdatoer som
anf0rt i laneaftalen og med samme ydelse som den, der
forfalder den sidste termin, jf. tilbagebetalingsoversigten.
Royaltyen beregnes af:
Phytera Inc.'s samlede koncernomsaetning.
Anvendes projektets/projekternes resultater belt eller
delvist i andre produkter, markeder, ydelser eller projekter,
skal omsaetningen herfra medregnes fuldt ud i den omsaetning,
hvoraf royaltyen beregnes. Saelges eller overdrages
rettigheder eller know-how til projektet eller dele heraf,
hereunder aftaler om licens, betales en royalty til
VaekstFonden pa 25% af bruttoindtaegten.
Gaeldsnedskrivning Lantager kan til enhver tid forlange nedskrivning af
restgaelden mod overdragelse af samtlige projektrettigheder,
herunder samtlige salgsrettigheder jf. afsnittet om
tilbagebetaling. Lantager haeter dog stadig for et bel0b
svarende til royaltyen af enhver omsaetning, projektet bar
skabt. Royaltyprocenten er anf0rt pa side 1. Royaltybel0bet
reguleres med betalte ydelser, erlagte ydelser tilbage
betales ikke.
Rettigheder Lantager indestar for, at rettighederne til
udviklingsprojektet alene tilh0rer lantager.
Erklaering Lantager erklaerer ikke at have ans0gt eller modtaget anden
offentlig st0tte til dette eller til graensende projekter,
uden at VaekstFonden skriftligt har faet meddelelse herom.
0vrige betingelser Lantager har modtaget:
. tilbagebetalingsoversigt, dateret 12 december 1995,
. VaekstFondens budgetskema og
. VaekstFondens almindelige betingelser
for lan, august 1995, som uden
yderligere underskrift gaelder for
lanet.
3
Valg af rente Lanet 0nskes med: [x] fast rente [_] variabel rente
Valget galder for hele lanets labetid.
Laneaftalen underskrives i 2 eksemplarer.
Dato 11/4/96 Dato 11 april 1996
----------------------------- ---------------------------
Phytera A/S under stiftelse VaekstFonden
/s/ Bent Kiemer
/s/ Gustav A. Christensen /s/ Otto Kjaegaard
----------------------------------- ---------------------------------
(Navnene skrives tillige med Bent Kiemer Otto Kjaegaard
Til vitterlighed for sa vidt angar lantager:
(bedes udfyldt med maskinskrift og underskrevet):
Navn: [illegible] Navn:
---------------------------- ----------------------------
Stilling: Stilling:
------------------------ ------------------------
Adresse: Adresse:
------------------------- -------------------------
Postnr/by: Postnr/by:
----------------------- -----------------------
Radhuspladeen 4 - 1550 K0benhavn V
Telefon 33 14 66 66 - Telefax 33 14 66 67
--------------------------------- ---------------------------------
Underskrift Underskrift
4
Stempel 150 kr.
Tingl.afgift 700 kr.
I alt 850 kr.
ANMELDER:
VaekstFonden
Tagensvej 137
2200 K0benhavn N
Tlf. 35 86 86 35
Vaedipategning
Det erklaeres pa tro og love, at vaedien
af pantet ikke overstiger 10.000 kr
Ejerpantebrev (L0s0re)
Debitors navn og adresse: Phytera A/S
c/o Advokatfirmaet Dragsted & Helmer Nielsen
Advokat Mogen Bach
Radhuspladsen 4
1550 Kobenhavn V
SE nr.
erkender herved at skylde
Kreditor Samme, eller den til hvem naevaerende
pantebrev matte blive overdraget, vaere sig
til pant eller pa anden made, uden
personligt gaeldsansvar.
Bel0bets st0rrelse: 13.232.700 kr.
skriver kr.
trettenmillionertohundrededetretitotusindesyvhunrede
Rente - og betalingsvilkar: Pantebrevet forrentes med 16% p.a. fra
overdragelsen at regne Renten erlaegges
hver 11. juni og 11. december termin.
halvarligt bagud, f0rste gang i den
f0rste termin efter overdragelsen.
Pantegenstanden: Samtige de ophavsrettigheder, der knytter
sig til pantsaetters udvikling af
plantekulturer med projektnummer 1211,
herunder alt materiale,softwarebeskrivelser,
kildetekster og alle resultater af enhver
art, der klart fremstar som h0rende til og
vaerende en del af projektet, herunder alle
tegninger, beskrivelser, diagrammer,
prototyper og det udviklede produckt og
eventuelle andre produkter, der er resultat
af ovennaevnte udviklingsarbejde.Panteretten
omfatter endvidere den af projektete
omfattede fond af teknisk know-how.
5
Yderligere omfatter pantet samtlige
indtaegter af pantet, herunder leje-,
licens- og forpagtningsafgift samt
forsikringssummer.
Foranstaende haeftelser: Ingen
Fuldmagtshaver: VaekstFonden bemyndiges til pa mine vegne at
underskrive pategninger af enhver art pa
dette pantebrev, herunder kvitterings-,
transport-, moderations-og
relaksationshpategninger.
Adressat for Meddelelser i henhold til Retsplejelovens
kap. 50 og ovrige meddelesler, der efter
eventuel meddelelse lovens bestemmelser skal senders til
om pantekreditor, bedes sendt til:
retsforf0lgning m.v.:
VaestFonden
Tagensvej 137
2200 K0benhavn N
0vrige kredit-
oplysninger Er pantebrevet omfattet af lov om
kreditaftaler JA [_] NEJ [x]
Opsigelse: Pantebrevet kan til enhver tid opsiges af
kreditor eller af debitor uden varsel.
NB. Adresseaendring skal meddeles til kreditor.
Ved forsinket betaling af renter og afdrafg
kan kreditor forlange kapitalen indfriet, se
sidste side, punkt 7a.
I 0rigt gaelder Justitsministeriets nedenstaende pantebrevsformular L0S0RE
(sidste side)
For sa vidt pantebrevet alene underskrives
af debitor, erklaerer denne samtidig at
vaere ugift eller at pantet ikke omfattes af
lov om aegteskabets retsvirkninger ss. 19.
Dato: [illegible] , den Aug. 8, 96
-------------------- ------------------
Phytera A/S
Debitors
underskrift /s/ Gustav A. Christensen /s/ Malcolm Morville
--------------------------------------------------
Navnet bedes tillige anfort med maskinskrift
/blokbogstaver
For sa vidt debitor er gift, erklaerer
medunderskrevne aegtefaelle samtykke i
pantsaetningen. Er aegtaellen medejer,
underskrives som debitor og pantsaeter.
6
Aegtefaelle: ___________________________________________
Til vitterlighed om underskriftens aethed,
dateringens rigtighed samt underskriverens
myndighed (bedes udfuldt med maskinskrift:
Navn:_________________________ Navn:___________________________
Stilling:_____________________ Stilling:_______________________
Bopael:_______________________ Bopael:_________________________
- ----------------------------- --------------------------------
Underskrift Underskrift
7
Pantsaetter Phytera A/S
c/o Advokatfirmaet
Dragsted & Helmer Nielsen
Advokat Mogens Bach
Radhuspladsen 4
1550 K0benhavn V
Panthaver VaekstFonden, Tagensvej, 137, 2200 K0benhavn N
Pant Til sikkerhed for patnsaetters gaeld til panthaver i
henhold til laneaftale nr 1211 handpantsaettes 13.232.700
kr. l0s0reejerpantebrev med 1. priortets pant i projekt til
udvikling af plantekulturer.
L0s0reejerpantet tjener til sikkerhed for tilbagebetaling af
lan, renter og omkostninger.
Panteretten if0lge pantebrevet udvides ud over den i
pantebrevet angivne hovedstol med den pal0bne rente i indtil
5 ar. Udvidelsen beregnes af den oprindelige hovedstol med
den i pantebrevet anf0rte rentesats. Udvidelsen pantsaetning
ved pantebrevets pantsaetning til VaekstFonden og vedvarer
indtil det pantsattes eventuelle realisering, dog maks. 5
ar.
Betingelser VaekstFondens almindelige betingelser for lan, august 1995.
Dato 8-8-1996
Som pantsaetter Phytera A/S
Underskift /s/ Gustav A Christensen /s/ Malcolm Morville
----------------------------------------------------
Navnet anfores tillige med maskinskrift
Til vitterlighed for sa vidt angar lamtager: (bedes udfyldt
med maskinskrift og underskrevet):
Navn:_____________________ Navn:___________________
Stilling:_________________ Stilling:_______________
Adresse:__________________ Adresse:________________
Postnr/by:________________ Postnr/by:______________
-------------------------- ------------------------
Underskrift Underskrift
8
Kautionserklaering
Debitor Phytera A/S under stiftelse
c/o Advokafirmaet Dragsted & Helmer Nielsen
Advokat Mogens Bach
Radhuspladsen 4
1550 K0benhavn V
Kreditor VaekstFonden
Tagensvej 137
2200 K0benhavn N
Kautionist Phytera Inc. indestar som
selvskyldnerkautionist for betaling af
ethvert bel0b, som pahviler Phytera A/S
(under stifelse) i benhold til projekt 1211,
lan 13.232.700 kr. med tilh0rende
almindelige betingelser for lan dateret
august 1995.
Renterne tilskrives lanet.
Saerlige forudsaetninger Der gaelder saelige viklar fpr lanets
udbetaling og afvikling, jf. laneaftalen
med debitor. Saerligt skal kautionisten
vaere opmaerksom pa forudsaetningerne for
lanet jf. laneaftalen, hvor det bl.a.
fremgar, at
. Phytera Inc. skal acceptere, at det danske selskab selvstaendigt kan
kommercialisere egne udviklingsprojekter i det omfang disse retter sig mod
andet end den farmaceutiske industri.
. Royalty beregnes af Phytera Inc.'s samlede omsaetning.
. Lanet tilbagebetales over maks. 5 ar efter projektafslutning. Eriagt
royalty tilbagebetales ikke i forbindelse med en evt. gaeldsnedskrivning.
. DUF far en plads i Phytera Inc.'s bestyrelse indtil en evt.
b0rsintroduktion af Phytera Inc.
. Senest 1/2 ar efter udbetaling af 1. rate skal det danske selskab have
ansat en fuldtidsdirekt0r.
. Lanet forfalder til betaling uden ret til gaeldsnedskrivning, hvis antallet
af udviklingspersonale i Phytera A/S falder til under 8 personer, inden
lanet er tilbagebetalt.
. Senest nar den udbetalte del af naervaerende lan overstiger 4 mio. kr.,
vurderer VaekstFonden, om projektet forl0ber planmaessigt, samt om Phytera
Inc.'s finansielle situation fortsat kan sikre projektets gennemf0relse.
. VaelstFonden vil lade foretage en ekstern evaluering af projektet 12-15
maneder inde i udviklingsperioden med henblik pa Fondens fortsatte
medvirken. I denne evaluering vil
9
ogsa indga forventningerne til det danske
selskabs egne kommercialiseringsmuligheder.
Kaution Phytera Inc. indestar som selvskyldnerkautioinist. Lanet
tilbagebetales med en royalty af Phytera Inc.'s samlede
omsaetning, og Phytera Inc. er forpligtet til at udlevere
revisorattesterede omsaetningtal til VaelstFonden.
Betingelser I 0vrigt gaelder VaekstFondens almindelige
betingelser for lan, dateret august 1995.
Vaerneting og Lovvalg For alle krav som udspringer af eller er relateret til
naervaerende kautionsforpligtelse accepterer Phytera Inc.
at tvister afg0res efter dansk ret ved danske domstole.
Phytera Inc. accepterer, at en endelig dansk
domstolsafg0relse kan eksekveres over for selskabet i USA.
Den 4/11/96
Phytera Inc.
/s/ Christopher J. Pazoles
----------------------------------
Christopher J. Pazoles
10
English Translation
(Logo)
VAEKSTFONDEN
Loan Agreement
The Debtor: Phytera A/S under formation
c/o Dragsted & Helmer Nielsen, Law Office
Mr. Mogens Bach, attorney-at-law
No. 4 Radhuspladsen
DK-1550 Copenhagen V
Corporate Registration No.
SE-No.
hereby admits indebtedness to
The Creditor: VaekstFonden, No.137 Tagensvej, DK-2200 Copenhagen N.
Project No. and Name: 1211 Phytera
- --------------------------------------------------------------------------------
Type of loan R&D Loan
- --------------------------------------------------------------------------------
Amount of loan, DKK 13,232,700
- --------------------------------------------------------------------------------
Project No. 1211
- --------------------------------------------------------------------------------
Disbursement By 3-month installments in advance
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Project budget, DKK 29,406,000
- --------------------------------------------------------------------------------
Financing share (%) 45
- --------------------------------------------------------------------------------
Project period, start* November 1, 1995
- --------------------------------------------------------------------------------
Project period, end December 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Interest** p.a., fixed 7.98%
- --------------------------------------------------------------------------------
Interest** p.a., variable 7.98%. To be fixed on the 1st banking day each
month.
- --------------------------------------------------------------------------------
Interest accrues as from Disbursement
- --------------------------------------------------------------------------------
Late interest 14% per annum
- --------------------------------------------------------------------------------
Stamp duty, loan, DKK 39,698
- --------------------------------------------------------------------------------
Bill of sale reg. to owner DKK 150.00 - assuming value endorsement of 10,000
- --------------------------------------------------------------------------------
Court fee, DKK 700
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Payment due dates April 1; July 1; October 1; January 1
- --------------------------------------------------------------------------------
1st payment April 1, 1999
- --------------------------------------------------------------------------------
Payment per due date*** See repayment schedule dated December 12, 1995.
- --------------------------------------------------------------------------------
royalty percentage**** 12.23
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Project reporting dates April 1; July 1; October 1; January 1.
- --------------------------------------------------------------------------------
1st reporting date April 1, 1996, for the time until
December 31, 1996.
- --------------------------------------------------------------------------------
Respite for submission Three (3) weeks
- --------------------------------------------------------------------------------
Security Pledge on the Project
- --------------------------------------------------------------------------------
*) Costs of work carried out prior to the Project's starting date are not
included in the financing.
**) Interest is added quarterly in arrears.
***) The amount of the installments appears from the enclosed repayment
schedule.
11
****) See under the paragraph on repayment on page 2.
Preconditions The loan is being granted under the following
conditions:
. The Project is carried out as specified in the
application material on which
VaekstFonden has based the grant;
. The budget for the Project is adhered to, cf.
VaekstFonden's budget form;
. Royalty is calculated on the basis of Phytera
Inc.'s total consolidated sales;
. The loan is repaid over a period of not more than
five (5) years from the end of
the Project. Any royalty paid is not reimbursed
in connection with a possible
write-down of the debt;
. DUF must have a representative on the Board of
Phytera Inc. until any
stock-exchange introduction of Phytera Inc.;
./1/The Danish Company must have employed a full-time
manager within six (6) months of
start of the Project.
. The loan becomes payable without any right to
write down the debt if the number of development
staff in Phytera A/S becomes less than 8 persons
before the loan has been repaid;
. VaekstFonden will arrange for an evaluation of
the Project to be completed not later than march
30, 1997. Until the evaluation has been completed
with a result that VaekstFonden deems favourable,
a maximum of DKK 4,000,000 may be disbursed on
the loan. The progress of the Project, the
financial situation of Phytera Inc., and the
expected commercialization prospects of the
Danish Company will be factors in the evaluation.
Conditions for The 1st installment will be disbursed when
disbursement VaekstFonden has received this Agreement,duly
signed, together with the other details and
documents indicated in the covering letter, and
when the following conditions have been met:
. Phytera A/S must have been established with a
share capital of DKK 500,000.00 paid up in cash;
. The bail bond from Phytera Inc. has been
received; and
. Phytera Inc. must be established with a share
capital of USD 6,000,000, including at least USD
1,800,000 from Dansk Udviklingsfinansiering A/S
("Danish Development Financing Ltd."); ("Series
C Preferred Shares")
Before the 2nd installment is disbursed VaekstFonden
must, furthermore, receive:
. Bill of sale registered to owner and with clean
registration of title
Security Bill of sale registered to owner for DKK 13,232,700
secured on the Project rights.
Repayment The loan shall be repaid as specified in the Loan
Agreement and the repayment schedule. The payments
are collected via standing order payments service.
The repayment agreement is not subject to change.
The repayment is determined on the basis of a
calculated royalty on Phytera Inc.'s anticipated
sales. The royalty percentage is stated on p. 1 of
this Loan Agreement.
- --------------------
/1/ Preconditions, bullet no. 6: "The Danish Company must have employed a
full-time manager within six (6) months of start of the project" was changed to
"The Danish Company must have employed a full-time manager within six (6) months
from receipt of the first payment from VaekstFonden".
12
If a balance remains on the debt on the last due
date, the repayment of the loan shall continue with
the same due dates as stated in the Loan Agreement
and with the same payment as that which becomes
payable on the last due date, cf. the repayment
schedule.
The royalty shall be calculated on the basis of:
Phytera Inc.'s total consolidated sales.
If the results of the Project(s) are used, wholly or
in part, in other products, markets, services or
projects, any sales therefrom shall be fully included
in the sales on which the royalty is computed. If
rights or know-how in the Project, or parts thereof,
are sold or transferred (including licensing
agreements), a royalty shall be paid to VaekstFonden
at the rate of 25% of the gross receipts.
Write-down of debt The borrower may at any time demand a
write-down of the outstanding debt against transfer
of all Project rights, including all selling rights,
cf. the paragraph on repayment. However, the borrower
shall remain liable for a sum corresponding to the
royalty on any sale generated by the project. The
royalty percentage is stated on p.1 hereof. The
amount of royalty shall be adjusted to reflect
services paid; services paid are not subject to
reimbursement.
Rights The borrower warrants and guarantees that all rights
in the development project are the exclusive property
of the borrower.
Declaration The borrower declares that it has not applied for or
received other public subsidy of this Project or
adjacent projects without having duly notified
VaekstFonden thereof in writing.
Other conditions The borrower has received:
. Repayment schedule dated December 12, 1995;
. The budget form of VaekstFonden; and
. VaekstFonden's general terms and conditions for
loans, August 1995, which shall apply to the loan
without any further signature.
Choice of Interest The rate of interest selected for the loan shall be:
Fixed [x]
Variable [_]
This Loan Agreement shall be signed in two (2)
copies.
Date: 11/4/96 Date: April 11, 1996.
Phytera A/S under formation VaekstFonden
/s/ Bent Kiemer
/s/ Gustav A. Christensen /s/ Otto Kjaergard
------------------------- ----------------------------
(Please also type names) Bent Kiemer Otto Kjaergaard
IN WITNESS of the Borrower's signature:
(please complete in typing, and sign)
Name: [illegible] Name:
---------------------- ---------------------
Title: Title:
--------------------- --------------------
Address: Address:
------------------- ------------------
ZIP code/town: ZIP code/town:
------------- ------------
Radhuspladeen 4-1550- K0benhavn V
Tel. 33 14 66 66 Fax 33 14 66 67
13
----------------------- ------------------------
Signature Signature
14
Stamp duty: DKK 150 Translation
Registration fee: DKK 700 -----------
Total DKK 850
APPLICANT:
VaekstFonden
No. 137 Tagensvej
DK - 2200 Copenhagen N.
Tel: +45 3586 8635
Value Endorsement:
- -----------------
We hereby solemnly declare that the value of the mortgaged property does not
exceed DKK 10,000.00.
Bill of Sale Registered to Owner
(Chattel Mortgage)
Name and address Phytera A/S
of Debtor c/o Dragsted & Helmer Nielsen, Law Office
Mr. Mogens Bach, attorney-at-law
No. 4 Radhuspladsen
DK - 1550 Copenhagen V.
SE No.
hereby admits indebtedness to
The Creditor: Same, or whomever this Bill of Sale may be assigned
to, be it by mortgage or otherwise, without personal
liability.
Amount: DKK 13,232,700
(in letters: thirteen million two hundred and thirty
two thousand and seven hundred Danish Kroner only).
Terms of interest The Bill of Sale shall be subject to interest at the
and payment: rate of sixteen percent (16%) as from the time of
transfer. Interest shall be payable on every
June 11 and December 11 due date semi-annually in
arrear, the first time being the first due date
following the transfer.
The property mortgaged: All of those copyrights which attach to the
mortgagor's development of plant cultures with
Project No. 1211, including all such material,
software descriptions, source code, and results of
any kind as clearly appear as belonging to and being
a part of the Project, including all drawings,
descriptions, diagrams, prototypes, and the developed
product and any other products which are the result
of the above development work. The mortgage shall
also include the fund of technical know-how covered
by the Project.
Furthermore, the mortgage shall include all income
from the mortgage, such as but not limited to
payments of rent, license fees and leases, as well as
insurance sums.
Prior mortgages: None.
Principal: VaekstFonden is hereby authorized to sign on my
behalf endorsements of any kind to this
Bill of Sale, including endorsements of receipt,
assignment, reduction, and release.
Addressee for any Notices in pursuance of Part 50 of the Administration
notices of legal of Justice Act and such other notices as shall by
law be sent to the mortgagee, should be addressed to:
15
proceedings, etc.
VaekstFonden
No. 137 Tagensvej
DK - 2200 Copenhagen N.
Other credit details: Is this Bill of Sale covered by the Credit Contracts
Act?
Yes [_] No [x]
Termination: This Bill of Sale may at any time be terminated by
the Creditor or the Debtor without notice.
NOTE: Any change of address must be notified to the
Creditor. In the event of delay with the payment of
interest and installments the Creditor shall have the
right to demand a redemption of the capital, cf. item
7a on the last page.
This Bill of Sale shall otherwise be governed by the provisions of the Chattel
Mortgage form issued by the Ministry of Justice (last page).
If the Bill of Sale is signed by the Debtor alone,
the Debtor also declares that he is single or that
the mortgage is not covered by sect. 19 of the
Marriages (Legal Effects) Act.
Place & Date: [illegible] , this 8 day of Aug. 1996.
Phytera A/S under formation
Debtor's signature: /s/ Gustav A. Christensen /s/ Malcolm Morville
-----------------------------------------------------
Please also type name or use block letters
If the Debtor is married, the Debtor's spouse
signifies her consent to the mortgage by her
signature. If the spouse is co-owner, the signature
is that of a debtor and mortgagor.
Spouse: _________________________________
IN WITNESS of the authenticity of the signature(s),
the correctness of the date, and the full legal age
of the signatory/ies (please type):
Name: _____________________________ Name: _____________________________
Title: _____________________________ Title: _____________________________
Address: _____________________________ Address:_____________________________
_____________________________ _____________________________
- --------------------------------------- -------------------------------
Signature Signature
16
(Logo)
VAEKSTFONDEN
Instrument of Pledge
Pledgor: Phytera A/S
c/o Dragsted & Helmer Nielsen, Law Office
Mr. Mogens Bach, attorney-at-law
No. 4 Radhuspladsen
DK - 1550 Copenhagen V
Pledgee: VaekstFonden, No. 137 Tagensvej, DK - 2200 Copenhagen N.
Pledge: By way of security for the Pledgor's debt to the
Pledgee in pursuance of Loan Agreement No. 1211, a
bill of sale registered to owner for DKK 13,232,700
is hereby pledged as 1st Pledge on a project
regarding development of plant cultures.
The Bill of Sale shall serve as security for the
repayment of loan, interest and costs.
The mortgage under the Bill of Sale is extended
beyond the principal (?) stated in the Bill of Sale
by up to five (5) years. The extension is calculated
on the original principal at the rate of interest
stated in the Bill of Sale. The extension shall
commence upon the pledging of the Bill of Sale to
VaekstFonden and shall continue until any realization
of the property pledged, subject to a maximum of five
(5) years.
Conditions: VaekstFonden's General Terms and Conditions for
Loans, August 1995.
Date: 8-8-1996
-------------------
As Pledgor: Phytera A/S under formation
Signature:/s/Gustav A. Christensen /s/Malcolm Morville
-----------------------------------------------
(Please also type name)
IN WITNESS of the Borrower's signature:
(please complete in typing, and sign)
Name:__________________ Name:___________________
Title:_________________ Title:__________________
Address:_______________ Address:________________
ZIP code/town:_________ ZIP code/town:__________
_______________________ ________________________
Signature Signature
17
Translation
Surety Commitment ------------
Debtor: Phytera A/S
c/o Dragsted & Helmer Nielsen, Law Office
Mr. Mogens Bach, attorney-at-law
No. 4 Radhuspladsen
DK - 1550 Copenhagen V
Creditor: VaekstFonden
No. 137 Tagensvej
DK - 2200 Copenhagen N.
Surety: Phytera Inc. guarantees as surety for the payment of
all and any amount owing by Phytera A/S (under
formation) in pursuance of Project 1211, Loan DKK
13,232,700 with associated General Terms & Conditions
for Loans dated August 1995.
Interest will be added to the Loan.
Special Conditions: The disbursement and repayment of the Loan are
subject to special conditions, cf. the Loan Agreement
with the Debtor. The surety should take particular
note of the preconditions for the Loan, cf. the Loan
Agreement, from which appears, i.a., that:
. Phytera A/S must accept that the Danish Company
may independently commercialize own development
projects to the extent that these projects
address industries other than the pharmaceutical
one;
. Royalty is calculated on the basis of Phytera
Inc.'s total sales;
. The Loan is repaid over a period of not more than
five (5) years from the end of the Project. Any
royalty paid is not reimbursed in connection with
a possible write-down of the debt;
. DUF must be given a seat on the Board of Phytera
Inc. until any stock-exchange introduction of
Phytera Inc.:
./2/The Danish Company must have employed a full-time
manager within six (6) months of start of the
project.
. The Loan becomes payable without any right to
write down the debt if the number of development
staff in Phytera A/S becomes less than 8 persons
before the Loan has been repaid;
. VaekstFonden will evaluate if the Project is
progressing according to plan and if the
financial situation of Phytera Inc. continues to
be capable of securing the completion of the
Project. This will occur when the disbursed
portion of this Loan exceeds DKK 4,000,000, at
the latest;
. VaekstFonden will arrange for an external
evaluation of the Project some 12 to 15 months
into the Project period with a view to
considering the continued cooperation of
VaekstFonden. Expectations as to the Danish
Company's own commercialization prospects will
also be included in this evaluation.
- --------------------
/2/Special conditions, bullet No. 5: "The Danish Company must have employed a
full-time manager within six (6) months of start of the project" was changed to
"The Danish Company must have employed a full-time manager within six (6) months
from receipt of the first payment from VaekstFonden"
18
Suretyship: Phytera Inc. guarantees as surety. The Loan is
repaid with a royalty on Phytera Inc.'s total sales,
and Phytera Inc. is obligated to deliver sales
figures attested by a CPA to VaekstFonden.
Conditions: VaekstFonden's General Terms & Conditions for Loans
dated August 1995 shall otherwise apply.
Venue and Phytera Inc. accepts that, for all claims arising out
applicable law of our incidental to this Surety Commitment, any
dispute shall be settled according to Danish law
before Danish courts of law.
Phytera Inc. accepts that a final decision by a
Danish court of law may be enforced against the
Company in the U.S.A.
This 11 day of April 1996.
Phytera Inc.
/s/ Christopher J. Pazoles
-----------------------------------
Christopher J. Pazoles
18