1
FIRST ALLONGE TO PROMISSORY NOTE
This FIRST ALLONGE dated as of July 16, 1997 between ArQule, Inc., a
Delaware corporation (the "HOLDER"), and Xxxx X. Xxxxxx (the "MAKER"), to the
Promissory Note dated as of July 9, 1996 in the amount of $250,000 (as the same
may be further amended, modified or supplemented from time to time, the "NOTE"),
payable to the order of the Holder and made by the Maker.
RECITALS
WHEREAS, the Maker and the Holder have agreed to amend the Note to extend
the dates on which the payments of principal and interest are due by amending
Schedule I.
NOW, THEREFORE, for valuable consideration, the receipt and adequacy of
which are acknowledged, the Maker and the Holder hereby agree, with effect from
the date first set forth above, as follows:
1. The Note is hereby amended as follows:
1.1 The first paragraph of the Note is hereby deleted and replaced
with the following:
FOR VALUE RECEIVED, the undersigned, Xxxx X. Xxxxxx, an
individual with a place of residence at 0 Xxxxxxx Xxxxx Xxxxx,
Xxxxxx, Xxxxxxxxxxxxx 00000 (hereinafter called "MAKER"), by this
secured promissory note (hereinafter called this "NOTE"),
promises unconditionally to pay to the order of ArQule, Inc., a
Delaware corporation with a principal place of business at 000
Xxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxxxxxxx 00000 (hereinafter called
"HOLDER"), on or before February 15, 2000, the principal sum of
TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($250,000.00), with
interest (computed on the basis of actual days elapsed and a
365-day year) from August 15, 1996 on the principal amount unpaid
at a rate equal to the lowest applicable federal rate of interest
as set forth in Section 1274 of the Internal Revenue Code of
1986, as amended.
1.2 The first sentence of the second paragraph is deleted.
1.3 The Payment Schedule set forth in Schedule I is hereby deleted in
its entirety and replaced with the attached Schedule I.
2. The Note is, and shall continue to be, in full force and effect as
modified hereby, and is hereby in all respects ratified and confirmed. The
Holder is hereby authorized to attach this Allonge to the Note.
2
WITNESS the execution hereof under seal as of the day and year first above
written.
ARQULE, INC.
By: /s/ Xxxxx Xxxxxxxx
------------------
Title: Director
/s/ Xxxx X. Xxxxxx
------------------
Xxxx X. Xxxxxx
3
Schedule I
----------
Payment Schedule
Date Principal Due Interest Due(1) Total Payment Due Principal Balance
---- ------------- ------------ ----------------- -----------------
February 15, 1998 $83,333 $22,670.68 $106,003.68 $166,667
February 15, 1999 $83,333 $10,066.69 $ 93,399.69 $ 83,333
February 15, 2000 $83,333 $ 5,033.31 $ 88,366.31 --
--------
(1) Based upon the applicable federal rate of interest of 6.04%, as
announced for the month of July, 1996.
