Document:

Exhibit 10.1

 

Binding Term Sheet

 

between

 

Austrianova Singapore Pte. Ltd. and
SG Austria Pte. Ltd.

 

and

 

PharmaCyte Biotech, Inc.

 

This Binding Term
Sheet (“Term Sheet”) summarizes the principal terms of a transaction between Austrianova Singapore Pte.
Ltd., a Singapore corporation, with a principal place of business at 3 Biopolis Drive, #05-19 Synapse, Singapore 138623
(“Austrianova Singapore”), SG Austria Pte. Ltd., a Singapore corporation, with a principal place of
business at 3 Biopolis Drive, #05-19 Synapse, Singapore 138623 (“SG Austria” and together with Austrianova
Singapore, “Austrianova”) and PharmaCyte Biotech, Inc., a
Nevada corporation with a principal place of business at 22046 Avenida de la
Carlota, Suite 600, Laguna Hills, California 92653, (“PharmaCyte”).
The Term Sheet is intended to provide both: (a) guidance in the preparation of more complete written amendments to (i) that
certain License Agreement, as amended, dated as of December 1, 2014, by and between PharmaCyte and Austrianova Singapore
(“Cannabis License Agreement”), (b) that certain License Agreement, as amended, dated as of June 25, 2013,
by and between PharmaCyte and Austrianova Singapore (“Diabetes License Agreement”) and (c) that
certain Asset Purchase Agreement, as amended, dated as of May 26, 2011, by and between PharmaCyte and SG Austria
(“Asset Purchase Agreement,” as amended and clarified and together with the Cannabis License Agreement and
the Diabetes License Agreement, the “Agreements”); and (ii) evidence of legally binding agreement between
the parties to this Term Sheet. The parties shall, in good faith, using reasonable commercial efforts, negotiate the terms
and conditions of amendments to the Agreements as outlined below, which upon execution will supersede this Term Sheet based
on the following guiding principles and summary of agreed upon terms and conditions.

 

	1	Parties	Austrianova Singapore, SG Austria and PharmaCyte  
	2	Milestone Payments	All milestone payments outlined in Section 3.2 of the Cannabis License Agreement, Section 3.2 of the Diabetes License Agreement and Section 6 of the Third Addendum dated as of June 25, 2013, to the Asset Purchase Agreement (“Third Addendum”), as modified by the Clarification Agreement to the Third Addendum dated as of June 25, 2013, (“Clarification Agreement”) shall be deleted in their entirety and PharmaCyte shall no longer be obligated to pay any milestone payments to Austrianova. 

	3	Royalty Payments

    and Additional Consideration	•    	The royalty payments on gross sales (as specified in Section 3.1.1 of each of the Diabetes License Agreement and the Cannabis
        License Agreement and Section 6.a of the Third Addendum shall be changed to 4%.
	 	 	•    	The royalty payments on amounts received by PharmaCyte from sublicensees on sublicensees’ gross sales (as specified
        in Section 3.1.2 of each of the Diabetes License Agreement and the Cannabis License Agreement and Section 6.b of the Third Addendum)
        shall be changed to 20% of the amount received by PharmaCyte from its sublicensees, provided, however, that in the event
        the amounts received from PharmaCyte’s from sublicensees is 4% or less, Austrianova will receive 50% of what PharmaCyte receives
        (up to 2%) and then additionally 20% of any amount PharmaCyte receives over 4%.
	 	 	•    	Austrianova will receive 50% of any other financial and non-financial consideration PharmaCyte receives from its sublicensees.

	4	Right of First Refusal 	PharmaCyte shall have right of first refusal for a five (5) year period in the event Austrianova sells, assigns or transfers at any time during such five (5) year period the Cell-in-a-Box® and its Associated Technology (as defined in the Agreements), which right of first refusal shall include the right to purchase all associated intellectual property, technology and/or trade secrets, including, but not limited to a non-exclusive license of the cellulose sulfate Austrianova utilizes with the Cell-in-a-Box® technology, and/or any manufacturing facility involving Cell-in-a-Box® cell encapsulation (collectively, “Technologies”); provided, however, Technologies does not include Bac-in-a-Box®.
	5	Non-Solicit	Austrianova shall not solicit, negotiate, or entertain any inquiry regarding the potential acquisition of the Technologies for a period of one (1) year following the execution of this Term Sheet.

 

 

 

 

 

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	6	Scope of Diabetes Licensing Agreement	The scope of the Diabetes License Agreement shall be expanded such that the licensed rights cover all cells and cell lines of any kind or description now or hereinafter identified, including, but not limited to, primary cells, mortal cells, immortal cells and stem cells at all stages of differentiation and from any source specifically designed to produce insulin for the treatment of diabetes. 
	7	Payment 	Upon execution of the amendments to the Agreements, PharmaCyte shall pay an aggregate total amount of $900,000 ratably over a six (6) month time period in equal amounts.  Payments shall be made on or before the 1st of each month with a cure period of 20 calendar days.
	8	Chief Scientific Officer Consulting Fees  	Prof. Dr. Walter H. Günzburg shall continue to serve as the Chief Scientific Officer of PharmaCyte pursuant to that certain Consulting Agreement dated as of April 1, 2014, and for a period of six (6) months beginning September 1, 2017 shall not be entitled to any compensation from PharmaCyte for such services, except for the reimbursement of reasonable travel expenses. 
	9	Fees and Expenses	Austrianova and PharmaCyte each will pay their respective legal and other fees and expenses associated with all aspects of the transactions contemplated by this Term Sheet.  
	10	Confidentiality	Austrianova and PharmaCyte each agree that neither
    it, nor its respective subsidiaries, affiliates, employees or representatives will disclose any information of the other
    party that is deemed confidential, including, without limitation, the existence of this Term Sheet or the terms and
    conditions contained herein, except on a reasonable need to know basis. Notwithstanding the foregoing, the parties expressly
    acknowledge that PharmaCyte may file a copy and/or a description of, this Term Sheet with the United States Securities and
    Exchange Commission (“SEC”) in any of its SEC reports and filings, as well as incorporate them by
    reference into other SEC filings to the extent required by law. 
	11	Other	
        All other terms and conditions, usual and customary for an agreement
        of this type, would be negotiated, agreed upon between the parties and set forth in the amendments to the Agreements.

         

        The amendments to the Agreements will contain the representations,
        warranties, covenants, conditions and other terms and provisions, including without limitation, related to termination, indemnification,
        insurance, that are commercially reasonable and typical for transactions of this type between similarly situated parties. The parties
        agree to negotiate the amendments to the Agreements in good faith.

         

        This Term Sheet will be governed by and interpreted in accordance
        with the laws of Singapore.

         

        Nothing in this Term Sheet shall prevent Austrianova from raising
        capital.

         

All pending issues and the matters not covered above in connection
        therewith (including the execution and delivery of the amendments to the Agreements) will be discussed and determined by the parties
        in good faith.

 

 

 

 

 

 

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IN WITNESS WHEREOF, the parties have executed
this binding Term Sheet through their duly authorized representatives on 30 August 2017 (“Effective Date”).

 

	PharmaCyte Biotech, Inc.	Austrianova Singapore Pte. Ltd.	SG Austria Pte. Ltd.
	 	 	 
	Name: Kenneth L. Waggoner	Name: Walter H. Günzburg	Name:
Brian Salmons
	 	 	 
	Title: Chief Executive Officer	Title: Chairman of the
Board	Title: Chief Executive Officer
	 	 	 
	 	 	 
	Signature: /s/ Kenneth L. Waggoner           	Signature: /s/ Walter H. Günzburg        	Signature: /s/ Brian Salmons                    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	3Exhibit 10.1

 

Execution Version

 

AMENDMENT NO. 1 TO

INVESTOR RIGHTS AGREEMENT

 

This Amendment No. 1 (the “Amendment”) to the Investor Rights Agreement (as defined below) is made and entered into as of September 5, 2017 by and between Dynegy Inc., a Delaware corporation (“Dynegy”), and Terawatt Holdings, LP, a Delaware limited partnership (“Purchaser”).

 

RECITALS

 

WHEREAS, Dynegy and Purchaser entered into that certain Investor Rights Agreement, dated February 7, 2017 (the “Investor Rights Agreement”);

 

WHEREAS, Volt Parent LP (“Volt Parent”) and Volt Merger Sub, Inc., affiliates of Purchaser, have entered into an Agreement and Plan of Merger (the “Calpine Merger Agreement”) with Calpine Corporation (“Calpine”), dated August 17, 2017, pursuant to which such affiliates have agreed to acquire Calpine (the “Calpine Merger”); and

 

WHEREAS, in connection with the Calpine Merger Agreement, Volt Parent has agreed to take certain actions with respect to its ownership and voting of the Common Stock (as defined in the Investor Rights Agreement).

 

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.             Purchaser and Dynegy agree that, notwithstanding anything to the contrary contained in Section 11 of the Investor Rights Agreement, Purchaser and any Controlled Affiliates from and after the closing of the Calpine Merger (for so long as Purchaser and such Controlled Affiliates own any shares of Common Stock in excess of 9.99% of the then-outstanding Common Stock): (a) shall not vote any shares of Common Stock Beneficially Owned by Purchaser or such Controlled Affiliates in excess of 9.99% of the then-outstanding Common Stock at any annual or special meeting (or adjournment thereof) of the Stockholders or in any written consent of the Stockholders (collectively, a “Stockholder Vote”); provided, however, that if requested by Dynegy, Purchaser shall cause such shares to be present at any such meeting for purposes of establishing a quorum; and (b) shall vote any shares of Common Stock Beneficially Owned by Purchaser or such Controlled Affiliates up to and including 9.99% of the then-outstanding Common Stock in proportion to the vote of all Stockholders (other than Purchaser and any Controlled Affiliates) on any such matters subject to a Stockholder Vote.

 

2.             Purchaser and Dynegy agree that, effective as of the closing of the Calpine Merger, Section 9 of the IRA shall be amended such that Purchaser shall no longer have the right to nominate an individual for election to Dynegy’s board of directors (and any director so serving on Dynegy’s board of directors at such time would resign from the

 

 

board of directors).  Notwithstanding the foregoing, Purchaser and Dynegy agree that Purchaser shall cause any director nominated by Purchaser to resign from Dynegy’s board of the directors at any time prior to the closing of the Calpine Merger if so requested by Dynegy; provided, however, that if the Calpine Merger Agreement is terminated and the closing of the Calpine Merger does not occur, Purchaser shall be entitled from and after the date of such termination to renominate an individual for election to Dynegy’s board of directors in accordance with Section 9(a) of the IRA.

 

3.             Purchaser and its Controlled Affiliates shall be entitled to enter into any required agreements with Calpine and make any required commitments to governmental authorities to give effect to Sections 1 and 2 hereof.

 

4.             Except as modified hereby, all of the terms and conditions of the Investor Rights Agreement remain in full force and effect and are hereby reaffirmed, ratified and approved.  This Amendment, together with the Investor Rights Agreement, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof.  No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Amendment shall affect, or be used to interpret, change or restrict, the express terms and conditions of this Amendment.  Hereafter references to the Investor Rights Agreement in any document or other agreement shall be deemed to constitute references to the Investor Rights Agreement as amended by this Amendment.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Execution and delivery of this Amendment may be made and evidenced by facsimile transmission.

 

[Signature page follows]

 

2

 

IN WITNESS WHEREOF, each of the parties has caused this Amendment to be executed on the day and year first written above.

 

	
 
    	
DYNEGY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Catherine James
    
	
 
    	
 
    	
Name: Catherine James
    
	
 
    	
 
    	
Title: Executive Vice President, General Counsel and   Chief Compliance Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TERAWATT HOLDINGS, LP
    
	
 
    	
 
    
	
 
    	
By: Terawatt Holdings   GP, LLC
    
	
 
    	
Its: General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tyler Reeder
    
	
 
    	
 
    	
Name: Tyler Reeder
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew D. Singer
    
	
 
    	
 
    	
Name: Andrew D. Singer
    
	
 
    	
 
    	
Title: Secretary and   General Counsel

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