Document:

Exhibit 10.1

 

 

ASSIGNMENT OF THE AGREEMENT FOR
THE ISSUANCE OF AND 
SUBSCRIPTION TO NOTES CONVERTIBLES INTO SHARES

 

AMONG

 

OPGEN, INC.,

 

YA II PN, LTD

 

AND

 

CURETIS N.V.

 

 

DATED: FEBRUARY 24, 2020

 

 

    	  

    	 

    

THIS AGREEMENT IS MADE ON FEBRUARY 24, 2020

AMONG:

(1)        OPGEN, INC.,
a Delaware corporation having its principal address at 708 Quince Orchard Road, Gaithersburg, MD, 20878 (“OpGen”);

(2)        YA
II pn, LTD, a limited liability company incorporated under the laws of the Cayman Islands, having its registered office
at Maples Corporate Services, Ugland House, George Town, Grand Cayman, and its principal office at 1012 Springfield Avenue Mountainside,
NJ 07092, USA, represented by its Investment Manager Yorkville Advisors Global, LP, itself represented by its General Partner
Yorkville Advisors Global II, LLC (the “Investor”); and

(3)        CURETIS
N.V., a Dutch public limited liability company (naamloze vennootschap) incorporated under the laws of the Netherlands,
having its statutory seat (statutaire zetel) in Amsterdam, the Netherlands, and its office address at Max-Eyth-Str. 42,
71088 Holzgerlingen, Germany, and registered with the trade registry of the Dutch Chamber of Commerce under number 64302679 (“Curetis”).

OpGen, the Investor and Curetis are each a “Party”
to this Agreement and collectively are the “Parties” to the Agreement.

WHEREAS,

		(A)	Curetis and the Investor are party to that certain Agreement for the Issuance of and Subscription to Notes Convertible into
Shares and Share Subscription Warrants, dated October 2, 2018 (the “Original Agreement”), pursuant to which
the Investor provided Curetis with a EUR 20,000,000 Commitment (the “Commitment”), by subscribing to notes (the
“Notes”) convertible into ordinary shares with a par value of EUR 0.01 of Curetis (the “Curetis Shares”);

		(B)	OpGen and Curetis are each party, along with Crystal GmbH (a/k/a Platin 1798. GmbH), a private limited liability
company (Gesellschaft mit beschränkter Haftung) organized under the Laws of the Federal Republic of Germany, with its
official seat in Frankfurt am Main, Germany, registered with the commercial register of the local court (Amtsgericht) of
Frankfurt am Main under HRB 115973 and wholly-owned subsidiary of OpGen (the “Purchaser”), to that certain
Implementation Agreement, dated September 4, 2019 (the “Implementation Agreement”) pursuant to which OpGen and
the Purchaser have agreed to acquire all of the outstanding shares of Curetis GmbH, a private limited liability company (Gesellschaft
mit beschränkter Haftung) organized under the laws of the Federal Republic of Germany, and a wholly-owned Subsidiary of
Curetis (the “Company”), and to assume certain liabilities of Curetis N.V., including the outstanding Notes
under the Original Agreement;

 

    	  

    	 

    

 

 

		(C)	The Parties desire to confirm and document their agreement with respect to the assumption of the Notes by OpGen upon the Closing
of the transactions contemplated by the Implementation Agreement, and to provide a conversion mechanism for the conversion of the
Notes into shares of OpGen common stock, par value $0.01 per share (the “OpGen Shares”) post-Closing; and

		(D)	All defined terms used in this Agreement without definition have the meanings set forth in the Implementation Agreement or
the Original Agreement, as the context requires.

IT IS THEREFORE AGREED AS FOLLOWS:

1.                 
Assumption of Notes. The Parties agree that, as of the date of this Agreement, the outstanding Notes total EUR 1.3
million in principal and that effective as of the Closing under the Implementation Agreement, OpGen hereby assumes and agrees to
pay, perform and discharge all outstanding obligations of Curetis under the Notes. For the avoidance of doubt, the effectiveness
of this Agreement is expressly conditions upon the occurrence of the Closing under the Implementation Agreement and, if for any
reason the Closing of the business combination between OpGen and Curetis under the Implementation Agreement has not occurred by
March 31, 2020, or such later date as may be agreed in writing by the parties, then this Agreement shall automatically, and without
any action by any party hereto, terminate and be null and void.

2.                 
Initial Conversions. As of the date of the Closing under the Implementation Agreement, five hundred thousand (500,000)
of the shares of OpGen common stock (the “Initial Tranche OpGen Shares”) that comprise the Consideration under
the Implementation Agreement shall be set aside and reserved for issuance to the Investor from time to time upon conversions by
the Investor of portions of that amount of principal of the outstanding Notes using the same conversion terms under the Original
Agreement, but substituting OpGen Shares for Curetis Shares (the “Initial Conversions”).

		a.	Such Initial Tranche OpGen Shares are registered on the Registration Statement on Form S-4 of OpGen related to the Consideration
to be issued in the transactions contemplated by the Implementation Agreement, to cover the conversion transaction between OpGen
and the Investor.

		b.	Assuming that the Investor is not an affiliate of OpGen and will not be an affiliate of OpGen as of the Closing of the transactions
contemplated by the Implementation Agreement, no additional registration statement is needed to register the Initial Tranche OpGen
Shares and the Initial Tranche OpGen Shares will not be restricted securities when issued to the Investor.

		c.	The Investor shall not have the right to convert any portion of the Notes to the extent that after giving effect to such conversion,
the Investor, together with its affiliates, would beneficially own (as determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, and the rules promulgated thereunder) in excess of 4.99% of the number of shares of stock outstanding immediately
after giving effect to such conversion.

3.                 
Subsequent Conversions. The remaining outstanding Notes indebtedness following completion of the Initial Conversions
(the “Remaining Notes”) shall be convertible at the election of the Investor, from time to time, into OpGen
Shares in accordance with the following provisions:

 

    	  

    	 

    

 

		a.	The Investor shall elect a conversion, from time to time, by submitting one or more conversion notices in the form attached
hereto as Exhibit A (each a “Conversion Notice”) to OpGen setting forth the portion of the Remaining Notes to
be converted (the “Conversion Amount”).

		b.	The Conversion Amount will be divided by 93% of the Market Price on the applicable conversion date (the “Conversion
Price”). The Conversion Price will be determined to two decimals places and rounded down to the nearest 100th. If the
issuance of new Shares would result in the issuance of a fraction of a Share, OpGen shall round such fraction of a Share down to
the nearest whole Share.

		c.	The Investor shall not have the right to convert any portion of the Notes to the extent that after giving effect to such conversion,
the Investor, together with its affiliates, would beneficially own (as determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, and the rules promulgated thereunder) in excess of 4.99% of the number of shares of stock outstanding immediately
after giving effect to such conversion.

		d.	The following definitions apply:

		i.	“Daily VWAP” means, as of any Trading Day, the daily volume weighted average price of the Shares on the
Nasdaq Capital Market.

		ii.	“Market Price” means the lowest Daily VWAP for the Shares over the applicable Pricing Period.

		iii.	“Pricing Period” means the Trading Days during which the Investor (or the relevant Note holder as the case
may be) has not sold any Shares in the market among the ten (10) consecutive Trading Days expiring on the Trading Day immediately
preceding the date of receipt by OpGen of a Conversion Notice.

		iv.	“Trading Day” means any day on which the Nasdaq Capital Market is open for trading.

4.                 
Registration of Additional OpGen Shares. Within sixty (60) days following the later of the filing of the OpGen Annual
Report on Form 10-K for the year ending December 31, 2019, and the Closing under the Implementation Agreement, OpGen shall file
a registration statement to register up to 1,000,000 additional OpGen Shares to provide OpGen Shares for the conversion, from time
to time of the Remaining Notes, including resale of such OpGen Shares by the Investor. The Investor and OpGen will enter into a
registration rights agreement prior to the Closing.

5.                 
No Share Subscription Warrants. The Parties agree that no Share Subscription Warrants shall need to be offered or
issued by OpGen under this Agreement or the Original Agreement.

 

    	  

    	 

    

 

6.                 
Repayment of Notes. OpGen will pay the Remaining Notes that are not converted by the Investor in accordance with
the terms of the Original Agreement. For the avoidance of doubt, the provisions of the Original Agreement providing an option to
extend the Maturity Date by twelve (12) months after the June 2020 Maturity Date will be exercisable by OpGen following the Closing.

7.                 
Additional Financing. After the Closing, OpGen shall have the right to access up to US5,000,000 of additional financing
subject to negotiation of terms and conditions acceptable to OpGen.

8.                 
Miscellaneous.

a.                  
Notices. Any notice, demand, consent, waiver or other communication required, given or made under this Agreement,
including any Conversion Notices (a “Notice”) shall be made in writing, duly signed on behalf of the Party from
which it originates. The form of Conversion Notice is attached to this Agreement as Exhibit A.

Any Notice sent by email shall be deemed
to have been delivered on the day of transmission, provided however that, if a Notice is sent by e-mail and received by the addressee
on a day which is not a Trading Day or after 4.00 p.m. Eastern Time on a Trading Day, it will instead be deemed to have been given
or made on the next Trading Day.

The address and e-mail address for such
Notice shall be:

If to OpGen:

 

OpGen, Inc.

708 Quince Orchard Road

Gaithersburg, MD 20878

Attention: Timothy C. Dec

Email: tdec@opgenc.com

Telephone: +1.240.813.1273

 

Copy:

 

Ballard Spahr LLP

1735 Market Street, 51st Fl

Philadelphia, PA 19103

Attention:

Email:

Telephone:

 

    	  

    	 

    

 

 

if to the Investor:

 

YA II PN, LTD

Address: 1012 Springfield Avenue Mountainside, NJ 07092, USA

Attention to: Saad Gilani

E-mail addresses: sgilani@yorkvilleadvisors.com and legal@yorkvilleadvisors.com

Phone number: + 1 201 985 8300

 

Copy:

 

Jeantet AARPI

Address: 87 avenue Kléber, 75116 Paris, France

Attention to: Cyril Deniaud

E-mail address: cdeniaud@jeantet.fr

Phone number: +33 (0)1 45 05 80 08

 

if to Curetis:

 

CURETIS N.V.

Address: Max-Eyth-Str. 42, 71088 Holzgerlingen, Germany

Attention to: Oliver Schacht and Bernd Bleile

E-mail addresses: oliver.schacht@curetis.com and bernd.bleile@curetis.com

Phone number: +49 70314919510

 

Copy:

 

Linklaters LLP

Address: World Trade Centre, Zuidplein 180, Amsterdam, the Netherlands

Attention to: Joost Dantuma and Alexander Harmse

E-mail addresses: joost.dantuma@linklaters.com and alexander.harmse@linklaters.com

Phone number: +31 20 7996 261 and +31 20 7996 216

 

Each Party shall provide three (3) calendar days prior notice to
the other Party of any change in address or e-mail address.

 

9.                 
Waivers and Amendments; Non-Contractual Remedies; Preservation of Remedies. This Agreement may be amended, superseded,
cancelled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by authorized representatives
of the Parties or, in the case of a waiver, by an authorized representative of the Party waiving a condition or compliance. No
such written instrument shall be effective unless it expressly recites that it is intended to amend, supersede, cancel, renew or
extend this Agreement or to waive a condition or compliance with one or more of the terms hereof, as the case may be.

No delay on the part of either Party
in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of either
Party of any such right, power or privilege, or any single or partial exercise of any such right, power or privilege, preclude
any further exercise thereof or the exercise of any other such right, power or privilege.

 

    	  

    	 

    

 

The rights and remedies herein provided
are cumulative that either Party based upon, arising out of or otherwise in respect of any inaccuracy in or breach of any representation,
warranty, covenant or agreement contained in this Agreement shall in no way be limited by the fact that the act, omission, occurrence
or other facts upon which any claim of any such inaccuracy or breach is based may also be the subject matter of any other representation,
warranty, covenant or agreement contained in this Agreement (or in any other agreement between the Parties) as to which there is
no inaccuracy or breach.

10.             
Binding Effect; No Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and permitted assigns. This Agreement is not assignable except by operation of law; provided that the Investor
may assign all or any of its rights under this Agreement to one or more companies of the Investor Group, it being understood that
if the Investor makes such an assignment, it shall nonetheless remain liable for the performance of its obligations pursuant to
this Agreement. For the avoidance of doubt, this Section 8 does not impact or prohibit the transferability of the Notes to be issued
under this Agreement.

11.             
Captions. All Section titles or captions contained in this Agreement are for convenience only, shall not be deemed
a part of this Agreement and shall not affect the meaning or interpretation of this Agreement. All references herein to sections
or clauses shall be deemed references to such parts of this Agreement, unless the context shall otherwise require.

12.             
Costs. Each Party shall pay its own costs and expenses, incurred in relation to the negotiation, preparation, signing
and carrying into effect of this Agreement.

13.             
Governing Law. This Agreement and any non-contractual obligations arising out of or in connection with it shall be
governed by and construed in accordance with Delaware law.

14.             
Jurisdiction. Any dispute arising in connection with this Agreement shall be subject to the exclusive jurisdiction
of the competent court in New York City, New York.

15.             
Entire Agreement. This Agreement represents the full agreement of the Parties. It is a substitute for and replaces
all agreements and negotiations, oral or written, past and present dealing and agreements with respect to the matters discussed
herein.

 

    	  

    	 

    

 

IN WITNESS WHEREOF, the Parties have
caused this Agreement to be executed by their respective officers hereunto duly authorized on the date first above written.

In two (2) original copies

 

 

OPGEN, INC.

 

 

By:/s/ Timothy C. Dec          

Name: Timothy C. Dec

Title: CFO

 

 

 

YA II PN, LTD

 

 

/s/ David Gonzalez            

Signed by David Gonzalez, in his capacity as Member of Yorkville
Advisors Global II, LLC

 

 

 

CURETIS N.V.

 

 

/s/ Oliver Schacht                       

Signed by Oliver Schacht, Ph.D.

CEO

 

CURETIS N.V.

 

 

/s/ Johannes Bacher                 

Signed by Johannes Bacher

COO

 

 

    	  

    	 

    

 

EXHIBIT A

 

FORM OF CONVERSION NOTICE

 

VIA EMAIL

 

OpGen, Inc.

708 Quince Orchard Road

Gaithersburg, MD 20878

Attention: Timothy C. Dec

Email: tdec@opgenc.com

 

Conversion Notice date: [∙]

 

Please find below a Note holder’s notification with respect
to the agreement for the issuance of and subscription to notes convertible into shares with share subscription warrants attached
dated October 2, 2018, as amended and assumed by OpGen, Inc. pursuant to the Assignment of the Agreement for the Issuance of and
Subscription to Notes Convertibles Into Shares dated February ___, 2020 (the “Agreement”).

 

All terms written with a capital initial letter
shall have the definition ascribed to them in the Agreement.

 

 

	1	Number of Notes Converted	[∙]
	2	Conversion Amount (equal to the global par value and interest, if any, of the Converted Notes)	EUR [∙]
	3	Exchange Rate (EUR to USD)	 
	4	Trading Days constituting the Pricing Period1	[∙],[∙],[∙],[∙],[∙],[∙],[∙],[∙],[∙],[∙]
	5	Lowest Daily VWAP during the Pricing Period	US$ [∙]
	6	Conversion Price (rounded down to the nearest 100th), being 93% of the lowest Daily VWAP during the Pricing Period	US$ [∙]
	7	Number of Shares (rounded down) due to the Note holder equal to ((2) x (3)) / (5)	[∙]

 

Sincerely,

 

 

[Name of the Note holder]

 

 

 

1
Trading Days during which the Investor (or the relevant
Note holder, as the case may be) has not sold any Share in the market among the ten (10) consecutive Trading Days immediately preceding
the date of receipt by OpGen, Inc. of a Conversion Notice.plmr_Ex4_6

		
			Exhibit 4.6
		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES
		

		
			EXCHANGE ACT OF 1934
		

		
			Palomar Holdings, Inc. (“Palomar,” “we,” “our,” or “us”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock.
		

		
			DESCRIPTION OF CAPITAL STOCK
		

		
			The following summary of the terms of our capital stock is based upon our Certificate of Incorporation, as amended (the “Certificate of Incorporation”) and our Bylaws, as amended (the “Bylaws”). The summary is not complete, and is qualified by reference to our Certificate of Incorporation and our Bylaws, which are filed as exhibits to our Annual Report on Form 10-K and are incorporated by reference herein. We encourage you to read our Certificate of Incorporation, our Bylaws and the applicable provisions of the Delaware General Corporation Law (the “DGCL”) for additional information.
		

		
			Authorized Shares of Capital Stock
		

		
			Our authorized capital stock consists of 500,000,000 (Five Hundred Million) shares of common stock, $0.0001 par value, and 5,000,000 (Five Million) shares of preferred stock, $0.0001 par value.   Our Board of Directors is authorized to establish one or more series of preferred stock and to set the powers, preferences and rights, as well as the qualifications, limitations or restrictions, of such series.  These rights of the series of preferred stock may include, without limitation, dividend rights, dividend rates, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions) and liquidation preferences.
		

		
			Listing
		

		
			Our common stock is listed and principally traded on The Nasdaq Stock Market LLC (Nasdaq Global Select Market segment)  under the symbol “PLMR.”
		

		
			Voting Rights
		

		
			The holders of common stock are entitled to one vote per share on all matters voted on by the stockholders, including the election of directors. Except as otherwise provided by law, our Certificate of Incorporation or our Bylaws, matters will generally be decided by a majority of the votes cast.  Our stockholders do not have the right to vote cumulatively.
		

		
			Board of Directors
		

		
			Our Bylaws provide that the authorized number of directors shall be fixed from time to time by a resolution duly adopted by the Board of Directors. Our Board of Directors is classified into three classes, each class to serve for a term of three years and to be as nearly equal in number as possible.
		

		
			Our Bylaws provide that directors may be removed only with cause by the affirmative vote of the holders of a majority of the shares entitled to vote at an election of directors.
		

		
			Our Bylaws provide that a vacancy on the Board of Directors resulting from an increase in the number of authorized directors or death, resignation, retirement, disqualification, removal or other causes shall be filled by a majority of the directors then in office.
		

		
			
		

		
			

		 

		

			 

		

		

		
			Dividend Rights
		

		
			Subject to any preferential dividend rights granted to the holders of any shares of our preferred stock that may at the time be outstanding, holders of our common stock are entitled to receive dividends as may be declared from time to time by our Board of Directors out of funds legally available therefor.
		

		
			Rights upon Liquidation
		

		
			Subject to any preferential rights of outstanding shares of preferred stock, upon any liquidation or dissolution of Palomar,  holders of our common stock are entitled to share pro rata in all remaining assets legally available for distribution to stockholders.
		

		
			Other Rights and Preferences
		

		
			Our common stock has no sinking fund, redemption provisions, or preemptive, conversion, or exchange rights. There are no restrictions on transfer of our common stock, except as required by law.
		

		
			Certain Anti-Takeover Effects
		

		
			Certain provisions of our Certificate of Incorporation and Bylaws may be deemed to have an anti-takeover effect.
		

		
			Business Combinations. Section 203 of the DGCL restricts a wide range of transactions (“business combinations”) between a corporation and an interested stockholder. An “interested stockholder” is, generally, any person who beneficially owns, directly or indirectly, 15% or more of the corporation’s outstanding voting stock. Business combinations are broadly defined to include (i) mergers or consolidations with, (ii) sales or other dispositions of more than 10% of the corporation’s assets to, (iii) certain transactions resulting in the issuance or transfer of any stock of the corporation or any subsidiary to, (iv) certain transactions resulting in an increase in the proportionate share of stock of the corporation or any subsidiary owned by, or (v) receipt of the benefit (other than proportionately as a stockholder) of any loans, advances or other financial benefits by, an interested stockholder. Section 203 provides that an interested stockholder may not engage in a business combination with the corporation for a period of three years from the time of becoming an interested stockholder unless (a) the Board of Directors approved either the business combination or the transaction which resulted in the person becoming an interested stockholder prior to the time that person became an interested stockholder; (b) upon consummation of the transaction which resulted in the person becoming an interested stockholder, that person owned at least 85% of the corporation’s voting stock (excluding, for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) shares owned by persons who are directors and also officers and shares owned by certain employee stock plans); or (c) the business combination is approved by the Board of Directors and authorized by the affirmative vote of at least 66 2/3% of the outstanding voting stock not owned by the interested stockholder. The restrictions on business combinations with interested stockholders contained in Section 203 of the DGCL do not apply to a corporation whose certificate of incorporation or bylaws contains a provision expressly electing not to be governed by the statute. Neither our Certificate of Incorporation nor our Bylaws contains a provision electing to “opt-out” of Section 203, except that our Certificate of Incorporation provides that Genstar Capital Partners V AIV, L.P., Genstar Capital Partners VI AIV, L.P. and any of their respective Affiliates (as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (collectively, “Genstar”) will not be deemed to be an interested stockholder under Section 203 of the DGCL regardless of the percentage of ownership of the total voting power of all the then outstanding shares of stock entitled to vote generally in the election of directors beneficially owned by them.
		

		
			Advance Notice and Proxy Access Provisions. Our Bylaws require timely advance notice for stockholders seeking to bring business before our annual meeting of stockholders or to nominate candidates for election as directors at our annual meeting of stockholders and specify certain requirements regarding the form and content of a stockholder’s notice. The chair of the annual meeting has the ability to determine and declare at the meeting that business was not properly brought before the meeting in accordance with the provisions of our Bylaws, and, if he or she should so determine, he or she shall so declare at the meeting that any such business not properly brought before the meeting shall not be transacted.
		

		
			
		

		
			

		 

		

			 

		

		

		
			These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders if the proper procedures are not followed.
		

		
			Board Classification. Our Bylaws provide that our board of directors is divided into three classes, one class of which is elected each year by our stockholders. The directors in each class serve for a three-year term. Our classified board of directors may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us because it generally makes it more difficult for stockholders to replace a majority of the directors.
		

		
			Special Meetings. Special meetings of stockholders may be called at any time by the Board of Directors, the Chair of the Board, or the Chief Executive Officer.
		

		
			Stockholder Action by Written Consent without a Meeting. Our Certificate of Incorporation provides that any action required or permitted to be taken by the stockholders may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of record of all of the issued and outstanding capital stock authorized by law or by this Certificate of Incorporation to vote on such action.
		

		
			Supermajority Approvals. Our certificate of incorporation and bylaws provide that certain amendments to our certificate of incorporation or bylaws by stockholders will require the approval of two-thirds of the combined vote of our then-outstanding shares of common stock.
		

		
			Additional Authorized Shares of Capital Stock. The additional shares of authorized common stock and preferred stock available for issuance under our Certificate of Incorporation could be issued at such times, under such circumstances and with such terms and conditions as to impede a change in control.
		

		
			Choice of Forum.
		

		
			Our certificate of incorporation and bylaws provides that the Court of Chancery of the State of Delaware is the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the Delaware General Corporation Law, our certificate of incorporation or our bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine.
		

		
			Transfer Agent and Registrar
		

		
			Computershare Trust Company, N.A. is the transfer agent and registrar for our common stock.

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