Document:

SEC Connect

  EXHIBIT
10.2

 

HS
CONTRARIAN INVESTMENTS, LLC

68
Fiesta Way

Fort
Lauderdale, FL 33301

 

May 18,
2017

 

MabVax
Therapeutics Holdings, Inc.

11535
Sorrento Valley Rd., Suite 400

San
Diego, CA 92121

Attn:
J. David Hansen

 

Re:
Consent to 2017 Offering

 

Dear
Mr. Hansen:

 

Reference is made
to the following: (i) that Letter Agreement dated August 16, 2016
(hereinafter referred to as the “August 2016 Letter
Agreement”) by and among MabVax Therapeutics Holdings, Inc.
(the “Company”) and the undersigned lead investor in
the Company’s public offering that closed in August 2016 (the
“2016 Public Offering”), (ii) the consent dated March
10, 2017 (the “March 2017 Consent”), and (iii) the
second letter agreement dated May 15, 2017 attached hereto as
Exhibit A (the “May 2017 Letter Agreement”).
Capitalized terms used herein and not defined herein shall have the
meanings given to them in the August 2016 Letter
Agreement.

 

On
February 10, 2017, the Company filed a Registration Statement on
Form S-1 (File No. 333-216016), as amended (the “Registration
Statement”) pursuant to which the Company had undertaken to
consummate a public offering of up to $10 million of its
securities. On May 12, 2017, the Registration Statement amount was
amended by Amendment No. 6 to an amount of $5.085 million, and on
May 15, 2017, an Underwriting Agreement for an offering of $4.1
million (the “2017 Offering”) was executed with Laidlaw
& Co. (UK) Ltd. as lead underwriter, as described in the
prospectus dated May 16, 2017 filed with the SEC under Rule 424B4
(the “Prospectus”) promulgated under the Securities Act
of 1933, as amended (the “Act”).

 

The
undersigned has reviewed the Prospectus. Pursuant to Paragraph A of
the August 2016 Letter Agreement, the undersigned hereby consents
to the 2017 Offering and the transactions contemplated by the
Prospectus (the “Consent”).

 

In
consideration for the Consent to the 2017 Offering, upon closing
thereof pursuant to the Prospectus, the Company shall issue to the
undersigned and certain investors in the 2016 Public Offering (the
“August 2016 Investors”) 2,610,000 shares (the “Inducement
Shares”) of the Company’s common stock, par value $0.01
per share (the “Common Stock”), provided, however, that
any August 2016 Investor who beneficially owns or as a result of
any purchases in the Offering or issuances of the Inducement Shares
or otherwise will beneficially own 5% or more of the Common Stock
of the Company, may elect to receive shares of the Company’s
preferred stock containing “beneficial ownership
blocker” provisions and a liquidation preference equal to the
par value thereof (the “Inducement Preferred Shares”)
to be issued by the Company convertible into the pro rata portion
of the Inducement Shares such August 2016 Investor would otherwise
receive. The Company shall issue the Inducement Shares and
Inducement Preferred Shares as restricted securities, unless in the
opinion of counsel to the Company such shares are deemed to be
registered under the Act and if not so registered shall within 30
days of issuance file a registration statement under the Act with
respect to the Inducement Shares and the Common Stock underlying
the Inducement Preferred Shares, and shall issue such shares within
five (5) business days of closing of the 2017 Offering during which
time any August 2016 Investor may instruct the Company to issue
Inducement Preferred Shares. No Inducement Shares and no Inducement
Preferred Shares shall be required to be issued or issued to any
August 2016 Investor who in connection with the 2017 Offering does
not invest at least 50% of the of such investor made in the August
2016 Offering and holds on the date of the Prospectus 100% of the
shares of common stock or Series F Preferred Stock acquired (the
“Minimum Required Investment”). August 2016 Investors
shall be entitled to receive their pro rata share of 2,610,000
Inducement Shares, as provided above, and the undersigned
consenting investor shall receive 290,000 Inducement Shares, in
addition to any pro rata shares.

 

 

 

-1-

 

 

In
the event the August 2016 Investors elect to receive Inducement
Preferred Shares, the Inducement Preferred Shares shall be entitled
to a per share preferential payment equal to the par value of $0.01
per share. In the event of a liquidation, dissolution or winding up
of the Company, each share of Inducement Preferred Shares will be
entitled to a per share preferential payment equal to the par value
of $0.01 per share. Additionally, any August 2016 Investor as a
condition of receiving Inducement Shares or Inducement Preferred
Shares shall be required to consent to the cancellation of all
warrants issued in connection with the August 2016 Offering which
warrants are presently exercisable at a price of $5.55 and $6.29,
respectively.

  

In
consideration for the Consent to the 2017 Offering, upon closing
thereof pursuant to the Prospectus provided investors in the Company’s April
2015 financing (the “April 2015 Financing”) invest at
least 25% of the amount of such investor’s investment in the
April 2015 Financing made in the August 2016 Offering and holds on
the date of the Prospectus 100% of the shares of common stock or
Series E Preferred Stock acquired (the “2015 Minimum Required
Investment”) then the exercise price of all warrants to
purchase common stock currently exercisable at $11.10 per share,
shall be reduced to $2.00 per share, provided however, such April
2015 Financing Investor shall be required to consent to elimination
of any right to cashless exercise of such warrants and that such
warrants shall require immediate payment in cash upon the exercise
thereof (the “Inducement Amended Warrants”). To the
extent there is less than 100% participation, the number of
warrants offered for repricing, or number of shares to be issued as
part of the Additional Issuance would be reduced pro rata. The
Company shall issue the Inducement Amended Warrants and Common
Stock issuable thereunder as restricted securities, unless in the
opinion of counsel to the Company such shares are deemed to be
registered under the Act and if not so registered shall within 30
days of issuance file a registration statement under the Act with
respect to the Common Stock underlying the Inducement Amendment
Warrants, and shall issue such Inducement Amended Warrants within
five (5) business days of closing of the 2017
Offering.

 

Each
investor will be required to present suitable evidence of the
ownership to the Company in accordance with the
foregoing.

 

Notwithstanding
anything herein to the contrary, in the event the 2017 Offering
does not close prior to June 1, 2017, this Consent and the
agreements hereunder shall be null and void.

 

Upon
closing of the 2017 Offering, rights to consent under the August
2016 Letter Agreement and the March 2017 Consent (and any
restrictions on the Company contained therein) shall terminate and
be of no force and effect, provided however, the undersigned shall
have the right to approve future (i) issuances of the
Company’s securities, (ii) equity or debt financings and
(iii) sales of any development product assets currently held by the
Company, subject to certain exceptions, if such securities are sold
at price below $2.50 per share and for as long as the undersigned
holds 50% or more of the shares of Series G Preferred Stock
purchased by the undersigned in the 2017 Offering. In addition,
each of the matters set forth in the May 2017 Letter Agreement,
shall be enforceable by the undersigned and continue in full force
and effect following closing of the 2017 Offering.

 

	
 

	
 

Sincerely,

 

HS
Contrarian Investments, LLC

 

By:
/s/ John
Stetson

Name:
John Stetson

Title:
Manager

 

 

 

 

-2-

 

 

Exhibit
A 

 

 

 

-3-

 

 

MabVax
Therapeutics Holdings, Inc.

11535
Sorrento Valley Rd., Suite 400

San
Diego, CA 92121

Phone:
(858) 259-9405

 

  May 15,
2017

 

HS
Contrarian Investments, LLC

68
Fiesta Way

Fort
Lauderdale, FL 33301

Attn:
John Stetson

 

Re:
Letter Agreement

 

Dear
Mr. Stetson,

 

MabVax Therapeutics
Holdings, Inc. (the “Company”) and HS Contrarian
Investments, LLC (“HSCI”) hereby agree pursuant to this agreement
(this “Letter Agreement”) that:

 

A.

Financing.

 

HSCI shall lead a financing of $4,000,000 at $1.75 per share of
common stock (or shares of the Company’s Series G Convertible
Preferred Stock (“Series G Preferred Stock”), as HSCI
may elect, so as not to own in excess of 4.9% but otherwise
equivalent to common stock) in the Company’s May 2017 public
offering (the “Offering”). The stock shall be fully
registered on Form S-1.

 

$500,000 of the funds will be held in escrow and released to one or
more investor relations services acceptable to the Company
following the closing of the Offering.

 

B.

Consent to
Future Financings.

HSCI shall have the right to approve future (i) issuances of the
Company’s securities, (ii) equity or debt financings and
(iii) sales of any development product assets currently held by the
Company, subject to certain exceptions, if such securities are sold
at price below $2.50 per share and for as long as HSCI holds 50% or
more of the shares of Series G Preferred Stock purchased by HSCI in
the Offering.

 

C.

Ratchet
Provision.

 

HSCI and each investor in the Company’s 2016 public offering
(the “August 2016 Investors”), upon receipt of suitable
evidence of such ownership acceptable to the Company and an
investment into the Offering of at least 50% of their August 2016
investment, shall be entitled to receive their pro rata share of
2.9 million shares, after HSCI receives the first 10%. The Company
shall issue the additional shares within three (3) trading
days’ of closing the Offering.

 

D.

Warrant
Cancellation.

 

The August 2016 Investors who still hold 100% of their shares from
the 2016 public offering and make an investment into the Offering
of at least 50% of their August 2016 investment, will have their
outstanding warrants, exercisable at a price of $5.55 and $6.29,
respectively, from the August 2016 public offering,
cancelled.

 

E.

August 2015
Investors.

 

Investors in the Company’s 2015 private offering that invest
at least 25% of their original investment from the April 2015
financing and still hold 100% of their common stock or Series E
preferred stock from the April 2015 financing, will have their up
to 805,361 warrants to purchase common stock at $11.10 per share,
which were issued in that financing, reduced to $2.00 per share and
the cashless exercise provision shall be removed. To the extent
there is less than 100% participation, the number of warrants
offered for repricing would be reduced pro rata.

 

F.

Board of
Directors.

 

The Company shall nominate one candidate to the Board of Directors
of the Company prior to December 31, 2017. Such candidate shall be
presented to and acceptable to HSCI prior to appointment. Two
current Board of Directors members shall resign.

 

 

 

 

 

G.

Executive
Hire.

 

The Company shall hire a new executive officer in a leadership role
with a C-Level title by July 15, 2017.

 

H.

Executive
& Board Compensation.

 

The Company shall issue an aggregate of 1,050,000 options (50,000
to Phil Livingston and 500,000 to each of J. David Hansen and
Jeffrey Ravetch), at a price not less than $2.00 per share. Each
member of the Board of Directors (not including Mr. Hansen and Mr.
Ravetch) shall receive 50,000 options at the current market price
in connection with the Offering. The options shall be issued
pursuant to the Company’s option plan and are subject to the
requisite approvals and subject to availability under the plan. To
the extent the Company needs to increase the number of shares
available under such plan, the Company will need the approval of
the Board of Directors and stockholders. The Company shall also
waive all board fees for 2017.

 

I.

Miscellaneous

 

The rights herein are specific to HSCI,
and may only be exercised by the managing
partner/president of HSCI
which is John Stetson.  Such rights shall not be assigned
or transferred to or assumed by any other party or individual,
voluntarily or by operation of law, and any such purported
assignment, transfer or assumption shall be void and of no force or
effect.

 

This Letter Agreement shall be governed by the laws of the state of
New York, without giving effect to any conflict of laws provision,
and may not be amended other than through a written agreement
executed by the Company and HSCI.

 

As used herein, “HSCI” shall mean any person or entity
controlled by, in control of, or in common control with John
Stetson.

  

 MabVax Therapeutics Holdings,
Inc.

 

 

By:
/s/ J. David
Hansen

Name:
J. David Hansen

Title:  President
and Chief Executive Officer

HS Contrarian Investments LLC

 

 

By:  /s/
John Stetson

Name: 
John Stetson

Title:  
Manager

 

 

 

-5-SEC Connect

 
  EXHIBIT
10.3

 

RESCISSION AGREEMENT

 

THIS
RESCISSION AGREEMENT (the “Agreement”), dated and
effective as of May 19, 2017 (the “Effective
Date”), is made
by and between MabVax Therapeutics Holdings, Inc., a Delaware
corporation (“Company”), and the holder of the
Company’s Series H Preferred Stock signatory hereto
(“Holder”).

 

WHEREAS, pursuant
to that certain Subscription Agreement (the “Subscription
Agreement”), dated as of May 3, 2017, by and between the
Company and the Holder, whereby, among other things, the Holder
purchased from the Company $[ ] of shares of Series H Convertible
Preferred Stock having a stated value of $1,000 per share (the
“Series H Preferred Stock” or the “Exchange
Securities”);

 

WHEREAS, the
Company has authorized a new series of convertible preferred stock
of the Company designated as Series G Convertible Preferred Stock,
$0.01 par value, the terms of which are set forth in the
Certificate of Designation of Preferences, Rights and Limitations
of Series G Convertible Preferred Stock (the “G Certificate
of Designations”) in the form attached hereto as Exhibit A (together with any
convertible preferred shares issued in replacement thereof in
accordance with the terms thereof, the “Series G Preferred
Stock”), which Series G Preferred Stock shall be convertible
into the Company’s Common Stock, in accordance with the terms
of the G Certificate of Designations;

 

WHEREAS, the
Company has filed a Registration Statement on Form S-1, as amended
(Registration No. 333-216016) (the “Registration
Statement”) with the Securities and Exchange Commission (the
“SEC”), and such Registration Statement has been
declared effective by the SEC, in connection with a public offering
of the Company’s Series G Preferred Stock and Common Stock
that is expected to close on the Effective Date (the
“Offering”);

 

WHEREAS, on May 10,
2017, the Company and the Holder entered into an exchange agreement
(the “Exchange Agreement”) pursuant to which the Holder
agreed to exchange all of its Series H Preferred Stock and
relinquish any and all other rights it may have pursuant to the
Exchange Securities, their respective governing agreements and
certificates of designation, including any related registration
rights, in exchange for an aggregate of ____________ shares of
Series G Preferred Stock in the Offering (the
“Exchange”), with such shares of Series G Preferred
Stock to be issued at the closing of the Offering;

 

WHEREAS, the Holder
and Company intend that this Agreement be effective prior to the
closing of the Offering;

 

WHEREAS,
the parties have amicably
determined that it is in their collective best interest to: (i)
rescind the Exchange Agreement, including but not limited to the
exchange of Exchange Securities for Series G Preferred Stock, and
(ii) provide for such additional agreements as are set forth
herein; and

 

WHEREAS, in
connection with the Offering, the Company and Holder desire to
cancel certain of Holder’s warrants and issue the Holder new
shares of common stock, preferred stock and warrants as further set
forth in the lead investor consent attached hereto as Exhibit B
(the “Lead Investor Consent”).

 

 NOW, THEREFORE, in consideration of the mutual
promises and obligations set forth herein, the parties hereby agree
as follows:

 

1.

Rescission of Exchange
Agreement.  The Company
and the Holder hereby rescind the Exchange Agreement and all
transactions contemplated thereby, including the Exchange, in its
entirety, effective prior to the consummation of the Offering, such
that the Exchange Agreement shall have no force or effect and shall
create no rights or obligations whatsoever of one party against the
other.  For the avoidance of doubt, the Holder shall remain
the beneficial owner of the Series H Preferred Stock and the Holder
shall purchase the Series G Preferred Stock in the Offering for
cash.

 

2.

Subscription Agreement
and Registration Rights Agreement. The Holder and Company agree that the
Subscription Agreement and that certain Registration Rights
Agreement, dated as of May 3, 2017, by and between the Company and
the Holder, as amended from time to time (the “Registration
Rights Agreement”) remain in full force and effect, including
all of the Company’s and Holder’s respective
obligations thereunder. For the avoidance of doubt, the Company and
Holder agree that Holder’s registration rights and the
Company’s related obligations under the Subscription
Agreement and Registration Rights Agreement remain in full force
and effect.

 

 

 

 

3.

Consent to Cancellation of Existing
Warrants and Issuance of New Warrants. The Holder has
reviewed the attached Lead Investor Consent and consents, as a
condition to receipt of Inducement Shares, to the cancellation of
all warrants issued to the Holder in connection with the August
2016 Offering and consents to the amendment of the warrants issued
to it that have a current exercise price of $11.10 per share
(including elimination of any right to cashless exercise of such
warrants), pursuant to the terms described in the Lead Investor
Consent (all terms used in this Section 3 but not defined shall
have the meanings assigned to them in the Lead Investor
Consent).

 

4.

Legal Representation. Each
party hereto acknowledges that it has been represented by
independent legal counsel in the preparation of the Agreement and
each party waives any conflicts of interest and other allegations
that it has not been represented by its own counsel.

 

5.

Miscellaneous.

 

a.

Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors and assigns.

 

b.

Governing Law; Jurisdiction; Waiver of
Jury Trial. This Agreement shall be governed by and
construed under the laws of the State of New York without regard to
the choice of law principles thereof. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal
courts sitting in the State of New York located in The City of New
York, Borough of Manhattan for the adjudication of any dispute
hereunder or in connection herewith or therewith or with any
transaction contemplated hereby or thereby, and hereby irrevocably
waives any objection that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

c.

Severability. If any provision
of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect
the validity or enforceability of the remainder of this Agreement
in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction.

 

d.

Counterparts/Execution.
This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party. In the event
that any signature is delivered by facsimile transmission or by an
e-mail which contains an electronic file of an executed signature
page, such signature page shall create a valid and binding
obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such
facsimile or electronic file signature page (as the case may be)
were an original thereof.

 

e.

Notices. Any notice or
communication permitted or required hereunder shall be in writing
and shall be deemed sufficiently given if hand-delivered or sent
(i) postage prepaid by registered mail, return receipt requested,
or (ii) by facsimile, to the respective parties as set forth below,
or to such other address as either party may notify the other in
writing.

 

If to
the Company, to: 

 

MabVax
Therapeutics Holdings, Inc.

11535
Sorrento Valley Road, Ste. 400

San
Diego, CA 92121

Attention: Chief
Executive Officer

 

 

 

 

If to
Holder, to the address set forth on the signature page of the
Holder.

 

f.

Expenses. The parties hereto
shall pay their own costs and expenses in connection
herewith.

 

g.

Entire Agreement; Amendments.
This Agreement constitutes the entire agreement between the parties
with regard to the subject matter hereof and thereof, superseding
all prior agreements or understandings, whether written or oral,
between or among the parties. This Agreement may be amended,
modified, superseded, cancelled, renewed or extended, and the terms
and conditions hereof may be waived, only by a written instrument
signed by all parties, or, in the case of a waiver, by the party
waiving compliance. Except asexpressly stated herein, no delay on
the part of any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver
on the part of any party of any right, power or privilege hereunder
preclude any other or future exercise of any other right, power or
privilege hereunder.

 

h.

Headings. The headings used in
this Agreement are used for convenience only and are not to be
considered in construing or interpreting this
Agreement. 

 

i.

Independent Nature of
the Holder’s Obligations and Rights. The obligations of the Holder under this
Agreement are several and not joint with the obligations of any
other holder of Series H Preferred Stock (each, an “Other
Holder”) under any other agreement to exchange Series H
Preferred Stock or rescind such exchange agreement (each, an
“Other Agreement”), and the Holder shall not be
responsible in any way for the performance of the obligations of
any Other Holders under any Other Agreement. Nothing contained
herein or in any Other Agreement, and no action taken by the Holder
pursuant hereto or any Other Holder pursuant to any Other
Agreement, shall be deemed to constitute the Holder or any Other
Holder as, and the Company acknowledges that the Holder and the
Other Holders do not soconstitute, a partnership, an association, a
joint venture or any other kind of group or entity, or create a
presumption that the Holder and any Other Holder are in any way
acting in concert or as a group or entity with respect to such
obligations or the transactions contemplated by this Agreement, any
other agreement or any matters, and the Company acknowledges that
the Holder and the Other Holders are not acting in concert or as a
group or entity, and the Company shall not assert any such claim,
with respect to such obligations or the transactions contemplated
by this Agreement and any Other Agreement. The decision of the
Holder to rescind the Exchange pursuant to this Agreement has been
made by the Holder independently of any Other Holder. The Holder
acknowledges that no Other Holder has acted as agent for the Holder
in connection with the Holder hereunder and that no Other Holder
will be acting as agent of the Holder in connection with monitoring
the Holder’s Securities or enforcing its rights under this
Agreement. The Company and the Holder confirm that the Holder has
independently participated with the Company in the negotiation of
the transaction contemplated hereby with the advice of its own
counsel and advisors. The Holder shall be entitled to independently
protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of any of the Other
Agreements, and it shall not be necessary for any Other Holder to
be joined as an additional party in any proceeding for such
purpose.To the extent that any
of the Other Holders and the Company enter into the same or similar
documents, all such matters are solely in the control of the
Company, not the action or decision of the Holder, and would be
solely for the convenience of the Company and not because it was required or requested to do
so by the Holder or any Other
Holder. For clarification purposes only and without implication
that the contrary would otherwise be true, the transactions
contemplated by this Agreement include only the transaction between
the Company and the Holder and do not include any other transaction
between the Company and any Other Holder.

 

 

(Signature
Pages Follow)

 

 

 

IN WITNESS WHEREOF, the parties have
caused this Agreement to be duly executed as of the day and year
first above written.

 

MABVAX THERAPEUTICS HOLDINGS, INC.

 

 

 

By:____________________________________

Name:
J. David Hansen

Title:
Chief Executive Officer

 

 

HOLDER:

 

 

 

By:____________________________________

Name:

Title:

Address
for Notice:

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