Document:

ex10-7.htm

 

Exhibit 10.7

 

RIGHT OF FIRST NEGOTIATION AGREEMENT

 

This Right of First Negotiation Agreement (this “Agreement”), dated June 28, 2013, is made by and among Tengion, Inc., a Delaware corporation, with a principal address at 3929 Westpoint Boulevard, Suite G, Winston-Salem, NC 27103 (“Tengion”) and Celgene Corporation, a Delaware corporation with a principal address at 86 Morris Avenue, Summit, New Jersey 07901 (“Celgene” and, together with Tengion, the “Parties”).

 

WHEREAS, on even date herewith, Tengion and entities affiliated with Celgene have entered into that Collaboration and Option Agreement dated the date hereof (the “Collaboration Agreement” and together with this Agreement, the “Celgene Strategic Transaction Documents”).

 

WHEREAS, pursuant to the terms of the Celgene Strategic Transaction Documents, Celgene and its affiliate have agreed to pay $15 million to the Company for a right of first negotiation with respect to Tengion’s Neo-Kidney Augment Program, an option to purchase Tengion’s esophagus program and certain warrants to purchase  22,277,228 shares of common stock of Tengion (the “Warrants”).

 

WHEREAS, the transactions contemplated by the Celgene Strategic Transaction Documents are expected to close on or about June 28, 2013 (the actual date of such closing hereinafter referred to as the “Effective Date”).

 

WHEREAS, in consideration of Celgene’s investment Tengion is willing to grant Celgene certain rights with respect to its Neo-Kidney Augment Program.

 

NOW, THEREFORE, intending to be legally bound hereby, the Parties hereby agree as follows:

 

1. Right of First Negotiation.  At any time beginning on the Effective Date until the termination of the ROFN in accordance with Section 2 hereof, Celgene will have the right of first negotiation (“ROFN”) with respect to any license, sale, assignment, transfer or other disposition (“Transfer”) by Tengion of any material portion of intellectual property (including patents, know-how, trade secrets, trademarks, service marks, and any data in any format) (“IP”) or other assets related to Tengion's Neo-Kidney Augment Program (an “NKA Transaction”), provided, however, that an NKA Transaction shall not include: (i) the Transfer of (a) IP exclusively related to Tengion development programs other than the Neo-Kidney Augment Program and (b) any IP, which may be broadly applicable or useful to multiple product candidates or fields of use (inclusive of Neo-Kidney Augment), provided, that (A) the transferee party to such Transfer would not compete as a result of such Transfer with  the Neo-Kidney Augment, and such Transfer would not otherwise materially diminish the value of the Neo-Kidney Augment, and (B) Celgene receives a worldwide, fully paid-up, royalty-free, sublicensable, exclusive  license (as to the Neo-Kidney Augment "field of use") to such IP to the extent that such IP relates to Neo-Kidney Augment; or (ii) a Change in Control Transaction.  Accordingly, before entering into an NKA Transaction with any third party, Tengion shall notify Celgene in writing that it may pursue such a potential NKA Transaction and Celgene shall have fifteen (15) days from the receipt of such notice (“Notice of Interest Period”) to provide Tengion written notice (“Notice of Interest”) that it desires to enter into good faith negotiations with Tengion regarding an NKA Transaction. If Celgene gives a timely Notice of Interest, then the Parties shall negotiate exclusively, reasonably and in good faith concerning the terms of an NKA Transaction for a period of sixty (60) days (“Negotiation Period”).  If Celgene (a) gives notice that it does not wish to pursue an NKA Transaction, (b) fails to give a timely Notice of Interest, or (c) gives a timely Notice of Interest but the Parties fail to reach agreement on the terms of an NKA Transaction or to execute a definitive agreement with respect to an NKA Transaction prior to the expiration of the Negotiation Period, then the ROFN shall expire (the “ROFN Expiration”) and Tengion shall be free, without any further obligation to Celgene under this Agreement with respect thereto, to enter into an NKA Transaction with any third party; provided, that,  if (A) such third party transaction is, when taken as a whole, materially less favorable to Tengion and its stockholders than the terms last offered to Tengion by Celgene, or (B) the amount of the upfront cash payment provided for in such third party transaction is less than or equal to the amount of the upfront cash payment last offered by Celgene, then Tengion will provide written notice describing and offering Celgene such NKA Transaction for a period of fifteen (15) days (after Celgene’s receipt of such notice) before entering such NKA Transaction with a third party.  If Celgene elects to pursue such NKA Transaction, it shall deliver written notice to Tengion within such fifteen (15) day period, and the Parties will proceed to negotiate and finalize definitive agreements.  For avoidance of doubt, (a) the rights and obligations described in this Section 1 shall apply to any notice of Tengion’s intent to pursue an NKA Transaction delivered on and after the Effective Date, notwithstanding the fact that the fifteen (15) day and sixty (60) day periods described herein may exceed the same, and (b) preliminary discussions that precede a formal offer or term sheet shall not be restricted by this Section 1.  Notwithstanding anything to the contrary, the Parties agree that the ROFN shall automatically be reinstated if Tengion does not enter into a definitive agreement for an NKA Transaction with a third party within six (6) months after the then most-recent ROFN Expiration.

 

 

  

  

  

 

 

For purposes of this Agreement, a Change in Control Transaction shall mean: (1) the sale of all or substantially all of the assets of Tengion to an unrelated person or entity, (2) a merger, reorganization, consolidation or similar transaction pursuant to which the holders of Tengion’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion of such transaction, or (3) the sale of all of the stock of Tengion to an unrelated person or entity.

 

2. Termination of ROFN.  Upon the earlier of (i) the consummation of a Change in Control Transaction or (ii) expiration of the Term, this Agreement and the ROFN contained herein shall terminate in all respects and be of no further force and effect.  As used herein, the “Term” shall be the period beginning on the Effective Date and ending on the fourth anniversary of the Effective Date; provided that the Term may be extended for two additional years by Celgene in its discretion by so notifying Tengion of Celgene’s desire to extend the Term prior to such fourth anniversary, which notice shall be accompanied by a payment to Tengion of $7.5 million.

 

3. Representations and Warranties.  The representations and warranties of Tengion and Celgene set forth in Section 10.1 of the Collaboration Agreement are incorporated herein by reference.

 

4. Notices.  All notices and other communications hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if by facsimile, upon written confirmation of receipt by facsimile, (b) on the first business day following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth business bay following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid.  All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice:

 

 

  

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Tengion, Inc.

3929 Westpoint Boulevard, Suite G

Winston-Salem, NC 27103

Attention:  President and Chief Executive Officer

Facsimile:  (336) 722-2436

 

with a copy (which shall not constitute notice) to:

 

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199-3600

 

Attention:  Marc A. Rubenstein, Esq.

E-mail:  marc.rubenstein@ropesgray.com

 

Celgene Corporation

86 Morris Avenue

Summit, New Jersey 07091

Attention: Head of Research

Facsimile: (908) 673-2769

 

with a copy (which shall not constitute notice) to:

Celgene Corporation

86 Morris Avenue

Summit, New Jersey 07091

Attention: Chief Counsel

Facsimile: (908) 673-2771

5. Entire Agreement.  The Celgene Strategic Transaction Documents and the Warrants constitute the entire agreement, and supersede all prior written agreements, arrangements, communications and understandings and all prior and contemporaneous oral agreements, arrangements, communications and understandings among the Parties with respect to the subject matter hereof and thereof.

 

 

 

  

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6. Governing Law.   All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to contracts made and to be performed in such state.  Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan (“New York Courts”).  Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Celgene Strategic Transaction Documents or the Warrants), and hereby irrevocably waives, and agrees not to assert in any legal proceeding, any claim that it is not personally subject to the jurisdiction of any such New York Court, or that such legal proceeding has been commenced in an improper or inconvenient forum.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such legal proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

7. No Assignment.  Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of law or otherwise, by any party without the prior written consent of the other party, and any such assignment without such prior written consent shall be null and void.

 

8. Severability.  Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

 

9. Counterparts.  This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.  This Agreement may be executed by facsimile signature and a facsimile signature shall constitute an original for all purposes.

 

[Remainder of Page Intentionally Left Blank]

  

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

TENGION, INC.

By:           /s/ A. Brian Davis

Name:      A. Brian Davis

Title:        Chief Financial Officer and Vice President, Finance

[Right of First Negotiation Agreement Signature Page]

  

  

  

	  	
CELGENE CORPORATION

 

	  	
By:

	
/s/ Perry Karsen

	  	
Name:

	
Perry Karsen

	  	
Title:

	
EVP, Chief Operations Officer

 

 

 

 

 

 

[Right of First Negotiation Agreement Signature Page]Exhibit 10.2

 

EXECUTION COPY

 

FORM OF LOCK-UP AGREEMENT

 

This LOCK-UP AGREEMENT (this “Agreement”), dated as of June 6, 2013, is made and entered into by and among (a) Alexander & Baldwin, Inc., a Hawaii corporation (“Parent”), (b) A&B II, LLC, a Hawaii limited liability company and a wholly owned subsidiary of Parent (“Merger Sub”) and (c)                                            (the “Shareholder”).  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Merger Agreement (as defined below).

 

WHEREAS, concurrently with the execution and delivery of this Agreement, an Agreement and Plan of Merger (as such agreement may be amended from time to time, the “Merger Agreement”) is being entered into by and among Parent, Merger Sub, Grace Pacific Corporation, a Hawaii corporation (“Grace”), GPC Holdings, Inc., a Hawaii corporation and initially a wholly owned subsidiary of Grace and, following the Holding Company Reorganization, the parent company of Grace (“GPC Holdings”), and David C. Hulihee, in his capacity as the Shareholders’ Representative, pursuant to which, following the Restructuring, GPC Holdings will be merged with and into Merger Sub, with Merger Sub continuing as the surviving entity (the “Merger”);

 

WHEREAS, the Shareholder will be issued shares of common stock, without par value, of Parent (the “Parent Common Stock”) pursuant to the Merger Agreement; and

 

WHEREAS, as a condition to, and in consideration for, Parent’s and Merger Sub’s willingness to enter into the Merger Agreement and to consummate the Merger and the other transactions contemplated thereby, Parent and Merger Sub have required that the Shareholder enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.                                      Lock-Up Period.  The Shareholder covenants and agrees not to (a) offer, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, pledge, hypothecate, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any of the shares of Parent Common Stock issued to the Shareholder pursuant to the Merger Agreement (all such shares, the “Locked-Up Shares”) or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Locked Up Shares, whether any such transaction described in clause (a) or (b) is to be settled by delivery of Parent Common Stock, in cash or otherwise, for a period of six (6) months following the Effective Time of the Merger.  Notwithstanding the foregoing, the Shareholder may Transfer Locked-Up Shares to (i) a controlled Affiliate of the Shareholder, (ii) if the Shareholder is a natural person, an immediate family member or lineal descendant of the Shareholder or (iii) if the Shareholder is a natural person, any trust created for the benefit of any person specified in clause (ii) or other estate planning vehicle (each, a “Permitted Transferee”) if, and only if, in each case, the Permitted

 

 

Transferee agrees in writing to be bound by the provisions of this Agreement to the same extent as the Shareholder.

 

2.                                      Legend; Stop Transfer Instructions.

 

(a)                                 Each stock certificate representing the Locked-Up Shares shall be stamped or otherwise imprinted with the following legend:

 

“THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK-UP AGREEMENT, DATED AS OF JUNE 6, 2013, BY AND BETWEEN THE HOLDER HEREOF AND THE ISSUER AND MAY ONLY BE SOLD OR TRANSFERRED IN ACCORDANCE WITH THE TERMS THEREOF.”

 

(b)                                 The Shareholder hereby agrees and consents to the entry of stop transfer instructions with Parent’s transfer agent and registrar against the transfer of the Locked-Up Shares held by the Shareholder except in compliance with this Agreement.

 

3.                                      Miscellaneous.

 

(a)                                 Specific Performance.  The parties agree that irreparable damage would occur and that the parties would not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any federal court located in the State of Hawaii or in Hawaii state court, this being in addition to any other remedy to which they are entitled at law or in equity.

 

(b)                                 Severability.  Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

 

(c)                                  Fees and Expenses; Attorneys’ Fees.  Except as otherwise expressly provided in this Agreement, Parent, on the one hand, and the Shareholder, on the other hand, shall each bear its own direct and indirect fees and expenses in connection with the investigation, negotiation and performance of this Agreement and the consummation of the other transactions contemplated hereby, including all direct and indirect expenses, financial advisory, legal and accounting fees.

 

(d)                                 Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED UNDER THE LAWS OF THE STATE OF HAWAII.

 

(e)                                  Consent to Jurisdiction.  Each party to this Agreement, by its execution hereof, hereby:

 

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(i)                                     irrevocably submits to the exclusive jurisdiction of a court of competent authority in the State of Hawaii or any United States federal court located in the State of Hawaii, for the purpose of any and all actions, suits or proceedings arising in whole or in part out of, related to, based upon or in connection with this Agreement or the subject matter hereof;

 

(ii)                                  waives to the extent not prohibited by applicable Law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court; and

 

(iii)                               agrees not to commence any such action other than before one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action to any court other than one of the above-named courts whether on the grounds of forum non conveniens or otherwise.

 

(f)                                   Entire Agreement.  This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, written and oral, among the parties with respect to the subject matter hereof.

 

(g)                                  Notices.  All notices and other communications hereunder shall be in writing and shall be addressed as follows (or at such other address for a party as shall be specified by like notice):

 

(i)                                     if to the Shareholder, to:

 

 

 

 

 

With copies to:

 

Sidley Austin LLP
 555 W. 5th Street, 40th Floor
 Los Angeles, California 90013
 Facsimile:  (213) 896-6600
 Attention:   Robert W. Kadlec

 

and

 

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Schneider Tanaka Radovich Andrew & Tanaka
 1100 Alakea Street, Suite 2100
 Honolulu, Hawaii 96813 
 Facsimile:  (808) 792-3920
 Attention:   Tod Tanaka

 

and

 

(ii)                                  if to Parent or Merger Sub, to:

 

Alexander & Baldwin, Inc.
 822 Bishop Street
 Honolulu, Hawaii 96813
 Facsimile:  (808) 525-6678
 Attention:   Nelson Chun

 

With a copy to:

 

Skadden, Arps, Slate, Meagher & Flom LLP
 1440 New York Avenue, N.W. 
 Washington, D.C. 20005
 Facsimile: (202) 661-8280
 Attention: Marc S. Gerber

 

(h)                                 Binding Effect; Persons Benefiting; No Assignment.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.  Nothing in this Agreement is intended or shall be construed to confer upon any entity or person other than the parties hereto and their respective successors and permitted assigns any right, remedy or claim under or by reason of this Agreement or any part hereof.  This Agreement may not be assigned by any of the parties hereto without the prior written consent of the other parties hereto and any purported assignment or other transfer without such consent shall be void and unenforceable; provided, however, that without such prior consent, Parent shall have the right to assign all or any part of its right, title, interest or obligations hereunder to any wholly owned Subsidiary of Parent, provided that Parent remains liable for its obligations hereunder notwithstanding a permitted assignment.

 

(i)                                     Amendment, Modification and Waiver.  This Agreement may not be amended, altered or modified except by written instrument executed by the parties hereto.  Any waiver of rights hereunder must be set forth in writing.  The failure by any party hereto to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision nor in any way to affect the validity of this Agreement or any part hereof or the right of such party thereafter to enforce each and every such provision.  No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach or non-compliance.

 

(j)                                    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall  constitute one and the same agreement, it being understood that all of the parties need not sign the same counterpart.

 

[Signature page follows]

 

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IN WITNESS THEREOF, Parent, Merger Sub and the Shareholder have caused this Agreement to be duly executed as of the day and year first above written.

 

	
 
    	
 
    	
PARENT:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ALEXANDER & BALDWIN, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
MERGER   SUB:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A&B II, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
SHAREHOLDER:

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