Document:

Exhibit 10.2

 

ESCROW AGREEMENT

 

THIS
ESCROW AGREEMENT (“Agreement”) is
made and entered into as of the  25th day of September, 2009, by and among JPMorgan
Chase Bank, N.A. (the “Escrow Agent”),
Celsion Corporation, a Delaware
corporation (the “Company”) and
Needham & Company, LLC (“Needham”
or the “Placement Agent”).

 

WITNESSETH:

 

WHEREAS, the Company
proposes to sell an aggregate of up to 2,018,153 units (the “Units”), with each Unit consisting of (i) one
share (each, a “Share” and,
collectively, the “Shares”) of the
common stock, par value $0.01 per share (the “Common
Stock”) of the Company and (ii) one warrant to purchase 0.5
shares of Common Stock (the “Warrant”
and, collectively, the “Warrants”),
for a purchase price of $3.50 per Unit, all as described in the Company’s
effective Registration Statement filing on Form S-3 (No. 333-158402),
as the same may be amended or supplemented, including through any prospectus
supplement or free writing prospectus (which, together with all amendments or
supplements thereto is referred to herein as the “Registration Statement”);

 

WHEREAS, the Units are being
offered by the Company to subscribers identified by the Placement Agent,
pursuant to the terms of the Placement Agent Agreement, dated as of the date
hereof (the “Placement Agent Agreement”),
by and between the Company and the Placement Agent, and the Subscription
Agreements executed by the subscribers (the “Subscription
Agreements”).  The Escrow
Agent has not (i) received a copy of, (ii) has not reviewed, (iii) is
not a party to and (iv) will not be held responsible for the terms of the
Registration Statement, Placement Agent Agreement or the Subscription
Agreements;

 

WHEREAS, with respect to all
subscription payments received from subscribers who elect to settle the Shares
included in the Units purchased by such subscribers through delivery via The
Depository Trust Company’s Deposit/Withdrawal at Custodian system (“DWAC”) pursuant to its instructions (“DWAC Subscribers”), the Company and the
Placement Agent propose to establish an escrow account with the Escrow Agent in
the name of the Company at 4 New York Plaza, New York, New York 10004; and

 

WHEREAS, upon execution of
the Subscription Agreements by the Company, the Escrow Agent is willing to
receive and disburse the proceeds from the offering of the Shares and Warrants
purchased by the DWAC Subscribers in accordance herewith.

 

NOW, THEREFORE, in
consideration of the mutual agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.                                       Deposit of
Escrowed Funds.  The
Placement Agent is hereby directed by the Company to instruct the DWAC
Subscribers to wire to or deposit with the Escrow Agent funds of such subscribers
delivered in payment for their respective Shares and Warrants (the “Escrowed Funds”).  Upon receipt of Escrowed Funds from such
subscribers, the Escrow Agent 

 

 

shall credit such Escrowed
Funds to a non-interest bearing account held by the Escrow Agent.  The wire instructions for such subscriber
funds are set forth in the notice provision for the Escrow Agent in Section 8
to this Agreement and in Section 3.3 of Annex I to the Subscription
Agreements.

 

2.                                       Acceptance.  Upon receipt of the Escrowed Funds, the
Escrow Agent shall acknowledge such receipt in writing (which may be by means
of electronic mail) to the Company and the Placement Agent and shall hold and
disburse the same pursuant to the terms and conditions of this Agreement.  The Escrow Agent shall have no duty to verify
whether the amounts delivered comport with the requirements of any other
agreement.

 

3.                                       List of DWAC
Subscribers.  The
Placement Agent is hereby directed by the Company to furnish or cause to be
furnished to the Escrow Agent, at the time of each deposit of funds pursuant to
Section 1, a list, substantially in the form of Exhibit A
hereto, containing the name of, the address of record, the number of Shares and
Warrants included in the Units subscribed for by, the subscription amount
delivered to the Escrow Agent on behalf of, and the social security or taxpayer
identification number, if applicable, of each subscriber whose funds are being
deposited.  The Escrow Agent shall notify
the Placement Agent and the Company of any discrepancy between the subscription
amounts set forth on any list delivered pursuant to this Section 3
and the subscription amounts received by the Escrow Agent.  The Escrow Agent is authorized, with the
consent of the Company, not to be unreasonably withheld, to revise such list to
reflect the actual subscription amounts received and the release of any
subscription amounts pursuant to Section 4.  The Company and the Placement Agent shall
furnish the Escrow Agent with their respective W-8 or W-9 forms, as the case
may be.

 

4.                                       Withdrawal of
Subscription Amounts.

 

(a)           If the Escrow Agent shall receive a
notice, substantially in the form of Exhibit B hereto (an “Offering Termination Notice”), from the
Company, the Escrow Agent shall promptly after receipt of such Offering
Termination Notice, send to each subscriber listed on the list held by the
Escrow Agent pursuant to Section 3 whose total subscription amount
shall not have been released pursuant to paragraph (b) or (c) of this
Section 4, a check to the order of such subscriber in the amount of
the remaining subscription amount held by the Escrow Agent as set forth on a
listing provided to the Escrow Agent by the Placement Agent.  The Escrow Agent shall notify the Company and
the Placement Agent of the distribution of such funds to the DWAC
Subscribers.  The Placement Agent shall
ensure that the Escrow Agent has been provided each DWAC Subscriber’s address
of record for the purpose of issuing a check pursuant to this Section 4(a).

 

(b)           In the event that (i) the Units
have been subscribed for and funds in respect thereof shall have been deposited
with the Escrow Agent on or before the Closing Date (as defined below) and (ii) no
Offering Termination Notice shall have been delivered to the Escrow Agent, the
Company and the Placement Agent shall deliver to the Escrow Agent on the
Closing Date a joint notice, substantially in the form of Exhibit C
hereto (a “Closing Notice”),
designating the date on which the Shares and Warrants included in the Units are
to be sold and delivered to the DWAC Subscribers thereof (the “Closing Date”), the proceeds of which are
to be distributed on such Closing Date, and identifying the DWAC Subscribers
and the number of 

 

2

 

Shares to be sold to each
thereof on such Closing Date.  The Escrow
Agent, after receipt of such Closing Notice, shall, on such Closing Date, pay
to the Company, the Placement Agent and its counsel (if applicable), in federal
or other immediately available funds and otherwise in the amounts and in the
manner specified by the Company and the Placement Agent in such Closing Notice,
an aggregate amount equal to the aggregate of the subscription amounts paid by
the DWAC Subscribers identified in such Closing Notice for the Shares and
Warrants included in the Units to be sold on such Closing Date as set forth on Schedule I
to such Closing Notice.

 

(c)           If at any time and from time to time
prior to the release of any DWAC Subscriber’s total subscription amount
pursuant to paragraph (a) or (b) of this Section 4 from
escrow, the Company shall deliver to the Escrow Agent a notice, substantially
in the form of Exhibit D hereto (a “Subscription Termination Notice”), to the effect that any or
all of the subscriptions of such subscriber have been rejected by the Company
(a “Rejected Subscription”), the
Escrow Agent promptly after receipt of such Subscription Termination Notice
and, if such subscriber delivered a check in payment of its Rejected
Subscription, after the clearance of such check, shall send to such subscriber,
in the manner set forth in paragraph (d) of this Section 4,
a check to the order of such subscriber in the amount of such Rejected
Subscription amount as indicated in the Subscription Termination Notice.

 

(d)           For the purposes of this Section 4,
any check that the Escrow Agent shall be required to send to any subscriber or
the Company shall be sent to such subscriber or the Company by first class
mail, postage prepaid, at such subscriber’s address furnished to the Escrow
Agent pursuant to Section 3 or the Company’s address as set forth
in Section 8(b).

 

5.                                       Escrow Agent;
Duties and Liabilities.

 

(a)           It is expressly understood and agreed
by the parties that (i) the duties of the Escrow Agent, as herein
specifically provided, are purely ministerial in nature; (ii) the Escrow
Agent shall not have any duty to deposit or to invest the Escrowed Funds except
as provided herein, (iii) the Escrow Agent shall not be responsible or
liable in any manner whatsoever for, or have any duty to inquire into, the
sufficiency, correctness, genuineness or validity of the notices it receives
hereunder, or the identity, authority or rights of any of the parties; provided, however, that it shall only act
to transfer Escrowed Funds upon instructions of Person(s) Designated to
Give Funds Transfer Instructions and Person(s) Designated to Confirm Funds
Transfer Instructions who are designated on Schedule 1 hereto; (iv) the
Escrow Agent shall have no duties or responsibilities in connection with the
Escrowed Funds, other than those specifically set forth in this Agreement; (v) the
Escrow Agent shall not incur any liability in acting upon any signature,
written notice, request, waiver, consent, receipt, or any other paper or
document reasonably believed by the Escrow Agent to be genuine; (vi) the
Escrow Agent may assume that any person reasonably purporting to have authority
to give notices on behalf of any of the parties in accordance with the
provisions hereof has been duly authorized to do so; (vii) the Escrow
Agent shall incur no liability whatsoever except for such resulting from its
willful misconduct or gross negligence, so long as the Escrow Agent has acted
in good faith in the performance of its duties hereunder; and (viii) upon
the Escrow Agent’s performance of its obligations under Section 4
hereof, the Escrow Agent shall be relieved of all liability, responsibility and
obligation with respect to the Escrowed Funds or arising out of or under this
Agreement.

 

3

 

(b)           The Escrow Agent shall not be under
any obligation to take any legal action in connection with this Agreement or
towards its enforcement or performance, or to appear in, prosecute or defend
any action or legal proceeding.  The
Escrow Agent also shall not be under any obligation to file any return, or pay
or withhold any income or other tax payable with respect to any Escrowed Funds
unless required by law, or the disbursement thereof, any payment of or in
respect of which shall constitute a Loss under Section 6 below, and
the Placement Agent and the Company agree to provide to Escrow Agent such
information and documentation as Escrow Agent may reasonably request in
connection therewith.

 

(c)           In the event of any disagreement
relating to the Escrowed Funds or the disbursement thereof resulting in adverse
claims or demands being made in connection with the Escrowed Funds or in the
event that the Escrow Agent is in doubt as to what action it should take
hereunder, the Escrow Agent shall be entitled to retain the Escrowed Funds, but
only to the extent of the Escrowed Funds in controversy, until the Escrow Agent
shall have received (i) a final non-appealable order of a court of
competent jurisdiction regarding the proper disposition or (ii) a joint
letter of instruction from the Company and the Placement Agent directing
delivery of the Escrowed Funds, in which event the Escrow Agent shall disburse
the Escrowed Funds in accordance with such order or letter.  Any court order shall be accompanied by a
legal opinion by counsel for the presenting party satisfactory to the Escrow
Agent to the effect that the order is final and non-appealable.  The Escrow Agent shall act on such court
order and legal opinion without further question.  If a proceeding for such determination is not
begun and diligently continued, the Escrow Agent may make an ex parte
application, or bring any appropriate action, for leave to deposit the Escrowed
Funds in the Supreme Court of the State of New York, County of New York seeking
such determination or such declaratory relief as the Escrow Agent shall deem
reasonably necessary under the circumstances, and the parties each hereby
irrevocably consent to the entering of an ex
parte order pursuant to all applicable laws, rules and
procedures of the State of New York and such court.  The Escrow Agent shall be reimbursed by the
Company, for all of the Escrow Agent’s reasonable documented costs and expenses
of such action or proceeding, including, without limitation, attorneys’ fees
and disbursements.

 

(d)           The Escrow Agent does not have any
interest in the Escrowed Funds deposited hereunder and is serving as escrow
agent only and having only possession thereof. 
The parties hereto shall provide the Escrow Agent with appropriate
Internal Revenue Service Forms W-9 for tax identification number certification,
or non-resident alien certifications.  Section 5(c) and
this Section 5(d) shall survive any termination of this
Agreement or the resignation of the Escrow Agent in accordance with Section 5(h) below.

 

(e)           None of the provisions of this
Agreement shall require the Escrow Agent to expend or risk its own funds or
otherwise to incur any liability, financial or otherwise, in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers
if it shall have reasonable grounds for believing that repayment of such funds
or indemnity satisfactory to it against such risk or liability is not assured
to it.

 

(f)            The Escrow Agent may consult with
counsel and the advice or any opinion of counsel shall be full and complete
authorization and protection in respect of any action taken or omitted by it
hereunder in good faith and in accordance with such advice or 

 

4

 

opinion of counsel.  The Escrow Agent shall not be liable for any
action taken or omitted by it in accordance with the advice or opinion of such
counsel.

 

(g)           The Escrow Agent shall have no
obligation to, and shall not, invest any cash held by the Escrow Agent.

 

(h)           The Escrow Agent may at any time
resign by giving ten (10) days written notice of resignation to the
Company and the Placement Agent.  Upon
receiving such notice of resignation, the Company and the Placement Agent shall
promptly appoint a successor and, upon the acceptance by the successor of such
appointment, release the resigning Escrow Agent from its obligations hereunder
by written instrument, a copy of which instrument shall be delivered to the
resigning Escrow Agent and the successor. 
If no successor shall have been so appointed and have accepted
appointment within forty-five (45) days after the giving of such notice of
resignation, the resigning Escrow Agent may petition any court of competent
jurisdiction for the appointment of a successor.

 

(i)            Any 
corporation or association into which the Escrow Agent may be merged or
converted or with which it may be consolidated, or any corporation, association
or other similar entity resulting from any merger, conversion or consolidation
to which the Escrow Agent shall be a party, or any partnership, corporation or
other similar entity succeeding to the business of the Escrow Agent shall be
the successor of the Escrow Agent hereunder without the execution or filing of
any paper with any party hereto or any further act on the part of any of the
parties hereto except where an instrument of transfer or assignment is required
by law to effect such succession, anything herein to the contrary
notwithstanding.

 

(j)            No printed or other matter in any
language (including, without limitation, the Registration Statement, notices,
reports and promotional material) which mentions the Escrow Agent’s name or the
rights, powers, or duties of the Escrow Agent shall be issued by the other
parties hereto or on such parties’ behalf unless the Escrow Agent shall first
have given its specific written consent thereto. The Escrow Agent hereby
consents to the use of its name and the reference to the escrow arrangement in
the Registration Statement.

 

6.                                       Indemnification
of Escrow Agent.  The Company
(the “Indemnifying Party”) hereby
agrees to indemnify and hold the Escrow Agent and its affiliates and their
respective directors, officers, agents and employees (the “Indemnitees”) harmless from and against any
and all liabilities, obligations, damages, losses, claims, encumbrances, costs
or expenses (including reasonable attorneys’ fees and expenses) (any or all of
the foregoing herein referred to as a “Loss”)
arising hereunder or under or with respect to the Escrowed Funds, unless it is
finally determined by a court of competent jurisdiction that such Losses
resulted directly from the willful misconduct or gross negligence of the
Indemnitee.  Anything in this Agreement
to the contrary notwithstanding, in no event shall the Escrow Agent  be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Escrow Agent has been advised of the likelihood
of such loss or damage and regardless of the form of action.  The provisions of this Section 6
shall survive the termination of this Agreement and the resignation or removal
of the Escrow Agent for any reason.

 

7.                                       Escrow Agent
Fee.  In consideration of the
services rendered by the Escrow 

 

5

 

Agent
hereunder, the Escrow Agent shall receive a fee from the Company in the amount
of Two Thousand Five Hundred Dollars ($2,500), which shall be paid by the
Company within two (2) business days following the execution of this
Agreement or as otherwise agreed to by the Company and the Escrow Agent.

 

8.                                      Notices.  (a) All
communications hereunder shall be in writing and shall be deemed to be duly
given and received:

 

(i)                                   upon delivery if delivered personally or upon confirmed transmittal if by
facsimile;

 

(ii)                               on the next Business Day (as hereinafter defined) if sent by overnight
courier; or

 

(iii)                            four (4) Business Days after mailing if mailed by prepaid registered
mail, return receipt  requested, to the
appropriate notice address set forth in this Section 8 or at such
other address as any party hereto may have furnished to the other parties in
writing by registered mail, return receipt requested.

 

Notwithstanding
the above, in the case of communications delivered to the Escrow Agent pursuant
to (ii) and (iii) of this Section 8, such communications
shall be deemed to have been given on the date received by the Escrow
Agent.  In the event that the Escrow
Agent, in its sole discretion, shall determine that an emergency exists, the
Escrow Agent may use such other means of communication as the Escrow Agent
deems appropriate.  “Business Day” shall
mean any day other than a Saturday, Sunday or any other day on which the Escrow
Agent located at the notice address set forth herein is authorized or required
by law or executive order to remain closed.

 

(b)                                 Any notice or
other communications provided hereunder pursuant to subsection (a) above
shall be addressed as follows:

 

If to the Escrow Agent, to:

 

JPMorgan
Chase Bank, N.A.

4 New York Plaza, 21st Floor

New York, N.Y. 10004

Attention: Audrey Mohan

Phone: (212) 623-5078

Fax: (212) 623-6168

 

with
wire transfers to:

 

JPMorgan
Chase Bank, N.A.

ABA # 021000021

Account Name: Needham/ Celsion Corporation 

Account Number: 806031183

Attention: Audrey Mohan 

Phone: (212) 623-5078

 

6

 

If to Company, to:

 

Celsion Corporation

0220-L Old Columbia Road

Columbia, Maryland 21046

3 West Main Street, Suite 201

Attention:  Sean Moran, Sr. Vice President and Chief
Financial Officer

Facsimile:  (410) 290-5394

 

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

 

Seyfarth
Shaw LLP

620
Eighth Avenue

New
York, New York 10018

Attention:  Blake Hornick, Esq.

Facsimile:  (212) 218-5526

 

(c)                                If to Needham,
to:

 

Needham &
Company, LLC 

445 Park Avenue

New York, NY 10022

Attention:  Peter Bennett

Facsimile:  (212) 751-1450

 

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

 

Proskauer
Rose LLP

1585 Broadway

New York, NY 10036

Attention: Stuart Bressman, Esq.

Facsimile:  (212) 969-2900

 

or to such other address or
account information as hereafter shall be designated in writing by the
applicable party.

 

9.                                       Security
Procedures.   In the event funds transfer instructions are given (other than in writing
at the time of execution of this Agreement, as indicated herein), whether in
writing, by telecopier or otherwise, the Escrow Agent is authorized to seek
confirmation of such instructions by telephone call-back to the person or
persons designated on Schedule 1 hereto, and the Escrow Agent may
rely upon the confirmation of anyone purporting to be the person or persons so
designated.  The persons and telephone
numbers for call-backs may be changed only in a writing actually received and
acknowledged by the Escrow Agent.  If the
Escrow Agent is unable to contact any of the authorized representatives
identified on Schedule 1 hereto, the Escrow Agent is hereby
authorized to seek confirmation of such instructions by telephone call-back to
any one or more of the Company’s executive officers (“Executive Officers”), which shall include
the titles of President and Chief Executive Officer; Vice President
- Finance and Chief Financial Officer; and Vice President and General Counsel as the Escrow Agent may select.  Such 

 

7

 

Executive
Officer shall deliver to the Escrow Agent a fully executed Incumbency
Certificate, and the Escrow Agent may rely upon the confirmation of anyone
purporting to be any such officer.  The
Escrow Agent and the beneficiary’s bank in any funds transfer may rely solely
upon any account numbers or similar identifying numbers provided by the Company
or the Placement Agent to identify (i) the
beneficiary, (ii) the beneficiary’s bank or (iii) an intermediary
bank.  The Escrow Agent may apply any of
the Escrowed Funds for any payment order it executes using any such identifying
number, even when its use may result in a person other than the beneficiary
being paid, or the transfer of funds to a bank other than the beneficiary’s
bank or an intermediary bank designated. 
The parties to this Agreement acknowledge that these security procedures
are commercially reasonable.

 

10.                                 Account Opening
Information/TINs.   IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

 

(a)           For
accounts opened in the United States: to help the government fight the funding
of terrorism and money laundering activities, Federal law requires all
financial institutions to obtain, verify and record information that identifies
each person who opens an account.  When
an account is opened, the Escrow Agent will ask for information that will allow
it to identify relevant parties.

 

(b)           For
non-United States accounts:  to help in
the fight against the funding of terrorism and money laundering activities the
Escrow Agent is required, along with all financial institutions, to obtain,
verify and record information that identifies each person who opens an
account.  When an account is opened, the
Escrow Agent will ask for information that will allow it to identify relevant
parties.

 

11.                                 Entire
Agreement.   This
Agreement and any exhibits and schedules hereto constitute the entire agreement
between the parties hereto pertaining to the subject matters hereof, and
supersede all negotiations, preliminary agreements and all prior and
contemporaneous discussions and understandings of the parties in connection
with the subject matters hereof. Any exhibits and schedules hereto are hereby
incorporated into and made a part of this Agreement.

 

12.                                 Amendments.   No amendment, waiver,
change or modification of any of the terms, provisions or conditions of this
Agreement shall be effective unless made in writing and signed or initialed by
all parties or by their duly authorized agents. 
Waiver of any provision of this Agreement shall not be deemed a waiver
of future compliance therewith and such provision shall remain in full force
and effect.

 

13.                                 Severability.   In the event any
provision of this Agreement is held invalid, illegal or unenforceable, in whole
or in part, the remaining provisions of this Agreement shall not be affected
thereby and shall continue to be valid and enforceable.

 

14.                                 Governing Law.   This Agreement shall be
governed and construed in accordance with the laws of the State of New York
without regard to any applicable principles of conflicts of law.

 

8

 

15.                                 Submission to
Jurisdiction.   ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT
IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR
THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, THE PARTIES HERETO HEREBY ACCEPT FOR THEMSELVES AND IN RESPECT OF
THEIR RESPECTIVE PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF
THE AFORESAID COURTS AND APPELLATE COURTS FROM ANY THEREOF.  THE PARTIES HERETO HEREBY IRREVOCABLY CONSENT
TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY ACTION
OR PROCEEDING BY THE MAILING OF COPIES THEREOF TO SUCH PARTY BY REGISTERED OR
CERTIFIED MAIL, POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO SUCH PARTY AT ITS
ADDRESS SPECIFIED HEREIN.  THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING, WITHOUT LIMITATION,
ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF
ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

 

16.                                 Headings and
Captions.   The
titles or captions of paragraphs in this Agreement are provided for convenience
of reference only, and shall not be considered a part hereof for purposes of
interpreting or applying this Agreement, and such titles or captions do not
define, limit, extend, explain or describe the scope or extent of this
Agreement or any of its terms or conditions.

 

17.                                 Gender and
Number.   Words
and phrases herein shall be construed as in the singular or plural number and
as masculine, feminine or neuter gender, according to the context.

 

18.                                 Counterparts.   This Agreement may be
executed in any number of counterparts and such signature pages may be
electronically delivered (including by facsimile), each of which shall be
deemed to be an original, but all of which together shall constitute one and
the same instrument, and in making proof hereof, it shall not be necessary to produce
or account for more than one such counterpart.

 

19.                                 Binding Effect
on Successors and Assigns.   This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective legal representatives, heirs, successors and
assigns, and the subscribers of the Shares and Warrants.  Nothing in this Agreement, express or
implied, is intended to confer upon any party, other than the parties hereto
(and their respective legal representatives, heirs, successors and assigns), any
rights, remedies, obligations or liabilities.

 

20.                                 Termination.   Upon delivery of the
Escrowed Funds to the Company, or the DWAC Subscribers pursuant to Section 4
hereof, by the Escrow Agent, this Agreement shall terminate, subject to the
provisions of Section 6 hereof.

 

9

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

 

	
  ESCROW AGENT:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
  JPMORGAN
  CHASE BANK, N.A.

  	
   

  	
  CELSION
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael
  Kuzmicz

  	
   

  	
  By:

  	
  /s/
  Sean Moran

  
	
   

  	
  Name: Michael
  Kuzmicz

  	
   

  	
   

  	
  Name:
  Sean Moran

  
	
   

  	
  Title: Vice
  President

  	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  PLACEMENT AGENT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NEEDHAM &
  COMPANY, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Charles
  V. Baltic III

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Charles
  V. Baltic

  	
   

  	
   

  	
   

  
	
   

  	
  Managing
  Director

  	
   

  	
   

  	
   

  

 

[Escrow
Agreement — Signature Page]

 

10

 

Schedule 1

Telephone Number(s) and signature(s) for 

Persons Designated to give
Funds Transfer Instructions

 

If to
Company:

 

	
   

  	
  Name

  	
   

  	
  Telephone
  Number

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

If to the Placement
Agent:

 

	
   

  	
  Name

  	
   

  	
  Telephone
  Number

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Telephone
Number(s) for Call-Backs and

Persons Designated to Confirm Funds Transfer Instructions

 

If to
Company:

 

	
   

  	
  Name

  	
   

  	
  Telephone
  Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

If to the Placement
Agent:

 

	
   

  	
  Name

  	
   

  	
  Telephone
  Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Telephone call backs
shall be made to both the Company and the Placement Agent if joint instructions
are required pursuant to the agreement. 
All funds transfer instructions must include the signature of the person(s) authorizing
said funds and must not be the same person authorizing said transfer.

 

 

EXHIBIT A

DWAC SUBSCRIBERS

 

[Intentionally Omitted]

 

A-1

 

EXHIBIT B

FORM OF OFFERING TERMINATION NOTICE

 

[                  
    ], 2009

 

JPMorgan Chase Bank, N.A. 

4 New York Plaza

21st Floor

New York, NY 10004

Attention:  Audrey Mohan

 

Ladies and Gentlemen:

 

Pursuant to Section 4(a) of
the Escrow Agreement, dated as of September [  ], 2009 (the “Escrow Agreement”), among Celsion Corporation, a Delaware
corporation (the “Company”),
Needham & Company, LLC (“Needham”)
and you, the Company hereby notifies you of the termination of the offering of
the Units (as defined in the Escrow Agreement) and directs you to make payments
to DWAC Subscribers as provided for in Section 4(a) of the Escrow
Agreement.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CELSION
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-1

 

EXHIBIT C

 

FORM OF CLOSING NOTICE

 

September [  ], 2009

 

JPMorgan Chase Bank, N.A. 

4 New York Plaza

21st Floor

New York, NY 10004

Attention:  Audrey Mohan

 

Ladies and Gentlemen:

 

Pursuant to Section 4(b) of
the Escrow Agreement, dated as of September [   ], 2009
(the “Escrow Agreement”), among
Celsion Corporation, a Delaware corporation (the “Company”), Needham & Company, LLC (the “Placement Agent”) and you, the Company
hereby certifies that it has received subscriptions for the Units (as defined
in the Escrow Agreement) and the Company will, subject to and in accordance
with the terms of the Placement Agent Agreement and the Subscription
Agreements, as defined in the Escrow Agreement, sell and deliver the Shares and
Warrants (as those terms are defined in the Escrow Agreement) to the DWAC
Subscribers thereof at a closing to be held on September [   ],
2009 (the “Closing Date”).  The names of the DWAC Subscribers concerned,
the number of Shares and Warrants subscribed for by each of such subscribers
and the related subscription amounts are set forth on Schedule I
annexed hereto.

 

Please accept these
instructions as standing instructions for the closing to be held on the Closing
Date.  The parties hereto certify that
they do not wish to have a call back regarding these instructions.  The parties hereto further certify that their
instructions may be electronically transmitted to you by facsimile.

 

We hereby request that the
aggregate subscription amount be paid to the Placement Agent, its counsel and
us as follows:

 

	
  1.

  	
  To
  the Company,
  $[                  ]
  as follows:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Bank
  Name:

  	
   

  	
  [                  ]

  
	
   

  	
  Address:

  	
   

  	
  [                  ]

  
	
   

  	
  A/C
  Name:

  	
   

  	
  Celsion
  Corporation

  
	
   

  	
  A/C #:

  	
   

  	
  [                  ]

  
	
   

  	
  ABA #:

  	
   

  	
  [                  ]

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  To
  Needham,
  $[                    ]
  as follows:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Bank:

  	
  [                ]

  
					

 

C-1

 

	
   

  	
  ABA
  #:

  	
  [                ]

  
	
   

  	
  A/C#:

  	
  [                ]

  
	
   

  	
  A/C
  Name:

  	
  [                ]

  
	
   

  	
   

  	
   

  
	
  3.

  	
  To
  Proskauer Rose LLP,
  $[                ],
  which represents the Placement Agent’s legal fees, as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
  Bank:

  	
  [                ]

  
	
   

  	
  ABA #:

  	
  [                ]

  
	
   

  	
  ACCT.#:

  	
  [                ]

  
	
   

  	
  Ref:

  	
  [                ]

  

 

C-2

 

These instructions may be
executed in any number of counterparts, each of which shall be deemed to be an
original, and all of which together shall constitute one and the same
instrument.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CELSION
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEEDHAM &
  COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Managing Director

  
				

 

C-3

 

SCHEDULE I

to

CLOSING NOTICE

 

[Intentionally Omitted]

 

C-4

 

EXHIBIT D

 

FORM OF SUBSCRIPTION
TERMINATION NOTICE

 

,
2009

 

JPMorgan Chase Bank, N.A. 

4 New York Plaza

21st Floor

New York, NY 10004

Attention:  Audrey Mohan

 

Ladies and Gentlemen:

 

Pursuant to Section 4(c) of
the Escrow Agreement, dated as of September [   ], 2009
(the “Escrow Agreement”), among
Celsion Corporation, a Delaware corporation (the “Company”), Needham & Company, LLC (the “Placement Agent”) and you, the Company
hereby notifies you that the following subscription(s) have been rejected:

 

	
  Name of

  DWAC Subscriber

  	
   

  	
  Number of

  Subscribed

  Shares Rejected

  	
   

  	
  Number of

  Subscribed

  Warrants Rejected

  	
   

  	
  Dollar
  Amount of

  Rejected

  Subscription

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CELSION
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

D-1Exhibit 10.19

 

ASSIGNMENT
AND AMENDMENT AGREEMENT

 

THIS ASSIGNMENT AND AMENDMENT AGREEMENT (this “Assignment
Agreement”) is entered into as of the 20th day of May,
2009, by and between Falcon Asset Securitization Company LLC (“Assignor”), and JS Siloed Trust (“Assignee”  or the “Trust”).

 

PRELIMINARY
STATEMENTS

 

A.            This Assignment Agreement is being
executed and delivered in accordance with Section 12.1(b) of that
certain Third Amended and Restated Receivables Purchase Agreement dated as of April 15,
2009 by and among Ferrellgas Receivables, LLC, Ferrellgas, L.P., as Servicer,
Falcon Asset Securitization Company LLC, Fifth Third Bank, individually and as
a Co-Agent, JPMorgan Chase Bank, N.A., as a Co-Agent and as Agent, and the
Financial Institutions party thereto (as amended, modified or restated from
time to time, the “Purchase Agreement”).  Capitalized terms used and not otherwise
defined herein are used with the meanings set forth or incorporated by
reference in the Purchase Agreement.

 

B.            Assignor is a Conduit party to the
Purchase Agreement, and Assignee wishes to become a Conduit thereunder; and

 

C.            Assignor is selling and assigning to
Assignee all of Assignor’s rights and obligations under the Purchase Agreement
and the Transaction Documents, including, without limitation, the Capital of
Assignor’s Purchaser Interests as set forth herein.

 

AGREEMENT

 

The
parties hereto hereby agree as follows:

 

1.             The
sale, transfer and assignment effected by this Assignment Agreement shall
become effective on May 20, 2009 (the “Effective Date”).  From and after the Effective Date, Assignee
shall be a Purchaser party to the Purchase Agreement for all purposes thereof
as if Assignee were an original party thereto and Assignee will be bound by all
of the terms and provisions contained therein,.

 

2.             At
or before 12:00 noon (Chicago time) on the Effective Date, Assignee shall pay
to Assignor, in immediately available funds, an amount equal to the sum of (i) 
$                                  
(such amount, being hereinafter referred to as the “Assignee’s
Capital”); and (ii) any other costs and expenses agreed
between Assignor and Assignee (the “Assignee’s Acquisition
Cost”); whereupon, Assignor shall be deemed to have sold,
transferred and assigned to Assignee, without recourse, representation or
warranty (except as provided in paragraph 6 below), and Assignee shall be
deemed to have hereby irrevocably taken, received and assumed from Assignor,
all of Assignor’s Purchaser Interests and all related rights and obligations
under the Purchase Agreement and the Transaction Documents.

 

1

 

3.             From
and after the Effective Date, for so long as the Trust remains a party to the
Purchase Agreement, the Purchase Agreement is amended as follows:

 

(a)           All references in the Purchase
Agreement to “Falcon Asset Securitization Company LLC,” “Falcon”, the “Falcon Group”
and the “Falcon Group Agent” shall be deemed to
be references to “JS Siloed Trust,” the “Trust,” the  “JS Group” and “JS Group Agent,”
respectively.

 

(b)           All references in the Purchase
Agreement to “Commercial Paper” shall be
deemed to be references to commercial paper notes issued by Jupiter
Securitization Company LLC (“Jupiter”),
and all references to any “Conduit” in
the definitions of “CP Costs” and “Pooled Commercial Paper” found in Exhibit I to the
Purchase Agreement shall be deemed to be references solely to Jupiter.

 

(c)           All references to “Conduit”  in Sections
10.3, 14.5(b)(iii) and 14.6 of the Purchase Agreement and in the definitions
of “Accounting Based Consolidation Event,” “Affected Entity,” “Funding Agreement” and “Funding Source” found in Exhibit I to the Purchase
Agreement shall be deemed to include both the Trust and Jupiter and not Falcon.

 

4.             Concurrently
with the execution and delivery hereof, Assignor shall provide to Assignee
copies of all documents requested by Assignee which were delivered to Assignor
pursuant to the Purchase Agreement.

 

5.             Each
of Assignor and Assignee to this Assignment Agreement agrees that at any time
and from time to time upon the written request of any other party, it shall
execute and deliver such further documents and do such further acts and things
as such other party may reasonably request in order to effect the purposes of
this Assignment Agreement.

 

6.             By
executing and delivering this Assignment Agreement, Assignor and Assignee
confirm to and agree with each other, the JS Group Agent and the Financial
Institutions as follows:  (a) other
than the representation and warranty that it has not created any Adverse Claim
upon any interest being transferred hereunder, Assignor makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made by any other Person in or in connection with
the Purchase Agreement or the Transaction Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Purchase
Agreement or any other instrument or document furnished pursuant thereto or the
perfection, priority, condition, value or sufficiency of any collateral; (b) Assignor
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Seller, any Obligor or any Affiliate of the
Seller or the performance or observance by the Seller, any Obligor or any
Affiliate of the Seller of any of their respective obligations under the
Receivables or the Transaction Documents or any other instrument or document
furnished pursuant thereto or in connection therewith; (c) Assignee
confirms that it has received a copy of the Purchase Agreement and copies of
such other Transaction Documents, and other documents and information as it has
requested and deemed appropriate to make its own credit analysis and decision
to enter into this Assignment Agreement; (d) Assignee shall, independently
and without reliance upon any Agent, any other Purchaser or any Seller Party
and 

 

2

 

based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Purchase Agreement and the Transaction
Documents; (e) Assignee appoints and authorizes the Agent and the JS Group
Agent to take such action as agent on its behalf and to exercise such powers
under the Transaction Documents as are delegated to the Agent and the JS Group
Agent, respectively, by the terms thereof, together with such powers as are
reasonably incidental thereto; and (f) Assignee agrees that it shall
perform in accordance with their terms all of the obligations which, by the
terms of the Purchase Agreement and the other Transaction Documents, are
required to be performed by it as a Purchaser.

 

7.             Each
of Assignor and Assignee represents and warrants to and agrees with the Falcon
Group Agent that it is aware of and shall comply with the provisions of the
Purchase Agreement, including, without limitation, Sections 14.5 and 14.6
thereof.

 

8.             THIS
ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

 

9.             Assignee
hereby covenants and agrees that, prior to the date which is one year and one
day after the payment in full of all senior indebtedness for borrowed money of
Jupiter, it shall not institute against, or join any other Person in
instituting against, Jupiter any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other similar proceeding under the
laws of the United States or any state of the United States.

 

[Signature Page Follows]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment
Agreement to be executed by their respective duly authorized officers of the
date hereof.

 

	
   

  	
  FALCON ASSET SECURITIZATION
  COMPANY LLC,

  
	
   

  	
  AS ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  BY:  JPMORGAN
  CHASE BANK, N.A., AS ATTORNEY-IN-FACT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laura Chittick

  
	
   

  	
  Name:

  	
  Laura Chittick

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JS SILOED TRUST, AS ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  BY:  JPMORGAN
  CHASE BANK, N.A., AS ADMINISTRATIVE TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laura Chittick

  
	
   

  	
  Name:

  	
  Laura Chittick

  
	
   

  	
  Title:

  	
  Vice President

  

 

Acknowledged
and agreed as of the date first above written:

 

	
  FERRELLGAS RECEIVABLES,
  LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ J. Ryan VanWinkle

  	
   

  
	
  Name:

  	
  J. Ryan VanWinkle

  	
   

  
	
  Title:

  	
  Senior Vice President
  and Chief Financial Officer

  	
   

  

 

4

 

	
  JUPITER SECURITIZATION COMPANY, LLC

  	
   

  
	
   

  	
   

  
	
  BY:  JPMORGAN
  CHASE BANK, N.A., AS ATTORNEY-IN-FACT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Laura Chittick

  	
   

  
	
  Name:

  	
  Laura Chittick

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  JPMORGAN CHASE
  BANK, N.A.,

  	
   

  
	
  Individually
  as a Financial Institution, as a Co-Agent and as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Laura
  Chittick

  	
   

  
	
  Name:

  	
  Laura Chittick

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
				

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]