Document:

Exhibit 10.7

 

ICAGEN, INC.

 

FORM OF AMENDMENT TO SECURITIES PURCHASE
AGREEMENT

 

This AMENDMENT TO
SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of August 31, 2018, by and
among Icagen, Inc., a Delaware corporation with its executive offices located at 4222 Emperor Blvd., Suite 350, Research Triangle
Park, Durham, North Carolina 27703 (the “Company”), and the investors set forth on the signature pages affixed
hereto (each, an “Investor” and, collectively, the “Investors”). Capitalized terms used herein
without definition shall have the meaning ascribed to such terms in the Securities Purchase Agreement (the “Agreement’”)
with the Company being amended hereby pursuant to which Investor acquired Units, each Unit consisting of shares of the Company’s
Series C Convertible Redeemable Preferred Stock (the “Series C Preferred Shares”) and a seven year warrant (the
“Warrant”) to purchase 28,571 shares of the Company’s common stock, par value $0.001 per share (the “Common
Stock”).

 

WHEREAS, the
Investor is party to the Agreement and for clarification purposes desires to amend the Agreement.

 

WHEREAS, Section
9.10 of the Agreement provides that it may be amended by (i) the Company and (ii) a majority-in-interest of the Investors (based
on the number of Securities purchased under the Agreement.

 

WHEREAS, the
Company and the Investors that represent a majority-in-interest of the Investors are each executing and delivering this amendment
to the Agreement; and

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the mutual terms, conditions and other agreements set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby
agree to the following amendment to the Agreement.

 

1. Section
5.1 shall be amended as follows:

 

(a) to add the words “and
Perceptive Credit Holdings II, LP (“Perceptive”)” after GPB, each time that GPB appears in Section 5.1 and (b)
to add the following sentence to the end of Section 5.1 (a): “The consent right of each of GPB and Perceptive shall terminate
as to each of GPB and Perceptive after the shares underlying the warrant issued to each have been sold or if all of the shares
underlying all warrants issued to both GPB and Perceptive have been registered on a registration statement that has been declared
effective by the SEC.

 

2. Section
5.2 (b) the first sentence of Section 5.2(a) shall be amended to read as follows:

 

“Each time after the date
hereof that the Company proposes for any reason to register any of its Common Stock under the 1933 Act, either for its own account
or for the account of a stockholder or stockholders exercising demand registration rights (other than under a registration statement
on Form S-8 or S-4, the Company’s initial public offering of securities under a registration statement on Form S-1 or S-3
or for the account of GPB or Perceptive) (a “Proposed Registration”), the Company shall promptly give written
notice of such Proposed Registration to all of the holders of Registrable Securities (which notice shall be given not less than
30 days prior to the expected effective date of the Company’s Registration Statement) and shall offer such holders, if permitted
by GPB and Preceptive (such consent right of each of GPB and Perceptive shall terminate as to each of GPB and Perceptive after
the shares underlying the warrant issued to each have been sold or if all of the shares underlying all warrants issued to both
GPB and Perceptive have been registered on a registration statement that has been declared effective by the SEC), the right to
request inclusion of any of such holder’s securities in the Proposed Registration.

 

     

     

    

 

3. Clause
(2) of Section 5.2 (c) is amended to read as follows and a new clause (3) is added:

 

“(2) second, to GPB and
Perceptive until all of the shares of Common Stock underlying the warrants issued to each have been sold or have been registered
on a registration statement that has been declared effective by the SEC) and (3) third to the others requesting registration of
securities of the Company.”

 

4. The
last sentence of Section 9.7 shall be amended to add the following clause (vi) as follows:

 

“the issuance of securities
by the Company under agreements entered into with Perceptive and the revised amended and restated warrant issued to GPB.”

 

5. Applicable Law.
This amendment to the Agreement shall be governed by and construed in accordance with the laws of the State of New York without
giving effect to the conflict of law provisions thereof, and the parties hereto.

 

6. Arbitration.
Each Investor and the Company agree that they shall resolve all disputes, controversies and differences which may arise
between them, out of or in relation to or in connection with this amendment to the Agreement, after discussion in good faith
attempting to reach an amicable solution. Provided that such disputes, controversies and differences remain unsettled after
discussion between the parties, both parties agree that those unsettled matter(s) shall be finally settled by arbitration in
New York, New York in accordance with the latest Rules of the American Arbitration Association. Such arbitration shall be
conducted by three arbitrators appointed as follows: each party will appoint one arbitrator and the appointed arbitrators
shall appoint a third arbitrator. If within thirty (30) days after confirmation of the last appointed arbitrator, such
arbitrators have failed to agree upon a chairman, then the chairman will be appointed by the American Arbitration
Association. The decision of the tribunal shall be final and may not be appealed. The arbitral tribunal may, in its
discretion award fees and costs as part of its award. Judgment on the arbitral award may be entered by any court of competent
jurisdiction, including any court that has jurisdiction over either party or any of their assets. At the request of any
party, the arbitration proceeding shall be conducted in the utmost secrecy subject to a requirement of law to disclose. In
such case, all documents, testimony and records shall be received, heard and maintained by the arbitrators in secrecy,
available for inspection only by any party and by their attorneys and experts who shall agree, in advance and in writing, to
receive all such information in secrecy.

 

7. Further
Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts and shall execute
and deliver all such other agreements, certificates, instruments and documents as any other party hereto reasonably may request
in order to carry out the intent and accomplish the purposes of this amendment to the Agreement and the consummation of the transactions
contemplated hereby.

 

8. Counterparts.
This amendment to the Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original
and all of which taken together shall constitute one and the same instrument. This Agreement may also be executed via facsimile,
which shall be deemed an original.

 

[Signature page follows] 

 

    2

     

    

 

IN WITNESS WHEREOF,
the undersigned Investors and the Company have caused this Amendment to the Agreement to be duly executed as of the date first
above written.

 

	 	ICAGEN, INC.	 
	 	 	 
	 	By:	 	 
	 	Name:	 Richard Cunningham	 
	 	Title:	Chief Executive Officer	 

 

INVESTORS:

 

The Investors executing
the Signature Page in the form attached hereto as Annex A and delivering the same to the Company or its agents shall be
deemed to have executed this amendment to the Agreement and agreed to the terms hereof.

 

 

    3

     

    

 

Annex A

 

Amendment to Securities Purchase Agreement

Investor Counterpart Signature Page

 

The undersigned, desiring to enter into
this Amendment to Securities Purchase Agreement dated as of August 31, 2018 (the “Agreement”), with the undersigned,
Icagen, Inc., a Delaware corporation (the “Company”), in or substantially in the form furnished to the undersigned.

 

	All Investors:	 	Name of Investor:
	 	 	 	 
	Address:  	 	 	If an entity:
	 	 	 	 
	 	 	 	Print Name of Entity:
	 	 	 	 
	Telephone No.: 	 	 	 
	 	 	 	By:
	Facsimile No.: 	 	 	Name:
	 	 	 	Title:
	Email Address: 	 	 	 

 

	 	If an individual:
	 	 	 
	 	Print Name:	 
	 	 	 
	 	Signature:	 
	 	 	 
	 	If joint individuals:
	 	 	 
	 	Print Name:	 
	 	 	 
	 	Signature:	 

 

    4Exhibit 10.8

 

Series
C Preferred Subordination Agreement

 

This Subordination
Agreement (the “Agreement”) is made as of August     , 2018, by and between Perceptive
Credit Holdings II, LP, a Delaware limited partnership, in its capacity as Administrative Agent (as hereinafter defined)
for the Lenders (as hereinafter defined), Icagen, Inc., a Delaware corporation (“Parent”),
and the other parties signatory hereto (each, a “Holder” and collectively the “Holders”).

 

Recitals

 

A. Reference
is made to that certain Credit Agreement and Guaranty (such agreement as it may be amended from time to time, the “Parent
Credit Agreement”), dated as of August     , 2018, among Parent, as borrower, the subsidiaries of Parent from time to time
party thereto (collectively with Parent, the “Parent Loan Parties”), the lenders from time to time party thereto
(collectively, the “Parent Agreement Lenders”), and Perceptive Credit
Holdings II, LP, in its capacity as administrative agent for the Parent Agreement Lenders (the “Parent Agreement
Administrative Agent”);

 

B. Reference
is further made to that certain Credit Agreement and Guaranty (such agreement as it may be amended from time to time, the “Icagen-T
Credit Agreement” and collectively with the Parent Credit Agreement, the “Credit Agreements”), dated
as of August     , 2018, among Icagen-T, Inc., a Delaware corporation (“Icagen-T”),
as borrower, Parent and the subsidiaries of Parent from time to time party thereto (collectively with Icagen-T, the “Icagen-T
Loan Parties” and the Icagen-T Loan Parties collectively with the Parent Loan Parties, the “Loan Parties”),
the lenders from time to time party thereto (collectively, the “Icagen-T Agreement Lenders”, and the Icagen-T
Agreement Lenders collectively with the Parent Agreement Lenders, the “Lenders”), and Perceptive
Credit Holdings II, LP, in its capacity as administrative agent for the Icagen-T Agreement Lenders (the “Icagen-T
Agreement Administrative Agent”, and in its capacity as both Parent Agreement Administrative Agent and Icagen-T Agreement
Administrative Agent, the “Administrative Agent”);

 

C. Parent,
under the Parent Credit Agreement and Icagen-T, under the Icagen-T Credit Agreement have each requested and/or obtained certain
loans or other credit accommodations from Lenders which are or may be from time to time secured by assets and property of the Loan
Parties.

 

D. Holders
have acquired from Parent shares of Parent’s Series C Convertible Redeemable Preferred Stock (“Preferred Stock”).

 

E. In
order to induce Lenders to extend credit to Parent and Icagen-T and, at any time or from time to time, at Lenders’ option,
to make such further loans, extensions of credit, or other accommodations to or for the account of Parent and/or Icagen-T, or to
purchase or extend credit upon any instrument or writing in respect of which Parent and/or Icagen-T may be liable in any capacity,
or to grant such renewals or extension of any such loan, extension of credit, purchase, or other accommodation as Lenders may deem
advisable, each Holder is willing to subordinate all of its rights to cash payments of the Accruing Dividends (as such term is
defined in that certain Certificate of Designation of Powers, Preferences and Rights of Series C Convertible Redeemable Preferred
Stock, dated as of April 3, 2018) to all of Parent’s and Icagen-T’s indebtedness and obligations to the Administrative
Agent and the Lenders.

 

     

     

    

 

Now, Therefore,
The Parties Agree As Follows:

 

1. Each
Holder hereby acknowledges and agrees that until such time as the Obligations (as such term is defined in each of the Credit Agreements,
collectively) are indefeasibly paid in full (other than Warrant Obligations, as defined in each of the Credit Agreements), Parent
is prohibited from paying to the Holders any Accruing Dividends.

 

2. Parent
hereby acknowledges and agrees that until such time as the Obligations are indefeasibly paid in full (other than Warrant Obligations),
it shall not declare, pay or set aside any dividends on shares of any class or series of capital stock of Parent, including, without
limitation, on the Preferred Stock (other than dividends on shares of common stock payable solely in shares of common stock).

 

3. Until
such time as the Obligations are indefeasibly paid in full (other than Warrant Obligations), each Holder shall hold in trust for
the Administrative Agent and the Lenders and promptly deliver to the Administrative Agent in the form received (except for endorsement
or assignment by such Holder where required by the Administrative Agent), for application to the Obligations, any payment, distribution,
security or proceeds received by Holder with respect to the Accruing Dividends.

 

4. Parent
shall not amend the terms of the Preferred Stock in any manner that is materially adverse to the Administrative Agent or the Lenders
without the prior written consent of the Administrative Agent. To the extent that Parent issues any additional Preferred Stock
to a holder who is not a Holder, then Parent shall cause such holder to agree to the terms of this Agreement by executing and delivering
to the Administrative Agent a joinder to this Agreement.

 

5. This
Agreement constitutes the legal, valid and binding obligation of Parent and each Holder, enforceable against Parent and such Holder
in accordance with its terms.

 

6. This
Agreement shall bind any successors or assignees of each Holder and shall benefit any successors or assigns of the Administrative
Agent and the Lenders. This Agreement shall remain effective until terminated in writing by the Administrative Agent. This Agreement
is solely for the benefit of Holders and the Administrative Agent and the Lenders and not for the benefit of Parent or any other
party. Each Holder further agrees that if Parent and/or Icagen-T is in the process of refinancing any portion of the Credit Agreements
with a new lender, and if the Administrative Agent makes a request of such Holder, such Holder shall agree to enter into a new
subordination agreement with the new lender on substantially the terms and conditions of this Agreement.

 

7. Each
Holder hereby agrees to execute such documents and/or take such further action as the Administrative Agent may at any time or times
reasonably request in order to carry out the provisions and intent of this Agreement, including, without limitation, ratifications
and confirmations of this Agreement from time to time hereafter, as and when requested by the Administrative Agent.

 

    	 	2	 

     

    

 

8. This
Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to conflicts
of laws principles. Each HOLDER, PARENT and the ADMINISTRATIVE Agent agree that any suit,
action or proceeding with respect to this Agreement or any judgment entered by any court in respect thereof SHALL be brought in
the Supreme Court of the State of New York sitting in New York County or in the United States District Court for the Southern District
of New York and irrevocably submits to the NONexclusive jurisdiction of each such court for the purpose of any such suit, action,
proceeding or judgment. EACH HOLDER, PARENT AND ADMINISTRATIVE AGENT WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN. 

 

9. This
Agreement represents the entire agreement with respect to the subject matter hereof, and supersedes all prior negotiations, agreements
and commitments. No Holder is relying on any representations by the Administrative Agent, the Lenders or Parent in entering into
this Agreement, and each Holder has kept and will continue to keep itself fully apprised of the financial and other condition of
Parent. This Agreement may be amended only by written instrument signed by the Holders, Parent and the Administrative Agent.

 

10. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for
all purposes.

 

[The rest of this page
is intentionally left blank]

 

    	 	3	 

     

    

 

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

 

	 	Administrative Agent:
	 	 
	 	Perceptive Credit Holdings II, LP
	 	 	 	 
	 	By:	Perceptive Credit Opportunities GP, LLC, its general partner
	 	 	 	 
	 	By:	 
	 	 	Name: 	          
	 	 	Title:	 
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

[Signature
Page to Series C Preferred Subordination Agreement]

 

     

     

    

 

	 	Holder:
	 	 	 
	 	By:	
	 	 	Timothy
    Tyson

 

[Signature
Page to Series C Preferred Subordination Agreement]

 

     

     

    

 

	 	Holder:
	 	 	 
	 	By:	
	 	 	Clive
                                         Kabatznik

 

[Signature
Page to Series C Preferred Subordination Agreement]

 

     

     

    

 

	 	Parent:
	 	 
	 	Icagen,
                                         Inc.

	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

[Signature
Page to Series C Preferred Subordination Agreement]

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