Document:

Exhibit 10.3

 

ALLONGE TO PROMISSORY NOTE

 

This
Allonge to Promissory Note is made as of January 1, 2009, by and between Celldex Therapeutics, Inc.,
successor in interest to Avant Immunotherapeutics, Inc., a Delaware
corporation, (“Borrower”) and MASSACHUSETTS
DEVELOPMENT FINANCE AGENCY, a body corporate and politic created
under Massachusetts General Laws chapter 23G, (“Lender”).

 

Recitals

 

A.                                   Avant
Immunotherapeutics, Inc. made a Promissory Note (the “Note”) payable to
Lender dated December 22, 2003 in the original principal amount of
$1,104,000.00 as reduced in November, 2004 to $904,000.00 (the “Loan”), secured
by a Security Agreement: Equipment also dated December 22,2003 and all
other instruments evidencing, securing or given in relation to the loan, (the “Loan
Documents”).

 

B.                                     Lender and
Borrower have agreed to amend the Note to reflect the name change of Avant Immunotherapeutics, Inc.
to Celldex Therapeutics, Inc.

 

C.                                     Now, therefore,
in consideration of the making of the Loan and the agreement to amend the terms
thereof and other valuable consideration, Borrower and Lender hereby agree that
the Note is amended as follows:

 

The Maker of the Note, as
defined on page 1 of the Note shall be Celldex Therapeutics, Inc.

 

This Allonge shall be
affixed to the Note and together they shall constitute one instrument.

 

All terms, provisions,
agreements, and covenants in the Note, as amended hereby, are ratified and
affirmed by Borrower and the guarantors of the Loan as evidenced by their
signatures hereon.

 

All representations and
warranties contained in the Note and Loan Documents remain true as of the date
hereof.

 

Borrower and Lender agree
that the Loan Documents are hereby amended so that all references therein to
the Note shall mean the Note as amended hereby.

 

Borrower acknowledges that
its obligations under the Note and Loan Documents, as amended hereby, remain in
full force and effect. This amendment does not in any manner release the
Borrower from its obligations under the Note or the Loan Documents nor does this
amendment in any manner cancel, terminate, or impair the status or priority of
any of the terms of the Note or the Loan Documents or the liens or security
interests granted to the Lender thereunder.

 

 

Executed as a sealed
instrument as of the date first set forth above.

 

 

	
  WITNESSES:

  	
   

  	
  CELLDEX THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ Avery W. Catlin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Avery W. Catlin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  SVP and CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MASSACHUSETTS DEVELOPMENT
  FINANCE AGENCY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Lisa A. Aylwn

  	
   

  	
  By:

  	
  /s/ Laura L. Canter

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Laura L. Canter

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President Finance Programs

  

 

2Exhibit 10.4

 

Amendment
to Security Agreement

 

This Amendment to Security
Agreement is made as of January 1, 2009, by and between Celldex
Therapeutics, Inc. successor in interest to Avant Immunotherapeutics, Inc.
(“Borrower”) and MASSACHUSETTS DEVELOPMENT
FINANCE AGENCY, a body politic and corporate created under
Massachusetts General Laws Chapter 23G (“Lender”).

 

Recitals

 

Reference is made to the
loan in the original principal amount of $1,104,000.00 as decreased in November 2004
to $904,000.00 (the “Loan”) made by the Lender to Borrower. The Loan is
evidenced by that certain Promissory Note (the “Note”) and secured by
that certain Security Agreement: Equipment (“Security Agreement”) both dated December 22,
2003. The Security Agreement and the Note, together with all other documents
evidencing, securing, or otherwise delivered to the undersigned in connection
with the Loan, are referred to, collectively, as the “Loan Documents.”

 

Borrower is requesting
Lender’s consent to the sale of the portion of the Collateral (as defined in
the Security Agreement) listed on Exhibit A hereto and its
replacement with the equipment listed on Exhibit B hereto (the “Replacement
Equipment”). Section 4(e)(iii) of the Security Agreement requires (i) that
Lender determine that the replacement equipment has an aggregate market value
equal or greater to the Collateral to be sold and (ii) that Borrower grant
Lender a first priority security interest in the Replacement Equipment.

 

Now therefore Borrower and
Lender agree as follows:

 

Pursuant to Section 4(e)(iii) of
the Security Agreement, Lender consents to the sale of the portion of the
Collateral listed on Exhibit A hereto and the substitution of the
Replacement Equipment.

 

Borrower grants Lender a
first priority security interest in the Replacement Equipment.

 

Borrower further ratifies,
affirms, represents and acknowledges for the benefit of Lender, as follows:

 

All terms, provisions,
agreements, covenants, and assignments in the Security Agreement, as amended
hereby, are ratified and affirmed by Borrower.

 

All representations and
warranties contained in the Security Agreement remain true as of the date
hereof.

 

The Borrower acknowledges
that its obligations under the Security Agreement, as amended hereby, remain in
full force and effect and that the collateral described therein continues to
secure the Loan and the Note as amended by the Note Amendment.

 

1

 

Executed
under seal this      day of January, 2009.

 

 

	
   

  	
  MASSACHUSETTS
  DEVELOPMENT FINANCE AGENCY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laura L. Canter

  
	
   

  	
   

  	
  Name:

  	
  Laura L. Canter

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President Finance Programs

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CELLDEX THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Avery W. Catlin

  
	
   

  	
   

  	
  Name:

  	
  Avery W. Catlin

  
	
   

  	
   

  	
  Title:

  	
  SVP and CFO

  

 

2Exhibit 10.5

 

	

  	
222 Cameron Drive, Suite 400
  
	
Phillipsburg, NJ 08865
  
	
Phone 908 454-7120
  
	
Fax 908-454-1911
  

 

	
 
  	
April 2, 2008
  

 

Dr. Rose Ritts

Office of Licensing and Ventures

Duke University

2812 Erwin Rd, Suite 306

P.O. Box 90083

Durham, NC    27705

 

Re:          Amended and Restated License Agreement between Duke University (“Duke”) and Celldex Therapeutics, Inc. (“Celldex”), dated September 1, 2006 (the “Duke Agreement”)

 

Ladies and Gentlemen:

 

As you are aware, pursuant to the Duke Agreement, Duke has licensed to Celldex certain rights owned by Duke.  Celldex proposes to enter into an agreement (the “Pfizer Agreement”) with Pfizer Vaccines LLC (“Pfizer”) pursuant to which Celldex will sublicense to Pfizer the rights licensed to Celldex by Duke under the Duke Agreement.

 

1.             No Breach.  Duke confirms that, as of the date of this letter agreement (this “Letter Agreement”): (i) the Duke Agreement remains in full force and effect; and (ii) it has not given any notice to Celldex of any breach by Celldex under the Duke Agreement.

 

2.             Effective Date.  Duke acknowledges that the Pfizer Agreement will not become effective until Celldex and Pfizer have received any clearance that may be required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.  Celldex agrees to notify Duke promptly as to the effective date of the Pfizer Agreement once it has occurred (the “Effective Date”).  Paragraphs 3, 4, and 5 of this Letter Agreement shall become effective as of the Effective Date.  Except as otherwise expressly provided herein, the provisions of this Letter Agreement shall be effective from the date of this Letter Agreement written above. If Celldex notifies Duke that Celldex and Pfizer have decided not to enter into the Pfizer Agreement or that the Pfizer Agreement has been terminated prior to the Effective Date, this Letter Agreement shall become null and void.  Duke confirms that this Letter Agreement satisfies Celldex’s notice obligation under Section 2.4 of the Duke Agreement with respect to the Pfizer Agreement.

 

3.             Breach under Duke Agreement.  In the event of any breach by Celldex of the Duke Agreement, Duke shall promptly notify Pfizer in writing of such breach, and Pfizer shall have the right, but no obligation, to cure such breach on behalf of Celldex within sixty (60) days after Pfizer’s receipt from Duke of written notification of such breach.  During such sixty (60) day cure period Duke shall not terminate the Duke Agreement.

 

4.             Option to Obtain a License Directly from Duke Upon Termination of the Duke Agreement.  In the event Duke has the right to terminate the Duke Agreement for any reason (the “Breached 

 

 

License”), and the Pfizer Agreement is in force and effect as of the proposed date of termination of the Duke Agreement, Duke shall promptly notify Pfizer, and Pfizer shall have the right to obtain directly from Duke a license agreement on substantially the same terms and conditions set forth in the Breached License (such right, the “License Option”).  Pfizer may exercise the License Option by providing a written notice to Duke within sixty (60) days from the date that Duke notifies Pfizer that Duke has the right to terminate the Breached License.  If Pfizer exercises the License Option, Duke shall enter into a license agreement directly with Pfizer (the “New License Agreement”) on substantially the same terms and conditions as those set forth in the Breached License, including but not limited to license scope, territory, and duration of license grant; provided  however, (i) that Pfizer shall agree in the New License Agreement to terms providing that in no event shall Duke be liable to Pfizer for any actual or alleged breach by Celldex of the Breached License; (ii) that the financial terms of any New License Agreement, including without limitation the running royalty rate, shall in no event be greater than the corresponding financial terms set forth in the Breached License; and (iii) that in no event shall Duke be obliged to accept provisions in any New License Agreement (a) unless such provisions correspond to rights granted by Celldex to Pfizer in the Pfizer Agreement, and such provisions are not in conflict with the material rights, duties and obligations accruing to Celldex under the Breached License; or (b) where such provisions are inconsistent with Duke’s legal obligations under any applicable law.  Duke agrees that it will not terminate the Breached License until the New License Agreement is fully executed and is in full force and effect.

 

5.             Assignments.  Duke agrees that if it assigns its rights under the Duke Agreement, or any of the intellectual property licensed to Celldex thereunder, Duke shall cause such assignee to be bound by the terms of this Letter Agreement applicable to Duke.

 

6.             Confidentiality.  Any information disclosed to or received by Duke relating to the subject matter of the Pfizer Agreement or this Letter Agreement, whether provided to Duke by Pfizer or Celldex, shall be subject to the provisions of Section 6 of the Duke Agreement as Confidential Information of Celldex.

 

7.             Third Party Beneficiary. The parties hereby agree that Pfizer Vaccines LLC and Pfizer Inc. shall be third party beneficiaries of this Letter Agreement while the Pfizer Agreement is in full force and effect.

 

8.             Notices.  Any notices required hereunder shall be sent by registered or certified mail or by an equivalent service capable of verification at the address stated below or such other address as to which the parties may provide in the future.

 

	
If to Duke:
  	
Office of Licensing and Ventures
  
	
 
  	
Duke University
  
	
 
  	
Attention: License Administrator
  
	
 
  	
2812 Erwin Rd, Suite 306
  
	
 
  	
P.O. Box 90083
  
	
 
  	
Durham, NC 27705
  

 

2

 

 

 

	
With a copy to (if of a legal nature):
  
	
 
  	
 
  
	
 
  	
Office of University Counsel
  
	
 
  	
Duke University
  
	
 
  	
2400 Pratt Street, Suite 4000
  
	
 
  	
Durham, NC 27710
  
	
 
  	
 
  
	
If to Pfizer:
  	
Pfizer Vaccines LLC
  
	
 
  	
235 East 42nd Street
  
	
 
  	
New York, New York 10017-5755
  
	
 
  	
Attention: President
  
	
 
  	
Fax: (860) 732-1843
  
	
 
  	
 
  
	
 
  	
Pfizer Vaccines LLC
  
	
 
  	
235 East 42nd Street
  
	
 
  	
New York, New York 10017-5755
  
	
 
  	
Attention: Treasurer
  
	
 
  	
Fax: (212) 338-1850
  
	
 
  	
 
  
	
With a copy to:
  	
Pfizer Inc.
  
	
 
  	
235 East 42nd Street
  
	
 
  	
New York, New York 10017-5755
  
	
 
  	
Attention: General Counsel
  
	
 
  	
Fax: (212) 808-8924
  
	
 
  	
 
  
	
If to Celldex:
  	
Celldex Therapeutics, Inc.
  
	
 
  	
222 Cameron Drive, Suite 400
  
	
 
  	
Phillipsburg, NJ 08865
  
	
 
  	
Attention: Senior Vice President, Business Development
  
	
 
  	
Phone: (908) 454-7120
  
	
 
  	
Fax: (908) 454-1911
  
	
 
  	
 
  
	
With a copy to:
  	
Edwards Angell Palmer & Dodge LLP
  
	
 
  	
111 Huntington Avenue
  
	
 
  	
Boston, MA 02199
  
	
 
  	
Attention: Richard B. Smith, Esq.
  
	
 
  	
Phone: (617) 239-0100
  
	
 
  	
Fax: (617) 227-4420
  

 

9.             Miscellaneous.

 

(a)      Counterparts. This Letter Agreement may be executed (including by facsimile) in any number of counterparts each of which shall be original and all originals of which shall be deemed a single instrument.

 

3

 

(b)      Full Understanding. This Letter Agreement represents the full understanding among the parties with respect to the subject matter hereof.

 

(c)      Modification/Waiver. No modification or waiver of this Letter Agreement shall be effective except in a written document signed by the party against whom such waiver or modification is to be enforced.

 

(d)      No Assignment. This Letter Agreement may not be assigned without the prior written consent of each party hereto except in connection with the sale or transfer of the entire business and assets of the assigning party, or in connection with a permitted assignment by Duke as provided in Section 7.6 of the Duke Agreement. Any other attempt to transfer or assign this Letter Agreement without such consent shall be null and void.

 

(e)      Independent Contractors. This Letter Agreement shall not constitute any party as the joint venturer, legal representative or agent of any other party hereto, and no party hereto shall have the right or authority to assume or create any obligation on the part of any other party hereto.

 

(f)       Governing Law. This Letter Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

 

[Remainder of Page Intentionally Left Blank]

 

4

 

Please sign and return a copy of this Letter Agreement to us to acknowledge our mutual agreement on this matter. Thank you, again, for all of your assistance.

 

	
Sincerely,
  	
 
  
	
 
  	
 
  
	
CELLDEX THERAPEUTICS, INC.
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
/s/ Ronald C. Newbold
  	
 
  
	
Name:
  	
Ronald C. Newbold
  	
 
  
	
Title:
  	
Sr. Vice President, Business Development
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
AGREED AND ACKNOWLEDGED:
  	
 
  
	
 
  	
 
  
	
DUKE UNIVERSITY
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
/s/ Rose Ritts
  	
 
  
	
Name:
  	
Rose Ritts, Ph.D.
  	
 
  
	
Title:
  	
Executive Director
  	
 
  
	
 
  	
Office of Licensing and Ventures
  	
 
  
	
 
  	
Duke University & DUMC

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