Document:

Unassociated Document

Amendment No. 2

to

Tranche A Warrants to Purchase Common Stock and Tranche B Warrants to Purchase Common Stock

 

This Amendment No. 2 to Tranche A Warrants to Purchase Common Stock and Tranche B Warrants to Purchase Common Stock (this “Amendment”) is entered into effective as of December 19, 2011 (the “Effective Date”), by and among Genesis Biopharma, Inc., a Nevada corporation (the “Company”), and the parties set forth on the signature page hereto as the “Holders” (the “Holders”).

 

Background

 

A.           The Company and the Holders are the parties to the (A) Tranche A Warrants to Purchase Common Stock (the “Tranche A Warrants”) and (B) Tranche B Warrants to Purchase Common Stock (the “Tranche B Warrants”), as amended by the certain Amendment No. 1 to Tranche A Warrants to Purchase Common Stock and Tranche B Warrants to Purchase Common Stock, dated as of November 30, 2011.

 

B.           The Holders own all of the currently outstanding Tranche A Warrants and Tranche B Warrants.

 

C.           The Company and the Holders wish to amend the Tranche A Warrants and the Tranche B Warrants as set forth in this Amendment.

 

Agreement

 

The Company and the Holders agree as follows:

 

1.           Section 1(b) of the Tranche A Warrant is hereby deleted in its entirety and replaced by the following:

 

“(b)           Exercise Price.  For purposes of this Warrant, “Exercise Price” means $1.25, subject to adjustment as provided herein.  Notwithstanding the foregoing, if at any time after the Issuance Date the Company consummates an equity financing for gross proceeds of at least $10,000,000 (a “Qualified Offering”), or the Company issues securities to any consultants, officers, directors, employees or third parties, for a price per share that is below the fair market value of the Common Stock as measured by the Closing Sale Price on the date of issuance, the Conversion Price shall be adjusted to the lesser of (i) $1.25 and (ii) eighty percent (80%) of the purchase price per share of Common Stock payable by the investors in such subsequent equity financing.  In case any Option is issued in connection with the sale of Common Stock in a Qualified Offering, together comprising one integrated transaction, the value assigned to any such Option (the “Option Value”) shall be calculated using the Black-Scholes model using a “volatility” of 100 and a “risk free rate” of 2.3% and, for purposes of determining the Conversion Price, the purchase price per share of Common Stock shall equal the amount paid per share of Common Stock in the Qualified Offering minus the Option Value.”

 

  

  

  

 

2.           Section 1(b) of the Tranche B Warrant is hereby deleted in its entirety and replaced by the following:

 

“(b)           Exercise Price.  For purposes of this Warrant, “Exercise Price” means $1.25, subject to adjustment as provided herein.  Notwithstanding the foregoing, if at any time after the Issuance Date the Company consummates an equity financing for gross proceeds of at least $10,000,000 (a “Qualified Offering”), or the Company issues securities to any consultants, officers, directors, employees or third parties, for a price per share that is below the fair market value of the Common Stock as measured by the Closing Sale Price on the date of issuance, the Conversion Price shall be adjusted to the lesser of (i) $1.25 and (ii) eighty percent (80%) of the purchase price per share of Common Stock payable by the investors in such subsequent equity financing.  In case any Option is issued in connection with the sale of Common Stock in a Qualified Offering, together comprising one integrated transaction, the value assigned to any such Option (the “Option Value”) shall be calculated using the Black-Scholes model using a “volatility” of 100 and a “risk free rate” of 2.3% and, for purposes of determining the Conversion Price, the purchase price per share of Common Stock shall equal the amount paid per share of Common Stock in the Qualified Offering minus the Option Value.”

 

3.           Except as expressly set forth in the preceding Sections 1 and 2, each of the Tranche A Warrants and the Tranche B Warrants shall remain in full force and effect.

 

4.           Each Holder represents and warrants to the Company that this Amendment has been duly authorized, executed and delivered by him, her or it and constitutes his, her or its legal, valid and binding obligation, enforceable against him, her or it in accordance with its terms.

 

5.           The Company represents and warrants to the Holders that this Amendment has been duly authorized, executed and delivered by the Company and constitutes the Company’s legal, valid and binding obligation, enforceable against the Company in accordance with its terms.

 

6.           This Amendment may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract.

 

7.           THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES WHICH MIGHT CAUSE THE LAWS OF ANY OTHER JURISDICTION TO BE APPLIED.

 

  

  

  

IN WITNESS WHEREOF, the Company and the Holders have duly executed this Amendment effective as of the Effective Date.

 

 

	COMPANY:	 	 HOLDER:
	 	 	 
	 
GENESIS BIOPHARMA, INC.

	 	 
Ayer Capital Partners Master Fund, L.P.

	 	 	 	 	 	 
	 	 	 	 	 	 
	
By:

	 	 	 	
By:

	 
	
Name:

	 	 	 	
Name: 

	 
	
Title: 

	 	 	 	
Title:

	 

 

 

	HOLDER:	 	 HOLDER:
	 	 	 
	 
 
Epworth-Ayer Capital

	 	 
 
Bristol Investment Fund, Ltd.

	 	 	 	 	 	 
	 	 	 	 	 	 
	
By:

	 	 	 	
By:

	 
	
Name:

	 	 	 	
Name: 

	 
	
Title: 

	 	 	 	
Title:

	 

 

 

 

	HOLDER:	 	 
	 	 	 
	 
 
 
Ayer Capital Partners Kestrel Fund, LP

	 	 
 
 

	 	 	 	 	 	 
	 	 	 	 	 	 
	
By:

	 	 	 	 	 
	
Name:

	 	 	 	 	 
	
Title:Unassociated Document

Exhibit 10.2

First Amendment

Franklin Financial Corporation Employment Agreement

(Richard T. Wheeler, Jr.)

WHEREAS, Franklin Financial Corporation, (the “Company”), has previously entered into an employment agreement (the “Agreement”) with Richard T. Wheeler, Jr. (the “Executive”); and

WHEREAS, the Company and the Executive have determined that a modification to the Agreement is necessary and appropriate, and desire to enter into this First Amendment (the “Amendment”) on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Executive hereby amend Section 5.1, effective as of the Effective Date of the Agreement (as defined therein),  to read as follows:

“5.1           Change in Control Benefits. If a Change in Control occurs during the term of this Agreement and, thereafter, the Executive’s employment terminates involuntarily but without Cause or if the Executive voluntarily terminates employment with Good Reason, the Company shall make or cause to be made a lump-sum payment to the Executive in an amount in cash equal to three (3) times the Executive’s average annual compensation.  For this purpose, average annual compensation means the Executive’s average annual taxable income reported by the Company (or any affiliate of the Company) for the five (5) calendar years immediately preceding the calendar year in which the Change in Control occurs, provided, however, that such average annual taxable income shall not include any amount reported in the Executive’s Corrected Wage and Tax Statement on Form W-2c, Box 11, relating to distributions received by the Executive from the 2001 Amended and Restated Franklin Federal Savings Bank Deferred Compensation Plan for Directors and Senior Officers.  The payment required under this paragraph is payable no later than five (5) business days after the Executive’s termination of employment.  If the Executive receives payment under Section 5.1, the Executive shall not be entitled to any additional severance benefits under Section 4.1 of this Agreement.  In addition to the cash severance benefit provided for under this Section 5.1, the Company shall provide the Executive with the post-termination insurance coverage described in Section 4.2(a) of this Agreement, subject to the provisions of Section 4.2(b) of this Agreement.”

*     *     *     *     *

In all other respects, the parties hereby ratify and affirm the terms of the Agreement.

  

  

  

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by duly authorized officers, and the Executive has signed this Amendment, as of the 21 day of December, 2011.

	  	
FRANKLIN FINANCIAL CORPORATION

	  	  
	  	
By:

	
/s/ Elizabeth W. Robertson

	  	  
	  	
/s/ Richard T. Wheeler, Jr.

	  	
Richard T. Wheeler, Jr.Unassociated Document

Exhibit 10.4

First Amendment

Franklin Federal Savings Bank Employment Agreement

(Richard T. Wheeler, Jr.)

WHEREAS, Franklin Federal Savings Bank (the “Bank”) and Franklin Financial Corporation, (the “Company”), have previously entered into an employment agreement (the “Agreement”) with Richard T. Wheeler, Jr. (the “Executive”); and

WHEREAS, the Bank, the Company and the Executive have determined that a modification to the Agreement is necessary and appropriate, and desire to enter into this First Amendment (the “Amendment”) on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Bank, the Company and the Executive hereby amend Section 5.1, effective as of the Effective Date of the Agreement (as defined therein),  to read as follows:

“5.1           Change in Control Benefits. If a Change in Control occurs during the term of this Agreement and, thereafter, the Executive’s employment terminates involuntarily but without Cause or if the Executive voluntarily terminates employment with Good Reason, the Bank shall make or cause to be made a lump-sum payment to the Executive in an amount in cash equal to three (3) times the Executive’s average annual compensation.  For this purpose, average annual compensation means the Executive’s average annual taxable income reported by the Bank (or any affiliate of the Bank) for the five (5) calendar years immediately preceding the calendar year in which the Change in Control occurs, provided, however, that such average annual taxable income shall not include any amount reported in the Executive’s Corrected Wage and Tax Statement on Form W-2c, Box 11, relating to distributions received by the Executive from the 2001 Amended and Restated Franklin Federal Savings Bank Deferred Compensation Plan for Directors and Senior Officers.  The payment required under this paragraph is payable no later than five (5) business days after the Executive’s termination of employment.  If the Executive receives payment under Section 5.1, the Executive shall not be entitled to any additional severance benefits under Section 4.1 of this Agreement.  In addition to the cash severance benefit provided for under this Section 5.1, the Company shall provide the Executive with the post-termination insurance coverage described in Section 4.2(a) of this Agreement, subject to the provisions of Section 4.2(b) of this Agreement.”

*     *     *     *     *

In all other respects, the parties hereby ratify and affirm the terms of the Agreement.

  

  

  

IN WITNESS WHEREOF, the Bank and the Company have caused this Amendment to be executed by duly authorized officers, and the Executive has signed this Amendment, as of the 21 day of December, 2011.

	  	
FRANKLIN FEDERAL SAVINGS BANK

	  	  
	  	
By:

	
 
/s/ Elizabeth W. Robertson

	  	  
	  	
FRANKLIN FINANCIAL CORPORATION

	  	  
	  	
By:

	
 
/s/ Elizabeth W. Robertson

	  	  
	  	
/s/ Richard T. Wheeler, Jr.

	  	
Richard T. Wheeler, Jr.

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