Document:

ex_99690.htm

Exhibit 10.1

 

FIRST AMENDMENT TO LEASE

 

 

THIS FIRST AMENDMENT TO LEASE (“First Amendment”) dated April 20, 2017 between LENOX DRIVE OFFICE PARK, LLC, a Delaware limited liability company with an office at c/o JFR Global, 2329 Nostrand Avenue, Suite 200, Brooklyn, New York 11210, successor in interest to Brandywine Operating Partnership, L.P. (“Landlord”) and CELSION CORPORATION, a Delaware Corporation limited liability company having an address at 997 Lenox Drive, Suite 102, Lawrenceville, New Jersey 08648 (“Tenant”). 

 

R E C I T A L S:

 

WHEREAS, pursuant to a certain Lease dated July 14, 2011 (the “Original Lease”), Tenant now leases an agreed upon 10,870 rentable square feet (“rsf”) of space on the first floor of the office building located at 997 Lenox Drive, Lawrenceville, New Jersey (the “Building”), commonly referred to as Suite 106 (the “Original Premises”); and 

 

WHEREAS, the term for the Original Lease expires on April 30, 2017; and 

 

WHEREAS, Tenant now desires to reduce the size of the Original Premises such that it will be comprised of an agreed upon 7,565 rsf (the “Demised Premises”) and further desires to extend the term of the Lease for an additional five (5) years and four (4) months, subject to the terms and conditions described herein; and 

 

WHEREAS, Landlord and Tenant mutually agree in this First Amendment to implement the terms of the reduction in size and extension of term and make such other modifications as are herein agreed in order to accomplish and complement the foregoing, all as set forth herein below.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants hereinafter contained, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 

 

1.     Incorporation of Recitals; Capitalized Terms. The recitals set forth above, the Original Lease as amended herein, and the exhibits attached thereto are hereby incorporated by reference into this First Amendment.  For sake of clarity any reference to the Building, Premises, Term, and Landlord shall mean references to those terms identified in this First Amendment. For purposes of this First Amendment, except where the context otherwise requires, the First Amendment and the Original Lease shall be referred to collectively as the “Lease.” 

 

1

 

 

2.     Demised Premises. Landlord and Tenant agree that effective May 1, 2017 the Demised Premises shall be deemed to be comprised of 7,565 rsf. The Demised Premises and that portion of the Original Premises being removed are depicted on Schedule A attached hereto and made a part hereof.   Landlord agrees that the current IT room, which is not contiguous to the premises shall continue to be included in the Demised Premises. Tenant agrees to pay a sum not to exceed $1,500. 00 based on Landlord’s invoice toward the creation of a hallway door access. Landlord shall have the absolute right upon ninety (90) days’ notice to relocate the IT room into the Demised Premises at Tenant’s sole cost and expense. If Landlord relocates the IT room, Landlord shall reimburse the Tenant by way of immediately applied rent credit, the sum of $1,500.00. Upon the completion of the relocation Landlord and Tenant will readjust the square footage and amount of Fixed Basic Rent from the Demised Premises after the relocation. Landlord further agrees that if the hallway door access can be utilized for a new tenant, it shall credit Tenant toward the next payment of Fixed Basic Rent the amount paid by Tenant for the hallway access door.

 

3.     Lease Term. Landlord and Tenant agree that the term of the Lease shall be extended for five (5) years and four (4) months. The Commencement Date shall be May 1, 2017 regardless of whether Landlord has completed Landlord’s Work as described in Paragraph 6 and the Expiration Date shall be August 30, 2022. The foregoing agreed upon Commencement Date for this First Amendment shall require Tenant to vacate, and discontinue use of, that portion of the Premises leased under the Original Lease (comprised of 3,305 rsf as described on Schedule A) by no later than May 1, 2017 and to execute and deliver to Landlord this First Amendment by no later than 5:00 PM April 12, 2017.The parties agree to execute a Confirmation of Lease Term document to be prepared by Landlord consistent with the form attached to the Original Lease as Exhibit B. The parties agree that the Original Lease shall continue in accordance with its terms until the Commencement Date described herein.

 

4.     Fixed Basic Rent. During the Lease Term for the Demised Premises, the Fixed Basic Rent payable pursuant to the Lease, as further amended by this First Amendment, shall be based on consecutive 12 month periods falling on the anniversary of the Commencement Date, and each such 12-month period shall be a “Lease Year.” The first Lease Year shall commence on the Commencement Date as described above. There shall be an abatement of Fixed Basic Rent during the initial four (4) months of the term. During the rent abatement period, Tenant shall pay electric charges in the manner currently calculated as applied to the Demised Premises. Fixed Basic Rent shall be payable based on 7,565 rsf as set forth in the table below:

 

	Lease Year	 	 	
			Per RSF

				 	 	
			Annual Rent

				 	 	
			Monthly Rate

				 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	 	$	30.00	 	 	$	151,300.00*	 	 	$	18,912.50	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	 	$	30.50	 	 	$	230,732.50	 	 	$	19,227.71	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3	 	 	$	31.00	 	 	$	234,515.00	 	 	$	19,542.92	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	 	$	31.50	 	 	$	238,297.50	 	 	$	19,858.13	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5	 	 	$	32.00	 	 	$	242,080.00	 	 	$	20,173.33	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6	 	 	
			$ 

				32.50	 	 	$	 81,954.16	**	 	$	$20,488.54	 

 

*Based on 8 months following 4 month rent abatement

** Based on 4 months

 

2

 

 

5.     Additional Rent/Utilities/Base Year/ Tenant’s Percentage. Tenant shall continue to pay Additional Rent, Operating Expenses, and Utilities in the same manner as presently paid pursuant to the Original Lease except as set forth herein which shall be applicable after the Commencement Date. Electricity shall be charged at the rate of the greater of $1.75 per rentable square foot or the adjusted rate as described in Section 5 of the Lease. Tenant’s Percentage as described in Section 4 (A) of the Original Lease shall be 7.6%. Landlord further agrees that effective May 1, 2017, Tenant’s Base Year shall be Calendar Year 2017.

 

6.     Acceptance of Premises/ Additional Work. Tenant agrees that the Premises are accepted in its AS –IS subject to Landlord implement the changes depicted on the Space Plan attached hereto as Schedule A and in accordance with the scope of work attached hereto as Schedule B. All work shall be performed by Landlord and shall use the then applicable Building Standards. By its execution hereof, Tenant accepts in all respects the Scope of Work. Any future changes thereto which increases Landlord’s costs shall be implemented at the sole cost and expense of Tenant. Tenant acknowledges that the performance of work shall cause minor disturbance and interference to the operations of Tenant at the Demised Premises. Landlord agrees that it shall commence the work described on Schedule B as soon as commercially practical based on Tenant’s vacation and available work space and to continue towards completion in a commercial reasonable manner.

 

7.       Right of Termination. Tenant shall have a one (1) time option (the “Cancellation Option”) to terminate the Lease pursuant to the provisions of this Paragraph. If properly exercised, the cancellation of this Lease pursuant to the Cancellation Option shall be effective as of the fortieth (40th) month after the Commencement Date (the “Cancellation Date”). Not later than the last day of the twenty eighth (28th) month calculated from the Commencement Date, Tenant must give Landlord written notice of Tenant's election to exercise the Cancellation Option (the “Cancellation Notice”). As a condition of Tenant’s rights hereunder, no Event of Default (beyond notice and any applicable grace period) shall exist either on the date that Tenant exercises the Cancellation Option and up to, and on and as of, the Cancellation Date. Tenant shall pay to Landlord, a fee (the “Cancellation Fee”) in an amount equal to the unamortized portion (as of the Cancellation Date) of (i) the Landlord’s costs for Landlord’s Work (iii) the unamortized rent abatement and (iii) the leasing commissions and legal fees paid by Landlord in connection with this Lease (collectively, “Landlord’s Costs”). Landlord’s Costs will be amortized over the period commencing on the Commencement Date and continuing through the scheduled expiration date of this Lease at an annual interest rate of eight (8%) percent. Such payment shall be made on the date upon which the Cancellation Notice is served. If Tenant timely and properly exercises the Cancellation Option (time being of the essence): (i) all Fixed Basic Rent and additional rent payable under this Lease shall be paid through and apportioned as of the Cancellation Date (in addition to payment by Tenant of the Cancellation Fee); (ii) neither party shall have any rights, estates, liabilities or obligations under this Lease for the period accruing after the Cancellation Date, except those which, by the provisions of this Lease, expressly survive the expiration or termination of the term of this Lease; and (iii) Tenant shall surrender and vacate the Premises and deliver possession thereof to Landlord on or before the Cancellation Date in the condition required under this Lease for surrender of the Demised Premises including all restoration required under the Lease. If Tenant fails to vacate, Tenant shall be deemed to have committed an Event of Default under the Lease as amended hereby. Upon completion of Landlord’s Work and after the Commencement Date is determined, Landlord shall provide Tenant with a detail of the Cancellation Fee within thirty (30) days of written request by Tenant.

 

3

 

 

8.     Notice to Landlord and Tenant/Rent Payment Address. Any notice, statement, demand, request or other communication required or permitted to be given and all payments of Rent and Additional Rent shall be sent to Landlord as follows: 

 

	 	
			
			Lenox Drive Office Park LLC

			

			
			c/o Vision Management, LLC

			

			
			1009 Lenox Drive, Suite 100

			

			
			Lawrenceville, New Jersey 08648

			

				 

 

Tenant agrees that it shall pay Fixed Basic Rent and any Additional Rent and all payments due under the Lease as amended to Landlord by an ACH or wire procedure after receipt of appropriate information from Landlord. 

 

 

9.      Broker. Tenant and Landlord mutually represent and warrants to each other Landlord that except for the broker described in Section 23 of the Original Lease and Landlord’s broker (collectively the “Broker”) no other broker or real estate agent was engaged or employed in connection with this First Amendment. Landlord represents that it shall pay the Broker a commission pursuant to a separate written agreement.   Each party hereby indemnifies and holds the other harmless from and against any and all costs, claims, losses, liabilities and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) arising out of any breach of the foregoing representation. 

 

10.  Security Deposit.   The parties hereby confirm that Landlord is holding a Security Deposit in the form of a Letter of Credit in the amount of $100,000.00 which shall apply to the Demised Premises and this First Amendment. Landlord agrees that after the Commencement Date and provide Tenant is not in default hereof after any applicable notice and grace period, Tenant shall be entitled to reduce the Security Deposit to the total sum of $50,000.00. Accordingly, Tenant shall be entitled to replace the existing Security Deposit by either a cash deposit of new letter of credit in the amount of $50,000.00. Landlord and Tenant shall cooperate with the replacement and return procedures. 

 

11.     Ratification. Tenant confirms and ratifies that, as of the date hereof: (a) Tenant is the Tenant under the Lease and has neither assigned the Lease as amended nor subleased any portion of the Premises; (b) the Lease as amended and as further amended herein, is and remains in good standing and in full force and effect; (c) Landlord is not in default of any of its obligations under the Lease, nor, to Tenant’s knowledge, has any event occurred which, with the giving of notice of the passage of time or both would constitute a default by Landlord under the Lease; and (d) Tenant has no claims, counterclaims, set-offs or defenses against Landlord arising out of the Lease as amended. 

 

4

 

 

12.     Binding Effect/Governing Law. Except as modified hereby, the Original Lease as amended by the First Amendment shall remain in full force and effect, and shall be binding upon Landlord and Tenant and their respective successors and assigns. This First Amendment shall be governed by the law of the State of New Jersey. 

 

13.     Conflicts. If any inconsistency exists or arises between the terms of this First Amendment and the terms of the Original Lease, the terms of this First Amendment shall prevail. 

 

14.     Counterparts. This First Amendment may be executed in multiple counterparts, each of which shall constitute an original, but all of which shall constitute one and the same document. Signatures transmitted via facsimile or e-mail shall have the same binding effect as original signatures. Promptly following any facsimile transmittal or e-mail transmittal of signatures in “PDF” format, the parties shall deliver to each other the original executed document (it being agreed and understood that the delivery of such original shall not be a condition to the binding nature of the facsimile or electronic copy of the document).

 

 

15.     Continuation of Lease.      Except as set forth above, the Lease as modified by this First Amendment shall continue in full force and effect in accordance with its terms subject to the following modifications which shall govern from and after the Commencement Date: 

 

(a). The cleaning specifications attached hereto as Schedule C shall apply;

 

(b). The Building Standards for the Building attached hereto as Schedule D shall apply;

 

(c) Section 18 B of the Lease shall be modified to delete Tenant’s right of set off except upon receipt of a monetary judgment in favor of Tenant issue by a court of competent jurisdiction; 

 

(d) Section 25 of the Lease is deemed modified to provide that the Tenant shall not have the right to terminate the Lease on account of Landlord’s exercise of its right of relocation as otherwise described in Section 25. 

 

(e) Section 31 (Expansion) and Section 33 (Tenants Economic Incentives) shall no longer apply and shall be deemed null and void.

 

16.     Confidentiality.     The terms of this First Amendment shall remain confidential and shall not be released to any third party except as otherwise provided herein and as required by law. Nothing contained herein shall prohibit the parties hereto from releasing the terms of this First Amendment to their attorneys and/or other professionals, investors, lenders and potential purchasers of the property. Except for public announcements that may be required by law, all public announcements with the use of Tenant's name shall be subject to Tenant's prior written consent, which may be withheld in Tenant's sole discretion.

 

5

 

 

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date and year first above written. 

 

	 	
			 

			
			LANDLORD: 

			

			
			LENOX DRIVE OFFICE PARK, LLC

			

			 

			 

			
			By: ________________________________

			

			 

			
			Name: ______________________________

			

			 

			
			Title: _______________________________

			

			 

			
			TENANT:

			

			
			CELSION CORPORATION

			

			 

			
			By: ________________________________

			

			 

			
			Name: ______________________________

			

			 

			
			Title: ___________________________

			

			

 

6

 

 

SCHEDULE A 

 

SPACE PLAN

 

 

 

7,565 RSF

 

   Princeton Pike Corporate Center

997 Lenox Road - Suite 102 Lawrence Township, New Jersey

First Floor Plan

 

7

 

 

SCHEDULE B

 

SCOPE OF WORK

 

 

Creating the Demised Premises

 

Shampoo the Carpets in the Demised Premises

 

Paint the Demised Premises

 

8

 

 

SCHEDULE C

 

CLEANING SPECIFICATIONS

 

 

9

 

 

 

10

 

 

SCHEDULE D

 

BUILDING STANDARD CONSTRUCTON MATERIALS

 

 

Door size and type 

 

Building standard door for Lessee space will be 7’ rotary birch - stain grade

 

Building standard for Lessee space from corridor will be 7’Rotary birch – stain grade

 

Doors will be 3’ width unless otherwise specified

 

All hollow metal door frames will be knock down type

 

Locksets

 

Building standard Schlage AL-Series Jupiter 626 chromium plated lever set

 

Locksets for corridor entrances and storage closets and passage sets for all other areas

 

Blinds

 

Building standard will be 1” Levelour mini blinds with brushed aluminum finish

 

Lighting

 

Building standard recessed fluorescent fixtures 2x4 parabolic 18 cell (no return air)

 

2 fixtures for each office and one fixture for every 100Sqft of open area

 

2 outlets for every office and one outlet for every perimeter wall of open area

 

1 20amp circuit per every four work stations

 

1 switch for every office and one switch for every open area

 

Building standard provides no provisions for floor outlets

 

Ceiling tile and grid (Lessee space) building standard

 

Grid standard 15/16” white grid by Armstrong

 

2x4 Cortega Lay-in #769 ceiling tile by Armstrong

 

HVAC Diffuser 

 

Square flush diffuser (white) single baffle

 

11

 

 

One diffuser per office and conference rooms

 

Open area diffusers will be installed per code

 

Sprinkler 

 

Normal hazard Concealed heads will be used throughout

 

Heads will be located per New Jersey NFPA 13 code

 

Paint

 

Building standard will consist of only one paint color Benjamin Moore eggshell finish

 

Flooring

 

Carpet

 

Tandus Carpet Tile 24” x 24” from quick ship line (City Walk Style)

 

VCT

 

Azrock 12” x 12” x 1/8” vinyl composite tile, Cortina Colors

 

Vinyl Base

 

Johnsonite 4” vinyl base, 1/8” 

 

12ex_99691.htm

Exhibit 10.3

 

October 4, 2017

 

[____]

 

 

Re:     Inducement Offer to exercise Common Stock Purchase Warrants

 

To Whom It May Concern:

 

Celsion Corporation (the “Company”) is pleased to offer to you the opportunity to exercise all of the Series AAA and Series BBB Common Stock purchase warrants set forth on Annex I attached hereto (the “Existing Warrants”) currently held by you (the “Holder”). The shares underlying the Existing Warrants (“Warrant Shares”) have been registered for resale pursuant to registration statement Form S-1 (File No. 333-219414) (the “Registration Statement”). The Registration Statement is currently effective and, upon exercise of the Existing Warrants pursuant to this letter agreement, will be effective for the issuance or resale, as the case may be, of the Warrant Shares. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Securities Purchase Agreement, dated as of July 6, 2017, by and among the Company and the signatories thereto (the “Purchase Agreement”). 

 

In consideration for exercising in full all of the Existing Warrants held by you and set forth on Annex I hereto (the “Warrant Exercise”), the Company hereby offers to issue you or your designee a Series DDD Common Stock Purchase Warrant (“New Warrant”) pursuant to Section 4(a)(2) of the Securities Act of 1933 (“Securities Act”) to purchase up to a number of shares of Common Stock equal to 25% of the number of Warrant Shares issued pursuant to the undersigned’s exercise hereunder, which New Warrant shall be substantially in the form of the Existing Warrants, and will be exercisable 12 months following the date hereof (the “Initial Exercise Date”), and have a term of exercise of 6 months from the Initial Exercise Date, and an exercise price equal to $6.20. The original New Warrant certificate(s) will be delivered within two Business Days following the date hereof. Further, the terms “Warrant(s)” and “Warrant Shares” under the Purchase Agreement shall be deemed amended so they include the New Warrant and shares of Common Stock issuable upon exercise thereof, including for purposes of Section 4.1 of the Purchase Agreement. Further, the Company hereby amends the clause defining the term “Initial Exercise Date” in the Series AAA Warrants which currently reads “,...on or after January 11, 2018” so it reads “at any time on or after the Closing Date...”. Notwithstanding anything herein to the contrary, in the event the Warrant Exercise would otherwise cause the Holder to exceed the beneficial ownership limitations (“Beneficial Ownership Limitation”) in the Existing Warrants, the Company shall only issue such number of Warrant Shares to the Holder that would not cause such Holder to exceed the maximum number of Warrant Shares permitted thereunder with the balance to be held in abeyance until notice from such Holder that the balance (or portion thereof) may be issued in compliance with such limitations.

 

Expressly subject to the paragraph immediately following this paragraph below, Holder may accept this offer by signing this letter below, with such acceptance constituting Holder's exercise in full of the Existing Warrants for an aggregate exercise price of set forth on the Holder’s signature page hereto (the “Warrants Exercise Price”) on or before 8:00 a.m. ET on October 4, 2017.

 

 

 

 

Additionally, the Company agrees to the representations, warranties and covenants set forth on Annex A attached hereto.

 

From the date hereof until the end of the fifth Trading Day following the date hereof, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents, except the Company shall not be prevented from issuing any shares of Common Stock or Common Stock Equivalents pursuant to any existing warrant, pursuant to the terms thereof as in effect immediately prior to the date hereof. 

 

If this Offer is accepted and the transaction documents are executed on or before 8:00 a.m. on October 4, 2017, then on or before 9:00 a.m. Eastern Time on October 4, 2017, the Company shall file a Current Report on Form 8-K with the Securities and Exchange Commission disclosing all material terms of the transactions contemplated hereunder. The Company shall also file an amendment to the prospectus supplement to the Registration Statement disclosing the amendment to the terms of the Series AAA Warrants within 48 hours. The Company represents, warrants and covenants that, upon acceptance of this offer, the shares underlying the Existing Warrants shall be issued free of any legends or restrictions on resale by Holder and all of the Warrant Shares shall be delivered electronically through the Depository Trust Company within 1 business day of the date the Company receives the Warrants Exercise Price (or, with respect to shares in that would otherwise be in excess of the Beneficial Ownership Limitation, within 2 business days of the date the Company is notified by Holder that its ownership is less than the Beneficial Ownership Limitation), with payment of such exercise price being made from time to time following the date hereof, and in any event being paid in full on or before October 19, 2017. The terms of the Existing Warrants, including but not limited to the obligations to deliver the Warrant Shares, shall otherwise remain in effect as if the acceptance of this offer were a formal Notice of Exercise (including but not limited to any liquidated damages and compensation in the event of late delivery of the Warrant Shares).

 

The Company acknowledges and agrees that the obligations of the Holders under this letter agreement are several and not joint with the obligations of any other holder of any other holders of Common Stock Purchase Warrants of the Company (each, an “Other Holder”) under any other agreement related to the exercise of such warrants (“Other Warrant Exercise Agreement”), and the Holder shall not be responsible in any way for the performance of the obligations of any Other Holder or under any such Other Warrant Exercise Agreement. Nothing contained in this letter agreement, and no action taken by the Holders pursuant hereto, shall be deemed to constitute the Holders and the Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this letter agreement and the Company acknowledges that the Holders and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this letter agreement or any Other Warrant Exercise Agreement. The Company and the Holders confirm that the Holders have independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holders shall be entitled to independently protect and enforce their rights, including, without limitation, the rights arising out of this letter agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose.

 

2

 

 

The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any Other Holder with respect to any Other Warrant Exercise Agreement (or any amendment, modification or waiver thereof), is or will be more favorable to such Other Holder than those of the Holders and this letter agreement. If, and whenever on or after the date hereof, the Company enters into an Other Warrant Exercise Agreement, then (i) the Company shall provide notice thereof to the Holders promptly following the occurrence thereof and (ii) the terms and conditions of this letter agreement shall be, without any further action by the Holders or the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Other Warrant Exercise Agreement (including the issuance of additional Warrant Shares), provided that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this letter agreement shall apply to the Holders as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the Holders. The provisions of this paragraph shall apply similarly and equally to each Other Warrant Exercise Agreement.

 

 

 

***************

 

 

To accept this offer, Holder must counter execute this letter agreement and return the fully executed agreement to the Company at e-mail: MTardugno@Celsion.com, attn.: Michael H. Tardugno, on or before 8:00 am ET on October 4, 2017.

 

Please do not hesitate to call me if you have any questions.

	 	
			 

			
			Sincerely yours,

			

			 

			 

			
			CELSION CORPORATION

			

			 

			 

			
			By: _______________________

			

			 

			
			Name: Michael H. Tardugno

			

			 

			
			Title:      Chairman, President and Chief Executive Officer

			

			

 

Accepted and Agreed to:

 

 

	
			Name of Holder: ________________________________________________________

			
	 
	
			Signature of Authorized Signatory of Holder: _________________________________

			
	 
	
			Name of Authorized Signatory: _______________________________________________

			
	 
	
			Title of Authorized Signatory: ________________________________________________

			
	 
	
			Warrant Shares:

			

 

3

 

 

Aggregate Exercise Price:

New Warrants: (25% of total Series AAA and Series BBB Warrants being exercised): ___________

DTC Instructions:

 

Annex A

 

Representations, Warranties and Covenants of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

(a)     Affirmation of Prior Representations, Warranties and Covenants. The Company hereby represents and warrants to the Holder that the Company’s representations and warranties as set forth in Section 3.1 and as set forth in covenants listed in Article IV of the Securities Purchase Agreement, dated as of July 6, 2017 (the “Purchase Agreement”), together with any updates in the Company’s SEC Reports subsequent to the Purchase Agreement, are true and correct as of the date hereof and have been fully performed as of the date hereof in all material respects except where already so qualified therein. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement.

 

(b)     Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this letter agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board of directors or its stockholders in connection therewith. This letter agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(c)     No Conflicts. The execution, delivery and performance of this letter agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate or articles of incorporation, bylaws or other organizational or charter documents; or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company in connection with, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other material instrument (evidencing Company debt or otherwise) or other material understanding to which such Company is a party or by which any property or asset of the Company is bound or affected; or (iii) subject to the Required Approvals (as defined in the Purchase Agreement), conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected, except, in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect (as defined in the Purchase Agreement).

 

4

 

 

(d)     Nasdaq Corporate Governance. The transactions contemplated under this letter agreement, comply with all rules of the Trading Market.

 

(e)     Capitalization. The number of shares of Common Stock issued and outstanding as of October 2, 2017 was 8,354,679.

 

5

 

 

Annex I

 

 

Series AAA Warrants:

Series BBB Warrants:

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00276-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00276-of-00352.parquet"}]]