Document:

ex_132405.htm

Exhibit 10.1

 

REORGANIZATION AND SHARE EXCHANGE AGREEMENT

 

THIS REORGANIZATION AND SHARE EXCHANGE AGREEMENT (this “Agreement”) is made and entered into as of January 1, 2019, by and among THERMOGENESIS CORP., a Delaware corporation (“ThermoGenesis”), CESCA THERAPEUTICS INC., a Delaware corporation (“Cesca”), CARTXPRESS BIO, INC., a Delaware corporation (“Newco”), BAY CITY CAPITAL FUND V, L.P., a Delaware limited partnership (“BCCF”), and BAY CITY CAPITAL FUND V CO-INVESTMENT FUND, L.P., a Delaware limited partnership (“BCC Co-Investment”, and together with BCCF, the “BCC Funds”).

 

background:

 

A.     Cesca and the BCC Funds collectively hold all of the outstanding shares of common stock, par value $.001 per share, of ThermoGenesis (“ThermoGenesis Common Stock”), with Cesca holding 8,000,000 shares of the ThermoGenesis Common Stock, BCCF holding 1,962,600 shares of ThermoGenesis Common Stock (the “BCCF Shares”), and BCC Co-Investment holding 37,400 shares of ThermoGenesis Common Stock (the “BCC Co-Investment Shares”).

 

B.     ThermoGenesis’ business is currently comprised of (i) the development and commercialization of its CAR-TXpress device based on the intellectual property and assets acquired by ThermoGenesis from SynGen Inc. in July 2017 (the “Cell Processing Business”), and (ii) the cord-blood, point-of-care, and legacy Cesca cell processing device business acquired from Cesca in July 2017 (the “Legacy Cesca Business”).

 

C.     The stockholders and board of directors of ThermoGenesis have approved a reorganization of ThermoGenesis (the “Reorganization”) pursuant to which the Cell-Processing Business and Legacy Cesca Business will be separated as follows:

 

(i) ThermoGenesis will contribute substantially all of the assets and liabilities of the Cell-Processing Business to Newco (the “Contribution”) in exchange for 10,000,000 shares of newly issued shares of common stock, par value $.001 per share, of Newco (“Newco Common Stock”) pursuant to a Contribution Agreement in substantially the form attached as Exhibit A hereto (the “Contribution Agreement”); and

 

(ii) The BCC Funds will then assign and transfer to ThermoGenesis all 2,000,0000 shares of the ThermoGenesis Common Stock held by the BCC Funds in exchange for an aggregate of 2,000,000 shares of the Newco Common Stock issued to ThermoGenesis in the Contribution (the “Exchange”).

 

D.     The parties desire to hereby set forth certain terms and conditions relating to the Reorganization.

 

NOW, THEREFORE, in consideration of the foregoing premises, which shall be deemed an integral part of this Agreement and not as mere recitals hereto, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.     The Contribution. Immediately prior to the Closing (as defined below), ThermoGenesis and Newco will effect the Contribution upon the terms and conditions set forth in the Contribution Agreement.

 

 

 

 

2.     The Exchange. BCCF hereby agrees that, at the Closing and immediately following the Contribution, BCCF will sell, transfer, and assign the BCCF Shares to ThermoGenesis in exchange for the transfer and assignment by ThermoGenesis to BCCF of 1,962,600 of the shares of Newco Common Stock received by ThermoGenesis in the Contribution. BCC Co-Investment hereby agrees that, at the Closing and immediately following the Contribution, BCC Co-Investment will sell, transfer, and assign the BCC Co-Investment Shares to ThermoGenesis in exchange for the transfer and assignment by ThermoGenesis to BCCF of 37,400 of the shares of Newco Common Stock received by ThermoGenesis in the Contribution.

 

3.     Additional Covenants of the Parties. The parties further covenant and agree that:

 

3.1     Immediately prior to the Closing, Newco will file with the Delaware Secretary of State an Amended and Restated Certificate of Incorporation of Newco in substantially the form attached as Exhibit B hereto (the “Restated Certificate”);

 

3.2     Newco, ThermoGenesis, and the BCC Funds shall, at the Closing, enter into a Right of First Refusal and Co-Sale Agreement in substantially the form attached as Exhibit C hereto (the “First Refusal Agreement”);

 

3.3     Newco and the BCC Funds shall, at the Closing, enter into an Investors’ Rights Agreement in substantially the form attached as Exhibit D hereto (the “Investors’ Rights Agreement”); and

 

3.4     Newco, ThermoGenesis, and the BCC Funds shall, at the Closing, enter into a Voting Agreement in substantially the form attached as Exhibit E hereto (the “Voting Agreement”).

 

4.     Closing. The closing of the Exchange (the “Closing”) shall be consummated on the date of this Agreement immediately following the Contribution remotely via the exchange of documents and other deliverables by execution and delivery of all necessary documents and other deliverables by each party hereto by overnight mail, electronic mail or such other method mutually agreed to by the parties, or at such other time, date or place as the parties may mutually agree upon in writing. At the Closing:

 

4.1     BCCF will (i) deliver to ThermoGenesis all certificates representing the BCCF Shares, duly endorsed in blank or accompanied by duly executed stock powers, and (ii) deliver to ThermoGenesis and Newco a duly executed counterpart of the First Refusal Agreement, Investors’ Rights Agreement, and Voting Agreement;

 

4.2     BCC Co-Investment will (i) deliver to ThermoGenesis all certificates representing the BCC Co-Investment Shares, duly endorsed in blank or accompanied by duly executed stock powers, and (ii) deliver to ThermoGenesis and Newco a duly executed counterpart of the First Refusal Agreement, Investors’ Rights Agreement, and Voting Agreement;

 

4.3     ThermoGenesis will (i) deliver to BCCF one or more certificates evidencing the Newco Common Stock to be transferred to BCCF in the Exchange, duly endorsed in blank or accompanied by duly executed stock powers, (ii) deliver to BCC Co-Investment one or more certificates evidencing the Newco Common Stock to be transferred to BCC Co-Investment in the Exchange, duly endorsed in blank or accompanied by duly executed stock powers, (iii) deliver to the other parties to this Agreement evidence that the Contribution has been completed, and (iv) deliver to the BCC Funds and Newco a duly executed counterpart of the First Refusal Agreement and the Voting Agreement; and

 

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4.4     Newco will deliver to the other parties to this Agreement the following: (i) a copy the Restated Certificate certified by the Secretary of State of the State of Delaware, (ii) evidence confirming the prior issuance of 10,000,000 shares of Newco Common Stock to ThermoGenesis pursuant to the Contribution, (iii) duly executed counterparts of the First Refusal Agreement, Investors’ Rights Agreement, and Voting Agreement, (iv) a certificate of the Secretary of State of the State of Delaware certifying as to the good standing of Newco in the State of Delaware, and (v) a copy of the bylaws of Newco certified by the Secretary of Newco.

 

5.     ThermoGenesis Exit Payment. In consideration of the obligations and agreements of the BCC Funds herein, Cesca hereby agrees that, in the event of a ThermoGenesis Sale (as defined below), Cesca agrees that it will pay to BCCF an amount in cash equal to twenty percent (20%) of the amount by which the Net Sale Proceeds (as defined below) from the ThermoGenesis Sale exceed Eight Million U.S. Dollars (USD $8,000,000) (a “ThermoGenesis Exit Payment”). The ThermoGenesis Exit Payment will be paid in immediately available funds within ten (10) days of the closing of a ThermoGenesis Sale. The ThermoGenesis Exit Payment will be made in U.S. dollars, and if the Net Sale Proceeds are paid in a foreign currency, the calculation of the amount of the ThermoGenesis Exit Payment will be determined based on the exchange rate in effect on the date the ThermoGenesis Exit Payment is made by Cesca. For purposes hereof, the following definitions and additional terms shall apply:

 

5.1     “ThermoGenesis Sale” means either of the following transactions that close on or before the third (3rd) anniversary of the date of this Agreement: (i) a sale of a majority or more of the then-outstanding equity interests of ThermoGenesis in a single transaction or series of related transactions, to a single buyer or multiple buyers, but excluding any buyer that is a direct or indirect Subsidiary of Cesca, or (ii) the sale by ThermoGenesis of all or substantially of its assets, in a single transaction or series of related transactions, to a single buyer or multiple buyers, but excluding any buyer that is a direct or indirect Subsidiary of Cesca. For purposes of clarification, the issuance of new equity interests by ThermoGenesis shall not be deemed to be a ThermoGenesis Sale under this Agreement.

 

5.2     “Net Sale Proceeds” means the aggregate consideration actually received by Cesca or ThermoGenesis, as the case may be, from the buyer(s) in the ThermoGenesis Sale minus (i) the transaction expenses of Cesca and ThermoGenesis relating to the ThermoGenesis Sale, and (ii) any indebtedness and other liabilities of ThermoGenesis that are retained by ThermoGenesis following the ThermoGenesis Sale. In the event that any of the consideration payable to Cesca or ThermoGenesis is subject to contingency, deferral, or escrow, then the portion of the ThermoGenesis Exit Payment attributable to the contingent, deferred, or escrowed consideration shall not be payable until ten (10) days after the actual receipt by ThermoGenesis or Cesca, as the case may be, of such consideration on a non-contingent and unrestricted basis. In the event that any of the consideration payable to Cesca or ThermoGenesis is paid in a form other than immediately available cash funds, then for purposes of calculating Net Sale Proceeds, such consideration shall be valued at its fair market value as reasonably determined in good faith by Cesca.

 

5.3     “Subsidiary” means any entity in which Cesca directly, or indirectly through other Subsidiaries, owns at least a majority of the outstanding voting equity interests.      

 

6.     Representations and Warranties of BCC Funds. Each BCC Fund hereby represents and warrants, severally not jointly, to Newco, ThermoGenesis, and Cesca as follows:

 

6.1     Right, Power and Authority; Authorization. The execution and delivery of this Agreement by the BCC Fund and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary action on the part of the BCC Fund, and no further consent or action is required by the BCC Fund or its shareholders, members, partners, officers, directors, managers, employees or agents. The BCC Fund has the absolute and unrestricted right, power, authority, and capacity to enter into this Agreement and to transfer the BCCF Shares or BCC Co-Investment Shares (as applicable) to ThermoGenesis in accordance with the terms of this Agreement and to otherwise consummate the transactions contemplated by this Agreement. This Agreement has been duly executed by the BCC Fund and constitutes the valid and binding obligation of the BCC Fund, enforceable against the BCC Fund in accordance with its terms. The BCC Fund has not created any interest or equity (including any right to acquire, option or right of pre-emption) or any mortgage, charge, pledge, lien, assignment, hypothecation, security, title, retention or any other security agreement or arrangement in respect of any of the BCCF Shares or BCC Co-Investment Shares (as applicable).

 

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6.2     No Conflicts. The BCC Fund’s execution, delivery, and performance of this Agreement and its consummation of the transactions contemplated hereby will not conflict with or result in a violation of, the BCC Fund’s organizational documentation. The BCC Fund is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other governmental authority or other person or entity in connection with the execution, delivery and performance by the BCC Fund of this Agreement.

 

6.3     Valid Title. The BCC Fund has and will transfer to ThermoGenesis in accordance with the terms of this Agreement, good, valid and marketable title to the BCCF Shares or BCC Co-Investment Shares, free and clear of any and all security interests, pledges, claims, liens, encumbrances or other rights of any other person or entity.

 

6.4     Investment Representation. The BCC Fund has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Newco Common Stock received by it in the Exchange, and has so evaluated the merits and risks of such investment. The BCC Fund is able to bear the economic risk of an investment in Newco Common Stock for an indefinite period of time and, at the present time, is able to afford a complete loss of such investment. The BCC Fund further acknowledges that the shares of Newco Common Stock to be acquired by the BCC Fund have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on the “private offering” exemption provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated pursuant to the Securities Act, and that the Newco Common Stock will bear the following legend or one substantially similar thereto:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, OR AN AVAILABLE EXEMPTION THEREUNDER, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

6.5     Agents or Brokers. The BCC Fund has taken no action which would give rise to any claim by any person or entity for finder’s fees, brokerage or other commissions relating to this Agreement or the transactions contemplated hereby.

 

7.     Representations and Warranties of Cesca, ThermoGenesis, and Newco. Each of Cesca, ThermoGenesis, and Newco (the “Cesca Parties”), severally and not jointly, represents and warrants to the BCC Funds as follows:

 

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7.1     Due Organization. The Cesca Party has been duly organized and validly exists as a corporation in good standing under the laws of the State of Delaware, with all requisite power and authority to conduct its business.

 

7.2     Right, Power and Authority; Authorization. The Cesca Party has the requisite corporate power and authority to execute, deliver, and perform its obligations under this Agreement. The execution and delivery of this Agreement by the Cesca party and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary action on the part of the Cesca Party, and no further consent or action is required by the Cesca Party, its board of directors, or its stockholders. This Agreement, once executed by the Cesca Party and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Cesca Party, enforceable against the Cesca Party in accordance with its terms.

 

7.3     No Conflict. The Cesca Party’s execution, delivery, and performance of this Agreement and its consummation of the transactions contemplated hereby will not conflict with or result in a violation of its certificate of incorporation or bylaws.

 

7.4     Newco Shares. The shares of Newco Common Stock to be acquired by the BCC Funds in the Exchange have been duly authorized and are validly issued, fully paid, and non-assessable and will not be sold in violation of statutory or contractual preemptive rights, resale rights, rights of first refusal, or similar rights, or are they subject to any liens, claims, or encumbrances.

 

7.5     Funding of Newco. Based on the current business plan and budget for the Cell-Processing Business, Cesca has included in its budget for fiscal year 2018 the funding of the anticipated operating losses Newco through one or more loans by Cesca for fiscal year 2018. In the event that Cesca provides funding to support operating losses of Newco in 2019 and beyond through additional loans, funds loaned will be at an interest rate at least equal to Cesca’s cost of capital and repayment will be required as soon as Newco is in a cash position to repay.

 

7.6     Agents or Brokers. The Cesca Party has taken no action which would give rise to any claim by any person or entity for finder’s fees, brokerage or other commissions relating to this Agreement or the transactions contemplated hereby.

 

8.     Conditions Precedent to the Obligations of BCC Funds. The obligation of the BCC Funds to consummate the Exchange and perform their respective obligations under Section 4 above is subject to the satisfaction or written waiver of the following conditions on or before the Closing:

 

8.1     The representations and warranties set forth in Section 7 hereof shall be true and correct at and as of the Closing as though then made and as though the Closing date was substituted for the date of this Agreement throughout such representations and warranties; and

 

8.2      The Cesca Parties shall have performed all of the covenants and agreements required to be performed by them under this Agreement prior to the Closing.

 

9.     Conditions Precedent to the Obligations of Cesca Parties. The obligation of the Cesca Parties to perform their respective obligations in Section 5 above is subject to the satisfaction or written waiver of the following conditions on or before the Closing:

 

9.1     The representations and warranties set forth in Section 6 hereof shall be true and correct at and as of the Closing as though then made and as though the Closing date was substituted for the date of this Agreement throughout such representations and warranties; and

 

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9.2      The BCC Funds shall have performed all of the covenants and agreements required to be performed by them under this Agreement prior to the Closing.

 

10.     Termination. Any of the Cesca Parties shall have the right to terminate this Agreement by written notice to the BCC Funds in the event that the Closing shall not have occurred by the thirtieth (30th) day following the date of this Agreement, unless the failure to fulfill the conditions for Closing are due to any intentional or willful act or omission by a Cesca Party. Either of the BCC Funds shall have the right to terminate this Agreement by written notice to the Cesca Parties in the event that the Closing shall not have occurred by the thirtieth (30th) day following the date of this Agreement, unless the failure to fulfill the conditions for Closing are due to any intentional or willful act or omission by a BCC Fund.

 

11.     Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 11) set forth below the parties’ signature lines on this Agreement.

 

12.     Miscellaneous.

 

12.1     Expenses. Except as otherwise expressly provided herein, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

 

12.2     Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

12.3     Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

12.4     Entire Agreement. This Agreement, together with the exhibits hereto, constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

 

12.5     Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. No party may assign its rights or obligations hereunder without the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

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12.6

 

12.7     Amendment and Modification; Waiver.  This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

12.8     Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction).

 

ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF CALIFORNIA IN EACH CASE LOCATED IN THE CITY OF SAN FRANCISCO AND COUNTY OF SAN FRANCISCO, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.8.

 

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12.9     Specific Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

 

12.10     Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

12.11     Public Announcements. Unless otherwise required by applicable law or stock exchange requirements (based upon the reasonable advice of counsel), no party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the other parties (which consent shall not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such announcement. The parties agree that no announcement or public statement regarding the transactions contemplated by this Agreement shall be made prior to the filing of a Current Report on Form 8-K by Cesca disclosing the Reorganization.

 

 

 

 

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

 

 

CESCA THERAPEUTICS INC.

 

By:     /s/ Xiaochun Xu

Xiaochun (Chris) Xu, President

 

 

Address:

2711 Citrus Road

Rancho Cordova, California 95742

Attention: Xiaochun (Chris) Xu, President

Email: cxu@cescatherapeutics.com

Facsimile: 916-200-2874

 

 

THERMOGENESIS Corp.

 

By:     /s/ Haihong Zhu

Haihong Zhu, President

 

 

Address:

2711 Citrus Road

Rancho Cordova, California 95742

Attention: Haihong Zhu, President

Email: hzhu@thermogenesis.com

Facsimile: 916-200-2874

 

 

CARTXPRESS BIO, INC.

 

By:     /s/ Haihong Zhu

Haihong Zhu, President

 

Address:

2711 Citrus Road

Rancho Cordova, California 95742

Attention: Haihong Zhu, President

Email: hzhu@thermogenesis.com

Facsimile: 916-200-2874

 

 

 

 

 

BAY CITY CAPITAL FUND V, L.P.

 

By:     Bay City Capital Management V LLC

Its:     General Partner

 

 

By:     Bay City Capital LLC

Its:     Manager

 

 

By:     /s/ Carl Goldfischer

Name:     Carl Goldfischer

Title:     MD

 

 

 

Address:

Bay City Capital LLC

750 Battery Street, Suite 400

San Francisco, CA 94111

 

 

BAY CITY CAPITAL FUND V CO-INVESTMENT FUND, L.P.

 

By: Bay City Capital Management V LLC

Its: General Partner

 

 

By:     Bay City Capital LLC

Its:     Manager

 

By:     /s/ Carl Goldfischer

Name:     Carl Goldfischer

Title:     MD

 

Address:

Bay City Capital LLC

750 Battery Street, Suite 400

San Francisco, CA 94111

 

 

 

 

EXHIBIT A

 

FORM OF CONTRIBUTION AGREEMENT

 

 

 

 

CONTRIBUTION AGREEMENT

 

 

THIS CONTRIBUTION AGREEMENT (this “Agreement”) is made effective as of January 1, 2019 (the “Contribution Date”) by and between THERMOGENESIS CORP., a Delaware corporation (the “Stockholder”), and CARTXPRESS BIO, INC., a Delaware corporation (the “Company”).

 

RECITALS

 

A.     The Stockholder is engaged, as one of its businesses, in the development and commercialization of its CAR-TXpress device based on the intellectual property and assets acquired by the Stockholder from SynGen Inc. in July 2017 (the “Cell-Processing Business”) and holds various assets used or held for use in the Cell-Processing Business, including the Contributed Assets (as defined below);

 

B.     The Stockholder is also an obligor under the Assumed Liabilities (as defined below);

 

C.     The Board of Directors of the Stockholder and the Board of Directors of the Company have determined that a contribution by the Stockholder to the Company of the Contributed Assets in exchange for 10,000,000 newly issued shares of common stock, par value $0.001 per share, in the Company (the “Shares”) and the assumption by the Company of the Assumed Liabilities (the “Contribution”) is in the best interests of the Stockholder and its shareholders;

 

D.     The Company was formed solely for the purpose of the Contribution and has no assets immediately prior to the Contribution, and the Shares constitute the first issuance of capital stock of the Company;

 

E.     As a result of the Contribution, Stockholder will become the first and only stockholder of the Company; and

 

F.     The Stockholder and Company intend for the Contribution to qualify as tax-free contributions of property pursuant to Section 351 of the Code.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing, and of the covenants and agreements contained herein, the parties hereto agree as follows:

 

ARTICLE I. 

CONTRIBUTION 

 

Subject to the terms and conditions of this Agreement, the Stockholder hereby grants, contributes, conveys, assigns, transfers and delivers to the Company, as of the Contribution Date, all of the Stockholder’s right, title and interest in and to the Contributed Assets. In exchange for the Stockholder’s contribution of the Contributed Assets, the Company shall assume the Assumed Liabilities and issue Ten Million (10,000,000) Shares to the Stockholder upon such contribution. It is intended by the parties that the contribution of the Contributed Assets being made by the Stockholder to the Company and the assumption of the Stockholder’s Assumed Liabilities by the Company hereunder will qualify as a tax-exempt transaction pursuant to Section 351 of the Code. In furtherance of the foregoing, the Stockholder and the Company shall execute and deliver to the other the Bill of Sale and Assignment, the Assumption Agreement, and the Contract Assignment (as those terms are defined below).

 

 

 

 

 

ARTICLE II.

 

DEFINITIONS

 

When used in this Agreement, the following terms shall have the meanings specified:

 

“Agreement” shall have the meaning set forth in the Preamble.

 

“Assumed Liabilities” shall mean all of the accounts payable of the Stockholder relating to the Cell-Processing Business.

 

“Assumption Agreement” shall mean Assignment and Assumption of Assumed Liabilities, in the form of EXHIBIT A attached hereto, by which the Assumed Liabilities are to be assumed by the Company.

 

“Bill of Sale and Assignment” shall mean the instrument in the form of EXHIBIT B attached hereto, by which the Stockholder will convey to the Company its right, title and interest in and to the Contributed Assets.

 

“Business Employees” shall mean those employees listed on EXHIBIT E attached hereto.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended, modified, or superseded.

 

“Company” shall have the meaning set forth in the Preamble.

 

“Contract Assignment” shall mean the Assignment and Assumption of Contracts, in the form of EXHIBIT C attached hereto, by which the Stockholder assigns the Contracts to the Company and the Company assumes certain rights and obligations of the Stockholder under the Contracts.

 

“Contracts” shall mean all of the agreements of the Stockholder set forth on EXHIBIT G hereto.

 

“Contributed Assets” shall mean the right, title and interest of the Stockholder in and to the following tangible and intangible assets used or held for use in the operation of the Cell-Processing Business: (a) $0 in cash, (b) prepaid expenses, security deposits, deposits, accounts, and accounts receivable relating solely to the Cell-Processing Business, (b) all inventory, finished good, raw materials, work in progress, packaging, supplies, parts and other inventories of the Cell-Processing Business, (c) the rights and benefits under the Contracts, (d) the Equipment, (e) the Records, (f) Intellectual Property and rights with respect to Intellectual Property, (g) the Specified Assets, and (h) warranties and rights with respect to the foregoing assets.

 

“Cell-Processing Business” shall have the meaning set forth in the Recitals.

 

“Contribution” shall have the meaning set forth in the Recitals.

 

“Contribution Date” shall have the meaning set forth in the Preamble.

 

“Equipment” shall mean all of the equipment and other tangible personal property listed on EXHIBIT D.

 

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“Intellectual Property” shall mean (i) those patents and trademarks listed on EXHIBIT F attached hereto and (ii) any other inventions (whether or not protected or protectable under patent laws), works of authorship, information fixed in any tangible medium of expression (whether or not protected or protectable under copyright laws), moral rights, trade secrets, developments, designs, applications, processes, know-how, discoveries, ideas (whether or not protected or protectable under trade secret laws), and all other subject matter protected or protectable under patent, copyright, moral right, trademark, trade secret, or other laws that relate primarily to the Cell-Processing Business.

 

“Records” shall mean files and records, in whatever form, including charts, technical information and data, regulatory information, design history, correspondence, books of account, employment records, client files, purchase and sales records and correspondence and other written materials of the Stockholder, that relate solely to the Cell-Separation Business.

 

“Retained Liabilities” shall mean any obligations (including debt obligations) of the Stockholder that are unrelated to the Cell-Separation Business.

 

“Shares” shall have the meaning set forth in the Recitals.

 

“Stockholder” shall have the meaning set forth in the Preamble.

 

ARTICLE III.

 

NO ASSUMPTION OF CERTAIN LIABILITIES

 

The Company is not assuming, and shall not be deemed to have assumed, any of the Retained Liabilities.

 

ARTICLE IV.

 

NON-TRANSFERABLE CONTRIBUTED ASSETS

 

It is understood that certain Contributed Assets may not be immediately transferable or assignable to the Company, and this Agreement will not constitute an assignment of any such non-transferable assets.  In such event, (a) the Stockholder will use its best efforts (and bear the respective costs of such efforts) to obtain any consent or authorization which may be required to transfer or assign the non-transferable assets to the Company or to remove or eliminate any impediment preventing the transfer or assignment of the non-transferable assets to the Company, (b) the Stockholder will grant to the Company full use and benefit of the Stockholder’s interest in the non-transferable assets to the extent permitted by the terms of or applicable to such non-transferable assets, it being the intent of the parties that the Company have the sole benefit of the non-transferable assets as though it were the sole owner thereof, (c) the Stockholder will take best efforts (and bear the respective costs of such efforts) to preserve the value of the non-transferable assets, (d) the Stockholder will not transfer or assign the non-transferable assets to any person or entity other than the Company, (e) the Stockholder will transfer or assign the non-transferable assets to the Company as soon as practicable once such transfer or assignment can be effected, and (f) the Company will be responsible for obligations relating to the non-transferable assets arising or occurring after the Contribution Date as if they had been transferred or assigned to the Company in accordance with the terms of this Agreement.  If and to the extent an arrangement acceptable to the Company with respect to the transfer of such non-transferable assets cannot be made, then the Company, upon written notice to the Stockholder, shall have no obligation under Article I or otherwise with respect to any such Contract, property, right or other asset, and such Contract, property, right or other asset shall not be deemed to be a Contributed Asset and the related liability shall be deemed a Retained Liability.

 

3

 

 

 

ARTICLE V.

 

BUSINESS EMPLOYEES

 

As of the Contribution Date, the Business Employees will cease to be employees of the Stockholder and will become employees of the Company.

 

ARTICLE VI.

 

COMPLETENESS OF AGREEMENT

 

This Agreement represents the entire contract between the parties with respect to the subject matter hereof and supersedes all offers, proposals, statements, representations and agreements with respect to the subject matter hereof. This Agreement may not be amended except by action of each of the parties hereto set forth in an instrument in writing signed on behalf of each of the parties hereto.

 

ARTICLE VII.

CAPTIONS

 

The captions to the Articles and Sections contained in this Agreement are for reference only, do not form a substantive part of this Agreement and shall not restrict nor enlarge any substantive provision of this Agreement.

 

ARTICLE VIII.

APPLICABLE LAW

 

This Agreement, and all other documents given in connection herewith, shall be construed in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of laws.

 

ARTICLE IX.

COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, each of which shall be considered an original but all of which shall constitute but one and the same Agreement by and among the parties.

 

ARTICLE X.

SEVERABILITY

 

The invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. Furthermore, upon the request of any party hereto, the parties to this Agreement shall add, in lieu of such invalid or unenforceable provisions, provisions as similar in terms to such invalid or unenforceable provisions as may be possible and legal, valid and enforceable.

 

4

 

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first above written.

 

	
			 

			 

				
			COMPANY:

			 

			CARTXPRESS BIO, INC.

			 

			

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			 

			 

			 

			 

			
	 	
			STOCKHOLDER:

			 

			THERMOGENESIS CORP.

			 

			 

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			

 

 

 

 

 

LIST OF EXHIBITS

 

	
			A

				
			Assignment and Assumption Agreement (Assumed Liabilities)

			

	
			B

				
			Bill of Sale and Assignment

			

	
			C

				
			Assignment and Assumption Agreement (Contracts)

			

	
			D

				
			Equipment

			

	
			E

				
			Business Employees

			

	
			F

				
			Intellectual Property

			

	
			G

				
			Contracts Being Assigned

			

 

 

 

Signature Page to Contribution Agreement

 

 

 

 

 

 

EXHIBIT A

ASSIGNMENT AND ASSUMPTION AGREEMENT

(ASSUMED LIABILITIES)

 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”) is made effective the 1st day of January, 2019, by and between THERMOGENESIS CORP., a Delaware corporation (“Stockholder”), and CARTXPRESS BIO, INC., a Delaware corporation (“Company”).

 

R E C I T A L S:

 

WHEREAS, Stockholder and Company are parties to that certain Contribution Agreement dated effective January 1, 2019 (the “Contribution Agreement”); and

 

WHEREAS, pursuant to the Contribution Agreement, Stockholder has agreed to assign the Assumed Liabilities (as such term is defined in the Contribution Agreement) to Company and Company has agreed to accept such assignment and assume the Assumed Liabilities.

 

A G R E E M E N T:

 

NOW, THEREFORE, pursuant to the Contribution Agreement and in consideration of the premises stated therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed that:

 

	
			1.

				
			Assignment. Stockholder hereby assigns to Company all of Stockholder’s obligations under the Assumed Liabilities.

			

 

	
			2.

				
			Assumption. Company hereby accepts the foregoing assignment. From and after the date hereof, Company hereby assumes and agrees to pay, perform and be bound by all of Stockholder’s covenants, terms and obligations under the Assumed Liabilities, whether such obligations accrue before, on, or after the date hereof.

			

 

	
			3.

				
			Contribution Agreement. This Assignment is subject in all respects to the terms and conditions of the Contribution Agreement. Nothing contained in this Assignment shall be deemed to supersede, modify or amend any of the covenants and agreements of Stockholder or Company contained in the Contribution Agreement, specifically including, without limitation, the definition of “Assumed Liabilities” set forth therein.

			

 

	
			4.

				
			Benefit. This Assignment is intended solely to benefit the parties hereto and shall not create any liabilities to any other persons or entities or expand any liabilities to any other persons or entities.

			

 

 

[Signature Page Follows]

 

A-1

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first set forth above.

 

	 	
			COMPANY:

			 

			CARTXPRESS BIO, INC.

			 

			

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			 

			 

			 

			 

			
	 	
			STOCKHOLDER:

			 

			THERMOGENESIS CORP.

			 

			 

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			

 

A-2

 

 

 

EXHIBIT B

 

BILL OF SALE AND ASSIGNMENT

 

THIS BILL OF SALE AND ASSIGNMENT (this “Bill of Sale”) is made the 1st day of January, 2019, by and between THERMOGENESIS CORP., a Delaware corporation (“Stockholder”), and CARTXPRESS BIO, INC., a Delaware corporation (“Company”).

 

WHEREAS, pursuant to that certain Contribution Agreement dated effective January 1, 2019 (the “Contribution Agreement”) by and among Company and Stockholder, Stockholder has agreed to contribute and assign to Company and Company has agreed to receive and accept from Stockholder, for the consideration and upon the terms and conditions set forth in the Contribution Agreement, the Contributed Assets (as such term is defined in the Contribution Agreement).

 

NOW, THEREFORE, pursuant to the Contribution Agreement and in consideration of the premises stated therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed that:

 

	
			1.

				
			Conveyance. Stockholder hereby sells, assigns, conveys, transfers and delivers to Company all of Stockholder’s right, title and interest in and to the Contributed Assets, as that term is defined in the Contribution Agreement.

			

 

	
			2.

				
			Acceptance. Company hereby accepts the foregoing sale and assignment.

			

 

IN WITNESS WHEREOF, the parties hereto have executed this Bill of Sale and Assignment as of the date first set forth above.

 

	 	
			STOCKHOLDER:

			 

			THERMOGENESIS CORP.

			 

			

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			 

			 

			 

			 

			
	 	
			COMPANY:

			 

			CARTXPRESS BIO, INC.

			 

			 

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			

 

B-1

 

 

 

EXHIBIT C

ASSIGNMENT AND ASSUMPTION AGREEMENT

(CONTRACTS)

 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”) is made effective the 1st day of January, 2019, by and between THERMOGENESIS CORP., a Delaware corporation (“Stockholder”), and CARTXPRESS BIO, INC., a Delaware corporation (“Company”).

 

R E C I T A L S:

 

WHEREAS, Stockholder and Company are parties to that certain Contribution Agreement dated effective January 1, 2019 (the “Contribution Agreement”); and

 

WHEREAS, pursuant to the Contribution Agreement, Stockholder has agreed to assign the Contracts (as such term is defined in the Contribution Agreement) to Company and Company has agreed to accept such assignment and assume certain of Stockholder’s obligations and liabilities under the Contracts.

 

NOW, THEREFORE, pursuant to the Contribution Agreement and in consideration of the premises stated therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed that:

 

	
			1.

				
			Assignment. Stockholder hereby assigns to Company all of Stockholder’s right, title and interest in and to, as well as all Stockholder’s obligations under, the Contracts (as that term is defined in the Contribution Agreement).

			

 

	
			2.

				
			Assumption. Company hereby accepts the foregoing assignment. From and after the date hereof, Company hereby assumes and agrees to pay, perform and be bound by all of the covenants, terms and obligations contained in the Contracts to be performed by Stockholder under the Contracts, whether such obligations accrued before, on, or after the date hereof.

			

 

	
			3.

				
			Contribution Agreement. This Assignment is subject in all respects to the terms and conditions of the Contribution Agreement. Nothing contained in this Assignment shall be deemed to supersede, modify or amend any of the covenants, agreements, representations or warranties of Stockholder or Company contained in the Contribution Agreement.

			

 

	
			4.

				
			Benefit. This Assignment is intended solely to benefit the parties hereto and shall not create any liabilities to any other persons or entities or expand any liabilities to any other persons or entities.

			

 

 

[Signature Page Follows]

 

C-1

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first set forth above.

 

	 	
			STOCKHOLDER:

			 

			THERMOGENESIS CORP.

			 

			

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			 

			 

			 

			 

			
	 	
			COMPANY:

			 

			CARTXPRESS BIO, INC.

			 

			 

			By:                                                                  

			Name: Haihong Zhu

			Title: President

			

 

C-2

 

 

EXHIBIT B

 

FORM OF RESTATED CERTIFICATE

 

See Exhibit 10.5 of this Form 8-K.

 

 

 

 

EXHIBIT C

 

FORM OF FIRST REFUSAL AGREEMENT

 

See Exhibit 10.4 of this Form 8-K.

 

 

 

 

EXHIBIT D

 

FORM OF INVESTORS’ RIGHTS AGREEMENT

 

See Exhibit 10.3 of this Form 8-K.

 

 

 

 

EXHIBIT E

 

FORM OF VOTING AGREEMENT

 

See Exhibit 10.2 of this Form 8-K.ex_132406.htm

Exhibit 10.2

 

CARTXPRESS BIO, INC.

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT is made and entered into as of this 1st day of January, 2019 by and among CARTXpress Bio, Inc., a Delaware corporation (the “Company”), and each holder of the Company’s Common Stock, $0.001 par value per share (“Common Stock”), listed on Schedule A (together with any subsequent investors or transferees who become parties hereto as “Stockholders” pursuant to Subsections 5.1(a) or 5.2 below, the “Stockholders”).

 

RECITALS

 

	 	
			A.

				
			On the date hereof, the Company, ThermoGenesis Corp., a Delaware corporation (“ThermoGenesis”), Cesca Therapeutics Inc., a Delaware corporation and the majority stockholder of ThermoGenesis, Bay City Capital Fund V, L.P. and Bay City Capital Fund V Co-Investment Fund, L.P. (together, “Bay City Capital”) entered into a Reorganization and Share Exchange Agreement pursuant to which such parties agreed to effect a reorganization of ThermoGenesis (the “Reorganization”).

			

 

	 	
			B.

				
			Pursuant to the Reorganization, Bay City Capital acquired an aggregate of 2,000,000 shares of Common Stock from ThermoGenesis in exchange for its stock in ThermoGenesis, and ThermoGenesis retained 8,000,000 shares of Common Stock.

			

 

	 	
			C.

				
			In connection with the Reorganization, the parties desire to provide the Stockholders with the right, among other rights, to designate the election of certain members of the board of directors of the Company (the “Board”) in accordance with the terms of this Agreement.

			

 

	 	
			D.

				
			The parties also desire to enter into this Agreement to set forth their agreements and understandings with respect to how shares of the Company’s capital stock held by them will be voted on, or tendered in connection with, an acquisition of the Company.

			

 

NOW, THEREFORE, the parties agree as follows:

 

1.          Voting Provisions Regarding Board of Directors.

 

1.1     Size of the Board. Each Stockholder agrees to vote, or cause to be voted, all Shares (as defined below) owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that the size of the Board shall be set and remain at five (5) directors. For purposes of this Agreement, the term “Shares” shall mean and include any securities of the Company the holders of which are entitled to vote for members of the Board, including without limitation, all shares of Common Stock, by whatever name called, now owned or subsequently acquired by a Stockholder, however acquired, whether through stock splits, stock dividends, reclassifications, recapitalizations, similar events or otherwise.

 

1.2     Board Composition. Each Stockholder agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that at each annual or special meeting of stockholders at which an election of directors is held or pursuant to any written consent of the stockholders, the following persons shall be elected to the Board:

 

 

 

 

(a)     One person designated by Bay City Capital Fund V, L.P. or its Affiliates (the “Bay City Designee”), for so long as Bay City Capital or its Affiliates owns at least five percent (5%) of the Company’s outstanding Common Stock, which individual shall initially be Carl Goldfischer.

 

(b)     Two individuals designated by ThermoGenesis (the “ThermoGenesis Designees”), which individuals shall initially be Chris Xu and Haihong Zhu; provided, however, that ThermoGenesis shall be entitled to designate only one ThermoGenesis Designee from and after such time as ThermoGenesis, together with its Affiliates, ceases to own at least thirty percent (30%) of the Company’s Common Stock (on an as-converted basis).

 

(c)     One individual who qualifies as an “independent director” under Rule 5605 of The NASDAQ Marketplace Rules and who is an industry expert, to be designated by ThermoGenesis as soon as practicable after the date hereof.

 

(d)     One individual who qualifies as an “independent director” under Rule 5605 of The NASDAQ Marketplace Rules and who is an industry expert, designated by Bay City Capital Fund V, L.P. or its Affiliates as soon as practicable after the date hereof, for so long as Bay City Capital or its Affiliates owns at least five percent (5%) of the Company’s outstanding Common Stock; provided, however, that any replacement for such initial designee shall be subject to the approval of ThermoGenesis, which approval will not be unreasonably withheld.

 

To the extent that any of clauses (a) through (d) above shall not be applicable, any member of the Board who would otherwise have been designated in accordance with the terms thereof shall instead be voted upon by all the stockholders of the Company entitled to vote thereon in accordance with, and pursuant to, the Certificate of Incorporation of the Company, as may be amended, restated or otherwise modified from time to time (the “Certificate of Incorporation”).

 

For purposes of this Agreement, an individual, firm, corporation, partnership, association, limited liability company, trust or any other entity (collectively, a “Person”) shall be deemed an “Affiliate” of another Person who, directly or indirectly, controls, is controlled by or is under common control with such Person, including, without limitation, any general partner, managing member, officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.

 

1.3     Failure to Designate a Board Member. In the absence of any designation from the Persons or groups with the right to designate a director as specified above, the director previously designated by them and then serving shall be reelected if still eligible to serve as provided herein.

 

1.4     Removal of Board Members. Each Stockholder also agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that:

 

2

 

 

(a)     no director elected pursuant to Subsections 1.2 or 1.4 of this Agreement may be removed from office other than for cause unless (i) such removal is directed or approved by the affirmative vote of the Person entitled under Subsection 1.2 to designate that director or (ii) the Person(s) originally entitled to designate or approve such director pursuant to Subsection 1.2 is no longer so entitled to designate or approve such director;

 

(b)     any vacancies created by the resignation, removal or death of a director elected pursuant to Subsections 1.2 or 1.4 shall be filled pursuant to the provisions of this Section 1; and

 

(c)     upon the request of any party entitled to designate a director as provided in Subsections 1.2(a), 1.2(b), 1.2(c) or 1.2(d) to remove such director, such director shall be removed.

 

All Stockholders agree to execute any written consents required to perform the obligations of this Agreement, and the Company agrees at the request of any party entitled to designate directors to call a special meeting of stockholders for the purpose of electing directors.

 

1.5     No Liability for Election of Recommended Directors. No Stockholder, nor any Affiliate of any Stockholder, shall have any liability as a result of designating a person for election as a director for any act or omission by such designated person in his or her capacity as a director of the Company, nor shall any Stockholder have any liability as a result of voting for any such designee in accordance with the provisions of this Agreement.

 

1.6     No “Bad Actor” Designees. Each Person with the right to designate or participate in the designation of a director as specified above hereby represents and warrants to the Company that, to such Person’s knowledge, none of the “bad actor” disqualifying events described in Rule 506(d)(1)(i)-(viii) promulgated under the Securities Act of 1933, as amended (the “Securities Act”) (each, a “Disqualification Event”), is applicable to such Person’s initial designee named above except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. Any director designee to whom any Disqualification Event is applicable, except for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable, is hereinafter referred to as a “Disqualified Designee”. Each Person with the right to designate or participate in the designation of a director as specified above hereby covenants and agrees (A) not to designate or participate in the designation of any director designee who, to such Person’s knowledge, is a Disqualified Designee and (B) that in the event such Person becomes aware that any individual previously designated by any such Person is or has become a Disqualified Designee, such Person shall as promptly as practicable take such actions as are necessary to remove such Disqualified Designee from the Board and designate a replacement designee who is not a Disqualified Designee.

 

3

 

 

2.           Drag-Along Right.

 

2.1     Definitions. A “Sale of the Company” shall mean either: (a) a transaction or series of related transactions in which a Person, or a group of related Persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company (a “Stock Sale”); or (b) a transaction that qualifies as a “Deemed Liquidation Event” as defined in the Certificate of Incorporation.

 

2.2     Actions to be Taken. In the event that (i) the holders of at least eighty-five percent (85%) of the shares of Common Stock then issued (the “Selling Stockholders”) and (ii) the Board of Directors approve a Sale of the Company in writing, specifying that this Section 2 shall apply to such transaction, then each Stockholder and the Company hereby agree:

 

(a)     if such transaction requires stockholder approval, with respect to all Shares that such Stockholder owns or over which such Stockholder otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Shares in favor of, and adopt, such Sale of the Company (together with any related amendment to the Certificate of Incorporation required in order to implement such Sale of the Company) and to vote in opposition to any and all other proposals that could delay or impair the ability of the Company to consummate such Sale of the Company;

 

(b)     if such transaction is a Stock Sale, to sell the same proportion of shares of capital stock of the Company beneficially held by such Stockholder as is being sold by the Selling Stockholders to the Person to whom the Selling Stockholders propose to sell their Shares, and, except as permitted in Subsection 2.3 below, on the same terms and conditions as the Selling Stockholders;

 

(c)     to execute and deliver all related documentation and take such other action in support of the Sale of the Company as shall reasonably be requested by the Company or the Selling Stockholders in order to carry out the terms and provision of this Section 2, including without limitation executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances) and any similar or related documents;

 

(d)     not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Shares of the Company owned by such party or Affiliate in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically requested to do so by the acquiror in connection with the Sale of the Company;

 

(e)     to refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at any time with respect to such Sale of the Company;

 

(f)     if the consideration to be paid in exchange for the Shares pursuant to this Section 2 includes any securities and due receipt thereof by any Stockholder would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities or (y) the provision to any Stockholder of any information other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors” as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Stockholder in lieu thereof, against surrender of the Shares which would have otherwise been sold by such Stockholder, an amount in cash equal to the fair value (as determined in good faith by the Company) of the securities which such Stockholder would otherwise receive as of the date of the issuance of such securities in exchange for the Shares; and

 

4

 

 

(g)     in the event that the Selling Stockholders, in connection with such Sale of the Company, appoint a stockholder representative (the “Stockholder Representative”) with respect to matters affecting the Stockholders under the applicable definitive transaction agreements following consummation of such Sale of the Company, (x) to consent to (i) the appointment of such Stockholder Representative, (ii) the establishment of any applicable escrow, expense or similar fund in connection with any indemnification or similar obligations, and (iii) the payment of such Stockholder’s pro rata portion (from the applicable escrow or expense fund or otherwise) of any and all reasonable fees and expenses to such Stockholder Representative in connection with such Stockholder Representative’s services and duties in connection with such Sale of the Company and its related service as the representative of the Stockholders, and (y) not to assert any claim or commence any suit against the Stockholder Representative or any other Stockholder with respect to any action or inaction taken or failed to be taken by the Stockholder Representative in connection with its service as the Stockholder Representative, absent fraud or willful misconduct.

 

2.3     Exceptions. Notwithstanding the foregoing, a Stockholder will not be required to comply with Subsection 2.1 above in connection with any proposed Sale of the Company (the “Proposed Sale”) unless:

 

(a)     any representations and warranties to be made by such Stockholder in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such Shares, including but not limited to representations and warranties that (i) the Stockholder holds all right, title and interest in and to the Shares such Stockholder purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of the Stockholder in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by the Stockholder have been duly executed by the Stockholder and delivered to the acquirer and are enforceable against the Stockholder in accordance with their respective terms and (iv) neither the execution and delivery of documents to be entered into in connection with the transaction, nor the performance of the Stockholder’s obligations thereunder, will cause a breach or violation of the terms of any agreement, law or judgment, order or decree of any court or governmental agency;

 

(b)     the Stockholder shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with the Proposed Sale, other than the Company (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any stockholder of any of identical representations, warranties and covenants provided by all stockholders);

 

5

 

 

(c)     the liability for indemnification, if any, of such Stockholder in the Proposed Sale and for the inaccuracy of any representations and warranties made by the Company or its Stockholders in connection with such Proposed Sale, is several and not joint with any other Person (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any stockholder of any of identical representations, warranties and covenants provided by all stockholders), and is pro rata in proportion to, and does not exceed, the amount of consideration paid to such Stockholder in connection with such Proposed Sale; and

 

(d)     upon the consummation of the Proposed Sale, (i) each holder of each class or series of the Company’s stock will receive the same form of consideration for their shares of such class or series as is received by other holders in respect of their shares of such same class or series of stock, and (ii) each holder of Common Stock will receive the same amount of consideration per share of Common Stock as is received by other holders in respect of their shares of Common Stock; provided, however, that, notwithstanding the foregoing, if the consideration to be paid in exchange for the Stockholder Shares pursuant to this Subsection 2.3(d) includes any securities and due receipt thereof by any Stockholder would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities or (y) the provision to any Stockholder of any information other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors” as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Stockholder in lieu thereof, against surrender of the Stockholder Shares which would have otherwise been sold by such Stockholder, an amount in cash equal to the fair value (as determined in good faith by the Company) of the securities which such Stockholder would otherwise receive as of the date of the issuance of such securities in exchange for the Stockholder Shares.

 

2.4     Restrictions on Sales of Control of the Company. No Stockholder shall be a party to any Stock Sale unless all holders of Common Stock are allowed to participate in such transaction and the consideration received pursuant to such transaction is allocated among the parties thereto pro rata based on the number of shares of Common Stock held by such parties, unless the holders of at least eighty-five percent (85%) of the Common Stock elect otherwise by written notice given to the Company at least ten (10) days prior to the effective date of any such transaction or series of related transactions.

 

3.           Remedies.

 

3.1     Covenants of the Company. The Company agrees to use its best efforts, within the requirements of applicable law, to ensure that the rights granted under this Agreement are effective and that the parties enjoy the benefits of this Agreement. Such actions include, without limitation, the use of the Company’s best efforts to cause the nomination and election of the directors as provided in this Agreement.

 

6

 

 

3.2     Irrevocable Proxy and Power of Attorney. Each party to this Agreement hereby constitutes and appoints as the proxies of the party and hereby grants a power of attorney to the President of the Company, and a designee of the Selling Stockholders, and each of them, with full power of substitution, with respect to the matters set forth herein, including without limitation, election of persons as members of the Board in accordance with Section 1 hereto and votes regarding any Sale of the Company pursuant to Section 2 hereof, and hereby authorizes each of them to represent and to vote, if and only if the party (i) fails to vote or (ii) attempts to vote (whether by proxy, in person or by written consent) in a manner which is inconsistent with the terms of this Agreement, all of such party’s Shares in favor of the election of persons as members of the Board determined pursuant to and in accordance with the terms and provisions of Section 1 of this Agreement or to take any action necessary to effect a Sale of the Company pursuant to and in accordance with Section 2 of this Agreement. Each of the proxy and power of attorney granted pursuant to the immediately preceding sentence is given in consideration of the agreements and covenants of the Company and the parties in connection with the transactions contemplated by this Agreement and, as such, each is coupled with an interest and shall be irrevocable unless and until this Agreement terminates or expires pursuant to Section 4 hereof. Each party hereto hereby revokes any and all previous proxies or powers of attorney with respect to the Shares and shall not hereafter, unless and until this Agreement terminates or expires pursuant to Section 4 hereof, purport to grant any other proxy or power of attorney with respect to any of the Shares, deposit any of the Shares into a voting trust or enter into any agreement (other than this Agreement), arrangement or understanding with any person, directly or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of the Shares, in each case, with respect to any of the matters set forth herein.

 

3.3     Specific Enforcement. Each party acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions of this Agreement are not performed by the parties in accordance with their specific terms or are otherwise breached. Accordingly, it is agreed that each of the Company and the Stockholders shall be entitled to an injunction to prevent breaches of this Agreement, and to specific enforcement of this Agreement and its terms and provisions in any action instituted in any court of the United States or any state having subject matter jurisdiction.

 

3.4     Remedies Cumulative. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

4.           Term. This Agreement shall be effective as of the date hereof and shall continue in effect until and shall terminate upon the earliest to occur of (a) a Qualified Public Offering; (b) a Qualified Merger (as such terms are defined in the Investors’ Rights Agreement, of even date herewith, among the Company and each of the investors listed on Schedule A thereto), or (c) the date on which Bay City Capital and its Affiliates, taken together, cease to own at least five percent (5%) of the outstanding shares of Common Stock; provided that the provisions of Section 2 hereof will continue after the closing of any Sale of the Company to the extent necessary to enforce the provisions of Section 2 with respect to such Sale of the Company.

 

7

 

 

5.           Miscellaneous.

 

5.1     Additional Parties.

 

(a)     Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Common Stock after the date hereof, as a condition to the issuance of such shares the Company shall require that any purchaser of shares of Common Stock become a party to this Agreement by executing and delivering (i) the Adoption Agreement attached to this Agreement as Exhibit A, or (ii) a counterpart signature page hereto agreeing to be bound by and subject to the terms of this Agreement as a Stockholder hereunder. Each such person shall thereafter be deemed a Stockholder for all purposes under this Agreement.

 

(b)     In the event that after the date of this Agreement, the Company enters into an agreement with any Person to issue shares of capital stock to such Person (other than to a purchaser of Common Stock described in Subsection 5.1(a) above), then, the Company shall cause such Person, as a condition precedent to entering into such agreement, to become a party to this Agreement by executing an Adoption Agreement in the form attached hereto as Exhibit A, agreeing to be bound by and subject to the terms of this Agreement as a Stockholder and thereafter such person shall be deemed a Stockholder for all purposes under this Agreement.

 

5.2     Transfers. Each transferee or assignee of any Shares subject to this Agreement shall continue to be subject to the terms hereof, and, as a condition precedent to the Company’s recognizing such transfer, each transferee or assignee shall agree in writing to be subject to each of the terms of this Agreement by executing and delivering an Adoption Agreement substantially in the form attached hereto as Exhibit A. Upon the execution and delivery of an Adoption Agreement by any transferee, such transferee shall be deemed to be a party hereto as if such transferee were the transferor and such transferee’s signature appeared on the signature pages of this Agreement and shall be deemed to be a Stockholder. The Company shall not permit the transfer of the Shares subject to this Agreement on its books or issue a new certificate representing any such Shares unless and until such transferee shall have complied with the terms of this Subsection 5.2. Each certificate representing the Shares subject to this Agreement if issued on or after the date of this Agreement shall be endorsed by the Company with the legend set forth in Subsection 5.12.

 

5.3     Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

5.4     Governing Law. This Agreement shall be governed by the internal law of the State of Delaware.

 

5.5     Counterparts. 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.

 

8

 

 

5.6     Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

5.7     Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on Schedule A hereto, or to such email address, facsimile number or address as subsequently modified by written notice given in accordance with this Subsection 5.7. If notice is given to the Company or ThermoGenesis, a copy shall also be sent to:     

 

Foley & Lardner LLP

100 North Tampa Street, Suite 2700

Tampa, Florida 33602-5810

Attention: Curt Creely

Email: ccreely@foley.com

Facsimile: (813) 221-4210

 

and if notice is given to Stockholders, a copy shall also be given to:

 

Stradling Yocca Carlson & Rauth

660 Newport Center Drive, Suite 1600

Newport Beach, CA 92660

Attention: Michael L. Lawhead

Email: mlawhead@sycr.com

Facsimile: (949) 725-5277

 

5.8     Consent Required to Amend, Terminate or Waive. This Agreement may be amended or terminated and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (a) the Company and (b) the holders of at least eighty-five percent (85%) of the shares of Common Stock issued and outstanding. Notwithstanding the foregoing:

 

(a)     this Agreement may not be amended or terminated and the observance of any term of this Agreement may not be waived with respect to any Stockholder without the written consent of such Stockholder unless such amendment, termination or waiver applies to all Stockholders, as the case may be, in the same fashion;

 

(b)     any provision hereof may be waived by the waiving party on such party’s own behalf, without the consent of any other party; and

 

(c)     Subsections 1.2(a) and 1.2(d) of this Agreement shall not be amended or waived without the written consent of Bay City Capital Fund V, L.P. and Subsections 1.2(b) and 1.2(c) of this Agreement shall not be amended or waived without the written consent of ThermoGenesis.

 

9

 

 

The Company shall give prompt written notice of any amendment, termination or waiver hereunder to any party that did not consent in writing thereto. Any amendment, termination or waiver effected in accordance with this Subsection 5.8 shall be binding on each party and all of such party’s successors and permitted assigns, whether or not any such party, successor or assignee entered into or approved such amendment, termination or waiver. For purposes of this Subsection 5.8, the requirement of a written instrument may be satisfied in the form of an action by written consent of the Stockholders circulated by the Company and executed by the Stockholder parties specified, whether or not such action by written consent makes explicit reference to the terms of this Agreement.

 

5.9     Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default previously or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 

 

5.10     Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

5.11     Entire Agreement. This Agreement (including the Exhibits hereto) constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

 

5.12     Legend on Share Certificates. Each certificate representing any Shares issued after the date hereof shall be endorsed by the Company with a legend reading substantially as follows:

 

“THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT, AS MAY BE AMENDED FROM TIME TO TIME, (A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE COMPANY), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF THAT VOTING AGREEMENT, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER AND OWNERSHIP SET FORTH THEREIN.”

 

10

 

 

The Company, by its execution of this Agreement, agrees that it will cause the certificates evidencing the Shares issued after the date hereof to bear the legend required by this Subsection 5.12, and it shall supply, free of charge, a copy of this Agreement to any holder of a certificate evidencing Shares upon written request from such holder to the Company at its principal office. The parties to this Agreement do hereby agree that the failure to cause the certificates evidencing the Shares to bear the legend required by this Subsection 5.12 and/or the failure of the Company to supply, free of charge, a copy of this Agreement as provided hereunder shall not affect the validity or enforcement of this Agreement.

 

5.13     Stock Splits, Stock Dividends, etc. In the event of any issuance of Shares of the Company’s voting securities hereafter to any of the Stockholders (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like), such Shares shall become subject to this Agreement and shall be endorsed with the legend set forth in Subsection 5.12.

 

5.14     Manner of Voting. The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law. For the avoidance of doubt, voting of the Shares pursuant to the Agreement need not make explicit reference to the terms of this Agreement.

 

5.15     Further Assurances. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.

 

5.16     Jurisdiction; Venue. With respect to any disputes arising out of or related to this Agreement, the parties consent to the non-exclusive jurisdiction of, and venue in, the state courts in San Francisco County in the State of California (or in the event of federal jurisdiction, the courts of Northern District of California).

 

5.17     Costs of Enforcement. If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

 

5.18     Aggregation of Stock. All Shares held or acquired by a Stockholder and/or its Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement, and such Affiliates may apportion such rights as among themselves in any manner they deem appropriate.

 

5.19     Spousal Consent. If any individual Stockholder is married on the date of this Agreement, such Stockholder’s spouse shall execute and deliver to the Company a consent of spouse in the form of Exhibit B hereto (“Consent of Spouse”), effective on the date hereof. Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or convey to the spouse any rights in such Stockholder’s Shares that do not otherwise exist by operation of law or the agreement of the parties. If any individual Stockholder should marry or remarry subsequent to the date of this Agreement, such Stockholder shall within thirty (30) days thereafter obtain his/her new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by causing such spouse to execute and deliver a Consent of Spouse acknowledging the restrictions and obligations contained in this Agreement and agreeing and consenting to the same.

 

11

 

 

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

 

COMPANY:

 

CARTXpress bio, Inc.

 

By: /s/ Haihong Zhu

Name:   Haihong Zhu

Title:     President

 

 

[Signature Page to Voting Agreement]

 

 

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

 

 

STOCKHOLDERS:

 

BAY CITY CAPITAL FUND V, L.P.

 

By:     Bay City Capital Management V LLC

Its:     General Partner

 

By:     Bay City Capital LLC

Its:     Manager

 

By:     /s/ Carl Goldfischer

Name:   Carl Goldfischer

Title:     MD

 

Address:

 

Bay City Capital LLC

750 Battery Street, Suite 400

San Francisco, CA 94111

 

Bay City Capital Fund V Co-Investment Fund, L.P.

 

By:     Bay City Capital Management V LLC

Its:     General Partner

 

By:     Bay City Capital LLC

Its:     Manager

 

By:     /s/ Carl Goldfischer

Name:   Carl Goldfischer

Title:     MD

 

Address:

 

Bay City Capital LLC

750 Battery Street, Suite 400

San Francisco, CA 94111

 

 

[Signature Page to Voting Agreement]

 

 

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

 

STOCKHOLDER:

 

THERMOGENESIS CORP.

 

By: /s/ Haihong Zhu

Haihong Zhu

President

 

Address:

 

ThermoGenesis Corp.

2711 Citrus Road

Rancho Cordova, California 95742

 

[Signature Page to Voting Agreement]

 

 

SCHEDULE A

 

STOCKHOLDERS

 

	
			Name and Address

				
			Number of Shares Held

			
	
			 

			Bay City Capital Fund V, L.P.

			Bay City Capital LLC

			750 Battery Street, Suite 400

			San Francisco, CA 94111

			 

				
			 

			1,962,600

			
	
			 

			Bay City Capital Fund V Co-Investment Fund, L.P.

			Bay City Capital LLC

			750 Battery Street, Suite 400

			San Francisco, CA 94111

			 

				
			 

			37,400

			
	
			 

			ThermoGenesis Corp.

			2711 Citrus Road

			Rancho Cordova, California 95742

			 

				
			 

			8,000,000

			

 

 

[Schedule A to Voting Agreement]

 

 

EXHIBIT A

 

ADOPTION AGREEMENT

 

This Adoption Agreement (“Adoption Agreement”) is executed on ___________________, 20__, by the undersigned (the “Holder”) pursuant to the terms of that certain Voting Agreement dated as of January 1, 2019 (the “Agreement”), by and among the Company and certain of its Stockholders, as such Agreement may be amended or amended and restated hereafter. Capitalized terms used but not defined in this Adoption Agreement shall have the respective meanings ascribed to such terms in the Agreement. By the execution of this Adoption Agreement, the Holder agrees as follows.

 

1.1     Acknowledgement. Holder acknowledges that Holder is acquiring certain shares of the capital stock of the Company (the “Stock”), for one of the following reasons (Check the correct box):

 

	 	
			☐

				
			as a transferee of Shares from a party in such party’s capacity as a “Stockholder” bound by the Agreement, and after such transfer, Holder shall be considered a “Stockholder” for all purposes of the Agreement.

			

 

	 	
			☐

				
			as a new Stockholder in accordance with Subsection 5.1(a) of the Agreement, in which case Holder will be a “Stockholder” for all purposes of the Agreement.

			

 

	 	
			☐

				
			in accordance with Subsection 5.1(b) of the Agreement, as a new party who is not a new Stockholder, in which case Holder will be a “Stockholder” for all purposes of the Agreement.

			

 

1.2     Agreement. Holder hereby (a) agrees that the Stock, and any other shares of capital stock or securities required by the Agreement to be bound thereby, shall be bound by and subject to the terms of the Agreement and (b) adopts the Agreement with the same force and effect as if Holder were originally a party thereto.

 

1.3     Notice. Any notice required or permitted by the Agreement shall be given to Holder at the address or facsimile number listed below Holder’s signature hereto.

 

	HOLDER:                                                           	 	ACCEPTED AND AGREED:
	 	 	 
	By:                                                                        	 	CARTXpress bio, Inc.
	Name and Title of Signatory	 	 
	 	 	 
	Address:                                                               	 	By:                                                             
	                                                                             	 	Title:                                                           
	Facsimile Number:                                              	 	 

     

[Exhibit A to Voting Agreement]

 

 

EXHIBIT B

 

CONSENT OF SPOUSE

 

I, ____________________, spouse of ______________, acknowledge that I have read the Voting Agreement, dated as of January 1, 2019, to which this Consent is attached as Exhibit B (the “Agreement”), and that I know the contents of the Agreement. I am aware that the Agreement contains provisions regarding the voting and transfer of shares of capital stock of the Company that my spouse may own, including any interest I might have therein.

 

I hereby agree that my interest, if any, in any shares of capital stock of the Company subject to the Agreement shall be irrevocably bound by the Agreement and further understand and agree that any community property interest I may have in such shares of capital stock of the Company shall be similarly bound by the Agreement.

 

I am aware that the legal, financial and related matters contained in the Agreement are complex and that I am free to seek independent professional guidance or counsel with respect to this Consent. I have either sought such guidance or counsel or determined after reviewing the Agreement carefully that I will waive such right.

 

Dated as of the __ day of _________, 20___.

 

                                                                         

Signature

 

                                                                         

Print Name

 

 

 

 

 

[Exhibit B to Voting Agreement]

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