Document:

exv10w1

EXHIBIT 10.1

AMENDMENT NO. 5 DATED AS OF JUNE 24, 2009, TO EMPLOYMENT AGREEMENT, DATED AS OF NOVEMBER 3, 2003,
BY AND BETWEEN VION PHARMACEUTICALS, INC. AND ALAN KESSMAN

          AMENDMENT NO. 5, dated as of June 24, 2009, to Employment Agreement, dated as of November 3,
2003, by and between Vion Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Alan
Kessman (the “Executive”), as amended by Amendment No. 1 thereto, dated September 13, 2005,
Amendment No. 2 thereto, dated January 3, 2006, Amendment No. 3 thereto, dated February 13, 2008
and Amendment No. 4 thereto, dated June 23, 2008 (collectively, the “2003 Agreement”).

          WHEREAS, the Executive has been acting as the Chief Executive Officer of the Company pursuant
to the 2003 Agreement; and

          WHEREAS, the 2003 Agreement expires on December 31, 2009; and

          WHEREAS, the Board of Directors of the Company (the “Board”) recognizes that the Executive’s
continued long-term contribution to the growth and success of the Company is essential, and the
Board desires to provide for the continued employment of the Executive on the terms set forth in
the 2003 Agreement; and

          WHEREAS, the Executive is willing to continue to serve the Company on the terms and conditions
set forth in the 2003 Agreement.

          NOW THEREFORE, in order to effectuate the foregoing, the Company and the Executive wish to
amend the 2003 Agreement to extend the term thereof as set forth below. Accordingly, in
consideration of the premises and the respective covenants and agreements of the parties herein
contained, and intending to be legally bound hereby, the parties hereto agree as follows:

          1. Section 2 of the 2003 Agreement is hereby amended and restated in its entirety to read as
follows:

          “2. Term. The term of the Executive’s employment hereunder (the
“term”) will commence on January 1, 2004 (the “Effective Date”) and, unless sooner
terminated or extended in accordance with the terms hereof, will expire on December
31, 2011.”

          2. Except as specifically amended as set forth herein, the 2003 Agreement shall remain in full
force and effect.

          3. This Amendment 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.

IN WITNESS WHEREOF, this Amendment No. 5 has been executed as of the date and year first above
written.

	 	 	 	 	 	 	 
	 	 	VION PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William Miller
 

William Miller
	 	 
	 

	 	 	 	Chairman of the Board	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Alan Kessman
 

Alan KessmanExhibit 10.2

Exhibit
10.2

AGREEMENT

between 

CYCLACEL PHARMACEUTICALS, INC.

and 

SCOTTISH ENTERPRISE

 

re: Convertible Unsecured Loan Notes 2010 in Cyclacel Group plc

 

151 St Vincent Street Glasgow G2 5NJ DX GW67 or LP 33 Glasgow-6 Tel 0141 248 5011 Fax 0141 248

5819

www.mms.co.uk 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page No.	 
	 
	1	 	DEFINITIONS AND INTERPRETATION
	 	 	1	 
	 	 	 
	 	 	 	 
	2	 	XCYTE UNDERTAKING
	 	 	2	 
	 	 	 
	 	 	 	 
	3	 	DEFAULT INTEREST
	 	 	3	 
	 	 	 
	 	 	 	 
	4	 	TERMINATION AND REDUCTION OF LIABILITY
	 	 	3	 
	 	 	 
	 	 	 	 
	5	 	VARIATION
	 	 	4	 
	 	 	 
	 	 	 	 
	6	 	NOTICES
	 	 	4	 
	 	 	 
	 	 	 	 
	7	 	ASSIGNATION
	 	 	4	 
	 	 	 
	 	 	 	 
	8	 	EXPENSES
	 	 	5	 
	 	 	 
	 	 	 	 
	9	 	ENTIRE AGREEMENT
	 	 	5	 
	 	 	 
	 	 	 	 
	10	 	GOVERNING LAW AND JURISDICTION
	 	 	5	 
	 	 	 
	 	 	 	 

 

 

 

This agreement is made by way of a deed on  __ 2006

between

	(1)	 	CYCLACEL PHARMACEUTICALS, INC. incorporated in Delaware (hereinafter called
“Xcyte”);

and

	(2)	 	SCOTTISH ENTERPRISE established under the Enterprise & New Towns (Scotland) Act 1990 and
having its principal place of business at 5 Atlantic Quay, 150 Broomielaw, Glasgow, G2 8LU
(hereinafter called “SE”).

together the “parties” and each individually a
“party”

WHEREAS

	(A)	 	SE is the holder of all of the Notes (as defined below) issued by Cyclacel Group plc.

	 
	(B)	 	SE, being the holder of all of the Notes, consented to the Transaction (as defined below)
pursuant to a letter of consent from SE to Cyclacel Group plc, dated 14 December 2005.

	 
	(C)	 	Following the completion of the Transaction, SE has agreed with Cyclacel Group plc (pursuant
to the terms of an agreement entered into on the same date as this Agreement) to convert the
Notes into Preferred D Shares of £0.01 each in Cyclacel Group plc (the “Conversion Shares”).

IT IS HEREBY AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION

	 
	1.1	 	In this Agreement unless the context shall otherwise require or the contrary intention appears
the
following words and expressions shall have the meanings hereinafter ascribed to them:

	 	 	 
	“Act”

	 	means the Companies Act 1985;
	 
	 	 
	“Business Day”

	 	means a day on which the UK clearing banks are open for normal business
in Scotland (other than a Saturday or Sunday);
	 
	 	 
	“Conversion Shares”

	 	means the 1,231,528 Preferred D Shares of £0.01 each in the capital of
Cyclacel Group to be Issued on conversion of the Loan Notes;
	 
	 	 
	“Cyclacel”

	 	means Cyclacel Limited, a company incorporated in England under number
0323 7549;
	 
	 	 
	“Cyclacel Group”

	 	means Cyclacel Group plc, a company incorporated in England under
number 05090795;
	 
	 	 
	“Notes”

	 	means the convertible unsecured loan notes 2010 issued to SE by
Cyclacel Group pursuant to a loan note instrument dated 28 July 2005 in
principal equal to £5,000,003.70;
	 
	 	 
	“SE Successor”

	 	means any party succeeding in whole or in part to the interests of SE;
and
	 
	 	 
	“Transaction”

	 	means the sale of all of the outstanding share capital of Cyclacel to
Xcyte.

 

 

 

	1.2	 	Words and expressions defined in the Act shall, unless they are otherwise defined
herein or unless the context otherwise requires, bear the same meanings in this Agreement.

	 
	1.3	 	In this Agreement:-

	 	1.3.1	 	the provisions of the Interpretation Act 1978 with respect to
interpretation and construction shall apply mutatis mutandis;

	 
	 	1.3.2	 	the singular includes the plural and the masculine includes the feminine
and neuter and vice versa;

	 
	 	1.3.3	 	references to persons shall include bodies corporate, unincorporated
associations and partnerships;

	 
	 	1.3.4	 	references to recitals and clauses are, unless the contrary intention
appears, references to the recitals and clauses of this Agreement and the recitals
form part of this Agreement; and

	 
	 	1.3.5	 	the headings and sub-headings of this Agreement are inserted for
convenience only and shall not affect the construction thereof.

	1.4	 	In interpreting this Agreement the “eiusdem generis” rule shall not apply and accordingly the
interpretation of general words shall not be restricted by being preceded by words indicating
a particular class of acts, matters or things, or by being followed by particular examples,

	 
	2.	 	XCYTE UNDERTAKING

	2.1	 	Xcyte shall not and hereby undertakes to procure that Cyclacel shall not close or materially
reduce the scale of or dispose of Cyclacel’s operations in Scotland as carried on at 14
December 2005 (otherwise than with the prior written consent of SE) to the extent that in the
reasonable opinion of SE, any such closure, reduction or disposal means that Cyclacel or any
of its relevant subsidiaries are no longer able to undertake or support drug discovery
and early drug development capabilities in Scotland such that its or their capabilities in
Scotland are no longer consistent with:

	 	2.1.1	 	Cyclacel’s proprietary gene to drug strategy; and

	 
	 	2.1.2	 	the maintenance and development of a reasonable deep drug pipeline.

	2.2	 	In arriving at such opinion, SE shall take into consideration the number of researchers
employed in the business in Scotland both as at the date the Notes were issued and following
such closure, reduction or disposal.

	2.3	 	Xcyte undertakes to use all reasonable endeavours to procure that any person who, following
the time of the completion of the Transaction, acquires shares in Cyclacel or which acquires
the business of Cyclacel shall agree to be bound to SE on terms no less favourable to SE than
as set out in this Agreement.

	2.4	 	In the event of a breach by Xcyte of its obligations under Clauses 2.1 or 2.3 above, Xcyte
shall, as soon as is reasonably possible, notify SE of the occurrence of such breach and if
such breach (i) is capable of remedy but has not been remedied within 30 days of the date of
the occurrence of such breach or (ii) has not been waived in writing by SE, then SE shall,
subject to any dealing restrictions which may apply to SE or the Conversion Shares, be free to
sell the Conversion Shares (or the corresponding shares in Xcyte following a distribution of
such shares pursuant to a liquidation of Cyclacel Group (the “Xcyte Shares”)) at any time
within the period of 45 days following notification of such breach (if the breach is not
capable of remedy) or the period of 45
days after the expiry of the 30 day period for remedying such breach (if the breach is
capable of remedy), subject in either case to Clause 2.5 below, and Xcyte shall release SE
from any restriction Xcyte has applied to the sale of such shares and which it is capable
of releasing. For the avoidance of doubt this Agreement shall not, of itself, have effect
to impose any restriction on SE’s ability to sell the Conversion Shares or the Xcyte
Shares.

 

2

 

	2.5	 	If a breach by Xcyte of its obligations under Clauses 2.1 or 2.3 above is notified to SE
within the period of six months following completion of the Transaction, the 45 day period
during which SE may sell the Conversion Shares (or corresponding Xcyte Shares) pursuant to
Clause 2.4 above shall be deemed to refer to the 45 days immediately following the expiry of
such six month period.

	2.6	 	In the event of a sale by SE of all of the Conversion Shares (or corresponding Xcyte Shares)
in accordance with Clause 2.4 above, if the gross proceeds to SE are less than £5 million,
Xcyte shall, within ten Business Days after SE has provided to Xcyte written evidence of the
amount of the gross sale proceeds (which evidence SE shall endeavour to provide not later than
seven days after such sale), pay to SE the amount by which the gross sale proceeds are less
than £5 million.

	2.7	 	Subject to Clause 2.8 below, in the event that SE does not sell all of the Conversion Shares
(or corresponding Xcyte Shares) in accordance with Clause 2.4 above, SE shall be deemed to
have waived its rights in respect of such breach and each of the parties shall be released and
discharged from further obligations to the other party under this Agreement.

	2.8	 	In the event that SE is prevented from selling some or all of the Xcyte Shares in accordance
with Clause 2.4 above as a result of any restriction which Xcyte has applied to the sale of
the Conversion Shares (or the corresponding Xcyte Shares), Xcyte shall pay to SE an amount
equal to £5 million less the gross sale proceeds received by SE (written evidence of which
shall be provided by SE to Xcyte) in respect of the sale of any of the Conversion Shares
(or corresponding Xcyte Shares) that it has been able to sell.

	 
	3.	 	DEFAULT INTEREST

If any sums due to SE pursuant to the terms of Clause 2.6 or 2.8 have not been paid in
full by the appropriate due date, Xcyte will be liable to pay to SE the full amount
outstanding with daily interest on the amount remaining outstanding at the rate of 4 per
cent per annum above the base rate for the time being of the Governor and Company of the
Bank of Scotland from the date the payment becomes due until SE receives payment in full.

	4.	 	TERMINATION AND REDUCTION OF LIABILITY

	4.1	 	If SE ceases to hold the Conversion Shares (or the corresponding Xcyte Shares following a
distribution of such shares pursuant to a liquidation of Cyclacel Group):

	 	(a)	 	each of the parties shall be released and discharged from further
obligations to the other party under this Agreement; and

	 	(b)	 	the parties’ respective rights against each other under this Agreement shall be
cancelled,

provided that such release, discharge and cancellation shall not affect their respective
rights, obligations and liabilities arising in respect of any matter or thing arising
prior to such release, discharge and cancellation, including their respective rights
and/or obligations in respect of amounts due and payable prior to such release, discharge
and cancellation but remaining unpaid (if any).

 

3

 

	4.2	 	In the event that SE at any time reduces its holding of Conversion Shares (or the
corresponding Xcyte Shares following a distribution of such shares pursuant to a liquidation
of Cyclacel
Group), but continues to hold one or more of such shares at a time when Xcyte breaches
the provisions of Clauses 2.1 or 2.3 above, the amount of £5 million referred to in
Clauses 2.6 and 2.8 shall be reduced, on a straight line basis, to an amount which is
proportionate to the number of Conversion Shares (or corresponding Xcyte Shares, as the
case may be) that SE held at the time of such breach relative to the amount of
Conversation Shares (or corresponding Xcyte Shares, as the case may be) held at the time
of the completion of the Transaction.

	5.	 	VARIATION

No variation of this Agreement shall be valid unless it is in writing and signed by or on
behalf of the parties hereto.

	6.	 	NOTICES

Any notice, request, demand or other communication to be given by one party to any other
party under or in connection with the matters contemplated by this Agreement shall be in
writing and shall be delivered, sent by first class mail or by air mail to the address of
the relevant party set out below, marked for the attention of the person set out below,
or by fax (confirmed by first class mail or air mail) to the relevant fax number set out
below, or to such other address or fax number as that party may from time to time notify
to the other parties in accordance with this Clause 6:

Xcyte Therapies, Inc.

Address: James Lindsay Place, Dundee Technopole, Dundee, DD1 5JJ

Fax number: 01382 206 067

Marked “URGENT — For the attention of: Paul McBarron”

Scottish Enterprise

Address: 5 Atlantic Quay, 150 Broomielaw, Glasgow, G2 8LU

Fax number: 0141 221 3217

Marked “URGENT — For the attention of: Gerard Kelly/Martin Hughes”

	6.1	 	Notices sent as above will be deemed to have been received:-

	 	6.1.1	 	in case of delivering by hand, when delivered;

	 
	 	6.1.2	 	two Business Days after the day of posting (in the case of first class mail);

	 
	 	6.1.3	 	four Business Days after the date of posting (in the case of air mail); or

	 
	 	6.1.4	 	on the next Business Day after transmission (in the case of fax messages,
but only if a transmission report is generated by the sender’s fax machine recording
a message from the recipient’s fax machine, confirming that the fax was sent to the
number indicated above and confirming that all pages were successfully transmitted).

	7.	 	ASSIGNATION

	 
	7.1	 	SE may assign or novate its rights and obligations pursuant to this Agreement to any SE
Successor without restriction.

 

4

 

	7.2	 	Other than as provided in Clause 7.1, no party shall be entitled at any time to assign,
transfer, deal or part with all or any of its rights or obligations under this Agreement or
sub-contract the performance of any of its obligations under this Agreement without
the consent of the other party.

	 
	8.	 	EXPENSES

	 
	 	 	Xcyte shall pay SE’s it costs of an amount up to £15,000 (plus VAT and outlays)
connected with the negotiation, preparation, execution and implementation of this
Agreement and all ancillary documentation envisaged herein.

	 
	9.	 	ENTIRE AGREEMENT

	 
	9.1	 	This Agreement constitutes the entire agreement and understanding of the parties
and supersedes any previous agreement between the parties relating to the subject of
this agreement.

	 
	9.2	 	Each of the parties acknowledges and agrees that, in entering into this
Agreement, it does not rely on, and shall have no remedy in respect of, any statement,
representation, warranty or understanding (whether negligently or innocently made) of
any person (whether a party to this Agreement or not) other than as expressly set out in
this Agreement.

	 
	10.	 	GOVERNING LAW AND JURISDICTION

	 
	 	 	This Agreement and the rights and obligations of the parties under it shall be
governed by and construed in all respects in accordance with the laws of England
and the parties submit to the non-exclusive jurisdiction of English courts.

EXECUTED and DELIVERED as a deed in
 _____ 
counterparts on the date first above written.

	 	 	 	 	 	 	 	 	 
	EXECUTED as a deed for and on behalf of

	 	 	)	 	 	 	 	 
	SCOTTISH ENTERPRISE by:

	 	 	)	 	 	 

Authorised Signatory
	 	 
	 
	 	 	 	 	 	 	 	 
	EXECUTED as a deed for and on behalf of

	 	 	)	 	 	 	 	 
	CYCLACEL PHARMACEUTICALS, INC. by:

	 	 	)	 	 	 

Authorised Signatory
	 	 

 

5

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