Document:

ex10-1.htm

 

Exhibit 10.1

 

SECOND CONSENT AND AMENDMENT AGREEMENT

 

This Consent and Amendment Agreement (this "Agreement") is entered into this 30th day of January, 2013, by and among Tengion, Inc., a Delaware corporation (the "Company") and each party identified on the signature pages hereto (each an "Investor" and collectively, the "Investors").

 

RECITALS

 

A.           The Company and the Investors entered into that certain Securities Purchase Agreement, dated as of October 2, 2012 (the "Purchase Agreement"), pursuant to which the Company issued and the investors party thereto (the "Investors") purchased Senior Secured Convertible Notes (the "Notes") and warrants (the "Warrants") to purchase shares of Company common stock, par value, $0.001 per share ("Common Stock").

 

B.           The Company and the Investors entered into that certain Facility Agreement, dated as of October 2, 2012 (the "Facility Agreement"), which agreement governs the terms and conditions under which the Notes were issued by the Company, including the time, form and manner of the payment of interest on the Notes and provides for certain events of default and monetary penalties upon the occurrence of certain events, including a Registration Failure (as defined in the Notes) and the failure to pay principal and interest under the Notes when due.

 

C.           The Company and the Investors entered into that certain Registration Rights Agreement, dated as of October 2, 2012 (the "Registration Rights Agreement" and together with the Purchase Agreement, Notes, Warrants and Facility Agreement, the "Applicable Transaction Documents"), which agreement imposes certain obligations on the Company to register the shares of Common Stock underlying the Notes and Warrants with the Securities and Exchange Commission (the "SEC") for resale by the Investors on or before December 31, 2012, and provides for certain monetary penalties in the event of a Registration Failure (as defined in the Registration Rights Agreement.

 

D.           The Company and the Investors entered into that certain Consent and Amendment Agreement on December 31, 2012 (the “Consent and Amendment Agreement”) under which the Investors (i) waived for a limited period of time certain of the Company's obligations under the Applicable Transaction Documents related to the timing of the Company's interest payment obligations under the Notes and Facility Agreement and (ii) amended the Registration Rights Agreement to provide for an extension to the period of time in which the Company is obligated to have the Registration Statement declared effective by the SEC.

 

E.           The Company desires and Investors are willing to waive for an additional limited period of time certain of the Company's obligations under the Applicable Transaction Documents related to the timing of the Company's interest payment obligations under the Notes and Facility Agreement.

 

F.           The Company and Investors are willing to amend the Registration Rights Agreement to provide for an additional extension to the period of time in which the Company is obligated to have the Registration Statement declared effective by the SEC.

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1. Extension regarding payment of interest.  Notwithstanding any provision to the contrary in the Applicable Transaction Documents, the Company's obligation to make the interest payment under the Notes and the Facility Agreement and the Consent and Amendment in the aggregate amount of $500,576.76 on February 1,, 2013 (the "February 1 Interest Payment"), shall be extended to February 15, 2013.  For purposes of clarity, interest at the Interest Rate (as defined in the Facility Agreement) shall accrue on the amount of the February 1 Interest Payment until paid.  Furthermore, for purposes of calculating the number of shares of Common Stock to be issued in lieu of any cash interest payment as provided in Section 2.9(c) of the Facility Agreement, all references to Interest Payment Date shall mean, solely with respect to this February 1 Interest Payment, February 15.  Notwithstanding the change in the February 1 Interest Payment date, the Company shall, solely with respect to this February 1 Interest Payment, have no further obligation to deliver any notice of interest payment or make any public disclosure of the same on Current Report on Form 8-K as provided in Section 2.9 of the Facility Agreement.

 

2. Amendment of Registration Deadline.  The Company and the Investors, hereby amend Section 1(a)(viii) of the Registration Rights Agreement to read in its entirety as follows:

 

"(viii) "Registration Deadline" shall mean, other than the purposes of the Registration Statements required under Section 2(a)(ii), a date that is one hundred fifty (150) calendar days following the date the applicable Warrant or Note is issued and, in the case of Section 2(a)(ii) shall mean the Additional Filing Deadline."

 

All references to "Registration Deadline" in the Applicable Transaction Documents shall mean such definition, as amended by this Agreement.

 

3. Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of New York applicable to contracts made and to be performed in such State.

 

4. 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.  This Agreement may be executed and delivered by facsimile and upon such delivery the facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other party.

 

 

 

 

[Signatures on following page.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

Tengion, Inc.

 

	By:	
/s/ A. Brian Davis

	 	 
	 	
A. Brian Davis

	 	 
	 	
Chief Financial Officer and VP Finance

	 	 
	 	
 

	 	 
	Deerfield Special Situations Fund, L.P.	 	 
	 	 	 	 
	By:	Deerfield Mgmt, L.P., General Partner	 	 
	By:	J.E. Flynn Capital LLC, General Partner	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/ James E.  Flynn	 	 
	 	Name: James E. Flynn	 	 
	 	Title: President	 	 
	 	 	 	 
	Deerfield Special Situations International Master Fund, L.P.	 	 
	 	 	 	 
	By:	Deerfield Mgmt, L.P., General Partner	 	 
	By:	J.E. Flynn Capital LLC, General Partner	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/ James E.  Flynn	 	 
	 	Name: James E. Flynn	 	 
	 	Title: President	 	 
	 	 	 	 
	RA Capital Healthcare Fund, LP	 	 
	 	 	 	 
	By:	/s/ Peter Kolchinsky	 	 
	 	Name: Peter Kolchinsky	 	 
	 	Title:  Manager	 	 
	 	 	 	 
	Blackwell Partners, LLC	 	 
	 	 	 	 
	By:	/s/ David R. Shumate	 	 
	 	Name: David R. Shumate	 	 
	 	Title: Executive Vice President	 	 
	 	 	 	 
	By:	/s/ Geoffrey D. Keegan	 	 
	 	Name: Geoffrey D. Keegan	 	 
	 	Title: Investment Manager	 	 
	 	 	 	 
	 	 	 	 

 

 

 

 

  

  

  

 

 

 

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

Celgene Corporation

 

	By:	 /s/ George S. Golumbeski 	 	 
	 	Name: George S. Golumbeski	 	 
	 	Title: Senior Vice President, Business Development	 	 
	 	 	 	 
	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/ Judy Koh	 	 
	 	Name: Judy Koh	 	 
	 	Title: Chief Financial Officer	 	 
	 	 	 	 
	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/ Judy Koh	 	 
	 	Name: Judy Koh	 	 
	 	Title: Chief Financial Officer	 	 
	 	 	 	 
	Dafna Lifescience LTD	 	 
	 	 	 	 
	By:	/s/ Nathan Fischel	 	 
	 	Name: Nathan Fischel	 	 
	 	Title: Managing Member	 	 
	 	 	 	 
	Dafna Lifescience Market Neutral LTD	 	 
	 	 	 	 

	By:	/s/ Nathan Fischel	 	 
	 	Name: Nathan Fischel	 	 
	 	Title: Managing Member	 	 
	 	 
	Dafna Lifescience Select LTD
	 	 

	By:	/s/ Nathan Fischel	 	 
	 	Name: Nathan Fischel	 	 
	 	Title: Managing Member	 	 
	 	 
	 	 
	 	 

 

 

 

 

  

  

  

 

 

 

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

	
HealthCap IV L.P.

 

By:           HealthCap IV GP SA

 

By:           /s/ Peter Fredrickson

 

	
 

HealthCap IV Bis L.P.

 

By:           HealthCap IV GP SA

 

By:           /s/ Peter Fredrickson

 

 

	
HealthCap IV KB

 

By:           HealthCap IV GP AB

 

By:           /s/ Per Samuelsson

                 Per Samuelsson, Partner

 

By:           /s/ Jacob Gunterberg

                Jacob Gunterberg, Partner

 

	
OFCO Club IV

 

By:          Odlander, Fredrikson & Co. AM, as member

and on behalf of all members, if any of OFCO Club IV

 

By:           /s/ Per Samuelsson

 

By:           /s/ Jacob GunterbergExhibit 10.1

 

FIRST AMENDMENT TO STOCK PURCHASE AGREEMENT,

ESCROW AGREEMENT, AND CORPORATE GUARANTY

 

This amendment (“Amendment”),
entered into as of February 4, 2013 (“Amendment Effective Date”) modifies the terms of the following complementary
agreements pertaining to the purchase and sale of 100% of the capital stock of China Motion Telecom HK Limited: (1) the Stock Purchase
Agreement (“Agreement”); (2) the Escrow Agreement; and (3) the Corporate Guaranty (collectively “Transaction
Documents”). All defined terms contained in the Transaction Documents are incorporated by reference in this Amendment.

 

RECITALS

 

By this Amendment, the Business Parties
hereby agree to extend the Outside Closing Date in consideration of certain adjustments to the amount, timing and manner of payment
of the Purchase Price, accomplished through the following amendatory language to the Transaction Documents, to which Escrow Agent
(only to the extent in respect of the Escrow Agreement) and VelaTel also consent.

 

AGREEMENT

 

1.               
In Section 1.3 of the Agreement, the Purchase Price is increased from HK$45,000,000 to HK$45,405,000 (“Amended
Purchase Price”), representing a 1% increase in the difference between the total original Purchase Price less the Buyer’s
Deposit.

 

2.               
In Section 1.4 of the Agreement, and in consideration of Seller agreeing to extend the Outside Closing Date under section
3 of this Amendment:

 

(a)             
Buyer’s Deposit shall mean HK$4,500,000 paid by Buyer to Escrow Agent pursuant to the Escrow Agreement. Buyer’s
Deposit shall continue to be held by Escrow Agent under the Escrow Agreement (as amended by this Amendment.

 

(b)             
Within ten business days following the Amendment Effective Date, Buyer shall deposit with Escrow Agent, in escrow, a sum
of HK$1,170,000 (“Buyer’s Further Deposit”), which shall represent additional security for Buyer’s
performance of the Agreement (as revised and amended by this Amendment). In the event of Buyer’s failure or inability to
timely close the Agreement on or before the Outside Closing Date (as amended in this Amendment) or the Agreement is not closed
for whatever reasons other than Seller’s failure or inability to timely close the Agreement on or before the amended Outside
Closing Date, Buyer’s Deposit and Buyer’s Further Deposit together shall be released to Seller, and, shall constitute
Seller’s sole remedy for Buyer’s breach.

 

(c)             
At closing, Buyer shall pay Seller the Amended Purchase Price, plus the First Adjustments, less Buyer’s Deposit and
Buyer’s Further Deposit, and Buyer shall authorize Escrow Agent to release Buyer’s Deposit and Buyer’s Further
Deposit to Seller or as Seller may direct.

 

3.               
The Parties agree that the Outside Closing Date in Section 1.8 be extended from January 31, 2013 to February 28, 2013.

 

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4.               
Notwithstanding anything in the Escrow Agreement to the contrary: (a) this Amendment shall serve as notice to Escrow Agent
that the Business Parties (i) have extended the Outside Closing Date to February 28, 2013, and (ii) that the Business Parties hereby
appoint Escrow Agent as escrow agent to hold the Buyer’s Further Deposit in accordance with the terms of the Escrow Agreement,
and Escrow Agent hereby accepts said appointment as escrow agent. All terms of the Escrow Agreement that have heretofore applied
to Buyer’s Deposit shall now apply equally to Buyer’s Further Deposit; (b) within the time specified in section 2 (b)
of this Amendment, Buyer shall deliver Buyer’s Further Deposit to Escrow Agent via wire transfer pursuant to instructions
Escrow Agent has provided to Buyer; (c) Escrow Agent shall hold Buyer’s Further Deposit in escrow during the continuation
of the Escrow Agreement (as amended by this Amendment), and shall not release all or any of Buyer’s Further Deposit to any
person except according to the provisions of the Escrow Agreement (as amended by this Amendment); (d) all Instructions to be delivered
by either or both Business Parties under, or such other parties referred to in, the Escrow Agreement shall be revised as appropriate
to reflect the terms of this Amendment; (e) immediately upon the release and delivery of the Buyer’s Deposit and Buyer’s
Further Deposit by Escrow Agent under the Escrow Agreement (as amended by this Amendment), the Escrow Agreement (as amended by
this Amendment) shall forthwith expire and all of Escrow Agent’s duties thereunder shall forthwith terminate; (f) each of
Seller and Buyer hereby represents and warrants to and undertakes with Escrow Agent (to the intent that the provisions of this
representations and warranties shall continue to have full force and effect notwithstanding termination of the Escrow Agreement
(as amended by this Amendment) as follows: (i) all the necessary consents and approvals have been obtained by Seller or Buyer (as
the case may be) to execute, deliver and perform this Amendment and such consents and approvals are valid and in full force and
effect; (ii) it has all the necessary corporate power and authority to execute this Amendment or enter into any transactions contemplated
by, and perform its obligations under, this Amendment; (iii) it has taken all necessary corporate and other actions to authorise
the execution, delivery and performance of this Amendment; (iv) this Amendment constitutes its legal, valid and binding obligations
enforceable in accordance with the terms of this Amendment; (v) it shall not maintain at any time that the Escrow Agent, save as
otherwise provided hereunder, in any way supports, recommends or has an interest in any of the matters in connection with or in
respect of this Amendment; (vi) none of the actions to be performed or taken by Seller or Buyer (as the case may be) as aforesaid
or under this Amendment is in breach or contravention of (A) any law in any jurisdiction in which the actions are to be performed
or taken or (B) any contracts or obligations, agreements or arrangements to which Seller or Buyer (as the case may be) is a party
or by which Seller or Buyer (as the case may be) is bound; and (vii) it shall perform such acts or provide such documents, and
to procure the performance of such acts or the provision of such documents, which the Escrow Agent may reasonably require in relation
to Escrow Agent's performance of its obligations hereunder; (g) in addition to the indemnities contained in paragraph 14 of the
Escrow Agreement, each of the Seller and Buyer shall at all times hold the Indemnified Parties  harmless from, and indemnify
each of them in full in respect of, any and all claims, demands, actions or proceedings whatsoever brought or threatened by or
against any of them and all losses, damage, costs, expenses and other liabilities of whatever nature suffered, sustained, incurred
or payable by them or any of them arising out of or in connection with this Amendment and/or any breach by Seller and/or Buyer
of any of its representations, warranties, undertakings or obligations set forth in this Amendment and/or any act or thing done
by them or any of them under this Amendment save for any claims, demands, actions or proceedings solely attributable to the wilful
default on the part of the Indemnified Parties as adjudicated by a court or arbitral tribunal of a competent jurisdiction in complying
with the terms of this Amendment; and (h) the maximum aggregate liability of Escrow Agent towards the Seller, the Buyer and any
other persons (whether due to any wilful default or otherwise, and whether under the Escrow Agreement (as amended by is this Amendment)
or otherwise at law) shall not exceed HK$50,000 (excluding the Buyer’s Deposit and the Buyer’s Further Deposit which
shall be released to the Business Parties or such other persons in accordance with the provisions of the Escrow Agreement (as amended
by is this Amendment)), and his paragraph 4 shall survive notwithstanding expiration or termination of the Escrow Agreement (as
amended by is this Amendment).

 

 

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5.               
In consideration of Seller and Listco entering into this Amendment and other valuable considerations, VelaTel hereby unconditionally
and irrevocably guarantees to Seller each and every obligation of Buyer under this Amendment. VelaTel agrees that it is directly
and primarily liable to Seller, that its obligations hereunder are independent of the obligations of Buyer under this Amendment,
and that a separate action or actions may be brought and prosecuted against VelaTel, whether action is brought against Buyer or
whether Buyer is joined in any such action or actions.

 

6.               
Subject only to the variations contained in this Amendment and such other alterations (if any) as may be necessary to make
the Transaction Documents consistent with this Amendment, all terms and conditions of the Transaction Documents remain in full
force and effect and shall be read and construed and be enforceable as if the relevant terms of this Amendment were inserted therein
by way of addition or substitution, as the case may be. In case of any conflict between the terms of this Amendment and the terms
of any of the Transaction Documents, the terms of this Amendment shall prevail.

 

7.               
The Parties shall do and execute or procure to be done and executed all such further acts, deeds, documents and things as
may be necessary to give full effect to the terms and intent of this Amendment.

 

8.               
Upon execution of this Amendment, Buyer shall pay a total sum of no more than HK$120,000 (all inclusive) to the professional
parties of Seller, which sum represents their total costs and disbursements involved in the preparation and execution of, and other
matters incidental to, this Amendment.

 

9.               
This Amendment is made and shall be governed by, and construed and enforced in accordance with, the laws of Hong Kong, without
regard to the conflict of laws principles thereof as the same apply to agreements executed solely by residents of Hong Kong and
wholly to be performed within Hong Kong.

 

10.            
This Amendment may be executed in one or more counterparts, including facsimile copies of signatures, each of which shall
be deemed to be an original and all of which, when taken together, shall be deemed to constitute one and the same agreement.

 

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

 

 

	
        GULFSTREAM CAPITAL PARTNERS LTD.

        By  /s/ Colin Tay                   

               Colin Tay, its President

         

        Room 1307, Tower 1, Lippo Centre, No. 89 Queensway, Admiralty,
        Hong Kong and

        4F-1 No. 102 Kuang Fu South Road

        Taipei 106

        Taiwan

        Facsimile: + (886) 2 2778-1534

        E-Mail: ctay@trussadc.com
	
        CHINA MOTION TELECOM INTERNATIONAL LIMITED

        By  /s/ Wu Chi Chiu               

        Wu Chi Chiu, Director

         

        Unit 3101, Level 31, Tower 1, Enterprise Square Five

        38 Wang Chiu Road

        Kowloon Bay, Hong Kong

        Facsimile: + (852) 2209 1388

        E-Mail: wu.chcc@chinamotion.com

	 	 
	
        As a Deed

        VELATEL GLOBAL COMMUNICATIONS, INC.

         

        By  /s/ Colin Tay                  

              Colin Tay, its President

         

        Room 1307, Tower 1, Lippo Centre, No. 89 Queensway, Admiralty,
        Hong Kong and

        4F-1 No. 102 Kuang Fu South Road

        Taipei 106

        Taiwan

        Facsimile: + (886) 2 2778-1534

        E-Mail: ctay@trussadc.com
	
        CHINA MOTION HOLDINGS LIMITED

         

         

        By  /s/ Wu Chi Chiu                  

        Wu Chi Chiu, Director

         

        Unit 3101, Level 31, Tower 1, Enterprise Square Five

        38 Wang Chiu Road

        Kowloon Bay, Hong Kong

        Facsimile: + (852) 2209 1388

        E-Mail: wu.chcc@chinamotion.com

	 	 
	
        ANGELA HO & ASSOCIATES

         

        By  /s/ Firmus Fung

        Firmus Fung, Partner, on behalf of Angela Ho and Associates,
        a Hong Kong partnership, but not on behalf of any associated firm of Angela Ho and Associates

         

        1109, Tower 1, Lippo Centre

        89 Queensway

        Hong Kong

         

        Facsimile: +(852) 2810 0805

        E-Mail: firmusfung@holawfirm.com
	
        CHINAMOTION INFOSERVICES LIMITED

         

        By  /s/ Wu Chi Chiu

        Wu Chi Chiu, Director

        Unit 3101, Level 31, Tower 1, Enterprise Square Five

        38 Wang Chiu Road

        Kowloon Bay, Hong Kong

        Facsimile: + (852) 2209 1388

        E-Mail: wu.chcc@chinamotion.com

 

 

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