Document:

ex10-2.htm

Tamir Biotechnology, Inc. 8-K

 

Exhibit 10.2

 

 

TAMIR BIOTECHNOLOGY, INC.

 

THIRD AMENDMENT

TO INVESTOR RIGHTS AGREEMENT

 

This Third Amendment (this “Amendment”) to Investor Rights Agreement dated as of October 19, 2009 (the “Agreement”), is entered into as of the 11th day of December, 2012, by and among TAMIR BIOTECHNOLOGY, INC., a Delaware corporation (the “Company”) and the “Holders” party hereto.  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement.

 

Recitals

 

Whereas, pursuant to a Securities Purchase Agreement (the “Purchase Agreement”) of even  date herewith between the Company and the purchasers party thereto (the “New Purchasers”), the New Purchasers are purchasing (i) shares of Common Stock, (ii) shares of Series A Convertible Preferred Stock of the Company (the “Preferred Shares”), and (iii) ten-year Common Stock Purchase Warrants (the “Purchase Warrants”);

 

Whereas, the Company and the Holders desire to amend the Agreement so that the shares of Common Stock, Preferred Shares and Purchase Warrants purchased by the New Purchasers pursuant to the Purchase Agreement shall be subject to the registration rights provided for in the Agreement;

 

Whereas, Whereas, pursuant to Section 6(f) of the Agreement, amendment of the Agreement requires the written consent of the Company and the Holders holding no less than a majority of the Registrable Securities outstanding and issuable (the “Requisite Parties”); and

 

Whereas, the undersigned constitute the Requisite Parties for purposes of effecting this Amendment

 

Now, Therefore, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Amendment.

 

	
A.  

	
Section 1 of the Agreement is hereby amended by adding the following defined terms in their proper alphabetical order:

 

“Preferred Shares” means the shares of Series A Convertible Preferred Stock of the Company issued to the New Purchasers under the New Purchase Agreement.

 

“New Purchasers” means the “Purchasers” party to the New Purchase Agreement.

 

“New Purchase Agreement” means that certain Stock Purchase Agreement dated as of December 11, 2012, between the Company and the “Purchasers” party thereto.

 

  

  

  

	
B.  

	
The definition of “Conversion Shares” set forth in Section 1 of the Agreement is hereby amended and restated in its entirety as follows:

 

“Conversion Shares” means the shares of Common Stock issued or issuable upon conversion of the Notes and the Preferred Shares.

 

	
C.  

	
The definition of “Purchaser” set forth in Section 1 of the Agreement is hereby amended and restated in its entirety as follows:

 

“Purchaser” means each “Purchaser” under the Purchase Agreement and each “Purchaser” under the New Purchase Agreement.

 

	
D.  

	
The definition of “Registrable Securities” set forth in Section 1 of the Agreement is hereby amended and restated in its entirety as follows:

 

“Registrable Securities” means all of (i) shares of Common Stock issued or issuable under the New Purchase Agreement, (ii) the Conversion Shares, (iii) the Warrant Shares and (iv) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the Common Stock issued or issuable under the New Purchase Agreement, Conversion Shares or Warrant Shares, provided, that the Holder has completed and delivered to the Company a Selling Stockholder Questionnaire; and provided, further, that with respect to a particular Holder, such Holder’s Common Stock, Conversion Shares and Warrant Shares shall cease to be Registrable Securities upon the earliest to occur of the following: (A) a sale of such shares pursuant to a Registration Statement or Rule 144 under the Securities Act (in which case, only such security sold by the Holder shall cease to be a Registrable Security); or (B) such shares becoming eligible for resale by the Holder under Rule 144 without the requirement for the Company to be in compliance with the current public information required thereunder and without volume or manner-of-sale restrictions, pursuant to a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent.

 

	
E.  

	
The definition of “Warrants” set forth in Section 1 of the Agreement is hereby amended and restated in its entirety as follows:

 

“Warrants” means the Warrants issued pursuant to the Purchase Agreement and the New Purchase Agreement.

 

2. Joinder.  By its execution of this Amendment, each New Purchaser hereby agrees to become a party to and subject to the terms and provisions of the Agreement.

 

3. General.

 

	
A.

	
Except as effected by this Amendment, the terms and provisions of the Agreement shall remain unchanged and in full force and effect.

 

  

2

  

	
B.        

	
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.

 

	
C.

	
This Amendment shall be governed by and construed under the laws of the State of New York as applied to agreements among New York residents, made and to be performed entirely within the State of New York, without giving effect to conflicts of laws principles.

 

	
D.        

	
The titles and subtitles used in this Amendment are used for convenience only and are not to be considered in construing or interpreting this Amendment.

 

 

  [Signature Pages Follow]

 

  

3

  

 

In Witness Whereof, the parties hereto have executed this Amendment as of the date set forth in the first paragraph hereof.

 

	  	 
	 	 
	 	 	 
	 	

TAMIR BIOTECHNOLOGY, INC.

	 	 
	 	 	 
	 	By:	/s/ Lawrence A. Kenyon
	 	Name: 	Lawrence A. Kenyon
	 	Title: 	Chief Executive Officer and Chief   Financial Officer
	 	 	 

[Signature Page to Third Amendment to IRA]

  

  

  

 

	  	
REQUIRED HOLDERS:

	 	 
	 	 
	  	
EUROPA INTERNATIONAL, INC.

	 	 
	 	 
	  	
By:

	
/s/ Fred Knoll

	  	
Name:

	
Fred Knoll

	  	
Title:

	
 Knoll Capital Management, Investment Manager for Europa Int’l, Inc.

	 	 	 
	 	 	 
	  	
UNILAB LP

	 	 
	 	 
	  	
By:

	
/s/ F. Patrick Ostronic

	  	
Name:

	
 F. Patrick Ostronic

	  	
Title:

	
Director, Unilab GP Inc., General Partner for Unilab LP

	 	 	 
	  	  	  
	  	
MARY M. MCCASH TRUST DECLARATION DECLARED OCTOBER 20, 2008

	 	 
	 	 
	  	
By:

	
/s/ Mary M. McCash

	  	
Name:

	
 Mary M. McCash

	  	
Title:

	
 Trustee

	 	 	 
	  	  	  
	  	
THE MICHAEL J. MCCASH LIVING TRUST

	 	 
	 	 
	  	
By:

	
/s/ Michael J. McCash

	  	
Name:

	
Michael J. McCash

	  	
Title:

	
Trustee and Grantor

	 	 	 
	 	 	 
	  	
COLLEEN A. LOWE

	 	 
	 	 
	  	
 

	
/s/ Colleen A. Lowe

	  	
 

	Colleen A. Lowe
	 	 	 
	 	 	 
	  	
CORINNE M. POQUETTE

	 	 
	 	 
	  	
 

	
/s/ Corinne M. Poquette

	  	 	
Corinne M. Poquette

	 	 	 
	 	 	 
	  	
DAVID J. MCCASH

	 	 
	 	 
	  	  	
/s/ David J. McCash

	  	 	
David J. McCash

[Signature Page to Third Amendment to IRA]

  

  

  

 

	  	  	
NEW PURCHASERS:

	 	 	 
	 	 	 
	  	  	
W-NET FUND I, LP

	 	 	 	 
	 	 	 	 
	  	  	
By:

	
/s/ David Weiner

	  	  	
Name:

	
 David Weiner

	  	  	
Title:

	
 Manager of General Partner

	 	 	 	 
	 	 	 	 
	  	  	
FRAGRANT PARTNERS, LLC

	 	 	 
	 	 	 
	  	  	
By:

	
/s/ Aryeh Rubin

	  	  	
Name:

	
 Aryeh Rubin

	  	  	
Title:

	
 General Partner

	  	  	  	  
	  	  	
REVACH FUND LP

	  	  	  	  
	  	  	  	  
	  	  	
By:

	
/s/ Chaim Davis

	  	  	
Name:

	
Chaim Davis

	  	  	
Title:

	
Managing Member

	  	  	  	  
	  	  	  	  
	  	  	  	
/s/ Chaim Davis

	  	  	
 

	
Chaim Davis

	  	  	  	  

 

[Signature Page to Third Amendment to IRA]ex10-3.htm

Tamir Biotechnology, Inc. 8-K

 

Exhibit 10.3

 

CONSENT AND WAIVER

OF

THE HOLDERS

OF THE

5% SENIOR SECURED CONVERTIBLE PROMISSORY NOTES

OF

 

TAMIR BIOTECHNOLOGY, INC.

 

This Consent and Waiver (this “Consent”) of the holders of the 5% Senior Secured Convertible Promissory Notes due February 16, 2013 (as amended, the “Senior Notes”) of Tamir Biotechnology, Inc. (the “Company”), made as of November 30, 2012, is being entered into by the undersigned holders of a majority of the aggregate outstanding principal amount of the Senior Notes (the “Required Holders”), and the Company.

 

WHEREAS, the Company desires to enter into a Securities Purchase Agreement with certain of its affiliates in the Form of Exhibit A hereto (the “Securities Purchase Agreement”);

 

WHEREAS, the Company desires to license its rights to its Onconase pharmaceutical product (“Onconase”) to certain of its affiliates;

 

WHEREAS, pursuant to Section 2B(vii) of the Senior Notes, the Company may not enter into certain transactions with affiliates of the Company unless it has obtained the prior written consent of Holders of not less than 50% of the outstanding Principal Amount of the Senior Notes;

 

WHEREAS, pursuant to Section 5A of the Senior Notes, the provisions of the Senior Notes may from time to time be amended by the Required Holders;

 

WHEREAS, the Company has requested, and the Required Holders have agreed, to amend certain provisions of the Senior Notes, in the manner, and on the terms and conditions, provided for herein; and

 

WHEREAS, in consideration of such amendments to the Senior Notes, the Series B Warrants to Purchase Common Stock issued October 19, 2009 together with the Senior Notes (the “Series B Warrants”) shall be amended as provided herein.

 

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Company and the Required Holders hereby agree as follows:

 

1.   Definitions.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Senior Notes.

 

  

  

  

2.   Consent to Affiliate Transactions

 

(a) Securities Purchase Agreement.  The Required Holders hereby consent to the Company’s entry into the Securities Purchase Agreement, substantially in the form of Exhibit A hereto, and the consummation of the transactions contemplated thereby.

 

(b) Onconase License.  The Required Holders hereby consent to the Company’s license of Onconase to James O. McCash (“McCash”) and/or his affiliates (such licensee being referred to herein as the “Licensee”), on terms which include (i) the issuance to the Licensee of a warrant to purchase 23,750,000 shares of the Company’s common stock at an exercise price of $.01 per share, (ii) no other payments or other consideration provided, or expenditures incurred by, the Company to the Licensee in connection with such License, and (iii) the entry by McCash and affiliated stockholders of the Company into a general release in favor of the Company.

 

3.   Amendment to Section 4A of the Senior Notes.  Section 4A of the Senior Notes is hereby amended and restated to read in its entirety as follows:

 

“A.           Conversion by Holders.

 

(i)           Optional Conversion.  The holder of this Note shall have the option, at any time and from time to time, prior to the date on which the Company makes payment in full of the Principal Amount of this Note in accordance herewith, all accrued interest thereon and all other amounts due and payable thereunder to convert all or any portion of the outstanding Principal Amount of this Note plus all accrued and unpaid interest thereon (such Principal Amount and accrued and unpaid interest to be so converted the “Conversion Amount”) into shares of common stock, par value $.001 per share (“Common Stock”), of the Company at an initial conversion price per share equal to $.15 per share (the “Conversion Price”), subject to adjustment as provided in subsection 4E below.  The shares of Common Stock issuable upon conversion of this Note at the Conversion Price are referred to herein as the “Conversion Shares.”

 

(ii)           Automatic Conversion.  At any time prior to the date on which the Company makes payment in full of the Principal Amount of this Note, the Conversion Amount under this Note shall automatically be converted into shares of Common Stock, based on the then-effective Conversion Price, at any time upon the affirmative election of the Required Holders.  Upon such election by the Required Holders, the Conversion Amount shall be converted automatically without any further action by the holder of this Note and whether or not this Note is surrendered to the Company; provided, however, that the Company shall not be obligated to issue certificates evidencing the shares of Common Stock issuable upon such conversion unless this Note is either delivered to the Company, or the holder of this Note notifies the Company that such Note has been lost, stolen or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection therewith.  Following such automatic conversion and surrender of this Note to the Company, the Company shall, as soon as reasonably practicable, issue and deliver to Payee or to the nominee or nominees of Payee, a certificate or certificates for the number of shares of Common Stock to which the Holder shall be entitled as aforesaid.”

 

  

2

  

4.   Amendment to Section 4C(i) of the Senior Notes.  Section 4C(i) of the Senior Notes is hereby amended by deleting “4A” in such Section and replacing it with “4A(i)”.

 

5.   Automatic Conversion.  Each of the Required Holders hereby (i) elects to convert the Conversion Amount under its Senior Note into Common Stock effective immediately prior to the “Closing” under the Securities Purchase Agreement and that this Consent shall constitute such holder’s Optional Conversion Notice under Section 4C(i) of the Senior Notes, (ii) acknowledges and agrees that the Conversion Price in connection with such conversion is $.15 per share, (iii) agrees to take all actions (if any) necessary or desirable under Section 4A of the Senior Note to effect such conversion, and (iv) acknowledges and agrees that all of the Senior Notes shall be automatically be converted into Common Stock pursuant to Section 4A(ii) of the Senior Notes without any further action on behalf of any holder of the Senior Notes.

 

6.   Amendment to Series B Warrants.  In consideration of the agreements of the Required Holders hereunder, the Company agrees that from and after the date hereof, the “Exercise Price” of the Series B Warrants is hereby reduced from $.25 per share to $.01 per share.

 

7.   No Other Waivers or Amendments.  Except as expressly provided herein, the Senior Notes and the Series B Warrants shall be unmodified and shall continue to be in full force and effect in accordance with their terms.    Each reference in the Senior Notes to “this Note”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Senior Notes as amended hereby, and each reference in the Series B Warrants to “this Warrant”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Series B Warrants as amended hereby.

 

8.   Governing Law.  The laws of the State of New York shall govern all matters arising out of, in connection with or relating to this Consent, including, without limitation, its validity, interpretation, construction, performance and enforcement.

 

9.   Counterparts.  This Amendment may be executed by the parties hereto on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

[Remainder of Page Intentionally Left Blank]

  

3

  

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

.

 

	  	 
	 	 
	 	 	 
	 	
TAMIR BIOTECHNOLOGY, INC.

	 	 
	 	 	 
	 	By:	/s/ Lawrence A. Kenyon
	 	Name: 	Lawrence A. Kenyon
	 	Title: 	Chief Executive Officer and Chief   Financial Officer
	 	 	 

 

  

  

  

	  	
REQUIRED HOLDERS:

	 	  	 
	  	
EUROPA INTERNATIONAL, INC.

	 	 	 
	 	 	 
	  	
By:

	
/s/ Fred Knoll

	  	Name:	
Fred Knoll

	  	
Title:

	
Knoll Capital Management, Investment Manager for Europa Int’l, Inc.

	 	 	 
	  	
UNILAB LP

	  
	 	 	 
	 	 	 
	  	
By:

	
/s/ F. Patrick Ostronic

	  	Name:	
F. Patrick Ostronic

	  	
Title:

	
Director, Unilab GP Inc., General Partner for Unilab LP

	  	  	  
	  	
MARY M. MCCASH TRUST DECLARATION DECLARED OCTOBER 20, 2008

	 	 
	 	 
	  	
By:

	
/s/ Mary M. McCash

	  	Name: 	
Mary M. McCash

	  	
Title:

	
Trustee

	  	  	  
	  	
THE MICHAEL J. MCCASH LIVING TRUST

	 	 
	 	 
	  	
By:

	
/s/ Michael J. McCash

	  	Name: 	
Michael J. McCash

	  	
Title:

	
Trustee and Grantor

	 	 	 
	 	 	 
	  	
COLLEEN A. LOWE

	 	 
	 	 
	  	
 

	
/s/ Colleen A. Lowe

	  	  	
Colleen A. Lowe

	 	 	 
	 	 	 
	  	
CORINNE M. POQUETTE

	 	 
	 	 
	  	
 

	
/s/ Corinne M. Poquette

	  	  	
Corinne M. Poquette

	 	 	 
	 	 	 
	  	
DAVID J. MCCASH

	 	 
	 	 
	  	  	
/s/ David J. McCash

	  	  	
David J. McCash

[Signature Page to Consent and Waiver]

  

  

  

 

  EXHIBIT A

  SECURITIES PURCHASE AGREEMENT

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