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Securities Purchase Agreement

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Title:

Securities Purchase Agreement

Entities:

Oravax Inc

Date:

2001

Size:

Preview shows 21KB of 325KB total

Price:

$99

ID:

#1408202

► Purchase & Sale ► Purchase ► Stock ► Securities Purchase Agreements

Start of Preview

NOVARTIS PHARMA AG

AND

ORGANOGENESIS, INC.

SECURITIES PURCHASE AGREEMENT

CONFIDENTIAL

------------

<PAGE>

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

TABLE OF CONTENTS

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Page

<S> <C>

1. Purchase and Sale of Securities........................................................................ 1

1.1 First Put Option Investment................................................................... 1

1.2 Second Put Option Investment.................................................................. 2

1.3 Closings...................................................................................... 2

1.4 Rescission Notice............................................................................. 3

1.5 Certain Adjustments to the Conversion Price................................................... 3

1.6 Closings...................................................................................... 4

2. Closing Dates, Delivery................................................................................ 4

2.1 Closing Dates................................................................................. 4

2.2 Delivery...................................................................................... 4

2.3 Further Assurances............................................................................ 5

3. Representations and Warranties of the Company.......................................................... 5

3.1 Organization, Good Standing and Qualification................................................. 5

3.2 Capitalization and Voting Rights.............................................................. 5

3.3 Subsidiaries.................................................................................. 7

3.4 Authorization................................................................................. 7

3.5 No Conflict................................................................................... 7

3.6 Valid Issuance of the Securities and Underlying Shares........................................ 8

3.7 Indebtedness and Contractual Liabilities...................................................... 8

3.8 Governmental Consents......................................................................... 8

3.9 Litigation.................................................................................... 8

3.10 Employees and Consultants..................................................................... 9

3.11 Patents and Trademarks........................................................................ 9

3.12 Compliance with Other Instruments............................................................. 10

3.13 Agreements; Action............................................................................ 10

3.14 Registration Rights........................................................................... 11

3.15 Title to Property and Assets.................................................................. 11

3.16 Financial Statements.......................................................................... 11

3.17 Employee Benefit Plans........................................................................ 12

3.18 Tax Returns, Payments and Elections........................................................... 12

3.19 Insurance..................................................................................... 13

3.20 Labor Agreements and Actions.................................................................. 13

3.21 Real Property Holding Corporation............................................................. 13

3.22 Offering...................................................................................... 13

3.23 Environmental Matters......................................................................... 13

3.24 Securities Laws............................................................................... 14

3.25 Licenses and Other Rights; Compliance with Laws............................................... 14

3.26 Reliance...................................................................................... 15

3.27 Absence of Certain Changes or Events.......................................................... 15

3.28 No Undisclosed Liabilities.................................................................... 15

</TABLE>

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CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

<TABLE>

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3.29 Listing and Maintenance Requirements.......................................................... 15

3.30 Form S-3 Eligibility.......................................................................... 15

4. Representations and Warranties of the Investor......................................................... 16

4.1 Authorization, Governmental Consents and Compliance with Other Instruments.................... 16

4.2 Beneficial Ownership.......................................................................... 16

4.3 Purchase Entirely for Own Account............................................................. 16

4.4 Investment Experience......................................................................... 16

4.5 Accredited Investor........................................................................... 16

5. Conditions to Closings of Investor..................................................................... 17

5.1 Representations and Warranties Correct........................................................ 16

5.2 Covenants..................................................................................... 17

5.3 Compliance Certificate........................................................................ 17

5.4 Legal Opinion................................................................................. 17

5.5 Certification of Resolutions and Officers..................................................... 18

5.6 Organizational Documents...................................................................... 18

5.7 Good Standing Certificates.................................................................... 18

5.8 Rights Agreement.............................................................................. 18

5.9 No Voluntary Bankruptcy....................................................................... 18

5.10 Additional Closing Conditions................................................................. 19

5.11 Preferred Stock Issuance Conditions........................................................... 20

5.12 Convertible Notes Issuance Conditions......................................................... 21

5.13 Public Company................................................................................ 21

6. Conditions to Closings of the Company.................................................................. 21

6.1 Representations and Warranties Correct........................................................ 21

7. Mutual Conditions of Closings.......................................................................... 21

7.1 Qualifications................................................................................ 21

7.3 License and Supply Agreement.................................................................. 21

7.4 ***........................................................................................... **

7.5 Registration Statement and Supplement......................................................... 22

8. ***.................................................................................................... 22

9. Additional Covenants and Agreements.................................................................... 23

9.1 HSR Filing.................................................................................... 23

9.2 Availability of Common Stock.................................................................. 23

9.3 American Stock Exchange Listing............................................................... 23

</TABLE>

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CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

<TABLE>

<S> <C>

9.4 Conduct of Business........................................................................... 23

9.5 Registration Statement; Prospectus Supplement to the Registration Statement................... 24

9.6 1996 Stock Purchase Agreement................................................................. 24

9.7 Exchange Act Registration..................................................................... 24

9.8 Conversion Obligations of the Company......................................................... 24

9.9 Registration Rights Agreement................................................................. 25

9.11 Additional Representations and Warranties..................................................... 25

9.12 Annual Inspections............................................................................ 25

9.13 Stockholder Vote.............................................................................. 25

9.14 No Modification of Existing Debt.............................................................. 26

10. Miscellaneous.......................................................................................... 26

10.1 Survival of Warranties........................................................................ 26

10.2 Indemnification............................................................................... 26

10.3 Remedies...................................................................................... 27

10.4 Successors and Assigns........................................................................ 27

10.5 Entire Agreement.............................................................................. 27

10.6 Governing Law and Consent to Jurisdiction..................................................... 27

10.7 Counterparts.................................................................................. 28

10.8 Titles and Subtitles.......................................................................... 28

10.9 Nouns and Pronouns............................................................................ 28

10.10 Notices....................................................................................... 28

10.11 Finder's Fee.................................................................................. 29

10.12 Expenses...................................................................................... 29

10.13 Amendments and Waivers........................................................................ 29

10.14 Severability.................................................................................. 29

10.15 Confidentiality and Publicity................................................................. 30

10.16 Definitions................................................................................... 30

10.17 Exchanges; Lost, Stolen or Mutilated Certificates............................................. 35

11. Termination............................................................................................ 36

</TABLE>

Exhibit A Form of 7% Subordinated Convertible Notes

Exhibit B Form of Certificate of Designations for Series D Convertible

Redeemable Preferred Stock

Exhibit C Form of Opinion of Counsel to the Company

Exhibit D Form of Officer's Certificate of Company

Exhibit E Form of Registration Rights Agreement

Annex A Confidential Treatment

Annex B Form of Press Release

iii

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CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (this "Agreement") is made as of the

23rd day of February, 2001, (the "Effective Date") by and between Novartis

Pharma AG ("Novartis" or the "Investor"), a corporation organized under the laws

of Switzerland, with its principal place of business at Lichtstrasse 35, CH-

4002, Basel, Switzerland, and Organogenesis, Inc., (the "Company"), a Delaware

corporation with its principal place of business at 150 Dan Road, Canton,

Massachusetts 02021, USA.

THE PARTIES HEREBY AGREE AS FOLLOWS:

1. Purchase and Sale of Securities. Subject to the terms and conditions

hereof, the Company will issue and sell, and the Investor will buy from the

Company, up to an aggregate amount of $20,000,000 of (i) the Company's 7%

Subordinated Convertible Notes in substantially the form attached hereto as

Exhibit A (the "Convertible Notes"), if and to the extent that the Convertible

Notes Issuance Conditions (as set forth in Section 5.12) are satisfied or (ii)

shares of the Company's Series D Convertible Redeemable Preferred Stock, par

value $0.001 per share, containing the rights, preferences and other terms in

the Certificate of Designations attached hereto as Exhibit B (the "Certificate

of Designations" and such stock, the "Preferred Stock"), if and to the extent

that the Preferred Stock Issuance Conditions (as set forth in Section 5.11) are

satisfied. To the extent the Convertible Notes or the Preferred Stock are issued

and sold pursuant to the terms of this Agreement at any Closing (as defined

below), the Convertible Notes and/or the Preferred Stock are hereinafter

referred to as "Securities."

1.1 First Put Option Investment.

(a) At anytime after the date hereof and prior to December 31,

2003, *** the Company, at its option (the "First Put Option"), may propose to

sell Securities to the Investor, and the Investor will buy such Securities, for

a purchase price of, at the Company's election, either (i) $20,000,000 in cash

in U.S. dollars or (ii) $10,000,000 in cash in U.S. dollars (the "First Put

Option Purchase Price"). The First Put Option Notice shall state the First Put

Option Purchase Price. The date upon which such Securities will be sold (the

"First Put Option Closing") shall be as determined in Section 2.1 hereof.

Subject to the satisfaction of the conditions listed in Section 5, Section 6 and

Section 7, if the First Put Option Notice states that the First Put Option

Purchase Price shall be (i) $20,000,000, the Securities to be issued at the

First Put Option Closing shall be either (A) 20,000 shares of Preferred Stock or

(B) Convertible Notes in aggregate principal amount of $20,000,000 or (ii)

$10,000,000, the Securities to be issued at the First Put Option Closing shall

be either (A) 10,000 shares of Preferred Stock or (B) Convertible Notes in

aggregate principal amount of $10,000,000.

(b) If the First Put Option Closing does not occur on or prior to

December 31, 2003 (other than by reason of a material breach by the Investor of

its obligations hereunder),

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CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

pursuant to this Section 1.1, then the Investor shall not be required to pay any

sum to the Company pursuant to this Section 1.1.

1.2 Second Put Option Investment.

(a) Provided that the Company elected the First Put Option Purchase

Price to be $10,000,000 in a First Put Option Notice and the sale of Securities

pursuant to such notice was consummated, at anytime after the expiration of

three (3) months after the First Put Option Closing and prior to December 31,

2003, *** the Company, at its option (the "Second Put Option"), may propose to

sell Securities to the Investor, and the Investor will buy such Securities, for

a purchase price of $10,000,000 (the "Second Put Option Purchase Price") in cash

in U.S. dollars. The date upon which such Securities will be sold (the "Second

Put Option Closing") shall be as determined in Section 2.1 hereof. Subject to

the satisfaction of the conditions listed in Section 5, Section 6 and Section 7,

the Securities to be issued at the Second Put Option Closing shall be either (i)

10,000 shares of Preferred Stock or (ii) Convertible Notes in aggregate

principal amount of $10,000,000.

(b) If the Second Put Option Closing does not occur on or prior to

December 31, 2003 (other than by reason of a material breach by the Investor of

its obligations hereunder), pursuant to this Section 1.2, then the Investor

shall not be required to pay any sum to the Company pursuant to this Section

End of Preview

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