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Title: |
Stock Purchase and Stock Issuance Agreement |
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Entities: |
Exelixis, Inc.; Cooley Godward LLP; Smithkline Beecham Corporation |
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Date: |
2002 |
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Size: |
Preview shows 23KB of 121KB total |
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Price: |
$62 |
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ID: |
#283763 |
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Start of Preview |
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STOCK PURCHASE AND STOCK ISSUANCE AGREEMENT
BETWEEN
SMITHKLINE BEECHAM CORPORATION
AND
EXELIXIS, INC.
DATED AS OF
OCTOBER 28, 2002
{PAGE}
TABLE OF CONTENTS
PAGE
ARTICLE I
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Affiliate. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Change of Control. . . . . . . . . . . . . . . . . . . . . . . . 2
Closing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Deferral Notice. . . . . . . . . . . . . . . . . . . . . . . . . 2
Deferral Period. . . . . . . . . . . . . . . . . . . . . . . . . 2
Development Term . . . . . . . . . . . . . . . . . . . . . . . . 2
DWAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . 2
Exchange Act . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Exercise Notice. . . . . . . . . . . . . . . . . . . . . . . . . 2
Expanded Program Option. . . . . . . . . . . . . . . . . . . . . 2
Expanded Program Option Shares . . . . . . . . . . . . . . . . . 2
Extension Period . . . . . . . . . . . . . . . . . . . . . . . . 2
Fair Market Value. . . . . . . . . . . . . . . . . . . . . . . . 3
Financial Statements . . . . . . . . . . . . . . . . . . . . . . 3
Form 10-K. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Form 10-Q. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Governmental Authority . . . . . . . . . . . . . . . . . . . . . 3
HSR Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Initial Closing. . . . . . . . . . . . . . . . . . . . . . . . . 3
Initial Shares . . . . . . . . . . . . . . . . . . . . . . . . . 3
Intellectual Property. . . . . . . . . . . . . . . . . . . . . . 3
Legal Proceeding . . . . . . . . . . . . . . . . . . . . . . . . 3
Limited Program Option . . . . . . . . . . . . . . . . . . . . . 3
Limited Program Option Shares. . . . . . . . . . . . . . . . . . 3
Limited Release Date . . . . . . . . . . . . . . . . . . . . . . 3
Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . 3
Material Adverse Effect. . . . . . . . . . . . . . . . . . . . . 3
Material Agreement . . . . . . . . . . . . . . . . . . . . . . . 4
Material Breach. . . . . . . . . . . . . . . . . . . . . . . . . 4
Material Event . . . . . . . . . . . . . . . . . . . . . . . . . 4
National Securities Market . . . . . . . . . . . . . . . . . . . 4
OfficerCertificate . . . . . . . . . . . . . . . . . . . . . . . 4
Operating Documents. . . . . . . . . . . . . . . . . . . . . . . 4
Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Option Closing Date. . . . . . . . . . . . . . . . . . . . . . . 4
Option Exercise Date . . . . . . . . . . . . . . . . . . . . . . 4
Option Shares. . . . . . . . . . . . . . . . . . . . . . . . . . 4
Permitted Transferee . . . . . . . . . . . . . . . . . . . . . . 4
Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Registrable Shares . . . . . . . . . . . . . . . . . . . . . . . 4
Registration Expenses. . . . . . . . . . . . . . . . . . . . . . 4
Registration Statement . . . . . . . . . . . . . . . . . . . . . 4
Registration Trigger Date. . . . . . . . . . . . . . . . . . . . 4
Restricted Period. . . . . . . . . . . . . . . . . . . . . . . . 4
Rule 144 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SEC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SEC Affiliate. . . . . . . . . . . . . . . . . . . . . . . . . . 4
SEC Filings. . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Securities Act . . . . . . . . . . . . . . . . . . . . . . . . . 5
Selling Expenses . . . . . . . . . . . . . . . . . . . . . . . . 5
Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Standstill Period. . . . . . . . . . . . . . . . . . . . . . . . 5
Stock Repayment. . . . . . . . . . . . . . . . . . . . . . . . . 5
Stock Repayment Amount . . . . . . . . . . . . . . . . . . . . . 5
Stock Repayment Closing Date . . . . . . . . . . . . . . . . . . 5
Stock Repayment Notice . . . . . . . . . . . . . . . . . . . . . 5
Stock Repayment Shares . . . . . . . . . . . . . . . . . . . . . 5
Transaction Documents. . . . . . . . . . . . . . . . . . . . . . 5
Third Party. . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Trading Day. . . . . . . . . . . . . . . . . . . . . . . . . . . 5
United States or U.S.. . . . . . . . . . . . . . . . . . . . . . 5
ARTICLE 2
AUTHORIZATION AND ISSUANCE OF THE SHARES. . . . . . . . . . . . . . . 5
Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . 5
Issuance and Sale of the Initial Shares. . . . . . . . . . . . . 5
Issuance, Sale, Pricing and Conditions of the Option Shares. . . 5
The Expanded Program Option. . . . . . . . . . . . . . . . . . 6
The Limited Program Option . . . . . . . . . . . . . . . . . . 6
Issuance of the Stock Repayment Shares . . . . . . . . . . . . . 6
Conditional Limitation on Ownership. . . . . . . . . . . . . . . 7
ARTICLE 3
CLOSING; DELIVERY; NOTICE . . . . . . . . . . . . . . . . . . . . . . 7
Initial Closing. . . . . . . . . . . . . . . . . . . . . . . . . 7
Payment and Delivery of the Initial Shares . . . . . . . . . . . 7
Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Payment and Delivery of the Option Shares. . . . . . . . . . . . 8
Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Stock Repayment Shares . . . . . . . . . . . . . . . . . . . 8
Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Stock Repayment Closings . . . . . . . . . . . . . . . . . . . 8
Delivery; Satisfaction of Obligation . . . . . . . . . . . . . . 8
Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF EXELIXIS. . . . . . . . . . . . . . 9
Organization, Good Standings and Qualification. Exelixis. . . . 9
Authorization; Due Execution . . . . . . . . . . . . . . . . . . 9
Capital Stock. . . . . . . . . . . . . . . . . . . . . . . . . . 10
Validity of Shares . . . . . . . . . . . . . . . . . . . . . . . 10
SEC Filings; Financial Statements. . . . . . . . . . . . . . . . 10
SEC Filings. . . . . . . . . . . . . . . . . . . . . . . . . . 10
Financial Statements . . . . . . . . . . . . . . . . . . . . . 11
No Material Adverse Effect . . . . . . . . . . . . . . . . . . 11
Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Governmental Consents. . . . . . . . . . . . . . . . . . . . . . 11
Compliance with Applicable Laws and Other Instruments. . . . . . 12
Compliance with Environmental Laws . . . . . . . . . . . . . . . 12
Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Intellectual Property. . . . . . . . . . . . . . . . . . . . . . 13
Effect of Representations and Warranties . . . . . . . . . . . . 13
ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF GSK; RESTRICTIONS ON TRANSFER OF
THE SHARES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Representations and Warranties . . . . . . . . . . . . . . . . . 13
Corporate Organization and Authority . . . . . . . . . . . . . 13
Authorization; Due Execution . . . . . . . . . . . . . . . . . 13
Investment Only. . . . . . . . . . . . . . . . . . . . . . . . 14
Experience . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Accredited Purchaser . . . . . . . . . . . . . . . . . . . . . 14
No Registration. . . . . . . . . . . . . . . . . . . . . . . . . 14
Limitations on Transfer. . . . . . . . . . . . . . . . . . . . . 14
Legend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ARTICLE 6
CONDITIONS TO CLOSING . . . . . . . . . . . . . . . . . . . . . . . . 15
Conditions to Obligations of GSK to Consummate each Closing. . . 15
Conditions to Obligations of Exelixis to Consummate each Closing 17
ARTICLE 7
ADDITIONAL AGREEMENTS; LOCK UP; STANDSTILL. . . . . . . . . . . . . . 17
Registration of Shares . . . . . . . . . . . . . . . . . . . . . 17
Registration Requirements. . . . . . . . . . . . . . . . . . . 17
Incidental Registration. . . . . . . . . . . . . . . . . . . . 18
Registration Expenses. . . . . . . . . . . . . . . . . . . . . 19
Registration Suspension. . . . . . . . . . . . . . . . . . . . 19
Registration Procedures. . . . . . . . . . . . . . . . . . . . 20
Indemnification. . . . . . . . . . . . . . . . . . . . . . . . 20
Filings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Other Actions. . . . . . . . . . . . . . . . . . . . . . . . . . 22
Lock Up and Selling Restrictions . . . . . . . . . . . . . . . . 22
Standstill . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Conditions Eliminating Standstill. . . . . . . . . . . . . . . . 24
Conditions Eliminating Lock Up . . . . . . . . . . . . . . . . . 24
Use of Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . 25
Exelixis Repurchase Option . . . . . . . . . . . . . . . . . . . 25
ARTICLE 8
MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Publicity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Dispute Resolution . . . . . . . . . . . . . . . . . . . . . . . 26
Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . . 26
Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Performance Warranty . . . . . . . . . . . . . . . . . . . . . . 26
Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Force Majeure. . . . . . . . . . . . . . . . . . . . . . . . . . 28
Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Severability . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Entire Agreement . . . . . . . . . . . . . . . . . . . . . . . . 28
Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Use of Name. . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Further Actions. . . . . . . . . . . . . . . . . . . . . . . . . 29
Survival of Representations and Warranties . . . . . . . . . . . 29
Parties in Interest. . . . . . . . . . . . . . . . . . . . . . . 29
Construction of Agreement. . . . . . . . . . . . . . . . . . . . 29
Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . 29
FinderFees . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Waiver of Jury Trial . . . . . . . . . . . . . . . . . . . . . . 30
{PAGE}
LIST OF SCHEDULES
SCHEDULE 4.3 SCHEDULE OF OUTSTANDING SECURITIES
SCHEDULE 4.6 DISCLOSURE OF OUTSTANDING LITIGATION
[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.
{PAGE}
STOCK PURCHASE AND STOCK ISSUANCE AGREEMENT
THIS STOCK PURCHASE AND STOCK ISSUANCE AGREEMENT (the "Stock Purchase
Agreement") is made and entered into as of October 28, 2002 (the "Effective
Date") by and between EXELIXIS, INC., a Delaware corporation, having its
principal place of business at 170 Harbor Way, P.O. Box 511, South San
Francisco, California 94083 ("Exelixis"), and SMITHKLINE BEECHAM CORPORATION, a
Pennsylvania corporation doing business as GlaxoSmithKline ("GSK"). Exelixis and
GSK are sometimes referred to herein individually as a "Party" and collectively
as the "Parties."
RECITALS
A. Exelixis and GSK have entered into that certain Product Development
and Commercialization Agreement of even date herewith (the "Development
Agreement") and the Loan and Security Agreement of even date herewith (the "Loan
Agreement") (this Stock Purchase Agreement, Development Agreement and Loan
Agreement, are collectively referred to herein as the "Transaction Documents")
and, in connection with, and as a condition of entering into the Development
Agreement, the Parties desire to enter into this Stock Purchase Agreement
providing for the purchase of capital stock of Exelixis by GSK.
B. Exelixis desires to sell to GSK, and GSK desires to make an initial
purchase from Exelixis of Two Million (2,000,000) shares (the "Initial Shares")
of Exelixis' common stock, par value $0.001 per share (the "Common Stock"), upon
the Initial Closing (as defined in Section 3.1).
C. Exelixis and GSK desire to provide for the possibility of additional
purchases by GSK of up to [*] shares of Common Stock, at Exelixis' option,
in accordance with the terms and conditions set forth herein, subject to
the reduction of the number of shares as provided in Section 2.2.
D. Exelixis and GSK desire to provide for the issuance of additional shares
of Common Stock that may be issued, at Exelixis' option, such option to be
dependent on terms and conditions contained in the Loan Agreement and this Stock
Purchase Agreement, in repayment of any outstanding loan amounts under the Loan
Agreement (the "Stock Repayment Shares").
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties hereto, intending to be legally bound, do hereby agree as follows:
ARTICLE I
DEFINITIONS
Unless otherwise defined in this Stock Purchase Agreement, all capitalized
terms shall have the meanings given them in the Development Agreement or the
Loan Agreement. As used in this Stock Purchase Agreement, the following terms
shall have the following respective meanings:
1.1 "Affiliate" shall mean any Person, whether de jure or de facto,
which directly or indirectly through one (1) or more intermediaries controls, is
controlled by or is under common control with, a Party to this Stock Purchase
Agreement. A Person shall be deemed to "control" another Person if it (i) owns,
directly or indirectly, beneficially or legally, at least fifty percent (50%) of
the outstanding voting securities or capital stock (or such lesser percentage
which is the maximum allowed to be owned by a Person in a particular
jurisdiction) of such other Person, or has other comparable ownership interest
with respect to any Person other than a corporation; or (ii) has the power,
whether pursuant to contract, ownership of securities or otherwise, to direct
the management and policies of the Person.
1.2 "Change of Control" shall mean a transaction in which [ * ].
1.3 "Closing" shall have the meaning set forth in Section 3.4.2.
1.4 "Common Stock" shall have the meaning set forth in Recital B.
1.5 "Deferral Notice" shall have the meaning set forth in Section 7.1.4(b)
1.6 "Deferral Period" shall have the meaning set forth in Section 7.1.4(b)
1.7 "Development Term" shall have the meaning set forth in Section 3.1.1 of
the Development Agreement, as it may be amended from time to time.
1.8 "DWAC" shall have the meaning set forth in Section 3.4.3.
1.9 "Effective Date" shall have the meaning set forth in the introductory
paragraph.
1.10 "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, and the rules and regulations promulgated thereunder.
1.11 "Exercise Notice" shall have the meaning set forth in Section
3.3.1.
1.12 "Expanded Program Option" shall have the meaning set forth in Section
2.3.1.
1.13 "Expanded Program Option Shares" shall have the meaning set forth in
Section 2.3.1.
1.14 "Extension Period" shall have the meaning set forth in Section 3.1.2
of the Development Agreement, as it may be amended from time to time.
1.15 "Fair Market Value" shall have the meaning set forth in Section 2.4.
1.16 "Financial Statements" shall have the meaning set forth in Section
4.5.2.
1.17 "Form 10-K" shall mean an annual report filed by Exelixis with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act.
1.18 "Form 10-Q" shall mean a quarterly report filed by Exelixis with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act.
1.19 "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government,
and any corporation or other entity owned or controlled, through stock or
capital ownership or otherwise, by any of the foregoing.
1.20 "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended.
1.21. "Initial Closing" shall have the meaning set forth in Section 3.1.
1.22 "Initial Shares" shall have the meaning set forth in Recital B.
1.23 "Intellectual Property" shall have the meaning set forth in the Loan
Agreement.
1.24 "Legal Proceeding" shall mean any action, suit, litigation,
arbitration, proceeding (including any civil, criminal, administrative,
governmental or appellate proceeding), hearing, inquiry, audit, examination or
investigation commenced, brought, conducted or heard by or before, or otherwise
involving, any court or other Governmental Authority or any arbitrator or
arbitration panel.
1.25 "Limited Program Option" shall have the meaning set forth in Section
2.3.2.
1.26 "Limited Program Option Shares" shall have the meaning set forth in
Section 2.3.2.
1.27 "Limited Release Date" shall have the meaning set forth in Section
7.4.2.
1.28 "Loan Documents" shall have the meaning set forth in Section 1.45 of
the Loan Agreement.
1.29 "Material Adverse Effect" shall mean any material adverse effect upon
(a) the validity or enforceability of this Stock Purchase Agreement or any of
the transactions contemplated by this Stock Purchase Agreement, (b) on the
business, operations, condition (financial or otherwise), performance or
properties of Exelixis taken as a whole, or (c) upon the ability of Exelixis to
fulfill any of its obligations under this Stock Purchase Agreement.
1.30 "Material Agreement" shall mean any agreement which is filed by
Exelixis as part of its SEC Filings.
1.31 "Material Breach" shall have the meaning set forth in Section 12.2.1
of the Development Agreement.
1.32 "Material Event" shall have the meaning set forth in Section 7.1.4.
1.33 "National Securities Market" shall mean the Nasdaq National Market
System, The Nasdaq SmallCap Market and any other national public securities
exchange.
1.34 "Officer's Certificate" shall have the meaning set forth in Section
6.1.2.
1.35 "Operating Documents" shall mean Exelixis' amended and restated
certificate of incorporation, as filed with the State of Delaware, amended and
restated bylaws, and all modifications and amendments thereto.
1.36 "Option" shall have the meaning set forth in Section 2.3.
1.37 "Option Closing Date" shall have the meaning set forth in Section
3.3.2.
1.38 "Option Exercise Date" shall have the meaning set forth in Section
3.3.1.
1.39 "Option Shares" shall have the meaning set forth in Section 2.3.2.
1.40 "Permitted Transferee" shall have the meaning set forth in Section
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