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Document Preview Loan and Security Agreement |
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Title: |
Loan and Security Agreement |
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Entities: |
Banc of America Securities LLC; Comdisco Holding Co. Inc.; Exelixis, Inc.; GlaxoSmithKline plc; Protein Design Labs, Inc.; Silicon Valley Bank; SmithKline Beecham Corp.; Cooley Godward LLP |
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Date: |
2002 |
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Size: |
Preview shows 33KB of 215KB total |
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Price: |
$82 |
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ID: |
#283764 |
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Start of Preview |
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LOAN AND SECURITY AGREEMENT
BETWEEN
SMITHKLINE BEECHAM CORPORATION
AND
EXELIXIS, INC.
DATED AS OF
OCTOBER 28, 2002
{PAGE}
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Advance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Affiliate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Biotechnology Company. . . . . . . . . . . . . . . . . . . . . . . . . 2
Borrowing Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Borrowing Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Business Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Capital Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Change in Control. . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Change in Control Rate of Interest . . . . . . . . . . . . . . . . . . 2
Collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Contract Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Default Rate of Interest . . . . . . . . . . . . . . . . . . . . . . . 2
Deposit Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Development Agreement. . . . . . . . . . . . . . . . . . . . . . . . . 2
Development Candidate. . . . . . . . . . . . . . . . . . . . . . . . . 2
Development Candidate Inventory. . . . . . . . . . . . . . . . . . . . 3
Development Compound . . . . . . . . . . . . . . . . . . . . . . . . . 3
Development Expiration Date. . . . . . . . . . . . . . . . . . . . . . 3
Development Program. . . . . . . . . . . . . . . . . . . . . . . . . . 3
Development Term . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Dollars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
DWAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Environmental Laws . . . . . . . . . . . . . . . . . . . . . . . . . . 3
ERISA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Event of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Exchange Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Excluded Collateral. . . . . . . . . . . . . . . . . . . . . . . . . . 3
Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Expanded Program Option. . . . . . . . . . . . . . . . . . . . . . . . 3
Extension Period . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Fair Market Value. . . . . . . . . . . . . . . . . . . . . . . . . . . 3
GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
General Advance(s) . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Governmental Entity. . . . . . . . . . . . . . . . . . . . . . . . . . 4
HSR Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Included Compounds . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Initial Advance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Intellectual Property. . . . . . . . . . . . . . . . . . . . . . . . . 4
Legal Proceeding . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
LIBOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Limited Program Option . . . . . . . . . . . . . . . . . . . . . . . . 4
Loan Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Major Pharmaceutical Company . . . . . . . . . . . . . . . . . . . . . 5
Material Adverse Effect. . . . . . . . . . . . . . . . . . . . . . . . 5
Maturity Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Maximum Loan Amount. . . . . . . . . . . . . . . . . . . . . . . . . . 5
National Securities Market . . . . . . . . . . . . . . . . . . . . . . 5
Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Operating Documents. . . . . . . . . . . . . . . . . . . . . . . . . . 5
OSHA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Party. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Patents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Patent Office Filing . . . . . . . . . . . . . . . . . . . . . . . . . 5
Payment Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Product Specific Advance(s). . . . . . . . . . . . . . . . . . . . . . 6
Repayment Period . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SEC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SEC Affiliate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SEC Filings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Securities Account Control Agreement . . . . . . . . . . . . . . . . . 6
Securities Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Stock Purchase Agreement . . . . . . . . . . . . . . . . . . . . . . . 6
Stock Repayment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Stock Repayment Amount . . . . . . . . . . . . . . . . . . . . . . . . 6
Stock Repayment Closing Date(s). . . . . . . . . . . . . . . . . . . . 6
Stock Repayment Notice . . . . . . . . . . . . . . . . . . . . . . . . 6
Stock Repayment Shares . . . . . . . . . . . . . . . . . . . . . . . . 6
Tangible Net Worth . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Third Party. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Total Advance Amount . . . . . . . . . . . . . . . . . . . . . . . . . 7
Trading Day. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Transaction Documents. . . . . . . . . . . . . . . . . . . . . . . . . 7
UCC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
UCC Financing Statement(s) . . . . . . . . . . . . . . . . . . . . . . 7
United States or U.S.. . . . . . . . . . . . . . . . . . . . . . . . . 7
Working Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Accounting Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Other Definitional Provisions. . . . . . . . . . . . . . . . . . . . . 7
ARTICLE 2 AMOUNT AND TERMS OF CREDIT. . . . . . . . . . . . . . . . . . . . 8
Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
General Advances . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Product Specific Advances. . . . . . . . . . . . . . . . . . . . . . 8
Borrowing Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Disbursement of Advances . . . . . . . . . . . . . . . . . . . . . . . 9
SECURITY INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Grant of Security Interest . . . . . . . . . . . . . . . . . . . . . . 9
Development Patents. . . . . . . . . . . . . . . . . . . . . . . . . 9
Other Intellectual Property. . . . . . . . . . . . . . . . . . . . . 9
Deposit Account. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Development Candidate Inventory. . . . . . . . . . . . . . . . . . . 9
Capital Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . 9
Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
ARTICLE 4 INTEREST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Default Rate of Interest . . . . . . . . . . . . . . . . . . . . . . 10
Change of Control Rate of Interest . . . . . . . . . . . . . . . . . 10
Interest Computations. . . . . . . . . . . . . . . . . . . . . . . . 10
ARTICLE 5 REPAYMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Repayment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Payments on Non-Business Day . . . . . . . . . . . . . . . . . . . . . 10
Cash Payment Procedures. . . . . . . . . . . . . . . . . . . . . . . . 10
Milestone Payments . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Optional Cash Prepayments. . . . . . . . . . . . . . . . . . . . . . . 11
Repayment By Common Stock. . . . . . . . . . . . . . . . . . . . . . . 11
Exercise of Issuance Rights. . . . . . . . . . . . . . . . . . . . . 11
Limitation on Ownership. . . . . . . . . . . . . . . . . . . . . . . 11
Stock Repayment Notice . . . . . . . . . . . . . . . . . . . . . . . 11
Delivery of Stock Repayment Shares . . . . . . . . . . . . . . . . . 12
Conditions Precedent to Each Issuance of Stock Repayment Shares. . . 12
ARTICLE 6 CONDITIONS PRECEDENT. . . . . . . . . . . . . . . . . . . . . . . 13
Conditions Precedent to Initial Advance. . . . . . . . . . . . . . . . 13
Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Supporting Documents . . . . . . . . . . . . . . . . . . . . . . . . 13
Perfection of Liens. . . . . . . . . . . . . . . . . . . . . . . . . 13
Conditions Precedent to All Advances . . . . . . . . . . . . . . . . . 13
Borrowing Notice . . . . . . . . . . . . . . . . . . . . . . . . . . 14
No Event of Default. . . . . . . . . . . . . . . . . . . . . . . . . 14
No Termination under the Development Agreement . . . . . . . . . . . 14
Correctness of Representations . . . . . . . . . . . . . . . . . . . 14
No Material Adverse Effect . . . . . . . . . . . . . . . . . . . . . 14
Limitations Not Exceeded . . . . . . . . . . . . . . . . . . . . . . 14
Use of Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Additional Documents . . . . . . . . . . . . . . . . . . . . . . . . 14
CHANGE OF CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Condition Precedent to Disbursement of Second General Advance. . . . . 14
Exelixis Expenditures. . . . . . . . . . . . . . . . . . . . . . . . 14
Conditions Precedent to Disbursement of All Product Specific Advances. 15
Exelixis' Selection of a Development Candidate . . . . . . . . . . . 15
Marketable Title to Development Candidate Intellectual Property. . . 15
REPRESENTATIONS AND WARRANTIES OF EXELIXIS . . .. . . . . . . . . . . . . . 15
Organization, Good Standing and Qualification. . . . . . . . . . . . . 15
Authorization; Due Execution . . . . . . . . . . . . . . . . . . . . . 16
Valid Issuance of Stock. . . . . . . . . . . . . . . . . . . . . . . . 16
SEC Filings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Governmental Consents. . . . . . . . . . . . . . . . . . . . . . . . . 16
No Conflict. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Compliance with Law. . . . . . . . . . . . . . . . . . . . . . . . . . 17
Title to the Collateral. . . . . . . . . . . . . . . . . . . . . . . . 17
No Event of Default/Breach . . . . . . . . . . . . . . . . . . . . . . 17
Intellectual Property. . . . . . . . . . . . . . . . . . . . . . . . . 17
Effect of Representations and Warranties . . . . . . . . . . . . . . . 18
ARTICLE 8 REPRESENTATIONS AND WARRANTIES OF GSK . . . . . . . . . . . . . . 18
Authorization; Due Execution . . . . . . . . . . . . . . . . . . . . . 18
ARTICLE 9 COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Keeping of Books . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SEC Reporting Requirem . . . . . . . . . . . . . . . . . . . . . . . . 19
Maintenance of Rights and Existence. . . . . . . . . . . . . . . . . . 19
Governmental and Other Approvals . . . . . . . . . . . . . . . . . . . 19
Use of Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Compliance with the Laws . . . . . . . . . . . . . . . . . . . . . . . 19
Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Payment of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Access to Records and Property . . . . . . . . . . . . . . . . . . . . 20
Preservation of Title to Collateral. . . . . . . . . . . . . . . . . . 20
Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Intellectual Property. . . . . . . . . . . . . . . . . . . . . . . . . 20
Fees and Expenses in Protecting Rights . . . . . . . . . . . . . . . . 21
Capital Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Deposit Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Duration of Covenants. . . . . . . . . . . . . . . . . . . . . . . . . 21
ARTICLE 10 COVENANTS REGARDING PROHIBITED TRANSACTIONS. . . . . . . . . . . 21
Permitted Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Impairment of Title to Collateral. . . . . . . . . . . . . . . . . . . 22
Settlements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Change of Location or Name . . . . . . . . . . . . . . . . . . . . . . 22
Inconsistent Agreement . . . . . . . . . . . . . . . . . . . . . . . . 22
Violation of Representations, Warranties and Covenants . . . . . . . . 22
ARTICLE 11 FINANCIAL COVENANTS . . .. . . . . . . . . . . . . . . . . . . . 22
Working Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Tangible Net Worth . . . . . . . . . . . . . . . . . . . . . . . . . . 23
ARTICLE 12 EVENTS OF DEFAULT. . . . . . . . . . . . . . . . . . . . . . . . 23
Events of Default. . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Failure to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Other Defaults under the Loan Documents. . . . . . . . . . . . . . . 23
Termination of Development Agreement . . . . . . . . . . . . . . . . 23
Other Specific Events. . . . . . . . . . . . . . . . . . . . . . . . 23
Insolvency; Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . 23
ARTICLE 13 GSKRIGHTS AND REMEDIES UPON DEFAULT. . . . . . . . . . . . . . . 24
Rights and Remedies. . . . . . . . . . . . . . . . . . . . . . . . . . 24
Application of Proceeds of Disposition of Collateral . . . . . . . . . 25
Notice of Disposition of Collateral. . . . . . . . . . . . . . . . . . 25
Marshalling of Assets. . . . . . . . . . . . . . . . . . . . . . . . . 25
Waiver of Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Remedies Cumulative. . . . . . . . . . . . . . . . . . . . . . . . . . 26
Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
ARTICLE 14 GSKRIGHTS AND REMEDIES EXCLUSIVE OF DEFAULT. . . . . . . . . . . 26
UCC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Preservation of Collateral . . . . . . . . . . . . . . . . . . . . . . 26
Power of Attorney. . . . . . . . . . . . . . . . . . . . . . . . . . . 27
ARTICLE 15 INDEMNIFICATION. . . . . . . . . . . . . . . . . . . . . . . . . 27
Indemnification of GSK . . . . . . . . . . . . . . . . . . . . . . . . 27
ARTICLE 16 MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . 27
Publicity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Dispute Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Choice of Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Subordination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Entire Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Use of Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Further Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Waiver of Jury Trial . . . . . . . . . . . . . . . . . . . . . . . . . 30
Parties in Interest. . . . . . . . . . . . . . . . . . . . . . . . . . 30
Construction of Agreement. . . . . . . . . . . . . . . . . . . . . . . 30
No Liability for GSK . . . . . . . . . . . . . . . . . . . . . . . . . 30
Survival of Representations. . . . . . . . . . . . . . . . . . . . . . 30
No Usury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
COUNTERPARTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
COUNTERPARTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
EXHIBIT A PROMISSORY NOTE . . . . . . . . . . . . . . . . . . . . . . . . . 1-A
SCHEDULE 1-PROMISSORY NOTE. . . . . . . . . . . . . . . . . . . . . . . . . 1-B
SCHEDULE OF GENERAL ADVANCES. . . . . . . . . . . . . . . . . . . . . . . . 1-B
SCHEDULE OF PRODUCT SPECIFIC ADVANCES . . . . . . . . . . . . . . . . . . . 1-B
EXHIBIT B FORM OF PATENT OFFICE FILING. . . . . . . . . . . . . . . . . . . 1-C
ARTICLE 1 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-C
Affiliate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-C
CAPITAL EQUIPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
DEPOSIT ACCOUNT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Development Agreement. . . . . . . . . . . . . . . . . . . . . . . . . 2-C
DEVELOPMENT CANDIDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
DEVELOPMENT CANDIDATE INVENTORY . . . . . . . . . . . . . . . . . . . . . . 2-C
DEVELOPMENT COMPOUND . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
ENVIRONMENTAL LAWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Event of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Included Compounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Intellectual Property . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Loan Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Material Adverse Effect . . . . . . . . . . . . . . . . . . . . . . . . . . 2-C
Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-C
Patents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-C
Patent Office Filing . . . . . . . . . . . . . . . . . . . . . . . . . 3-C
Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-C
Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-C
Stock Purchase Agreement . . . . . . . . . . . . . . . . . . . . . . . 3-C
Third Party. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-C
Transaction Documents. . . . . . . . . . . . . . . . . . . . . . . . . 3-C
United States or U.S.. . . . . . . . . . . . . . . . . . . . . . . . . 3-C
UCC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-C
UCC Financing Statement(s) . . . . . . . . . . . . . . . . . . . . . . 3-C
Other Definitional Provisions. . . . . . . . . . . . . . . . . . . . . 3-C
ARTICLE 2 GRANT OF SECURITY . . . . . . . . . . . . . . . . . . . . . . . . 3-C
ARTICLE 3 REPRESENTATIONS, WARRANTIES and covenants OF EXELIXIS . . . . . . 4-C
Title to the Collateral. . . . . . . . . . . . . . . . . . . . . . . . 4-C
Infringement of the Collateral . . . . . . . . . . . . . . . . . . . . 5-C
Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . 5-C
Fees and Expenses in Protecting Rights . . . . . . . . . . . . . . . . 5-C
Pledge of Additional Collateral. . . . . . . . . . . . . . . . . . . . 6-C
Impairment of Title to Collateral. . . . . . . . . . . . . . . . . . . 6-C
Preservation of Title to Collateral. . . . . . . . . . . . . . . . . . 6-C
ARTICLE 4 GSK'S APPOINTMENT AS ATTORNEY-IN-FACT. . . . . . . . . . . . . . 6-C
APPOINTMENT OF GSK AS ATTORNEY-IN-FACT. . . . . . . . . . . . . . . . . . . 6-C
ARTICLE 5 EVENTS OF DEFAULT . . . . . . . . . . . . . . . . . . . . . . . . 7-C
ARTICLE 6 REMEDIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-C
ARTICLE 7 EXECUTION OF SPECIAL POWER OF ATTORNEY. . . . . . . . . . . . . . 7-C
ARTICLE 8 MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Amendments and Modification. . . . . . . . . . . . . . . . . . . . . . 8-C
Parties in Interest. . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Acknowledgment of Receipt. . . . . . . . . . . . . . . . . . . . . . . 8-C
No Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-C
Interest Granted to GSK. . . . . . . . . . . . . . . . . . . . . . . . 9-C
WAIVER OF JURY TRIAL . . . . . . . . . . . . . . . . . . . . . . . . . 9-C
Schedule 2.1.1 of the Patent Agreement. . . . . . . . . . . . . . . . . . . 1-D
PATENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-D
Pending Patent Applications. . . . . . . . . . . . . . . . . . . . . . 1-D
EXHIBIT A OF THE PATENT AGREEMENT . . . . . . . . . . . . . . . . . . . . . 1-E
FORM OF SPECIAL POWER OF ATTORNEY. . . . . . . . . . . . . . . . . . . 1-E
FORM OF SECURITIES ACCOUNT CONTROL AGREEMENT . . . . . . . . . . . . . 1-F
EXHIBIT D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-G
FORM OF BORROWING NOTICE . . . . . . . . . . . . . . . . . . . . . . . 1-G
EXHIBIT E. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 1-H
FORM OF STOCK REPAYMENT NOTICE . . . . . . . . . . . . . . . . . . . . 1-H
SCHEDULE 3.1.1 PATENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . 1-I
SCHEDULE 3.1.3 DEPOSIT ACCOUNT. . . . . . . . . . . . . . . . . . . . . . . 1-J
SCHEDULE 9.1 LOCATION OF THE COLLATERAL . . . . . . . . . . . . . . . . . . 1-K
SCHEDULE 9.16 PERMITTED INVESTMENTS . . . . . . . . . . . . . . . . . . . . 1-L
SCHEDULE 16.4 INDEBTEDNESS. . . . . . . . . . . . . . . . . . . . . . . . . 1-M
{PAGE}
LIST OF EXHIBITS
EXHIBIT A NOTE
EXHIBIT B PATENT OFFICE FILING
EXHIBIT C SECURITIES ACCOUNT CONTROL AGREEMENT
EXHIBIT D BORROWING NOTICE
EXHIBIT E STOCK REPAYMENT NOTICE
LIST OF SCHEDULES
SCHEDULE 3.1.1 PATENTS
SCHEDULE 3.1.3 DEPOSIT ACCOUNT
SCHEDULE 9.1 LOCATION OF THE COLLATERAL
SCHEDULE 9.16 PERMITTED INVESTMENTS
SCHEDULE 16.4 INDEBTEDNESS
[ * ] = 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.
LOAN AND SECURITY AGREEMENT
THIS LOAN AND SECURITY AGREEMENT (the "Loan Agreement") is executed as of
the 28th day of October, 2002 (the "Effective Date") by and between Exelixis,
Inc., a Delaware corporation ("Exelixis"), and SmithKline Beecham Corporation, a
Pennsylvania corporation, doing business as GlaxoSmithKline ("GSK"). Exelixis
and GSK are each referred to herein by name or as a "Party" or, collectively, as
"Parties".
RECITALS
A. Exelixis and GSK have entered into that certain Product Development
and Commercialization Agreement of even date herewith (the "Development
Agreement") and that certain Stock Purchase and Stock Issuance Agreement of even
date herewith (the "Stock Purchase Agreement");
B. In connection with, and as a condition of, Exelixis and GSK entering
into the Development Agreement and the Stock Purchase Agreement, Exelixis and
GSK have agreed to enter into this Loan Agreement pursuant to which Exelixis may
obtain during the Development Term (as defined below), from time to time,
certain loans from GSK, subject to the terms and conditions stated herein for
amounts up to the Maximum Loan Amount (as defined below); and
C. GSK is willing to provide such loans to, and in favor of, Exelixis,
subject to the terms and conditions of this Loan Agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be
legally bound, hereto agree as follows:
ARTICLE 1
DEFINITIONS
Unless otherwise defined in this Loan Agreement, all capitalized terms
shall have the meanings given them in the Development Agreement or the Stock
Purchase Agreement, as applicable. As used in this Loan Agreement, the
following terms shall have the following respective meanings:
1.1 "Advance" shall mean a loan made, or to be made, pursuant to
Article 2, which may be in the form of a General Advance or a Product Specific
Advance.
1.2 "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 the Loan Documents.
A Person shall be deemed to "control" another Person if it (a) 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 (b) has the power, whether pursuant to
contract, ownership of securities or otherwise, to direct the management and
policies of the Person.
1.3 "Biotechnology Company" shall mean any Person other than a Major
Pharmaceutical Company.
1.4 "Borrowing Date" shall mean any Business Day on which an Advance
occurs.
1.5 "Borrowing Notice" shall have the meaning assigned to such term in
Section 2.2.
1.6 "Business Day" shall mean any day, other than a Saturday, Sunday or
other day in which commercial banks are authorized or required in the United
States to be closed.
1.7 "Capital Equipment" shall have the meaning assigned to such term in
Section 3.1.5.
1.8 "Change in Control" shall mean a transaction in which [ * ].
1.9 "Change in Control Rate of Interest" shall mean the fixed rate of
interest per annum equal to [*].
1.10 "Collateral" shall have the meaning assigned to such term in Section
3.1.
1.11 "Common Stock" shall mean the common stock of Exelixis, par value
$0.001 per share.
1.12 "Contract Year" shall mean a year of 365 days (or 366 in a leap year)
beginning on the Effective Date and ending one (1) year thereafter and so on
year-by-year during the Term. "Contract Year One" shall mean the first such
year; "Contract Year Two" shall mean the second such year, and so on,
year-by-year.
1.13 "Default Rate of Interest" shall mean the fixed rate of interest per
annum equal to [*].
1.14 "Deposit Account" shall have the meaning assigned to such term in
Section 3.1.3.
1.15 "Development Agreement" shall have the meaning assigned to such term
in the Recitals.
1.16 "Development Candidate" shall have the meaning assigned to such term
in the Development Agreement.
1.17 "Development Candidate Inventory" shall have the meaning assigned to
such term in Section 3.1.4.
1.18 "Development Compound" shall have the meaning assigned to such term in
the Development Agreement.
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