COMMON STOCK PURCHASE AGREEMENT
EXHIBIT 10.54
EXECUTION
This Common Stock Purchase Agreement (the “Agreement”) is made as of the
4th day of November, 2005 by and between Introgen Therapeutics, Inc., a Delaware
corporation (the “Company”), and Colgate-Palmolive Company, a Delaware corporation (the
“Purchaser”).
Whereas, the Company desires to issue, and the Purchaser desires to acquire, common
stock of the Company, par value $0.001 per share (the “Common Stock”), on the terms and
conditions hereinafter set forth;
Whereas, contemporaneously with the execution of this Agreement, the Company and the
Purchaser have executed and delivered an Oral Healthcare Alliance Agreement (the “Alliance
Agreement”) pursuant to which the Company will conduct research in the Field (as defined in the
Alliance Agreement) and the Purchaser will have certain negotiation rights with respect to the
Field and products in the Field developed by the Company, subject to the terms and conditions set
forth in the Alliance Agreement; and
Whereas, the Company and the Purchaser have entered into a Confidentiality Disclosure
Agreement, dated January 18, 2005 (the “Confidentiality Agreement” and, together with this
Agreement and the Alliance Agreement, the “Transaction Documents”).
Now, Therefore, It Is Agreed between the parties as follows:
1. Purchase and Sale of Shares. On the terms and subject to the conditions contained herein,
the Purchaser hereby agrees to purchase from the Company, and the Company hereby agrees to sell to
the Purchaser, for an aggregate purchase price of Twenty Million Dollars ($20,000,000) (the
“Purchase Amount”), that number of shares of Common Stock (the “Shares”), rounded
down to the nearest whole share, determined by dividing (i) the Purchase Amount by (ii) the closing
bid price of the Common Stock as quoted on The Nasdaq National Market System (“NASDAQ”) on
the day prior to the date hereof. The closing of the transactions contemplated by this Agreement
(the “Closing”), including payment of the Purchase Amount for and delivery of the Shares,
shall occur at the offices of the Company concurrent with the execution of this Agreement and upon
the satisfaction or waiver of the conditions contained in Section 5.
2. Company Representations and Warranties. The Company hereby represents and warrants to the
Purchaser the following:
(a) Each of the Company and its subsidiaries (i) is a corporation duly organized,
validly existing and in good standing under the laws of the state of its respective
jurisdiction of incorporation, (ii) has full corporate power and authority to conduct its
business as presently conducted and to own, lease and to operate its properties and (iii) is
duly qualified and in good standing as a foreign corporation authorized to do business in
each jurisdiction in which the nature of its business or its ownership or leasing of
property requires such qualification, except with respect to clause (iii) and with respect
to clauses (i) and (ii) insofar as they relate to subsidiaries, where the failure to be so
qualified or in good standing, along with all other circumstances, changes, in or effects
on the Company and its subsidiaries does not and would not reasonably be expected to
result in a material adverse effect on (x) the business, condition (financial or otherwise),
results of operations, assets, liabilities or properties of the Company and its
subsidiaries, taken as a whole or (y) on the timely consummation of the transactions
contemplated hereby (a “Material Adverse Effect”). The Company has full corporate
power and authority to enter into, deliver and perform its obligations set forth in the
Transaction Documents and to carry out the transactions contemplated hereby and thereby.
(b) As of November 3, 2005 the authorized Capital Stock of the Company consisted of (i)
100,000,000 shares of Common Stock, of which 33,519,416 shares were issued and outstanding
as of November 3, 2005, and (ii) 5,000,000 shares of preferred stock, $0.001 par value per
share (the “Preferred Stock”), which may be issued from time to time in one or more
series, none of which shares were issued and outstanding as of November 3, 2005. All of the
outstanding shares of Common Stock have been duly authorized and validly issued and are
fully paid and nonassessable and were not issued in violation of any preemptive or similar
rights. As of November 3, 2005, 6,020,766 shares of Common Stock were reserved for issuance
to employees pursuant to outstanding stock options under the Company’s stock option plans
and 619,762 shares of Common Stock were issuable upon or otherwise deliverable in connection
with the conversion of outstanding securities that are convertible into Common Stock and the
exercise of outstanding warrants. Between August 8, 2005 and the date hereof, no shares of
the Company’s Capital Stock were issued other than (A) pursuant to stock options and
warrants already in existence on such date and (B) 56,090 shares of Common Stock issued to
Xxxxx X. Xxxxx on October 26, 2005 under the Company’s stock option plans. Between August
8, 2005 and the date hereof, no stock options, warrants or other securities convertible into
or exercisable for shares of Common Stock were issued or granted, except for (i) grants of
stock options to employees, officers and directors in the ordinary course of business and
(ii) an obligation of the Company to issue a warrant to purchase an aggregate of up to
94,183 shares of Common Stock
(c) The issuance, sale and delivery of the Shares in accordance with this Agreement
have been duly authorized by all necessary corporate action on the part of the Company. The
Shares, when issued, sold and delivered against payment therefor in accordance with this
Agreement, will be free and clear of all liens and other encumbrances imposed by or through
the Company (except as imposed pursuant to this Agreement), duly and validly issued, fully
paid and non-assessable and free from any preemptive rights.
(d) Neither the Company nor any of its subsidiaries is, nor after giving effect to the
consummation of the transactions contemplated hereby will be, (i) in violation of its
Certificate or Articles of Incorporation or Bylaws or other organizational or charter
documents (each as amended to the date hereof), (ii) in default under the terms of any bond,
debenture, note, indenture, mortgage, deed of trust or other agreement or instrument to
which it is a party or by which it is bound or to which any of its properties is subject or
(iii) in violation of any local, state or federal law, statute, ordinance, rule, regulation,
requirement, judgment or court decree or order applicable to the Company or any of its
subsidiaries or any of their assets or properties other than, in the case of clause (ii) and
(iii) and with respect to clause (i) insofar as it relates to subsidiaries, any default
or violation that would not reasonably be expected to result in a Material Adverse
Effect.
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To the knowledge of the Company, except as disclosed in the SEC Documents (as
hereinafter defined), there exists no condition that, with notice, the passage of time or
otherwise, would constitute any such default or violation.
(e) The execution, delivery and performance by the Company of the Transaction Documents
have been duly authorized by all necessary corporate action. The Transaction Documents have
been duly executed and delivered by the Company and constitute a valid and binding
obligation of the Company enforceable in accordance with its terms, subject to (i) the
effect of any bankruptcy or similar laws affecting creditors’ rights generally and (ii)
general principles of equity, regardless of whether a matter is considered in a proceeding
in equity or at law. The execution, delivery and performance by the Company of the
Transaction Documents does not require a vote of the holders of any of the Company’s Capital
Stock. The execution of, and consummation of the transactions contemplated by, this
Agreement and compliance with its provisions by the Company will not violate, conflict with
or result in any breach of any of the terms, conditions or provisions of, or constitute a
default under (or with notice or the lapse of time or both, would constitute a default), or
require a consent or waiver under, or result in the imposition of a lien on any properties
of the Company or any of its subsidiaries, or an acceleration of any indebtedness of the
Company or any of its subsidiaries pursuant to, (i) the Certificate or Articles of
Incorporation or Bylaws or other organizational or charter documents of the Company or any
such subsidiary (each as amended to the date hereof), (ii) any indenture, lease, agreement
or other instrument to which the Company or any of its subsidiaries is a party or by which
any of them or any of their properties is bound, or (iii) any violation of any local, state
or federal law, statute, ordinance, rule, regulation, requirement, judgment or court decree
or order applicable to the Company or any such subsidiary or any of their assets or
properties, except in the case of clauses (ii) and (iii) and with respect to clause (i)
insofar as it relates to subsidiaries, for such violations, conflicts, breaches, defaults,
consents, impositions of liens or acceleration that would not individually, or in the
aggregate, reasonably be expected to result in a Material Adverse Effect. Except for the
filing of the Prospectus (as defined below), no consent, approval, authorization or order
of, or filing, registration, qualification, license or permit of or with, any court or
governmental agency, department, commission, board, bureau, official or other
instrumentality of any national, federal, provincial, state, local, foreign or international
government or body or any political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government
(each, a “Governmental Authority”) or (ii) any other person is required for the
execution, delivery and performance by the Company of this Agreement, except where the
failure to obtain or make any such consent, approval, authorization or order of, or filing,
registration, qualification, license or permit would not reasonably be expected to result in
a Material Adverse Effect.
(f) The Common Stock is registered pursuant to Section 12(g) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), and is admitted for quotation on
NASDAQ, and the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act or delisting or
disqualifying the Common Stock from NASDAQ, nor has the
Company received any notification that the Securities and Exchange Commission (the
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“SEC”) or NASDAQ is contemplating terminating such registration or admission for
quotation.
(g) The Company has filed with the SEC under the Exchange Act, all reports, definitive
proxy materials and registration statements for all periods ending on or subsequent to
December 31, 2003 and on or prior to the date hereof (all of the foregoing being
collectively referred to as the “SEC Documents”), which are all such documents
(other than preliminary proxy materials) that the Company was required to file with the SEC
since December 31, 2003 through the date of this Agreement. As of their respective filing
dates, the SEC Documents complied in all material respects with the requirements of the
Exchange Act. None of the SEC Documents, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary
to make the statements made therein, in light of the circumstances in which they were made,
not misleading, except to the extent corrected by a SEC Document subsequently filed with the
SEC prior to the date hereof.
(h) Each of the financial statements, together with the related notes, included in the
Company SEC Documents complied in all material respects as to form, as of its date of filing
with the SEC, with all applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto and presents fairly in all material respects the
consolidated financial position of the Company and its subsidiaries as of and for the dates
indicated and the results of their operations and cash flows for the periods specified,
subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments and the absence of footnotes. Such financial statements have been prepared in
conformity with U.S. generally accepted accounting principles (“GAAP”) on a
consistent basis throughout the periods involved, except as may be expressly stated in the
related notes thereto. The report of the Company’s independent auditors regarding the
Company’s consolidated financial statements as of and for the periods ended December 31,
2004 and filed as part of the Company’s Annual Report on Form 10-K for the year ended
December 31, 2004 has not been withdrawn, supplemented or modified, and the Company has
received no communication from its independent auditors concerning any such withdrawal,
supplement or modification.
(i) To the Company’s knowledge, except as and to the extent adequately accrued or
reserved against in the audited consolidated balance sheet of the Company and its
subsidiaries as at December 31, 2004 and the unaudited consolidated balance sheets of the
Company and its subsidiaries as at March 31, 2005 and June 30, 2005, neither the Company nor
any of its subsidiaries has any liability or obligation of any nature, whether accrued,
absolute, contingent or otherwise, whether known or unknown and whether or not required by
GAAP to be reflected in a consolidated balance sheet of the Company and its subsidiaries or
disclosed in the notes thereto, except for liabilities and obligations, incurred in the
ordinary course of business consistent with past practice since June 30, 2005, that are not,
individually or in the aggregate, material to the Company or any of its subsidiaries.
(j) The Company and each of its subsidiaries maintain a system of accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorization; (ii) transactions are
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recorded as necessary to permit preparation of audited financial statements in conformity
with GAAP and to maintain accountability for assets; (iii) access to assets is permitted
only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.
(k) The Company has established and maintains disclosure controls and procedures (as
such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act), which are designed
(i) to ensure that information required to be disclosed by the Company in the reports that
it files or submits under the Exchange Act is recorded, processed, summarized and reported,
within the time periods specified by the SEC’s rules and forms and (ii) to ensure that
information required to be disclosed by the Company in the reports that it files or submits
under the Exchange Act is accumulated and communicated to the Company’s management,
including its principal executive officer and principal financial officer, as appropriate to
allow timely decisions regarding required disclosure.
(l) The Company is not aware of (i) any significant deficiency or material weaknesses
in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the Company’s ability to record, process, summarize and report
financial data ; or (ii) any fraud, whether or not material, that involves management or
other present employees who have a significant role in the Company’s internal control over
financial reporting. Since the most recent evaluation of the Company’s disclosure controls
and procedures described in Section 2(k) above, there have been no significant changes in
internal control over financial reporting or in other factors that have materially affected,
or are reasonably likely to materially affect, the Company’s internal control over financial
reporting. The Chief Executive Officer and the Chief Financial Officer of the Company have
signed, and the Company has furnished to the SEC, all certifications required by Sections
302 and 906 of the Xxxxxxxx-Xxxxx Act of 2002; such certifications contain no qualifications
or exceptions to the matters certified therein, except as to knowledge, and have not been
modified or withdrawn; and neither the Company nor any of its officers has received notice
from the SEC or any other Governmental Authority questioning or challenging the accuracy,
completeness, content, form or manner of filing or submission of such certifications.
(m) Except as may be disclosed in the SEC Documents filed prior to the date hereof,
since December 31, 2004, there has not been, individually or in the aggregate, any Material
Adverse Effect or any fact, event, change, development, circumstance or effect that would
reasonably be expected to result in a Material Adverse Effect.
(n) Since June 30, 2005, there has been (i) no action, suit or proceeding before or by
any Governmental Authority or arbitration tribunal filed or, to the Company’s knowledge,
threatened or contemplated to which the Company or any subsidiary is or would be a party or
to which the business or property of the Company or any subsidiary is or would be subject
and (ii) no injunction, restraining order, decree, or other order of any nature by a
Governmental Authority to which the Company or any of its subsidiaries is or may be subject
or to which the business, assets or property of the Company or any
subsidiary are or may be subject, that in either case, will be required to be disclosed
in the
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Company’s filings with the SEC for periods subsequent to those covered by the SEC
Documents.
(o) A registration statement on Form S-3 with respect to Common Stock (including all
documents incorporated by reference therein and all information contained in any prospectus
or prospectus supplement filed as a part or deemed to be a part of such registration
statement, each as amended, the “Registration Statement”) has (i) been prepared by
the Company in conformity with the requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and the rules and regulations, including Rule 415, of the
SEC thereunder (the “Rules and Regulations”), (ii) been filed with the SEC under the
Securities Act and (iii) become and is effective under the Securities Act. The Company has
prepared a prospectus, including one or more prospectus supplement(s), relating to the sale
of the Shares hereunder (collectively, the “Prospectus”). The Company will file the
Prospectus with the SEC not later than the time permitted by Rule 424(b) promulgated under
the Securities Act. True and complete copies of the Registration Statement and Prospectus
have been delivered by the Company to the Purchaser. The Registration Statement conforms,
and the Prospectus and any further amendments or supplements to the Registration Statement
or the Prospectus will, when they become effective or are filed with the SEC, as the case
may be, conform in all material respects to the requirements of the Securities Act and the
Rules and Regulations and do not and will not, as of the applicable effective date (as to
the Registration Statement and any amendment thereto) and as of the applicable filing date
(as to the Prospectus and any amendment or supplement thereto) and as of the Closing contain
an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading. The issuance of
the Shares to the Purchaser has been registered under the Registration Statement.
(p) The Shares are duly listed and admitted and authorized for trading, subject to
official notice of issuance, on the Nasdaq National Market.
(q) The Company is not a party to an agreement for, nor involved in any discussions
concerning, any transaction that would reasonably be expected to result in a Change of
Control (as defined in Section 6(d)).
(r) As of the date hereof, except as set forth in the Company’s SEC Documents filed
prior to the date hereof, neither the Company nor any of its material subsidiaries is a
party to or bound by any “material contract” (as such term is defined in Item 601(b)(10) of
Regulation S-K of the SEC).
(s) Section 2(s) of the Disclosure Schedule sets forth a true and complete list of (i)
all the Owned Intellectual Property, (ii) all Licensed Intellectual Property and (iii) all
Company IP Agreements. For purposes of this Agreement, (A) “Intellectual Property” means
patents, registered trademarks, registered copyrights and applications with respect to the
foregoing; (B) “Owned Intellectual Property” means Intellectual Property owned by the
Company or any of its subsidiaries; (C) “Licensed Intellectual Property” means Intellectual
Property licensed to the Company or any of its subsidiaries pursuant to the Company IP
Agreements; and (D) “Company IP Agreements” means (I) licenses of
Intellectual Property by the Company or any of its subsidiaries to any third party, (II)
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licenses of Intellectual Property by any third party to the Company or any of its
subsidiaries, (III) agreements between the Company or any of its subsidiaries and any third
party relating to the development or use of Intellectual Property, and (IV) consents,
settlements, decrees, orders, injunctions, judgments or rulings governing the use, validity
or enforceability of Owned Intellectual Property or Licensed Intellectual Property.
(t) The Company or one of its subsidiaries is the exclusive owner of the entire right,
title and interest in and to the Owned Intellectual Property, and has a valid license to use
the Licensed Intellectual Property licensed to it. The Company or one of its subsidiaries
is entitled to use all Owned Intellectual Property and Licensed Intellectual Property in the
continued operation of its business without limitation, subject only to the terms of the
Company IP Agreements. The Owned Intellectual Property and the Licensed Intellectual
Property have not been adjudged invalid or unenforceable in whole or in part, and, to the
Company’s knowledge, are valid and enforceable. Except as disclosed in the SEC Documents,
none of the Owned Intellectual Property has been or is now involved in any interference,
reissue, reexamination, opposition or cancellation proceeding. To the Company’s knowledge,
neither the Company nor any of its subsidiaries has taken any action or failed to take any
action that could reasonably be expected to result in the abandonment, cancellation,
forfeiture, relinquishment, invalidation or unenforceability of any of the Owned
Intellectual Property and to its knowledge all filing, examination, issuance, post
registration and maintenance fees, annuities and the like associated with or required with
respect to any of the Owned Intellectual Property have been timely paid. The Company and
its subsidiaries have taken reasonable steps to protect their respective rights in the Owned
Intellectual Property and maintain the confidentiality of all of their trade secrets. All
current or former employees, consultants and contractors who have participated in the
creation of any Intellectual Property that is used by the Company or any of its subsidiaries
have entered into proprietary information, confidentiality and assignment agreements
substantially in the form of the Company’s standard forms.
(u) To the Company’s knowledge, the conduct of the business of the Company and its
subsidiaries as currently conducted does not infringe or misappropriate any valid
Intellectual Property of any third party. No action alleging any of the foregoing is
pending, and no unresolved, written claim has been threatened or asserted against the
Company or any of its subsidiaries alleging any of the foregoing. To the Company’s
knowledge, no person is engaging in any activity that infringes the Owned Intellectual
Property.
(v) Neither the Company nor any subsidiary has granted an exclusive license or
sublicense with respect to any of its Owned Intellectual Property or Licensed Intellectual
Property to any third party. Except as disclosed in the SEC Documents, no dispute arising
under any Company IP Agreement is pending or, to the Company’s knowledge, threatened, in
each case that could reasonably be expected to result in an impairment of the Company’s
rights under or a termination of such Company IP Agreement.
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(w) Neither the Company nor any of its subsidiaries has received any warning letter
from the U.S. Food and Drug Administration (the “FDA”) (or similar Governmental
Authority in jurisdictions outside the United States) during the last three years. Without
limiting the foregoing, the Company and its subsidiaries are in compliance, in all respects,
with all current applicable statutes, rules, regulations, guidelines or orders administered
or issued by the FDA or comparable foreign Governmental Authority; the Company does not have
knowledge of any facts which furnish any reasonable basis for any Form FDA-483 observations
or regulatory or warning letters from the FDA, Section 305 notices, or other similar
communications from the FDA or comparable foreign entity. To the Company’s knowledge,
neither the Company nor any officer, employee or agent has made a statement, or failed to
make a statement that, at the time such disclosure was made, could reasonably be expected
to provide a basis for the FDA or comparable foreign Governmental Authority to invoke its
policy respecting Fraud, Untrue Statements of Material facts, Bribery, and Illegal
Gratuities, set forth in 56 Fed. Reg. 46191 (September 10, 1991).
(x) (i) Except as would not reasonably be expected to result in a Material Adverse
Effect, (A) each of the Company and its subsidiaries is and has been in compliance with all
applicable Environmental Laws; (B) none of the Company, any of its subsidiaries or any of
its or their executive officers has received during the past five years, nor, to the
Company’s knowledge, is there any basis for, any communication or complaint from a
Governmental Authority or other person alleging that the Company or any of its subsidiaries
has any liability under any Environmental Law or is not in compliance in any material
respect with any Environmental Law; (C) no Hazardous Substances are or have been present,
and there is and has been no Release or threatened Release of Hazardous Substances nor any
clean-up or corrective action of any kind relating thereto, on any properties (including any
buildings, structures, improvements, soils and surface, subsurface and ground waters
thereof) currently or formerly owned, leased or operated by or for the Company or any of its
subsidiaries or any predecessor company, at any location to which the Company or any of its
subsidiaries has sent any Hazardous Substances; and (D) neither the Company nor any of its
subsidiaries is actually, contingently, potentially or allegedly liable for any Release of,
threatened Release of or contamination by Hazardous Substances or otherwise under any
Environmental Law. There is no pending or, to the Company’s knowledge, threatened
investigation by any Governmental Authority, nor any pending or, to the Company’s knowledge,
threatened action with respect to the Company or any of its subsidiaries relating to
Hazardous Substances or otherwise under any Environmental Law. Each of the Company and its
subsidiaries holds all material Environmental Permits, and is and has been in compliance in
all material respects therewith. To the knowledge of the Company, the execution and
delivery of this Agreement nor the consummation of the transactions contemplated hereby will
(i) require any notice to or consent of any Governmental Authority or other person pursuant
to any applicable Environmental Law or Environmental Permit or (ii) subject any
Environmental Permit to suspension, cancellation, modification, revocation or nonrenewal.
The Company and its subsidiaries have provided to the Purchaser all “Phase I”, “Phase II” or
other environmental assessment reports in their possession or to which they have reasonable
access addressing locations ever owned, operated or leased by the Company or any of its
subsidiaries or at
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which the Company or any of its subsidiaries actually, potentially or allegedly may
have liability under any Environmental Law.
(ii) For purposes of this Agreement:
(A) “Environmental Laws” means: any Laws of any Governmental Authority
relating to (I) releases or threatened releases of Hazardous Substances or materials
containing Hazardous Substances; (II) the manufacture, handling, transport, use,
treatment, storage or disposal of Hazardous Substances or materials containing
Hazardous Substances; or (III) pollution or protection of the environment, worker
health and safety, exposure to Hazardous Substances or natural resources;
(B) “Environmental Permits” means all permits under any Environmental Law necessary
for the conduct of the business by the Company and its subsidiaries.
(C) “Hazardous Substances” means: (i) those substances defined in or
regulated under the Hazardous Materials Transportation Act, the Resource
Conservation and Recovery Act, the Comprehensive Environmental Response,
Compensation and Liability Act (“CERCLA”), the Clean Water Act, the Safe
Drinking Water Act, the Atomic Energy Act, the Federal Insecticide, Fungicide, and
Rodenticide Act and the Clean Air Act, and their state counterparts, as each may be
amended from time to time, and all regulations thereunder; (ii) petroleum and
petroleum products, including crude oil and any fractions thereof; (iii) natural
gas, synthetic gas, and any mixtures thereof; (iv) polychlorinated biphenyls,
asbestos and radon; (v) any other pollutant or contaminant; and (vi) any substance,
material or waste regulated by any Governmental Authority pursuant to any
Environmental Law; and
(D) “Release” has the meaning set forth in Section 101(22) of CERCLA.
3. Purchaser Representations and Warranties. The Purchaser hereby represents and warrants to
the Company the following:
(a) The Purchaser is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has full corporate power and authority
to conduct its business as presently conducted and as proposed to be conducted by it and to
enter into, deliver and perform its obligations set forth in the Transaction Documents and
to carry out the transactions contemplated hereby and thereby. The Purchaser has not been
organized, reorganized or recapitalized specifically for the purpose of investing in the
Company.
(b) The execution, delivery and performance of the Transaction Documents have been duly
authorized by all necessary corporate action by the Purchaser. Each Transaction Document
has been duly executed and delivered by the Purchaser and constitutes a valid and binding
obligation of the Purchaser enforceable against it in
accordance with its terms, subject to (i) the effect of any bankruptcy or similar laws
9
affecting creditors’ rights generally and (ii) general principles of equity, regardless of
whether a matter is considered in a proceeding in equity or at law. The execution of, and
consummation of the transactions contemplated by, the Transaction Documents and compliance
with its provisions by the Purchaser will not violate, conflict with or result in any breach
of any of the terms, conditions or provisions of, or constitute a default under, or require
a consent or waiver under, (i) its Articles of Incorporation or Bylaws (each as amended to
the date hereof), (ii) any material indenture, lease, agreement or other instrument to which
the Purchaser is a party or by which it or any of its material properties is bound, or (iii)
any decree, judgment, order, statute, rule or regulation applicable to the Purchaser, which
in the case of clause (ii) or (iii) would have a material adverse effect on the timely
consummation of the transactions contemplated hereby. No consent, approval, authorization
or order of, or filing, registration, qualification, license or permit of or with, (i) any
Governmental Authority or (ii) any other person is required for the execution, delivery and
performance by the Purchaser of this Agreement, except where the failure to obtain or make
any such consent, approval, authorization or order of, or filing, registration,
qualification, license or permit would not reasonably be expected to result in a material
adverse effect on the timely consummation of the transactions contemplated hereby.
(c) There is no proceeding pending against the Purchaser or any of its Affiliates or,
to the Purchaser’s knowledge, threatened that in any manner challenges or seeks, or
reasonably could be expected, to prevent, enjoin, alter or materially delay any of the
transactions contemplated by this Agreement.
(d) The Purchaser acknowledges that it has reviewed the SEC Documents and this
Agreement (the “Disclosure Materials”) and has been afforded (i) the opportunity to
ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the offering of the
Shares and the merits and risks of investing in the Shares; (ii) access to information about
the Company and its subsidiaries and their respective financial condition, results of
operations, business, properties, management and prospects sufficient to enable it to
evaluate its investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is
necessary to make an informed investment decision with respect to the investment. Neither
such inquiries nor any other investigation conducted by or on behalf of the Purchaser or its
representatives or counsel shall modify, amend or affect the Purchaser’s right to rely on
the truth, accuracy and completeness of the Disclosure Materials and the Company’s
representations and warranties contained herein. The Purchaser acknowledges and agrees that
the fact that the Company is seeking to effect the offer and sale of the Shares hereunder
may constitute material non-public information and disclosure of such information or use of
such information by the Purchaser or anyone receiving such information from the Purchaser in
connection with the purchase, sale or trade of the Company’s securities, or any hedging,
derivative or similar transactions or activities involving the Company’s securities, may be
a violation of securities laws.
(e) The Purchaser has not within the past ninety (90) days (i) engaged in any
short selling or short sales “against the box” in the Company’s securities, (ii) established
or increased any “put equivalent position” as defined in Rule 16(a)-1(h) under the
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Exchange Act with respect to the Company’s securities, or (iii) engaged in any purchase or
sale, or made any offer to purchase or offer to sell, derivative securities relating to the
Company’s securities, whether or not issued by the Company, such as exchange traded options
to purchase or sell the Company’s securities.
4. Investment Representations of the Purchaser. In connection with the purchase of the
Shares, the Purchaser hereby represents and warrants to the Company that the Purchaser is acquiring
the Shares solely for the purpose of investment (as defined in 16 CFR 801.1(i)(1)) and has no
present intention of participating in the formulation, determination or direction of the basic
business decisions of the Company.
5. Conditions to Closing.
(a) The obligation of each party to this Agreement to consummate the purchase and sale of
Shares at the Closing shall be subject to the satisfaction at or prior to the Closing of the
following conditions:
(i) No temporary restraining order, preliminary or permanent injunction or other order
issued by any Governmental Authority or other legal or regulatory restraint or prohibition
preventing the issuance and sale of the Shares shall be in effect. There shall be no
action, suit or other proceeding pending in or before any Governmental Authority or
arbitration tribunal against or involving either the Company or the Purchaser that in any
manner challenges or seeks to prevent, enjoin, alter or materially delay the consummation of
the transactions contemplated to occur at the Closing and the enforceability of the rights
and obligations as contemplated by the Transaction Documents, and neither the Company nor
the Purchaser (nor any of their respective Affiliates) shall have received notice of any
such threatened proceeding;
(ii) The issuance of the Shares shall be exempt from the notification requirements of
the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976;
(iii) Except for the Prospectus, all other notices, reports and other filings required
to be made prior to the Closing with, and all consents, registrations, approvals, permits
and authorizations required to be obtained prior to the Closing from, any Governmental
Authority for the issuance and sale of the Shares in accordance with the terms hereof shall
have been made or received and remain in effect as of the date of Closing; and
(iv) The Registration Statement pursuant to which the Shares will be issued to the
Purchaser shall be effective and not subject to a stop order.
(b) The obligation of the Company to consummate the purchase and sale of Shares at the Closing
shall be subject to the satisfaction at or prior to the Closing of the following conditions:
(i) The Purchaser shall have delivered a certificate of an executive officer of the
Purchaser confirming that the representations and warranties of the
11
Purchaser set forth in Sections 3 and 4 hereof are true and correct as of the date of
Closing;
(ii) The Purchaser shall have delivered the Purchase Amount to the Company by wire
transfer of immediately available U.S. federal funds; and
(iii) The Purchaser shall have executed and delivered the Alliance Agreement to the
Company.
(c) The obligation of the Purchaser to consummate the purchase and sale of Shares at the
Closing shall be subject to the satisfaction at or prior to the Closing of the following
conditions:
(i) The Shares shall have been accepted for and approved for inclusion and quotation on
NASDAQ;
(ii) The Company shall have delivered to the Purchaser a certificate of an executive
officer of the Company confirming that the representations and warranties of the Company set
forth in Section 2 hereof are true and correct as of the date of Closing;
(iii) The Company shall have delivered to the Purchaser a stock certificate
representing the Shares or in lieu thereof shall have caused a book entry evidencing the
Purchaser’s ownership of the Shares to be entered in the books and records of such
broker-dealer as shall have been identified by the Purchaser for such purpose; and
(iv) The Company shall have executed and delivered the Alliance Agreement to the
Purchaser.
6. Limitations on Transfer.
(a) During the period from the date hereof until the first (1st) anniversary of the date
hereof (the “Lock-Up Period”), the Purchaser agrees (on behalf of itself and its
Affiliates), with respect to the Shares and any Capital Stock issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued as) a dividend or
other distribution with respect to, or in exchange for or replacement of the Shares (collectively,
the “Restricted Shares”), not to Transfer any of such Restricted Shares.
“Transfer” means and includes any sale, assignment, encumbrance, hypothecation, pledge,
conveyance in trust, gift, transfer by bequest, devise or descent, or other transfer or disposition
of any kind, including but not limited to short sales or other hedging mechanisms, transfers to
receivers, levying creditors, trustees or receivers in bankruptcy proceedings or general assignees
for the benefit of creditors, whether voluntary or by operation of law, directly or indirectly.
(b) The provisions of Section 6(a) shall not apply to a Transfer by the Purchaser and any of
its Affiliates of Restricted Shares (each of the following, a “Permitted Transfer”):
(i) to any Affiliate of the Purchaser, provided such Affiliate agrees in writing to be
bound by the terms of this Agreement (and if, at any time after such
12
Transfer, such Affiliate is no longer an Affiliate of the Purchaser, to ensure that
such Shares are Transferred back to the Purchaser or one of its other Affiliates);
(ii) pursuant to a Third Party Tender Offer;
(iii) to the Company or, with the Company’s written consent, an agent acting on the
Company’s behalf;
(iv) pursuant to or following a Change of Control (as defined below); or
(v) if Xxxxx Xxxxx ceases to be the Company’s Chief Executive Officer and is not the
Chairman of the Company’s board of directors.
The term “Third Party Tender Offer” means a bona fide public offer subject to the
provisions of Regulation 14D or 14E under the Exchange Act, by a “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Exchange Act) (which is not made by and does not
include the Purchaser or any of its Affiliates or any group that includes as a member the Purchaser
or any of its Affiliates) to purchase or exchange for cash or other consideration more than 50% of
the outstanding securities of the Company.
(c) Following expiration of the Lock-Up Period, the Purchaser and its Affiliates may Transfer
all or any part of the Restricted Shares in any manner free from the restrictions set forth in this
Section 6.
(d) The restrictions on Transfer set forth in Section 6(a) shall terminate prior to the
expiration of the Lock-Up Period upon the earliest to occur of: (i) a Change of Control of the
Company or (ii) the liquidation or dissolution of the Company. The Company agrees to give prompt
written notice to the Purchaser of the occurrence of any event specified in clauses (i) or (ii).
As used herein, “Change of Control” shall mean the occurrence of any of the following
events:
(i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) other than the Purchaser or any of its Affiliates and excluding any group that
includes as a member the Purchaser or any of its Affiliates, is or becomes the “beneficial
owner” (as defined in Rule l3d-3 under the Exchange Act), directly or indirectly, of more
than 50% of the total voting power of the outstanding Capital Stock of the Company, but
excluding the shares held by the Company, any subsidiary of the Company or any employee
benefit plan of the Company or of any subsidiary of the Company, or any entity holding
Capital Stock for or pursuant to the terms of such plan;
(ii) the Company merges with or into, or consolidates with, or consummates any
reorganization or similar transaction with, another person (other than the Purchaser or any
of its Affiliates) and, immediately after giving effect to such transaction, less than 50%
of the total voting power of the outstanding Capital Stock of the surviving or resulting
person is “beneficially owned” (within the meaning of
13
Rule 13d-3 under the Exchange Act) in the aggregate by the stockholders of the Company
immediately prior to such transaction;
(iii) in one transaction or a series of related transactions with another person (other
than the Purchaser or any of its Affiliates), the Company, directly or indirectly (including
through one or more of its subsidiaries) sells, assigns, conveys, transfers, leases or
otherwise disposes of, all or substantially all of the assets or properties (including
Capital Stock of subsidiaries) of the Company, but excluding liens on such assets or
properties and sales, assignments, conveyances, transfers, leases or other dispositions of
assets or properties (including Capital Stock of subsidiaries) by the Company or any of its
subsidiaries to any direct or indirect wholly-owned subsidiary of the Company; or
(iv) individuals who as of the date hereof constituted the Board of Directors of the
Company (or any new directors whose election by such Board of Directors or whose nomination
for election by the stockholders of the Company was approved by a vote of a majority of the
directors then still in office) cease for any reason to constitute a majority of the Board
of Directors of the Company then in office.
(e) The Company shall not be required to (i) transfer on its books any Restricted Shares that
shall have been transferred in violation of any of the provisions set forth in this Agreement or
(ii) treat as owner of such Restricted Shares, or to accord the right to vote or to pay dividends
to, any transferee to whom such Restricted Shares shall have been so transferred.
7. Voting Agreement.
(a) Subject to Section 7(b), in the event that a Corporate Action is approved by the Company’s
Board of Directors or other governing body, the Purchaser hereby agrees to consent to and vote all
Capital Stock of the Company held by the Purchaser, and to cause all Capital Stock of the Company
held by any Affiliate of the Purchaser to be voted in favor of such Corporate Action. For the
avoidance of doubt, the covenants set forth in this Section 7(a) shall not be applicable to any
transferee (other than an Affiliate of the Purchaser) to whom the Purchaser or one of its
Affiliates transfers Restricted Shares pursuant to a Transfer permitted under Sections 6(b)(ii),
(iii) and (iv), pursuant to a sale of shares into an established trading market for such shares in
accordance with applicable securities laws, including sales made under Rule 144 under the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the
“Securities Act”), or pursuant to a private placement under the Securities Act provided
that securities transferred in each such private placement constitute less than three percent (3%)
of the outstanding Capital Stock of the Company; and provided that securities Transferred in each
such private placement are not, to the knowledge of the Purchaser after reasonable inquiry,
Transferred to the same “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Exchange Act). A “Corporate Action” shall mean any matter put to a vote of the
stockholders of the Company. “Capital Stock” means, with respect to any person, any and
all shares, interests, participation, rights or other equivalents in the equity interests (however
designated) in that person.
(b) The Purchaser’s obligations set forth in Section 7(a) shall:
14
(i) terminate (A) if the Company issues more than five percent (5%) of its then
outstanding capital stock (on a fully diluted basis) to another Corporate Partner (as
defined below) and such Corporate Partner does not enter into a voting agreement with terms
substantially similar to the covenants set forth in Section 7 of this Agreement, (B) if
such Corporate Partner does enter into such a voting agreement with the Company, if such
voting agreement is subsequently terminated or (C) upon a Change of Control of the Company;
(ii) be suspended (A) for any time during which a voting agreement described in Section
7(b)(i) with another Corporate Partner is suspended, (B) for any time in which the Purchaser
and its Affiliates in the aggregate hold less than three percent (3%) of the outstanding
Capital Stock of the Company or (C) to the extent (1) the Purchaser’s standstill obligations
set forth in Section 8(a) of this Agreement are, or were they still in effect, would be,
suspended and (2) the Purchaser and its Affiliates vote in favor of an acquisition of the
Company by the Purchaser.
(c) For purposes of this Agreement, “Corporate Partner” means any person or entity other than
the Purchaser or any of its Affiliates that after the Effective Date (i) acquires more than five
percent (5%) of the Company’s then outstanding Capital Stock and (ii) (A) enters into an agreement
with the Company or any of its subsidiaries providing it with negotiation or commercialization
rights with respect to any of the Company’s or any of its subsidiary’s products or (B) enters into
a research and development or clinical collaboration agreement or Intellectual Property license
agreement with the Company or any of its subsidiaries.
8. Standstill Agreement.
(a) From the date of this Agreement until the earlier of (1) the first (1st) anniversary of
the date hereof and (2) a Change of Control of the Company, subject to Section 8(c), the Purchaser
will not, and will cause all of its Affiliates not to:
(i) Purchase, offer to purchase, agree to acquire or otherwise acquire, directly or
indirectly, beneficial or record ownership of any shares of the Capital Stock of the Company
or any other securities convertible into or exercisable or exchangeable for any Capital
Stock of the Company (excluding shares and securities received by way of stock dividend,
stock reclassification or other distributions or offerings made available on a pro rata
basis to each of the Company’s stockholders) if, after giving effect to such purchase, offer
to purchase, agreement to acquire or other acquisition , the Purchaser, its Affiliates and
all groups of which the Purchaser or any of its Affiliates is a member would beneficially
own in the aggregate in excess of 20% of the Company’s outstanding Capital Stock;
(ii) make, or in any way participate in, directly or indirectly in concert with others
(including by or through any group of which the Purchaser or any of its Affiliates is a
member), any “solicitation” of “proxies” (as such terms are used in the rules of the SEC) to
vote securities of the Company or to provide or withhold consents with respect to securities
of the Company, or seek to advise or influence any person or entity with respect to the
voting of or the providing or withholding consent with respect to, any securities of the
Company;
15
(iii) either directly or indirectly in concert with others (including by or through any
group of which the Purchaser or any of its Affiliates is a member) make any offer with
respect to, or make or submit a proposal with respect to, or ask or request any other person
to make an offer or proposal with respect to any acquisition of a significant amount of
securities or assets of the Company or any of its Affiliates, including in connection with
any extraordinary transaction, such as a merger, reorganization, recapitalization, tender or
exchange offer or asset disposition involving the Company or any of its Affiliates that, if
consummated, such acquisition, transaction, merger, reorganization, recapitalization, tender
or exchange offer or asset disposition would constitute a Change of Control of the Company
(an “Extraordinary Transaction”);
(iv) form, join or in any way participate in a “group” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) in connection with any of the foregoing;
(v) either directly or indirectly in concert with others (including by or through any
group of which the Purchaser or any of its Affiliates is a member) seek representation on
the Company’s Board of Directors or any of its controlled Affiliates or otherwise act alone
or in concert with others (including by or through any group of which the Purchaser or any
of its Affiliates is a member) to seek to control or influence the management or Board of
Directors of the Company or any of its controlled Affiliates;
(vi) take any action that could reasonably be expected to require the Company to make a
public announcement regarding the possibility of any of the events described in clauses (i)
through (v) above;
(vii) either directly or indirectly in concert with others (including by or through any
group of which the Purchaser or any of its Affiliates is a member) request that the Company
terminate or waive compliance by the Purchaser or any of its Affiliates of its obligations
under this Section 8(a), or otherwise propose any amendment hereto that would have the
foregoing effect; or
(viii) either directly or indirectly in concert with others (including by or through
any group of which the Purchaser or any of its Affiliates is a member) publicly announce or
disclose any intention, plan or arrangement inconsistent with the foregoing.
(b) Notwithstanding the provisions of Section 8(a) nothing herein shall prohibit or restrict
the Purchaser or its Affiliates from making any disclosure pursuant to Sections 13(d)-(f) of the
Exchange Act which the Purchaser or such Affiliate reasonably believes, based on the advice of
independent legal counsel, is required in connection with any action taken by the Purchaser or such
Affiliate that is not inconsistent with this Agreement.
(c) If (i) the Company enters into a definitive agreement with respect to a transaction that,
if consummated, would result in a Change of Control of the Company, (ii) a Third Party Tender Offer
is announced, and following due consideration by the Board of Directors of the Company of such
offer, the Board of Directors of the Company does not publicly recommend against acceptance of such
offer, or (iii) the Company makes a public announcement that it has engaged an investment banker
for the purpose of seeking a Change of
16
Control transaction, that it is seeking a Change of Control transaction or that it is
exploring other similar strategic alternatives, then the restrictions set forth in Section 8(a)
shall be suspended from the first to occur of the foregoing until the applicable Suspension
Expiration Date (as defined below). Neither the Purchaser nor any of its Affiliates shall be
obligated by reason of this Section 8 to divest any Company securities acquired by it during such
suspension period.
(d) “Suspension Expiration Date” shall mean (i) for purposes of Section 8(c)(i), upon
termination of such definitive agreement, (ii) for purposes of Section 8(c)(ii), upon the earlier
of the Company’s Board of Directors rejecting such offer and the termination of such offer, or
(iii) for purposes of Section 8(c)(iii), upon the Company’s public announcement or delivery of
confidential notice to the Purchaser that the Company is no longer seeking a Change of Control
transaction or exploring such strategic alternatives.
(e) The Company agrees to give prompt written notice to the Purchaser of the occurrence of any
event specified in Section 8(c) above.
(f) For the avoidance of doubt, the covenants set forth in Section 8 shall not be applicable
to any person to whom the Restricted Shares have been Transferred (other than an Affiliate of the
Purchaser) pursuant to a Permitted Transfer or after the Lock-Up Period has expired.
9. Legends. The Purchaser understands and agrees that the certificates evidencing the
Restricted Shares shall bear the following legends:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
CONDITIONS OF A CERTAIN COMMON STOCK PURCHASE AGREEMENT DATED AS OF NOVEMBER
4, 2005 AMONG THE CORPORATION AND THE ORIGINAL HOLDER OF THESE SECURITIES,
INCLUDING THE VOTING PROVISIONS, LOCK-UP PROVISIONS AND STANDSTILL
PROVISIONS. IN ACCORDANCE WITH THE TERMS OF SUCH AGREEMENT, SUCH LOCK-UP
PROVISIONS AND STANDSTILL PROVISIONS SHALL EXPIRE NO LATER THAN NOVEMBER 4,
2006. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE
SECRETARY OF THE CORPORATION.
If such shares are not certificated, then a substantially similar notification shall be placed
in an appropriate fashion with the person charged with maintaining registration of the ownership of
such Restricted Shares so as to put on notice of the terms and conditions of this Agreement any
transferee of such Restricted Shares. Following the termination of the restrictions set forth in
this Agreement with respect to any of the Restricted Shares, upon the request of the Purchaser that
holds or held such shares, the Company shall issue to the Purchaser or such other person as
directed by the Purchaser a new certificate or certificates representing such Restricted Shares
that does not or do not contain the Legend.
17
10. Miscellaneous.
(a) Notices. All notices and other communications required or permitted under any of the
Transaction Documents shall be in writing and shall be (i) mailed by registered or certified mail,
postage prepaid, return receipt requested, (ii) sent by facsimile or telecopier, with written
receipt of confirmation or (iii) otherwise delivered by hand or by messenger or a nationally
recognized overnight courier, addressed or telecopied as follows:
If to the Company:
Introgen Therapeutics, Inc.
000 Xxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, XX 00000
Attention: Xxxxx X. Xxxxx, CEO
Telecopier: (000) 000-0000
email: x.xxxxx@xxxxxxxx.xxx
000 Xxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, XX 00000
Attention: Xxxxx X. Xxxxx, CEO
Telecopier: (000) 000-0000
email: x.xxxxx@xxxxxxxx.xxx
with copies to:
Xxxxxx Xxxxxxx Xxxxxxxx & Xxxxxx P.C.
000 Xxxx Xxxx Xxxx
Xxxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxx, Esq.
Telecopier: (000) 000-0000
email: xxxxxx@xxxx.xxx
000 Xxxx Xxxx Xxxx
Xxxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxx, Esq.
Telecopier: (000) 000-0000
email: xxxxxx@xxxx.xxx
Xxxxxx & Xxxxxx, L.L.P.
000 Xxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxxx
Telecopier: (000) 000-0000
Email: xxxxxxx@xxxxxx-xxxxxx.xxx
000 Xxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxxx
Telecopier: (000) 000-0000
Email: xxxxxxx@xxxxxx-xxxxxx.xxx
If to the Purchaser:
Colgate-Palmolive Company
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxx Xxxxxx, Esq.
Telecopier: (000) 000-0000
email:xxxx_xxxxxx@xxxxxx.xxx
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxx Xxxxxx, Esq.
Telecopier: (000) 000-0000
email:xxxx_xxxxxx@xxxxxx.xxx
18
with a copy to:
Xxxxxx, Xxxx & Xxxxxxxx LLP
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxx, Esq.
Telecopier: (000) 000-0000
email: xxxxx@xxxxxxxxxx.xxx
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxx, Esq.
Telecopier: (000) 000-0000
email: xxxxx@xxxxxxxxxx.xxx
If notice is provided by mail, notice shall be deemed to have been given five (5) business days
after proper deposit with the United States mail. If notice is provided by a nationally recognized
overnight courier, notice shall be deemed to have been given two (2) business days after deposit
with such courier. If notice is provided personally, such notice shall be deemed to have been
given immediately upon personal delivery thereof to the party at the address provided above. If
notice is provided by telecopier, notice shall be deemed to have been given upon confirmation by
the telecopier machine of the receipt of such notice at the telecopier number provided above. A
party hereto may change the addresses to which its notices are to be directed by written notice
complying with the terms of this Section 10(a).
(b) Governing Law. This Agreement and all disputes or controversies arising out of or
relating to this Agreement or the transactions contemplated hereby shall be governed by, and
construed in accordance with, the internal laws of the State of New York, without regard to the
laws of any other jurisdiction that might be applied because of the conflicts of laws principles of
the State of New York.
(c) Submission to Jurisdiction. Each of the parties irrevocably agrees that any legal action
or proceeding arising out of or relating to this Agreement or for recognition and enforcement of
any judgment in respect hereof brought by the other party or its successors or assigns may be
brought and determined in any Delaware Chancery Court or Superior Court or federal court sitting in
Delaware, and each of the parties hereby irrevocably submits to the exclusive jurisdiction of the
aforesaid courts for itself and with respect to its property, generally and unconditionally, with
regard to any action or proceeding arising out of or relating to this Agreement and the
transactions contemplated hereby (and agrees not to commence any action, suit or proceeding
relating thereto except in such courts). Each of the parties further agrees to accept service of
process in any manner permitted by such courts. Each of the parties hereby irrevocably and
unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or
otherwise, in any action or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby, (i) any claim that it is not personally subject to the
jurisdiction of the above-named courts for any reason other than the failure lawfully to serve
process, (ii) that it or its property is exempt or immune from jurisdiction of any such court or
from any legal process commenced in such courts (whether through service of notice, attachment
prior to judgment, attachment in aid of execution of such judgment, execution of judgment or
otherwise) and (iii) to the fullest extent permitted by law, that (A) the suit, action or
proceeding in any such court is brought in any inconvenient forum, (B) the venue of such suit,
action or proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be
enforced in or by such courts.
19
(d) WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY ARISING
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, (B) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
OF THIS WAIVER, (C) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH SUCH PARTY HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS
SECTION 10(d).
(e) Certain Definitions. For purposes of this Agreement, an “Affiliate” of a person
means (i) any other person or entity (each a “Controlling Person”) of which such person is a direct
or indirect subsidiary and (ii) all entities that are direct or indirect subsidiaries of such
person or such Controlling Person. For purposes of this Agreement, an entity will be deemed to be
a subsidiary of a Controlling Person if more than 50% of the capital stock or other equity
interests of such entity are “beneficially owned” (as such term is defined in Rule 13d-3 of the
Exchange Act) directly or indirectly by such Controlling Person or if such Controlling Person and
its other direct or indirect subsidiaries have the right to elect a majority of the members of the
board of directors or other governing body of such entity whether by ownership of voting
securities, by contract or otherwise.
(f) Further Actions. Subject to the terms and conditions contained in this Agreement, the
parties hereto agree to cooperate and take all such further actions and execute any additional
instruments as may reasonably be necessary to carry out, consummate and give effect to the
transactions contemplated by this Agreement.
(g) Fees and Expenses. Each party hereto shall bear its own out-of-pocket costs and expenses
incident to the preparation, negotiation and execution of this Agreement and the other Transaction
Documents.
(h) Finder’s Fees. The Company and the Purchaser each represent to the other that neither it
nor any of its Affiliates nor any of their respective officers, directors, employees or
representatives has incurred any liability to any third party for any finders’, brokers’,
investment banking or other similar fees, compensation or commissions in relation to the
transactions contemplated by this Agreement. Each of the Company and the Purchaser shall indemnify
and hold the other harmless from any liability for any such fees, compensation or commissions
(including the costs, expenses and legal fees of defending against such liability) for which the
Company or the Purchaser, or any of their respective Affiliates or any of their respective
officers, directors, employees or representatives, as the case may be, is responsible or which
arise by reason of their actions or alleged actions.
20
(i) Entire Agreement; Amendment. This Agreement and the other Transaction Documents
(including the Exhibits hereto) constitute the entire agreement between the parties with respect to
the subject matter hereof or thereof and supersede and merge all prior agreements or
understandings, whether written or oral. This Agreement may not be amended, modified or revoked,
in whole or in part, except by an agreement in writing signed by each of the parties hereto.
(j) Specific Performance. Each of the parties acknowledges and agrees that the other party
hereto would be damaged irreparably in the event any of the provisions of this Agreement are not
performed in accordance with their specific terms or otherwise are breached. Accordingly, each of
the parties hereto agrees that the other party hereto shall be entitled to an injunction to prevent
breaches of the provisions of this Agreement and to enforce specifically this Agreement and the
terms and provisions hereof in any court in accordance with Section 11(c) hereof, in addition to
any other remedy to which they may be entitled at law or in equity.
(k) Waivers. No waiver of any breach or default hereunder shall be considered valid unless in
writing, and no such waiver shall be deemed a waiver of any subsequent breach or default of the
same or similar nature.
(l) Parties In Interest. This Agreement shall be binding upon and inure solely to the benefit
of the parties hereto and their respective permitted successors and assigns, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other person or entity any
right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
(m) Counterparts. This Agreement may be executed by facsimile and in any number of
counterparts, each of which shall be deemed an original for all purposes, but all of which shall
constitute but one and the same instrument.
(n) Headings. The Section headings contained herein are for the purposes of convenience of
reference only and are not intended to define or limit the contents of said Sections.
(o) Publicity. The Company and the Purchaser shall attempt in good faith to consult with each
other before issuing, and provide each other the opportunity to review and comment upon, any press
release, filing with the SEC or other public statements with respect to the sale of the Shares and
the execution of this Agreement, including, in the event the Purchaser does not issue a release on
its own or jointly with the Company, with respect to pre-agreed questions and answers for potential
inquiries from third parties. Neither party shall issue any such press release or make any such
public statement prior to such good faith attempt to consult with the other party, except as may be
required by applicable law, by court process or by obligations pursuant to any listing agreement
with any securities exchange.
(p) Termination and Survival. The provisions of this Agreement shall survive the Closing and,
thereafter, this Agreement and all the provisions herein shall terminate and be of no further force
or effect at such time as none of the Purchaser or any of its Affiliates beneficially owns any of
the Shares. Notwithstanding the foregoing, the representations and
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warranties of the parties set forth in Sections 2, 3 and 4 of this Agreement shall survive
until the expiration of the applicable statute of limitations.
[Signature Page Follows]
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In Witness Whereof, the parties hereto have executed this Agreement as of the
day and year first above written.
INTROGEN THERAPEUTICS, INC. | ||||
By: | /s/ Xxxxx X. Xxxxxxxx, Xx. | |||
Name: | Xxxxx X. Xxxxxxxx, Xx. | |||
Title: | Chief Financial Officer | |||
COLGATE-PALMOLIVE COMPANY | ||||
By: | /s/ Xxxxxx X. Xxxxxx | |||
Name: Xxxxxx X. Xxxxxx | ||||
Title: Vice President Corporate Controller |