Document:

Exhibit 10.3

 

LOCK-UP AGREEMENT

 

 

Synta Pharmaceuticals Corp.

45 Hartwell Avenue

Lexington, MA 02421

 

Madrigal Pharmaceuticals, Inc.
 500 Office Center Drive, Suite 400

Fort Washington, PA 19034

 

Ladies and Gentlemen:

 

In connection with the proposed acquisition of Madrigal Pharmaceuticals, Inc. (the “Company”) by Synta Pharmaceuticals Corp. (“Synta”) whereby Saffron Merger Sub, Inc. (“Merger Sub”), a wholly-owned subsidiary of Synta, will merge with and into the Company (the “Merger”), and in consideration of Synta, Merger Sub and the Company entering into the Agreement and Plan of Merger and Reorganization dated on or about April [•], 2016 (the “Merger Agreement;” all capitalized terms used in this Lock-Up Agreement without definition herein shall have the meanings ascribed to them in the Merger Agreement), the receipt and sufficiency of such consideration being hereby acknowledged and accepted, and in order to induce Synta and the Company each to close the Merger, the undersigned (“Securityholder”), a holder of shares of Company Capital Stock and/or Convertible Debt (the “Company Securities”) who will receive shares of Saffron Common Stock in exchange for his, her or its shares of Company Securities hereby agrees with Synta and the Company as follows:

 

1.                                      During the Lock-Up Period (as defined below), Securityholder shall not, directly or indirectly, (a) sell, assign, transfer, tender, or otherwise dispose of (whether by actual disposition or effective economic disposition due to cash settlement or otherwise, including, without limitation, by the creation of any liens, claims, charges or other encumbrances or restrictions of any kind whatsoever (“Liens”) on) any (i) Company Securities and (ii) shares of Saffron Common Stock and any securities convertible into, exchangeable for or that represent the right to receive shares of Saffron Common Stock, in each case whether now owned or hereinafter acquired, owned directly by the Securityholder (including holding as a custodian) or with respect to which the Securityholder has beneficial ownership within the rules and regulations of the Securities and Exchange Commission (collectively, the “Locked-Up Securities”), (b) effect any short sale or enter into any contract, option, commitment or other arrangement or understanding with respect to the direct or indirect sale, transfer, assignment or other disposition of (including, without limitation, by the creation of any Liens or by establishing or increasing a put equivalent position or liquidating or decreasing a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the Securities and Exchange Commission promulgated thereunder with respect to, any Locked-Up Securities, or publicly announce an intention to effect any such transaction, during the Lock-Up Period) any Locked-Up Securities, or (c) take any action that would make any representation or warranty of Securityholder contained herein untrue or incorrect or have the effect of preventing or disabling Securityholder from performing Securityholder’s obligations under this Lock-Up Agreement.  Notwithstanding the foregoing, and provided that transfers described in (a) through (f) of this sentence are not required to be reported in any public report or filing with the Securities and Exchange Commission (other than (i) a filing at any time on a Form 5 or (ii) a filing after the expiration of the Lock-Up Period on a

 

 

Schedule 13D or Schedule 13G (or Schedule 13D/A or Schedule 13G/A), Securityholder may make (a) transfers as a bona fide gift or gifts (b) transfers by will or by operation of law or other transfers for estate-planning purposes, in which case this Lock-Up Agreement shall bind the transferee, (c) with respect to such Securityholder’s Company Options which expire on or prior to the Expiration Date, transfers, sale, or other disposition of Locked-Up Securities to the Company as payment for the (i) exercise price of such Securityholder’s Company Options and (ii) taxes applicable to the exercise of such Securityholder’s Company Options or (d) if Securityholder is a partnership or limited liability company, a transfer to one or more partners or members of Securityholder or to an affiliated corporation, trust or other business entity under common control with Securityholder, or if Securityholder is a trust, a transfer to a beneficiary, provided that in each such case the applicable transferee has signed a lock-up agreement in substantially the form hereof, (e) any transfer to another holder of the capital stock of the Company that has signed a lock-up agreement in substantially the form hereof relating to the transferred Shares and (f) transfers of shares acquired on the open market following the Closing Date.  In the event that any securities held by any other holder (the “Other Holder”) subject to a similar lock-up agreement in connection with the Merger are released from the restrictions of such lock-up agreement, the Locked-Up Securities held by the undersigned Securityholder shall likewise automatically be released from the restrictions contained herein in the same proportion as those securities released for the Other Holder.

 

2.                                      As used in this Lock-Up Agreement, the term “Lock-Up Period” shall mean from and after the date hereof until the earlier to occur of (a) 180 days after the Closing Date or (b) such date and time as the Merger Agreement shall be terminated pursuant to Section 9 thereof or otherwise.  Upon termination or expiration of this Lock-Up Agreement, no party shall have any further obligations or liabilities under this Lock-Up Agreement; provided, however, such termination or expiration shall not relieve any party from liability for any willful breach of this Lock-Up Agreement or acts of bad faith prior to termination hereof.

 

3.                                      Securityholder also agrees and consents to the entry of stop transfer instructions with Synta’s transfer agent and registrar against the transfer of Securityholders’ Locked-Up Securities, except in compliance with this Lock-Up Agreement.  In furtherance of the foregoing, Synta and its transfer agent are hereby authorized to decline to make any transfer of securities if such transfer would constitute a violation or breach of this Lock-Up Agreement.

 

4.                                      Securityholder understands that Synta, the Company and Merger Sub will proceed with the Merger in reliance on this Lock-Up Agreement.  Moreover, Securityholder understands and agrees that Synta, Merger Sub and the Company are relying upon the accuracy, completeness, and truth of Securityholder’s representations, warranties, agreements, and certifications contained in this Lock-Up Agreement.

 

[Remainder of Page has Intentionally Been Left Blank; Signature Page Follows]

 

2

 

Date:                 , 2016

 

	
 
    	
Very   truly yours,
    

 

If an individual, please sign here:

 

	
 
    	
Signature:
    	
 
    
	
 
    	
Print   Name:
    	
 
    

 

If a corporation, a limited partnership or other legal entity, please sign here:

 

	
 
    	
Legal   Name:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

[Signature Page to Lock-Up Agreement]

 

 

Date:                 , 2016

 

	
 
    	
SYNTA   PHARMACEUTICALS CORP.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
MADRIGAL   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Lock-Up Agreement]Exhibit 10.1

 

ALL   COMMUNICATIONS SHOULD INCLUDE THE CONTRACT NUMBER SHOWN IN BLOCK 5 BELOW OF 3   I PAGE the following materials as a result of the above numbered Invitation   to Bid. PRICE Typed name & Signature) (Previous edition to be used until   exhausted) DAMS FORM 1427, AUG 98 IEF) IMPORTANT NOTICE PAGE 2 NOTICE OF   AWARD, STATEMENT, AND RELEASE DOCUMENT 1. 2. FROM:(Name and address of Sales   Office DLA Disposition Services 74 North Washington Avenue Battle Creek, MI   49037-3092 3. DATE OF AWARD 04/08/2016 4. INVITATION NO. 16-6049 (TERM) 5.   CONTRACT NO. 16-6049-0001 6. TO: (Name and address of Purchaser) Liquidity   Services, Inc. 1920 L Street NW, 6th Floor Washington, DC 20036 7. BIDDER NO.   8050000994 8.(PAID STAMP) (For Release of Property Only) This is to inform   you that your firm has been awarded a contract of sale for I9. PROPERTY MUST   BE REMOVED BY (Final date of removal) 10. CHDD> 00 '   """DOW' OAO 'ITEMS ITEM NO. a DESCRIPTION b OTY c UNIT d UNIT PRICE   e TOTAL f QUANTITY RELEASED Q See attachment to Notice of Award (page 3)   $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $ 0.00 111D<O OAC< An   agent of the purchaser obtaining release of the material must present   purchaser authorization. 1?. · n• · · '"m Payment of amount due the U.S.   Government must be made prior to removal of any material. Refer to the IFB   for all methods of acceptable payment. A. I HAVE RECEIVED THE ABOVE LISTED   MATERIALS IN THE QUANTITY INDICATED AND HAVE ACCEPTED SAME IN COMPLIANCE WITH   THE TERMS OF ABOVE NUMBERED CONTRACT. TYPED OR PRINTED NAME AND SIGNATURE OF   PURCHASER OR AUTHORIZED AGENT A. TOTAL CONTRACT PRICE $ $ $ $ $ $ $ B. LESS   DEPOSIT c. BALANCE DUE B. RELEASED BY (Signature) D. REFUND DUE c. DATE ID.   VOUCHER NO. E. STORAGE CHARGES 13. SALES CONTRACTING OFFICER (   LeZc--,.--=--F. PAYMENT RECEIVE[) G. REFUND MADE 

    

 

DRMS FORM 1427,   AUG 98 IEFI Page 2 of 2 DISPOSAL NOTIFICATION TO ALL PURCHASERS AND   SUB-PURCHASERS The use, disposition, export and reexport of this property is   subject to all applicable U.S laws and regulations, including the Arms Export   Control Act (22 CFR 2751 et seq.), the Export Administration Act of 1979 (560   U.S.C. App. 2401 et seq.); International Traffic in Arms Regulations (22 CFR 120   et seq.); Export Administration Regulations (15 CFR 730 et seq.); Foreign   Assets Control Regulations (31 CFR 500 et seq.); and the Espionage Act (37   U.S.C. 791 et seq.) which among other things, prohibits: a. The making of   false statements and concealment of any material information regarding the   use or disposition, export or reexport of the property, and b. Any use or   disposition, export or reexport of the property which is not authorized in   accordance with the provisions of this agreement. Before any export or   reexport of this property is attempted, contact the Office of Defense Trade   Controls, Department of State and the Bureau of Export Administration,   Department of Commerce for export licensing REMARKS PART 2 - TIPS FOR   PURCHASERS You have been awarded the items listed on the reverse side of this   document. In order to minimize confusion or any chance of you having to pay   storage charges or your contract being terminated for failure to pay for and   remove property, you should do the following: 1. If there is an amount due   indicated in Block 12 C, you should remit this immediately to the sales   office indicated in Block 2. NO PROPERTY CAN BE REMOVED UNTIL PAID FOR.   Unless otherwise indicated in the IFB, MAKE CHECKS PAYABLE TO: U.S. TREASURY.   Receipts are not furnished. 2. (Read Block 9). This is your final free   removal date. If you do not remove the property by this date you will be   placed in Default and storage charges will be assessed. 3. Make arrangement   for pickup of property and send release authorizations to both the· carrier   and the disposal officer where the material is located. THE GOVERNMENT WILL   NOT ACT AS LIAISON IN ANY FASHION BETWEEN PURCHASER AND CARRIER. If desired,   a list of carriers serving the area is available from the Sales Office indicated   on the reverse side. 4. Furnish your agent or carrier complete info needed to   remove the property. THE GOVERNMENT WILL ONLY MAKE INITIAL PLACEMENT WHERE IT   IS PROVIDED THE GOVERNMENT LOADS. PLACING, HANDLING, PACKING, BRACING,   BLOCKING ETC., ARE YOUR RESPONSIBILITY. 5. If the IFB provided that purchaser   loads, then you must make all arrangements for loading including any   equipment you may require to accomplish such loading. IN THESE INSTANCES, THE   GOVERNMENT WILL PROVIDE NO ASSISTANCE. 6. Follow up with your carrier or   agent frequently, especially if you are in default. Extensions or   reinstatements of your contract cannot be made because of your agent or   carrier's failure to do something. 7. Upon receipt of property, inspect it   immediately for misdescription. Misdescription claims filed after 30 days   from date of removal will be denied as untimely filed. 8. If you have any   questions regarding this award, contact the Sales Contracting Officer at   once. 

    

 

CONTRACT NUMBER   16-6049-0001 Page 3 of3 1t?p:{ 1 I{ Attachment to NOTICE OF AWARD, STATEMENT,   AND RELEASE DOCUMENT Description of the property is as identified in   Invitation For Bid 16-6049. Performance period for this contract is   thirty-six (36) month period from the date of the initial material referral   to Purchaser. The Goverrnnent may exercise two one-year options to extend the   performance period for up to an additional Twenty Four (24) months. Bid   percentages are as follows: Up-Front Property Payment: Back-End Property   Payment: $1,000.00 each month of the performance period 64.50% of gross   revenue Bid Deposit Paid to the Goverrnnent (March 2, 2016): Payment Deposit   (due within ten (10) calendar days of award): $ 100,000.00 $ 100,000.00   Financial Guarantee Bond (due within thirty (30) calendar days of award):   $3,000,000.00 // rt:.:'(}ffo-------------------------------NOTHING   FOLLOWS---------------------------------------------fb('J,

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