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Exhibit 10.1  

 
 

COMMON STOCK PURCHASE AGREEMENT    
    

        This Common Stock Purchase Agreement (this "Agreement") is made and effective as of March 25, 2004 by and
among NAPRO BIOTHERAPEUTICS, INC., a Delaware corporation (the "Company"), and the Purchasers identified in the signature pages attached hereto
(each a "Purchaser", and collectively, the "Purchasers"). 

        WHEREAS,
subject to the terms and conditions set forth in this Agreement, the Company desires to sell to each Purchaser and each Purchaser desires to purchase from the Company certain
shares of the Company's common stock, $0.0075 par value per share (the "Common Stock"), as more fully set forth in this Agreement. 

        NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement and for other good and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Company and each Purchaser agree as follows: 

        1.    Closing.    

        (a)   The
closing of the sale of the securities contemplated hereby (the "Closing") shall take place at the offices of
Proskauer Rose LLP, 1585 Broadway, New York, New York 10036, on March 26, 2004 or on such other date or at such other location as the parties shall otherwise agree. The date of the Closing is
hereinafter referred to as the "Closing Date." At the Closing: (x) the Company shall issue and deliver to each Purchaser (i) a stock
certificate, registered in the name of each Purchaser and free of all restrictive legends, representing the number of shares of Common Stock (the shares of Common Stock issued and sold to such
Purchaser hereunder are collectively, the "Shares") equal to the quotient obtained by dividing (a) the purchase price set forth below such
Purchaser's signature to this Agreement by (b) $2.60, or, if such Purchaser provides the necessary account information to the Company, the
Company shall issue and deliver such Shares in a balance account with The Depository Trust Company through its Deposit Withdrawal Agent Commission System, (ii) a prospectus supplement with
respect to the Registration Statement (as defined in Section 2(g)) reflecting the sale of the Shares (the "Supplement"),
(iii) confirmation of the filing of the Supplement, and (iv) the legal opinion of the Company's outside counsel in the form of  Exhibit A; and (y) each Purchaser shall deliver to the
Company the purchase price set forth below such Purchaser's signature to this
Agreement, in immediately available funds by wire transfer to an account designated in writing by the Company for such purpose. 

        (b)   For
the purposes of this Agreement, the following definitions shall apply: 

        "Business Day" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or
required by law to remain closed. 

        "Common Stock Equivalents" means, collectively, Common Stock, Options and Convertible Securities. 

        "Convertible Securities" means any stock or securities (other than Options) convertible into or exercisable or exchangeable for Common
Stock. 

        "Options" means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities. 

        "Person" means any court or other federal, state, local or other governmental authority or other individual or corporation, partnership,
trust, incorporated or unincorporated association, joint venture, 

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limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

        (c)   The
obligation of each Purchaser to purchase and acquire the Shares under this Agreement is subject to the fulfillment (or waiver by such Purchaser) of each of the
following conditions: 

          (i)  The
Company shall have filed the Supplement with the Securities and Exchange Commission (the "Commission"). 

         (ii)  The
Registration Statement (as defined in Section 2(g) below) shall be effective on the Closing Date as to all Shares, not subject to any threatened or actual
stop order and will not on the Closing Date contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein
not misleading. 

        (iii)  The
Company shall have provided a certificate from a duly authorized officer certifying on behalf of the Company that each of the conditions set forth in this
Section 1(c) shall have been satisfied. 

        2.    Representations and Warranties of the Company.    The Company
hereby makes the following representations and warranties to each of the Purchasers: 

        (a)    Subsidiaries.    The Company does not directly or indirectly control or own any
interest in any other corporation, partnership, joint venture or other business association or entity required to be listed in Schedule 21.1 to the Company's Annual Report on
Form 10-K (a "Subsidiary"), other than those listed in such Schedule. The Company owns, directly or indirectly, all of the capital
stock of each such Subsidiary free and clear of any lien, charge, claim, security interest, encumbrance or right of first refusal (collectively,
"Liens"), and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights. 

        (b)    Organization and Qualification.    Each of the Company and the Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its
respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to do business and is in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, could not, individually or in the aggregate, (i) adversely affect the legality, validity or enforceability of this Agreement,
(ii) have or result in a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or
(iii) materially adversely impair the Company's ability to perform fully on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a
"Material Adverse Effect"). 

        (c)    Authorization; Enforcement.    The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by the
Company and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary action on the part of the Company and no further consent or action is required
by the Company (except as set forth in this 

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Agreement),
its Board of Directors or its stockholders. This Agreement has been (or upon delivery will be) duly executed by the Company and, when delivered in accordance with the terms hereof, will
constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms. 

        (d)    No Conflicts.    The execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Company's or any Subsidiary's
certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining the Required Approvals (as defined below), conflict with, or
constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company
or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including, assuming the accuracy of the Purchaser's
representations and warranties contained in this Agreement, federal and state securities laws and regulations) and the rules and regulations of any self-regulatory organization to which
the Company or its securities are subject, or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as
could not, individually or in the aggregate, have or result in a Material Adverse Effect. 

        (e)    Filings, Consents and Approvals.    Neither the Company nor any Subsidiary is required
to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of this Agreement, other than (i) the filing of the Supplement and a current report on
Form 8-K in connection with this Agreement, (ii) applicable Blue Sky filings, and (iii) in all other cases where the failure to obtain such consent, waiver,
authorization or order, or to give such notice or make such filing or registration could not have or result in, individually or in the aggregate, a Material Adverse Effect (collectively, the
"Required Approvals"). 

        (f)    Issuance of the Shares.    The Shares are duly authorized and, when issued and paid for
in accordance with the terms hereof, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens, encumbrances and rights of first refusal. The Company has reserved a
sufficient number of duly
authorized shares of Common Stock to issue all of the Shares. At the Closing, the Shares shall have been listed for trading on the Nasdaq SmallCap Market (the "Trading
Market"). 

        (g)    Registration Statement.    The Company's Registration Statement on
Form S-3 (No. 333-112774) (the "Registration Statement") was declared effective by the Commission on
August 28, 2003. The Registration Statement is effective on the date hereof and the Company has not received notice that the Commission has issued or intends to issue a stop order with respect
to the Registration Statement or that the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has
threatened in writing to do so. The Registration Statement (including the information or documents incorporated by reference therein), as of the time it was declared effective, and any amendments or
supplements thereto, each as of the time of filing, did not contain any untrue statement of material fact or omit to state any material fact required to be 

3

 

stated
therein or necessary to make the statements therein not misleading. The issuance of the Shares to the Purchasers is registered by the Registration Statement. 

        (h)    Listing and Maintenance Requirements.    Except as specified in the SEC Reports, the
Company has not, in the two years preceding the date hereof, received notice from the Trading Market to the effect that the Company is not in compliance with the listing or maintenance requirements
thereof. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with the listing and maintenance requirements for continued trading of
the Common Stock on the Trading Market. 

        (i)    Certain Fees.    The Purchasers shall have no obligation with respect to any fees
incurred by the Company or any other Person (other than a Purchaser, to the extent that such Purchaser has agreed in writing to pay such fees) or with respect to any claims made by or on behalf of
other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement. The Company shall indemnify and hold harmless each
Purchaser, its respective employees, officers, directors, agents, and partners, and its affiliates, from and against all claims, losses, damages, costs (including the reasonable costs of preparation
and reasonable attorney's fees) and expenses suffered in respect of any such claimed or existing fees incurred by the Company or any other Person (other than a Purchaser or anyone acting on behalf of
a Purchaser), as such fees and expenses are incurred. 

        (j)    Disclosure.    The Company confirms that neither it nor any other Person acting on its
behalf has provided any Purchaser or its respective agents or counsel with any information that constitutes or might constitute material, nonpublic information. The Company understands and confirms
that each Purchaser will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Purchasers regarding the Company, its business and
the transactions contemplated hereby, including the Schedules to this Agreement, the Registration Statement and the Supplement, furnished by or on behalf of the Company do not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. No
event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions,
which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the
Company's reports filed under the Securities Exchange Act of 1934, as amended (the "Exchange Act") are being incorporated into an effective registration
statement filed by the Company under the Securities Act of 1933, as amended (the "Securities Act")). The Company acknowledges and agrees that no
Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3. 

        (k)    No Violation.    The issuance and sale of the Shares hereunder does not conflict with
or violate any rules or regulations of the Trading Market. 

        (l)    SEC Reports; Financial Statements.    The Company has filed all reports required to be
filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law
to file such material) (the foregoing materials being collectively referred to herein as the "SEC Reports" and, together with this Agreement and the
Schedules to this Agreement, the "Disclosure Materials") on a timely basis or has received a valid extension of such time of filing and has filed any
such SEC Reports prior to the expiration of any such extension. As of 

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their
respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects
with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in
accordance with generally accepted accounting principles applied on a consistent basis during the periods involved ("GAAP"), except as may be otherwise
specified in such financial statements or the notes thereto, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates
thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. All
material agreements to which the Company or any Subsidiary is a party or to which the property or assets of the Company or any Subsidiary are subject are included as part of or specifically identified
in the SEC Reports. 

        (m)    Capitalization.    The number of shares and type of all authorized, issued and
outstanding capital stock, options and other securities of the Company (whether or not presently convertible or exchangeable for shares of capital stock of the Company) as of March 1, 2004 is
set forth in the SEC Reports. All outstanding shares of capital stock are duly authorized, validly issued, fully paid and nonassessable and
have been issued in compliance with all applicable securities laws. Except as disclosed in the SEC Reports, as of March 1, 2004 there were no outstanding options, warrants, script rights to
subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for
or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common
Stock, or securities or rights convertible or exchangeable into shares of Common Stock. Except as disclosed in the SEC Reports, there are no anti-dilution or price adjustment provisions
contained in any security issued by the Company (or in any agreement providing rights to security holders) and the issue and sale of the Shares will not obligate the Company to issue shares of Common
Stock or other securities to any Person and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. To the
knowledge of the Company, except as specifically disclosed in filings with the SEC, no Person or group of related Persons beneficially owns (as determined pursuant to Rule 13d-3
under the Exchange Act), or has the right to acquire, by agreement with or by obligation binding upon the Company, beneficial ownership of in excess of 5% of the outstanding Common Stock. 

        (n)    Material Changes.    Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had or that could result in a Material Adverse
Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or required to be disclosed in filings made with the
Commission, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or
other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has 

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not
issued any equity securities to any officer, director or affiliate, except pursuant to existing Company equity incentive plans. 

        (o)    Compliance.    Neither the Company nor any Subsidiary (i) is in default under or
in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company
or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a
party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental
body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to
taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not, individually or in the aggregate, have
or result in a Material Adverse Effect. 

        (p)    Internal Accounting Controls.    The Company and the Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability,
(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 the existing
assets at reasonable intervals and appropriate action is taken with respect to any differences. 

        (q)    Acknowledgment Regarding Purchasers' Purchase of Shares.    The Company acknowledges
and agrees that each Purchaser is acting solely in the capacity of an arm's length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges
that each Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any advice
given by such Purchaser or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental to such Purchaser's purchase
of the Shares. The Company further represents to each Purchaser that the Company's decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its
representatives. 

        3.    Representations and Warranties of the Purchasers.    Each
Purchaser hereby represents, warrants and covenants to the Company, severally as to itself only, that (i) such Purchaser is an entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation, (ii) such Purchaser has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated
hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, (iii) upon the execution and delivery of this Agreement and assuming the valid
execution hereof by the Company, this Agreement shall constitute the valid and binding obligation of such Purchaser enforceable in accordance with its terms, (iv) such Purchaser is a resident
of the jurisdiction set forth on its signature page, (v) and such Purchaser has not entered into any contract to resell the Shares. 

        The
Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in this Section 3. 

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        4.    Other Agreements of the Parties.    

        4.1    Subsequent Placements.    

        (a)   From
the date hereof through the 30th calendar day following the Closing Date (including such date) (the "Blockout
Period"), the Company will not, directly or indirectly, offer, sell, grant any option to purchase, or otherwise dispose of (or announce any offer, sale, grant or any option to
purchase or other disposition of) any of its or the Subsidiaries' equity or equity equivalent securities, including without limitation any debt, preferred stock or other instrument or security that
is, at any time during its life and under any circumstances, convertible into or exchangeable or exercisable for Common Stock or Common Stock Equivalents (any such offer, sale, grant, disposition or
announcement being referred to as a "Subsequent Placement"). 

        (b)   From
the end of the Blockout Period through the one-year anniversary of the Closing Date, the Company will not, directly or indirectly, effect any Subsequent
Placement unless the Company shall have first complied with this Section 4.1(b). 

          (i)  The
Company shall deliver to each Purchaser a written notice (the "Offer") of any proposed or intended issuance or sale
or exchange of the securities being offered (the "Offered Securities") in a Subsequent Placement, which Offer shall (w) identify and describe the
Offered Securities, (x) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or
exchanged, (y) identify the persons or entities to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (z) offer to issue and sell to or exchange
with each Purchaser (A) such Purchaser's pro rata share of the Offered Securities (or, if the Offer was required to be delivered after the 90th day following the Closing Date,
such Purchaser's pro rata share of 35% of the Offered Securities), based on such Purchaser's pro rata portion of the aggregate purchase price paid by the Purchasers for all of the Shares purchased
hereunder (the "Basic Amount"), and (B) with respect to each Purchaser that elects to purchase its Basic Amount, any additional portion of the
Offered Securities attributable to the Basic Amounts of other Purchasers as such Purchaser shall indicate it will purchase or acquire should the other Purchasers subscribe for less than their Basic
Amounts (the "Undersubscription Amount"). 

         (ii)  To
accept an Offer, in whole or in part, a Purchaser must deliver a written notice to the Company prior to the end of the five (5) Trading Day period of the
Offer, setting forth the portion of the Purchaser's Basic Amount that such Purchaser elects to purchase and, if such Purchaser shall elect to purchase all of its Basic Amount, the Undersubscription
Amount, if any, that such Purchaser elects to purchase (in either case, the "Notice of Acceptance"). If the Basic Amounts subscribed for by all
Purchasers are less than the total of all of the Basic Amounts, then each Purchaser who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition
to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, that if the Undersubscription Amounts
subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the "Available Undersubscription
Amount"), each Purchaser who has subscribed for any Undersubscription Amount shall be entitled to purchase on that portion of the Available Undersubscription Amount as the
Basic Amount of such Purchaser bears to the total Basic Amounts of all Purchasers that have subscribed for 

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Undersubscription
Amounts, subject to rounding by the Board of Directors to the extent its deems reasonably necessary. 

        (iii)  The
Company shall have five (5) Trading Days from the expiration of the period set forth in Section 4.1(b)(ii) above to issue, sell or exchange
all of such Offered Securities to the proposed purchasers and the Purchasers that have delivered a Notice of Acceptance on the terms set forth in the Offer. 

        (iv)  Upon
the closing of the issuance, sale or exchange of the Offered Securities, the Purchasers shall acquire from the Company, and the Company shall issue to the
Purchasers, the number or amount of Offered Securities specified in the Notices of Acceptance, upon the terms and conditions specified in the Offer. The purchase by the Purchasers of any Offered
Securities is subject in all cases to the preparation, execution and delivery by the Company and the Purchasers of a purchase agreement relating to such Offered Securities reasonably satisfactory in
form and substance to the Purchasers, the Company and their respective counsel. 

         (v)  Any
Offered Securities not acquired by the Purchasers or other persons in accordance with Section 4.1(b)(iii) above may not be issued, sold or exchanged
until they are again offered to the Purchasers under the procedures specified in this Agreement. 

        (c)   The
restrictions contained in paragraphs (a) and (b) of this Section shall not apply to (i) the granting of options, Common Stock and other awards
to employees, consultants, service providers, officers and directors of the Company pursuant to any equity incentive plan duly adopted by the Company or to the issuance of Common Stock upon exercise
of such options, (ii) bona fide acquisitions of other entities or their assets, the primary purpose of which is not raising capital, (iii) the exercise, conversion or exchange of any
derivative securities outstanding prior to the date of this Agreement, (iv) issuance of securities in connection with a stock split or dividend, (v) the issuance of securities to a
strategic partner as part of a licensing transaction, or (vi) the issuance of securities to TL Ventures Funds in connection
with the settlement of legal proceedings, or in connection with the retirement or redemption of any debt instrument currently outstanding and held by TL Ventures Funds. As used herein "TL Ventures
Funds" shall include any affiliate of TL Ventures Funds and any successor to or assignee of TL Ventures Funds' interest in such litigation or debt instrument. 

        4.2    Disclosure of Material Non-Public Information.    The Company shall not and shall cause each of its
Affiliates (as defined in Rule 405 under the Securities Act) and other Persons acting on behalf of the Company not to divulge to any Purchaser any information that it believes to be material
non-public information unless such Purchaser has agreed in writing to receive such information prior to such divulgence. 

        4.3    Reservation and Listing of Shares.    The Company shall take such steps as may be required to cause and
maintain the listing of the Shares on the Trading Market and such other exchange, market or quotation facility on which the Common Stock is traded. 

        4.4    Indemnification    

        (a)   The
Company will indemnify and hold harmless each Purchaser and any of its affiliates or any officer, director, partner, controlling person, employee or agent of such
Purchaser or any of its affiliates (a "Related Person") for its reasonable legal and other expenses (including the costs of any investigation,
preparation and travel) and for any Losses incurred in connection with any action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such
as a 

8

 

disposition),
whether commenced or threatened (each, a "Proceeding"), insofar as such Losses arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the Registration Statement or the Supplement, or any amendment or supplement thereto, and all other documents filed as a part thereof, as
amended at the time of effectiveness of the Registration Statement, including any information deemed to be a part thereof as of the time of effectiveness pursuant to paragraph (b) of
Rule 430A, or pursuant to Rule 434, under the Securities Act, or arise out of or are based upon the omission or alleged omission to state in any of them a material fact required to be
stated therein or necessary to make the statements in any of them, in light of the circumstances under which they were made, not misleading, as such expenses or Losses are incurred. In addition, the
Company shall indemnify and hold harmless each Purchaser and Related Person from and against any and all Losses, as incurred, arising out of or relating to any breach by the Company of any of the
representations, warranties or covenants made by the Company in this Agreement, or any allegation by a third party that, if true, would constitute such a breach. The conduct of any Proceeding for
which indemnification is available under this paragraph shall be governed by Section 4.4(b). The indemnification obligations of the Company under this paragraph shall be in addition to any
liability that the Company may otherwise have and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of each Purchaser and any such Related
Persons. The Company also agrees that no Purchaser or Related Person shall have any liability to the Company or any Person asserting claims on behalf of or in right of the Company in connection with
or as a result of the transactions contemplated by this Agreement, except to the extent that any losses, claims, damages, liabilities or expenses incurred by the Company result from the gross
negligence, willful misconduct, or breach of a representation made in Section 3, by or of such Purchaser or Related Person in connection with such transactions. If the Company breaches its
obligations under this Agreement, then, in addition to any other liabilities the Company may have under this Agreement or applicable law, the Company shall pay or reimburse each Purchaser on demand
for all reasonable costs of collection and enforcement (including reasonable attorneys fees and expenses). Without limiting the generality of the foregoing, the Company specifically agrees to
reimburse each Purchaser on demand for all costs of enforcing the indemnification obligations in this paragraph. For the purposes of this Section 4.4,
"Losses" shall mean any and all losses, claims, damages, liabilities, settlement costs and expenses, including without limitation costs of preparation
of legal action and reasonable attorneys' fees. 

        (b)    Conduct of Indemnification Proceedings.    If any Proceeding shall be brought or asserted against any Person
entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the
"Indemnifying Party") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel
reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of
competent
jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party. 

9

  

        An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be
at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (ii) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, the Indemnifying Party shall only be responsible for the reasonable fees and
expenses for one counsel to represent all of the Indemnified Parties). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which
any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 

        All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Business Days of written notice thereof to the Indemnifying Party (regardless of whether it
is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all
such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder). 

        5.    Miscellaneous    

        (a)    Fees and Expenses.    At the Closing, the Company shall pay to Mainfield Enterprises, Inc. an aggregate
of $10,000 for its legal fees and expenses incurred in connection with its due diligence and the preparation and negotiation of this Agreement. In lieu of the foregoing payment, Mainfield
Enterprises, Inc. may retain such amount from the purchase price set forth below its signature to this Agreement at the Closing or require the Company to pay such amount directly to Proskauer
Rose LLP. Except as expressly set forth in this Agreement to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other
taxes and duties levied in connection with the sale and issuance of the Shares. 

        (b)    Publicity.    Neither the Company nor any Purchaser shall issue any press release or make any other public
announcement relating to this Agreement unless (i) the content thereof is mutually agreed to by the Company and the Purchasers, or (ii) such party is advised by its counsel that such
press release or public announcement is required by law or, in the case of the Company, the rules of the Nasdaq SmallCap Market; except that no press release issued to disclose the issuance and sale
of the Shares to the Purchasers will refer to any Purchaser by name without the consent of such Purchaser. The Company shall (i) on or before 9:15 a.m. (New York time) on
March 26, 2004, issue a press release mutually agreed to by the Company and the Purchasers, disclosing the transactions contemplated hereby, (ii) on the Closing Date, the Company shall
file a Current Report on Form 8-K with the Commission describing the 

10

 

terms
of the transactions contemplated by this Agreement in the form required by the Exchange Act, and (iii) make such other filings and notices in the manner and time required by the
Commission. Each press release disseminated during the three months preceding the date of this Agreement did not at the time of release contain any untrue statement of a material fact. 

        (c)    Entire Agreement; Amendments.    This Agreement contains the entire understanding of the parties with respect
to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into this Agreement
and its exhibits and schedules. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and Purchasers. The waiver by either party hereto of any
right hereunder or the failure to perform or of a breach by the other party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by said other party whether of a
similar nature or otherwise. 

        (d)    Notices.    Any and all notices or other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section prior to 6:30 p.m. (New York City time) on a Business Day, (ii) the Business Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in this Agreement later than 6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York
City time) on such date, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to
whom such notice is required to be given. The address for such notices and communications shall be as follows: 

	If to the Company:	 	NAPRO BIOTHERAPEUTICS, INC.

4840 Pearl East Circle, Suite 300W

Boulder, CO 80301

(303) 516-8500

Attn: General Counsel
	With a copy to:	 	Bartlit Beck Herman Palenchar & Scott LLP

1899 Wynkoop Street, Suite 800

Denver, Colorado 80202

(303) 592-3100

Attn: Thomas R. Stephens, Esq.
	If to a Purchaser:	 	To the address set forth under the Purchaser's name on the signature pages attached hereto.

or
such other address as may be designated in writing hereafter, in the same manner, by such Person. 

        (e)    Governing Law.    All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective
affiliates, directors, officers, 

11

 

shareholders,
employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan. Each party hereto hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence an
action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys fees and
other reasonable costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 

        (f)    Execution.    This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need
not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) the same with the same force and effect as if such facsimile signature page were an original thereof. 

        (g)    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser. No Purchaser may assign
its rights under this Agreement to any Person without the prior written consent, which consent shall not be unreasonably withheld, of the Company. 

        (h)    Replacement of Shares.    If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but
only
upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or
instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. 

        (i)    Independent Nature of Purchasers.    The obligations of each Purchaser under this Agreement are several and not
joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. The decision of
each Purchaser to purchase Securities pursuant to this Agreement has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or
opinions as to the 

12

 

business,
affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or of the Subsidiary which may have been made or
given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser or any of its agents or employees shall have any liability to any other Purchaser (or any other
person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein, and no action taken by any Purchaser pursuant hereto, shall be deemed to
constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by this Agreement. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the
rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each party to this agreement
acknowledges that Proskauer Rose LLP has acted as counsel only to Mainfield Enterprises, Inc. and not to any other Purchaser. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOLLOW] 

13

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Common Stock Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above. 

	 	 	NAPRO BIOTHERAPEUTICS, INC.	 
	

 	
 	
By:	

	

 
	 	 	 	Name:	Kai Larson	 
	 	 	 	Title:	Vice President, General Counsel	 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF PURCHASERS' FOLLOW] 

14

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Common Stock Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above. 

	MAINFIELD ENTERPRISES, INC.	 	 
	

By:	

	
 	

 
	 	Name:	 	 	 
	 	Title:	 	 	 
	

    	

 	

 	
 	

 

	Purchase Price:	 	$	3,250,000
	Number of Shares to be acquired:	 	 	1,250,000

Residence:
British Virgin Islands 

Address
for Notice: 

Mainfield
Enterprises, Inc.

c/o Sage Capital Growth, Inc.

660 Madison Avenue

New York, NY 10022

Telephone No.: (212) 651-9000

Facsimile No.: (212) 651-9010

Attn: Eldad Gal 

With
copies to: 

Proskauer
Rose LLP

1585 Broadway

New York, New York 10036-8299

Facsimile No.: (212) 969-2900

Telephone No.: (212) 969-3000

Attn: Adam J. Kansler, Esq. 

15

 

	SMITHFIELD FIDUCIARY LLC	 	 
	

By:	

	
 	

 
	 	Name:	Adam J. Chill	 	 
	 	Title:	Authorized Signatory	 	 
	

    	

 	

 	
 	

 

	Purchase Price:	 	$	1,950,000
	Number of Shares to be acquired:	 	 	750,000

Residence:
Cayman Islands 

Address
for Notice: 

Smithfield
Fiduciary LLC

c/o Highbridge Capital Management, LLC

9 West 57th Street, 27th Floor

New York, New York 10019

Facsimile No.: (212) 751-0755

Telephone No.: (212) 287-4720

Attn: Ari J. Storch / Adam J. Chill 

16

QuickLinks

COMMON STOCK PURCHASE AGREEMENT<Page>

                                                                    Exhibit 10.6

                                SELLING AGREEMENT

Agreement, made this 26th day of July, 1999, by and among Allstate Life
Insurance Company ("Allstate Life"), an Illinois life insurance company;
Allstate Life Financial' Services, Inc. ("ALFS"), a Delaware corporation; and
LSA Securities, Inc. ("Broker-Dealer" or BD"), an Oregon corporation.

ALLSTATE LIFE INSURANCE COMPANY        ALLSTATE LIFE FINANCIAL SERVICES, INC.

By: /s/ John R. Hunter                 By:  /s/ Gregory C. Sernett
   -------------------------------       ---------------------------------------
Title: Vice President                  Title: Assistant Secretary
      ----------------------------           -----------------------------------

BROKER DEALER                          ASSOCIATED INSURANCE AGENCY (IF BD IS
UTILIZING                                    SUCH AGENCY PURSUANT TO
                                             SECTION 12)

LSA Securities, Inc
----------------------------------     -----------------------------------------
(Name)                                 (Name)
  206 South 13th St.
----------------------------------     -----------------------------------------
(Street Address)                       Street Address)
  Lincoln, NE 68508-1993
----------------------------------     -----------------------------------------
(City, State, Zip)                     (City, State, Zip)

By: /s/ Carol S. Watson                By:
   -------------------------------        --------------------------------------
        Carol S. Watson

Title:   President                     Title:
      ----------------------------           -----------------------------------
                                       For States:
                                                  ------------------------------

WHEREAS, Allstate Life issues certain variable contracts/policies described
further in this Agreement and attached Schedules, which are deemed securities
("Contracts") under the Securities Act of 1933 ("1933 Act"); and

WHEREAS, ALFS is registered as a  broker/dealer  with the  Securities  Exchange
Commission ("SEC") under the Securities Exchange Act of 1934, as amended ("1934
Act"), and with the National Association of Securities Dealers, Inc. ("NASD");

WHEREAS, Allstate Life has appointed ALFS as Underwriter of the Contracts; and

WHEREAS, BD is duly licensed as a Broker/dealer with the SEC and NASD, and is
engaged in the sale of securities and other investment products; and

WHEREAS, each Associated Insurance Agency is an insurance agent in the states
noted above; and

WHEREAS, Allstate Life and ALFS propose to have Associated Insurance Agency and
BD's representatives ("Representatives") who are also duly licensed insurance
agents solicit sales of the Contracts; and

WHEREAS, ALFS delegates to BD, to the extent legally permitted, training and
certain administrative responsibilities and duties in connection with sales of
the Contracts.

NOW THEREFORE, in consideration of the premises and mutual promises contained
herein including the attached schedule and Exhibits, the parties hereto agree as
follows:

<Page>

1.  APPOINTMENT AND AUTHORIZATION

ALFS hereby authorizes BD to supervise solicitations of the Contracts, and to
facilitate solicitations of sales of the Contracts that are described more
specifically in the Commission Schedule(s) attached hereto. Allstate Life hereby
appoints Associated Insurance Agency to solicit sales of the Contracts. BD and
Associated Insurance Agency accept such appointment and authorization, and each
agrees to use its best efforts to find purchasers of the Contracts acceptable to
Allstate Life.

2.  REPRESENTATIONS

a.  Allstate Life, ALFS, BD and Associated Insurance Agency each represents to
    one another that it and the officers signing above have full power and
    authority to enter into this Agreement, and that this Agreement has been
    duly and validly executed by it and constitutes a legal, valid and binding
    agreement.

b.  ALFS represents to BD that ALFS is registered as a broker/dealer with the
    SEC under 1934 Act and under the state securities laws of each jurisdiction
    in which such registration is required for underwriting the Contracts, and
    that it is a member of the NASD.

c.  BD represents to ALFS that BD is, and at all times when performing its
    functions and fulfilling its obligations under this Agreement, registered
    with the SEC as a broker/dealer under the 1934 Act and under the state
    securities laws of each jurisdiction in which such registration is required
    for the sale of the Contracts, and is a member of the NASD. BD will notify
    ALFS in writing if such registration is terminated or suspended, and shall
    take all reasonable actions to reinstate such registrations.

d.  Allstate Life represents to BD and Associated Insurance Agency that the
    Contracts, including related separate accounts supporting such Contracts,
    shall comply in all material respects with the registration and other
    applicable requirements of the 1933 Act and the Investment Company Act of
    1940, as amended, and the rules and regulations thereunder, including the
    terms of any order of the SEC with respect thereto.

e.  Allstate Life represents to BD and Associated Insurance Agency that the
    Contracts it issues have been filed, or are exempt from filing, and approved
    by the state insurance departments in such jurisdictions where it is
    authorized to transact business and such filing and approval are required
    prior to the issuance of Contracts therein.

f.  Allstate Life represents to BD that the Contract prospectuses included in
    Allstate Life's Registration Statement and in post-effective amendments
    thereto, and any supplements thereto, as filed or to be filed with the SEC,
    as of their respective effective dates, contain or will contain, in all
    material respects, all statements and information which are required to be
    contained therein by the 1933 Act and conform or will conform in all
    material respects to the requirements thereof.

g.  If BD utilizes an Associated Insurance Agency, BD represents that the
    Associated Insurance Agency is licensed in all states in which it conducts
    business. BD and the Associated Insurance Agency represent that they are in
    compliance with the terms and conditions of no-action letters issued by the
    staff of the SEC with respect to non-registration as a broker/dealer of an
    insurance agency associated with a registered broker/dealer. BD and
    Associated Insurance Agency shall notify ALFS immediately in writing if BD
    and/or such agency fail to comply with any such terms and conditions and
    shall take such measures as may be necessary to comply with any such terms
    and conditions. If Associated Insurance Agency is the same person as BD,
    this Paragraph g does not apply, and BD shall undertake all the duties,
    responsibilities and privileges under this agreement.

3.  COMPLIANCE WITH NASD CONDUCT RULES AND FEDERAL AND STATE SECURITIES AND
    STATE INSURANCE LAWS

BD shall abide by all rules and regulations of the NASD governing the sale of
the Contracts, including Its Conduct and Membership and Registration Rules, and
BD and Associated Insurance Agency shall comply with all applicable state and
federal laws and the rules and regulations of authorized regulatory agencies
affecting or governing the sale of the Contracts. BD and Associated Insurance
Agency shall comply with all applicable administrative procedures of Allstate
Life and ALFS.

4.  LICENSING AND/OR APPOINTMENT OF REPRESENTATIVES

a.  BD and Associated Insurance Agency are hereby specifically authorized to
    designate those registered representatives of BD, or individuals associated
    with the Associated Insurance Agency ("Agents"), proposed to be engaged in
    solicitation of sales of the Contracts for appointment by Allstate Life as
    individual insurance agents. BD and Associated Insurance Agency shall not
    propose a registered representative, or Agent, for appointment unless such
    representative, or Agent, is duly licensed as an insurance agent in the
    state(s) in which it is proposed that such representative, or Agent, engage
    in solicitations of sales of the Contracts. BD and Associated Insurance
    Agency together shall be responsible for registered representatives', and
    Agents', compliance with applicable state insurance agent licensing laws.

b.  BD and Associated Insurance Agency shall assist Allstate Life and ALFS in
    the appointment of BD's registered representatives, and Agents, under
    applicable insurance laws, to sell the Contracts. BD and Associated
    Insurance Agency shall comply with Allstate Life requirements for, including
    the General Letter of Recommendation (attached as Exhibit A), in submitting
    licensing or appointment documentation for proposed

                                        2
<Page>

    registered representatives and Agents. All such documentation shall be
    submitted by BD or Associated Insurance Agency to Allstate Life or its
    designated agent licensing administrator.

c.  Allstate Life reserves the right to refuse to appoint any such designated
    individual or, once appointed, to terminate or refuse to renew the
    appointment of any such designated individual. Only those registered
    representatives who are duly licensed as insurance agents and appointed by
    Allstate Life (herein, "Representatives") shall have authority to solicit
    sales of the Contracts. Only those Agents who are registered representatives
    of BD shall have authority to solicit sales of the Registered Contracts.
    Agents who are not registered representatives of BD are not authorized to
    sell Contracts. BD and Associated Insurance Agency shall notify ALFS
    immediately in writing if any Representative appointed by Allstate Life
    ceases to be a registered representative of BD or if any Representative or
    Agent ceases to be properly licensed in any state.

5.  SUPERVISION OF REPRESENTATIVES AND AGENTS

a.  BD shall have full responsibility for training and supervision of all
    Representatives and all other persons associated with BD who are engaged
    directly or indirectly in the offer or sale of the Contracts, and all such
    persons shall be subject to the control of BD with respect to such persons'
    activities in connection with the sale of the Contracts. Associated
    Insurance Agency shall have full responsibility for training and supervision
    of all Agents who are involved directly or indirectly in the offer or sale
    of the Contracts and for Agent's compliance with applicable state insurance
    laws.

b.  Before Representatives and Associated Insurance Agency engage in the
    solicitation of applications for the Registered Contracts, BD and Associated
    Insurance Agency will cause the Representatives (1) to be registered
    representatives of BD; (2) to be licensed, registered or otherwise qualified
    under applicable federal and state laws to engage in the sale of the
    Contracts; (3) to be trained in the sale of the Contracts; and (4) to limit
    solicitation of applications for the Contracts to jurisdictions where
    Allstate Life has authorized such solicitations.

c.  BD is specifically charged with the responsibility of supervising and
    reviewing its Representatives' use of sales literature and advertising and
    all other communications with the public in connection with the Contracts.
    No sales solicitation, including the delivery of supplemental sales
    literature or other such materials, shall occur, be delivered to, or used
    with a prospective purchaser unless accompanied or preceded by the
    appropriate then current prospectus(es), the then current prospectus(es) for
    the underlying funds funding the contracts and, where required by state
    insurance law, the then current statement of additional information relating
    to the Contracts.

e.  BD shall execute any electronic or telephone orders only in accordance with
    the then current prospectus applicable to the Contracts and agrees, that in
    consideration for the telephone transfer privileges, Allstate Life will not
    be liable for any loss incurred as a result of acting upon electronic or
    telephone instructions containing unauthorized, incorrect or incomplete
    information received from BD or its representatives.

f.  Upon request by Allstate Life, BD and Associated Insurance Agency shall
    furnish appropriate records or other documentation to evidence BD's and
    Associated Insurance Agency's diligent supervision.

g.  In the event a Representative or Agent performs any unauthorized
    transaction(s) with respect to a Contract(s), BD shall bear sole
    responsibility, shall notify Allstate Life and shall act to terminate the
    sales activities of such Representative or Agent relating to the
    Contract(s).

h.  In the event a Representative or Agent falls to meet the BD's or Associated
    Insurance Agency's rules and standards, BD or Associated Insurance Agency,
    as the case may be, shall notify Allstate Life and shall act to terminate
    the sales activities of such Representative or Agent relating to the
    Contracts.

6.  SALES PROMOTION MATERIAL AND ADVERTISING

a.  BD, Associated Insurance Agency, Agents and Representatives, in connection
    with the offer or sale of the Contracts or solicitation of a payment or
    other transaction under a Contract, shall not give any information or make
    any representations or statements, written or oral, concerning the Contracts
    or a Fund, inconsistent with information or representations contained in the
    prospectus, statement of additional information and registration statement
    for the Contracts or such Fund, or in reports or proxy statements thereof,
    or in promotional, sales or advertising material or other information
    supplied and approved in writing by ALFS for such use. BD, Associated
    Insurance Agency, Agents and Representatives may not modify or represent
    that they may modify any such prospectus, statement of additional
    information, registration statement, promotional, sales or advertising
    materials.

b.  No item of sales promotion materials or advertising relating to the
    Contracts, including any illustrations or software programs therefor, shall
    be used by BD, Associated Insurance Agency, Agents or Representatives unless
    the specific item has

                                        3
<Page>

    been provided by Allstate Life and ALFS or has first been approved in
    writing by Allstate Life and ALFS for use. Allstate Life and ALFS reserve
    the right to recall any material provided by them at any time for any
    reason, and BD and Associated Insurance Agency shall promptly comply with
    any such request for the return of material and shall not use such material
    thereafter.

7.  ETHICAL MARKET CONDUCT COMPLIANCE

In addition to the requirement that you comply with the rules and regulations
pertaining to supervision, underwriting practices, acceptance of risks, delivery
of policies and all other areas of Allstate Life's business, the BD and BD's
representatives are required to:

(a) Comply with Allstate Life's and ALFS's policies and procedures concerning
     the replacement of life insurance policies and annuity policies. A
     replacement occurs whenever an existing life insurance policy or annuity is
     terminated, converted, or otherwise changed in value. For any transaction
     involving a replacement, Allstate Life and ALFS require you to:

     (1) recommend the replacement of an existing policy only when replacement
     is in the best interest of the customer;
     (2) fully disclose all relevant information to the customer which includes,
     but is not limited to: 1) comparison of old and new premiums, expenses and
     surrender charges, cash values, and death benefits; 2) any loss of cash
     value or policy value by surrendering the existing policy; 3) all
     guaranteed and maximum values of both policies; 4) the fact that a new
     contestability and suicide period starts under the new policy; and 5) the
     requirement that the customer must be re-underwritten for the new policy;
     (3) provide state-required replacement notices to customers on the same day
     the application is taken and indicate on the application that the
     transaction involves the full or partial replacement of an existing policy;
     (4) never recommend that a customer cancel an existing policy until a new
     policy is in force and the customer has determined that the new policy is
     acceptable.

(b) Adhere to Allstate Life's rules and regulations concerning ethical market
     conduct, which require that you:

     (1) carefully evaluate the insurance needs and financial objectives of your
     customers, and use sales tools (e.g., policy illustrations and sales
     brochures) to determine that the insurance or annuity your proposing meets
     these needs;
     (2) maintain a current license and valid appointment in all state in which
     your promote the sale of Allstate Life products to customers and keep
     current of changes in insurance laws and regulations;
     (3) comply with Allstate Life's policies concerning replacements, and
     refrain from providing false or misleading information about a competitor
     or competing product or otherwise making disparaging remarks about a
     competitor;
     (4) submit all advertising materials intended to promote the sale of an
     Allstate Life product to the home office for approval prior to use;
     (5) immediately report to Allstate Life any customer complaints, whether
     written or oral, and assist Allstate Life in resolving the complaint to the
     satisfaction of all parties;
     (6) communicate these standards to any producers or office personnel that
     you directly supervise and request their agreement to be bound by these
     conditions as well.

8.  SOLICITING APPLICATIONS AND PAYMENTS

a.  All applications for Contracts shall be made on application forms supplied
    by Allstate Life. BD, Associated Insurance Agency, Agents and the
    Representatives shall not recommend the purchase of a Contract to a
    prospective purchaser unless it has reasonable grounds to believe that such
    purchase is suitable for the prospective purchaser and is in accordance with
    applicable regulations of any state insurance department, the SEC and the
    NASD. A determination of suitability shall include, but is not limited to,
    information concerning the prospective purchaser's insurance and investment
    objectives, risk tolerance, tax status, previous investment experience, and
    other investments and savings.

b.  BD and Associated Insurance Agency shall review applications for
    completeness and correctness as to form, as well as compliance with the
    suitability standards specified above. BD will promptly, but in no case
    later than the end of the next business day following receipt by BD or a
    Representative, forward to Allstate Life all complete and correct
    applications, according to administrative procedures, together with any
    payments received with the applications, without deduction for compensation.
    Allstate Life reserves the right to reject any Contract application and
    return any payment made in connection with an application that is rejected.

c.  Contracts issued on accepted applications will be forwarded to BD for
    delivery to the Contract owner according to procedures established by
    Allstate Life, unless Allstate Life has provided otherwise. BD shall cause
    each such Contract to be delivered to the respective Contract Owner within
    five days after BD's receipt. BD shall be liable to Allstate Life for any
    loss incurred by Allstate Life (including consequential damages and
    regulatory penalties) as a result of any delay by BD or a Representative in
    delivering such Contract.

d.  BD, Associated Insurance Agency, Agents and Representatives shall not
    encourage a

                                        4
<Page>

    prospective purchaser to surrender or exchange a Contract in order to
    purchase another insurance policy or contract except when a change in
    circumstances makes the Contract an unsuitable investment for the Contract
    owner.

9.  PAYMENTS RECEIVED BY BD

All premium payments are the property of Allstate Life and shall be transmitted
to Allstate Life by BD immediately upon receipt by BD or Associated Insurance
Agency or any Agent or Representative in accordance with the administrative
procedures of Allstate Life, without any deduction or offset for any reason,
including by example but not limitation any deduction or offset for compensation
claimed by BD. CUSTOMER CHECKS SHALL BE MADE PAYABLE TO THE ORDER OF "ALLSTATE
LIFE INSURANCE COMPANY." Allstate Life reserves the right to reject any Payment
for any reason.

10. COMMISSIONS PAYABLE

a.  Commissions payable in connection with the Contracts shall be paid to BD or
    Associated Insurance Agency according to the Commission Schedule(s) relating
    to this Agreement then in effect at the time of receipt by Allstate Life of
    the payment. If available, a Commission Option(s) may: (1) be elected by BD
    and Associated Insurance Agency on behalf of all of its Representatives or
    Agents or (2) may be elected by each Representative or Agent at the time of
    Application. Any election made and applied to a Contract may not be changed
    and will be in effect for the life of the Contract. Allstate Life and ALFS
    reserve the right to revise the Commission Schedule(s) for new business at
    any time upon at least thirty (30) days prior written notice to BD and
    Associated Insurance Agency.

b.  Compensation to Representatives or Agents for Contracts solicited by the
    Representatives or Agents and issued by Allstate Life will be governed by
    agreements between BD or the Associated Insurance Agency and their
    respective Representatives or Agents and payment thereof will be the BD's or
    Associated Insurance Agency's sole responsibility.

11. REFUND OF COMMISSIONS

If Allstate Life is required to refund premiums or return contract values and
waive surrender charges on any Contract for any reason, then commission will be
adjusted with respect to said premiums or Contract as set forth in the
Commission Schedule, and any commission previously paid for said premiums must
be refunded to Allstate Life or ALFS. ALFS shall have the right to offset any
such refundable commission against amounts otherwise payable by ALFS. ALFS
agrees to notify BD and Associated Insurance Agency Within thirty (30) days
after it receives notice from Allstate Life of any premium refund or a
commission charge back.

12. ASSOCIATED INSURANCE AGENCY

In the event BD is not licensed as an insurance agency in any state where it
wishes to solicit Contracts, but utilizes and Associated Insurance Agency to
satisfy state insurance laws, such Associated Insurance Agency shall sign this
agreement and BD shall countersign this Agreement, and BD and it Associated
Insurance Agency shall be duly bound thereby.

13. HOLD HARMLESS AND INDEMNIFICATION PROVISIONS

a.  No party to this Agreement will be liable for any obligation, act or
    omission of any other party. BD and Associated Insurance Agency will hold
    harmless and indemnify Allstate Life and ALFS, and conversely, Allstate Life
    and ALFS will hold harmless and indemnify BD and Associated Insurance Agency
    for any loss or expense suffered as a result of the violation or
    noncompliance by the indemnifying party of or with any applicable law or
    regulation or any provision of this Agreement. Further, any BD violation or
    noncompliance by an associated person, as defined in Article 1 of the NASD
    By-Laws, would be covered under this provision.

b.  Without limiting the above paragraph, in situations when "as of" pricing is
    necessary in connection with the Contracts (and a loss is incurred to
    compensate the Contract owner for reduced Contract values) the party whose
    actions resulted in the loss will bear the costs according to pricing
    procedures established by Allstate Life.

14. ASSIGNMENT

This Agreement may not be assigned by any party except by mutual consent of all
other parties.

15. WAIVER

The failure of any party to insist upon the performance of any of the terms of
this agreement in any one or more instances will not be construed as a waiver or
relinquishment of the future performance of any such term. The obligation of the
parties with respect to any such future performance will continue in full force
and effect.

16. AMENDMENT

This agreement may not be amended except by written agreement signed by all
parties hereto which expressly states that it amends this agreement.

17. INDEPENDENT CONTRACTORS

BD and its Representatives, and Associated Insurance Agency and its Agents, are
independent contractors with respect to Allstate Life and ALFS.

                                        5
<Page>

18. NOTIFICATION OF CUSTOMER COMPLAINTS OR DISCIPLINARY PROCEEDINGS

a.  BD and Associated Insurance Agency agree to notify ALFS promptly of any
    customer complaints or disciplinary proceedings against BD, Associated
    Insurance Agency or any Representatives or Agents relating to the Contracts
    or any threatened or filed arbitration action or civil litigation arising
    out of solicitation of the Contracts.

b.  BD and Associated Insurance Agency shall cooperate with Allstate Life in
    investigating and responding to any customer complaint, attorney demand, or
    inquiry received from state insurance departments or other regulatory
    agencies or legislative bodies, and in any settlement or trial of any
    actions arising out of the conduct of business under this Agreement.

c.  Any response by BD or Associated Insurance Agency to an individual customer
    complaint will be sent to Allstate Life and/or ALFS for approval not less
    than five (5) business days prior to it being sent to the customer, except
    that if a more prompt response is required, the proposed response may be
    communicated by telephone, facsimile or in person.

19. BOOKS, ACCOUNTS AND RECORDS

a.  Allstate Life, ALFS, BD and Associated Insurance Agency agree to maintain
    books, accounts and records so as to clearly and accurately disclose the
    nature and details of transactions relating to the Contracts and to assist
    each other in the timely preparation of their respective books, accounts and
    records. BD and Associated Insurance Agency shall upon request submit such
    books, accounts and records to the regulatory and administrative bodies
    which have jurisdiction over Allstate Life or the Funds.

b.  Each party to this Agreement shall promptly furnish to the other parties any
    reports and information which another party may request for the purpose of
    meeting, its reporting and record keeping obligations under the insurance
    laws of any state, and under the federal and state securities laws or the
    rules of the NASD.

20. LIMITATIONS

No party other than Allstate Life shall have authority on behalf of Allstate
Life to make, alter, or discharge any Contract issued by Allstate Life, to waive
any forfeiture provision or to grant, permit, or extend the time of making any
Payments, or to alter the forms which Allstate Life may prescribe or substitute
other forms in place of those prescribed by Allstate Life or to enter into any
proceeding in a court of law or before a regulatory agency in the name of or on
behalf of Allstate Life.

21. CONFIDENTIALITY

Each party to this Agreement shall maintain the confidentiality of any material
designated as proprietary by another party, and shall not use or disclose such
information without the prior written consent of the party designating such
material as proprietary.

22. TERMINATION

a.  This Agreement may be terminated at the option of any party upon ten (10)
    days written notice to the other parties, or at the option of any party
    hereto upon the breach by any party of the covenants and terms of this
    Agreement. Paragraph 12 shall survive any such termination.

b.  This Agreement may be terminated immediately for cause upon an event of
    default, such termination shall be deemed to occur as of the date
    immediately preceding the event of default. An "event of default" shall
    occur when the first of the (i) BD or Associated Insurance Agency files for
    bankruptcy, or financial or corporate reorganization under federal or state
    insolvency law; (ii) applicable laws or regulations prohibit BD or
    Associated Insurance Agency from continued marketing of the Contracts.

23. NOTICE

a.  In the event of sale, transfer or assignment of a controlling interest in BD
    or Agency, notice shall be provided in writing to Allstate Life no less than
    thirty (30) days prior to the closing date.

b.  All notices to Allstate Life and ALFS relating to this Agreement will be
    duly provided by certified or express mail to:

    General Counsel
    Allstate Life Insurance Company
    3100 Sanders Road
    Northbrook, Illinois 60062

c.  All notices to BD and Associated Insurance Agency relating to this Agreement
    will be duly provided by certified or express mail to:

    General Counsel
    Lincoln Benefit Life Centre
    Lincoln, Nebraska 68501-0469.

24. SEVERABILITY

Should any provision or part of this Agreement is held invalid for any reason,
such invalidity will not affect any other provision or part of this agreement
not held invalid, and such remaining provisions and parts will remain in full
force and effect.

25. GOVERNING LAW

This Agreement will be construed in accordance with the laws of the State of
Illinois.

                                        6
<Page>

                                    EXHIBIT A

                        GENERAL LETTER OF RECOMMENDATION

BD hereby certifies to Allstate Life Insurance Company ("Allstate Life") that
all the following requirements will be fulfilled in conjunction with the
submission of appointment papers for all applicants as agents of Allstate Life
submitted by BD. BD will, upon request, forward proof of compliance with same to
Allstate Life in a timely manner.

1.  We have made a thorough and diligent inquiry and investigation relative to
    each applicant's identity, residence, business reputation, and experience
    and declare that each applicant is personally known to us, has been examined
    by us, is known to be of good moral character, has a good business
    reputation, is reliable, is financially responsible and is Worthy of
    appointment as a variable contract agent of Allstate Life. This inquiry and
    background investigation has included a credit and criminal check on each
    applicant. Based upon our investigation, we vouch for each applicant and
    certify that each individual is trustworthy, competent and qualified to act
    as an agent for Allstate Life to hold himself out in good faith to the
    general public.

2.  We have on file the appropriate state insurance department licensing forms
    (i.e., B-300, B-301), or U-4 form which was completed by each applicant. We
    have fulfilled all the necessary investigative requirements for the
    registration of each applicant as a registered representative through our
    NASD member firm, and each applicant is presently registered as an NASD
    registered representative.

    The above information in our files indicates no fact or condition which
    would disqualify the applicant from receiving a license or appointment and
    all the findings of all investigative information is favorable.

3.  We certify that all educational requirements have been met for the specific
    state each applicant is licensed in, and that, all such persons have
    fulfilled the appropriate examination, education and training requirements.

4.  We certify that each applicant will receive close and adequate supervision,
    and that we will make inspection when needed of any or all risks written by
    these applicants, to the end that the insurance interest of the public will
    be properly protected.

5.  We will not permit any applicant to transact insurance as an agent until
    duly licensed and appointed by Allstate Life. No applicants have been given
    a contract or furnished supplies, nor have any applicants been permitted to
    write, solicit business, or act as an agent in any capacity on behalf of
    Allstate Life, and they will not be so permitted until the certificate of
    authority applied for is received.

<Page>

                                   SCHEDULE A

                             SCHEDULE OF COMMISSIONS

Subject to terms and conditions of the Selling Agreement, Associated Insurance
Agency shall be compensated for VA Contracts issued according to the following
chart (based upon the option selected in writing by each Agent or
Representative):

                 ALLSTATE SELECT DIRECTIONS (SM) VARIABLE ANNUITY

<Table>
<Caption>
                                     COMMISSION OPTIONS
                              ----------------------------------
       ISSUE AGE                    A                  B
----------------------------------------------------------------
         <S>                     <C>              <C>
         All                      6.5%*              5.0%*
                                 no trail         .40% trail**
</Table>

*= Based upon purchase payment.

**  =   Trail commissions are based on the Contract Value on the last day of
each contract quarter beginning with the last day of the 15th contract month.
Trail commissions will be paid at the end of the calendar month in which the
contract quarter ends beginning with the 15th contract month and ending when the
contract is annultized. The contract must be in effect through the end of the
calendar month for a trail commission to be paid.

                             COMMISSION CHARGEBACKS

<Table>
<Caption>
  TRANSACTION     PERIOD OF CHARGEBACK         CHARGEBACK          PLEASE NOTE
-----------------------------------------------------------------------------------
   <S>            <C>                      <C>                     <C>
   Surrender           During the          100% of commission.
                  first contract year
</Table>

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