Document:

Exhibit 10.2

 

AGREEMENT FOR THE PROVISION OF A LOAN FACILITY 
 OF UP TO €10,000,000

 

Dated 20 December 2013

 

Between

 

KREOS CAPITAL IV (UK) LIMITED a company incorporated in England and Wales under registered number 07758282 whose registered office is at 25-28 Old Burlington Street, London W1S 3AN (the “Lender”, which expression shall include its permitted successors and assigns);

 

TIGENIX NV, a company which has made a public call on savings (openbaar beroep op het spaarwezen/appel public à l’épargne), incorporated in Belgium under registered number 0471.340.123 and listed on the regulated market of Euronext, Brussels, whose registered office is at Romeinse straat 12, box 2, 3001 Heverlee, Belgium (the “Borrower”);

 

and

 

TIGENIX S.A.U., a company incorporated under the laws of Spain registered with the Commercial Registry of Madrid section 8 at volume 2,0117, sheet 222, page M-355159, with registered office at C/ Marconi 1- Planta Baja, Parque Tecnológico Tres Cantos Madrid (Spain) and with Spanish tax ID number A84008986 (the “Guarantor”).

 

WHEREAS:

 

1.                                      The Borrower wishes to borrow up to the Total Loan Facility (as defined below) and the Lender wishes to make the Total Loan Facility available to the Borrower on the terms of this agreement (the “Loan Agreement”);

 

2.                                      The Borrower hereby confirms that on or about the date hereof it shall enter into the Initial Security Documents as security for monies borrowed by the Borrower hereunder; and

 

3.                                      The Guarantor has agreed to enter into this Loan Agreement for the purpose of guaranteeing to the Lender the Obligors’ liabilities from time to time outstanding to the Lender.

 

LOAN FACILITY TERMS:

 

	
Total   Loan Facility
    	
 
    	
€10,000,000   available to be drawn down in 3 (three) tranches as follows:

 

Tranche   1: €5,000,000 (five million Euros);

 

Tranche   2: €2,500,000 (two million five hundred thousand Euros); and
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

1

 

	
 
    	
 
    	
Tranche   3: €2,500,000 (two million five hundred thousand Euros)
    
	
 
    	
 
    	
 
    
	
Tranche   Expiry Date
    	
 
    	
Tranche   1: 3 February 2014

 

Tranche   2: 31 May 2014

 

Tranche   3: 30 September 2014
    
	
 
    	
 
    	
 
    
	
Advance   Payment
    	
 
    	
In   respect of each Tranche

 

1:   €[***]

 

2:   €[***]

 

3:   €[***]
    
	
 
    	
 
    	
 
    
	
Repayment   Term
    	
 
    	
In   respect of each Tranche, forty-eight (48) months from the date such Tranche   is advanced by the Lender to the Borrower
    
	
 
    	
 
    	
 
    
	
Transaction   Fee
    	
 
    	
[***]   of the Total Loan Facility payable upon execution of this Loan Agreement
    
	
 
    	
 
    	
 
    
	
End   of Loan Fee
    	
 
    	
[***]   of the amount drawn down under each Tranche, payable at the end of each   Tranche
    
	
 
    	
 
    	
 
    
	
Additional   End of Loan Fee
    	
 
    	
an   amount up to [***]
    
	
 
    	
 
    	
 
    
	
Warrant   Fee
    	
 
    	
€897,000   payable to the Lender in accordance with Clause 13.3 below
    
	
 
    	
 
    	
 
    
	
Minimum   Drawdown Amount
    	
 
    	
€5,000,000   (five million Euros) in respect of Tranche 1

 

€2,500,000   (two million five hundred thousand Euros) in respect of Tranche 2

 

€2,500,000   (two million five hundred thousand Euros) in respect of Tranche 3
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

2

 

1                                         DEFINITIONS

 

In this Loan Agreement, including the recitals set out above, unless otherwise defined:

 

1.1                               “Accounts” means the audited annual consolidated profit and loss account and balance sheet of the Borrower and the Group for the period ended on 31 December 2012 as approved by the annual general meeting of the Borrower;

 

1.2                               “Additional End of Loan Fee” means the Additional End of Loan Fee and set forth above under the Loan Facility Terms;

 

1.3                               “Advance Payment” is in the amount set forth above in the Loan Facility Terms;

 

1.4                               “Affiliate” means, in relation to any person, a subsidiary of that person or a holding company of that person or any other subsidiary of that holding company;

 

1.5                               “Applicable Interest Rate” has the meaning given in Clause 6.1;

 

1.6                               “Assignee” has the meaning given in Clause 21.5;

 

1.7                               “Authorisation” means an authorisation, consent, approval, resolution, licence, permit exemption, filing, notarisation or registration;

 

1.8                               “Base Case Model” means the financial model including profit and loss and pro forma cash flow projections relating to the Group, each prepared by the Borrower and approved by the Lender in writing;

 

1.9                               “Business Day” means any day on which banks are generally open for business in London other than a Saturday or Sunday;

 

1.10                        “Charged Assets” means the assets and undertaking charged or to be charged to the Lender from time to time pursuant to the Security Documents;

 

1.11                        “Company Code” means the Belgian Wetboek van Vennootschappen/Code des Sociétés dated 7 May 1999, as amended from time to time;

 

1.12                        “Confidential Information” means all information relating to the Borrower, any Obligor, the Group, the Finance Documents or the Loan of which the Lender becomes aware in its capacity as, or for the purpose of becoming, a Lender or which is received by the Lender in relation to, or for the purpose of becoming the Lender under, the Finance Documents or the Loan, from any member of the Group or any of its advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

3

 

(i)                                     is or becomes public information other than as a direct or indirect result of any breach by the Lender of Clause 20;

 

(ii)                                  is identified in writing at the time of delivery as non-confidential by any member of the Group or any of its advisers; or

 

(iii)                               is known by the Lender before the date the information is disclosed to it in accordance with paragraphs (i) or (ii) above or is lawfully obtained by the Lender after that date, from a source which is, as far as the Lender is aware, unconnected with the Group and which, in either case, as far as the Lender is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality;

 

1.13                        “Drawdown” means the drawdown of a Tranche under the Loan Facility;

 

1.14                        “Drawdown Date” means, unless otherwise provided herein, the date on which any Tranche is actually advanced to the Borrower by the Lender;

 

1.15                        “Drawdown Notice” means a drawdown notice served in accordance with Clause 3.2 in the form attached hereto as Schedule A (as may be amended with the prior written consent of the Lender);

 

1.16                        “Dutch Facility” means GMP manufacturing facility located in Geleen, the Netherlands, leased and operated by the Dutch Subsidiary;

 

1.17                        “Dutch Subsidiary” means Tigenix B.V. a company incorporated under the laws of the Netherlands, under registered number 14121664 whose registered office is at Urmonderbaan 20b, 6167RD Geleen, the Netherlands;

 

1.18                        “End of Loan Fee” means the End of Loan Fee set forth above under the Loan Facility Terms;

 

1.19                        “Event of Default” means any of the events or circumstances described in Clause 11;

 

1.20                        “Excluded Assets” means

 

(a)                                 all Intellectual Property or other assets newly acquired or developed by any Group Company, provided the acquisition or development of such assets is funded (i) by Soft Loans, (ii) from the proceeds of an equity issuance made specifically for the purpose of such acquisition of development; (iii) by Subordinated Financial Indebtedness raised specifically for such acquisition or development or (iv) by debt or equity raised by a Ring-fenced Company;

 

(b)                                 co-owned Intellectual Property; and

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

4

 

(c)                                  rights in undisclosed or confidential information (including know-how), except if (i) it is legally possible to take security over rights in undisclosed or confidential information (including know-how) in the jurisdiction where the relevant security provider is located, (ii) the creation or perfection of the Security Interest does not result in costs which are unreasonable and disproportionate to the value of the Security Interest for the Lender, and (iii) the rights in undisclosed or confidential information (including know-how) are documented by the relevant Group Company and (iv) in respect of rights in undisclosed or confidential information (including know-how) of a Group Company located in Belgium only, up to a maximum secured amount of [***].

 

1.21                        “Existing Financial Indebtedness” means the Financial Indebtedness listed in Schedule C;

 

1.22                        “Tranche Expiry Date” means in respect of each Tranche the date set forth above under the heading Loan Facility Terms;

 

1.23                        “Finance Documents” means this Loan Agreement, the Security Documents, the Drawdown Notice, and any other document designated as such by the Lender and the Borrower;

 

1.24                        “Financial Indebtedness” means (i) monies borrowed, (ii) finance or capital leases, (iii) receivables sold or discounted (other than on a non-recourse basis), (iv) other transactions or arrangements having the commercial effect of borrowing (but excluding trade credit incurred in the ordinary course of business), (v) the market to market value of derivative transactions entered into in connection with protection against or benefit from fluctuation in any rate or price, (vi) counter-indemnity obligations in respect of guarantees or other instruments issued by a bank or financial institution, and (vii) liabilities under guarantees or indemnities for any of the obligations referred to in items (i) to (vi);

 

1.25                        “Group” means (i) the Borrower and its subsidiaries (if any), (ii) any holding company of the Borrower, and (iii) any subsidiaries of such holding companies from time to time, other than Arcarios B.V. and “Group Company” means any member of the Group;

 

1.26                        “Guaranteed Obligations”:  all monies, debts and liabilities of any nature from time to time due, owing or incurred by the Borrower to the Lender on any current or other account under or in connection with any present or future debt facilities provided by the Lender to the Borrower;

 

1.27                        “Initial Period” means the period from the date of this Loan Agreement to 30 September 2014;

 

1.28                        “Intellectual Property” means copyrights and related rights (including, without limitation, rights in computer software), patents, inventions, supplementary protection

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

5

 

certificates, utility models, trademarks, trade names, service marks, domain name registrations, registered and unregistered rights in designs, database rights, semi-conductor topography rights, plant variety rights, rights protectable by the law of passing off or by laws against unfair competition, rights in undisclosed or confidential information (such as know-how, trade secrets and inventions (whether patentable or not)), and other similar intellectual property rights (whether registered or not) and applications for such rights as may exist anywhere in the world;

 

1.29                        “Interim Repayment” means the payment in respect of interest accruing during the period from each Drawdown Date to the First Monthly Repayment Date being the amount of interest accruing at the Applicable Interest Rate on the amount drawn down for the period from and including the Drawdown Date to First Monthly Repayment Date;

 

1.30                        “Initial Security Documents” means the documents set out in Schedule B;

 

1.31                        “Legal Reservations” means:

 

(i)                                   the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors;

 

(ii)                                the time barring of claims under the Limitation Acts, the possibility that an undertaking to assume liability for or indemnify a person against nonpayment of UK stamp duty may be void and defences of set-off or counterclaim;

 

(iii)                             the limitations imposed by overriding rules of a Relevant Jurisdiction;

 

(iv)                            the limitations on the enforceability of Security Interests over rights in undisclosed or confidential information (including know-how) which is not documented; and

 

(v)                               similar principles, rights and defences under the laws of any Relevant Jurisdiction;

 

1.32                        “Licencing”:  means the full or partial licence on arm’s length commercial terms of some or all Intellectual Property (whether registered or unregistered, which may now or in the future subsist) and/or rights in connection with and/or ancillary to Intellectual Property granting another party (either a member of the Group or a third party) the right to, including but not limited hereto, commercialise, market, sell, distribute, advertise, produce, manufacture, develop or further develop any existing or future product or right of the Borrower or any Group Company;

 

1.33                        “Licencing Agreement” means an agreement on arm’s length commercial terms evidencing the Licencing;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

6

 

1.34                        “Loan” means the loan to be made available under a Tranche in accordance with the terms of this Loan Agreement, and “Loans” means the Tranches collectively;

 

1.35                        “Loan Facility” means the loan facility set out in this Loan Agreement;

 

1.36                        “Loan Facility Terms” means the Loan Facility Terms set out at the beginning of this Loan Agreement;

 

1.37                        “Loan Term” means with respect to each Tranche, the period commencing on the Drawdown Date and expiring on the 48th Monthly Repayment Date thereafter;

 

1.38                        “Madrid Network Assets” means all Intellectual Property, stock, plants, equipment and assets which are either pledged to Madrid Network or relate to the Madrid Network financing;

 

1.39                        “Minimum Drawdown Amount” means the minimum amount permitted to be drawn down in each Tranche, as set forth above under the heading Loan Facility Terms;

 

1.40                        “Monthly Repayment Date” means the first Business Day of a calendar month, and in respect of each Tranche, the “First Monthly Repayment Date” shall mean the first Monthly Repayment Date following the Drawdown Date of such Tranche;

 

1.41                        “Notarial Deed” means the deed in agreed form to be duly passed before a Belgian Public Notary which records the resolutions to be passed by the shareholders’ meeting in respect of the issue of the Warrant;

 

1.42                        “Obligors” the Borrower and the Guarantor;

 

1.43                        “Party” means a party to this Loan Agreement;

 

1.44                        “Perfection Requirements” means the making of the appropriate registrations, filings or notifications for perfecting the Security Interests as set out in the Security Documents;

 

1.45                        “Permitted Bank Guarantee” means a bank guarantee obtained for the benefit of an entity which is the creditor under a Soft Loan to guarantee the repayment of such Soft Loan when repayable under the terms of such Soft Loan.

 

1.46                        “Permitted Disposal” means:

 

(i)                                   any Licencing by a Group Company (to the extent that such Licencing would constitute or involve a disposal), provided that all rights of the Group Company under each Licencing will be pledged in favour of the Lender, such pledge being on terms acceptable to the Lender at the time of signing the relevant Licencing Agreement;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

7

 

(ii)                                the disposal of the shares or assets in the Dutch Subsidiary as well as any conversion of intra-group receivables owing from the Dutch Subsidiary into equity prior to such disposal;

 

(iii)                             the disposal of the Dutch Facility;

 

(iv)                            the disposal of the shares or assets of the UK Subsidiary;

 

(v)                               any disposal of trading stock, cash assets, equipment, plants by a Group Company or the Borrower in the ordinary course of business on arms’ length terms of the disposing entity, excluding the Madrid Network Assets;

 

(vi)                            any disposal arising directly as a result of enforcement of any Permitted Security;

 

(vii)                         any disposal of assets to another Group Company provided that, if the transferor has granted security over the applicable assets to the Lender, the transferee shall grant equivalent security to the Lender on terms acceptable to the Lender;

 

(viii)                      any disposal or transfer of assets (including contracts) by a Group Company as part of a distribution or manufacturing agreement permitted under Clause 1.48 on arm’s length terms, provided that all rights of the Group Company under each such agreement will be pledged in favour of the Lender, such pledge being on terms acceptable to the Lender at the time of signing the relevant agreement;

 

(ix)                            subject to the Lender’s prior written consent, any disposal of assets to another Group Company;

 

1.47                        “Permitted Financial Indebtedness” means Financial Indebtedness incurred by the Borrower or any Group Company:

 

(i)                                   under this Loan Agreement or the Security Documents;

 

(ii)                                owed to another Group Company provided that the creditor Group Company has granted security to the Lender, such security being on terms acceptable to the Lender and not over Excluded Assets;

 

(iii)                             for non-speculative hedging transactions entered into in the ordinary course of business in connection with protection against interest rate or currency fluctuations;

 

(iv)                            for financial leases in the ordinary course of business of a capital value not to exceed [***] in respect of the Group;

 

(v)                               on terms (including interest, repayment and subordination) satisfactory to the Lender;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

8

 

(vi)                            Soft Loans up to a maximum of [***] in aggregate;

 

(vii)                         the Existing Financial Indebtedness, provided that no item of Existing Financial Indebtedness shall exceed the amount specified for such item in Schedule C;

 

(viii)                      in connection with the factoring arrangements up to an aggregate amount not to exceed [***]; provided that such factoring arrangements continue on materially the same terms as at the date hereof;

 

(ix)                            Subordinated Financial Indebtedness;

 

(x)                               Financial Indebtedness of any Ring-fenced Company, subject to clause 8.1.12; and

 

(xi)                            Permitted Bank Guarantees.

 

1.48                        “Permitted Transaction” means:

 

(i)                                   the entry into a Licensing Agreement by any Group Company provided that the relevant Group Company has granted security to the Lender on terms acceptable to the Lender;

 

(ii)                                the winding-up of the UK Subsidiary;

 

(iii)                             the winding-up of the US Subsidiary;

 

(iv)                            the entry into of manufacturing agreements for the manufacturing of existing or future products of any Group Company on arm’s length terms, provided that the relevant Group Company has granted security to the Lender on terms acceptable to the Lender; and

 

(v)                               the entry into of distribution agreements for the distribution of existing or future products of any Group Company on arm’s length terms, provided that the relevant Group Company has granted security to the Lender on terms acceptable to the Lender.

 

1.49                        “Permitted Security” means:

 

(i)                                   any Security Interest provided to the Lender under this Loan Agreement;

 

(ii)                                any netting or set-off arrangement entered into by any Group Company in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

 

(iii)                             any Security Interest arising by operation of law;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

9

 

(iv)                            any Security Interest over any bank account in favour of the bank or with which the applicable account is held;

 

(v)                               any Security Interest (other than as referred to in (viii) below) in favour of the provider of a Soft Loan over the cash proceeds of such Soft Loan before such proceeds are spent by the applicable Group Company;

 

(vi)                            any security deposit which is granted under or pursuant to a lease agreement relating to the premises where the lessee’s operations are conducted;

 

(vii)                         any Security Interest provided for the benefit of Bankinter in respect of counter indemnities given by Group Companies for various bank guarantees issued for the benefit of the Group up to [***];

 

(viii)                      any Security Interest granted by a Ring-fenced Company, subject to Clause 8.1.12;

 

(ix)                            any Security Interest (other than as referred to in the paragraphs (i) to and including (viii) above) arising in the ordinary course of trading up to a maximum aggregate amount of [***];

 

1.50                        “Related Fund” in relation to a fund (the “first fund”), means a fund which is managed or advised by the same investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser of the first fund;

 

1.51                        “Repayment Schedule” has the meaning given in Clause 5.2.3;

 

1.52                        “Relevant Jurisdiction” means Belgium, Spain, England and Wales and the United States of America or any other jurisdiction where a Group Company is established from time to time;

 

1.53                        “Representative” means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian;

 

1.54                        “Rights” means any Security Rights or other right or benefit whether arising by set-off, counterclaim, subrogation, indemnity, proof in liquidation or otherwise and whether from contribution or otherwise;

 

1.55                        “Ring-fenced Company” means a special purpose entity formed for the purpose of acquiring or developing Intellectual Property or other assets;

 

1.56                        “Security Documents” means the Initial Security Documents, and any other applicable document evidencing the security over assets of the Borrower (or any Group Company) pursuant to Clause 8.1.12;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

10

 

1.57                        “Security Interest” means any mortgage, charge (whether fixed or floating, legal or equitable), pledge, lien, hypothecation, assignment by way of security or otherwise, trust arrangement, title retention or encumbrance or enforceable right of a third party, any other type of security interest or preferential arrangement having a similar effect to any of the foregoing or in the nature of security of any kind whatsoever and in any jurisdiction;

 

1.58                        “Security Period” means the period commencing on the Drawdown Date and ending on the date on which all amounts due and payable by the Borrower under this Loan Agreement and the Security Documents or otherwise have been indefeasibly repaid in full;

 

1.59                        “Senior Management” means the members of the executive committee of the Borrower from time to time;

 

1.60                        “Soft Loans” means loans or research and development grants made to a Group Company by a governmental agency for the purpose of developing or acquiring Intellectual Property at a cost which is materially lower than the cost of a loan to such Group Company which would reasonably be expected to be made available for the proposed transaction at the relevant time by a commercial lender in the local market on arm’s length commercial terms;

 

1.61                        “Subordinated Financial Indebtedness” means Financial Indebtedness owed to shareholders or their Affiliates of the Borrower on terms as the relevant shareholder or Affiliate and the Borrower may agree, provided that such Financial Indebtedness is fully subordinated to the Borrower’s obligations under the Finance Documents such that all cash due and payable to the shareholders or their Affiliates of the Borrower shall only be repaid after the Borrower has paid all principal interest and other amount due and payable under this Loan Agreement to Lender.  (For the avoidance of doubt, the conversion of a convertible loan into equity shall not constitute a “repayment of cash” for purposes of this Clause.”);

 

1.62                        “Subsequent Period” means the period from 1 October 2014 to the end of the Security Period;

 

1.63                        “Taxes” means all present and future income, value added and other taxes, levies, imposts, deductions, charges and withholdings in the nature of taxes (other than taxes on the profits of the Lender) whatsoever together with interest thereon and penalties with respect thereto made on or in respect thereof;

 

1.64                        “Total Loan Facility” means the amount set forth above under the heading Loan Facility Terms;

 

1.65                        “Tranche” an amount drawn down pursuant to this Loan Agreement as set forth above under the heading Loan Facility Terms;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

11

 

1.66                        “Transaction Fee” has the meaning given in Clause 13.1 and is the amount set forth above in the Loan Facility Terms;

 

1.67                        “US Subsidiary” means TiGenix Inc., a company incorporated under the laws of Delaware (USA) whose registered office is at 1209 Orange Street, Wilmington, Delaware;

 

1.68                        “UK Subsidiary” means TiGenix Limited, a company incorporated in England and Wales under company number 05405647 with registered office at c/o Hackwood Secretaries Limited, One Silk Street, London United Kingdom EC2Y 8HQ;

 

1.69                        “Warrants” means the rights created by the shareholders’ resolution entitling the holders thereof to subscribe for Warrant Shares on the terms set out in the Notarial Deed including the Warrant Plan;

 

1.70                        “Warrant Certificate” shall have the meaning given to such term in the Warrant Plan;

 

1.71                        “Warrant Fee” €897,000 payable to the Lender in accordance with Clause 13.3 below;

 

1.72                        “Warrant Plan” means a warrant plan in the form set out in Schedule F to be entered into by the Borrower and Kreos Capital IV Limited; and

 

1.73                        “Warrant Shares” means, subject to the provisions of the Warrant Plan, the ordinary shares without nominal value in the Borrower to be issued upon exercise of the Warrants.

 

2                                         INTERPRETATION

 

2.1                               In this Loan Agreement (unless the context requires otherwise) any reference to:

 

2.1.1                     any law or legislative provision includes a reference to any subordinate legislation made under that law or legislative provision before the date of this Loan Agreement, to any modification, re-enactment or extension of that law or legislative provision made before that date and to any former law or legislative provision which it consolidated or re-enacted before that date;

 

2.1.2                     any gender includes a reference to other genders and the singular includes a reference to the plural and vice versa;

 

2.1.3                     any warranty or undertaking or event of default relating to Group Companies in general shall not include the US Subsidiary or UK Subsidiary unless and until they restart any business activity;

 

2.1.4                     a Clause or Schedule is to a Clause or Schedule (as the case may be) of or to this Loan Agreement;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

12

 

2.1.5                     a “person” shall be construed as including a reference to an individual, firm, company, corporation, unincorporated body of persons or any country (or state thereof or any agency thereof);

 

2.1.6                     an “amendment” includes a supplement, novation or re-enactment in writing and “amended” is to be construed accordingly;

 

2.1.7                     “assets” includes present and future properties, undertakings, revenues, rights and benefits of every description;

 

2.1.8                     an “authorisation” includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration and notarisation;

 

2.1.9                     a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

2.1.10              “control” shall bear the meaning set out in sections 450 and 451 of the Corporation Tax Act 2010 or for a Belgian entity shall bear the meaning set out in section 5 and following of the Companies Code;

 

2.1.11              “controlling interest” shall be construed accordingly;

 

2.1.12              “holding company” means a holding company within the meaning of section 1159 of the Companies Act 2006;

 

2.1.13              “subsidiary” means a subsidiary company within the meaning of section 1159 of the Companies Act 2006 for a Belgian entity shall mean a subsidiary within the meaning of section 6 of the Companies Code, other than Arcarios B.V.;

 

2.1.14              this or any specified provision of the Loan Agreement, any other document or a provision of any other document, shall be construed as a reference to this Loan Agreement, that document or a provision of that document as in force for the time being and as amended in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of this Loan Agreement or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Lender;

 

2.1.15              “other” and “otherwise” are not to be construed ejusdem generis with any foregoing words where a wider construction is possible and “including” and “in particular” are to be construed as being by way of illustration or emphasis only and are not to be construed as, nor shall they take effect as, limiting the generality of any foregoing words;

 

2.1.16              a document being in “agreed form” is a document which is previously agreed in writing by or on behalf of the Lender, if not so agreed, is in the form specified by the Lender;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

13

 

2.1.17              any reference to an Event of Default being continuing is a reference to an Event of Default that has not been waived or remedied to the satisfaction of the Lender; and

 

2.1.18              the headings in this Loan Agreement are inserted for convenience only and do not form part of this Loan Agreement and do not affect its interpretation.

 

2.2                               Belgian terms

 

2.2.1                     In this Loan Agreement, where it relates to any Belgian entity or any Security Interest governed by Belgian law, any reference to:

 

(i)                                   a “liquidator”, “receiver”, “administrator”, “compulsory manager” or other similar officer includes any curator/curateur, vereffenaar/liquidateur, voorlopig bewindvoerder/administrateur provisoire, gerechtelijk deskundige/expert judiciaire, mandataris ad hoc/mandataire ad hoc, ondernemingsbemiddelaar/médiat eur d’entreprise, as applicable, and sekwester/sequester;

 

(ii)                                a “Security Interest” includes any mortgage (hypotheek/hypothèque), pledge (pand/nantissement), any mandate to grant a mortgage, a pledge or any other real security (mandaat/mandat),  privilege (voorrecht/privilège), reservation of title arrangement (eigendomsvoorbehoud/réserve de propriété), any in rem security (zakelijke zekerheid/sûreté réelle) and any transfer by way of security (overdracht ten titel van zekerheid/transfert à titre de sûreté);

 

(iii)                             a “moratorium” or “reorganisation” includes any gerechtelijke reorganisatie/réorganisation judiciaire;

 

(iv)                            a “composition” or “arrangement” includes a minnelijk akkoord met schuldeisers/accord amiable avec des créanciers or gerechtelijke reorganisatie/réorganisation judiciaire, as applicable;

 

(v)                               “winding up” or “administration” includes any vereffening/liquidation, ontbinding/dissolution, faillissement/faillite and sluiting van een onderneming/ fermeture d’une enterprise;

 

(vi)                            a, “distress”, “execution” or “analogous process” includes any uitvoerendbeslag/saisie exécutoire and bewarend beslag/saisie conservatoire;

 

(vii)                         a “merger”, “consolidation” or “reorganisation” includes a overdracht van algemeenheid/transfert d’universalité, overdracht van bedrijfstak/transfert de branche d’activité, splitsing/scission and fusie/fusion and assimilated transaction in accordance with article 676 and 677 of the Belgian Companies Code (gelijkgestelde verrichting/opération assimilée);

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

14

 

(viii)                      “constitutional documents” means the oprichtingsakte/acte constitutif, statuten/statuts and uittreksel van de Kruispuntbank voor Ondernemingen/extrait de la Banque Carrefour des Entreprises.

 

2.3                               Spanish terms

 

2.3.1                     In this Loan Agreement, where it relates to the Guarantor, a reference to:

 

(i)                                   administration application:  includes a solicitud de concurso voluntario or solicitud de concurso necesario with the meaning attributed to them under the Spanish Insolvency Law (Ley Concursal);

 

(ii)                                winding-up includes, without limitation, disolución, liquidación, procedimiento concursal en fase de liquidación or any other similar proceedings;

 

(iii)                             a receiver, administrative receiver, administrator includes, without limitation, administrador del concurso or any other person performing the same function;

 

(iv)                            a composition with creditors includes the celebration of a convenio concursal as well as any pre-insolvency remedy and shielding mechanism for financing debt provided for under Spanish law, including but not limited to, those provided under articles 5 bis and 71.6 of Spanish insolvency Act;

 

(v)                               security Interest includes, without limitation, any prenda, hipoteca and any other garantía real, derecho de retención, crédito privilegiado, or other transaction having the same effect as each of the foregoing;

 

(vi)                            a person being unable to pay its debts includes that person being in a state of insolvencia or concurso; and

 

(vii)                         a guarantee:  includes any bond (fianza), performance bond (aval) and first demand guarantee (garantía a primer requerimiento).

 

3                                         LOAN FACILITY

 

3.1                               Lender’s Commitment

 

3.1.1                     Subject to Clause 3.5 below, the Lender agrees to make available to the Borrower the Total Loan Facility under the terms of this Loan Agreement, to be drawn down as set out in the Loan Facility Terms and in accordance with Clause 3.2.

 

3.1.2                     The Lender shall make each Tranche available up to the applicable Tranche Expiry Date, but shall not be under any commitment to advance any Tranche or any part thereof after the applicable Tranche Expiry Date or upon the earlier termination of the Loan Facility in accordance with Clause 3.4 or on any dates other than those specified in the Loan Facility Terms.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

15

 

3.1.3                     The unutilised portion (if any) of the Loan Facility in relation to each Tranche shall be cancelled after the expiry of the applicable Tranche Expiry Date , whereupon the Total Loan Facility shall be reduced accordingly.

 

3.1.4                     In granting the Loan Facility the Lender is relying on the representations and warranties contained in Clause 7.

 

3.1.5                     Each Drawdown made under the Loan Facility shall be secured by the Security Documents.

 

3.2                               Date of Advance(s) of the Loan

 

Subject to Clause 3.1.2, (and subject to the satisfaction of the relevant conditions set forth in Clause 3.5), each Tranche shall be advanced and made available to the Borrower within [***] Business Days from receipt by the Lender of an executed Drawdown Notice.  Each Drawdown Notice must be received by the Lender [***] Business Days prior to the end of the relevant drawdown period (as set out in the Loan Facility Terms).  Each Drawdown Notice shall constitute a separate and independent obligation of the Borrower incorporating the terms of this Loan Agreement.  No more than one Drawdown Notice may be served in respect of each Tranche.  Once a Drawdown Notice has been delivered to the Lender, it is irrevocable.  Each Tranche requested to be advanced pursuant to a Drawdown Notice shall be in an amount equal to the Minimum Drawdown Amount.

 

3.3                               Method of Disbursement

 

The payment by the Lender to the account specified in the Drawdown Notice shall constitute the making of the Loan (or the relevant part thereof) and the Borrower shall thereupon become indebted, as principal and direct obligor, to the Lender in an amount equal to the Loan (or the relevant part thereof).

 

3.4                               Termination or Modification of Funding Commitment

 

3.4.1                     The Lender’s commitment to advance each Tranche of the Loan in accordance with the terms of this Loan Agreement is limited in aggregate to the amount of the Total Loan Facility.

 

3.4.2                     The Lender acting in its sole discretion, may terminate its funding commitment pursuant to this Loan Agreement at any time if:

 

(i)                                   an Event of Default has occurred and is continuing or would result from the borrowing to be made pursuant to the Drawdown Notice; or

 

(ii)                                the Borrower’s representations and warranties in Clause 7.1 or those which are set out in any Security Document would not be true if repeated on each of those dates with reference to the circumstances then existing.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

16

 

3.5                               Conditions Precedent requirements relative to the Advance of the Loan

 

3.5.1                     The Lender’s obligation to provide Tranche 1 is subject to the prior satisfaction by the Borrower or the Guarantor (as applicable) of delivery of the documents stated below or compliance with the following conditions (as appropriate):

 

(i)                                   certified copy of the resolutions of the Borrower’s and the Guarantor’s board of directors authorising the transactions contemplated by this Loan Agreement and the execution and delivery to the Lender of this Loan Agreement and associated documents, including but not limited to, the Security Documents;

 

(ii)                                certified copies of the constitutional documents of the Borrower and the Guarantor;

 

(iii)                             a certificate of an authorised signatory of the Borrower and the Guarantor confirming that the borrowing of the Loan Facility in full and the guaranteeing hereto would not cause any borrowing or guaranteeing limit binding on the Borrower to be exceeded;

 

(iv)                            specimen signatures, authenticated by an authorised signatory of the Borrower and the Guarantor, of the persons authorised to execute and deliver this Loan Agreement and associated documents including but not limited to, the Security Documents, in the resolutions of the board of directors referred to in Clause 3.5 (i);

 

(v)                               the Parties having executed and delivered to the Lender the originals of (i) this Loan Agreement and (ii) the Initial Security Documents in the form as set out in Schedule B attached hereto, together with evidence that the registration forms for purposes of registering the security over Intellectual Property pursuant to the Initial Security Documents have been sent to the relevant offices (which in the case of the IP Mortgage in Schedule B.1 shall be complied with by the filing of the deed formalising the Spanish IP Mortgage with the Spanish Movable Property Registry) and that the notices have been sent to the debtors of the bank account receivables in accordance with the Initial Security Documents;

 

(vi)                            the Borrower’s compliance with Clauses 13.1 and 13.2;

 

(vii)                         the most recent management accounts of the Group;

 

(viii)                      copies of the policies of insurance required to be maintained by the Borrower under the terms of this Loan Agreement;

 

(ix)                            any other documentation in form and substance satisfactory to the Lender as the Lender may request (acting reasonably);

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

17

 

(x)                               the Charged Assets being free and clear of all Security Interests whatsoever (except Permitted Security);

 

(xi)                            the Base Case Model;

 

(xii)                         the Accounts;

 

(xiii)                      a group structure chart containing all Subsidiaries (including Arcarios B.V.) and details of all shareholdings held directly or indirectly by the Borrower,

 

each copy document delivered under this Clause 3.5 shall be certified as a true and up to date copy by an authorised signatory of the Borrower.

 

3.5.2                     The Lender’s obligation to provide Tranche 2 and Tranche 3, respectively, is subject to the provision by the Borrower or the Guarantor (as applicable) to the Lender of any other documentation in form and substance satisfactory to the Lender as the Lender may request (acting reasonably).

 

3.6                               Waiver Possibility

 

If the Lender advances all or any part of the Loan to the Borrower prior to the satisfaction of all or any of the conditions referred to in Clause 3.5 (which the Lender has no obligation to do) the Borrower shall satisfy or procure the satisfaction of such condition or conditions which have not been satisfied within [***] Business Days of the relevant Drawdown Date (or within such longer period as the Lender may agree or specify in writing), provided, that the Lender at its discretion may waive the satisfaction of any condition, in whole or in part and with or without conditions, without prejudicing the Lender’s right to require subsequent fulfilment of such conditions.

 

3.7                               Charged Assets

 

The Charged Assets charged to the Lender pursuant to the Security Documents shall form security for the monies borrowed by the Borrower.

 

3.8                               Purpose of the Loan

 

Unless the Lender shall otherwise agree in writing, the Borrower shall use the amounts drawn under the Loan Facility solely for the purpose of general working capital.  The Lender shall not be under any obligation to concern itself with the application of the Loans.

 

4                                         TERM

 

4.1                               This Loan Agreement is effective upon execution by the Lender and the Borrower and shall continue until the later of (i) the Expiry Date and (ii) the date upon which the Borrower shall have indefeasibly performed all its payment obligations hereunder.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

18

 

4.2                               If the conditions set out in Clause 3.5 have not been satisfied on or prior to the Expiry Date (except to the extent waived in writing by the Lender), the Lender shall in its sole discretion have the option to either terminate this Loan Agreement or extend the period in which such conditions must be satisfied.

 

5                                         REPAYMENT AND PREPAYMENT

 

5.1                               Advance Payment

 

5.1.1                     The Borrower shall pay to the Lender, in accordance with Clause 5.1.2 the Advance Payment in respect of each Tranche (the “Advance Payment”) which shall be held by the Lender and applied in or towards payment of the last repayment in respect of that particular Tranche.

 

5.1.2                     The Advance Payment is to be paid by the Borrower to the Lender in respect of each Tranche in four equal payments at the time when the first four interest payments are made as follows:

 

(i)                                   1st Payment - to be paid when the first interest payment in respect of the applicable Tranche is paid in accordance with the terms of this Loan Agreement;

 

(ii)                                2nd Payment - to be paid when the second interest payment in respect of the applicable Tranche is paid in accordance with the terms of this Loan Agreement;

 

(iii)                             3rd Payment - to be paid when the third interest payment in respect of the applicable Tranche is paid in accordance with the terms of this Loan Agreement; and

 

(iv)                            4th Payment - to be paid when the fourth interest payment in respect of the applicable Tranche is paid in accordance with the terms of this Loan Agreement.

 

5.2                               Repayments

 

5.2.1                     The Borrower shall pay all unpaid and accrued interest in respect of each Tranche outstanding on each Monthly Repayment Date.

 

5.2.2                     The Borrower shall repay principal in respect of each Tranche outstanding in accordance with Clause 5.2.3.

 

5.2.3                     The Borrower shall on each Monthly Repayment Date other than the First Monthly Repayment Date and in respect of each Tranche, pay a fixed monthly amount to the Lender as specified in a fully-amortising repayment schedule (fully-amortised except for the initial one-year interest-only period) issued by the Lender prior to the Drawdown Date as may be revised from time to time if the parties so agree (the “Repayment Schedule”).

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

19

 

5.2.4                     On the date of this Loan Agreement, the Lender shall provide a repayment schedule to the Borrower setting out the repayment of the Loan Agreement based on the assumption that each Tranche shall be drawn on the last day of the relevant Availability Period.  Such repayment schedule shall be attached to this Loan Agreement in Schedule D.

 

5.2.5                     All payments that the Borrower makes under this Loan Agreement shall be made in full, without any deduction, set-off or counterclaim and in immediately available cleared funds on the due date to an account which the Lender may specify to the Borrower for the purpose.

 

5.2.6                     Except for the initial one year interest-only period, the Repayment Schedule shall set out equal monthly payments comprising accrued interest and principal, so that each Tranche shall amortise fully over the Repayment Term.

 

5.2.7                     The Borrower shall repay the principal amount of each Loan outstanding together with all accrued and unpaid interest, and the End of Loan Fee on expiry of the relevant Loan Term.  All other sums due and payable by the Borrower to the Lender under this Loan Agreement and the Security Documents shall be paid when due and payable.

 

5.2.8                     Subject to clause 5.2.9, each payment received by the Lender in respect of any Tranche shall be applied as follows:

 

5.2.8.1           firstly, to discharge all accrued interest in respect of such Tranche; and

 

5.2.8.2           secondly, to reduce the outstanding principal balance of such Tranche.

 

5.2.9                     The Lender may in its discretion apply any payment received or recovered from the Borrower to discharge any due and unpaid fees, costs, expenses or indemnities under the Finance Documents.

 

5.2.10              Any amount repaid or prepaid may not be redrawn.

 

5.2.11              If the Drawdown Date is not a Monthly Repayment Date, the Borrower shall pay to the Lender on the Drawdown Date (by way of deduction by the Lender of the amount of the Tranche actually advanced to the Borrower) the Interim Repayment which shall discharge interest accrued on the Tranche for the period from the Drawdown Date to First Monthly Repayment Date.

 

5.3                               Currency of Payments

 

Repayment of the Loans and payment of all other amounts owed to the Lender will be paid in Euro (€), unless otherwise agreed by the Parties in writing.  The Borrower shall bear the cost in the event of and in respect of any conversion of a currency to Euro.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

20

 

5.4                               Prepayments

 

The Borrower shall be entitled to prepay the Loans, in whole but not in part, subject to the following conditions:

 

5.4.1                     the Borrower shall submit to the Lender an irrevocable written request to prepay the Loans, at least [***] Business Days in advance, indicating the amount to be prepaid and the date of the proposed prepayment, provided that such prepayment shall be made on the last Business Day of a calendar month;

 

5.4.2                     on the date of prepayment the Borrower shall pay the Lender an amount equal to:

 

(i)                                   the outstanding principal amount of the Loans;

 

(ii)                                all accrued and unpaid interest;

 

(iii)                             in respect of each Tranche, the aggregate of the monthly interest payments scheduled to be paid by the Borrower on each Monthly Repayment Date (as is set out in the most recent Repayment Schedule issued by the Lender) for the period from the date of prepayment to the expiry of the Loan Term, in each case discounted from the applicable Monthly Repayment Date to the date of prepayment at the rate of [***] % per annum;

 

(iv)                            the End of Loan Fee, and the Additional End of Loan fee;

 

(v)                               all unpaid fees, costs and expenses; and

 

(vi)                            all other sums payable by the Borrower to the Lender under this Loan Agreement.

 

6                                         INTEREST

 

6.1                               Interest on the principal amount of each Tranche from time to time shall accrue from day to day at a rate of 12.5% per annum (and be compounded on a monthly basis) (the “Applicable Interest Rate”), from the Drawdown Date until the repayment in full of the Loan.  Interest on the Loan and each part thereof shall be calculated and paid in the Contractual Currency.

 

6.2                               Time of payment of any sum due from the Borrower is of the essence under this Loan Agreement.  If the Borrower fails to pay any sum to the Lender after the expiry of any applicable grace period (the “Default Sum”), the Borrower shall pay to the Lender forthwith on demand default interest on such Default Sum (compounded on a monthly basis) as of the first Business Day following the expiry of the applicable grace period until the date of actual payment at a rate equal to the Applicable Interest Rate plus [***] % per annum.  If the Borrower does not pay the Default Sum within [***] Business Days after the end of the applicable grace period, the Borrower shall pay the Lender a one-off late payment charge of [***] % of such the Default Sum to compensate the Lender for additional administrative expense.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

21

 

6.3                               For the avoidance of doubt, the default payment mechanism set out in Clause 6.2 does not apply to any sums due under Clause 11.4 (Acceleration).

 

7                                         REPRESENTATIONS AND WARRANTIES

 

7.1                               The Borrower warrants and represents the following as at the date hereof:

 

7.1.1                     the Borrower is a public listed company duly organised and validly existing under the laws of Belgium, and listed on Euronext Brussels;

 

7.1.2                     the Guarantor is a private company duly organised and validly existing under the laws of Spain;

 

7.1.3                     each Group Company is duly organised as a private limited company and validly existing under the laws of its country of incorporation;

 

7.1.4                     subject to Legal Reservations, any Perfection Requirements and Permitted Security, the Borrower and the Guarantor has the corporate capacity, and has taken all corporate action and obtained all consents, including third party consents, necessary for it:

 

(i)                                   to execute this Loan Agreement and the Security Documents to which the Borrower and the Guarantor is or is to be party;

 

(ii)                                to borrow under this Loan Agreement and to make all the payments contemplated by, and to comply with all its other obligations under this Loan Agreement and the Security Documents to which the Borrower and the Guarantor is or is to be party; and

 

(iii)                             to grant the Lender first priority Security Interest in respect of the Charged Assets pursuant to the Security Documents to which the Borrower and the Guarantor is or is to be party.

 

7.1.5                     subject to the Legal Reservations and any Perfection Requirements, this Loan Agreement and the Security Documents to which the Borrower and the Guarantor is or is to be party, do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents):

 

(i)                                   constitute the Borrower’s and the Guarantor’s legal, valid and binding obligations enforceable against the Borrower and the Guarantor in accordance with their respective terms; and

 

(ii)                                create legal, valid and binding security interests enforceable in accordance with their respective terms, subject to any relevant insolvency laws affecting creditors’ rights generally;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

22

 

7.1.6                     subject to Legal Reservations, the execution and (where applicable) registration by the Borrower and the Guarantor of this Loan Agreement and each Security Document to which it is or is to be party, and the borrowing by the Borrower of the Loan and the Borrower’s and the Guarantor’s compliance with this Loan Agreement and each Security Document to which it is or is to be party, will not involve or lead to a contravention of:

 

(i)                                     any applicable law or other legal requirement; or

 

(ii)                                  the constitutional documents of the Borrower; or

 

(iii)                               any contractual or other obligation or restriction which is binding on the Borrower or any of its assets;

 

7.1.7                     subject to any Legal Reservations and any Perfection Requirements, all consents, licences, approvals and authorisations required by the Borrower and the Guarantor in connection with the entry into, performance, validity and enforceability of this Loan Agreement and the Security Documents to which it is or is to be party have been or (upon execution thereof) shall have been obtained by the Drawdown Date and are (or upon execution thereof shall be) in full force and effect during the life of this Loan Agreement;

 

7.1.8                     all financial and other information furnished by or on behalf of the Borrower and/or the Group in connection with the negotiation of this Loan Agreement and the Security Documents delivered to the Lender pursuant to this Loan Agreement or the Security Documents was true and accurate in all material respects when given, there are no other facts or matters the omission of which would have made any statement or information contained therein misleading in any material respect and all projections and statements of belief and opinion given to the Lender were made in good faith after due and careful enquiry;

 

7.1.9                     the Accounts were prepared in accordance with International Financial Reporting Standards (IFRS) and consistently applied and fairly represent (in conjunction with the notes thereto) the financial condition of the Group as at the date to which they were drawn up and the results of the Group’s operations during the financial year then ended;

 

7.1.10              since publication of the Accounts, there has been no material adverse change in the business or financial condition of the Group (unless fully disclosed by the Borrower in its capacity as a listed entity prior to the date of this Loan Agreement);

 

7.1.11              it has its centre of main interest (COMI) in Belgium and the Guarantor has its centre of main interest (COMI) in Marconi 1- Planta Baja, Parque Tecnológico Tres Cantos Madrid (Spain) for the purposes of the EU Regulations on Insolvency Proceedings 2000;

 

7.1.12              there is no action, proceeding or claim pending or, so far as the Borrower is aware or ought reasonably to be aware, threatened against any Group Company before any court or administrative agency which might have a material adverse effect on the business,

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

23

 

condition of operations of the Borrower or any subsidiary, except for litigation described or referred to in the annual report of the Borrower;

 

7.1.13              the Borrower and the Guarantor owns with good and marketable title all the Charged Assets, free from all security interests and other interests and rights of every kind other than the Permitted Security, and all the Charged Assets are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such Charged Assets are in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost;

 

7.1.14              the group structure chart to be delivered pursuant to Clause 3.5(xiii) is true and accurate;

 

7.1.15              the US Subsidiary is either dormant and has no assets or liabilities and no plans exist for it to start any business activity, or has been wound up; and

 

7.1.16              the UK Subsidiary is either in the process of being wound up or has been wound up.

 

7.2                               With the exception of the representations and warranties set out in clauses 7.1.4(iii), 7.1.10, 7.1.12, 7.1.14, 7.1.15 and 7.1.16, the representations and warranties set out in this Clause 7 shall survive the execution of this Loan Agreement and shall be deemed to be repeated on each Drawdown Date and each date of repayment with respect to the facts and circumstances then existing, as if made at such time.

 

8                                         UNDERTAKINGS

 

8.1                               The Borrower undertakes to the Lender to comply with the following provisions of this Clause 8 at all times during the Security Period, except as the Lender may otherwise permit:

 

8.1.1                     the Borrower will (and will procure that each Group Company will) obtain, effect and keep effective all Authorisations which may from time to time be required (i) in connection with the Charged Assets under any law of a Relevant Jurisdiction (i) to enable it to perform its obligations under the Finance Documents including but not limited to ensure that the Finance Documents remain valid and enforceable and to continue to own the Charged Assets) and (ii) to conduct its business where failure to do so has or is reasonably likely to have a material adverse effect on the business, condition of operations of the Borrower;

 

8.1.2                     subject to Legal Reservation, Perfection Requirements and Permitted Security, the Borrower will (and to the extent any Group Company has charged its assets pursuant to a Security Document, the Borrower shall procure that this Group Company shall) own the Charged Assets free from all Security Interests and other interests and rights of every kind, except for those created by the Security Documents;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

24

 

8.1.3                     except for a sale, assignment, transfer or disposal which constitutes a Permitted Disposal or a Permitted Transaction, the Borrower will not (and shall procure that each Group Company will not) sell, assign, transfer or otherwise dispose of the Charged Assets, any of its material assets or any share therein and shall give immediate notice to the Lender of any judicial process or encumbrance affecting the Charged Assets;

 

8.1.4                     the Borrower shall promptly obtain, comply with and do all that is necessary to maintain in full force and effect, and, if requested by the Lender, supply copies to the Lender of, any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document;

 

8.1.5                     the Borrower shall not (and shall ensure that no Group Company will) incur or allow to remain outstanding any Financial Indebtedness other than any Permitted Financial Indebtedness;

 

8.1.6                     the Borrower shall not (and shall ensure that no other Group Company will) create or permit to subsist any Security Interest over any of its assets;

 

8.1.7                     the Borrower shall not (and shall ensure that no other Group Company will):

 

(i)                                   sell, transfer or otherwise dispose of any of its assets on terms whereby they are leased to or intended to be re-acquired by any Group Company; or

 

(ii)                                sell, transfer or otherwise dispose of any of its receivables on recourse terms;

 

(iii)                             enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

 

(iv)                            enter into any other preferential arrangement having a similar effect) in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

 

8.1.8                     Clauses 8.1.6 and 8.1.7 do not apply to:

 

(i)                                   any Permitted Disposal;

 

(ii)                                any Permitted Transaction;

 

(iii)                             any Permitted Financial Indebtedness; and

 

(iv)                            any Permitted Security;

 

8.1.9                    the Borrower shall procure that within twelve weeks after the first Drawdown Date:

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

25

 

(i)                                   it shall convene a shareholders’ meeting in order to grant the Warrants to Kreos Capital IV Limited;

 

(ii)                                the resolutions of the shareholders of the Borrower shall be filed with the clerk of the relevant commercial court in accordance with article 556 of the Belgian Companies Code;

 

8.1.10              the Borrower shall pay or discharge all fees associated with registering of any Security Interest granted in connection with the Loans;

 

8.1.11              the Borrower shall at the request of the Lender from time to time execute and deliver such further documents creating Security Interests in favour of the Lender over such assets and in such form as the Lender may reasonably require in its discretion from time to time to:

 

(i)                                   secure all monies, obligations and liabilities of the Borrower and/or any Group Company to the Lender;

 

(ii)                                facilitate the realisation of the Charged Assets; or

 

(iii)                             exercise the powers conferred on the Lender or a receiver appointed under any Security Document, from time to time,

 

provided that the Lender shall not be able to require any Group Company to create security over Excluded Assets;

 

8.1.12              [A] Except as provided under (B), (C) and (D) below, no member of the Group shall:

 

(i)                                   guarantee or otherwise be liable for debt or other obligations of a Ring Fenced Company; or

 

(ii)                                transfer any assets (including cash) to the Ring Fenced Company or enter into any contract with the Ring Fenced Company.

 

[B] A member of the Group may however transfer assets to the Ring Fenced Company or enter into a contract with the Ring Fenced Company:

 

(a)                               to incorporate the Ring Fenced Company;

 

(b)                               to allow the Ring Fenced Company to run its day-to-day business operations;

 

(c)                                in connection with the provision of management services by the Group Company to the Ring Fenced Company;

 

(d)                               to support the Ring Fenced Company to develop, manufacture, commercialise or market its Intellectual Property; provided that the aggregate value of all services

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

26

 

or assets provided by the Group to all Ring-fenced Companies and which are not reimbursed to the Group shall not exceed EUR [***] per annum and provided that the Group does not incorporate more than two Ring Fenced Company during the life of the Loan Agreement.

 

[C] A member of the Group may transfer assets to the Ring Fenced Company or enter into a contract with the Ring Fenced Company provided such transfer or contract constitutes a Permitted Disposal, Permitted Financial Indebtedness, Permitted Transaction or Permitted Security.

 

[D] A Ring Fenced Company may transfer some or all of its assets to a Group Company for nil consideration and without assuming any liabilities.

 

9                                         INFORMATION UNDERTAKINGS

 

9.1                               At all times during the Initial Period, (i) the Borrower undertakes to the Lender to comply with the following provisions of this Clause 9, except as the Lender may otherwise permit and (ii) the Lender shall have the following rights:

 

9.1.1                     the Borrower will provide to the Lender all documents, confirmations and evidence required by the Lender to satisfy its “know your customer” requirements or similar identification checks in order to meet its obligations from time to time under applicable money laundering, or similar, laws and regulations;

 

9.1.2                     the Borrower will provide the Lender with its annual audited consolidated financial statements and the annual audited financial statements for each of the Borrower and the Guarantor at the time and in the format they are made public;

 

9.1.3                     the Borrower will provide the Lender with the half-year condensed consolidated financial statements of the Group at the time and in the format they are made public;

 

9.1.4                     the Borrower will provide the Lender with key financial information such as available cash and burn rate regarding the first and the third quarter of each financial year, at the time and in the format this information is made public;

 

(the items listed under Clauses 9.1.1 to 9.1.4 (included) being together, the On-going Information)

 

9.1.5                     the Borrower will provide the Lender with the half-year management accounts of the Borrower and the Guarantor and, to the extent available, the quarterly management accounts of the Borrower and the Guarantor as fairly presenting the data reflected, within two (2) months of the end of each calendar quarter;

 

9.1.6                    the Borrower shall, as soon as possible and in any event within [***] Business Days, upon it becoming aware of them, provide details of any material litigation commenced or threatened in writing against the Group and/or by the Group which must not be disclosed

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

27

 

to the market by the Borrower in its capacity as a listed company, together with any litigation commenced or threatened in writing against the Group and/or by the Group regarding Intellectual Property which is material to the Group, in each case provided that such litigation is reasonably likely to have a material adverse effect on the business, conditions or operations of the Group, and provided that such litigation had not yet been disclosed to the Lender pursuant to this Clause 9;

 

9.1.7                     the Borrower will provide to the Lender copies of all announcements which are made public by the Borrower concerning dividends, annual or interim financial positions and affairs of the Borrower at the time they are announced;

 

9.1.8                     the Borrower will no later than [***] Business Days from board approval, provide a budget for the Group showing a projected profit and loss account, and a cash flow forecast for the forthcoming financial year;

 

9.1.9                     the Borrower will provide the Lender with copies of the financial information [***]  any information in relation to (i) any material Licencing including potential Licencing, and (ii) interim and final results for the clinical trials to the extent such results substantially adversely deviate from the Borrower’s expectations in relation to the business of the Group as soon as possible and in any event no later than [***] ;

 

9.1.10              In case the Lender [***] , the Borrower will provide the Lender with copies of all notices, consents and other material [***]  as soon as possible and in any event no later than [***] ;

 

9.1.11              the Borrower will provide the Lender with copies of all [***]  within [***] ;

 

9.1.12              the Borrower will provide the Lender with details of any new Group Company incorporated within [***] Business Days from incorporation;

 

9.1.13              the Borrower will notify the Lender as soon as it becomes aware of:

 

(i)                                   the occurrence of an Event of Default; or

 

(ii)                                any matter which indicates that an Event of Default has occurred, may have occurred or is likely to occur,

 

and will thereafter keep the Lender fully up to date with all developments;

 

9.1.14              the Borrower will provide the Lender with details of any change to the Senior Management of the Borrower and to the board of directors of the Borrower at the time of the announcement of such change (if it is announceable) or otherwise within [***] Business Days following such change;

 

(the items listed under Clause 9.1.5 to 9.1.14 (inclusive) being together, the “Information”)

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

28

 

9.1.15              additionally, the Borrower will grant the Lender the right to have a representative to meet with the Senior Management either in person or by means of a telephone call [***]  to review and discuss the operating performance and financial condition of the Group, the status of and information regarding the Charged Assets and such other information concerning any Group Company and its affairs as the Lender may reasonably request (the “Monthly Meeting”); and

 

9.1.16              on the occurrence of an event of default pursuant to Clause 11.1.1, the Lender shall be entitled [***]  for as long as the event of default continues.  [***] .

 

9.2                               At all times during the Subsequent Period, the Borrower undertakes to the Lender to provide the On-going Information to the Lender.

 

9.3                               At all times during the Subsequent Period, the Borrower undertakes to the Lender to provide any or all the Information on a stand alone basis as requested by the Lender from time to time.

 

10                                  STANDSTILL

 

10.1                        Until [***]  months after the end of the Initial Period the Lender shall not whether directly or indirectly, through intermediaries, persons or entities acting in concert, or otherwise, purchase or sell, offer to purchase or sell, agree to purchase or sell, or otherwise acquire or transfer, offer to acquire or transfer, or in any way assist any other person in acquiring or transferring, directly or indirectly, any shares, securities or other financial instruments of the Borrower, or advise, assist or encourage or enter into any discussions, negotiations, agreements or arrangements with any other persons in connection with the foregoing (the Standstill).

 

10.2                        During the Subsequent Period, as of the end of the [***]  month following the expiry of the Initial Period and in the event the Lender does not request any Information, the Standstill shall cease to apply.  Should the Lender instead request any or all the Information, it will be bound by the Standstill for a [***]  months period commencing on the date the Information has been provided by the Borrower (the “Clearance Period”), it being understood that should at any time all the Information which has been provided during the last [***]  months have been made public, the Standstill shall cease to apply before the expiry of the Clearance Period as of the moment all Information has been made public.

 

10.3                        The Lender acknowledges that a breach of this Clause 10 may also constitute a violation of insider dealing and market abuse regulations applicable in Belgium or abroad and give rise to administrative and/or criminal sanctions.  The Lender shall bear full responsibility for compliance with such regulations by itself, its Affiliates and its officers, directors, employees, agents and advisors (and those of its Affiliates) and bear the full costs for any breach thereof.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

29

 

11                                  EVENTS OF DEFAULT

 

11.1                        An Event of Default occurs if:

 

11.1.1              any Group Company fails to pay when due and payable or (if so payable) on demand any sum payable under this Loan Agreement or the Security Documents or under any document relating to the Security Documents unless such non-payment is due to a technical or administrative error and payment is made within [***] Business Days of its due date; or

 

11.1.2              any other breach (other than a breach described under Clause 11.1.1) by any Group Company (as relevant) occurs of any provision of this Loan Agreement or any Security Document or the Borrower or any Group Company does not comply with, perform or observe any other obligation accepted or undertaking given by it to the Lender, unless the failure to comply is capable of remedy and is remedied within a period of [***] Business Days in respect of any breach of Clauses 8.1.1, 8.1.2, 8.1.3, 8.1.4, , 8.1.5, 8.1.6, 8.1.7, 8.1.8, 8.1.10 and Clause 9 of this Loan Agreement and any similar undertakings under the Security Documents, or a period of [***] Business Days in respect of any other breach, each time as of the earlier of (a) the Lender giving notice to the relevant Group Company of such breach, or (b) the Borrower becoming aware of the failure by itself or the Group Company to comply with its obligations; or

 

11.1.3              any representation, warranty or statement made by, or by an officer of, any Group Company in this Loan Agreement or the Security Documents or in the Drawdown Notice or any other notice or document relating to this Loan Agreement or any other Security Document is incorrect, untrue or misleading in any material respect when it is made or deemed repeated; or

 

11.1.4              Financial Indebtedness of any Group Company in an amount in excess of [***] (or [***]after the aggregate amount advanced by the Lender to the Borrower under this Loan Agreement is equal to €10,000,000) in aggregate is not paid when due, or any Security Interest over any of the assets of any Group Company is lawfully enforced; or

 

11.1.5              any order shall be made by any competent court, a petition presented or any resolution shall be passed by any Group Company for the appointment of a liquidator, administrator or receiver or similar official of, or for the winding up of, any Group Company or a moratorium is imposed or declared over any or all of the assets and business of any Group Company; or

 

11.1.6              an encumbrancer takes possession of or a receiver, liquidator, supervisor, compulsory manager, trustee, administrator or similar official is appointed over the whole or any material part of, the assets of any Group Company or a distress, execution or other process is levied or enforced upon or sued out against the whole or a material part of the assets of any Group Company; or

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

30

 

11.1.7              an administration application is presented or made for the making of an administration order or a notice of intention to appoint an administrator is issued by any Group Company or its directors under applicable insolvency laws or a notice of appointment of an administrator is filed by any person with the court; or

 

11.1.8              any final judgment made against any Group Company is not paid, stayed or discharged within [***] days or if later, the due date under the judgement; or

 

11.1.9              any Group Company shall stop payment or shall be unable to, or shall admit inability to, pay its debts as they fall due, or shall be adjudicated or found bankrupt or insolvent, or shall enter into any composition or other arrangement with its creditors generally; or

 

11.1.10                   any event shall occur which under the law of any jurisdiction to which any Group Company is subject has an effect equivalent or similar to any of the events referred to in Clause 11.1.5, 11.1.6 or 11.1.7; or

 

11.1.11                   any Group Company ceases, threatens to cease, or suspends carrying on its business or a part of its business unless it is a Permitted Disposal or a Permitted Transaction; or

 

11.1.12                   the Borrower (i) ceases to be listed on the regulated market of Euronext Brussels; or (ii) ceases to control the Group Companies it controlled on the date of this Loan Agreement, except, in either case, as a result of a disposal which is a Permitted Disposal or a Permitted Transaction; or

 

11.1.13                   there is a change of control in any Group Company other than in relation to a Permitted Disposal or a Permitted Transaction; for purposes of this Clause 11.1.13, a “change of control” shall mean that any person, or persons acting in concert, acquires through one or more connected transactions in aggregate 30% or more of the issued voting share capital of any Group Company, provided that the Lender may agree, by written notice to the Borrower, that a change of control shall not be deemed an Event of Default, but that nevertheless the consequences set forth in Clause 11.2.1 and 11.2.2 shall apply, and in such event the Loans, all accrued interest and all other amounts accrued or owing under this Loan Agreement and the Security Documents shall be due and payable simultaneously with the closing of the change of control transaction; or

 

11.1.14                   it becomes unlawful or impossible (i) for the Borrower and/or each Group Company (as relevant) to discharge any liability under this Loan Agreement or to comply with any other obligation which is material under this Loan Agreement or the Security Documents, or (ii) for the Lender to exercise or enforce any right under, or to enforce any Security Interest created by, this Loan Agreement or the Security Documents; or

 

11.1.15                   any material provision of this Loan Agreement or the Security Documents proves to have been or becomes invalid or unenforceable, or a Security Interest created by the Security Documents proves to have been or becomes invalid or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

31

 

Interest or any other third party claim or interest, provided however that if the Borrower and/or any Group Company proposes replacement security which the Lender accepts, and such replacement security is constituted in a manner acceptable to the Lender within such period of time as the Lender may require, such event shall cease to constitute an Event of Default; or

 

11.1.16                   the security constituted by the Security Documents is in any way materially imperilled or in jeopardy (including by way of depreciation in value beyond a normal depreciation) provided however that if the Borrower and/or any Group Company proposes replacement security which the Lender accepts, and such replacement security is constituted in a manner acceptable to the Lender within such period of time as the Lender may reasonably require, such event shall cease to constitute an Event of Default; or

 

11.1.17                   the Borrower fails to provide a copy of the resolutions of the Borrower’s shareholders for the purpose of article 556 of the Companies Code, together with evidence that an extract of such resolutions has been duly filed with the clerk of the relevant commercial court in accordance with article 556 of the Companies Code not later than 12 (twelve) weeks of the date of the first Drawdown (unless the failure to comply is capable of remedy and is remedied within a period of [***] Business Days); or

 

11.1.18                   any other event (whether related or not) occurs (including, without limitation, a material adverse change, from the position applicable as at the date of this Loan Agreement) in the business affairs, operations, assets or condition (financial or otherwise) of the Group), the effect of which is, , to materially imperil, delay or prevent the due fulfilment by the Borrower and each Group Company of any of its payment obligations in this Loan Agreement or the Security Documents.

 

11.2                        Lender’s Rights

 

On or at any time following the occurrence of any Event of Default the Lender may:

 

11.2.1              serve on the Borrower a notice stating that all obligations of the Lender to the Borrower under this Loan Agreement including (without limitation) the obligation to advance the Loans (or any part thereof) are terminated; and/or

 

11.2.2              serve on the Borrower a notice stating that the Loans, all accrued interest and all other amounts accrued or owing under this Loan Agreement and the Security Documents are immediately due and payable; and/or

 

11.2.3             declare the Security Documents to be enforceable (but take no action to enforce such Security Documents unless and until the Loans shall be accelerated pursuant to Clause 11.4); and/or

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

32

 

11.2.4              take any other action which, as a result of the Event of Default or any notice served under Clauses 11.2.1 or 11.2.2 above, the Lender is entitled to take under the Security Documents or any applicable law.

 

11.3                        End of Lender’s Obligations

 

On the service of a notice under Clause 11.2.1 and/or Clause 11.2.2, all the obligations of the Lender to the Borrower under this Loan Agreement shall terminate.

 

11.4                        Acceleration

 

On the service of a notice under Clause 11.2.2, the following sums shall become immediately due and payable:

 

11.4.1              the outstanding principal amount of the Loans;

 

11.4.2              all accrued and unpaid interest for each Tranche drawn down;

 

11.4.3              in respect of interest payments payable as from the Event of Default in respect of each Tranche, the aggregate of the monthly interest payments scheduled to be paid by the Borrower on each Monthly Repayment Date (as is set out in the most recent Repayment Schedule issued by the Lender) for the period from the date of prepayment to the expiry of the relevant Loan Term, in each case discounted from the applicable Monthly Repayment Date to the date of prepayment at the rate of [***] % per annum for the first two years of the relevant Loan Term, [***] % per annum for the third year of the relevant Loan Term and [***] % per annum for the fourth year of the relevant Loan Term;

 

11.4.4              the End of Loan Fee;

 

11.4.5              all unpaid fees, costs and expenses; and

 

11.4.6              all other sums payable by the Borrower to the Lender under this Loan Agreement and the Security Documents.

 

11.5                        Waiver of Event of Default

 

The Lender, at its sole and absolute discretion, may waive any Event of Default hereunder, prior to or after the event or events giving rise thereto, provided that such waiver may be effected only by written notice provided by the Lender to the Borrower to that effect (and subject further to Clause 21.3 below); it being understood and acknowledged, that if and so long as no notice of waiver of an Event of Default was so provided, such Event of Default shall be deemed as having occurred and in effect for all purposes hereunder.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

33

 

12                                  GUARANTEE AND INDEMNITY

 

12.1.1              In consideration of the Lender advancing the Loans to any Obligor as the Lender in its absolute discretion sees fit, the Guarantor guarantees to the Lender, whenever an Obligor does not pay any of the Guaranteed Obligations when due, to pay on demand the Guaranteed Obligations.

 

12.1.2              The Guarantor as principal obligor and as a separate and independent obligation and liability from its obligations and liabilities under clause 12.1.1 agrees to indemnify and keep indemnified the Lender in full and on demand from and against all and any losses, costs, claims, liabilities, damages, demands and expenses suffered or incurred by the Lender arising out of, or in connection with, any failure of an Obligor to perform or discharge any of its obligations or liabilities in respect of the Guaranteed Obligations.

 

12.2                        Lender’s Protections

 

12.2.1              This guarantee is and shall at all times be a continuing security and shall cover the ultimate balance from time to time owing to the Lender by each Obligor in respect of the Guaranteed Obligations.

 

12.2.2              The liability of the Guarantor under this guarantee shall not be reduced, discharged or otherwise adversely affected by:

 

(i)                                   any intermediate payment, settlement of account or discharge in whole or in part of the Guaranteed Obligations;

 

(ii)                                any variation, extension, discharge, compromise, dealing with, exchange or renewal of any right or remedy which the Lender may now or after the date of this guarantee have from or against any of an Obligor and any other person in connection with the Guaranteed Obligations;

 

(iii)                             any act or omission by the Lender or any other person in taking up, perfecting or enforcing any Security Interest, indemnity, or guarantee from or against an Obligor or any other person;

 

(iv)                            any termination, amendment, variation, novation, replacement or supplement of or to any of the Guaranteed Obligations including without limitation any change in the purpose of, any increase in or extension of the Guaranteed Obligations and any addition of new Guaranteed Obligations;

 

(v)                               any grant of time, indulgence, waiver or concession to an Obligor or any other person;

 

(vi)                            any insolvency, bankruptcy, liquidation, administration, winding up, incapacity, limitation, disability, the discharge by operation of law, or any change in the constitution, name or style of an Obligor or any other person;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

34

 

(vii)                         any invalidity,  illegality, unenforceability, irregularity or frustration of any actual or purported obligation of, or Security Interest held from, an Obligor or any other person in connection with the Guaranteed Obligations;

 

(viii)                      any claim or enforcement of payment from an Obligor or any other person; or

 

(ix)                            any act or omission which would not have discharged or affected the liability of the Guarantor had it been a principal debtor instead of a guarantor, or indemnifier or by anything done or omitted by any person which but for this provision might operate to exonerate or discharge the Guarantor or otherwise reduce or extinguish its liability under this guarantee.

 

12.2.3              The Lender shall not be obliged before taking steps to enforce any of its rights and remedies under this Guarantee:

 

(i)                                   to take any action or obtain judgment in any court against an Obligor or any other person;

 

(ii)                                to make or file any claim in a bankruptcy, liquidation, administration or insolvency of an Obligor or any other person; or

 

(iii)                             to make demand, enforce or seek to enforce any claim, right or remedy against an Obligor or any other person.

 

12.2.4              The Guarantor warrants to the Lender that it has not taken or received, and shall not take, exercise or receive the benefit of any Rights from or against an Obligor, its liquidator, an administrator, co-guarantor or any other person in connection with any liability of, or payment by, the Guarantor under this guarantee but:

 

(i)                                   if any of the Rights is taken, exercised or received by a Guarantor, those Rights and all monies at any time received or held in respect of those Rights shall be held by the Guarantor on trust for the Lender for application in or towards the discharge of the Guaranteed Obligations under this guarantee; and

 

(ii)                                on demand by the Lender, the Guarantor shall promptly transfer, assign or pay to the Lender all other Rights and all monies from time to time held on trust by that Guarantor under this clause 12.2.4.

 

12.2.5              This guarantee is in addition to and shall not affect nor be affected by or merge with any other judgment, Security Interest, right or remedy obtained or held by the Lender from time to time for the discharge and performance of an Obligor of the Guaranteed Obligations.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

35

 

12.3                        Accounts

 

12.3.1              The Lender may place to the credit of a suspense account any monies received under or in connection with this guarantee in order to preserve the rights of the Lender to prove for the full amount of all its claims against an Obligor or any other person in respect of the Guaranteed Obligations.

 

12.3.2              The Lender may at any time and from time to time apply all or any monies held in any suspense account in or towards satisfaction of any of the monies, obligations and liabilities the subject of this guarantee as the Lender, in its absolute discretion, may conclusively determine.

 

12.3.3              If this guarantee ceases for any reason whatsoever to be continuing, the Lender may open a new account or accounts in the name of an Obligor.

 

12.3.4              If the Lender does not open a new account or accounts pursuant to Clause 12.3.3 it shall nevertheless be treated as if it had done so at the time that this guarantee ceased to be continuing whether by termination, calling in or otherwise, in relation to an Obligor.

 

12.3.5              As from the time of opening or deemed opening of a new account or accounts, all payments made to the Lender by or on behalf of an Obligor shall be credited or be treated as having been credited to the new account or accounts and shall not operate to reduce the amount for which this guarantee is available at that time nor shall the liability of the Guarantor under this guarantee in any manner be reduced or affected by any subsequent transactions, receipts or payments.

 

12.4                        Interest

 

12.4.1              The Guarantor shall pay interest to the Lender after as well as before judgment at the annual rate which is [***] % above the base rate of Barclays Bank plc on all sums demanded under this guarantee from the date of demand by the Lender or, if earlier, the date on which the relevant damages, losses, costs or expenses arose in respect of which the demand has been made, until, but excluding, the date of actual payment.

 

12.4.2              Interest under Clause 12.4.1 shall accrue on a day-to-day basis calculated by the Lender on such terms as the Lender may from time to time determine and shall be compounded on the last Business Day of each month.

 

12.4.3              The Lender shall not be entitled to recover any amount in respect of interest under both this guarantee and any arrangements entered into between an Obligor and the Lender in respect of any failure by an Obligor to make any payment in respect of the Guaranteed Obligations.

 

12.5                        Discharge Conditional

 

12.5.1              Any release, discharge or settlement between the Guarantor and the Lender in relation to this guarantee shall be conditional on no right, Security Interest, disposition or payment

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

36

 

to the Lender by an Obligor or any other person in respect of the Guaranteed Obligations being avoided, set aside or ordered to be refunded pursuant to any enactment or law relating to breach of duty by any person, bankruptcy, liquidation, administration, protection from creditors generally or insolvency or for any other reason.

 

12.5.2              If any right, Security Interest, disposition or payment referred to in clause 12.5.1 is avoided, set aside or ordered to be refunded, the Lender shall be entitled subsequently to enforce this guarantee against the Guarantor as if such release, discharge or settlement had not occurred and any such right, Security, disposition or payment had not been given or made.

 

12.6                        Evidence of Amounts and Certificates

 

Any certificate, determination or notification by the Lender as to a rate or any amount payable under this guarantee is (in the absence of manifest error) conclusive evidence of the matter to which it relates and shall contain reasonable details of the basis of determination.

 

13                                  FEES, EXPENSES AND TAXES

 

13.1                        Transaction Fee

 

The Parties hereby agree and acknowledge that the Transaction Fee shall be paid by the Borrower to the Lender upon the execution of this Loan Agreement.

 

13.2                        Documentary Costs

 

Each of the Borrower and the Guarantor (as applicable) shall promptly pay to the Lender on the Lender’s demand, the reasonable legal expenses incurred by the Lender in connection with:

 

13.2.1              the negotiation, execution, preparation and perfection of this Loan Agreement and the Security Documents and the transactions contemplated hereby and thereby up to an aggregate total of [***]plus applicable VAT and disbursements (save that the [***]cap shall not apply to notary’s fees); and

 

13.2.2              any amendment or supplement to this Loan Agreement or the Security Documents, or any proposal for such an amendment to be made;

 

13.2.3              any consent or waiver by the Lender concerned under or in connection with this Loan Agreement or the Security Documents or any request for such a consent or waiver; and

 

13.2.4              any step taken by the Lender with a view to the protection, exercise or enforcement including any registration of any right or Security Interest created by this Loan Agreement or the Security Documents or for any similar purpose.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

37

 

13.3                        Warrant Fee

 

In the event the shareholders’ of the Borrower should not approve the issue of the Warrant in favour of Kreos Capital IV (Expert Fund) Limited within 12 weeks from the date of the first Drawdown, the Lender shall be entitled to the Warrant Fee to be paid in three equal tranches as follows:

 

13.3.1              €299,000 to be paid on the first day following the first anniversary of the first Drawdown;

 

13.3.2              €299,000 to be paid on the first day following the second anniversary of the first Drawdown; and

 

13.3.3              €299,000 to be paid on the first day following the third anniversary of the first Drawdown.

 

13.4                        Certain taxes and duties

 

The Borrower shall promptly pay any documentary, stamp or other equivalent tax or duty or notary fee payable on or by reference to this Loan Agreement or the Security Documents or any share warrant or local law equivalent, and shall, on the Lender’s demand, fully indemnify the Lender against any costs, losses, liabilities and expenses resulting from any failure or delay by the Borrower to pay such a tax or fee.

 

13.5                        Liability for Taxes

 

13.5.1              The Borrower shall make all payments to be made by it without any Tax deduction, unless a Tax deduction is required by law.  The Borrower shall promptly upon becoming aware that it must make a Tax deduction (or that there is any change in the rate or the basis of a Tax deduction) notify the Lender.

 

13.5.2              If a Tax deduction is required by law to be made by the Borrower, the amount of the payment due from the Borrower shall be increased to an amount which (after making any Tax deduction) leaves an amount equal to the payment which would have been due if no Tax deduction had been required.

 

13.5.3              If the Borrower is required to make a Tax deduction, the Borrower shall make that Tax deduction and any payment required in connection with that Tax deduction within the time allowed and in the minimum amount required by law.

 

13.5.4              Within [***] days of making either a Tax deduction or any payment required in connection with that Tax deduction, the Borrower shall deliver to the Lender evidence reasonably satisfactory to it that the Tax deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

38

 

13.6                        Illegality and Increased Costs

 

13.6.1              If it is or becomes contrary to any law or regulation for the Lender to make available the Loan Facility or to maintain its obligations to do so or fund the Loans, the Lender shall promptly notify the Borrower whereupon (a) the Lender’s obligations to make the Loan Facility available shall be terminated and (b) the Borrower shall be obliged to prepay the Loans either (i) forthwith or (ii) on a future specified date on or before the latest date permitted by the relevant law or regulation.

 

13.6.2              If the result of any change in (or in the interpretation, administration or application of), or to the generally accepted interpretation or application of, or the introduction of, any law or regulation is to subject the Lender to Taxes or change the basis of the payment of Taxes by the Lender with respect to any payment under this Loan Agreement (other than Taxes on the overall net income, profits or gains of the Lender), then (i) the Lender shall notify the Borrower in writing of such event promptly upon its becoming aware of the same; and (ii) the Borrower shall on demand, made at any time whether or not the Loans have been repaid, pay to the Lender the amount of the increased costs which the Lender has suffered as a result, (provided that the Borrower shall not be obliged to pay any sum relating to withholding taxes arising if the Lender assigns the benefit of this Loan Agreement to a person in a jurisdiction causing the levy of withholding tax and no relief therefrom exists).

 

14                                  INDEMNITIES

 

14.1                        General Indemnity

 

Without derogating from Clause 12 above, the Borrower shall indemnify the Lender fully on its demand in respect of all expenses, liabilities and losses which are suffered or incurred by the Lender, as a result of or in connection with:

 

(i)                                   any Tranche not being borrowed on the date specified in the Drawdown Notice for any reason other than a default by the Lender;

 

(ii)                                any failure (for whatever reason) by the Borrower to make payment of any amount due under this Loan Agreement or the Security Documents on the due date or, if so payable, on demand; or

 

(iii)                             the occurrence and/or continuance of an Event of Default and/or the acceleration of repayment of the Loans under Clause 9.4, and in respect of any Taxes for which the Lender is liable or held liable in connection with any amount paid or payable to the Lender (whether for its own account or otherwise) under this Loan Agreement or the Security Documents.

 

14.2                        Third Party Claims Indemnity

 

The Borrower shall indemnify the Lender fully on its demand in respect of claims, demands, proceedings, liabilities, taxes, losses and expenses of every kind, including

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

39

 

without limitation legal fees and expenses (“liability items”) which may be made or brought against, or incurred by, the Lender, in any country, in relation to:

 

(i)                                   any action lawfully taken, or omitted or neglected to be taken, under or in connection with this Loan Agreement or the Security Documents by the Lender or by any receiver appointed under the Security Documents after the occurrence of any Event of Default; and

 

(ii)                                any breach or inaccuracy of any of the representations and/or warranties contained in Clause 7 hereof or in the Security Documents or any breach of any covenant, commitment or agreement by the Borrower contained in Clause 8 hereof or elsewhere in this Loan Agreement or in the Security Documents.

 

15                                  RISK AND INSURANCE

 

15.1                        All risk of loss, theft and damage of and to the Charged Assets from any cause whatsoever shall be the risk of the Borrower, and no such event shall relieve the Borrower of any obligation under a Drawdown Notice.

 

15.2                        The Borrower shall:

 

15.2.1              bear all risk of loss of or damage to the Charged Assets whether insured against or not;

 

15.2.2              maintain adequate risk protection through insurances on and in relation to its business and assets to the extent reasonably required on the basis of good business practice taking into account, inter alia, its (and any Group Company’s) financial position and nature of operations.

 

16                                  END OF LOAN FEE and ADDITIONAL END OF LOAN FEE

 

The Borrower shall be required to pay the Lender (i) the End of Loan Fee at the time of the last payment on each Tranche, and (ii) the Additional End of Loan Fee at the time of the last payment under the Total Loan Facility.  Upon payment of these fees, subject to the terms of this Loan Agreement and the Security Documents (including the making of all payments hereunder and thereunder), the Lender shall take appropriate action to release the Security over the Charged Assets.  Failure to pay the End of Loan Fee or the Additional End of Loan Fee shall constitute a breach of this Loan Agreement.

 

17                                  POWER OF ATTORNEY

 

The Borrower by way of security hereby irrevocably appoints the Lender to be its attorney in its name and to act on its behalf and to execute and complete any deeds or documents which the Lender may require for perfecting future Security over its assets pursuant to Clause 8.1.11. in case the Borrower does not take the necessary steps within a reasonable period of time following the request of the Lender to grant Security over future assets pursuant to Clause 8.1.11.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

40

 

18                                  NOTICES

 

18.1                        Any notice, demand or other communication (“Notice”) to be given by any Party under, or in connection with, this Loan Agreement shall be in writing and signed by or on behalf of the Party giving it.  Any Notice shall be served by sending it by fax to the number set out in Clause 18.2, or delivering it by hand to the address set out in Clause 18.2 and in each case marked for the attention of the relevant Party set out in Clause 18.2 (or as otherwise notified from time to time in accordance with the provisions of this Clause 18).  Any Notice so served by fax or hand shall be deemed to have been duly given or made as follows:

 

18.1.1              if sent by fax, at the time of transmission; or

 

18.1.2              in the case of delivery by hand, when delivered,

 

provided that in each case where delivery by fax or by hand occurs after 5pm on a Business Day (local time in the place of receipt) or on a day which is not a Business Day, service shall be deemed to occur at 9am on the next following Business Day (local time in the place of receipt).

 

References to time in the Clause are to local time in the country of the addressee.

 

18.2                        The addresses and fax number of the parties for the purpose of Clause 18 are as follows:

 

18.2.1              Lender
 Address:                         Kreos Capital

25-28 Old Burlington Street 
 London W1S 3AN

Fax:                                               +44 (0)207 409 1034
 For the attention of:  [***]

 

with a copy to:

 

Address:                         Speechly Bircham LLP
 6 New Street Square
 London EC4A 3LX

Fax:                                               +44 (0)207 427 6600
 For the attention of:  Chris Putt

 

18.2.2              Borrower 
 Address:                         Tigenix NV,

Researchpark Haasrode 1724 
 Romeinse straat 12, box 2 
 3001 Leuven, Belgium

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

41

 

Fax:                                               +32 (0)1639 79 70
 For the attention of:  Claudia D’Augusta

 

18.3                        A Party may notify the other Party to this Loan Agreement of a change to its name, relevant addressee, address or fax number for the purposes of this Clause 18, provided that such notice shall only be effective on:

 

18.3.1              the date specified in the notification as the date on which the change is to take place; or

 

18.3.2              if no date is specified or the date specified is less than five Business Days after the date on which notice is given, the date following five Business Days after notice of any change has been given.

 

18.4                        In proving service it shall be sufficient to prove that the envelope containing such notice was properly addressed and delivered to the address shown thereon or that the facsimile transmission was made and a facsimile confirmation report was received, as the case may be.

 

19                                  SPANISH NOTARIAL DOCUMENT AND SUMMARY ENFORCEMENT PROCEEDINGS

 

19.1                        Notarial document

 

19.1.1              The Borrower agrees that, at its cost, this Loan Agreement, any amendment to it (including transfers or accessions) may, at the request of the Lender, be incorporated to a Spanish notarial document (“escritura pública” or “póliza”, at the choice of the Lender).

 

19.1.2              The Guarantor acknowledges that the escritura pública or póliza will expressly state that a Finance Party is entitled to claim all amounts outstanding under the Finance Documents following any non-payment of principal by the Guarantor.  This does not prejudice the exercise of any other right or remedy of the Lender.

 

19.2                        Summary Spanish Enforcement Proceedings

 

19.2.1              For the purpose of Article 571 et seq. of the Civil Procedural Law (Law 1/2000 of 7 January) (Ley de Enjuiciamiento Civil):

 

(i)                                   The amount due and payable under the Loan Agreement that may be claimed in any executive proceedings will be contained in a certificate supplied by the Lender and will be based on the accounts maintained by such Lender in connection with this Loan Agreement;

 

(ii)                                The parties expressly agree that such balance shall be considered as an acknowledgement of debt and may be claimed pursuant to the same provisions of such law;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

42

 

(iii)                             The determination of the debt to be claimed though the executive proceeding shall be effected by the Lender by means of the appropriate certificate evidencing the balance shown in the account or account of the Borrower; and

 

(iv)                            The Lender may (at the cost of the Borrower or the Guarantor) have the certificate notarised.

 

19.2.2              A Finance Party may start executive proceedings by presenting to any relevant court:

 

(i)                                     an original notarial copy of this Loan Agreement; and

 

(ii)                                  a notarial document (acta notarial) incorporating the certificate of that Finance Party referred to in subparagraph (a)(i) above.

 

20                                  CONFIDENTIALITY

 

20.1                        Confidential Information

 

The Lender agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 20.2, and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

20.2                        Disclosure of Confidential Information

 

20.2.1              The Lender may disclose Confidential Information:

 

(i)                                   to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as the Lender shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (i) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

(ii)                                to any person:

 

(a)                               to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under the Finance Documents in accordance with this Loan Agreement or which succeeds (or which may potentially succeed) it as Lender and, in each case, to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

43

 

(b)                               with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or the Borrower and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(c)                                appointed by the Lender or by a person to whom paragraph (ii)(a) or (b) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;

 

(d)                               to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(e)                                to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(f)                                 to whom or for whose benefit that Lender charges, assigns or otherwise creates a Security Interest (or may do so) pursuant to this Loan Agreement;

 

(g)                                with the consent of the Borrower,

 

in each case, such Confidential Information as that Lender shall consider appropriate if:

 

(iii)                             in relation to paragraphs (ii)(a), (ii)(b) and (ii)(c) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Agreement except that there shall be no requirement for a Confidentiality Agreement if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

(iv)                            in relation to paragraphs (ii)(d), (ii)(e) and (ii)() above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information; and

 

(v)                               to any person appointed by that Lender or by a person to whom paragraph (ii)(a) or (ii)(b) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

44

 

service provider to provide any of the services referred to in this paragraph (v) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of Confidentiality Agreement agreed between the Borrower and the Lender.

 

20.3                        Entire agreement on Confidential Information

 

Without prejudice to clause 10.3, this Clause 20 constitutes the entire agreement between the Parties in relation to the obligations of the Lender under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

20.4                        Notification of disclosure

 

20.4.1              The Lender agrees (to the extent permitted by law and regulation) to inform the Borrower:

 

(i)                                   of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (ii)(d) of Clause 18.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(ii)                                upon becoming aware that Confidential Information has been disclosed in breach of this Clause.

 

20.5                        Term

 

20.5.1              The obligations in this Clause 20 will end on the earlier of:

 

(i)                                   the date on which all amounts payable by the Borrower under or in connection with the Finance Documents have been paid in full and the Total Loan Facility has been cancelled or otherwise cease to be available; and

 

(ii)                                the date on which the Lender otherwise ceases to be a Lender.

 

21                                  GENERAL

 

21.1                        All agreements, covenants, representations and warranties of the Borrower contained in this Loan Agreement or in the Drawdown Notices or other documents delivered pursuant hereto or in connection herewith and continuing, shall survive and remain binding the execution and delivery, and the expiration, cancellation or other termination of this Loan Agreement and/or the Drawdown Notice.

 

21.2                       If the Borrower shall fail to perform any of its obligations under any Drawdown Notice duly and promptly, the Lender may, at its option and at any time, perform the same

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

45

 

without waiving any default on the part of the Borrower, or any of the Lender’s rights.  The Borrower shall reimburse the Lender, within [***] Business Days after notice thereof is given to the Borrower, for all expenses and liabilities incurred by the Lender in the performance of the Borrower’s obligations.

 

21.3                        No failure to exercise, nor any delay in exercising, on the part of the Lender, any right or remedy hereunder shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Loan Agreement are cumulative and not exclusive of any rights or remedies provided by law or in equity.  Waiver by the Lender of any default shall not constitute waiver of any other default.

 

21.4                        If, during the term of the Loan Term Agreement, the Borrower wishes to obtain additional debt or loan financing, it shall give the Lender the opportunity, in parallel with any other potential lenders, to make a financing proposal.  [***] , the Borrower shall be allowed to accept the financing from the other funding source provided such financing is Permitted Financial Indebtedness under the Loan Agreement or, if it is not Permitted Financial Indebtedness, provided the Borrower has obtained the prior written consent of the Lender.

 

In addition, [***].

 

21.5                        The Borrower may not assign or transfer its rights, benefits and obligations under this Loan Agreement.  The Lender shall have the right, in its sole discretion, to assign, sell, pledge, grant a security interest in or otherwise encumber its rights under this Loan Agreement and/or one or more Drawdown Notices to (i) an Affiliate of the Lender; or (ii) to a fund which is a Related Fund of the existing Lender or (iii) with the Borrower’s prior written consent not to be unreasonably withheld or delayed, to a bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (an “Assignee”), or to any person acting as an agent for any Assignee in entering into any Drawdown Notice.  The Borrower hereby irrevocably consents to any such assignment, sale, pledge, grant of a security interest or any other disposal to an Assignee.  The Borrower agrees that if it receives notice from the Lender that it is to make payments under this Loan Agreement and/or any Drawdown Notice to such Assignee rather than to the Lender, or that any of its other obligations under the relevant Drawdown Notice are to be owed to the named Assignee, the Borrower shall comply with any such notice.  Subject to the foregoing, this Loan Agreement and each Drawdown Notice inures to the benefit of, and is binding upon, the successors and assigns of the Lender.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

46

 

21.6                        The Borrower consents to the disclosure of information by the Lender to its Affiliates, Related Funds and to other parties to the Security Documents and potential assignees.

 

21.7                        Clause titles are solely for convenience and are not an aid in the interpretation of this Loan Agreement.

 

21.8                        If, at any time, any provision herein is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

21.9                        A person who is not a party to this Loan Agreement has no right under the Contract (Rights of Third Parties) Act 1999 to enforce or enjoy the benefits of this Loan Agreement.

 

21.10                 This Loan Agreement, together with the Security Documents, constitutes the entire agreement between the parties with respect to the subject matter hereof.  This Loan Agreement may not be modified except in writing executed by the Lender and the Borrower.  No supplier or agent of the Lender is authorised to bind the Lender or to waive or modify any term of this Loan Agreement.

 

21.11                 This Loan Agreement may be executed in counterparts (including facsimile copies), each of which shall be an original, but all such counterparts shall together constitute one and the same instrument.

 

21.12                 This Loan Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.  The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Loan Agreement (including a dispute relating to the existence, validity or termination of this Loan Agreement or any non-contractual obligation arising out of or in connection with this Loan Agreement (a “Dispute”).  The parties to this Loan Agreement agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party to this Loan Agreement will argue to the contrary.  This Clause 21.12 is for the benefit of the Lender only.  As a result, the Lender shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Lender may take concurrent proceedings in any number of jurisdictions.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

47

 

SCHEDULE A

 

FORM OF DRAWDOWN NOTICE

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

48

 

SCHEDULE B

 

INITIAL SECURITY DOCUMENTS

 

1. Spanish IP Mortgage

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

49

 

2. Spanish Bank Account Pledge

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

50

 

3. Spanish Share Pledge

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

51

 

4. Belgian IP Pledge

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

52

 

5. Belgian Bank Account and Receivables Pledge

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

53

 

6. US Assignment for Security — Patents and Trademarks

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

54

 

SCHEDULE C

 

EXISTING FINANCIAL INDEBTEDNESS

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

55

 

SCHEDULE D

 

EXAMPLE OF REPAYMENT SCHEDULE

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

56

 

SCHEDULE E

 

ADDITIONAL END OF LOAN FEE

 

[***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

57

 

SCHEDULE F

 

WARRANT PLAN

 

Incorporated by reference to Exhibit 10.7

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

58

 

Duly executed by the parties on the date first set out on the first page of this Loan Agreement.

 

	
BORROWER
    	
 
    
	
 
    	
 
    
	
Signed
    	
/s/   Eduardo Bravo
    	
 
    
	
 
    	
 
    
	
For and   on behalf of
    	
 
    
	
TIGENIX   NV
    	
 
    
	
Authorised   signatory
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
Eduardo   Bravo
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
CEO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTOR
    	
 
    
	
 
    	
 
    
	
Signed
    	
/s/   Claudia D’Augusta
    	
 
    
	
 
    	
 
    
	
For and   on behalf of
    	
 
    
	
TIGENIX   S.A.U.
    	
 
    
	
Authorised   signatory
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
Claudia   D’Augusta
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
CEO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
LENDER
    	
 
    
	
 
    	
 
    
	
Signed
    	
/s/   Mario Petitbom
    	
 
    
	
 
    	
 
    
	
For and   on behalf of
    	
 
    
	
KREOS   CAPITAL IV (UK) LIMITED
    	
 
    
	
Authorised   signatory
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
Mario   Petitbom
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

59Exhibit 10.3

 

Share Purchase Agreement

 

	
Between:
    	
(1)
    	
TiGenix NV, a company   organised and existing under the laws of Belgium, having its registered   office at Romeinse Straat 12, box 2, 3001 Heverlee (Leuven), Belgium,   registered with the Register of Legal Entities (Leuven) under number   0471.340.123,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
represented for the purposes of this Agreement by   Mr. Eduardo Bravo, CEO and attorney-in-fact,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
hereinafter referred to as the “Seller”;
    
	
 
    	
 
    	
 
    
	
And:
    	
(2)
    	
PharmaCell B.V., a company organised and existing under the laws of the Netherlands,   having its registered office at Oxfordlaan 70, 6229EV Maastricht, the   Netherlands, registered with the Commercial Register (KvK) under number   14083599,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
represented for the purposes of this Agreement by   Mr. A.A.A.M. Vos, CEO and attorney-in-fact,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
hereinafter referred to as the “Purchaser”.
    

 

The parties referred to above under (1) and (2) are individually also referred to as a “Party” and jointly as the “Parties”.

 

Whereas:

 

(A)                            The Seller owns 18,000 shares in TiGenix B.V., a company organised and existing under the laws of the Netherlands, having its registered office at Urmonderbaan 20b, 6167RD Geleen, the Netherlands, registered with the Commercial Register (KvK) under number 14121664 (hereinafter referred to as the “Target Company”).

 

(B)                            The Seller’s shareholding in the Target Company represents 100% of the share capital of the Target Company.

 

(C)                            On [***], the Purchaser entered into a confidentiality agreement with the Seller (the “Confidentiality Agreement”).

 

(D)                            The Purchaser and its representatives have been provided with and had access to extensive information on the Target Company and its business and have performed an extensive analysis and due diligence investigation (including but not limited to access to the Data Room (as defined below), site visits and Q&A) of the Target Company and its business covering, among other things, financial, real estate, environmental, regulatory, commercial, contract, technical, IT, HR, pensions, tax and legal matters. All written  information and documents provided to the Purchaser have been included in the Data Room. Attached as Schedule (D) is a copy of the Data Room index setting out all such written information and documents which were made available to the Purchaser. For the 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

1

 

purposes of its analysis and due diligence the Purchaser has had the opportunity to submit further questions to and receive answers from the Seller and the management of the Seller and the Target Company in any matter it deemed proper or necessary in view of entering into the Transaction (as defined below).

 

(E)                             On [***], the Parties signed a term sheet in relation to the Transaction (as defined below) (the “Term Sheet”).

 

(F)                              The Seller wishes to sell to the Purchaser and the Purchaser wishes to purchase from the Seller all 18,000 shares in the Target Company, upon the terms and subject to the conditions set forth in this Agreement.

 

It is agreed as follows:

 

1                                      Definitions and Interpretation

 

1.1                            Definitions

 

1.1.1                   For the purposes of this Agreement and in addition to the terms defined elsewhere in this Agreement (including in the Recitals and the Schedules), the following terms shall have the meanings specified or referred to in this Clause 1.1.1:

 

“Adjustment Documents” has the meaning as set forth in Clause 3.2.6.

 

“Affiliated Company” or “Affiliate” means with reference to a person or entity, any entity that such person or entity directly or indirectly controls, is controlled by or is under common control with such person and if such person is an individual, any member of the immediate family (including parents, spouse and children) of such individual. For the purposes of this definition, a person or entity shall be deemed to “control” a company if such person or entity holds (directly or indirectly) the majority of the voting shares attached to the issued share capital of said company or otherwise has the right to appoint or dismiss the majority of the directors of said company.

 

“Agreement” means this Share Purchase Agreement.

 

“Annual Accounts” means each of the Annual Accounts 2012 and, if available on or prior to the Closing Date, the Annual Accounts 2013.

 

“Annual Accounts 2012” means the annual accounts of the Target Company for the financial year ending 31 December 2012.

 

“Annual Accounts 2013” means the annual accounts of the Target Company for the financial year ending 31 December 2013.

 

“Authority” means the Ministry of Public Health, Welfare and Sports (Ministerie van Volksgezondheid, Welzijn en Sport), acting through the “CIBG”.

 

“Bank Guarantee Date” means the date 6 months prior to the third (3rd) anniversary of the Closing Date.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

2

 

“Breach of Representations” means, in respect of any Representations, that the facts stated therein are not true or accurate.

 

“Business Day” means any day of the week except a Saturday, Sunday or any public holiday in Belgium or the Netherlands.

 

“CAPEX Program” means the capital expenditure (if any) related to the Target Company’s facility in Sittard-Geleen as may be required for obtaining the GMP License Extension.

 

“Claim” means any claim of the Purchaser under Clause 11.

 

“Closing” means the transfer of ownership of the Shares and completion of the Seller’s Closing Obligations and the Purchaser’s Closing Obligations pursuant to Clauses 5.2 and 5.3, respectively.

 

“Closing Accounts” has the meaning set forth in Clause 3.2.4.

 

“Closing Date” means the date on which the Closing shall take place pursuant to Clause 5.1.

 

“Closing Date CAPEX Amount” means the amount spent by the Target Company as per the Closing Date on the CAPEX Program, as finally determined in accordance with Clause 3.2, whereby an amount relating to the CAPEX Program shall be deemed spent if such amount has been paid or if such amount has been booked or provided for in the Closing Accounts.

 

“Closing Date Intra-group Indebtedness Amount” means the amount calculated in accordance with Schedule 1.1.1 (i) on the basis of the relevant G/L Code items as set forth in the Closing Accounts, as finally determined in accordance with Clause 3.2.

 

“Closing Date Working Capital Amount” means the amount calculated in accordance with Schedule 1.1.1 (ii) on the basis of the relevant G/L Code items as set forth in the Closing Accounts, as finally determined in accordance with Clause 3.2.

 

“Closing Obligations” means the Seller’s Closing Obligations and the Purchaser’s Closing Obligations as set forth in Clauses 5.2 and 5.3 respectively.

 

“CMO Contract” means the ChondroCelect manufacturing and supply agreement to be entered into between the Parties and the Target Company on the Closing Date, substantially in the form of the draft attached as Schedule 1.1.1(iii).

 

“Confidentiality Agreement” has the meaning set forth in recital (C).

 

“Debt/WC Statements” has the meaning as set forth in Clause 3.2.6.

 

“Deposit Agreement” has the meaning set forth in Clause 6.2.2.

 

“Data Room” means the electronic data room established by the Seller. The index of the Data Room as per the date of this Agreement is attached as Schedule (D). On the Closing Date, each Party shall receive a copy of a DVD containing a copy 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

3

 

of the documents available in the Data Room (including any documents added in accordance with Clauses 7.9 or 10.3.2). A copy of this DVD will be deposited with a Belgian notary for a term of six years in accordance with the Deposit Agreement.

 

“Dutch Notary” means Mr Bartholomeus Johannes Kuck, civil law notary in Amsterdam, the Netherlands, or his deputy or successor, of Linklaters LLP in Amsterdam, Seller’s lawyers.

 

“Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, security interest, title retention or any other agreement or arrangement the effect of which is the creation of security or any other encumbrance of any kind, or any agreement or arrangement to create any of the same, in each case other than those provided for by applicable law.

 

“First Tranche” has the meaning set forth in Clause 3.3.1.

 

“GMP License Extension” has the meaning set forth in Clause 4.1.

 

“Indemnities” has the meaning set forth in Clause 11.5.1.

 

“Independent Expert” has the meaning set forth in Clause 3.2.12.

 

“Loss” means (subject to Clause 11.1) any damage, loss, undertaking, liability, penalty or payment incurred, borne or made by the relevant legal entity or individual.

 

“Notice of Objection” has the meaning set forth in Clause 3.2.8.

 

“Parties” means the Seller and the Purchaser (each of them being referred to individually as a “Party”).

 

“Price Adjustment Amount” has the meaning set forth in Clause 3.2.1.

 

“Purchase Price” means the aggregate price for the Shares as defined in Clause 3.1.

 

“Purchaser’s Closing Obligations” means the obligations to be fulfilled by the Purchaser on the Closing Date, as set out in Clause 5.3.

 

“Purchaser’s Representations” means the representations made by the Purchaser to the Seller pursuant to Schedule 9.

 

“Representations” means the representations made by the Seller to the Purchaser pursuant to Schedule 10.

 

“Second Tranche” has the meaning set forth in Clause 3.3.2.

 

“Seller’s Closing Obligations” means the obligations to be fulfilled by the Seller on the Closing Date, as set out in Clause 5.2.

 

“Shares” means the 18,000 shares in the Target Company, numbered from 1 to 18,000, representing 100% of the issued share capital of the Target Company, which are being sold by the Seller to the Purchaser under this Agreement.

 

“Target Company” means TiGenix B.V., as further defined in recital (A).

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

4

 

“Taxes” means (and “Taxation” refers to) all taxes, however denominated, including any interest, penalties, additions to tax or additional taxes that may become payable in respect thereof, which taxes shall include, without limiting the generality of the foregoing, all income taxes, registration taxes, real estate and personal property taxes, VAT, “parafiscal” charges, customs duties, withholding taxes, environmental taxes, local taxes and social security contributions (i.e. employees’ and national insurance contributions paid on behalf of any employee or former employee) .

 

“Tax Return Period” means any taxable period, including any accounting period and any period in respect of which a Tax return is required to be submitted to any Tax Authority in connection with the assessment of a company’s liability to Tax.

 

“Term Sheet” has the meaning set forth in recital (E).

 

“Third Party Claim” has the meaning set out in Clause 13.2.1.

 

“TiGenix Group” means the Seller and its subsidiaries (excluding the Target Company as from the Closing).

 

“Transaction” means (i) the sale of the Shares by the Seller to the Purchaser and the corresponding purchase of the Shares by the Purchaser from the Seller, subject to the terms and conditions of this Agreement and (ii) the entry into by the Parties and the Target Company of the CMO Agreement.

 

“Transfer Deed” has the meaning set out in Clause 5.2.2;

 

“VAT” means, within the European Union, such Taxation as may be levied in accordance with (but subject to derogations from) Directive 2006/112/EC and, outside the European Union, any Taxation levied by reference to added value or sales.

 

“Verification Period” has the meaning set forth in Clause 3.2.8.

 

1.1.2                   For all purposes under this Agreement, except for the purpose of Clauses 1.1.3, a legal entity (including any of the Parties as applicable) shall be deemed to have knowledge of a particular fact if any of the directors, executive officers or other executives of the legal entity has knowledge of that fact.

 

1.1.3                   Whenever a Representation is made “to the Seller’s knowledge” or is qualified by any similar expression, it is agreed that such a Representation is made by the Seller only on the basis of the facts of which the persons whose names are set out in Schedule 1.1.3 have actual knowledge at the date of this Agreement.

 

1.2                            Interpretation

 

1.2.1                   The titles and headings included in this Agreement are for convenience only and shall not be taken into account in the interpretation of the provisions of this Agreement.

 

1.2.2                   The Schedules to this Agreement form an integral part hereof and any reference to this Agreement includes the Schedules and vice versa.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

5

 

1.2.3                   The original version of this Agreement has been drafted in English. Should this Agreement be translated into Dutch or any other language, the English version shall prevail among the Parties to the fullest extent permitted by the laws of the Netherlands, provided, however, that whenever Dutch translations of certain words or expressions are contained in the original English version of this Agreement, such translations shall be conclusive in determining the Dutch legal concept(s) to which the Parties intended to refer.

 

1.2.4                   Unless a contrary indication appears, references to the “Netherlands” or “Dutch” refer to the European part of the Netherlands only. References to any Dutch legal term shall, in respect of any jurisdiction other than the Netherlands, be construed as references to the term or concept which most nearly corresponds to it in that jurisdiction.

 

1.2.5                   When using the expressions “shall use its best efforts” or “shall use its best endeavours” (or any similar expression or any derivation thereof) in this Agreement, the Parties intend to refer to the Dutch legal concept of “inspanningsverplichting”.

 

1.2.6                   The words “herein”, “hereof”, “hereunder”, “hereby”, “hereto”, “herewith” and words of similar import shall refer to this Agreement as a whole and not to any particular clause, paragraph or other subdivision.

 

1.2.7                   The words “include”, “includes”, “including” and all forms and derivations thereof shall mean including but not limited to.

 

1.2.8                   Words denoting the singular shall include the plural and vice versa, unless otherwise defined in this Agreement. Words denoting one gender shall include the other gender.

 

1.2.9                   All periods of time set out in this Agreement shall be calculated from midnight to midnight. They shall start on the day following the day on which the event triggering the relevant period of time has occurred. The expiration date shall be included in the period of time. If the expiration date is a Saturday, a Sunday or a public holiday in Belgium or the Netherlands, the expiration date shall be postponed until the next Business Day. Unless otherwise provided herein, all periods of time shall be calculated in calendar days. All periods of time consisting of a number of months (or years) shall be calculated from the day in the month (or year) when the triggering event has occurred until the eve of the same day in the following month(s) (or year(s)).

 

1.2.10            Unless otherwise provided herein, all references to a fixed time of a day shall mean Central European Time (CET).

 

2                                      Sale and Purchase

 

2.1                            The Shares

 

2.1.1                   Subject to the terms and conditions of this Agreement (including in particular the conditions precedent set out in Clause 4.1), the Seller hereby sells the Shares to 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

6

 

the Purchaser and the Purchaser hereby purchases all of the Shares from the Seller.

 

2.1.2                   The ownership of the Shares shall be transferred to the Purchaser on the Closing Date against payment of the First Tranche in accordance with Clause 3.3.1.

 

2.1.3                   On the Closing Date, the Purchaser shall acquire the Shares free and clear of all pledges, security interests, usufructs, options, or any other third party rights or encumbrances of any kind.

 

2.1.4                   The sale contemplated hereunder is indivisible and shall be valid only if it applies to all of the Shares. No partial enforcement of this Agreement shall be allowed.

 

2.1.5                   The Shares shall be sold together with all rights attaching thereto, including the right to the full amount of all dividends which might be allocated to the Shares in respect of the current financial year (which started on 1 January 2013).

 

3                                      Purchase Price

 

3.1                            Aggregate Amount of the Purchase Price

 

3.1.1                   The aggregate amount of the purchase price for the Shares shall be four million and two hundred fifty thousand euro (EUR 4,250,000) (the “Purchase Price”), payable by the Purchaser in two tranches in accordance with Clause 3.3.

 

3.1.2                   The Purchase Price shall be adjusted pursuant to the price adjustment procedure set out in Clause 3.2.

 

3.2                            Post-Closing Purchase Price Adjustment

 

3.2.1                   Without prejudice to Clause 3.2.2, the Purchase Price shall be adjusted after the Closing Date on a euro-per-euro basis by an amount that shall be the result of applying the following formula (the “Price Adjustment Amount”):

 

(i)                                the amount, if any, by which the Closing Date Intra-group Indebtedness falls short of EUR 0.00;

 

minus

 

(ii)                             the amount, if any, by which the Closing Date Intra-group Indebtedness exceeds EUR 0.00;

 

plus

 

(iii)                          the amount, if any, by which the Closing Date Working Capital exceeds EUR 0.00;

 

minus

 

(iv)                         the amount, if any, by which the Closing Date Working Capital falls short of EUR 0.00;

 

plus

 

(v)                              the Closing Date CAPEX Amount, if any.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

7

 

3.2.2                   The Price Adjustment Amount shall be determined by the Parties or, as the case may be, by the Independent Expert in accordance with the procedure set out in this Clause 3.2, provided that if the Price Adjustment Amount is a positive number it shall for the purpose of this Agreement never exceed (and, as the case may be, be limited to) the sum of [***] euro (EUR [***]) plus the Closing Date CAPEX Amount.

 

3.2.3                   If the Price Adjustment Amount is a positive number, the Purchase Price shall be adjusted upwards by such amount. If the Price Adjustment Amount is a negative number, the Purchase Price shall be adjusted downwards by such amount.

 

3.2.4                   Closing Accounts. The Seller shall prepare and deliver prior to, on or within twenty (20) Business Days after the Closing Date, to the Purchaser draft accounts of the Target Company, with the Closing Date as reporting date, drawn up in accordance with Clause 3.2.5 (the “Closing Accounts”).

 

3.2.5                   The Closing Accounts shall be prepared in the following order of priority (1st priority appearing first):

 

(i)                                in a manner consistent with the Annual Accounts;

 

(ii)                             by applying the valuation rules (including the rules and practices on the level of provisions) of the Target Company attached as Schedule 3.2.5(ii); and

 

(iii)                          by applying Dutch generally accepted accounting principles and Dutch laws and regulations, applied on a basis consistent with the Annual Accounts.

 

For the sake of clarity the Parties stipulate that, in case of a conflict between any of the requirements set out above in this Clause 3.2.5, the requirement with a higher priority shall take precedence over a requirement with a lower priority (according to the aforementioned ranking).

 

The Closing Accounts shall be prepared in the format set forth in Schedule 3.2.5.

 

3.2.6                   Debt/WC Statements. Concurrently with establishing the Closing Accounts, the Seller shall prepare statements derived from the Closing Accounts showing the Closing Date Intra-group Indebtedness, the Closing Date Working Capital Amount and the Closing Date CAPEX Amount (these statements herein collectively referred to as the “Debt/WC Statements”). Together with the Closing Accounts, the Seller shall deliver to the Purchaser the Debt/WC Statements and a calculation of the Price Adjustment Amount (all three elements together referred to as the “Adjustment Documents”).

 

3.2.7                   Co-operation and access to information. As of the Closing, the Purchaser shall instruct and cause the management of the Target Company to fully co-operate with the Seller and its advisors and to provide reasonable access during normal business hours to the employees of the Target Company and to the accounts and other financial information of the Target Company as the Seller may reasonably request to enable it to prepare the Closing Accounts and the Debt/WC Statements and to determine the Price Adjustment Amount, and to verify, assess and comment 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

8

 

on any objections made by the Purchaser in the framework of the procedures set out in the following Clauses.

 

3.2.8                   Verification by the Purchaser. The Purchaser shall within twenty (20) Business Days after the delivery to the Purchaser of the Adjustment Documents (the “Verification Period”), cause such verification as the Purchaser shall deem useful to be performed with respect to the Adjustment Documents, at the Purchaser sole expense. On the basis of that review, the Purchaser may during a five (5) Business Days period following the Verification Period propose to the Seller in writing (the “Notice of Objection”) such adjustments, if any, as shall in the Purchaser judgement be required to determine the Closing Accounts, Debt/WC Statements and the Price Adjustment Amount, if any, in accordance with the rules set out in this Clause 3.2. The Notice of Objection shall contain a statement of the basis of the Purchaser’s objection.

 

3.2.9                   If within five (5) Business Days following the Verification Period the Purchaser has not given the Seller a Notice of Objection, then the Purchaser shall be deemed to agree with the Price Adjustment Amount as shown in the Adjustment Documents and that amount shall constitute the final and binding Price Adjustment Amount for the purposes of this Clause 3.2.

 

3.2.10            If the Purchaser has given the Seller a Notice of Objection in accordance with Clause 3.2.8, the Parties shall attempt to resolve the disputed issues and to agree on the Closing Accounts and the Debt/WC Statements (and the calculation of the corresponding Price Adjustment Amount, if any), in which case the Price Adjustment Amount, if any, so agreed between the Parties shall constitute the final and binding Price Adjustment Amount for the purposes of this Clause 3.2.

 

3.2.11            Without prejudice to Clause 12.6, the absence of any Notice of Objection or, as the case may be, the agreement between the Seller and the Purchaser on any objections in accordance with Clause 3.2.10 shall not constitute a waiver of any condition based on the accuracy of any Representation.

 

3.2.12            Any objections upon which the Seller and the Purchaser do not reach an agreement in accordance with Clause 3.2.10 above within fifteen (15) Business Days from delivery of the notification of the Notice of Objection, shall be decided upon by a written opinion of [***] acting as independent expert (such person or, as the case may be, the expert appointed as its replacement, is referred to hereinafter as the “Independent Expert”). The disputed issues may be submitted by either the Seller or the Purchaser, for resolution by written notice to the Independent Expert and the Purchaser or the Seller, respectively.

 

If the Independent Expert should (for whatever reason) not be available for rendering such opinion, the Seller and the Purchaser shall agree upon another expert within ten (10) Business Days after they have become aware of the Independent Expert’s unavailability. The other expert shall (a) be an auditor from a major international audit firm, (b) declare in writing that he and his team members have not worked on matters for or against any of the Parties (or their Affiliates) or the Target Company in a way that would prohibit him to perform his expert mandate 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

9

 

in an independent manner and in compliance with applicable professional rules and that he and his firm have put in place adequate information barriers or other measures to protect the Parties’ and the Target Company’s confidential information that he and his team members may receive during their intervention, and (c) be sufficiently available to render his opinion on short term. If the Seller and the Purchaser do not agree on another expert within this time period, then such other expert shall be appointed by the President of the Institute of Chartered Accountants in the Netherlands (Nederlandse Beroepsorganisatie van Accountants) upon application of either the Seller or the Purchaser.

 

The rules, policies, standards, methods and other criteria agreed to be applicable in accordance with Clause 3.2.5 shall also apply to the Independent Expert’s opinion. The Independent Expert shall only determine issues that are disputed between the Purchaser and the Seller.

 

Each of the Parties shall (and the Purchaser shall procure that the Target Company shall) fully cooperate with the Independent Expert and shall provide the Independent Expert reasonable access to their respective books, records, working papers and other documents and data as the Independent Expert may reasonably request for the performance of his assignment.

 

The Independent Expert shall give the Seller and the Purchaser a reasonable opportunity to make written or oral statements in respect of the objections of the Purchaser or, as the case may be, the Seller and shall send copies of such statements to the Purchaser and the Seller, respectively. The Independent Expert shall give the Seller and the Purchaser the opportunity to be present and/or send representatives when oral statements in respect of objections are made.

 

Any balance sheet assessments or valuations determined in the Independent Expert’s opinion within the scope of the Independent Expert’s mandate shall be incorporated into the Closing Accounts. The Independent Expert shall determine the amount of the Closing Date Intra-group Indebtedness; the Closing Date Working Capital and the Closing Date CAPEX Amount (and the corresponding Price Adjustment Amount, if any), based on the disputed issues and the undisputed parts of the Closing Accounts and Debt/WC Statements, and shall notify the Purchaser and the Seller of its decision (it being understood that such notice shall include a statement of the basis of the Independent Expert’s decision) within twenty (20) Business Days after the date on which the disputed issues have first been submitted to the Independent Expert (or, as the case may be, within twenty (20) Business Days after the date of appointment of the replacement Independent Expert). The Closing Accounts, the Debt/WC Statements and the amounts of the  Closing Date Intra-group Indebtedness; the Closing Date Working Capital; and the Closing Date CAPEX Amount (and the corresponding Price Adjustment Amount, if any), in each case as determined by the Independent Expert, shall in the absence of fraud or manifest error be final and binding upon the Parties (in accordance with section 7:900 et seq. of the Dutch Civil Code) and shall constitute the Closing Date Intra-group Indebtedness; the Closing Date Working Capital and the Closing Date CAPEX Amount for the purposes of this Clause 3.2. The notice of the Independent

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

10

 

Expert shall also state the Price Adjustment Amount, if any, which shall be equally final and binding upon the Parties.

 

The Parties shall each bear fifty percent (50%) of the Independent Expert’s fees and expenses and shall each bear their own costs and the costs of their advisers and counsel.

 

3.2.13            The Price Adjustment Amount shall bear interest at the rate equal to two percent (2%) per year, calculated on the basis of a year of 365 days, commencing as from (and including) the Closing Date up to (and excluding) the date of payment.

 

3.3                            Payment of the Purchase Price

 

3.3.1                   Subject to the terms of this Agreement (including in particular the conditions precedent set out in Clause 4.1), the Purchaser shall pay on the Closing Date an amount equal to three million and five hundred thousand euro (EUR 3,500,000) (the “First Tranche”) to the Seller by wire transfer of immediately available funds to the following third party account (“derdengeldenrekening”) of the Dutch Notary:

 

·                                       Bank: [***]

 

·                                       Account name:[***]

 

·                                       IBAN: [***]

 

·                                       BIC: [***]

 

3.3.2                   Without prejudice to Clause 3.4.2, the Purchaser shall pay on the first Business Day following the date of the third (3rd) anniversary of the Closing Date the remainder of the Purchase Price, i.e. an amount equal to seven hundred fifty thousand euro (EUR 750,000) (the “Second Tranche”) to the Seller by wire transfer of immediately available funds to the following bank account or any other bank account notified by the Seller to the Purchaser for such purposes:

 

·                                       Bank: [***]

 

·                                       IBAN: [***]

 

·                                       BIC: [***]

 

3.3.3                   Payment of the Price Adjustment Amount

 

(i)                                  If the Purchase Price is adjusted upwards, the Purchaser shall pay the Price Adjustment Amount, together with any interest thereon, to the Seller on the fifth (5th) Business Day after the final determination of the Purchase Price Amount in accordance with Clause 3.2, by wire transfer of  immediately available funds to the Seller’s bank account referred to in Clause 3.3.2 or any other bank account notified by the Seller to the Purchaser for such purposes.

 

(ii)                               If the Purchase Price is adjusted downwards, the Seller shall pay the Price Adjustment Amount, together with any interest thereon, to the Purchaser on the fifth (5th) Business Day after the final determination of the Purchase 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

11

 

Price Amount in accordance with Clause 3.2, by wire transfer of immediately available funds to the following bank account or any other account notified by the Purchaser to the Seller for such purposes:

 

·                                Bank: [***]

 

·                                IBAN: [***]

 

·                                BIC: [***]

 

3.4                            Bank guarantee

 

3.4.1                   The Purchaser shall cause a top tier Dutch or Belgian credit institution to issue prior to or on the Bank Guarantee Date an irrevocable and unconditional bank guarantee in an amount of seven hundred fifty thousand euro (EUR 750,000), which is on first demand as of the third (3rd) anniversary of the Closing Date and expires three (3) months after the third anniversary of the Closing Date to the benefit of the Seller, securing the Purchaser’s obligation to pay the Second Tranche of the Purchase Price in accordance with Clause 3.3.2 of this Agreement.

 

3.4.2                   In case the Purchaser fails to obtain the bank guarantee by the Bank Guarantee Date in accordance with Clause 3.4.1, the Second Tranche of the Purchase Price shall on the Bank Guarantee Date automatically become due and payable by the Purchaser to the Seller by wire transfer of immediately available funds to the Seller’s bank account referred to in Clause 3.3.2 or any other bank account notified by the Seller to the Purchaser for such purposes.

 

4                                      Conditions Precedent

 

4.1                            General Principles

 

The obligations of the Purchaser to purchase the Shares from the Seller and to pay the Purchase Price as set out in Clauses 2 and 3, and the obligation of the Seller to transfer the Shares to the Purchaser as set out in Clause 2 are subject to the satisfaction of the following conditions precedent:

 

4.1.1                   the Target Company shall have obtained from the IGZ a written confirmation essentially stating that the Target Company’s manufacturing facility in Geleen is authorized to produce other cell therapy products under the Target Company’s current EU GMP license provided that GMP controls are instigated to satisfy the IGZ (the “GMP License Extension”) whereby the aggregate amount of the capital expenditure related to that facility required for obtaining such extension does not exceed [***] euro (EUR [***]) (excluding VAT); and

 

4.1.2                   [***] shall have confirmed in writing that the actual execution [***] of the financing agreements [***] will take place.

 

4.2                            Best Efforts concerning the Satisfaction of the Conditions Precedent

 

4.2.1                   Each of the Parties shall use its reasonable best efforts to ensure the due satisfaction of the conditions precedent set out in Clause 4.1 as soon as possible.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

12

 

4.2.2                   Without prejudice to the above, the Target Company (for which the Seller warrants performance) is responsible for filing the GMP License Extension request with the Authority. The Purchaser undertakes to cooperate in good faith with the Target Company in connection with the ongoing preparation of the GMP License Extension request as swiftly as possible after the date of this Agreement. The Purchaser shall provide all assistance reasonably requested by the Seller with a view to obtaining the GMP License Extension. All the Parties’ costs and expenses in relation to the filing of such GMP License Extension request shall be borne by the relevant Party.

 

4.2.3                   Without prejudice to the above, the Purchaser in consultation with the Seller shall use its best endeavours with a view to obtaining the satisfaction of the condition precedent set forth in Clause 4.1.2 as swiftly as possible after the date of this Agreement.

 

4.3                            Non-Satisfaction

 

4.3.1                   Each Party shall have the right to terminate this Agreement, by written notice to the other Party on or prior to the Closing Date, in each of the following circumstances:

 

(i)                                  If the condition precedent set out in Clause 4.1.1 is not satisfied, or waived by both Parties, within the period of six (6) months starting on the date on which the application for the GMP License Extension was submitted; or if the Authority has formally indicated to the Parties or the Target Company that it will not grant the GMP License Extension; or

 

(ii)                               If the condition precedent set out in Clause 4.1.2 is not satisfied, or waived by both Parties, within six (6) months after the date of this Agreement.

 

4.3.2                   If this Agreement is terminated pursuant to this Clause 4.3:

 

(i)                                  all rights and obligations of the Parties hereunder shall terminate without any liability of any Party to the other Party, save for any claims that any Party may have against the other Party arising from a breach by such other Party of any of its obligations under Clause 4.2;

 

(ii)                               the provisions of Clause 15 shall apply.

 

5                                      Closing

 

5.1                            Date and Place

 

The Closing shall take place at the offices of Linklaters LLP in Amsterdam on the fifth (5th) Business Day after the date on which all conditions precedent are satisfied or, as the case  may be, waived (the “Closing Date”) or at such other place or on such other date as may be agreed between the Parties.

 

5.2                            Seller’s Closing Obligations

 

On the Closing Date, the Seller shall do all of the following (the “Seller’s Closing Obligations”):

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

13

 

5.2.1                   the Seller shall deliver to the Purchaser the letters of resignation of the Target Company’s managing directors and the Target Company’s supervisory directors, in accordance with Clause 7.4.

 

5.2.2                   after fulfilment of the Seller’s Closing Obligations and the Purchaser’s Closing Obligations set forth in respectively Clause 5.2.1 and Clause 5.3.2 and after confirmation by the Dutch Notary to the Seller and the Purchaser of receipt of the First Tranche, the Seller or a duly authorised attorney-in-fact of the Seller shall sign a deed of transfer before the Dutch Notary and the Seller shall procure that the Target Company or a duly authorised attorney-in-fact of the Target Company shall sign a deed of transfer before the Dutch Notary, who shall execute such deed of transfer, thus effecting the transfer of the Shares, substantially in the form as attached hereto as Schedule 5.2.2 (the “Transfer Deed”), after which the Dutch Notary shall be requested to update the shareholders’ register of the Target Company.

 

5.3                            Purchaser’s Closing Obligations

 

On the Closing Date, the Purchaser shall do all of the following (the “Purchaser’s Closing Obligations”):

 

5.3.1                   the Purchaser shall pay the First Tranche in accordance with Clause 3.3.1;

 

5.3.2                   the Purchaser shall deliver to the Seller evidence that the guarantee provided by the Seller for the benefit of [***] has been fully released, in accordance with Clause 8.2.

 

5.3.3                   after fulfilment of the Seller’s Closing Obligations and the Purchaser’s Closing Obligations set forth in respectively Clause 5.2.1 and Clause 5.3.2 and after confirmation by the Dutch Notary to the Seller and the Purchaser of receipt of the First Tranche, the Purchaser or a duly authorised attorney-in-fact of the Purchaser shall sign a deed of transfer before the Dutch Notary who shall execute such deed of transfer, thus effecting the transfer of the Shares, substantially in the form as attached hereto as Schedule 5.2.2, after which the Dutch Notary shall be requested to update the shareholders’ register of the Target Company;

 

5.3.4                   the Purchaser shall hold a general meeting of the Target Company in accordance with Clause 8.1.

 

5.4                            Waiver of Closing Obligations

 

5.4.1                   The Purchaser may at any time waive some or all of the Seller’s Closing Obligations by giving five (5) Business Days’ advance notice to the Seller.

 

5.4.2                   The Seller may at any time waive some or all of the Purchaser’s Closing Obligations by giving five (5) Business Days’ advance notice to the Purchaser.

 

5.5                            Breach of Closing Obligations

 

5.5.1                   The effectiveness of each of the Purchaser’s Closing Obligations is conditional upon the fulfilment of all of the Seller’s Closing Obligations and vice versa.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

14

 

5.5.2                   If a Party fails to comply with any of its material Closing Obligations, then all Closing Obligations that have already been fulfilled shall be deemed null and void with the exception of the Dutch notarial deed recording the transfer of the Shares, and if such deed has been executed, the Seller and the Purchaser shall carry out any remedial steps or actions required to ensure that the Shares will be transferred back to the Seller, and the non-breaching Party shall have the right (in addition to and without prejudice to all other rights and remedies available):

 

(i)                                  to terminate this Agreement by giving ten (10) Business Days’ advance notice to the other Party within five (5) Business Days after the Closing Date, provided that, after this five (5) Business Days period, the non-breaching Party shall be deemed to have waived its right to terminate this Agreement under this Clause 5.5.2;

 

(ii)                               to effect the Closing so far as practicable having regard to the defaults which have occurred; or

 

(iii)                            to fix a new date for the Closing (not being more than ten (10) Business Days after the agreed Closing Date) but provided that such deferral may only occur once.

 

5.5.3                   The provisions of Clause 15 shall apply in case of termination of this Agreement pursuant to Clause 5.5.2.

 

6                                      Undertakings of all Parties prior to or at the Closing Date

 

6.1                            Filings with Public Authorities

 

6.1.1                   As soon as practicable after the date of this Agreement, the Parties shall comply with all public authority filing and notification formalities and other formalities required in order to consummate the transactions contemplated in this Agreement, including notifications to the European Medicines Agency (in connection with the Seller’s marketing authorisation for ChondroCelect), the relevant Dutch authorities (in connection with the Target Company’s GMP license and tissue establishment license) and the Seller shall cause the Target Company to provide all assistance necessary for such formalities.

 

6.1.2                   The Parties shall consult with each other in so far as is reasonably practicable before making such filings and notifications or complying with all requests from any public authority.

 

6.2                            Other Agreements

 

On the Closing Date, the Parties shall execute (or shall cause their relevant Affiliates to executed) the following agreements:

 

6.2.1                   the CMO Contract, substantially in the form of the draft attached as Schedule 1.1.1(iii);

 

6.2.2                   a deposit agreement, substantially in the form attached hereto as Schedule 6.2.2, to deposit the DVD containing the Data Room, supplemented as the case may be with additional disclosures made by the Seller and which must be included on the 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

15

 

DVD in accordance with Clause 10.3.2, with the Dutch Notary (the “Deposit Agreement”); and the Parties shall within ten (10) Business Days after the Closing Date, through their authorized representatives or attorneys-in-fact, hand over the DVD to the Dutch Notary.

 

7                                      Undertakings of the Seller prior to or at the Closing Date

 

7.1                            Collaboration

 

To the extent permitted under applicable legislation and regulations, between the date of this Agreement and the Closing Date, the Seller and the Purchaser shall collaborate in order to prepare and facilitate the change of control over the Target Company and the Target Company’s integration into the Purchaser’s group.

 

7.2                            Operation of the Business

 

Between the date of this Agreement and the Closing Date, the Seller shall ensure that the Company’s business will be carried on in the ordinary and usual course and substantially in the same manner as at the date of this Agreement.

 

7.3                            Restrictions on the Seller and the Target Company

 

7.3.1                   Between the date of this Agreement and the Closing Date, the Seller agrees and undertakes not to approve any of the following resolutions at any shareholders’ meeting of the Target Company, without the Purchaser’s prior written consent (which consent shall not be unreasonably withheld or delayed):

 

(i)                                declaring any dividends;

 

(ii)                             increasing or decreasing the Target Company’s capital, or making any other amendment to its Articles of Association, provided that at any time the Seller shall be allowed to perform any share premium contribution (agiostorting) it deems appropriate in order to convert debt owed by the Target Company to the Seller into capital by means of a settlement of the payment obligation of the Seller pursuant to the share premium contribution (agiostorting) with the payment obligation of the Company to the Seller pursuant to the outstanding debt;

 

(iii)                          approving the contribution or the sale by the Target Company of its business as a whole; or

 

(iv)                         winding up, merging or splitting up the Target Company.

 

7.3.2                   Between the date of this Agreement and the Closing Date, the Seller shall cause the Target Company (acting through its management body) not to do any of the following without the Purchaser’s prior written consent (which consent shall not be unreasonably withheld or delayed):

 

(i)                                incur any capital expenditure in excess of EUR 25,000 per item;

 

(ii)                             incur any capital expenditure in connection with the CAPEX Program;

 

(iii)                          acquire (in any manner whatsoever) any shares or other securities in any corporation, company or partnership;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

16

 

(iv)                         declare any dividend or interim dividend by a Board resolution;

 

(v)                            acquire or dispose of (in any manner whatsoever) any division or material assets of the Target Company;

 

(vi)                         enter into, amend or terminate any lease agreement in respect of any real property leased by it as lessee;

 

(vii)                      recruit any new employee, except as communicated by the Seller to the Purchaser in writing prior to the date of this Agreement;

 

(viii)                   dismiss any employee or change the terms of service of any employee;

 

(ix)                         enter into any borrowing or indebtedness, other than intra-group borrowings or indebtedness vis-à-vis the Seller or its Affiliates;

 

(x)                            enter into any agreement or arrangement which establishes any guarantee, indemnity, suretyship, form of comfort or support (whether or not legally binding) given by the Target Company in respect of the obligations or solvency of any third party;

 

(xi)                         repay any borrowing or indebtedness, other than intra-group borrowings or indebtedness vis-à-vis the Seller or its Affiliates, in advance of its stated maturity;

 

(xii)                      cancel, waive, release, assign or discontinue any debts or claims;

 

(xiii)                   change its accounting policies or valuation rules;

 

(xiv)                  enter into any agreement or commitment to do any of the above.

 

7.4                            Directors’ Resignation

 

The Seller shall procure that all of the Target Company’s current managing directors and supervisory directors, shall resign from their position under the condition precedent of the execution of the Transfer Deed and shall execute a letter of resignation, substantially in the form of the draft attached as Schedule 7.4, on or before the Closing Date.

 

7.5                            Replacement of insurance coverage

 

The Purchaser acknowledges and agrees that (a) prior to the Closing Date certain insurance policies covering the Target Company and its business are maintained by the Seller, (b) such insurance policies will be terminated with respect to the Target Company and its business effective as of the Closing Date and (c) upon such termination, the Target Company and its business will cease to be covered under such policies and the Purchaser will have to obtain replacement coverage.

 

7.6                            Intra-group services

 

The Purchaser acknowledges and agrees that (a) prior to the Closing Date certain legal, HR, finance, IT, corporate QA, regulatory and other intra—group services are being provided to the Target Company by the Seller or any of its Affiliated Companies, and (b) such services will be terminated with respect to the Target Company and its business effective as of the Closing Date unless otherwise agreed between the Parties and the Purchaser or the Target Company will have to obtain replacement services.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

17

 

7.7                            Intragroup indebtedness

 

The Seller shall (and shall cause the Target Company to) use best efforts to arrange that, on the Closing Date, there will be no financial indebtedness (being the G/L Code items referred to in Schedule 1.1.1(i)) owed by the Target Company to the Seller or any Affiliate of the Seller.

 

7.8                            Release of guarantees

 

The Seller warrants that all guarantees and security interests given by the Target Company in respect of any liability of the Seller or any Affiliated Company of the Seller shall be fully released by the beneficiaries of such guarantees or security interests on or before the Closing Date.

 

7.9                            Annual Accounts 2013

 

Provided that the Closing occurs on or after 15 February 2014, the Seller shall cause the Target Company to draw up the Annual Accounts 2013 and to have the Annual Accounts 2013 approved by the shareholders’ meeting of the Target Company prior to or on the Closing Date. In such event the Seller shall provide the Purchaser with a copy of the Annual Accounts 2013, which shall be deemed included in the Data Room and shall be included on the DVD referred to in Clause 6.2.2.

 

In the event that the Closing would occur prior to 15 February 2014, the Seller shall make best efforts to do the same prior to or on the Closing Date.

 

8                                      Undertakings of the Purchaser prior to or at the Closing Date

 

8.1                            General Meeting of the Target Company

 

On the Closing Date and prior to the Closing, the Seller shall hold a general meeting of the Target Company with the agenda set out below, and shall adopt the resolutions approving each item on such agenda:

 

·                                       resignation of each of the a managing directors and of each of the supervisory directors under the condition precedent of the execution of the Transfer Deed;

 

·                                       release of liability to be granted to the resigning directors for the management conducted by them up to and including the date of their resignation;

 

·                                       appointment of new director(s) under the condition precedent of the execution of the Transfer Deed.

 

8.2                            Release of Seller’s Guarantee for the benefit of [***]

 

The Purchaser shall procure that the guarantee [***] shall be fully released by [***] on or before the Closing Date.

 

9                                      Purchaser’s Representations

 

The Purchaser warrants to the Seller that the representations set out in Schedule 9 (the “Purchaser’s Representations”) are true and accurate as at the date of this Agreement 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

18

 

or, as the case may be, any such earlier date as of which any Purchaser’s Representation is expressly made.

 

10                               Seller’s Representations

 

10.1                     General Principles

 

10.1.1            The Seller warrants to the Purchaser that the representations set out in Schedule 10 (the “Representations”) are true and accurate as at the date of this Agreement or, as the case may be, any such earlier date as of which any Representation is expressly made.

 

10.1.2            For the avoidance of any doubts, save as otherwise provided herein (and in particular in the relevant Representations), the Representations are made only in respect of events, matters or circumstances which occurred or arose on or before the date of this Agreement.

 

10.1.3            The Purchaser acknowledges and agrees that the Seller does not make any representation as to the accuracy of the explicit forecasts, estimates, projections or statements of intent provided to the Purchaser or any of its directors, officers, employees, agents or advisors on or prior to the date of this Agreement, in the documents provided in the Data Room, during management presentations, during Q&A sessions or otherwise.

 

10.1.4            The Purchaser acknowledges and agrees that it has not entered into this Agreement in reliance upon any representation or information other than the Representations set out in Schedule 10 and the information contained in this Agreement.

 

10.1.5            The Purchaser acknowledges and agrees that it does not rely when entering into this Agreement on any of the representations implied by Dutch law including Section 7:17 of the Dutch Civil Code.

 

10.2                     Non Conformity

 

The applicability of Sections 7:17 and 7:20 to 7:23 inclusive of the Dutch Civil Code is hereby excluded.

 

10.3                    Seller’s Disclosures

 

10.3.1            All Representations are made subject to the following matters, which shall therefore limit the contents and scope of such Representations, provided that such matters are disclosed in sufficient detail to enable a diligent purchaser assisted by professional advisors to assess their impact on the Target Company:

 

(i)                                  any matter which is contained or referred to in this Agreement or clearly known from the information provided in the Data Room. The information in the Data Room can be qualified as “clearly known” if the respective information has been laid out in a manner enabling a diligent purchaser assisted by professional advisors to assess the impact of such matter on the Target Company and the Representations; and

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

19

 

(ii)                               all matters which are publicly available regarding the Target Company or its business before or at the date of this Agreement.

 

10.3.2            Additional disclosures

 

(i)                                  Between the date of this Agreement and the Closing Date the Seller shall be allowed to make additional disclosures to the Purchaser relating to facts or matters occurred or arisen between the date of this Agreement and the Closing Date. Such additional disclosures shall be notified in writing by the Seller to the Purchaser (the “Additional Disclosure Notification”).

 

(ii)                               In the event that the additional disclosures would relate to facts or matters constituting a material Breach of Representations, the Purchaser shall within a period of ten (10) Business Days after receipt of the Additional Disclosure Notification have the right to notify the Seller in writing that it rejects the relevant additional disclosures, unless the material Breach of Representations would be the result of the Seller having followed a specific instruction from the Purchaser, such specific instruction having been given by the Purchaser contrary to the recommended action proposed by the Seller (the “Rejection Notification”).

 

(iii)                            In case a Rejection Notification is sent by the Purchaser, the Parties shall discuss whether a reduction of the Purchase Price is appropriate in view of the Additional Disclosure Notification. If the Parties agree that a reduction of the Purchase Price is appropriate and have agreed in writing on the amount of such reduction, the additional disclosures notified by way of the relevant Additional Disclosure Notification will be deemed included in the Data Room and shall be included on the DVD referred to in Clause 6.2.2. If no reduction of the Purchase Price is agreed between the Parties within ten (10) Business Days after receipt of the Rejection Notice, at the option of the Seller: (a) the additional disclosures notified by way of the relevant Additional Disclosure Notification shall not be deemed to be included in the Data Room and shall not be included on the DVD referred to in Clause 6.2.2; or (b) the Seller shall have the right to terminate this Agreement by written notice to the Purchaser.

 

(iv)                           In the event that the additional disclosures would relate to facts or matters not constituting a material Breach of Representations or in the event that the Purchaser does not send a Rejection Notice within the timeframe specified in Clause 10.3.2(ii), such additional disclosures will be deemed included in the Data Room and shall be included on the DVD referred to in Clause 6.2.2.

 

(v)                              Notwithstanding any other Clauses in this Agreement, any Breach of Representations shall solely for the purpose of this Clause 10.3.2 be deemed to be “material” if it involves a liability (of any nature whatsoever) in excess of EUR 35,000 in aggregate, for the Target Company.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

20

 

10.3.3            The Seller shall have no obligation to indemnify the Purchaser in respect of any Claim to the extent that the relevant events, matters or circumstances giving rise to the Claim were disclosed to the Purchaser pursuant to Clause 10.3.1 or deemed included in the Data Room pursuant to Clauses 7.9 or 10.3.2.

 

10.3.4            Save in the case of fraud or intentional misrepresentations or misconduct, the Seller hereby agrees to waive with effect from the Closing Date any rights or remedies which it may have against the Target Company or any of its employees in respect of any inaccuracy or omission in any information supplied by the Target Company or any of its employees in connection with assisting the Seller in the making of any Representation or the preparation of the Data Room.

 

10.4                     Updating of Representations to Closing

 

10.4.1            Without prejudice to Clause 10.3.2, the Seller warrants to the Purchaser that the Representations shall be true and accurate on the Closing Date, as if they had been repeated on that date except to the extent that any Representation is expressly made as of a particular date or for a particular period of time (in which case such Representation shall not be deemed to be repeated on the Closing Date).

 

10.4.2            The Seller shall have no obligation to indemnify the Purchaser under Clause 11 in respect of any Loss arising in consequence of an event occurring or matter arising between the date of this Agreement and the Closing Date and constituting a Breach of Representations, if such event or matter has been disclosed by the Seller to the Purchaser and is deemed included in the Data Room pursuant to Clause 10.3.2.

 

10.5                     Purchaser’s Knowledge of certain Matters

 

10.5.1            The Purchaser acknowledges that it has no knowledge of any Breach of Representations on the date of this Agreement.

 

10.5.2            The Seller shall have no obligation to indemnify the Purchaser in respect of any Claim for Breach of Representations to the extent that, prior to the date of this Agreement, the Purchaser had knowledge of such a Breach of Representations.

 

10.6                     Notification by the Purchaser of Breaches of Representations

 

If after the date of this Agreement and before the Closing Date:

 

(i)                                   the Purchaser shall become aware that there was a material Breach of Representations as of the date of this Agreement; or

 

(ii)                                any event shall occur or any matter shall arise of which the Purchaser becomes aware which results or can reasonably be expected to result in a material Breach of Representations on the Closing Date;

 

the Purchaser shall promptly notify the Seller setting out all details that are available to it, and the Seller shall make any investigation concerning the event or matter, at its own cost, as the Purchaser may reasonably require.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

21

 

11                               Indemnification

 

11.1                     General Principle

 

11.1.1            Subject to the limitations set out in Clause 12, the Seller agrees and undertakes to indemnify the Purchaser for any Loss incurred by the Purchaser, arising from any Breach of Representations, i.e. any Loss incurred by the Target Company or the Purchaser, which would not have been incurred by them if all facts stated in the Representations had been true and accurate.

 

11.1.2            The Losses shall not include any reputational damages of the Purchaser or the Target Company, nor any fees or expenses of any advisers or other professionals hired by the Purchaser or the Target Company in connection with any Claim against the Seller, nor the internal costs such as employment cost of the managers or other employees of the Purchaser or the Target Company for their work in connection with the Claim. Without prejudice to the foregoing, the Losses shall include any reasonable fees of external lawyers and other professional advisors hired by the Purchaser or the Target Company in response to any Claim.

 

11.1.3            Under no circumstances whatsoever, shall the multiplier or any other ratio that may have been used, directly or indirectly, for calculating the Purchase Price be taken into account.

 

11.1.4            For the purposes of this Clause 11, any Loss incurred by the Target Company shall be deemed to be incurred by the Purchaser in the same amount.

 

11.2                     Double Claims

 

The Purchaser shall not be entitled to be indemnified more than once for the same Loss.

 

11.3                     Nature of any Payment to the Purchaser

 

Any amount paid by the Seller to the Purchaser under this Clause 11 shall constitute a reduction of the Purchase Price.

 

11.4                     No Assignment of Indemnification Rights to any Subsequent Transferee of the Shares

 

The Purchaser’s rights under this Clause 11 are personal to the Purchaser and, accordingly, no buyer or other transferee of all or part of the Shares other than an Affiliated Company of the Purchaser shall be entitled to make any Claim under this Clause 11 against the Seller.

 

11.5                    Specific Indemnities

 

11.5.1            Subject to the limitations set out in Clause 12, except for Clauses 12.2 and  12.3, and without prejudice to Clause 12.11.2, the Seller agrees and undertakes to indemnify and hold  the Purchaser harmless on a euro for euro basis for the following (the “Indemnities”):

 

(i)                                  any full or partial repayment that would be imposed on the Target Company in connection with the amount of EUR [***] that the Target Company has received as a part of the grant of EUR [***] that was awarded by the [***] in connection with the facility [***];

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

22

 

(ii)                               any full or partial repayment that would be imposed on the Target Company in connection with the grant that was awarded to the Target Company for [***] by [***]; and

 

(iii)                            any of the following Tax liabilities relating to the period before the Closing Date for which the Target Company is liable: (i) any Tax liability for which the Target Company is liable as a result of any event occurring before or on the Closing Date or in respect of any profits earned or revenues realized before or on the Closing Date; (ii) any Tax liability of any person for which the Target Company was jointly and severally liable or secondary liable before the Closing Date, (iii) any Tax Liability for which the Target Company is liable as a result of “transfer pricing” before or on the Closing Date, (iv) any Tax liability for which any person other than the Target Company is liable, in particular the liabilities mentioned in (i), (ii) and (iii), as a result of any event occurring before the Closing Date, that on the basis of article 24 of the Dutch Collection Tax Act (Invorderingswet 1990) is offset against a receivable in respect of Tax of the Target Company by a Tax authority, and (v) any costs or expenses reasonably incurred by the Purchaser in connection with any action taken in defending against or settling any Tax liability as referred to in (i), (ii), (iii) and (iv) above.

 

11.5.2            In case any amount could be claimed under both a Representation and an Indemnity, the Indemnity shall prevail, but the Seller will in such case only be liable for the Indemnity.

 

11.5.3            No matter disclosed against any of the Representations or any other knowledge (actual or constructive) on the part of the Purchaser and no investigation by or on behalf of the Purchaser shall prejudice any claim made by the Purchaser pursuant to an Indemnity or affect or reduce any liability of the Seller pursuant to an Indemnity.

 

12                               Limitation of Seller’s Liability

 

12.1                     Time Limitations

 

The Seller shall have no obligation to indemnify the Purchaser in respect of any Claim unless it is given by the Purchaser to the Seller in accordance with Clause 13.1:

 

12.1.1            in the case of any Claim for Breach of the Representations in respect of ownership of the Shares as set out in Section 2.2 of Schedule 10, within twenty (20) years following the Closing Date;

 

12.1.2            in the case of any Claim for Indemnity under Clause 11.5.1(iii) or any Claim for Breach of the Representations in respect of Tax matters as set out in Section 5  of Schedule 10, within six (6) months after the date upon which the right of the Tax authorities or any other competent authorities to assess or claim any Taxes or  social security contributions in respect of the matters giving rise to such a Claim is barred by all applicable statutes of limitation;

 

12.1.3            in the case of any Claim for Indemnity under Clauses 11.5.1(i) or 11.5.1(ii), within five (5) years following the Closing Date;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

23

 

12.1.4            in the case of any other Claim, within 18 months following the Closing Date.

 

12.2                     Minimum Claims

 

12.2.1            The Seller shall have no obligation to indemnify the Purchaser in respect of any Claim arising from any single Loss where the amount which would otherwise be recoverable under this Agreement in that respect does not exceed thirty-five thousand euro (EUR 35,000) and provided that, if that amount is exceeded, subject as provided elsewhere in this Clause 12, the aggregate amount shall be recoverable from the Sellers and not only the excess.

 

12.2.2            Series of Claims arising from substantially identical facts shall be aggregated for the purposes of this Clause 12.2.

 

12.3                     Aggregate Minimum Claims

 

12.3.1            The Seller shall have no obligation to indemnify the Purchaser in respect of any Claim unless the aggregate amount for which the Seller would otherwise be liable under this Agreement in respect of all Claims made by the Purchaser exceeds one hundred thousand euro (EUR 100,000) and provided that, if that amount is exceeded, subject as provided elsewhere in this Clause 12, the aggregate amount shall be recoverable from the Sellers and not only the excess.

 

12.3.2            Once the above-mentioned amount has been exceeded, this Clause 12.3 shall no longer apply to subsequent Claims (if any).

 

12.4                     Maximum Liability

 

Notwithstanding any other provision in this Agreement,

 

12.4.1            the aggregate liability of the Seller under this Agreement, including Claims based on Clause 11, other than Claims based on a Breach of Representations in respect of ownership of the Shares as set out in Section 2.2 of Schedule 10, shall not exceed [***] euro (EUR [***]).

 

12.4.2            without prejudice to Clause 12.4.1, the overall aggregate liability of the Seller under this Agreement, including all Claims based on Clause 11 (including Claims based on a Breach of Representations in respect of ownership of the Shares as set out in Section 2.2 of Schedule 10), shall not exceed one hundred percent (100%) of the Purchase Price.

 

12.5                     Contingent Liabilities

 

The Seller shall have no obligation to indemnify the Purchaser in respect of any liability which is contingent unless and until such contingent liability becomes an actual liability and is due and payable provided, however, that this Clause 12.5 shall not have the effect of preventing the Purchaser from validly making a Claim in respect of a contingent liability  within the Claim period as set forth in Clause 12.1, even though it has not yet become an actual liability.

 

12.6                     Adjustment of the Purchase Price

 

The Seller shall have no obligation to indemnify the Purchaser in respect of any Claim if and to the extent that:

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

24

 

12.6.1            (a) the matter giving rise to such Claim is properly accounted or provided for in the Closing Accounts by means of a liability, a depreciation or a provision specifically related to the matter in question and (b) the amount of any such liability, depreciation or provision has effectively lead to a decrease of the Price Adjustment Amount; and/or

 

12.6.2            (a) the Loss relating to such Claim consists of a payment already made by the Target Company on or prior to the Closing Date and (b) the amount of any such payment has effectively lead to a decrease of the Price Adjustment Amount.

 

12.7                     Tax Savings arising from the Losses

 

12.7.1            Any amount for which the Seller would otherwise have been liable in respect of any Claim shall be reduced by the amount of any Tax savings for the Target Company or the Purchaser arising from the Loss in respect of which the Claim has been made.

 

12.7.2            If the amount of the Tax savings is determined after payment by the Seller of any amount in discharge of the Claim, the Purchaser shall pay, or shall procure that the Target Company pays, to the Seller an amount equal to the difference between:

 

(i)                                  the amount paid by the Seller to the Purchaser; and

 

(ii)                               the amount that the Purchaser would have received if such Tax savings had been taken into account in determining the amount due by the Seller in accordance with this Clause 12.7.

 

12.7.3            For the purposes of this Clause 12.7, “Tax savings” means the amount by which any Tax for which the Purchaser or the Target Company would otherwise have been liable is actually directly reduced or extinguished.

 

12.8                     Insurance Proceeds and Other Recoveries from Third Parties

 

12.8.1            The Seller shall have no obligation to indemnify the Purchaser in respect of any Claim if and to the extent that the Losses in respect of which the Claim is made:

 

(i)                                  are covered by an insurance policy in force at the Closing Date;

 

(ii)                               are recovered from any other third party.

 

12.8.2            Accordingly, any amount for which the Seller would otherwise have been liable in respect of any Claim shall be reduced by the amount of any insurance proceeds, indemnification or other payment from any insurance company or any other third party in respect of the Loss which is the subject matter of the Claim.

 

12.8.3            If, before the Seller pays an amount in discharge of any Claim, the Target Company or the Purchaser is entitled to recover from any insurance company or  any other third party a sum which indemnifies or compensates the Target Company or the Purchaser (in whole or in part) in respect of the Loss which is the subject matter of the Claim, the Purchaser shall procure that all reasonable steps are taken to enforce such recovery against the third party.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

25

 

12.8.4            If the Seller pays an amount in discharge of any Claim and the Purchaser or the Target Company subsequently recovers from any insurance company or any other third party a sum relating to the subject matter of the Claim, the Purchaser shall pay, or shall procure that the Target Company pays, to the Seller an amount equal to the difference between:

 

(i)                                  the amount paid by the Seller to the Purchaser or the Target Company; and

 

(ii)                               the amount that the Purchaser or the Target Company would have received if the amount of such recovery had been taken into account in determining the amount due by the Seller in accordance with this Clause 12.8.

 

12.8.5            If the Seller pays an amount in respect of any Claim, the Purchaser shall, and shall cause the Target Company to, assign to the Seller all of its rights arising from the Loss which is the subject matter of that Claim against any insurance company or other third party, to the extent such assignment is permitted.

 

12.9                     Matters Arising Subsequent to this Agreement

 

The Seller shall have no obligation to indemnify the Purchaser in respect of any Losses to the extent that the same would not have occurred but for:

 

12.9.1            any action taken by the Seller (or any of its Affiliates) after the date of this Agreement, pursuant to this Agreement or otherwise at the written request or with the written approval of the Purchaser;

 

12.9.2            any change made after the Closing Date to the Target Company’s valuation rules or policies or practices in respect of accounting, Tax matters;

 

12.9.3            any other action of the Target Company or the Purchaser (or any of its Affiliates), after the Closing Date, taken or omitted otherwise than within the scope of the Target Company’s ordinary course of business and in the knowledge that such action would give rise to a Loss; or

 

12.9.4            the passing of, or any change in, any law, regulation or standards (including any increase in any Tax rates) after the Closing Date.

 

12.10              Fraud

 

None of the limitations on the liability of the Seller set out in Clause 12 or 13 (whether as to the quantum of the Claim, the time limit for notification of the Claim, the procedures or requirements for making a Claim, or otherwise) shall apply to any Claim against the Seller to the extent that the liability of the Seller in respect of that Claim arises from fraud or wilful default on the part of the Seller..

 

12.11              Mitigation of Losses

 

12.11.1     The Purchaser shall procure that all reasonable steps are taken to avoid or mitigate any Losses which might give rise to a Claim against the Seller.

 

12.11.2     Without prejudice to the generality of Clause 12.11.1, the Purchaser shall (and shall cause the Target Company to) use commercially reasonable best efforts after the Closing Date to avoid that any full or partial repayment would be imposed on the Target Company in connection with the amount of EUR [***] that the Target 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

26

 

Company has received as a part of the grant of EUR [***] that was awarded by [***] in connection with [***]. For the purposes of this Clause 12.11.2, best efforts does not include an obligation of the Purchaser to [***]. The Purchaser shall promptly inform the Seller of any communication received by the Purchaser (or by the Target Company) from [***] regarding this subject matter and shall consult with the Seller on the strategy and communication to [***] in respect thereof.

 

13                               Claims by the Purchaser

 

13.1                     Notification of Claims

 

13.1.1            In order to make a Claim against the Seller, the Purchaser shall give a notice of such Claim to the Seller within sixty (60) days after it or any director of the Target Company, appointed on or after the Closing Date, becomes aware of any event, matter or circumstance that gives rise to the Claim and within the time limitations provided in Clause 12.1. Such notice shall set out full details to the extent available of the legal and factual basis of the Claim, together with a first estimate of the amount of the Losses. A copy of all documents establishing the basis of the Claim shall be enclosed in the notice.

 

13.1.2            If the Purchaser fails to give such a notice within sixty (60) days it or any director of the Target Company, appointed on or after the Closing Date, has become aware of any event, matter or circumstances, the Seller shall be relieved from any liability it may have under Clause 11 in respect of the relevant event, matter or circumstances, unless and to the extent that the Purchaser establishes that the Seller has not been prejudiced by such failure.

 

13.1.3            The notice shall be deemed invalid and hence not to be given, if it does not contain each of the elements required by Clause 13.1.1.

 

13.2                     Third Party Claims

 

13.2.1            If the events, matters or circumstances that may give rise to a Claim against the Seller occur or arise as a result of or in connection with a claim by or a liability to a third party (a “Third Party Claim”), then:

 

(i)                                  the Purchaser shall, or shall cause the Target Company to, provide the Seller with copies of all documents and correspondence from that third party, and all other correspondence and documents relating to the Third Party Claim as the Seller may reasonably request, within fifteen (15) days following receipt of such documents and correspondence by the Target Company or the Purchaser, subject to the Seller agreeing to keep all such information and documents confidential and to use them only for the purpose of dealing with the Third Party Claim;

 

(ii)                               the Seller shall promptly and not later than fifteen (15) days thereafter notify to the Purchaser whether or not it desires to defend the Purchaser or the Target Company against such Third Party Claim;

 

(iii)                            if the Seller informs the Purchaser that it desires to assume the defence against the Third Party Claim, the Seller shall have the right to assume and 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

27

 

control the defence of such Third Party Claim by appropriate proceedings at the Seller’s sole cost and expense, provided that (i) the Seller shall keep the Purchaser informed on the development of the Third Party Claim, (ii) that no admission of liability shall be made by the Seller, (iii) the Third Party Claim shall not be settled without the Purchaser’s prior written consent which consent may not be unreasonably refused or delayed and (iv) the Seller shall take into account reasonable requests of the Purchaser regarding the defence of the Third Party Claim;

 

(iv)                           if the Seller informs the Purchaser that it does not desire to assume the defence against the Third Party Claim, the Purchaser shall, or shall cause the Target Company to, take into account reasonable requests of the Seller and keep the Seller informed on the development of the Third Party Claim; and

 

(v)                              no admission of liability shall be made by the Purchaser or the Target Company and the Third Party Claim shall not be settled without the Seller’s prior written consent which consent may not be unreasonably refused or delayed.

 

13.2.2            If the Purchaser breaches any of its obligations under Clause 13.2, the Seller shall be relieved from any liability it may have under Clause 11 in respect of the Third Party Claim.

 

13.3                     Seller’s Access to the Target Company

 

In connection with any Claim made by the Purchaser against the Seller, and without prejudice to Clause 13.2, the Purchaser shall, and shall cause the Target Company to:

 

13.3.1            afford the Seller and its advisers access to the Target Company’s registered office and to any other premises owned or leased by any Target Company, upon reasonable advance notice and during normal business hours and, to the extent relevant, in accordance with the “standard operating procedures” of the Target Company;

 

13.3.2            allow the Seller and its advisers to meet with the Target Company’s management and employees, upon reasonable advance notice and during normal business hours;

 

13.3.3            allow the Seller and its advisers to investigate the events, matters or circumstances alleged to give rise to such Claim, as the Seller or its advisers may reasonably deem necessary or desirable, provided that no such investigation shall interfere with the Target Company’s business; and

 

13.3.4            allow the Seller and its advisers to examine and copy all such contracts, books and records, and other documents and data relating to the events, matters or circumstances referred to in the Claim, as the Seller and its advisers may reasonably request, subject to the Seller agreeing to keep all such information and documents confidential and to use them only for the purpose of investigating and defending such Claim.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

28

 

13.4                     Notification of Seller’s Objections

 

13.4.1            If the Seller objects to any Claim made by the Purchaser in accordance with Clause 13.1, it shall give a notice to the Purchaser objecting to the Claim within sixty (60) days following notification of such Claim. Such notice shall contain a statement of the basis of the Seller’s objections.

 

13.4.2            The Seller shall be deemed to accept any Claim made by the Purchaser in accordance with Clause 13.1 if it fails to give a notice of objection to the Purchaser pursuant to Clause 13.4.1, unless and to the extent that the Seller establishes that the Purchaser has not been prejudiced by such failure.

 

13.5                     Disagreement on a Claim

 

13.5.1            If the Seller and the Purchaser are unable to reach agreement on the amount payable by the Seller within sixty (60) days following notification of the Seller’s objections in accordance with Clause 13.4, the matter shall be decided in accordance with Clause 16.12 (Jurisdiction).

 

13.5.2            The Purchaser shall be deemed to have withdrawn its Claim, unless it has taken all necessary actions to submit the matter to the competent court in accordance with Clause 16.12 (Jurisdiction) within twelve months after the thirty-day time period set out in Clause 13.5.1 has elapsed.

 

13.6                     Payment by the Seller

 

13.6.1            If the Seller has accepted the amount claimed by the Purchaser or if the Seller and the Purchaser have agreed on another amount, the Seller shall pay such amount (subject to the limitations set out in Clause 12) within fifteen (15) Business Days of such acceptance or agreement.

 

13.6.2            If the matter giving rise to a Claim has been decided by any competent court or tribunal in accordance with Clause 16.12 (Jurisdiction) and the Seller has been ordered to pay any amount pursuant to any judgement not subject to appeal, the Seller shall pay such amount on the date on which it has become due and payable.

 

13.6.3            All payments shall be made in accordance with such instructions as shall be notified to the Seller by the Purchaser.

 

14                               Undertakings of the Parties Extending after the Closing Date

 

14.1                     Payment of Intra-group Indebtedness by the Target Company

 

The Purchaser shall cause all financial indebtedness (being the payables referred to in Schedule 1.1.1(i)) owed on the Closing Date by the Target Company to the Seller or any Affiliate of the Seller to be paid to the Seller in full (including any accrued but unpaid  interest as per that date)on the fifth (5th) Business Day after the final determination of the Purchase Price Amount in accordance with Clause 3.2.

 

14.2                     Payment of the Second Tranche

 

The Purchaser undertakes to timely pay the Second Tranche in accordance with Clause 3.3.2.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

29

 

14.3                     Further Assurances

 

The Parties agree and undertake to furnish to each other such further information, to execute such other documents, and to do such other things (before or after the Closing Date), as any other Party may reasonably request for the purposes of carrying out the intent of this Agreement.

 

14.4                     Confidentiality and Announcements

 

14.4.1            This Clause shall be without prejudice to the Confidentiality Agreement dated 10 November 2011, which shall continue notwithstanding this Agreement.

 

14.4.2            The existence, subject matter and contents of this Agreement are confidential, and subject to Clause 14.4.4, each Party is prohibited from disclosing all or any part of this Agreement, or even its existence, at any time (including after the Closing Date).

 

14.4.3            Subject to Clauses 14.4.4 and 14.4.5:

 

(i)                                  each Party shall treat as strictly confidential and not disclose or use any information obtained in connection with the negotiations relating to the Transaction; and

 

(ii)                               the Purchaser shall treat as strictly confidential and not disclose or use any information relating to the business and financial affairs (including future plans and targets) of the Seller and the Seller’s Affiliated Companies.

 

14.4.4            Clauses 14.4.2 and 14.4.3 shall not prohibit disclosure or use of any information if and to the extent that:

 

(i)                                  the disclosure or use is necessary in order to allow any Party to comply with any legal requirement to make any announcement or to provide information to any public authority or Stock Exchange;

 

(ii)                               the disclosure or use is required for the purposes of any judicial or arbitration proceedings arising out of or in connection with this Agreement;

 

(iii)                            the disclosure is made to professional advisers of any Party on condition that such professional advisers undertake to comply with the provisions of Clauses 14.4.2 and 14.4.3 in respect of such information as if they were a party to this Agreement;

 

(iv)                           the information is or becomes publicly available (other than as a result of any breach of the Confidentiality Agreement or this Agreement);

 

(v)                              the information becomes available to the Party bound by this Clause 14.4 from a source which is not bound by any obligation of confidentiality in  relation to such information (as can be demonstrated by such Party’s written records and other reasonable evidence); or

 

(vi)                           the other Party has given prior written approval to the disclosure or use,

 

it being understood, however, that any Party that intends to disclose information pursuant to this Clause 14.4.4 shall to the extent not prohibited by applicable laws 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

30

 

or regulations, prior to making such disclosure, consult with the other Party on the form, content and timing of such disclosure.

 

14.4.5            On or shortly after the date of this Agreement, the Seller and the Purchaser shall be allowed to issue a press statement announcing the Transaction, substantially in the form as the drafts attached as Schedule 14.4.5.

 

14.4.6            Without prejudice to Clause 14.4.5, no announcement in connection with the existence or the subject matter of this Agreement (including any announcement to the Target Company’s employees, customers or suppliers) shall be made without the prior written consent of all Parties (which consent shall not be unreasonably withheld or delayed), and the Parties shall consult with each other concerning the means by which the Target Company’s employees, customers and suppliers, and others having dealings with the Target Company, shall be informed of this Agreement. The Purchaser shall have the right to be present when any such communication is made.

 

14.4.7            The Parties shall take all necessary actions to ensure that no accidental or unauthorised disclosure of the existence or contents of this Agreement occurs.

 

14.5                     Tax Returns regarding Pre-Closing Date Tax Return Periods

 

14.5.1            The Purchaser shall (i) timely consult with the Seller with a view to prepare the Tax returns of the Target Company for all Tax Return Periods ended on or prior to the Closing Date to the extent that they have not been prepared before the Closing Date, and (ii) take into account any reasonable comments made by the Seller in respect of such Tax returns.

 

14.5.2            The Purchaser shall and shall cause the Target Company to retain all books and records with respect to Taxes pertaining to the Target Company following the Closing Date for as long as required under applicable law.

 

14.6                    Use of the name “TiGenix”

 

14.6.1            The Purchaser agrees and undertakes that the name “TiGenix” shall be deleted from the Target Company’s corporate name not later than one (1) month after the Closing Date.

 

14.6.2            The Purchaser further agrees and undertakes not to use, and to cause the Target Company to permanently stop the use of, as soon as practicable and in any event within one (1) month following the Closing Date, (a) the name “TiGenix” or any similar expression or any derivative or abbreviation thereof, and/or (b) any of the logos attached as Schedule 14.6.2 (or any other logos incorporating the words “TiGenix”, “ChondroCelect” or “ChondroCelect Harvester”) in any manner whatsoever, including any commercial documentation and signs, except:

 

(i)                                  to the extent such name and/or logos are part of the packaging and labelling of the product “ChondroCelect”, for as long as the product “ChondroCelect” will continue to be manufactured by the Target Company, and

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

31

 

(ii)                               that such name and/or logos must be maintained on all documents (including but not limited to SOPs, WINs and other forms) that constitute “Licensed Technology” as defined in the CMO Contract, of which the Seller is (and will remain after the Closing Date) the exclusive owner.

 

14.7                     Standstill

 

The Purchaser undertakes that it shall not, and the Purchaser shall procure that its Affiliated Companies and its officers, directors, employees agents and advisors (and those of its Affiliated Companies) shall not until the expiry of a period of two (2) months following the Closing Date (or, as the case may be, following the date of termination of this Agreement in accordance with Clause 15), whether directly or indirectly, through intermediaries, persons or entities acting in concert, or otherwise, purchase or sell, offer to purchase or sell, agree to purchase or sell, or otherwise acquire or transfer, offer to acquire or transfer, or in any way assist any other person in acquiring or transferring, directly or indirectly, any shares, securities or other financial instruments of the Seller, or advise, assist or encourage or enter into any discussions, negotiations, agreements or arrangements with any other persons in connection with the foregoing. The Purchaser acknowledges that a breach of this Clause 14.7 may also constitute a violation of insider dealing and market abuse regulations applicable in Belgium or abroad and give rise to administrative and/or criminal sanctions.

 

14.8                     Reorganisation

 

The Purchaser agrees and undertakes not to (and shall cause the Target Company not to) dismiss or terminate the employment or services of any of the Target Company’s employees, temporary workers or consultants during a period of six (6) months after the Closing Date other than for serious cause, provided that the Seller complies with the terms and conditions of the CMO Contract.

 

15                               Termination

 

15.1                     Termination Events

 

15.1.1            This Agreement may be terminated at any time by mutual consent of the Seller and the Purchaser.

 

15.1.2            This Agreement may be terminated by the Seller in accordance with Clause 4.3.1 or Clause 10.3.2.

 

15.1.3            This Agreement may be terminated by any Party in accordance with Clause 5.5.2 (if any other Party does not fulfil its Closing Obligations).

 

If a termination notice has been given in accordance with Clause 5.5.2, this Agreement shall terminate on the expiration date of the notice period, unless the breach alleged by the terminating Party has been cured to the reasonable satisfaction of the terminating Party on or before such expiration date.

 

15.2                     Consequences of a Failure to Terminate this Agreement

 

No failure by a Party to exercise its right to terminate this Agreement under this Clause 15 shall constitute a waiver of any other rights and remedies available to that Party under this Agreement.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

32

 

15.3                     Effect of Termination

 

If this Agreement is terminated pursuant to this Clause 15:

 

15.3.1            all further obligations of the Parties under this Agreement shall terminate, except that the obligations set out in Clauses 14.4 (Confidentiality and Announcements), 16.6 (Expenses), 16.10 (Governing law) 16.12 (Jurisdiction) shall survive;

 

15.3.2            each Party shall be under the obligation to reimburse or return to the other Parties (or, as the case may be, to the Target Company) any sum of money or other assets it has received from the other Parties (or, as the case may be, from the Target Company) pursuant to this Agreement; and

 

15.3.3            each Party shall be under the obligation to return to the other Party (or, as the case may be, to the Target Company) any confidential information relating to the other Party (or, as the case may be, to the Target Company) it has received from the other Party (or, as the case may be, from the Target Company) during the due diligence or the negotiation of this Agreement or pursuant to this Agreement.

 

16                               Miscellaneous

 

16.1                     Rights and Remedies of the Parties

 

Each of the Parties agrees and acknowledges that its only right and remedy in relation to any representation, warranty or undertaking made or given in connection with this Agreement shall be for breach of the terms of this Agreement and each of the Parties hereby waives all other rights and remedies (including those in tort or arising under statute) in relation to any such representation, warranty or undertaking.

 

16.2                     Amendments and Waivers

 

16.2.1            No amendment to this Agreement shall be effective unless it is made in writing and signed by all Parties or their duly authorised representatives.

 

16.2.2            Except as otherwise provided herein, no failure or delay of a Party to exercise any right or remedy under this Agreement shall be considered as a waiver of such right or remedy, or any other right or remedy under this Agreement, nor shall any partial exercise of any right or remedy under this Agreement preclude any further exercise thereof or the exercise of any other right or remedy under this Agreement.

 

16.2.3            Except as otherwise provided herein, no waiver shall be effective unless it is given in writing and signed by the Party that gives the waiver or its duly authorised representative(s).

 

16.3                     Notices

 

16.3.1            Any notice in connection with this Agreement must be in writing in English and shall be validly given with respect to each Party if:

 

(i)                                  delivered by hand (with written confirmation of receipt) to the persons listed hereinafter;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

33

 

(ii)                               sent by e-mail (with confirmation by registered mail or an internationally recognised courier company within three Business Days) to the e-mail addresses and postal addresses set out hereinafter; or

 

(iii)                            sent by registered mail or an internationally recognised courier company to the addresses set out hereinafter;

 

or to such other addressee, e-mail address or postal address as a Party may notify to the other Parties in accordance with this Clause 16.3.

 

	
If to   the Seller:
    	
Name:
    	
TiGenix NV
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
Romeinse Straat 12, box   2, 3001 Heverlee (Leuven), Belgium
    
	
 
    	
 
    	
 
    
	
 
    	
Attention:
    	
Mr. Eduardo Bravo
    
	
 
    	
 
    	
 
    
	
 
    	
E-mail:
    	
eduardo.bravo@tigenix.com
    
	
 
    	
 
    	
 
    
	
With a copy to:
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    
	
If to   the Purchaser:
    	
Name:
    	
PharmaCell B.V.
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
Oxfordlaan 70, 6229EV   Maastricht, the Netherlands
    
	
 
    	
 
    	
 
    
	
 
    	
[***]:
    	
 
    
	
 
    	
 
    	
 
    
	
With a copy to:
    	
[***]
    	
 
    

 

16.3.2            Any notice shall be effective upon receipt and shall be deemed to have been received:

 

(i)                                  at the time of delivery, if delivered by hand or a courier company;

 

(ii)                               on the next Business Day (in the place to which it is sent) if sent by e-mail (provided, however, that if no confirmation is received within three (3) Business Days, the notice shall be deemed to have been received on the date when such confirmation is actually received);

 

(iii)                            on the first Business Day following the date of posting if sent by registered mail, provided that both the sender and the addressee reside or have their registered office in either Belgium or the Netherlands; or

 

(iv)                           on the third Business Day (in the place to which it is sent) following the date of posting if sent by registered mail where either the sender or the  addressee does not reside or have its registered office in Belgium or the Netherlands.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

34

 

16.4                     Interest on Overdue Amounts

 

Interest shall accrue automatically (without any formal notice to pay being required) on any overdue amount under this Agreement at the rate of two percent (2%) per year, calculated on the basis of a year of 365 days, from the due date up to the date of payment.

 

16.5                     Assignment of Rights and Obligations — Third Party Rights

 

16.5.1            Except as otherwise provided herein, no Party may assign all or part of its rights and obligations under this Agreement to any third party (through a sale, a contribution, a donation or any other transaction, including the sale or contribution of a division or of a business as a whole, a merger or a split) without the prior written consent of the other Parties (which consent shall not be unreasonably withheld or delayed). As long as such consent has not been obtained, the assigning Party shall continue to be liable for all obligations that it intended to assign (without prejudice to any other right or remedy that the other Parties may have for breach of this Clause 16.5.1).

 

16.5.2            However, notwithstanding the foregoing, any Party shall be allowed to assign all or part of its rights and obligations under this Agreement to any Affiliated Company, provided that such assignment is expressly stated to have effect only for so long as the assignee remains an Affiliated Company of the assigning Party.

 

16.5.3            Save as expressly otherwise stated, this Agreement does not contain any stipulation in favour of a third party (“derdenbeding”).

 

16.5.4            Subject to the assignment restrictions set out in this Clause 16.5, this Agreement is concluded for the benefit of the Parties and their respective successors and permitted assigns, and nothing herein is intended to or shall implicitly confer upon any other person any legal right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement, except to the extent expressly stated otherwise in this Agreement.

 

16.6                     Expenses

 

16.6.1            Each Party shall bear all costs and expenses incurred or to be incurred by it in connection with the negotiation, execution and performance of this Agreement.

 

16.6.2            The Purchaser bears the cost of all notarial fees and all registration, stamp and transfer taxes and duties or their equivalents in all jurisdictions where such fees, taxes and duties are payable as a result of the transactions contemplated by this Agreement. The Purchaser is responsible for arranging the payment of all such fees, taxes and duties, including fulfilling any administrative or reporting obligation imposed by the jurisdiction in question in connection with such payment. The Purchaser shall indemnify the Seller against any Loss suffered by the Seller as a result of the Purchaser failing to comply with its respective obligations under this Clause 16.6.2.

 

16.7                     Dutch Notary

 

The Parties are aware that the Dutch Notary holds office with Linklaters LLP, the Seller’s legal adviser in connection with the transaction contemplated by this Agreement. The 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

35

 

Parties hereby acknowledge that they have been informed of the existence of the Ordinance Containing Rules of Professional Conduct and Ethics (Verordening beroeps- en gedragsregels) of the Royal Professional Organisation of Civil Law Notaries (Koninklijke Notariële Beroepsorganisatie) and explicitly agree and acknowledge that:

 

16.7.1            Linklaters LLP may advise and act on behalf of the Seller with respect to this Agreement and the deed of transfer of the Shares, and any agreements or any disputes related to or resulting from this Agreement and/or the deed of transfer of the Shares;

 

16.7.2            the Dutch Notary shall execute the deed of transfer of the Shares pursuant to which the Shares will be transferred; and

 

16.7.3            the Dutch Notary shall act as “Depositary” under the Deposit Agreement.

 

16.8                     Severability

 

16.8.1            If any provision in this Agreement is held to be illegal, invalid or unenforceable, in whole or in part, under any applicable law, then such provision or part of it shall be deemed not to form part of this Agreement, and the legality, validity or enforceability of the remainder of this Agreement shall not be affected.

 

16.8.2            In such case, each Party shall use its best efforts to immediately negotiate in good faith a valid replacement provision that is as close as possible to the original intention of the Parties and has the same or as similar as possible economic effect.

 

16.9                     Entire Agreement

 

16.9.1            This Agreement (together with the documents referred to herein) contains the entire agreement between the Parties with respect to its subject matter.

 

16.9.2            Without prejudice to Clause 14.4.1, it replaces and annuls all prior agreements, communications, offers, proposals or correspondence, oral or written, exchanged or concluded between the Parties (including the Term Sheet) relating to the same subject matter.

 

16.10              Waiver of Rescission, Nullification and Amendment

 

Each Party waives any right to wholly or partly dissolve (“ontbinden”) or nullify (“vernietigen”) this Agreement or to demand the whole or partial dissolution (“ontbinding”) or nullification (“vernietiging”) in legal proceedings thereof pursuant to Sections 6:265 through 6:272 of the Dutch Civil Code and Section 6:228 of the Dutch Civil Code respectively, and waives any right to request amendment of the legal consequences of this Agreement pursuant to Section 6:230, subsection 2, of the Dutch Civil Code.

 

16.11              Governing Law

 

This Agreement and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with the laws of the European part of the Netherlands.

 

16.12              Jurisdiction

 

Any and all disputes arising out of or in connection with this Agreement (including a dispute relating to non-contractual obligations arising out of or in connection with this Agreement) 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

36

 

shall be — unless any imperative rule of law dictates otherwise — submitted to the exclusive jurisdiction of the authorized court in the district Limburg, location Maastricht, the Netherlands without prejudice to the right of appeal and that of appeal to the Supreme Court.

 

16.13              Counterparts

 

This Agreement may be signed in counterparts, in the number of originals stated hereinafter on the signature page. When taken together, the counterparts signed by all Parties shall constitute one and the same instrument.

 

16.14              Proxy to initial the Agreement and the Schedules

 

The Seller hereby gives a power-of-attorney to Mrs. An Moonen, its legal counsel, to initial on its behalf the pages of this Agreement and the Schedules to this Agreement.

 

This Agreement has been signed on 23 January 2014, in two (2) originals (one for the Seller and one for the Purchaser).

 

Each Party acknowledges receipt of its own original of this Agreement.

 

	
TiGenix NV
    represented   by:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Eduardo Bravo
    	
 
    
	
Name:
    	
Eduardo Bravo
    	
 
    
	
Title:
    	
CEO and attorney-in-fact
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PharmaCell   B.V.
    represented by:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Alexander Vos
    	
 
    
	
Name:
    	
Alexander Vos
    	
 
    
	
Title:
    	
CEO and attorney-in-fact
    	
 
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

37

 

Index of Schedules

 

	
Schedule (D)
    	
 
    	
Index of the Data Room
    
	
Schedule 1.1.1(i)
    	
 
    	
Closing Date Intra-group   Indebtedness
    
	
Schedule 1.1.1(ii)
    	
 
    	
Closing Date Working   Capital
    
	
Schedule 1.1.1(iii)
    	
 
    	
Draft CMO Contract
    
	
Schedule 1.1.3
    	
 
    	
Definition of Seller’s   knowledge (list of persons)
    
	
Schedule 3.2.5
    	
 
    	
Format of Closing   Accounts
    
	
Schedule 3.2.5(ii)
    	
 
    	
Valuation rules
    
	
Schedule 5.2.2
    	
 
    	
Dutch deed re: transfer   of the Shares
    
	
Schedule 6.2.2
    	
 
    	
Deposit Agreement
    
	
Schedule 7.4
    	
 
    	
Form of resignation   letter
    
	
Schedule 9
    	
 
    	
Purchaser’s   Representations
    
	
Schedule 10
    	
 
    	
Seller’s Representations
    
	
Schedule 14.4.5.
    	
 
    	
Press release
    
	
Schedule 14.6.2
    	
 
    	
Logos
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

38

 

Schedule (D): [***]

 

Schedule 1.1.1(i): [***]

 

Schedule 1.1.1(ii): [***]

 

Schedule 1.1.1(iii): [***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

39

 

Schedule 1.1.3: [***]

 

Schedule 3.2.5: [***]

 

Schedule 3.2.5(ii): [***]

 

Schedule 5.2.2: [***]

 

Schedule 6.2.2: [***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

40

 

Schedule 7.4: [***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

41

 

Schedule 9: Purchaser’s Representations

 

The Purchaser’s Representations set out in this Schedule are subject to the satisfaction of the conditions precedent set out in Clause 4.1 of the Agreement, which shall therefore limit their contents and scope.

 

(i)                                  This Agreement has been duly executed by the Purchaser and constitutes valid and binding obligations of the Purchaser, which are enforceable in accordance with its terms.

 

(ii)                               The Purchaser has taken all necessary corporate actions to approve or authorize, the entering into, and the execution and performance of this Agreement.

 

(iii)                            The execution and performance of this Agreement and the consummation of the transactions contemplated by this Agreement (a) do not violate any judgment applicable to the Purchaser or any agreement, obligation, or covenant to which the Purchaser is subject or a party, and/or (b) do not require the Purchaser to obtain any consent or approval from any public authority or other third party in connection with this Agreement, other than such approval and consent to which a specific reference is made in this Agreement or any such approval or consent which has been obtained and/or (c) will not, on Closing, conflict with, or result in any violation of the articles of association, by-laws or other corporate governance documents of the Purchaser.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

42

 

Schedule 10: Seller’s Representations

 

The Representations set out in this Schedule are subject to the matters referred to in Clause 10.3 of the Agreement (including the Data Room) and the satisfaction of the conditions precedent set out in Clause 4.1 of the Agreement, which shall therefore limit the contents and scope of the Representations.

 

1                                      Binding Effect of this Agreement

 

(i)                                   This Agreement has been duly executed by the Seller and constitutes valid and binding obligations of the Seller, which are enforceable in accordance with its terms.

 

(ii)                                The Seller has taken all necessary corporate actions to approve or authorize, the entering into, and the execution and performance of this Agreement.

 

(iii)                             The execution and performance of this Agreement and the consummation of the transactions contemplated by this Agreement (a) do not violate any judgment applicable to the Seller or any agreement, obligation, or covenant to which the Seller is subject or a party, and/or (b) do not require the Seller to obtain any consent or approval from any public authority or other third party in connection with this Agreement, other than such approval and consent to which a specific reference is made in this Agreement or any such approval or consent which has been obtained and/or (c) will not, on Closing, conflict with, or result in any violation of the articles of association, by-laws or other corporate governance documents of the Seller.

 

2                                      Corporate

 

2.1                            Existence and Organisation of the Target Company

 

(i)                                   The Target Company has been duly incorporated and is validly existing under the laws of the Netherlands.

 

(ii)                                The Shares constitute the whole share capital of the Target Company and have been fully paid up.

 

(iii)                             The Target Company has not been dissolved by any shareholders’ resolution or resolution of any other competent corporate body and no shareholders’ meeting or meeting of any other competent corporate body has been called for that purpose.

 

(iv)                            The Target Company has not been annulled or dissolved by any judicial decision. It has not been declared insolvent, bankrupt nor has it obtained a judicial restructuring.

 

2.2                            Ownership of and rights attached to the Shares

 

(i)                                   The Seller has full and exclusive ownership of the Shares.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

43

 

(ii)                                The Shares are free and clear of all pledges, security interests, usufructs or any other third party rights of any kind, except as provided for by law or the articles of association of the Target Company.

 

(iii)                             There are no restrictions affecting the rights attached to the Shares, other than those provided for by law or in the articles of association of the Target Company.

 

2.3                            Free Transferability of the Shares

 

Except as set out in the articles of association of the Target Company, the Shares are freely transferable and no shareholder or third party may exercise any right of first refusal in connection with the sale of the Shares to the Purchaser, or any call option on all or part of the Shares or any similar right.

 

3                                      Annual Accounts

 

(i)                                   The Annual Accounts were prepared in accordance with the law and regulations and generally accepted accounting principles of the Netherlands as applicable at the date as of which the Annual Accounts have been drawn up;

 

(ii)                                The Annual Accounts give a fair view of the assets, financial condition and results of the Target Company as per the date of the Annual Accounts;

 

(iii)                             The rate of depreciation adopted in the Annual Accounts is sufficient for each of the fixed assets of the Target Company to be written down to nil by the end of its expected useful life.

 

(iv)                            The stock of trade goods included in the Annual Accounts is valued on the basis of last known purchase prices.

 

(v)                               The method of valuing stock and the basis of depreciation and amortisation adopted in the Annual Accounts were the same as those adopted in the annual accounts for the two preceding financial years.

 

(vi)                            All dividends and distributions declared, made or paid by the Target Company at any time were, when declared, made or paid, in accordance with the requirements of general law and the articles of association of the Target Company.

 

4                                      Absence of Changes since the Date of the Annual Accounts 2012

 

Between the date of the Annual Accounts 2012 and the date of the Agreement:

 

(i)                                   the Target Company has not declared or paid any dividends or otherwise agreed to distribute any funds to any of its directors, shareholders or other securities holders;

 

(ii)                                the Target Company has not entered into any transaction or carried on any business outside the ordinary course of business;

 

(iii)                             the Target Company has not acquired or disposed of any material asset, except within the scope of its daily management or the ordinary course of business;

 

(iv)                            no unusual trade discounts or other unusual special terms have been incorporated into any contract entered into by the Target Company;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

44

 

(v)                               in the Target Company there has been no material increase or decrease in the levels of debtors or creditors or in the average collection or payment periods for the debtors and creditors respectively;

 

(vi)                            the Target Company has not incurred borrowings or indebtedness other than intra-group borrowings or indebtedness vis-à-vis the Seller or its Affiliates and the Target Company has not entered into any agreement or arrangement which establishes any guarantee, indemnity, suretyship, form of comfort or support (whether or not legally binding) given by the Target Company in respect of the obligations or solvency of any third party;

 

(vii)                         there has been no interruption or alteration in the nature, scope or manner of the Target Company’s business which business has been carried out in the ordinary and usual course of business in accordance with past practice;

 

(viii)                      the Target Company has not dismissed any employee and the Target Company is under no contractual obligation to change the terms of service of any employee.

 

(ix)                            there has been no change to the Target Company’s accounting policies or valuation rules.

 

5                                      Assets

 

(i)                                   All of the assets owned by the Target Company are the sole, absolute property of the Target Company and there is not outstanding any Encumbrance over the whole or any part of assets owned by the Target Company.

 

(ii)                                Without prejudice to Clause 7.6, the assets of the Target Company and the facilities and services to which the Target Company has an ownership or contractual right include all rights, properties, assets, facilities and services necessary for the carrying on of the business of the Target Company in the manner in which it is carried on as per the date of this Agreement.

 

(iii)                             All the plant, machinery, equipment and vehicles used by the Target Company in the conduct of its business:

 

(a)                              are, subject to normal wear and tear, in a good and safe state of repair and condition, are in good working order and have been regularly and properly maintained in accordance with the appropriate and material technical specifications, material safety regulations and the material terms and conditions of any applicable agreement;

 

(b)                              are capable of performing properly the function for which they are currently used; and

 

(c)                               are, to the Sellers’ knowledge, not obsolete or in need of renewal or expected to require replacement or repair within the six months following the date of this Agreement save as in the ordinary course of business.

 

(iv)                            None of the plant, machinery, equipment and vehicles included in the Annual Accounts 2012 has been sold or disposed.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

45

 

(v)                               The stock held by the Target Company is not excessive and is adequate in relation to the current trading requirements of the Target Company. None of that stock is obsolete, unusable, unmarketable or inappropriate to the current business of the Target Company and is all capable of being sold or used by the Target Company in the ordinary course of its business.

 

6                                      Taxes

 

(i)                                   The Target Company has filed with all competent Tax authorities all Tax returns and other documents that are required to be filed by it or to be made available in respect of all Taxes.

 

(ii)                                To the Seller’s knowledge, no audit or investigation with respect to Tax matters of the Target Company by any Tax authority is ongoing and the Seller has not been informed in writing by a Tax authority that it intends to conduct any such audit or investigation.

 

(iii)                             The Target Company is not a party to any agreement or arrangement with any Tax authority extending the period for the filing of any Tax return, or for the assessment or payment of any Taxes.

 

(iv)                            No dispute between the Target Company and the Tax authorities is ongoing.

 

(v)                               All Taxes which are due with respect to the Target Company have been timely paid or, where applicable, deducted, withheld or collected by it, except Taxes disputed in good faith and for which adequate reserves have been established.

 

7                                     Material Agreements

 

(i)                                   For the purposes of this Section 7 of this Schedule 10, an agreement shall be deemed to be a “Material Agreement” if (a) it involves a liability (of any nature whatsoever) for the Target Company in excess of twenty-five thousand euro (EUR 25,000) in aggregate, or (b) it is not capable of being terminated by the Target Company without compensation at any time with less than twelve (12) months’ notice.

 

(ii)                                To the Seller’s knowledge all Material Agreements are in full force and effect (subject to any applicable insolvency laws).

 

(iii)                             To the Seller’s knowledge, the Target Company has complied with the terms and conditions of the Material Agreements, except for such non-compliance that cannot reasonably be expected to have a material adverse effect on the Target Company.

 

(iv)                            The execution of and compliance with the terms of this Agreement will not conflict with or result in a breach of the terms of any existing agreement, arrangement or instrument binding on the Target Company, including the lease agreement of the facility.

 

8                                      Government Permits

 

(i)                                   The Target Company has obtained all material permits, licences, consents, approvals, registrations and authorisations that are required under any applicable 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

46

 

law to permit the Target Company to conduct its current business and to use its respective assets and property (the “Government Permits”). The Government Permits include at least:

 

·                                       the GMP certificate;

 

·                                       the manufacturing license (fabrikantenvergunning); and

 

·                                       the tissue establishment licence (erkenning als weefselinstelling).

 

(ii)                                The Target Company has not received any written notice from any public authority or other third party regarding any material violation of the terms of any Government Permit by the Target Company.

 

(iii)                             The Government Permits are in full force and effect, are not subject to any unusual conditions and have been complied with in all material respects.

 

(iv)                            To the Seller’s knowledge, as per the date of this Agreement there are no circumstances which indicate that any of the Government Permits will or are likely to be suspended, cancelled or revoked or not renewed, in whole or in part, in the ordinary course of events (whether as a result of the acquisition of the Shares by the Purchaser or otherwise).

 

(v)                               Since its incorporation, the Target Company has complied in all material respects with all applicable fire safety rules.

 

9                                      Environmental

 

(i)                                   For the purposes of this Section 9 of this Schedule 10:

 

“Environmental Laws” means all applicable laws, statutes and regulations concerning the protection of the environment or the generation, transportation, storage, treatment or disposal of Hazardous Substances.

 

“Hazardous Substance” means any natural or artificial substance which is likely to cause significant damage to the environment.

 

(ii)                                The Target Company has not received a written notice that it is in violation of any Environmental Laws.

 

(iii)                             The Target Company is not under the obligation to carry out any clean-up work or other remedial work with respect to any of the properties owned, leased or otherwise used by it.

 

10                               Properties

 

(i)                                   The Data Room contains a reference to all real property owned, leased or otherwise used by the Target Company.

 

(ii)                                The properties referred to in the Data Room are the only premises owned, controlled, used or occupied by the Target Company in connection with its existing business. There are no material disputes affecting any of such properties in which the Target Company is involved.

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

47

 

11                               Employment Matters

 

For the purpose of Sections 11 and 12 of this Schedule 10 the following words and expressions shall have the following meanings:

 

“Employees” means the persons employed by the Target Company on the basis of an employment contract with the Target Company;

 

“Employment Law” means all and any laws relating to or connected with the employment of employees and/or their health and safety at work;

 

“Employed Person” means any past or present officer or employee of the Target Company, including any person who is on secondment overseas; and

 

“Pension Arrangements” means each of the pension, retirement gratuity and termination indemnity schemes, plans or arrangements set out in the Data Room under documents numbered 6.1.3 to and including 6.1.16 (including all sub-numbers in this range).

 

(i)                                   As per 16 January 2014, the Target Company has no Employees other than listed under document number 6.5.37 of the Data Room, which also contains an overview of the age, functions, salaries and date of commencement of employment of Employees of the Target Company.

 

(ii)                                The Data Room contains details of (a) all remuneration and emoluments (including any bonus or commission entitlements or study commitments or car lease) payable and any other benefits (including, for the avoidance of doubt, permanent health insurance) provided by the Target company or which the Target Company is bound to provide to all Employees, together with the terms on which such remuneration emoluments and benefits are payable; and (b) any other material terms and conditions of employment or engagement of such persons.

 

(iii)                             There is no dispute between the Target Company and any trade union, employees’ representatives body or other organisation formed for a similar purpose representing any Target Company employee existing or pending.

 

(iv)                            Save as set out in the Data Room, there is no collective agreement (other than national or industry wide collective agreements) or other arrangement to which the Target Company is a party. The Target Company does not have a works council.

 

(v)                               The Target Company has not been notified in writing of any pending governmental investigations relating to employment matters before or by any commission, inspection or other administrative or governmental authority involving the Target Company.

 

(vi)                            There are no pending or, to the Seller’s knowledge, threatened claims of any type against the Target Company by any existing or former Employees or directors of the Target Company or by any existing or former consultants of the Target Company. More specifically no claim has been made against the Target Company for:

 

(a)                              breach of any contract of employment with any of its employees;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

48

 

(b)                              breach of a statutory employment right; or

 

(c)                               failure to comply with any order for the reinstatement or re-engagement of any of its current or former employees.

 

(vii)                         The Target Company has not breached any obligations imposed on it by Employment Law or any relevant collective agreements, recognition agreements and any employment contract applying to the Target Company, except for such non-compliance that cannot reasonably be expected to have a material adverse effect on the Target Company.

 

(viii)                      All bonus entitlement of the Employees over 2013, and earlier, accrued before the Closing Date are paid or will be paid by the Target Company prior to the Closing Date or will be provided for in the Closing Accounts.

 

(ix)                            As per the date of this Agreement, there are no Employees reported on long term illness leave (langdurig ziek) save as set forth under document numbers 6.5.24 and 6.5.37 of the Data Room.

 

(x)                               The Target Company is not involved in negotiations (whether with Employees or any trade union or other employees’ representatives) to vary the terms and conditions of employment or engagement of any of its Employees or consultants, nor has it made any representations, promises, offers or proposals to any of its Employees or consultants or to any trade union or other employees’ representatives concerning or affecting the terms and conditions of employment or engagement of any of its Employees or consultants.

 

(xi)                            The Target Company has not granted any incentive scheme, share option scheme (other than warrants issued by the Seller) or profit sharing or commission scheme to any of its Employees.

 

(xii)                         No Employee has resigned in the last three months preceding the date of this Agreement, nor has the Target Company received any notice of resignation from any Employee that has not expired on the date of this Agreement.

 

(xiii)                      The Target Company has discharged its obligations in full in relation to salary, wages, fees, commission, bonuses, overtime pay, holiday pay, sick pay and all other benefits and emoluments due and payable relating to its Employees, directors and consultants in respect of all periods preceding the date of this Agreement.

 

(xiv)                     As per the date of this Agreement no circumstances have arisen under which the Target Company is likely to be required to pay damages for wrongful dismissal or breach of contract, to make any contractual or statutory redundancy payment or make or pay any compensation in respect of unfair dismissal or to reinstate or re-engage any former Employee.

 

12                               Pensions

 

(i)                                   Other than any mandatory government or social security pension arrangements and the Pension Arrangements, there is no scheme, arrangement or agreement to 

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

49

 

which the Target Company is a party or by which it is bound or under which it has an obligation or liability (whether actual, contingent or prospective) to contribute or to provide funding for the provision of life assurance, retirement, death, disability or other similar benefits (in the form of a pension, lump sum, gratuity or otherwise) in respect of any Employed Person.

 

(ii)                                Details of the estimates of all benefits payable or contingently payable in respect of all Employed Persons under each of the Pension Arrangements, including any augmentations of benefits and details of any additional undertakings with regard to the provision of such benefits, have been disclosed.

 

(iii)                             The Target Company has complied with its obligations under the governing documentation of the relevant Pension Arrangement, except for such non-compliance that cannot reasonably be expected to have a material adverse effect on the Target Company.

 

(iv)                            Each of the Pension Arrangements complies with and has at all times complied with the provisions of the relevant legislation and Tax requirements governing or applicable to that Pension Arrangement, except for such non-compliance that cannot reasonably be expected to have a material adverse effect on the Target Company.

 

(v)                               Each of the Pension Arrangements which are pre-funded (whether by means of a book reserve or otherwise) have been funded to the extent recommended by the relevant actuarial person appointed in respect of the Pension Arrangement.

 

(vi)                            All amounts due and payable in respect of each of the Pension Arrangements or to any insurance company or other relevant third party in connection with each of the Pension Arrangements have been paid.

 

13                               Insurance Policies

 

(i)                                   To the Seller’s knowledge, all insurance policies contracted by the Target Company are in full force and effect.

 

(ii)                                Without prejudice to Clause 7.5 of this Agreement, all material assets of an insurable nature owned by the Target Company on the Closing Date are adequately insured against fire and other risks customarily insured against by companies conducting a business similar to the business conducted by the Target Company.

 

(iii)                             No notification has been received with regard to the non-renewal of any insurance policy contracted by the Target Company or continuation or renewal on less favourable terms and conditions.

 

14                               Intellectual Property

 

(i)                                   For the purposes of this Section 14 “Intellectual Property” means all intellectual property rights, whether protected, created or arising under the laws of the Netherlands or any other jurisdiction anywhere in the world, including:

 

(a)                              patent registrations and applications;

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

50

 

(b)                              design registrations, unregistered design rights and design application;

 

(c)                               copyright registrations, non-registered copyrights and applications;

 

(d)                              registrations of and applications for trade names, trademarks, service names and service marks;

 

(e)                               technology; and

 

(f)                                domain names.

 

(ii)                                Except for the logos, names and any derivatives thereof referred to in Clause 14.6 of the Agreement, to the Seller’s knowledge, the Target Company owns or has the right to use all Intellectual Property currently used for the operation of its business.

 

(iii)                             To the Seller’s knowledge the Target Company has not received any formal notice alleging that it infringes any Intellectual Property rights of third parties in the course of its business.

 

15                               Litigation

 

To the Seller’s knowledge and except as claimant in the collection of debt arising in the ordinary course of business,  no material lawsuit, arbitration, administrative proceedings or other legal proceedings involving the Target Company is pending before any court, arbitral tribunal or any other competent authority.

 

16                               Information

 

(i)                                   The Data Room has been prepared by the Seller in good faith and the information contained in the Data Room is true and accurate.

 

(ii)                                To the Seller’s knowledge, on the date of this Agreement there is no fact that would be materially relevant to a professional and experienced person interested in purchasing the Shares, which has not been disclosed to the Purchaser in this Agreement, in the Data Room, or during the site visits, expert sessions or Q&A process and which, if it had been disclosed, can reasonably be expected to cause such person not to proceed with purchasing the Shares.

 

Schedule 14.4.5: [***]

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

51

 

Schedule 14.6.2:

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

52

 

Table of Contents

 

	
1
    	
Definitions   and Interpretation
    	
2
    
	
 
    	
 
    	
 
    
	
1.1
    	
Definitions
    	
2
    
	
1.2
    	
Interpretation
    	
5
    
	
 
    	
 
    	
 
    
	
2
    	
Sale and   Purchase
    	
6
    
	
 
    	
 
    	
 
    
	
2.1
    	
The   Shares
    	
6
    
	
 
    	
 
    	
 
    
	
3
    	
Purchase Price
    	
7
    
	
 
    	
 
    	
 
    
	
3.1
    	
Aggregate   Amount of the Purchase Price
    	
7
    
	
3.2
    	
Post-Closing   Purchase Price Adjustment
    	
7
    
	
3.3
    	
Payment   of the Purchase Price
    	
11
    
	
3.4
    	
Bank   guarantee
    	
12
    
	
 
    	
 
    	
 
    
	
4
    	
Conditions   Precedent
    	
12
    
	
 
    	
 
    	
 
    
	
4.1
    	
General   Principles
    	
12
    
	
4.2
    	
Best   Efforts concerning the Satisfaction of the Conditions Precedent
    	
12
    
	
4.3
    	
Non-Satisfaction
    	
13
    
	
 
    	
 
    	
 
    
	
5
    	
Closing
    	
13
    
	
 
    	
 
    	
 
    
	
5.1
    	
Date and   Place
    	
13
    
	
5.2
    	
Seller’s   Closing Obligations
    	
13
    
	
5.3
    	
Purchaser’s   Closing Obligations
    	
14
    
	
5.4
    	
Waiver   of Closing Obligations
    	
14
    
	
5.5
    	
Breach   of Closing Obligations
    	
14
    
	
 
    	
 
    	
 
    
	
6
    	
Undertakings   of all Parties prior to or at the Closing Date
    	
15
    
	
 
    	
 
    	
 
    
	
6.1
    	
Filings   with Public Authorities
    	
15
    
	
6.2
    	
Other   Agreements
    	
15
    
	
 
    	
 
    	
 
    
	
7
    	
Undertakings   of the Seller prior to or at the Closing Date
    	
16
    
	
 
    	
 
    	
 
    
	
7.1
    	
Collaboration
    	
16
    
	
7.2
    	
Operation   of the Business
    	
16
    
	
7.3
    	
Restrictions   on the Seller and the Target Company
    	
16
    
	
7.4
    	
Directors’   Resignation
    	
17
    
	
7.5
    	
Replacement   of insurance coverage
    	
17
    
	
7.6
    	
Intra-group   services
    	
17
    
	
7.7
    	
Intragroup   indebtedness
    	
18
    
	
7.8
    	
Release   of guarantees
    	
18
    
	
7.9
    	
Annual   Accounts 2013
    	
18
    
	
 
    	
 
    	
 
    
	
8
    	
Undertakings   of the Purchaser prior to or at the Closing Date
    	
18
    
	
 
    	
 
    	
 
    
	
8.1
    	
General   Meeting of the Target Company
    	
18
    
	
8.2
    	
Release   of Seller’s Guarantee for the benefit of [***]
    	
18
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

53

 

	
9
    	
Purchaser’s   Representations
    	
18
    
	
 
    	
 
    	
 
    
	
10
    	
Seller’s   Representations
    	
19
    
	
 
    	
 
    	
 
    
	
10.1
    	
General   Principles
    	
19
    
	
10.2
    	
Non Conformity
    	
19
    
	
10.3
    	
Seller’s Disclosures
    	
19
    
	
10.4
    	
Updating   of Representations to Closing
    	
21
    
	
10.5
    	
Purchaser’s   Knowledge of certain Matters
    	
21
    
	
10.6
    	
Notification   by the Purchaser of Breaches of Representations
    	
21
    
	
 
    	
 
    	
 
    
	
11
    	
Indemnification
    	
22
    
	
 
    	
 
    	
 
    
	
11.1
    	
General   Principle
    	
22
    
	
11.2
    	
Double Claims
    	
22
    
	
11.3
    	
Nature   of any Payment to the Purchaser
    	
22
    
	
11.4
    	
No   Assignment of Indemnification Rights to any Subsequent Transferee of the   Shares
    	
22
    
	
11.5
    	
Specific   Indemnities
    	
22
    
	
 
    	
 
    	
 
    
	
12
    	
Limitation of   Seller’s Liability
    	
23
    
	
 
    	
 
    	
 
    
	
12.1
    	
Time   Limitations
    	
23
    
	
12.2
    	
Minimum   Claims
    	
24
    
	
12.3
    	
Aggregate   Minimum Claims
    	
24
    
	
12.4
    	
Maximum   Liability
    	
24
    
	
12.5
    	
Contingent   Liabilities
    	
24
    
	
12.6
    	
Adjustment of the Purchase   Price
    	
24
    
	
12.7
    	
Tax   Savings arising from the Losses
    	
25
    
	
12.8
    	
Insurance   Proceeds and Other Recoveries from Third Parties
    	
25
    
	
12.9
    	
Matters   Arising Subsequent to this Agreement
    	
26
    
	
12.10
    	
Fraud
    	
26
    
	
12.11
    	
Mitigation   of Losses
    	
26
    
	
 
    	
 
    	
 
    
	
13
    	
Claims by the   Purchaser
    	
27
    
	
 
    	
 
    	
 
    
	
13.1
    	
Notification   of Claims
    	
27
    
	
13.2
    	
Third   Party Claims
    	
27
    
	
13.3
    	
Seller’s   Access to the Target Company
    	
28
    
	
13.4
    	
Notification   of Seller’s Objections
    	
29
    
	
13.5
    	
Disagreement   on a Claim
    	
29
    
	
13.6
    	
Payment   by the Seller
    	
29
    
	
 
    	
 
    	
 
    
	
14
    	
Undertakings   of the Parties Extending after the Closing Date
    	
29
    
	
 
    	
 
    	
 
    
	
14.1
    	
Payment   of Intra-group Indebtedness by the Target Company
    	
29
    
	
14.2
    	
Payment   of the Second Tranche
    	
29
    
	
14.3
    	
Further   Assurances
    	
30
    
	
14.4
    	
Confidentiality   and Announcements
    	
30
    
	
14.5
    	
Tax Returns regarding   Pre-Closing Date Tax Return Periods
    	
31
    
	
14.6
    	
Use of   the name “TiGenix”
    	
31
    
	
14.7
    	
Standstill
    	
32
    
	
14.8
    	
Reorganisation
    	
32
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

54

 

	
15
    	
Termination
    	
32
    
	
 
    	
 
    	
 
    
	
15.1
    	
Termination Events
    	
32
    
	
15.2
    	
Consequences   of a Failure to Terminate this Agreement
    	
32
    
	
15.3
    	
Effect   of Termination
    	
33
    
	
 
    	
 
    	
 
    
	
16
    	
Miscellaneous
    	
33
    
	
 
    	
 
    	
 
    
	
16.1
    	
Rights   and Remedies of the Parties
    	
33
    
	
16.2
    	
Amendments   and Waivers
    	
33
    
	
16.3
    	
Notices
    	
33
    
	
16.4
    	
Interest   on Overdue Amounts
    	
35
    
	
16.5
    	
Assignment   of Rights and Obligations — Third Party Rights
    	
35
    
	
16.6
    	
Expenses
    	
35
    
	
16.7
    	
Dutch   Notary
    	
35
    
	
16.8
    	
Severability
    	
36
    
	
16.9
    	
Entire   Agreement
    	
36
    
	
16.10
    	
Waiver   of Rescission, Nullification and Amendment
    	
36
    
	
16.11
    	
Governing   Law
    	
36
    
	
16.12
    	
Jurisdiction
    	
36
    
	
16.13
    	
Counterparts
    	
37
    
	
16.14
    	
Proxy to   initial the Agreement and the Schedules
    	
37
    
	
 
    	
 
    	
 
    
	
Index of Schedules
    	
38
    
	
 
    	
 
    
	
Schedule 1.1.1(i): Closing Date Intra-Group   Indebtedness
    	
39
    
	
 
    	
 
    
	
Schedule 1.1.1(ii): Closing Date Working Capital
    	
39
    
	
 
    	
 
    
	
Schedule 1.1.3: Definition of Seller’s Knowledge (list of   persons)
    	
40
    
	
 
    	
 
    
	
Schedule 7.4: Form of Resignation Letter
    	
41
    
	
 
    	
 
    
	
Schedule 9: Purchaser’s Representations
    	
42
    
	
 
    	
 
    
	
Schedule 10: Seller’s Representations
    	
43
    
	
 
    	
 
    	
 
    
	
1
    	
Binding Effect   of this Agreement
    	
43
    
	
 
    	
 
    	
 
    
	
2
    	
Corporate
    	
43
    
	
 
    	
 
    	
 
    
	
2.1
    	
Existence   and Organisation of the Target Company
    	
43
    
	
2.2
    	
Ownership   of and rights attached to the Shares
    	
43
    
	
2.3
    	
Free   Transferability of the Shares
    	
44
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

55

 

	
3
    	
Annual   Accounts
    	
44
    
	
 
    	
 
    	
 
    
	
4
    	
Absence of   Changes since the Date of the Annual Accounts 2012
    	
44
    
	
 
    	
 
    	
 
    
	
5
    	
Assets
    	
45
    
	
 
    	
 
    	
 
    
	
6
    	
Taxes
    	
46
    
	
 
    	
 
    	
 
    
	
7
    	
Material   Agreements
    	
46
    
	
 
    	
 
    	
 
    
	
8
    	
Government   Permits
    	
46
    
	
 
    	
 
    	
 
    
	
9
    	
Environmental
    	
47
    
	
 
    	
 
    	
 
    
	
10
    	
Properties
    	
47
    
	
 
    	
 
    	
 
    
	
11
    	
Employment   Matters
    	
48
    
	
 
    	
 
    	
 
    
	
12
    	
Pensions
    	
49
    
	
 
    	
 
    	
 
    
	
13
    	
Insurance   Policies
    	
50
    
	
 
    	
 
    	
 
    
	
14
    	
Intellectual   Property
    	
50
    
	
 
    	
 
    	
 
    
	
15
    	
Litigation
    	
51
    
	
 
    	
 
    	
 
    
	
16
    	
Information
    	
51
    
	
 
    	
 
    	
 
    
	
Schedule 14.6.2: Logos
    	
52
    
	
 
    	
 
    
	
Table of Contents
    	
53
    

 

[***] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to omitted portions.

 

56

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}]]