Document:

exv10w19a

 

Exhibit 10.19A

Series A

Therapeutic Genomics, Inc.

SERIES A CONVERTIBLE PREFERRED

STOCK PURCHASE AGREEMENT

DECEMBER 28, 1999

 

 

     Series A Convertible Preferred Stock Purchase Agreement dated as of December 28, 1999
by and between Therapeutic Genomics, Inc., a Delaware corporation (the “Company”), and those
entities listed, on Schedule I attached hereto (each, individually, a “Purchaser” and
collectively, the “Purchasers”).

     WHEREAS, the Company wishes to issue and sell to the Purchasers, and the Purchasers wish to
purchase on the terms and subject to the conditions set forth in this Agreement, an aggregate of
up to 3,500,000 shares (the “Preferred Shares”) of the authorized but unissued
Series A Convertible Preferred Stock, $0.01 par value, of the Company (the “Preferred Stock”);

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in
this Agreement, the parties agree as follows:

ARTICLE I

THE PREFERRED SHARES

     Section 1.01 Authorization, Issuance, Sale and Delivery of the Preferred Shares.

          (a) The
Company shall adopt and file with the Secretary of State of the State of Delaware on
or before the Initial Closing Date (as hereinafter defined) a certificate pursuant to Section
151(g) of the Delaware General Corporation Law setting forth the terms of the Preferred Stock, in
the form attached hereto as Exhibit A (the
“Certificate of Designations”).

          (b) Subject to the terms and conditions hereinafter set forth, the Company hereby agrees to
issue and sell to each Purchaser, and each Purchaser (severally and not jointly) hereby agrees to
purchase from the Company, the number of Preferred Shares set forth opposite the name of such
Purchaser on Schedule I, at the purchase price of $2.00 per
share (the “Purchase Price”).

     Section 1.02
Closings. The initial closing of the purchase and sale of Preferred Shares
shall take place at the offices of Peabody & Arnold llp, 50 Rowes Wharf, Boston, Massachusetts
02110, at 11:00 a.m. on December 22, 1999, or at such other
location, date and time as may be agreed
upon between the Purchaser and the Company (such closing being called the “Initial Closing” and
such date and time being called the “Initial Closing Date”).

          (b) If less than all of the authorized number of Preferred Shares are sold at the Initial
Closing, the Company may in its sole discretion, at a one or more additional closings to take place
at the offices of Peabody & Arnold, 50 Rowes Wharf, Boston, Massachusetts, on or before February
29, 2000 (each such closing, together with the Initial Closing, being called a “Closing” and such
date and time, together with the Initial Closing Date, being called a “Closing Date”) issue and
sell to those Purchasers who elect to purchase additional Preferred Shares and/or one or more
additional Purchasers who elect to become parties to this Agreement, by executing a counterpart
hereof and causing Schedule I to be amended appropriately, any or all of the Preferred Shares not
purchased at the Initial Closing.

     Section 1.03  Delivery of Certificates; Payment of Purchase Price. At each Closing,
the Company shall issue and deliver to each Purchaser purchasing Preferred Shares at such Closing a

 

 

stock certificate or
certificates in definitive form, registered in the name of such Purchaser or
as directed by such Purchaser, representing the Preferred Shares being purchased by such Purchaser
at such Closing. As payment in full for the Preferred Shares being purchased by it at each Closing,
and against delivery of the stock certificate or certificates therefor as aforesaid, on each
Closing Date each Purchaser shall deliver to the Company check payable to the order of the Company
in the amount of, or shall cause to be transferred to the Purchase Price for the Preferred Shares
so purchased in cash, by wire transfer of funds, by the cancellation of debt from the Company to
such Purchaser, or by any combination thereof.

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The
Company represents and warrants to the Purchaser that:

     Section 2.01
Organization and Corporate Power. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the State of Delaware. The
Company is not a successor to any entity (including, without limitation, International Genetics
Associates, Inc., a Virginia corporation (“IGA”)) and claims no rights or ownership interest in any
assets of any such predecessor entity. The Company has the corporate power and authority to own and
hold its properties and to carry on its business as now conducted and as proposed to be conducted,
to execute, deliver and perform this Agreement, to issue, sell and deliver the Preferred Shares and
to issue and deliver the shares of Common Stock, $0.01 par value, of the Company (the “Common
Stock”) issuable upon conversion of the Preferred Shares (the
“Conversion Shares”).

     Section 2.02 Authorization of Agreements, etc.

          (a) The execution and delivery by the Company of this Agreement, of the Registration
Rights Agreement (as such term is defined below) and of the Stockholders’ Agreement (as such term
is defined below), the performance by the Company of its obligations hereunder and thereunder, the
issuance, sale and delivery of the Preferred Shares and the issuance and delivery of the Conversion
Shares have been duly authorized by all requisite corporate action and will not violate any
provision of any law applicable to the Company, any order of any court or other agency of
government applicable to the Company, the Certificate of Incorporation of the Company (the
“Charter”), or the By-laws of the Company (the “By-laws”), or any provision of any indenture,
agreement or other instrument to which the Company is bound, or conflict with, result in a breach
of or constitute (with due notice or lapse of time or both) a default under any such indenture,
agreement or other instrument, or result in the creation or imposition of any lien, charge,
restriction, claim or encumbrance of any nature whatsoever upon any of the properties or assets of
the Company.

          (b) The Preferred Shares have been duly authorized and, when issued in accordance with this
Agreement, will be validly issued, fully paid and nonassessable shares of Preferred Stock with no
personal liability attaching to the ownership thereof and will be fee and clear of all liens,
charges, restrictions, claims and encumbrances imposed by or through the Company. The Conversion
Shares have been duly reserved for issuance upon conversion of the

 

 

Preferred Shares and, when so
issued, will be duly authorized, validly issued, fully paid and
nonassessable shares of Common Stock with no personal liability attaching to the ownership thereof
and will be free and clear of all liens, charges, restrictions, claims and encumbrances imposed by
or through the Company. Neither the issuance, sale or delivery of the Preferred Shares nor the
issuance or delivery of the Conversion Shares is subject to any preemptive right of stockholders of
the Company or to any right of first refusal or other right in favor of any person which has not
been effectively waived.

     Section 2.03
Validity. This Agreement has been duly executed and delivered by the Company
and each of this Agreement, the Registration Rights Agreement (when executed and delivered as
hereinafter contemplated) and the Stockholders’ Agreement (when executed and delivered as
hereinafter contemplated) constitutes the legal, valid and binding obligations of the Company,
enforceable in accordance with its respective terms.

     Section 2.04
Authorized Capital Stock. The authorized capital stock of the Company
consists of 12,000,000 shares of Common Stock and 8,000,000 shares of Preferred Stock; 3,500,000
shares of Preferred Stock have been designated Series A Convertible Preferred Stock and 4,500,000
shares of Preferred Stock remain undesignated. Immediately prior to the Closing, 888,000 shares of
Common Stock will be validly issued and outstanding, and no other shares of Common Stock or
Preferred Stock will have been issued. There have been reserved for
issuance (i) on or before March 1, 2000, 112,000 shares of Common Stock (the “Reserved Founders Shares”) to persons to be designated
by Kenneth C. Carter (the “Founder”) (to the issuance of which the Purchasers, by their execution of
this Agreement, shall be deemed to have consented), and (ii) under the Company’s 1999 Stock Plan
(the “1999 Plan”), an aggregate of 625,000 shares of Common Stock. No subscription, warrant,
option, convertible security, or other right (contingent or other) to purchase or otherwise acquire
from the Company (or, to the best of the Company’s knowledge, from any other person or entity) any
equity securities of the Company is outstanding and there is no commitment by the Company to issue
shares, subscriptions, warrants, options, convertible securities, or other such rights or to
distribute to holders of any of its equity securities any evidence of
indebtedness or asset. The
Company has no obligation (contingent or other) to purchase, redeem or otherwise acquire any of its
equity securities or any interest therein or to pay any dividend or make any other distribution in
respect thereof.

     Section 2.05 Litigation, Compliance with Law. There is no (i) action, suit, claim,
proceeding or investigation pending or, to the best of the Company’s knowledge, threatened against
or affecting the Company or the Founder (as such term is hereinafter defined), at law or in equity,
or before or by any Federal, state, municipal or other governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, (ii) arbitration proceeding relating to the
Company pending under collective bargaining agreements or otherwise, or (iii) governmental inquiry
pending or, to the best of the Company’s knowledge, threatened against or affecting the Company
(including without limitation any inquiry as to the qualification of the Company to hold or receive
any governmental license or permit), and, to the best of the Company’s knowledge, there is no basis
for any of the foregoing. The Company is not in default with respect to any order, writ, injunction
or decree known to or served upon the Company of any court or of any Federal, state, municipal or
other governmental department, commission, board, bureau, agency or instrumentality, domestic or
foreign. There is no action or suit by the Company pending or threatened against others.

 

 

     Section 2.06  Proprietary Information of Third Parties. To the best of the Company’s
knowledge, no third party (including, without limitation, IGA) has claimed or has reason
to claim that the Founder or any other person employed by or affiliated with the Company has (a)
violated or may be violating any of the terms or conditions of his or her employment,
non-competition or nondisclosure agreement with such .third party, (b) disclosed or may be
disclosing or utilized or may be utilizing any trade secret or proprietary information or
documentation of such third party or (c) interfered or may be interfering in the employment
relationship between such third party and any of its present or former employees. No third party
has requested information from the Company which suggests that such a claim might be contemplated.
To the best of the Company’s knowledge, no person employed by or retained as a consultant by the
Company has utilized or proposes to utilize any trade secret or any information or documentation
proprietary to any third party (including, without limitation, IGA), and to the best of the
Company’s knowledge, no person employed by or retained as a consultant by the Company has violated
any confidential relationship which such person may have had with any third party, in connection
with the development, manufacture or sale by the Company of any product or proposed product or the
development or sale by the Company of any service or proposed service of the Company, and the
Company has no reason to believe there will be any such utilization or violation.

     Section 2.07
Governmental Approvals. Subject to the accuracy of the representations
and warranties-of the Purchaser set forth in Article III no registration or filing with, or
consent or approval of or other action by, any Federal, state or other governmental agency or
instrumentality is or will be necessary for the valid execution, delivery and performance by the
Company of this Agreement, the issuance, sale and delivery of the Preferred Shares or, upon
conversion thereof, the issuance and delivery of the Conversion Shares, other than the filing of
any notice that may be required pursuant to federal and state securities laws in connection with
the sale of the Preferred Shares.

     Section 2.08 Offering of the Preferred Shares.

     Neither the Company nor any person authorized or employed by the Company as agent broker,
dealer or otherwise in connection with the offering or sale of the Preferred Shares or any security
of the Company similar to the Preferred Shares has offered the Preferred Shares or any such similar
security for sale to, or solicited any offer to buy the Preferred Shares or any such similar
security from, or otherwise approached or negotiated with respect thereto with, any person or
persons, and neither the Company nor any person acting on its behalf has taken or will take any
other action (including, without limitation, any offer, issuance or sale of any security of the
Company under circumstances which might require the integration of such security with Preferred
Shares under the Securities Act of 1933, as amended (the “Securities Act”) or the rules and
regulations of the Securities and Exchange Commission (the “Commission”) thereunder), in either
case so as to subject the offering, issuance or sale of the Preferred Shares to the registration
provisions of the Securities Act.

     Section 2.09 Qualified Small Business Status.

     The Company qualifies as a “Qualified Small Business” as defined in Section 1202(d) of the
Internal Revenue Code of 1986, as amended (the “Code”).

 

 

     Section 2.10 Brokers. Neither the Company nor the Founder has any contract,
arrangement or understanding with any broker, finder or similar agent pursuant to which the
Company or the Purchaser shall be obligated to make any payment to any such broker, finder or
similar agent with respect to the transactions contemplated by this Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

     Each Purchaser, severally and not jointly, represents and warrants to the Company, with
respect only to itself, that:

          (a) such Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D
under the Securities Act;

          (b) such Purchaser has sufficient knowledge and experience in investing in companies similar
to the Company so as to be able to evaluate the risks and merits of its investment in the Company
and is able financially to bear the risks thereof;

          (c) such Purchaser has had an opportunity to discuss the Company’s business, management and
financial affairs with the Founder,

          (d) the Preferred Shares being purchased by such Purchaser are being acquired for its own
account for the purpose of investment and not with a view to or for sale in connection with any
distribution thereof;

          (e) such Purchaser understands that (i) the Preferred Shares and the Conversion Shares have
not been registered under the Securities Act by reason of their issuance in a transaction exempt
from the registration requirements of the Securities Act pursuant to Section 4(2) thereof or Rule
505 or 506 promulgated under the Securities Act, (ii) the Preferred Shares and, upon conversion
thereof, the Conversion Shares must be held indefinitely unless a subsequent disposition thereof is
registered under the Securities. Act or is exempt from such registration, (iii) the Preferred
Shares and the Conversion Shares will bear a legend to such effect and (iv) the Company will make a
notation on its transfer books to such effect;

          (f) such Purchaser has no present need for liquidity in connection with its purchase of the
Preferred Shares; and

          (g) the purchase of the Preferred Shares is consistent with the general investment objectives
of such Purchaser, and such Purchaser understands that the purchase of the Preferred Shares
involves a high degree of risk, and there may never be an established market for the Company’s
capital stock.

 

 

ARTICLE IV

CONDITIONS TO THE OBLIGATIONS

OF THE PURCHASERS

     The obligation of each Purchaser to purchase and pay for the Preferred Shares being purchased
by such Purchaser at a Closing is, at such Purchaser’s option, subject to the satisfaction, on or
before the Closing Date, of the following conditions:

     Section 4.01
Representations and Warranties to be True and Correct. The
representations and warranties contained in Article II shall be true, complete and correct in all
material respects on and as of the Closing Date with the same effect as though such representations
and warranties had been made on and as of such date, and the President and Treasurer of
the Company shall have certified to such effect to the Purchasers in writing on behalf of the
Company.

     Section 4.02 Performance. The Company shall have performed and complied in all
material respects with all agreements contained herein required to be performed or complied with by
it prior to or at the Closing Date, and the President and Treasurer of the Company shall have
certified to the Purchasers in writing to such effect on behalf of the Company.

     Section 4.03
Preemptive Rights. Any preemptive, first refusal or other rights with respect
to the issuance of the Preferred Shares or the Conversion Shares shall have been irrevocably
waived.

     Section 4.04 Founders’ Agreement.

     The Founder shall have executed and delivered to the Company a Confidentiality.
Assignment of Inventions and Non-Competition Agreement in the form attached hereto as
Exhibit B.

     Section 4.05
Registration Rights Agreement.

     The
Company shall have executed and delivered to the Purchasers a Registration Rights
Agreement in the form attached hereto as Exhibit C (the “Registration Rights Agreement”).

     Section 4.06
Stockholders’ Agreement, Board of Directors.

     The Company and the Founder shall have executed and delivered to the Purchasers a
Stockholders’ Agreement in the form attached hereto as Exhibit D (the “Stockholders’
Agreement”). As of the Closing Date, the number of directors constituting the Company’s Board of
Directors (the “Board”) shall have been set at 5 and the following persons shall have been elected
to the Board: Kenneth C. Carter, Alan G. Walton, Bradley G. Lorimier, and Bill Scott, with one
vacancy to be filled as provided in the Stockholders’ Agreement.

 

 

     Section 4.07 Gene Logic License

     The Company shall have entered into a license agreement, in form satisfactory to the
Purchasers, for the use of the proprietary differential display database of Gene Logic Corp. (the
“Gene Logic License”). In connection with the Gene Logic License and as partial consideration
therefor, the Company may issue to Gene Logic Corp. Preferred Shares (to the issuance of which the
Purchasers, by their execution of this Agreement, shall be deemed to have consented).

     Section 4.08 All Proceedings to be Satisfactory. All corporate and other
proceedings to be taken by the Company in connection with the transactions contemplated hereby and
all documents incident thereto shall be reasonably satisfactory in form and substance to the
Purchaser and its counsel.

ARTICLE V

COVENANTS OF THE COMPANY

     The Company covenants and agrees with each Purchaser that so long as such Purchaser owns any
of the Preferred Shares or Conversion Shares:

     Section 5.01
Financial Statements, Reports, etc. The Company shall furnish to each
Purchaser, within 90 days after the end of each fiscal year of the Company, a consolidated balance
sheet of the Company and its subsidiaries, if any, as of the end of such fiscal year and the
related consolidated statements of income, stockholders’ equity and cash flows for the fiscal year
then ended, prepared in accordance with generally accepted accounting principles and audited by a
firm of independent public accountants reasonably acceptable to the
Purchaser.

          (b) As
soon as available, but in any event not later than 45 days after the end of each of
the first three quarters of each fiscal year, the Company shall furnish to each Purchaser that
holds at least 250,000 Preferred Shares and/or Conversion Shares the unaudited balance sheet of the
Company as at the end of each such period and the related unaudited consolidated statement of
operations, shareholders’ equity and changes in cash flows of the Company for such quarterly period
and for the elapsed period in such fiscal year, all in reasonable detail and stating in comparative
form the figures as at the end of and for the comparable periods of the preceding fiscal year and
to the current year’s budget.

          (c) As
soon as available, but in any event not later than 20 days after
the end of each of
month commencing with January 2000, the Company shall furnish to
each Purchaser that holds at least
250,000 Preferred Shares and/or Conversion Shares the unaudited summary balance sheet of the
Company as at the end of each such month and the related unaudited summary consolidated statement
of operations, shareholders’ equity and changes in cash flows of the Company for such month.

          (d) As soon as available, but in any event not later than 60 days prior to the end of each
fiscal year of the Company, the Company shall furnish to each Purchaser the financial plan of the
Company for the next succeeding fiscal year, including but not limited to a cash flow projection,
operating budget and balance sheet calculated monthly, as contained in its operating plan approved
by the Board.

 

 

          (e) The obligations of the Company to furnish financial information to the Purchaser
pursuant to this Section 5.01 shall terminate upon the earlier to occur of (i) the completion of
a firm commitment underwritten public offering of the Company’s securities pursuant to which the
aggregate price paid by the public for the purchase of securities is at least $ 15,000,000 (a
“Qualified IPO”) and (ii) such time as the Company becomes subject to the reporting requirements
of the Securities Exchange Act of 1934.

     Section 5.02
Reserve for Conversion of Shares. The Company shall at all times reserve and
keep available out of its authorized but unissued shares of Common Stock, for the purpose of
effecting the conversion of the Preferred Shares and otherwise complying with the terms of this
Agreement, such number of its duly authorized shares of Common Stock as shall be sufficient to
effect the conversion of the Preferred Shares from time to time outstanding or otherwise to comply
with the terms of this Agreement. If at any time the number of authorized but unissued shares of
Common Stock shall not be sufficient to effect the conversion of the Preferred Shares or otherwise
to comply with the terms of this Agreement, the Company will forthwith take such corporate action as
may be necessary to increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purposes. The Company will obtain any authorization,
consent, approval or other action by or make any filing with any court or administrative body that
may be required under applicable state securities laws in connection with the issuance of shares
of Common Stock upon conversion of the Preferred Shares.

     Section 5.03
Inspection, Consultation and Advice. The Company shall permit and cause each of its subsidiaries (if any) to permit each
Purchaser that (alone or together with its affiliates) holds at least 250,000 Preferred Shares
and/or Conversion Shares (and such professional advisers as any such Purchaser may designate)
reasonable access at reasonable frequency during normal business hours to visit and inspect any of
the properties of the Company and its subsidiaries, examine their books and take copies and
extracts therefrom, discuss the affairs, finances and accounts of the Company and its subsidiaries
with their officers, employees and public accountants (and the Company hereby authorizes said
accountants to discuss with such Purchasers and such designees such affairs, finances and
accounts), and consult with and advise the management of the Company and its subsidiaries as to
their affairs, finances and accounts; provided, however, that, in conducting their visits and
inspections, the Purchasers and their representative and designees shall undertake reasonable
efforts to avoid interference with the ordinary operation of the Company’s business; and provided,
further, that the Company may require, as a condition to the disclosure of any of the Company’s
confidential or proprietary information to any Purchaser or any representative or designee of a
Purchaser, that such Purchaser and such representative or designee execute a non-disclosure
agreement in form reasonably acceptable to the Company.

     Section 5.04 Restrictive Agreements Prohibited. Neither the Company nor any of
its subsidiaries shall become a party to any agreement which by its terms restricts the
Company’s performance of this Agreement or the Certificate of Designations.

     Section 5.05 Use of Proceeds. The Company shall use the proceeds from the sale of
the Preferred Shares hereunder solely for working capital (including, without limitation, the
payment of licensing fees and other payments under the Gene Logic License). Notwithstanding the

 

 

foregoing, the Company may, from the proceeds, make a loan to the Founder in an amount not to
exceed $50,000 on terms reasonably acceptable to the Purchasers.

     Section 5.06 Restrictions on Borrowing and Capital Expenditures.

     The Company shall not, without the prior consent of the Board (including all members of the
Board elected as designees of the Purchasers pursuant to the Stockholders’ Agreement), (i) incur
any single debt obligation in excess of $100,000, or (ii) incur, in any fiscal year, debt in an
aggregate amount in excess $200,000 or (iii) make any single capital expenditure in excess of
$100,000, or (iv) make, in any fiscal year, capital expenditures in an aggregate amount in excess
of $200,000.

     Section 5.07 Qualified Small Business Status.

     The Company shall, so long as Preferred Shares or Conversion Shares are held by any Purchaser
or by any transferee in whose hands Preferred Shares or Conversion Shares are eligible to qualify
as Qualified Small Business Stock (as such term is defined in Section 1202(c) of the Code), use its
best efforts to cause the Preferred Shares and the Conversion Shares to qualify as Qualified Small
Business Stock.

     Section 5.08 Key Person Life Insurance.

     The Company shall, as soon as practicable following the Closing, obtain, and shall thereafter
use its best efforts to maintain in force, an insurance policy in the amount of at least $1,000,000
on the life of the Founder, with the proceeds of such policy payable to the Company.

ARTICLE VI

MISCELLANEOUS

     Section 6.01 Expenses. Each party hereto will pay its own expenses in connection
with the transactions contemplated hereby, whether or not such transactions shall be consummated;
provided, however, that if but only if the Closing occurs, the Company will reimburse the
Purchasers for the reasonable fees and expenses (in an amount not to exceed $25,000) of one law
firm acting as special legal counsel for the Purchasers in connection with the transactions
contemplated by this Agreement.

     Section 6.02 Survival of Agreements. All covenants, agreements, representations and
warranties made herein or in any agreement, certificate or instrument delivered to the Purchasers
pursuant to or in connection with this Agreement shall, for a period of one year from the Closing
Date, survive the execution and delivery of this Agreement, the issuance, sale and delivery of the
Preferred Shares, and the issuance and delivery of the Conversion Shares.

     Section 6.03 Brokerage. The Company will indemnify and hold the Purchasers harmless
against and in respect of any claim for brokerage or other commissions relative to this Agreement
or to the transactions contemplated hereby, based in any way on agreements, arrangements or
understandings made or claimed to have been made by the Company with any third party.

 

 

     Section 6.04
Parties in Interest. All representations, covenants and agreements contained in
this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of
the respective successors and assigns of the parties hereto whether
so expressed or not.

     Section 6.05
Notices. All notices, requests, consents and other communications hereunder
shall be in writing and shall be (i) delivered in person, or (ii) mailed by certified or
registered mail, return receipt requested, or (iii) sent by a recognized overnight courier
service, addressed as follows:

	 	 	 	 	 
	

	 	(a)
	 	if to the Company, at
	 
	 	 	 	 
	

	 	 	 	Therapeutic Genomics, Inc.
	

	 	 	 	9700 Great Seneca Highway
	

	 	 	 	Rockville, Maryland 20850
	

	 	 	 	Attention: President
	 
	 	 	 	 
	

	 	(b)
	 	if to a Purchaser, at the address of such Purchaser set forth on Schedule I hereto,
	 
	 	 	 	 
	in either case, with a copy to
	 
	 	 	 	 
	

	 	 	 	Peabody & Arnold LLP
	

	 	 	 	50 Rowes Wharf
	

	 	 	 	Boston, Massachusetts 02110
	

	 	 	 	Attention: William E. Kelly, Esq.
	 
	 	 	 	 
	

	 	 	 	and
	 
	 	 	 	 
	

	 	 	 	Schmeltzer, Aptaker & Shepard, PC
	

	 	 	 	2600 Virginia Avenue
	

	 	 	 	Watergate
	

	 	 	 	Suite 1000
	

	 	 	 	Washington, DC 20037
	

	 	 	 	Attention: Mark Gruhin, Esq.

or, in any such case, at such other address as shall have been furnished in writing by the
addressee to the others. Notices shall be effective (i) upon delivery, if delivered in person,
(ii) 3 days after deposit in the U.S. mails, if mailed, and (iii) on the day following deposit with
the courier service, if sent by overnight courier.

     Section 6.06 Governing Law. This Agree shall be governed by and construed in
accordance with the laws of the State of Delaware, without application of the conflicts of laws
principles thereof.

     Section 6.07
Entire Agreement. This Agreement constitutes the sole and entire
agreement of the parties with respect to the subject matter hereof.

 

 

     Section 6.08
Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which together shall
constitute one and the same instrument. Signatures delivered by facsimile transmission shall be deemed to be originals notwithstanding the
failure subsequently to deliver a hard copy thereof,

     Section 6.09  Amendments and Waivers. This Agreement may be amended or modified, and
provisions hereof may be waived, only with the written consent of the
Company and of Purchasers
holding, in the aggregate, at least sixty percent (60%) of the Preferred Shares then issued and
outstanding.

     Section 6.10 Severability. If any provision of this Agreement shall be declared void
or unenforceable by any judicial or administrative authority, the validity of any other provision
and of the entire Agreement shall not be affected thereby.

     Section 6.11 Titles and Subtitles. The titles and subtitles used in this Agreement are
for convenience only and are not to be considered in construing or interpreting any term or
provision of this Agreement.

     Section 6.12 No Waiver Cumulative Remedies. No failure or delay on the part of any
party to this Agreement in exercising any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right, power or remedy
preclude any other or further exercise thereof or the exercise of any other right, power or remedy
hereunder. The remedies herein provided are cumulative and not exclusive of any remedies provided
by law.

     IN WITNESS WHEREOF, the Company and the Purchasers have executed this Agreement as of
the day and year first above written.

	 	 	 	 	 
	 	Therapeutic Genomics, Inc. 

 	 
	 	By:  	/s/
Kenneth C. Carter, Ph. D
 	 
	 	 	President      	 
	 	 	 	 

 

 

Schedule I (as amended)

	 	 	 	 	 	 	 	 	 	 	 
	Name and Address of Purchaser	 	 	Number of Preferred Shares	 	 	Purchase Price
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Oxford Bioscience Partners III
L.P.
 31 St. James Avenue, Suite
905
 Boston, Massachusetts 02116

	 	 	 	1,312,886	 	 	 	$	2,625,772.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Oxford Bioscience Partners (Bermuda)
III Limited Partnership 
31 St. James
Avenue, Suite 905 
Boston,
Massachusetts 02116

	 	 	 	187,114	 	 	 	$	374,228.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Paul Millman
72 Cotton Mill Hill, Unit A-9

Brattleboro, Vermont 05301

	 	 	 	17,500	 	 	 	$	35,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Ying-Fei Wei and Guo-Liang Yu

242 Gravatt Drive
 Berkeley,
California 94705

	 	 	 	12,500	 	 	 	$	25,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	David L. Entin
 25213
Woodfield School Road

Gaithersburg, Maryland 20882

	 	 	 	5,000	 	 	 	$	10,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Jonathan Cool
 2020 Pennsylvania
Avenue, Suite 344
Washington, DC
20006

	 	 	 	17,500	 	 	 	$	35,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	GIMV, N.V.
 Karel
Oomsstraat 37
 2018
Antwerpen, Belgium

	 	 	 	1,500,000	 	 	 	$	3,000,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Ariane Health Ltd., LDC
 450
Park Avenue – Suite 1804

New York, New York 10022

	 	 	 	125,000	 	 	 	$	250,000.00	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Name and Address of Purchaser	 	 	Number of Preferred Shares	 	 	Purchase Price
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Maryland Development of Business
and Economic Development
 217 East
Redwood Street, 11th Floor

Baltimore, Maryland 21202

	 	 	 	125,000	 	 	 	$	250,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Alexandria Real Estate Equities,
L.P.
135 N. Los Robles Avenue,
Suite 250
 Pasadena, California
91101

	 	 	 	125,000	 	 	 	$	250,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Jayvee & Co.
CIBC Mellon Global
Securities
 Account # YARF
22090002
 c/o Altamira Management
Ltd.
 The Exchange Tower
 130 King
Street West – Suite 900
 Toronto,
Ontario M5X 1K9 Canada

	 	 	 	475,000	 	 	 	$	950,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Jayvee & Co.,
 CIBC Mellon Global
Securities
 Account # YARF
l229002
 c/o Altamira Management
Ltd.
 The Exchange Tower
 130
King Street West – Suite 900

Toronto, Ontario M5X 1K9 Canada

	 	 	 	25,000	 	 	 	$	50,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Gene Fund LLP
 6701 Democracy
Boulevard, Suite 300
 Bethesda,
Maryland 20817

	 	 	 	250,000	 	 	 	$	500,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Forward Ventures IV, LP
 9255
Towne Centre Drive, Suite 300

San Diego, California 92121

	 	 	 	686,685	 	 	 	$	1,373,370.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Forward Ventures IV, LP
 9255
Towne Centre Drive, Suite 300

San Diego, California 92121

	 	 	 	63,315	 	 	 	$	126,630.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Ariane Health Ltd., LDC
 450
Park Avenue – Suite 1804

New York, New York 10022

	 	 	 	125,000	 	 	 	$	250,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Kenneth A. Sorensen
 450
Park Avenue – Suite 1804

New York, New York 10022

	 	 	 	25,000	 	 	 	$	50,000.00exv10w19b

 

Exhibit 10.19B

Therapeutic Genomics, Inc.

Amendment No. 1 to Series A Convertible Preferred Stock Purchase Agreement

     Agreement of Amendment dated as of March 1, 2000 by and between Therapeutic Genomics, Inc., a
Delaware corporation (the “Company”) and those entities listed on Schedule I hereto (the “Initial
Purchasers”).

     Whereas, pursuant to a certain Series A Convertible Preferred Stock Purchase Agreement dated
as of December 28, 1999 between the Company and the Initial Purchasers (the
“Agreement”), the Company issued and sold to the Initial Purchasers shares of the Company’s Series
A Convertible Preferred Stock (the “Preferred Stock”); and

     Whereas, the Company and the Initial Purchasers desire to amend the Agreement to authorize the
Company to issue and sell shares of Preferred Stock to additional investors and to effect certain
other changes in the Agreement;

     Now, therefore, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Agreement is hereby amended as follows:

     1. The second paragraph of the Agreement is amended and restated to read in its
entirety as follows:

“Whereas, the Company wishes to issue and sell to the Purchasers, and the Purchasers
wish to purchase on the terms and subject to the conditions set forth in this
Agreement, an aggregate of up to 4,000,000 shares (the “Preferred Shares”) of the
authorized but unissued Series A Convertible Preferred Stock, $0.01 par value, of
the Company (the “Preferred Stock”);”

     2. Section 1.02(b) of the Agreement is amended and restated to read in its entirety as
follows:

     “(b) If less than all of the authorized number of Preferred Shares are sold
at the Initial Closing, the Company may in its sole discretion, at a one or more
additional closings to take place at the offices of Peabody & Arnold, 50 Rowes Wharf,
Boston, Massachusetts, on or before May 15, 2000 (each such closing, together with the
Initial Closing, being called a “Closing” and such date and time, together with the
Initial Closing Date, being called a “Closing Date”) issue and sell to those
Purchasers who elect to purchase additional Preferred Shares and/or one or more
additional Purchasers who elect to become parties to this Agreement, by executing a
counterpart hereof and causing Schedule I to be amended appropriately, any or all of
the Preferred Shares not purchased at the Initial Closing.”

 

 

     3. Section 2.04 of the Agreement is amended and restated to read in its entirety as
follows:

     “Section 2.04. Authorized Capital Stock. The authorized capital stock of the
Company consists of 12,000,000 shares of Common Stock and 8,000,000 shares of
Preferred Stock; 5,000,000 shares of Preferred Stock have been designated Series A
Convertible Preferred Stock and 3,000,000 shares of Preferred Stock remain
undesignated. Immediately prior to the Initial Closing, 888,000 shares of Common
Stock will be validly issued and outstanding, and no other shares of Common Stock or
Preferred Stock will have been issued. There have been reserved for issuance (i) on
or before May 15, 2000, 112,000 shares of Common Stock (the “Reserved Founders
Shares”) to persons to be designated by Kenneth C. Carter (the “Founder”) (to the
issuance of which the Purchasers, by their execution of this Agreement, shall be
deemed to have consented), and (ii) under the Company’s 1999 Stock Plan (the “1999
Plan”), an aggregate of 625,000 shares of Common Stock. No subscription, warrant,
option, convertible security, or other right (contingent or other) to purchase or
otherwise acquire from the Company (or, to the best of the Company’s knowledge, from
any other person or entity) any equity securities of the Company is outstanding and
there is no commitment by the Company to issue shares, subscriptions, warrants,
options, convertible securities, or other such rights or to distribute to holders of
any of its equity securities any evidence of indebtedness or asset. The Company has
no obligation (contingent or other) to purchase, redeem or otherwise acquire any of
its equity securities or any interest therein or to pay any dividend or make any
other distribution in respect thereof.”

     4. Clause (a) of Article II of the Agreement is amended and restated to read in its
entirety as follows:

     “(a) unless such Purchaser has advised the Company to the contrary, such
Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D
under the Securities Act;”

     5. Section 4.08 of the Agreement is renumbered as Section 4.09 and the following
new Section 4.08 is inserted immediately prior thereto:

     “Section 4.08 Maryland Department of Business and Economic
Development. With respect only to the Closing at which the Maryland
Department of Business and Economic Development (“MDBED”) becomes a Purchaser, the
Company shall have executed and delivered to MDBED such documents (including without
limitation an application affidavit, an investment certification, and a stock
repurchase agreement) as MDBED may reasonably request in order to implement the terms
and conditions set forth in the Commitment Letter of MDBED to the Company dated March
20, 2000, all of which documents shall be in form and substance satisfactory to MDBED.”

2

 

     6. Section 5.01(b) of the Agreement is amended and restated to read in its entirety as
follows:

     “(b) As soon as available, but in any event not later than 45 days after
the end of each of the first three quarters of each fiscal year, the Company shall
furnish to each Purchaser that (alone or together with its affiliates) holds at
least 250,000 Preferred Shares and/or Conversion Shares the unaudited balance sheet
of the Company as at the end of each such period and the related unaudited
consolidated statement of operations, shareholders’ equity and changes in cash flows
of the Company for such quarterly period and for the elapsed period in such fiscal
year, all in reasonable detail and stating in comparative form the figures as at the
end of and for the comparable periods of the preceding fiscal year and to the
current year’s budget.”

     6. Section 5.01(c) of the Agreement is amended and restated to read in its entirety as
follows:

     “(c) As soon as available, but in any event not later than 20 days after
the end of each of month commencing with January 2000, the Company shall furnish to
each Purchaser that (alone or together with its affiliates) holds at least 250,000
Preferred Shares and/or Conversion Shares the unaudited summary balance sheet of the
Company as at the end of each such month and the related unaudited summary
consolidated statement of operations, shareholders’ equity and changes in cash flows
of the Company for such month.”

     7. Section 6.09 is amended and restated to read in its entirety as follows:

     “Section 6.09 Amendments and Waivers. This Agreement may be
amended or modified, and provisions hereof may be waived, only with the written
consent of the Company and of Purchasers holding, in the aggregate, at least sixty
percent (60%) of the Preferred Shares then issued and outstanding; provided,
however, that the provisions of Section 4.08 may not be amended or modified, and the
provisions thereof may not be waived, without the written consent of MDBED.”

     8. The following new Section 6.12 is added to the Agreement:

     “Section 6.12 Affiliates When used in this Agreement, the term
“affiliate” shall, with respect to any Purchaser, refer to (a) any person or entity
holding a beneficial ownership interest in such Purchaser (including, without
limitation, the limited partners of a Purchaser that is a limited partnership) and
(b) any person or entity controlling, controlled by, or under common control with
such Purchaser. All references in Article V of this Agreement to a “Purchaser” shall
include the affiliates of such Purchaser whether or not so stated. A Purchaser may
assign any or all of its rights under this Agreement to any of its affiliates.”

3

 

     9. In all other respects the Agreement shall remain in full force and effect without
amendment or alteration.

     In Witness whereof, the Company and the Initial Purchaser have executed this
Agreement of Amendment as of the date first above written.

	 	 	 	 	 
	 	 	Therapeutic Genomics, Inc.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kenneth C. Carter, Ph.D.
	

	 	 	 	 
	

	 	 	 	     President
	 
	 	 	 	 
	 	 	Oxford Bioscience Partners iii l.p.,
	 	 	By: OBP Management iii l.p.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Alan G. Walton
	

	 	 	 	 
	

	 	 	 	     General Partner
	 
	 	 	 	 
	 	 	Oxford Bioscience Partners (Bermuda)
iii limited partnership 
	 	 	By: OBP Management (Bermuda) iii limited partnership
	

	 	 
	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Alan G. Walton
	

	 	 	 	 
	

	 	 	 	     General Partner

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]