Document:

Exhibit 4.7

 

COMMON STOCK PURCHASE AGREEMENT

 

THIS COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is dated as of November 23, 2010, by and among Anacor Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

A.            The Company and each Purchaser is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act.

 

B.            Each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, that aggregate number of shares of the common stock (the “Common Stock”) of the Company set forth next of such Purchaser’s name on Annex A hereto (which aggregate amount for all Purchasers together shall be 2,000,000 shares of Common Stock and shall be collectively referred to herein as the “Shares”).

 

C.            Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement, substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”), pursuant to which, among other things, the Company will agree to provide certain registration rights with respect to the Shares under the Securities Act and the rules and regulations promulgated thereunder and applicable state securities laws.

 

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

 

ARTICLE 1

 

DEFINITIONS

 

1.1          Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1:

 

“Agreement” shall have the meaning ascribed to such term in the Preamble.

 

“Closing” means the closing of the purchase by the Purchasers listed on Annex A  hereto and sale by the Company of the Shares to such Purchasers pursuant to this Agreement on the Closing Date as provided in Section 2 hereof, which shall be contingent on and concurrent with

 

 

the closing of the sale and issuance of shares of Common Stock by the Company pursuant to the Underwriting Agreement.

 

“Closing Date” shall be the Closing Date as described in the Underwriting Agreement.

 

“Common Stock” has the meaning set forth in the Recitals, and also includes any securities into which the Common Stock may hereafter be reclassified or changed.

 

“Company Counsel” means Cooley LLP.

 

“Company Deliverables” has the meaning set forth in Section 2.2(a).

 

“Company’s Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the Securities Act) of the Company, after due inquiry.

 

“IPO” means the proposed underwritten initial public offering of shares of the Company’s Common Stock pursuant to the Registration Statement.

 

“Lien” means any lien, charge, claim, encumbrance, security interest, right of first refusal, preemptive right or other restrictions of any kind.

 

“Material Adverse Effect” means a material adverse effect on (a) the results of operations, assets, liabilities, business, or financial condition of the Company, taken as a whole, or (b) the ability of the Company to perform its obligations under the Transaction Documents, except that any of the following, either alone or in combination, shall not be deemed a Material Adverse Effect:   (i) effects caused by changes or circumstances affecting general market conditions in the U.S. economy or which are generally applicable to the industry in which the Company operates, or (ii) effects caused by any event, occurrence or condition resulting from or relating to the taking of any action in accordance with this Agreement.

 

“Material Contract” means any contract of the Company that has been filed or was required to have been filed as an exhibit to the Registration Statement pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein.

 

“Purchase Price” means the per share initial public offering price in the IPO (prior to any underwriting discounts and commissions).

 

“Purchaser Deliverables” has the meaning set forth in Section 2.2(b).

 

“Registration Rights Agreement” has the meaning set forth in the Recitals.

 

“Registration Statement” means the registration statement on Form S-1 (File No. 333-169322), including a prospectus filed pursuant to Rule 424 under the Securities Act and any free

 

 

writing prospectuses, relating to the underwritten public offering of shares of the Company’s Common Stock.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Subscription Amount” means with respect to each Purchaser, the aggregate amount to be paid for the Shares purchased hereunder as indicated opposite such Purchaser’s name on Annex A to this Agreement under the heading “Subscription Amount”.

 

“Transaction Documents” means this Agreement, the schedules and exhibits attached hereto, the Registration Rights Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Underwriting Agreement” means that certain Underwriting Agreement dated November 23, 2010 by and among the Company and Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as representatives of the several underwriters listed therein (together, the “Underwriters”), relating to the Registration Statement.

 

ARTICLE 2

 

PURCHASE AND SALE

 

2.1          Closing.

 

(a)         Amount.  Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Purchaser listed on Annex A hereto, and each Purchaser listed on Annex A hereto shall, severally and not jointly, purchase from the Company, such number of shares of Common Stock equal to the quotient resulting from dividing (i) the Subscription Amount for such Purchaser by (ii) the Purchase Price.

 

(b)         Closing. The Closing of the purchase and sale of the Shares shall be contingent on and shall take place concurrently with the closing of the IPO at the offices of Company Counsel, 3175 Hanover Street, Palo Alto, California on the Closing Date or at such other locations or remotely by facsimile transmission or other electronic means as the parties may mutually agree.

 

(c)         Form of Payment.  On the Closing Date, each Purchaser listed on Annex A hereto shall wire its Subscription Amount, in United States dollars and in immediately available funds, in the amount set forth as the “Subscription Amount” indicated opposite such Purchaser’s name on Annex A hereto by wire transfer to the Company’s account, as set forth in instructions previously provided to the Purchasers.

 

2.2          Closing Deliveries.

 

(a)         On or prior to the Closing with respect to the Purchasers listed on Annex A hereto the Company shall issue, deliver or cause to be delivered to each such Purchaser the following (the “Company Deliverables”):

 

 

(i)            this Agreement, duly executed by the Company;

 

(ii)           the Shares registered in the name of such Purchaser;

 

(iii)         the Registration Rights Agreement, duly executed by the Company; and

 

(iv)          a customary legal opinion from Company Counsel, reasonably acceptable to the Purchasers.

 

(b)         On or prior to the Closing with respect to the Purchasers listed on Annex A hereto, each such Purchaser shall deliver or cause to be delivered to the Company the following (the “Purchaser Deliverables”):

 

(i)            this Agreement, duly executed by such Purchaser;

 

(ii)           its Subscription Amount, in United States dollars and in immediately available funds, in the amount set forth as the “Subscription Amount” indicated below such Purchaser’s name on the applicable signature page hereto by wire transfer to the Company’s account as previously provided to the Purchasers; and

 

(iii)         the Registration Rights Agreement, duly executed by such Purchaser.

 

ARTICLE 3

 

REPRESENTATIONS AND WARRANTIES

 

3.1          Representations and Warranties of the Company. The Company hereby represents and warrants as of the date hereof and the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date), to each of the Purchasers that, except as set forth in the Schedules delivered herewith or disclosed in the Registration Statement:

 

(a)         Organization and Qualification. The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its respective incorporation, with the requisite corporate power and authority to own or lease and use its properties and assets and to carry on its business as currently conducted. The Company is not in violation of any of the provisions of its Certificate of Incorporation or Bylaws. The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have a Material Adverse Effect.

 

(b)         Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents to

 

 

which the Company is a party and the consummation by it of the transactions contemplated hereby and thereby (including, but not limited to, the sale and delivery of the Shares) have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate action is required by the Company, its Board of Directors or its stockholders in connection therewith.  Each of the Transaction Documents to which it is a party has been (or upon delivery will have been) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.  Except as disclosed in the Registration Statement, there are no stockholder agreements, voting agreements, or other similar arrangements with respect to the Company’s capital stock to which the Company is a party or, to the Company’s Knowledge, between or among any of the Company’s stockholders.

 

(c)         No Conflicts.  The execution, delivery and performance by the Company of the Transaction Documents to which it is a party and the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation, the issuance of the Shares) do not and will not (i) conflict with or violate any provisions of the Company’s Certificate of Incorporation or Bylaws or otherwise result in a violation of the organizational documents of the Company, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any Material Contract, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject, or by which any property or asset of the Company is bound or affected, except in the case of clause (iii) such as would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

 

(d)         Issuance of the Securities. The Shares have been duly authorized and, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued, fully paid and nonassessable and free and clear of all Liens, other than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not be subject to preemptive or similar rights.  Assuming the accuracy of the representations and warranties of the Purchasers in this Agreement, the Shares will be issued in compliance with all applicable federal and state securities laws.

 

(e)         Registration Statement. The Registration Statement, as of its filing date and including each of its subsequent amendments, complies in all material respects with the requirements of the Securities Act and the rules and regulations of the Commission promulgated thereunder, and the Registration Statement and any prospectus contained therein does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

 

(f)         Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2 of this Agreement, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchasers under the Transaction Documents.

 

(g)        Brokers and Finders.  No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company.

 

3.2          Representations and Warranties of the Purchasers. Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as of the date hereof and as of the Closing Date in the case of the Purchasers listed on Annex A hereto to the Company as follows:

 

(a)         Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder.  The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or, if such Purchaser is not a corporation, such partnership, limited liability company or other applicable like action, on the part of such Purchaser.  Each of this Agreement and the Registration Rights Agreement has been (or upon delivery will have been) duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

(b)         No Conflicts. The execution, delivery and performance by such Purchaser of this Agreement and the Registration Rights Agreement and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Purchaser, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder.

 

(c)         Restricted Securities. Such Purchaser understands that the Shares are being issued in a transaction that was not, and will not be, registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s representations as expressed herein. Such Purchaser understands that the Shares

 

 

are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, such Purchaser must hold the Shares indefinitely unless they are registered with the Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Subject to the Registration Rights Agreement, such Purchaser acknowledges that the Company has no obligation to register or qualify the Shares for resale. Such Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Shares, and on requirements relating to the Company which are outside of the Purchaser’s control, and which the Company is under no obligation and may not be able to satisfy.

 

(d)         Accredited Investor.  Such Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. Such Purchaser’s principal executive offices are in the jurisdiction set forth immediately below such Purchaser’s name on the applicable signature page attached hereto.

 

(e)         Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Shares and is able to afford a complete loss of such investment.

 

(f)         Access to Information.  Such Purchaser acknowledges that it has received all the information it considers necessary or appropriate for deciding whether to purchase the Shares and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and its respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness of the Registration Statement and the Company’s representations and warranties contained in the Transaction Documents.

 

(g)        Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Purchaser.

 

(h)        Reliance on Exemptions. Such Purchaser understands that the Shares being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties,

 

 

agreements, acknowledgements and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Shares.

 

(i)         Legends. Such Purchaser understands that the Shares may bear one or all of the following legends:

 

(i)            “THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN A TRANSACTION THAT WAS NOT REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

(ii)           Any legend required by the Blue Sky laws of any state to the extent such laws are applicable to the Shares represented by the certificate so legended.

 

After a registration statement on Form S-3 filed pursuant to the Registration Rights Agreement has been declared effective by the Commission, the legends set forth in this Section 3.2(i) shall be removed and the Company shall issue a certificate without such legend to the holder of the Shares upon which it is stamped or issue the Shares without such a legend to such holder by electronic delivery at the applicable balance account at DTC.  Any fees (with respect to the transfer agent, Company Counsel or otherwise) associated with the removal of such legend shall be borne by the Company.

 

ARTICLE 4

 

CONDITIONS PRECEDENT TO CLOSING

 

4.1          Conditions Precedent to the Obligations of the Purchasers to Purchase Shares at the Closing. The obligation of each Purchaser listed on Annex A hereto to acquire Shares at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, on or prior to the Closing Date, of each of the following conditions, any of which may be waived by such Purchaser (as to itself only):

 

(a)         Representations and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material respects (except for those representations and warranties which are qualified as to materiality, in which case such representations and warranties shall be true and correct in all respects) as of the date of this Agreement and as of the Closing Date, as though made on and as of the Closing Date, except for such representations and warranties that speak as of a specific date.

 

(b)         IPO Shares. The Underwriters shall have purchased, concurrent with the purchase of the Shares by the Purchasers hereunder, the Underwritten Shares (as defined in the Underwriting Agreement) at the same purchase price (less any underwriting discounts or commissions) per share payable by the Purchasers hereunder.

 

 

(c)         No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

 

(d)         Company Deliverables. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a).

 

4.2          Conditions Precedent to the Obligations of the Company to sell Shares at the Closing. The Company’s obligation to sell and issue the Shares to each Purchaser listed on Annex A hereto at the Closing is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:

 

(a)         Representations and Warranties. The representations and warranties made by such Purchaser in Section 3.2 hereof shall be true and correct in all material respects as of the date of this Agreement, and as of the Closing Date as though made on and as of the Closing Date, except for representations and warranties that speak as of a specific date.

 

(b)         IPO Shares. The Underwriters shall have purchased, concurrent with the purchase of the Shares by the Purchasers hereunder, the Underwritten Shares (as defined in the Underwriting Agreement) at the same purchase price (less any underwriting discounts or commissions) per share payable by the Purchasers hereunder.

 

(c)         No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

 

(d)         Purchasers Deliverables. Such Purchaser shall have delivered its Purchaser Deliverables in accordance with Section 2.2(b).

 

(e)         Lock-Up Agreement. Such Purchaser shall have executed and delivered to the Underwriters a lock-up agreement in substantially the form delivered to the Underwriters pursuant to the Underwriting Agreement, and such Lock-Up Agreement shall be in full force and effect.

 

ARTICLE 5

 

MISCELLANEOUS

 

5.1          Termination. This Agreement shall automatically terminate upon the earliest to occur of (i) the written consent of each of the Company and the Purchaser, (ii) the withdrawal by the Company of the Registration Statement, or (iii) following the execution of the Underwriting Agreement, the termination of such Underwriting Agreement in accordance with its terms.

 

5.2          Fees and Expenses.  The Company shall pay the reasonable fees and expenses incurred by the Purchasers, including reasonable fees and expenses of experts, consultants,

 

 

counsel and the like, and other fees and expenses incurred in connection with the negotiation, preparation, execution, delivery and performance of this Agreement, in an amount not to exceed an aggregate of $10,000.

 

5.3          Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.

 

5.4          Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted and confirmed by any standard form of telecommunication. The address for such notices and communications shall be as follows:

 

	
If   to the Company:
    	
Anacor   Pharmaceuticals, Inc.
    
	
 
    	
1020   East Meadow Circle
    
	
 
    	
Palo   Alto, CA 94303
    
	
 
    	
Telephone   No.: (650) 543-7500
    
	
 
    	
Attention:   Chief Financial Officer
    
	
 
    	
 
    
	
With   a copy to:
    	
Cooley   LLP
    
	
 
    	
3175 Hanover Street
    
	
 
    	
Palo Alto, California 94304
    
	
 
    	
Telephone No.: (650) 843-5180
    
	
 
    	
Facsimile No.: (650) 849-7400
    
	
 
    	
Attention: Mark B. Weeks
    
	
 
    	
 
    
	
If   to a Purchaser:
    	
To   the address set forth under such Purchaser’s name on the signature   page hereof;
    
	
 
    	
 
    
	
 
    	
or   such other address as may be designated in writing hereafter, in the same   manner, by such Person.
    

 

5.5          Amendments; Waivers; No Additional Consideration. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto.

 

5.6          Construction. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

 

 

5.7          Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted assigns. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

5.8          Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to the principles of conflicts of law thereof.

 

5.9          Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Shares for a period of one (1) year from the Closing Date. The agreements and covenants contained herein shall survive for the applicable statute of limitations.

 

5.10        Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.

 

5.11        Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

5.12        Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

 

 

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

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
ANACOR   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   James R. Marconi
    
	
 
    	
Name:   
    	
James   R. Marconi
    
	
 
    	
Title:   
    	
Vice   President
    

 

 

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

 

	
PURCHASERS:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

VENROCK HEALTHCARE CAPITAL PARTNERS, L.P.

	
By:     VHCP Management, LLC
    	
 
    
	
Its:    General   Partner
    	
 
    
	
 
    	
 
    
	
VHCP   CO-INVESTMENT HOLDINGS, LLC
    	
 
    
	
By:   VHCP   Management, LLC
    	
 
    
	
Its:    Manager
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Anders D. Hove
    	
 
    
	
Anders   D. Hove
    	
 
    
	
Member
    	
 
    

 

 

EXHIBIT A

 

FORM OF REGISTRATION RIGHTS AGREEMENT

 

1

 

ANNEX A

 

SCHEDULE OF PURCHASERS

 

	
Purchaser
    	
 
    	
Number of Shares
    	
 
    	
Subscription Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Venrock Healthcare Capital Partners, L.P.
    	
 
    	
1,690,722
    	
 
    	
$
    	
8,453,610.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
VHCP Co-Investment Holdings, LLC
    	
 
    	
309,278
    	
 
    	
$
    	
1,546,390.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTAL
    	
 
    	
2,000,000
    	
 
    	
$
    	
10,000,000.00
    	
 
    

 

2Exhibit 4.8

 

ANACOR PHARMACEUTICALS, INC.
 A DELAWARE CORPORATION

 

REGISTRATION RIGHTS AGREEMENT

 

November 23, 2010

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Definitions;   Registration Rights
    	
1
    
	
 
    	
1.1
    	
Definitions
    	
1
    
	
 
    	
1.2
    	
Form S-3   Registration
    	
2
    
	
 
    	
1.3
    	
Obligations   of the Company
    	
3
    
	
 
    	
1.4
    	
Furnish   Information
    	
4
    
	
 
    	
1.5
    	
Expenses   of Registration
    	
4
    
	
 
    	
1.6
    	
Delay   of Registration
    	
5
    
	
 
    	
1.7
    	
Indemnification
    	
5
    
	
 
    	
1.8
    	
Reports   Under Securities Exchange Act of 1934
    	
7
    
	
 
    	
1.9
    	
Termination   of Registration Rights
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Miscellaneous
    	
8
    
	
 
    	
2.1
    	
Entire   Agreement
    	
8
    
	
 
    	
2.2
    	
Successors   and Assigns
    	
8
    
	
 
    	
2.3
    	
Amendments   and Waivers
    	
8
    
	
 
    	
2.4
    	
Notices
    	
8
    
	
 
    	
2.5
    	
Severability
    	
8
    
	
 
    	
2.6
    	
Delays   or Omissions; Remedies Cumulative
    	
9
    
	
 
    	
2.7
    	
Attorneys’   Fees
    	
9
    
	
 
    	
2.8
    	
Governing   Law
    	
9
    
	
 
    	
2.9
    	
Counterparts
    	
9
    
	
 
    	
2.10
    	
Titles   and Subtitles
    	
9
    
	
 
    	
2.11
    	
Aggregation   of Stock
    	
9
    

 

i

 

ANACOR PHARMACEUTICALS, INC.
 A DELAWARE CORPORATION

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”) is made as of November 23, 2010, by and among Anacor Pharmaceuticals, Inc., a Delaware corporation (the “Company”) and the investors listed on Exhibit A hereto (each, an “Investor”).

 

R E C I T A L S

 

The Company and certain of the Investors have entered into a Common Stock Purchase Agreement (the “Purchase Agreement”) of even date herewith pursuant to which the Company is selling to certain of the Investors and such Investors are purchasing from the Company shares of the Company’s Common Stock.  A condition to the parties’ obligations under the Purchase Agreement is that the Company and the Investors enter into this Agreement in order to provide the Investors with certain rights to register shares of the Company’s Common Stock.  The Company desires  to induce the Investors to purchase shares of Common Stock pursuant to the Purchase Agreement by agreeing to the terms and conditions set forth herein.

 

A G R E E M E N T

 

The parties hereto agree as follows:

 

1.               Definitions; Registration Rights.

 

1.1           Definitions.

 

For purposes of this Agreement:

 

(a)                                  “Board” means the Board of Directors of the Company, as the same shall be constituted from time to time.

 

(b)                                 “Common Stock” means the common stock, par value $0.001 per share, of the Company.

 

(c)                                  “Exempt Registration” means a registration statement relating to the sale of securities by the Company pursuant to a stock option, stock purchase or similar benefit plan or an SEC Rule 145 transaction.

 

(d)                                 “Form S-3” means such form under the Securities Act as in effect on the date hereof or any successor form under the Securities Act that is intended to be used as a short form for the registration of distribution of secondary shares.

 

(e)                                  “Person” means any individual, corporation, partnership, limited liability company, trust, business, association or government or political subdivision thereof, governmental agency or other entity.

 

 

(f)                                    “Preferred Stock” means the Series C Preferred Stock, the Series D Preferred Stock and the Series E Preferred Stock of the Company.

 

(g)                                 The terms “register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act and the declaration or ordering of effectiveness of such registration statement or document.

 

(h)                                 The term “Registrable Securities” means (i) the shares of Common Stock issuable or issued upon conversion of the Preferred Stock, (ii) the shares of Common Stock of the Company issued pursuant to the Purchase Agreement, and (iii) the shares of Common Stock issued pursuant to an Underwriting Agreement to be entered into by and among the Company, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as representatives of the several Underwriters (the “Underwriters”) named therein, in connection with the Company’s initial public offering pursuant to the Registration Statement on Form S-1 (File No. 333-169322).  Subject to the foregoing, securities shall only be treated as Registrable Securities if and so long as they have not been (A) sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction, or (B) sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof so that all transfer restrictions, and restrictive legends with respect thereto, if any, are removed upon the consummation of such sale.

 

(i)                                     The number of shares of “Registrable Securities then outstanding” shall equal the number of shares of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities.

 

(j)                                     “SEC” means the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

(k)                                  “Securities Act” means the Securities Act of 1933, as amended.

 

1.2                                 Form S-3 Registration.

 

(a)                                  Initiation.  After the Company becomes eligible to use Form S-3 and within 30 days of receiving a written request from the Investor, the Company will use its best efforts to effect the registration of such Investor’s Registrable Securities as are specified in such written request.

 

(b)                                 Limitations.  Notwithstanding Section 1.2(a) above, the Company shall not be obligated to effect any such registration pursuant to this Section 1.2 (i) if Form S-3 is not available for such offering by the Investors; (ii)  if the Company shall furnish to the Investors a certificate signed by the Chief Executive Officer of the Company stating that in the good faith judgment of the Board, it would be seriously detrimental to the Company and its stockholders for such Form S-3 registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 for a period of not more than 30 days after receipt of the request of the Investor or Investors under this Section 1.2; provided, however, that the Company shall not utilize this right more than once in any 12-month period; (iii) if the Company

 

2

 

has, within the 12-month period preceding the date of such request, already effected two registrations on Form S-3 for the Investors pursuant to this Section 1.2; or (iv) during the period ending 120 days after the effective date of a registration statement subject to Section 1.2 of the Company’s Amended and Restated Investors’ Rights Agreement, as amended.  Except as otherwise set forth in this Section 1.2, the Investors shall be entitled to request an unlimited number of registrations on Form S-3.

 

1.3                                 Obligations of the Company.  Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

(a)                                  Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its reasonable best efforts to cause such registration statement to become effective and shall its reasonable best efforts to keep such registration statement effective for up to two (2) years.

 

(b)                                 Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act.

 

(c)                                  Furnish to the Investors such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of such Registrable Securities.

 

(d)                                 Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Investors, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

 

(e)                                  In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement with the managing underwriter of such offering in usual and customary form and consistent with the other provisions of this Agreement.  Each Investor participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 

(f)                                    Notify each Investor who holds Registrable Securities covered by the registration statement at any time when the Company becomes aware of the happening of any event as a result of which the registration statement or the prospectus included in such registration statement or any supplement to the prospectus (as then in effect) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein (in the case of the prospectus, in light of the circumstances under which they were made) not misleading or, if for any other reason it shall be necessary during such time period to amend or supplement the registration statement or the prospectus in order to comply with the Securities Act, whereupon, in either case, each Investor shall immediately cease to use such registration statement or prospectus for any purpose and, as promptly as practicable thereafter, the Company shall promptly prepare and file with the SEC, and furnish without charge to the appropriate 

 

3

 

Investors a supplement or amendment to such registration statement or prospectus which will correct such statement or omission or effect such compliance and such copies thereof as the Investors may reasonably request.  In any such event, the number of days for which such registration statement is required to be effective hereunder shall be extended accordingly. Notwithstanding the foregoing, in no event shall trading be suspended for more than twenty (20) consecutive days, and for not more than an aggregate of forty-five (45) days in any twelve (12) month period.

 

(g)                                 Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange or over-the-counter market on which similar securities issued by the Company are then listed, if applicable.

 

(h)                                 Provide a transfer agent and registrar for such Registrable Securities and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration.

 

(i)                                     Notify each Investor who holds Registrable Securities covered by the registration statement of (i) the expected effective date of the registration statement and (ii) the effectiveness on the actual effective date thereof.

 

1.4                                 Furnish Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Investor’s Registrable Securities.  The Company shall have no obligation with respect to any registration requested pursuant to Section 1.2 of this Agreement if, as a result of the application of the preceding sentence, the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in subsection 1.2(b).

 

1.5                                 Expenses of Registration.

 

All expenses other than underwriting discounts and commissions incurred in connection with registrations initiated pursuant to Section 1.2, including all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company, and the reasonable fees and disbursements  of one counsel for the selling Investors up to a maximum of $30,000 shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 if the registration request is subsequently withdrawn at the request of the Investors; provided, however, that if at the time of such withdrawal, the Investors have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Investors at the time of their request and have withdrawn the request with reasonable promptness following disclosure by the Company of such material adverse change, then the Investors shall not be required to pay any of such expenses.

 

4

 

1.6                                 Delay of Registration.  No Investor shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1.

 

1.7                                 Indemnification.  In the event any Registrable Securities are included in a registration statement under this Section 1:

 

(a)                                  Indemnification by the Company.  To the extent permitted by law, the Company will indemnify and hold harmless each Investor, any or each agent, officer, director, stockholder or partner of each Investor, any or each grantor or beneficiary of a Investor that is a trust, any underwriter (as defined in the Securities Act) for such Investor and each person, if any, who controls such Investor or underwriter within the meaning of Section 15 of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”):  (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the Company will pay to each such Investor, underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.7(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Investor, underwriter or controlling person for any such loss, claim, damage, liability, or action (1) to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Investor, underwriter or controlling person or (2) in the case of a sale directly by a Investor of Registrable Securities (including a sale of such Registrable Securities through any underwriter retained by such Investor engaging in a distribution solely on behalf of such Investor), such Violation arises out of a material misstatement or omission contained in a preliminary prospectus and corrected in a final or amended prospectus, and such Investor failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the person asserting any such loss, claim, damage or liability in any case in which such delivery is required by the Securities Act.

 

(b)                                 Indemnification by the Investors.  To the extent permitted by law, each Investor joining in registration will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, any underwriter and any controlling person of any such underwriter, against any losses, claims, damages, or

 

5

 

liabilities (joint or several) to which any of the foregoing persons may become subject, under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information (including, without limitation, written negative responses to inquiries) furnished by such Investor expressly for use in connection with such registration; and each such Investor will pay, as incurred, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this Section 1.7(b), in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 1.7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Investor, which consent shall not be unreasonably withheld; provided, further, that in no event shall any indemnity under this Section 1.7(b) exceed the net proceeds from the offering received by such Investor, except in the case of willful fraud by such Investor; provided, further, that the indemnity under this Section 1.7(b) shall not be deemed to relieve any underwriter of any of its due diligence obligations.

 

(c)                                  Procedures.  Promptly after receipt by an indemnified party under this Section 1.7 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.7, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, to the extent prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.7, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.7.  No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.  The indemnity agreements contained in this Section 1.7 shall not apply to amounts paid in settlement of any loss, claim, damage, liability or action if such settlement is effected without the consent of the indemnifying party, which consent shall not be unreasonably withheld.

 

(d)                                 Contribution.  If the indemnification provided for in this Section 1.7 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or 

 

6

 

payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided, that in no event shall any contribution by a Investor under this Section 1.9(d) exceed the net proceeds from the offering received by such Investor, except in the case of willful fraud by such Investor.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

 

(e)                                  Reimbursement.  The contribution required by this Section 1.7 shall be made by periodic payment during the course of the investigation or defense, as and when bills are submitted to the indemnifying party.

 

(f)                                    Survival.  The obligations of the Company and Investors under this Section 1.7 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise.  No indemnifying party, in defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

1.8                                 Reports Under Securities Exchange Act of 1934.  With a view to making available to the Investors the benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Investor to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:

 

(a)                                  make and keep public information available, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public so long as the Company remains subject to the periodic reporting requirements under Sections 13 or 15(d) of the Exchange Act;

 

(b)                                 take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the Investors to use Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its equity securities to the general public is declared effective;

 

(c)                                  file with the SEC in a timely manner all reports and other documents as may be required of the Company under the Securities Act and the Exchange Act; and

 

(d)                                 furnish to any Investor, so long as the Investor owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied

 

7

 

with the reporting requirements of SEC Rule 144, the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Investor of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form.

 

1.9                                 Termination of Registration Rights.  No Investor shall be entitled to exercise any registration right provided for in this Section 1 after five years following the consummation of the initial public offering described in Section 1.1(h) above.

 

2.               Miscellaneous.

 

2.1                                 Entire Agreement.  This Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing among any of the parties hereto are expressly canceled.

 

2.2                                 Successors and Assigns.  Except as otherwise provided in this Agreement, and subject to the restriction on transfer set forth in the Purchase Agreement, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

2.3                                 Amendments and Waivers.  This Agreement may be amended or waived only with the written consent of the Company and the Investors who hold at least a majority of the Registrable Securities then outstanding.  The Investors and their successors and assigns acknowledge that by operation of this Section 2.3, the Investors who hold at least a majority of the then outstanding Registrable Securities, when acting together with the Company, will have the right and power to diminish or eliminate any rights or increase any or all obligations under this Agreement.

 

2.4                                 Notices.  Unless otherwise provided, any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by nationally recognized overnight courier or sent by electronic mail, or if mailed to a domestic address, on the third business day after being deposited in the U.S. mail, as certified or registered mail, return receipt requested, with postage prepaid, and addressed to the party to be notified at such party’s address or electronic mail address as set forth below or on Exhibit A hereto or as subsequently modified by written notice and if to the Company, (a) addressed to Anacor Pharmaceuticals, Inc., 1020 East Meadow Circle, Palo Alto, CA 94303-4230, Attn: David Perry, E-mail: dperry@anacor.com, (b) with a copy to Mark B. Weeks, Cooley LLP, 3175 Hanover Street, Palo Alto, CA 94304, E-mail: mweeks@cooley.com.

 

2.5                                 Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith.

 

8

 

In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms.

 

2.6                                 Delays or Omissions; Remedies Cumulative.  No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

2.7                                 Attorneys’ Fees.  If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

 

2.8                                 Governing Law.  This Agreement and all acts and transactions pursuant hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of laws.

 

2.9                                 Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

2.10                           Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

2.11                           Aggregation of Stock.  All shares of Company stock held or acquired by affiliated Persons (including former and current partners, former and current members and former and current stockholders) shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

[Signature Pages Follow]

 

9

 

The parties hereto have executed this Registration Rights Agreement as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
ANACOR   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   James R. Marconi
    
	
 
    	
 
    	
 
    
	
 
    	
Name:   
    	
James   R. Marconi
    
	
 
    	
 
    	
 
    
	
 
    	
Title:   
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
Address:   
    	
1020   East Meadow Circle
    
	
 
    	
 
    	
Palo   Alto, California 94303
    
				

 

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

 

 

INVESTORS:

 

	
VENROCK   PARTNERS, L.P.
    	
 
    	
VENROCK   ASSOCIATES IV, L.P.
    
	
by   its General Partner, Venrock
    	
 
    	
by   its General Partner, Venrock
    
	
Partners   Management, LLC
    	
 
    	
Management   IV, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Anders D. Hove
    	
 
    	
By:
    	
/s/   Anders D. Hove
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Anders   D. Hove
    	
 
    	
Name:
    	
Anders   D. Hove
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Member
    	
 
    	
Title:
    	
Member
    
	
 
    	
 
    	
 
    
	
Address:
    	
530   Fifth Avenue, 22nd floor
    	
 
    	
Address:
    	
530   Fifth Avenue, 22nd floor
    
	
 
    	
New   York, NY 10036
    	
 
    	
 
    	
New   York, NY 10036
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
VENROCK   ENTREPRENEURS FUND IV, L.P.
    	
 
    	
VENROCK   HEALTHCARE CAPITAL PARTNERS, L.P.
    
	
by   its General Partner, VEF
    	
 
    	
By:   VHCP Management, LLC
    
	
Management   IV, LLC
    	
 
    	
Its:  General Partner
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Anders D. Hove
    	
 
    	
VHCP   CO-INVESTMENT HOLDINGS, LLC
    
	
 
    	
 
    	
 
    	
By:
    	
VHCP   Management, LLC
    
	
Name:
    	
Anders   D. Hove
    	
 
    	
Its:    Manager
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Member
    	
 
    	
/s/   Anders D. Hove
    
	
 
    	
 
    	
Anders   Hove
    
	
Address:
    	
530   Fifth Avenue, 22nd floor
    	
 
    	
Member
    
	
 
    	
New   York, NY 10036
    	
 
    	
 
    
	
 
    	
 
    	
Address:
    	
530   Fifth Avenue, 22nd floor
    
	
 
    	
 
    	
 
    	
New   York, NY 10036
    
									

 

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

 

 

EXHIBIT A

 

Schedule of Investors

 

VENROCK PARTNERS L.P.

VENROCK ASSOCIATES IV, L.P.

VENROCK ENTREPRENEURS’ FUND IV, L.P.

Venrock Healthcare Capital Partners, L.P.

VHCP Co-Investment Holdings, LLC

 

530 Fifth Avenue, 22nd floor

New York, NY 10036

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