EXHIBIT 4.4
STOCK PURCHASE AGREEMENT
THIS STOCK PURCHASE AGREEMENT (the "Agreement") is made as of the
22nd day of January, 1999, by and between VICAL INCORPORATED, a Delaware
corporation (the "Company"), and PFIZER INC, a Delaware corporation
("Investor").
THE PARTIES HEREBY AGREE AS FOLLOWS:
1. PURCHASE AND SALE OF STOCK.
1.1 SALE AND ISSUANCE OF COMMON STOCK. Subject to the terms
and conditions of this Agreement, Investor hereby purchases and the Company
hereby sells and issues to Investor 317,969 shares (the "Shares") of Common
Stock for the purchase price per share equal to 125% of the average of the
closing prices reported by the Nasdaq National Market System for the fifteen
(15) consecutive trading days prior to, but not including, the Closing Date,
for an aggregate purchase price of $6,000,000 (the "Purchase Price").
1.2 CLOSING. The purchase and sale of the Common Stock shall
take place at the offices of the Company, 0000 Xxxxx Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx, at 10 A.M., on the date that the Collaborative Research and
Option Agreement between the Company and Investor, dated the date hereof,
becomes effective, or at such other times and places as the Company and
Investor mutually agree upon, verbally or in writing (which times and places
are designated as the "Closing"). At the Closing, the Company shall instruct
its transfer agent, ChaseMellon Shareholder Services L.L.C., to deliver
promptly to Investor a certificate representing the Common Stock which such
Investor is purchasing against delivery to the Company by such Investor of a
bank wire in same day funds in the amount of the Purchase Price therefor
payable to the Company's order.
1.3 DEFINITIONS.
(a) The following terms, as used herein, have the following
meanings:
"Closing Date" means the date of the Closing.
"Common Stock" means the Common Stock, par value $0.01 per
share of the Company, together with the associated preferred stock purchase
rights established pursuant to the Rights Agreement dated March 20, 1995
between the Company and ChaseMellon Shareholder Services L.L.C. as rights
agent.
"Material Adverse Effect" means a material adverse
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effect on the condition (financial or otherwise), business,assets, results of
operations of a corporation and its subsidiaries taken as a whole.
"1934 Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.
"1933 Act" means the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.
"Person" shall mean an individual, corporation, partnership,
trust, business trust, association, joint stock company, joint venture, pool,
syndicate, sole proprietorship, unincorporated organization, governmental
authority or any other form of entity not specifically listed herein.
"SEC" shall mean the U.S. Securities and Exchange Commission.
2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The
Company hereby represents and warrants to Investor that:
2.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. The
Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite
corporate power and authority to carry on its business as now conducted. The
Company is duly qualified to transact business and is in good standing in
each jurisdiction in which the failure so to qualify would have a Material
Adverse Effect.
2.2 CAPITALIZATION. The authorized capital of the Company
consists of:
(a) PREFERRED STOCK. 5,000,000 shares of Preferred Stock, of
which 40,000 shares have been designated Series A Participating Preferred
Stock, par value $.01 per share. There are no shares of Series A
Participating Preferred Stock issued and outstanding.
(b) COMMON STOCK. 40,000,000 shares of Common Stock, of
which 15,836,028 shares were issued and outstanding on December 4, 1998.
2.3 AUTHORIZATION. All corporate action on the part of the
Company, its officers, directors and stockholders necessary for (i) the
authorization, execution and delivery of this Agreement, (ii) the performance
of all obligations of the Company hereunder and (iii) the authorization,
issuance (or reservation for issuance) and delivery of the Common Stock being
sold hereunder, to the extent that the foregoing requires performance on or
prior to the Closing, has been taken and this Agreement constitutes the valid
and legally binding obligation
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of the Company, enforceable against the Company in accordance with its terms.
2.4 VALID ISSUANCE OF COMMON STOCK. The Common Stock
purchased by the Investor hereunder has been duly and validly issued and is
fully paid and nonassessable and, based in part upon the representations of
the Investor in this Agreement, was issued in compliance with all applicable
federal and state securities laws.
2.5 SEC FILINGS. The Company has registered its Common Stock
pursuant to Section 12 of the 1934 Act, and the Common Stock is quoted on the
Nasdaq National Market. The Company has filed all forms, reports and
documents required to be filed pursuant to the federal securities laws and
the rules and regulations promulgated thereunder for a period of at least
twelve (12) months immediately preceding the offer or sale of the Shares. The
Company's filings with the SEC complied as of their respective filing dates,
or in the case of registration statements, their respective effective dates,
in all material respects with all applicable requirements of the 1933 Act and
the 1934 Act and the rules and regulations promulgated thereunder. None of
such filings, including, without limitation, any exhibits, financial
statements or schedules included therein, at the time filed, or in the case
of registration statements, at their respective filing dates, contained any
untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.
2.6 LITIGATION. Except as disclosed in the Company's filings
with the SEC, there is no action, suit or proceeding before or by any court
or governmental agency or body, domestic or foreign, now pending or, to the
knowledge of the Company, threatened, against or affecting the Company, or
any of its properties, which might result in any material adverse change in
the condition (financial or otherwise) or in the earnings, business affairs
or business prospects of the Company, or which might materially and adversely
affect the properties or assets thereof.
2.7 NO DEFAULT. Except as disclosed in the Company's filings
with the SEC, the Company is not in default in the performance or observance
of any material obligation, agreement, covenant or condition contained in any
indenture, mortgage, deed of trust or other material agreement or instrument
to which it is a party or by which it or its property may be bound, except
for defaults that have not had and would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.
2.8 SUBSEQUENT EVENTS. Since September, 1998, (i) the
Company has incurred no liability or obligation, contingent
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or otherwise, that taken as a whole, is material in the aggregate to the
Company, except in the ordinary course of business, and (ii) there has been
no material adverse change in the condition or results of operations,
financial or otherwise, of the Company, taken as a whole.
2.9 CONSENTS AND APPROVALS. No consent, approval,
qualification, order or authorization of, or filing with, any local, state or
federal governmental authority or any third party is required on the part of
the Company in connection with the Company's valid execution, delivery or
performance of this Agreement, or the offer, sale or issuance of the Shares
by the Company, other than the filings that have been made prior to the
Closing, except that any notices of sale required to be filed by the Company
with the SEC under Regulation D of the 1933 Act, or such post-closing filings
as may be required under applicable state securities laws, which will be
timely filed within the applicable periods therefor.
2.10 COMPLIANCE WITH LAWS AND COURT ORDERS. The Company is
not in violation of any applicable law, rule, regulation, judgment,
injunction, order or decree except for violations that have not had and would
not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.
3. REPRESENTATIONS AND WARRANTIES OF INVESTOR. This
Agreement is made with Investor in reliance upon the Investor's
representation and warranties to the Company, which by such Investor's
execution of this Agreement the Investor hereby confirms, that:
3.1 ORGANIZATION AND EXISTENCE. Investor is a corporation
duly incorporated, validly existing and in good standing under the laws of
Delaware and has all corporate powers and all material governmental licenses,
authorizations, permits, consents and approvals required to carry on its
business as now conducted, except for those licenses, authorizations,
permits, consents and approvals the absence of which would not, individually
or in the aggregate, have a Material Adverse Effect.
3.2 CORPORATE AUTHORIZATION. The execution, delivery and
performance by Investor of this Agreement are within the corporate powers of
Investor and have been duly authorized by all necessary corporate action on
the part of Investor. This Agreement constitutes its valid and legally
binding obligation, enforceable in accordance with its terms.
3.3 PURCHASE ENTIRELY FOR OWN ACCOUNT. The Common Stock to
be received by Investor will be acquired for investment for Investor's own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that Investor has no present intention
of selling, granting
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any participation in, or otherwise distributing the same. By executing this
Agreement, Investor further represents that Investor does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to such person or to any third person, with
respect to any of the Common Stock.
3.4 CONFIDENTIALITY. Investor hereby represents, warrants
and covenants that it shall maintain as confidential all information provided
to it by the Company hereunder.
3.5 RESTRICTED SECURITIES. Investor understands that the
shares of Common Stock it is purchasing are characterized as "restricted
securities" under the federal securities laws inasmuch as they are being
acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be
resold without registration under the 1933 Act only under certain limited
circumstances. In this connection Investor represents that it is familiar
with SEC Rule 144, as presently in effect, and understands the resale
limitations imposed thereby and by the 1933 Act.
3.6 LEGENDS. It is understood that the certificates
evidencing the Common Stock may bear one or all of the following legends:
(a) "These securities have not been registered under the
Securities Act of 1933. They may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with
respect to the securities under such Act or an opinion of counsel
satisfactory to Vical Incorporated that such registration is not required or
unless sold pursuant to Rule 144 of such Act."
(b) If required by the authorities of any state in connection
with the issuance or sale of the Common Stock the legend required by such
state authority.
3.7 REMOVAL OF LEGENDS.
(a) Any legend endorsed on a certificate pursuant to
Subsection 3.6(a) shall be removed (i) if the shares of Common Stock
represented by such certificate shall have been resold under an effective
registration statement under the 1933 Act or otherwise lawfully sold in a
public transaction, (ii) if such shares may be transferred in compliance with
Rule 144(k) promulgated under the 1933 Act, or (iii) if the holder of such
shares shall have provided the Company with an opinion of counsel, in form
and substance acceptable to the Company and its counsel, stating that a
public sale, transfer or assignment of such shares may be made without
registration.
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(b) Any legend endorsed on a certificate pursuant to
Subsection 3.6(b) shall be removed if the Company receives an order of the
appropriate state authority authorizing such removal or if the holder of such
shares provides the Company with an opinion of counsel, in form and substance
acceptable to the Company and its counsel, stating that such state legend may
be removed.
4. ADDITIONAL DELIVERIES TO INVESTOR AT CLOSING. The
obligations of Investor under Subsection 1.1 of this Agreement are subject to
the fulfillment on or before the Closing of each of the following conditions,
the waiver of which shall not be effective if such Investor does not consent
in writing thereto:
4.1 COMPLIANCE CERTIFICATE. The President or a Vice
President of the Company shall deliver to Investor at the Closing a
certificate stating that there has been no material adverse change in the
business, affairs, prospects, operations, properties, assets or condition of
the Company since September 30, 1998 other than because of operating losses
and changes in the ordinary course of business.
4.2 SECRETARY'S CERTIFICATE. The Secretary of the Company
shall deliver to Investor at the Closing a certificate certifying that
attached thereto are true and complete copies of each of the following
documents:
(a) Restated Certificate of Incorporation as in effect on the
Closing Date, of the Company;
(b) Bylaws, as amended as in effect on the Closing Date, of
the Company; and
(c) Copies of the resolutions of the Company's Board of
Directors authorizing the execution and delivery of this Agreement and the
performance by the Company of the transactions contemplated herein.
4.3 HSR ACT. If applicable, the waiting period under the
Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976, including any
extensions of said waiting period, shall have expired and any investigations
relating to the transactions contemplated herein that may have been opened by
either the Department of Justice or the Federal Trade Commission (by means of
a request for additional information or otherwise) shall have been terminated.
5. REGISTRATION RIGHTS. The Company covenants and agrees as
follows:
5.1 CERTAIN ADDITIONAL DEFINITIONS. As used in this
Agreement, the following capitalized terms shall have the following meanings:
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"PROSPECTUS" shall mean the prospectus included in any
Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by such Registration Statement and by all
other amendments and supplements to the prospectus, including post-effective
amendments and all material incorporated by reference in such prospectus.
"REGISTER," "REGISTERED" and "REGISTRATION" refer to a
registration effected by preparing and filing a registration statement or
similar document in compliance with the 1933 Act, and such registration
statement or document becoming effective under the 1933 Act.
"REGISTRABLE SECURITIES" shall mean (i) the Common Stock
purchased by the Investor pursuant to this Agreement; and (ii) any Common
Stock issued as (or issuable upon the conversion or exercise of any warrant,
right or other security which is issued as) a dividend or other distribution
with respect to, or in exchange for or in replacement of, such Common Stock.
"REGISTRATION STATEMENT" shall mean any registration statement
of the Company that covers any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and
supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such
Registration Statement.
5.2 REGISTRATION. The Company will use its reasonable best
efforts to effect a registration to permit the sale of the Registrable
Securities as described below, and pursuant thereto the Company will:
(a) prepare and file at such time as is mutually agreed upon
by the Company and Investor, and use its reasonable best efforts to
thereafter have declared effective by the SEC, a Registration Statement on
Form S-3 (or if the use of Form S-3 or any successor form is unavailable, on
another appropriate form, including but not limited to, Forms X-0, X-0 or
their successor forms) relating to resale of all of the shares of the
Registrable Securities and use its reasonable best efforts to cause such
Registration Statement to remain continuously effective for a period which
will terminate when all Registrable Securities covered by such Registration
Statement, as amended from time to time, have been sold or when the
Registrable Securities may be sold under Rule 144(k) under the 1933 Act;
(b) prepare and file with the SEC such amendments and
post-effective amendments to the Registration Statement and the Prospectus
and supplements to the Prospectus as may be necessary to keep such
Registration Statement effective for the period specified in
Subsection 5.2(a) and to comply with the provisions
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of the 1933 Act and the 1934 Act with respect to the distribution of all
Registrable Securities; provided, however, that with respect to
Subsections 5.2(a) and 5.2(b), before filing a Registration Statement or
Prospectus or any amendments or supplements thereto, the Company will
furnish to the Investor copies of all such documents proposed to be filed,
which documents will be subject to the review and comment of Investor's
counsel;
(c) notify Investor promptly, and confirm such notice in
writing, (i) when the Prospectus or any supplement or post-effective
amendment has been filed, and, with respect to the Registration Statement or
any post-effective amendment, when the same has become effective, (ii) of any
request by the SEC for amendments or supplements to the Registration
Statement or Prospectus or for additional information, (iii) of the issuance
by the SEC of any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for that purpose, and (iv) of
the receipt by the Company of any notification with respect to the suspension
of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose;
(d) make every reasonable effort to obtain the withdrawal of
any order suspending the effectiveness of the Registration Statement at the
earliest possible moment;
(e) furnish to the Investor, without charge, at least one
copy of the Registration Statement and any post-effective amendment thereto,
including financial statements and schedules, all, upon a Investor's request,
documents incorporated therein by reference and all exhibits thereto
(including those incorporated by reference);
(f) deliver to the Investor, without charge, as many copies
of the Prospectus (including each preliminary prospectus) and any amendment
or supplement thereto as it may reasonably request in order to facilitate the
disposition of the Registrable Securities;
(g) cause all Registrable Securities covered by the
Registration Statement to be listed on each securities exchange or market on
which similar securities issued by the Company are then listed, and if the
securities are not so listed to use its reasonable best efforts promptly to
cause all such securities to be listed on either the New York Stock Exchange,
the American Stock Exchange or the Nasdaq National Market;
(h) use reasonable best efforts to qualify or register the
Registrable Securities for sale under (or obtain exemptions from the
application of) the Blue Sky laws of such jurisdictions as are applicable.
The Company shall not be required to qualify as a foreign corporation or to
file a
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general consent to service of process in any such jurisdiction where it is
not presently qualified or where it would be subject to general service of
process or taxation as a foreign corporation in any jurisdiction where it is
not now so subject;
(i) otherwise use its reasonable best efforts to comply with
all applicable rules and regulations of the SEC under the 1933 Act and the
1934 Act and take such other actions as may be reasonably necessary to
facilitate the registration of the Registrable Securities hereunder and make
available to its security holders, as soon as reasonably practicable, an
earnings statement covering the period of at least twelve months beginning
with the first day of the Company's first full calendar quarter after the
effective date of the Registration Statement, which earnings statement will
satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
thereunder;
(j) notify the Investor, at any time when a Prospectus
relating thereto is required to be delivered under the 1933 Act, of the
happening of any event as a result of which the Prospectus included in such
Registration Statement contains an untrue statement of a material fact or
omits any fact necessary to make the statements therein not misleading, and,
at the request of the Investor, the Company will prepare a supplement or
amendment to such Prospectus so that, as thereafter delivered to the
purchasers of such Registrable Securities, such Prospectus will not contain
an untrue statement of a material fact or omit to state any fact necessary to
make the statements therein not misleading;
(k) provide a transfer agent and registrar for all such
Registrable Securities not later than the effective date of such Registration
Statement;
(l) enter into such customary agreements (including
underwriting agreements in customary form) and take all such other actions as
the Investor, or the underwriter(s) or other Person(s) administering the
offering, if any, reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities;
(m) make available for inspection by the Investor, any
underwriter or other Person participating in any disposition pursuant to such
Registration Statement and any attorney, accountant or other agent retained
by the Investor or underwriter, financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company's
officers, directors, employees and independent accountants to supply all
information reasonably requested by the Investor, underwriter, attorney,
accountant or agent in connection with such Registration Statement;
(n) if any such registration or comparable statement refers
to the Investor by name or otherwise as the holder of any
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securities of the Company and if in its sole and exclusive judgment, the
Investor is or might be deemed to be an underwriter or a controlling person
of the Company, the Investor will have the right to require (i) the insertion
therein of language, in form and substance satisfactory to the Investor and
presented to the Company in writing, to the effect that the holding by the
Investor of such securities is not to be construed as a recommendation by the
Investor of the investment quality of the Company's securities covered
thereby and that such holding does not imply that Investor will assist in
meeting any future financial requirements of the Company, or (ii) in the
event that such reference to the Investor by name or otherwise is not
required by the 1933 Act or any similar federal statute then in force, the
deletion of the reference to the Investor;
(o) use its best efforts to cause such Registrable Securities
covered by such Registration Statement to be registered with or approved by
such other United States governmental agencies or authorities as may be
necessary to enable the sellers thereof to consummate the disposition of such
Registrable Securities; provided, however, that the Company shall not be
required for any such purpose to qualify generally to do business as a
foreign corporation in any jurisdiction where, but for the requirements of
this Subsection 5.2(o), it would not be obligated to qualify or to consent to
general service of process in any such jurisdiction;
(p) furnish the Investor with a cold comfort letter from the
Company's independent public accountants in customary form and covering such
matters of the type customarily covered by cold comfort letters; and
(q) furnish the Investor with opinions of counsel covering
all such matters customarily covered regarding the registration of the
Company's securities.
Investor shall furnish to the Company such information
regarding the distribution of such securities as the Company may from time to
time reasonably request in writing.
If at any time, the Company delivers a certificate in writing
to the Investor, to the effect that a delay in the sale of Registrable
Securities by the Investor under the Registration Statement is necessary
because a sale pursuant to such Registration Statement in its then current
form would reasonably be expected to constitute a violation of the federal
securities laws the Investor shall agree not to sell or otherwise transfer
such Registrable Securities for the period of time specified by the Company
in its certificate. In no event shall such delay exceed ten (10) business
days; PROVIDED, HOWEVER, that if, prior to the expiration of such ten (10)
business day period, the Company delivers a certificate in writing to the
Investor to the effect that a further delay in such sale beyond such ten (10)
business day period is necessary because a sale pursuant to such
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Registration Statement in its then current form would reasonably be expected
to constitute a violation of the federal securities laws, the Company may
refuse to permit the Investor to resell any Registrable Securities pursuant
to such Registration Statement for an additional period not to exceed
five (5) business days.
5.3 REGISTRATION EXPENSES. All expenses incident to the
Company's performance of or compliance with this Agreement, including without
limitation all registration and filing fees, fees with respect to the filings
required to be made with the National Association of Securities Dealers,
Inc., fees and expenses of compliance with the securities or blue sky laws,
printing expenses, messenger, telephone and delivery expenses, fees and
disbursements of counsel for the Company, fees and disbursements of all
independent certified public accountants of the Company, fees and expenses
incurred in connection with the listing of the securities, rating agency fees
and the fees and expenses of any person, including special experts, retained
by the Company, will be borne by the Company, regardless of whether the
Registration Statement becomes effective; provided, however, that the Company
will not be required to pay discounts or commissions of underwriters, selling
brokers, dealer managers or similar securities industry professionals
relating to the distribution of the Registrable Securities or fees or
disbursements of any counsel to the Investor.
5.4 RULE 144. The Company covenants that it will file the
reports required to be filed by it under the 1933 Act and the 1934 Act and
the rules and regulations thereunder, and it will take such further action as
the Investor may reasonably request, all to the extent required to enable
Investor to sell Registrable Securities without registration under the 1933
Act in reliance on the exemption provided by Rule 144 or Rule 144A under the
1933 Act or any successor or similar rules or statues. Upon the request of
the Investor, the Company will deliver to the Investor a written statement as
to whether the Company has complied with such information and requirements.
5.5 SELECTION OF UNDERWRITER. If the registration is for a
registered public offering involving an underwriting, the Investor and the
Company shall enter into an underwriting agreement in customary form with an
underwriter or underwriters mutually agreed upon by the Investor and the
Company; provided however, that the Investor will not be required to make any
representations or warranties to the Company or to the underwriter(s) (other
than representations and warranties regarding the Investor's intended method
of distribution) or to undertake any indemnification obligations to the
Company or the underwriter(s) with respect thereto except as otherwise
provided in the Agreement.
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5.6 INDEMNIFICATION.
(a) The Company will indemnify and hold harmless the Investor
and each of its officers, directors and partners, and each person controlling
such Investor, with respect to which such registration, qualification or
compliance has been effected pursuant to this Agreement, and each
underwriter, if any, and each person who controls any underwriter of the
Registrable Securities held by or issuable to such Investor, against all
claims, losses, expenses, damages and liabilities (or actions in respect
thereto) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any Prospectus, offering circular
or other document (including any related Registration Statement, notification
or the like) incident to any such registration, qualification or compliance,
or based on any omission (or alleged omission) to state therein a material
fact required to be stated therein or necessary to make the statement therein
not misleading, or any violation or alleged violation by the Company of the
1933 Act, the 1934 Act and any state securities law or any rule or regulation
promulgated under the 1933 Act, the 1934 Act or any state securities law and
relating to action or inaction required of the Company in connection with any
such registration, qualification or compliance, and will reimburse such
Investor, each of its officers, directors and partners, and each person
controlling such Investor, each such underwriter and each person who controls
any such underwriter, within a reasonable amount of time after incurred, for
any reasonable legal and any other expenses incurred by them in connection
with investigating, defending or settling any such claim, loss, damage,
liability or action; provided, however, that the indemnity agreement
contained in this Subsection 5.6(a) shall not apply to amounts paid in
settlement of any such claim, loss, damage, liability, or action if such
settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld); and provided further, that the Company
will not be liable in any such case to the extent that any such claim, loss,
damages or liability arises out of or is based on any untrue statement or
omission based upon written information furnished to the Company by such
Investor, controlling person or underwriter specifically for use therein.
(b) The Investor will, if Registrable Securities held by or
issuable to such Investor are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify and
hold harmless the Company, each of its directors and officers, each
underwriter, if any, of the Company's securities covered by such a
Registration Statement, and each person who controls the Company within the
meaning of the 1933 Act, against all claims, losses, expenses, damages and
liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained
in any such Registration Statement, Prospectus, offering circular or other
document, or any omission
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(or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statement therein not misleading, and will
reimburse the Company, such director, officers, partners, persons or
underwriters for any reasonable legal or any other expenses incurred in
connection with investigating, defending or settling any such claim, loss,
damages, liability or action, in each case to the extent, but only to the
extent, that such untrue statement (or alleged untrue statement) or omission
(or alleged omission) is made in such Registration Statement, Prospectus,
offering circular or other document in reliance upon and in conformity with
written information furnished to the Company by the Investor specifically for
use therein; provided, however, that the indemnity agreement contained in
this Subsection 5.6(b) shall not apply to amounts paid in settlement of any
such claim, loss, damage, liability or action if such settlement is effected
without the consent of the Investor (which consent shall not be unreasonably
withheld); and provided further, that the total amount for which the Investor
shall be liable under this Subsection 5.6(b) shall not in any event exceed
the aggregate proceeds received by the Investor from the sale of Registrable
Securities held by such Investor in such registration.
(c) Each party entitled to indemnification under this
Subsection 5.6 (the "Indemnified Party") shall give notice to the party
required to provide indemnification (the "Indemnifying Party") promptly after
such Indemnified Party has actual knowledge of any claim as to which
indemnity may be sought, and shall permit the Indemnifying Party to assume
the defense of any such claim or any litigation resulting therefrom; provided
that counsel for the Indemnifying Party, who shall conduct the defense of
such claim or litigation, shall be approved by the Indemnified Party (whose
approval shall not be unreasonably withheld), and the Indemnified Party may
participate in such defense at such party's expense; and provided further,
that the failure of any Indemnified Party to give notice as provided herein
shall not relieve the Indemnifying party of its obligations hereunder, unless
such failure resulted in prejudice to the Indemnifying Party; and provided
further, that an Indemnified Party shall have the right to retain separate
counsel, with the 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. 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.
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(d) The obligations of the Company and Investor under this
Subsection 5.6 shall survive the completion of any offering of Registrable
Securities in a Registration Statement under Section 5, and otherwise and
will survive the transfer of the Registrable Securities.
6. MISCELLANEOUS.
6.1 SUCCESSORS AND ASSIGNS. 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.
6.2 GOVERNING LAW. This Agreement shall be governed by and
construed under the laws of the State of California (irrespective of its
choice of law principles).
6.3 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.
6.4 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.
6.5 NOTICES. Unless otherwise provided, any notice required
or permitted under this Agreement shall be given in writing and shall be
deemed effectively given upon personal delivery to the party to be notified,
or if sent by telex or telecopier, upon receipt of the correct answerback, or
upon deposit with the United States Post Office, by registered or certified
mail, or upon deposit with an overnight air courier, in each case postage
prepaid and addressed to the party to be notified at the address as follows,
or at such other address as such party may designate by ten days' advance
written notice to the other party:
If to the Company:
Vical Incorporated
0000 Xxxxx Xxxxxx Xxxxx
Xxxxx 000
Xxx Xxxxx, XX 00000
Attn: Secretary
Fax: (000) 000-0000
Phone: (000) 000-0000
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with a copy to:
Pillsbury Madison & Sutro LLP
X.X. Xxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxx, Xx.
Fax: (000) 000-0000
Phone: (000) 000-0000
If to the Investor:
Pfizer Inc
Groton Plant and Xxxxxxxx Xxxxxx
Xxxxxxx Xxxxx Xxxx
Xxxxxx, XX 00000-0000
Attn: Xxxx XxxxxXxxxx
Fax: (000) 000-0000
Phone: (000) 000-0000
6.6 FINDERS' FEE. Each party represents that it neither is
nor will be obligated for any finders' fee or commission in connection with
this transaction. Investor agrees to indemnify and hold harmless the Company
from any liability for any commission or compensation in the nature of a
finders' fee (and the costs and expenses of defending against such liability
or asserted liability) for which the Investor or any of its officers,
partners, employees or representatives is responsible.
The Company agrees to indemnify and hold harmless Investor
from any liability for any commission or compensation in the nature of a
finders' fee (and the costs and expenses of defending against such liability
or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible.
6.7 EXPENSES. The Company and the Investor shall pay their
respective costs and expenses incurred with respect to the negotiation,
execution, delivery and performance of this Agreement.
6.8 AMENDMENTS AND WAIVERS. Any term of this Agreement may
be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the
Investor. Any amendment or waiver effected in accordance with this paragraph
shall be binding upon each holder of any securities purchased under this
Agreement at the time outstanding, each future holder of all such securities,
and the Company.
6.9 SEVERABILITY. If one or more provisions of this
Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of this Agreement shall
be interpreted as if such
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provision were so excluded and shall be enforceable in accordance with its
terms.
6.10 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements and understandings, both oral and written,
between the parties with respect to the subject matter hereof. No
representation, inducement, promise, understanding, condition or warranty not
set forth herein has been made or relied upon by either party hereto. Neither
this Agreement nor any provision hereof is intended to confer upon any Person
other than the parties hereto any rights or remedies hereunder.
6.11 OTHER AGREEMENTS. The Company will not enter into any
other agreement with respect to its securities which violates the rights
granted to the Investor in this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first above written.
VICAL INCORPORATED
By /s/ XXXXX X. XXXXXXXXX
----------------------------------
Xxxxx X. Xxxxxxxxx, M.D.
Title President & C.E.O.
------------------------------
PFIZER INC
By /s/ XXXXXX X. XXXXX
----------------------------------
Xxxxxx X. Xxxxx, Ph.D.
Title President, Central Research
------------------------------
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