Amendment No. 1 to Securities Purchase Agreement between Seattle Genetics, Inc. and Purchasers

Contract Categories: Business Finance › Modification Agreements
Summary

This amendment updates the Securities Purchase Agreement originally signed on May 12, 2003, between Seattle Genetics, Inc. and several investment entities, including J.P. Morgan Partners and Baker Bros. Investments. The amendment revises the number of preferred shares and warrants to be issued, updates related financial figures, and replaces certain schedules and exhibits. All other terms of the original agreement remain unchanged. The amendment is effective as of May 14, 2003, and is governed by New York law.

Read More Arrow
EX-10.3 8 dex103.txt AMENDMENT NO. 1 TO THE SECURITIES PURCHASE AGREEMENT EXHIBIT 10.3 EXECUTION COPY AMENDMENT NO. 1, dated as of May 14, 2003 (this "Amendment No. 1"), to the Securities Purchase Agreement, dated as of May 12, 2003, (the "Purchase Agreement"), among SEATTLE GENETICS, INC., a Delaware corporation (the "Company") and the purchasers identified on Schedule I to such Purchase Agreement (the "Purchasers"). RECITALS The Company and the Requisite Purchasers hereby agree to certain amendments to the Purchase Agreement, on the terms and subject to the conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Amendment No. 1, the sufficiency of which is hereby acknowledged, the parties agree as follows: Section 1. Defined Terms. Capitalized terms used but not defined in this Amendment No. 1 have the meanings ascribed to them in the Purchase Agreement. Section 2. Amendments to the Purchase Agreement. 2.1 Section 2.1 of the Purchase Agreement is hereby amended by deleting the number "1,600,000" appearing in said Section and inserting in lieu thereof the number "1,640,000." 2.2 Section 2.2 of the Purchase Agreement is hereby amended by deleting said Section in its entirety and inserting in lieu thereof new Section 2.2: "Section 2.2 Authorization of Issuance of Preferred Shares and Warrants. Subject to the Stockholder Approval, the Company has authorized (a) the issuance to the Purchasers at the Closing of an aggregate of (i) 1,640,000 shares of Series A Preferred Stock at a per share price of $25.00 and (ii) Warrants to purchase an aggregate of 2,050,000 shares of Common Stock and (b) the reservation of 18,450,000 Reserved Common Shares for issuance upon conversion of the Series A Preferred Stock and upon exercise of the Warrants." 2.3 Section 2.3 of the Purchase Agreement is hereby amended by deleting the reference to "$3,650,000" appearing in said Section and inserting in lieu thereof the text "$3,750,000." 2.4 Section 3.3(a) of the Purchase Agreement is hereby amended by deleting clauses (v) and (vi) of said Section in their entirety and inserting in lieu thereof new clauses (iv) and (v): "(iv) 16,400,000 shares shall be duly and validly reserved for issuance upon conversion of the Series A Preferred Stock, and (v) 2,050,000 shares shall be duly and validly reserved for issuance upon conversion of the Warrants." 2.5 Section 3.3(b) of the Purchase Agreement is hereby amended by deleting the number "1,600,000" appearing in said Section and inserting in lieu thereof the number "1,640,000." 2.6 Schedule I to the Purchase Agreement is hereby amended by deleting said Schedule in its entirety and inserting in lieu thereof the new Schedule I attached hereto. 2.7 Exhibit A to the Purchase Agreement is hereby amended by deleting said Exhibit in its entirety and inserting in lieu thereof the new Exhibit A, in substantially the form attached hereto. 2.8 Exhibit C to the Purchase Agreement is hereby amended by deleting said Exhibit in its entirety and inserting in lieu thereof the new Exhibit C, in substantially the form attached hereto. Section 3. References to the Purchase Agreement. From and after the date hereof, all references in the Purchase Agreement and each other agreement entered into pursuant thereto shall be deemed to be references to the Purchase Agreement after giving effect to this Amendment No. 1. Section 4. No Other Amendments. Except as expressly set forth herein, the Purchase Agreement remains in full force and effect in accordance with its terms and nothing contained herein shall be deemed (i) a waiver, amendment, modification or other change of any term, condition or provision of the Purchase Agreement or any agreement entered into pursuant to the Purchase Agreement (or a consent to any such waiver, amendment, modification or other change), (ii) a consent to any transaction or (iii) to prejudice any right or rights which the Company and each of the Purchasers may have under the Purchase Agreement and/or any agreement entered into in connection therewith. Section 5. Further Assurances. The parties hereto agree to take such further acts, to do such things, and to execute and deliver such additional conveyances, assignments, agreements and instruments, as may be reasonably requested in connection with the administration and enforcement of this Amendment No. 1 and to permit the exercise thereof in compliance with any Applicable Laws. Section 6. Headings. The headings used herein are for convenience of reference only and shall not affect the construction of, nor shall they be taken into consideration in interpreting, this Amendment No. 1. Section 7. Counterparts. This Amendment No. 1 may be executed in any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Section 8. Applicable Law. This Amendment No. 1 shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York. * * * * * -2- IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed and delivered as of the day and year first above written. COMPANY: SEATTLE GENETICS, INC. By: /s/ Clay B. Siegall Name: Clay B. Siegall Title: President and CEO REQUISITE PURCHASERS: J.P. MORGAN PARTNERS (BHCA), L.P. By: JPMP Master Fund Manager, L.P., its general partner By: JPMP Capital Corp., Its general partner By: /s/ Rodney A. Ferguson Name: Rodney A. Ferguson Title: Managing Director J.P. MORGAN PARTNERS GLOBAL INVESTORS, L.P. By: JPMP Global Investors, L.P., its general partner By: JPMP Capital Corp., Its general partner By: /s/ Rodney A. Ferguson Name: Rodney A. Ferguson Title: Managing Director -3- J.P. MORGAN PARTNERS GLOBAL INVESTORS (CAYMAN), L.P. By: JPMP Global Investors, L.P., its general partner By: JPMP Capital Corp., Its general partner By: /s/ Rodney A. Ferguson Name: Rodney A. Ferguson Title: Managing Director J.P. MORGAN PARTNERS GLOBAL INVESTORS A, L.P. By: JPMP Global Investors, L.P., its general partner By: JPMP Capital Corp., Its general partner By: /s/ Rodney A. Ferguson Name: Rodney A. Ferguson Title: Managing Director J.P. MORGAN PARTNERS GLOBAL INVESTORS (CAYMAN) II, L.P. By: JPMP Global Investors, L.P., its general partner By: JPMP Capital Corp., Its general partner By: /s/ Rodney A. Ferguson Name: Rodney A. Ferguson Title: Managing Director -4- BAKER/TISCH INVESTMENTS, L.P. By: Baker/Tisch Capital, L.P., its general partner By: Baker/Tisch Capital (GP), LLC, its general partner By: /s/ Felix Baker Name: Felix Baker, Ph.D. Title: Managing Member BAKER BROS. INVESTMENTS, L.P. By: Baker Bros. Capital, L.P., its general partner By: Baker Bros. Capital (GP), LLC, its general partner By: /s/ Felix Baker Name: Felix Baker, Ph.D. Title: Managing Member BAKER BROS. INVESTMENTS II, L.P. By: Baker Bros. Capital, L.P., its general partner By: Baker Bros. Capital (GP), LLC, its general partner By: /s/ Felix Baker Name: Felix Baker, Ph.D. Title: Managing Member -5- BAKER BIOTECH FUND I, L.P. By: Baker Biotech Capital, L.P., its general partner By: Baker Biotech Capital (GP), LLC, its general partner By: /s/ Felix Baker Name: Felix Baker, Ph.D. Title: Managing Member BAKER BIOTECH FUND II, L.P. By: Baker Biotech Capital II, L.P., its general partner By: Baker Biotech Capital II (GP), LLC, is general partner By: /s/ Felix Baker Name: Felix Baker, Ph.D. Title: Managing Member BAKER BIOTECH FUND II (Z), L.P. By: Baker Biotech Capital II, L.P., its general partner By: Baker Biotech Capital II (GP), LLC, is general partner By: /s/ Felix Baker Name: Felix Baker, Ph.D. Title: Managing Member -6- SCHEDULE I
NUMBER OF PREFERRED NUMBER OF AGGREGATE NAME AND ADDRESS SHARES WARRANTS PRICE OF SHARES - -------------------------------------------------------------------------------------------------------- J.P. Morgan Partners (BHCA), L.P. 512,031 640,039 $ 12,800,775.00 1221 Avenue of the Americas New York, NY 10020 Attention: Official Notices Clerk (fbo Srinivas Akkaraju) with a copy to: O'Melveny & Myers LLP 30 Rockefeller Plaza New York, NY 10112 Telephone: (212) 408-2400 Telecopier: (212) 408-2420 Attention: Phillip Isom, Esq. - -------------------------------------------------------------------------------------------------------- J.P. Morgan Partners Global Investors, L.P. 81,137 101,421 $ 2,028,425.00 c/o JPMP Global Investors, L.P. c/o J.P. Morgan Partners, LLC 1221 Avenue of the Americas New York, NY 10020 Attention: Official Notices Clerk (fbo Srinivas Akkaraju) with a copy to: O'Melveny & Myers LLP 30 Rockefeller Plaza New York, NY 10112 Telephone: (212) 408-2400 Telecopier: (212) 408-2420 Attention: Phillip Isom, Esq. - --------------------------------------------------------------------------------------------------------
-7-
NUMBER OF PREFERRED NUMBER OF AGGREGATE NAME AND ADDRESS SHARES WARRANTS PRICE OF SHARES - -------------------------------------------------------------------------------------------------------- J.P. Morgan Partners Global Investors (Cayman), L.P. 41,182 51,478 $ 1,029,550.00 c/o JPMP Global Investors, L.P. c/o J.P. Morgan Partners, LLC 1221 Avenue of the Americas New York, NY 10020 Attention: Official Notices Clerk (fbo Srinivas Akkaraju) with a copy to: O'Melveny & Myers LLP 30 Rockefeller Plaza New York, NY 10112 Telephone: (212) 408-2400 Telecopier: (212) 408-2420 Attention: Phillip Isom, Esq. - -------------------------------------------------------------------------------------------------------- J.P. Morgan Partners Global Investors A, L.P. 11,061 13,826 $ 276,525.00 c/o JPMP Global Investors, L.P. c/o J.P. Morgan Partners, LLC 1221 Avenue of the Americas New York, NY 10020 Attention: Official Notices Clerk (fbo Srinivas Akkaraju) with a copy to: O'Melveny & Myers LLP 30 Rockefeller Plaza New York, NY 10112 Telephone: (212) 408-2400 Telecopier: (212) 408-2420 Attention: Phillip Isom, Esq. - --------------------------------------------------------------------------------------------------------
-8-
NUMBER OF PREFERRED NUMBER OF AGGREGATE NAME AND ADDRESS SHARES WARRANTS PRICE OF SHARES - -------------------------------------------------------------------------------------------------------- J.P. Morgan Partners Global Investors (Cayman) II, L.P. 4,589 5,736 $ 114,725.00 c/o JPMP Global Investors, L.P. c/o J.P. Morgan Partners, LLC 1221 Avenue of the Americas New York, NY 10020 Attention: Official Notices Clerk (fbo Srinivas Akkaraju) with a copy to: O'Melveny & Myers LLP 30 Rockefeller Plaza New York, NY 10112 Telephone: (212) 408-2400 Telecopier: (212) 408-2420 Attention: Phillip Isom, Esq. - -------------------------------------------------------------------------------------------------------- Baker/Tisch Investments, L.P. 39,650 49,563 $ 991,250 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Felix Baker with a copy to: Baker Brothers Investments 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Leo Kirby - -------------------------------------------------------------------------------------------------------- Baker Bros. Investments, L.P. 26,780 33,475 $ 669,500 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Felix Baker with a copy to: Baker Brothers Investments 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Leo Kirby - --------------------------------------------------------------------------------------------------------
-9-
NUMBER OF PREFERRED NUMBER OF AGGREGATE NAME AND ADDRESS SHARES WARRANTS PRICE OF SHARES - -------------------------------------------------------------------------------------------------------- Baker Bros. Investments II, L.P. 27,625 34,531 $ 690,625 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Felix Baker with a copy to: Baker Brothers Investments 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Leo Kirby - -------------------------------------------------------------------------------------------------------- Baker Biotech Fund I, L.P. 271,830 339,788 $ 6,795,750 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Felix Baker with a copy to: Baker Brothers Investments 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Leo Kirby - -------------------------------------------------------------------------------------------------------- Baker Biotech Fund II, L.P. 249,730 312,162 $ 6,243,250 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Felix Baker with a copy to: Baker Brothers Investments 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Leo Kirby - --------------------------------------------------------------------------------------------------------
-10-
NUMBER OF PREFERRED NUMBER OF AGGREGATE NAME AND ADDRESS SHARES WARRANTS PRICE OF SHARES - -------------------------------------------------------------------------------------------------------- Baker Biotech Fund II (Z), L.P. 34,385 42,981 $ 859,625 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Felix Baker with a copy to: Baker Brothers Investments 667 Madison Avenue, 17th Floor New York, New York 10021 Facsimile: (212) 521-2245 Attention: Leo Kirby - -------------------------------------------------------------------------------------------------------- BAVP, L.P. 100,000 125,000 $ 2,500,000 c/o BA Venture Partners 950 Tower Lane Suite 700 Foster City, CA 94404 Attention: Louis C. Bock - -------------------------------------------------------------------------------------------------------- Delphi Ventures VI, L.P./1/ 200,000 250,000 $ 5,000,000 c/o Delphi Ventures 3000 Sand Hill Rd. Bldg. 1, Ste. 135 Menlo Park, CA 94025 ###-###-#### ###-###-#### fax Attention: Deepa Pakianathan - -------------------------------------------------------------------------------------------------------- Delphi BioInvestments VI, L.P. c/o Delphi Ventures 3000 Sand Hill Rd. Bldg. 1, Ste. 135 Menlo Park, CA 94025 ###-###-#### ###-###-#### fax Attention: Deepa Pakianathan - --------------------------------------------------------------------------------------------------------
- ---------- /1/ Prior to Closing, a portion of the shares of Preferred Stock and Warrants being purchased by Delphi Ventures VI, L.P. will be allocated to Delphi BioInvestments VI, L.P. -11-
NUMBER OF PREFERRED NUMBER OF AGGREGATE NAME AND ADDRESS SHARES WARRANTS PRICE OF SHARES - -------------------------------------------------------------------------------------------------------- T. Rowe Price Health Sciences Fund, Inc. 40,000 50,000 $ 1,000,000 c/o T. Rowe Price Associates, Inc. 100 E. Pratt Street Baltimore, MD 21202 Facsimile: 410 ###-###-#### Attention: Bonnie Maher with a copy to: Darrell N. Braman Associate Legal Counsel 100 E. Pratt Street Baltimore, MD 21202 Facsimile: 410 ###-###-#### Facsimile: 410 ###-###-#### - -------------------------------------------------------------------------------------------------------- Total 1,640,000 2,050,000 $ 41,000,000 - --------------------------------------------------------------------------------------------------------
-12-