UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
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VAXGEN, INC.
(Name of Issuer)
COMMON STOCK
(Title of Class of Securities)
922390208
(CUSIP Number)
William D. Savoy Gail J. Gordon
Vulcan Ventures Incorporated Foster Pepper & Shefelman PLLC
110-110th Avenue N.E., Suite 550 1111 Third Avenue, Suite 3400
Bellevue, WA 98004 Seattle, WA 98101
(206) 453-1940 (206) 447-4400
(Name, Address and Telephone Number of Persons Authorized to Receive
Notices and Communications)
December 14, 1999
(Date of Event which Requires Filing of This Statement)
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If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box. |_|
Note: Schedules filed in paper format shall include a signed original
and five copies of the schedule including all exhibits. See ss.240.13d-7
for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
<PAGE>
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CUSIP NO. 922390208 13D Page 2 of 8 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Vulcan Ventures Incorporated 91-1374788
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
State of Washington
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NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY -0- shares
EACH
REPORTING PERSON
WITH
------ --------------------------------------------
8 SHARED VOTING POWER
2,955,992 - shares (1)
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9 SOLE DISPOSITIVE POWER
-0- shares
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10 SHARED DISPOSITIVE POWER
2,955,992 shares (1)
- --------------------------- ------ --------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,955,992 shares (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.8%
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14 TYPE OF REPORTING PERSON*
CO
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- ---------------
(1) Directly owned by Vulcan Ventures Incorporated. Paul G. Allen is the sole
shareholder of Vulcan Ventures Incorporated and may be deemed to have shared
voting and dispositive power with respect to such shares.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 922390208 13D Page 3 of 8 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Paul G. Allen
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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NUMBER OF SHARES BENEFICIALLY 7 SOLE VOTING POWER
OWNED BY -0- shares
EACH
REPORTING PERSON
WITH
------- ------------------------------------
8 SHARED VOTING POWER
2,955,992 shares (1)
------- ------------------------------------
9 SOLE DISPOSITIVE POWER
-0- shares
------- ------------------------------------
10 SHARED DISPOSITIVE POWER
2,955,992 shares (1)
- ---------------------------------- ------- ------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,955,992 shares (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
- --------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.8%
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14 TYPE OF REPORTING PERSON*
IN
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- ---------------
(1) Directly owned by Vulcan Ventures Incorporated. Paul G. Allen is the sole
shareholder of Vulcan Ventures Incorporated and may be deemed to have shared
voting and dispositive power with respect to such shares.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
Introductory Note
This Amendment No. 2 (the "Amendment") amends and supplements the
statement on Schedule 13D, filed July 12, 1999, as previously amended, relating
to common stock, $0.01 par value per share (the "Common Stock") of VaxGen, Inc.,
a Delaware Corporation (the "Issuer").
Item 3: Source and Amount of Funds or Other Consideration
On December 14, 1999, Vulcan Ventures Incorporated ( "Vulcan Ventures")
acquired 2,173,913 shares of Common Stock pursuant to a Common Stock Purchase
Agreement dated as of October 15, 1999 between the Issuer and Vulcan Ventures.
Vulcan Ventures paid cash consideration of $11.50 per share for an aggregate
purchase price of $24,999,999.50. None of the purchase price consists of funds
or other consideration borrowed or otherwise obtained for the purpose of
acquiring, holding, trading or voting the shares of Common Stock acquired
pursuant to Stock Purchase Agreement.
Item 4. Purpose of Transaction
Vulcan Ventures and Mr. Allen acquired the Issuer's Common Stock for
investment purposes. Vulcan Ventures or Mr. Allen may purchase additional shares
of common stock from time to time, depending on various factors, including,
without limitation, the price of the common stock, stock market conditions and
the business prospects of the Issuer. Vulcan Ventures and Mr. Allen may also
determine to dispose of some or all of their beneficial holdings of the Issuer's
securities. They reserve the right to increase or decrease their holdings on
such terms and at such times as they may decide, subject to contractual
limitations as set forth in Item 6.
Except as set forth in this Item 4 and as contemplated by the Stock
Purchase Agreement described in Item 6 below, Vulcan Ventures and Mr. Allen have
no present plan or proposal that relates to or would result in (i) the
acquisition of additional securities or the disposition of securities of the
Issuer by any person, (ii) an extraordinary corporate transaction, such as a
merger, reorganization, liquidation, or sale or transfer of a material amount of
assets involving the Issuer or any of its subsidiaries, (iii) any change in the
Issuer's present Board of Directors or management, (iv) any material change in
the Issuer's present capitalization or dividend policy or any other material
change in the Issuer's business or corporate structure, (v) any change in the
Issuer's charter or by-laws or other actions that may impede the acquisition of
control of the Issuer by any person, (vi) any change that would result in the
Issuer's common stock becoming eligible for termination of its registration
pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934, as amended,
or to cease to be authorized to be quoted in Nasdaq, or (vii) any similar
action.
Item 5. Interest in Securities of the Issuer
Vulcan Ventures and Mr. Allen beneficially own 2,955,992 shares of the
Issuer's common stock. These shares represent approximately 20.8% of the shares
of the class outstanding based upon 11,250,152 shares outstanding as of October
15, 1999, prior to the issuance of shares of Common Stock pursuant to the Stock
Purchase Agreement, as reported to Vulcan Ventures by the Issuer. Vulcan
Ventures and Mr. Allen share the power to vote and to direct the vote of, and
the power to dispose and to direct the disposition of, all 2,955,992 shares.
To the best knowledge of Vulcan Ventures and Mr. Allen, none of the
other parties named in Item 2 owns any of the Issuer's common stock.
Except as set forth in Item 4 of this Amendment, Vulcan Ventures and
Mr. Allen have not, nor, to the knowledge of Vulcan Ventures has any of its
executive officers, directors or controlling persons, effected any transactions
in the Issuer's common stock during the past sixty days.
Page 4 of 8
<PAGE>
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer.
Under a Registration Rights Agreement by and among the Issuer, Vulcan
Ventures and certain other of the Issuer's stockholders entered in connection
with the Issuer's 1998 common stock offering, the holders of 40% or more of the
registrable securities, including the shares of common stock beneficially owned
by Vulcan Ventures are entitled to demand that the Issuer register their
registrable securities under the Securities Act of 1933, as amended. The Issuer
is not required to effect more than two registrations pursuant to such demand
registration rights. The holders of the registrable securities are entitled to
require the Issuer to include their registrable securities in future
registration statements that the Issuer may file. The Issuer is not required to
effect more that three registrations pursuant to such piggyback registration
rights. These registration rights are subject to various conditions and
limitations, including the right of the underwriters of an offering to limit the
number of registrable securities that may be included in the offering. In
addition, holders of all of these shares are restricted from exercising their
demand rights until one year has elapsed from June 29, 1999, the effective date
of the Issuer's initial public offering. The Issuer generally is required to
bear all of the expenses of these registrations, except underwriting discounts
and selling commissions. Registration of any of the registrable securities held
by security holders with registration rights will result in such shares becoming
freely tradable without restriction under the Securities Act immediately upon
the effectiveness of such registration.
Vulcan Ventures has agreed not to offer to sell, sell or otherwise
dispose of, directly or indirectly, any shares of common stock during the period
ending 180 days after June 29, 1999, the date of the prospectus in the Issuer's
initial public offering, without the consent of Prudential Securities
Incorporated on behalf of the underwriters.
Under the Stock Purchase Agreement, the Issuer has granted to Vulcan
Ventures for one year following the closing of the transaction a right of first
refusal to purchase its pro rata share of "New Securities." "New Securities"
means any of the Issuer's common stock issued in exchange for cash in a private
placement transaction other than (i) securities issuable upon exercise of
existing rights to acquire common stock issued to consultants or vendors of the
Issuer, or (ii) any other issuances of 268,481 shares of common stock or less,
or securities of the Issuer exercisable for or convertible into 268,481 shares
of common stock or less.
Under a Registration Rights Agreement into which the Issuer and Vulcan
Ventures entered as of October 1, 1999, Vulcan Ventures and certain related
parties to whom it may transfer shares of the common stock that it has agreed to
purchase under the Stock Purchase Agreement are entitled to demand one
registration of such shares under the Securities Act. The Issuer must receive a
written request from the holders of at least 80% of such shares outstanding.
These registration rights are subject to various conditions and limitations,
including the right of the underwriters in an underwritten offering to limit the
number of registrable securities that may be included in the offering. The
Issuer generally is required to bear all of the expenses of these registrations,
except underwriting discounts and selling commissions. Registration of any of
the registrable securities held by security holders with registration rights
will result in such shares becoming freely tradable without restriction under
the Securities Act immediately upon the effectiveness of such registration.
Except as set forth in this Item 6, Vulcan Ventures and Mr. Allen do
not have, nor, to the knowledge of Vulcan Ventures does any of the executive
officers, directors or controlling persons of Vulcan Ventures have, any
contracts, arrangements, understandings or relationships (legal or otherwise)
with any person with respect to any securities of the Issuer, finder's fees,
joint ventures, loan or option agreements, puts or calls, guarantees of profits,
division of profits or loss, or the giving or withholding of proxies.
Page 5 of 8
<PAGE>
Item 7. Material To Be Filed as Exhibits.
Exhibit Description
99.1 Joint Filing Agreement (Previously filed as Exhibit 1
to the Schedule 13D.)
99.2 Form of Lock-up Agreement(Previously filed as Exhibit
2 to the Schedule 13D.)
99.3 Power of Attorney (Incorporated by reference to the
Reporting Persons' Schedule 13G for Pathogenesis
Corporation filed August 30, 1999.)
99.4 Common Stock Purchase Agreement dated as of October
15, 1999 between VaxGen, Inc. and Vulcan Ventures
Incorporated.
Page 6 of 8
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
VULCAN VENTURES INCORPORATED
December 14, 1999 By: /s/ William D. Savoy
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(Date) William D. Savoy, Vice President
December 14, 1999 *
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(Date) Paul G. Allen
*By: /s/ William D. Savoy
----------------------------------------
William D. Savoy, Attorney-in-Fact
Page 7 of 8
<PAGE>
EXHIBIT INDEX
Exhibit Description
99.1 Joint Filing Agreement (Previously filed as Exhibit 1
to the Schedule 13D.)
99.2 Form of Lock-up Agreement(Previously filed as Exhibit
2 to the Schedule 13D.)
99.3 Power of Attorney (Incorporated by reference to the
Reporting Persons' Schedule 13G for Pathogenesis
Corporation filed August 30, 1999.)
99.4 Common Stock Purchase Agreement dated as of October
15, 1999 between VaxGen, Inc. and Vulcan Ventures
Incorporated.
Page 8 of 8
VAXGEN, INC.
COMMON STOCK PURCHASE AGREEMENT
$24,999,999.50
October 15, 1999
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<PAGE>
COMMON STOCK PURCHASE AGREEMENT
THIS COMMON STOCK PURCHASE AGREEMENT (the "Agreement") is entered into
as of this 15th day of October, 1999, by and among VAXGEN, INC., a Delaware
corporation (the "Company"), and VULCAN VENTURES, INC., a Washington corporation
(the "Purchaser"), in connection with the Company's offering (the "Offering") of
Common Stock.
1. PURCHASE AND SALE OF COMMON STOCK.
1.1 Sale and Issuance of Common Stock. Subject to the terms and conditions
hereof, Purchaser agrees to purchase, and the Company agrees to sell and issue
to Purchaser, two million one hundred seventy three thousand nine hundred
thirteen (2,173,913) shares of common stock of the Company (the "Common Stock")
at a price per share of eleven dollars and fifty cents ($11.50), for an
aggregate purchase price of twenty four million nine hundred ninety nine
thousand nine hundred ninety nine dollars and fifty cents ($24,999,999.50).
1.2 Closing. The closing of the purchase and sale of the Common Stock hereunder
will take place (the "Closing") within two business days after all conditions to
closing have been satisfied (the "Closing Date"). The place of the Closing shall
be at the offices of Graham & James LLP/Riddell Williams P.S., 1001 Fourth
Avenue Plaza, Suite 4500, Seattle, Washington 98154, or such other place as
Purchaser and the Company may mutually agree.
1.3 Escrow. Subject to the terms and conditions of the Escrow Agreement by and
among Chase Manhattan Trust Co., National Association (the "Escrow Agent"), the
Company and Purchaser, dated as of October 15, 1999 (the "Escrow Agreement"),
Purchaser will deposit with Escrow Agent $24,999,999.50 in immediately available
funds to be released to the Company pursuant to the terms of the Escrow
Agreement after all conditions to closing have been satisfied. The Company will
deposit with Escrow Agent an irrevocable letter of instruction to ChaseMellon
Shareholder Services, Inc. (the "Transfer Agent") directing Transfer Agent to
issue stock certificate(s), registered in such names and in such denominations
as Purchaser shall request, representing 2,173,913 shares of Common Stock of the
Company to be released to Transfer Agent pursuant to the terms of the Escrow
Agreement after all conditions to closing have been satisfied.
2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
The Company represents and warrants to Purchaser as follows:
2.1 Organization and Corporate Power. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has the requisite corporate power and authority to execute, deliver
and perform this Agreement and to issue, sell and deliver the Common Stock.
2.2 Capitalization. As of October 11, 1999, the authorized capital of the
Company consists of:
(a) Preferred Stock. 20,000,000 shares of preferred stock having a par value of
$0.01 per share (the "Preferred Stock"), of which no shares are outstanding.
(b) Common Stock. 20,000,000 shares of Common Stock having a par value of $0.01
per share, 11,250,152 shares of which are issued and outstanding.
2.3 Authorization. The execution, delivery and performance by the Company of
this Agreement and the issuance, execution and delivery of the Common Stock have
been duly authorized by all requisite corporate action.
2.4 Validity. This Agreement and the Escrow Agreement (collectively, the
"Transaction Agreements") have been duly executed and delivered by the Company
and constitute the legal, valid and binding obligations of the Company,
enforceable in accordance with their terms, subject to the laws of bankruptcy
and the laws affecting creditors' rights generally and the availability of
equitable remedies. The Common Stock, when issued, sold and delivered in
accordance with the terms hereof for the consideration expressed herein, will be
duly and validly issued, fully paid and nonassessable and free of any liens or
encumbrances.
2.5 Disclosure Documents. The Prospectus dated June 29, 1999 (the "Prospectus"),
filed by the Company pursuant to Rule 424(b)(2) under the Securities Act of
1933, as amended (the "Securities Act"), in connection with the Company's
Initial Public Offering, and the Company's Quarterly Report on Form 10-Q, filed
with the Securities and Exchange Commission on August 12, 1999 (collectively
with the Prospectus, the "Disclosure Documents"), contained all statements
required to be stated therein and in accordance with, and complied in all
material respects with the requirements of the Securities Act and the Exchange
Act of 1934, as amended (the "Exchange Act"), and the rules and regulations of
the Securities and Exchange Commission thereunder and did not include any untrue
statement of a material fact or meant to state a material fact necessary to make
the statements therein not misleading as of the date of such documents, provided
however, that the foregoing provisions do not apply to statements or omissions
made in the Prospectus in reliance upon and in conformity to information
provided to the Company by the Purchaser or its representatives for use therein.
Since the respective date of the Disclosure Documents, there has been no
material adverse change or prospective material adverse change in the assets,
liquidity, liabilities, financial condition, results of operations or properties
of the Company.
2.6 Conflicts, Notification.
(a) The execution and delivery of this Agreement by the Company does not, and
the performance of this Agreement by the company will not, (i) conflict with or
violate the Certificate of Incorporation or Bylaws of the Company, (ii) conflict
with or violate any law, rule, regulation, order, judgment or decree applicable
to the Company or by which any of its properties are bound or affected, or (iii)
result in any breach of or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, or impair the Company's
rights or alter the rights or obligations of any third party under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
any material contract, or result in the creation of a lien or encumbrance on any
of the properties or assets of the Company pursuant to, any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise or
other instrument or obligation to which the Company is a party or by which the
Company or any of its properties are bound or affected, except with regard to
(ii) and (iii) above, for any such conflicts, violations, breaches, defaults or
other occurrences that would not, individually or in the aggregate, have a
material adverse effect.
(b) The execution and delivery of this Agreement by the Company does not, and
the performance of this Agreement by the Company will not, require any consent,
approval, authorization or permit of, or filing with or notification to, any
governmental or regulatory authority, domestic or foreign, except (i) for
applicable requirements, if any, of the Securities Act, the Exchange Act, the
rules of the Nasdaq National Market, state securities laws ("Blue Sky Laws") and
the pre-merger notification requirements of the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the "HSR Act") and the rules and
regulations thereunder, (ii) where the failure to obtain such consents,
approvals, authorizations or permits, or to make such filings or notifications,
would not prevent or delay the Company from performing its obligations under
this Agreement, or would not otherwise have a material adverse effect.
3. REPRESENTATIONS AND WARRANTIES OF PURCHASER.
3.1 Authorization. Purchaser represents and warrants to the Company that
Purchaser has full power and authority to enter into the Transaction Agreements
and that the Transaction Agreements constitute the valid and legally binding
obligation of Purchaser.
3.2 Purchase Entirely for Own Account. Purchaser represents and warrants to the
Company that Purchaser is acquiring the Common Stock for investment for
Purchaser's own account and not with a view to the resale or distribution
thereof, and that the Purchaser has no present intention of selling or otherwise
effecting a distribution of the same.
3.3 Reliance Upon Purchasers' Representations. Purchaser understands that the
Common Stock has not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), by reason of their issuance in a transaction
exempt from the registration requirements of the Securities Act pursuant to
Section 4(2) thereof and Regulation D promulgated under the Securities Act, and
that the Company's reliance on such exemption is predicated on Purchaser's
representations contained in this Agreement.
3.4 Investment Experience. Purchaser represents that Purchaser is experienced in
evaluating development-stage bio-technology companies such as the Company, is
able to fend for itself in transactions such as the one contemplated by this
Agreement, has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of its prospective
investment in the Company, and has the ability to bear the economic risks of the
investment.
3.5 Receipt of Information. Purchaser represents that Purchaser has reviewed the
Disclosure Documents and has had an opportunity to ask questions of and to
receive answers from the Company regarding the business, properties, prospects
and financial condition of the Company and to obtain additional information (to
the extent the Company possesses such information or could acquire it without
unreasonable effort or expense) necessary to verify the accuracy of the
information furnished to the Purchaser or to which the Purchaser had access.
3.6 Legends. Each certificate representing shares of Common Stock issued
pursuant to this Agreement shall be endorsed with a legend in substantially the
following form, and Purchaser covenants that, except to the extent such
restrictions are waived by the Company, such Purchaser shall not transfer the
Common Stock without complying with the restrictions on transfer described in
the legend:
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES ACT (COLLECTIVELY,
THE "SECURITIES LAWS"). THESE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE SOLD, OFFERED FOR SALE OR OTHERWISE
TRANSFERRED UNLESS THEY (I) ARE REGISTERED UNDER THE SECURITIES LAWS OR
(II) ARE EXEMPT FROM REGISTRATION UNDER THE SECURITIES LAWS AND THE
CORPORATION IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE
CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.
3.7 Accredited Investor. Purchaser is an "accredited investor" within the
meaning of Rule 501 of Regulation D as promulgated by the Securities and
Exchange Commission and as presently in effect.
3.8 Domicile. Purchaser represents that it has its principal place of
business in the state set forth on the signature page.
4. RIGHT OF FIRST REFUSAL.
Subject to the terms and conditions specified in this Section 4, the
Company hereby grants to Purchaser for the period of one year following the
Closing Date, a right of first refusal to purchase its pro rata share of New
Securities (as defined in this Section 4) which the Company may, from time to
time, propose to sell and issue. Purchaser's pro rata share, for purposes of
this right of first refusal, is the ratio of the number of outstanding shares of
Common Stock and Common Stock issuable upon conversion of any convertible
security held of record by Purchaser immediately prior to the issuance of New
Securities to the total number of shares of Common Stock outstanding and Common
Stock issuable upon conversion of any convertible security outstanding
immediately prior to the issuance of New Securities. This right of first refusal
shall be subject to the following provisions:
4.1 "New Securities" shall mean any Common Stock of the Company whether now
authorized or not, issued in exchange for cash in a private placement
transaction. New Securities shall not include (i) securities issuable upon
exercise of existing rights to acquire Common Stock issued to consultants or
vendors of the Company, or (ii) any other issuances of capital stock of the
Company, or rights to acquire capital stock of the Company, which do not exceed
an aggregate of 268,481 shares of Common Stock, or the issuance of rights to
acquire such number of shares of Common Stock, or securities convertible into
such number of shares of Common Stock.
4.2 In the event the Company proposes to undertake an issuance of New
Securities, it shall give Purchaser written notice of its intention, describing
the type of New Securities, and their price and the general terms upon which the
Company proposes to issue the same. Purchaser shall have 20 days after any such
notice is effective to agree to purchase Purchaser's pro rata share of such New
Securities for the price and upon the terms specified in the notice by giving
written notice to the Company and stating therein the quantity of New Securities
to be purchased.
4.3 In the event Purchaser fails to exercise fully the right of first refusal
within said 20-day period, the Company shall have 120 days thereafter to sell or
enter into an agreement (pursuant to which the sale of New Securities covered
thereby shall be closed, if at all, within 120 days from the date of said
agreement) to sell the New Securities respecting which Purchaser's right of
first refusal option set forth in this Section 4 was not exercised, at a price
and upon terms no more favorable to the purchasers thereof than specified in the
Company's notice to Purchaser pursuant to Section 4. In the event the Company
has not entered into an agreement to sell the New Securities within said 120-day
period (or sold and issued New Securities in accordance with the foregoing
within 120 days from the date of said agreement), the Company shall not
thereafter issue or sell any New Securities, without first again offering such
securities to Purchaser in the manner provided in Section 4 above.
5. CONDITIONS TO purchaser's obligation to CLOSe.
Purchaser's obligations to purchase the Common Stock at the Closing
are, at the option of Purchaser, subject to the fulfillment on or prior to the
Closing Date of the following conditions:
5.1 Representations and Warranties Correct. The representations and warranties
made by the Company in Section 2 hereof shall be true and correct in all
material respects when made, and shall be true and correct in all material
respects on the Closing Date with the same force and effect as if they had been
made on and as of said date, except for representations and warranties made as
of a specific date, which shall be true and correct in all material respects as
of such date.
5.2 Covenants. All covenants, agreements and conditions contained in this
Agreement to be performed by the Company on or prior to such Closing Date shall
have been performed or complied with in all material respects, and all consents,
permits and waivers required to be obtained by the Company shall have been
obtained.
5.3 Registration Rights Agreement. The Company shall have executed and delivered
to Purchaser a Registration Rights Agreement, in substantially the form attached
hereto as Exhibit A.
5.4 Proceedings and Documents. All corporate and other proceedings in connection
with the transactions contemplated at the Closing hereby and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
form and substance to Purchaser and its counsel, and Purchaser and its counsel
shall have received all such counterpart originals or certified or other copies
of such documents as it may reasonably request.
6. CONDITIONS TO company's obligation to CLOSe.
The Company's obligation to sell and issue the Common Stock at the
Closing is, at the option of the Company, subject to the fulfillment of the
following conditions either before or on the Closing Date:
6.1 Representations and Warranties Correct. The representations made by
Purchaser in Section 3 hereof shall be true and correct in all material respects
when made, and shall be true and correct in all material respects on the Closing
Date with the same force and effect as if they had been made on and as of said
date, except for representations and warranties made as of a specific date,
which shall be true and correct in all material respects as of such date.
6.2 Blue Sky. The Company shall have obtained all necessary Blue Sky law permits
and qualifications, or secured an exemption therefrom pursuant to each such
state's counterpart to Regulation D as promulgated under the Securities Act,
required by any state for the offer and sale of the Common Stock, or shall do so
within the applicable time periods.
6.3 Waiver of Preemptive Rights. All holders of preemptive rights to acquire
common stock of the Company, if any, shall have waived such rights in writing in
connection with the transactions contemplated herein.
6.4 Registration Rights Agreement. Purchaser shall have executed and delivered
to the Company a Registration Rights Agreement, in substantially the form
attached hereto as Exhibit A.
6.5 Nasdaq National Market Approval. The Common Stock to be issued pursuant to
this Agreement shall have been approved for trading on the Nasdaq National
Market subject to notice of issuance.
6.6 HSR Act. The waiting period (and any extension thereof) applicable to the
consummation of the transactions contemplated herein under the HSR Act shall
have expired or shall have been terminated.
7. CONDITIONS OF CLOSING.
7.1 Pre-Closing Covenants. The parties agree that Purchaser and the Company
shall promptly and in good faith (i) prepare and file any and all notifications,
shall cooperate with the Company in effecting any and all filings and shall
otherwise comply with the applicable requirements of the HSR Act in connection
with such notifications and filings; and (ii) prepare and file any and all
required applications for approval for trading on the Nasdaq National Market
subject to notice of issuance of the Common Stock to be issued pursuant to this
Agreement.
7.2 Deliveries at Closing. Upon satisfaction of the parties' respective
obligations to close, the parties agree to execute the Joint Escrow
Instructions, in substantially the for attached as Exhibit A to the Escrow
Agreement directing Escrow Agent to release and deliver the Escrow Fund (as
defined in the Escrow Agreement), and that the Instructions and the
Consideration (as each term is defined in the Escrow Agreement) shall be
distributed pursuant to the terms of the Escrow Agreement.
8. MISCELLANEOUS.
8.1 Survival of Agreements. All covenants, agreements, representations and
warranties made in this Agreement shall survive the execution and delivery of
this Agreement and the Closing.
8.2 Parties in Interest; Assignability. The rights and obligations of the
parties hereto may not be assigned. All covenants and agreements contained in
this Agreement by or on behalf of any of the parties to this Agreement shall
bind and inure to the benefit of the respective successors and permitted assigns
of the parties to this Agreement whether or not so expressed.
8.3 Professional Fees and Expenses. Private placement fees and commissions shall
be paid by the Company out of the gross proceeds of this offering. Each party
will bear its own expenses in connection with this offering.
8.4 Governing Law; Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Washington without regard to principles
of conflict of laws. It is agreed and understood that if any action or other
proceeding be brought on or in connection with this Agreement, venue shall be in
King County, Washington.
8.5 Entire Agreement; Modifications. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof and may not
be modified or amended except in writing signed by the Company and by the
holders of a majority of the outstanding Common Stock purchased hereby.
8.6 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.
8.7 Severability. Should any provisions or portion of this Agreement be held
unenforceable or invalid for any reason, the remaining provisions and portions
shall be unaffected by such holding.
8.8 Attorneys' Fees. In the event that it is necessary for any party to engage
an attorney to enforce the terms of this Agreement, the prevailing party shall,
in addition to any other relief, be entitled to recover from the party in
default reasonable attorneys' fees and costs, including any on appeal.
8.9 Notice. To be effective, any notice under this Agreement shall be in
writing, delivered in person, via facsimile (with confirmation copy mailed by
certified or registered mail, postage prepaid), or mailed by certified or
registered mail, postage prepaid, to the following addresses: (a) if to
Purchaser, at 110 - 110th Avenue NE, Suite 550, Bellevue, Washington, 98004,
attn: Mr. William D. Savoy, or at such other address as Purchaser shall
designate by ten (10) days advance written notice to the other parties to this
Agreement, or (b) if to the Company, at 1000 Marina Boulevard, Suite 200,
Brisbane, California, 94005, attn: Robert C. Nowinski, or at such other address
as the Company shall designate by ten (10) days advance written notice to the
other parties to this Agreement. Unless otherwise specified in this Agreement,
all such notices and other written communications shall be effective (x) if
delivered, upon delivery, (y) if by facsimile, upon transmission with
confirmation of receipt by the receiving party's facsimile terminal, or (z) if
mailed, three (3) days after mailing.
8.10 Specific Performance. Each of the Company and Purchaser acknowledges and
agrees that the other party would be damaged irreparably in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached. Accordingly, each of the Company and Purchaser
agrees that the other party shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically
this Agreement and the terms and provisions hereof in any action instituted in
any court of the United States or any state thereof having jurisdiction over the
Company, Purchaser and the matter, in addition to any other remedy to which they
may be entitled, at law or in equity.
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<PAGE>
IN WITNESS WHEREOF, the parties have executed this Common Stock
Purchase Agreement as of the date and year first above written.
"COMPANY" VAXGEN, INC.
By: /s/ Robert C. Nowinski
--------------------------------------------
Robert C. Nowinski, Chairman of the Board
and Chief Executive Officer
VULCAN VENTURES, INC.
No. of Shares Purchased: 2,173,913
Total Price ($11.50 per share): $24,999,999.50
VULCAN VENTURES, INC.
By: /s/ William D. Savoy
---------------------------------------------
William D. Savoy
Its: President
Tax Identification Number
State of Formation: Washington
Address: 110 - 110th Avenue NE, Suite 550
Bellevue, WA 98004
Telephone Number
SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT