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PALATIN TECHNOLOGIES, INC.
PURCHASE AGREEMENT
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TABLE OF CONTENTS
Page
1. PURCHASE AND SALE OF SECURITIES.......................................1
1.1 Issue of Securities..........................................1
2. CLOSING DATE; DELIVERY................................................2
2.1 Closing......................................................2
2.2 Delivery.....................................................2
3. REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS OF THE PURCHASER....3
3.1 Legal Power..................................................3
3.2 Due Execution................................................3
3.3 Investment Representations...................................3
3.4 Remedies.....................................................5
3.5 Indemnification..............................................5
4. COVENANTS OF THE COMPANY..............................................6
4.1 Information..................................................6
5. UNDERSTANDINGS........................................................6
6. DEFAULTING PROSPECTIVE PURCHASERS.....................................8
7. MISCELLANEOUS.........................................................9
7.1 Governing Law................................................9
7.2 Survival.....................................................9
7.3 Successors and Assigns.......................................9
7.4 Entire Agreement.............................................9
7.5 Severability.................................................9
7.6 Amendment and Waiver.........................................9
7.7 Notices......................................................9
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7.8 Fees and Expenses...........................................10
7.9 Titles and Subtitles........................................10
7.10 Counterparts................................................10
7.11 No Waiver...................................................10
8. ESCROW AGENT.........................................................10
9. EXECUTION OF AGREEMENT...............................................12
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PALATIN TECHNOLOGIES, INC.
PURCHASE AGREEMENT
This Purchase Agreement (the "Agreement" or "Purchase Agreement") is made
as of ____________, 2002 by and between Palatin Technologies, Inc., a Delaware
corporation (the "Company"), with its principal office at ▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇ Corporate Center, ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, and each of the
purchasers who are signatories hereto and any other purchasers who are made a
party to this Agreement pursuant to Section 1 (individually, a "Purchaser" and
collectively, the "Purchasers").
RECITALS
The Company is hereby offering (the "Offering") a minimum of $4,000,000 and
a maximum of $12,000,000 (a) shares (the "Shares") of the Company's Common
Stock, $.01 par value per share (the "Common Stock"), and (b) warrants (the
"Warrants") entitling the Purchaser to purchase one (1) share of Common Stock
for every five (5) shares of Common Stock purchased under this Agreement. The
Shares and the Warrants offered in the Offering shall sometimes collectively be
referred to herein as the "Securities." The Securities will be sold by the
Company to Purchasers pursuant to Regulation D ("Regulation D") and/or
Regulation S ("Regulation S") promulgated under the Securities Act of 1933, as
amended (the "Act").
The purchase price of the Shares to be offered in the Offering (the
"Offering Price") will be the sum of (i) the amount equal to the average
reported closing sales prices for the Common Stock on the American Stock
Exchange (symbol "PTN") for the five (5) business days immediately prior to the
Initial Closing Date (as defined below) and any subsequent Closing Dates (as
defined below), as the case may be, and (ii) $0.025, which reflects the value
assigned to the warrants. Every five (5) shares of Common Stock purchased in the
Offering will entitle the Purchaser to a Warrant to purchase one (1) share of
Common Stock at an exercise price per share equal to 125% of the Offering Price,
subject to certain adjustments.
AGREEMENT
In consideration of the Company's agreement to sell the Securities to the
undersigned upon the terms and conditions contained herein, each Purchaser
(severally and not jointly) agrees and represents as follows:
1. PURCHASE AND SALE OF SECURITIES.
1.1 Issue of Securities.
(a) The Company has authorized the issuance and sale of a minimum of
$4,000,000 and a maximum of $12,000,000 of Securities pursuant to the
provisions of this Agreement.
(b) Subject to the terms and conditions set forth herein, the Company
hereby agrees to issue and sell to each Purchaser the aggregate amount
of Shares and Warrants set forth below the Purchaser's signature on
the subscription page bearing such Purchaser's name. The Shares shall
be sold at the Offering Price.
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(c) Subject to the terms and conditions set forth herein, each Purchaser
hereby agrees to purchase the amount of Shares and Warrants as
determined on the subscription page bearing such Purchaser's name
(each a "Subscription"). Each Purchaser shall severally, and not
jointly, be liable only for the purchase of the amount of Shares and
Warrants that appears on the subscription page hereof that relates to
such Purchaser.
(d) The Company's agreement with each Purchaser is a separate agreement
and the sale of the Securities to each Purchaser is a separate sale.
2. CLOSING DATE; DELIVERY.
2.1 Closing. The Company expects to hold an initial closing of the Offering
(the "Initial Closing") on any day, as determined by the Company (the "Initial
Closing Date") after (i) subscriptions for a minimum of $4,000,000 of Securities
have been accepted and (ii) the escrow agent has received funds for such
accepted subscriptions, which is expected to occur on or about October 31, 2002.
The final closing of the Offering (the "Final Closing Date") shall occur as soon
as practicable on the date on which Subscriptions for the maximum of $12,000,000
of Securities have been accepted by the Company but no later than December 31,
2002, unless extended by the Company for an additional period not exceeding 60
days, without notice to the Purchaser. The Company may hold additional interim
closings after the Initial Closing. Any such interim closing together with the
Initial Closing are each hereinafter referred to as an "Interim Closing" and
shall occur on one or more dates each hereinafter referred to as an "Interim
Closing Date," and each, together with the Final Closing Date, are hereinafter
referred to as a "Closing Date."
2.2 Delivery. On each Closing Date, subject to the terms and conditions
hereof, the Company shall deliver to each Purchaser (i) stock certificates,
registered in the name of the Purchaser, representing the Shares to be purchased
by the Purchaser from the Company, and (ii) warrant certificates, registered in
the name of the Purchaser, representing the Warrants purchased by the Purchaser,
each dated as of the relevant Closing Date, against payment of the purchase
price therefor (the "Payment") by wire transfer or previously cleared check,
unless other means of payment shall have been agreed upon by the Purchaser and
the Company. The undersigned understands that payments by check as provided in
this Paragraph 2.2 shall be delivered to ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ and
▇▇▇▇▇, P.C., as the escrow agent and, thereafter, such payment will be deposited
as soon as practicable in an escrow account for the undersigned's benefit. The
wire transfer shall be made to ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ and ▇▇▇▇▇, P.C.,
as escrow agent in accordance with the wire transfer instructions attached as
Exhibit A hereto. The Payment will be made on or prior to the relevant Closing
Date. The Payment (or, in the case of the rejection of a portion of the
undersigned's subscription, the part of the Payment relating to such rejected
portion) will be returned promptly, without interest or deduction, if the
undersigned's subscription is rejected in whole or in part. Any Payment made by
the Purchaser prior to the Initial Closing and/or any subsequent Closing is
based on an estimated price per share of Common Stock of $2.00. The Purchaser
agrees to remit to the Company on the Initial Closing and/or any Interim Closing
the balance of the Payment if the Offering Price is greater
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than $2.00 per share. The Company agrees to promptly remit to the Purchaser any
excess Payment made by such Purchaser if the Offering Price is less than $2.00
per share. Each party hereto shall deliver or cause to be delivered at or prior
to the Closing Date an executed copy of the Registration Rights Agreement
between the Company and the Purchaser and the Company shall deliver to each
Purchaser a fully-executed copy of the Agreement.
3. REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS OF THE PURCHASER.
Each Purchaser hereby represents and warrants to, and agrees with, the
Company as follows:
3.1 Legal Power. If this Agreement is executed and delivered on behalf of a
partnership, corporation, limited liability company, trust or estate: (i) such
partnership, corporation, limited liability company, trust or estate has the
full legal right and power and all authority and approval required (a) to
execute and delivery, or authorize execution and deliver of, this Agreement and
all other instruments (including, without limitation, the Registration Rights
Agreement among the Purchasers and the Company (the "Registration Rights
Agreement") executed and delivered by or on behalf of such partnership,
corporation, limited liability company, trust or estate in connection with the
purchase of its Securities, (b) to delegate authority pursuant to a power of
attorney and (c) to purchase and hold such Securities; (ii) the signature of the
party signing on behalf of such partnership, corporation, limited liability
company, trust or estate is binding upon such partnership, corporation, trust or
estate; and (iii) such partnership, corporation, limited liability company or
trust has not been formed for the specific purpose of acquiring such Securities,
unless each beneficial owner of such entity is qualified as an accredited
investor within the meaning of Rule 501(a) of Regulation D and has submitted
information substantiating such individual qualification.
3.2 Due Execution. Each of this Agreement and the Registration Rights
Agreement (collectively, the "Operative Documents") has been duly authorized, if
Purchaser is a corporation, partnership, limited liability company, trust or
fiduciary, executed and delivered by Purchaser and, upon due execution and
delivery by the Company, the Operative Documents will be valid and binding
agreements of Purchaser, enforceable against Purchaser in accordance with their
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws relating to or affecting creditors' rights and subject to
general equity principles.
3.3 Investment Representations.
3.3.1 Purchaser is acquiring the Securities for its own account, not
as nominee or agent, for investment and not with a view to or for resale in
connection with any distribution or public offering thereof within the
meaning of the Act, except pursuant to an effective registration statement
under the Act. Alternatively, if Purchaser is a non-United States resident,
such purchaser represents that it (a) is acquiring the Securities solely
for its own account, and not on behalf of a U.S. resident, for investment
purposes and not with a view to distribution or resale, and (b) will not
sell, hypothecate, pledge or otherwise dispose of any interest in the
Securities, in the United States, its territories and possessions or any
area subject to its jurisdiction, or to any partnership or other entity
created or organized therein, unless such Securities have been either
registered under the Act or are exempt from the registration requirements
of the Act; in the opinion of the Company's counsel, and unless such
Purchaser has complied with any applicable restrictions on transfer in this
Agreement.
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3.3.2 Purchaser understands that (i) the Securities have not been
registered under the Act by reason of a specific exemption therefrom, and
may not be transferred or resold except pursuant to an effective
registration statement or exemption from registration and (ii) each
certificate or other document representing the Securities will be endorsed
with legends in substantially the following form:
A) THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED
OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE
ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM
AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY
PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS.
B) Any legend required to be placed thereon by applicable federal or
state securities laws;
and (iii) the Company will instruct any transfer agent not to register the
transfer of any of the Securities unless the conditions specified in the
foregoing legend are satisfied.
3.3.3 The Purchaser is familiar with and understands the terms of the
Offering, including the rights to which the Purchaser is entitled under the
Registration Rights Agreement and Form of Warrant Certificate attached
hereto. The Purchaser has been furnished with and has carefully read the
Company's Current Reports on Form 8-K dated October 1, 2002, August 15,
2002, and August 8, 2002 (the "8-Ks") and the Company's Annual Report on
Form 10-K for the year ended June 30, 2002 (the "10-K"). In evaluating the
suitability of an investment in the Company, the Purchaser has not relied
upon any representation or other information (whether oral or written) from
the Company, or any agent, employee or affiliate of the Company other than
as set forth in the 10-K and 8-Ks and the results of Purchaser's own
independent investigation. With respect to individual or partnership tax
and other economic considerations involved in this investment, the
Purchaser has carefully considered and has, to the extent the Purchaser
believes such discussion necessary, discussed with the Purchaser's
professional legal, tax, accounting and financial advisers the suitability
of an investment in the Securities for the Purchaser's particular tax and
financial situation and has determined that the Securities being subscribed
for by the Purchaser are a suitable investment for the Purchaser.
3.3.4 The Purchaser acknowledges that (i) the Purchaser has had the
right to request copies of any documents, records and books pertaining to
this investment and (ii) such documents, records, and books pertaining to
this investment which the Purchaser requested have been made available for
inspection by the Purchaser, the Purchaser's representative, attorney,
accountant or adviser(s) (the "Purchaser's advisers").
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3.3.5 The Purchaser and/or the Purchaser's adviser(s) has/have had a
reasonable opportunity to ask questions of and receive answers from a
person or persons acting on behalf of the Company concerning the Offering
and all such questions have been answered to the full satisfaction of the
Purchaser.
3.3.6 The Purchaser is not subscribing for Securities as a result of
or subsequent to any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over
television or radio or presented at any seminar or meeting.
3.3.7 Purchaser is an "accredited investor" as such term is defined in
Rule 501 under the Act and as indicated by the Purchaser's responses to the
Confidential Purchaser Questionnaire.
3.3.8 Purchaser is a resident of, and all communications regarding
Purchaser's purchase of the Securities were sent to Purchaser, in the state
and country of Purchaser's residence shown on the subscription page
attached hereto.
3.3.9 If the Purchaser is a natural person, the Purchaser has reached
the age of majority in the state or other jurisdiction in which the
Purchaser resides, has adequate means of providing for the Purchaser's
current financial needs and contingencies, is able to bear the substantial
economic risks of an investment in the Securities for an indefinite period
of time, has no need for liquidity in such investment and, at the present
time, could afford a complete loss of such investment.
3.3.10 The Purchaser or the Purchaser's representative, as the case
may be, has such knowledge and experience in financial, tax and business
matters so as to enable the Purchaser to utilize the information made
available to the Purchaser in connection with the Offering to evaluate the
merits and risks of an investment in the Securities and to make an informed
investment decision with respect thereto.
3.3.11 The Purchaser recognizes that an investment in the Securities
involves substantial risks, including loss of the entire amount of such
investment. Further, the Purchaser has carefully read and considered the
matters set forth under the caption "Important Factors Affecting Our
Business" in the 10-K, and has taken full cognizance of and understands all
of the risks related to the purchase of the Securities.
3.4 Remedies. The Purchaser acknowledges and agrees that it shall not be
entitled to seek any remedies with respect to the Offering from any party other
than the Company.
3.5 Indemnification. The Purchaser shall indemnify and hold harmless the
Company and each officer, director or control person of the Company, who is or
may be a party or is or may be threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of or arising from any actual or
alleged misrepresentation or misstatement of facts or omission to represent or
state facts made or alleged to have been made by the Purchaser to the Company,
or omitted or alleged to have been omitted by the Purchaser, concerning the
Purchaser or the Purchaser's authority to invest or financial position in
connection with the Offering, including, without limitation, any such
misrepresentation, misstatement or omission contained in any investor
qualification questionnaire or any other document submitted by the Purchaser,
against losses, liabilities and expenses for which the Company, or any officer,
director or control person of the Company has not otherwise been reimbursed
(including attorneys' fees, judgments, fines and amounts paid in settlement)
actually and reasonably incurred by the Company, or such officer, director or
control person in connection with such action, suit or proceeding.
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4. COVENANTS OF THE COMPANY.
4.1 Information.
So long as the Company is subject to the periodic reporting requirements of
the Exchange Act, the Company shall deliver to each holder of Securities all
annual, quarterly or other reports to the extent such reports are furnished to
the Company's public security holders. In the event that the Company is not so
subject, until the fifth anniversary of the relevant Closing Date the Company
shall promptly furnish to each holder of Securities (i) as soon as available,
and in any event within 90 days after the end of each fiscal year of the
Company, a consolidated balance sheet of the Company and its consolidated
subsidiaries, if any, as of the end of such fiscal year and the related
consolidated statements of income, stockholders' equity and cash flows for such
fiscal year, setting forth in each case in comparative form the figures for the
previous fiscal year, all prepared in accordance with generally accepted
accounting principles and reported on by independent certified public
accountants of recognized national standing; and (ii) as soon as available, and
in any event within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of the Company, a consolidated balance sheet of the
Company and its consolidated subsidiaries, if any, as of the end of such quarter
and the related consolidated statements of income and stockholder's equity
(together with any other quarterly financial statements being prepared by the
Company at such time), setting forth in each case in comparative form the
figures for the corresponding quarter and the corresponding portion of the
Company's previous fiscal year, all certified (subject to normal year-end
adjustments) as to fairness of presentation and consistency by the chief
financial or accounting officer of the Company.
5. UNDERSTANDINGS.
The Purchaser understands, acknowledges and agrees with the Company as
follows:
5.1 This Subscription may be rejected, in whole or in part, by the Company,
in the sole and absolute discretion of the Company, at any time before any
Closing Date notwithstanding prior receipt by the Purchaser of notice of
acceptance of the Purchaser's Subscription.
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5.2 Except as otherwise set forth herein, the Purchaser hereby acknowledges
and agrees that the Subscription hereunder is irrevocable by the Purchaser,
that, except as required by law, the Purchaser is not entitled to cancel,
terminate or revoke this Agreement or any agreements of the Purchaser hereunder
and that this Agreement and such other agreements shall survive the death or
disability of the Purchaser and shall be binding upon and inure to the benefit
of the parties and their heirs, executors, administrators, successors, legal
representatives and permitted assigns. If the Purchaser is more than one person,
the obligations of the Purchaser hereunder shall be joint and several and the
agreements, representations, warranties and acknowledgments herein contained
shall be deemed to be made by and be binding upon each such person and his/her
heirs, executors, administrators, successors, legal representatives and
permitted assigns.
5.3 No federal or state agency has made any finding or determination as to
the accuracy or adequacy of this Agreement or the Registration Rights Agreement
or as to the fairness of the terms of this Offering for investment nor any
recommendation or endorsement of the Securities.
5.4 The Offering is intended to be exempt from registration under the
Securities Act by virtue of Section 4(2) of the Securities Act and the
provisions of Regulation D thereunder, and/or the provisions of Regulation S
which is in part dependent upon the truth, completeness and accuracy of the
statements made by the Purchaser.
5.5 There can be no assurance that the Purchaser will be able to sell or
dispose of the Securities. It is understood that in order not to jeopardize the
Offering's exempt status under Section 4(2) of the Securities Act and Regulation
D, as well as Regulation S, any transferee may, at a minimum, be required to
fulfill the investor suitability requirements thereunder.
5.6 Privateq Advisors AG (the "Placement Agent") is acting as a finder in
connection with this Offering solely in Europe and will receive a fee equal to
7% of the aggregate cash value of the amount of equity investment raised by the
Company through the introduction by the Placement Agent to qualified individuals
or institutions and (ii) warrants to purchase shares of Common Stock equal to 5%
of the shares of Common Stock sold as part of such equity investment, with such
warrants having an exercise price equal to 125% of the Offering price per common
share. The Company does not currently anticipate employing the services of a
finder in the United States.
5.7 The Purchaser acknowledges that the information contained in this
Agreement and the Registration Rights Agreement or otherwise made available to
the Purchaser is confidential and non-public and agrees that all such
information shall be kept in confidence by the Purchaser and neither used by the
Purchaser for the Purchaser's personal benefit (other than in connection with
this Subscription) nor disclosed to any third party for any reason,
notwithstanding that a Purchaser's Subscription may not be accepted by the
Company; PROVIDED, HOWEVER, that this obligation shall not apply to any such
information that (i) is part of the public knowledge or literature and readily
accessible at the date hereof, (ii) becomes part of the public knowledge or
literature and readily accessible by publication (except as a result of a breach
of this provision) or (iii) is received from third parties (except third parties
who disclose such information in violation of any confidentiality agreements or
obligations, including, without limitation, any subscription or other similar
agreement entered into with the Company).
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5.8 The representations, warranties and agreements of the Purchaser
contained herein and in any other writing delivered in connection with the
transactions contemplated hereby shall be true and correct in all respects on
and as of the relevant Closing Date of the sale of the Securities as if made on
and as of such date and shall survive the execution and delivery of this
Agreement and the purchase of the Securities.
5.9 IN MAKING AN INVESTMENT DECISION, PURCHASERS MUST RELY ON THEIR OWN
EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS
AND RISKS INVOLVED. THE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR
STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING
AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS
PURCHASE AGREEMENT OR OTHER WRITINGS DELIVERED IN CONNECTION WITH THE SALE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
5.10 THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED, RESOLD OR OTHERWISE DISPOSED OF EXCEPT AS
PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. PURCHASERS SHOULD BE AWARE
THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME.
5.11 If the Purchaser is a Registered Representative of an NASD member
firm, the Purchaser must give such firm the notice required by the NASD's Rules
of Fair Practice, receipt of which must be acknowledged by such firm on the
signature page hereof.
6. DEFAULTING PROSPECTIVE PURCHASERS.
(a) If, on the relevant Closing Date, a prospective Purchaser defaults in
the performance of its obligations under this Agreement, a non-defaulting
prospective Purchaser may make arrangements for the purchase of the Securities
that would have been purchased by such defaulting prospective Purchaser by other
persons satisfactory to the Company and the non-defaulting prospective
Purchasers, but if no such arrangements are made within 36 hours after such
default, this Agreement shall terminate without liability on the part of the
non-defaulting prospective Purchasers or the Company except that prospective
Purchasers will continue to be liable for the payment of expenses to the extent
set forth in Section 7.8 and except that the provisions of Section 3.5 shall not
terminate and shall remain in effect.
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(b) Nothing contained herein shall relieve a defaulting prospective
Purchaser of any liability it may have for damages caused by its default. If
other Purchasers agree to purchase the Securities of a defaulting prospective
Purchaser, either the non-defaulting prospective Purchaser or the Company may
postpone a Closing Date for up to seven (7) full business days in order to
effect any changes that in the reasonable opinion of counsel for the Company or
counsel for the Placement Agent may be necessary in any document or arrangement,
and the Company agrees to prepare and distribute promptly any amendment that
effects any such changes.
7. MISCELLANEOUS.
7.1 Governing Law. This Agreement shall be governed by and construed under
the laws of the State of New York without regard to any otherwise applicable
principles of conflicts of laws.
7.2 Survival. The representations and warranties made by the parties in
this Agreement shall survive the consummation of the transactions herein
contemplated until the expiration of the statute of limitations with respect to
claims arising under Section 10(b) of the Securities Exchange Act of 1934, as
amended, with respect to the purchase of Securities hereunder.
7.3 Successors and Assigns. Except as otherwise expressly provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.
7.4 Entire Agreement. This Agreement and the Exhibits hereto, constitute
the full and entire understanding and agreement among the parties with regard to
the subjects hereof and no party shall be liable or bound to any other party in
any manner by any representations, warranties, covenants or agreements except as
specifically set forth herein or therein. Nothing in this Agreement, express or
implied, is intended to confer upon any party, other than the parties hereto and
their respective successors and assigns, any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
herein.
7.5 Severability. In the event that any provision of this Agreement shall
be invalid, illegal or unenforceable, it shall, to the extent practicable, be
modified so as to make it valid, legal and enforceable and to retain as nearly
as practicable the intent of the parties, and the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby. To the extent permitted by law, the parties hereto waive the
benefit of any provision of law that renders any provision of this Agreement
invalid or unenforceable in any respect.
7.6 Amendment and Waiver. Except as otherwise provided herein, 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, either
retroactively or prospectively, and either for a specified period of time or
indefinitely), with the written consent of the Company and the Purchaser.
7.7 Notices. All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed effectively given upon
personal delivery, on the first business day following mailing by overnight
courier, or on the fifth day following mailing by registered or certified mail,
return receipt requested, postage prepaid, addressed to the Company and the
Purchaser at the respective addresses included herein.
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7.8 Fees and Expenses. Except as otherwise provided herein, the Company and
the Purchasers shall bear their own expenses and legal fees incurred on its
behalf with respect to this Agreement and the transactions contemplated hereby.
7.9 Titles and Subtitles. The titles of the paragraphs and subparagraphs of
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.
7.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one instrument.
7.11 No Waiver. No waiver by any party to this Agreement of any one or more
defaults by any other party or parties in the performance of any of the
provisions hereof shall operate or be construed as a waiver of any future
default or defaults, whether of a like or different nature. Except as expressly
provided herein, no failure or delay on the part of any party in exercising any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy.
8. ESCROW AGENT. To induce ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ and ▇▇▇▇▇, P.C. to
serve as the escrow agent and to act in such capacity hereunder, it is agreed by
the parties hereto that:
(a) The escrow agent shall not be under any duty to give the property held
by it hereunder (the "Escrowed Property") any greater degree of care than it
gives its own similar property.
(b) This Section 8 of this Agreement expressly sets forth all the duties of
the escrow agent with respect to any and all matters pertinent hereto. No
implied duties or obligations shall be read into this Agreement against the
escrow agent. The escrow agent shall not be bound by the provisions of any
agreement among the other parties hereto except this Section 8 of this
Agreement.
(c) The escrow agent shall not be liable, except for its own gross
negligence or willful misconduct and, except with respect to claims based upon
such gross negligence or willful misconduct that are successfully asserted
against the escrow agent, the other parties hereto shall jointly and severally
indemnify and hold harmless the escrow agent from and against any and all
losses, liabilities, claims, actions, damages and expenses, including, without
limitation, reasonable attorneys' fees and disbursements, arising out of or in
connection with this Agreement.
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(d) The escrow agent shall be entitled to rely upon any order, judgment,
certification, demand, notice, instrument or other writing delivered to it
hereunder without being required to determine the authenticity or the
correctness of any fact stated therein or the propriety or validity of the
service thereof. The escrow agent may act in reliance upon any instrument or
signature believed by it to be genuine and may assume that any person purporting
to give receipt or advice or make any statement or execute any document in
connection with the provisions hereof has been duly authorized to do so.
(e) The escrow agent may act pursuant to the advice of counsel with respect
to any matter relating to this Agreement and shall not be liable for any action
taken or omitted in accordance with such advice.
(f) The escrow agent does not have any interest in the Escrowed Property
deposited hereunder but is serving as escrow holder only and having only
possession thereof. The other parties shall, on a joint and several basis, pay
or reimburse the escrow agent upon request for any and all expenses, if any,
incurred by the escrow agent in connection with this Agreement and transfer
taxes or other taxes relating to the Escrowed Property incurred in connection
herewith and shall indemnify and hold harmless the escrow agent from any amounts
that it is obligated to pay in the way of such expenses and taxes. This
subparagraph and subparagraph (c) shall survive notwithstanding any termination
of this Agreement or the resignation of the escrow agent.
(g) The escrow agent makes no representation as to the validity, value,
genuineness or the collectability of any security or other document or
instrument held by or delivered to it.
(h) The escrow agent may at any time resign as such by delivering the
Escrowed Property to any successor escrow agent jointly designated by the other
parties hereto in writing, or to any court of competent jurisdiction, whereupon
the escrow agent shall be discharged of and from any and all further obligations
arising in connection with this Agreement. The resignation of the escrow agent
will take effect on the earlier of (a) the appointment of a successor (including
a court of competent jurisdiction) or (b) the day which is 30 days after the
date of delivery of its written notice of resignation to the other parties
hereto. If at that time the escrow agent has not received a designation of a
successor escrow agent, the escrow agent's sole responsibility after that time
shall be to safekeep the Escrowed Property until receipt of a designation of
successor escrow agent or a joint written disposition instruction by the other
parties hereto or a final order of a court of competent jurisdiction.
(i) In the event of any disagreement between the other parties hereto
resulting in adverse claims or demands being made in connection with the
Escrowed Property, or in the event that the escrow agent in good faith is in
doubt as to what action it should take hereunder, the escrow agent shall be
entitled to retain the Escrowed Property until the escrow agent shall have
received (i) a final non-appealable order of a court of competent jurisdiction
directing delivery of the Escrowed Property or (ii) a written agreement executed
by the other parties hereto directing delivery of the Escrowed Property, in
which event the escrow agent shall disburse the Escrowed Property in accordance
with such order or agreement. Any court order shall be accompanied by a legal
opinion by counsel for the presenting party satisfactory to the escrow agent to
the effect that said opinion is final and non-appealable.
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(j) Notwithstanding anything to the contrary contained herein, the escrow
agent's duties and obligations hereunder shall terminate upon the release and
distribution of the Escrowed Property in accordance with the terms of this
Agreement.
(k) Each of the Company and the Purchaser understands and agrees that,
notwithstanding its duties as escrow agent hereunder, the escrow agent is the
attorney for the Company, and, accordingly, neither any services as escrow agent
hereunder nor any provisions hereof, either express or implied, shall restrict
or inhibit the escrow agent in any way from representing the Company or its
affiliates in any action, dispute, controversy, arbitration, suit or negotiation
arising under this Agreement or under any other agreement or in any manner or
context whatsoever, whether or not directly or indirectly involving the Company
or its affiliates. Notwithstanding anything to the contrary contained herein, if
at any time a law firm representing either Company or Purchasers serves or is
serving as escrow agent, then with respect to such law firm's capacity as escrow
agent, such counsel shall not for these purposes serve as the agent for either
of the parties, but shall be a fiduciary of both parties.
9. EXECUTION OF AGREEMENT.
THE PURCHASER ACKNOWLEDGES THAT THE PURCHASER HAS SIGNED THIS AGREEMENT ON
THE PURCHASER'S OWN BEHALF, AND NOT BY POWER OF ATTORNEY.
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IN WITNESS WHEREOF, the parties have executed this Purchase Agreement
as of the day and year first written above.
By:
--------------------------------------------------
Name of Purchaser(s):
Address:
--------------------------------------------------
Social Security or Taxpayer
Identification Number of Purchaser(s)
--------------------------------------------------
Number of Shares Purchased
--------------------------------------------------
Number of Warrants Purchased
*$________________________________
U.S. Dollar Amount Invested
Date: ____________, 2002
* If Purchaser is a Registered Representative with a NASD member firm,
have the following acknowledgment signed by the appropriate party:
The undersigned NASD member firm acknowledges receipt of the notice required by
Article 3, Sections 28(a) and (b) of the Rules of Fair Practice.
By:
-----------------------------------------------------
Name of NASD Member Firm:
By:
-----------------------------------------------------
Authorized Officer:
* Estimated based on $___ per share of Common Stock. Adjustments will be
made in the Payment if the Offering Price, as defined in the Purchase
Agreement, is different than the estimated $___ price per share. The
Purchaser agrees to remit to the Company on the applicable Closing the
balance of the Payment if the Offering Price is greater than $___ per
share. The Company agrees to promptly remit to the Purchaser any excess
Payment made by the Purchaser if the Offering Price is less than $___
per share.
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Subscription Accepted:
PALATIN TECHNOLOGIES, INC.
By:
---------------------------------------------------
▇▇▇▇ ▇▇▇▇▇, Ph.D.
Chief Executive Officer
Date: __________, 2002
14
EXHIBIT A
WIRE TRANSFER INSTRUCTIONS
Wire transfers should be made to ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ and ▇▇▇▇▇
PC, as Escrow Agent, Fleet Bank of Massachusetts, N.A., ▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇,
ABA#▇▇▇▇▇▇▇▇▇, Account Name: ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ and ▇▇▇▇▇ PC IOLTA
Account, Account Number 534-66888, Reference: Palatin Technologies.
A-1