Exhibit 1.1
$25,000,000
ARRAY BIOPHARMA
INC.
Common Stock
Equity Distribution
Agreement
September 18, 2009
PIPER JAFFRAY & CO.
U.S. Bancorp Center
800 Nicollet Mall
Minneapolis, Minnesota 55402
Ladies and Gentlemen:
Array BioPharma Inc., a Delaware
corporation (the “ Company ”), proposes
to issue and sell through or to Piper Jaffray & Co. (the
“ Agent ”), as sales agent and/or
principal, shares of Common Stock, $0.001 par value per share (the
“ Common Stock ”), of the Company having
an aggregate offering price of up to $25,000,000 (the “
Shares ”) on terms set forth herein. The
Company agrees that whenever it determines to sell the Shares
directly to the Agent as principal, it will enter into a separate
agreement (each, a “ Terms Agreement ”)
in substantially the form of Annex A hereto, relating to
such sale in accordance with this Agreement. The Shares
consist entirely of authorized but unissued shares of Common Stock
to be issued and sold by the Company.
The Company hereby confirms its
agreement with the Agent with respect to the sale of the
Shares.
1.
Representations and Warranties of
the Company .
(a)
The Company
represents and warrants to, and agrees with, the Agent as
follows:
(i)
A registration
statement on Form S-3 (File No. 333-155221) (the
“ registration
statement ”) was initially
declared effective by the Commission on December 4, 2008, and
is currently effective, under the Securities Act of 1933, as
amended, and the rules and regulations thereunder (the
“ Rules and
Regulations” ) (collectively called the
“ Securities
Act ”); the Company has
complied to the Commission’s satisfaction with all requests
of the Commission for additional or supplemental information; no
stop order of the Securities and Exchange Commission (the
“ Commission ”) preventing or
suspending the use of any Base Prospectus (as defined below), the
Prospectus Supplement (as defined below), the Prospectus (as
defined below) or any Permitted Free Writing Prospectus (as defined
below), or the effectiveness of the
Registration
Statement, has been issued, and no proceedings for such purpose
have been instituted or, to the Company’s knowledge after due
inquiry, are contemplated by the Commission. Except where the
context otherwise requires, “ Registration Statement ,” as used herein,
means the registration statement, as amended at the time of such
registration statement’s effectiveness for purposes of
Section 11 of the Securities Act, as such section applies to
the Agent, including (1) all documents filed as a part thereof
or incorporated or deemed to be incorporated by reference therein,
(2) any information contained or incorporated by reference in
a prospectus filed with the Commission pursuant to
Rule 424(b) under the Securities Act, to the extent such
information is deemed, pursuant to Rule 430B or Rule 430C
under the Securities Act, to be part of the registration statement
at the Effective Time, and (3) any registration statement
filed to register the offer and sale of Shares pursuant to
Rule 462(b) under the Securities Act (the
“462(b) Registration
Statement” ). Except where the
context otherwise requires, “ Base Prospectus ,” as used herein,
means the prospectus filed as part of the Registration Statement,
together with any amendments or supplements thereto as of the date
of this Agreement. Except where the context otherwise
requires, “ Prospectus Supplement ,” as used herein,
means the most recent prospectus supplement relating to the Shares,
filed by the Company with the Commission pursuant to
Rule 424(b) under the Securities Act and in accordance
with the terms of this Agreement. Except where the context
otherwise requires, “ Prospectus ,” as used herein,
means the Prospectus Supplement together with the Base Prospectus
attached to or used with the Prospectus Supplement.
“ Permitted Free
Writing Prospectus ,” as used herein,
means the documents, if any, listed on Schedule A attached
hereto and, after the date hereof, any “issuer free writing
prospectus” as defined in Rule 433 of the Securities
Act, that is expressly agreed to by the Company and the Agent in
writing to be a Permitted Free Writing Prospectus. Any reference
herein to the registration statement, the Registration Statement,
the Base Prospectus, the Prospectus Supplement, the Prospectus or
any Permitted Free Writing Prospectus shall be deemed to refer to
and include the documents, if any, incorporated by reference, or
deemed to be incorporated by reference, therein pursuant to Item 12
of Form S-3 (the “ Incorporated Documents ”), including, unless
the context otherwise requires, the documents, if any, filed as
exhibits to such Incorporated Documents. For purposes of this
Agreement, all references to the Registration Statement, the
Rule 462(b) Registration Statement, the Base Prospectus,
the Prospectus or any amendment or supplement to any of the
foregoing shall be deemed to include the copy filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and
Retrieval System (“ EDGAR ”). All
references in this Agreement to financial statements and schedules
and other information which is “described,”
“contained,” “included” or
“stated” in the Registration Statement, the Base
Prospectus, the Prospectus or any Permitted Free Writing Prospectus
(or other references of like import) shall be deemed to mean and
include all such financial statements and schedules and other
information which is incorporated by reference in or otherwise
deemed by the Rules and Regulations to be a part of or
included in the Registration Statement, the Base Prospectus, the
Prospectus or Permitted Free Writing Prospectus as the case may
be. Any reference herein to the terms “
amend ,” “
amendment ” or “
supplement
” with
respect to the Registration Statement, any Base Prospectus, the
Prospectus, the Prospectus Supplement or any Permitted Free Writing
Prospectus shall be deemed to refer to and include the filing of
any document under the Securities Exchange Act of 1934, as amended,
and the rules and regulations
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thereunder
(collectively, the “ Exchange Act ”) on or after the
initial effective date of the Registration Statement, or the date
of such Base Prospectus, the Prospectus, the Prospectus Supplement
or such Permitted Free Writing Prospectus, if any, as the case may
be, and deemed to be incorporated therein by
reference. “Time of Sale”
means each
time a
Share is purchased pursuant to this Agreement or any Terms
Agreement.
(ii)
(A)
The Registration Statement complied when it became effective,
complies as of the date hereof, and will comply upon the
effectiveness of any amendment thereto and at each Time of Sale and
each Settlement Date (as applicable), in all material respects,
with the requirements of the Securities Act; at all times during
which a prospectus is required by the Securities Act to be
delivered (whether physically or through compliance with
Rule 172 under the Securities Act or any similar rule) in
connection with any sale of Shares (the “
Prospectus Delivery
Period ”), the Registration
Statement, as may be amended, will comply, in all material
respects, with the requirements of the Securities Act; the
conditions to the use of Form S-3 in connection with the
offering and sale of the Shares as contemplated hereby have been
satisfied; the Registration Statement meets, and the offering and
sale of the Shares as contemplated hereby complies with, the
requirements of Rule 415 under the Securities Act (including,
without limitation, Rule 415(a)(5)); the Registration
Statement did not, as of the time of its effectiveness and as of
the date hereof, and will not, as of the effective date of any
amendment thereto, at each Time of Sale, if any, and at all times
during a Prospectus Delivery Period, contain an untrue statement of
a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading.
(B)
The Prospectus, as of its date, as of the date hereof (if filed
with the Commission on or prior to the date hereof), at each
Settlement Date and Time of Sale (as applicable), and at all times
during a Prospectus Delivery Period, complied, complies or will
comply, in all material respects, with the requirements of the
Securities Act; and the Prospectus, and each supplement thereto, as
of their respective dates, at each Settlement Date or Time of Sale
(as applicable), and at all times during a Prospectus Delivery
Period, did not and will not include an untrue statement of a
material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading.
(C)
Each Permitted Free Writing Prospectus, if any, as of its date and
as of each Settlement Date and Time of Sale (as applicable), and at
all times during a Prospectus Delivery Period (when taken together
with the Prospectus at such time) will not include an untrue
statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not
misleading.
The
representations and warranties set forth in subparagraphs (A),
(B) and (C) above shall not apply to any statement
contained in the Registration Statement, any Base
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Prospectus, the
Prospectus or any Permitted Free Writing Prospectus in reliance
upon and in conformity with information concerning the Agent that
is furnished in writing by or on behalf of the Agent expressly for
use in the Registration Statement, such Base Prospectus, the
Prospectus or such Permitted Free Writing Prospectus, if any, it
being understood and agreed that only such information furnished by
the Agent consists of the information described in
Section 5(g).
(iii)
Prior to the execution of this Agreement, the Company has not,
directly or indirectly, offered or sold any Shares by means of any
“prospectus” (within the meaning of the Securities Act)
or used any “prospectus” (within the meaning of the
Securities Act) in connection with the offer or sale of the Shares,
in each case other than the Base Prospectus or any Permitted Free
Writing Prospectus; the Company has not, directly or indirectly,
prepared, used or referred to any Permitted Free Writing Prospectus
except in compliance with Rules 164 and 433 under the
Securities Act; assuming that a Permitted Free Writing
Prospectus, if any, is sent or given after the Registration
Statement was filed with the Commission (and after such Permitted
Free Writing Prospectus, if any, was, if required pursuant to
Rule 433(d) under the Securities Act, filed with the
Commission), the Company will satisfy the provisions of
Rule 164 or Rule 433 necessary for the use of a free
writing prospectus (as defined in Rule 405) in connection with
the offering of the Shares contemplated hereby; the conditions set
forth in one or more of subclauses (i) through (iv),
inclusive, of Rule 433(b)(1) under the Securities Act are
satisfied, and the registration statement relating to the offering
of the Shares contemplated hereby, as initially filed with the
Commission, includes a prospectus that, other than by reason of
Rule 433 or Rule 431 under the Securities Act, satisfies
the requirements of Section 10 of the Securities Act; neither
the Company nor the Agent is disqualified, by reason of subsection
(f) or (g) of Rule 164 under the Securities Act,
from using, in connection with the offer and sale of the Shares,
“free writing prospectuses” (as defined in
Rule 405 under the Securities Act) pursuant to Rules 164
and 433 under the Securities Act; the Company is not an
“ineligible issuer” (as defined in Rule 405 under
the Securities Act) as of the eligibility determination date for
purposes of Rules 164 and 433 under the Securities Act with
respect to the offering of the Shares contemplated by the
Registration Statement; the parties hereto agree and understand
that the content of any and all “road shows” (as
defined in Rule 433 under the Securities Act) related to the
offering of the Shares contemplated hereby is solely the property
of the Company.
(iv)
Each Permitted Free Writing Prospectus, as of its issue date, each
Time of Sale and each Settlement Date occurring after such issue
date and at all subsequent times through the Prospectus Delivery
Period (as defined below) or until any earlier date that the
Company notified or notifies the Agent as described in
Section 3(c)(iii), did not, does not and will not include any
information that conflicted, conflicts or will conflict with the
information contained in the Registration Statement, any Base
Prospectus or the Prospectus. The foregoing sentence does not
apply to statements in or omissions from any Permitted Free Writing
Prospectus based upon and in conformity with written information
furnished to the Company by the Agent specifically for use therein,
it being understood and agreed that only such information furnished
by the Agent consist of the information described in
Section 5(g).
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(v)
The financial statements of the Company, together with the related
notes, set forth or incorporated by reference in the Registration
Statement and the Prospectus comply in all material respects with
the requirements of the Securities Act and the Exchange Act and
fairly present the financial condition of the Company as of the
dates indicated and the results of operations and changes in cash
flows for the periods therein specified in conformity with
generally accepted accounting principles consistently applied
throughout the periods involved; and the supporting schedules
included in the Registration Statement present fairly the
information required to be stated therein. No other financial
statements or schedules are required to be included in the
Registration Statement and the Prospectus. To the
Company’s knowledge, KPMG LLP, which has expressed its
opinion with respect to the financial statements and schedules
filed as a part of the Registration Statement and included in the
Registration Statement and the Prospectus and with regard to the
Company’s internal control over financing reporting and
management’s assessment thereof, is a registered public
accounting firm within the meaning of the Sarbanes-Oxley Act of
2002 (the “ Sarbanes-Oxley Act ”), and in the
performance of its work for the Company has not been in violation
of the auditor independence requirements of the Sarbanes-Oxley
Act.
(vi)
The Company has been duly organized and is validly existing as a
corporation in good standing under the laws of its jurisdiction of
incorporation. The Company has full corporate power and authority
to own its properties and conduct its business as currently being
carried on and as described in the Registration Statement and the
Prospectus, and is duly qualified to do business as a foreign
corporation in good standing in each jurisdiction in which it owns
or leases real property or in which the conduct of its business
makes such qualification necessary and in which the failure to so
qualify would have a material adverse effect upon the business,
prospects, management, properties, operations, condition (financial
or otherwise) or results of operations of the Company
(“ Material Adverse
Effect ”).
(vii)
Except as disclosed in the Prospectus, subsequent to the dates as
of which information is given in the Prospectus, the Company has
not incurred any material liabilities or obligations, direct or
contingent, or entered into any material transactions, or declared
or paid any dividends or made any distribution of any kind with
respect to its capital stock; and there has not been any change in
the capital stock, or issuance of options, warrants, convertible
securities or other rights to purchase the capital stock (other
than due to the issuance, redemption or forfeiture of any shares of
capital stock, or options,
warrants, convertible securities or other rights to
purchase capital stock, under any stock option or incentive,
stock purchase or similar employee benefit plans described in the
Prospectus, including upon the exercise of outstanding options, or
pursuant to the terms of outstanding warrants, or in satisfaction
of outstanding debt of the Company as described in the Prospectus
(collectively, “ Additional Issuances ”)), or any material
change in the short-term or long-term debt, of the Company, or any
Material Adverse Effect or any development that would reasonably be
expected to result in a Material Adverse Effect.
(viii)
Except as set forth in the Prospectus, there is not pending or, to
the knowledge of the Company, threatened or contemplated, any
action, suit or proceeding to
5
which the Company
is a party or of which any property or assets of the Company is the
subject before or by any court or governmental agency, authority or
body, or any arbitrator, which, individually or in the aggregate,
might result in any Material Adverse Effect.
(ix)
There are no statutes, regulations, contracts or documents that are
required to be described in the Registration Statement and the
Prospectus or be filed as exhibits to the Registration Statement by
the Securities Act or by the Rules and Regulations that have
not been so described or filed.
(x)
This Agreement has been, and each Terms Agreement will be, duly
authorized, executed and delivered by the Company, and constitutes
a valid, legal and binding obligation of the Company, enforceable
in accordance with its terms, except as rights to indemnity
hereunder may be limited by federal or state securities laws and
except as such enforceability may be limited by bankruptcy,
insolvency, reorganization or similar laws affecting the rights of
creditors generally and subject to general principles of
equity. The execution, delivery and performance of this
Agreement and any Terms Agreement and the consummation of the
transactions herein and therein contemplated will not result in a
breach or violation of any of the terms and provisions of, or
constitute a default under, any statute, any agreement or
instrument to which the Company is a party or by which it is bound
or to which any of its property is subject, the Company’s
charter or by-laws, or any order, rule, regulation or decree of any
court or governmental agency or body having jurisdiction over the
Company or any of its properties; no consent, approval,
authorization or order of, or filing with, any court or
governmental agency or body is required for the execution, delivery
and performance of this Agreement or any Terms Agreement or for the
consummation of the transactions contemplated hereby and thereby,
including the issuance or sale of the Shares by the Company, except
such as may be required under the Securities Act or state
securities or blue sky laws; and the Company has and will have full
power and authority to enter into this Agreement and any Terms
Agreement and to authorize, issue and sell the Shares as
contemplated hereby and thereby.
(xi)
All of the issued and outstanding shares of capital stock of the
Company, including the outstanding shares of Common Stock, are duly
authorized and validly issued, fully paid and nonassessable, have
been issued in compliance with all federal and state securities
laws, were not issued in violation of or subject to any preemptive
rights or other rights to subscribe for or purchase securities that
have not been waived in writing, and the holders thereof are not
subject to personal liability by reason of being such holders; the
Shares which may be sold under this Agreement or any Terms
Agreement by the Company have been duly authorized and, when
issued, delivered and paid for in accordance with the terms of this
Agreement or any Terms Agreement, as applicable, will have been
validly issued and will be fully paid and nonassessable, and the
holders thereof will not be subject to personal liability by reason
of being such holders; and the capital stock of the Company,
including the Common Stock, conforms to the description thereof in
the Registration Statement and the Prospectus. Except as
otherwise stated in the Registration Statement and the Prospectus,
there are no preemptive rights or other rights to subscribe for or
to purchase, or any restriction upon the voting or transfer of, any
shares of Common Stock pursuant to the Company’s charter,
by-laws or any agreement or other instrument to
6
which the Company
is a party or by which the Company is bound. Neither the
filing of the Registration Statement nor the offering or sale of
the Shares as contemplated by this Agreement and any Terms
Agreement gives rise to any rights for or relating to the
registration of any shares of Common Stock or other securities of
the Company. Except as described in the Registration
Statement and the Prospectus and other than Additional Issuances,
there are no options, warrants, agreements, contracts or other
rights in existence to purchase or acquire from the Company any
shares of the capital stock of the Company. The Company has
an authorized and outstanding capitalization as set forth in the
Registration Statement and the Prospectus as of the dates set forth
therein.
(xii)
The Company holds, and is operating in compliance in all material
respects with, all franchises, grants, authorizations, licenses,
permits, easements, consents, certificates and orders of any
governmental or self-regulatory body required for the conduct of
its business and all such franchises, grants, authorizations,
licenses, permits, easements, consents, certifications and orders
are valid and in full force and effect; and the Company has not
received notice of any revocation or modification of any such
franchise, grant, authorization, license, permit, easement,
consent, certification or order or has reason to believe that any
such franchise, grant, authorization, license, permit, easement,
consent, certification or order will not be renewed in the ordinary
course; and the Company is in compliance in all material respects
with all applicable federal, state, local and foreign laws,
regulations, orders and decrees.
(xiii)
The Company has good and marketable title to all property (whether
real or personal) described in the Registration Statement and the
Prospectus as being owned by it, in each case free and clear of all
liens, claims, security interests, other encumbrances or defects
except such as are described in the Registration Statement and the
Prospectus. The property held under lease by the Company is
held by it under valid, subsisting and enforceable leases with only
such exceptions with respect to any particular lease as do not
interfere in any material respect with the conduct of the business
of the Company.
(xiv)
The Company owns, possesses, or can acquire on reasonable terms,
all Intellectual Property necessary for the conduct of the
Company’s business as now conducted or as described in the
Registration Statement and the Prospectus to be conducted, except
as such failure to own, possess, or acquire such rights would not
result in a Material Adverse Effect. Furthermore, (A) to
the knowledge of the Company, there is no infringement,
misappropriation or violation by third parties of any such
Intellectual Property, except as such infringement,
misappropriation or violation would not result in a Material
Adverse Effect; (B) there is no pending or, to the knowledge
of the Company, threatened, action, suit, proceeding or claim by
others challenging the Company’s rights in or to any such
Intellectual Property, and the Company is unaware of any facts
which would form a reasonable basis for any such claim;
(C) the Intellectual Property owned by the Company, and to the
knowledge of the Company, the Intellectual Property licensed to the
Company, has not been adjudged invalid or unenforceable, in whole
or in part, and there is no pending or, to the knowledge of the
Company, threatened action, suit, proceeding or claim by others
challenging the validity or scope of any such Intellectual
Property, and the Company is unaware of any facts which would form
a reasonable basis for any such claim;
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(D) there is
no pending or, to the knowledge of the Company, threatened action,
suit, proceeding or claim by others that the Company infringes,
misappropriates or otherwise violates any Intellectual Property or
other proprietary rights of others, the Company has not received
any written notice of such claim and the Company is unaware of any
other fact which would form a reasonable basis for any such claim;
and (E) to the Company’s knowledge, no employee of the
Company is in or has ever been in violation of any term of any
employment contract, patent disclosure agreement, invention
assignment agreement, non-competition agreement, non-solicitation
agreement, nondisclosure agreement or any restrictive covenant to
or with a former employer where the basis of such violation relates
to such employee’s employment with the Company or actions
undertaken by the employee while employed with the Company, except
as such violation would not result in a Material Adverse
Effect. “ Intellectual Property ” shall mean all
patents, patent applications, trade and service marks, trade and
service mark registrations, trade names, copyrights,
licenses, inventions, trade secrets, domain names, technology,
know-how and other intellectual property.
(xv)
The Company is not (A) in violation of its charter or by laws,
or (B) in breach of or otherwise in default, and no event has
occurred which, with notice or lapse of time or both, would
constitute such a default in the performance of any material
obligation, agreement or condition contained in any bond,
debenture, note, indenture, loan agreement, mortgage, deed of trust
or any other material contract, lease or other instrument to which
it is subject or by which any of them may be bound, or to which any
of the material property or assets of the Company is subject
(collectively, the “ Material Contracts ”); or (C) in
violation of any law or statute or any judgment, order,
rule or regulation of any court or arbitrator or governmental
or regulatory authority, except in the case of (B) and
(C) above, as could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse
Change.
(xvi)
The Company has timely filed all federal, state, local and foreign
income and franchise tax returns required to be filed and are not
in default in the payment of any taxes which were payable pursuant
to said returns or any assessments with respect thereto, other than
any which the Company is contesting in good faith. There is
no pending dispute with any taxing authority relating to any of
such returns, and the Company has no knowledge of any proposed
liability for any tax to be imposed upon the properties or assets
of the Company for which there is not an adequate reserve reflected
in the Company’s financial statements included in the
Registration Statement.
(xvii)
The Company has not distributed and will not distribute any
prospectus or other offering material in connection with the
offering and sale of the Shares other than any the Registration
Statement and the Prospectus or other materials permitted by the
Securities Act to be distributed by the Company; provided,
however, that the Company has not made and will not make any
offer relating to the Shares that would constitute a “free
writing prospectus” as defined in Rule 405 under the
Securities Act, except in accordance with the provisions of
Section 3(p) of this Agreement.
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(xviii)
The Common Stock is registered pursuant to
Section 12(b) of the Exchange Act and is included or
approved for inclu

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