Exhibit 10.15
SUPPORT AGREEMENT
THIS SUPPORT AGREEMENT (this “
Agreement ”) is made and entered into as of
June 6, 2008, by and among CytRx Corporation, a Delaware
corporation (“ CytRx ”), CytRx Merger
Subsidiary, Inc., a Delaware corporation and wholly owned
subsidiary of CytRx (“ Merger Subsidiary ”), and
Angelo De Caro (“ Stockholder ”).
WHEREAS, concurrently with the
execution of this Agreement, CytRx, Merger Subsidiary and Innovive
Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), are entering into an Agreement and Plan of
Merger (as it may be amended, the “ Merger Agreement
”), providing for the merger of Merger Subsidiary with and
into the Company (the “ Merger ”), pursuant to
which the Company will become a wholly owned subsidiary of
CytRx;
WHEREAS, as of the date hereof,
Stockholder is the record and beneficial owner of 30,000 shares of
common stock, par value $0.001 per share, of the Company (such
shares, together with any other shares of Company common stock
acquired by Stockholder after the date hereof, being collectively
referred to herein as the “ Shares ”); and
WHEREAS, as a condition to their
willingness to enter into the Merger Agreement, CytRx and Merger
Subsidiary have required that Stockholder enter into this Agreement
and, in order to induce CytRx and Merger Subsidiary to enter into
the Merger Agreement, Stockholder is willing to enter into this
Agreement.
NOW, THEREFORE, in consideration of
the foregoing and the mutual covenants and agreements contained
herein, the parties hereto, intending to be legally bound hereby,
agree as follows:
1. Agreements of
Stockholder .
(a)
Voting; Refrain From Certain Proxy Solicitations . From the
date hereof until any termination of this Agreement in accordance
with its terms, at any meeting of the shareholders of the Company
however called (or any action by written consent in lieu of a
meeting) and any adjournment thereof, Stockholder shall vote the
Shares (or cause them to be voted) or (as appropriate) execute
written consents in respect thereof, (i) in favor of the
adoption of the Merger Agreement and the approval of the
transactions contemplated thereby, (ii) against any action or
agreement (including, without limitation, any amendment of any
agreement) that would result in a breach of any representation,
warranty, covenant, agreement or other obligation of the Company
under the Merger Agreement, (iii) against any Acquisition
Proposal and (iv) against any agreement (including, without
limitation, any amendment of any agreement), amendment of the
Company’s charter documents or other action that is intended
or could reasonably be expected to prevent, impede, interfere with,
delay, postpone or discourage the consummation of the Merger. Any
such vote shall be cast (or consent shall be given) by Stockholder
in accordance with such procedures relating thereto so as to ensure
that it is duly counted, including for purposes of determining that
a quorum is present and for purposes of recording the results of
such vote (or consent). Stockholder further covenants and agrees
that he shall not solicit proxies or participate in a solicitation
with respect to an Acquisition Proposal.
(b)
Irrevocable Proxy . Concurrently with the execution of this
Agreement, Stockholder agrees to deliver to CytRx a proxy in the
form attached hereto as Annex A (the “ Proxy
”), which shall be irrevocable to the extent provided
therein.
(c)
Restriction on Transfer; Other Restrictions . From the date
hereof until any termination of this Agreement in accordance with
its terms, Stockholder shall not directly or indirectly
(i) sell, transfer (including by operation of law), give,
pledge, encumber, assign or otherwise dispose of, or enter into any
contract, option or other arrangement or understanding with respect
to the sale, transfer, gift, pledge, encumbrance, assignment or
other disposition of, any of the Shares (or any right, title or
interest thereto or therein), (ii) deposit any of the Shares
into a voting trust or grant any proxies or enter into a voting
agreement, power of attorney or voting trust with respect to any of
the Shares, (iii) take any action that would make any
representation or warranty of Stockholder set forth in this
Agreement untrue or incorrect in any material respect or have the
effect of preventing, disabling or delaying Stockholder from
performing any of his obligations under this Agreement or
(iv) agree (whether or not in writing) to take any of the
actions referred to in the foregoing clauses of this
Section 1(c). Notwithstanding the foregoing, Stockholder
(a) may transfer any of the Shares, or execute an assignment
with respect to the Shares, if such transfer or assignment is made
to a family member or a controlled affiliate of the Stockholder or
is made to a trust or similar vehicle in connection with estate
planning purposes; provided that, in each case, the transferee,
trustee, proxy holder, or beneficiary of the Shares resulting from
such transfer or assignment executes a joinder agreement,
reasonably acceptable to CytRx and Merger Subsidiary, whereby such
transferee, proxy holder or beneficiary would become a party to
this Agreement and become subject to all of the rights and
obligations hereunder, or (b) with the prior written consent
of CytRx and Merger Subsidairy (which consent may be withheld in
their sole discretion), may transfer any of the Shares, or execute
an assignment with respect to the Shares, other than as
contemplated in clause (a).
2. Representation and
Warranties of CytRx and Merger Subsidiary . CytRx and Merger
Subsidiary jointly and severally represent and warrant to
Stockholder as follows:
(a)
Due Authorization . This Agreement has been authorized by
all necessary corporate action on the part of each of CytRx and
Merger Subsidiary and has been duly executed by a duly authorized
officer of each of CytRx and Merger Subsidiary.
(b)
Validity; No Conflict . This Agreement constitutes the
legal, valid and binding obligation of each of CytRx and Merger
Subsidiary, enforceable against each of them in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting or relating
to creditors’ rights generally and by general principles of
equity. Neither the execution of this Agreement by CytRx and Merger
Subsidiary nor the consummation of the transactions contemplated
hereby will result in a breach or violation of the terms of any
agreement by which CytRx or any CytRx subsidiary is bound or of any
decree, judgment, order, law or regulation now in effect of any
court or other governmental body applicable to CytRx or any CytRx
subsidiary.
3. Representations and
Warranties of Stockholder . Stockholder hereby represents and
warrants to CytRx and Merger Subsidiary as follows:
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(a)
Validity; Consents and Approvals; No Conflict . This
Agreement constitutes the legal, valid and binding obligation of
Stockholder, enforceable against Stockholder in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting or relating
to creditors’ rights generally and by general principles of
equity. No consents or approvals of, or filings, declarations or
registrations with, any governmental agency are necessary for the
performance by Stockholder of its obligations under this Agreement,
other than such other consents, approvals, filings, declarations or
registrations that, if not obtained, made or given, would not,
individually or in the aggregate, reasonably be expected to prevent
or materially delay the performance by Stockholder of any of his
obligations under this Agreement. Neither the execution and
delivery of this Agreement by Stockholder, nor the performance by
Stockholder of his obligations hereunder, will result in a breach
or violation of the terms of any agreement by which Stockholder is
bound or of any decree, judgment, order, law or regulation now in
effect of any court or other governmental body applicable to
Stockholder.
(b)
Ownership of Shares . Except as specifically described on
Annex B , Stockholder (i) is the record and beneficial
owner of all of the Shares and (ii) owns all of the Shares
free and clear of any proxy, voting restriction, adverse claim or
other Lien (other than proxies and restrictions in favor of CytRx
and Merger Subsidiary pursuant to this Agreement and except for
such transfer restrictions of general applicability as may be
provided under the Securities Act and the “blue sky”
laws of the various states of the United States). Without limiting
the foregoing, except for certain proxies and restrictions provided
for in clause (ii) above, Stockholder has sole voting power and
sole power of disposition with respect to all of the Shares, with
no restrictions on Stockholder’s rights of voting or
disposition pertaining thereto and no Person other than Stockholder
has any right to direct or approve the voting or disposition of any
of the Shares. As of the date hereof, Stockholder does not own,
beneficially or of record, any securities of the Company other than
30,000 shares of common stock which constitute the
“Shares”.
4. Termination . This
Agreement and the Proxy shall terminate on the first to occur of
(a) the termination of the Merger Agreement in accordance with
its terms and (b) the Effective Time. Notwithstanding the
foregoing, (i) nothing herein shall relieve any party from
liability for breach of this Agreement and (ii) the provisions
of this Section 4 and Section 5 of this Agreement shall
survive any termination of this Agreement.
5. Miscellaneous .
(a)
Action in Stockholder Capacity Only . The parties
acknowledge that this Agreement is entered into by Stockholder in
his capacity as owner of the Shares and that nothing in this
Agreement shall in any way restrict or limit any director or
officer of the Company from taking any action in his capacity as a
director or officer of the Company that is necessary for him to
comply with his fiduciary duties as a director or officer of the
Company, including, without limitation, participating in his
capacity as a director of the Company in any discussions or
negotiations in accordance with Section 6.03 of the Merger
Agreement.
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(b)
Expenses . Except as otherwise expressly provided in this
Agreement, all costs and expenses incurred in connection with the
transactions contemplated by this Agreement shall be paid by the
party incurring such costs and expenses.
(c)
Additional Shares . Until any termination of this Agreement
in accordance with its terms, Stockholder shall promptly notify
CytRx of the number of shares of Company common stock, if any, as
to which Stockholder acquires record or beneficial ownership after
the date hereof. Any shares of Company common stock as to which
Stockholder acquires record or beneficial ownership after the date
hereof and prior to termination of this Agreement shall be
“Shares” for purposes of this Agreement. Without
limiting the foregoing, in the event of any stock split, stock
dividend or other change in the capital structure of the Company
affecting the Company common stock, the number of shares
constituting “Shares” shall be adjusted appropriately
and this Agreement and the obligations hereunder shall attach to
any additional shares of Company common stock or other voting
securities of the Company issued to Stockholder in connection
therewith.
(d)
Definition of “Beneficial Ownership ”. For
purposes of this Agreement, “beneficial ownership” with
respect to (or to “own beneficially”) any securities
shall mean having “beneficial ownership” of such
securities (as determined pursuant to Rule 13d-3 under the
Exchange Act), including pursuant to any agreement, arrangement or
understanding, whether or not in writing.
(e)
Further Assurances . From time to time, at the request of
CytRx and without further consideration, Stockholder shall execute
and deliver such additional documents and take all such further
action as may be reasonably required to consummate and make
effective, in the most expeditious manner practicable, the
transactions contemplated by this Agreement.
(f)
Entire Agreement; No Third Party Beneficiaries . This
Agreement constitutes the entire agreement, and supersedes all
prior agreements and understandings, both written and oral, among
the parties, or any of them, with respect to the subject matter
hereof. This Agreement is not intended to and shall not confer upon
any Person other than the parties hereto any rights
hereunder.
(g)
Assignment; Binding Effect . Neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned
by any of the parties hereto without the prior written consent of
the other parties, except that (i) Merger Subsidiary may
assign its rights and interests hereunder to CytRx or to any wholly
owned subsidiary of CytRx if such assignment would not cause a
delay in the consummation of any of the transactions contemplated
by the Merger Agreement and (ii) the rights, interests and
obligations of Stockholder hereunder shall be binding upon
Stockholder’s heirs, trustees, executors and other
representatives in the event of Stockholder’s death or
incapacity. Subject to the preceding sentence, this Agreement shall
be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns. Any
purported assignment not permitted under this Section shall be null
and void.
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(h)
Amendments . This Agreement may not be amended or
supplemented, except by a written agreement executed by the parties
hereto.
(i)
Severability . If any term or other provision of this
Agreement is determined by a court of competent jurisdiction to be
invalid, illegal or incapable of being enforced by any rule of law
or public policy, all other terms, provisions and conditions of
this Agreement shall nevertheless remain in full force and effect.
Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible to
the fullest extent permitted by applicable law in an acceptable
manner to the end that the transactions contemplated hereby are
fulfilled to the extent possible.
(j)
Counterparts . This Agreement may be executed in two or more
separate counterparts, each of which shall be deemed to be an
original but all of which taken together shall constitute one and
the same agreement. This Agreement shall become effective when each
party hereto shall have received counterparts hereof signed by the
other parties hereto.
(k)
Descriptive Headings . Headings of Sections and subsections
of this Agreement are for convenience of the parties only, and
shall be given no substantive or interpretive effect
whatsoever.
(l)
Notices . All notices, requests and other communications to
any party hereunder shall be in writing (including facsimile
transmission) and shall be given,
If to
CytRx or Merger Subsidiary, to:
CytRx
Corporation
11726 San Vicente Boulevard, Suite 650
Los Angeles, California 90049
Attention: Steven A. Kriegsman
Facsimile: (310) 826-6139
with a copy
(which shall not constitute notice) to:
TroyGould
PC
1801 Century Park East, 16 th Floor
Los Angeles, California 90067
Attention: Sanford J. Hillsberg, Esq. and Dale E. Short, Esq.
Facsimile: (310) 201-4746
If to
Stockholder, to:
c/o Innovive
Pharmaceuticals, Inc.
555 Madison Avenue, 25th Floor
New York, New York 10022
Facsimile: (212) 716-1811
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with a
copy (which shall not constitute notice) to:
or such
other address or facsimile number as such party may hereafter
specify for the purpose by notice to the other parties hereto. All
such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if
received prior to 5 P.M. in the place of receipt and such day is a
business day in the place of receipt. Otherwise, any such notice,
request or communication shall be deemed not to have been received
until the next succeeding business day in the place of
receipt.
(m)
Governing Law; Enforcement; Jurisdiction . This Agreement
shall be governed by, and construed in accordance with, the laws of
the State of Delaware, applicable to contracts executed in and to
be performed entirely within that State. All actions and
proceedings arising out of or relating to this Agreement shall be
heard and determined in any federal or state court sitting in the
State of Delaware, and the parties hereto hereby irrevocably submit
to the exclusive jurisdiction of such courts in any such action or
proceeding and irrevocably waive the defense of an inconvenient
forum to the maintenance of any such action or proceeding. The
parties hereto agree that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner
provided by applicable law.
(n)
Specific Performance; Injunctive Relief . The parties agree
that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached. It is accordingly
agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in any
federal or state court sitting in the State of Delaware, this being
in addition to any other remedy to which they are entitled at law
or in equity.
(o)
Definitions . Capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Merger
Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties
hereto have duly executed and delivered this Agreement as of the
date and year first written above.
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CYTRX CORPORATION
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By: |
/s/ Steven A. Kriegsman |
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Name: |
Steven A. Kriegsman |
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Title: |
President and Chief Executive Officer |
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CYTRX MERGER SUBSIDIARY, INC.
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By: |
/s/ Steven A. Kriegsman |
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Name: |
Steven A. Kriegsman |
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Title: |
President and Chief Executive Officer |
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/s/ Angelo De Caro |
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Name: Angelo De Caro |
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THE
UNDERSIGNED, SPOUSE OF THE SHAREHOLDER, HEREBY EXPRESSLY APPROVES
AND AGREES TO BE BOUND BY THE PROVISIONS OF THIS AGREEMENT, AND
HEREBY AGREES NOT TO DEVISE OR BEQUEATH WHATEVER COMMUNITY PROPERTY
INTEREST OR QUASI-COMMUNITY PROPERTY INTEREST THE UNDERSIGNED MAY
HAVE IN THE SHARES IN CONTRAVENTION OF THE TERMS OF THIS
AGREEMENT.
(spouse of
)
7
ANNEX A
IRREVOCABLE PROXY
The undersigned Stockholder of
Innovive Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), hereby irrevocably appoints and
constitutes the members of the Board of Directors of CytRx
Corporation, a Delaware corporation (“ CytRx ”),
and each of them (the “ Proxyholders ”), the
proxies of the undersigned, with full power of substitution and
resubstitution, to the full extent of the undersigned’s
rights with respect to the shares of common stock of the Company
beneficially owned by the undersigned as of the date here, together
with any other shares of common stock of the Company acquired by
Stockholder after the date hereof and prior to the date this proxy
terminates (collectively, the “ Shares ”), to
vote the Shares for the following limited, and for no other,
purposes:
1. In favor of adoption of the
Agreement and Plan of Merger, dated as of June 6, 2008, by and
among CytRx, CytRx Merger Subsidiary, Inc., a Delaware corporation
and wholly owned subsidiary of CytRx (“ Merger
Subsidiary ”), and the Company, as the same may be
amended from time to time, and approval of the transactions
contemplated by the Merger Agreement; and
2. Against (A) any action
or agreement (including, without limitation, any amendment of any
agreement) that would result in a breach of any representation,
warranty, covenant, agreement or other obligation of the Company
under the Merger Agreement, (B) any Acquisition Proposal (as
such term is defined in the Merger Agreement) and (C) any
agreement (including, without limitation, any amendment of any
agreement), amendment of the Company’s charter documents or
other action that is intended or could reasonably be expected to
prevent, impede, interfere with, delay, postpone or discourage the
consummation of the Merger.
The Proxyholders may not exercise
this proxy on any other matter. The undersigned Stockholder may
vote the Shares on all such other matters.
The proxies named above are empowered
at any time prior to termination of this proxy to exercise all
voting rights (including the power to execute and deliver written
consents with respect to the Shares) of the undersigned at every
annual, special or adjourned meeting of Company shareholders, and
in every written consent in lieu of such meeting, or
otherwise.
The proxy granted by the Stockholder
to the Proxyholders is hereby granted as of the date hereof in
connection with the obligations of the Stockholder set forth in the
Support Agreement, dated as of June 6, 2008, among CytRx,
Merger Subsidiary and the Stockholder (the “ Support
Agreement ”), and is irrevocable and coupled with an
interest in such obligations and in the interests in the Company to
be purchased and sold pursuant to the Merger Agreement. This proxy
will automatically terminate upon the termination of the Support
Agreement in accordance with its terms.
A-1
Upon
the execution hereof, all prior proxies given by the undersigned
with respect to the Shares, and any and all other shares or
securities issued or issuable in respect thereof on or after the
date hereof, are hereby revoked and no subsequent proxies will be
given until such time as this proxy shall be terminated in
accordance with its terms.
Any
obligation of the undersigned hereunder shall be binding upon the
successors and assigns of the undersigned. The undersigned hereby
authorizes the Proxyholders to file this proxy and any substitution
or revocation of substitution with the Secretary of the Company and
with any Inspector of Elections at any meeting of Stockholders of
the Company.
This
proxy is irrevocable and shall survive the incapacity or death of
the undersigned.
Dated:
June 6, 2008
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/s/ Angelo De Caro |
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Angelo De Caro |
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THE
UNDERSIGNED, SPOUSE OF THE SHAREHOLDER, HEREBY EXPRESSLY APPROVES
AND AGREES TO BE BOUND BY THE PROVISIONS OF THIS PROXY, AND HEREBY
AGREES NOT TO DEVISE OR BEQUEATH WHATEVER COMMUNITY PROPERTY
INTEREST OR QUASI-COMMUNITY PROPERTY INTEREST THE UNDERSIGNED MAY
HAVE IN THE SHARES IN CONTRAVENTION OF THE TERMS OF THIS
PROXY.
(spouse of
)
A-2
ANNEX B
OWNERSHIP OF SHARES
The
30,000 shares beneficially owned by Mr. De Caro include 10,000
shares issuable upon the exercise of options to purchase common
stock.
B - 1
SUPPORT AGREEMENT
THIS SUPPORT AGREEMENT (this “
Agreement ”) is made and entered into as of
June 6, 2008, by and among CytRx Corporation, a Delaware
corporation (“ CytRx ”), CytRx Merger
Subsidiary, Inc., a Delaware corporation and wholly owned
subsidiary of CytRx (“ Merger Subsidiary ”), and
Neil Herskowitz (“ Stockholder ”).
WHEREAS, concurrently with the
execution of this Agreement, CytRx, Merger Subsidiary and Innovive
Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), are entering into an Agreement and Plan of
Merger (as it may be amended, the “ Merger Agreement
”), providing for the merger of Merger Subsidiary with and
into the Company (the “ Merger ”), pursuant to
which the Company will become a wholly owned subsidiary of
CytRx;
WHEREAS, as of the date hereof,
Stockholder is the record and beneficial owner of 63,043 shares of
common stock, par value $0.001 per share, of the Company (such
shares, together with any other shares of Company common stock
acquired by Stockholder after the date hereof, being collectively
referred to herein as the “ Shares ”); and
WHEREAS, as a condition to their
willingness to enter into the Merger Agreement, CytRx and Merger
Subsidiary have required that Stockholder enter into this Agreement
and, in order to induce CytRx and Merger Subsidiary to enter into
the Merger Agreement, Stockholder is willing to enter into this
Agreement.
NOW, THEREFORE, in consideration of
the foregoing and the mutual covenants and agreements contained
herein, the parties hereto, intending to be legally bound hereby,
agree as follows:
6. Agreements of
Stockholder .
(a)
Voting; Refrain From Certain Proxy Solicitations . From the
date hereof until any termination of this Agreement in accordance
with its terms, at any meeting of the shareholders of the Company
however called (or any action by written consent in lieu of a
meeting) and any adjournment thereof, Stockholder shall vote the
Shares (or cause them to be voted) or (as appropriate) execute
written consents in respect thereof, (i) in favor of the
adoption of the Merger Agreement and the approval of the
transactions contemplated thereby, (ii) against any action or
agreement (including, without limitation, any amendment of any
agreement) that would result in a breach of any representation,
warranty, covenant, agreement or other obligation of the Company
under the Merger Agreement, (iii) against any Acquisition
Proposal and (iv) against any agreement (including, without
limitation, any amendment of any agreement), amendment of the
Company’s charter documents or other action that is intended
or could reasonably be expected to prevent, impede, interfere with,
delay, postpone or discourage the consummation of the Merger. Any
such vote shall be cast (or consent shall be given) by Stockholder
in accordance with such procedures relating thereto so as to ensure
that it is duly counted, including for purposes of determining that
a quorum is present and for purposes of recording the results of
such vote (or consent). Stockholder further covenants and agrees
that he shall not solicit proxies or participate in a solicitation
with respect to an Acquisition Proposal.
(b)
Irrevocable Proxy . Concurrently with the execution of this
Agreement, Stockholder agrees to deliver to CytRx a proxy in the
form attached hereto as Annex A (the “ Proxy
”), which shall be irrevocable to the extent provided
therein.
(c)
Restriction on Transfer; Other Restrictions . From the date
hereof until any termination of this Agreement in accordance with
its terms, Stockholder shall not directly or indirectly
(i) sell, transfer (including by operation of law), give,
pledge, encumber, assign or otherwise dispose of, or enter into any
contract, option or other arrangement or understanding with respect
to the sale, transfer, gift, pledge, encumbrance, assignment or
other disposition of, any of the Shares (or any right, title or
interest thereto or therein), (ii) deposit any of the Shares
into a voting trust or grant any proxies or enter into a voting
agreement, power of attorney or voting trust with respect to any of
the Shares, (iii) take any action that would make any
representation or warranty of Stockholder set forth in this
Agreement untrue or incorrect in any material respect or have the
effect of preventing, disabling or delaying Stockholder from
performing any of his obligations under this Agreement or
(iv) agree (whether or not in writing) to take any of the
actions referred to in the foregoing clauses of this
Section 1(c). Notwithstanding the foregoing, Stockholder
(a) may transfer any of the Shares, or execute an assignment
with respect to the Shares, if such transfer or assignment is made
to a family member or a controlled affiliate of the Stockholder or
is made to a trust or similar vehicle in connection with estate
planning purposes; provided that, in each case, the transferee,
trustee, proxy holder, or beneficiary of the Shares resulting from
such transfer or assignment executes a joinder agreement,
reasonably acceptable to CytRx and Merger Subsidiary, whereby such
transferee, proxy holder or beneficiary would become a party to
this Agreement and become subject to all of the rights and
obligations hereunder, or (b) with the prior written consent
of CytRx and Merger Subsidairy (which consent may be withheld in
their sole discretion), may transfer any of the Shares, or execute
an assignment with respect to the Shares, other than as
contemplated in clause (a).
7. Representation and
Warranties of CytRx and Merger Subsidiary . CytRx and Merger
Subsidiary jointly and severally represent and warrant to
Stockholder as follows:
(a)
Due Authorization . This Agreement has been authorized by
all necessary corporate action on the part of each of CytRx and
Merger Subsidiary and has been duly executed by a duly authorized
officer of each of CytRx and Merger Subsidiary.
(b)
Validity; No Conflict . This Agreement constitutes the
legal, valid and binding obligation of each of CytRx and Merger
Subsidiary, enforceable against each of them in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting or relating
to creditors’ rights generally and by general principles of
equity. Neither the execution of this Agreement by CytRx and Merger
Subsidiary nor the consummation of the transactions contemplated
hereby will result in a breach or violation of the terms of any
agreement by which CytRx or any CytRx subsidiary is bound or of any
decree, judgment, order, law or regulation now in effect of any
court or other governmental body applicable to CytRx or any CytRx
subsidiary.
8. Representations and
Warranties of Stockholder . Stockholder hereby represents and
warrants to CytRx and Merger Subsidiary as follows:
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(a)
Validity; Consents and Approvals; No Conflict . This
Agreement constitutes the legal, valid and binding obligation of
Stockholder, enforceable against Stockholder in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting or relating
to creditors’ rights generally and by general principles of
equity. No consents or approvals of, or filings, declarations or
registrations with, any governmental agency are necessary for the
performance by Stockholder of its obligations under this Agreement,
other than such other consents, approvals, filings, declarations or
registrations that, if not obtained, made or given, would not,
individually or in the aggregate, reasonably be expected to prevent
or materially delay the performance by Stockholder of any of his
obligations under this Agreement. Neither the execution and
delivery of this Agreement by Stockholder, nor the performance by
Stockholder of his obligations hereunder, will result in a breach
or violation of the terms of any agreement by which Stockholder is
bound or of any decree, judgment, order, law or regulation now in
effect of any court or other governmental body applicable to
Stockholder.
(b)
Ownership of Shares . Except as specifically described on
Annex B , Stockholder (i) is the record and beneficial
owner of all of the Shares and (ii) owns all of the Shares
free and clear of any proxy, voting restriction, adverse claim or
other Lien (other than proxies and restrictions in favor of CytRx
and Merger Subsidiary pursuant to this Agreement and except for
such transfer restrictions of general applicability as may be
provided under the Securities Act and the “blue sky”
laws of the various states of the United States). Without limiting
the foregoing, except for certain proxies and restrictions provided
for in clause (ii) above, Stockholder has sole voting power and
sole power of disposition with respect to all of the Shares, with
no restrictions on Stockholder’s rights of voting or
disposition pertaining thereto and no Person other than Stockholder
has any right to direct or approve the voting or disposition of any
of the Shares. As of the date hereof, Stockholder does not own,
beneficially or of record, any securities of the Company other than
63,043 shares of common stock which constitute the
“Shares”.
9. Termination . This
Agreement and the Proxy shall terminate on the first to occur of
(a) the termination of the Merger Agreement in accordance with
its terms and (b) the Effective Time. Notwithstanding the
foregoing, (i) nothing herein shall relieve any party from
liability for breach of this Agreement and (ii) the provisions
of this Section 4 and Section 5 of this Agreement shall
survive any termination of this Agreement.
10. Miscellaneous
.
(a)
Action in Stockholder Capacity Only . The parties
acknowledge that this Agreement is entered into by Stockholder in
his capacity as owner of the Shares and that nothing in this
Agreement shall in any way restrict or limit any director or
officer of the Company from taking any action in his capacity as a
director or officer of the Company that is necessary for him to
comply with his fiduciary duties as a director or officer of the
Company, including, without limitation, participating in his
capacity as a director of the Company in any discussions or
negotiations in accordance with Section 6.03 of the Merger
Agreement.
4
(b)
Expenses . Except as otherwise expressly provided in this
Agreement, all costs and expenses incurred in connection with the
transactions contemplated by this Agreement shall be paid by the
party incurring such costs and expenses.
(c)
Additional Shares . Until any termination of this Agreement
in accordance with its terms, Stockholder shall promptly notify
CytRx of the number of shares of Company common stock, if any, as
to which Stockholder acquires record or beneficial ownership after
the date hereof. Any shares of Company common stock as to which
Stockholder acquires record or beneficial ownership after the date
hereof and prior to termination of this Agreement shall be
“Shares” for purposes of this Agreement. Without
limiting the foregoing, in the event of any stock split, stock
dividend or other change in the capital structure of the Company
affecting the Company common stock, the number of shares
constituting “Shares” shall be adjusted appropriately
and this Agreement and the obligations hereunder shall attach to
any additional shares of Company common stock or other voting
securities of the Company issued to Stockholder in connection
therewith.
(d)
Definition of “Beneficial Ownership ”. For
purposes of this Agreement, “beneficial ownership” with
respect to (or to “own beneficially”) any securities
shall mean having “beneficial ownership” of such
securities (as determined pursuant to Rule 13d-3 under the
Exchange Act), including pursuant to any agreement, arrangement or
understanding, whether or not in writing.
(e)
Further Assurances . From time to time, at the request of
CytRx and without further consideration, Stockholder shall execute
and deliver such additional documents and take all such further
action as may be reasonably required to consummate and make
effective, in the most expeditious manner practicable, the
transactions contemplated by this Agreement.
(f)
Entire Agreement; No Third Party Beneficiaries . This
Agreement constitutes the entire agreement, and supersedes all
prior agreements and understandings, both written and oral, among
the parties, or any of them, with respect to the subject matter
hereof. This Agreement is not intended to and shall not confer upon
any Person other than the parties hereto any rights
hereunder.
(g)
Assignment; Binding Effect . Neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned
by any of the parties hereto without the prior written consent of
the other parties, except that (i) Merger Subsidiary may
assign its rights and interests hereunder to CytRx or to any wholly
owned subsidiary of CytRx if such assignment would not cause a
delay in the consummation of any of the transactions contemplated
by the Merger Agreement and (ii) the rights, interests and
obligations of Stockholder hereunder shall be binding upon
Stockholder’s heirs, trustees, executors and other
representatives in the event of Stockholder’s death or
incapacity. Subject to the preceding sentence, this Agreement shall
be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns. Any
purported assignment not permitted under this Section shall be null
and void.
5
(h)
Amendments . This Agreement may not be amended or
supplemented, except by a written agreement executed by the parties
hereto.
(i)
Severability . If any term or other provision of this
Agreement is determined by a court of competent jurisdiction to be
invalid, illegal or incapable of being enforced by any rule of law
or public policy, all other terms, provisions and conditions of
this Agreement shall nevertheless remain in full force and effect.
Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible to
the fullest extent permitted by applicable law in an acceptable
manner to the end that the transactions contemplated hereby are
fulfilled to the extent possible.
(j)
Counterparts . This Agreement may be executed in two or more
separate counterparts, each of which shall be deemed to be an
original but all of which taken together shall constitute one and
the same agreement. This Agreement shall become effective when each
party hereto shall have received counterparts hereof signed by the
other parties hereto.
(k)
Descriptive Headings . Headings of Sections and subsections
of this Agreement are for convenience of the parties only, and
shall be given no substantive or interpretive effect
whatsoever.
(l)
Notices . All notices, requests and other communications to
any party hereunder shall be in writing (including facsimile
transmission) and shall be given,
If to
CytRx or Merger Subsidiary, to:
CytRx
Corporation
11726 San Vicente Boulevard, Suite 650
Los Angeles, California 90049
Attention: Steven A. Kriegsman
Facsimile: (310) 826-6139
with a copy
(which shall not constitute notice) to:
TroyGould
PC
1801 Century Park East, 16 th Floor
Los Angeles, California 90067
Attention: Sanford J. Hillsberg, Esq. and Dale E. Short, Esq.
Facsimile: (310) 201-4746
If to
Stockholder, to:
c/o Innovive
Pharmaceuticals, Inc.
555 Madison Avenue, 25th Floor
New York, New York 10022
Facsimile: (212) 716-1811
6
with a
copy (which shall not constitute notice) to:
or such
other address or facsimile number as such party may hereafter
specify for the purpose by notice to the other parties hereto. All
such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if
received prior to 5 P.M. in the place of receipt and such day is a
business day in the place of receipt. Otherwise, any such notice,
request or communication shall be deemed not to have been received
until the next succeeding business day in the place of
receipt.
(m)
Governing Law; Enforcement; Jurisdiction . This Agreement
shall be governed by, and construed in accordance with, the laws of
the State of Delaware, applicable to contracts executed in and to
be performed entirely within that State. All actions and
proceedings arising out of or relating to this Agreement shall be
heard and determined in any federal or state court sitting in the
State of Delaware, and the parties hereto hereby irrevocably submit
to the exclusive jurisdiction of such courts in any such action or
proceeding and irrevocably waive the defense of an inconvenient
forum to the maintenance of any such action or proceeding. The
parties hereto agree that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner
provided by applicable law.
(n)
Specific Performance; Injunctive Relief . The parties agree
that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached. It is accordingly
agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in any
federal or state court sitting in the State of Delaware, this being
in addition to any other remedy to which they are entitled at law
or in equity.
(o)
Definitions . Capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Merger
Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
7
IN WITNESS WHEREOF, the parties
hereto have duly executed and delivered this Agreement as of the
date and year first written above.
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CYTRX CORPORATION
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By: |
/s/ Steven A. Kriegsman |
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Name: |
Steven A. Kriegsman |
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Title: |
President and Chief Executive Officer |
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CYTRX MERGER SUBSIDIARY, INC.
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By: |
/s/ Steven A. Kriegsman |
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Name: |
Steven A. Kriegsman |
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Title: |
President and Chief Executive Officer |
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/s/ Neil Herskowitz |
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Name: Neil Herskowitz |
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THE
UNDERSIGNED, SPOUSE OF THE SHAREHOLDER, HEREBY EXPRESSLY APPROVES
AND AGREES TO BE BOUND BY THE PROVISIONS OF THIS AGREEMENT, AND
HEREBY AGREES NOT TO DEVISE OR BEQUEATH WHATEVER COMMUNITY PROPERTY
INTEREST OR QUASI-COMMUNITY PROPERTY INTEREST THE UNDERSIGNED MAY
HAVE IN THE SHARES IN CONTRAVENTION OF THE TERMS OF THIS
AGREEMENT.
(spouse of
)
8
ANNEX A
IRREVOCABLE PROXY
The undersigned Stockholder of
Innovive Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), hereby irrevocably appoints and
constitutes the members of the Board of Directors of CytRx
Corporation, a Delaware corporation (“ CytRx ”),
and each of them (the “ Proxyholders ”), the
proxies of the undersigned, with full power of substitution and
resubstitution, to the full extent of the undersigned’s
rights with respect to the shares of common stock of the Company
beneficially owned by the undersigned as of the date here, together
with any other shares of common stock of the Company acquired by
Stockholder after the date hereof and prior to the date this proxy
terminates (collectively, the “ Shares ”), to
vote the Shares for the following limited, and for no other,
purposes:
1. In favor of adoption of the
Agreement and Plan of Merger, dated as of June 6, 2008, by and
among CytRx, CytRx Merger Subsidiary, Inc., a Delaware corporation
and wholly owned subsidiary of CytRx (“ Merger
Subsidiary ”), and the Company, as the same may be
amended from time to time, and approval of the transactions
contemplated by the Merger Agreement; and
2. Against (A) any action
or agreement (including, without limitation, any amendment of any
agreement) that would result in a breach of any representation,
warranty, covenant, agreement or other obligation of the Company
under the Merger Agreement, (B) any Acquisition Proposal (as
such term is defined in the Merger Agreement) and (C) any
agreement (including, without limitation, any amendment of any
agreement), amendment of the Company’s charter documents or
other action that is intended or could reasonably be expected to
prevent, impede, interfere with, delay, postpone or discourage the
consummation of the Merger.
The Proxyholders may not exercise
this proxy on any other matter. The undersigned Stockholder may
vote the Shares on all such other matters.
The proxies named above are empowered
at any time prior to termination of this proxy to exercise all
voting rights (including the power to execute and deliver written
consents with respect to the Shares) of the undersigned at every
annual, special or adjourned meeting of Company shareholders, and
in every written consent in lieu of such meeting, or
otherwise.
The proxy granted by the Stockholder
to the Proxyholders is hereby granted as of the date hereof in
connection with the obligations of the Stockholder set forth in the
Support Agreement, dated as of June 6, 2008, among CytRx,
Merger Subsidiary and the Stockholder (the “ Support
Agreement ”), and is irrevocable and coupled with an
interest in such obligations and in the interests in the Company to
be purchased and sold pursuant to the Merger Agreement. This proxy
will automatically terminate upon the termination of the Support
Agreement in accordance with its terms.
A-1
Upon
the execution hereof, all prior proxies given by the undersigned
with respect to the Shares, and any and all other shares or
securities issued or issuable in respect thereof on or after the
date hereof, are hereby revoked and no subsequent proxies will be
given until such time as this proxy shall be terminated in
accordance with its terms.
Any
obligation of the undersigned hereunder shall be binding upon the
successors and assigns of the undersigned. The undersigned hereby
authorizes the Proxyholders to file this proxy and any substitution
or revocation of substitution with the Secretary of the Company and
with any Inspector of Elections at any meeting of Stockholders of
the Company.
This
proxy is irrevocable and shall survive the incapacity or death of
the undersigned.
Dated:
June 6, 2008
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/s/ Neil Herskowitz |
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Neil Herskowitz |
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THE
UNDERSIGNED, SPOUSE OF THE SHAREHOLDER, HEREBY EXPRESSLY APPROVES
AND AGREES TO BE BOUND BY THE PROVISIONS OF THIS PROXY, AND HEREBY
AGREES NOT TO DEVISE OR BEQUEATH WHATEVER COMMUNITY PROPERTY
INTEREST OR QUASI-COMMUNITY PROPERTY INTEREST THE UNDERSIGNED MAY
HAVE IN THE SHARES IN CONTRAVENTION OF THE TERMS OF THIS
PROXY.
(spouse of
)
A-2
ANNEX B
OWNERSHIP OF SHARES
The
63,043 shares beneficially owned by Mr. Herskowitz include
(1) 52,127 shares of common stock owned by a limited liability
company of which Mr. Herskowitz is the manager and an equity
owner, (2) 916 shares issuable upon the exercise of warrants
to purchase common stock, all of which are owned by the limited
liability company and (3) 10,000 shares issuable upon the
exercise of options to purchase common stock.
B - 1
SUPPORT AGREEMENT
THIS SUPPORT AGREEMENT (this “
Agreement ”) is made and entered into as of
June 6, 2008, by and among CytRx Corporation, a Delaware
corporation (“ CytRx ”), CytRx Merger
Subsidiary, Inc., a Delaware corporation and wholly owned
subsidiary of CytRx (“ Merger Subsidiary ”), and
Steven Kelly (“ Stockholder ”).
WHEREAS, concurrently with the
execution of this Agreement, CytRx, Merger Subsidiary and Innovive
Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), are entering into an Agreement and Plan of
Merger (as it may be amended, the “ Merger Agreement
”), providing for the merger of Merger Subsidiary with and
into the Company (the “ Merger ”), pursuant to
which the Company will become a wholly owned subsidiary of
CytRx;
WHEREAS, as of the date hereof,
Stockholder is the record and beneficial owner of 314,301 shares of
common stock, par value $0.001 per share, of the Company (such
shares, together with any other shares of Company common stock
acquired by Stockholder after the date hereof, being collectively
referred to herein as the “ Shares ”); and
WHEREAS, as a condition to their
willingness to enter into the Merger Agreement, CytRx and Merger
Subsidiary have required that Stockholder enter into this Agreement
and, in order to induce CytRx and Merger Subsidiary to enter into
the Merger Agreement, Stockholder is willing to enter into this
Agreement.
NOW, THEREFORE, in consideration of
the foregoing and the mutual covenants and agreements contained
herein, the parties hereto, intending to be legally bound hereby,
agree as follows:
11. Agreements of
Stockholder .
(a)
Voting; Refrain From Certain Proxy Solicitations . From the
date hereof until any termination of this Agreement in accordance
with its terms, at any meeting of the shareholders of the Company
however called (or any action by written consent in lieu of a
meeting) and any adjournment thereof, Stockholder shall vote the
Shares (or cause them to be voted) or (as appropriate) execute
written consents in respect thereof, (i) in favor of the
adoption of the Merger Agreement and the approval of the
transactions contemplated thereby, (ii) against any action or
agreement (including, without limitation, any amendment of any
agreement) that would result in a breach of any representation,
warranty, covenant, agreement or other obligation of the Company
under the Merger Agreement, (iii) against any Acquisition
Proposal and (iv) against any agreement (including, without
limitation, any amendment of any agreement), amendment of the
Company’s charter documents or other action that is intended
or could reasonably be expected to prevent, impede, interfere with,
delay, postpone or discourage the consummation of the Merger. Any
such vote shall be cast (or consent shall be given) by Stockholder
in accordance with such procedures relating thereto so as to ensure
that it is duly counted, including for purposes of determining that
a quorum is present and for purposes of recording the results of
such vote (or consent). Stockholder further covenants and agrees
that he shall not solicit proxies or participate in a solicitation
with respect to an Acquisition Proposal.
(b)
Irrevocable Proxy . Concurrently with the execution of this
Agreement, Stockholder agrees to deliver to CytRx a proxy in the
form attached hereto as Annex A (the “ Proxy
”), which shall be irrevocable to the extent provided
therein.
(c)
Restriction on Transfer; Other Restrictions . From the date
hereof until any termination of this Agreement in accordance with
its terms, Stockholder shall not directly or indirectly
(i) sell, transfer (including by operation of law), give,
pledge, encumber, assign or otherwise dispose of, or enter into any
contract, option or other arrangement or understanding with respect
to the sale, transfer, gift, pledge, encumbrance, assignment or
other disposition of, any of the Shares (or any right, title or
interest thereto or therein), (ii) deposit any of the Shares
into a voting trust or grant any proxies or enter into a voting
agreement, power of attorney or voting trust with respect to any of
the Shares, (iii) take any action that would make any
representation or warranty of Stockholder set forth in this
Agreement untrue or incorrect in any material respect or have the
effect of preventing, disabling or delaying Stockholder from
performing any of his obligations under this Agreement or
(iv) agree (whether or not in writing) to take any of the
actions referred to in the foregoing clauses of this
Section 1(c). Notwithstanding the foregoing, Stockholder
(a) may transfer any of the Shares, or execute an assignment
with respect to the Shares, if such transfer or assignment is made
to a family member or a controlled affiliate of the Stockholder or
is made to a trust or similar vehicle in connection with estate
planning purposes; provided that, in each case, the transferee,
trustee, proxy holder, or beneficiary of the Shares resulting from
such transfer or assignment executes a joinder agreement,
reasonably acceptable to CytRx and Merger Subsidiary, whereby such
transferee, proxy holder or beneficiary would become a party to
this Agreement and become subject to all of the rights and
obligations hereunder, or (b) with the prior written consent
of CytRx and Merger Subsidairy (which consent may be withheld in
their sole discretion), may transfer any of the Shares, or execute
an assignment with respect to the Shares, other than as
contemplated in clause (a).
12. Representation and
Warranties of CytRx and Merger Subsidiary . CytRx and Merger
Subsidiary jointly and severally represent and warrant to
Stockholder as follows:
(a)
Due Authorization . This Agreement has been authorized by
all necessary corporate action on the part of each of CytRx and
Merger Subsidiary and has been duly executed by a duly authorized
officer of each of CytRx and Merger Subsidiary.
(b)
Validity; No Conflict . This Agreement constitutes the
legal, valid and binding obligation of each of CytRx and Merger
Subsidiary, enforceable against each of them in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting or relating
to creditors’ rights generally and by general principles of
equity. Neither the execution of this Agreement by CytRx and Merger
Subsidiary nor the consummation of the transactions contemplated
hereby will result in a breach or violation of the terms of any
agreement by which CytRx or any CytRx subsidiary is bound or of any
decree, judgment, order, law or regulation now in effect of any
court or other governmental body applicable to CytRx or any CytRx
subsidiary.
13. Representations and
Warranties of Stockholder . Stockholder hereby represents and
warrants to CytRx and Merger Subsidiary as follows:
(a)
Validity; Consents and Approvals; No Conflict . This
Agreement constitutes the legal, valid and binding obligation of
Stockholder, enforceable against Stockholder in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting or relating
to creditors’ rights generally and by general principles of
equity. No consents or approvals of, or filings, declarations or
registrations with, any governmental agency are necessary for the
performance by Stockholder of its obligations under this Agreement,
other than such other consents, approvals, filings, declarations or
registrations that, if not obtained, made or given, would not,
individually or in the aggregate, reasonably be expected to prevent
or materially delay the performance by Stockholder of any of his
obligations under this Agreement. Neither the execution and
delivery of this Agreement by Stockholder, nor the performance by
Stockholder of his obligations hereunder, will result in a breach
or violation of the terms of any agreement by which Stockholder is
bound or of any decree, judgment, order, law or regulation now in
effect of any court or other governmental body applicable to
Stockholder.
(b)
Ownership of Shares . Except as specifically described on
Annex B , Stockholder (i) is the record and beneficial
owner of all of the Shares and (ii) owns all of the Shares
free and clear of any proxy, voting restriction, adverse claim or
other Lien (other than proxies and restrictions in favor of CytRx
and Merger Subsidiary pursuant to this Agreement and except for
such transfer restrictions of general applicability as may be
provided under the Securities Act and the “blue sky”
laws of the various states of the United States). Without limiting
the foregoing, except for certain proxies and restrictions provided
for in clause (ii) above, Stockholder has sole voting power and
sole power of disposition with respect to all of the Shares, with
no restrictions on Stockholder’s rights of voting or
disposition pertaining thereto and no Person other than Stockholder
has any right to direct or approve the voting or disposition of any
of the Shares. As of the date hereof, Stockholder does not own,
beneficially or of record, any securities of the Company other than
314,301 shares of common stock which constitute the
“Shares”.
14. Termination . This
Agreement and the Proxy shall terminate on the first to occur of
(a) the termination of the Merger Agreement in accordance with
its terms and (b) the Effective Time. Notwithstanding the
foregoing, (i) nothing herein shall relieve any party from
liability for breach of this Agreement and (ii) the provisions
of this Section 4 and Section 5 of this Agreement shall
survive any termination of this Agreement.
15. Miscellaneous
.
(a)
Action in Stockholder Capacity Only . The parties
acknowledge that this Agreement is entered into by Stockholder in
his capacity as owner of the Shares and that nothing in this
Agreement shall in any way restrict or limit any director or
officer of the Company from taking any action in his capacity as a
director or officer of the Company that is necessary for him to
comply with his fiduciary duties as a director or officer of the
Company, including, without limitation, participating in his
capacity as a director of the Company in any discussions or
negotiations in accordance with Section 6.03 of the Merger
Agreement.
(b)
Expenses . Except as otherwise expressly provided in this
Agreement, all costs and expenses incurred in connection with the
transactions contemplated by this Agreement shall be paid by the
party incurring such costs and expenses.
(c)
Additional Shares . Until any termination of this Agreement
in accordance with its terms, Stockholder shall promptly notify
CytRx of the number of shares of Company common stock, if any, as
to which Stockholder acquires record or beneficial ownership after
the date hereof. Any shares of Company common stock as to which
Stockholder acquires record or beneficial ownership after the date
hereof and prior to termination of this Agreement shall be
“Shares” for purposes of this Agreement. Without
limiting the foregoing, in the event of any stock split, stock
dividend or other change in the capital structure of the Company
affecting the Company common stock, the number of shares
constituting “Shares” shall be adjusted appropriately
and this Agreement and the obligations hereunder shall attach to
any additional shares of Company common stock or other voting
securities of the Company issued to Stockholder in connection
therewith.
(d)
Definition of “Beneficial Ownership ”. For
purposes of this Agreement, “beneficial ownership” with
respect to (or to “own beneficially”) any securities
shall mean having “beneficial ownership” of such
securities (as determined pursuant to Rule 13d-3 under the
Exchange Act), including pursuant to any agreement, arrangement or
understanding, whether or not in writing.
(e)
Further Assurances . From time to time, at the request of
CytRx and without further consideration, Stockholder shall execute
and deliver such additional documents and take all such further
action as may be reasonably required to consummate and make
effective, in the most expeditious manner practicable, the
transactions contemplated by this Agreement.
(f)
Entire Agreement; No Third Party Beneficiaries . This
Agreement constitutes the entire agreement, and supersedes all
prior agreements and understandings, both written and oral, among
the parties, or any of them, with respect to the subject matter
hereof. This Agreement is not intended to and shall not confer upon
any Person other than the parties hereto any rights
hereunder.
(g)
Assignment; Binding Effect . Neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned
by any of the parties hereto without the prior written consent of
the other parties, except that (i) Merger Subsidiary may
assign its rights and interests hereunder to CytRx or to any wholly
owned subsidiary of CytRx if such assignment would not cause a
delay in the consummation of any of the transactions contemplated
by the Merger Agreement and (ii) the rights, interests and
obligations of Stockholder hereunder shall be binding upon
Stockholder’s heirs, trustees, executors and other
representatives in the event of Stockholder’s death or
incapacity. Subject to the preceding sentence, this Agreement shall
be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns. Any
purported assignment not permitted under this Section shall be null
and void.
(h)
Amendments . This Agreement may not be amended or
supplemented, except by a written agreement executed by the parties
hereto.
(i)
Severability . If any term or other provision of this
Agreement is determined by a court of competent jurisdiction to be
invalid, illegal or incapable of being enforced by any rule of law
or public policy, all other terms, provisions and conditions of
this Agreement shall nevertheless remain in full force and effect.
Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible to
the fullest extent permitted by applicable law in an acceptable
manner to the end that the transactions contemplated hereby are
fulfilled to the extent possible.
(j)
Counterparts . This Agreement may be executed in two or more
separate counterparts, each of which shall be deemed to be an
original but all of which taken together shall constitute one and
the same agreement. This Agreement shall become effective when each
party hereto shall have received counterparts hereof signed by the
other parties hereto.
(k)
Descriptive Headings . Headings of Sections and subsections
of this Agreement are for convenience of the parties only, and
shall be given no substantive or interpretive effect
whatsoever.
(l)
Notices . All notices, requests and other communications to
any party hereunder shall be in writing (including facsimile
transmission) and shall be given,
If to
CytRx or Merger Subsidiary, to:
CytRx
Corporation
11726 San Vicente Boulevard, Suite 650
Los Angeles, California 90049
Attention: Steven A. Kriegsman
Facsimile: (310) 826-6139
with a copy
(which shall not constitute notice) to:
TroyGould
PC
1801 Century Park East, 16 th Floor
Los Angeles, California 90067
Attention: Sanford J. Hillsberg, Esq. and Dale E. Short, Esq.
Facsimile: (310) 201-4746
If to
Stockholder, to:
c/o Innovive
Pharmaceuticals, Inc.
555 Madison Avenue, 25th Floor
New York, New York 10022
Facsimile: (212) 716-1811
with a
copy (which shall not constitute notice) to:
or such
other address or facsimile number as such party may hereafter
specify for the purpose by notice to the other parties hereto. All
such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if
received prior to 5 P.M. in the place of receipt and such day is a
business day in the place of receipt. Otherwise, any such notice,
request or communication shall be deemed not to have been received
until the next succeeding business day in the place of
receipt.
(m)
Governing Law; Enforcement; Jurisdiction . This Agreement
shall be governed by, and construed in accordance with, the laws of
the State of Delaware, applicable to contracts executed in and to
be performed entirely within that State. All actions and
proceedings arising out of or relating to this Agreement shall be
heard and determined in any federal or state court sitting in the
State of Delaware, and the parties hereto hereby irrevocably submit
to the exclusive jurisdiction of such courts in any such action or
proceeding and irrevocably waive the defense of an inconvenient
forum to the maintenance of any such action or proceeding. The
parties hereto agree that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner
provided by applicable law.
(n)
Specific Performance; Injunctive Relief . The parties agree
that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached. It is accordingly
agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in any
federal or state court sitting in the State of Delaware, this being
in addition to any other remedy to which they are entitled at law
or in equity.
(o)
Definitions . Capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Merger
Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the parties
hereto have duly executed and delivered this Agreement as of the
date and year first written above.
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CYTRX CORPORATION
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By: |
/s/ Steven A. Kriegsman |
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Name: |
Steven A. Kriegsman |
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Title: |
President and Chief Executive Officer |
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CYTRX MERGER SUBSIDIARY, INC.
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By: |
/s/ Steven A. Kriegsman |
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Name: |
Steven A. Kriegsman |
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Title: |
President and Chief Executive Officer |
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/s/ Steven Kelly |
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Name: Steven Kelly |
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THE
UNDERSIGNED, SPOUSE OF THE SHAREHOLDER, HEREBY EXPRESSLY APPROVES
AND AGREES TO BE BOUND BY THE PROVISIONS OF THIS AGREEMENT, AND
HEREBY AGREES NOT TO DEVISE OR BEQUEATH WHATEVER COMMUNITY PROPERTY
INTEREST OR QUASI-COMMUNITY PROPERTY INTEREST THE UNDERSIGNED MAY
HAVE IN THE SHARES IN CONTRAVENTION OF THE TERMS OF THIS
AGREEMENT.
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Jennifer Kelly |
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(spouse of Steven Kelly) |
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ANNEX A
IRREVOCABLE PROXY
The undersigned Stockholder of
Innovive Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), hereby irrevocably appoints and
constitutes the members of the Board of Directors of CytRx
Corporation, a Delaware corporation (“ CytRx ”),
and each of them (the “ Proxyholders ”), the
proxies of the undersigned, with full power of substitution and
resubstitution, to the full extent of the undersigned’s
rights with respect to the shares of common stock of the Company
beneficially owned by the undersigned as of the date here, together
with any other shares of common stock of the Company acquired by
Stockholder after the date hereof and prior to the date this proxy
terminates (collectively, the “ Shares ”), to
vote the Shares for the following limited, and for no other,
purposes:
1. In favor of adoption of the
Agreement and Plan of Merger, dated as of June 6, 2008, by and
among CytRx, CytRx Merger Subsidiary, Inc., a Delaware corporation
and wholly owned subsidiary of CytRx (“ Merger
Subsidiary ”), and the Company, as the same may be
amended from time to time, and approval of the transactions
contemplated by the Merger Agreement; and
2. Against (A) any action
or agreement (including, without limitation, any amendment of any
agreement) that would result in a breach of any representation,
warranty, covenant, agreement or other obligation of the Company
under the Merger Agreement, (B) any Acquisition Proposal (as
such term is defined in the Merger Agreement) and (C) any
agreement (including, without limitation, any amendment of any
agreement), amendment of the Company’s charter documents or
other action that is intended or could reasonably be expected to
prevent, impede, interfere with, delay, postpone or discourage the
consummation of the Merger.
The Proxyholders may not exercise
this proxy on any other matter. The undersigned Stockholder may
vote the Shares on all such other matters.
The proxies named above are empowered
at any time prior to termination of this proxy to exercise all
voting rights (including the power to execute and deliver written
consents with respect to the Shares) of the undersigned at every
annual, special or adjourned meeting of Company shareholders, and
in every written consent in lieu of such meeting, or
otherwise.
The proxy granted by the Stockholder
to the Proxyholders is hereby granted as of the date hereof in
connection with the obligations of the Stockholder set forth in the
Support Agreement, dated as of June 6, 2008, among CytRx,
Merger Subsidiary and the Stockholder (the “ Support
Agreement ”), and is irrevocable and coupled with an
interest in such obligations and in the interests in the Company to
be purchased and sold pursuant to the Merger Agreement. This proxy
will automatically terminate upon the termination of the Support
Agreement in accordance with its terms.
A-1
Upon the execution hereof, all prior
proxies given by the undersigned with respect to the Shares, and
any and all other shares or securities issued or issuable in
respect thereof on or after the date hereof, are hereby revoked and
no subsequent proxies will be given until such time as this proxy
shall be terminated in accordance with its terms.
Any obligation of the undersigned
hereunder shall be binding upon the successors and assigns of the
undersigned. The undersigned hereby authorizes the Proxyholders to
file this proxy and any substitution or revocation of substitution
with the Secretary of the Company and with any Inspector of
Elections at any meeting of Stockholders of the Company.
This proxy is irrevocable and shall
survive the incapacity or death of the undersigned.
Dated:
June 6, 2008
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/s/ Steven Kelly |
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Steven Kelly |
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THE
UNDERSIGNED, SPOUSE OF THE SHAREHOLDER, HEREBY EXPRESSLY APPROVES
AND AGREES TO BE BOUND BY THE PROVISIONS OF THIS PROXY, AND HEREBY
AGREES NOT TO DEVISE OR BEQUEATH WHATEVER COMMUNITY PROPERTY
INTEREST OR QUASI-COMMUNITY PROPERTY INTEREST THE UNDERSIGNED MAY
HAVE IN THE SHARES IN CONTRAVENTION OF THE TERMS OF THIS
PROXY.
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Jennifer Kelly |
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(spouse of Steven Kelly) |
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A-2
ANNEX B
OWNERSHIP OF SHARES
The
314,301 shares beneficially owned by Mr. Kelly include 156,301
shares issuable upon the exercise of options to purchase common
stock.
B - 1
SUPPORT AGREEMENT
THIS SUPPORT AGREEMENT (this “
Agreement ”) is made and entered into as of
June 6, 2008, by and among CytRx Corporation, a Delaware
corporation (“ CytRx ”), CytRx Merger
Subsidiary, Inc., a Delaware corporation and wholly owned
subsidiary of CytRx (“ Merger Subsidiary ”), and
J. Jay Lobell (“ Stockholder ”).
WHEREAS, concurrently with the
execution of this Agreement, CytRx, Merger Subsidiary and Innovive
Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), are entering into an Agreement and Plan of
Merger (as it may be amended, the “ Merger Agreement
”), providing for the merger of Merger Subsidiary with and
into the Company (the “ Merger ”), pursuant to
which the Company will become a wholly owned subsidiary of
CytRx;
WHEREAS, as of the date hereof,
Stockholder is the record and beneficial owner of 173,200 shares of
common stock, par value $0.001 per share, of the Company (such
shares, together with any other shares of Company common stock
acquired by Stockholder after the date hereof, being collectively
referred to herein as the “ Shares ”); and
WHEREAS, as a condition to their
willingness to enter into the Merger Agreement, CytRx and Merger
Subsidiary have required that Stockholder enter into this Agreement
and, in order to induce CytRx and Merger Subsidiary to enter into
the Merger Agreement, Stockholder is willing to enter into this
Agreement.
NOW, THEREFORE, in consideration of
the foregoing and the mutual covenants and agreements contained
herein, the parties hereto, intending to be legally bound hereby,
agree as follows:
16. Agreements of
Stockholder .
(a)
Voting; Refrain From Certain Proxy Solicitations . From the
date hereof until any termination of this Agreement in accordance
with its terms, at any meeting of the shareholders of the Company
however called (or any action by written consent in lieu of a
meeting) and any adjournment thereof, Stockholder shall vote the
Shares (or cause them to be voted) or (as appropriate) execute
written consents in respect thereof, (i) in favor of the
adoption of the Merger Agreement and the approval of the
transactions contemplated thereby, (ii) against any action or
agr
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