SUBSCRIPTION
AGREEMENT
This subscription agreement
(this “Subscription Agreement”) is made as of April 26, 2017, by and between the Investor identified
on the signature pages hereto (“Investor”), and MacroGenics, Inc., a Delaware corporation (the “Company”),
and the parties hereto agree as follows:
1.
Subscription
(a)
The Company has authorized the sale and issuance to the Investor of up to an aggregate of 1,100,000 shares of common stock (each,
a “Share” and collectively, the “Shares”), par value $0.01 per share, for
a purchase price of $21.50 per Share (the “Purchase Price”).
(b)
The offering and sale of the Shares (the “Offering”) is being made pursuant to (i) an effective
Registration Statement on Form S-3 (File No. 333-214385), as such Registration Statement may be amended and supplemented from
time to time under the Securities Act (as defined in Section 2(b) below) (the “Registration
Statement”), filed by the Company with the Securities and Exchange Commission (the
“Commission”), including the prospectus contained therein dated November 2, 2016 (the
“Base Prospectus”); (ii) if applicable, certain “free writing prospectuses” (as that
term is defined in Rule 405 under the Securities Act (as defined below)) that have been or will be filed, if required, with
the Commission and delivered to the Investor on or before the date hereof, containing certain supplemental information
regarding the terms of the Offering and the Company; and (iii) a Prospectus Supplement (the
“Prospectus Supplement” and together with the Base Prospectus, the
“Prospectus”) containing certain supplemental information regarding the Shares and the terms of the
Offering and information that may be material to the Company and its securities that was delivered to the Investor and will
be filed with the Commission. The Prospectus, together with the documents incorporated by reference therein, are collectively
referred to herein as the “Disclosure Package.”
(c)
At the Closing (as defined in Section 2(a) below), the Company and the Investor agree that the Investor will purchase from the
Company and the Company will issue and sell to the Investor, upon the terms and conditions set forth herein, the number of Shares
set forth on the signature pages hereto for the aggregate Purchase Price set forth on the signature pages hereto. The Investor
acknowledges that the Offering is not being underwritten and that there is no minimum offering amount.
(d)
This Subscription Agreement will involve no obligation or commitment of any kind until this Subscription Agreement is accepted
and countersigned by or on behalf of the Company.
2.
Closing and Delivery of the Shares and Funds.
(a)
The completion of the purchase and sale of the Shares (the “Closing”) shall take place at
the offices of Covington & Burling LLP, 620 Eighth Avenue, New York, NY 10018 or such other location as the parties
shall mutually agree at 12:00 p.m. (ET) on May 2, 2017, or at such other time and location as the Company and the Investor
shall agree (the “Closing Date”). At the Closing, (a) the Company shall cause the
Company’s transfer agent to deliver to the Investor or the Investor’s brokerage firm, via DWAC in accordance with the
instructions provided by the Investor on the signature pages hereto, the number of Shares set forth on the signature pages
hereto, registered in the name of the Investor or the Investor’s brokerage firm, as applicable, and (b) the aggregate
Purchase Price for the Shares as set forth on the signature pages hereto will be delivered by or on behalf of the Investor to
the Company.
(b)
The Company’s obligation to issue and sell the Shares to the Investor and the Investor’s obligation to purchase the
Shares from the Company shall be subject to: (x) no stop order suspending the effectiveness of the Registration Statement or any
part thereof, or preventing or suspending the use of the Base Prospectus or the Prospectus or any part thereof, shall have been
issued and no proceedings for that purpose or pursuant to Section 8A under the Securities Act of 1933, as amended (the “Securities
Act”), shall have been initiated or threatened by the Commission and (y) no objection shall have been raised by
The NASDAQ Stock Market, LLC with respect to the consummation of the transactions contemplated by the Subscription Agreement in
the absence of approval by the Company’s stockholders of such transactions.
3.
Representations, Warranties and Covenants of the Company. The Company acknowledges, represents and warrants to, and
agrees with, the Investor that:
(a)
The Company has the requisite right, power and authority to enter into this Subscription Agreement, to authorize, issue and sell
the Shares as contemplated by this Subscription Agreement and to perform and to discharge its obligations hereunder; and this
Subscription Agreement has been duly authorized, executed and delivered by the Company.
(b)
The Shares to be issued and sold by the Company to the Investor under this Subscription Agreement have been duly authorized and
the Shares, when issued and delivered against payment therefor as provided in this Subscription Agreement, will be validly issued,
fully paid and non-assessable and free of any preemptive or similar rights. The Registration Statement is effective under the
Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing
the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the
knowledge of the Company, are threatened by the Commission. The Company, if required by the rules and regulations of the Commission,
proposes to file the Prospectus with the Commission pursuant to Rule 424(b) in relation to the sale of the Shares.
(c)
The execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated hereby will not
(i) result in a breach or violation of any of the terms and provisions of, or constitute a default under, any law, rule or regulation
to which the Company or any subsidiary is subject, or by which any property or asset of the Company or any subsidiary is bound
or affected, (ii) conflict with, result in any violation or breach of, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, or give to others any right of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, lease, credit facility, debt, note, bond, mortgage, indenture
or other instrument or obligation or other understanding to which the Company or any subsidiary is a party of by which any property
or asset of the Company or any subsidiary is bound or affected, or (iii) result in a breach or violation of any of the terms and
provisions of, or constitute a default under, the Company’s certificate of incorporation, except in the case of clauses
(i) and (ii) such breaches, violations, defaults, or conflicts which are not, individually or in the aggregate, reasonably likely
to result in a material adverse effect upon the business, properties, operations, condition (financial or otherwise) or results
of operations of the Company and its subsidiaries, taken as a whole, or in its ability to perform its obligations under the Subscription
Agreement.
(d)
The Company shall, by 8:00 a.m. on the trading day immediately following the date of pricing of the Offering, issue a press release
disclosing the material terms of the Offering, and issue a Current Report on Form 8-K including the form of subscription agreement
and an opinion of legal counsel as to the validity of the Shares as exhibits thereto. The Company agrees that neither the press
release nor the Current Report on Form 8-K will contain the identity of the Investor, unless agreed to by the Investor or otherwise
required by law or any regulatory agency that regulates the Company.
4.
Representations, Warranties and Covenants of the Investor. The Investor acknowledges, represents and warrants to, and
agrees with, the Company that:
(a)
It has had the opportunity to review the Subscription Agreement (including all exhibits and schedules thereto) and the Company’s
filings with the Commission and has been afforded the opportunity to ask such questions as it has deemed necessary of, and to
receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares.
(b)
(i) If the Investor is outside the United States, it will comply with all applicable laws and regulations in each foreign jurisdiction
in which it purchases, offers, sells or delivers Shares or has in its possession or distributes any offering material, in all
cases at its own expense and (ii) no agent of the Company has been authorized to make and no such agent has made any representation,
disclosure or use of any information in connection with the issue, placement, purchase and sale of the Shares, except as set forth
in or incorporated by reference in the Base Prospectus or the Prospectus Supplement or as otherwise contemplated by this Subscription
Agreement.
(c)
(i) The Investor has full right, power, authority and capacity to enter into this Subscription Agreement and to consummate the
transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this
Subscription Agreement.
(d)
The Shares to be purchased by the Investor hereunder will be acquired for the Investor’s own account, not as nominee or
agent, and not with a view to the resale or distribution of any part thereof in violation of the Securities Act, and the Investor
has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities
Act without prejudice, however, to the Investor’s right at all times to sell or otherwise dispose of all or any part of
such Shares in compliance with applicable federal and state securities laws. If the Investor is an affiliate of the Company (within
the meaning of Rule 144 promulgated under the Securities Act), the Investor acknowledges and understands that the Shares may not
be resold by the Investor unless such resale is registered under the Securities Act or such resale is effected pursuant to a valid
exemption from the registration requirements of the Securities Act.
(e)
Nothing in this Subscription Agreement, the Prospectus, the Disclosure Package or any other materials presented to the Investor
in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice. The Investor has consulted
such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with
its purchase of Shares.
(f)
Since the time of the initial conversation between the Company and the Investor regarding the Offering, the Investor has not directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding with the
Investor, disclosed any information regarding the Offering to any third parties (other than its legal, accounting and other advisors)
or engaged in any transactions in the securities of the Company (including, without limitations, any short sales (as defined in
Rule 200(a) of Regulation SHO) involving the Company’s securities). The Investor covenants that neither it nor any person
acting on its behalf or pursuant to any understanding with it will engage in any transactions in the securities of the Company
(including short sales) prior to the time that the transactions contemplated by this Subscription Agreement are publicly disclosed.
(g)
The Investor’s signature page sets forth all securities of the Company held or beneficially owned by such Investor as of
the date hereof. Such Investor does not hold or beneficially own any other securities of the Company, except as indicated on the
signature page hereto.
5.
Miscellaneous.
(a)
Entire Agreement; Modifications. Except as otherwise provided herein, this Subscription Agreement constitutes the entire
understanding and agreement between the parties with respect to its subject matter and there are no agreements or understandings
with respect to the subject matter hereof which are not contained in this Subscription Agreement. This Subscription Agreement
may be modified only in writing signed by the signed by the Company and the Investor.
(b)
Survival. All representations, warranties, and agreements of the Company and the Investor herein shall survive delivery
of, and payment for, the Shares purchased hereunder.
(c)
Counterparts. This Subscription Agreement may be executed in any number of counterparts, all of which taken together shall
constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered
to the other parties hereto, it being understood that all parties need not sign the same counterpart. Execution may be made by
delivery of a facsimile or PDF.
(d)
Severability. The provisions of this Subscription Agreement are severable and, in the event that any court or officials
of any regulatory agency of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions
contained in this Subscription Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Subscription
Agreement and this Subscription Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision,
or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the
maximum extent possible, so long as such construction does not materially adversely affect the economic rights of either party
hereto.
(e)
Notices. All notices or other communications required or permitted to be provided hereunder shall be in writing and shall
be deemed effectively given (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed e-mail or facsimile
if sent during normal business hours of the recipient, if not, then on the next business day, (iii) five days after having been
sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be
sent to the Company or the Investor, as applicable, at the address for such recipient listed on the signature pages hereto or
at such other address as such recipient has designated by two days advance written notice to the other parties hereto.
(f)
Governing Law. This Subscription Agreement shall be governed by, and construed in accordance with, the internal laws of
the State of New York without regard to the choice of law principles thereof.
(f)
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER
PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.
(g)
Headings. The headings of the various sections of this Subscription Agreement have been inserted for convenience of reference
only and will not be deemed to be part of this Subscription Agreement.
(h)
Confirmation of Sale. The Investor acknowledges and agrees that the Investor’s receipt of the Company’s counterpart
to this Subscription Agreement shall constitute written confirmation of the Company’s acceptance and agreement to sell the
applicable Shares to such Investor.
(i)
Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance
of this Subscription Agreement. The Company shall pay all transfer agent fees (including, without limitation, any fees required
for same-day processing of any instruction letter delivered by the Company and any exercise notice delivered by the Investor),
stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to the Investor.
[Signature
pages follow]
IN WITNESS WHEREOF, the parties hereto have executed this
Subscription Agreement effective as of the date first written above.
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MACROGENICS, INC. |
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By: |
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Name: |
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Title:
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Address for notice: |
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MacroGenics, Inc. |
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9704 Medical Center Drive |
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Rockville, MD 20850 |
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Attention: Chief Financial Officer |
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Email: karrelsj@macrogenics.com |
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Facsimile: (301) 251-5321 |
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With copies to:
MacroGenics, Inc.
9704 Medical Center Drive
Rockville, MD 20850
Attention: General Counsel
Email: sarana@macrogenics.com
Facsimile: (301) 251-5321
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Covington & Burling LLP |
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620 Eighth Avenue |
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New York, NY 10018 |
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Attention: Eric Blanchard |
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E-mail: eblanchard@cov.com |
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Facsimile: (646) 441-9111 |
[Signature
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INVESTOR: |
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(Print
Name of Investor) |
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By: |
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Name: |
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Title: |
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Address
for notice: |
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Email: |
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Facsimile: |
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Number of Shares: _____________________________________
Purchase Price Per Share: $_____
Aggregate Purchase Price: _____________________________________
Employer Identification or Social
Security Number: _______________________
Company Shares currently held by
Investor: ____________________________
DWAC Delivery instructions for the
Shares:
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of DTC Participant (broker-dealer at which the account or accounts to be credited with the Shares are maintained): |
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DTC Participant Number:
_________________________
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of Account at DTC Participant being credited with the Shares: |
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Account Number at DTC
Participant being credited with the Shares: ________________________________
[Signature
Page to Subscription Agreement]
