“Material Adverse Effect” means any occurrence, violation, inaccuracy, change, event, effect or circumstance that, individually or in the aggregate, (i) is or would be reasonably likely to be, materially adverse to the business, assets, results of operations or financial condition of Ignyta, or (ii) is or would be reasonably likely to prevent Ignyta from consummating the Offer, the Merger or the transactions contemplated by the Merger Agreement. The Merger Agreement specifies that with respect to clause (i), above, none of the following will be taken into account in determining whether there is, or would reasonably likely to be, a Material Adverse Effect:
(a) changes in general economic conditions or securities or financial markets in general;
(b) changes in law;
(c) general changes in the pharmaceutical industry;
(d) conditions arising out of any outbreak or escalation of hostilities or war (whether declared or not declared), act of terrorism, political conditions, weather conditions or other force majeure or similar events (or the escalation or worsening thereof);
(e) the announcement or pendency of the Offer, the Merger, the Merger Agreement and the transactions contemplated thereby (including, for the avoidance of doubt, to the extent solely resulting from the announcement or pendency of the Offer, the Merger, the Merger Agreement, or the transactions contemplated thereby, the impact on the relationships, contractual or otherwise, of Ignyta with its officers or other employees, customers, lenders, suppliers or business partners);
(f) any actions taken, or the failure to take action which Parent or Purchaser has expressly requested and which is not otherwise required by the Merger Agreement;
(g) Ignyta’s failure to meet any internal or published projections or analysts’ expectations in respect of revenues, cash burn-rate, cash flow, earnings or other financial or operating measures for any period; provided that the exception in this clause (g) will not prevent or otherwise affect a determination that any occurrence, violation, inaccuracy, change, event, effect or circumstance underlying such failure has resulted in, or contributed to, a Material Adverse Effect;
(h) any change in Ignyta’s stock price or trading volume, in and of itself; provided that the exception in this clause (h) shall not prevent or otherwise affect a determination that any occurrence, violation, inaccuracy, change, event, effect or circumstance underlying such change has resulted in, or contributed to, a Material Adverse Effect;
(i) the determination by, or the delay of a determination by, the U.S. Food and Drug Administration (the “FDA”) or any other governmental entity, or any other panel or advisory body empowered or appointed thereby, with respect to the acceptance, filing, designation, approval, clearance,non-acceptance, refusal to file, refusal to designate,non-approval, disapproval ornon- clearance of any of Ignyta’s products or product candidates;
(j) FDA approval (or other clinical or regulatory developments), market entry or threatened market entry of any product competitive with or related to any of Ignyta’s products or product candidates; or
(k) any stockholder class action or derivative litigation commenced against Ignyta since the date of the Merger Agreement and arising from allegations of breach of fiduciary duty of Ignyta’s directors relating to their approval of the Merger Agreement or from allegations of false or misleading public disclosure by Ignyta with respect to the Merger Agreement.
The Merger Agreement further provides that any event, effect, occurrence, violation, inaccuracy, change or circumstance set forth in clauses (a), (b), (c) or (d) above, will be taken into account only to the extent such
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