|
Exhibit
10.10
RESTRICTED STOCK
PURCHASE AGREEMENT
THIS RESTRICTED STOCK
PURCHASE AGREEMENT (this “ Agreement ”) is
entered into as of the 29 th day
of April, 2005, by and between Aegerion Pharmaceuticals, Inc., a
Delaware corporation (the “ Corporation ”), and
William H. Lewis (the “ Equity Participant
”).
W I T N E S S E T
H:
WHEREAS, the Corporation
desires to issue to the Equity Participant, and the Equity
Participant desires to purchase from the Corporation, shares of the
Corporation’s Common Stock, $0.001 par value per share (the
“ Common Stock ”).
NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties do hereby agree as
follows:
SECTION 1. Definitions
.
As used in this Agreement,
the following terms shall have the following respective
meanings:
“ Bridge
Financing ” shall have the meaning set forth in the Term
Sheet.
“ Cause ”
shall have the meaning set forth in the Consulting Agreement or
Employment Agreement, as applicable.
“ Code ”
shall mean the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder.
“ Commission
” shall mean the Securities and Exchange Commission or any
other Federal agency administering the Securities Act at the
applicable time.
“ Consideration
” shall have the meaning set forth in Section 2.1
.
“ Consulting
Agreement ” shall mean the Consulting Agreement proposed
to be entered into by and between the Corporation and the Equity
Participant.
“ Employment
Agreement ” shall mean the Employment Agreement proposed
to be entered into by and between the Corporation and the Equity
Participant pursuant to which the Equity Participant will be
employed as the full-time Chief Financial Officer of the
Corporation.
“ Equity Stock
” shall have the meaning set forth in Rule 3a11-1 under
the Securities Exchange Act of 1934, as amended, and any successor
statute and the rules and regulations thereunder, as shall be in
effect from time to time.
“ Executive
Commencement Date ” shall have the meaning set forth in
the Term Sheet.
“ Fair Market
Value ” shall mean the fair market value, with respect to
any Share, as determined by the Board of Directors of the
Corporation.
“ Family ”
shall mean any spouse, lineal ancestor or descendant, or sibling or
any trust for the exclusive benefit of any of the foregoing and/or
the Equity Participant.
“ Group ”
shall mean as to (a) a partnership, any or all of its general
or limited partners or any “affiliate” thereof (as
defined by Rule 405 promulgated under the Securities Act),
(b) a trust, any of the beneficiaries, settlers or grantors
now existing or hereafter arising of, or any Person under common
control with, such trust, (c) a corporation, any of its
stockholders, any subsidiary of such corporation or any corporation
which is under common control with such corporation, or any
directors, officers or employees of such corporation, and
(d) a limited liability company, any of its
members.
“ Initial Public
Offering ” shall mean the Corporation’s initial
distribution of New Securities in an underwritten Public Offering
to the general public pursuant to a registration statement filed
with and declared effective by the Commission pursuant to the
Securities Act at a price per New Security of not less than the
product of three (3) and the original purchase price per share
for the Corporation’s initial round of Series A
Preferred Stock (as adjusted for stock splits, stock dividends or
similar recapitalizations) and resulting in net proceeds to the
Corporation of not less than $40 million.
“ IRS ”
shall mean the Internal Revenue Service.
“ New Securities
” shall mean any Equity Stock, including, but not limited to,
shares of Common Stock, any security which is convertible into or
exercisable or exchangeable for Common Stock, or any right, option
or warrant to acquire any Common Stock.
“ Original Cost Per
Share ” shall have the meaning set forth in
Section 2.1 .
“ Person ”
shall mean and include a natural person, a corporation, a
partnership, a limited liability company, a trust, an
unincorporated organization, an educational institution, a
government or any department, agency or political subdivision
thereof, or any other entity.
“ Preferred
Shares ” shall mean, at the applicable time, all issued
and outstanding shares, if any, of the Corporation’s
preferred stock.
2
“ Public
Offering ” shall mean a distribution of New Securities in
a firm commitment underwritten public offering to the general
public pursuant to a registration statement filed with and declared
effective by the Commission pursuant to the Securities
Act.
“ Released
Shares ” shall mean Shares that, in accordance with
Sections 3.1 and 3.2 are no longer subject to
repurchase by the Corporation pursuant to Section 4
.
“ Securities Act
” shall mean the Securities Act of 1933, as amended, and any
successor statute and the rules and regulations of the Commission
thereunder, as shall be in effect at the applicable
time.
“ Shares ”
shall have the meaning set forth in Section 2.1
.
“ Term Sheet
” shall mean the term sheet, dated as of April 25
th
, 2005, by and between the
Corporation and the Equity Participant.
“ Transfer
” shall include any direct or indirect sale, assignment,
transfer, pledge (but not including a pledge in favor of the
Corporation), hypothecation or other disposition of any Shares or
of any legal or beneficial interest therein.
“ Unreleased
Shares ” means Shares that are not Released
Shares.
SECTION 2. Issuance of
Common Stock .
2.1 Subject to the terms and
conditions contained herein, the Corporation hereby sells to the
Equity Participant, and the Equity Participant hereby purchases
from the Corporation, 700,000 shares of Common Stock (the “
Shares ”) for a purchase price of $.001 per share (the
“ Original Cost Per Share ”) or the aggregate
purchase price of $700.00 (the “Consideration”).
Simultaneously with execution and delivery hereof, the Equity
Participant is delivering to the Corporation a check or wire
transfer of funds in the aggregate amount of the
Consideration.
2.2 The Equity Participant,
in his sole discretion, may make an effective election with the IRS
under Section 83(b) of the Code and the regulations
promulgated thereunder in the form of Exhibit A
attached hereto. The Equity Participant understands that under
applicable law such election must be filed with the IRS no later
than thirty (30) days after any acquisition of the Shares to
be effective. If the Equity Participant files an effective
election, the excess of the fair value of the Shares (which the IRS
may assert is different from the fair value determined by the
Equity Participant) covered by such election over the amount paid
by the Equity Participant for the Shares shall be treated as
ordinary income received by the Equity Participant. If the Equity
Participant does not file an effective election, future
appreciation on the Shares will generally be taxable as ordinary
income when the right of repurchase lapses as to such Shares
pursuant to this Agreement. The foregoing is merely a brief summary
of complex tax regulations, and therefore, the Equity Participant
is strongly advised to consult with his own tax
advisors.
3
2.3 In the event that the
Equity Participant files the election referred to in
Section 2.2 above, the Equity Participant will provide
the Corporation with a copy of such election as filed.
SECTION 3. Repurchase
Rights related to Common Stock .
3.1 From the date of
execution of this Agreement until the execution of the Employment
Agreement, the Shares shall be released in a series of successive
equal daily installments of 479 shares.
3.2 Upon the execution of the
Employment Agreement by the Equity Participant and the Corporation,
the Shares which remain unreleased after the release of those
Shares pursuant to Section 3.1 shall be released in
accordance with the following table:
|
|
|
|
Date of
Vesting
|
|
Percentage of those unreleased Shares at the
Executive Commencement
Date that remain unreleased
|
| The first
anniversary of the Executive Commencement Date |
|
75% |
| End of 1
st
quarter after the first
anniversary of Executive Commencement Date |
|
68.75% |
| End of 2nd
quarter after the first anniversary of Executive Commencement
Date |
|
62.50% |
| End of 3
rd
quarter after the first
anniversary of Executive Commencement Date |
|
56.25% |
| End of 4
th
quarter after the first
anniversary of Executive Commencement Date |
|
50.00% |
| End of 1
st
quarter after the second
anniversary of the Executive Commencement Date |
|
43.75% |
| End of 2
nd
quarter after the second
anniversary of the Executive Commencement Date |
|
37.50% |
| End of 3
rd
quarter after the second
anniversary of the Executive Commencement Date |
|
31.25% |
| End of 4
th
quarter after the second
anniversary of the Executive Commencement Date |
|
25.00% |
| End of 1
st
quarter after the third
anniversary of the Executive Commencement Date |
|
18.75% |
| End of 2
nd
quarter after the third
anniversary of the Executive Commencement Date |
|
12.50% |
| End of 3
rd
quarter after the third
anniversary of the Executive Commencement Date |
|
6.25% |
| End of 4
th
quarter after the third
anniversary of the Executive Commencement Date |
|
0% |
4
3.3 In the event that the
Equity Participant does not execute the Employment Agreement prior
to or in connection with the closing of the Bridge Financing or the
Consulting Agreement with the Equity Participant is terminated by
the Corporation for any reason (with or without Cause) other than
the commencement of his full time employment with the Corporation
pursuant to the Employment Agreement, the Shares which remain
unreleased at such time, after the release of those Shares pursuant
to Section 3.1 , shall cease being released on the
earlier of the date of the closing of such Bridge Financing or the
date of termination of the consulting arrangement, as applicable,
and remain Unreleased Shares.
3.4 Notwithstanding the
foregoing, in the event the Equity Participant’s employment
is terminated without Cause in relation to the sale or other
disposition of all or substantially all of the Corporation’s
assets or a change in ownership in a single transaction or series
of related transactions of fifty percent (50%) or more of the
Corporation’s stock, the Shares which remain unreleased at
the time of termination, after the release of those Shares pursuant
to Section 3.2 , shall-be released on the date of such
termination and become Released Shares; provided, however that this
provision shall not apply in the event of any equity financings of
the Corporation.
3.5 Except as provided for in
Section 3.4 , above, in the event the Equity
Participant’s employment is terminated without Cause,
twenty-five percent (25%) of the Unreleased Shares on the date
of such termination shall be released on the date of such
termination and become Released Shares.
SECTION 4. Termination of
Relationship .
4.1 (a) In the event that the Equity
Participant’s consulting is terminated for Cause prior to the
execution of the Employment Agreement, the Corporation shall have
the right to purchase from the Equity Participant, and if the
Corporation exercises its option pursuant to this
Section 4 , the Equity Participant shall sell to the
Corporation upon the exercise of such right, all of the Equity
Participant’s Unreleased Shares (rounded up to the nearest
whole Share) at the Original Cost Per Share.
(b) In the event that the
Equity Participant executes the Employment Agreement prior to or in
connection with the closing of the Bridge Financing, and his
employment is subsequently terminated for any reason (with or
without Cause), the Corporation shall have the right to purchase
from the Equity Participant, and if the Corporation exercises its
option pursuant to this Section 4 , the Equity
Participant shall sell to the Corporation upon the exercise of such
right, (1) all of the Equity Participant’s Unreleased
Shares (rounded up to the nearest whole Share) at the Original Cost
Per Share, and (2) all of the Equity Participant’s
Released Shares (rounded up to the nearest whole Share) at the Fair
Market Value per Share; provided, however, that if, after the
Executive Commencement Date, the Equity Participant’s
employment is terminated by the Corporation for Cause pursuant to
the terms and conditions of the Employment Agreement, the purchase
price for any Released Shares shall be the Original Cost Per
Share.
5
(c) For purposes of clause
(b) above, Released Shares shall not include those shares that
were released during the consulting period.
4.2 The number of Shares
subject to purchase pursuant to Section 4.1 shall be
adjusted to give effect to any stock dividend, or other
distribution of stock made on or in respect of such Shares, or any
subdivision, combination or reclassification of the outstanding
capital stock of the Corporation or received in exchange for the
Shares.
4.3 In order to exercise the
option to purchase the Equity Participant’s Shares under this
Section 4 , the Corporation shall deliver a written
notice to the Equity Participant (the “ Share Repurchase
Notice ”), indicating its election to purchase any or all
of the Shares and specifying the number of Unreleased Shares and
Released Shares, if applicable, which the Corporation elects to
purchase and the purchase price therefor, within ninety
(90) days after the Equity Participant’s
termination.
4.4 The repurchase of Shares
hereunder shall be made on a date within sixty (60) days of
the delivery of the Share Repurchase Notice, by delivery of payment
to the Equity Participant, by check or wire transfer, against
receipt of one or more certificates, properly endorsed, evidencing
the Equity Participant’s Unreleased and/or Released Shares,
if applicable, to be so purchased. If the repurchase is not
consummated by such date, the Corporation may deliver to the Equity
Participant by check or wire transfer the applicable repurchase
price for the Unreleased Shares and/or Released Shares, if
applicable, to be repurchased and may cancel the certificates
evidencing such Unreleased Shares and/or Released Shares, if
applicable, on the books and records of the Corporation.
4.5 Notwithstanding anything
to the contrary contained in this Agreement, all repurchases of
Shares by the Corporation shall be subject to applicable
restrictions contained in federal law; the Delaware General
Corporation Law and in the Corporation’s debt and equity
financing agreements. Notwithstanding anything to the contrary
contained in this Agreement, if any such restrictions prohibit or
otherwise delay the repurchase of any Shares thereunder which the
Corporation is otherwise entitled to make, the Corporation may make
such repurchases within sixty (60) days of the date that it is
permitted to do so under such restrictions.
4.6 In the event that any
Shares are the subject of repurchase by the Corporation pursuant to
this Section 4 , the Equity Participant and his
successors, assigns or representatives will take all steps
necessary and desirable to obtain all required third-party,
governmental and regulatory consents and approvals and take all
other actions necessary and desirable to facilitate consummation of
such repurchase(s) in a timely manner as are requested by the
Corporation.
6
SECTION 5. Legend on
Shares and Notice of Transfer .
5.1 Restrictive
Legends .
(a) Each certificate
evidencing Shares, and each certificate evidencing Shares held by
subsequent transferees of any such certificate, shall (unless
otherwise permitted by the provisions of Section 5.2
hereof) be stamped or otherwise imprinted with a legend in
substantially the following form:
THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES LAW. THESE SECURITIES MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR ANY EXEMPTION
THEREFROM UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
APPLICABLE STATE SECURITIES LAW.
(b) Each certificate
evidencing Shares, and each certificate evidencing Shares held by
subsequent transferees of any such certificate, shall also be
stamped or otherwise imprinted with a legend in substantially the
following form:
ADDITIONALLY, THE TRANSFER OF
THESE SECURITIES IS SUBJECT TO THE TERMS AND CONDITIONS OF A
RESTRICTED STOCK PURCHASE AGREEMENT EFFECTIVE AS OF APRIL 29, 2005,
BETWEEN AEGERION PHARMACEUTICALS, INC. AND THE HOLDER OF RECORD OF
THIS CERTIFICATE AND NO SALE, ASSIGNMENT, TRANSFER, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF SUCH SECURITIES SHALL BE
VALID OR EFFECTIVE EXCEPT IN ACCORDANCE WITH SUCH AGREEMENT AND
UNTIL SUCH TERMS AND CONDITIONS HAVE BEEN FULFILLED. COPIES OF SUCH
AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE
HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF AEGERION
PHARMACEUTICALS, INC.
5.2 Notice of Transfer
.
(a) The Equity Participant,
and any other holder of any Shares by acceptance thereof, agrees
that, prior to any Transfer of any Shares, such holder will give
written notice to
7
the Corporation of such holder’s
intention to effect such Transfer and to comply in all other
respects with the provisions of this Section 5.2 . Each
such notice shall contain (i) a statement setting forth the
intention of said holder’s prospective transferee with
respect to its retention or disposition of said Shares; and
(ii) unless waived by the Corporation, an opinion of counsel
for said holder as to the necessity or non-necessity for
registration under the Securities Act and applicable state
securities laws in connection with such Transfer and stating the
factual and statutory basis relied upon by counsel. The following
provisions shall then apply:
(i) If the proposed Transfer
of Shares may be effected without registration or qualification
under the Securities Act and any applicable state securities laws,
then the registered holder of such Shares shall be entitled to
Transfer such Shares in accordance with Section 5
hereof and the intended method of disposition specified in the
statement delivered by said holder to the Corporation.
(ii) If the proposed Transfer
of such Shares may not be effected without registration under the
Securities Act or registration or qualification under any
applicable state securities laws, the registered holder of such
Shares shall not be entitled to Transfer such Shares pursuant to
Section 6 until the requisite registration or
qualification is effective.
(b) Notwithstanding the
provisions of Section 5.2(a) , in the case of a
Transfer by a holder to a member of such holder’s Family or
Group, no such opinion of counsel shall be necessary; provided,
that the transferee agrees in writing to be subject to
Section 5 hereof t
|