EX-10.2





Exhibit 10.2



EMPLOYMENT AGREEMENT




WITH




ALIMERA SCIENCES, INC.




     This is an Employment Agreement entered into between Alimera Sciences, Inc., a Delaware
corporation (the “Company”), and Dan Myers (“Executive”).



RECITALS:




     WHEREAS, the Company is engaged in the business of developing, marketing and selling
ophthalmic pharmaceuticals in the United States and throughout the world;



     WHEREAS, Company and Executive desire that Executive provide the Company employment services
upon the terms and conditions set forth below; and



     WHEREAS, this Employment Agreement is entered into as a condition of the parties consummating
their obligations under the Series A Preferred Stock Purchase Agreement (the “Purchase Agreement”)
dated as of June 29, 2004, by and among the Company and certain investors whose names are
set forth on the signature pages thereto;



     NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, the
parties, intending to be legally bound, agree as follows:



AGREEMENT:




SECTION 1. TERM OF EMPLOYMENT




     (a) Effective Date. Subject to the terms and conditions set forth in this Employment
Agreement, the Company agrees to employ Executive, and Executive agrees to be employed by the
Company for the three year period which starts on the First Tranche Closing Date (as defined in the
Purchase Agreement) (the “Effective Date”).



     (b) Term. The term of this Employment Agreement is subject to automatic one year
extensions starting on the third anniversary of the Effective Date of this Employment Agreement and
on each subsequent anniversary date, unless Executive or the Company cancels the automatic
extension and terminates this Agreement and Executive’s employment hereunder at least thirty (30)
days prior to the anniversary date.



 









 





SECTION 2. DEFINITIONS





“Cause” means




     (1) Executive’s gross negligence or willful misconduct with respect to the business and
affairs of the Company which causes material detriment to the Company, including violation
of any material policy of the Company made known to the Executive in writing and not cured
within thirty (30) days after notice to the Executive;




     (2) Executive’s conviction of, or entering a guilty plea or plea of no contest with
respect to, a felony; or




     (3) Executive engages in any material breach of the terms of this Employment Agreement
or fails to fulfill his responsibilities under this Employment Agreement and such breach or
failure, as the case may be, is not cured, or is not capable of being cured, within thirty
(30) days after written notice thereof is given to the Executive by the Company.



     “Competing Business” means any business which develops, sells or markets ophthalmic
Pharmaceuticals.



     “Disability” means a condition which renders Executive unable (as determined by the Board of
Directors of the Company in good faith after consultation with a physician mutually selected by
the Executive and the Board of Directors of the Company) to regularly perform his duties hereunder
by reason of illness or injury for a period of more than six consecutive months with or without
reasonable accommodation.



     “Earned Bonus” means the bonus, determined based on the actual performance of the Company for
the full fiscal year in which Executive’s employment terminates, that Executive would have earned
for the year in which his employment terminates had he remained employed for the entire year,
prorated based on the ratio of the number of days during such year that Executive was employed to
365. Such Earned Bonus will be determined and paid to Executive no later than sixty (60) days
following the delivery of the auditor’s report for the fiscal year in which Executive’s employment
terminates.



     “Good Reason” means (i) a reduction of the Executive’s base salary from the amount stated in
Section 4(a) hereof by more than fifteen percent (15%), where such reduction is not matched
by reductions by the same percentages in the base salaries of all other members of senior
management of the Company; (ii) a material adverse change in Executive’s primary responsibilities
or title; (iii) a geographical relocation of the Company’s corporate headquarters, or the
Executive’s primary business location, to a location that is more than fifty (50) miles from the
present location of the Company’s corporate headquarters or the Employee’s primary business
location, as the case may be; (iv) any breach by the Company of this Employment Agreement which is
material and which is not cured, or is not capable of being cured, within thirty (30) days after
written notice thereof to the Company and the Board of Directors of the Company from Executive.



- 2 -









 





     “ISP” means the Alimera Sciences, Inc. 2004 Incentive Stock Plan, as amended from time to
time, and any successor to such plan.



     “Restricted Period” means the twelve (12) month period beginning on and after the Executive’s
employment with the Company is terminated pursuant to the terms of this Agreement.



SECTION 3. TITLE, POWERS AND RESPONSIBILITIES




     (a) Title. Executive shall be the Chief Executive Officer and President of the
Company.



     (b) Powers and Responsibilities.




     (1) Executive in fulfilling his responsibilities shall have such powers as are normally
and customarily associated with a Chief Executive Officer and President in a company of
similar size and operating in a similar industry, including the power to hire and fire
employees and executives of the Company reporting to Executive and such other powers as
authorized by the Board of Directors of the Company.




     (2) Executive, as a condition to his employment under this Employment Agreement,
represents and warrants that he can assume and fulfill responsibilities described in
Section 3(b)(1) without any risk of violating any non-compete or other restrictive
covenant or other agreement to which he is a party.



     (c) Reporting Relationship. Executive shall report to the Board of Directors of the
Company.



     (d) Full Time Basis. Executive shall undertake to perform all his responsibilities and
exercise all his powers in good faith and on a full-time basis.



SECTION 4. COMPENSATION, BENEFITS, ETC.




     (a) Annual Base Salary. Executive’s base salary shall be two hundred fifty thousand
dollars ($250,000) per year, which amount may be reviewed and increased at the discretion of the
Board of Directors of the Company or any committee of the Board of Directors of the Company duly
authorized to take such action. Executive’s base salary shall be payable in accordance with the
Company’s standard payroll practices and policies for executives and shall be subject to such
withholdings as required by law or as otherwise permissible under such practices or policies.



     (b) Annual Bonus. The Company shall pay an annual bonus to Executive no later than
sixty (60) days following the delivery of the auditor’s report for the applicable fiscal year, in
the amount, and subject to the terms and conditions, set forth in Schedule A attached
hereto.



     (c) Employee Benefit Plans. Executive shall be eligible to participate, on terms no
less favorable to Executive than the terms for participation of any other executive of the



- 3 -









 




Company at the same level within the Company as Executive, in the employee benefit plans, programs
and policies maintained by the Company in accordance with the terms and conditions to participate
in such plans, programs and policies as in effect from time to time.




     (d) Stock Options. Executive shall receive stock options at the discretion of the
Board of Directors of the Company, subject to the terms and conditions set forth in the ISP and any
corresponding option certificate granted to Executive under the ISP. As of the Effective Date,
Executive shall be entitled to a grant of stock options as set forth on Schedule B attached
hereto.



     (e) Vacation. Executive shall have the right to four weeks of vacation during each
successive one year period of his employment by the Company, which vacation time shall be taken at
such time or times in each such one year period so as not to materially and adversely interfere
with the performance of his responsibilities under this Employment Agreement. Executive in addition
shall have the right to the same time off work as other employees of the Company.



     (f) Expense Reimbursements. Executive shall have the right to
expense reimbursements in accordance with the Company’s standard policy on expense reimbursements.



     (g) Indemnification. The Company shall, to the maximum extent permitted by
applicable law and the Company’s governing documents, indemnify Executive and hold Executive
harmless from and against any claim, loss or cause of action arising from or out of Executive’s
performance as an officer, director, manager or employee of the Company or in any other capacity in
which Executive serves at the request of the Board of Directors of the Company. If any claim is
asserted hereunder against Executive, the Company shall pay Executive’s legal expenses (or cause
such expenses to be paid) on a quarterly basis, provided that Executive shall reimburse the
Company, in a timely manner, for such amounts if Executive shall be found by a final,
non-appealable order of a court of competent jurisdiction not to be entitled to indemnification.
The indemnification obligations of the Company in this paragraph shall survive any termination of
this Agreement.



     (h) Directors and Officers Liability Insurance. The Company shall maintain directors
and officers liability insurance coverage covering Executive in amounts customary for similarly
situated companies in the pharmaceutical industry and with insurers reasonably acceptable to
Executive. All policies for such coverage shall provide for insurance on an “occurrence” basis, or
if on a “claims-made” basis, with sufficient coverage for claims made after the date on which
Executive’s employment with the Company terminates.



SECTION 5. TERMINATION OF EMPLOYMENT




     (a) General. The Board of Directors of the Company shall have the right to terminate
Executive’s employment at any time with or without Cause, and Executive shall have the right to
terminate his employment at any time with or without Good Reason.



     (b) Termination by Board of Directors without Cause or by Executive for Good Reason.
If the Board of Directors terminates Executive’s employment without Cause or



- 4 -









 




Executive resigns for Good Reason, the Company shall pay Executive his earned but unpaid base
salary plus 100% of his current total annual base salary (subject to such withholdings as required
by law) payable in twelve equal monthly installments during the twelve month period immediately
following such termination and, when actually determined, the Executive’s Earned Bonus for the
fiscal year of termination. This obligation shall remain in effect even if Executive accepts other
employment. In addition, the Company shall make any COBRA continuation coverage premium payments
(not only for Executive, but for Executive’s dependents), for the one year period following the
termination of Executive’s employment or, if earlier, until Executive is eligible to be covered
under another substantially equivalent medical insurance plan by a subsequent employer.




     (c) Termination by the Board of Directors for Cause or by Executive without Good
Reason. If the Board of Directors of the Company terminates Executive’s employment for Cause or
Executive resigns without Good Reason, the Company’s only obligation to Executive under this
Employment Agreement shall be to pay Executive his earned but unpaid base salary, if any, up to the
date Executive’s employment terminates, and Executive shall have no right to any Earned Bonus or
any bonus payment whatsoever. The Company shall only be obligated to make such payments and provide
such benefits under any employee benefit plan, program or policy in which Executive was a
participant as are explicitly required to be paid to Executive by the terms of any such benefit
plan, program or policy following the date on which Executive’s employment terminates.



     (d) Termination for Disability. The Board of Directors of the Company shall have the
right to terminate Executive’s employment on or after the date Executive has a Disability, and such
a termination shall not be treated as a termination without Cause under this Employment Agreement.
If Executive’s employment is terminated on account of a Disability, the Company shall:




     (1) pay Executive his base salary through the end of the month in which his
employment terminates as soon as practicable after his employment terminates,




     (2) pay Executive his Earned Bonus for the fiscal year in which such
termination of employment occurs,




     (3) pay or cause the payment of benefits to which Executive is entitled under
the terms of the disability plan of the Company covering the Executive at the time
of such Disability,




     (4) make such payments and provide such benefits as otherwise called for under
the terms of the ISP and each other employee benefit plan, program and policy in
which Executive was a participant; provided no payments made under Section 5(d)(1), Section 5(d)(2), or Section 5(d)(3) shall be taken into account
in computing any payments or benefits described in this Section 5(d)(4), and




     (5) make any COBRA continuation coverage premium payments (not only for
Executive, but also for Executive’s dependents), for the eighteen (18)



- 5 -









 






month period following the termination of Executive’s employment or, if earlier,
until Executive is eligible to be covered under another substantially equivalent
medical insurance plan by a subsequent employer.



     (e) Death. If Executive’s employment terminates as a result of his death,
the Company shall:




     (1) pay Executive his base salary through the end of the month in which his
employment terminates as soon as practicable after his employment terminates,




     (2) pay Executive his Earned Bonus, when actually determined, for the year in
which Executive’s death occurs,




     (3) make such payments and provide such benefits as otherwise called for under
the terms of the ISP and each other employee benefit plan, program and policy in
which Executive was a participant; provided no payments made under Section
5(e)(1) or Section 5(e)(2) shall be taken into account in computing any
payments or benefits described in this Section 5(e)(3), and




     (4) make any COBRA continuation coverage premium payments for Executive’s
dependents, for the one year period following Executive’s death or, if earlier,
until such dependents are eligible to be covered under another
substantially equivalent medical insurance plan.



SECTION 6. COVENANTS BY EXECUTIVE




     (a) Company Property. Executive upon the termination of Executive’s employment for
any reason or, if earlier, upon the Company’s request shall promptly return all Company Property
which had been entrusted or made available to Executive by the Company, where the term “Property”
means all records, files, memoranda, reports, price lists, customer lists, drawings, plans,
sketches, keys, codes, computer hardware and software and other property of any kind or
description prepared, used or possessed by Executive during Executive’s employment by the
Company (and any duplicates of any such Property) together with any and all information, ideas,
concepts, discoveries, and inventions and the like conceived, made, developed or acquired at any
time by Executive individually or, with others during Executive’s employment which relate to the
Company or its products or services.



     (b) Trade Secrets. Executive agrees that Executive shall hold in a fiduciary capacity
for the benefit of the Company and its affiliates and shall not directly or indirectly use or
disclose any Trade Secret that Executive may have acquired during the term of Executive’s
employment by the Company or any of its predecessors for so long as such information remains a
Trade Secret, where the term “Trade Secret” means information, including, but not limited to,
technical or non-technical data, a formula, a pattern, a compilation, a program, a device, a
method, a technique, a drawing or a process that (1) derives economic value, actual or potential,
from not being generally known to, and not being generally readily ascertainable by proper means
by, other persons who can obtain economic value from its disclosure or use and (2) is the subject
of reasonable efforts by the Company and any of its affiliates to maintain its secrecy. This



- 6 -









 




Section 6(b) is intended to provide rights to the Company and its affiliates which are in
addition to, not in lieu of, those rights the Company and its affiliates have under the common law
or applicable statutes for the protection of trade secrets.




     (c) Confidential Information. Executive while employed by the Company or its
affiliates and for the three (3) year period thereafter shall hold in a fiduciary capacity for the
benefit of the Company and its affiliates, and shall not directly or indirectly use or disclose,
any Confidential Information that Executive may have acquired (whether or not developed or compiled
by Executive and whether or not Executive is authorized to have access to such information) during
the term of, and in the course of, or as a result of Executive’s employment by the Company or its
predecessors without the prior written consent of the Board of Directors of the Company unless and
except to the extent that such disclosure is (i) made in the ordinary course of Executive’s
performance of his duties under this Employment Agreement or (ii) required by any subpoena or other
legal process (in which event Executive will give the Company prompt notice of such subpoena or
other legal process in order to permit the Company to seek appropriate protective orders). For
the purposes of this Employment Agreement, the term “Confidential Information” means any secret,
confidential or proprietary information possessed by the Company or any of its affiliates,
including, without limitation, trade secrets, customer or supplier lists, details of client or
consultant contracts, current and anticipated customer requirements, pricing policies, price lists,
market studies, business plans, operational methods, marketing plans or strategies, product
development techniques or flaws, computer software programs (including object code and source
code), data and documentation data, base technologies, systems, structures and architectures,
inventions and ideas, past current and planned research and development, compilations, devices,
methods, techniques, processes, financial information and data, business acquisition plans and new
personnel acquisition plans (not otherwise included as a Trade Secret under this Employment
Agreement) that has not become generally available to the public, and the term “Confidential
Information” may include, but not be limited to, future business plans, licensing strategies,
advertising campaigns, information regarding customers or suppliers, executives and independent
contractors and the terms and conditions of this Employment Agreement. Notwithstanding the
provisions of this Section 6(c) to the contrary, Executive shall be permitted to furnish
this Employment Agreement to a subsequent employer or prospective employer.



     (d) Non-solicitation of Customers or Employees.




     (1) Executive (i) while employed by the Company or any of its affiliates shall not, on
Executive’s own behalf or on behalf of any person, firm, partnership, association,
corporation or business organization, entity or enterprise (other than the Company or one of
its affiliates), solicit business for a Competing Business from customers or suppliers of
the Company or any of its affiliates and (ii) during the Restricted Period shall not, on
Executive’s own behalf or on behalf of any person, firm, partnership, association,
corporation or business organization, entity or enterprise, solicit business for a Competing
Business from customers or suppliers of the Company or any of its affiliates with whom
Executive, in the case of both clauses (i) and (ii) above, had or made material business
contact with in the course of Executive’s employment by the Company within the twenty-four
(24) month period immediately preceding the beginning of the Restricted Period.



- 7 -









 






     (2) Executive (i) while employed by the Company or any of its affiliates shall not,
either directly or indirectly, call on, solicit or attempt to induce any other officer,
employee or independent contractor of the Company or any of its affiliates to terminate his
or her employment with such business and shall not assist any other person or entity in
such a solicitation (regardless of whether any such officer, employee or independent
contractor would commit a breach of contract by terminating his or her employment), and
(ii) during the Restricted Period, shall not, either directly or indirectly, call on,
solicit or attempt to induce any other officer, employee or independent contractor of such
business with whom Executive had contact, knowledge of, or association in the course of
Executive’s employment with the Company or any of its predecessors or affiliates, as the
case may be, during the twelve (12) month period immediately preceding the beginning of the
Restricted Period, to terminate his or her employment with the Company or any of its
affiliates and shall not assist any other person or entity in such a solicitation
(regardless of whether any such officer, employee or independent contractor would commit a
breach of contract by terminating his or her employment). Notwithstanding the foregoing,
nothing shall prohibit any person from contacting Executive about employment or other
engagement during the Restricted Period, provided that Executive does not solicit the
contact.



     (e) Non-competition Obligation. Without the prior written consent of the Company,
Executive, while employed by the Company or any of its affiliates and thereafter until the end of
the Restricted Period, will not engage in any of the activities described in Section
3(b)(1) hereof within the geographical area in which the Company or any of its affiliates is
actively engaged in developing, marketing and selling ophthalmic pharmaceuticals, for himself or on
behalf of any other person, partnership, corporation or other business entity which is in a
Competing Business for purposes of competing with the Company. Notwithstanding the preceding
sentence, Executive will not be prohibited from owning less than five (5%) percent of any publicly
traded corporation, whether or not such corporation is in a Competing Business.



     (f) Reasonable and Continuing Obligations. Executive agrees that Executive’s
obligations under this Section 6 are obligations which will continue beyond the date
Executive’s employment terminates and that such obligations are reasonable, fair and equitable in
scope, terms and duration, are necessary to protect the Company’s legitimate business interests and
are a material inducement to the Company to enter into this Employment Agreement.



     (g) Remedy for Breach. Executive agrees that the remedies at law of the Company for
any actual or threatened breach by Executive of the covenants in this Section 6 would be
inadequate and that the Company shall be entitled to specific performance of the covenants in this
Section 6, including entry of a temporary restraining order in state or federal court,
preliminary and permanent injunctive relief against activities in
violation of this Section 6, or both, or other appropriate judicial remedy, writ or order, in addition to any damages and
legal expenses which the Company may be legally entitled to recover. The Company agrees,
however, to give Executive and, if known, Executive’s attorney reasonable advance notice of any
legal proceeding, including any application for a temporary restraining order, relating to an
attempt to enforce the covenants in this Section 6 against Executive. Executive
acknowledges and agrees that the covenants in this Section 6 shall be construed as
agreements independent of any other provision of this Employment Agreement or any other agreement
between the



- 8 -









 




Company and Executive, and that the existence of any claim or cause of action by Executive against
the Company, whether predicated upon this Employment Agreement or any other agreement, shall not
constitute a defense to the enforcement by the Company of such covenants.




     (h) Termination of Restrictive Covenants. In addition to any other right or remedy
available to Executive, Executive shall no longer be bound by any of the restrictions set forth in
this Section 6 if the Company fails to pay or to provide Executive when due the amounts and
benefits due hereunder or under any agreement ancillary hereto, and Executive’s pursuit of such
remedy shall not relieve the Company from its obligations to pay and to provide such amounts and
benefits to Executive.



     (i) Ownership of Inventions, Discoveries, Improvements, Etc.




     (1) Executive shall promptly disclose and describe to the Company all inventions,
improvements, discoveries and technical developments, whether or not patentable, made or
conceived by Executive, either alone or with others, during such time as Executive is
employed with the Company, and within one (1) year after the date upon such employment
terminates, and that (i) are based in whole or in part upon Confidential Information, or
(ii) during such time as Executive is employed with the Company are along the lines of,
useful in or related to the business of the Company, or (iii) result from, or are suggested
by, any work that may be done by Executive for or on behalf of the Company (“Inventions”).
Executive hereby assigns and agrees to assign to the Company Executive’s entire right, title
and interest in and to such Inventions, and agrees to cooperate with the Company both during
and after such time as Executive is employed with the Company in the procurement and
maintenance, at the Company’s expense and at its direction, of patents, copyright
registrations and/or protection of the Company’s rights in such Inventions. Executive
shall keep and maintain adequate and current written records of all such Inventions, which
shall be and remain the property of the Company.




     (2) If a patent application, trademark registration or copyright registration is filed
by Executive or on Executive’s behalf, or a copyright notice indicating Executive’s
authorship is used by Executive or on Executive’s behalf, within one (1) year after the date
on which Executive’s employment with the Company terminates, that describes or identifies
any Invention within the scope of Executive’s work for the Company or that otherwise related
to a portion of the Company’s business (or any division thereof) of which Executive had
knowledge such time as Executive was employed with the Company, it is to be conclusively
presumed that the Invention was conceived by Executive during the such time as Executive was
employed with the Company. Executive agrees to notify the Company promptly of any such
application or registration and to assign to the Company Executive’s entire right, title and
interest in such Invention and in such application or registration.



- 9 -









 





     SECTION 7. MISCELLANEOUS



     (a) Notices. Notices and all other communications shall be in writing and shall be
deemed to have been duly given when personally delivered or when mailed by United States registered
or certified mail. Notices to the Company shall be sent to:


Alimera Sciences, Inc.

6120 Windward Parkway, Suite 290

Alpharetta, Georgia 30005

Attention: Chief Executive Officer

Facsimile: 678-990-5744




     Notices and communications to Executive shall be sent to the address Executive most recently
provided to the Company.



     (b) No Waiver. Except for the notice described in Section 7(a), no failure by
either the Company or Executive at any time to give notice of any breach by the other of, or to
require compliance with, any condition or provision of this Employment Agreement shall be deemed a
waiver of any provisions or conditions of this Employment Agreement.



     (c) Georgia Law. This Employment Agreement shall be governed by the law of the State
of Georgia, without regard to its provisions relating to choice of law or conflicts of law. Any
litigation that may be brought by either the Company or Executive involving the enforcement of this
Employment Agreement or any rights, duties, or obligations under this Employment Agreement, shall
be brought exclusively in a Georgia state court or United States District Court in Georgia.



     (d) Assignment. This Employment Agreement shall be binding upon and inure to the
benefit of the Company and any successor in interest to the Company. The Company may assign this
Employment Agreement to any affiliate or successor that acquires all or substantially all of the
assets and business of the Company or a majority of the voting interests of the Company, and no
such assignment shall be treated as a termination of Executive’s employment under this Employment
Agreement. Executive’s rights and obligations under this Employment Agreement are personal and
shall not be assigned or transferred.



     (e) Other Agreements. This Employment Agreement replaces and merges any and all
previous agreements and understandings regarding all the terms and conditions of Executive’s
employment relationship with the Company, and this Employment Agreement constitutes the entire
agreement between the Company and Executive with respect to such terms and conditions.



     (f) Amendment. No amendment to this Employment Agreement shall be effective unless it
is in writing and signed by the Company and by Executive.



     (g) Invalidity. If any part of this Employment Agreement is held by a court of
competent jurisdiction to be invalid or otherwise unenforceable, the remaining part shall be
unaffected and shall continue in full force and effect, and the invalid or otherwise unenforceable
part shall be deemed not to be part of this Employment Agreement.



- 10 -









 





     (h) Litigation. In the event that either party to this Employment Agreement institutes
litigation against the other party to enforce his or its respective rights under this Employment
Agreement, each party shall pay its own costs and expenses incurred in connection with such
litigation.



[The remainder of this page intentionally left blank.]




- 11 -









 





     IN WITNESS WHEREOF, the Company and Executive have executed this Employment
Agreement in multiple originals effective as of the Effective Date.



	 	 	 	 	 	 	 	 	 	 	 
	ALIMERA SCIENCES, INC.	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Daniel H. White	 	 	 	/s/ Dan Myers	 	 
	 	 	 	 	 	 	 	 	 
	Name:

	 	Daniel H. White
	 	 	 	Name:
	 	DAN MYERS	 	 
	Title:

	 	Secretary to Board, CFO	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 





- 12 -









 






SCHEDULE A




BONUS PROGRAM



The Executive shall be eligible for an annual performance bonus of up to twenty-five percent (25%)
of the Executive’s base salary, which will be contingent upon Alimera achieving board approved
objectives for the period.




 









 





SCHEDULE B 




OPTION GRANT AT EFFECTIVE DATE



Effective upon the execution of this Agreement, the Executive shall be entitled to a grant of
options to purchase one hundred fifty-four thousand eight hundred seventy-three (154,873) shares of
common stock under the Alimera Sciences, Inc. 2004 Stock Incentive Plan on the terms set forth in
the Stock Option Agreement.




 









 





STOCK RESTRICTION AGREEMENT




     THIS STOCK RESTRICTION AGREEMENT (this “Agreement”) is made and entered into as of June 29,
2004 (the “Commencement Date”), by and between Alimera Sciences, Inc., a Delaware corporation (the
“Company”), and Dan Myers (the “Employee”).



     WHEREAS, pursuant to that certain Series A Preferred Stock Purchase Agreement, dated as of as
of the Commencement Date, the Company desires to sell to certain investors, and such investors
desire to purchase from the Company, shares of Series A Preferred Stock, par value $0.01 per
share, of the Company (the “Series A Investment”); and



     WHEREAS, as a condition to the closing of the Series A Investment, which will benefit the
Company and the Employee, the Company and the Employee are required to enter into this Agreement;



     NOW, THEREFORE, in consideration of the premises, and of the mutual covenants and agreements
set forth herein, and of other good and valuable consideration the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:



     1. Definitions.



          (a) “Cause” shall mean (i) gross negligence or willful misconduct with respect to the
business and affairs of the Company, including violation of any material policy of the Company
made known to the Employee in writing and not cured within thirty (30) days after such notice to
the Employee thereof; (ii) conviction of, or entering a guilty plea or plea of no contest with
respect to, a felony; or (iii) the Employee engages in any material breach of the terms of the
Employment Agreement, dated as of the date hereof, entered into by and between the Company (the
“Employment Agreement”) or fails to fulfill his responsibilities under the Employment
Agreement and such breach or failure, as the case may be, is not cured, or is not capable of being
cured, within thirty (30) days after written notice thereof is given to the Employee by the
Company




          (b) “Common Stock” shall mean the common stock, par value $0.01 per share of the Company.




          (c) “Disability” shall mean a condition which renders the Employee unable (as determined by
the Board of Directors of the Company in good faith after consultation with a physician mutually
selected by the Employee and the Board of Directors of the Company) to regularly perform his
duties hereunder by reason of illness or injury for a period of more than six consecutive months




          (d) “Good Reason” shall mean (i) a reduction of the Employee’s base salary by more than
fifteen percent (15%) that is not matched by reductions by the same percentages in the base
salaries of all other members of senior management of the Company; (ii) a material adverse change
in Employee’s primary responsibilities or title; (iii) a geographical relocation of




 









 




the Company’s corporate headquarters, or the Employee’s primary business location, to a location
that is more than fifty (50) miles from the present location of the Company’s corporate
headquarters or the Employee’s primary business location, as the case may be; or (iv) any breach
by the Company of the Employment Agreement, which is material and which is not cured within thirty
(30) days after written notice thereof to the Company from Employee




          (e) “Liquidation Event” shall mean any: (i) liquidation, dissolution or winding up of
the Company; or (ii) sale, lease or other disposition of all or substantially all of the Company’s
assets or stock.




          (f) “Qualified Public Offering” shall mean the first underwritten firm
commitment public offering for the account of the Company of Common Stock pursuant to a
registration statement filed under the Securities Act of 1933, as amended, with aggregate proceeds
(net of underwriting discounts and commissions) to the Company of not less than $50,000,000 and
with the price per share in such offering in an amount equal to or greater than $5.93, as adjusted
for stock splits, stock dividends, recapitalizations and other similar events.




          (g) “Subject Shares” shall mean eight hundred four thousand (804,000) shares of the Company’s
Common Stock beneficially owned by the Employee, representing sixty- seven percent (67%) of all of
the shares of Common Stock which are beneficially owned by the Employee on the Commencement Date.




     2. Repurchase Right & Treatment of Subject Shares.



          2.1. Grant of Repurchase Right. The Company is hereby granted the right (the
“Repurchase Right”) to purchase from the Employee the Subject Shares, in whole or in part, on the
terms and subject to the conditions set forth in this Agreement.





     (a) Subject to Section 2.3 hereof, the Repurchase Right is exercisable by the Company
in accordance with Section 2.2 hereof at any time during the ten (10) day period from and
after the date on which the Employee’s employment with the Company terminates (such period,
the “Exercise Period”).




     (b) The Company is entitled to purchase the Subject Shares from the Employee at
a price per share equal to the $0.60 (such price, the “Repurchase Price”).



          2.2. Exercise of the Repurchase Right. The Repurchase Right shall be exercisable at
any time during the Exercise Period by written notice (the “Repurchase Notice”) delivered to the
Employee prior to the expiration of the Exercise Period. The Repurchase Notice shall indicate the
number of Subject Shares to be purchased and the date on which the purchase is to be effected, such
date to be not more than thirty (30) days after the date of the Repurchase Notice. The Employee
shall, prior to the close of business on the date specified for the purchase, deliver to the
Secretary of the Company the certificates representing the Subject Shares to be purchased, properly
endorsed for transfer. The Company shall, concurrently with the receipt of such stock certificates,
pay to the Employee in immediately available funds the Repurchase Price for the Subject Shares that
are to be purchased.




2









 





          2.3. Termination of the Repurchase Right. The Repurchase Right shall terminate with
respect to the Subject Shares as follows.





     (a) The Repurchase Right shall terminate automatically and without further notice or
action with respect to one thirty-sixth (1/36) of the Subject Shares on the last day of each
month from and after the Commencement Date, beginning on July 31, 2004, so that the
Repurchase Right shall have terminated with respect to all of the Subject Shares at the end
of the thirty-sixth (36th) month after the Commencement Date.




     (b) The Repurchase Right shall terminate automatically and without further notice or
action with respect to all of the Subject Shares in the event of the Employee’s death or
Disability, or in the event that the Employee’s employment with the Company is terminated
(i) by the Employee for Good Reason or (ii) by the Company other than for Cause.




     (c) The Repurchase Right shall terminate automatically and without further notice or
action with respect to any Subject Shares for which an exercise of the Repurchase Right is
not timely exercised under Sections 2.1 and 2.2 hereof.




     (d) The Repurchase Right shall terminate automatically and without further notice or
action with respect to all of the Subject Shares upon the effective date of a Qualified
Public Offering or a Liquidation Event.



          2.4. Stockholder Rights; Limitations on Transfer. Nothing in this Agreement shall
affect, reduce or impair the Subject Shares, and the Employee shall have all the rights of a
stockholder (including dividend rights and the right to vote) with respect to all of the Subject
Shares; provided, however, that the Subject Shares shall be subject to the transfer
restrictions of this Agreement, the Stock Sale Agreement, dated as of the date hereof (the
“Stock Sale Agreement”), by and among the Company and the stockholders of the Company, and
all applicable securities laws; and provided, further, that all purchasers or transferees
of the Subject Shares or any interest therein will receive and hold such Subject Shares or interest
subject to the provisions of this Agreement, the Stock Sale Agreement and applicable securities
laws, and shall agree in writing to take such Subject Shares or interest therein subject to all of
the terms of this Agreement, including restrictions on further transfer and, insofar as applicable,
the Company’s Repurchase Right under Sections 2.1 and 2.2 hereof. Any sale or transfer of the
Subject Shares shall be void unless the provisions of this Agreement are met.




          2.5. Additional Stock or Substituted Securities. In the event of any stock
dividend, stock split, recapitalization or other change affecting the Company’s outstanding Common
Stock as a class effected without receipt of consideration, then any new, substituted or additional
securities or other property (including money paid other than as a regular cash dividend) which is
by reason of any such transaction distributed with respect to any Subject Shares shall immediately
be subject to the Repurchase Right. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the price per share to be paid upon the exercise of the
Repurchase Right in order to reflect the effect of any such transaction upon the Company’s capital
structure.




3









 





     3. Miscellaneous.



          3.1. Governing Laws. This Agreement shall be governed by and construed in accordance
with the laws of the State of Georgia without regard to its provisions relating to choice of law or
conflicts of law. Any litigation that may be brought by either the Company or the Employee
involving the enforcement of this Agreement or any rights, duties, or obligations under this
Agreement, shall be brought exclusively in a Georgia state court or United States District Court in
Georgia.




          3.2. Amendment. Any provision of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either retroactively or
prospectively), only upon the written consent of the Company and the Employee.




          3.3. Assignment of Rights. This Agreement shall be binding upon and inure to the
benefit of the Company and any successor in interest to the Company. The Company may assign this
Agreement to any affiliate or successor that acquires all or substantially all of the assets and
business of the Company or a majority of the voting interests of the Company. Employee’s rights and
obligations under this Agreement are personal and shall not be assigned or transferred.




          3.4. Ownership. The Employee represents and warrants that, except as provided in
the Stock Sale Agreement, (a) he has good and valid title to and beneficial ownership of the
Subject Shares, and that such Subject Shares are free and clear of all liens, restrictions, claims,
options, rights of first refusal, or other encumbrances, with no defects of title whatsoever and
(b) he has the exclusive right, power and authority to vote the Subject Shares and is not party to
or bound by any agreement affecting or relating to his right to transfer or vote the Subject
Shares.




          3.5. Legend. Each certificate representing Subject Shares now or hereafter owned by
the Employee shall be endorsed with the following legend:





“THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A STOCK
RESTRICTION AGREEMENT, DATED AS OF JUNE ____ , 2004, BY
AND BETWEEN THE CORPORATION AND THE HOLDER NAMED ON THIS CERTIFICATE.
COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE
SECRETARY OF THE CORPORATION.”



          3.6. Notices. All notices and other formal communications required or permitted
hereunder shall be in writing and shall be deemed to have been duly given if personally delivered
or if sent by nationally-recognized overnight courier, by telecopy, or by registered or certified
mail, return receipt requested and postage prepaid, to the party to be notified at the address set
forth on the signature page hereto, or at such other address as such party may designate by ten
(10) days’ advance written notice to the other party hereto. Any such notice or communication shall
be deemed to have been received (a) in the case of personal




4









 




delivery, on the date of such delivery, (b) in the case of nationally-recognized overnight Courier,
on the next business day after the date when sent, (c) in the case of telecopy transmission, when
received, and (d) in the case of mailing, on the third business day following that on which the
piece of mail containing such communication is posted.




          3.7. Severability. In the event one or more of the provisions of this Agreement
should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement,
and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.




          3.8. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.




          3.9. Entire Agreement. This Agreement, together with all schedules and exhibits
hereto constitutes the entire agreement among the parties pertaining to the subject matter hereof
and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or
written, of the parties.




5









 





     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.



	 	 	 	 	 	 	 
	 	 	THE COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	Alimera Sciences, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 






	 	 	 	 	 
	 

	 	6120 Windward Parkway, Suite 290
	 

	 	Alpharetta, GA 30005	 	 
	 

	 	Facsimile: 678-990-5744	 	 
	 
	 

	 	THE EMPLOYEE:	 	 
	 
	 	 	 	 
	 

	 	 

Dan Myers
	 	 
	 
	 	 	 	 
	 

	 	630 Covey Place	 	 
	 

	 	Duluth, GA 30097	 	 






 









 





     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written.



	 	 	 	 	 
	 	THE COMPANY:



Alimera Sciences, Inc.

 	 
	 	By:  	/s/ Daniel H. White
 	 
	 	 	Name:  	Daniel H. White 	 
	 	 	Title:  	Secretary to Board, CFO 	 
	 



	 	 	 	 	 	 	 
	 	 	6120 Windward Parkway, Suite 290	 	 
	 	 	Alpharetta, GA 30005	 	 
	 	 	Facsimile: 678-990-5744	 	 
	 
	 	 	 	 	 	 
	 	 	THE EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Dan Myers	 	 
	 	 	 	 	 
	 

	 	[Name]
	 	Dan Myers	 	 
	 

	 	[Address]
	 	630 COVEY PLACE	 	 
	 

	 	 	 	DULUTH, GA. 30097