Document:

Exhibit 10.2

 

NON-FOUNDER FORM

 

 KARYOPHARM THERAPEUTICS INC.
 NON-QUALIFIED STOCK OPTION AGREEMENT

 

Karyopharm Therapeutics Inc. (the “Company”) hereby grants the following stock option pursuant to its 2010 Stock Incentive Plan.  The terms and conditions attached hereto are also a part hereof.

 

	
Name of   optionee (the “Optionee”):
    	
 
    
	
Date of   this option grant:
    	
 
    
	
Number   of shares of the Company’s Common Stock subject to this option (“Shares”):
    	
 
    
	
Option   exercise price per share:
    	
 
    
	
Number,   if any, of Shares that vest immediately on the grant date:
    	
 
    
	
Shares   that are subject to vesting schedule:
    	
 
    
	
Vesting   Start Date:
    	
 
    

 

Vesting Schedule:

 

	
One year from Vesting Start Date:
    	
25% of   the Shares
    
	
First Day of Each Successive Month:
    	
an   additional 2.0833% of the Shares
    
	
Four years from Vesting Start Date:
    	
all   remaining Shares
    
	
All vesting is dependent on the continuation of a   Business Relationship with the Company, as provided herein.
    
	
Payment   alternatives (specify any or all of Section 8(a)(i) through (iii)):
    	
Section 8(a) (i) through   (iii)
    

 

This option satisfies in full all commitments that the Company has to the Optionee with respect to the issuance of stock, stock options or other equity securities.

 

	
 
    	
 
    	
KARYOPHARM   THERAPEUTICS INC.
    
	
 
    	
 
    	
 
    
	
Signature   of Optionee
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Street   Address
    	
 
    	
 
    	
Name of   Officer
    
	
 
    	
 
    	
 
    	
Title:
    
	
City/State/Zip   Code
    	
 
    	
 
    

 

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KARYOPHARM THERAPEUTICS INC.

 

NON-QUALIFIED STOCK OPTION AGREEMENT — INCORPORATED TERMS AND CONDITIONS

 

1.                                      Grant Under Plan.  This option is granted pursuant to and is governed by the Company’s 2010 Stock Incentive Plan (the “Plan”) and, unless the context otherwise requires, terms used herein shall have the same meaning as in the Plan.

 

2.                                      Grant as Non-Qualified Stock Option.  This option is a non-statutory stock option and is not intended to qualify as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”).

 

3.                                      Vesting of Option.

 

(a)                                 Vesting if Business Relationship Continues.  The Optionee may only exercise this option on or after the date of this option grant for the number of shares of Common Stock, if any, that are then vested in accordance with the vesting schedule set forth on the cover page hereof.  Notwithstanding the foregoing, the Board may, in its discretion, accelerate the date that any installment of this option becomes exercisable.  The foregoing rights are cumulative and may be exercised only before the date which is ten years from the date of this option grant.

 

(b)                                 Definitions.  The following definitions shall apply:

 

“Business Relationship” means service to the Company or its successor in the capacity of an employee, officer, director or consultant.

 

“Cause” means: In the good faith determination of the Company, Optionee has: (i) committed gross negligence or willful malfeasance in the performance of the Optionee’s work or duties; (ii) committed a breach of fiduciary duty or a breach of any non-competition, non-solicitation or confidentiality obligations to the Company; (ii) failed to follow the proper directions of the Optionee’s direct or indirect supervisor after written notice of such failure; (iii) been convicted of, or pleaded “guilty” or “no contest” to, any misdemeanor relating to the affairs of the Company or any felony; (iv) disregarded the material rules or material policies of the Company which has not been cured within 15 days after notice thereof from the Company; or (v) engaged in intentional acts that have generated material adverse publicity toward or about the Company.

 

“Private Transaction” means any Acquisition with respect to which (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act and/or (iii) securities for which the Company or any other issuer thereof has agreed, including pursuant to a demand, to file a registration statement within ninety (90) days of completion of the transaction for resale to the public pursuant to the Securities Act, do not constitute at least 75% of the total 

 

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consideration received or retained by the holders of the then outstanding capital stock of the Company.

 

4.                                      Termination of Business Relationship.

 

(a)                                 Termination.  If the Optionee’s Business Relationship with the Company ceases, voluntarily or involuntarily, with or without cause, no further installments of this option shall become exercisable, and this option shall expire (may no longer be exercised) after the passage of three months from the date of termination, but in no event later than the scheduled expiration date.  Any determination under this agreement as to the status of a Business Relationship or other matters referred to above shall be made in good faith by the Board of Directors of the Company (the “Board”).

 

(b)                                 Employment Status.  For purposes hereof, with respect to employees of the Company, employment shall not be considered as having terminated during any leave of absence if such leave of absence has been approved in writing by the Company and if such written approval contractually obligates the Company to continue the employment of the Optionee after the approved period of absence; in the event of such an approved leave of absence, vesting of this option shall be suspended (and the period of the leave of absence shall be added to all vesting dates) unless otherwise provided in the Company’s written approval of the leave of absence.  For purposes hereof, a termination of employment followed by another Business Relationship (for example, post-employment consulting service) shall be deemed a termination of the Business Relationship with all vesting to cease unless the Company enters into a written agreement related to such other Business Relationship in which it is specifically stated that there is no termination of the Business Relationship under this agreement.  This option shall not be affected by any change of employment within or among the Company and its Subsidiaries so long as the Optionee continuously remains an employee of the Company or any Subsidiary.

 

(c)                                  Termination for Cause.  If the Business Relationship of the Optionee is terminated for Cause (as defined above), this option may no longer be exercised from and after the Optionee’s receipt of written notice of such termination.  In such event, the Repurchase Option described in Section 6 shall also be applicable.

 

5.                                      Death; Disability.

 

(a)                                 Death.  Upon the death of the Optionee while the Optionee is maintaining a Business Relationship with the Company, this option may be exercised, to the extent otherwise exercisable on the date of the Optionee’s death, by the Optionee’s estate, personal representative or beneficiary to whom this option has been transferred pursuant to Section 11, only at any time within 180 days after the date of death, but not later than the scheduled expiration date.

 

(b)                                 Disability.  If the Optionee ceases to maintain a Business Relationship with the Company by reason of his or her disability, this option may be exercised, to the extent otherwise exercisable on the date of cessation of the Business Relationship, only at any time within 180 days after such cessation of the Business Relationship, but not later 

 

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than the scheduled expiration date.  For purposes hereof, “disability” means “permanent and total disability” as defined in Section 22(e)(3) of the Code.

 

6.                                      Company’s Right of Repurchase for Shares.

 

(a)                                 Right of Repurchase.  The Company shall have the assignable right (the “Repurchase Right”) to repurchase from the Optionee all, but not less than all, of the Shares purchased from the Company pursuant to this option, upon the occurrence of any of the events specified in Section 6(b) below (each, a “Repurchase Event”).  The Repurchase Right may be exercised within 60 days following the date the Company receives actual knowledge of such event (the “Repurchase Period”).  The Repurchase Right shall be exercised by the Company by giving the Optionee written notice on or before the last day of the Repurchase Period of its intention to exercise the Repurchase Right, and, together with such notice, tendering to the Optionee an amount (the “Repurchase Price”) equal to (i) in the case of an event specified in Section 6(b)(i) or (ii) below, as to vested Shares, the fair market value of the unvested shares, the purchase price, and (ii) in the case of an event specified in Section 6(b)(iii) or (iv) below, the lesser of the purchase price or the fair market value of the Shares.  Upon timely exercise of the Repurchase Right in the manner provided in this Section 6(a), the Optionee shall deliver to the Company or its assignee the stock certificate or certificates representing the shares being repurchased, duly endorsed and free and clear of any and all liens, charges and encumbrances.

 

If Shares are not purchased under the Repurchase Right, the Optionee and his or her successor in interest, if any, will hold any such Shares subject to all of the provisions of this agreement.

 

(b)                                 Company’s Right to Exercise Repurchase Right.  The Company or its assignee shall have the Repurchase Right in the event that any of the following events shall occur:

 

(i)                                     The receivership, bankruptcy or other creditor proceeding regarding the Optionee or the taking of any of Optionee’s Shares by legal process, such as a levy of execution;

 

(ii)                                  Distribution of Shares held by the Optionee to his or her spouse as such spouse’s joint or community interest pursuant to a decree of dissolution, operation of law, divorce, property settlement agreement or for any other reason, except as may be otherwise permitted by the Company;

 

(iii)                               The termination of the Optionee’s Business Relationship for Cause (as defined in Section 3(c) hereof); or

 

(iv)                              Within two years of the termination of the Optionee’s Business Relationship with the Company for any reason whatsoever, the engagement by the Optionee, directly or indirectly, alone or with others, in (a) any business activity which is in competition with the 

 

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Company or (b) the solicitation of, interference with or endeavor to entice away any employee of the Company.

 

(c)                                  Determination of Fair Market Value.  The fair market value of the Shares shall be, for purposes of this Section 6, determined by the Board in its sole discretion as of the date of the Repurchase Event.  Should Optionee disagree with the Board’s determination of the fair market value (the “Board Determination”), Optionee shall notify  the Board in writing (the “Dispute Notification”) that Optionee wishes to dispute the determination.  If the dispute is not resolved between the Board and the Employee within 15 days of receipt of the Dispute Notification, then the Board shall appoint a third-party expert in valuing companies that are comparable to the Company to determine the fair market value (the “Third Party Determination”).  The Third Party Determination shall be conclusive and binding upon the Board and the Optionee.  If the Third Party Determination is within ten percent of the Board Determination, then the Optionee shall bear the costs incurred in obtaining the Third Party Determination.  Should the Third Party Determination differ from the Board Determination by ten percent or more, the Company shall bear such costs.

 

(d)                                 Repurchase Procedure.  Any repurchase of Shares by the Company shall take place at the principal executive offices of the Company at the time and date set by the Company.  Such sale shall be effected by the Optionee’s delivery to the Company of a certificate or certificates evidencing the repurchased Shares, duly endorsed for transfer to the Company, against payment to the Optionee by the Company of the Repurchase Price by check for the repurchased Shares (which check may be delivered by mail) or by cancellation of indebtedness owed to the Company by the Optionee.  Upon the mailing of a check in payment of the Repurchase Price in accordance with the terms hereof or cancellation of indebtedness as aforesaid, the Company shall become the legal and beneficial owner of the Shares being repurchased and all rights and interests therein or relating thereto, and the Company shall have the right to retain and transfer to its own name the number of Shares being repurchased by the Company.

 

(e)                                  Expiration of Company’s Repurchase Right: The Repurchase Right shall remain in effect until such time, if ever, as the Common Stock of the Company is readily tradable on an established securities market.

 

7.                                      Partial Exercise.  This option may be exercised in part at any time and from time to time within the above limits, except that this option may not be exercised for a fraction of a share.

 

8.                                      Payment of Exercise Price.

 

(a)                                 Payment Options.  The exercise price and any required withholding taxes may be paid by one or any combination of the following forms of payment that are applicable to this option, as indicated on the cover page hereof:

 

(i)                                     by check payable to the order of the Company; or

 

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(ii)                                  if the Common Stock is then publicly traded, delivery of an irrevocable and unconditional undertaking, satisfactory in form and substance to the Company, by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, and any required tax withholding; or delivery by the Optionee to the Company of a copy of irrevocable and unconditional instructions, satisfactory in form and substance to the Company, to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding.

 

(iii)                               subject to Section 8(b) below, if the Common Stock is then traded on a national securities exchange or another national trading system, by delivery of shares of Common Stock having a fair market value equal as of the date of exercise to the exercise price and any required tax withholding.

 

In the case of (iii) above, fair market value as of the date of exercise shall be determined as of the last business day for which such prices or quotes are available prior to the date of exercise and shall mean (i) the last reported sale price (on that date) of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; or (ii) the last reported sale price (on that date) of the Common Stock on another national trading system, if the Common Stock is not then traded on a national securities exchange.

 

(b)                                 Limitations on Payment by Delivery of Common Stock.  If Section 8(a)(iii) is applicable, and if the Optionee delivers Common Stock held by the Optionee (“Old Stock”) to the Company in full or partial payment of the exercise price and required tax withholding and the Old Stock so delivered is subject to restrictions or limitations imposed by agreement between the Optionee and the Company, a number of Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the extent that the Optionee paid for the Shares by delivery of Old Stock, in addition to any restrictions or limitations imposed by this Agreement.  Notwithstanding the foregoing, the Optionee may not pay any part of the exercise price hereof or required tax withholding by transferring Common Stock to the Company unless such Common Stock has been owned by the Optionee free of any substantial risk of forfeiture for at least six months.

 

9.                                      Securities Laws Restrictions on Resale.  Until registered under the Securities Act of 1933, as amended, or any successor statute (the “Securities Act”), the Shares will be illiquid and will be deemed to be “restricted securities” for purposes of the Securities Act.  Accordingly, such shares must be sold in compliance with the registration requirements of the Securities Act or an exemption therefrom and may need to be held indefinitely.  Unless the Shares have been registered under the Securities Act, each certificate evidencing any of the Shares shall bear a restrictive legend specified by the Company.

 

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10.                               Method of Exercising Option.  Subject to the terms and conditions of this agreement, this option may be exercised by written notice, in the form of the Stock Option Exercise Notice attached as Annex A, to the Company at its principal executive office, or to such transfer agent as the Company shall designate.  Such notice shall state the election to exercise this option and the number of Shares for which it is being exercised and shall be signed by the person or persons so exercising this option.  Such notice shall be accompanied by payment of the full purchase price of such shares, and the Company shall deliver a certificate or certificates representing such shares as soon as practicable after the notice shall be received.  Such certificate or certificates shall be registered in the name of the person or persons so exercising this option (or, if this option shall be exercised by the Optionee and if the Optionee shall so request in the notice  exercising this option, shall be registered in the name of the Optionee and another person jointly, with right of survivorship).  In the event this option shall be exercised, pursuant to Section 5 hereof, by any person or persons other than the Optionee, such notice shall be accompanied by appropriate proof of the right of such person or persons to exercise this option.

 

11.                               Option Not Transferable.  This option is not transferable or assignable except by will or by the laws of descent and distribution.  During the Optionee’s lifetime only the Optionee can exercise this option.

 

12.                               No Obligation to Exercise Option.  The grant and acceptance of this option imposes no obligation on the Optionee to exercise it.

 

13.                               No Obligation to Continue Business Relationship.  Neither the Plan, this agreement, nor the grant of this option imposes any obligation on the Company to continue the Optionee in employment or other Business Relationship.

 

14.                               Withholding Taxes.  If the Company in its discretion determines that it is obligated to withhold any tax in connection with the exercise of this option, or in connection with the transfer of, or the lapse of restrictions on, any Common Stock or other property acquired pursuant to this option, the Optionee hereby agrees that the Company may withhold from the Optionee’s wages or other remuneration the appropriate amount of tax.  At the discretion of the Company, the amount required to be withheld may be withheld in cash from such wages or other remuneration or in kind from the Common Stock or other property otherwise deliverable to the Optionee on exercise of this option.  The Optionee further agrees that, if the Company does not withhold an amount from the Optionee’s wages or other remuneration sufficient to satisfy the withholding obligation of the Company, the Optionee will make reimbursement on demand, in cash, for the amount underwithheld.

 

15.                               Restrictions on Transfer; Company’s Right of First Refusal.

 

(a)                                 Exercise of Right.  Shares may not be transferred without the Company’s written consent except by will, by the laws of descent and distribution or in accordance with the further provisions of this Section 15.  If the Optionee desires to transfer all or any part of the Shares to any person other than the Company (an “Offeror”), the Optionee 

 

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shall: (i) obtain in writing an irrevocable and unconditional bona fide offer (the “Offer”) for the purchase thereof from the Offeror; and (ii) give written notice (the “Offer Notice”) to the Company setting forth the Optionee’s desire to transfer such shares, which Offer Notice shall be accompanied by a photocopy of the Offer and shall set forth at least the name and address of the Offeror and the price and terms of the Offer.  Upon receipt of the Offer Notice, the Company shall have an assignable option to purchase any or all of such Shares (the “Offered Shares”) specified in the Option Notice, such option to be exercisable by giving, within 15 days after receipt of the Option Notice, a written counter-notice to the Optionee.  If the Company elects to purchase all of such Offered Shares, it shall be obligated to purchase, and the Optionee shall be obligated to sell to the Company or its assignee, such Offered Shares at the price and terms indicated in the Offer within 30 days from the date of delivery by the Company of such counter-notice.  To the extent that the consideration proposed to be paid by the Offeror for the shares consists of property other than cash or a promissory note, the consideration required to be paid by the Company may consist of cash equal to the fair market value of such property, as determined in good faith by the Board.

 

(b)                                 Sale of Shares to Offeror.  The Optionee may, for 60 days after the expiration of the 30-day option period as set forth in Section 15(a), sell to the Offeror, pursuant to the terms of the Offer, all of such Offered Shares not purchased or agreed to be purchased by the Company or its assignee; provided, however, that the Optionee shall not sell such Shares to such Offeror if such Offeror is a competitor of the Company and the Company gives written notice to the Optionee, within 30 days of its receipt of the Offer Notice, stating that the Optionee shall not sell his or her Shares to such Offeror; and provided, further, that prior to the sale of such Shares to an Offeror, such Offeror shall execute an agreement with the Company pursuant to which such Offeror agrees to be subject to all of the restrictions applicable to the Optionee under this Agreement, including without limitation those set forth in Section 6 and this Section 15.  If any or all of such Shares are not sold pursuant to an Offer within the time permitted above, the unsold Shares shall remain subject to the terms of this Section 15.

 

(c)                                  Failure to Deliver Shares.  If the Optionee (or his or her legal representative) who has become obligated to sell Shares hereunder shall fail to deliver such shares to the Company in accordance with the terms of this agreement, the Company may, at its option, in addition to all other remedies it may have, mail to the Optionee the purchase price for such shares as is herein specified.  Thereupon, the Company: (i) shall cancel on its books the certificate or certificates representing such Shares to be sold; and (ii) shall issue, in lieu thereof, a new certificate or certificates in the name of the Company representing such Shares (or cancel such Shares), and thereupon all of such Optionee’s rights in and to such Shares shall terminate.

 

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(d)                                 Expiration of Company’s Right of First Refusal and Transfer Restrictions.  The first refusal rights of the Company and the transfer restrictions set forth in this Section 15 shall expire as to Shares on the earlier of (i) immediately prior to the closing of a public offering of Common Stock by the Company pursuant to an effective registration statement filed under the Securities Act, or (ii) the occurrence of an Acquisition that is not a Private Transaction.  In addition, if the Company and the Optionee are parties to an agreement containing first refusal provisions similar to the foregoing, such other agreement shall control.

 

16.                               Early Disposition.  The Optionee agrees to notify the Company in writing immediately after the Optionee transfers any Shares, if such transfer occurs on or before the later of (a) the date that is two years after the date of this agreement or (b) the date that is one year after the date on which the Optionee acquired such Shares.  The Optionee also agrees to provide the Company with any information concerning any such transfer required by the Company for tax purposes.

 

17.                               Lock-up Agreement.  The Optionee agrees, in connection with the initial underwritten public offering of the Common Stock pursuant to a registration statement under the Securities Act, (i) not to (a) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to  sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any other securities of the Company or (b) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of shares of Common Stock or other securities of the Company, whether any transaction described in clause (a) or (b) is to be settled by delivery of securities, in cash or otherwise, during the period beginning on the date of the filing of such registration statement with the Securities and Exchange Commission and ending 180 days after the date of the final prospectus relating to the offering (plus up to an additional 34 days to the extent requested by the managing underwriters for such offering in order to address FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4) or any similar successor provision), and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering.  The Company may impose stop-transfer instructions with respect to the shares of Common Stock or other securities subject to the foregoing restriction until the end of the “lock-up” period.

 

18.                               Arbitration.  Any dispute, controversy, or claim arising out of, in connection with, or relating to the performance of this agreement or its termination shall be settled by arbitration in the Commonwealth of Massachusetts, pursuant to the rules then obtaining of the American Arbitration Association.  Any award shall be final, binding and conclusive upon the parties and a judgment rendered thereon may be entered in any court having jurisdiction thereof.

 

19.                               Provision of Documentation to Optionee.  By signing this agreement the Optionee acknowledges receipt of a copy of this agreement and a copy of the Plan.

 

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20.                               Miscellaneous.

 

(a)                                 Notices.  All notices hereunder shall be in writing and shall be deemed given when sent by mail, if to the Optionee, to the address set forth below or at the address shown on the records of the Company, and if to the Company, to the Company’s principal executive offices, attention of the Corporate Secretary.

 

(b)                                 Entire Agreement; Modification.  This agreement constitutes the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this agreement.  This agreement may be modified, amended or rescinded only by a written agreement executed by both parties.

 

(c)                                  Fractional Shares.  If this option becomes exercisable for a fraction of a share because of the adjustment provisions contained in the Plan, such fraction shall be rounded down.

 

(d)                                 Entry Into Stockholders’ Voting or Other Agreements.  Notwithstanding the foregoing or any other provision to the contrary set forth herein or in the Plan, upon the Company’s request and as a condition of exercise of this option and the issuance of Shares hereunder, the Optionee hereby covenants and agrees to (if he or she has not done so already) execute, deliver and become party to any stockholders’, voting, first refusal, co-sale or other agreement to which at least a majority of the Company’s outstanding shares of capital stock are subject.  In the event of conflict between this Agreement and  the provisions of such other agreement(s), it is acknowledged and agreed that the provisions of such other agreement(s) shall control and take precedence over this Agreement.

 

(e)                                  Issuances of Securities; Changes in Capital Structure.  Except as expressly provided herein or in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to this option.  No adjustments need be made for dividends paid in cash or in property other than securities of the Company.  If there shall be any change in the Common Stock of the Company through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination or exchange of shares, spin-off, split-up or other similar change in capitalization or event, the restrictions contained in this agreement shall apply with equal force to additional and/or substitute securities, if any, received by the Optionee in exchange for, or by virtue of his or her ownership of, Shares, except as otherwise determined by the Board.

 

(f)                                   Severability.  The invalidity, illegality or unenforceability of any provision of this agreement shall in no way affect the validity, legality or enforceability of any other provision.

 

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(g)                                  Successors and Assigns.  This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth in Section 11 hereof.

 

(h)                                 Governing Law.  This agreement shall be governed by and interpreted in accordance with the laws of The Commonwealth of Massachusetts, without giving effect to the principles of the conflicts of laws thereof.

 

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ANNEX A

 

KARYOPHARM THERAPEUTICS INC.

 

Stock Option Exercise Notice

 

Karyopharm Therapeutics Inc. 
 2 Mercer Road
 Natick, MA 01760

 

Dear Sir or Madam:

 

I,                        (the “Optionee”), hereby irrevocably exercise the right to purchase               shares of the Common Stock, $.0001 par value per share (the “Shares”), of Karyopharm Therapeutics Inc. (the “Company”) at $      per share pursuant to the Company’s 2010 Stock Incentive Plan and a stock option agreement with the Company dated               (the “Option Agreement”).  Enclosed herewith is a payment of $            , the aggregate purchase price for the Shares.  The certificate for the Shares should be registered in my name as it appears below or, if so indicated below, jointly in my name and the name of the person designated below, with right of survivorship.

 

I acknowledge and agree that the Option Agreement remains in full force and effect and includes a number of restrictions on the Shares, including certain rights of the Company to repurchase Shares under certain circumstances as set forth in Section 6 of the Option Agreement, and on the transfer of the Shares, including, but not limited to, certain rights of first refusal on the transfer of all or any part of the Shares as set forth in Section 15 of the Option Agreement.

 

Further, I understand that the Shares have not been registered under the Securities Act of 1933, as amended, or any state securities laws.  As a result, I understand that I must continue to bear the economic risk of the investment for an indefinite time and that the Shares cannot be sold unless they are subsequently registered or an exemption from registration is available.

 

	
Dated:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature
    	
 
    
	
Print Name:
    	
 
    
	
 
    	
 
    
	
Address:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name and address of persons in whose name   the Shares are to be jointly registered (if applicable):
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

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FOUNDER FORM

 

KARYOPHARM THERAPEUTICS INC.
 NON-QUALIFIED STOCK OPTION AGREEMENT

 

Karyopharm Therapeutics Inc. (the “Company”) hereby grants the following stock option pursuant to its 2010 Stock Incentive Plan.  The terms and conditions attached hereto are also a part hereof.

 

	
Name   of optionee (the “Optionee”):
    	
 
    
	
Date   of this option grant:
    	
 
    
	
Number   of shares of the Company’s Common Stock subject to this option (“Shares”):
    	
 
    
	
Option   exercise price per share:
    	
 
    
	
Number,   if any, of Shares that vest immediately on the grant date:
    	
 
    
	
Shares   that are subject to vesting schedule:
    	
 
    
	
Vesting   Start Date:
    	
 
    

 

Vesting Schedule:

 

	
One   year from Vesting Start Date:
    	
25%   of the Shares
    
	
First   Day of Each Successive Month:
    	
an   additional 2.0833% of the Shares
    
	
Four   years from Vesting Start Date:
    	
all   remaining Shares
    
	
All   vesting is dependent on the continuation of a Business Relationship with the   Company, as provided herein.
    
	
Payment   alternatives (specify any or all of Section 8(a)(i) through (iii)):
    	
Section 8(a) (i) through   (iii)
    

 

This option satisfies in full all commitments that the Company has to the Optionee with respect to the issuance of stock, stock options or other equity securities.

 

	
 
    	
 
    	
KARYOPHARM   THERAPEUTICS INC.
    
	
 
    	
 
    	
 
    
	
Signature   of Optionee
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Street   Address
    	
 
    	
 
    	
Name   of Officer
    
	
 
    	
 
    	
 
    	
Title:
    
	
City/State/Zip   Code
    	
 
    	
 
    	
 
    

 

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KARYOPHARM THERAPEUTICS INC.

 

NON-QUALIFIED STOCK OPTION AGREEMENT — INCORPORATED TERMS AND CONDITIONS

 

1.                                      Grant Under Plan.  This option is granted pursuant to and is governed by the Company’s 2010 Stock Incentive Plan (the “Plan”) and, unless the context otherwise requires, terms used herein shall have the same meaning as in the Plan.

 

2.                                      Grant as Non-Qualified Stock Option.  This option is a non-statutory stock option and is not intended to qualify as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”).

 

3.                                      Vesting of Option.

 

(a)                                 Vesting if Business Relationship Continues.  The Optionee may only exercise this option on or after the date of this option grant for the number of shares of Common Stock, if any, that are then vested in accordance with the vesting schedule set forth on the cover page hereof.  Notwithstanding the foregoing, the Board may, in its discretion, accelerate the date that any installment of this option becomes exercisable.  The foregoing rights are cumulative and may be exercised only before the date which is ten years from the date of this option grant.

 

(b)                                 Accelerated Vesting Due to Acquisition.  In the event an Acquisition that is not a Private Transaction occurs while the Optionee maintains a Business Relationship with the Company and this option has not fully vested, this option shall become exercisable for 100% of the number of Shares subject to this option, such vesting to occur immediately prior to the closing of the Acquisition.

 

(c)                                  Definitions.  The following definitions shall apply:

 

“Business Relationship” means service to the Company or its successor in the capacity of an employee, officer, director or consultant.

 

“Cause” means: In the good faith determination of the Company, Optionee has: (i) committed gross negligence or willful malfeasance in the performance of the Optionee’s work or duties; (ii) committed a breach of fiduciary duty or a breach of any non-competition, non-solicitation or confidentiality obligations to the Company; (ii) failed to follow the proper directions of the Optionee’s direct or indirect supervisor after written notice of such failure; (iii) been convicted of, or pleaded “guilty” or “no contest” to, any misdemeanor relating to the affairs of the Company or any felony; (iv) disregarded the material rules or material policies of the Company which has not been cured within 15 days after notice thereof from the Company; or (v) engaged in intentional acts that have generated material adverse publicity toward or about the Company.

 

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“Private Transaction” means any Acquisition with respect to which (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act and/or (iii) securities for which the Company or any other issuer thereof has agreed, including pursuant to a demand, to file a registration statement within ninety (90) days of completion of the transaction for resale to the public pursuant to the Securities Act, do not constitute at least 75% of the total consideration received or retained by the holders of the then outstanding capital stock of the Company.

 

4.                                      Termination of Business Relationship.

 

(a)                                 Termination.  If the Optionee’s Business Relationship with the Company ceases, voluntarily or involuntarily, with or without cause, no further installments of this option shall become exercisable, and this option shall expire (may no longer be exercised) after the passage of three months from the date of termination, but in no event later than the scheduled expiration date.  Any determination under this agreement as to the status of a Business Relationship or other matters referred to above shall be made in good faith by the Board of Directors of the Company (the “Board”).

 

(b)                                 Employment Status.  For purposes hereof, with respect to employees of the Company, employment shall not be considered as having terminated during any leave of absence if such leave of absence has been approved in writing by the Company and if such written approval contractually obligates the Company to continue the employment of the Optionee after the approved period of absence; in the event of such an approved leave of absence, vesting of this option shall be suspended (and the period of the leave of absence shall be added to all vesting dates) unless otherwise provided in the Company’s written approval of the leave of absence.  For purposes hereof, a termination of employment followed by another Business Relationship (for example, post-employment consulting service) shall be deemed a termination of the Business Relationship with all vesting to cease unless the Company enters into a written agreement related to such other Business Relationship in which it is specifically stated that there is no termination of the Business Relationship under this agreement.  This option shall not be affected by any change of employment within or among the Company and its Subsidiaries so long as the Optionee continuously remains an employee of the Company or any Subsidiary.

 

(c)                                  Termination for Cause.  If the Business Relationship of the Optionee is terminated for Cause (as defined above), this option may no longer be exercised from and after the Optionee’s receipt of written notice of such termination.  In such event, the Repurchase Option described in Section 6 shall also be applicable.

 

5.                                      Death; Disability.

 

(a)                                 Death.  Upon the death of the Optionee while the Optionee is maintaining a Business Relationship with the Company, this option may be exercised, to the extent otherwise exercisable on the date of the Optionee’s death, by the Optionee’s estate, personal representative or beneficiary to whom this option has been transferred pursuant

 

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to Section 11, only at any time within 180 days after the date of death, but not later than the scheduled expiration date.

 

(b)                                 Disability.  If the Optionee ceases to maintain a Business Relationship with the Company by reason of his or her disability, this option may be exercised, to the extent otherwise exercisable on the date of cessation of the Business Relationship, only at any time within 180 days after such cessation of the Business Relationship, but not later than the scheduled expiration date.  For purposes hereof, “disability” means “permanent and total disability” as defined in Section 22(e)(3) of the Code.

 

6.                                      Company’s Right of Repurchase for Shares.

 

(a)                                 Right of Repurchase.  The Company shall have the assignable right (the “Repurchase Right”) to repurchase from the Optionee all, but not less than all, of the Shares purchased from the Company pursuant to this option, upon the occurrence of any of the events specified in Section 6(b) below (each, a “Repurchase Event”).  The Repurchase Right may be exercised within 60 days following the date the Company receives actual knowledge of such event (the “Repurchase Period”).  The Repurchase Right shall be exercised by the Company by giving the Optionee written notice on or before the last day of the Repurchase Period of its intention to exercise the Repurchase Right, and, together with such notice, tendering to the Optionee an amount (the “Repurchase Price”) equal to (i) in the case of an event specified in Section 6(b)(i) or (ii) below, as to vested Shares, the fair market value of the unvested shares, the purchase price, and (ii) in the case of an event specified in Section 6(b)(iii) or (iv) below, the lesser of the purchase price or the fair market value of the Shares.  Upon timely exercise of the Repurchase Right in the manner provided in this Section 6(a), the Optionee shall deliver to the Company or its assignee the stock certificate or certificates representing the shares being repurchased, duly endorsed and free and clear of any and all liens, charges and encumbrances.

 

If Shares are not purchased under the Repurchase Right, the Optionee and his or her successor in interest, if any, will hold any such Shares subject to all of the provisions of this agreement.

 

(b)                                 Company’s Right to Exercise Repurchase Right.  The Company or its assignee shall have the Repurchase Right in the event that any of the following events shall occur:

 

(i)                                     The receivership, bankruptcy or other creditor proceeding regarding the Optionee or the taking of any of Optionee’s Shares by legal process, such as a levy of execution;

 

(ii)                                  Distribution of Shares held by the Optionee to his or her spouse as such spouse’s joint or community interest pursuant to a decree of dissolution, operation of law, divorce, property settlement agreement or for any other reason, except as may be otherwise permitted by the Company;

 

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(iii)                               The termination of the Optionee’s Business Relationship for Cause (as defined in Section 3(c) hereof); or

 

(iv)                              Within two years of the termination of the Optionee’s Business Relationship with the Company for any reason whatsoever, the engagement by the Optionee, directly or indirectly, alone or with others, in (a) any business activity which is in competition with the Company or (b) the solicitation of, interference with or endeavor to entice away any employee of the Company.

 

(c)                                  Determination of Fair Market Value.  The fair market value of the Shares shall be, for purposes of this Section 6, determined by the Board in its sole discretion as of the date of the Repurchase Event.  Should Optionee disagree with the Board’s determination of the fair market value (the “Board Determination”), Optionee shall notify the Board in writing (the “Dispute Notification”) that Optionee wishes to dispute the determination.  If the dispute is not resolved between the Board and the Employee within 15 days of receipt of the Dispute Notification, then the Board shall appoint a third-party expert in valuing companies that are comparable to the Company to determine the fair market value (the “Third Party Determination”).  The Third Party Determination shall be conclusive and binding upon the Board and the Optionee.  If the Third Party Determination is within ten percent of the Board Determination, then the Optionee shall bear the costs incurred in obtaining the Third Party Determination.  Should the Third Party Determination differ from the Board Determination by ten percent or more, the Company shall bear such costs.

 

(d)                                 Repurchase Procedure.  Any repurchase of Shares by the Company shall take place at the principal executive offices of the Company at the time and date set by the Company.  Such sale shall be effected by the Optionee’s delivery to the Company of a certificate or certificates evidencing the repurchased Shares, duly endorsed for transfer to the Company, against payment to the Optionee by the Company of the Repurchase Price by check for the repurchased Shares (which check may be delivered by mail) or by cancellation of indebtedness owed to the Company by the Optionee.  Upon the mailing of a check in payment of the Repurchase Price in accordance with the terms hereof or cancellation of indebtedness as aforesaid, the Company shall become the legal and beneficial owner of the Shares being repurchased and all rights and interests therein or relating thereto, and the Company shall have the right to retain and transfer to its own name the number of Shares being repurchased by the Company.

 

(e)                                  Expiration of Company’s Repurchase Right: The Repurchase Right shall remain in effect until such time, if ever, as the Common Stock of the Company is readily tradable on an established securities market.

 

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7.                                      Partial Exercise.  This option may be exercised in part at any time and from time to time within the above limits, except that this option may not be exercised for a fraction of a share.

 

8.                                      Payment of Exercise Price.

 

(a)                                 Payment Options.  The exercise price and any required withholding taxes may be paid by one or any combination of the following forms of payment that are applicable to this option, as indicated on the cover page hereof:

 

(i)                                     by check payable to the order of the Company; or

 

(ii)                                  if the Common Stock is then publicly traded, delivery of an irrevocable and unconditional undertaking, satisfactory in form and substance to the Company, by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, and any required tax withholding; or delivery by the Optionee to the Company of a copy of irrevocable and unconditional instructions, satisfactory in form and substance to the Company, to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding.

 

(iii)                               subject to Section 8(b) below, if the Common Stock is then traded on a national securities exchange or another national trading system, by delivery of shares of Common Stock having a fair market value equal as of the date of exercise to the exercise price and any required tax withholding.

 

In the case of (iii) above, fair market value as of the date of exercise shall be determined as of the last business day for which such prices or quotes are available prior to the date of exercise and shall mean (i) the last reported sale price (on that date) of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; or (ii) the last reported sale price (on that date) of the Common Stock on another national trading system, if the Common Stock is not then traded on a national securities exchange.

 

(b)                                 Limitations on Payment by Delivery of Common Stock.  If Section 8(a)(iii) is applicable, and if the Optionee delivers Common Stock held by the Optionee (“Old Stock”) to the Company in full or partial payment of the exercise price and required tax withholding and the Old Stock so delivered is subject to restrictions or limitations imposed by agreement between the Optionee and the Company, a number of Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the extent that the Optionee paid for the Shares by delivery of Old Stock, in addition to any restrictions or limitations imposed by this Agreement.  Notwithstanding the foregoing, the Optionee may not pay any part of the exercise price hereof or required tax withholding by transferring Common Stock to the Company unless such Common Stock

 

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has been owned by the Optionee free of any substantial risk of forfeiture for at least six months.

 

9.                                      Securities Laws Restrictions on Resale.  Until registered under the Securities Act of 1933, as amended, or any successor statute (the “Securities Act”), the Shares will be illiquid and will be deemed to be “restricted securities” for purposes of the Securities Act.  Accordingly, such shares must be sold in compliance with the registration requirements of the Securities Act or an exemption therefrom and may need to be held indefinitely.  Unless the Shares have been registered under the Securities Act, each certificate evidencing any of the Shares shall bear a restrictive legend specified by the Company.

 

10.                               Method of Exercising Option.  Subject to the terms and conditions of this agreement, this option may be exercised by written notice, in the form of the Stock Option Exercise Notice attached as Annex A, to the Company at its principal executive office, or to such transfer agent as the Company shall designate.  Such notice shall state the election to exercise this option and the number of Shares for which it is being exercised and shall be signed by the person or persons so exercising this option.  Such notice shall be accompanied by payment of the full purchase price of such shares, and the Company shall deliver a certificate or certificates representing such shares as soon as practicable after the notice shall be received.  Such certificate or certificates shall be registered in the name of the person or persons so exercising this option (or, if this option shall be exercised by the Optionee and if the Optionee shall so request in the notice exercising this option, shall be registered in the name of the Optionee and another person jointly, with right of survivorship).  In the event this option shall be exercised, pursuant to Section 5 hereof, by any person or persons other than the Optionee, such notice shall be accompanied by appropriate proof of the right of such person or persons to exercise this option.

 

11.                               Option Not Transferable.  This option is not transferable or assignable except by will or by the laws of descent and distribution.  During the Optionee’s lifetime only the Optionee can exercise this option.

 

12.                               No Obligation to Exercise Option.  The grant and acceptance of this option imposes no obligation on the Optionee to exercise it.

 

13.                               No Obligation to Continue Business Relationship.  Neither the Plan, this agreement, nor the grant of this option imposes any obligation on the Company to continue the Optionee in employment or other Business Relationship.

 

14.                               Withholding Taxes.  If the Company in its discretion determines that it is obligated to withhold any tax in connection with the exercise of this option, or in connection with the transfer of, or the lapse of restrictions on, any Common Stock or other property acquired pursuant to this option, the Optionee hereby agrees that the Company may withhold from the Optionee’s wages or other remuneration the appropriate amount of tax.  At the discretion of the Company, the amount required to be withheld may be withheld in cash from such wages or other remuneration or in kind from the

 

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Common Stock or other property otherwise deliverable to the Optionee on exercise of this option.  The Optionee further agrees that, if the Company does not withhold an amount from the Optionee’s wages or other remuneration sufficient to satisfy the withholding obligation of the Company, the Optionee will make reimbursement on demand, in cash, for the amount underwithheld.

 

15.                               Restrictions on Transfer; Company’s Right of First Refusal.

 

(a)                                 Exercise of Right.  Shares may not be transferred without the Company’s written consent except by will, by the laws of descent and distribution or in accordance with the further provisions of this Section 15.  If the Optionee desires to transfer all or any part of the Shares to any person other than the Company (an “Offeror”), the Optionee shall: (i) obtain in writing an irrevocable and unconditional bona fide offer (the “Offer”) for the purchase thereof from the Offeror; and (ii) give written notice (the “Offer Notice”) to the Company setting forth the Optionee’s desire to transfer such shares, which Offer Notice shall be accompanied by a photocopy of the Offer and shall set forth at least the name and address of the Offeror and the price and terms of the Offer.  Upon receipt of the Offer Notice, the Company shall have an assignable option to purchase any or all of such Shares (the “Offered Shares”) specified in the Option Notice, such option to be exercisable by giving, within 15 days after receipt of the Option Notice, a written counter-notice to the Optionee.  If the Company elects to purchase all of such Offered Shares, it shall be obligated to purchase, and the Optionee shall be obligated to sell to the Company or its assignee, such Offered Shares at the price and terms indicated in the Offer within 30 days from the date of delivery by the Company of such counter-notice.  To the extent that the consideration proposed to be paid by the Offeror for the shares consists of property other than cash or a promissory note, the consideration required to be paid by the Company may consist of cash equal to the fair market value of such property, as determined in good faith by the Board.

 

(b)                                 Sale of Shares to Offeror.  The Optionee may, for 60 days after the expiration of the 30-day option period as set forth in Section 15(a), sell to the Offeror, pursuant to the terms of the Offer, all of such Offered Shares not purchased or agreed to be purchased by the Company or its assignee; provided, however, that the Optionee shall not sell such Shares to such Offeror if such Offeror is a competitor of the Company and the Company gives written notice to the Optionee, within 30 days of its receipt of the Offer Notice, stating that the Optionee shall not sell his or her Shares to such Offeror; and provided, further, that prior to the sale of such Shares to an Offeror, such Offeror shall execute an agreement with the Company pursuant to which such Offeror agrees to be subject to all of the restrictions applicable to the Optionee under this Agreement, including without limitation those set forth in Section 6 and this Section 15.  If any or all of such Shares are not sold pursuant to an Offer within the time permitted above, the unsold Shares shall remain subject to the terms of this Section 15.

 

(c)                                  Failure to Deliver Shares.  If the Optionee (or his or her legal representative) who has become obligated to sell Shares hereunder shall fail to deliver such shares to the Company in accordance with the terms of this agreement, the Company may, at its option, in addition to all other remedies it may have, mail to the

 

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Optionee the purchase price for such shares as is herein specified.  Thereupon, the Company: (i) shall cancel on its books the certificate or certificates representing such Shares to be sold; and (ii) shall issue, in lieu thereof, a new certificate or certificates in the name of the Company representing such Shares (or cancel such Shares), and thereupon all of such Optionee’s rights in and to such Shares shall terminate.

 

(d)                                 Expiration of Company’s Right of First Refusal and Transfer Restrictions.  The first refusal rights of the Company and the transfer restrictions set forth in this Section 15 shall expire as to Shares on the earlier of (i) immediately prior to the closing of a public offering of Common Stock by the Company pursuant to an effective registration statement filed under the Securities Act, or (ii) the occurrence of an Acquisition that is not a Private Transaction.  In addition, if the Company and the Optionee are parties to an agreement containing first refusal provisions similar to the foregoing, such other agreement shall control.

 

16.                               Early Disposition.  The Optionee agrees to notify the Company in writing immediately after the Optionee transfers any Shares, if such transfer occurs on or before the later of (a) the date that is two years after the date of this agreement or (b) the date that is one year after the date on which the Optionee acquired such Shares.  The Optionee also agrees to provide the Company with any information concerning any such transfer required by the Company for tax purposes.

 

17.                               Lock-up Agreement.  The Optionee agrees, in connection with the initial underwritten public offering of the Common Stock pursuant to a registration statement under the Securities Act, (i) not to (a) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any other securities of the Company or (b) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of shares of Common Stock or other securities of the Company, whether any transaction described in clause (a) or (b) is to be settled by delivery of securities, in cash or otherwise, during the period beginning on the date of the filing of such registration statement with the Securities and Exchange Commission and ending 180 days after the date of the final prospectus relating to the offering (plus up to an additional 34 days to the extent requested by the managing underwriters for such offering in order to address FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4) or any similar successor provision), and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering.  The Company may impose stop-transfer instructions with respect to the shares of Common Stock or other securities subject to the foregoing restriction until the end of the “lock-up” period.

 

18.                               Arbitration.  Any dispute, controversy, or claim arising out of, in connection with, or relating to the performance of this agreement or its termination shall be settled by arbitration in the Commonwealth of Massachusetts, pursuant to the rules then obtaining of the American Arbitration Association.  Any award shall be final,

 

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binding and conclusive upon the parties and a judgment rendered thereon may be entered in any court having jurisdiction thereof.

 

19.                               Provision of Documentation to Optionee.  By signing this agreement the Optionee acknowledges receipt of a copy of this agreement and a copy of the Plan.

 

20.                               Miscellaneous.

 

(a)                                 Notices.  All notices hereunder shall be in writing and shall be deemed given when sent by mail, if to the Optionee, to the address set forth below or at the address shown on the records of the Company, and if to the Company, to the Company’s principal executive offices, attention of the Corporate Secretary.

 

(b)                                 Entire Agreement; Modification.  This agreement constitutes the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this agreement.  This agreement may be modified, amended or rescinded only by a written agreement executed by both parties.

 

(c)                                  Fractional Shares.  If this option becomes exercisable for a fraction of a share because of the adjustment provisions contained in the Plan, such fraction shall be rounded down.

 

(d)                                 Entry Into Stockholders’ Voting or Other Agreements.  Notwithstanding the foregoing or any other provision to the contrary set forth herein or in the Plan, upon the Company’s request and as a condition of exercise of this option and the issuance of Shares hereunder, the Optionee hereby covenants and agrees to (if he or she has not done so already) execute, deliver and become party to any stockholders’, voting, first refusal, co-sale or other agreement to which at least a majority of the Company’s outstanding shares of capital stock are subject.  In the event of conflict between this Agreement and the provisions of such other agreement(s), it is acknowledged and agreed that the provisions of such other agreement(s) shall control and take precedence over this Agreement.

 

(e)                                  Issuances of Securities; Changes in Capital Structure.  Except as expressly provided herein or in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to this option.  No adjustments need be made for dividends paid in cash or in property other than securities of the Company.  If there shall be any change in the Common Stock of the Company through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination or exchange of shares, spin-off, split-up or other similar change in capitalization or event, the restrictions contained in this agreement shall apply with equal force to additional and/or substitute securities, if any, received by the Optionee in exchange for, or by virtue of his or her ownership of, Shares, except as otherwise determined by the Board.

 

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(f)                                   Severability.  The invalidity, illegality or unenforceability of any provision of this agreement shall in no way affect the validity, legality or enforceability of any other provision.

 

(g)                                  Successors and Assigns.  This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth in Section 11 hereof.

 

(h)                                 Governing Law.  This agreement shall be governed by and interpreted in accordance with the laws of The Commonwealth of Massachusetts, without giving effect to the principles of the conflicts of laws thereof.

 

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ANNEX A

 

KARYOPHARM THERAPEUTICS INC.

 

Stock Option Exercise Notice

 

Karyopharm Therapeutics Inc. 
 2 Mercer Road
 Natick, MA 01760

 

Dear Sir or Madam:

 

I,                       (the “Optionee”), hereby irrevocably exercise the right to purchase                    shares of the Common Stock, $.0001 par value per share (the “Shares”), of Karyopharm Therapeutics Inc. (the “Company”) at $          per share pursuant to the Company’s 2010 Stock Incentive Plan and a stock option agreement with the Company dated                 (the “Option Agreement”).  Enclosed herewith is a payment of $           , the aggregate purchase price for the Shares.  The certificate for the Shares should be registered in my name as it appears below or, if so indicated below, jointly in my name and the name of the person designated below, with right of survivorship.

 

I acknowledge and agree that the Option Agreement remains in full force and effect and includes a number of restrictions on the Shares, including certain rights of the Company to repurchase Shares under certain circumstances as set forth in Section 6 of the Option Agreement, and on the transfer of the Shares, including, but not limited to, certain rights of first refusal on the transfer of all or any part of the Shares as set forth in Section 15 of the Option Agreement.

 

Further, I understand that the Shares have not been registered under the Securities Act of 1933, as amended, or any state securities laws.  As a result, I understand that I must continue to bear the economic risk of the investment for an indefinite time and that the Shares cannot be sold unless they are subsequently registered or an exemption from registration is available.

 

	
Dated:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature
    	
 
    
	
Print   Name:
    	
 
    
	
 
    	
 
    
	
Address:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name   and address of persons in whose name the Shares are to be jointly registered   (if applicable):
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

24Exhibit 10.10

 

Consulting Agreement

 

This Consulting Agreement, dated effective October 28, 2010 (this ‘“Agreement”), is made and entered into by and among Karyopharm Therapeutics, Inc., a Delaware corporation with offices at 15 Bontempo Rd., Newton, MA 02459 (the “Company”) and Alan T. Barber doing business as the Prestar Group at 134 Alcott Rd, Concord, MA 01742 (the “Consultant”).

 

ARTICLE 1 - SCOPE OF WORK

 

1.1                               The Company has engaged Consultant to provide financial management services in the role of acting Chief Financial Officer (the “Consulting Services”).  Consultant will perform the customary and usual duties of a Chief Financial Officer and all functions related thereto as required by Company.

 

1.2                               Consultant and Company shall agree on a weekly basis as to the dates and times Consultant performs such Consulting Services giving due regard to the needs of the Company’s business.  Consultant will be available if required by Company to provide at least 1 working day each week.  Consultant will report directly to Sharon Shacham, President and CSO.  Upon Company’s request Consultant will provide the Consulting Services from the Company’s office.  The Company recognizes that initial work may require an increased commitment.

 

1.3                               In order for Consultant to perform the Consulting Services, it may be necessary for the Company to provide Consultant with Confidential Information (as defined below) regarding the Company’s business and products.  The Company will rely heavily upon Consultant’s integrity and prudent judgment to use this information only in the best interests of the Company.

 

1.4                               In rendering consulting services under this Agreement, Consultant shall conform to high professional standards of work and business ethics.

 

ARTICLE 2 - INDEPENDENT CONTRACTOR

 

2.1                               Consultant is an independent contractor and is not an employee, partner, or co-venturer of, or in any other service relationship with, the Company and this Agreement does not create an employer-employee relationship between Company and Consultant.  The Consultant is not entitled to any employee benefits, coverage or privileges, including, without limitation, social security, unemployment protection, medical insurance, pension payments, and the like, made available to employees of Company.

 

2.2                               Consultant will pay all required taxes on Consultant’s income from Company under this Agreement.  The Company will not withhold taxes on any amounts paid to Consultant.  Accordingly, the Consultant is responsible for all tax withholding, social security, unemployment insurance and other such payments,

 

	
Confidential
    	
 
    	
CFO Engagement
    

 

1

 

ARTICLE 3 - COMPENSATION FOR CONSULTING SERVICES

 

3.1                               The Company shall pay to Consultant $200 per hour for services rendered to the Company under this Agreement.  Consultant shall submit monthly statements of services performed and hours worked in the previous month.  Invoices are due and payable upon receipt but under no circumstances will remain unpaid beyond fourteen days of receipt by the Company.

 

ARTICLE 4 - TERM AND TERMINATION

 

4.1                               This Agreement shall be effective as of October 28, 2010 and shall continue in full force and effect for one year unless terminated by the Company or the Consultant.  The agreement may be renewed thirty (30) days prior to the date of expiration.

 

The Company or Consultant may terminate the Agreement upon fifteen (15) days with prior written notice.

 

Termination for Cause.  The Company may immediately terminate Consultant’s engagement for Cause upon written notice of termination to Consultant, with the particular Cause being specified in such notice.  “Cause” means any of the following in the Company’s judgment:  (a) Consultant’s conduct, failure or omission which has, or may have, a material adverse effect on the Company; (b) Consultant’s act or acts amounting to gross negligence or willful misconduct to the detriment of the Company; (c) Consultant’s fraud or embezzlement of funds or property: or (d) Consultant’s failure to observe or perform any covenant, condition or provision of this Agreement.

 

4.2                               The provisions of Articles 5 of this Agreement shall survive the termination of this Agreement and remain in full force and effect thereafter.

 

ARTICLE 5 - INVENTIONS, CONFIDENTIAL AND PROPRIETARY INFORMATION

 

5.1                               Inventions

 

5.1.1                     The Consultant hereby assigns to the Company all right, title and interest in and to any inventions, copyrightable works, discoveries, designs, processes, formulas, know-how, data and analysis that Consultant conceives, reduces to practice, or creates in the performance of the Consulting Services to the Company under this Agreement (“Inventions”).  Upon conception, reduction to practice, or creation of any Invention, the Consultant will communicate such fact to Company promptly, in writing.  Upon request by the Company, the Consultant will assist in the preparation and execution of documents (including patent applications and assignments thereof) and take all other action that the Company may reasonably request in order to vest in the Company all of the Consultant’s right, title, and interest in and to any Invention.  The provisions of this Section will survive any termination or expiration of this Agreement.

 

5.1.2                     The Consultant will promptly disclose to the Company all Inventions and will create and maintain adequate written records to document the conception and/or first actual

 

2

 

reduction to practice of any Invention.  Such written records will be available to the Company and will be deemed property of the Company.

 

5.1.3                     The Consultant warrants that he has the right to make the assignments made by the Consultant hereunder, and further warrants that no Inventions incorporated into any services provided hereunder will infringe any patent, copyright, trademark, trade secret or other propriety right of any third party.

 

5.2                               Proprietary and Confidential Information.

 

5.2.1                     The Consultant acknowledges that his relationship with the Company is one of high trust and confidence and that in the course of his service to the Company he will have access to and contact with Proprietary Information and Confidential information as defined below.  The Consultant agrees that he will not, during the Term or at any time thereafter, disclose to others, or use, directly or indirectly, for his benefit or the benefit of others, entity or organization other than the Company or disclose such Proprietary Information, Confidential Information or Invention without the written authorization of the President or Chief Executive Officer of the Company, either during the term of this Agreement and for a period of 10 years thereafter.

 

5.2.2                     For purposes of this Agreement, Proprietary Information will mean all material information (whether or not Confidential, patentable or copyrightable) owned, possessed or used by the Company, including, without limitation, any Invention, formula, vendor information, customer information, apparatus, equipment, trade secret, process, research, report, technical data, know-how, computer program, software, software documentation, hardware design, technology, marketing or business plan, forecast, unpublished financial statement, budget, license, price, cost and employee list that is communicated to, learned of, developed or otherwise acquired by the Consultant in the course of his service as a Consultant to the Company.

 

5.2.3                     For purpose of this Agreement, Confidential Information means material information, not generally known, and proprietary to the Company or to a third party for whom the Company is performing work, including, without limitation, information concerning any patents or trade secrets, confidential plans, research and development, sales and marketing plans or any other material confidential information or proprietary aspects of the business of the Company.  All information which Consultant acquires or becomes acquainted with during the period of this Agreement, whether developed by Consultant or by others, which Consultant has a reasonable basis to believe to be Confidential Information, or which is treated by the Company as being Confidential Information, shall be presumed to be Confidential Information.

 

5.2.4                     The Consultant’s obligations under this Section 5 will not apply to any information that (i) was fully in the Consultant’s possession prior to receipt from the Company as evidenced by Consultant’s written records, (ii) is or becomes part of the public domain under circumstances involving no breach by the Consultant of this Section 5, (iii) is lawfully received by Consultant from a third party having a right of further disclosure and

 

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did not obtain the information from Company, or (iv) independently developed by Consultant without reference to Company’s Proprietary Information as evidenced by Consultant’s written records.

 

5.3                               At Company’s request, the Consultant will promptly deliver to the Company or destroy all records, files, memoranda, notes, designs, data, reports, drawings, plans, computer programs, sketches, laboratory and research notebooks and other documents (and all copies or reproductions of such materials) relating to the business of the Company.

 

5.4                               The Consultant represents that his service as a Consultant to the Company pursuant to this Agreement does not, and will not, breach any agreement that obligates him to keep in confidence any confidential or proprietary information of any other party or to refrain from competing, directly or indirectly, with the business of any other party.  The Consultant will not disclose to the Company any trade secrets or confidential or proprietary information of any other party.

 

ARTICLE 6 -

 

6.1                               The Consultant will use good faith efforts in the performance of his obligations under this Agreement.  The Consultant warrants that the services performed under this Agreement will be performed in a professional manner.

 

6.2                               The Consultant will cooperate with the Company’s personnel, will not interfere with the conduct of the Company’s business and will observe all rules, regulations and security requirements of the Company.

 

6.3                               In performing the services under this Agreement, the Consultant will comply with all applicable laws, business conduct and regulatory established by any relevant governmental authority.

 

6.4                               The Consultant is not authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the Company in any manner.

 

6.5                               Non-Solicitation.  During the Term, and for a period of twelve (12) months thereafter, the Consultant agrees not to solicit or induce any employee of the Company to terminate his or her employment with the Company, and not to hire any employee of the Company without the Company’s prior written approval.  General advertisements by the Consultant not directed at any particular employee of the other shall not be construed as a violation of this Section 6.5.

 

ARTICLE 7 - GENERAL PROVISIONS

 

7.1                              This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

 

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7.2                               EQUITABLE RELIEF.  Consultant agrees that any breach of Sections 5 and 6 above by him/her would cause irreparable damage to the Company and that, in the event of such breach, the Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance or other equitable relief to prevent the violation or threatened violation of Consultant’s obligations hereunder, without the requirement of having to post bond.

 

7.3                               This Agreement constitutes the complete agreement and sets forth the entire understanding and agreement of the panics as to the subject matter of this Agreement and supersedes all prior discussions and understandings in respect to the subject of this Agreement, whether written or oral.

 

7.4                               No modification, termination or attempted waiver of this Agreement, or any provision thereof, shall be valid unless in writing signed by the party against whom the same is sought to be enforced.

 

7.5                               No delay or omission by the Company in exercising any right under this Agreement will operate as a waiver of that or any other right.

 

7.6                               In the event that any provision of this Agreement will be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions will in no way be affected or impaired thereby.

 

IN WITNESS WHEREOF, this Agreement is executed as of the date set forth above.

 

	
KARYOPHARM THERAPEUTICS, INC.
    	
 
    	
ALAN T. BARBER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Michael G. Kauffman
    	
 
    	
By: 
    	
/s/ Alan T. Barber
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Michael G. Kauffman, MD, PhD
    	
 
    	
Date:  
    	
10/28/10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Director and Founder
    	
 
    	
 
    	
 
    

 

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