Document:

Exhibit 10.26

 

KINIKSA PHARMACEUTICALS, LTD.

 

Restricted Stock Agreement

 

AGREEMENT made this 18 day of September, 2015, between Kiniksa Pharmaceuticals, Ltd., a Bermuda exempted company (the “Company”), and Stephen Mahoney (the “Founder”).

 

For valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows:

 

1.             Purchase of Shares.

 

The Company shall allot and issue to the Founder, and the Founder shall subscribe for and shall purchase from the Company, subject to the terms and conditions set forth in this Agreement, 300,000 common shares (the “Shares”) US$0.0001 par value, of the Company (“Common Stock”), at a purchase price of US$0.0001 per share. The aggregate purchase price for the Shares shall be paid by the Founder by check payable to the order of the Company or such other method as may be acceptable to the Company. Upon receipt by the Company of payment for the Shares, the Company shall issue to the Founder one or more certificates in the name of the Founder for that number of Shares purchased by the Founder. The Founder agrees that the Shares shall be subject to the purchase options set forth in Sections 2 and 5 of this Agreement and the restrictions on transfer set forth in Section 4 of this Agreement.

 

2.             Purchase Option.

 

(a)           In the event that the Founder ceases to be employed by the Company for any reason or no reason, with or without cause, within 48 months from the Vesting Commencement Date (as defined below), the Company shall have the right and option (the “Purchase Option”) to purchase from the Founder, for a sum of $ US$0.0001 per share (the “Option Price”), some or all of the Unvested Shares (as defined below).

 

“Unvested Shares” means the total number of Shares multiplied by the Applicable Percentage at the time the Purchase Option becomes exercisable by the Company. The “Applicable Percentage” shall be (i) 100% during the period ending on the first anniversary of the Vesting Commencement Date (as defined below), (ii) 75% on the first anniversary of the Vesting Commencement Date, (iii) 75% less 2.0833% for each month of employment completed by the Founder with the Company from and after the first anniversary of the Vesting Commencement Date, and (iv) zero on or after the fourth anniversary of the Vesting Commencement Date. For purposes of this Agreement, “Vesting Commencement Date” shall mean August 1, 2015.

 

(b)           For purposes of this Agreement, employment with the Company shall include employment with a parent or subsidiary of the Company and service to the Company as an advisor, consultant or member of the Board of Directors of the Company.

 

(c)           If, after a Sale (as defined below) of the Company, the Founder’s employment with the Company is terminated (i) by the Company without cause (as defined

 

 

below) or (ii) by the Founder for Good Reason (as defined below), then the vesting schedule of the Shares shall be accelerated so that all then Unvested Shares shall immediately become free from the Purchase Option on the date of such termination.

 

(d)           For purposes of Section 2(c), the Founder’s employment shall be considered terminated without cause when such termination does not exist upon (i) a good faith finding by the Board of Directors of the Company that the Founder’s gross negligence or repeated and willful misconduct in performance of his duties to the Company, where such gross negligence or repeated and willful misconduct has resulted in material damage to the Company or any of its Affiliates or successors; (ii) the Founder’s commission of any act of fraud, embezzlement or material professional dishonesty with respect to the business of the Company or any of its Affiliates; (iii) the Founder’s commission of a felony or crime involving moral turpitude; or (iv) the Founder’s material breach of any provision of this Agreement or any other written agreement between the Founder and the Company which breach is not cured within twenty days after written notice thereof.

 

(e)           For purposes of Section 2(c), “Good Reason” shall exist upon any of the following occurring without the prior consent of the Founder (i) a requirement that the Founder relocate his primary reporting location to a location more than fifty (50) miles from the location of the Company subsidiary’s offices in Wellesley, Massachusetts; (ii) a material diminution by the Company of the Founder’s annual compensation; (iii) a breach by the Company (or its subsidiaries) of any written agreement between the Company (or its subsidiaries) and Founder; or (iv) if at any point more than twelve (12) months after the date of this Agreement, a demotion of the Founder to a position with responsibilities substantially less than the Founder’s prior position.

 

3.             Exercise of Purchase Option and Closing.

 

(a)           The Company may exercise the Purchase Option by delivering or mailing to the Founder (or his estate), within 90 days after the termination of the employment of the Founder with the Company, a written notice of exercise of the Purchase Option. Such notice shall specify the number of Shares to be purchased. If and to the extent the Purchase Option is not so exercised by the giving of such a notice within such 90-day period, the Purchase Option shall automatically expire and terminate effective upon the expiration of such 90-day period.

 

(b)           Within 10 days after delivery to the Founder of the Company’s notice of the exercise of the Purchase Option pursuant to subsection (a) above, the Founder (or his estate) shall, pursuant to the provisions of the Joint Escrow Instructions referred to in Section 7 below, tender to the Company at its principal offices the certificate or certificates representing the Shares which the Company has elected to purchase in accordance with the terms of this Agreement, duly endorsed in blank or with duly endorsed instrument of transfer attached thereto, all in form suitable for the transfer of such Shares to the Company. Promptly following its receipt of such certificate or certificates, the Company shall pay to the Founder the aggregate Option Price for such Shares (provided that any delay in making such payment shall not invalidate the Company’s exercise of the Purchase Option with respect to such Shares).

 

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(c)           After the time at which any Shares are required to be delivered to the Company for transfer to the Company pursuant to subsection (b) above, the Company shall not pay any dividend to the Founder on account of such Shares or permit the Founder to exercise any of the privileges or rights of a holder with respect to such Shares, but shall, in so far as permitted by law, treat the Company as the owner of such Shares.

 

(d)           The Option Price may be payable, at the option of the Company, in cancellation of all or a portion of any outstanding indebtedness of the Founder to the Company or in cash (by check) or both.

 

(e)           The Company shall not purchase any fraction of a Share upon exercise of the Purchase Option, and any fraction of a Share resulting from a computation made pursuant to Section 2 of this Agreement shall be rounded to the nearest whole Share (with any one-half Share being rounded upward).

 

(f)            The Company may assign its Purchase Option to one or more persons or entities.

 

4.             Restrictions on Transfer.

 

(a)           The Founder shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively “transfer”) any Shares, or any interest therein, that are subject to the Purchase Option, except that the Founder may transfer such Shares (i) to or for the benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and any other relatives approved by the Board of Directors (collectively, “Approved Relatives”) or to a trust established solely for the benefit of the Founder and/or Approved Relatives, provided that such Shares shall remain subject to this Agreement (including without limitation the restrictions on transfer set forth in this Section 4, the Purchase Option and the right of first refusal set forth in Section 5) and such permitted transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Agreement or (ii) as part of the sale of all or substantially all of the shares of capital stock of the Company (including pursuant to a merger or consolidation), provided that, in accordance with Section 9(b) below, the securities or other property received by the Founder in connection with such transaction shall remain subject to this Agreement.

 

(b)           The Founder shall not transfer any Shares, or any interest therein, that are no longer subject to the Purchase Option, except in accordance with Section 5 below.

 

5.             Right of First Refusal.

 

(a)           If the Founder proposes to transfer any Shares that are no longer subject to  the Purchase Option (either because they are no longer Unvested Shares or because the Purchase Option expired unexercised), then the Founder shall first give written notice of the proposed transfer (the “Transfer Notice”) to the Company. The Transfer Notice shall name the proposed

 

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transferee and state the number of such Shares the Founder proposes to transfer (the “Offered Shares”), the price per share and all other material terms and conditions of the transfer.

 

(b)           For 30 days following its receipt of such Transfer Notice, the Company shall have the option to purchase all or part of the Offered Shares at the price and upon the terms set forth in the Transfer Notice. In the event the Company elects to purchase all or part of the Offered Shares, it shall give written notice of such election to the Founder within such 30-day period. Within 10 days after his receipt of such notice, the Founder shall tender to the Company at its principal offices the certificate or certificates representing the Offered Shares to be purchased by the Company, duly endorsed in blank by the Founder or with duly endorsed stock powers attached thereto, all in a form suitable for transfer of the Offered Shares to the Company. Promptly following receipt of such certificate or certificates, the Company shall deliver or mail to the Founder a check in payment of the purchase price for such Offered Shares; provided  that if the terms of payment set forth in the Transfer Notice were other than cash against delivery, the Company may pay for the Offered Shares on the same terms and conditions as were set forth in the Transfer Notice; and provided  further that any delay in making such payment shall not invalidate the Company’s exercise of its option to purchase the Offered Shares.

 

(c)           If the Company does not elect to acquire any of the Offered Shares, the Founder may, within the 30-day period following the expiration of the option granted to the Company under subsection (b) above, transfer the Offered Shares which the Company has not elected to acquire to the proposed transferee, provided  that such transfer shall not be on terms and conditions more favorable to the transferee than those contained in the Transfer Notice. Notwithstanding any of the above, all Offered Shares transferred pursuant to this Section 5 shall remain subject to this Agreement (including without limitation the restrictions on transfer set forth in Section 4 and the right of first refusal set forth in this Section 5) and such transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Agreement.

 

(d)           After the time at which the Offered Shares are required to be delivered to the Company for transfer to the Company pursuant to subsection (b) above, the Company shall not pay any dividend to the Founder on account of such Offered Shares or permit the Founder to exercise any of the privileges or rights of a holder with respect to such Offered Shares, but shall, insofar as permitted by law, treat the Company as the owner of such Offered Shares.

 

(e)           The following transactions shall be exempt from the provisions of this Section 5:

 

(1)           a transfer of Shares to or for the benefit of any Approved Relatives, or to a trust established solely for the benefit of the Founder and/or Approved Relatives;

 

(2)           any transfer pursuant to an effective registration statement filed by the Company under the Securities Act of 1933, as amended (the “Securities Act”); and

 

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(3)           the sale of all or substantially all of the outstanding shares of  capital stock of the Company (including pursuant to a merger or consolidation);

 

provided, however, that in the case of a transfer pursuant to clause (1) above, such Shares shall remain subject to this Agreement (including without limitation the restrictions on transfer set forth in Section 4 and the right of first refusal set forth in this Section 5) and such transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Agreement.

 

(f)            The Company may assign its rights to purchase Offered Shares in any  particular transaction under this Section 5 to one or more persons or entities.

 

(g)           The provisions of this Section 5 shall terminate upon the earlier of the  following events:

 

(1)           the closing of the sale of shares of Common Stock in an underwritten public offering pursuant to an effective registration statement filed by the Company under the Securities Act; or

 

(2)           the sale of all or substantially all of the outstanding shares of capital stock, assets or business of the Company, by merger, amalgamation, consolidation, sale of assets or otherwise (other than a merger or consolidation in which all or substantially all of the individuals and entities who were beneficial owners of the Company’s voting securities immediately prior to such transaction beneficially own, directly or indirectly, more than 75% (determined on an as-converted basis) of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or acquiring corporation in such transaction) (such occurrence, a “Sale”).

 

(h)           The Company shall not be required (1) to transfer on its books any of the  Shares which shall have been sold or transferred in violation of any of the provisions set forth in this Agreement, or (2) to treat as owner of such Shares or to pay dividends to any transferee to whom any such Shares shall have been so sold or transferred.

 

6.             Agreement in Connection with Initial Public Offering.

 

The Founder 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 securities convertible into or exercisable or exchangeable for shares of Common Stock 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, whether any transaction described in clause (a) or (b) is to be settled by delivery of shares of Common Stock or other 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 from the date of

 

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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 rules), 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.

 

7.             Escrow.

 

The Founder shall, upon the execution of this Agreement, execute Joint Escrow Instructions in the form attached to this Agreement as Exhibit A. The Joint Escrow Instructions shall be delivered to the Treasurer of the Company, as escrow agent thereunder. The Founder shall deliver to such escrow agent a stock assignment duly endorsed in blank, in the form attached to this Agreement as Exhibit B, and hereby instructs the Company to deliver to such escrow agent, on behalf of the Founder, the certificate(s) evidencing the Shares issued hereunder. Such materials shall be held by such escrow agent pursuant to the terms of such Joint Escrow Instructions.

 

8.             Restrictive Legends.

 

All certificates representing Shares shall have affixed thereto legends in substantially the following form, in addition to any other legends that may be required under federal or state securities laws:

 

“The shares represented by this certificate are subject to restrictions on transfer and an option to purchase set forth in a  certain Restricted Stock Agreement between the company and the registered owner of these shares (or his predecessor in interest), and such Agreement is available for inspection without charge at the office of the Treasurer of the company.”

 

“The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be sold, transferred or otherwise disposed of in the absence of an effective registration statement under such Act or an opinion of counsel satisfactory to the company to the effect that such registration is not required.”

 

9.             Adjustments for Stock Splits, Stock Dividends, etc.

 

(a)           If from time to time there is any stock split, stock dividend, stock  distribution or other reclassification of the Common Stock of the Company, any and all new, substituted or additional securities to which the Founder is entitled by reason of his ownership of the Shares shall be immediately subject to the purchase options, the restrictions on transfer and the other provisions of this Agreement in the same manner and to the same extent as the Shares, and the Option Price shall be appropriately adjusted.

 

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(b)           Upon the occurrence of any merger, amalgamation or consolidation of the  Company with or into another entity as a result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive cash, securities or other property or any exchange of all of the Common Stock of the Company for cash, securities or other property pursuant to a share exchange transaction, the repurchase and other rights of the Company hereunder shall inure to the benefit of the Company’s successor and shall apply to the cash, securities or other property which the Shares were converted into or exchanged for pursuant to such transaction in the same manner and to the same extent as they applied to the Shares under this Agreement. If, in connection with such a transaction, a portion of the cash, securities and/or other property received upon the conversion or exchange of the Shares is to be placed into escrow to secure indemnification or similar obligations, the mix between the vested and unvested portion of such cash, securities and/or other property that is placed into escrow shall be the same as the mix between the vested and unvested portion of such cash, securities and/or other property that is not subject to escrow.

 

10.          Investment Representations.

 

The Founder represents, warrants and covenants as follows:

 

(a)           The Founder is purchasing the Shares for his own account for investment only, and not with a view to, or for sale in connection with, any distribution of the Shares in violation of the Securities Act, or any rule or regulation under the Securities Act.

 

(b)           The Founder has had such opportunity as he has deemed adequate to obtain from representatives of the Company such information as is necessary to permit him to evaluate the merits and risks of his investment in the Company.

 

(c)           The Founder has sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the purchase of the Shares and to make an informed investment decision with respect to such purchase.

 

(d)           The Founder can afford a complete loss of the value of the Shares and is able to bear the economic risk of holding such Shares for an indefinite period.

 

(e)           THE FOUNDER UNDERSTANDS THAT (I) THE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND ARE “RESTRICTED SECURITIES” WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT; (II) THE SHARES CANNOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THEY ARE SUBSEQUENTLY REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM REGISTRATION IS THEN AVAILABLE; (III) IN ANY EVENT, THE EXEMPTION FROM REGISTRATION UNDER RULE 144 WILL NOT BE AVAILABLE FOR AT LEAST ONE YEAR AND EVEN THEN WILL NOT BE AVAILABLE UNLESS A PUBLIC MARKET THEN EXISTS FOR THE COMMON STOCK, ADEQUATE INFORMATION CONCERNING THE COMPANY IS THEN AVAILABLE TO THE PUBLIC, AND OTHER TERMS AND CONDITIONS OF RULE 144 ARE COMPLIED WITH; AND (IV) THERE IS NOW NO REGISTRATION STATEMENT ON FILE WITH

 

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THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO ANY STOCK OF THE COMPANY AND THE COMPANY HAS NO OBLIGATION OR CURRENT INTENTION TO REGISTER THE SHARES UNDER THE SECURITIES ACT.

 

11.          Withholding Taxes; Section 83(b) Election.

 

(a)           The Founder acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Founder any federal, state or local taxes of any kind required by law to be withheld with respect to the purchase of the Shares by the Founder or the lapse of the Purchase Option.

 

(b)           The Founder has reviewed with the Founder’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Founder is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Founder understands that the Founder (and not the Company) shall be responsible for the Founder’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. The Founder understands that it may be beneficial in many circumstances to elect to be taxed at the time the Shares are purchased rather than when and as the Company’s Purchase Option expires by filing an election under Section 83(b) of the Internal Revenue Code of 1986 with the I.R.S. within 30 days from the date of purchase.

 

THE FOUNDER ACKNOWLEDGES THAT IT IS SOLELY THE FOUNDER’S RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE FOUNDER REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE FOUNDER’S BEHALF.

 

12.          Miscellaneous.

 

(a)           No Rights to Employment. The Founder acknowledges and agrees that the vesting of the Shares pursuant to Section 2 hereof is earned only by continuing service as an employee at the will of the Company (not through the act of being hired or purchasing shares hereunder). The Founder further acknowledges and agrees that the transactions contemplated hereunder and the vesting schedule set forth herein do not constitute an express or implied promise of continued engagement as an employee or consultant for the vesting period, for any period, or at all.

 

(b)           Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

 

(c)           Waiver. Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board of Directors of the Company.

 

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(d)           Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company and the Founder and their respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Sections 4 and 5 of this Agreement.

 

(e)           Notice. All notices required or permitted hereunder shall be in writing and deemed effectively given upon personal delivery or five days after deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto at the address shown beneath his or its respective signature to this Agreement, or at such other address or addresses as either party shall designate to the other in accordance with this Section 12(e).

 

(f)            Pronouns. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.

 

(g)           Entire Agreement. This Agreement constitutes the entire agreement between the parties, and supersedes all prior agreements and understandings, relating to the subject matter of this Agreement.

 

(h)           Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and the Founder.

 

(i)            Governing Law/Submission to Jurisdiction. This Agreement shall be construed, interpreted and enforced in accordance with the laws of Bermuda without regard to any applicable conflicts of laws. The parties hereto submit to the non-exclusive jurisdiction of the courts of Massachusetts, USA to resolve any disputes arising between them pertaining to the matters set out herein.

 

(j)            Founder’s Acknowledgments. The Founder acknowledges that he: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Founder’s own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Latham & Watkins LLP, is acting as counsel to the Company in connection with the transactions contemplated by the Agreement, and is not acting as counsel for the Founder.

 

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

 

	
 
    	
KINIKSA PHARMACEUTICALS, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas Beetham 
    
	
 
    	
Name: Thomas Beetham 
    
	
 
    	
Title: Sr. Vice President 
    
	
 
    	
Address: 
    	
Clarendon House
    
	
 
    	
 
    	
2 Church Street
    
	
 
    	
 
    	
Hamilton HM 11
    
	
 
    	
 
    	
Bermuda
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Stephen Mahoney
    
	
 
    	
Stephen Mahoney
    
	
 
    	
 
    
	
 
    	
Address:
    	
20 Russett Hill Road
    
	
 
    	
 
    	
Sherborn, MA 01770
    
	
 
    	
 
    	
USA
    
				

 

 

Exhibit A

 

Joint Escrow Instructions

 

September 18, 2015

 

Kiniksa Pharmaceuticals, Ltd. 

Clarendon House

2 Church Street

Hamilton HM 11

Bermuda

Attn: Treasurer

 

Dear Sir/Madam:

 

As Escrow Agent for Kiniksa Pharmaceuticals, Ltd., a Bermuda exempted company, and its successors in interest under the Restricted Stock Agreement (the “Agreement”) of even date herewith, to which a copy of these Joint Escrow Instructions is attached (the “Company”), and the undersigned person (“Holder”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of the Agreement in accordance with the following instructions:

 

1.                                      Appointment. Holder irrevocably authorizes the Company to deposit with you any certificates evidencing Shares (as defined in the Agreement) to be held by you hereunder and any additions and substitutions to said Shares. For purposes of these Joint Escrow Instructions, “Shares” shall be deemed to include any additional or substitute property. Holder does hereby irrevocably constitute and appoint you as his attorney-in-fact and agent for the term of this escrow to execute with respect to such Shares all documents necessary or appropriate to make such Shares negotiable and to complete any transaction herein contemplated. Subject to the provisions of this Section 1 and the terms of the Agreement, Holder shall exercise all rights and privileges of a member of the Company while the Shares are held by you.

 

2.                                      Closing of Purchase.

 

(a)                                 Upon any purchase by the Company of the Shares pursuant to the Agreement, the Company shall give to Holder and you a written notice specifying the number of Shares to be purchased, the purchase price for the Shares, as determined pursuant to the Agreement, and the time for a closing hereunder (the “Closing”) at the principal office of the Company. Holder and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice.

 

(b)                                 At the Closing, you are directed (i) to date the stock assignment form or forms necessary for the transfer of the Shares, (ii) to fill in on such form or forms the number of Shares being transferred, and (iii) to deliver the same, together with the certificate or certificates

 

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evidencing the Shares to be transferred, to the Company against the simultaneous delivery to you of the purchase price for the Shares being purchased pursuant to the Agreement.

 

3.                                      Withdrawal. The Holder shall have the right to withdraw from this escrow any Shares as to which the Purchase Option (as defined in the Agreement) has terminated or expired.

 

4.                                      Duties of Escrow Agent.

 

(a)                                 Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto.

 

(b)                                 You shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact of Holder while acting in good faith and in the exercise of your own good judgment, and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of such good faith.

 

(c)                                  You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or entity, excepting only orders or process of courts of law, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. If you are uncertain of any actions to be taken or instructions to be followed, you may refuse to act in the absence of an order, judgment or decrees of a court. In case you obey or comply with any such order, judgment or decree of any court, you shall not be liable to any of the parties hereto or to any other person or entity, by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

 

(d)                                 You shall not be liable in any respect on account of the identity, authority or rights of the parties executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder.

 

(e)                                  You shall be entitled to employ such legal counsel and other experts as you may deem necessary properly to advise you in connection with your obligations hereunder and may rely upon the advice of such counsel.

 

(f)                                   Your rights and responsibilities as Escrow Agent hereunder shall terminate if (i) you cease to be Treasurer of the Company or (ii) you resign by written notice to each party. In the event of a termination under clause (i), your successor as Treasurer shall become Escrow Agent hereunder; in the event of a termination under clause (ii), the Company shall appoint a successor Escrow Agent hereunder.

 

(g)                                  If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in furnishing such instruments.

 

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(h)                                 It is understood and agreed that if you believe a dispute has arisen with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in your possession without liability to anyone all or any part of said securities until such dispute shall have been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such proceedings.

 

(i)                                     These Joint Escrow Instructions set forth your sole duties with respect to any and all matters pertinent hereto and no implied duties or obligations shall be read into these Joint Escrow Instructions against you.

 

(j)                                    The Company shall indemnify you and hold you harmless against any and all damages, losses, liabilities, costs, and expenses, including attorneys’ fees and disbursements, (including without limitation the fees of counsel retained pursuant to Section 4(e) above, for anything done or omitted to be done by you as Escrow Agent in connection with this Agreement or the performance of your duties hereunder, except such as shall result from your gross negligence or willful misconduct.

 

5.                                      Notice. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by ten days’ advance written notice to each of the other parties hereto.

 

	
COMPANY:

 
    	
Notices to the Company shall be sent to the address set forth in the   salutation hereto, Attn: President
    
	
 
    	
 
    
	
Copy to:
    	
Kiniksa Pharmaceuticals Corp. 

15 Walnut Street, Suite 200

Wellesley Hills, MA 02481-1909 

USA
    
	
 
    	
 
    
	
HOLDER:
    	
Notices to Holder shall be sent to the address set forth below   Holder’s signature below.
    
	
 
    	
 
    
	
ESCROW AGENT: 
    	
Notices to the Escrow Agent shall be sent to the address set forth in   the salutation hereto.
    

 

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6.                                      Miscellaneous.

 

(a)                                 By signing these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions, and you do not become a party to the Agreement.

 

(b)                                 This instrument shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
Kiniksa Pharmaceuticals, Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas Beetham 
    
	
 
    	
Name:   
    	
Thomas   Beetham 
    
	
 
    	
Title: 
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HOLDER:
    
	
 
    	
 
    
	
 
    	
/s/ Stephen Mahoney
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
Name: 
    	
 Stephen Mahoney
    
	
 
    	
Address: 
    	
20 Russett Hill Rd.
    
	
 
    	
 
    	
Sherborn, MA 01770 USA
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date Signed: September 18, 2015
    
	
 
    	
 
    
	
 
    	
 
    
	
ESCROW AGENT:
    	
 
    
	
 
    	
 
    
	

    	
 
    
				

 

14

 

Exhibit B

 

(INSTRUMENT OF TRANSFER SEPARATE FROM CERTIFICATE)

 

FOR VALUE RECEIVED, I hereby sell, assign and transfer unto                                 shares of Common Stock, $0.0001 par value per share, of Kiniksa Pharmaceuticals, Ltd. (the “Company”) standing in my name on the books of the Company represented by Certificate(s) Number                                        herewith, and do hereby irrevocably constitute and appoint                              attorney to transfer the said shares on the books of the Company with full power of substitution in the premises.

 

	
 
    	
Dated:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Stephen Mahoney
    
	
 
    	
[Holder   Signature]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Stephen   Mahoney
    
	
 
    	
[Holder Print   Name]
    

 

15EX-10.1

 EXHIBIT 10.1 

Execution Version 
 LIMITED
CONSENT AND WAIVER 
 TO CREDIT AGREEMENT 

THIS LIMITED CONSENT AND WAIVER TO CREDIT AGREEMENT, dated as of January 24, 2019 (this “Consent”), is by and
among GREIF, INC., a Delaware corporation (the “Company”), the Lenders party hereto, and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, the “Administrative
Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement. 

W I T N E S S E T H 

WHEREAS, the Company, certain Subsidiaries of the Company from time to time party thereto, certain banks and financial institutions
from time to time party thereto (the “Lenders”) and the Administrative Agent are parties to that certain Credit Agreement, dated as of November 3, 2016 (as amended, modified, extended, restated, replaced, or supplemented from
time to time, the “Credit Agreement”); 
 WHEREAS, on December 20, 2018, Greif Packaging LLC, a Delaware
limited liability company and Greif USA II LLC, a Delaware limited liability company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Paperboard Parent, Inc., a Delaware corporation and the parent of
Caraustar (as defined below), and a representative of the sellers, pursuant to which the Company will acquire (the “Caraustar Acquisition”) Caraustar Industries, Inc. and its respective subsidiaries (collectively,
“Caraustar”) for a purchase price of $1.8 billion in cash, subject to adjustments as set forth in the Merger Agreement; 

WHEREAS, the Company has informed the Administrative Agent and the Lenders that it intends to (a) issue and sell up to an
aggregate principal amount of senior unsecured notes (the “Notes”) in a public offering or in a Rule 144A or other private placement yielding up to $700.0 million in gross cash proceeds, which Notes will be guaranteed by
certain U.S. Subsidiaries of the Company (the “Notes Offering”) and (b) use the net proceeds from the Notes Offering, together with cash on hand and borrowings under the Credit Agreement, to finance the Caraustar Acquisition,
repay or otherwise refinance certain existing Indebtedness of the Company and its Subsidiaries and pay related fees and expenses (the Credit Agreement, as the same may be amended or amended and restated in connection with the foregoing, including
to, among other things, permit the Caraustar Acquisition and the Notes, the “Credit Agreement Amendment”); 

WHEREAS, the Company intends to issue the Notes on or prior to the closing of the Caraustar Acquisition (and prior to any Credit
Agreement Amendment) and, as such, should the Notes Offering occur prior to the closing of the Caraustar Acquisition (and prior to any Credit Agreement Amendment), then substantially concurrently with such closing of the Notes Offering, (a) the
initial purchasers of the Notes will deposit the net proceeds of the Notes Offering into an escrow account (the “Escrow Account”), (b) the Company will deposit (or cause to be deposited) into the Escrow Account an additional amount
in cash, which together with such net proceeds, would be sufficient to pay the full redemption amount, including accrued and unpaid interest, if any, to the extent the Caraustar Acquisition does not occur and the Notes must be redeemed (the deposit
of such additional amount, the “Interest Deposit”) and (c) the Company will 

 
grant a security interest in the Escrow Account and the cash proceeds therein to the Note holders to secure the Company’s redemption and other payment obligations in respect of the Notes
(the foregoing, the “Notes Escrow Transactions”); and 
 WHEREAS, the Required Lenders are willing to consent to the
Notes Offering and the substantially simultaneous Notes Escrow Transactions, in each case, in accordance with and subject to the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 

LIMITED CONSENT AND WAIVER 

1.1    Limited Consent to Note Issuance and Escrow. Upon the Consent Effective Date and notwithstanding
applicable terms and provisions of the Credit Agreement and the other Loan Documents to the contrary, for the period (the “Limited Consent Period”) (a) commencing as of the Consent Effective Date and (b) ending as of the
earlier of (i) the date that the Notes are redeemed by the Company following the Company’s notification to the trustee under the indenture under which the Notes are issued that the Caraustar Acquisition will not be consummated or otherwise
announce that the Merger Agreement has been terminated (such redemption of the Notes, the “Mandatory Redemption”) and (ii) the effective date of any Credit Agreement Amendment executed and delivered in connection with the
consummation of the Caraustar Acquisition, the Administrative Agent and the Lenders party hereto hereby (A) consent to the Company and its Subsidiaries undertaking the Notes Offering, making the Interest Deposit and effecting the Notes Escrow
Transactions, (B) consent to the Company granting a first priority security interest in the Escrow Account and the cash proceeds therein to the Note holders (and using such proceeds during the Limited Consent Period to make interest payments
under the Notes), and (C) otherwise grant a limited waiver of the terms and provisions of the Loan Documents that would otherwise prohibit or otherwise restrict the Company and its Subsidiaries from undertaking the Notes offering and making
interest payments thereunder and effecting the Notes Escrow Transactions (including, for the avoidance of doubt, any breach of any provision of Article VII of the Credit Agreement that would otherwise result from any of the foregoing);
provided that the Company acknowledges and agrees that (x) none of the terms and conditions relating to the Escrow Account (as in effect on the date of the initial deposit of proceeds of the Notes) may be amended, modified or otherwise
waived in a manner that is materially adverse to the interest of the Lenders unless consented to by the Administrative Agent and the Required Lenders (and any such amendment, modification or waiver without such consent shall constitute an Event of
Default under the Credit Agreement), (y) subject to Section 1.3, with this Consent, the Administrative Agent and the Lenders are not committing to enter into any Credit Agreement Amendment and/or any other amendment,
modification, or waiver of the Credit Agreement and the terms and provisions thereof, which shall in any case be subject to the discretion and approval of Administrative Agent and each Lender and (z) upon the expiration of the Limited Consent
Period, to the extent the Loan Parties, the Administrative Agent and the Lenders have not negotiated the Credit Agreement Amendment to execution, (i) the Company shall redeem (or cause the redemption of) the Notes in full with the proceeds from
the Escrow Amount and (ii) to the extent the Notes are not so redeemed in accordance with the term thereof pursuant to clause (i) upon such expiration of the Limited Consent Period, notwithstanding the waiver and consent set forth in this
Section, it shall be deemed to be an Event of Default, and the Administrative Agent and the Lenders shall have the right to exercise any and all of their rights and remedies in accordance with the terms of the Credit Agreement and the other Loan
Documents with respect to such Event of Default or any other Default or Event of Default related thereto immediately and without any further passage of time. 

  
 2 

 1.2    Effectiveness of Consent. This Consent shall be
effective only to the extent specifically set forth herein and shall not (a) be construed as a waiver of any breach, Default or Event of Default of which the Lenders have not been informed by the Company or any of the other Loan Parties or
(b) affect the right of the Lenders to demand compliance by the Loan Parties with all terms and conditions of the Loan Documents, except as specifically agreed and otherwise consented to by this Consent. 

1.3    Commitment Letter. Notwithstanding anything to the contrary herein, nothing in this Consent shall be
deemed to be an amendment of the terms of, or a release or waiver of any rights of the Company under, that certain Amended and Restated Commitment Letter, dated as of January 14, 2019 (including the annexes attached thereto, the
“Commitment Letter”), from certain of the Lenders and the other financial institutions party thereto (collectively, the “Commitment Parties”) to the Company, or to relieve any of the Commitment Parties of their
obligations thereunder, all of which remain outstanding. 
 ARTICLE II 

EFFECTIVENESS 
 This
Consent shall become effective as of the day and year set forth above (the “Consent Effective Date”) upon receipt by the Administrative Agent of a copy of this Consent, duly executed by the Company and the Required Lenders. 

ARTICLE III 

MISCELLANEOUS 

3.1    Terms of Loan Documents. On and after the Consent Effective Date, all references to the
Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as modified by this Consent. Except as specifically modified hereby or otherwise consented, the Loan Documents are hereby ratified and confirmed and shall
remain in full force and effect according to their respective terms. 
 3.2    Representations and
Warranties. The Company represents and warrants as follows: 
 (a)    The Company has the
corporate power and authority to execute and deliver this Consent and to perform its obligations hereunder and has taken all necessary action to authorize the execution, delivery and performance by it of this Consent. The Company has duly executed
and delivered this Consent, and it constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law). 

(b)    After giving effect to this Consent, no Default or Event of Default exists. 

3.3    Loan Document. This Consent shall constitute a Loan Document under the terms of the
Credit Agreement. 
 3.4    Expenses. The Company agrees to pay all reasonable costs and
expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Consent, including without limitation the reasonable fees and expenses of the Administrative Agent’s legal counsel. 

  
 3 

 3.5    Entirety. Subject to
Section 1.3, this Consent and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter
hereof. 
 3.6    Counterparts; Telecopy. This Consent may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Consent or any other document required to
be delivered hereunder, by fax transmission or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Consent. Without limiting
the foregoing, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart. 

3.7    GOVERNING LAW. THIS CONSENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK. 
 3.8    Successors and Assigns. This Consent shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 

3.9    Consent to Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction,
service of process and waiver of jury trial provisions set forth in Sections 10.14 and 10.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 4 

 IN WITNESS WHEREOF the parties hereto have caused this Consent to be duly executed on the
date first above written. 
  

			
	GREIF, INC.
		
	By:	 	 /s/ David Lloyd

	Name:	 	David Lloyd
	Title:	 	Vice President and Treasurer

							
	ADMINISTRATIVE AGENT:	 		 	JPMORGAN CHASE BANK, NATIONAL
		 		 	ASSOCIATION,
		 		 	as Administrative Agent
				
		 		 	By:	 	 /s/ Eric B. Bergeson

		 		 	Name:	 	Eric B. Bergeson
		 		 	Title:	 	Authorized Officer

							
	LENDERS:	 		 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
		 		 	  as a Lender
				
		 		 	By:	 	 /s/ Eric B. Bergeson

		 		 	Name:	 	Eric B. Bergeson
		 		 	Title:	 	Authorized Officer
			
		 		 	BANK OF AMERICA, N.A.,
		 		 	  as a Lender
				
		 		 	By:	 	 /s/ Michael G. Kousaie

		 		 	Name:	 	Michael G. Kousaie
		 		 	Title:	 	Vice President
			
		 		 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
		 		 	  as a Lender and a L/C Issuer
				
		 		 	By:	 	 /s/ Andrew G. Payne

		 		 	Name:	 	Andrew G. Payne
		 		 	Title:	 	Director
			
		 		 	CITIZEN BANK, N.A.,
		 		 	  as a Lender
				
		 		 	By:	 	 /s/ Victor Notaro

		 		 	Name:	 	Victor Notaro
		 		 	Title:	 	Senior Vice President
			
		 		 	COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH
		 		 	  as a Lender
				
		 		 	By:	 	 /s/ Timothy J. Devane

		 		 	Name:	 	Timothy J. Devane
		 		 	Title:	 	Executive Director
				
		 		 	By:	 	 /s/ William Binder

		 		 	Name:	 	William Binder
		 		 	Title:	 	Executive Director

 
			
	ING BANK N.V. DUBLIN BRANCH,
	  as a Lender
		
	By:	 	 /s/ Sean Hassett

	Name:	 	Sean Hassett
	Title:	 	Director
		
	By:	 	 /s/ Ciaran Dunne

	Name:	 	Ciaran Dunne
	Title:	 	Director
	
	MUFG BANK, LTD. (f/k/a THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.)
	  as a Lender
		
	By:	 	 /s/ Samantha Schumacher

	Name:	 	Samantha Schumacher
	Title:	 	Authorized Signatory
	
	TD BANK, N.A.,
	  as a Lender
		
	By:	 	 /s/ Michele Dragonetti

	Name:	 	Michele Dragonetti
	Title:	 	Senior Vice President
	
	U.S. BANK NATIONAL ASSOCIATION,
	  as a Lender
		
	By:	 	 /s/ Matthew Fisher

	Name:	 	Matthew Fisher
	Title:	 	Vice President
	
	BRANCH BANKING AND TRUST COMPANY,
	  as a Lender
		
	By:	 	 /s/ Ryan T. Hamilton

	Name:	 	Ryan T. Hamilton
	Title:	 	Vice President

 
			
	Citibank, N.A.,
	  as a Lender
		
	By:	 	 /s/ Millie Schild

	Name:	 	Millie Schild
	Title:	 	Vice President
	
	HSBC Bank USA, National Association,
	  as a Lender
		
	By:	 	 /s/ Fik Durmus

	Name:	 	Fik Durmus
	Title:	 	Director
	
	KEYBANK NATIONAL ASSOCIATION,
	  as a Lender
		
	By:	 	 /s/ Marcel Fournier

	Name:	 	Marcel Fournier
	Title:	 	Senior Vice President
	
	PNC Bank, National Association,
	  as a Lender
		
	By:	 	 /s/ Douglas H. Klamfoth

	Name:	 	Douglas H. Klamfoth
	Title:	 	Senior Vice President
	
	THE HUNTINGTON NATIONAL BANK,
	  as a Lender
		
	By:	 	 /s/ John Ford

	Name:	 	John Ford
	Title:	 	Senior Vice President
	
	AGFIRST FARM CREDIT BANK,
	  as a Lender
		
	By:	 	 /s/ Matt Jeffords

	Name:	 	Matt Jeffords
	Title:	 	Vice President

 
			
	 Compeer Financial, PCA,

  as a Lender

		
	By:	 	 /s/ Graham J. Dee

	Name:	 	Graham J. Dee
	Title:	 	Director, Capital Markets

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