Document:

Exhibit 4.3

 

AXCELLA HEALTH INC.

 

FIFTH AMENDED AND RESTATED VOTING AGREEMENT

 

This FIFTH AMENDED AND RESTATED VOTING AGREEMENT is made and entered into as of this 30th day of November, 2018 by and among Axcella Health Inc., a Delaware corporation (the “Company”), each holder of the Company’s Series A Preferred Stock, $0.001 par value per share (“Series A Preferred Stock”), each holder of the Company’s Series B Preferred Stock, $0.001 par value per share (“Series B Preferred Stock”), each holder of the Company’s Series B-1 Preferred Stock, $0.001 par value per share (“Series B-1 Preferred Stock”), each holder of the Company’s Series C Preferred Stock, $0.001 par value per share (‘Series C Preferred Stock”), each holder of the Company’s Series D Preferred Stock, $0.001 par value per share (“Series D Preferred Stock”), and each holder of the Company’s Series E Preferred Stock, $0.001 par value per share (“Series E Preferred Stock” and together with the Series A Preferred Stock, the Series B Preferred Stock, the Series B-1 Preferred Stock, the Series C Preferred Stock, and the Series D Preferred Stock, the “Preferred Stock”) listed on Schedule A (together with any subsequent transferees who become parties hereto as “Investors” pursuant to Section 7.2 below and any subsequent purchasers of Preferred Stock who become parties hereto as “Investor” pursuant to Section 7.1(a) below, the “Investors”) and those certain stockholders of the Company listed on Schedule B (together with any subsequent stockholders, or any transferees, who become parties hereto as “Key Holders” pursuant to Sections 7.1 or 7.2 below, the “Key Holders”, and together collectively with the Investors, the “Stockholders”).

 

RECITALS

 

WHEREAS, the Company, certain of the Investors, and certain of the Key Holders are parties to the Fourth Amended and Restated Voting Agreement, dated as of February 10, 2016, as amended on August 11, 2017 and September 18, 2018 (the “Prior Agreement”);

 

WHEREAS, concurrently with the execution of this Agreement, the Company and certain of the Investor(s) are entering into a Series E Preferred Stock Purchase Agreement (as may be amended or restated from time to time, the “Purchase Agreement”) providing for the sale of shares of the Company’s Series E Preferred Stock, and in connection with the execution of the Purchase Agreement, the undersigned, constituting the required votes pursuant to Section 7.8 of the Prior Agreement, desire to amend and restate the Prior Agreement to provide the Investors with the right, among other rights, to designate the election of certain members of the board of directors of the Company (the “Board”) in accordance with the terms of this Agreement;

 

WHEREAS, the Amended and Restated Certificate of Incorporation of the Company (the “Restated Certificate”) provides that (a) the holders of record of the shares of the Company’s Preferred Stock, exclusively and as a single, separate class on an as-converted basis, shall be entitled to elect one (1) director of the Company and (b) the holders of record of the shares of Common Stock and of any other class or series of voting stock (including the Preferred Stock), exclusively and voting together as a single class, shall be entitled to elect the balance of the total number of directors of the Company; and

 

WHEREAS, the parties also desire to enter into this Agreement to set forth their agreements and understandings with respect to voting on an increase in the number of shares of

 

 

the Company’s Common Stock, $0.001 par value per share (“Common Stock”), required to provide for the conversion of the Company’s Preferred Stock and how shares of the Company’s capital stock held by them will be voted on, or tendered in connection with, an acquisition of the Company.

 

NOW, THEREFORE, the parties agree as follows:

 

1.                                      Voting Provisions Regarding Board of Directors.

 

1.1                               Size of the Board. Each Stockholder agrees to vote, or cause to be voted, all Shares (as defined below) owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that the size of the Board shall be set and remain at nine (9) directors. For purposes of this Agreement, the term “Shares” shall mean and include any securities of the Company the holders of which are entitled to vote for members of the Board, including without limitation, all shares of Common Stock and Preferred Stock, by whatever name called, now owned or subsequently acquired by a Stockholder, however acquired, whether through stock splits, stock dividends, reclassifications, recapitalizations, similar events or otherwise.

 

1.2                               Board Composition. Each Stockholder agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times in whatever manner as shall be necessary to ensure that at each annual or special meeting of stockholders at which an election of directors is held or pursuant to any written consent of the stockholders, the following persons shall be elected to the Board:

 

(a)                                 For so long as Flagship Ventures Fund IV, L.P. (“Flagship”) and its Affiliates continue to own beneficially any shares of Preferred Stock, one (1) individual designated by Flagship (the “Preferred Director”), which individual shall initially be David Epstein, to fill the directorship reserved for election by the holders of Preferred Stock, exclusively and as a separate class, pursuant to the Restated Certificate;

 

(b)                              The individual, if any, then serving as the Company’s Chief Executive Officer (the “CEO Director”), initially William R. Hinshaw, Jr., provided that if for any reason the CEO Director shall cease to serve as the Chief Executive Officer of the Company, each of the Stockholders shall promptly vote their respective Shares (i) to remove the former Chief Executive Officer from the Board if such person has not resigned as a member of the Board and (ii) to elect such person’s replacement as Chief Executive Officer of the Company as the new CEO Director;

 

(c)                                  Four (4) individuals not otherwise Affiliates (defined below) of the Company or of any Investor (provided, that an individual shall not be deemed to be an Affiliate of the Company or of any Investor solely by virtue of such individual’s ownership of capital stock of the Company), initially Gary Pisano, Dr. Cristina Rondinone, William Baird III, and Stephen Hoge, who possess relevant industry experience and are acceptable to the holders of a majority of the Shares held by the Investors;

 

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(d)                                 For so long as Flagship and its Affiliates continue to own beneficially any shares of capital stock of the Company, one (1) individual designated by Flagship, which individual shall initially be David Berry;

 

(e)                                  One (1) individual acceptable to a majority of the other members of the Board, initially Chris Viehbacher; and

 

(f)                                   For so long as Nestlé Health Science US Holdings, Inc. (“Nestlé”) and its Affiliates continues to own at least 1,498,590 shares of Series D Preferred Stock (as adjusted for any stock split, stock dividend, recapitalization, reorganization, or the like), one (1) individual designated by Nestlé and reasonably acceptable to a majority of the other members of the Board (including the Preferred Director), initially Gregory Behar.

 

To the extent that any of clauses (a) through (f) above shall not be applicable, any member of the Board who would otherwise have been designated in accordance with the terms thereof shall instead be voted upon by all the stockholders of the Company entitled to vote thereon in accordance with, and pursuant to, the Company’s Restated Certificate.

 

For purposes of this Agreement, an individual, firm, corporation, partnership, association, limited liability company, trust or any other entity (collectively, a “Person”) shall be deemed an “Affiliate” of another Person who, directly or indirectly, controls, is controlled by or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or employee of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person. Without limiting the foregoing, Flagship Ventures Fund IV, L.P., Flagship Ventures Fund IV-Rx, L.P., Flagship Ventures Fund 2007, L.P., Flagship Ventures Management, Inc., Flagship VentureLabs IV LLC, and Flagship Ventures Opportunities Fund I, L.P. shall be deemed Affiliates of one another for purposes hereof.

 

1.3                               Failure to Designate a Board Member. In the absence of any designation from the Persons or groups with the right to designate a director as specified above, the director previously designated by them and then serving shall be reelected if still eligible to serve as provided herein.

 

1.4                               Removal of Board Members. Each Stockholder also agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that:

 

(a)                                 no director elected pursuant to Sections 1.2 or 1.3 of this Agreement may be removed from office other than for cause unless (i) such removal is directed or approved by the affirmative vote of the Person(s), or of the holders of the requisite number and class or series of the shares of stock entitled under Section 1.2 to designate that director or (ii) the Person(s) originally entitled to designate or approve such director pursuant to Section 1.2 is no longer so entitled to designate or approve such director;

 

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(b)                                 any vacancies created by the resignation, removal or death of a director elected pursuant to Sections 1.2 or 1.3 shall be filled pursuant to the provisions of this Section 1; and

 

(c)                                  upon the request of any party or parties entitled to designate a director as provided in Sections 1.2(a), 1.2(c), 1.2(d), 1.2(e), or 1.2(f) to remove such director, such director shall be removed.

 

All Stockholders agree to execute any written consents required to perform the obligations of this Agreement, and the Company agrees at the request of any party entitled to designate directors to call a special meeting of stockholders for the purpose of electing directors.

 

1.5                               No Liability for Election of Recommended Directors. No Stockholder, nor any Affiliate of any Stockholder, shall have any liability as a result of designating a person for election as a director for any act or omission by such designated person in his or her capacity as a director of the Company, nor shall any Stockholder have any liability as a result of voting for any such designee in accordance with the provisions of this Agreement.

 

2.                                      Vote to Increase Authorized Common Stock. Each Stockholder agrees to vote or cause to be voted all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to increase the number of authorized shares of Common Stock from time to time to ensure that there will be sufficient shares of Common Stock available for conversion of all of the shares of Preferred Stock outstanding at any given time.

 

3.                                      Drag-Along Right.

 

3.1                               Definitions. A “Sale of the Company” shall mean either: (a) a transaction or series of related transactions in which a Person, or a group of related Persons (other than Affiliates of stockholders of the Company), acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company (a “Stock Sale”) ; or (b) a transaction that qualifies as a “Deemed Liquidation Event” as defined in the Restated Certificate.

 

3.2                               Actions to be Taken. In the event that (i) the holders of a majority of the outstanding shares of Preferred Stock voting or consenting together as a single class on an as-converted basis (the “Selling Investors”) and (ii) the Board of Directors approve a Sale of the Company in writing, specifying that this Section 3 shall apply to such transaction, then each Stockholder hereby agrees:

 

(a)                                 if such transaction requires stockholder approval, with respect to all Shares that such Stockholder owns or over which such Stockholder otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Shares in favor of, and adopt, such Sale of the Company (together with any related amendment to the Restated Certificate required in order to implement such Sale of the Company) and to vote in opposition to any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Sale of the Company;

 

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(b)                                 if such transaction is a Stock Sale, to sell the same proportion of shares of capital stock of the Company beneficially held by such Stockholder as is being sold by the Selling Investors to the Person to whom the Selling Investors propose to sell their Shares, and, except as permitted in Section 3.3 below, on the same terms and conditions as the Selling Investors;

 

(c)                                  to execute and deliver all related documentation and take such other action in support of the Sale of the Company as shall reasonably be requested by the Company or the Selling Investors in order to carry out the terms and provision of this Section 3, including without limitation executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances) and any similar or related documents;

 

(d)                                 not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Shares of the Company owned by such party or Affiliate in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically requested to do so by the acquiror in connection with the Sale of the Company;

 

(e)                                  to refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at any time with respect to such Sale of the Company; and

 

(f)                                   if the consideration to be paid in exchange for the Shares pursuant to this Section 3 includes any securities and due receipt thereof by any Stockholder would require under applicable law (i) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities or (ii) the provision to any Stockholder of any information other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors” as defined in Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), the Company may cause to be paid to any such Stockholder in lieu thereof, against surrender of the Shares which would have otherwise been sold by such Stockholder, an amount in cash equal to the fair value (as determined in good faith by the Company) of the securities which such Stockholder would otherwise receive as of the date of the issuance of such securities in exchange for the Shares.

 

3.3                               Exceptions. Notwithstanding the foregoing, a Stockholder will not be required to comply with Section 3.2 above in connection with any proposed Sale of the Company (the “Proposed Sale”) unless:

 

(a)                                 any representations and warranties to be made by such Stockholder in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such Shares, including but not limited to representations and warranties that (1) the Stockholder holds all right, title and interest in and to the Shares such Stockholder purports to hold, free and clear of all liens and encumbrances, (2) the obligations of the Stockholder in connection with the transaction have been duly authorized, if applicable, (3) the documents to be entered into by the Stockholder have been duly executed by the Stockholder and delivered to the acquirer and are enforceable against the 

 

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Stockholder in accordance with their respective terms and (4) neither the execution and delivery of documents to be entered into in connection with the transaction, nor the performance of the Stockholder’s obligations thereunder, will cause a breach or violation of the terms of any agreement, law or judgment, order or decree of any court or governmental agency applicable to the Stockholder;

 

(b)                                 the Stockholder shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with the Proposed Sale, other than the Company (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any stockholder of any of identical representations, warranties and covenants provided by all stockholders);

 

(c)                                  the liability for indemnification, if any, of such Stockholder in the Proposed Sale and for the inaccuracy of any representations and warranties made by the Company or its Stockholders in connection with such Proposed Sale, is several and not joint with any other Person (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any stockholder of any of identical representations, warranties and covenants provided by all stockholders), and is pro rata in proportion to, and does not exceed, the amount of consideration paid to such Stockholder in connection with such Proposed Sale (in accordance with the provisions of the Restated Certificate);

 

(d)                                 liability shall be limited to such Stockholder’s applicable share (determined based on the respective proceeds payable to each Stockholder in connection with such Proposed Sale in accordance with the provisions of the Restated Certificate) of a negotiated aggregate indemnification amount that applies equally to all Stockholders but that in no event exceeds the amount of consideration otherwise payable to such Stockholder in connection with such Proposed Sale, except with respect to claims related to fraud by such Stockholder, the liability for which need not be limited as to such Stockholder;

 

(e)                                  upon the consummation of the Proposed Sale, (1) each holder of each class or series of the Company’s stock will receive the same form of consideration for their shares of such class or series as is received by other holders in respect of their shares of such same class or series of stock, (2) each holder of a series of Preferred Stock will receive the same amount of consideration per share of such series of Preferred Stock as is received by other holders in respect of their shares of such same series, (3) each holder of Common Stock will receive the same amount of consideration per share of Common Stock as is received by other holders in respect of their shares of Common Stock, and (4) unless (A) the Selling Investors elect otherwise with respect to a Proposed Sale for a bona fide business purpose in the interest of the stockholders in which all holders of Preferred Stock are treated fairly (and the holders of any series of Preferred Stock are not treated in a manner disproportionately adverse as compared to the holders of other series of Preferred Stock), including the retention by the Company of some existing assets in a continuing or separate entity that is not transferred to the acquirer and (B) the holders of a majority of the outstanding shares of Series C Preferred Stock elect otherwise respect to such Proposed Sale, the aggregate consideration receivable by all holders of the Preferred Stock and Common Stock shall be allocated among the holders of Preferred Stock and Common Stock on the basis of the relative liquidation preferences to which the holders of each 

 

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respective series of Preferred Stock and the holders of Common Stock are entitled in a Deemed Liquidation Event (assuming for this purpose that the Proposed Sale is a Deemed Liquidation Event) in accordance with the Company’s Certificate of Incorporation in effect immediately prior to the Proposed Sale; and

 

(f)                                   subject to clause (e) above, requiring the same form of consideration to be available to the holders of any single class or series of capital stock, if any holders of any capital stock of the Company are given an option as to the form and amount of consideration to be received as a result of the Proposed Sale, all holders of such capital stock will be given the same option.

 

3.4                               Restrictions on Sales of Control of the Company. No Stockholder shall be a party to any Stock Sale unless all holders of Preferred Stock are allowed to participate in such transaction and the consideration received pursuant to such transaction is allocated among the parties thereto in the manner specified in the Company’s Certificate of Incorporation in effect immediately prior to the Stock Sale (as if such transaction were a Deemed Liquidation Event), unless (i) the Selling Investors and (ii) the holders of a majority of the outstanding shares of Series C Preferred Stock elect otherwise by written notice given to the Company at least ten (10) days prior to the effective date of any such transaction or series of related transactions.

 

4.                                      Remedies.

 

4.1                               Covenants of the Company. The Company agrees to use its best efforts, within the requirements of applicable law, to ensure that the rights granted under this Agreement are effective and that the parties enjoy the benefits of this Agreement. Such actions include, without limitation, the use of the Company’s best efforts to cause the nomination and election of the directors as provided in this Agreement.

 

4.2                               Irrevocable Proxy. Except as otherwise provided in this Section 4.2, each party to this Agreement hereby constitutes and appoints the President and Secretary of the Company, and a designee of the Selling Investors, and each of them, with full power of substitution, as the proxies of the party with respect to the matters set forth herein, including without limitation, election of persons as members of the Board in accordance with Section 1 hereto and votes regarding any Sale of the Company pursuant to Section 3 hereof, and hereby authorizes each of them to represent and to vote, if and only if the party (i) fails to vote or (ii) attempts to vote (whether by proxy, in person or by written consent) in a manner which is inconsistent with the terms of this Agreement, all of such party’s Shares in favor of the election of persons as members of the Board determined pursuant to and in accordance with the terms and provisions of this Agreement or of any Sale of the Company pursuant to and in accordance with the terms and provisions of Section 3 of this Agreement. The proxy granted pursuant to the immediately preceding sentence is given in consideration of the agreements and covenants of the Company and the parties in connection with the transactions contemplated by this Agreement and, as such, is coupled with an interest and shall be irrevocable unless and until this Agreement terminates or expires pursuant to Section 6 hereof. Each party hereto hereby revokes any and all previous proxies with respect to the Shares and shall not hereafter, unless and until this Agreement terminates or expires pursuant to Section 6 hereof, purport to grant any other proxy or power of attorney with respect to any of the Shares, deposit any of the Shares into a voting trust or enter into any agreement (other than this Agreement), arrangement or understanding with 

 

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any person, directly or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of the Shares, in each case, with respect to any of the matters set forth herein. Notwithstanding anything to the contrary contained herein, this Section 4.2 shall not apply to any of (i) Fidelity Select Portfolios: Biotechnology Portfolio, (ii) Fidelity Advisor Series VII: Fidelity Advisor Biotechnology Fund, (iii) Fidelity Securities Fund: Fidelity Blue Chip Growth Fund, (iv) Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund, (v) FIAM Target Date Blue Chip Growth Commingled Pool, (vi) Fidelity Growth Company Commingled Pool, (vii) Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund and (viii) Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund (collectively, the “Fidelity Investors”), or their Affiliates or  related parties, and under no circumstances shall the Fidelity Investors or their Affiliates or related parties be deemed to have granted a proxy pursuant to this Agreement.

 

4.3                               Specific Enforcement. Each party acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions of this Agreement are not performed by the parties in accordance with their specific terms or are otherwise breached. Accordingly, it is agreed that each of the Company and the Stockholders shall be entitled to an injunction to prevent breaches of this Agreement, and to specific enforcement of this Agreement and its terms and provisions in any action instituted in any court of the United States or any state having subject matter jurisdiction.

 

4.4                               Remedies Cumulative. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

5.                                      “Bad Actor” Voting Restrictions. In the event the Company proposes an offering of its securities in reliance on Rule 506 of the Securities Act, the Company intends to conduct an inquiry of all Stockholders that beneficially own 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power (each, a “20% Holder”) as to whether any 20% Holder or any Rule 506(d) Related Party of such 20% Holder is a “bad actor” within the meaning of Rule 506(d) promulgated under the Securities Act (a “Bad Actor”). If (a) any 20% Holder fails to provide any requested information to the Company within ten (10) business days of the date of the request therefor or (b) any 20% Holder indicates that it or any Rule 506(d) Related Party of such 20% Holder is a Bad Actor, then, other than in connection with any vote arising under Section 242(b)(2) of the Delaware General Corporation Law, such 20% Holder agrees that it shall not cast any vote in respect of shares of the Company’s capital stock beneficially owned by such 20% Holder that are equal to or in excess of 20% of the Company’s outstanding voting equity securities, calculated on the basis of voting power. Notwithstanding the foregoing, the voting restrictions under this Section 5 shall cease as to a 20% Holder at such time as such 20% Holder certifies or recertifies to the Company that neither it nor any of its Rule 506(d) Related Parties is a Bad Actor. For purposes of this Agreement, “Rule 506(d) Related Party” shall mean a person or entity covered by the “Bad Actor disqualification” provision of Rule 506(d) of the Securities Act.

 

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6.             Term. This Agreement shall be effective as of the date hereof and shall continue in effect until and shall terminate upon the earliest to occur of (a) the consummation of the Company’s first underwritten public offering of its Common Stock (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to its stock option, stock purchase or similar plan or an SEC Rule 145 transaction); (b) the consummation of a Sale of the Company and distribution of proceeds to or escrow for the benefit of the Stockholders in accordance with the Restated Certificate, provided that the provisions of Section 3 hereof will continue after the closing of any Sale of the Company to the extent necessary to enforce the provisions of Section 3 with respect to such Sale of the Company; and (c) termination of this Agreement in accordance with Section 7.8 below.

 

7.             Miscellaneous.

 

7.1          Additional Parties.

 

(a)           Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Preferred Stock after the date hereof, as a condition to the issuance of such shares the Company shall require that any purchaser of such shares of Preferred Stock become a party to this Agreement by executing and delivering (i) the Adoption Agreement attached to this Agreement as Exhibit A, or (ii) a counterpart signature page hereto agreeing to be bound by and subject to the terms of this Agreement as an Investor and Stockholder hereunder. In either event, each such person thereafter shall be deemed an Investor and Stockholder for all purposes under this Agreement. No action or consent by any other Stockholder shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” and “Stockholder” hereunder.

 

(b)           In the event that after the date of this Agreement, the Company enters into an agreement with any Person to issue shares of capital stock to such Person, following which such Person shall hold Shares constituting one percent (1%) or more of the Company’s then outstanding capital stock (treating for this purpose all shares of Common Stock issuable upon exercise of or conversion of outstanding options, warrants or convertible securities, as if exercised and/or converted or exchanged), then, the Company shall cause such Person, as a condition precedent to entering into such agreement, to become a party to this Agreement by executing an Adoption Agreement in the form attached hereto as Exhibit A, agreeing to be bound by and subject to the terms of this Agreement as a Stockholder and thereafter such person shall be deemed a Stockholder for all purposes under this Agreement.

 

7.2          Transfers. Each transferee or assignee of any Shares subject to this Agreement shall continue to be subject to the terms hereof, and, as a condition precedent to the Company’s recognizing such transfer, each transferee or assignee shall agree in writing to be subject to each of the terms of this Agreement by executing and delivering an Adoption Agreement substantially in the form attached hereto as Exhibit A. Upon the execution and delivery of an Adoption Agreement by any transferee, such transferee shall be deemed to be a party hereto as if such transferee were the transferor and such transferee’s signature appeared on the signature pages of this Agreement and shall be deemed to be an Investor and Stockholder, or Key Holder and Stockholder, as applicable. The Company shall not permit the transfer of the Shares subject to this Agreement on its books or issue a new certificate representing any such 

 

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Shares unless and until such transferee shall have complied with the terms of this Section 7.2. Each certificate representing the Shares subject to this Agreement if issued on or after the date of this Agreement shall be endorsed by the Company with the legend set forth in Section 7.12.

 

7.3          Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

7.4          Governing Law. This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to conflict of law principles that would result in the application of any law other than the law of the Commonwealth of Massachusetts.

 

7.5          Counterparts; Facsimile. This Agreement may be executed and delivered by facsimile transmission or electronic mail (including in .pdf format) and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

7.6          Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

7.7          Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on Schedule A or Schedule B hereto, or to the principal office of the Company and to the attention of the President or Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this Section 7.7. If notice is given to the Company, a copy (which shall not constitute notice) shall also be sent to Goodwin Procter LLP, 100 Northern Avenue, Boston, MA 02210, Attn: Kingsley Taft, Fax: (617) 523-1231.

 

7.8          Consent Required to Amend, Terminate or Waive. This Agreement may be amended or terminated and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (i) the Company; (ii) the Key Holders holding a majority of the Shares then held by the Key Holders who are then providing services to the Company as officers, 

 

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employees or consultants; and (iii) the holders of a majority of the shares of Common Stock issued or issuable upon conversion of the shares of Preferred Stock held by the Investors (voting as a single class and on an as-converted basis). Notwithstanding the foregoing:

 

(a)           this Agreement may not be amended or terminated and the observance of any term of this Agreement may not be waived with respect to any Investor or Key Holder without the written consent of such Investor or Key Holder unless such amendment, termination or waiver applies to all Investors or Key Holders, as the case may be, in the same fashion;

 

(b)           no consent of the Key Holders shall be required for any amendment or waiver if such amendment or waiver either (i) is not directly applicable to the rights of the Key Holders hereunder or (ii) does not adversely affect the rights of the Key Holders in a manner that is different from the effect on the rights of the other parties hereto, it being understood that the addition of new parties as Investors or Key Holders hereunder shall not, in itself, be deemed to be directly applicable to the rights of the Key Holders hereunder or to adversely affect the rights of the Key Holders in a manner that is different from the effect on the rights of the other parties hereto;

 

(c)           any provision hereof may be waived by the waiving party on such party’s own behalf, without the consent of any other party;

 

(d)           Section 1.2(a) and Section 1.2(d) of this Agreement may not be amended or waived without the written consent of Flagship so long as Flagship or its Affiliates continue to hold any shares of Preferred Stock;

 

(e)           Section 4.2 and Section 5 of this Agreement, as they may apply to the Fidelity Investors or their Affiliates or related parties, may not be modified or amended without the prior written consent of the Fidelity Investors, as applicable;

 

(f)            Section 1.2(f) of this Agreement may not be amended or waived without the written consent of Nestlé so long as Nestlé and its Affiliates continue to hold at least 1,498,590 shares of Series D Preferred Stock (as adjusted for any stock split, stock dividend, recapitalization, reorganization, or the like); and

 

(g)           this Agreement shall not be amended in a manner that limits or reduces the exceptions set forth in Section 3.3 hereof to an Investor’s obligations to comply with its obligations in respect of any Proposed Sale, or to otherwise increase its obligations with respect to a Proposed Sale, without the consent of such Investor.

 

The Company shall give prompt written notice of any amendment, termination or waiver hereunder to any party that did not consent in writing thereto. Any amendment, termination or waiver effected in accordance with this Section 7.8 shall be binding on each party and all of such party’s successors and permitted assigns, whether or not any such party, successor or assignee entered into or approved such amendment, termination or waiver.

 

7.9          Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other 

 

11

 

party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default previously or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

7.10        Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

7.11        Entire Agreement. This Agreement (including the Exhibits hereto), the Restated Certificate and the other Transaction Agreements (as defined in the Purchase Agreement) constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled. Upon the effectiveness of this Agreement, the Prior Agreement shall be amended, restated superseded and replaced in its entirety by this Agreement.

 

7.12        Legend on Share Certificates. Each certificate representing any Shares issued after the date hereof shall be endorsed by the Company with a legend reading substantially as follows:

 

“THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT, AS MAY BE AMENDED OR RESTATED FROM TIME TO TIME, (A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE COMPANY), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF THAT VOTING AGREEMENT, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER AND OWNERSHIP SET FORTH THEREIN.”

 

The Company, by its execution of this Agreement, agrees that it will cause the certificates evidencing the Shares issued after the date hereof to bear the legend required by this Section 7.12, and it shall supply, free of charge, a copy of this Agreement to any holder of a certificate evidencing Shares upon written request from such holder to the Company at its principal office. The parties to this Agreement do hereby agree that the failure to cause the certificates evidencing the Shares to bear the legend required by this Section 7.12 herein and/or the failure of the Company to supply, free of charge, a copy of this Agreement as provided hereunder shall not affect the validity or enforcement of this Agreement.

 

7.13        Stock Splits, Stock Dividends, etc. In the event of any issuance of Shares of the Company’s voting securities hereafter to any of the Stockholders (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or 

 

12

 

the like), such Shares shall become subject to this Agreement and shall be endorsed with the legend set forth in Section 7.12.

 

7.14        Manner of Voting. The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law.

 

7.15        Further Assurances. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.

 

7.16        Dispute Resolution. The parties hereby irrevocably and unconditionally submit to the jurisdiction of the federal and state courts located within the geographical boundaries of the United States District Court for the District of Massachusetts for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the federal and state courts located within the geographical boundaries of the United States District Court for the District of Massachusetts, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each party will bear its own costs in respect of any disputes arising under this Agreement. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Massachusetts or any court of the Commonwealth of Massachusetts having subject matter jurisdiction.

 

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

7.17        Costs of Enforcement. If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings, the non-prevailing party shall pay all costs and 

 

13

 

expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

 

7.18        Aggregation of Stock. All Shares held or acquired by a Stockholder and/or its Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement, and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

 

7.19        Spousal Consent. If any individual Stockholder is married on the date on which it enters into this Agreement and resides in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, or the Commonwealth of Puerto Rico, such Stockholder’s spouse shall execute and deliver to the Company a consent of spouse in the form of Exhibit B hereto (“Consent of Spouse”), effective on the date on which such Stockholder becomes a party to this Agreement. Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or convey to the spouse any rights in such Stockholder’s Shares that do not otherwise exist by operation of law or the agreement of the parties. If any individual Stockholder should marry or remarry subsequent to the date of this Agreement, such Stockholder shall within thirty (30) days thereafter obtain his/her new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by causing such spouse to execute and deliver a Consent of Spouse acknowledging the restrictions and obligations contained in this Agreement and agreeing and consenting to the same.

 

[Signature Page Follows]

 

14

 

IN WITNESS WHEREOF, the parties have executed this Fifth Amended and Restated Voting Agreement as of the date first written above.

 

	
COMPANY:
    	
AXCELLA HEALTH INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William R.   Hinshaw, Jr.
    
	
 
    	
Name:
    	
William R.   Hinshaw, Jr.
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
FLAGSHIP VENTURES FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
its General Partner
    
	
 
    	
 
    	
Flagship Ventures Fund   IV General Partner LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Noubar B. Afeyan,   Ph.D.
    
	
 
    	
 
    	
Name:
    	
Noubar B. Afeyan, Ph.D.
    
	
 
    	
 
    	
Title:
    	
Manager
    

 

	
 
    	
FLAGSHIP VENTURES OPPORTUNITIES   FUND I, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
its General Partner
    
	
 
    	
 
    	
Flagship Ventures   Opportunities Fund I General Partner LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Noubar B. Afeyan,   Ph.D.
    
	
 
    	
 
    	
Name:
    	
Noubar B. Afeyan, Ph.D.
    
	
 
    	
 
    	
Title:
    	
Manager
    

 

	
 
    	
FLAGSHIP VENTURES FUND IV-RX,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
its General Partner
    
	
 
    	
 
    	
Flagship Ventures Fund   IV General Partner LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Noubar B. Afeyan,   Ph.D.
    
	
 
    	
 
    	
Name:
    	
Noubar B. Afeyan, Ph.D.
    
	
 
    	
 
    	
Title:
    	
Manager
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
FIDELITY SELECT PORTFOLIOS:   BIOTECHNOLOGY PORTFOLIO
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY ADVISOR SERIES VII:   FIDELITY ADVISOR BIOTECHNOLOGY FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY SECURITIES FUND:   FIDELITY BLUE CHIP GROWTH FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY SECURITIES FUND:   FIDELITY SERIES BLUE CHIP GROWTH FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIAM TARGET DATE BLUE CHIP   GROWTH COMMINGLED POOL
    
	
 
    	
 
    
	
 
    	
By: Fidelity   Institutional Asset Management Trust Company, as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adrien Deberghes
    
	
 
    	
Name:
    	
Adrien Deberghes
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
FIDELITY GROWTH COMPANY   COMMINGLED POOL
    
	
 
    	
 
    
	
 
    	
By: Fidelity   Management & Trust Co.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY MT. VERNON STREET   TRUST: FIDELITY SERIES GROWTH COMPANY FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY MT. VERNON STREET   TRUST: FIDELITY GROWTH COMPANY FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
SMRS-TOPE LLC
    
	
 
    	
 
    
	
 
    	
By: HVST-TOPE LLC
    
	
 
    	
Its Managing Member
    
	
 
    	
 
    
	
 
    	
By: HarbourVest Partners   L.P.
    
	
 
    	
Its Manager
    
	
 
    	
 
    
	
 
    	
By: HarbourVest   Partners, LLC
    
	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ian C. Lane
    
	
 
    	
Name:
    	
Ian C. Lane
    
	
 
    	
Title:
    	
Managing Director
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
GURNET POINT L.P.
    
	
 
    	
 
    
	
 
    	
By: Waypoint   International GP LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Singleton
    
	
 
    	
Name:
    	
James Singleton
    
	
 
    	
Title:
    	
A Manager
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
NESTLÉ HEALTH SCIENCE US HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Pepin
    
	
 
    	
Name:
    	
James Pepin
    
	
 
    	
Title:
    	
President
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
ALEXANDRIA VENTURE INVESTMENTS,   LLC, A DELAWARE LIMITED LIABILITY COMPANY
    
	
 
    	
 
    
	
 
    	
By: ALEXANDRIA REAL   ESTATE EQUITIES, INC, a Maryland corporation, managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Aaron Jacobson
    
	
 
    	
Name:
    	
Aaron Jacobson
    
	
 
    	
Title:
    	
SVP-Venture Counsel
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

	
INVESTORS:
    	
CONTROL EMPRESARIAL DE CAPITALES, S.A. DE C.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Victor Manuel Gutierrez Lopez
    
	
 
    	
Name:
    	
Victor Manuel Gutierrez Lopez
    
	
 
    	
Title:
    	
Attorney-in-Fact
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED VOTING AGREEMENT]

 

 

SCHEDULE A

 

INVESTORS

 

Flagship Ventures Fund IV, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Flagship Ventures Fund 2007, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Flagship Ventures Fund IV-Rx, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Flagship Ventures Opportunities Fund I, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Infoseek Services Limited

Trident Chambers

P.O. Box 146

Road Town, Tortola

British Virgin Islands

 

GHF Inc.

Walkers SPV Limited

Walker House

87 Mary Street

George Town, Grand Cayman KY 1-9002

Cayman Islands

 

Alexandria Venture Investments, LLC

385 E. Colorado Blvd., Ste 299

Pasadena, CA 91101

 

Graham Allison

69 Pinehurst Rd

Belmont, MA 02478

 

Garo H. Armen IRA

c/o Merrill Lynch

2200 Fletcher Avenue

Fort Lee, NJ 07024

Attn: Greg Amerkanian 

 

Control Empresarial de Capitales, S.A. de C.V.

Paseo de las Palmas 750

Lomas de Chapultepec

Mexico, D.F., 11000

 

Fidelity Select Portfolios: Biotechnology Portfolio

Brown Brothers Harriman & Co.
 525 Washington Blvd
 Jersey City NJ 07310
 Attn: Michael Lerman 15th Floor 

 

 

Corporate Actions

 

Fidelity Advisor Series VII: Fidelity Advisor Biotechnology Fund

State Street Bank & Trust
 PO Box 5756
 Boston, Massachusetts 02206
 Attn: Bangle & Co fbo Fidelity Advisor Series VII: Fidelity Advisor Biotechnology Fund

 

Fidelity Securities Fund: Fidelity Blue Chip Growth Fund

M. Gardiner & Co.
 C/o JPMorgan Chase Bank, N.A.
 PO Box 35308
 Newark, N.J. 07101-8006

 

Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund

State Street Bank & Trust
 PO Box 5756   
 Boston, Massachusetts 02206
 Attn: Wavechart & Co fbo Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund

 

FIAM Target Date Blue Chip Growth Commingled Pool

Pyramis Global Advisors Trust Company, as Trustee

State Street Bank & Trust
 PO Box 5756   
 Boston, Massachusetts 02206
 Attn: FLAPPER CO fbo Pyramis Lifecycle Blue Chip Growth Commingled Pool

 

Gurnet Point L.P.

Waypoint Capital Inc.

55 Cambridge Parkway

Suite 401

Cambridge, MA 02142

 

Nestlé Health Science US Holdings, Inc.

383 Main Ave 5th Floor

Norwalk, CT 06851

 

AFOS, LLC

55 E 52nd Street

New York, New York 10022”

 

Enso Ventures 2 Limited

Suite C1

Hirzel Court

St. Peter Port

Guernsey

GY1 2 NH

UK

 

Fidelity Growth Company Commingled Pool

Fidelity Management & Trust Co.

Mag & Co.

c/o Brown Brothers Harriman & Co.

Attn: Corporate Actions /Vault

140 Broadway

 

 

New York, NY 10005

 

Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund

State Street Bank & Trust

PO Box 5756

Boston, Massachusetts 02206

Attn: WAVELENGTH + CO Fidelity Mt. Vernon Street Trust: Fidelity

Series Growth Company Fund

 

Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund

BNY Mellon

Attn: Stacey Wolfe

525 William Penn Place Rm 0400

Pittsburgh, PA 15259

 

SMRS-TOPE LLC

c/o HarbourVest Partners, LLC

One Financial Center, 44th Floor

Boston, MA 02111

Attention: Jackie Peradotto; Alex Brown

Email: jPeradotto@harbourvest.com; abrown@harbourvest.com

 

with copy to:

 

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

Attention: Edward Drew Dutton

Email: eddutton@debevoise.com

 

 

SCHEDULE B

 

KEY HOLDERS

 

Bruce Bistrian

George Church

Robert Connelly

Charles L. Cooney

Peter Hutt

David Berry

Jerry Hjelle Advisor, LLC

Geoff von Maltzahn

Harold McGee

Garry E. Menzel

Jeff Moore

Peter Mueller

Thomas Leggett

Tony Tramontin

Manu Chakravarthy

David Epstein

William Hinshaw

Stephen Mitchener

Paul Fehlner

 

 

EXHIBIT A

 

ADOPTION AGREEMENT

 

This Adoption Agreement (“Adoption Agreement”) is executed on                    , 20  , by the undersigned (the “Holder”) pursuant to the terms of that certain Fifth Amended and Restated Voting Agreement dated as of November 30, 2018 (the “Agreement”), by and among the Company and certain of its Stockholders, as such Agreement may be amended or amended and restated hereafter. Capitalized terms used but not defined in this Adoption Agreement shall have the respective meanings ascribed to such terms in the Agreement. By the execution of this Adoption Agreement, the Holder agrees as follows.

 

1.1                               Acknowledgement. Holder acknowledges that Holder is acquiring certain shares of the capital stock of the Company (the “Stock”)[ or options, warrants or other rights to purchase such Stock (the “Options”)], for one of the following reasons (Check the correct box):

 

o                                    as a transferee of Shares from a party in such party’s capacity as an “Investor” bound by the Agreement, and after such transfer, Holder shall be considered an “Investor” and a “Stockholder” for all purposes of the Agreement.

 

o                                    as a transferee of Shares from a party in such party’s capacity as a “Key Holder” bound by the Agreement, and after such transfer, Holder shall be considered a “Key Holder” and a “Stockholder” for all purposes of the Agreement.

 

o                                    as a new Investor in accordance with Section 7.1(a) of the Agreement, in which case Holder will be an “Investor” and a “Stockholder” for all purposes of the Agreement.

 

o                                    in accordance with Section 7.1(b) of the Agreement, as a new party who is not a new Investor, in which case Holder will be a “Stockholder” for all purposes of the Agreement.

 

1.2                               Agreement. Holder hereby (a) agrees that the Stock [Options], and any other shares of capital stock or securities required by the Agreement to be bound thereby, shall be bound by and subject to the terms of the Agreement and (b) adopts the Agreement with the same force and effect as if Holder were originally a party thereto.

 

1.3                               Notice. Any notice required or permitted by the Agreement shall be given to Holder at the address or facsimile number listed below Holder’s signature hereto.

 

	
HOLDER:
    	
 
    	
 
    	
ACCEPTED   AND AGREED:
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
AXCELLA   HEALTH INC.
    
	
Name   and Title of Signatory
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Facsimile   Number:
    	
 
    	
 
    	
 
    
								

 

 

EXHIBIT B

 

CONSENT OF SPOUSE

 

I, [                    ], spouse of [              ], acknowledge that I have read the Fifth Amended and Restated Voting Agreement, dated as of November 30, 2018, to which this Consent is attached as Exhibit B (the “Agreement”), and that I know the contents of the Agreement. I am aware that the Agreement contains provisions regarding the voting and transfer of shares of capital stock of the Company that my spouse may own, including any interest I might have therein.

 

I hereby agree that my interest, if any, in any shares of capital stock of the Company subject to the Agreement shall be irrevocably bound by the Agreement and further understand and agree that any community property interest I may have in such shares of capital stock of the Company shall be similarly bound by the Agreement.

 

I am aware that the legal, financial and related matters contained in the Agreement are complex and that I am free to seek independent professional guidance or counsel with respect to this Consent. I have either sought such guidance or counsel or determined after reviewing the Agreement carefully that I will waive such right.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Name of Key Holder’s Spouse, if any]Exhibit 4.4

 

AXCELLA HEALTH INC.

 

FIFTH AMENDED AND RESTATED
 RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT

 

This FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT is made as of November 30, 2018 by and among Axcella Health Inc., a Delaware corporation (the “Company”), the Investors listed on Schedule A and any subsequent purchasers of Preferred Stock who become parties hereto as “Investors” pursuant to Section 6.16 below and the Key Holders listed on Schedule B.

 

WHEREAS, each Key Holder is the beneficial owner of shares of Capital Stock, or of options to purchase Common Stock;

 

WHEREAS, the Company, certain of the Investors, and certain of the Key Holders are parties to the Fourth Amended and Restated Right of First Refusal and Co-Sale Agreement, dated as of February 10, 2016, as amended on August 11, 2017 (the “Prior Agreement”);

 

WHEREAS, the Company and certain of the Investor(s) are parties to the Series E Preferred Stock Purchase Agreement, of even date herewith (as may be amended or restated from time to time, the “Purchase Agreement”), pursuant to which certain of the Investor(s) have agreed to purchase shares of the Series E Preferred Stock of the Company, par value $0.001 per share (“Series E Preferred Stock”); and

 

WHEREAS, the undersigned, constituting the required votes pursuant to Section 6.8 of the Prior Agreement, desire to further induce such Investor(s) to purchase the Series E Preferred Stock by amending and restating the Prior Agreement.

 

NOW, THEREFORE, the Company, the Key Holders and the Investors agree as follows:

 

1.                                      Definitions.

 

“Affiliate” means, with respect to any specified Investor, any other Person who directly or indirectly, controls, is controlled by or is under common control with such Investor, including without limitation any general partner, managing member, officer or director of such Investor, or any venture capital or other investment fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company or investment adviser with, such Investor. Without limiting the foregoing, Flagship Ventures Fund IV, L.P., Flagship Ventures Fund IV-Rx, L.P., Flagship Ventures Fund 2007, L.P., Flagship Ventures Management, Inc., Flagship VentureLabs IV LLC, and Flagship Ventures Opportunities Fund I, L.P. shall be deemed Affiliates of one another for purposes hereof.

 

“Capital Stock” means (a) shares of Common Stock and Preferred Stock (whether now outstanding or hereafter issued in any context), (b) shares of Common Stock issued or issuable upon conversion of Preferred Stock and (c) shares of Common Stock issued or issuable upon exercise or conversion, as applicable, of stock options, warrants or other convertible securities of the Company, in each case now owned or subsequently acquired by any Key Holder, any 

 

 

Investor,  or their respective successors or permitted transferees or assigns. For purposes of the number of shares of Capital Stock held by an Investor or Key Holder (or any other calculation based thereon), all shares of Preferred Stock shall be deemed to have been converted into Common Stock at the then applicable conversion ratio.

 

“Common Stock” means shares of Common Stock of the Company, $0.001 par value per share.

 

“Fidelity Investors” means (i) Fidelity Select Portfolios: Biotechnology Portfolio, (ii) Fidelity Advisor Series VII: Fidelity Advisor Biotechnology Fund, (iii) Fidelity Securities Fund: Fidelity Blue Chip Growth Fund, (iv) Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund, (v) FIAM Target Date Blue Chip Growth Comingled Pool, (vi) Fidelity Growth Company Comingled Pool, (vii) Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Fund and (viii) Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund.

 

“Investor Notice” means written notice from an Investor notifying the Company and the selling Key Holder that such Investor intends to exercise its Right of First Refusal as to a portion of the Transfer Stock with respect to any Proposed Key Holder Transfer.

 

“Investors” means the Persons named on Schedule A hereto, each Person to whom the rights of an Investor are assigned pursuant to Section 6.9, any Person deemed an Investor pursuant to Section 6.16, and any one of them, as the context may require; provided, however, that any such Person shall cease to be considered an Investor for purposes of this Agreement at any time such Person and his, her or its Affiliates collectively, or, with respect to the Fidelity Investors, the Fidelity Investors collectively, hold fewer than 150,000 shares of Capital Stock (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction).

 

“Key Holders” means the Persons named on Schedule B hereto, each Person to whom the rights of a Key Holder are assigned pursuant to Section 3.1, each Person who hereafter becomes a signatory to this Agreement pursuant to Section 6.9 or 6.17 and any one of them, as the context may require.

 

“Person” means an individual, firm, corporation, partnership, association, limited liability company, trust or any other entity.

 

“Preferred Stock” means collectively, all shares of Series A Preferred Stock, Series B Preferred Stock, Series B-1 Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, and Series E Preferred Stock.

 

“Proposed Key Holder Transfer” means any assignment, sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of or any other like transfer or encumbering of any Transfer Stock (or any interest therein) proposed by any of the Key Holders.

 

“Proposed Transfer Notice” means written notice from a Key Holder setting forth the terms and conditions of a Proposed Key Holder Transfer.

 

 

“Prospective Transferee” means any Person to whom a Key Holder proposes to make a Proposed Key Holder Transfer.

 

“Right of Co-Sale” means the right, but not an obligation, of an Investor to participate in a Proposed Key Holder Transfer on the terms and conditions specified in the Proposed Transfer Notice.

 

“Right of First Refusal” means the right, but not an obligation, of each Investor to purchase up to its pro rata portion (based upon the total number of shares of Capital Stock then held by all Investors) of any Transfer Stock, on the terms and conditions specified in the Proposed Transfer Notice.

 

“Series A Preferred Stock” means Series A Preferred Stock of the Company, $0.001 par value per share.

 

“Series B Preferred Stock” means Series B Preferred Stock of the Company, $0.001 par value per share.

 

“Series B-1 Preferred Stock” means Series B-1 Preferred Stock of the Company, $0.001 par value per share.

 

“Series C Preferred Stock” means Series C Preferred Stock of the Company, $0.001 par value per share.

 

“Series D Preferred Stock” means Series D Preferred Stock of the Company, $0.001 par value per share.

 

“Transfer Stock” means shares of Capital Stock owned by a Key Holder, or issued to a Key Holder after the date hereof (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like), but does not include any shares of Preferred Stock or Common Stock issued or issuable upon conversion of Preferred Stock.

 

“Undersubscription Notice” means written notice from an Investor notifying the Company and the selling Key Holder that such Investor intends to exercise its option to purchase all or any portion of the Transfer Stock not purchased pursuant to the Right of First Refusal.

 

2.                                      Agreement among the Company, the Investors and the Key Holders.

 

2.1                               Right of First Refusal.

 

(a)                                 Grant of Right of First Refusal to Investors. Subject to the terms of Section 3 below, each Key Holder hereby unconditionally and irrevocably grants to the Investors a Right of First Refusal to purchase all or any portion of the Transfer Stock that such Key Holder may propose to transfer in a Proposed Key Holder Transfer, at the same price and on the same terms and conditions as those offered to the Prospective Transferee.

 

(b)                                 Notice. Each Key Holder proposing to make a Proposed Key Holder Transfer must deliver a Proposed Transfer Notice to the Company and each Investor not 

 

 

later than forty-five (45) days prior to the consummation of such Proposed Key Holder Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including price and form of consideration) of the Proposed Key Holder Transfer and the identity of the Prospective  Transferee and the intended date of the Proposed Key Holder Transfer. To exercise its Right of First Refusal under this Section 2, an Investor must deliver an Investor Notice to the selling Key Holder and the Company within fifteen (15) days after delivery of the Proposed Transfer Notice. In the event of a conflict between this Agreement and any other agreement that may have been entered into by a Key Holder with the Company that contains a preexisting right of first refusal, the Company and the Key Holder acknowledge and agree that the terms of this Agreement shall control, and the Company shall not exercise any preexisting right of first refusal of the Company without the prior written consent of the Investors holding a majority of the shares of Capital Stock (other than Transfer Stock) then held by the Investors.

 

(c)                                  Undersubscription of Transfer Stock. If options to purchase have been exercised by the Investors with respect to some but not all of the Transfer Stock by the end of the 15-day period specified in Section 2.1(b)) (the “Investor Notice Period”), then the Company shall, immediately after the expiration of the Investor Notice Period, send written notice (the “Company Undersubscription Notice”) to those Investors who fully exercised their Right of First Refusal within the Investor Notice Period (the “Exercising Investors”). Each Exercising Investor shall, subject to the provisions of this Section 2.1(c), have an additional option to purchase all or any part of the balance of any such remaining unsubscribed shares of Transfer Stock on the terms and conditions set forth in the Proposed Transfer Notice. To exercise such option, an Exercising Investor must deliver an Undersubscription Notice to the selling Key Holder and the Company within ten (10) days after the expiration of the Investor Notice Period. In the event there are two or more such Exercising Investors that choose to exercise the last-mentioned option for a total number of remaining shares in excess of the number available, the remaining shares available for purchase under this Section 2.1(c) shall be allocated to such Exercising Investors pro rata based on the number of shares of Transfer Stock such Exercising Investors have elected to purchase pursuant to the Right of First Refusal (without giving effect to any shares of Transfer Stock that any such Exercising Investor has elected to purchase pursuant to the Company Undersubscription Notice). If the options to purchase the remaining shares are exercised in full by the Exercising Investors, the Company shall immediately notify all of the Exercising Investors and the selling Key Holder of that fact.

 

(d)                                 Consideration; Closing. If the consideration proposed to be paid for the Transfer Stock is in property, services or other non-cash consideration, the fair market value of the consideration shall be as determined in good faith by the Company’s Board of Directors. If any Investor cannot for any reason pay for the Transfer Stock in the same form of non-cash consideration, such Investor may pay the cash value equivalent thereof, as determined in good faith by the Board of Directors. The closing of the purchase of Transfer Stock by the Investors shall take place, and all payments from the Investors shall have been delivered to the selling Key Holder, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Key Holder Transfer and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice.

 

 

2.2                               Right of Co-Sale.

 

(a)                                 Exercise of Right. If any Transfer Stock subject to a Proposed Key Holder Transfer is not purchased pursuant to Section 2.1 above and thereafter is to be sold to a Prospective Transferee, each respective Investor may elect to exercise its Right of Co-Sale and participate on a pro rata basis in the Proposed Key Holder Transfer as set forth in Section 2.2(b) below and otherwise on the same terms and conditions specified in the Proposed Transfer Notice (provided that if an Investor wishes to sell Preferred Stock, the price set forth in the Proposed Transfer Notice shall be appropriately adjusted based on the conversion ratio of the Preferred Stock into Common Stock). Each Investor who desires to exercise its Right of Co-Sale must give the selling Key Holder written notice to that effect within fifteen (15) days after the expiration of the Investor Notice Period described above, and upon giving such notice such Investor shall be deemed to have effectively exercised the Right of Co-Sale.

 

(b)                                 Shares Includable. Each Investor who timely exercises such Investor’s Right of Co-Sale by delivering the written notice provided for above in Section 2.2(a) may include in the Proposed Key Holder Transfer all or any part of such Investor’s Capital Stock equal to the product obtained by multiplying (i) the aggregate number of shares of Transfer Stock subject to the Proposed Key Holder Transfer (excluding shares purchased by the Investors pursuant to the Right of First Refusal) by (ii) a fraction, the numerator of which is the number of shares of Capital Stock owned by such Investor immediately before consummation of the Proposed Key Holder Transfer (including any shares that such Investor has agreed to purchase pursuant to the Right of First Refusal but excluding any Transfer Stock) and the denominator of which is the total number of shares of Capital Stock owned, in the aggregate, by all Investors immediately prior to the consummation of the Proposed Key Holder Transfer (including any shares that all Investors have collectively agreed to purchase pursuant to the Right of First Refusal but excluding any Transfer Stock), plus, without duplication, the number of shares of Transfer Stock held by the selling Key Holder. To the extent one or more of the Investors exercise such right of participation in accordance with the terms and conditions set forth herein, the number of shares of Transfer Stock that the selling Key Holder may sell in the Proposed Key Holder Transfer shall be correspondingly reduced.

 

(c)                                  Delivery of Certificates. Each Investor shall effect its participation in the Proposed Key Holder Transfer by delivering to the transferring Key Holder, no later than fifteen (15) days after such Investor’s exercise of the Right of Co-Sale, one or more stock certificates, properly endorsed for transfer to the Prospective Transferee, representing:

 

(i)                                     the number of shares of Common Stock that such Investor elects to include in the Proposed Key Holder Transfer; or

 

(ii)                                  the number of shares of Preferred Stock that is at such time convertible into the number of shares of Common Stock that such Investor elects to include in the Proposed Key Holder Transfer; provided, however, that if the Prospective Transferee objects to the delivery of convertible Preferred Stock in lieu of Common Stock, such Investor shall first convert the Preferred Stock into Common Stock and deliver Common Stock as provided above. The Company agrees to make any such conversion concurrent with and contingent upon the actual transfer of such shares to the Prospective Transferee.

 

 

(d)                                 Purchase Agreement. The parties hereby agree that the terms and conditions of any sale pursuant to this Section 2.2 will be memorialized in, and governed by, a written purchase and sale agreement with customary terms and provisions for such a transaction and the parties further covenant and agree to enter into such an agreement as a condition precedent to any sale or other transfer pursuant to this Section 2.2.

 

(e)                                  Deliveries. Each stock certificate an Investor delivers to the selling Key Holder pursuant to Section 2.2(c) above will be transferred to the Prospective Transferee against payment therefor in consummation of the sale of the Transfer Stock pursuant to the terms and conditions specified in the Proposed Transfer Notice and the purchase and sale agreement, and the selling Key Holder shall concurrently therewith remit or direct payment to each Investor the portion of the sale proceeds to which such Investor is entitled by reason of its participation in such sale. If any Prospective Transferee or Transferees refuse(s) to purchase securities subject to the Right of Co-Sale from any Investor exercising its Right of Co-Sale hereunder, no Key Holder may sell any Transfer Stock to such Prospective Transferee or Transferees unless and until, simultaneously with such sale, such Key Holder purchases all securities subject to the Right of Co-Sale from such Investor on the same terms and conditions (including the proposed purchase price) as set forth in the Proposed Transfer Notice.

 

(f)                                   Additional Compliance. If any Proposed Key Holder Transfer is not consummated within forty-five (45) days after receipt of the Proposed Transfer Notice by the Company, the Key Holders proposing the Proposed Key Holder Transfer may not sell any Transfer Stock unless they first comply in full with each provision of this Section 2. The exercise or election not to exercise any right by any Investor hereunder shall not adversely affect its right to participate in any other sales of Transfer Stock subject to this Section 2.2.

 

2.3                               Effect of Failure to Comply.

 

(a)                                 Transfer Void; Equitable Relief. Any Proposed Key Holder Transfer not made in compliance with the requirements of this Agreement shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall not be recognized by the Company. Each party hereto acknowledges and agrees that any breach of this Agreement would result in substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate. Therefore, the parties hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective orders, injunctive relief and other remedies available at law or in equity (including, without limitation, seeking specific performance or the rescission of purchases, sales and other transfers of Transfer Stock not made in strict compliance with this Agreement).

 

(b)                                 Violation of First Refusal Right. If any Key Holder becomes obligated to sell any Transfer Stock to any Investor under this Agreement and fails to deliver such Transfer Stock in accordance with the terms of this Agreement, such Investor may, at its option, in addition to all other remedies it may have, send to such Key Holder the purchase price for such Transfer Stock as is herein specified and transfer to the name of such Investor (or request that the Company effect such transfer in the name of an Investor) on the Company’s books the certificate or certificates representing the Transfer Stock to be sold.

 

 

(c)                                  Violation of Co-Sale Right. If any Key Holder purports to sell any Transfer Stock in contravention of the Right of Co-Sale (a “Prohibited Transfer”), each Investor who desires to exercise its Right of Co-Sale under Section 2.2 may, in addition to such remedies as may be available by law, in equity or hereunder, require such Key Holder to purchase from such Investor the type and number of shares of Capital Stock that such Investor would have been entitled to sell to the Prospective Transferee under Section 2.2 had the Prohibited Transfer been effected pursuant to and in compliance with the terms of Section 2.2. The sale will be made on the same terms and subject to the same conditions as would have applied had the Key Holder not made the Prohibited Transfer, except that the sale (including, without limitation, the delivery of the purchase price) must be made within ninety (90) days after the Investor learns of the Prohibited Transfer, as opposed to the timeframe proscribed in Section 2.2. Such Key Holder shall also reimburse each Investor for any and all reasonable and documented out-of-pocket fees and expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Investor’s rights under Section 2.2.

 

3.                                      Exempt Transfers.

 

3.1                               Exempted Transfers. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Sections 2.1 and 2.2 shall not apply: (a) in the case of a Key Holder that is an entity, upon a transfer by such Key Holder to its stockholders, members, partners or other equity holders, (b) to a repurchase of Transfer Stock from a Key Holder by the Company at a price no greater than that originally paid by such Key Holder for such Transfer Stock and pursuant to an agreement containing vesting and/or repurchase provisions approved by the Board of Directors, (c) in the case of a Key Holder that is a natural person, upon a transfer of Transfer Stock by such Key Holder made for bona fide estate planning purposes, either during his or her lifetime or on death by will or intestacy to his or her spouse, child (natural or adopted), or any other direct lineal descendant of such Key Holder (or his or her spouse) (all of the foregoing collectively referred to as “family members”), or any custodian or trustee of any trust, partnership or limited liability company for the benefit of, or the ownership interests of which are owned wholly by, such Key Holder or any such family members or (d) to a transfer of Transfer Stock to any other Person approved by the Company’s Board of Directors, including the Preferred Director (as defined in the Company’s Certificate of Incorporation); provided that in the case of clauses (a), (c) or (d), the Key Holder shall deliver prior written notice to the Investors of such pledge, gift or transfer and such shares of Transfer Stock shall at all times remain subject to the terms and restrictions set forth in this Agreement and such transferee shall, as a condition to such issuance, deliver a counterpart signature page to this Agreement as confirmation that such transferee shall be bound by all the terms and conditions of this Agreement as a Key Holder (but only with respect to the securities so transferred to the transferee), including the obligations of a Key Holder with respect to Proposed Key Holder Transfers of such Transfer Stock pursuant to Section 2; and provided, further, in the case of any transfer pursuant to clause (a) or (c) above, that such transfer is made pursuant to a transaction in which there is no consideration actually paid for such transfer.

 

3.2                               Exempted Offerings. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Section 2 shall not apply to the sale of any Transfer Stock (a) to the public in an offering pursuant to an effective registration statement under the Securities 

 

 

Act of 1933, as amended, or (b) pursuant to a Deemed Liquidation Event (as defined in the Company’s Certificate of Incorporation).

 

3.3                               Prohibited Transferees. Notwithstanding the foregoing, no Key Holder shall transfer any Transfer Stock to (a) any entity which, in the determination of the Company’s Board of Directors, directly or indirectly competes with the Company or (b) any customer, distributor or supplier of the Company, if the Company’s Board of Directors should determine that such transfer would result in such customer, distributor or supplier receiving information that would place the Company at a competitive disadvantage with respect to such customer, distributor or supplier.

 

4.                                      Legend. Each certificate representing shares of Transfer Stock held by the Key Holders or issued to any permitted transferee in connection with a transfer permitted by Section 3.1(a) hereof shall be endorsed with the following legend:

 

THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT BY AND AMONG THE STOCKHOLDER, THE CORPORATION AND CERTAIN OTHER HOLDERS OF STOCK OF THE CORPORATION, AS MAY BE AMENDED OR RESTATED FROM TIME TO TIME. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

 

Each Key Holder agrees that the Company may instruct its transfer agent to impose transfer restrictions on the shares represented by certificates bearing the legend referred to in this Section 4 above to enforce the provisions of this Agreement, and the Company agrees to promptly do so. The legend shall be removed upon termination of this Agreement at the request of the holder.

 

5.                                      Lock-Up.

 

5.1                               Agreement to Lock-Up. Each Key Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of shares of Common Stock in its initial public offering (the “IPO”), and ending on the date specified by the Company and the managing underwriter (such period not to exceed l80 days), which period may be extended upon the request of the managing underwriter, to the extent required by any FINRA rules, for an additional period of up to fifteen (15) days if the Company issues or proposes to issue an earnings or other public release within fifteen (15) days of the expiration of the 180-day lock-up period) (a) lend, offer, pledge, 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 Capital Stock held immediately prior to the effectiveness of the registration statement for the IPO or (b) enter into 

 

 

any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Capital Stock, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Capital Stock or other securities, in cash or otherwise. The foregoing provisions of this Section 5 shall not apply to (i) the sale of any shares to an underwriter pursuant to an underwriting agreement, (ii) any shares purchased in the IPO, or (iii) any shares purchased in open market transactions following the IPO, and shall only be applicable to the Key Holders if all officers and directors are subject to the same restrictions and the Company uses commercially  reasonable efforts to obtain a similar agreement from all stockholders individually owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to the conversion into Common Stock of all outstanding shares of the Company’s preferred stock). The underwriters in connection with the IPO are intended third party beneficiaries of this Section 5 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Key Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in the IPO that are consistent with this Section 5 or that are necessary to give further effect thereto.

 

5.2                               Stop Transfer Instructions. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the shares of Capital Stock of each Key Holder (and transferees and assignees thereof) until the end of such restricted period.

 

6.                                      Miscellaneous.

 

6.1                               Term. This Agreement shall automatically terminate upon the earlier of (a) immediately prior to the consummation of the Company’s IPO and (b) the consummation of a Deemed Liquidation Event (as defined in the Company’s Certificate of Incorporation).

 

6.2                               Stock Split. All references to numbers of shares in this Agreement shall be appropriately adjusted to reflect any stock dividend, split, combination or other recapitalization affecting the Capital Stock occurring after the date of this Agreement.

 

6.3                               Ownership. Each Key Holder represents and warrants that such Key Holder is the sole legal and beneficial owner of the shares of Transfer Stock subject to this Agreement and that no other person or entity has any interest in such shares (other than (a) a community property interest as to which the holder thereof has acknowledged and agreed in writing to the restrictions and obligations hereunder and (b) the Company pursuant to pledges granted by Key Holders in connection with share purchase loans from the Company).

 

6.4                               Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of the Commonwealth of Massachusetts and to the jurisdiction of the United States District Court for the District of Massachusetts for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of the Commonwealth of Massachusetts or the United States District Court for the District of Massachusetts, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, 

 

 

that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each party will bear its own costs in respect of any disputes arising under this Agreement. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Massachusetts or any court of the Commonwealth of Massachusetts having subject matter jurisdiction.

 

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

6.5                               Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on Schedule A or Schedule B hereof, as the case may be, or to such email address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 6.5. If notice is given to the Company, it shall be sent to the attention of the Company’s President or Chief Executive Officer, at the principal offices of the Company, and a copy (which shall not constitute notice) shall also be sent to Goodwin Procter LLP, 100 Northern Avenue, Boston, MA 02210, Attn: Kingsley Taft, Fax: (617) 523-1231.

 

6.6                               Entire Agreement. This Agreement (including the Exhibits and Schedules hereto) constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled. Upon the effectiveness of this Agreement, the Prior Agreement shall be amended, restated superseded and replaced in its entirety by this Agreement.

 

 

6.7                               Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

6.8                               Amendment; Waiver and Termination. This Agreement may be amended, modified or terminated (other than pursuant to Section 6.1 above) and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (a) the Company, (b) the Key Holders holding a majority of the shares of Transfer Stock then held by all of the Key Holders who are then providing services to the Company as officers, employees or consultants and (c) the holders of a majority of the shares of Common Stock issued or issuable upon conversion of the then outstanding shares of Preferred Stock held by the Investors (voting as a single class and on an as-converted basis). Any amendment, modification, termination or waiver so effected shall be binding upon the Company, the Investors, the Key Holders and all of their respective successors and permitted assigns whether or not such party, assignee or other stockholder entered into or approved such amendment, modification, termination or waiver. Notwithstanding the foregoing, (i) this Agreement may not be amended, modified or terminated and the observance of any term hereunder may not be waived with respect to any Investor (including the Fidelity Investors or their Affiliates) or Key Holder without the written consent of such Investor (including the Fidelity Investors or their Affiliates) or Key Holder unless such amendment, modification, termination or waiver applies to all Investors (including the Fidelity Investors or their Affiliates) and Key Holders, respectively, in the same fashion, (ii) the consent of the Key Holders shall not be required for any amendment, modification, termination or waiver if such amendment, modification, termination or waiver is not directly applicable to the rights or obligations of the Key Holders hereunder (it being understood that the addition of new parties as Investors or Key Holders hereunder shall not, in itself, be deemed to be directly applicable to the rights or obligations of the Key Holders hereunder), and (iii) Schedule B hereto may be amended by the Company from time to time to include additional Key Holders who become a party hereto in accordance with the terms set forth in Section 6.17 without the consent of the other parties hereto. The Company shall give prompt written notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination or waiver. No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

6.9                               Assignment of Rights.

 

(a)                                 The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties. 

 

 

Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

(b)                                 Any successor or permitted assignee of any Key Holder, including any Prospective Transferee who purchases shares of Transfer Stock in accordance with the terms hereof, shall deliver to the Company and the Investors, as a condition to any transfer or assignment, a counterpart signature page hereto pursuant to which such successor or permitted assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor of such successor or permitted assignee.

 

(c)                                  The rights of the Investors hereunder are not assignable without the Company’s written consent (which shall not be unreasonably withheld, delayed or conditioned), except (i) by an Investor to any Affiliate or (ii) to an assignee or transferee who acquires at least 150,000 shares of Capital Stock (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), it being acknowledged and agreed that any such assignment, including an assignment contemplated by the preceding clauses (i) or (ii) shall be subject to and conditioned upon any such assignee’s delivery to the Company and the other Investors of a counterpart signature page hereto pursuant to which such assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the assignor of such assignee.

 

(d)                                 Except in connection with an assignment by the Company by operation of law to the acquirer of the Company, the rights and obligations of the Company hereunder may not be assigned under any circumstances.

 

6.10                        Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

6.11                        Governing Law. This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to conflict of law principles that would result in the application of any law other than the law of the Commonwealth of Massachusetts.

 

6.12                        Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

6.13                        Counterparts; Facsimile. This Agreement may be executed and delivered by facsimile transmission or electronic mail (including in .pdf format) and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

6.14                        Aggregation of Stock. All shares of Capital Stock held or acquired by Affiliated entities or Persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

 

6.15                        Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each Investor shall be entitled to specific performance of the agreements and obligations of the Company and the Key Holders hereunder and to such other injunction or other equitable relief as may be granted by a court of competent jurisdiction.

 

6.16                        Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Preferred Stock, any purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement and thereafter shall be deemed an “Investor” for all purposes hereunder. No action or consent by any Investor or Key Holder shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.

 

6.17                        Additional Key Holders. In the event that after the date of this Agreement, the Company issues shares of Common Stock, or options to purchase Common Stock, to any employee or consultant, which shares or options would collectively constitute with respect to such employee or consultant (taking into account all shares of Common Stock, options and other purchase rights held by such employee or consultant) one percent (1%) or more of the Company’s then outstanding Common Stock (treating for this purpose all shares of Common Stock issuable upon exercise of or conversion of outstanding options, warrants or convertible securities, as if exercised or converted), the Company shall, as a condition to such issuance, cause such employee or consultant to execute a counterpart signature page hereto as a Key Holder, and such person shall thereby be bound by, and subject to, all the terms and provisions of this Agreement applicable to a Key Holder.

 

6.18                        Consent of Spouse. If any Key Holder is married on the date on which it enters into this Agreement and resides in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, or the Commonwealth of Puerto Rico, such Key Holder’s spouse shall execute and deliver to the Company a consent of spouse in the form of Exhibit A hereto (“Consent of Spouse”), effective on the date hereof. Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or convey to the spouse any rights in such Key Holder’s shares of Transfer Stock that do not otherwise exist by operation of law or the agreement of the parties. If any Key Holder should marry or remarry subsequent to the date of this Agreement, such Key Holder shall within thirty (30) days thereafter obtain his/her new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by causing such spouse to execute and deliver a Consent of Spouse acknowledging the restrictions and obligations contained in this Agreement and agreeing and consenting to the same.

 

 

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, the parties have executed this Fifth Amended and Restated Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	
COMPANY:
    	
AXCELLA HEALTH INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William R. Hinshaw, Jr.
    
	
 
    	
Name:
    	
William R.   Hinshaw, Jr.
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
FLAGSHIP VENTURES FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
its General Partner
    
	
 
    	
 
    	
Flagship Ventures Fund   IV General Partner LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Noubar B. Afeyan,   Ph.D.
    
	
 
    	
 
    	
Name:
    	
Noubar B. Afeyan, Ph.D.
    
	
 
    	
 
    	
Title:
    	
Manager
    

 

	
 
    	
FLAGSHIP VENTURES OPPORTUNITIES   FUND I, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
its General Partner
    
	
 
    	
 
    	
Flagship Ventures   Opportunities Fund I General Partner LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Noubar B. Afeyan,   Ph.D.
    
	
 
    	
 
    	
Name:
    	
Noubar B. Afeyan, Ph.D.
    
	
 
    	
 
    	
Title:
    	
Manager
    

 

	
 
    	
FLAGSHIP VENTURES FUND IV-RX,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
its General Partner
    
	
 
    	
 
    	
Flagship Ventures Fund   IV General Partner LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Noubar B. Afeyan,   Ph.D.
    
	
 
    	
 
    	
Name:
    	
Noubar B. Afeyan, Ph.D.
    
	
 
    	
 
    	
Title:
    	
Manager
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
FIDELITY SELECT PORTFOLIOS:
    
	
 
    	
BIOTECHNOLOGY PORTFOLIO
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY ADVISOR SERIES VII:   FIDELITY
    
	
 
    	
ADVISOR BIOTECHNOLOGY FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY SECURITIES FUND:   FIDELITY BLUE CHIP GROWTH FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY SECURITIES FUND:   FIDELITY SERIES BLUE CHIP GROWTH FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIAM TARGET DATE BLUE CHIP   GROWTH COMMINGLED POOL
    
	
 
    	
 
    
	
 
    	
By: Fidelity   Institutional Asset Management Trust Company, as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adrien Deberghes
    
	
 
    	
Name:
    	
Adrien Deberghes
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
FIDELITY GROWTH COMPANY   COMMINGLED POOL
    
	
 
    	
 
    
	
 
    	
By: Fidelity   Management & Trust Co.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY MT. VERNON STREET   TRUST: FIDELITY SERIES GROWTH COMPANY FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

	
 
    	
FIDELITY MT. VERNON STREET   TRUST: FIDELITY GROWTH COMPANY FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Colm Hogan
    
	
 
    	
Name:
    	
Colm Hogan
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
SMRS-TOPE LLC
    
	
 
    	
 
    
	
 
    	
By: HVST-TOPE LLC
    
	
 
    	
Its Managing Member
    
	
 
    	
 
    
	
 
    	
By: HarbourVest   Partners L.P.
    
	
 
    	
Its Manager
    
	
 
    	
 
    
	
 
    	
By: HarbourVest   Partners, LLC
    
	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ian C. Lane
    
	
 
    	
Name:
    	
Ian C. Lane
    
	
 
    	
Title:
    	
Managing Director
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
GURNET POINT L.P.
    
	
 
    	
 
    
	
 
    	
By: Waypoint   International GP LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Singleton
    
	
 
    	
Name:
    	
James Singleton
    
	
 
    	
Title:
    	
A Manager
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
NESTLÉ   HEALTH SCIENCE US HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James Pepin
    
	
 
    	
Name:
    	
James   Pepin
    
	
 
    	
Title:
    	
President
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
ALEXANDRIA VENTURE INVESTMENTS,   LLC, 
    
	
 
    	
A DELAWARE LIMITED LIABILITY   COMPANY
    
	
 
    	
 
    
	
 
    	
By: ALEXANDRIA REAL   ESTATE EQUITIES, INC, a Maryland corporation, managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Aaron Jacobson
    
	
 
    	
Name:
    	
Aaron Jacobson
    
	
 
    	
Title:
    	
SVP-Venture Counsel
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
INVESTORS:
    	
CONTROL   EMPRESARIAL DE CAPITALES, S.A. DE C.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Victor Manuel Gutierrez Lopez
    
	
 
    	
Name:
    	
Victor   Manuel Gutierrez Lopez
    
	
 
    	
Title:
    	
Attorney-in-Fac
    

 

[SIGNATURE PAGE TO FIFTH AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

SCHEDULE A

 

INVESTORS

 

Flagship Ventures Fund IV, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Flagship Ventures Fund 2007, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Flagship Ventures Fund IV-Rx, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Flagship Ventures Opportunities Fund I, L.P.

55 Cambridge Pwky, Suite 800e

Cambridge, MA 02142

 

Infoseek Services Limited

Trident Chambers

P.O. Box 146

Road Town, Tortola

British Virgin Islands

 

GHF Inc.

Walkers SPV Limited

Walker House

87 Mary Street

George Town, Grand Cayman KY 1-9002

Cayman Islands

 

Alexandria Venture Investments, LLC

385 E. Colorado Blvd., Ste 299

Pasadena, CA 91101

 

Graham Allison

69 Pinehurst Rd

Belmont, MA 02478

 

Garo H. Armen IRA

c/o Merrill Lynch

2200 Fletcher Avenue

Fort Lee, NJ 07024

Attn: Greg Amerkanian 

 

Control Empresarial de Capitales, S.A. de C.V.

Paseo de las Palmas 750

Lomas de Chapultepec

Mexico, D.F., 11000

 

Fidelity Select Portfolios: Biotechnology Portfolio

Brown Brothers Harriman & Co.
 525 Washington Blvd
 Jersey City NJ 07310

 

 

Attn: Michael Lerman 15th Floor 
 Corporate Actions

 

Fidelity Advisor Series VII: Fidelity Advisor Biotechnology Fund

State Street Bank & Trust
 PO Box 5756
 Boston, Massachusetts 02206
 Attn: Bangle & Co fbo Fidelity Advisor Series VII: Fidelity Advisor Biotechnology Fund

 

Fidelity Securities Fund: Fidelity Blue Chip Growth Fund

M. Gardiner & Co.
 C/o JPMorgan Chase Bank, N.A.
 PO Box 35308
 Newark, N.J. 07101-8006

 

Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund

State Street Bank & Trust
 PO Box 5756   
 Boston, Massachusetts 02206
 Attn: Wavechart & Co fbo Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund

 

FIAM Target Date Blue Chip Growth Commingled Pool

Pyramis Global Advisors Trust Company, as Trustee

State Street Bank & Trust
 PO Box 5756   
 Boston, Massachusetts 02206
 Attn: FLAPPER CO fbo Pyramis Lifecycle Blue Chip Growth Commingled Pool

 

Gurnet Point L.P.

Waypoint Capital Inc.

55 Cambridge Parkway

Suite 401

Cambridge, MA 02142

 

Nestlé Health Science US Holdings, Inc.

383 Main Ave 5th Floor

Norwalk, CT 06851

 

AFOS, LLC

55 E 52nd Street

New York, New York 10022”

 

Enso Ventures 2 Limited

Suite C1

Hirzel Court

St. Peter Port

Guernsey

GY1 2 NH

UK

 

Fidelity Growth Company Commingled Pool

Fidelity Management & Trust Co.

Mag & Co.

c/o Brown Brothers Harriman & Co.

 

 

Attn: Corporate Actions /Vault

140 Broadway

New York, NY 10005

 

Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund

State Street Bank & Trust

PO Box 5756

Boston, Massachusetts 02206

Attn: WAVELENGTH + CO Fidelity Mt. Vernon Street Trust: Fidelity

Series Growth Company Fund

 

Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund

BNY Mellon

Attn: Stacey Wolfe

525 William Penn Place Rm 0400

Pittsburgh, PA 15259

 

SMRS-TOPE LLC

c/o HarbourVest Partners, LLC

One Financial Center, 44th Floor

Boston, MA 02111

Attention: Jackie Peradotto; Alex Brown

Email: jPeradotto@harbourvest.com; abrown@harbourvest.com

 

with copy to:

 

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

Attention: Edward Drew Dutton

Email: eddutton@debevoise.com

 

 

SCHEDULE B

 

KEY HOLDERS

 

Bruce Bistrian

George Church

Robert Connelly

Charles L. Cooney

Peter Hutt

David Berry

Jerry Hjelle Advisor, LLC

Geoff von Maltzahn

Harold McGee

Garry E. Menzel

Jeff Moore

Peter Mueller

Thomas Leggett

Tony Tramontin

Manu Chakravarthy

David Epstein

William Hinshaw

Stephen Mitchener

Paul Fehlner

 

 

EXHIBIT A

 

CONSENT OF SPOUSE

 

I, [                    ], spouse of [              ], acknowledge that I have read the Fifth Amended and Restated Right of First Refusal and Co-Sale Agreement, dated as of November 30, 2018, to which this Consent is attached as Exhibit A (the “Agreement”), and that I know the contents of the Agreement. I am aware that the Agreement contains provisions regarding certain rights to certain other holders of Capital Stock of the Company upon a Proposed Key Holder Transfer of shares of Transfer Stock of the Company which my spouse may own including any interest I might have therein.

 

I hereby agree that my interest, if any, in any shares of Transfer Stock of the Company subject to the Agreement shall be irrevocably bound by the Agreement and further understand and agree that any community property interest I may have in such shares of Transfer Stock of the Company shall be similarly bound by the Agreement.

 

I am aware that the legal, financial and related matters contained in the Agreement are complex and that I am free to seek independent professional guidance or counsel with respect to this Consent. I have either sought such guidance or counsel or determined after reviewing the Agreement carefully that I will waive such right.

 

Dated as of the [  ] day of [        ,      ].

 

	
 
    	
 
    
	
 
    	
Signature
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Print   Name

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