Document:

Exhibit 10.9

 

Option No.:

 

OPTINOSE, INC.

2010 STOCK INCENTIVE PLAN

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

OptiNose, Inc., a Delaware corporation (the “Company”), hereby grants an option to purchase shares of its Common Stock, $0.001 par value (the “Stock”) to the optionee named below.  The terms and conditions of the option are set forth in this cover sheet, in the attachment (together with the cover sheet, the “Agreement”) and in the Company’s 2010 Stock Incentive Plan (the “Plan”).

 

Grant Date:               (the “Grant Date”)

 

Name of Optionee:

 

Number of Shares of Stock Covered by Option:

 

(i)               Options, which will be earned based on the passage of time as set forth herein (the “Time Options”); and

 

(ii)              Options, which will be earned based on achievement of certain product development goals set forth herein (the “Performance Options” and, together with the “Vested Options and the “Time Options”, the “Option”)

 

Option Price per Share:  $

 

Vesting Start Date:

 

By signing this cover sheet, you agree to all of the terms and conditions described in this Agreement and in the Plan, a copy of which is also attached.  You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent.  Certain capitalized terms used in this Agreement are defined in the Plan, and have the respective meanings set forth in the Plan.

 

	
Optionee:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
				

 

 

Attachment

 

This is not a stock certificate or a negotiable instrument

 

 

OPTINOSE, INC.

 

2010 STOCK INCENTIVE PLAN

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
Non-Qualified Stock Option
    	
 
    	
This option is not intended to be an incentive stock   option under Section 422 of the Code and will be interpreted   accordingly.
    
	
 
    	
 
    	
 
    
	
Vesting
    	
 
    	
This Option is only exercisable before it expires   and then only with respect to the vested portion of the Option. Subject to   the preceding sentence, you may exercise this Option, in whole or in part, to   purchase a whole number of vested shares, by following the procedures set   forth in the Plan and below in this Agreement.

 

Time Vesting. Your right to   purchase shares of Stock by exercising the Time Options vests as to 25% of   the total number of shares of Stock covered by the Time Options, as shown on   the cover sheet, on the one-year anniversary of the Vesting Start Date (an “Anniversary Date”), provided you are providing Service on   such Date. Thereafter, for each subsequent Anniversary Date that you remain   in Service, the number of shares of Stock which you may purchase under the   Time Options shall vest at the rate of 25% of the total number of shares of   Stock covered by the Time Option, as shown on the cover sheet, per year as of   the first day following such subsequent Anniversary Date, provided you are   providing Service on such Date. The resulting aggregate number of vested   shares of Stock will be rounded to the nearest whole number, and you cannot   vest in more than the number of shares of Stock covered by this Option.

 

Performance Vesting. Your right to   purchase shares of Stock by exercising the Performance Options shall vest as   set forth in Schedule A.

 

Accelerated Vesting Upon Change of Control.   The Time Options shall, to the extent not then vested, become immediately   fully vested upon a Change of Control, provided you are providing Service on   the date of such Change of Control.

 

With respect to the Performance Options, in the   event that, upon the occurrence of a Change of Control (so long as you are   providing Service on the applicable Change of Control Date), the Change of   Control Vesting Targets specified in Schedule B shall have been   achieved, all of the unvested Performance Options shall vest, unless   otherwise determined by the Board of Directors of the Company.

 

Except as expressly provided herein, no additional   shares of Stock will vest after your Service has terminated for any reason.
    

 

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Term
    	
 
    	
Your Option will expire in any event at the close of   business at Company headquarters on the day before the 10th anniversary of   the Grant Date, as shown on the cover sheet. Your Option will expire earlier   if your Service terminates, as described below.
    
	
 
    	
 
    	
 
    
	
Regular Termination
    	
 
    	
If your Service terminates for any reason other than   death, Disability or Cause, including voluntary termination for retirement, then   the vested portion of your Option will expire at the close of business at   Company headquarters on the 30th day after your termination date. Any portion   of your Option that is not exercisable at the time of your termination date   shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Termination for Cause
    	
 
    	
If your Service is terminated for Cause or for a   voluntary termination after the occurrence of an event that would be grounds   for a termination for Cause, then you shall immediately forfeit all rights to   your Option, whether vested or unvested, and the Option shall immediately   expire. In addition, notwithstanding any provision to the contrary in this   Agreement, if you engage in conduct that constitutes Cause after your   termination of Service, your Option shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Death
    	
 
    	
If your Service terminates because of your death,   then your vested Option will expire at the close of business at Company   headquarters 6 months after the date of death. During that 6 month period,   your estate or heirs may exercise the vested portion of your Option. Any   portion of your Option that is not exercisable at the time of your   termination date shall immediately terminate.

 

In addition, if you die during the 30-day period   described in connection with a regular termination (i.e., a termination of   your Service not on account of your death, Disability or Cause), and a vested   portion of your Option has not yet been exercised, then your Option will   instead expire 6 months after your termination date. In such a case, during   the period following your death up to 6 months after your termination date,   your estate or heirs may exercise the vested portion of your Option. Any   portion of your Option that is not exercisable at the time of your   termination date shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Disability
    	
 
    	
If your Service terminates because of your   Disability, then your vested Option will expire at the close of business at   Company headquarters 6 months after your termination date. Any portion of   your Option that is not exercisable at the time of your termination date   shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Leaves of Absence
    	
 
    	
For purposes of this Option, your Service does not   terminate when you go on a bona fide   employee leave of absence that was approved by the Company in writing, if the   terms of the leave provide for continued Service crediting, or when continued   Service crediting is required by applicable law. However, your Service will   be treated as terminating 

 
    

 

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90 days after you went on employee leave, unless   your right to return to active work is guaranteed by law or by a contract.   Your Service terminates in any event when the approved leave ends unless you   immediately return to active employee work.

 

The Company determines, in its sole discretion,   which leaves count for this purpose, and when your Service terminates for all   purposes under the Plan. The Company’s decision is final and binding.
    
	
 
    	
 
    	
 
    
	
Notice of Exercise
    	
 
    	
When you wish to exercise this Option, you must   notify the Company by filing a Notice of Option Exercise in substantially the   form attached hereto as Exhibit A. Your notice must specify how   many shares of Stock you wish to purchase (in a parcel of at least 100   shares, unless a lesser number remains available for exercise under the   Option). Your notice must also specify how your shares of Stock should be   registered (e.g., in your name only or in your and your spouse’s names as   joint tenants with right of survivorship). The notice will be effective when   it is received by the Company.

 

If someone else wants to exercise this Option after   your death, that person must prove to the Company’s satisfaction that he or   she is entitled to do so.
    
	
 
    	
 
    	
 
    
	
Form of Payment
    	
 
    	
When you submit your notice of exercise, you must   include payment of the Option Price for the shares of Stock you are   purchasing. Payment may be made in one (or a combination) of the following   forms:

 

·                  Cash,   your personal check, a cashier’s check, a money order or another cash   equivalent acceptable to the Company.

 

·                  To   the extent permitted by the Board, in its sole discretion, prior to an IPO,   by surrendering to the Company shares of Company stock. The value of the   surrendered shares, determined by the Board as of the effective date of the   Option exercise, will be applied to the Option Price.

 

·                  To   the extent a public market for the Stock exists as determined by the Company,   by delivery (on a form prescribed by the Company) of an irrevocable direction   to a licensed securities broker acceptable to the Company to sell shares of   Stock and to deliver all or part of the sale proceeds to the Company in   payment of the aggregate Option Price and any withholding taxes.
    
	
 
    	
 
    	
 
    
	
Withholding Taxes
    	
 
    	
You will not be allowed to exercise this Option   unless you make acceptable arrangements to pay any withholding or other taxes   that may be due as a result of the option exercise. In the event that the   Company determines that any federal, state, local or foreign tax or   withholding payment is required relating to the exercise or sale of shares of   Stock arising from this Option, the Company shall have the 
    

 

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right to require such payments from you, or withhold   such amounts from other payments due to you from the Company or any   Affiliate. You shall pay to the Company or an Affiliate, as the case may be,   any amount that the Company or such Affiliate may reasonably determine to be   necessary to satisfy such obligation. Subject to applicable law and to the   prior approval of the Company or such Affiliate, as the case may be, in their   sole discretion, you may elect to satisfy such obligations, in whole or in   part, (i) by causing the Company or such Affiliate to withhold shares of   Stock otherwise issuable to you, or (ii) by delivering to the Company or   such Affiliate shares of Stock already owned by you; provided that, in   any such case, (x) you may not satisfy such obligations with shares of   Stock that are subject to any forfeiture, unfulfilled vesting, or other   similar requirements and (y) any fraction of a share of Stock required   to satisfy such tax obligations shall be disregarded and the amount due shall   be paid instead in cash. The shares of Stock so delivered or withheld shall   have an aggregate Fair Market Value equal to such withholding obligations.   The Fair Market Value of the Stock used to satisfy such withholding   obligation shall be determined by the Company as of the date that the amount   of tax to be withheld is to be determined.
    
	
 
    	
 
    	
 
    
	
Issuance
    	
 
    	
The issuance of the Stock upon the exercise of this   Option shall be evidenced in such a manner as the Company, in its discretion,   will deem appropriate, including, without limitation, book-entry,   registration or issuance of one or more Stock certificates.
    
	
 
    	
 
    	
 
    
	
Transfer of Option
    	
 
    	
During your lifetime, only you (or, in the event of   your legal incapacity or incompetency, your guardian or legal representative)   may exercise this Option. You cannot transfer or assign this Option. For   instance, you may not sell this Option or use it as security for a loan. If   you attempt to do any of these things, this Option will immediately become   invalid. You may, however, dispose of this Option in your will or by grant to   certain Permitted Transferees (provided that such a disposition is in   compliance with Section 8.10 of the Plan), or it may be transferred upon   your death by the laws of descent and distribution.

 

Regardless of any marital property settlement   agreement, the Company is not obligated to honor a notice of exercise from   your spouse, nor is the Company obligated to recognize your spouse’s interest   in your Option in any other way.
    

 

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Market Stand-off Agreement
    	
 
    	
You hereby agree that you will not, without prior   written consent of the managing underwriter, during the period commencing on   the date of the final prospectus relating to the IPO or other registration by   the Company of shares of its Stock or any other equity securities under the   Securities Act on a registration statement on Form S-1 or Form S-3,   and ending on the date specified by the Company and the managing underwriter   (such period not to exceed one hundred eighty (180) days) or, if required by   such underwriter, such longer period of time as is necessary to enable such   underwriter to issue a research report or make a public appearance that   relates to an earnings release or announcement by the Company within 15-18   days prior to or after the date that is one hundred eighty (180) days after   the effective date of the registration statement relating to such offering,   but in any event not to exceed two hundred ten (210) days following the   effective date of the registration statement relating to such offering   (i) 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 Stock or any securities convertible   into or exercisable or exchangeable (directly or indirectly) for Stock held   immediately before the effective date of the registration statement for such   offering or (ii) enter into any swap or other arrangement that transfers   to another, in whole or in part, any of the economic consequences of   ownership of such securities, whether any such transaction described in   clause (i) or (ii) above is to be settled by delivery of Stock or   other securities, in cash, or otherwise. The foregoing provisions shall not   apply to the sale of any shares to an underwriter pursuant to an underwriting   agreement. You further agree to execute such agreements as may be reasonably   requested by the underwriters in connection with such registration that are   consistent with these provisions or that are necessary to give further effect   thereto. Any discretionary waiver or termination of the restrictions of any   or all of such agreements by the Company or the underwriters shall apply pro   rata to all optionees subject to such agreements, based on the number of   shares subject to such agreements.
    
	
 
    	
 
    	
 
    
	
Investment Representation
    	
 
    	
If the sale of Stock under the Plan is not   registered under the Securities Act, but an exemption is available which   requires an investment or other representation, at the time of exercise you   shall provide the representations set forth in Exhibit B and such   other representations as are deemed necessary or appropriate by the Company   and its counsel.
    
	
 
    	
 
    	
 
    
	
Shareholders’ Agreement
    	
 
    	
You agree, as a condition of the grant of this   Option, (1) that you shall, as a condition for any exercise of this   Option, execute a Joinder Agreement substantially in the form attached hereto   as Exhibit C, whereby you shall become a party to the   Shareholders’ Agreement as a Party (as such term is defined in the   Shareholders’ Agreement) and (2) such other document(s) as necessary   to become a party to any other 
    

 

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agreements or voting trusts as the Company may   require.
    
	
 
    	
 
    	
 
    
	
Right to Repurchase
    	
 
    	
Following termination of your Service, the Company   shall have the right to purchase all of those shares of Stock that you have   or will acquire under this Option pursuant the terms of the Shareholders’   Agreement.
    
	
 
    	
 
    	
 
    
	
Retention Rights
    	
 
    	
Neither your Option nor this Agreement constitutes   an agreement of employment or gives you the right to be retained by the   Company or an Affiliate in any capacity. Except as otherwise provided in any   applicable employment agreement between you and the Company, the Company and   its Affiliates reserve the right to terminate your Service at any time and   for any reason.
    
	
 
    	
 
    	
 
    
	
Stockholder Rights
    	
 
    	
You, or your estate or heirs, have no rights as a   stockholder of the Company until a certificate for your Option shares has   been issued (or an appropriate book entry has been made). No adjustments are made   for dividends or other rights if the applicable record date occurs before   your stock certificate is issued (or an appropriate book entry has been   made), except as described in the Plan.
    
	
 
    	
 
    	
 
    
	
Adjustments
    	
 
    	
In the event of a stock split, a stock dividend or a   similar change in the Stock, the number of shares covered by this Option and   the Option Price shall be adjusted (and rounded down to the nearest whole   number) if required pursuant to the Plan.
    
	
 
    	
 
    	
 
    
	
Legends
    	
 
    	
All certificates representing the Stock issued upon   exercise of this Option shall, where applicable, have endorsed thereon the   following legends:

 

“THESE SECURITIES HAVE   NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE   “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE   TRANSFERRED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR STATE SECURITIES   LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT SUCH   REGISTRATION IS NOT REQUIRED.

 

THE SECURITIES   REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO THE TERMS AND CONDITIONS   OF A SHAREHOLDERS AGREEMENT BY AND AMONG THE COMPANY AND THE HOLDERS   SPECIFIED THEREIN, A COPY OF WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL   OFFICE OF THE COMPANY. THE SALE, TRANSFER OR OTHER DISPOSITION OF THE   SECURITIES IS SUBJECT TO THE TERMS OF SUCH AGREEMENT AND THE SECURITIES ARE   TRANSFERABLE ONLY UPON PROOF OF COMPLIANCE 
    

 

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THEREWITH.”
    
	
 
    	
 
    	
 
    
	
Applicable Law
    	
 
    	
This Agreement will be interpreted and enforced   under the laws of the State of Delaware, other than any conflicts or choice   of law rule or principle that might otherwise refer construction or   interpretation of this Agreement to the substantive law of another   jurisdiction.
    
	
 
    	
 
    	
 
    
	
The Plan
    	
 
    	
The text of the Plan is incorporated in this   Agreement by reference. Certain capitalized terms used in this Agreement are   defined in the Plan, and have the meaning set forth in the Plan.

 

This Agreement and the Plan constitute the entire   understanding between you and the Company regarding this Option. Any prior   agreements, commitments or negotiations concerning this Option are   superseded.
    
	
 
    	
 
    	
 
    
	
Shareholders’ Agreement
    	
 
    	
You agree, as a condition of the grant of this   option, you shall, as a condition to the grant of this option, execute a   counterpart signature page to the Shareholders’ Agreement as a   Stockholder (as such term is defined in the Shareholders’ Agreement) and such   other document(s) as necessary to become a party to any other agreements   or voting trusts as the Company may require.
    
	
 
    	
 
    	
 
    
	
Forfeiture of Rights
    	
 
    	
If you should take actions in competition with the   Company, the Company shall have the right to cause a forfeiture of your   rights, including, but not limited to, the right to cause: (i) a   forfeiture of any outstanding option, and (ii) with respect to the period   commencing twelve (12) months prior to your termination of Service with the   Company and ending twelve (12) months following such termination of Service   (A) a forfeiture of any gain recognized by you upon the exercise of an   option or (B) a forfeiture of any Stock acquired by you upon the   exercise of an option (but the Company will pay you the Option Price without   interest). Unless otherwise specified in an employment or other agreement   between the Company or an Affiliate and you, you take actions in competition   with the Company if you directly or indirectly, own, manage, operate, join or   control, or participate in the ownership, management, operation or control   of, or are a proprietor, director, officer, stockholder, member, partner or   an employee or agent of, or a consultant to any business, firm, corporation,   partnership or other entity which engages, directly or indirectly, in   research, developing, manufacturing, marketing, sale or licensing   pharmaceutical, medical device or specialty pharmaceutical products or   products in the healthcare sector; provided, however, being a   holder of less than 1% of the outstanding equity of a public company or   mutual fund shall not be deemed to be in competition with the Company.

 

If the Grantee is not a party to a non-competition   and confidentiality agreement with the Company on the date of this Agreement,   the 
    

 

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Grantee concurrently herewith enter into such   non-competition and confidentiality agreement in a form reasonably acceptable   to the Company.
    
	
 
    	
 
    	
 
    
	
Parachute Limitations
    	
 
    	
Notwithstanding any other provision of this   Agreement, the Plan or of any other agreement, contract or understanding   heretofore or hereafter entered into by a Grantee with the Company or any   Affiliate thereof, except an agreement, contract or understanding that   expressly addresses Section 280G or Section 4999 of the Code (an “Other Agreement”), and notwithstanding any formal or   informal plan or other arrangement for the direct or indirect provision of   compensation to the Grantee (including groups or classes of participants or   beneficiaries of which the Grantee is a member), whether or not such   compensation is deferred, is in cash, or is in the form of a benefit to or for   the Grantee (a “Benefit Arrangement”),   if the Grantee is a “disqualified individual,” as defined in   Section 280G(c) of the Code, any Awards held by that Grantee and   any right to receive any payment or other benefit under this Agreement or the   Plan shall not become exercisable or vested (i) to the extent that such   right to exercise, vesting, payment, or benefit, taking into account all   other rights, payments, or benefits to or for the Grantee under this   Agreement, the Plan, all Other Agreements, and all Benefit Arrangements,   would cause any payment or benefit to the Grantee under this Agreement or the   Plan to be considered a “parachute payment” within the meaning of   Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of   receiving a Parachute Payment, the aggregate after-tax amounts received by   the Grantee from the Company under this Agreement, the Plan, all Other   Agreements, and all Benefit Arrangements would be less than the maximum   after-tax amount that could be received by the Grantee without causing any   such payment or benefit to be considered a Parachute Payment. In the event   that the receipt of any such right to exercise, vesting, payment, or benefit   under this Agreement or the Plan, in conjunction with all other rights,   payments, or benefits to or for the Grantee under any Other Agreement or any   Benefit Arrangement would cause the Grantee to be considered to have received   a Parachute Payment under this Agreement or the Plan that would have the   effect of decreasing the after-tax amount received by the Grantee as   described in clause (ii) of the preceding sentence, then those rights,   payments, or benefits under this Agreement, the Plan, any Other Agreements,   and any Benefit Arrangements shall be reduced or eliminated so as to avoid   having the payment or benefit to the Grantee under this Agreement or the Plan   be deemed to be a Parachute Payment. The Company shall reduce or eliminate   the Parachute Payments by first reducing or eliminating any cash payments   benefits (with the payments to be made furthest in the future being reduced   first), then by reducing or eliminating any accelerated vesting of stock   options, then by reducing or eliminating any accelerated vesting of   restricted stock, then by reducing or eliminating any other remaining 
    

 

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Parachute Payments.
    
	
 
    	
 
    	
 
    
	
Data Privacy
    	
 
    	
In order to administer the Plan, the Company may   keep and process personal data about you. Such data includes but is not   limited to the information provided in this Agreement and any changes   thereto, other appropriate personal and financial data about you such as home   address and business addresses and other contact information, payroll   information and any other information that might be deemed appropriate by the   Company to facilitate the administration of the Plan.

 

By accepting this Option, you give explicit consent   to the Company to keep and process any such personal data. You also give   explicit consent to the Company to transfer any such personal data outside   the country in which you work or are employed, including, with respect to   non-U.S. resident optionees, to the United States, to transferees who shall   include the Company and other persons who are designated by the Company to   administer the Plan.
    
	
 
    	
 
    	
 
    
	
Consent to Electronic Delivery
    	
 
    	
The Company may choose to deliver certain statutory   materials relating to the Plan in electronic form. By accepting this grant   you agree that the Company may deliver the Plan prospectus and the Company’s   annual report to you in an electronic format. If at any time you would prefer   to receive paper copies of these documents, as you are entitled to, you may   request paper copies of these documents.
    
	
 
    	
 
    	
 
    
	
Severability
    	
 
    	
The provisions of this Agreement are severable and   if any one or more provisions are determined to be illegal or otherwise   unenforceable, in whole or in part, the remaining provisions shall   nevertheless be binding and enforceable.
    
	
 
    	
 
    	
 
    
	
Waiver
    	
 
    	
No waiver of any breach or condition of this   Agreement shall be deemed to be a waiver of any other or subsequent breach or   condition whether of like or different nature.
    

 

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Entire Agreement
    	
 
    	
This Agreement and the Plan (and the other   agreements or documents referred to herein or therein) constitute the entire   contract between the parties hereto with regard to the subject matter hereof.   They supersede any other agreements, representations or understandings   (whether oral or written and whether express or implied) which relate to the   subject matter hereof.
    

 

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan.

 

*   *   *   *   *

 

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SCHEDULE A

 

VESTING OF PERFORMANCE OPTIONS

 

Subject to the terms set forth in the Agreement and in the Plan, the Performance Options vest as follows:

 

 

SCHEDULE B

 

CHANGE OF CONTROL VESTING TARGETS

 

The Change of Control Vesting Target (the “Change of Control Vesting Target”) shall have been achieved for any applicable period specified below if the Cumulative Cash Proceeds during such period are equal to or greater than the Avista Investment multiplied by the applicable multiplier specified below:

 

	
Anniversary of the Closing
   Date
    	
 
    	
Multiplier
    
	
On or prior to the 3rd   anniversary of the date of the Closing
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
After the 3rd   anniversary and on or prior to the 4th anniversary of the date of the Closing
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
After the 4th   anniversary of date of the Closing
    	
 
    	
 
    

 

For purposes of this Schedule B:

 

“Cumulative Cash Proceeds” means cumulative cash proceeds actually received by the Avista Investors (i) as consideration for the sale or other disposition of their stock in the Company (net of unreimbursed Sales Costs) and (ii) as cash dividends with respect to such stock; provided, however, that Cumulative Cash Proceeds shall not include any advisory or other fees (including, but not limited to, any funding fee paid to the Avista Investors in connection with its equity investment in the Company), or any expense reimbursement, received by any Avista Investor or any of their Affiliates;

 

“Avista Investment” means the aggregate U.S. dollar value of any cash or other consideration contributed in the Company or any of its Subsidiaries by any of the Avista Investors concurrently at or following the Closing Date and prior to the consummation of a Change of Control, including, but not limited to, any equity investment made by the Avista Investors in connection with or as contemplated by the Subscription Agreement; and

 

“Sales Costs” means any costs or expenses (including legal or other advisor costs), fees (including investment banking fees), commissions or discounts payable directly by the Avista Investors or any of their Affiliates (and not indirectly by the Company) in connection with, arising out of or relating to any sale or other disposition of their stock in the Company (including in connection with the negotiation, preparation and execution of any transaction documentation with respect to such sale or other disposition).

 

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“Subscription Agreement” means that certain Series C Subscription Agreement dated May 27, 2010 by and among Avista Capital Partners II, LP, Avista Capital Partners (Offshore) II, LP, and Avista Capital Partners (Offshore) II-A, LP (each, and “Avista Investor” and together, the “Avista Investors”), the Company and OptiNose AS.

 

“Closing Date” means the Initial Closing Date as defined in the Subscription Agreement.

 

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Exhibit A

 

Form of Notice of Option Exercise

 

 

OptiNose, Inc.

1020 Stony Hill Road, Suite 300

Yardley, PA 19067

 

Dear Sir or Madam:

 

The undersigned (the “Purchaser”) elects to exercise his/her Option to purchase       shares of Common Stock of OptiNose, Inc. (the “Company”) under and pursuant to the Non-Qualified Stock Option Agreement dated as of                (the “Option Agreement”).

 

Purchaser herewith delivers to the Company the full purchase price for the Stock as follows.  (Check all that apply and complete as appropriate.  The total payment must equal the aggregate Option Price of the Stock.)

 

o                                    cash in the amount of $          .

 

o                                    check in the amount of $          .

 

o                                    by surrender of shares of Company stock owned by the individual with a value of $           represented by certificate(s) number           .

 

The name or names to be on the stock certificate or certificates issuable upon exercise and the address and Social Security Number of such person(s) is as follows:

 

	
Name:
    	
 
    
	
 
    
	
Address:
    	
 
    
	
 
    
	
Social Security Number:
    	
 
    
				

 

The Plan and the Option Agreement are incorporated herein by reference.  This Agreement, the Plan and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of the State of Delaware.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Purchaser
    

 

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Exhibit B

 

Investment Representations and Warranties

 

The Grantee hereby represents and warrants to the Company that:

 

1.              The Option and the shares that may be acquired by exercising the Option (the “Purchased Shares”) received by him or her will be held by him or her for investment only for his or her own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof in violation of applicable U.S. federal or state or foreign securities laws.  The Grantee has no current intention of selling, granting participation in or otherwise distributing the Option or Purchased Shares in violation of applicable U.S. federal or state or foreign securities laws.  The Grantee does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation to such person or entity, or to any third person or entity, with respect to any of the Option or Purchased Shares, in each case, in violation of applicable U.S. federal or state or foreign securities laws.

 

2.              The Grantee understands that the issuance of the Option and Purchased Shares has not been registered under the Securities Act or any applicable U.S. state or foreign securities laws, and that the Option and Purchased Shares are being issued in reliance on an exemption from registration, which exemption depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Grantee’s representations as expressed herein.

 

3.              The Grantee has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of his or her owning the Option and Purchased Shares.  The Grantee is a sophisticated investor, has relied upon independent investigations made by the Grantee and, to the extent believed by the Grantee to be appropriate, the Grantee’s representatives, including the Grantee’s own professional, tax and other advisors, and is making an independent decision to invest in the Option and Purchased Shares.  The Grantee has been furnished with such documents, materials and information that the Grantee deems necessary or appropriate for evaluating an investment in the Company, and the Grantee has read carefully such documents, materials and information and understands and has evaluated the types of risks involved with holding the Option and Purchased Shares.  The Grantee has not relied upon any representations or other information (whether oral or written) from the Company or its shareholders, directors, officers or affiliates, or from any other person or entity, in connection with his or her investment in the Option and Purchased Shares.  The Grantee acknowledges that the Company has not given any assurances with respect to the tax consequences of the ownership and disposition of the Option and Purchased Shares.

 

4.              The Grantee has had, prior to his or her being granted the Option and Purchased Shares, the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of the transactions contemplated by the Agreement and the Grantee’s holding of the Option and Purchased Shares and to obtain additional information necessary to verify the accuracy of any information furnished to his or her or to which he or she had access.  The Grantee confirms that he or she has satisfied himself or herself with respect to any of the foregoing matters.

 

5

 

5.              The Grantee acknowledges that he or she has had the opportunity to seek legal advice and all documents, materials and information that he or she has requested or read relating to holding the Option or Purchased Shares and confirms that he or she has satisfied himself or herself with respect to any of the foregoing matters.

 

6.              The Grantee understands that no U.S. federal or state or foreign agency has passed upon the Option or Purchased Shares or upon the Company, or upon the accuracy, validity or completeness of any documentation provided to the Grantee in connection with the transactions contemplated by the Agreement, nor has any such agency made any finding or determination as to holding the Option or Purchased Shares.

 

7.              The Grantee understands that there are substantial restrictions on the transferability of the Option and Purchased Shares and that on the date of the Agreement and for an indefinite period thereafter there will be no public market for the Option or Purchased Shares and, accordingly, it may not be possible for the Grantee to liquidate his or her investment in case of emergency, if at all.  In addition, the Grantee understands that the Agreement and Shareholders’ Agreement contain substantial restrictions on the transferability of the Option and Purchased Shares and provide that, in the event that the conditions relating to the transfer of any Option or Purchased Shares in such document has not been satisfied, the holder shall not transfer any such Option or Purchased Shares, and unless otherwise specified the Company will not recognize the transfer of any such Option or Purchased Shares on its books and records or issue any share certificates representing any such Option or Purchased Shares, and any purported transfer not in accordance with the terms of the Agreement or the Shareholders’ Agreement shall be void.  As such, Grantee understands that: a restrictive legend or legends in a form to be set forth in the Agreement and the Shareholders’ Agreement will be placed on the certificates representing the Option and Purchased Shares; a notation will be made in the appropriate records of the Company indicating that each of the Option and Purchased Shares are subject to restrictions on transfer and, if the Company should at some time in the future engage the services of a securities transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the Option and Purchased Shares; and the Grantee will sell, transfer or otherwise dispose of the Option or Purchased Shares only in a manner consistent with its representations set forth herein and then only in accordance with the Agreement and the Shareholders’ Agreement.

 

8.              The Grantee understands that (i) neither the Option nor the Purchased Shares may be sold, transferred or otherwise disposed of without registration under the Securities Act or an exemption therefrom, (ii) the Option and Purchased Shares have not been registered under the Securities Act; (iii) the Option and Purchased Shares must be held indefinitely and he or she must continue to bear the economic risk of holding the Option and Purchased Shares unless such Option and Purchased Shares are subsequently registered under the Securities Act or an exemption from such registration is available; (iv) the Grantee is prepared to bear the economic risk of holding the Option and Purchased Shares for an indefinite period of time; (v) it is not anticipated that there will be any public market for the Option or Purchased Shares; (vi) the Option and Purchased Shares are characterized as “restricted securities” under the U.S. federal securities laws; and (vii) the Option and Purchased Shares may not be sold, transferred or otherwise disposed of except in compliance with federal, state and local law.

 

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9.              The Grantee understands that an investment in the Option or Purchased Shares is not recommended for investors who have any need for a current return on this investment or who cannot bear the risk of losing their entire investment.  In that regard, the Grantee understands that his or her holding the Option and Purchased Shares involves a high degree of risk of loss.  The Grantee acknowledges that: (i) he or she has adequate means of providing for his or her current needs and possible personal contingencies and has no need for liquidity in this investment; (ii) his or her commitment to investments which are not readily marketable is not disproportionate to his or her net worth; and (iii) his or her holding the Option and Purchased Shares will not cause his or her overall financial commitments to become excessive.

 

7

 

Exhibit C

 

Joinder Agreement

 

This Joinder Agreement (“Joinder Agreement”) is executed by the undersigned (the “Grantee”) pursuant to the terms of that certain Shareholders’ Agreement dated as of June 7, 2010 (the “Agreement”) by and among OPTINOSE, INC. (the “Company”), and the parties named therein.  Capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Agreement.  By the execution of this Joinder Agreement, the Grantee agrees as follows:

 

(a)                                 Acknowledgment.  Grantee acknowledges that Grantee is subject to the terms and conditions of the Agreement.

 

(b)                                 Agreement.  Grantee (i) agrees that any shares of the Company acquired by Grantee shall be bound by and subject to the terms of the Agreement, and (ii) hereby adopts the Agreement as a Shareholder with the same force and effect as if Grantee were originally a party thereto.

 

(c)                                  Notice.  Any notice required or permitted by the Agreement shall be given to Grantee at the address listed beside Grantee’s signature below.

 

EXECUTED AND DATED this         day of                 , 20

 

	
 
    	
GRANTEE:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
[Name]
    
	
 
    	
[Title]
    

 

Address:

 

8Exhibit 10.10

 

Option No.:

 

OPTINOSE, INC.

2010 STOCK INCENTIVE PLAN

 NON-QUALIFIED STOCK OPTION AGREEMENT

 

OptiNose, Inc., a Delaware corporation (the “Company”), hereby grants an option to purchase shares of its Common Stock, $0.001 par value (the “Stock”) to the optionee named below.  The terms and conditions of the option are set forth in this cover sheet, in the attachment (together with the cover sheet, the “Agreement”) and in the Company’s 2010 Stock Incentive Plan (the “Plan”).

 

Grant Date:                       (the “Grant Date”)

 

Name of Optionee:

 

Number of Shares of Stock Covered by Option:                  shares, which will be earned based on the passage of time as set forth herein (the “Option”)

 

Option Price per Share:  $

 

Vesting Start Date:

 

By signing this cover sheet, you agree to all of the terms and conditions described in this Agreement and in the Plan, a copy of which is also attached.  You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent.  Certain capitalized terms used in this Agreement are defined in the Plan, and have the respective meanings set forth in the Plan.

 

	
Optionee:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
				

 

Attachment

 

This is not a stock certificate or a negotiable instrument

 

1

 

OPTINOSE, INC.

 

2010 STOCK INCENTIVE PLAN

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
Non-Qualified Stock Option
    	
 
    	
This option is not intended to be an incentive stock   option under Section 422 of the Code and will be interpreted   accordingly.
    
	
 
    	
 
    	
 
    
	
Vesting
    	
 
    	
This Option is only exercisable before it expires   and then only with respect to the vested portion of the Option. Subject to   the preceding sentence, you may exercise this Option, in whole or in part, to   purchase a whole number of vested shares, by following the procedures set   forth in the Plan and below in this Agreement.

 

Vesting (Over 4 years with 1-year cliff).   Your right to purchase shares of Stock by exercising the Option vests as to   25% of the total number of shares of Stock covered by the Option, as shown on   the cover sheet, on the one-year anniversary of the Vesting Start Date (the “Anniversary Date”), rounded down to the nearest whole   share, provided you are providing Service on such Date. Thereafter, for each   subsequent full calendar month that you remain in Service, the number of   shares of Stock which you may purchase under the Option shall vest at the   rate of 2.0833% of the total number of shares of Stock covered by the Option   (approximately 1/48th of the Shares), as shown on the cover sheet,   per full calendar month as of the first day following such subsequent full   calendar month, rounded down to the nearest whole share, provided you are   providing Service on such Date. The resulting aggregate number of vested   shares of Stock will be rounded to the nearest whole number, and you cannot   vest in more than the number of shares of Stock covered by this Option.

 

Accelerated Vesting Upon Change of Control   (Acceleration to 1st-year cliff). If you are providing Service on the   date of a Change of Control and such date is prior to the Anniversary Date,   the Option shall vest as to a number of shares such that 25% of the total   number of shares of stock covered by the Option have vested immediately prior   to such Change of Control.

 

Except as expressly provided herein, no additional   shares of Stock will vest after your Service has terminated for any reason.
    
	
 
    	
 
    	
 
    
	
Term
    	
 
    	
Your Option will expire in any event at the close of   business at Company headquarters on the day before the 10th anniversary of   the Grant Date, as shown on the cover sheet. Your Option will expire earlier   if your Service terminates, as described below.
    

 

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Regular Termination
    	
 
    	
If your Service terminates for any reason other than   death, Disability or Cause, including voluntary termination for retirement,   then the vested portion of your Option will expire at the close of business   at Company headquarters on the 30th day after your termination date. Any portion   of your Option that is not exercisable at the time of your termination date   shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Termination for
   Cause
    	
 
    	
If your Service is terminated for Cause or for a   voluntary termination after the occurrence of an event that would be grounds   for a termination for Cause, then you shall immediately forfeit all rights to   your Option, whether vested or unvested, and the Option shall immediately   expire. In addition, notwithstanding any provision to the contrary in this   Agreement, if you engage in conduct that constitutes Cause after your   termination of Service, your Option shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Death
    	
 
    	
If your Service terminates because of your death,   then your vested Option will expire at the close of business at Company   headquarters 6 months after the date of death. During that 6 month period,   your estate or heirs may exercise the vested portion of your Option. Any   portion of your Option that is not exercisable at the time of your   termination date shall immediately terminate.

 

In addition, if you die during the 30-day period   described in connection with a regular termination (i.e., a termination of   your Service not on account of your death, Disability or Cause), and a vested   portion of your Option has not yet been exercised, then your Option will   instead expire 6 months after your termination date. In such a case, during   the period following your death up to 6 months after your termination date,   your estate or heirs may exercise the vested portion of your Option. Any   portion of your Option that is not exercisable at the time of your   termination date shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Disability
    	
 
    	
If your Service terminates because of your   Disability, then your vested Option will expire at the close of business at   Company headquarters 6 months after your termination date. Any portion of   your Option that is not exercisable at the time of your termination date   shall immediately terminate.
    
	
 
    	
 
    	
 
    
	
Leaves of Absence
    	
 
    	
For purposes of this Option, your Service does not   terminate when you go on a bona fide   employee leave of absence that was approved by the Company in writing, if the   terms of the leave provide for continued Service crediting, or when continued   Service crediting is required by applicable law. However, your Service will   be treated as terminating 90 days after you went on employee leave, unless   your right to return to active work is guaranteed by law or by a contract.   Your Service terminates in any event when the approved leave ends unless you 
    

 

2

 

	
 
    	
 
    	
immediately return to active employee work.

 

The Company determines, in its sole discretion,   which leaves count for this purpose, and when your Service terminates for all   purposes under the Plan. The Company’s decision is final and binding.
    
	
 
    	
 
    	
 
    
	
Notice of Exercise
    	
 
    	
When you wish to exercise this Option, you must   notify the Company by filing a Notice of Option Exercise in substantially the   form attached hereto as Exhibit A. Your notice must specify how   many shares of Stock you wish to purchase (in a parcel of at least 100   shares, unless a lesser number remains available for exercise under the   Option). Your notice must also specify how your shares of Stock should be   registered (e.g., in your name only or in your and your spouse’s names as   joint tenants with right of survivorship). The notice will be effective when   it is received by the Company.

 

If someone else wants to exercise this Option after   your death, that person must prove to the Company’s satisfaction that he or   she is entitled to do so.
    
	
 
    	
 
    	
 
    
	
Form of Payment
    	
 
    	
When you submit your notice of exercise, you must   include payment of the Option Price for the shares of Stock you are   purchasing. Payment may be made in one (or a combination) of the following   forms:

 

·                  Cash,   your personal check, a cashier’s check, a money order or another cash equivalent   acceptable to the Company.

 

·                  To   the extent permitted by the Board, in its sole discretion, prior to an IPO,   by surrendering to the Company shares of Company stock. The value of the   surrendered shares, determined by the Board as of the effective date of the   Option exercise, will be applied to the Option Price.

 

·                  To   the extent a public market for the Stock exists as determined by the Company,   by delivery (on a form prescribed by the Company) of an irrevocable direction   to a licensed securities broker acceptable to the Company to sell shares of   Stock and to deliver all or part of the sale proceeds to the Company in   payment of the aggregate Option Price and any withholding taxes.
    
	
 
    	
 
    	
 
    
	
Withholding Taxes
    	
 
    	
You will not be allowed to exercise this Option   unless you make acceptable arrangements to pay any withholding or other taxes   that may be due as a result of the option exercise. In the event that the   Company determines that any federal, state, local or foreign tax or   withholding payment is required relating to the exercise or sale of shares of   Stock arising from this Option, the Company shall have the right to require   such payments from you, or withhold such amounts from other payments due to   you from the Company or any Affiliate. You shall pay to the Company or an   Affiliate, as the case may be, any 
    

 

3

 

	
 
    	
 
    	
amount that the Company or such Affiliate may   reasonably determine to be necessary to satisfy such obligation. Subject to   applicable law and to the prior approval of the Company or such Affiliate, as   the case may be, in their sole discretion, you may elect to satisfy such   obligations, in whole or in part, (i) by causing the Company or such   Affiliate to withhold shares of Stock otherwise issuable to you, or   (ii) by delivering to the Company or such Affiliate shares of Stock   already owned by you; provided that, in any such case, (x) you   may not satisfy such obligations with shares of Stock that are subject to any   forfeiture, unfulfilled vesting, or other similar requirements and   (y) any fraction of a share of Stock required to satisfy such tax   obligations shall be disregarded and the amount due shall be paid instead in   cash. The shares of Stock so delivered or withheld shall have an aggregate   Fair Market Value equal to such withholding obligations. The Fair Market   Value of the Stock used to satisfy such withholding obligation shall be   determined by the Company as of the date that the amount of tax to be   withheld is to be determined.
    
	
 
    	
 
    	
 
    
	
Issuance
    	
 
    	
The issuance of the Stock upon the exercise of this   Option shall be evidenced in such a manner as the Company, in its discretion,   will deem appropriate, including, without limitation, book-entry, registration   or issuance of one or more Stock certificates.
    
	
 
    	
 
    	
 
    
	
Transfer of Option
    	
 
    	
During your lifetime, only you (or, in the event of   your legal incapacity or incompetency, your guardian or legal representative)   may exercise this Option. You cannot transfer or assign this Option. For   instance, you may not sell this Option or use it as security for a loan. If   you attempt to do any of these things, this Option will immediately become   invalid. You may, however, dispose of this Option in your will or by grant to   certain Permitted Transferees (provided that such a disposition is in   compliance with Section 8.10 of the Plan), or it may be transferred upon   your death by the laws of descent and distribution.

 

Regardless of any marital property settlement   agreement, the Company is not obligated to honor a notice of exercise from   your spouse, nor is the Company obligated to recognize your spouse’s interest   in your Option in any other way.
    

 

4

 

	
Market Stand-off Agreement
    	
 
    	
You hereby agree that you will not, without prior   written consent of the managing underwriter, during the period commencing on   the date of the final prospectus relating to the IPO or other registration by   the Company of shares of its Stock or any other equity securities under the   Securities Act on a registration statement on Form S-1 or Form S-3,   and ending on the date specified by the Company and the managing underwriter   (such period not to exceed one hundred eighty (180) days) or, if required by   such underwriter, such longer period of time as is necessary to enable such   underwriter to issue a research report or make a public appearance that   relates to an earnings release or announcement by the Company within 15-18   days prior to or after the date that is one hundred eighty (180) days after   the effective date of the registration statement relating to such offering,   but in any event not to exceed two hundred ten (210) days following the   effective date of the registration statement relating to such offering   (i) 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 Stock or any securities convertible   into or exercisable or exchangeable (directly or indirectly) for Stock held   immediately before the effective date of the registration statement for such   offering or (ii) enter into any swap or other arrangement that transfers   to another, in whole or in part, any of the economic consequences of   ownership of such securities, whether any such transaction described in   clause (i) or (ii) above is to be settled by delivery of Stock or   other securities, in cash, or otherwise. The foregoing provisions shall not   apply to the sale of any shares to an underwriter pursuant to an underwriting   agreement. You further agree to execute such agreements as may be reasonably   requested by the underwriters in connection with such registration that are   consistent with these provisions or that are necessary to give further effect   thereto. Any discretionary waiver or termination of the restrictions of any   or all of such agreements by the Company or the underwriters shall apply pro rata   to all optionees subject to such agreements, based on the number of shares   subject to such agreements.
    
	
 
    	
 
    	
 
    
	
Investment Representation
    	
 
    	
If the sale of Stock under the Plan is not   registered under the Securities Act, but an exemption is available which   requires an investment or other representation, at the time of exercise you   shall provide the representations set forth in Exhibit B and such   other representations as are deemed necessary or appropriate by the Company   and its counsel.
    
	
 
    	
 
    	
 
    
	
Shareholders’ Agreement
    	
 
    	
You agree, as a condition of the grant of this   Option, (1) that you shall, as a condition for any exercise of this   Option, execute a Joinder Agreement substantially in the form attached hereto   as Exhibit C, whereby you shall become a party to the   Shareholders’ Agreement as a Party (as such term is defined in the   Shareholders’ Agreement) and (2) such other document(s) as   necessary to become a party to any other 
    

 

5

 

	
 
    	
 
    	
agreements or voting trusts as the Company may   require.
    
	
 
    	
 
    	
 
    
	
Right to Repurchase
    	
 
    	
Following termination of your Service, the Company   shall have the right to purchase all of those shares of Stock that you have   or will acquire under this Option pursuant the terms of the Shareholders’   Agreement.
    
	
 
    	
 
    	
 
    
	
Retention Rights
    	
 
    	
Neither your Option nor this Agreement constitutes   an agreement of employment or gives you the right to be retained by the   Company or an Affiliate in any capacity. Except as otherwise provided in any   applicable employment agreement between you and the Company, the Company and   its Affiliates reserve the right to terminate your Service at any time and   for any reason.
    
	
 
    	
 
    	
 
    
	
Stockholder Rights
    	
 
    	
You, or your estate or heirs, have no rights as a   stockholder of the Company until a certificate for your Option shares has   been issued (or an appropriate book entry has been made). No adjustments are   made for dividends or other rights if the applicable record date occurs   before your stock certificate is issued (or an appropriate book entry has   been made), except as described in the Plan.
    
	
 
    	
 
    	
 
    
	
Adjustments
    	
 
    	
In the event of a stock split, a stock dividend or a   similar change in the Stock, the number of shares covered by this Option and   the Option Price shall be adjusted (and rounded down to the nearest whole   number) if required pursuant to the Plan.
    
	
 
    	
 
    	
 
    
	
Legends
    	
 
    	
All certificates representing the Stock issued upon   exercise of this Option shall, where applicable, have endorsed thereon the   following legends:

 

“THESE SECURITIES HAVE   NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE   “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE   TRANSFERRED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR STATE SECURITIES   LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT SUCH   REGISTRATION IS NOT REQUIRED.

 

THE SECURITIES   REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO THE TERMS AND CONDITIONS   OF A SHAREHOLDERS AGREEMENT BY AND AMONG THE COMPANY AND THE HOLDERS   SPECIFIED THEREIN, A COPY OF WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL   OFFICE OF THE COMPANY. THE SALE, TRANSFER OR OTHER DISPOSITION OF THE   SECURITIES IS SUBJECT TO THE TERMS OF SUCH AGREEMENT AND THE SECURITIES ARE   TRANSFERABLE ONLY UPON PROOF OF COMPLIANCE 
    

 

6

 

	
 
    	
 
    	
THEREWITH.”
    
	
 
    	
 
    	
 
    
	
Applicable Law
    	
 
    	
This Agreement will be interpreted and enforced under   the laws of the State of Delaware, other than any conflicts or choice of law   rule or principle that might otherwise refer construction or   interpretation of this Agreement to the substantive law of another   jurisdiction.
    
	
 
    	
 
    	
 
    
	
The Plan
    	
 
    	
The text of the Plan is incorporated in this   Agreement by reference. Certain capitalized terms used in this Agreement are   defined in the Plan, and have the meaning set forth in the Plan.

 

This Agreement and the Plan constitute the entire   understanding between you and the Company regarding this Option. Any prior   agreements, commitments or negotiations concerning this Option are   superseded.
    
	
 
    	
 
    	
 
    
	
Shareholders’ Agreement
    	
 
    	
You agree, as a condition of the grant of this   option, you shall, as a condition to the grant of this option, execute a   counterpart signature page to the Shareholders’ Agreement as a   Stockholder (as such term is defined in the Shareholders’ Agreement) and such   other document(s) as necessary to become a party to any other agreements   or voting trusts as the Company may require.
    
	
 
    	
 
    	
 
    
	
Forfeiture of Rights
    	
 
    	
If you should take actions in competition with the   Company, the Company shall have the right to cause a forfeiture of your   rights, including, but not limited to, the right to cause: (i) a   forfeiture of any outstanding option, and (ii) with respect to the period   commencing twelve (12) months prior to your termination of Service with the   Company and ending twelve (12) months following such termination of Service   (A) a forfeiture of any gain recognized by you upon the exercise of an   option or (B) a forfeiture of any Stock acquired by you upon the   exercise of an option (but the Company will pay you the Option Price without   interest). Unless otherwise specified in an employment or other agreement   between the Company or an Affiliate and you, you take actions in competition   with the Company if you directly or indirectly, own, manage, operate, join or   control, or participate in the ownership, management, operation or control   of, or are a proprietor, director, officer, stockholder, member, partner or   an employee or agent of, or a consultant to any business, firm, corporation,   partnership or other entity which engages, directly or indirectly, in   research, developing, manufacturing, marketing, sale or licensing   pharmaceutical, medical device or specialty pharmaceutical products or   products in the healthcare sector; provided, however, being a   holder of less than 1% of the outstanding equity of a public company or   mutual fund shall not be deemed to be in competition with the Company.

 

If the Grantee is not a party to a non-competition   and confidentiality agreement with the Company on the date of this Agreement,   the 
    

 

7

 

	
 
    	
 
    	
Grantee concurrently herewith enter into such   non-competition and confidentiality agreement in a form reasonably acceptable   to the Company.
    
	
 
    	
 
    	
 
    
	
Parachute Limitations
    	
 
    	
Notwithstanding any other provision of this   Agreement, the Plan or of any other agreement, contract or understanding   heretofore or hereafter entered into by a Grantee with the Company or any   Affiliate thereof, except an agreement, contract or understanding that   expressly addresses Section 280G or Section 4999 of the Code (an “Other Agreement”), and notwithstanding any formal or   informal plan or other arrangement for the direct or indirect provision of   compensation to the Grantee (including groups or classes of participants or   beneficiaries of which the Grantee is a member), whether or not such   compensation is deferred, is in cash, or is in the form of a benefit to or   for the Grantee (a “Benefit Arrangement”),   if the Grantee is a “disqualified individual,” as defined in   Section 280G(c) of the Code, any Awards held by that Grantee and   any right to receive any payment or other benefit under this Agreement or the   Plan shall not become exercisable or vested (i) to the extent that such   right to exercise, vesting, payment, or benefit, taking into account all   other rights, payments, or benefits to or for the Grantee under this   Agreement, the Plan, all Other Agreements, and all Benefit Arrangements,   would cause any payment or benefit to the Grantee under this Agreement or the   Plan to be considered a “parachute payment” within the meaning of   Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of   receiving a Parachute Payment, the aggregate after-tax amounts received by   the Grantee from the Company under this Agreement, the Plan, all Other   Agreements, and all Benefit Arrangements would be less than the maximum   after-tax amount that could be received by the Grantee without causing any   such payment or benefit to be considered a Parachute Payment. In the event   that the receipt of any such right to exercise, vesting, payment, or benefit   under this Agreement or the Plan, in conjunction with all other rights,   payments, or benefits to or for the Grantee under any Other Agreement or any   Benefit Arrangement would cause the Grantee to be considered to have received   a Parachute Payment under this Agreement or the Plan that would have the   effect of decreasing the after-tax amount received by the Grantee as   described in clause (ii) of the preceding sentence, then those rights,   payments, or benefits under this Agreement, the Plan, any Other Agreements,   and any Benefit Arrangements shall be reduced or eliminated so as to avoid   having the payment or benefit to the Grantee under this Agreement or the Plan   be deemed to be a Parachute Payment. The Company shall reduce or eliminate   the Parachute Payments by first reducing or eliminating any cash payments   benefits (with the payments to be made furthest in the future being reduced   first), then by reducing or eliminating any accelerated vesting of stock   options, then by reducing or eliminating any accelerated vesting of   restricted stock, then by reducing or eliminating any other remaining 
    

 

8

 

	
 
    	
 
    	
Parachute Payments.
    
	
 
    	
 
    	
 
    
	
Data Privacy
    	
 
    	
In order to administer the Plan, the Company may   keep and process personal data about you. Such data includes but is not limited   to the information provided in this Agreement and any changes thereto, other   appropriate personal and financial data about you such as home address and   business addresses and other contact information, payroll information and any   other information that might be deemed appropriate by the Company to   facilitate the administration of the Plan.

 

By accepting this Option, you give explicit consent   to the Company to keep and process any such personal data. You also give   explicit consent to the Company to transfer any such personal data outside   the country in which you work or are employed, including, with respect to   non-U.S. resident optionees, to the United States, to transferees who shall   include the Company and other persons who are designated by the Company to   administer the Plan.
    
	
 
    	
 
    	
 
    
	
Consent to Electronic Delivery
    	
 
    	
The Company may choose to deliver certain statutory   materials relating to the Plan in electronic form. By accepting this grant   you agree that the Company may deliver the Plan prospectus and the Company’s   annual report to you in an electronic format. If at any time you would prefer   to receive paper copies of these documents, as you are entitled to, you may   request paper copies of these documents.
    
	
 
    	
 
    	
 
    
	
Severability
    	
 
    	
The provisions of this Agreement are severable and   if any one or more provisions are determined to be illegal or otherwise   unenforceable, in whole or in part, the remaining provisions shall   nevertheless be binding and enforceable.
    
	
 
    	
 
    	
 
    
	
Waiver
    	
 
    	
No waiver of any breach or condition of this   Agreement shall be deemed to be a waiver of any other or subsequent breach or   condition whether of like or different nature.
    
	
 
    	
 
    	
 
    
	
Entire Agreement
    	
 
    	
This Agreement and the Plan (and the other   agreements or documents referred to herein or therein) constitute the entire   contract between the parties hereto with regard to the subject matter hereof.   They supersede any other agreements, representations or understandings   (whether oral or written and whether express or implied) which relate to the   subject matter hereof.
    

 

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan.

 

*   *   *   *   *

 

9

 

Exhibit A

 

Form of Notice of Option Exercise

 

 

OptiNose, Inc.

1020 Stony Hill Road, Suite 300

Yardley, PA 19067

 

Dear Sir or Madam:

 

The undersigned (the “Purchaser”) elects to exercise his/her Option to purchase       shares of Common Stock of OptiNose, Inc. (the “Company”) under and pursuant to the Non-Qualified Stock Option Agreement dated as of                (the “Option Agreement”).

 

Purchaser herewith delivers to the Company the full purchase price for the Stock as follows.  (Check all that apply and complete as appropriate.  The total payment must equal the aggregate Option Price of the Stock.)

 

o                                   cash in the amount of $          .

 

o                                    check in the amount of $          .

 

o                                    by surrender of shares of Company stock owned by the individual with a value of $           represented by certificate(s) number           .

 

The name or names to be on the stock certificate or certificates issuable upon exercise and the address and Social Security Number of such person(s) is as follows:

 

	
Name:
    	
 
    
	
 
    
	
Address:
    	
 
    
	
 
    
	
Social Security Number:
    	
 
    
				

 

The Plan and the Option Agreement are incorporated herein by reference.  This Agreement, the Plan and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of the State of Delaware.

 

	
Very truly yours,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Purchaser
    

 

 

Exhibit B

 

Investment Representations and Warranties

 

The Grantee hereby represents and warrants to the Company that:

 

1.              The Option and the shares that may be acquired by exercising the Option (the “Purchased Shares”) received by him or her will be held by him or her for investment only for his or her own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof in violation of applicable U.S. federal or state or foreign securities laws.  The Grantee has no current intention of selling, granting participation in or otherwise distributing the Option or Purchased Shares in violation of applicable U.S. federal or state or foreign securities laws.  The Grantee does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation to such person or entity, or to any third person or entity, with respect to any of the Option or Purchased Shares, in each case, in violation of applicable U.S. federal or state or foreign securities laws.

 

2.              The Grantee understands that the issuance of the Option and Purchased Shares has not been registered under the Securities Act or any applicable U.S. state or foreign securities laws, and that the Option and Purchased Shares are being issued in reliance on an exemption from registration, which exemption depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Grantee’s representations as expressed herein.

 

3.              The Grantee has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of his or her owning the Option and Purchased Shares.  The Grantee is a sophisticated investor, has relied upon independent investigations made by the Grantee and, to the extent believed by the Grantee to be appropriate, the Grantee’s representatives, including the Grantee’s own professional, tax and other advisors, and is making an independent decision to invest in the Option and Purchased Shares.  The Grantee has been furnished with such documents, materials and information that the Grantee deems necessary or appropriate for evaluating an investment in the Company, and the Grantee has read carefully such documents, materials and information and understands and has evaluated the types of risks involved with holding the Option and Purchased Shares.  The Grantee has not relied upon any representations or other information (whether oral or written) from the Company or its shareholders, directors, officers or affiliates, or from any other person or entity, in connection with his or her investment in the Option and Purchased Shares.  The Grantee acknowledges that the Company has not given any assurances with respect to the tax consequences of the ownership and disposition of the Option and Purchased Shares.

 

4.              The Grantee has had, prior to his or her being granted the Option and Purchased Shares, the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of the transactions contemplated by the Agreement and the Grantee’s holding of the Option and Purchased Shares and to obtain additional information necessary to verify the accuracy of any information furnished to his or her or

 

 

to which he or she had access.  The Grantee confirms that he or she has satisfied himself or herself with respect to any of the foregoing matters.

 

5.              The Grantee acknowledges that he or she has had the opportunity to seek legal advice and all documents, materials and information that he or she has requested or read relating to holding the Option or Purchased Shares and confirms that he or she has satisfied himself or herself with respect to any of the foregoing matters.

 

6.              The Grantee understands that no U.S. federal or state or foreign agency has passed upon the Option or Purchased Shares or upon the Company, or upon the accuracy, validity or completeness of any documentation provided to the Grantee in connection with the transactions contemplated by the Agreement, nor has any such agency made any finding or determination as to holding the Option or Purchased Shares.

 

7.              The Grantee understands that there are substantial restrictions on the transferability of the Option and Purchased Shares and that on the date of the Agreement and for an indefinite period thereafter there will be no public market for the Option or Purchased Shares and, accordingly, it may not be possible for the Grantee to liquidate his or her investment in case of emergency, if at all.  In addition, the Grantee understands that the Agreement and Shareholders’ Agreement contain substantial restrictions on the transferability of the Option and Purchased Shares and provide that, in the event that the conditions relating to the transfer of any Option or Purchased Shares in such document has not been satisfied, the holder shall not transfer any such Option or Purchased Shares, and unless otherwise specified the Company will not recognize the transfer of any such Option or Purchased Shares on its books and records or issue any share certificates representing any such Option or Purchased Shares, and any purported transfer not in accordance with the terms of the Agreement or the Shareholders’ Agreement shall be void.  As such, Grantee understands that: a restrictive legend or legends in a form to be set forth in the Agreement and the Shareholders’ Agreement will be placed on the certificates representing the Option and Purchased Shares; a notation will be made in the appropriate records of the Company indicating that each of the Option and Purchased Shares are subject to restrictions on transfer and, if the Company should at some time in the future engage the services of a securities transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the Option and Purchased Shares; and the Grantee will sell, transfer or otherwise dispose of the Option or Purchased Shares only in a manner consistent with its representations set forth herein and then only in accordance with the Agreement and the Shareholders’ Agreement.

 

8.              The Grantee understands that (i) neither the Option nor the Purchased Shares may be sold, transferred or otherwise disposed of without registration under the Securities Act or an exemption therefrom, (ii) the Option and Purchased Shares have not been registered under the Securities Act; (iii) the Option and Purchased Shares must be held indefinitely and he or she must continue to bear the economic risk of holding the Option and Purchased Shares unless such Option and Purchased Shares are subsequently registered under the Securities Act or an exemption from such registration is available; (iv) the Grantee is prepared to bear the economic risk of holding the Option and Purchased

 

 

Shares for an indefinite period of time; (v) it is not anticipated that there will be any public market for the Option or Purchased Shares; (vi) the Option and Purchased Shares are characterized as “restricted securities” under the U.S. federal securities laws; and (vii) the Option and Purchased Shares may not be sold, transferred or otherwise disposed of except in compliance with federal, state and local law.

 

9.              The Grantee understands that an investment in the Option or Purchased Shares is not recommended for investors who have any need for a current return on this investment or who cannot bear the risk of losing their entire investment.  In that regard, the Grantee understands that his or her holding the Option and Purchased Shares involves a high degree of risk of loss.  The Grantee acknowledges that: (i) he or she has adequate means of providing for his or her current needs and possible personal contingencies and has no need for liquidity in this investment; (ii) his or her commitment to investments which are not readily marketable is not disproportionate to his or her net worth; and (iii) his or her holding the Option and Purchased Shares will not cause his or her overall financial commitments to become excessive.

 

 

Exhibit C

 

Joinder Agreement

 

This Joinder Agreement (“Joinder Agreement”) is executed by the undersigned (the “Grantee”) pursuant to the terms of that certain Amended and Restated Shareholders’ Agreement dated as of July 22, 2014, as amended (the “Agreement”) by and among OPTINOSE, INC. (the “Company”), and the parties named therein.  Capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Agreement.  By the execution of this Joinder Agreement, the Grantee agrees as follows:

 

(a)                                 Acknowledgment.  Grantee acknowledges that Grantee is subject to the terms and conditions of the Agreement.

 

(b)                                 Agreement.  Grantee (i) agrees that any shares of the Company acquired by Grantee shall be bound by and subject to the terms of the Agreement, and (ii) hereby adopts the Agreement as an Existing Shareholder with the same force and effect as if Grantee were originally a party thereto.

 

(c)                                  Notice.  Any notice required or permitted by the Agreement shall be given to Grantee at the address listed beside Grantee’s signature below.

 

 

	
EXECUTED AND DATED this           day of                   ,   20
    
	
 
    	
 
    
	
 
    	
GRANTEE:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
[Name]
    
	
 
    	
[Title]
    

 

Address:

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