Document:

EXHIBIT 4.2

 

FORM OF

 

MARINUS PHARMACEUTICALS, INC.

 

 

THIRD AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

               , 2014

 

 

Table of Contents

 

	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Registration Rights
    	
1
    
	
 
    	
 
    	
 
    
	
 
    	
1.1
    	
Definitions
    	
1
    
	
 
    	
1.2
    	
Request for Registration
    	
3
    
	
 
    	
1.3
    	
Company Registration
    	
4
    
	
 
    	
1.4
    	
Obligations of the Company
    	
4
    
	
 
    	
1.5
    	
Furnish Information
    	
6
    
	
 
    	
1.6
    	
Expenses of Demand Registration
    	
7
    
	
 
    	
1.7
    	
Expenses of Company Registration
    	
7
    
	
 
    	
1.8
    	
Underwriting Requirements
    	
7
    
	
 
    	
1.9
    	
Delay of Registration
    	
8
    
	
 
    	
1.10
    	
Indemnification
    	
8
    
	
 
    	
1.11
    	
Form S-3 Registration
    	
10
    
	
 
    	
1.12
    	
Limitations on Subsequent Registration Rights
    	
11
    
	
 
    	
1.13
    	
“Market Stand-Off” Agreement
    	
11
    
	
 
    	
1.14
    	
Assignment of Registration Rights
    	
12
    
	
 
    	
1.15
    	
Reports Under the Securities Exchange Act of 1934
    	
12
    
	
 
    	
1.16
    	
Termination of Registration Rights
    	
13
    
	
2.
    	
Miscellaneous
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Successors and Assigns
    	
13
    
	
 
    	
2.2
    	
Governing Law
    	
13
    
	
 
    	
2.3
    	
Counterparts; Facsimile or Electronic Signatures
    	
13
    
	
 
    	
2.4
    	
Titles and Subtitles; References
    	
13
    
	
 
    	
2.5
    	
Notices
    	
13
    
	
 
    	
2.6
    	
Attorneys’ Fees
    	
14
    
	
 
    	
2.7
    	
Amendments; Waivers
    	
14
    
	
 
    	
2.8
    	
Severability
    	
14
    
	
 
    	
2.9
    	
Aggregation of Stock
    	
14
    
	
 
    	
2.10
    	
Entire Agreement
    	
14
    
	
 
    	
2.11
    	
Amendment and Restatement
    	
14
    
	
 
    	
 
    	
 
    
	
 
    	
Schedule A — List of Investors
    	
 
    

 

i

 

MARINUS PHARMACEUTICALS, INC.

 

THIRD AMENDED AND RESTATED
  INVESTORS’ RIGHTS AGREEMENT

 

THIS THIRD AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is made as of                                 , 2014, by and among Marinus Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the parties listed on Schedule A hereto (together with such other parties who may become parties hereto pursuant to the terms hereof, collectively, the “Investors” and each individually, an “Investor”).

 

RECITALS

 

A.                                    The Company and the Investors were parties to a Second Amended and Restated Investors’ Rights Agreement dated as of December 4, 2012 (the “Prior Rights Agreement”).

 

B.                                    The Investors currently hold shares of Preferred Stock (as defined below).

 

C.                                    In connection with the IPO (as defined below), the Preferred Stock is being automatically converted into Common Stock and the Company and the other parties to the Prior Rights Agreement desire to amend and restate the Prior Rights Agreement in its entirety as set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:

 

1.                                      Registration Rights.  The Company covenants and agrees as follows:

 

1.1                               Definitions.  For purposes of this Agreement:

 

(a)                                 The term “Act” means the Securities Act of 1933, as amended.

 

(b)                                 The term “Common Stock” means the common stock, par value $0.001 per share, of the Company.

 

(c)                                  The terms “Form S-1”, “Form S-3” and “Form S-8” mean such forms under the Act as in effect on the date hereof or any successor registration form, document or policy subsequently adopted by the SEC to replace such forms, or in the case of Form S-3, any registration form under the Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC.

 

(d)                                 The term “Holder” means any person owning or having the right to acquire Registrable Securities or any permitted assignee thereof.

 

(e)                                  The term “IPO” shall mean the closing of the Company’s first firm commitment underwritten public offering pursuant to a registration statement filed with the

 

 

Securities and Exchange Commission and declared effective under the Act covering the offer and sale of Common Stock for the account of the Company to the public resulting in gross offering proceeds to the Company of at least $20,000,000.

 

(f)                                   The term “1934 Act” means the Securities Exchange Act of 1934, as amended.

 

(g)                                  The term “Preferred Stock” means Series A Preferred Stock, $0.001 par value per share, Series B Preferred Stock, $0.001 par value per share and Series C Preferred Stock, $0.001 par value per share.

 

(h)                                 The term “register,” “registered,” and “registration” refer to a registration effected by preparing and filing with the SEC a registration statement or similar document in compliance with the Act, and the declaration or ordering of effectiveness of such registration statement or document.

 

(i)                                     The term “Registrable Securities” means all shares of Common Stock held by the Investors, including shares of Common Stock issuable or issued upon the conversion of the Preferred Stock (including without limitation shares of Preferred Stock issued upon exercise of the Warrants), and any Common Stock issued upon any stock split, stock dividend, recapitalization, or similar event, dividend or other distribution with respect to, or in exchange for or in replacement of the foregoing excluding in all cases, however (1) any Registrable Securities sold by a person in a transaction in which such person’s rights under Section 1 are not assigned or (2) any Common Stock held by a Holder that ceases to have registration rights in accordance with Section 1.6.

 

(j)                                    The number of shares of “Registrable Securities then Outstanding” shall be the sum of (i) the number of shares of Common Stock outstanding which are Registrable Securities, plus (ii) the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are Registrable Securities.

 

(k)                                 The term “SEC” shall mean the Securities and Exchange Commission.

 

(l)                                     The term “Warrants” shall mean all warrants exercisable for shares of Preferred Stock issued and outstanding immediately prior to the IPO.

 

(m)                             With respect to Purdue Neuroscience Company, the terms “affiliate,” “control” and “controlled” shall have the meaning set forth in this subsection (n): “affiliates” shall mean any corporation, partnership, limited liability company or other entity or combination thereof that directly or indirectly owns or controls Purdue Neuroscience Company, is owned or controlled by Purdue Neuroscience Company or is under common ownership or control with Purdue Neuroscience Company; and the terms “control” and “controlled” shall mean ownership of 50% or more, including ownership by trusts with substantially the same beneficial interests, of the voting and equity rights of such corporation, partnership, limited liability company or other entity or combination thereof or the power to direct the management of such corporation, partnership, limited liability company or other entity or combination thereof.

 

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1.2                               Request for Registration.

 

(a)                                 If the Company shall receive at any time after the one (1) year anniversary of the effective date of the IPO (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or a SEC Rule 145 transaction that does not cause any securities of the Company similar to the Registrable Securities to be listed on a securities exchange), a written request from the Holders of at least 50% of the Registrable Securities then outstanding that the Company (determined on an as-converted to Common Stock basis) file a registration statement under the Act covering the registration of Registrable Securities then outstanding having an anticipated aggregate offering price of not less than $[5,000,000], then the Company shall:

 

(i)                                     within ten (10) days of the receipt thereof, give written notice of such request to all Holders; and

 

(ii)                                  use its reasonable best efforts to effect, as soon as practicable, the registration under the Act of all Registrable Securities which the Holders request (within twenty (20) days of the mailing of such notice by the Company in accordance hereof) to be registered, subject to the limitations of subsection 1.2(b).

 

(b)                                 If the Holders initiating the registration request hereunder (“Initiating Holders”) intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to subsection 1.2(a) and the Company shall include such information in the written notice referred to in subsection 1.2(a).  The underwriter will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Initiating Holders.  In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in subsection 1.4(c)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting.  Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Company or the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Company shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all participating Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each Holder (determined on an as-converted to Common Stock basis); provided, however, that the number of shares of Registrable Securities to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting.

 

(c)                                  Notwithstanding the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2, a certificate signed by the Chief Executive Officer of the Company stating that in the good faith judgment of the Board of

 

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Directors of the Company (the “Board”), it would be materially detrimental to the Company and its stockholders for such registration statement to be filed and it is therefore necessary to defer the filing of such registration statement, the Company shall have the right to defer taking action with respect to such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve (12) month period.

 

(d)                                 In addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this Section 1.2:

 

(i)                                     After the Company has effected two (2) registrations pursuant to this Section 1.2 and such registrations have been declared or ordered effective provided that either (A) the conditions of Section 1.4(a) have been satisfied or (B) the registration statements continue to remain effective and there are no stop orders in effect with respect to such registration statements;

 

(ii)                                  If the Company delivers in good faith, within thirty (30) days of the initiation of a registration request pursuant to this Section 1.2, a written notice to the Initiating Holders that the Company intends to file a registration statement for the IPO, then during the period commencing with the date of the giving of such notice by the Company, and ending ninety (90) days thereafter; or

 

(iii)                               During the period starting with the effective date of a registration subject to Section 1.3 hereof for the IPO and ending on the 180th day after such effective date.

 

1.3                               Company Registration.  If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its stock or other securities under the Act in connection with the public offering of such securities solely for cash (other than (i) a registration in connection with, and relating solely to, the IPO, (ii) a registration relating solely to the sale of securities to participants in a Company stock option plan or stock purchase plan, (iii) a registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered or (v) an SEC Rule 145 transaction), the Company shall, at such time, promptly give each Holder of shares of Registrable Securities written notice of such registration.  Upon the written request of a Holder of shares of Registrable Securities, given within twenty (20) days after receipt of such notice by the Company in accordance with Section 2.5, the Company shall, subject to the provisions of Section 1.8, use its reasonable best efforts to cause to be registered under the Act all of the Registrable Securities that each such Holder has requested to be registered.

 

1.4                               Obligations of the Company.  Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

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(a)                                 Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its reasonable best efforts to cause such registration statement to become effective, and keep such registration statement effective for a period of up to one hundred twenty (120) days or until the distribution contemplated in the Registration Statement has been completed; provided, however, that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains from selling any securities included in such registration at the request of the Company or an underwriter of Common Stock (or other securities) of the Company; and (ii) in the case of any registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, such one hundred twenty (120) day period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold, provided that Rule 415, or any successor rule under the Act, permits an offering on a continuous or delayed basis, and provided further that applicable rules under the Act governing the obligation to file a post-effective amendment permit, in lieu of filing a post-effective amendment which (I) includes any prospectus required by Section 10(a)(3) of the Act or (II) reflects facts or events representing a material or fundamental change in the information set forth in the registration statement, the incorporation by reference of information required to be included in (I) and (II) above to be contained in periodic reports filed pursuant to Sections 13 or 15(d) of the 1934 Act in the registration statement.

 

(b)                                 Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such registration statement.

 

(c)                                  Furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them.

 

(d)                                 Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Act.

 

(e)                                  In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering.  Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 

(f)                                   Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not

 

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misleading in the light of the circumstances then existing.  The Company shall promptly prepare and furnish to such Holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchaser of such shares, such prospectus will not include an untrue statement of material fact or omit to state a material fact necessary to make statements therein, in light of the circumstances under which they were made, not misleading.

 

(g)                                  Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then listed.

 

(h)                                 Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration.

 

(i)                                     Furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, with (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and (ii) a letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities;

 

(j)                                    Notify each Holder promptly after the Company receives notice thereof, of the time when such registration statement has become effective or a supplement of such registration has been filed;

 

(k)                                 Advise each Holder promptly after the Company shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the SEC suspending the effectiveness of such registration statement or the threatening of any proceeding for such purpose and promptly use all reasonable best efforts to prevent the issuance of any stop order should such be issued; and;

 

(l)                                     Make generally available to its security holders, and to deliver to the Holders an earnings statement of the Company (that will satisfy the provisions of Section 11(a) of the Act) covering a period of twelve (12) months beginning after the effective date of the registration statement (as defined in Rule 158(c) under the Act) as soon as is reasonably practicable after the termination of such twelve (12) month period.

 

1.5                               Furnish Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities

 

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of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s Registrable Securities.

 

1.6                               Expenses of Demand Registration.  All expenses (other than underwriting discounts and commissions) including without limitation all registration, filing and qualification fees, printers’ and accounting fees, reasonable fees and expenses of one special counsel to the Holders (such special counsel to be selected by a majority in interest of the selling Holders) and fees and disbursements of counsel for the Company shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (determined on an as-converted to Common Stock basis), in which case all participating Holders shall bear such expenses, unless the Holders of a majority of the Registrable Securities (determined on an as-converted to Common Stock basis) agree to forfeit their right to their demand registration pursuant to Section 1.2; provided further, however, that if at the time of such withdrawal, the Holders have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness following disclosure of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 1.2.

 

1.7                               Expenses of Company Registration.  The Company shall bear and pay all expenses incurred in connection with any registration, filing or qualification of Registrable Securities with respect to the registrations pursuant to Section 1.3 for each Holder (which right may be assigned as provided herein), including all registration, filing, and qualification fees, and printers and accounting fees relating or apportionable thereto and the reasonable fees and expenses incurred by one special counsel to such selling Holders selected by a majority in interest of the selling Holders (determined on an as-converted to Common Stock basis), but excluding underwriting discounts and commissions relating to the Registrable Securities and any applicable stock transfer fees.

 

1.8                               Underwriting Requirements.  In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under Section 1.3 to include any of the Holders’ securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by other persons entitled to select the underwriters), and then only in such quantity, if any, as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company.  If the total amount of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the offering, then in such event the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering; provided, however, that any such limitation by the underwriters will be apportioned as follows: (i) all securities other than Registrable Securities will be excluded from the registration first, and (ii) to the extent still required by the underwriters, the Registrable Securities requested

 

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to be registered by the Holders shall be excluded from such registration subject to the following sentences.  If a limitation on the number of shares is still required, the number of shares of Registrable Securities that may be included in the registration and underwriting shall be allocated among all participating Holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities (determined on an as-converted to Common Stock basis) requested for inclusion in such Registration held by such Holders at the time of filing the registration statement.  For purposes of the preceding sentence concerning apportionment, for any selling stockholder which is a Holder of Registrable Securities and which is a partnership, limited liability company or corporation, the affiliates, partners, retired partners, members, retired members and stockholders of such holder, or the estates and family members of any such partners and retired partners, members and retired members and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling stockholder,” and any pro-rata reduction with respect to such “selling stockholder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling stockholder,” as defined in this sentence.  Notwithstanding the foregoing, the number of Registrable Securities included in such registration and underwriting shall not be reduced below ten percent (10%) of the securities included in such registration.  No Registrable Securities or other securities excluded from the underwriting by reason of this Section 1.8 shall be included in such registration statement.

 

1.9                               Delay of Registration.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1.

 

1.10                        Indemnification.  In the event any Registrable Securities are included in a registration statement under this Section 1:

 

(a)                                 To the extent permitted by law, the Company will indemnify and hold harmless each Holder, each of such Holder’s officers, directors, partners, members, stockholders and managers, any underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Act or the 1934 Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Act, the 1934 Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (joint or several) (or actions, proceedings or settlements in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Act, the 1934 Act, any state securities law or any rule or regulation promulgated under the Act, the 1934 Act or any state securities law; and the Company will reimburse each such Holder, officer, director, partner, member, stockholder, manager, underwriter or controlling person, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action, proceeding or settlement; provided, however, that the indemnity agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action or proceeding if such settlement is

 

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effected without the consent of the Company (which consent shall not be unreasonably withheld or delayed), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action or proceeding to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration, and duly executed, by any such Holder, underwriter or controlling person.

 

(b)                                 To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Act, any underwriter, any other Holder selling securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Act, the 1934 Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions, proceeding or settlement in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information expressly furnished, and duly executed, by such Holder for use in connection with such registration; and each such Holder will pay any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this subsection 1.10(b), in connection with investigating or defending any such loss, claim, damage, liability, or action, proceeding or settlement; provided, however, that the indemnity agreement contained in this subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action or proceeding if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld); provided, that, in no event shall any indemnity under this subsection 1.10(b) exceed the net proceeds from the offering received by such Holder.

 

(c)                                  Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding.  The failure to deliver written notice to the indemnifying party within a reasonable time after the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.10, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.10.

 

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(d)                                 If the indemnification provided for in this Section 1.10 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage, or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

 

(e)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are expressly in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 

(f)                                   The obligations of the Company and Holders under this Section 1.10 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise.

 

1.11                        Form S-3 Registration.  In case the Company shall receive from any Holder or Holders of the Registrable Securities then outstanding a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company will:

 

(a)                                 promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and

 

(b)                                 use its reasonable best efforts to effect, as soon as practicable, such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within 15 days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 1.11: (1) if Form S-3 is not available for such offering by the Holders; (2) if the participating Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an anticipated aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $1,000,000; (3) if the Company has, within the twelve (12) month period preceding the date of such request, already effected two (2) registrations on Form S-3 for the Holders pursuant to this Section 1.11; or (4) in any particular jurisdiction in which the Company would be required to qualify to do business or

 

10

 

to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company is already subject to service in such jurisdiction and except as may be required by the Act.

 

(c)                                  Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders.  All expenses incurred in connection with a registration requested pursuant to Section 1.11, including (without limitation) all registration, filing, qualification, printer’s and accounting fees, reasonable fees and expenses for one special counsel for the Holders associated with Registrable Securities (such special counsel to be selected by the Holders of at least a majority in interest of the outstanding Registrable Securities (determined on an as-converted to Common Stock basis) requesting such registration) and the fees and disbursements of counsel for the Company, but excluding any underwriters’ discounts or commissions, shall be borne by the Company.  Registrations effected pursuant to this Section 1.11 shall not be counted as demands for registration or registrations effected pursuant to Sections 1.2 or 1.3, respectively.

 

1.12                        Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of at least 70% of the outstanding Registrable Securities (determined on an as-converted to Common Stock basis), enter into any agreement with any holder or prospective holder of any securities of the Company which would give such holder or prospective holder any registration rights if (a) such registration rights would be pari passu with, or senior to, any registration rights provided under this Agreement or (b) such holder would not be bound by obligations similar to the obligations of the Holders set forth in Section 1.13.

 

1.13                        “Market Stand-Off” Agreement.  Each Holder hereby agrees that, during the period of duration specified by the Company and an underwriter of Common Stock or other securities of the Company, following the effective date of a registration statement of the Company filed under the Act, it shall not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any securities of the Company held by it at any time during such period except Common Stock included in such registration; provided, however, that:

 

(a)                                 such agreement shall be applicable only to the first such registration statement of the Company which covers Common Stock to be sold on behalf of the Company in the IPO;

 

(b)                                 all officers, directors and 1% or greater stockholders of the Company enter into similar agreements; and

 

(c)                                  such market stand-off time period shall not exceed one hundred eighty (180) days from the effective date of the registration statement.

 

11

 

In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period.

 

Notwithstanding the foregoing, the obligations described in this Section 1.13 shall not apply to a registration relating solely to employee benefit plans on Form S-l or Form S-8 or similar forms which may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms which may be promulgated in the future.

 

1.14                        Assignment of Registration Rights.  The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities provided:  (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including without limitation the provisions of Section 1.13 above; and (c) the transfer: (i) involves a transfer of at least Five Hundred Thousand (500,000) shares (as adjusted for stock splits, stock dividends, reverse stock splits or other similar transactions) of Registrable Securities (or all Registrable Securities, if such Holder holds less than Five Hundred Thousand (500,000)), (ii) is to another Investor who has such registration rights, (iii) is to current, former or retired limited or partners, members, managers, stockholders or other affiliates of the transferor, (iv) any affiliated fund of any Investor that is a partnership or limited liability company, or (v) any spouse or direct lineal descendant of any Investor or transferee thereof or a trust for the benefit of any such persons.

 

1.15                        Reports Under the Securities Exchange Act of 1934.  With a view to making available to the Holders the benefits of Rule 144 promulgated under the Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell Registrable Securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:

 

(a)                                 make and keep public information available, as those terms are understood and defined in SEC Rule 144, at all times after ninety (90) days after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public;

 

(b)                                 take such action, including the voluntary registration of its Common Stock under Section 12 of the 1934 Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its securities to the general public is declared effective;

 

(c)                                  file with the SEC in a timely manner all reports and other documents required of the Company under the Act and the 1934 Act at any time after it has become subject to such reporting requirements; and

 

12

 

(d)                                 furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the first registration statement filed by the Company), the Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form.

 

1.16                        Termination of Registration Rights.  No Holder shall be entitled to exercise any right provided for in this Section 1 following the earlier of the following to occur: (i) six (6) years following the consummation of the sale of securities pursuant to the IPO or (ii) the date on which such Holder holds less than one percent (1%) of the Company’s outstanding capital stock and all Registrable Securities held by such Holder may be sold under Rule 144 under the Act within a single ninety (90) day period.

 

2.                                      Miscellaneous.

 

2.1                               Successors and Assigns.  Except as otherwise provided herein, 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 (including permitted transferees of any shares of Registrable Securities).  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.

 

2.2                               Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to the principles of conflicts of laws thereof.

 

2.3                               Counterparts; Facsimile or Electronic Signatures.  This Agreement may be executed 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.  Signatures hereto delivered by facsimile or electronic transmission shall, in the absence of fraud, be deemed effective for purposes of execution hereof.

 

2.4                               Titles and Subtitles; References.  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. All references herein to a section or subsection shall mean and refer to a section or subsection of this Agreement unless otherwise expressly provided.

 

2.5                               Notices.  Any notices required in connection with this Agreement shall be in writing and shall be deemed effectively given or received: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed facsimile if sent during normal business hours of the recipient; if not, then on the next day, (iii) five (5) days after having been sent by registered or

 

13

 

certified mail, return receipt requested, postage prepaid, or (iv) two (2) days after deposit with a nationally recognized overnight courier, specifying next day delivery, with written notification of receipt.  All notices shall be addressed to a party at the address therefor appearing on Schedule A hereto (or, in the case of the Company, on its signature page hereto) or on the books of the Company or at such other address as such party may designate by five (5) days’ advance written notice to the Company.

 

2.6                               Attorneys’ Fees.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

 

2.7                               Amendments; Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Investors holding at least [seventy percent (70%)] of the Registrable Securities then outstanding (determined on an as-converted to Common Stock basis).  Any amendment or waiver effected in accordance with this Section 2.7 shall be binding upon each holder of any Registrable Securities then outstanding, each future holder of all such Registrable Securities, and the Company.  Notwithstanding the foregoing, this Agreement may be amended with only the written consent of the Company for the sole purpose of including transferees of shares in connection with any Transfer permitted hereby, which amendments may be effectuated by the execution of a signature page hereto by such transferee and to amend Schedule A attached hereto to reflect the names of such additional Investor.

 

2.8                               Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

2.9                               Aggregation of Stock.  All shares of Registrable Securities 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.

 

2.10                        Entire Agreement.  This Agreement (including the Exhibits hereto, if any) constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof and any and all other written or oral agreements relating to the subject matter hereof existing among any of the parties hereto are expressly canceled.

 

2.11                        Amendment and Restatement.  Contingent upon execution of this Agreement by the Company and the holders of the requisite percentage of the outstanding shares of the Registrable Securities (as provided in the Prior Rights Agreement) and effective immediately prior to the closing of the IPO, the Prior Rights Agreement is hereby amended and restated in its entirety to read as set forth in this Agreement, and the Company and the Investors hereby agree to be bound by the provisions hereof as the sole agreement of the parties hereto with respect to the rights set forth herein.

 

14

 

(Signature pages follow.)

 

15

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
MARINUS PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Christopher M. Cashman
    
	
 
    	
 
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
 
    
	
 
    	
21 Business Park Drive
    
	
 
    	
Branford, CT 06405
    

 

[Signature Page To Third Amended and Restated Investors’ Rights Agreement]

 

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
DOMAIN PARTNERS VI, L.P.
    
	
 
    	
By:
    	
One Palmer Square Associates VI, L.L.C.
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Kathleen K. Schoemaker
    
	
 
    	
 
    	
Title: Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DP VI ASSOCIATES, L.P.
    
	
 
    	
By:
    	
One Palmer Square Associates VI, L.L.C.
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Kathleen K. Schoemaker
    
	
 
    	
 
    	
Title: Managing Member
    
				

 

[Signature Page To Third Amended and Restated Investors’ Rights Agreement]

 

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
CANAAN VII L.P.
    
	
 
    	
 
    
	
 
    	
By: Canaan Partners VII LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Wende S. Hutton
    
	
 
    	
 
    	
Title: Manager/Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HUTTON LIVING TRUST DATED 12/10/96
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Wende Hutton, Trustee
    

 

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
SOFINNOVA VENTURE PARTNERS VI, L.P.
    
	
 
    	
 
    
	
 
    	
As nominee for:
    
	
 
    	
Sofinnova Venture Partners VI, L.P.
    
	
 
    	
Sofinnova Venture Partners VI   GmbH & Co. K.G.
    
	
 
    	
Sofinnova Venture Affiliates VI, L.P.
    
	
 
    	
 
    
	
 
    	
By: Sofinnova Management VI, LLC,
    
	
 
    	
Its: General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: James Healy
    
	
 
    	
 
    	
Title: Managing Member
    

 

[Signature Page To Third Amended and Restated Investors’ Rights Agreement]

 

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
FOUNDATION MEDICAL PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By: Foundation Medical Managers, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Harry T. Rein
    
	
 
    	
 
    	
Title: Managing Member
    

 

[Signature Page To Third Amended and Restated Investors’ Rights Agreement]

 

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
RMI INVESTMENTS, S.À R.L.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Vladimir Gurdus
    
	
 
    	
 
    	
Title: Director
    

 

[Signature Page To Third Amended and Restated Investors’ Rights Agreement]

 

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
NUMODA CAPITAL INNOVATIONS LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page To Third Amended and Restated Investors’ Rights Agreement]

 

 

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, hereby agrees that, effective as of the date set forth below, the undersigned shall be bound by and shall be a party to the Third Amended and Restated Investor Rights Agreement dated as of                 , 2014 by and among Marinus Pharmaceuticals, Inc. and the investors who are parties thereto, as amended, as an “Investor” thereunder.

 

	
Date:
    	
 
    	
 
    	
Individuals Sign Below:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature (if more than one)*
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name (if more than one)*
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Corporations, Trusts, Partnerships, Limited   Liability Companies, Retirement Plans, Retirement Accounts or Other Entities   Sign Below:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name of Investor (please print)
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(print name and title of signatory)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address and Facsimile:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

*If joint investors, both must sign.

 

[Signature Page To Third Amended and Restated Investors’ Rights Agreement]

 

 

SCHEDULE A

 

LIST OF INVESTORS

 

RMI Investments, S.à r.l.
 D-Pharma, LLC — Team Drive
 29/22 1st Brestskaya Street
 8th Floor
 Moskow, RU 125047
 Attn: Inal Tomaev

 

Canaan VII L.P.
 285 Riverside Avenue
 Suite 250
 Westport, Connecticut 06880

 

Hutton Living Trust dated 12/10/96
 285 Riverside Avenue
 Suite 250
 Westport, Connecticut 06880

Attn: Wende Hutton

 

Domain Partners VI, L.P.
 c/o Domain Associates, L.L.C.
 One Palmer Square
 Princeton, NJ 08542
 Attn:  Nicole Vitullo

 

with a copy to:

 

Domain Associates, L.L.C.
 One Palmer Square
 Princeton, NJ 08542
 Attn: Kathleen K. Schoemaker

 

DP VI Associates, L.P.
 c/o Domain Associates, L.L.C.
 One Palmer Square
 Princeton, NJ 08542
 Attn:  Nicole Vitullo

 

With a copy to:

 

Domain Associates, L.L.C.
 One Palmer Square
 Princeton, NJ 08542
 Attn: Kathleen K. Schoemaker

 

A-1

 

Sofinnova Venture Partners VI, L.P.
 2800 Sand Hill Road, Suite 150
 Menlo Park, CA 94025

 

Foundation Medical Partners, L.P.
 105 Rowayton Avenue
 Rowayton, CT 06853

 

Felice Blum
 17734 Foxborough Lane

Boca Raton, FL 33496

 

Barbara Blum Shaw
 83 Steephill Road

Weston, CT 06883

 

Karen Cassot
 5 Andrion Court

East Northport, NY 11731

 

Barry Chaiken
 625 Park Avenue

New York, NY 10065

 

The Epilepsy Project
 c/o Kim Macher

PO Box 742

Middleburg, VA 20118

 

Frederick Frank
 109 East 91st Street

New York, NY 10128

 

Todd Garcia
 1032 Margaux

Bourbonnais, IL 60914

 

Earl Giller
 88 River Edge Farms Road

Madison, CT 06443-2756

 

Sean Glass
 28 Motts Hollow Road

Port Jeff, NY 11777

 

A-2

 

SABRINA GLASS AND SEAN
 GLASS, Trustee, or their successors
 in trust, under the PETER GLASS
 Grantor-Retained Annuity Trust,
 dated December 28, 2007
 28 Motts Hollow Road

Port Jefferson, NY 11777

 

Elizabeth Grizzetti
 100 Jane Street, Apt. 5Q
 New York, NY 10014-1758

 

John Grizzetti
 25 DeGraaf Ct.

Mahwah, NJ 07430

 

Thomas F. Grizzetti
 99 Jane Street, Apt. 5D
 New York, NY 10014

 

John Jacoby
 1044 Hyperion Ave.

Los Angeles, CA 90029

 

Bill Lambert
 7 West 81st Street, 8C 
 New York, NY 10024-6049

 

Alan Leibel
 42 Whitbay Drive

West Orange, NJ 07052

 

Frank Lynch
 11209 Longwood Grove Dr.
 Reston, VA 20194

 

Irene Penner
 6 White Pine Lane
 Guilford, CT 06437

 

One More Victory Investors Group LLC
 c/o John Jacoby

1044 Hyperion Ave.

Los Angeles, CA 90029

 

A-3

 

Purdue Neuroscience Company
 c/o Allen Downs

One Stamford Forum

Stamford, CT 06901

Michael Ray
 9199 Weant Drive

Great Falls, VA 22066

 

Michael A. Rogawski
 2237 Sierra Boulevard

Sacramento, CA 95825

 

David & Elaine Shapowal
 3981 Stump Road

Doylestown, PA 18901

 

The Stanley Medical Research Institute
 c/o Dr. E. Fuller Torrey

8401 Connecticut Ave., Suite 200

Chevy Chase, MD 20815

 

Numoda Capital Innovations LLC
 601 Walnut Street, 900E

Philadelphia, PA 19106

Attn: Patrick Keenan

 

A-4EX-10.31

 Exhibit 10.31 

EMPLOYMENT AGREEMENT 

EMPLOYMENT AGREEMENT (the “Agreement”) dated as of June 4, 2014 by and between Lantheus Medical Imaging, Inc., a
Delaware corporation (the “Company”) and John Bakewell (“Executive”). 
 The Company desires to
employ Executive and to enter into an agreement embodying the terms of such employment; 
 Executive desires to accept such employment and
enter into such an Agreement. 
 In consideration of the premises and mutual covenants herein and for other good and valuable consideration,
the parties agree as follows: 
 1.    At-Will Employment. Executive’s employment with the Company commenced
as of your date of hire (the “Effective Date”). Such employment shall be “at-will” employment. Subject to the terms of this Agreement, the Company may terminate Executive’s employment and this Agreement for any reason
at any time, with or without prior notice and with or without Cause (as defined herein), but subject to certain terms set forth in Section 8 below. Similarly, subject to the terms of this Agreement, Executive may terminate his employment at any
time, subject to Section 8 below. 
 2.    Position. 

a.    Commencing as of the Effective Date, Executive shall serve as the Company’s Chief Financial
Officer and shall report to the Chief Executive Officer of the Company (the “CEO”) or such CEO’s designee. Executive shall have such duties and responsibilities as are consistent with such title and position and/or such other
duties and responsibilities as may be assigned from time to time by the CEO or the Board of Directors of Lantheus MI Holdings, Inc. (the “Board”). If requested, Executive shall serve as an officer or a member of the Board of
Directors of any of the Company’s subsidiaries or affiliates without additional compensation. 

b.    Executive will devote Executive’s full business time and best efforts to the performance of
Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services either directly or indirectly, without the
prior written consent of the Board; provided that nothing herein shall preclude Executive, subject to the prior approval of the Board, from accepting appointment to or continuing to serve on any board of directors or trustees of any business
corporation or any charitable organization; provided in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of Executive’s duties hereunder or conflict with Section 9. 

3.    Base Salary. During Executive’s employment hereunder, the Company shall pay Executive a base salary at
the annualized rate of $400,000, payable in regular installments in accordance with the Company’s payment practices from time to time. Executive shall be entitled to annual performance and salary review, and any increase in base salary shall be
in the sole discretion of the Compensation Committee of the Board. Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the “Base Salary”. 

  
 1 

 4.    Annual Bonus. With respect to each full fiscal year ending
during Executive’s employment hereunder, Executive shall be eligible to earn an annual bonus award of sixty percent (60%) of Executive’s Base Salary (the “Target”) based upon achievement of annual EBITDA and/or other
performance targets established by the Compensation Committee of the Board within the first three months of each fiscal year (the “Annual Bonus”). The Executive’s eligibility for 2014 will be prorated based on his actual start
date with the company. The Annual Bonus, if any, shall be paid to Executive at the same time as an annual bonus is paid to other similarly situated executives; provided, that Executive is an active employee in good standing with the Company
on such date of payment. 
 5.    Equity. Executive shall be eligible to receive future equity awards from time
to time pursuant to Lantheus’ current Equity Incentive Plan, commensurate with Executive’s level of responsibilities and the level of awards for similarly situated executives, as determined by the Compensation Committee of the Board in its
sole discretion. The terms and conditions of any such equity awards shall be set forth in a separate award agreement. 

6.    Employee Benefits. During Executive’s employment hereunder, Executive shall be entitled to participate
in the Company’s health, life and disability insurance, and retirement and fringe employee benefit plans as in effect from time to time (collectively “Employee Benefits”), on the same basis as those benefits are generally made
available to other similarly situated executives of the Company. 
 7.    Business Expenses. During
Executive’s employment hereunder, reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies. 

8.    Termination of Employment. 

(a) Termination By the Company Without Cause. If Executive’s employment is terminated by the Company without Cause, executive shall receive the
following, subject to Section 8(g): 
 (i) an amount equal to Executive’s Base Salary on the date of termination, less taxes and
withholdings, payable in substantially equal installments over a period of 12 months in accordance with the Company’s normal payroll practices, with payments commencing with the Company’s first payroll after the sixtieth (60th) day
following Executive’s termination of employment, and such first payment shall include any such amounts that would otherwise be due prior thereto; 

(ii) a pro rata portion of the Target Annual Bonus amount that Executive would have been eligible to receive pursuant to Section 4 hereof
in such year of termination, based upon the percentage of the fiscal year that shall have elapsed through the date of Executive’s termination of employment, less taxes and withholdings, payable in substantially equal installments over a period
of 12 months in accordance with the Company’s normal payroll practices, with payments commencing with the Company’s first payroll after the sixtieth (60th) day following Executive’s termination of employment, and such first
payment shall include any such amounts that would be otherwise due prior thereto; 

  
 2 

 (iii) provided that Executive elects to purchase continued healthcare coverage under COBRA, an
amount equal to the Company’s portion of the premium for medical and dental benefits under the Company’s group medical and dental plans that the Company was paying on Executive’s behalf on the date of termination (which subsidy will
be treated as imputed income) for a period of 12 months, with the first payment commencing on the Company’s first payroll date after the 60th day following Executive’s termination of employment, and such first payment shall include any
such amounts that would otherwise be due prior thereto; 
 (iv) a lump sum amount equal to any earned, but unpaid, Annual Cash Bonus, if
any, for the year prior to the year of termination, less taxes and withholdings, which shall be payable on the 60th day following Executive’s termination of employment; 

(v) a lump sum amount equal to any earned, but unpaid, Base Salary, if any, through the date of Executive’s termination of employment,
less taxes and withholdings, which shall be payable with the Company’s first payroll after Executive’s termination of employment; and 

(vi) a lump sum amount equal to any unreimbursed business expenses, if any, pursuant to and in accordance with Section 7, incurred
through the date of Executive’s termination of employment. 
 (b) Termination Without Cause or For Good Reason following a Change of Control. If,
within 12 months following the occurrence of a Change of Control (as defined in the Shareholders Agreement) of Holdings, Executive terminates his employment for Good Reason or the Company terminates Executive’s employment with the Company
without Cause, Executive shall receive the following, subject to Section 8(g): 
 (i) an amount equal to the Executive’s Base
Salary on the date of termination, less taxes and withholdings, payable in substantially equal installments over a period of 12 months in accordance with the Company’s normal payroll practices, with payments commencing with the Company’s
first payroll after the sixtieth (60th) day following Executive’s termination of employment, and such first payment shall include any such amounts that would otherwise be due prior thereto; 

(ii) an amount equal to the full Target Bonus for the year of termination, less taxes and withholdings, payable in substantially equal
installments over a period of 12 months in accordance with the Company’s normal payroll practices, with payments commencing with the Company’s first payroll after the sixtieth (60th) day following Executive’s termination of
employment, and such first payment shall include any such amounts that would otherwise be due prior thereto; 
 (iii) provided that
Executive elects to purchase continued healthcare coverage under COBRA, an amount equal to the Company’s portion of the premium for medical and dental benefits under the Company’s group medical and dental plans that the Company was paying
on Executive’s behalf on the date of termination (which subsidy will be treated as imputed income) for a period of 12 months, with the first payment commencing on the Company’s first payroll date after the 60th day following
Executive’s termination of employment, and such first payment shall include any such amounts that would otherwise be due prior thereto; 

(iv) a lump sum amount equal to any earned, but unpaid, Annual Cash Bonus, if any, for the year prior to the year of termination, less taxes
and withholdings, which shall be payable on the 60th day following Executive’s termination of employment; 

  
 3 

 (v) a lump sum amount equal to any earned, but unpaid, Base Salary, if any, through the date of
Executive’s termination of employment, less taxes and withholdings, which shall be payable on the first payroll date after Executive’s termination of employment; and 

(vi) a lump sum amount equal to any unreimbursed business expenses, if any, pursuant to and in accordance with Section 7, incurred
through the date of Executive’s termination of employment. Executive acknowledges and agrees that, in connection with any Change of Control transaction, except as otherwise provided in a separate agreement, Executive shall not be entitled to
receive, and shall not be paid, any transaction, success, sale or similar bonus or payment. 
 (c) Termination Due to Death or Permanent Disability.
Executive’s employment with the Company shall terminate automatically on Executive’s death. In the event of Executive’s Permanent Disability, the Company shall be entitled to terminate his employment. 

For purposes of this Agreement, the “Permanent Disability” of Executive shall mean Executive’s inability, because of mental or physical
illness or incapacity, whether total or partial, to perform one or more of the material functions of Executive’s position with or without reasonable accommodation, for a period of: (i) 90 consecutive calendar days or (ii) an aggregate
of 120 days out of any consecutive 12 month period, and which entitles Executive to receive benefits under a disability plan provided by the Company. 
 In
the event of a termination of employment under this section, Executive shall be entitled to following, subject to Section 8(g): 
  

	 	(i)	a lump sum amount equal to any earned, but unpaid, Annual Cash Bonus, if any, for the year prior to the year of termination, less taxes and withholdings, payable on the sixtieth (60th) day following
Executive’s termination of employment; 

  

	 	(ii)	a lump sum amount equal to any earned, but unpaid, Base Salary, if any, through the date of Executive’s termination of employment, less taxes and withholdings, which shall be payable on the first payroll date after
Executive’s termination of employment; 

  

	 	(iii)	a lump sum amount equal to any unreimbursed business expenses, if any, pursuant to and in accordance with Section 7, incurred through the date of Executive’s termination of employment; and 

 

	 	(iv)	a pro rata portion of any Annual Cash Bonus, to the extent earned based on actual performance by the Company, that Executive would have been eligible to receive hereunder in the year of termination, based on the
percentage of the fiscal year that shall have elapsed through the date of Executive’s termination of employment, payable at such time as any such Annual Cash Bonuses are paid to active senior executives of the Company. 

(d) Other Terminations. Executive shall not be entitled to the post-termination benefits set forth in Section 8(a), Section 8(b) or
Section 8(c) above if his employment with the Company ceases for any reason other than his termination by the Company without Cause, his resignation for Good Reason or his termination as a result of his death or Permanent Disability; it being
understood that if Executive’s employment with the Company ceases or terminates for any other reason, he will not be entitled to any severance or post-termination benefits or payments, whether hereunder or pursuant to any policy of the Company,
other than a lump sum amount equal to any earned, but unpaid, Base Salary, if any, through the date of Executive’s termination of 

  
 4 

 
employment, less taxes and withholdings (payable on the first payroll date after Executive’s termination of employment), and a lump sum amount equal to any unreimbursed business expenses, if
any, pursuant to and in accordance with Section 3(e), incurred through the date of Executive’s termination of employment; provided, that this paragraph shall not alter Executive’s rights or obligations he may have or be subject to in
connection with or with respect to his equity interests in Holdings, and Executive’s indemnification rights shall continue to be governed in accordance with any Directors and Officers Liability Insurance Policy that the Company may maintain
and/or with the Company’s certificate of incorporation or by-bylaws or similar governing document, and otherwise in accordance with Section 7. 

(e) Cause Definition. For purposes of this Agreement, “Cause” means (i) material failure by Executive to perform Executive’s
employment duties (other than as a consequence of any illness, accident or disability), (ii) continued, willful failure of Executive to carry out any reasonable lawful direction of the Company, (iii) material failure of Executive to comply
with any of the applicable rules of the Company contained in its Employee Handbook or any other Company policy, (iv) fraud, willful malfeasance, gross negligence or recklessness of Executive in the performance of employment duties,
(v) willful failure of Executive to comply with any of the material terms of this Agreement, (vi) other serious, willful misconduct of Executive which causes material injury to the Company or its reputation, including, but not limited to,
willful or gross misconduct toward any of the Company’s other employees, and (vii) conviction of a crime (or a pleading of guilty or nolo contendere), other than one which in the opinion of the Board does not affect Executive’s
position as an employee of the Company. 
 (f) Good Reason Definition. For purposes of this Agreement, “Good Reason” shall mean, without the
Executive’s Consent, (A) the failure of the Company to pay, or cause to be paid, Executive’s Base Salary or Bonus, as the case may be, when due, (B) a permanent decrease in the Executive’s Base Salary, or a failure by the
Company to pay material compensation or provide material benefits due and payable to the Executive under his Employment Agreement, (C) the Company requiring the Executive to be based at any office or location that is more than 50 miles from the
Company’s current headquarters in Billerica, Massachusetts, or (D) the failure of the Company to cause the transferee or successor to all or substantially all of the assets of the Company to assume by operation of law or contractually the
Company’s obligations hereunder, and provided further that any of the events described in clauses (A) or (D) of this section shall constitute Good Reason only if the Company fails to cure such event within 30 days after receipt from
Executive of written notice of the event which constitutes Good Reason, and provided further, that Good Reason shall cease to exist for an event on the 30th day following the later of its
occurrence or Executive’s knowledge thereof, unless Executive has given the Company written notice thereof prior to such date; For the avoidance of doubt, (x) a change in Executive’s reporting relationships, including but not limited
to a change in the number of direct or indirect reports to Executive, shall not constitute a material and adverse reduction in Executive’s responsibilities, and (y) commensurate with Executive performing his duties Executive will be
expected to work at the Company’s headquarters in North Billerica, Massachusetts, as necessitated by business demands or as reasonably requested by the Company. 

(g) Separation Agreement and General Release. The payments and benefits set forth in Sections 8(a), 8(b) and 8(c) above shall be expressly conditioned upon
Executive’s (or his estate or legal representatives, in the case of Section 4(c)) execution and delivery to the 

  
 5 

 
Company of a Separation Agreement and General Release in a form that is acceptable to the Company (the “Separation Agreement”) and such Separation Agreement becoming irrevocable
within sixty (60) days following Executive’s termination of employment; provided, that any payments or benefits otherwise due prior to such sixtieth (60th) day shall be paid on such sixtieth (60th) day. For the avoidance of
doubt, the payments and benefits set forth in Sections 8(a), 8(b) and 8(c) above shall be forfeited if such Separation Agreement has not been executed, delivered and become irrevocable within such sixty (60) day period. Such Separation
Agreement shall contain release language substantially similar to the language set forth in Exhibit A attached hereto. 
 (h.) Board/Committee Resignation.
Upon termination of Executive’s employment for any reason, Executive agrees to resign, as of the date of such termination and to the extent applicable, from the Board (and any committees thereof) and the Board of Directors (and any committees
thereof) of any of the Company’s subsidiaries or affiliates. 
 9.    Non-Competition. 

a.    Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company
and its affiliates and accordingly agrees as follows: 
 (1)    During Executive’s employment with the Company and,
for a period of one year following the date Executive ceases to be employed by the Company (the “Restricted Period”), Executive will not, whether on Executive’s own behalf or on behalf of or in conjunction with any person,
firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise whatsoever (“Person”), directly or indirectly solicit or assist in soliciting in competition with the Company, the
business of any client or prospective client: 
 (i)    with whom Executive had personal contact or
dealings on behalf of the Company during the one-year period preceding Executive’s termination of employment; 

(ii)    with whom employees reporting to Executive had personal contact or dealings on behalf of the
Company during the one year immediately preceding the Executive’s termination of employment; or 

(iii)    for whom Executive had direct or indirect responsibility during the one year immediately preceding
Executive’s termination of employment. 

  
 6 

 (2)    During the Restricted Period, Executive will not directly or
indirectly: 
 (i)    engage in any business that competes with the business or businesses of the
Company or any of its affiliates, namely in the testing, development and manufacturing services for the development, manufacture, distribution, marketing or sale of radiopharmaceutical products, contrast imaging agents and/or radioactive generators
for the global medical imaging and pharmaceutical industries, and including, without limitation, businesses which the Company or its affiliates have specific plans to conduct in the future and as to which Executive is aware of such planning (a
“Competitive Business”); 
 (ii)    enter the employ of, or render any services to, any
Person (or any division or controlled or controlling affiliate of any Person) who or which engages in a Competitive Business; 

(iii)    acquire a financial interest in, or otherwise become actively involved with, any Competitive
Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; or 

(iv)    interfere with, or attempt to interfere with, business relationships (whether formed before, on or
after the date of this Agreement) between the Company or any of its affiliates and customers, clients, suppliers, partners, members or investors of the Company or its affiliates. 

(3)    Notwithstanding anything to the contrary in this Agreement, Executive may, directly or indirectly, own, solely as
an investment, securities of any Person engaged in the business of the Company or its affiliates which are publicly traded on a national or regional stock exchange or on the over-the-counter market if Executive (i) is not a controlling person of, or
a member of a group which controls, such Person and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such Person. 

(4)    During the Restricted Period, Executive will not, whether on Executive’s own behalf or on behalf of or in
conjunction with any Person, directly or indirectly: 
 i. solicit or encourage any employee or consultant of the Company or
its affiliates to leave the employment of, or cease providing services to, the Company or its affiliates; or 
 ii. hire any
such employee or consultant who was employed by or providing services to the Company or its affiliates as of the date of Executive’s termination of employment with the Company or who left the employment of or ceased providing services to the
Company or its affiliates coincident with, or within one year prior to or after, the termination of Executive’s employment with the Company. 

iii. It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this
Section 9 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against

  
 7 

 
Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable,
such finding shall not affect the enforceability of any of the other restrictions contained herein. 
 The provisions of this Section 9
shall survive the termination of this Agreement and Executive’s employment for any reason. 

10.    Non-Disparagement. The Executive shall not at any time (whether during or after Executive’s employment
with the Company) make, or cause to be made, any statement or communicate any information (whether oral or written) that disparages or reflects negatively on the Company or any of its affiliates, except for truthful statements that may be made
pursuant to legal process, including without limitation in litigation, arbitration or similar dispute resolution proceedings. This Section 10 shall survive the termination of this Agreement and Executive’s employment for any reason. 

11.    Confidentiality; Intellectual Property. 

a.    Confidentiality. 

(i)    Executive will not at any time (whether during or after Executive’s employment with the Company)
(x) retain or use for the benefit, purposes or account of Executive or any other Person; or (y) disclose, divulge, reveal, communicate, share, transfer or provide access to any Person outside the Company (other than its professional
advisers who are bound by confidentiality obligations), any non-public, proprietary or confidential information—including, without limitation, trade secrets, know-how, research and development, software, databases, inventions, processes,
formulae, technology, designs and other intellectual property, information concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting,
training, advertising, sales, marketing, promotions, government and regulatory activities and approvals — concerning the past, current or future business, activities and operations of the Company, its subsidiaries or affiliates and/or any third
party that has disclosed or provided any of same to the Company on a confidential basis (“Confidential Information”) without the prior written authorization of the Board. 

(ii)    Confidential Information shall not include any information that is (A) generally known to the industry or the
public other than as a result of Executive’s breach of this covenant or any breach of other confidentiality obligations by third parties; (B) made legitimately available to Executive by a third party without breach of any confidentiality
obligation; or (C) required by law to be disclosed; provided that Executive shall give prompt written notice to the Company of such requirement, disclose no more information than is so required, and cooperate with any attempts by the Company to
obtain a protective order or similar treatment. 

  
 8 

 (iii)    Except as required by law, Executive will not disclose to anyone,
other than Executive’s immediate family and legal or financial advisors, the existence or contents of this Agreement; provided that Executive may disclose to any prospective future employer the provisions of Sections 9, 10 and 11 of this
Agreement provided they agree to maintain the confidentiality of such terms. 
 (iv)    Upon termination of
Executive’s employment with the Company for any reason, Executive shall (x) cease and not thereafter commence use of any Confidential Information or intellectual property (including without limitation, any patent, invention, copyright,
trade secret, trademark, trade name, logo, domain name or other source indicator) owned or used by the Company, its subsidiaries or affiliates; (y) immediately return to the Company all Company property and destroy, delete, or return to the Company,
at the Company’s option, all originals and copies in any form or medium (including memoranda, books, papers, plans, computer files, letters and other data) in Executive’s possession or control (including any of the foregoing stored or
located in Executive’s office, home, laptop or other computer, whether or not Company property) that contain Confidential Information or otherwise relate to the business of the Company, its affiliates and subsidiaries, except that Executive may
retain only those portions of any personal notes, notebooks and diaries that do not contain any Confidential Information; and (z) notify and fully cooperate with the Company regarding the delivery or destruction of any other Confidential
Information of which Executive is or becomes aware and promptly return any other Company property in Executive’s possession. 

b.    Intellectual Property. 

(i)    If Executive has created, invented, designed, developed, contributed to or improved any works of authorship,
inventions, intellectual property, materials, documents or other work product (including without limitation, research, reports, software, databases, systems, applications, presentations, textual works, content, or audiovisual materials)
(“Works”), either alone or with third parties, prior to Executive’s employment by the Company, that are relevant to or implicated by such employment (“Prior Works”), Executive hereby grants the Company a
perpetual, nonexclusive, royalty-free, worldwide, assignable, sublicensable license under all rights and intellectual property rights (including rights under patent, industrial property, copyright, trademark, trade secret, unfair competition and
related laws) therein for all purposes in connection with the Company’s current and future business. A list of all such material Works as of the date hereof is attached hereto as Exhibit B. 

(ii)    If Executive creates, invents, designs, develops, contributes to or improves any Works, either alone or with third
parties, at any time during Executive’s employment by the Company and within the scope of such employment and/or with the use of any Company resources (“Company Works”), Executive shall promptly and fully disclose such works to
the Company and hereby irrevocably assigns, transfers and conveys, to the maximum extent permitted by applicable law, all rights and intellectual property rights therein (including rights under patent, industrial property, copyright, trademark,
trade secret, unfair competition and related laws) to the Company to the extent ownership of any such rights does not vest originally in the Company. 

  
 9 

 (iii)    Executive agrees to keep and maintain adequate and current written
records (in the form of notes, sketches, drawings, and any other form or media requested by the Company) of all Company Works. The records will be available to and remain the sole property and intellectual property of the Company at all times. 

(iv)    Executive shall take all requested actions and execute all requested documents (including any licenses or
assignments required by a government contract) at the Company’s expense (but without further remuneration) to assist the Company in validating, maintaining, protecting, enforcing, perfecting, recording, patenting or registering any of the
Company’s rights in the Prior Works and Company Works. If the Company is unable for any other reason to secure Executive’s signature on any document for this purpose, then Executive hereby irrevocably designates and appoints the Company
and its duly authorized officers and agents as Executive’s agent and attorney-in-fact, to act for and on Executive’s behalf to execute any documents and to do all other lawfully permitted acts in connection with the foregoing. 

(v)    Executive shall not improperly use for the benefit of, bring to any premises of, divulge, disclose, communicate,
reveal, transfer or provide access to, or share with the Company any confidential, proprietary or non-public information or intellectual property relating to a former employer or other third party without the prior written permission of such third
party. Executive hereby indemnifies, holds harmless and agrees to defend the Company and its officers, directors, partners, employees, agents and representatives from any breach of the foregoing covenant. Executive shall comply with all relevant
policies and guidelines of the Company, including regarding the protection of confidential information and intellectual property and potential conflicts of interest. Executive acknowledges that the Company may amend any such policies and guidelines
from time to time, and that Executive remains at all times bound by their most current version. 
 c.    The provisions
of this Section 11 shall survive the termination of this Agreement and Executive’s employment for any reason. 

12.    Specific Performance. Executive acknowledges and agrees that the Company’s remedies at law for a breach
or threatened breach of any of the provisions of Section 9, Section 10 or Section 11 would be inadequate and the Company would suffer irreparable damages as a result of such breach or threatened breach. In recognition of this fact,
Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to cease making any payments or providing any benefit otherwise required by this
Agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available. 

  
 10 

	13.	Miscellaneous. 

 a.    Governing Law. This Agreement shall be
governed by, construed and interpreted in all respects, in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof. 

b.    Entire Agreement/Amendments. This Agreement contains the entire understanding of the parties with respect to
the employment of Executive by the Company and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral between the Executive and the Company or any of its affiliates with respect to the
Executive’s employment. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. This Agreement may not be
altered, modified, or amended except by written instrument signed by the parties hereto. 
 c.    No Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term
or any other term of this Agreement. 
 d.    Severability. In the event that any one or more of the provisions
of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby. 

e.    Assignment. This Agreement, and all of Executive’s rights and duties hereunder, shall not be assignable
or delegable by Executive. Any purported assignment or delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be assigned by the Company to a person or entity which is an
affiliate or a successor in interest to substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor
person or entity. 
 f.    Set Off. The Company’s obligation to pay Executive the amounts provided and to
make the arrangements provided hereunder shall be subject to set-off, counterclaim or recoupment of amounts owed by Executive to the Company or its affiliates. 

g.    Dispute Resolution. Except with respect to Sections 9, 10, 11 and 12 hereof, any controversy or claim arising
out of or related to any provision of this Agreement that cannot be mutually resolved by the parties hereto shall be settled by final, binding and nonappealable arbitration in New York, NY by a single mutually-acceptable arbitrator. Subject to the
following provisions, the arbitration shall be conducted in accordance with the applicable rules of American Arbitration Association then in effect. Any award 

  
 11 

 
entered by the arbitrator shall be final, binding and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction.
This arbitration provision shall be specifically enforceable. The arbitrator shall have no authority to modify any provision of this Agreement or to award a remedy for a dispute involving this Agreement other than a benefit specifically provided
under or by virtue of the Agreement. Each party shall be responsible for its own expenses relating to the conduct of the arbitration or litigation (including attorney’s fees and expenses) and shall share the fees of the American Arbitration
Association and the arbitrator equally. 
 h.    Compliance with Section 409A of the Code. The parties
acknowledge and agree that the interpretation of Section 409 A of the Code and its application to the terms of this Agreement is uncertain and may be subject to change as additional guidance and interpretations become available. Anything to the
contrary herein notwithstanding, all benefits or payments provided by the Company to the Executive that would be deemed to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code are intended to
comply with Section 409A of the Code. If, however, any such benefit or payment is deemed to not comply with Section 409A of the Code, the Company and the Executive agree to renegotiate in good faith any such benefit or payment (including,
without limitation, as to the timing of any severance payments payable hereunder), if possible, so that either (i) Section 409A of the Code will not apply or (ii) compliance with Section 409A ofthe Code will be achieved. The
Company shall consult with Executive in good faith regarding the implementation of the provisions of this Section 13(h); provided that neither the Company nor any of its employees or representatives shall have any liability to Executive
with respect to thereto. 
 i.    Successors; Binding Agreement. This Agreement shall inure to the benefit of and
be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees of the parties hereto. 

j.    Notice. For the purpose of this Agreement, notices and all other communications provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below in this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 

 

			
	 If to the Company:
	  	Lantheus Medical Imaging, Inc.
		  	331 Treble Cove Rd.
		  	Bldg. 600-2
		  	N. Billerica, MA 01862
		  	Attention: Michael Duffy,
		  	Vice President and General Counsel
		  	Email: Michael.Duffy@lantheus.com
		
	 If to Executive:
	  	To Executive’s address on file with the Company

  
 12 

 k.    Executive Representation. Executive hereby represents to the
Company that (i) Executive has been provided with sufficient opportunity to review this Agreement and has been advised by the Company to conduct such review with an attorney of his choice, and (ii) the execution and delivery of this
Agreement by Executive and the Company and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which
Executive is a party or otherwise bound. 
 1.    Cooperation. Executive shall provide Executive’s
reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment hereunder. This provision shall survive any termination of this
Agreement or Executive’s employment. 
 m.    Withholding Taxes. The Company may withhold from any amounts
payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation. 

n.    Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. 
 [Signatures on following page] 

  
 13 

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

					
			
	/s/ Jeffrey Bailey	 		 	/s/ John Bakewell
	By: Jeffrey Bailey	 		 	John Bakewell
	Title: President and Chief Executive Officer	 		 	

  
 14 

 EXHIBIT A 

RELEASE 
 This RELEASE
(“Release”) dated as of                 , 20         between Lantheus Medical Imaging, Inc., a
Delaware corporation (the “Company”), and                              (the
“Executive”). 
 WHEREAS, the Company and the Executive previously entered into an employment agreement dated March
        , 2008 (the “Employment Agreement”); and 
 WHEREAS, the
Executive’s employment with the Company has terminated effective                      ,
20        ; 
 NOW, THEREFORE, in consideration of the premises and mutual agreements
contained herein and in the Employment Agreement, the Company and the Executive agree as follows: 
 1.    Executive
agrees to and does waive any claims he may have for employment by the Company and agrees not to seek such employment or reemployment by the Company in the future. The Executive, on his own behalf and on behalf of his heirs, estate and beneficiaries,
further does hereby release the Company, and in such capacities, any of its subsidiaries or affiliates, and each of their respective past, present and future officers, directors, agents, employees, shareholders, investors, employee benefit plans and
their administrators or fiduciaries, insurers of any such entities, and its and their successors and assigns and others related to such entities from any and all claims made, to be made, or which might have been made of whatever nature, whether
known or unknown, from the beginning of time, including those that arose as a consequence of his employment with the Company, or arising out of the separation from the Company, the severance of such employment relationship, or any act committed or
omitted during or after the existence of such employment relationship, all up through and including the date on which this Release is executed, including, but not limited to, those which were, could have been or could be the subject of an
administrative or judicial proceeding filed by the Executive or on his behalf under federal, state or local law, whether by statute, regulation, in contract or tort, and including, but not limited to, every claim for front pay, back pay, wages,
bonus, fringe benefit, any form of discrimination, wrongful termination, tort, emotional distress, pain and suffering, breach of contract, fraud, defamation, compensatory or punitive damages, interest, attorney’s fees, reinstatement or
reemployment, and any rights or claims under the Civil Rights Act of 1866, the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. sec. 621, et seq., the Americans with Disabilities Act, the Family and Medical Leave Act, the Civil
Rights Act of 1964, Title VII, as amended, the Civil Rights Act of 1991, the Employee Retirement Income Security Act of 1974, as amended, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the New York State Human Rights Law,
the New York City Human Rights Law, the Massachusetts Civil Rights Act, the Massachusetts Equal Pay and Maternity Benefits Law, the Massachusetts Equal Rights for Elderly and Disabled Law, the Massachusetts Small Necessities Leave Act, the
Massachusetts Age Discrimination Law, or any other federal, state or local law relating to employment, discrimination in employment, termination of employment, wages, benefits or otherwise. The Executive acknowledges and agrees that even though
claims and facts in addition to those now known or believed by him to exist may subsequently be discovered, it is his intention to fully settle and release all claims he may have against the Company and the persons and entities described above,
whether known, unknown or suspected. Employee does not waive his right to have a charge filed with the Equal Employment Opportunity Commission (“EEOC”) or any state civil rights agency or to participate in an investigation conducted
by the EEOC or any state civil rights agency; however, Employee expressly waives his right to recover any monetary relief should any administrative agency, including but not limited to the EEOC, pursue any claim on Employee’s behalf. 

  
 15 

 2.    The Company and the Executive acknowledge and agree that the release
contained in Paragraph 1 does not, and shall not be construed to, release or limit the scope of any existing obligation of the Company and/or any of its subsidiaries or affiliates (i) to indemnify the Executive for his acts as an officer or
director of the Company and/or its subsidiaries or affiliates in accordance with their respective charters or bylaws or under an indemnification agreement to which the Executive and the Company or any of its subsidiaries are parties or under any
applicable Directors and Officers insurance policies or under any applicable law or (ii) to the Executive and his eligible, participating dependents or beneficiaries under any existing group welfare (excluding severance), equity, or retirement
plan of the Company in which the Executive and/or such dependents are participants. 
 3.    The Executive acknowledges
that before entering into this Release, he has had the opportunity to consult with any attorney or other advisor of the Executive’s choice, and the Executive is hereby advised to consult with an attorney. The Executive further acknowledges that
by signing this Release, he does so of his own free will and act, that it is his intention to be legally bound by its terms, and that no promises or representations have been made to the Executive by any person to induce the Executive to enter into
this Release other than the express terms set forth herein. The Executive further acknowledges that he has carefully read this Release, knows and understands its contents and its binding legal effect, including the waiver and release of claims set
forth in Paragraph 1 above. 
 4.    The Executive acknowledges that he has been provided at least 21 days to review the
Release. In the event the Executive elects to sign this Release prior to this 21 day period, he agrees that it is a knowing and voluntary waiver of his right to wait the full 21 days. The Executive further understand that he has 7 days after the
signing hereof to revoke this Release by so notifying the Company, Lantheus Medical Imaging, Inc., 331 Treble Cove Rd., Bldg. 600-2, N. Billerica, MA 01862, Attention: Michael Duffy in writing, such notice to be received by the Company within the 7
day period. This Release shall not become effective or enforceable, and no payments or benefits under Sections 8(c)(ii)(B),(C) and (D) of the Employment Agreement, as applicable, shall be made or provided, until this seven (7) day
revocation period expires without the Executive having revoked this Release. 

  
 16 

 IN WITNESS WHEREOF, the parties have executed this Release on the date first above written. 

 

					
	Lantheus Medical Imaging, Inc.
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	
	
	
		
		 	 
		 	Employee Name	 	

  
 17 

 EXHIBIT B 

PRIOR WORKS 
 [None]

  
 18

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