Document:

cinerformof2019performan

                                PERFORMANCE UNIT AWARD                                          UNDER THE             CINER RESOURCE PARTNERS LLC 2013 LONG-TERM INCENTIVE PLAN         This Award Agreement (the “Agreement”), made as of the [DAY] day of [MONTH] 2019, by Ciner  Resource Partners LLC, a Delaware limited liability company (the “Company”), to [NAME] (“Participant”), is  made pursuant to and subject to the provisions of the Company’s 2013 Long-Term Incentive Plan, as amended  (the  “Plan”).   Unless  otherwise defined  herein,  capitalized  terms  have  the  meanings  ascribed  to  them  in  the  Plan.  The terms of the Plan are hereby incorporated into this Agreement by reference.                                       Performance Units   1. Grant of Performance Units and Performance Distribution Equivalents.  Pursuant to Section 6.5 of the     Plan, the Company, on [GRANT DATE] (the “Grant Date”), granted the Participant an Award in the form     of [UNITS GRANTED] Performance Units (which number of performance units shall be referred to herein     as the “Target Units”), subject to the terms and conditions of the Plan and this Agreement.      In  addition,  pursuant  to  Section  6.5  of  the  Plan  and  on  the  Grant  Date,  the  Company  granted  to  the     Participant a number of Performance Distribution Equivalents equal to the number of Performance Units,     which Award represents the right to receive an amount equal to the accumulated cash distributions made     during  the  period  beginning  on  January  1,  2019,  and  ending  on  the  Vesting  Date  with  respect  to  each     Common  Unit,  if  any,  delivered  to  the  Participant  in  settlement  of  any  vested  Performance  Units.   The     Performance Distribution Equivalents shall be subject to the same vesting and forfeiture conditions as well     as such other terms and conditions as apply to the Performance Units.  All amounts payable with respect to a     Performance Distribution Equivalent shall, subject to vesting of such Performance Distribution Equivalent,     be accumulated and paid, without interest, at the same time the related vested Performance Unit is settled.      Performance Units do not represent actual Common Units, but rather represent a right, subject to the terms     of the Plan and this Agreement, to receive a number of Common Units equal to the product of (i) the Target     Units multiplied by (ii) the Final Payout Multiplier.  Performance Distribution Equivalents do not represent     actual Common Units, but rather represent a right, subject to the terms of the Plan and this Agreement, to     receive  an  amount  equal  to  the  cash  distributions  paid  during  period  beginning  on  January 1,  2019,  and     ending on the Vesting  Date with  respect  to  the number of Common Units  to  be delivered as  determined     pursuant to the immediately preceding sentence.  No Common Units shall be issued to the Participant at the     time  the  grant  is  made,  and  the  Participant  shall  not  be,  nor  have  any  of  the  rights  or  privileges  of,  a     Common Unit holder with respect to the Performance Units or the Performance Distribution Equivalents.      Performance  Units  granted  to  Participant  and  any  amounts  accumulated  with  respect  to  Performance     Distribution  Equivalents  shall  be  credited  to  a  bookkeeping  account  established  and  maintained  for  the     Participant;  the  existence  of  such  bookkeeping  account  shall  not  obligate  the  Company  to  set  aside  or     otherwise segregate any assets with respect to the Award.   2. Terms  and  Conditions.   No  Award  shall  be  earned  or  become  vested  and  Participant’s  interest  in  the     Performance Units and Performance Distribution Equivalents granted hereunder shall be forfeited, except to     the extent that the following paragraphs are satisfied.   3. Performance  Criteria.   To  the  extent  not  previously  forfeited  and  except  as  otherwise  provided  herein,     Participant’s  Performance  Units  and  Performance  Distribution  Equivalents  shall  vest  as  of  the  date  the     109122.0269155 EMF_US 76580240v1  

 

     Administrator determines the performance results (as defined below), which determination shall be made as     soon as practicable after the end of the Measurement Period and shall be based on the following formula (to     the nearest whole Performance Unit).         (a)   The  Measurement  Period  is  the  period  beginning  January  1,  2019  and  ending  December  31,        2021.         (b)   The Performance Metrics and weighting will be:                  Metric               Weight                 EBITDA               70%                 Tons Produced        10%                 Controllable Costs   10%                 Lost Day Incident Rate 10%          (c)   Performance Metrics Definitions            EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization Target will be based on           the approved budget for each year within the measurement period.  Actual results will be based on           the audited financial results for each year within the measurement period.            Tons  Produced – Target  will  be  based  on  the  approved  budget  for  each  year  within  the           measurement  period.   Actual  results  will  be  based  on  the  final  results  for  each  year  within  the           measurement period.            Controllable Costs – Includes all manufacturing costs except for gas price (price not usage), taxes,           royalties,  insurance  and  fixed  utilities.   Also  includes  all  Selling,  General  and  Administrative           (SG&A) expense.  Target will be based on the budgeted fixed costs times budgeted tons plus the           budgeted variable costs times budgeted tons.            Lost Day Incident Rate – Will be determined by taking the total number of Lost Work Day cases           multiplied by 200,000 and divided by the total number of hours worked.         (d)   Payout  Multiplier.   The  Payout  Multiplier  of  Target  Units is  determined  according  to  the        following tables (awards to be interpolated between the percentages below):                 EBITDA (70%)                               Percent Achieved   Payout                              relative to budget* Multiplier                    Maximum   133%              200%                              130%              190%                              120%              160%                              110%              130%                       Target 100%              100%                        Floor 90%               70%       109122.0269155 EMF_US 76580240v1  

 

                Tons Produced and Controllable Costs (10% each)                               Percent Achieved   Payout                              relative to budget* Multiplier                    Maximum   105%              200%                              103%              160%                              102%              140%                              101%              120%                       Target 100%              100%                              99%               80%                              98%               60%                              97%               40%                              96%               20%                        Floor 95%               0%                  Lost Day Incident Rate Performance Multiplier (10%)                                                  Payout                                 Actual LDIR    Multiplier                              <0.5              150%                       Target 0.5               100%                              >0.5              0%             * Budget is the annual budget approved by the Board of Directors for each respective year in the           Measurement Period.         (e)   Performance Units Vesting will be calculated as follows               (i) Determine Percentage Achieved for each metric  for each  year – Actual  Results  divided by              Target               (ii) Determine Payout Multiplier based on Percent Achieved               (iii) Multiply Payout Multiplier by weighting to determine Award Percentage               (iv) Sum  Award  Percentage  for  each  metric  by  year  to  determine  Total  Payout  Multiplier  for              each year               (v) Average Total Payout Multiplier for 3 years to determine Final Payout Multiplier         Year 1 – 2019                        Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        EBITDA          by Target = % Achieved based on % Achieved                        Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        Tons Produced   by Target = % Achieved based on % Achieved        Controllable    Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        Costs           by Target = % Achieved based on % Achieved        Lost Days                             Payout Multiplier                                                                   x  Weighting =   Award %        Incident Rate                         based on actual results                                                          2019 Total Payout Multiplier Sum of                                                                                   above    109122.0269155 EMF_US 76580240v1  

 

           Year 2 – 2020                        Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        EBITDA          by Target = % Achieved based on % Achieved                        Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        Tons Produced   by Target = % Achieved based on % Achieved        Controllable    Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        Costs           by Target = % Achieved based on % Achieved        Lost Days                             Payout Multiplier                                                                   x  Weighting =   Award %        Incident Rate                         based on actual results                                                          2020 Total Payout Multiplier Sum of                                                                                   above          Year 3 – 2021                        Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        EBITDA          by Target = % Achieved based on % Achieved                        Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        Tons Produced   by Target = % Achieved based on % Achieved        Controllable    Actual Results divided Payout Multiplier                                                                   x  Weighting =   Award %        Costs           by Target = % Achieved based on % Achieved        Lost Days                             Payout Multiplier                                                                   x  Weighting =   Award %        Incident Rate                         based on actual results                                                          2021 Total Payout Multiplier Sum of                                                                                   above          Final Payout Multiplier        2019 Total Payout    2020 Total Payout   2021 Total Payout           Final Payout                          +                   +                    /  3   =        Multiplier           Multiplier          Multiplier                  Multiplier                                Vesting of Performance Units and DERs   4. Vested Awards.  As soon as practicable after the end of the Measurement Period, a determination shall be     made by the Administrator of the number of Performance Units and Performance Distribution Equivalents     that have vested.  The date as of which the Administrator so determines the number of Performance Units     and Performance Distribution Equivalents vesting shall be the “Determination Date.”  The Determination     Date  and  any  other  date  upon  which  Performance  Units  and  Performance  Distribution  Equivalents  vest     pursuant to this Agreement shall be the “Vesting Date.”  Performance Distribution Equivalents shall cease     on the Vesting Date to accumulate distributions with respect to Common Units.  Any Performance Units     and Performance Distribution Equivalents (and accumulated distributions associated with such Performance     Distribution Equivalents) that do not vest shall be immediately forfeited for no consideration.                                        Change in Control   5. Change  in  Control.   Notwithstanding  anything  in  this  Agreement  to  the  contrary,  upon  a  Change  in     Control, the following rules shall apply:      109122.0269155 EMF_US 76580240v1  

 

        (a)   If  a  Change  in  Control  occurs  before  the  Measurement  Period  has  been  completed,  then  the        Measurement Period shall be deemed to end on the date of such Change in Control, and the Participant’s        outstanding Performance Units and Performance Distribution Equivalents shall be earned and vest, if at        all, based on the attainment of such performance criteria as described in Section 3, as determined by the        Administrator, as if the Measurement Period ended on the date of the Change in Control and as if Actual        Results were determined as of the date of the Change in Control.  All remaining Performance Units and        Performance Distribution Equivalents (and accumulated distributions associated with such Performance        Distribution Equivalents) shall be immediately forfeited for no consideration.         (b)   If a Change in Control occurs after the Measurement Period has been completed but prior to the        Determination Date, on  the date of the Change in Control,  the Participant’s outstanding Performance        Units  and  Performance  Distribution  Equivalents  shall  be  earned  and  vest,  if  at  all,  based  on  the        attainment of such performance criteria as described in Section 3, as determined by the Administrator.         All  remaining  Performance  Units  and  Performance  Distribution  Equivalents  (and  accumulated        distributions associated with such Performance Distribution Equivalents) shall be immediately forfeited        for no consideration.                               Disability or Termination Due to Death   6. During  the  Measurement  Period.   Notwithstanding  anything  in  this  Agreement  to  the  contrary,  (a)  if,     during calendar year 2019, the Participant experiences a “disability” within the meaning of section 409A of     the Code (“Disability” or “Disabled”) or separates from service for any reason (including death), then the     Participant’s  Performance Units and Performance Distribution  Equivalents  shall be immediately  forfeited     for  no  consideration;  or  (b)  if,  during  the  calendar  years  2020  or  2021,  the  Participant  experiences  a     Disability or separates from service on account of Participant’s death, then the Participant’s Performance     Units and Performance  Distribution Equivalents shall be earned and vested as  follows:  (i) if such event     occurs during calendar year 2020, at 33% of Target Units, and (ii) if such event occurs during calendar year     2021,  at  67%  of  Target  Units;  and  any  remaining  Performance  Units  and  Performance  Distribution     Equivalents  (and  accumulated  distributions  associated  with  such  Performance  Distribution  Equivalents)     shall be immediately forfeited for no consideration.   7. After the Measurement Period.  Notwithstanding anything in this Agreement to the contrary, if, after the     Measurement Period ends, but prior to the Determination Date, the Participant dies or becomes Disabled     while in the employ of the Company or an Affiliate, upon such date of death or Disability, the Participant’s     outstanding Performance Units and Performance Distribution Equivalents shall be earned and vest, if at all,     based  on  the  attainment  of  such  performance  criteria  as  described  in  Section  3,  as  determined  by  the     Administrator.   Any  remaining  Performance  Units  and  Performance  Distribution  Equivalents  shall  be     immediately forfeited for no consideration.                                           Forfeiture   8. Forfeiture.   Except  as  otherwise  provided  in  this  Agreement,  all  unvested  Performance  Units  and     Performance  Distribution  Equivalents  (and  accumulated  distributions  associated  with  such  Performance     Distribution Equivalents) shall be forfeited if Participant’s employment with the Company or an Affiliate     terminates for any reason.      109122.0269155 EMF_US 76580240v1  

 

                                      Payment of Awards   9. Time  of  Payment.   Settlement  of  Participant’s  vested  Performance  Units  and  Performance  Distribution     Equivalents  will  be  made  within  ninety  (90)  days  after  the  Vesting  Date,  but  in  no  event  later  than     March 15th of the calendar year immediately following the calendar year which contains the Vesting Date.   10. Form  of  Payment.   The  vested  Performance  Units  shall  be  settled  in  whole  Common  Units.   Vested     Performance Distribution Equivalents shall be settled in cash.   11. Death of Participant.  If Participant dies prior to the payment of his earned and vested Performance Units     and Performance Distribution Equivalents, an amount in cash equal to the value of the Participant’s vested,     non-forfeitable Performance Units as  of the Vesting Date and of the vested, non-forfeitable Performance     Distribution Equivalents shall be paid to his or her beneficiary.  Participant shall have the right to designate     a beneficiary in accordance with procedures established under the Plan for such purpose.  If Participant fails     to designate a beneficiary, or if at the time of the Participant’s death there is no surviving beneficiary, any     amounts payable will be paid to the Participant’s estate.   12. Taxes.  The Company will withhold from the Award the number of Common Units and the amount of cash     distributable pursuant to this Agreement necessary to satisfy Federal tax-withholding requirements and state     and local tax-withholding requirements with respect to the state and locality designated by the Participant as     their place of residence in the Company’s system of record at the time the award becomes taxable, except to     the extent otherwise determined to be required by the Company, subject, however, to any special rules or     provisions  that  may  apply  to  Participants  who  are  non-US  employees  (working  inside  or  outside  of  the     United States) or US employees working outside of the United States.  It is the Participant’s responsibility to     properly report all income and remit all Federal, state, and local taxes that may be due to the relevant taxing     authorities as the result of receiving this Award.  The Company makes no commitment or guarantee to the     Participant that any federal, state, local or other tax treatment will (or will not) apply or be available to any     person eligible for benefits under this Award Agreement and assumes no liability whatsoever for the tax     consequences to the Participant.  The Participant shall be solely responsible for and liable for any and all tax     consequences (including but not limited to any interest or penalties) as a result of participation in the Plan.                                       General Provisions   13. No  Right  to  Continued  Employment.   Neither  this  Award  nor  the  granting,  vesting  or  settlement  of     Performance Units or Performance Distribution Equivalents shall confer upon the Participant any right with     respect  to  continuance of employment by or other service with  the Company or an Affiliate, nor shall it     interfere in any way with the right of the Company or an Affiliate to terminate the Participant’s employment     or other service at any time.   14. Governing Law.  These Awards and this Agreement shall be governed by the laws of the State of Delaware     and applicable Federal law.   15. Conflicts.   In  the  event  of  any  conflict  between  the provisions  of  the  Plan  and  the  provisions  of  this     Agreement, the provisions of the Plan shall govern.   16. Binding Effect.  Subject to the limitations stated above and in the Plan, this Agreement shall be binding     upon and inure to the benefit of the legatees, distributees, and personal representatives of Participant and the     successors of the Company.      109122.0269155 EMF_US 76580240v1  

 

                                          109122.0269155 EMF_US 76580240v1  

 

        IN WITNESS WHEREOF, the Company has caused this Agreement to be signed on its behalf.               Ciner Resource Partners LLC      By                                                  Name:    [NAME]                             Title:   [TITLE]                                                                    Participant – [NAME]         109122.0269155 EMF_US 76580240v1Exhibit 10.1

 

FORM OF SUPPORT AGREEMENT

 

This SUPPORT AGREEMENT (this “Agreement”) is entered into as of September 23, 2019, among ArTara Therapeutics, Inc., a Delaware corporation (“Company”), Proteon Therapeutics, Inc., a Delaware corporation (“Parent”), and the undersigned (the “Stockholder”).

 

WHEREAS, as of the date hereof, the Stockholder is the sole record and beneficial owner of and has the sole power to vote (or to direct the voting of) the number of shares of Company Capital Stock set forth opposite the Stockholder’s name on Schedule I hereto (such Company Capital Stock together with any other shares of Company Capital Stock (“Shares”) acquired by the Stockholder during the Voting Period (as hereinafter defined), are collectively referred to herein as the “Subject Shares”);

 

WHEREAS, Company, Parent, and REM 1 Acquisition, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (“Merger Sub”) are concurrently entering into an Agreement and Plan of Merger and Reorganization, dated on or about the date hereof (as amended from time to time, the “Merger Agreement”), pursuant to which Merger Sub shall be merged with and into Company, with Company continuing as the surviving corporation thereafter (the “Merger”);

 

WHEREAS, the affirmative vote (or written consent) of the holders of a majority of the shares of Company Common Stock entitled to vote thereon, voting as a separate class, outstanding on the record date for the written consent in lieu of a meeting pursuant to Section 228 of the DGCL approving the Company Stockholder Matters, are the only votes (or written consents) of the holders of Company Capital Stock necessary to adopt and approve the Company Stockholder Matters; and

 

WHEREAS, as an inducement to Company’s and Parent’s willingness to enter into the Merger Agreement and consummate the transactions contemplated thereby, transactions from which the Stockholder believes it will derive substantial benefits through its ownership interest in Company, the Stockholder is entering into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth herein, the parties agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.1                                        Capitalized Terms. For purposes of this Agreement, capitalized terms used and not defined herein shall have the respective meanings ascribed to them in the Merger Agreement.

 

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ARTICLE II

 

VOTING AGREEMENT AND IRREVOCABLE PROXY

 

SECTION 2.1                                        Agreement to Vote.

 

(a)                                 The Stockholder hereby agrees that, within three (3) business days of the Registration Statement becoming effective, the Stockholder shall execute and deliver, or cause to be executed and delivered, to Company, a written consent in the form of Exhibit A hereto (a “Written Consent”). The Written Consent shall be coupled with an interest and shall be irrevocable. As used herein, (i) the term “Expiration Time” shall mean the earliest occurrence of (A) the Effective Time and (B) the date and time of the valid termination of the Merger Agreement in accordance with its terms, and (ii) the term “Voting Period” shall mean such period of time between the date hereof and the Expiration Time.

 

(b)                                 The Stockholder hereby agrees that, during the Voting Period, and at any duly called meeting of the stockholders of Company (or any adjournment or postponement thereof), or in any other circumstances (including action by written consent of stockholders in lieu of a meeting) upon which a vote, adoption or other approval or consent with respect to the adoption of the Merger Agreement or the approval of the Merger and any of the transactions contemplated thereby is sought, the Stockholder shall, if a meeting is held, appear at the meeting, in person or by proxy, and shall provide a written consent or vote (or cause to be voted), in person or by proxy, all its Subject Shares, in each case (i) in favor of (A) any proposal to adopt and approve or reapprove the Merger Agreement and the transactions contemplated thereby, including, without limitation, (1) adoption of the Merger Agreement and thereby approval of the Contemplated Transactions, (2) acknowledgment that the approval given thereby is irrevocable and that the Stockholder is aware of the Stockholder’s rights to demand appraisal for the Subject Shares pursuant to Section 262 of the DGCL and that the Stockholder has received and read a copy of Section 262 of the DGCL, and (3) acknowledgment that by the Stockholder’s approval of the Merger the Stockholder is not entitled to appraisal rights with respect to the Subject Shares in connection with the Merger and thereby waives any rights to receive payment of the fair value of the Subject Shares under the DGCL and (B) waiving any notice that may have been or may be required relating to the Merger or any of the other transactions contemplated by the Merger Agreement, and (ii) against (X) Acquisition Proposal or Acquisition Inquiry and any action in furtherance of any such Acquisition Proposal or Acquisition Inquiry or any agreement, transaction or other matter that is intended to, or would reasonably be expected to, impede, interfere with, delay, postpone, discourage or materially and adversely affect the consummation of the Merger and all other transactions contemplated by the Merger Agreement, and (Y) any action, proposal, transaction or agreement that, to the knowledge of the Stockholder, would reasonably be expected to result in a material breach of any covenant, representation or warranty or any other obligation or agreement of the Stockholder under this Agreement.

 

SECTION 2.2                                        Grant of Irrevocable Proxy. The Stockholder hereby appoints Company and any designee of Company, and each of them individually, as the Stockholder’s proxy, with full power of substitution and resubstitution, to vote, including by executing written consents, during the Voting Period with respect to any and all of the Subject Shares on the matters and in the manner specified in Section 2.1; provided, however, that the Stockholder’s grant of the proxy

 

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contemplated by this Section 2.2 shall be effective with respect to Section 2.1(a) if, and only if, the Stockholder does not deliver the Written Consent immediately following the earlier to occur of (i) confirmation by the SEC that it has no further comments on the Proxy Statement or (ii) expiration of the 10-day waiting period contemplated by Rule 14a-6(a) promulgated under the Exchange Act. The Stockholder shall take all further action or execute such other instruments as may be necessary to effectuate the intent of any such proxy. The Stockholder affirms that the irrevocable proxy given by it hereby with respect to the Merger Agreement and the transactions contemplated thereby is given to Company by the Stockholder to secure the performance of the obligations of the Stockholder under this Agreement. It is agreed that Company (and its officers on behalf of Company) will use the irrevocable proxy that is granted by the Stockholder hereby only in accordance with applicable Laws and that, to the extent Company (and its officers on behalf of Company) uses such irrevocable proxy, it will only vote (or sign written consents in respect of) the Subject Shares subject to such irrevocable proxy with respect to the matters specified in, and in accordance with the provisions of, Section 2.1.

 

SECTION 2.3                                        Nature of Irrevocable Proxy. The proxy granted pursuant to Section 2.2 to Company by the Stockholder shall be irrevocable during the term of this Agreement, shall be deemed to be coupled with an interest sufficient in law to support an irrevocable proxy and shall revoke any and all prior proxies or powers of attorney granted by the Stockholder and no subsequent proxy or power of attorney shall be given or written consent executed (and if given or executed, shall not be effective) by the Stockholder with respect thereto. The proxy that may be granted hereunder shall terminate upon the termination of this Agreement, but shall survive the death or incapacity of the Stockholder and any obligation of the Stockholder under this Agreement shall be binding upon the heirs, personal representatives and successors of the Stockholder.

 

ARTICLE III

 

COVENANTS

 

SECTION 3.1                                        Subject Shares.

 

(a)                                 The Stockholder agrees that, during the Voting Period, it shall not, and shall not commit or agree to, without the prior written consent of Parent and Company (i) directly or indirectly, whether by merger, consolidation or otherwise, offer for sale, sell (including short sales), transfer, tender, pledge, encumber, assign or otherwise dispose of (including by gift or by operation of law) (collectively, a “Transfer”), or enter into any contract, option, derivative, hedging or other agreement or arrangement or understanding (including any profit-sharing arrangement) with respect to, or consent to or permit, a Transfer of, any or all of the Subject Shares or any interest therein; and (ii) (A) grant any proxies or powers of attorney with respect to any or all of the Subject Shares or agree to vote (or sign written consents in respect of) the Subject Shares on any matter or divest itself of any voting rights in the Subject Shares, or (B) take any action that would have the effect of preventing or disabling the Stockholder from performing its obligations under this Agreement. Notwithstanding the foregoing and subject to the last sentence of this Section 3.1(a), the Stockholder may (1) make transfers or dispositions of the Subject Shares to any member of the immediate family of the Stockholders or to any trust for the direct or indirect benefit of the Stockholder or the immediate family of the Stockholder, (2)

 

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make transfers or dispositions of the Subject Shares by will, other testamentary document or intestate succession to the legal representative, heir, beneficiary or a member of the immediate family of the Stockholder, (3) make transfers of the Subject Shares to its stockholders, direct or indirect affiliates (within the meaning set forth in Rule 405 under the Securities Act), current or former partners (general or limited), members or managers of the Stockholder, as applicable, or to the estates of any such stockholders, affiliates, partners, members or managers, or to another corporation, partnership, limited liability company or other business entity that controls, is controlled by or is under common control with the Stockholder, (4) make transfers that occur by operation of law pursuant to a qualified domestic relations order or in connection with a divorce settlement, (5) make transfers or dispositions not involving a change in beneficial ownership (including voting rights) and (6) if the Stockholder is a trust, make transfers or dispositions to any beneficiary of the Stockholder or the estate of any such beneficiary. The Stockholder agrees that any Transfer of Subject Shares not permitted hereby shall be null and void and that any such prohibited Transfer shall be enjoined. If any voluntary or involuntary transfer of any Subject Shares covered hereby shall occur (including, but not limited to, a sale by the Stockholder’s trustee in bankruptcy, or a sale to a purchaser at any creditor’s or court sale), the transferee (which term, as used herein, shall include any and all transferees and subsequent transferees of the initial transferee) shall take and hold such Subject Shares subject to all of the restrictions, liabilities and rights under this Agreement, which shall continue in full force and effect.

 

(b)                                 In the event of a stock dividend or distribution, or any change in the Subject Shares by reason of any stock dividend or distribution, split-up, recapitalization, combination, conversion, exchange of shares or the like, the term “Subject Shares” shall be deemed to refer to and include the Subject Shares as well as all such stock dividends and distributions and any securities into which or for which any or all of the Subject Shares may be changed or exchanged or which are received in such transaction. The Stockholder further agrees that, in the event Stockholder purchases or otherwise acquires beneficial or record ownership of or an interest in, or acquires the right to vote or share in the voting of, any additional Shares, in each case after the execution of this Agreement, the Stockholder shall deliver promptly to Company written notice of such event, which notice shall state the number of additional Shares so acquired.

 

SECTION 3.2                                        Stockholder’s Capacity. All agreements and understandings made herein shall be made solely in the Stockholder’s capacity as a holder of the Subject Shares and not in any other capacity.

 

SECTION 3.3                                        Other Offers. Except to the extent Company is permitted to take such action pursuant to the Merger Agreement, the Stockholder (in the Stockholder’s capacity as such), shall not, nor shall the Stockholder authorize or permit any of its Representatives to, take any of the following actions: (i) solicit, initiate or knowingly encourage, induce or facilitate the communication, making, submission or announcement of any Acquisition Proposal or Acquisition Inquiry or take any action that could reasonably be expected to lead to an Acquisition Proposal or Acquisition Inquiry; (ii) furnish any non-public information regarding the Company or any of its Subsidiaries to any Person in connection with or in response to an Acquisition Proposal or Acquisition Inquiry; (iii) engage in discussions or negotiations with any Person with respect to any Acquisition Proposal or Acquisition Inquiry; (iv) approve, endorse or recommend any Acquisition Proposal; (v) execute or enter into any letter of intent or any Contract contemplating or otherwise relating to any Acquisition Transaction; or (vi) publicly

 

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propose to do any of the foregoing; provided, however, that none of the foregoing restrictions shall apply to the Stockholder’s and its Representatives’ interactions with Parent, Merger Sub, Company and their respective Subsidiaries and Representatives. Without limiting the foregoing, it is understood that any violation of the foregoing restrictions by any Representatives of the Stockholder shall be deemed to be a breach of this Section 3.3 by the Stockholder. The Stockholder shall, and shall use reasonable best efforts to cause its Representatives to, immediately cease any and all existing discussions or negotiations with any Persons conducted heretofore with respect to any Acquisition Proposal.

 

SECTION 3.4                                        Communications. During the Voting Period, the Stockholder shall not, and shall use its reasonable best efforts to cause its Representatives, if any, not to, directly or indirectly, make any press release, public announcement or other public communication that criticizes or disparages this Agreement or the Merger Agreement or any of the transactions contemplated hereby and thereby, without the prior written consent of Parent and Company, provided that the foregoing shall not limit or affect any actions taken by the Stockholder (or any affiliated officer or director of Stockholder) that would be permitted to be taken by Stockholder pursuant to the Merger Agreement. The Stockholder hereby (i) consents to and authorizes the publication and disclosure by Parent, Merger Sub and Company (including in any publicly filed documents relating to the Merger or any transaction contemplated by the Merger Agreement) of: (a) the Stockholder’s identity; (b) the Stockholder’s beneficial ownership of the Subject Shares; (c) this Agreement; and (d) the nature of the Stockholder’s commitments, arrangements and understandings under this Agreement, and any other information that Parent, Merger Sub or Company determines to be necessary in any SEC disclosure document in connection with the Merger or any transactions contemplated by the Merger Agreement and (ii) agrees as promptly as practicable to notify Parent, Merger Sub and Company of any required corrections with respect to any written information supplied by the Stockholder specifically for use in any such disclosure document.

 

SECTION 3.5                                        Voting Trusts. The Stockholder agrees that it will not, nor will it permit any entity under its control to, deposit any of its Subject Shares in a voting trust or subject any of its Subject Shares to any arrangement with respect to the voting of such Subject Shares other than as provided herein.

 

SECTION 3.6                                        Waiver of Appraisal Rights. The Stockholder hereby irrevocably and unconditionally waives, and agrees not to assert, exercise or perfect (or attempt to exercise, assert or perfect) any rights of appraisal or rights to dissent from the Merger or quasi-appraisal rights that it may at any time have under applicable Laws, including Section 262 of the DGCL. The Stockholder agrees not to commence, join in, facilitate, assist or encourage, and agrees to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against Parent, Merger Sub, Company or any of their respective successors, directors or officers, (a) challenging the validity, binding nature or enforceability of, or seeking to enjoin the operation of, this Agreement or the Merger Agreement, or (b) alleging a breach of any fiduciary duty of any Person in connection with the evaluation, negotiation, entry into or consummation of the Merger Agreement.

 

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ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER

 

The Stockholder hereby represents and warrants to Company as follows:

 

SECTION 4.1                                        Due Authorization, etc. The Stockholder is a natural person, corporation, limited partnership or limited liability company. If the Stockholder is a corporation, limited partnership or limited liability company, Stockholder is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, organized or constituted. The Stockholder has all necessary power and authority to execute and deliver this Agreement, perform the Stockholder’s obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement, performance of the Stockholder’s obligations hereunder and the consummation of the transactions contemplated hereby by the Stockholder have been duly authorized by all necessary action on the part of the Stockholder and no other proceedings on the part of the Stockholder are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Stockholder and (assuming the due authorization, execution and delivery by Parent and Company) constitutes a valid and binding obligation of the Stockholder, enforceable against the Stockholder in accordance with its terms, except to the extent enforcement is limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and by general equitable principles.

 

SECTION 4.2                                        Ownership of Shares. Schedule I hereto sets forth opposite the Stockholder’s name the Shares over which the Stockholder has sole record and beneficial ownership as of the date hereof. As of the date hereof, the Stockholder is the lawful owner of the Shares denoted as being owned by the Stockholder on Schedule I hereto, has the sole power to vote or cause to be voted such Shares and has the sole power to dispose of or cause to be disposed such Shares (other than, if Stockholder is a partnership or a limited liability company, the rights and interest of persons and entities that own partnership interests or units in Stockholder under the partnership agreement or operating agreement governing Stockholder and applicable partnership or limited liability company law, or if Stockholder is a married individual and resides in a state with community property laws, the community property interest of his or her spouse to the extent applicable under such community property laws, which spouse hereby consents to this Agreement by executing the spousal consent attached hereto). The Stockholder has, and will at all times up until the Expiration Time have, good and valid title to the Shares denoted as being owned by the Stockholder on Schedule I hereto, free and clear of any and all pledges, mortgages, liens, charges, proxies, voting agreements, encumbrances, adverse claims, options, security interests and demands of any nature or kind whatsoever, other than (i) those created by this Agreement, or (ii) those existing under applicable securities laws.

 

SECTION 4.3                                        No Conflicts. (a) No filing with any Governmental Body, and no authorization, consent or approval of any other person is necessary for the execution of this Agreement by the Stockholder and (b) none of the execution and delivery of this Agreement by the Stockholder, the performance of the Stockholder’s obligations hereunder, the consummation by the Stockholder of the transactions contemplated hereby or compliance by the Stockholder

 

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with any of the provisions hereof shall (i) conflict with or result in any breach of the organizational documents of the Stockholder, (ii) result in, or give rise to, a violation or breach of or a default under any of the terms of any material contract, understanding, agreement or other instrument or obligation to which the Stockholder is a party or by which the Stockholder or any of the Subject Shares or its assets may be bound or (iii) violate any applicable order, writ, injunction, decree, judgment, statute, rule or regulation, except for any of the foregoing as would not reasonably be expected to impair the Stockholder’s ability to perform its obligations under this Agreement.

 

SECTION 4.4                                        Finder’s Fees. No investment banker, broker, finder or other intermediary is entitled to a fee or commission from Parent, Merger Sub or Company in respect of this Agreement based upon any Contract made by or on behalf of the Stockholder, solely in the Stockholder’s capacity as a stockholder of Company.

 

SECTION 4.5                                        No Litigation. As of the date of this Agreement, there is no Legal Proceeding pending or, to the knowledge of the Stockholder, threatened against the Stockholder that would reasonably be expected to impair the ability of the Stockholder to perform its obligations hereunder or consummate the transactions contemplated hereby.

 

ARTICLE V

 

TERMINATION

 

SECTION 5.1                                        Termination. This Agreement shall automatically terminate, and none of Parent, Company or the Stockholder shall have any rights or obligations hereunder and this Agreement shall become null and void and have no effect upon the Expiration Time. The parties acknowledge that upon termination of this Agreement as permitted under and in accordance with the terms of this Article V, no party to this Agreement shall have the right to recover any claim with respect to any losses suffered by such party in connection with such termination, except that the termination of this Agreement shall not relieve any party to this Agreement from liability for such party’s breach of any terms of this Agreement prior to the termination hereof. Notwithstanding anything to the contrary herein, the provisions of this Article V and Article VI shall survive the termination of this Agreement.

 

ARTICLE VI

 

MISCELLANEOUS

 

SECTION 6.1                                        Further Actions. Subject to the terms and conditions set forth in this Agreement, the Stockholder agrees to take any all actions and to do all things reasonably necessary to effectuate this Agreement. If the Stockholder is a married individual, his or her spouse shall deliver the spousal consent attached hereto unless the Stockholder can demonstrate to Parent’s and Company’s reasonable satisfaction that his or her spouse does not have any community property interests in the Subject Shares.

 

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SECTION 6.2                                        Fees and Expenses. Except as otherwise specifically provided herein, each party shall bear its own expenses in connection with this Agreement and the transactions contemplated hereby.

 

SECTION 6.3                                        Amendments, Waivers, etc. This Agreement may not be amended except by an instrument in writing signed by the parties hereto and specifically referencing this Agreement. The failure of any party to assert any rights or remedies shall not constitute a waiver of such rights or remedies.

 

SECTION 6.4                                        Notices. Any notice, request, instruction or other document required to be given hereunder shall be sufficient if in writing, and sent by confirmed electronic mail transmission of a “portable document format” (“.pdf”) attachment (provided that any notice received by electronic mail transmission or otherwise at the addressee’s location on any business day after 5:00 p.m. (addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s local time) on the next business day), by reliable overnight delivery service (with proof of service), or hand delivery, addressed as follows:

 

If to Company, to

 

	
ArTara   Therapeutics, Inc.
    
	
1 Little   W 12th Street
    
	
New York,   New York 10014
    
	
Attention: Jesse   Shefferman
    
	
Email: jesse.shefferman@artaratx.com
    

 

with a copy (which shall not constitute notice) to:

 

	
Cooley   LLP
    
	
500   Boylston Street, 14th Floor
    
	
Boston,   MA 02116-3736
    
	
Attention:   Ryan Sansom
    
	
Email:   rsansom@cooley.com
    

 

If to Parent, to

 

	
Proteon   Therapeutics, Inc.
    
	
200   West Street
    
	
Waltham,   Massachusetts 02451
    
	
Attention:   Chief Executive Officer
    
	
Email:   ceo@proteontx.com
    

 

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with a copy (which shall not constitute notice) to:

 

	
Morgan,   Lewis & Bockius LLP
    
	
One   Federal Street
    
	
Boston,   Massachusetts 02210
    
	
Attention:   Julio E. Vega
    
	
Email:   julio.vega@morganlewis.com
    

 

If to the Stockholder, to the address or electronic mail address set forth on the signature pages hereto or to such other person or address as any party shall specify by written notice so given.

 

SECTION 6.5                                        Headings. Headings of the Articles and Sections of this Agreement are for convenience of the parties only, and shall be given no substantive or interpretive effect whatsoever.

 

SECTION 6.6                                        Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application of such provision to any person or any circumstance, is invalid or unenforceable (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application of such provision, in any other jurisdiction.

 

SECTION 6.7                                        Entire Agreement; Assignment. This Agreement constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties, except that without consent Parent and Company may assign all or any of its rights and obligations hereunder to any of their respective Affiliates that assume the rights and obligations of Parent or Company, respectively, under the Merger Agreement. Subject to the preceding two sentences, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. Notwithstanding anything to the contrary set forth herein, the Stockholder agrees that this Agreement and the obligations hereunder shall be binding upon any Person to which record or beneficial ownership of the Stockholder’s Subject Shares shall pass, whether by operation or law or otherwise, including the Stockholder’s heirs, guardians, administrators or successors and assigns, and the Stockholder agrees to take all actions necessary to effect the foregoing.

 

SECTION 6.8                                        Governing Law. THIS AGREEMENT AND ALL QUESTIONS RELATING TO THE INTERPRETATION OR ENFORCEMENT OF THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF TO THE EXTENT THAT SUCH PRINCIPLES WOULD DIRECT A MATTER TO ANOTHER JURISDICTION.

 

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SECTION 6.9                                        Specific Performance. The Stockholder acknowledges that any breach of this Agreement would give rise to irreparable harm for which monetary damages would not be an adequate remedy and each of Company and Parent shall be entitled to a decree of specific performance and to temporary, preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this Agreement, without the necessity of proving the inadequacy of monetary damages as a remedy, which shall be the sole and exclusive remedy for any such breach.

 

SECTION 6.10                                 Submission to Jurisdiction. The parties hereby irrevocably submit to the exclusive personal jurisdiction of the Court of Chancery of the State of Delaware, or, if the Chancery Court declines jurisdiction, the United States District Court for the District of Delaware or the courts of the State of Delaware solely in respect of the interpretation and enforcement of the provisions of this Agreement and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims relating to such action, suit or proceeding shall be heard and determined in such courts. The parties hereby consent to and grant any such court jurisdiction over the person of such parties and, to the extent permitted by law, over the subject matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 6.4 or in such other manner as may be permitted by applicable Laws shall be valid and sufficient service thereof.

 

SECTION 6.11                                 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.11.

 

SECTION 6.12                                 Counterparts. This Agreement may be executed in two or more counterparts (including by facsimile transmission or other means of electronic transmission, such as by electronic mail in “pdf” form), each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become effective when one or more counterparts have been signed by each of the parties and delivered (by facsimile or otherwise) to the other parties.

 

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[Remainder of the page intentionally left blank; signatures follow on next page]

 

11

 

IN WITNESS WHEREOF, Company, Parent and the Stockholder have caused this Agreement to be duly executed as of the day and year first above written.

 

	
 
    	
ARTARA   THERAPEUTICS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
PROTEON   THERAPEUTICS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Address:
    
	
 
    	
 
    	
Electronic   Mail Address:
    

 

[Signature Page to Support Agreement]

 

 

SPOUSAL CONSENT

 

I                         , spouse of                      , having the legal capacity, power and authority to do so, hereby confirm that I have read and approve the foregoing the Support Agreement, dated as of September 23, 2019, by and among ArTara Therapeutics, Inc., Proteon Therapeutics, Inc., and                 (the “Agreement”). In consideration of the terms and conditions as set forth in the Agreement, I hereby appoint my spouse as my attorney in fact with respect to the exercise of any rights and obligations under the Agreement, and agree to be bound by the provisions of the Agreement insofar as I may have any rights or obligations in the Agreement under the community property laws of the State of California or similar laws relating to marital or community property in effect in the state of our residence as of the date of the Agreement.

 

	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Date:
    

 

[Signature Page to Support Agreement]

 

 

Exhibit A
  Written Consent

 

See attached.

 

 

Schedule I

 

Ownership of Shares

 

	
Name and Address of Stockholder
    	
 
    	
Number of Shares
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

2

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