Document:

exv10w10

 

Exhibit 10.10

PLEDGE AGREEMENT

     AGREEMENT made as of March 21, 2002 by and between Mitchell J. Kelly,
residing at 703 Fifth Avenue, New York, New York 10019 (the “Pledgor”) and
Novavax, Inc., a Delaware corporation with an address 8320 Guilford Road,
Columbia, Maryland 21046 (the “Pledgee”).

     WHEREAS, the Pledgor has borrowed monies from the Pledgee to acquire stock
of Pledgee upon the exercise of options held by Pledgor, as evidenced by a
Secured Promissory Note of even date herewith (the “Note”); and

     WHEREAS, as a condition to the Note the Pledgee requires that the Pledgor
pledge all shares of capital stock acquired pursuant to the exercise of such
stock options;

     NOW, THEREFORE, in consideration of the foregoing and for $1.00 and other
good and valuable consideration, the receipt of which the Pledgor hereby
acknowledges, the Pledgor hereby agrees as follows:

     1.  Pledge.  The Pledgor hereby assigns, transfers, sets over and pledges to
the Pledgee as collateral to secure the payment and performance of any and all
liabilities and obligations of the Pledgor to the Pledgee arising under the
Note, 95,000 shares of common stock of Novavax, Inc. (the “Pledged Shares”),
and herewith delivers to the Pledgee the certificates evidencing the same,
endorsed in blank or with duly executed stock powers attached.

     2.  Representations; Covenants.  The Pledgor represents and warrants that he
has good and marketable title to all of the Pledged Shares, free and clear of
any mortgage, pledge, lien, encumbrance or charge of any nature whatsoever,
except the pledge created by this Agreement in favor of the Pledgee, and duly
and validly pledged hereby with the Pledgee in accordance with applicable law.
The Pledgor covenants that it will defend the Pledgee’s right, title, special
property and security interest in and to the Pledged Shares against the claims
of all persons whomsoever.

     3.  Rights Prior to Declaration of Default.

		
	 	     (a)  Unless an Event of Default (as hereafter defined) shall have occurred
and be continuing, the Pledged Shares shall continue to be registered in the
name of the Pledgor and the Pledgor shall have the right to vote the same at
all stockholders meetings at which the same or any part thereof may be voted
and to receive any cash dividends (other than liquidating or similar dividends)
allocable thereto. Stock dividends and any other distribution with respect to
the Pledged Shares shall be pledged as additional collateral and held by the
Pledgee subject to the terms and conditions hereof.

		
	 	     (b)  If the stock of any corporation whose shares are pledged hereunder
shall be changed into or exchanged for a different number of kind of shares of
stock or other securities of such corporation or of another corporation,
whether through merger, consolidation, reorganization, recapitalization, stock
split, or combination of shares, there shall be substituted for each of the
Pledged Shares held by the Pledgee under this Agreement the number of shares of

 

 

		
	 	stock or other securities into which each outstanding share of such capital
stock shall be so changed or for which each share shall be exchanged. The
Pledgor hereby agrees that any securities so substituted for the Pledged Shares
pursuant to the terms of such change or exchange shall be delivered directly to
the Pledgee, to be held and disposed of by the Pledgee in accordance with the
terms and provisions of this Agreement. The Pledgor authorizes the Pledgee to
surrender the Pledged Shares or take whatever other action is required to be
taken with respect to the Pledged Shares under the terms of such change or
exchange and further agrees to execute and deliver to the Pledgee such stock
powers as may be necessary to carry out the purposes of this Agreement in view
of such substitution.

     4.  Default.  If any of the following events (“Events of Default”) shall occur:

		
	 	     (a)  the Pledgor shall be in breach of any covenant contained herein or in
the Note; or

		
	 	     (b)  If the Pledgor shall admit in writing its inability to pay its debts;
or make an assignment for the benefit of creditors or suffer a receiver or
trustee for all or substantially all of its property to be appointed and, if
appointed without its consent, not to be discharged within 60 days; or suffer
proceedings under any law relating to bankruptcy, insolvency or the
reorganization or relief of debtors to be instituted by or against it and, if
contested by it, not to be dismissed or stayed within 60 days; or suffer any
judgment to be entered against it, or any writ of attachment or execution or
any similar process to be issued or levied against a substantial part of its
property, which judgment, writ or process is not satisfied, discharged,
released, stayed, bonded or vacated within 60 days after its entry, issue or
levy;

		
	 	then, and in every such event, the Pledgee may declare the Pledgor in default
and exercise the rights and remedies of a secured party under the Uniform
Commercial Code and any other rights and remedies set forth in this Agreement.

     5.  Rights on Default.

		
	 	     (a)  If an Event of Default shall have occurred and be continuing, the
Pledgee is hereby irrevocably authorized to cause the Pledged Shares to be
transferred into its name or the name of its nominee on the books of the
corporation issuing the same; provided, however, that all such Pledged Shares
so transferred shall continue to be held and disposed of by the Pledgee in
accordance with this Agreement. The Pledgor agrees that any transfer of the
Pledged Shares pursuant to this paragraph shall not be deemed a sale or
disposition under the provisions of Article 9 of the Uniform Commercial Code
nor an acceptance of such stock in satisfaction of the obligations of the
Pledgor to the Pledgee or any portion thereof.

		
	 	     (b)  The Pledgee, upon compliance with any mandatory requirements of laws,
but without further demand, attachment or notice of any kind, all of which are
hereby expressly waived by the Pledgor, may sell the Pledged Shares, in whole
at any time or in part from time to time, for cash, upon credit or for future
delivery, at public sale or at any brokers’ board or exchange or at private
sale, all at the option and in the complete discretion of the Pledgee. The
Pledgee may be a purchaser at any such public or private sale and may apply the
amount

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	 	outstanding on obligations of the Pledgor to the Pledgee, plus interest
accrued, towards the payment of the purchase price of the Pledged Shares. Any
such sale shall be free from any right or equity of redemption in the Pledgor,
which right or equity is hereby expressly waived and released by the Pledgor.

		
	 	     (c)  In case of any sale by the Pledgee of any of the Pledged Shares on
credit or for future delivery, the Pledged Shares sold may be retained by the
Pledgee until the sales price is paid by the purchaser, but the Pledgee shall
incur no liability in case of failure of the purchaser to take up and pay for
the Pledged Shares so sold. In case of any such failure, such Pledged Shares
so sold may be again similarly sold.

		
	 	     (d)  After deducting all costs or expenses of every kind, including
reasonable attorneys’ fees, the Pledgee shall apply the proceeds from the sale
of the Pledged Shares towards payment of all outstanding obligations of the
Pledgor to the Pledgee under the Note. Any proceeds remaining after the
payment in full of all such obligations shall be paid by the Pledgee to the
Pledgor or to whomsoever may be lawfully entitled to receive the same or as a
court of competent jurisdiction may direct.

		
	 	     (e)  Except as otherwise expressly provided herein, after an Event of
Default the Pledgee may deal with the Pledged Shares and the proceeds thereof
in all respects as if the Pledged Shares and the proceeds thereof were its own
property.

		
	 	     (f)  No course of dealing or delay in taking or failure to take any action
with respect to any Event of Default shall affect the Pledgee’s right to take
such action at a later time. No waiver as to any one Event of Default shall
affect the Pledgee’s rights upon any other Event of Default.

		
	 	     (g)  The Pledgee may exercise any or all of its rights or remedies after
an Event of Default concurrently with, or independent of, and without regard
to, the provisions of any other security agreement or other instrument which
secures any obligation of the Pledgor to the Pledgee.

		
	 	     (h)  The requirement of the Uniform Commercial Code that the Pledgee give
the Pledgor reasonable notice of any proposed sale or disposition of the
Collateral shall be met if such notice is given at least seven days before the
time of such sale or disposition.

     6.  Notices.  Any notice under this Agreement shall be in writing and shall be
deemed delivered if mailed by certified mail, postage prepaid, return receipt
requested, if addressed to the Company or the Pledgee, as the case may be, at
the respective addresses given at the beginning of this Agreement or at such
other address of a party as may be specified by notice in writing given by such
party to the other party after the date hereof. If notice is given by mail and
is not delivered within three days of the date of the postmark, any applicable
notice period shall be extended by two days. Nothing contained herein shall
prevent the giving of actual written notice in any other effective manner.

3

 

     7.  Successors and Assigns.  This Agreement shall be binding upon, and inure to
the benefit of, the Pledgor and his heirs, executors, successors and assigns.
This Agreement shall be binding upon, and inure to the benefit of, the Pledgee
and its successors and assigns.

     8.  Term.  The term of this Agreement shall be until all obligations of the
Pledgor to the Pledgee under the Note have been paid and performed in full.
Upon payment in full of all such obligations, this Agreement shall terminate
and the Pledgee shall surrender to the Pledgor the Pledged Shares which have
not theretofore been sold or otherwise disposed of pursuant to this Agreement,
together with any excess proceeds from any sale of the Pledged Shares which at
the time may be held by the Pledgee hereunder.

     9.  Waivers.  With respect both to obligations of the Pledgor to the Pledgee
and with respect to any collateral securing said obligations, including the
Pledged Shares, the Pledgor assents to any extension or postponement of the
time of payment or any other indulgence, to any substitution, exchange or
release of collateral, to the addition or release of any party or person
primarily or secondarily liable, to the acceptance of partial payment thereof
and the settlement, compromising or adjusting of any thereof, all in such
manner and at such time or times as the Pledgee may deem advisable. The
Pledgee may exercise its rights with respect to the Pledged Shares without
resorting to and without regard to other collateral or sources for
reimbursement for liability. The Pledgee shall not be deemed to have waived
any of its rights upon or under any obligation of the Pledgor to the Pledgee or
with respect to the Pledged Shares unless such waiver is in writing and signed
by the Pledgee. No delay or omission on the part of the Pledgee in exercising
any right shall operate as a waiver of such right or any other right. A waiver
on any one occasion shall not be construed as a bar to or waiver of any right
on any future occasion. All rights and remedies of the Pledgee with respect to
obligations of the Pledgor to the Pledgee or the Pledged Shares, whether
evidenced hereby or by any other instrument or document, shall be cumulative
and may be exercised separately or concurrently.

     10.  Governing Law.  This Agreement and the rights and obligations of the
parties hereunder shall be governed by and construed in accordance with the
laws of the State of Delaware applicable to contracts made and to be performed
entirely within such State, and shall have the effect of a sealed instrument.

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

NOVAVAX, INC.

	 	 	 
	 	 	 
	 	 	 
	By:

 	 	 

Mitchell J. Kelly

4exv10w11

 

Exhibit 10.11

SECURED PROMISSORY NOTE

	 	 	 
	$1,031,668.00	 	
March 21, 2002

     FOR VALUE RECEIVED, the undersigned, Denis M. O’Donnell, M.D., residing at
5 Westgate Road, Winchester, Massachusetts 01890 (the “Director”) hereby
promises to pay to Novavax, Inc., a Delaware corporation with an address 8320
Guilford Road, Columbia, Maryland 21046 (hereinafter with any subsequent holder
called the “Holder”) the principal sum of ONE MILLION THIRTY ONE THOUSAND SIX
HUNDRED SIXTY EIGHT DOLLARS ($1,031,668.00), in lawful money of the United
States of America or by delivery to the Holder of shares of Common Stock of
Novavax, Inc. or in any combination of the foregoing, with interest from the
date hereof on the whole amount of such principal sum remaining from time to
time unpaid at the rate per annum of five and seven one-hundredths percent
(5.07%), payable upon the earlier to occur of the following: (i) payable in
full upon the date on which the Director ceases for any reason to be a director
of Novavax, Inc., (ii) payable in part, to the extent of net proceeds, upon the
date on which the Director sells all or any portion of the Pledged Shares (as
defined below) or (iii) payable in full on March 21, 2007. Interest shall
accrue and be payable whenever any payment of principal is due hereunder
Interest shall be computed on the basis of a 365 or 366-day year, as
applicable, and shall be paid for the actual number of days on which principal
is outstanding. Whenever shares of Novavax, Inc. Common Stock are delivered in
payment of all or any portion of the principal or interest due hereunder, such
shares shall be valued at the closing price of the Novavax Inc. Common Stock on
the principal market for such stock on the date of payment

     This Note is secured by the pledge of 166,667 shares of common stock of
Novavax, Inc. (the “Pledged Shares”) pursuant to a Pledge Agreement of even
date herewith.

     The Director may prepay the principal amount outstanding under this Note,
in whole or in part, at any time without premium or penalty. Any partial
prepayment shall be applied first against all accrued interest through the date
of the prepayment and second against the principal amount outstanding.

     All payments of principal and interest on this Note shall be payable to
the Holder at the above address, or at such other place in the United States of
America as the Holder may from time to time designate in writing at least ten
days before such payment is due.

     The entire unpaid balance of principal of, and all accrued unpaid interest
on, this Note shall, at the option of the Holder, become forthwith due and
payable without notice or demand upon the happening of any of the following
events of default: (a) default in payment as required hereunder and such
default continues for 15 days after written notice that such payment is past
due; or (b) appointment of a receiver of any property, common law assignment or
trust mortgage for the benefit of creditors, the commencement of any kind of
insolvency proceedings, or the filing of any proceedings under any bankruptcy
or other law relating to the relief of debtors (and, if such action or
proceeding is involuntary

 

 

on the part of the Director, such action or proceeding is not dismissed within
60 days), of, by or against the Director.

     No delay or omission by the Holder in exercising or enforcing any of its
powers, rights, privileges, remedies or discretions hereunder shall operate as
a waiver thereof on that or any other occasion, and no single or partial
exercise of any right hereunder shall preclude other or future exercise
thereof. No waiver of any right or remedy hereunder on any occasion shall be
construed as a bar or waiver of any such right or remedy on any future
occasion, nor as a continuing waiver. The Director agrees that no variance,
extension or renewal of this Note shall affect the absolute and unconditional
liability of the Director hereunder.

     The Director hereby waives presentment, demand, notice of protest,
suretyship defenses, and all other demands and notices in connection with the
delivery, acceptance, performance, default and/or enforcement of this Note or
of any rights hereunder. The Director will pay to the Holder on demand all
reasonable costs and expenses, including attorneys’ fees, relating to the
collection and/or enforcement of this Note or of any rights hereunder.

     This Note shall be governed by and construed and enforced in accordance
with the laws of the State of Delaware. If any provision of this Note is held
to be invalid or unenforceable by a court of competent jurisdiction, the other
provisions of this Note shall remain in full force and effect.

     IN WITNESS WHEREOF, the Director has caused this Note to be executed as a
sealed instrument, all as of the day, month, and year first written above.

	 	 	 
	

Witness	 	

Denis M. O’Donnell, M.D.

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