Document:

Exhibit 10.1

 

Form of Indemnification Agreement

 

DEED OF INDEMNIFICATION

 

This Deed of Indemnification (this “Deed”) is effective as of                 2017, by and between Nabriva Therapeutics plc, an Irish public limited company (as further defined below, the “Company”), and [INSERT NAME OF DIRECTOR/OFFICER] (“Indemnitee”).

 

A.            The Company recognizes the difficulty in obtaining liability insurance for its directors, officers, company secretary and fiduciaries, and the significant cost of such insurance and the general limitations in the coverage of such insurance.

 

B.            The Company further recognizes the substantial increase in litigation in general, subjecting directors, officers, company secretaries and fiduciaries to expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely limited.

 

C.            The Company recognizes that the current protection available to its directors and company secretary may not be adequate under the present circumstances, and the Company’s directors and company secretary, including Indemnitee, may not be willing to serve or continue to serve or be associated with the Company in such capacities without additional protection.

 

D.            The Company (a) desires to attract and retain the involvement of highly qualified persons, such as Indemnitee, to serve and be associated with the Company, and (b) accordingly, wishes to provide for the indemnification of and advancement of expenses to Indemnitee to the maximum extent permitted by applicable law.

 

E.            In view of the considerations set forth above, the Company desires that Indemnitee shall be indemnified, exonerated, held harmless by the Company as set forth herein.

 

AGREEMENT:

 

In consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Certain Definitions.

 

1.1.         “Awards” shall mean any and all judgments, fines, penalties and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld), actually and reasonably incurred, of any Claim and any Irish tax, Austrian tax U.S. federal, state or local tax, or other foreign tax imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Deed. The term “judgments, fines penalties and amounts paid in settlement” shall be broadly construed and shall include, without limitation, all direct and indirect payments of any type or nature whatsoever, including, without limitation, all penalties and amounts required to be forfeited or reimbursed to the Company, as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan.

 

1.2.         “Change in Control” shall be deemed to have occurred if, on or after the date of this Deed, (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company acting in such capacity or an entity owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of shares of the Company,

 

 

becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then outstanding Voting Securities, (ii) during any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Company’s Board of Directors and any new director whose election by the Company’s Board of Directors or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved (such directors, the “Continuing Directors”), cease for any reason to constitute a majority thereof, (iii) the shareholders of the Company approve a merger of the Company with any other entity other than a merger which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least eighty percent (80%) of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger, (iv) the shareholders of the Company approve a scheme of arrangement in respect of the Company, (v) the shareholders of the Company approve a plan of complete liquidation of the Company or where such approval is not required, a court of competent jurisdiction approves such liquidation or (vi) an agreement is entered into for the sale or disposition by the Company of (in one transaction or a series of related transactions) all or substantially all of the Company’s assets.

 

1.3.         “Claim” shall mean with respect to a Covered Event:  any threatened, asserted, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, or any hearing, inquiry or investigation (formal or informal) that Indemnitee in good faith believes might lead to the institution of any such action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, investigative or other, including any appeal therefrom.

 

1.4.         “Companies Act” shall mean the Companies Act, 2014 of Ireland, as amended, or any successor or consolidating statute, and references in this Deed to any section of the Companies Act shall be read as references to the corresponding provision of any such amending, succeeding or consolidating statute.

 

1.5.         References to the “Company” shall include, in addition to Nabriva Therapeutics plc and each of its subsidiaries, any constituent entity (including any constituent of a constituent) absorbed in a consolidation or merger to which Nabriva Therapeutics plc (or any of its subsidiaries) is a party, which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, company secretaries or fiduciaries so that if Indemnitee is or was a director, officer, company secretary or fiduciary of such constituent entity, or is or was serving at the request of such constituent entity as a director, officer, company secretary, employee, agent or fiduciary of another company, corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Deed with respect to the resulting or surviving entity as Indemnitee would have with respect to such constituent entity if its separate existence had continued.  Notwithstanding the foregoing definition of the “Company,” references to the “Company’s Board of Directors” shall mean the Board of Directors of Nabriva Therapeutics plc.

 

1.6.         “Covered Event” shall mean any event or occurrence by reason of the fact that Indemnitee is or was a director, officer, company secretary or fiduciary of the Company, or any subsidiary of the Company, direct or indirect, whether before or after the date of this Deed, or is or was serving at the request of the Company as a director, officer, company secretary, employee, agent or fiduciary of another company, corporation, partnership, joint venture, employee benefit plan, trust

 

 

or other enterprise, including as a deemed fiduciary thereof, or by reason of any action or inaction on the part of Indemnitee while serving in such capacity, whether before or after the date of this Deed.

 

1.7.         “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, or any successor statute, and any rules and regulations promulgated thereunder.

 

1.8.         “Expense Advance” shall mean a payment to or on behalf of Indemnitee for Expenses pursuant to Clause 3 hereof, in advance of the settlement of or final judgment in any action, suit, proceeding or alternative dispute resolution mechanism, hearing, inquiry or investigation, which constitutes a Claim.

 

1.9.         “Expenses” shall mean any and all direct and indirect costs, losses, claims, damages, fees, expenses and liabilities, joint or several (including attorneys’ fees and all other costs, expenses and obligations reasonably incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, to be a witness in or to participate in, any action, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry or investigation actually and reasonably incurred in respect of any Claim), other than any Award.

 

1.10.       References to “good faith” shall mean that Indemnitee shall be presumed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Company, including financial statements, or on information supplied to Indemnitee by the officers of the Company in the course of their duties, or on the advice of legal counsel for the Company or the Company’s Board of Directors or counsel selected by any committee of such Board, or on information or records given or reports made to the Company by an independent certified public accountant or by an appraiser, investment banker, compensation consultant, or other expert or advisor selected with reasonable care by the Company or its Board of Directors or any committee thereof. This Clause 1.10 shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct.  Whether or not the foregoing provisions of this Clause 1.10 are satisfied, it shall in any event be presumed, absent clear and convincing evidence to the contrary, that Indemnitee has at all times acted in good faith in accordance with this definition and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.

 

1.11.       “Indemnify” and “Indemnified” shall mean to indemnify, exonerate and hold harmless under this Deed, and shall include the right to receive Expense Advances; other capitalized forms of this defined term shall mean the appropriate form of this definition.

 

1.12.       “Independent Legal Counsel” shall mean an attorney or firm of attorneys, selected in accordance with the provisions of Clause 2.4 hereof, who shall not have otherwise performed services for (i) the Company or Indemnitee in any matter material to either such party or (ii) any other party to the Claim giving rise to a claim to be Indemnified, within the last three (3) years (in each case, other than with respect to matters concerning the rights of Indemnitee under this Deed, or of other indemnitees who are parties to indemnification agreements with the Company or Nabriva Therapeutics AG that are similar to this Deed). Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Deed.

 

 

1.13.       References to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise tax assessed on Indemnitee with respect to an employee benefit plan; and references to “serving at the request of the Company” shall include any service as a director, officer, company secretary, employee, agent or fiduciary of the Company which imposes duties on, or involves services by, such director, officer, company secretary, employee, agent or fiduciary with respect to an employee benefit plan, its participants or its beneficiaries, including as a deemed fiduciary thereto; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Deed.

 

1.14.       “Otherwise” shall refer to the Company’s memorandum and articles of association (and any similar governing document), any agreement other than this Deed (including any insurance policy purchased or maintained by the Company), any vote of the Company’s shareholders or resolution of the Company’s Board of Directors, the Companies Act (or other applicable law), or otherwise, in each case as may be now or hereafter in effect.

 

1.15.       “Reviewing Party” shall mean, subject to the provisions of Clause 2.4 hereof, any person or body duly appointed by the Company’s Board of Directors to review the Company’s obligations under this Deed, which may include a member or members of the Company’s Board of Directors, Independent Legal Counsel or any other person or body not a party to the particular Claim for which Indemnitee is seeking to be Indemnified.  In the absence of the appointment of another Reviewing Party, but subject to the provisions of Clause 2.4 hereof, the Company’s Board of Directors shall be deemed to be the “Reviewing Party” within the meaning of this Deed.

 

1.16.       “Sarbanes-Oxley Act” shall mean the U.S. Sarbanes-Oxley Act of 2002, as amended, or any successor statute, and any rules and regulations promulgated thereunder.

 

1.17.       “Securities Act” shall mean the U.S. Securities Act of 1933, as amended, or any successor statute, and any rules and regulations promulgated thereunder.

 

1.18.       “Voting Securities” shall mean any securities of the Company that entitle its holder to vote generally in the election of members of the Company’s Board of Directors.

 

2.             Indemnification.

 

2.1.         Indemnification of Expenses and Awards.  Subject to the provisions of Clause 2.2 below, the Company shall Indemnify Indemnitee for Expenses and Awards to the fullest extent permitted by applicable law if Indemnitee was, is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, any Claim (by reason of or arising in part out of a Covered Event), including all interest, assessments and other charges incurred in connection with or in respect of such Expenses or Awards.

 

2.2.         Review of Indemnification Obligations.

 

2.2.1.      Notwithstanding the foregoing, to the extent any Reviewing Party shall have determined (in a written opinion, in any case in which Independent Legal Counsel is the Reviewing Party) that Indemnitee is not entitled to be Indemnified, (A) the Company shall have no further obligation under Clause 2.1 above to Indemnify Indemnitee, and (B) the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all Expenses and Awards paid

 

 

prior to such determination (which reimbursement shall be made within thirty (30) days after such determination); provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings in a court having jurisdiction under this Deed to secure a determination that Indemnitee is entitled to be Indemnified, any determination made by any Reviewing Party that Indemnitee is not entitled to be Indemnified shall not be binding and Indemnitee shall not be required to reimburse the Company for any Expenses or Awards theretofore paid in Indemnifying Indemnitee until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed).

 

2.2.2.      Subject to Clause 2.2.3 below, if the Reviewing Party shall not have made a determination within forty-five (45) days after receipt by the Company of the request therefor, the requisite determination of entitlement of Indemnitee to be Indemnified shall, to the fullest extent permitted by applicable law, be deemed to have been made and Indemnitee shall be entitled to be Indemnified, absent (A) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request to be Indemnified or (B) a prohibition under applicable law against Indemnitee being Indemnified under this Deed; provided, however, that such 45-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to be Indemnified in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto.

 

2.2.3.      Notwithstanding anything in this Deed to the contrary, no determination as to entitlement of Indemnitee to be Indemnified under this Deed shall be required to be made prior to the final disposition of the Claim.

 

2.3.         Indemnitee Rights on Unfavorable Determination; Binding Effect.  If any Reviewing Party determines that Indemnitee is not entitled to be Indemnified in whole or in part, Indemnitee shall have the right to commence legal proceedings in a court having jurisdiction under this Deed in order to seek a judicial determination by such court or challenging any such determination by such Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and, subject to the provisions of Clause 16 hereof, the Company hereby consents to service of process and to appear in any such proceedings.  Such review shall be de novo and Indemnitee shall not be prejudiced by any prior determination by any Reviewing Party that Indemnitee is not entitled to be Indemnified.  Absent such proceedings, any determination by any Reviewing Party shall be conclusive and binding on the Company and Indemnitee.

 

2.4.         Selection of Reviewing Party; Change in Control.  If there has not been a Change in Control, any Reviewing Party shall be selected by the Company’s Board of Directors, which may be the Company’s Board of Directors in the absence of the selection of another Reviewing Party.  If there has been a Change in Control (other than a Change in Control which has been approved by a majority of the Continuing Directors), any Reviewing Party with respect to all matters thereafter arising concerning Indemnitee’s rights to be Indemnified under this Deed, if desired by Indemnitee, shall be Independent Legal Counsel selected by Indemnitee and approved by Company (which approval shall not be unreasonably withheld).  Such counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent Indemnitee would be entitled to be Indemnified and the Company agrees to abide by such opinion.  The Company agrees to pay the reasonable fees of the Independent Legal Counsel referred to above and to fully indemnify such counsel against any and all expenses (including

 

 

attorneys’ fees), claims, liabilities and damages arising out of or relating to this Deed or its engagement pursuant hereto.  Notwithstanding any other provision of this Deed, the Company shall not be required to pay Expenses of more than one Independent Legal Counsel in connection with all matters concerning Indemnitee, and such Independent Legal Counsel shall be the Independent Legal Counsel for any or all other indemnitees who are parties to indemnification agreements with the Company or Nabriva Therapeutics AG that are similar to this Deed unless (i) the Company otherwise determines or (ii) Indemnitee or any such other indemnitee provides a written statement setting forth in detail a reasonable objection to such Independent Legal Counsel representing Indemnitee and such other indemnitees.

 

2.5.         Mandatory Payment of Expenses and Awards.  If Indemnitee is not wholly successful in such Claim but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Claim, the Company shall Indemnify Indemnitee against all Expenses and Awards actually and reasonably incurred by Indemnitee or on his behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by applicable law.

 

2.6.         Contribution.  Notwithstanding anything to the contrary contained herein, if the rights to be Indemnified provided for in this Deed are for any reason held by a court having jurisdiction to be unavailable to an Indemnitee (other than, for the avoidance of doubt, as a result of the application of any exclusions explicitly contemplated hereby), then in lieu of Indemnifying Indemnitee, the Company shall contribute, to the fullest extent permitted by applicable law, to the amount paid or required to be paid by Indemnitee as a result of such Expenses or Awards (i) in such proportion as is deemed fair and reasonable in light of all of the circumstances in order to reflect the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Claim or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company (and its directors, officers, company secretaries, employees, agents and fiduciaries other than Indemnitee), on the one hand, and Indemnitee, on the other hand, in connection with the action or inaction which resulted in such Expenses, as well as any other relevant equitable considerations.

 

The Company and Indemnitee agree, to the fullest extent permitted by applicable law, that it would not be just and equitable if contribution pursuant to this Clause 2.6 were determined by pro rata or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph.

 

3.             Expense Advances.

 

3.1.         Obligations to Make and Repay Expense Advances.  The Company shall make Expense Advances to or on behalf of Indemnitee, to the fullest extent permitted by law, and the Indemnitee hereby irrevocably and unconditionally undertakes and agrees to repay such amounts to the extent a final judicial determination is made (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee is not entitled to be Indemnified under this Deed or Otherwise.  The right to Expense Advances under this Clause 3 shall in all events continue until final disposition of any Claim (as to which all rights of appeal therefrom have been exhausted or lapsed).  Expense Advances shall be made without regard to Indemnitee’s ability to repay and shall include any and all reasonable Expenses incurred pursuing a Claim to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. Without limiting the generality or effect of the foregoing, within ten (10) business days after any request by Indemnitee, the Company shall, in accordance with

 

 

such request (but without duplication), (i) pay such Expenses on behalf of Indemnitee, (ii) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (iii) reimburse Indemnitee for such Expenses.

 

3.2.         Undertaking Unsecured; No Interest.  The foregoing obligation by Indemnitee to repay any Expense Advances shall be unsecured and no interest shall be charged thereon.  Expense Advances are intended to be an obligation of the Company to Indemnitee hereunder and shall in no event be deemed to be a personal loan.

 

4.             Procedures for Indemnification and Expense Advances.

 

4.1.         Timing of Payments.  All payments of Expenses (including Expense Advances) and Awards by the Company to or on behalf of Indemnitee pursuant to this Deed shall be made to the fullest extent permitted by applicable law as soon as practicable after written demand by Indemnitee therefor is presented to the Company, but in no event later than thirty (30) days after such written demand by Indemnitee is presented to the Company, except in the case of Expense Advances, which shall be made no later than ten (10) business days after such written demand by Indemnitee is presented to the Company.  If the Company disputes a portion of the amounts for which payment is requested, the undisputed portion shall be paid and only the disputed portion withheld pending resolution of any such dispute.

 

4.2.         Notice/Cooperation by Indemnitee.  Indemnitee shall give the Company notice in writing as soon as practicable of any Claim made against Indemnitee for which rights to be Indemnified will be reasonably likely to be sought under this Deed.  Notice to the Company shall be directed to the company secretary of the Company at the Company’s registered office (or such other address as the Company shall designate in writing to Indemnitee) and shall include a description of the nature of the Claim and the facts underlying the Claim, in each case to the extent known to Indemnitee.  Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to be Indemnified following the final disposition of such Claim.  In addition, Indemnitee shall give the Company such information and cooperation as the Company may reasonably require and as shall be within Indemnitee’s power.  The failure by Indemnitee to so notify the Company of any Claim pursuant to this Clause 4.2 will not relieve the Company from any liability which it may have to Indemnitee under this Deed, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Deed, except to the extent (solely with respect to indemnification under this Deed) that such failure or delay materially prejudices the Company in its defense of such Claim.

 

4.3.         No Presumptions; Burden of Proof.  For purposes of this Deed, to the fullest extent permitted by applicable law, the termination of any Claim by judgement, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that the right to be Indemnified is not permitted.  In addition, neither the failure of any Reviewing Party to have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual determination by any Reviewing Party that Indemnitee has not met such standard of conduct or did not have such belief, prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be Indemnified, shall be a defence to Indemnitee’s claim or create a presumption that Indemnitee has not met any particular standard of conduct or did not have any particular belief.  In connection with any determination by

 

 

any Reviewing Party or otherwise as to whether Indemnitee is entitled to be Indemnified, the burden of proof shall be on the Company, by clear and convincing evidence, to establish that Indemnitee is not so entitled.  It shall be a defense to any legal proceeding by Indemnitee to secure a judicial determination that Indemnitee should be Indemnified (other than a Claim brought by Indemnitee to secure Expense Advances under Clause 3 of this Deed) that the indemnification sought by Indemnitee in such legal proceeding is not available under applicable law, but the burden of proof shall be on the Company, by clear and convincing evidence, to establish such defense.

 

4.4.         Notice to Insurers.  If, at the time of the receipt by the Company of a notice of a Claim pursuant to Clause 4.2 hereof, the Company has insurance in effect which may cover such Claim, the Company shall give prompt notice of the commencement of such Claim to the insurers in accordance with the procedures set forth in the respective insurance policies.  The Company shall thereafter take all reasonably necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Claim in accordance with the terms of such policies.

 

4.5.         Selection of Counsel.  In the event the Company shall be obligated under this Deed to Indemnify Indemnitee with respect to the Expenses or Awards arising in connection with, or with respect to, any Claim, the Company, if appropriate, shall be entitled to assume the defence of such Claim with counsel approved by Indemnitee (which approval shall not be unreasonably withheld) upon the delivery to Indemnitee of written notice of the Company’s election to do so.  After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Deed for any fees or expenses of separate counsel subsequently employed by or on behalf of Indemnitee with respect to the same Claim; provided, however, that (i) Indemnitee shall have the right to employ Indemnitee’s separate counsel in any such Claim at Indemnitee’s expense and (ii) if (A) the employment of separate counsel by Indemnitee has been previously authorized by the Company, (B) counsel to the Company or counsel to Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defence or (C) the Company shall not continue to retain such counsel to defend such Claim, then the fees and expenses of Indemnitee’s separate counsel shall be Expenses for which Indemnitee shall be Indemnified.  The Company shall have the right to conduct such defence as it sees fit in its sole discretion, including the right to settle any claim, action or proceeding against Indemnitee without the consent of Indemnitee, provided that the terms of such settlement include either: (i) a full release of Indemnitee by the claimant from all liabilities or potential liabilities under such claim or (ii), in the event such full release is not obtained, the terms of such settlement do not impose any penalty or limitation on Indemnitee without Indemnitee’s written consent, which may be given or withheld in Indemnitee’s sole discretion, and do not limit any rights to be Indemnified that Indemnitee may now, or hereafter, be entitled to under this Deed or Otherwise.  The Company shall not be entitled to assume the defense of any Claims brought by or in the right of the Company, of any criminal Claim against the Indemnitee or if counsel to the Company or any Claim with respect to which counsel to Indemnitee shall have reasonably made the conclusion set forth in Clause (ii)(B) above.

 

5.             Additional Indemnification Rights; Nonexclusivity.

 

5.1.         Scope.  The Company hereby agrees to Indemnify Indemnitee to the fullest extent permitted by applicable law, notwithstanding that such right to be Indemnified is not specifically authorized by this Deed or Otherwise. Indemnitee’s right to be so Indemnified shall be interpreted independently of, and without reference to, any other such rights to which Indemnitee may at any time be

 

 

entitled. In the event of any change after the date of this Deed in any applicable law which expands the ability of the Company to Indemnify Indemnitee, it is the intent of the parties hereto that Indemnitee shall enjoy by this Deed the greater benefits afforded by such change.  In the event of any change in any applicable law which narrows the right of the Company to Indemnify Indemnitee, to the extent not otherwise required by such law to be applied to this Deed, such narrowing change shall have no effect on this Deed or the parties’ rights and obligations under this Deed except as set forth in Clause 10.1 hereof.

 

5.2.         Nonexclusivity.  Indemnitee’s rights to be Indemnified under this Deed shall, to the fullest extent permitted by applicable law, be in addition to any similar Indemnity rights to which Indemnitee may be entitled Otherwise.  The rights to be so Indemnified shall continue as to Indemnitee for any action taken or not taken while serving as a director, officer, company secretary or fiduciary of the Company or while serving any other enterprise at the request of the Company even though subsequent thereto Indemnitee may have ceased to serve in such capacity.

 

6.             No Duplication or Off-Set of Payments.  The Company shall not be liable under this Deed to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy, provision of the Company’s memorandum and articles of association (or any similar governing document of the Company or any other enterprise served by the Indemnitee at the request of the Company), the Companies Act, (or other applicable law), or otherwise (including any indemnification agreement with any affiliate of the Company)) of the amounts otherwise payable under this Deed, except as provided in Clause 19 below.  Notwithstanding any other provision of this Deed to the contrary, (i) Indemnitee shall have no obligation to reduce, offset, allocate, pursue or apportion any indemnification, hold harmless, exoneration, advancement, contribution or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company’s satisfaction and performance of all its obligations under this Deed, and (ii) the Company shall perform fully its obligations under this Deed without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, hold harmless, exoneration, advancement, contribution or insurance coverage rights against any person or entity other than the Company.

 

7.             Partial Indemnification.  If Indemnitee is entitled under any provision of this Deed to be Indemnified by the Company for some or a portion of Expenses or Awards incurred in connection with, or with respect to, any Claim, but not, however, for the total amount thereof, the Company shall, to the fullest extent permitted by applicable law, nevertheless Indemnify Indemnitee for the portion of such Expenses or Awards to which Indemnitee is entitled.

 

8.             Warranty.  The Company warrants by its execution hereof that it has power to enter into and has duly authorised the execution and delivery of this Deed and that its obligations hereunder constitute legal, valid and binding obligations enforceable against the Company in accordance with its terms.

 

9.             Liability Insurance.  In the event of a Change in Control, the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance (directors’ and officers’ liability, fiduciary, employment practices or otherwise) in respect of the individual directors, company secretaries and officers of the Company, for a fixed period of six years thereafter (a “Tail Policy”). Such coverage shall be placed by the Company’s incumbent insurance broker with the incumbent insurance carriers using the policies that were in place at the time of the Change in Control (unless the incumbent carriers will not offer such policies, in which case the Tail Policy placed by the Company’s insurance broker shall be substantially comparable in scope and amount as the expiring policies, and the insurance carriers for the Tail Policy shall

 

 

have an AM Best rating that is the same or better than the AM Best ratings of the expiring policies).

 

10.          Exceptions.  Notwithstanding any other provision of this Deed, the Company shall not be obligated pursuant to the terms of this Deed:

 

10.1.       Excluded Action or Omissions.  To Indemnify Indemnitee for Expenses resulting from acts, omissions or transactions for which Indemnitee is prohibited by applicable law from being Indemnified, as determined by a court of competent jurisdiction in a final judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed); provided, however, that notwithstanding any limitation set forth in this Clause 10.1 regarding the Company’s obligation to Indemnify Indemnitee, Indemnitee shall be entitled under Clause 3 hereof to receive Expense Advances with respect to any such Claim unless and until a court having jurisdiction over the underlying Claim shall have made a final judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee has engaged in acts, omissions or transactions for which Indemnitee is prohibited by applicable law from being Indemnified.

 

10.2.       Claims Initiated by Indemnitee.  To Indemnify Indemnitee with respect to Claims initiated or brought voluntarily by Indemnitee and not by way of defence, counterclaim or cross-claim, except (i) with respect to actions or proceedings brought to establish or enforce a right to be Indemnified under this Deed or Otherwise, (ii) if the Company’s Board of Directors has approved the initiation or bringing of such Claim or (iii) as otherwise required under the Companies Act (or other applicable law), regardless of whether Indemnitee ultimately is determined to be entitled to be Indemnified under this Deed or Otherwise.

 

10.3.       Lack of Good Faith.  To Indemnify Indemnitee with respect to any action instituted (i) by Indemnitee to enforce or interpret this Deed, if a court having jurisdiction over such action makes a final judicial determination as provided in Clause 13 hereof that each of the material assertions made by Indemnitee as a basis for such action was made in bad faith or was frivolous or (ii) by or in the name of the Company to enforce or interpret this Deed, if a court having jurisdiction over the underlying Claim makes a final judicial determination as provided in Clause 13 hereof that each of the material defences asserted by Indemnitee in such action was made in bad faith or was frivolous.

 

10.4.       Claims Under Section 16(b) of Exchange Act or Sarbanes-Oxley Act.  To Indemnify Indemnitee for (i) Expenses, Awards or the disgorgement of profits arising from a violation of Section 16(b) of the Exchange Act or any similar successor statute or (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act, or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); provided, however, that notwithstanding any limitation set forth in this Clause 10.4 regarding the Company’s obligation to Indemnify Indemnitee, Indemnitee shall be entitled under Clause 3 hereof to receive Expense Advances under this Deed with respect to any such Claim unless and until a court having jurisdiction over the underlying Claim makes a final judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee has violated said statute.

 

 

10.5.                     Additional Limitation.  To Indemnify Indemnitee with respect to any obligation of Indemnitee based upon or attributable to Indemnitee gaining in fact any personal gain, profit or advantage to which Indemnitee was not entitled.

 

11.                               Counterparts.  This Deed may be executed in counterparts and by facsimile or electronic transmission, each of which shall constitute an original and all of which, together, shall constitute one instrument.

 

12.                               Binding Effect; Successors and Assigns.  This Deed shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, or otherwise to all or substantially all of the business and/or assets of the Company), spouses, heirs, and personal and legal representatives.  The Company shall require and cause any successor (whether direct or indirect by purchase, merger, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Deed and to indemnify Indemnitee to the fullest extent permitted by applicable law.  This Deed shall continue in effect regardless of whether Indemnitee continues to serve as a director, officer, company secretary or fiduciary of the Company or as a director, officer, company secretary, employee, agent or fiduciary of any other enterprise at the Company’s request.

 

13.                               Expenses Incurred in Action Relating to Enforcement or Interpretation.  In the event that any action is instituted by Indemnitee under this Deed or Otherwise to enforce or interpret any of the terms hereof or thereof, Indemnitee shall be entitled to be Indemnified for all Expenses incurred by Indemnitee with respect to such action (including attorneys’ fees), regardless of whether Indemnitee is ultimately successful in such action, unless as a part of such action a court having jurisdiction over such action makes a final judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that each of the material assertions made by Indemnitee as a basis for such action was not made in good faith or was frivolous; provided, however, that until such final judicial determination is made, Indemnitee shall be entitled under Clause 3 hereof to receive payment of Expense Advances with respect to such action.  In the event of an action instituted by or in the name of the Company under this Deed to enforce or interpret any of the terms of this Deed, Indemnitee shall be entitled to be Indemnified for all Expenses incurred by Indemnitee in defence of such action (including costs and expenses incurred with respect to Indemnitee’s counterclaims and cross-claims made in such action) unless as a part of such action a court having jurisdiction over such action makes a final judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that each of the material defences asserted by Indemnitee in such action was made in bad faith or was frivolous; provided, however, that until such final judicial determination is made, Indemnitee shall be entitled under Clause 3 to receive payment of Expense Advances with respect to such action.

 

14.                               Monetary Damages Insufficient.  The Company and Indemnitee agree that a monetary remedy for breach of this Deed may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm.  Accordingly, the parties hereto agree that Indemnitee may enforce this Deed by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm (having agreed that actual and irreparable harm will result if the Company is not forced to specifically perform its obligations pursuant to this Deed) and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled.  The Company and Indemnitee further agree that Indemnitee

 

 

shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith.  The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company nonetheless hereby waives any such requirement of a bond or undertaking.

 

15.                               Notices.  All notices, requests, demands and other communications under this Deed shall be in writing and shall be deemed duly given (i) if delivered by hand and signed for by the party addressed, on the date of such delivery or (ii) if mailed by domestic certified or registered mail with postage prepaid, on the third business day after the date postmarked.  Addresses for notice to each party are, (i) in respect of the Company its registered office, and (ii) in respect of the Indemnitee as shown on the signature page of this Deed, or in each case as subsequently modified by written notice.

 

16.                               Consent to Jurisdiction.  The Company and Indemnitee each hereby irrevocably consent to the exclusive jurisdiction of the courts of Ireland for all purposes in connection with any action or proceeding which arises out of or relates to this Deed and agree that any action or proceeding instituted under this Deed shall be commenced, prosecuted and continued only in Dublin, Ireland, which shall be the exclusive and only proper forum for adjudicating any matter which arises out of or relates to this Deed.

 

17.                               Severability.  The provisions of this Deed shall be severable in the event that any of the provisions hereof (including any provision within a single section, paragraph or sentence) are held by a court having jurisdiction to be invalid, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by applicable law.  Furthermore, to the fullest extent possible, (i) the provisions of this Deed (including each portion of this Deed containing any provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable, and (ii) to the extent any provision of this Deed is held to be invalid, illegal or unenforceable, such provision shall not be stricken, but shall instead be construed so as to give maximum effect to the intent manifested by the provision held to be invalid, illegal or unenforceable.

 

18.                               Choice of Law.  This Deed, and all rights, remedies, liabilities, powers and duties of the parties to this Deed, shall be governed by and construed in accordance with the laws of Ireland.

 

19.                               Subrogation.  In the event of payment under this Deed, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee from any insurance policy purchased or maintained by the Company, and Indemnitee shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.  In no event, however, shall the Company or any other person have any right of recovery, through subrogation or otherwise, against (i) Indemnitee or (ii) any insurance policy purchased or maintained by Indemnitee.

 

20.                               Amendment and Termination.  No amendment, modification, termination or cancellation of this Deed shall be effective unless it is in writing signed by both the parties hereto.  No waiver of any of the provisions of this Deed shall be effective unless it is signed in writing by the party against whom such waiver is sought to be enforced, nor shall any such waiver be deemed to be or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.

 

 

21.                               Integration and Entire Agreement.  This Deed sets forth the entire understanding between the parties hereto and supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto, including any prior indemnification agreement; provided, however, that this Deed is a supplement to and in furtherance of the Company’s memorandum and articles of association (and any similar governing document), any agreement (including any insurance policy), any vote of the Company’s shareholders or resolution of the Company’s Board of Directors, and the Companies Act and other applicable law, in each case as may be now or hereafter in effect, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

22.                               No Construction as Employment Agreement.  Nothing contained in this Deed shall be construed as giving Indemnitee any right to employment by the Company or to continue serving in any capacity with the Company, any of its affiliates or any other enterprise.

 

23.                               Additional Acts.  If for the validation of any of the provisions in this Deed any act, resolution, approval or other procedure is required, the Company undertakes to cause such act, resolution, approval or other procedure to be affected or adopted in a manner that will enable the Company to fulfill its obligations under this Deed.

 

24.                               Companies Act.  The Company’s obligations under this Deed remain subject at all times to the provisions of Section 235 of the Companies Act.

 

(The remainder of this page is intentionally left blank.)

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Deed of Indemnification as a Deed and as of the date first above written.

 

 

GIVEN UNDER THE COMMON SEAL

of NABRIVA THERAPEUTICS PLC

in the presence of:

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Director / Company Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED AND DELIVERED AS A DEED BY
    	
 
    	
 
    
	
[INSERT NAME OF DIRECTOR/OFFICER]
    	
 
    	
 
    
	
in the presence of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Name of Director/Officer]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness signature
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness addressExhibit 10.2

 

Nabriva Therapeutics AG

 

Stock Option Plan 2007

 

	
I.
    	
Introduction
    	
2
    
	
 
    	
 
    	
 
    
	
II.
    	
Structure of the Stock   Option Plan
    	
2
    
	
 
    	
 
    	
 
    
	
A.
    	
Options
    	
2
    
	
 
    	
 
    	
 
    
	
1.
    	
Vesting
    	
3
    
	
 
    	
 
    	
 
    
	
2.
    	
Exercise   Price
    	
4
    
	
 
    	
 
    	
 
    
	
3.
    	
Exercising   vested options
    	
5
    
	
 
    	
 
    	
 
    
	
4.
    	
Rights   and restrictions attached to vested options
    	
6
    
	
 
    	
 
    	
 
    
	
B.
    	
Termination of   Employment or Board Position
    	
6
    
	
 
    	
 
    	
 
    
	
1.
    	
Good   Leaver Events
    	
6
    
	
 
    	
 
    	
 
    
	
2.
    	
Bad   Leaver Events
    	
7
    
	
 
    	
 
    	
 
    
	
3.
    	
Exercised   options
    	
8
    
	
 
    	
 
    	
 
    
	
4.
    	
Accelerated   Vesting
    	
8
    
	
 
    	
 
    	
 
    
	
C.
    	
Duration, Expiry,   Amendments to and Termination of the Stock Option Plan
    	
8
    
	
 
    	
 
    	
 
    
	
1.
    	
Duration   and Expiry
    	
8
    
	
 
    	
 
    	
 
    
	
2.
    	
Termination
    	
9
    
	
 
    	
 
    	
 
    
	
D.
    	
Future participants
    	
9
    
	
 
    	
 
    	
 
    
	
E.
    	
Risks
    	
9
    
	
 
    	
 
    	
 
    
	
F.
    	
Miscellaneous
    	
10
    
	
 
    	
 
    	
 
    
	
1.
    	
Stock   Adjustments
    	
10
    
	
 
    	
 
    	
 
    
	
2.
    	
No   business practice (“Betriebliche Übung”)
    	
11
    
	
 
    	
 
    	
 
    
	
3.
    	
Taxes,   duties and social contributions
    	
11
    
	
 
    	
 
    	
 
    
	
4.
    	
Notices
    	
12
    
	
 
    	
 
    	
 
    
	
5.
    	
Saving   provisions
    	
12
    
	
 
    	
 
    	
 
    
	
6.
    	
English   Version
    	
12
    
	
 
    	
 
    	
 
    
	
7.
    	
Governing   law and jurisdiction
    	
12
    

 

 

I. INTRODUCTION

 

On 12 September 2007 the Managing Board and the Supervisory Board of Nabriva Therapeutics Forschungs AG (“Nabriva” or the “Company”) resolved to implement a stock option plan for all employees ( for the avoidance of doubt including members of the Managing Board) being employed with the Company for an indefinite period of time at 28 September 2007 and selected members of the Supervisory Board of the Company and further participants (the “Beneficiaries”, see below Annex ./2) subject to the provisions as set forth herein (the “Stock Option Plan” or “SOP”).

 

When the conditions of the Stock Option Plan are met, options will be granted to the Beneficiaries. These options will grant the Beneficiaries the right to acquire Shares in Nabriva or otherwise settle the options under the conditions set forth herein. Nabriva believes that this Stock Option Plan enhances the commitment of the Beneficiaries to contribute to Nabriva’s success by allowing them to participate in the increase in the value of the Company.

 

The potential Beneficiaries have been personally informed about the Stock Option Plan. The provisions set forth herein regulate the Stock Option Plan in its entirety. If any of the information communicated to the potential participants of the SOP diverges from this SOP, the provisions of this SOP shall prevail.

 

Options pursuant to this SOP are neither granted as remuneration nor as bonus in exchange for the performance of Beneficiaries during a specific period. Rather, the participation in this SOP and the vesting of options pursuant to this SOP constitute a voluntary benefit of the Company. Following the nature of voluntary benefits these are solely granted to foster the motivation and solidarity of all Beneficiaries.

 

II. STRUCTURE OF THE STOCK OPTION PLAN

 

A.                        Options 

 

The aggregate and overall number of options eligible to be granted and vested to all Beneficiaries under the Stock Option Plan shall not exceed 29,889 (the “Overall Number of Options”). The number of options eligible to be granted per Beneficiary is set out in Annex ./2 hereto. Notwithstanding the date and duration of their participation herein and without prejudice to the provisions of this Stock Option Plan, Beneficiaries shall not be entitled to (further) options under this Stock Option Plan once the Overall Number of Options are granted.

 

2

 

1.                          Vesting 

 

The period in which granted options are vested in accordance with the SOP (“Vesting Period”) shall be four years. The Vesting Period shall commence on the date of participation of the Beneficiaries in this SOP (“Date of Participation”) as set out in Annex ./3 hereto, but in any event not before 28 September 2007. The total number of granted options eligible to be vested per Beneficiary is set out in Annex ./2 hereto.

 

(i)                                Year 1 

 

On the last day of the last calendar month of the first year of the Vesting Period following the Date of Participation, 25 % of the options eligible to be vested per Beneficiary shall be vested automatically with that Beneficiary.

 

(ii)                             Year 2 

 

On the last day of the last calendar month of the second year of the Vesting Period following the Date of Participation, 25 % of the options eligible to be vested per Beneficiary shall be vested automatically with that Beneficiary.

 

(iii)                          Year 3 and Year 4 

 

During the third and fourth year of the Vesting Period following the Date of Participation, the remaining 50 % of the options eligible to be vested per Beneficiary shall be vested with that Beneficiary on a monthly pro rata basis (i.e. 2.083 % per month). Options eligible to be vested for any given month in years three and four of the Vesting Period will be vested automatically on the last day of each calendar month.

 

Notwithstanding the above, regarding all Beneficiaries that have worked for the Company prior to their Date of Participation in the SOP, (i) 25 % of the options eligible to be vested per Beneficiary shall be vested automatically on the last day of the month marking the (first) anniversary of their employment with the Company following their Date of Participation and (ii) 25 % of the options eligible to be vested per Beneficiary shall be vested automatically on the last day of the month marking the following next anniversary of their employment with the Company. The remaining 50 % of the options shall be vested with that Beneficiary on a monthly pro rata basis (i.e. 2.083 % per month) as set forth in (iii) above.

 

3

 

Certain Beneficiaries that have worked for the Company for a minimum period of at least one year prior to their Date of Participation in the SOP (the “Qualified Beneficiaries”) shall be vested 25 % of the options eligible to be vested per Beneficiary under the SOP as set forth in Annex ./2 and ./3 immediately on the Date of Participation of the Qualified Beneficiaries. 25 % of the options eligible to be vested shall be vested on the last day of the month marking the anniversary of their employment with the Company following their Date of Participation, whereas anniversary of their employment with the Company always means February 1 if the Qualified Beneficiary started working for the Company before 1 February 2006. The remaining 50 % of the options shall be vested with that Beneficiary on a monthly pro rata basis (i.e. 2.083 % per month) as set forth in (iii) above.

 

The Company believes this will further enhance the Qualified Beneficiaries’ motivation and solidarity with Nabriva.

 

Options shall be vested to Beneficiaries taking maternity leave (“Maternity Leave Employees”) in accordance with this Clause II.A.1, provided that (i) options shall not be vested during the time the Maternity Leave Employee is on maternity leave and (ii) options shall only be vested when the Maternity Leave Employee has worked for Nabriva for a continuous period (such period calculated from the first day the Maternity Leave Employee resumes work after maternity leave) of at least (x) 12 months or (y) 1 month if the Maternity Leave Employee is participating in the third or fourth year of the Vesting Period pursuant to item (iii) in this Clause.

 

For the avoidance of doubt, options vested prior to the Maternity Leave Employee having taken maternity leave shall not be forfeited.

 

2.                          Exercise Price 

 

The exercise price shall be determined by an Austrian Independent Certified Public Accountant (Wirtschaftsprüfer) appointed by the Company (“Expert Evaluator”) based on the fair market value of the Shares initially as of 31 July 2007, and thereafter as of 31 December of each financial year of the Company (“Exercise Price Date”) pursuant to the Gross Procedure of the Discounted Cash Flow Method based on the rules and guidelines of the Chamber of Public Accountants on the Company value (KFS BW1 - Fachgutachten des Fachsenats für Betriebswirtschaft und  Organisation des Instituts für Betriebswirtschaft, Steuerrecht und Organisation der Kammer der Wirtschaftstreuhänder über die Unternehmensbewertung) (“Exercise Price”).

 

4

 

Subject to the provisions set forth herein, each vested option entitles a Beneficiary to acquire one Share at the Exercise Price. The Exercise Price so determined for the most recent Exercise Price Date prior to the participation of the employee shall apply to all vested options exercised by a Beneficiary under this SOP.

 

The Company shall pay for any costs arising in connection with the determination of the Exercise Price.

 

3.                          Exercising vested options 

 

The exercise of a vested option is only permissible in case of a Liquidation Event or a Qualified Public Offering. The Beneficiaries are entitled to exercise the vested options from 28 September 2007 until 27 September 2017 (“Exercise Period”). Save for the case of a Liquidation Event the Beneficiaries are entitled to exercise vested options exclusively within a period commencing the day after the Company’s annual general meeting and ending six weeks after that day.

 

In order to exercise a vested option, the Beneficiary must notify the Company by submitting an exercise notice to the Company in the form of Annex ./4 (“Exercise Notice”) one week prior to the date he wishes to exercise the option as specified in the Exercise Notice.

 

In case of a Qualified Public Offering, the transfer of the shares to the Beneficiaries due to the exercise of options under this SOP is effected only upon completion of the Qualified Public Offering.

 

In case of a Liquidation Event, the Beneficiaries will — following their exercise of options — only receive a portion of the remainder, if any, of the proceeds from such Liquidation Event after satisfaction of the holders of certain preferred shares pursuant to liquidation preference agreements as in force at the date of exercise of options, whereas the Beneficiaries will participate in such remainder, if any, pro rata corresponding to their shareholding in the Company (in case Shares would have been transferred to the Beneficiaries); whereas the Company in case of a distributable remainder in its sole discretion may opt to provide the Beneficiaries with Shares in the Company rather than with cash amounts. A Beneficiary’s obligation to deposit the Exercise Price shall be subject to notification by the Company that a distributable remainder exists.

 

5

 

4.                          Rights and restrictions attached to vested options 

 

The Beneficiaries shall not be entitled to transfer vested options, except to individuals by way of inheritance or bequest. For the avoidance of doubt, Beneficiaries shall also not be entitled to transfer vested options by virtue of bilateral legal transactions causa mortis with or without consideration.

 

The Beneficiaries shall not be entitled to grant rights to, encumber or dispose of vested options in any other manner (in particular pledge, transfer by way of security or derivative transactions having the same commercial effect).

 

Options do not entitle the Beneficiary to exercise any shareholder rights. The Beneficiary may only exercise shareholder rights if and to the extent it holds Shares.

 

In the event of a Bankruptcy of a Beneficiary, the options not yet exercised by such Beneficiary shall automatically be forfeited.

 

Any options not exercised by the end of the Exercise Period shall automatically and finally lapse and be forfeited.

 

B.                        Termination of Employment or Board Position 

 

In case employment or board position of a Beneficiary is terminated, the following shall apply:

 

1.                          Good Leaver Events 

 

If a Beneficiary’s service or employment relationship ends during the term of the SOP due to (and each of the following a “Good Leaver Event”)

 

	
 
    	
(i)
    	
retirement due to age   or permanent disability (Ausscheiden   aufgrund Alters oder dauernder Arbeitsunfähigkeit); 
    
	
 
    	
 
    	
 
    
	
 
    	
(ii)
    	
death; 
    
	
 
    	
 
    	
 
    
	
 
    	
(iii)
    	
ordinary termination by   maintaining the contractual or statutory periods and deadlines (ordentliche Kündigung) by the Company or   the Beneficiary; 
    
	
 
    	
 
    	
 
    

 

6

 

	
 
    	
(iv)
    	
justified premature   resignation with immediate effect (berechtigter   vorzeitiger Austritt); 
    
	
 
    	
 
    	
 
    
	
 
    	
(v)
    	
unjustified discharge   with immediate effect (ungerechtfertigte   Entlassung); 
    
	
 
    	
 
    	
 
    
	
 
    	
(vi)
    	
mutual termination (einvernehmliche Auflösung); 
    
	
 
    	
 
    	
 
    
	
 
    	
(vii)
    	
expiry of a Managing   Board or Supervisory Board mandate (Nichtverlängerung   eines Mandats); 
    
	
 
    	
 
    	
 
    
	
 
    	
(viii)
    	
premature revocation of   a Managing Board or Supervisory Board mandate without good cause (Abberufung ohne wichtigen Grund); or 
    
	
 
    	
 
    	
 
    
	
 
    	
(ix)
    	
resignation of a member   of the Managing Board or Supervisor Board with good cause (Rücktritt aus wichtigem Grund); 
    

 

all rights and entitlements under the SOP to the options which have not been vested upon the occurrence of a Good Leaver Event shall be automatically forfeited. Options eligible to be vested to a Beneficiary in a fiscal year which are not actually vested in respect of such Beneficiary in that fiscal year shall not be available to that Beneficiary at any other time.

 

Beneficiaries with options vested but not exercised at the time of a Good Leaver Event shall retain such options and be entitled to exercise such options according to the provisions set forth herein.

 

2.                          Bad Leaver Events 

 

If a Beneficiary’s service or employment relationship with the Company ends during the term of the SOP due to an event other than a Good Leaver Event (a “Bad Leaver Event”), all options of the Beneficiary vested but not exercised at the time a Bad Leaver Event occurs shall forfeit. The revocation of a member of the Managing Board pursuant to a vote of non confidence by the General Assembly shall not constitute a Bad Leaver Event as long as no reason for justified dismissal is set by the Beneficiary.

 

The Supervisory Board may within its discretion decide whether to grant to a Beneficiary advantages as from a Good Leaver event even though the end of a Beneficiary’s service or employment relationship constitutes a Bad Leaver Event as described in B.2. In case the Beneficiary concerned functions as a member of the Supervisory Board, the shareholders shall decide on the advantages granted to the Beneficiary as set forth above.

 

7

 

3.                          Exercised options 

 

The termination of a service or an employment relationship with the Company shall have no effect on options that were exercised prior to the date of a declaration of termination of employment or board position.

 

4.                          Accelerated Vesting 

 

In case a Liquidation Event occurs, 50% of the remaining options not yet vested with a Beneficiary at this point in time, shall vest with the Beneficiaries with immediate effect.

 

In case of unjustified termination of the Beneficiary by the Company or justified premature termination of employment by the Beneficiary (e.g. due to reduction in compensation, diminution of job responsibilities, permanent relocation of more than 50 kilometers) within one year after such Liquidation Event occurred, all remaining options of a Beneficiary not yet vested at this point in time shall vest with the Beneficiary with immediate effect.

 

The exercise of options vested pursuant to II.B.4 shall be subject to the provisions herein and in particular in II.A.3 except that the exercise period as defined under II.A.3. shall not apply.

 

C.                        Duration, Expiry, Amendments to and Termination of the Stock Option Plan 

 

1.                          Duration and Expiry 

 

The Stock Option Plan shall become effective on 28 September 2007.

 

Beneficiaries shall have the right to exercise vested (but non-exercised) options until 27 September 2017. Thereupon, the Stock Option Plan shall expire and all rights of the Beneficiaries under the Stock Option Plan shall terminate, in particular the right to exercise vested but non-exercised options.

 

8

 

2.                          Termination 

 

The Company may terminate the SOP in relation to a Beneficiary for good cause if that Beneficiary breaches significant statutory or contractual obligations in connection with its service or employment relationship with the Company. Such good cause shall be a reason pursuant to sec 75 Austrian Stock Company Act (Aktiengesetz) for members of the Managing Board and the Supervisory Board of the Company and pursuant to sec 27 Austrian Employees Act (Angestelltengesetz) for employees of the Company whereby the revocation of a member of the Managing Board pursuant to a vote of non confidence by the General Assembly shall not constitute such good cause in the meaning of this paragraph as long as no reason for justified dismissal is set by the Beneficiary. To the extent the members of the Managing Board are affected, the Supervisory Board shall exercise such termination right. To the extent members of the Supervisory Board are affected, the Company’s shareholders shall be competent to resolve upon such termination by simple majority.

 

D.                        Future participants 

 

The Managing Board may at its sole discretion decide on the conditions for the inclusion of future participants other than those listed in Annex ./2 including but not limited to employees of the Company in accordance with the terms of this Stock Option Plan (“Future Participants”). The Supervisory Board shall have such right of decision in relation to Future Participants which are members of the Managing Board. The shareholders shall have such right of decision in relation to Future Participants which are members of the Supervisory Board.

 

E.                        Risks 

 

Neither the Company nor any shareholder of the Company (or any of their officers, employees or consultants)

 

	
 
    	
(i)
    	
assumes any   responsibility or liability for the development of the value of the market   price of the Shares; 
    
	
 
    	
 
    	
 
    
	
 
    	
(ii)
    	
warrant, assure or   guarantee any increase in value of the Shares, in particular it is neither   warranted, assured or guaranteed that a Beneficiary will be able to sell his   participation in the Company with a profit in the future nor that no loss   will be incurred; 
    
	
 
    	
 
    	
 
    
	
 
    	
(iii)
    	
warrant, assure or   guarantee a profit of a Beneficiary from this Stock Option Plan. 
    

 

9

 

Each Beneficiary declares with his participation in the SOP that the participation is voluntary. Each Beneficiary is aware of the fact that he alone bears the risk of a decrease in or total loss of value of his investments. Each Beneficiary accepts the offer to participate in the Stock Option Plan at his own risk and assumes any liability relating thereto.

 

Each Beneficiary is responsible for obtaining legal and tax advice before participating in the SOP and for evaluating the tax effects connected with the Stock Option Plan. Each Beneficiary accepts and declares that he has not been advised by or on behalf of the Company with respect to his participation in the Stock Option Plan (in particular regarding legal and tax issues of the participation).

 

The Company declares to undertake the best efforts for a risk minimal and tax efficient settlement of this SOP.

 

F.                         Miscellaneous 

 

1.                          Stock Adjustments 

 

If, during the term of the SOP, changes to the capital of the Company or restructuring measures have an effect on the capital of the Company, such as a stock split or reverse split of stocks, (together “Stock Adjustments”) which result in a change in the value of the options, the Company is entitled to adjust the price or the amount of the options respectively, to the extent necessary to compensate changes in value (but not a dilution of shareholding) resulting from any Stock Adjustments. For the avoidance of doubt, this Clause shall not apply to measures, such as future financing rounds, in which new shareholders of the Company are introduced.

 

The Supervisory Board decides on an adjustment based on a proposal by the Managing Board. After execution of the Stock Adjustments the total value of the granted options shall equal the total value of the options before execution of such Stock Adjustments. The Company will inform the Beneficiaries about the Stock Adjustment and the effective date of the Stock Adjustment.

 

10

 

2.                          No business practice (“Betriebliche Übung”)

 

The granting of options and the implementation of the SOP is the free and discretionary choice of the Company, constitutes a voluntary benefit and shall not give rise to any legal claim by a Beneficiary for the future, not even in the case of repeated granting.

 

Beneficiaries of the SOP do not have a right for the introduction of another option plan or any vesting of options in addition to those under the Stock Option Plan, even if the Company implements any other option plan or vests further options under any other option plan.

 

Vested options under this Stock Option Plan do not affect the calculation of severance, premiums, royalties, pension plans or any other remuneration of the Beneficiary.

 

3.                          Taxes, duties and social contributions 

 

All taxes, social contributions, further duties and costs accrued by the Beneficiary in connection with its participation in the SOP or due to the distribution of profits shall be borne by each Beneficiary. Each Beneficiary is obliged to pay taxes relating to the respective options granted/exercised under the SOP to the competent tax authorities, also in the course of tax audits or any other procedures. Each Beneficiary shall fully indemnify the Company in respect of all such liabilities and obligations against tax authorities.

 

The employer of the Beneficiary is entitled, if required by statutory law, to withhold wage tax or any other taxes or duties or social contributions to be paid by the Beneficiary. This applies even after termination of the employment of a Beneficiary with the Company, if the vested options granted are non-lapsable but not yet exercisable. The Company is entitled to demand the full cooperation of the Beneficiary even after his leave with respect to the withholding of taxes, social contributions, other duties and costs in connection with this Stock Option Plan. The Beneficiary undertakes to co-operate.

 

Withholdings mentioned above do not release the Beneficiary from his responsibility and obligation to pay all taxes, social contributions, further duties and costs being due and accruing in connection with his participation in the SOP or in connection with the distribution of profits.

 

11

 

4.                          Notices 

 

Notifications to the Company with respect to the terms of the Stock Option Plan shall only be made to:

 

Nabriva Therapeutics AG

Corporate Human Resources

 

	
fax:
    	
+43 1 866 59 785
    
	
email:
    	
ralf.schmid@nabriva.com
    

 

Notifications by the Company of the Beneficiary relating to the SOP shall be made in writing (including email or fax) to each Beneficiary to the respective Beneficiary’s address last disclosed to the Company.

 

5.                          Saving provisions 

 

If any provision of this SOP in full or in part is or becomes invalid, this shall not affect the validity of all other provisions or the valid part of an invalid provision. To the extent legally possible, an agreement shall be made replacing the invalid provision by a provision which best meets the intent of the terms of the SOP. The same applies to loopholes of the terms of the SOP, which may arise in the course of implementation of the terms of the SOP.

 

6.                          English Version 

 

This SOP is concluded in a German and English version. For disputes pursuant to this SOP, the English version shall prevail.

 

7.                          Governing law and jurisdiction 

 

The terms of the SOP, its interpretation and all rights and obligations arising there from shall be governed by Austrian law, except for international private law and the UN Convention on Contracts for the International Sales of Goods. The courts of Vienna, Austria, shall, to the extent legally possible, have exclusive jurisdiction regarding all claims in connection with the SOP and the terms of the SOP.

 

Annex:

 

	
./1
    	
Definitions
    
	
 
    	
 
    
	
./2
    	
List of eligible   options per Beneficiary
    
	
 
    	
 
    
	
./3
    	
Accession Statement
    
	
 
    	
 
    
	
./4
    	
Exercise Notice
    

 

12

 

Annex ./1

 

I. Definitions

 

	
Bad Leaver Event
    	
 
    	
has the meaning ascribed thereto in Clause II.C.2 (“Bad Leaver Events”).
    
	
 
    	
 
    	
 
    
	
Bankruptcy
    	
 
    	
means the initiation of bankruptcy proceedings in   regard to the assets of a Beneficiary, the dismissal of an application for   bankruptcy due to a lack of assets or the initiation of private bankruptcy   proceedings pursuant to secs. 181 et seq. of the Austrian Bankruptcy   Code (“KO”) or any equivalent rule in   any other relevant jurisdiction.
    
	
 
    	
 
    	
 
    
	
Beneficiaries
    	
 
    	
are all employees ( for the avoidance of doubt   including members of the Managing Board) being employed with the Company for   an indefinite period of time at 28 September 2007 and selected   members of the Supervisory Board of the Company and further participants (see   below Annex ./2) subject to the provisions as set forth herein under   this SOP.
    
	
 
    	
 
    	
 
    
	
Company
    	
 
    	
Nabriva Therapeutics AG and its legal successors.
    
	
 
    	
 
    	
 
    
	
Date of Participation
    	
 
    	
means the date of entry of Beneficiaries in this   SOP.
    
	
 
    	
 
    	
 
    
	
Exercise Notice
    	
 
    	
has the meaning ascribed thereto in Clause II.A.3 (“Exercising vested options”).
    
	
 
    	
 
    	
 
    
	
Exercise Period
    	
 
    	
has the meaning ascribed thereto in Clause II.A.3 (“Exercising vested options”).
    
	
 
    	
 
    	
 
    
	
Exercise Price
    	
 
    	
has the meaning ascribed thereto in Clause II.A.2 (“Exercise Price”).
    
	
 
    	
 
    	
 
    
	
Exercise Price Date
    	
 
    	
has the meaning ascribed thereto in Clause II.A.2 (“Exercise Price”).
    
	
 
    	
 
    	
 
    
	
Expert Evaluator
    	
 
    	
has the meaning ascribed thereto in Clause II.A.2 (“Exercise Price”).
    

 

13

 

	
Future Participants:
    	
 
    	
has the meaning ascribed thereto in Clause II.D. (“Future Participants”).
    
	
 
    	
 
    	
 
    
	
Good Leaver Event
    	
 
    	
has the meaning ascribed thereto in Clause II.C.1 (“Good Leaver Events”).
    
	
 
    	
 
    	
 
    
	
Liquidation Event
    	
 
    	
means (i) an exclusive license of or the sale   or other disposal of 50 % or more of the assets of the Company,   (ii) a sale or other disposal (for the avoidance of doubt, the term   disposal shall not include a pledge) of 50 % or more of the shares of   the Company, (iii) a merger of the Company with any third party, or   (iv) a consolidation, liquidation, winding up or any other form of a   dissolution of the Company.
    
	
 
    	
 
    	
 
    
	
Managing Board
    	
 
    	
means the managing board (Vorstand)   of the Company.
    
	
 
    	
 
    	
 
    
	
Maternity Leave Employees
    	
 
    	
has the meaning ascribed thereto in Clause II.A (“Options”).
    
	
 
    	
 
    	
 
    
	
Overall Number of Options
    	
 
    	
has the meaning ascribed thereto in Clause II.A (“Options”).
    
	
 
    	
 
    	
 
    
	
Qualified Beneficiary
    	
 
    	
has the meaning ascribed thereto in Clause II.A (“Options”).
    
	
 
    	
 
    	
 
    
	
Qualified Public Offering
    	
 
    	
means a qualified public offering of the shares of   the Company at a fully diluted pre-money valuation of at least EUR 120   million with gross proceeds to the Company of not less than EUR 40 million.
    
	
 
    	
 
    	
 
    
	
Shares
    	
 
    	
means the common shares of the Company issued from   time to time and each a “Share”.
    
	
 
    	
 
    	
 
    
	
SOP
    	
 
    	
has the meaning ascribed thereto in Clause I (“Introduction”).
    
	
 
    	
 
    	
 
    
	
Stock Option Plan
    	
 
    	
has the meaning ascribed thereto in Clause I (“Introduction”).
    

 

14

 

	
Supervisory Board
    	
 
    	
means the supervisory board (Aufsichtsrat)   of the Company.
    
	
 
    	
 
    	
 
    
	
Vesting Period
    	
 
    	
has the meaning ascribed thereto in Clause II.A.1 (“Vesting”).
    

 

15

 

Annex ./2

 

Eligible Options per Beneficiary

 

Annex:

 

	
./
    	
Option Distribution   Table
    

 

16

 

Annex ./3

 

Form of Accession Statement

 

To:

Ms / Mr [·],

[address]

 

REF: SOP / Accession Statement

 

Dear Ms / Mr [·],

 

You will participate in this SOP with effect as of [·] (Participation Date).

 

As Participant in the SOP you will be vested options to acquire shares in the Company pursuant to this SOP in the amounts as set forth in the Vesting Table attached.

 

Nabriva Therapeutics Forschungs AG:

DATE:

 

PARTICIPANT:

DATE:

 

Annex:

 

	
./
    	
Vesting Table
    

 

17

 

Annex ./4

 

Form of Exercise Notice

 

To: Nabriva Therapeutics Forschungs AG

Corporate Human Resources

 

REF: SOP / Exercise Notice

 

Dear Sirs,

 

I am a participant in the SOP. Capitalized terms not otherwise defined herein shall have the meaning assigned to such term in the SOP. This is an Exercise Notice.

 

I hereby irrevocably declare to exercise [·] vested options granted to me [on ·]

 

	
 
    	
o
    	
When exercising above   number of options, I wish to acquire [·]   Shares as determined in the vesting table attached to my Accession Statement   at the Exercise Price per Share. Such Shares shall be delivered to my   securities account no. [·] with [·]   against (i) signing by me of the subscription declaration required   pursuant to § 165 Austrian Stock Corporation Act and (ii) payment   in cash by me of the Exercise Price for each Share. I acknowledge that my   employer will withhold taxes, duties or social contributions, if any, as   applicable before determining the number of Shares to be delivered. 
    
	
 
    	
 
    	
 
    
	
 
    	
o
    	
Whereas in the case of   a Liquidation Event, (i) I acknowledge that in case of a distributable   remainder the Company — in consideration of the Exercise Price — in its sole   discretion may opt to provide me with Shares in the Company rather than with   the cash amounts attributable to me according to the SOP, (ii) I shall   deposit the Exercise Price only upon notification by the Company that a   distributable remainder exists, (iii) upon such notification, I   shall deposit the Exercise Price within seven (7) business days. 
    

 

I acknowledge that options have not been granted as remuneration or as a bonus for job performance but rather as a voluntary benefit to encourage motivation and solidarity with the Company and that I have no entitlement to any future comparable benefits.

 

NAME:

DATE:

 

18

 

ADDENDUM

 

with regard to the

 

Nabriva Therapeutics AG’s

 

Stock Option Plan

 

dated 12 September 2007

 

 

PREAMBLE

 

WHEREAS, on 12 September 2007 the Managing Board and the Supervisory Board of Nabriva Therapeutics AG (Nabriva or the Company) resolved to implement a stock option plan for all employees being employed by the Company for an indefinite period of time at 28 September 2007 and selected members of the Supervisory Board of the Company and further participants (the Beneficiaries), a copy of which is attached hereto as Schedule 1 (the Stock Option Plan or SOP);

 

WHEREAS, on 17 September 2009 the shareholders of the Company resolved to amend the SOP and thus, the Company is interested in amending the Stock Option Plan according to such shareholders’ resolution through this addendum to the SOP (the Addendum).

 

1.                   INTERPRETATION

 

1.1            Definitions 

 

Unless explicitly stated otherwise herein, all capitalized terms used in this Addendum shall have the meaning assigned to them in the SOP.

 

1.2            Supplemental 

 

Except as explicitly provided herein, the SOP shall remain in full force and effect, and this Addendum and the SOP shall be read and construed as one document.

 

2.                   AMENDMENTS TO THE SOP 

 

Section II. A. 3. of the SOP is replaced so that it reads as follows:

 

“Exercising vested options

 

The exercise of a vested option is only permissible in case of a Liquidation Event or a Qualified Public Offering. The Beneficiaries are entitled to exercise the vested options from 28 September 2007 until 27 September 2017 (the Exercise Period). Save for the case of a Liquidation Event the Beneficiaries are entitled to exercise vested options exclusively within a period commencing the day after the Company’s annual general meeting and ending six weeks after that day.

 

In order to exercise a vested option, the Beneficiary must notify the Company by submitting an exercise notice to the Company in the form of Annex ./4 (Exercise Notice) one week prior to the date he wishes to exercise the option as specified in the Exercise Notice.

 

In case of a Qualified Public Offering, the transfer of the shares to the Beneficiaries due to the exercise of options under this SOP is effected only upon completion of the Qualified Public Offering.

 

In case of a Liquidation Event, the Beneficiaries will — following their exercise of options — only receive a portion of the remainder, if any, of the proceeds from such

 

2

 

Liquidation Event after satisfaction of the holders of certain preferred shares pursuant to liquidation preference agreements as in force at the date of exercise of options, whereas the Beneficiaries will participate in such remainder, if any, pro rata corresponding to their shareholding in the Company (in case Shares would have been transferred to the Beneficiaries); whereas the Company in case of a distributable remainder in its sole discretion may opt to provide the Beneficiaries with Shares in the Company rather than with cash amounts. A Beneficiary’s obligation to deposit the Exercise Price shall be subject to notification by the Company that a distributable remainder exists.

 

Notwithstanding the foregoing, the executives listed in Schedule ./2 hereto of the Company shall be entitled to exercise their respective vested option at any time prior to 31 December 2009 by giving an Exercise Notice regardless of whether a Liquidation Event or a Qualified Public Offering has occurred (the Preferred Vested Option Right). In case such Preferred Vested Option Right is exercised, such executive’s receipt of the Shares shall be subject to the executive’s accession to the Shareholders Agreement, then in force, entered into between the shareholders of the Company, and thus, the executive shall become a Party thereto with all rights and obligations entailed therein. Such Preferred Vested Option Right is granted to the above-mentioned executives only because of their valuable contribution and commitment to the Company and as an additional incentive to further enhance the forthcoming the business thereof.”

 

3

 

Schedule ./2

 

Beneficiaries - Preferred Vested Option Right

 

Dr. Rodger Novak - Leberstrasse 20, A-1110 Wien - geb. 22.06.1967 - Mitglied des Vorstandes

Ralf Schmid - Leberstrasse 20, A-1110 Wien - geb. 12.04.1967 - Mitglied des Vorstandes

Dr. William Prince - Leberstrasse 20, A-1110 Wien - geb. 06.01.1946 - Mitglied des Vorstandes

 

 

SECOND ADDENDUM

 

with regard to the

 

Nabriva Therapeutics AG’s

 

Stock Option Plan

 

dated 12 September 2007

 

 

PREAMBLE

 

WHEREAS, on 12 September 2007 the Managing Board and the Supervisory Board of Nabriva Therapeutics AG (Nabriva or the Company) resolved to implement a stock option plan for all employees being employed by the Company for an indefinite period of time at 28 September 2007 and selected members of the Supervisory Board of the Company and further participants (the Beneficiaries), a copy of which is attached hereto as Schedule 1 (the Stock Option Plan or SOP);

 

WHEREAS, on 17 September 2009 the shareholders of the Company resolved to amend the SOP and thus, the Stock Option Plan was amended through the Addendum to the SOP dated 12 September 2007 regarding the implementation of preferred vested option rights for selected executives, a copy of which is attached hereto as Schedule 2 (the First Addendum).

 

WHEREAS, on 7 May 2010 the shareholders of the Company resolved to further amend the SOP according to the shareholders’ resolution through this second addendum to the SOP (the Second Addendum).

 

1.                   INTERPRETATION

 

1.1            Definitions 

 

Unless explicitly stated otherwise herein, all capitalized terms used in this Second Addendum shall have the meaning assigned to them in the SOP.

 

1.2            Supplemental 

 

Except as explicitly provided herein, the SOP and the First Addendum shall remain in full force and effect, and the First Addendum, this Second Addendum and the SOP shall be read and construed as one document.

 

2.                   AMENDMENTS TO THE SOP 

 

Section II. A.1 (“Vesting”) and A.3 (“Exercising vested options”) of the SOP is replaced so that it reads as follows:

 

“1. Vesting

 

The period in which granted options are vested in accordance with the SOP (“Vesting Period”) shall be four years. The Vesting Period shall commence on the date of participation of the Beneficiaries in this SOP (“Date of Participation”) as set out in Annex ./3 hereto, but in any event not before 28 September 2007. The total number of granted options eligible to be vested per Beneficiary is set out in Annex ./2 hereto.

 

2

 

(i) Year 1

 

On the last day of the last calendar month of the first year of the Vesting Period following the Date of Participation, 25 % of the options eligible to be vested per Beneficiary shall be vested automatically with that Beneficiary.

 

(ii) Year 2

 

On the last day of the last calendar month of the second year of the Vesting Period following the Date of Participation, 25 % of the options eligible to be vested per Beneficiary shall be vested automatically with that Beneficiary.

 

(iii) Year 3 and Year 4

 

During the third and fourth year of the Vesting Period following the Date of Participation, the remaining 50 % of the options eligible to be vested per Beneficiary shall be vested with that Beneficiary on a monthly pro rata basis (i.e. 2.083 % per month). Options eligible to be vested for any given month in years three and four of the Vesting Period will be vested automatically on the last day of each calendar month.

 

Notwithstanding the above, regarding all Beneficiaries that have worked for the Company prior to their Date of Participation in the SOP, (i) 25 % of the options eligible to be vested per Beneficiary shall be vested automatically on the last day of the month marking the (first) anniversary of their employment with the Company following their Date of Participation and (ii) 25 % of the options eligible to be vested per Beneficiary shall be vested automatically on the last day of the month marking the following next anniversary of their employment with the Company. The remaining 50 % of the options shall be vested with that Beneficiary on a monthly pro rata basis (i.e. 2.083 % per month) as set forth in (iii) above.

 

Certain Beneficiaries that have worked for the Company for a minimum period of at least one year prior to their Date of Participation in the SOP (the “Qualified Beneficiaries”) shall be vested 25 % of the options eligible to be vested per Beneficiary under the SOP as set forth in Annex ./2 and ./3 immediately on the Date of Participation of the Qualified Beneficiaries. 25 % of the options eligible to be vested shall be vested on the last day of the month marking the anniversary of their employment with the Company following their Date of Participation, whereas anniversary of their employment with the Company always means February 1 if the Qualified Beneficiary started working for the Company before 1 February 2006. The remaining 50 % of the options shall be vested with that Beneficiary on a monthly pro rata basis (i.e. 2.083 % per month) as set forth in (iii) above.

 

The Company believes this will further enhance the Qualified Beneficiaries’ motivation and solidarity with Nabriva.

 

Options shall be vested to Beneficiaries taking maternity leave (“Maternity Leave Employees”) in accordance with this Clause II.A. 1, provided that (i) options shall not be vested during the time the Maternity Leave Employee is on maternity leave and (ii) options shall only be vested when the Maternity Leave Employee has worked for Nabriva for a continuous period (such period calculated from the first day the Maternity Leave Employee resumes work after maternity leave) of at least (x) 12 months or (y) 1 month if the Maternity Leave Employee is participating in the third or fourth year of the Vesting Period pursuant to item (iii) in this Clause.

 

3

 

For the avoidance of doubt, options vested prior to the Maternity Leave Employee having taken maternity leave shall not be forfeited.

 

Notwithstanding the foregoing, the first 25% of the options eligible to be vested with the beneficiary listed in Schedule 3 after the second year in accordance with (i) above shall be vested automatically with that beneficiary listed in Schedule 3 on 7 May 2010.”

 

“3. Exercising vested options

 

The exercise of a vested option is only permissible in case of a Liquidation Event or a Qualified Public Offering. The Beneficiaries are entitled to exercise the vested options from 28 September 2007 until 27 September 2017 (the Exercise Period). Save for the case of a Liquidation Event the Beneficiaries are entitled to exercise vested options exclusively within a period commencing the day after the Company’s annual general meeting and ending six weeks after that day.

 

In order to exercise a vested option, the Beneficiary must notify the Company by submitting an exercise notice to the Company in the form of Annex ./4 (Exercise Notice) one week prior to the date he wishes to exercise the option as specified in the Exercise Notice.

 

In case of a Qualified Public Offering, the transfer of the shares to the Beneficiaries due to the exercise of options under this SOP is effected only upon completion of the Qualified Public Offering.

 

In case of a Liquidation Event, the Beneficiaries will — following their exercise of options — only receive a portion of the remainder, if any, of the proceeds from such Liquidation Event after satisfaction of the holders of certain preferred shares pursuant to liquidation preference agreements as in force at the date of exercise of options, whereas the Beneficiaries will participate in such remainder, if any, pro rata corresponding to their shareholding in the Company (in case Shares would have been transferred to the Beneficiaries); whereas the Company in case of a distributable remainder in its sole discretion may opt to provide the Beneficiaries with Shares in the Company rather than with cash amounts. A Beneficiary’s obligation to deposit the Exercise Price shall be subject to notification by the Company that a distributable remainder exists.

 

Notwithstanding the foregoing, the executives listed in Schedule 2 hereto shall be entitled to exercise their respective vested option at any time prior to 31 December 2009 by giving an Exercise Notice regardless of whether a Liquidation Event or a Qualified Public Offering has occurred. Furthermore, the executive listed in Schedule 3 hereto shall be entitled to exercise his Preferred Vested Option Right at any time after the resolution of the shareholders dated 7 May 2010 but prior to 31 December 2010] by giving an Exercise Notice regardless of whether a Liquidation Event or a Qualified Public Offering has occurred (each a Preferred Vested Option Right).

 

4

 

In case such Preferred Vested Option Right is exercised, such executive’s receipt of the Shares shall be subject to the executive’s accession to the Shareholders Agreement, then in force, entered into between the shareholders of the Company, and thus, the executive shall become a Party thereto with all rights and obligations entailed therein. The Preferred Vested Option Rights are granted to the abovementioned executives only because of their valuable contribution and commitment to the Company and as an additional incentive to further enhance the forthcoming the business thereof.”

 

5

 

Schedule ./2

 

Beneficiaries - Preferred Vested Option Right

 

Dr. Rodger Novak - Leberstrasse 20, A-1110 Wien - geb. 22.06.1967 - Mitglied des Vorstandes

Ralf Schmid - Leberstrasse 20, A-1110 Wien - geb. 12.04.1967 - Mitglied des Vorstandes

Dr. William Prince - Leberstrasse 20, A-1110 Wien - geb. 06.01.1946 - Mitglied des Vorstandes

 

 

Schedule ./3

 

Beneficiaries - Preferred Vested Option Right

 

Dr. William Prince - Leberstrasse 20, A-1110 Wien - geb. 06.01.1946 - Mitglied des Vorstandes

 

 

THIRD ADDENDUM

 

with regard to the

 

Nabriva Therapeutics AG’s

 

Stock Option Plan

 

dated 12 September 2007

 

 

PREAMBLE

 

WHEREAS, on 12 September 2007, the Management Board and the Supervisory Board of Nabriva Therapeutics AG (Nabriva or the Company) resolved to implement a stock option plan for all employees being employed by the Company for an indefinite period of time at 28 September 2007 and selected members of the Supervisory Board of the Company and further participants (the Beneficiaries), a copy of which is attached hereto as Schedule 1 (the Stock Option Plan or SOP);

 

WHEREAS, on 17 September 2009, the shareholders of the Company resolved to amend the SOP and thus, the SOP was amended through the Addendum to the SOP dated 12 September 2007 regarding the implementation of preferred vested option rights for selected executives, a copy of which is attached hereto as Schedule 2 (the First Addendum);

 

WHEREAS, on 7 May 2010, the shareholders of the Company resolved to further amend the SOP and thus, the SOP was amended through the Addendum to the SOP dated 12 September 2007 regarding the implementation of preferred vested option rights for selected executives, a copy of which is attached hereto as Schedule 3 (the Second Addendum);

 

WHEREAS, on 30 June 2015, the shareholders of the Company resolved to further amend the SOP according to the shareholder’s resolution through this third addendum to the SOP (the Third Addendum);

 

1.                   INTERPRETATION

 

1.1            Definitions 

 

Unless explicitly stated otherwise herein, all capitalized terms used in this Third Addendum shall have the meaning assigned to them in the SOP.

 

1.2            Supplemental 

 

Except as explicitly provided herein, the SOP, the First Addendum and the Second Addendum shall remain in full force and effect, and the SOP, the First Addendum, the Second Addendum and this Third Addendum shall be read and construed as one document.

 

2.                   AMENDMENTS TO THE SOP 

 

2.1            Amendment to Section II. A.3 

 

The first three paragraphs of Section II. A.3 (“Exercising vested options”) of the SOP, as amended by the First Addendum and further amended by the Second Addendum, shall be deleted and replaced in their entirety by the following:

 

The Beneficiaries are entitled to exercise the vested options from 28 September 2007 until 27 September 2017 (the Term). Unless otherwise specifically permitted in the Accession Statement as set forth in Annex ./3 or resolved upon by the Management Board with the approval of the Supervisory Board, the exercise of a vested option is only permissible in case of a Liquidation Event or following an initial public offering occurring during the Term, regardless of whether or not the Beneficiary is then providing services to the Company. In the case of a Liquidation Event occurring prior to an initial public offering of the Company, the Beneficiaries are entitled to exercise their vested options, taking into account any

 

 

vesting acceleration provided for under II.B.4 hereof, within the six-week period commencing the day after notification of all Beneficiaries of the upcoming Liquidation Event; provided that, if the acquiring or succeeding corporation (or an affiliate thereof) assumes any options in the Liquidation Event, such assumed options may be exercised, to the extent vested, in accordance with their terms and II. B.4 hereof, at any time during the remainder of the Term while the Beneficiary is providing services to the acquiring or succeeding corporation (or an affiliate thereof) and within the three-month period following a termination of the Beneficiary’s services to such entity due to a Good Leaver Event. In the case of an initial public offering, the Beneficiaries are entitled to exercise their vested options at any time, following such offering, during the remainder of the Term. The period during which an option may be exercised is the Exercise Period.

 

In order to exercise a vested option, the Beneficiary must notify the Company by submitting an exercise notice to the Company in the form of Annex ./4 (the Exercise Notice) one week (or such shorter period as is permitted by the Company) prior to the date he wishes to exercise the option as specified in the Exercise Notice.

 

2.2            Amendment to Section II. B.4 

 

The last paragraph of Section II. B.4 shall be deleted in its entirety.

 

2.3            Amendments to Annex ./1 

 

(1)              The following new definition shall be added to Annex ./1 I. Definitions: 

 

Term has the meaning ascribed thereto in Clause II.A.3 (“Exercising vested options”).

 

(2) The definition of “Qualified Public Offering” shall be deleted in its entirety from Annex ./1 I. Definitions. (For the avoidance of doubt, any remaining references to “Qualified Public Offering” in the SOP, or the First Addendum or Second Addendum thereto, shall be read to mean “initial public offering”.)

 

 

FOURTH ADDENDUM

with regard to

 

Nabriva Therapeutics AG’s Stock Option
 Plan

 

dated 12 September 2007

 

 

PREAMBLE

 

WHEREAS, on 12 September 2007, the Management Board and the Supervisory Board of Nabriva Therapeutics AG (Nabriva or the Company) resolved to implement a stock option plan for all employees being employed by the Company for an indefinite period of time at 28 September 2007 and selected members of the Supervisory Board of the Company and further participants (the Beneficiaries), (the Stock Option Plan or SOP);

 

WHEREAS, on 17 September 2009, the shareholders of the Company resolved to amend the SOP and thus, the SOP was amended through an Addendum to the SOP, (the First Addendum);

 

WHEREAS, on 7 May 2010, the shareholders of the Company resolved to further amend the SOP and thus, the SOP was amended through a second Addendum to the SOP, (the Second Addendum);

 

WHEREAS, on 30 June 2015, the shareholders of the Company resolved to further amend the SOP according to the shareholder’s resolution through a third addendum to the SOP, (the Third Addendum);

 

WHEREAS on or around 13 and 14 April 2017, the Supervisory Board and the Management Board resolved to further amend the SOP (the Fourth Addendum) such amendments as are set out in this Fourth Addendum to be conditional on completion of the proposed exchange of Common Shares and ADS’s on the Company for Nabriva Therapeutics plc Ordinary Shares.

 

1.                            INTERPRETATION

 

1.1.                  Definitions

 

Unless explicitly stated otherwise herein, all capitalized terms used in this Fourth Addendum shall have the meaning assigned to them in the SOP.

 

1.2.                  Supplemental

 

Except as explicitly provided herein, the SOP, the First Addendum Second Addendum and the Third Addendum, shall remain in full force and effect, and the SOP, the First Addendum, the Second Addendum, the Third Addendum and this Fourth Addendum shall be read and construed as one document.

 

2.                            AMENDMENTS TO THE SOP 

 

2.1.                  Amendment to Section II.A.2

 

2.1.1.                  After the reference to (“Exercise Price”) at the end of the first paragraph of Section II.A.2, the following words shall be included:

 

“provided however that in all cases the Exercise Price paid is not less than the nominal value of a Share”.

 

The following language shall be inserted at the end of the third paragraph of Section II.A.2: 

 

“subject to compliance with Irish law”.

 

2.2.                Amendment to Section II.A.3

 

The following paragraph shall be included at the end of Section II.A.3

 

In order to exercise a vested option, a Beneficiary must pay the applicable amount of the Exercise Price for the Shares by one of the following means in such manner and form as the Administrator may require from

 

 

time to time, with such payment option(s) to be determined in the sole and absolute discretion of the Administrator and as specifically set forth in the applicable Accession Statement:

 

(i)                  delivery of cash, certified or cashier’s check, money order or other cash equivalent acceptable to the Company in its discretion;

 

(ii)               a broker-assisted cashless exercise in accordance with Regulation T of the Board of Governors of the Federal Reserve System through a brokerage firm designated or approved by the Company;

 

(iii)            subject to such limits as the Company may impose from time to time, tender (via actual delivery or attestation) to the Company of other Shares of the Company which have a Fair Market Value on the date of tender equal to the Exercise Price;

 

(iv)           subject to such limits as the Company may impose from time to time, net share settlement;

 

(v)              any other method approved by the Company; or

 

(vi)           any combination of the foregoing.

 

Save that in respect of Beneficiaries who are not employees or executive directors of the Group, only the methods at 3.5 (i) and 3.5 (ii) may be utilised.

 

2.3.                  Amendment to Section II.B.1

 

The references in paragraph 1 (Good Leaver Events), subsections vii, viii and ix to “Management Board” or “Supervisory Board” shall be replaced by reference to “Board”.

 

2.4.                  Amendment to Section II.B.2

 

The entirety of Section II B.2 shall be deleted and replaced in its entirety by the following:

 

If a Beneficiary’s service or employment relationship with the Group ends during the term of the SOP due to an event other than a Good Leaver Event (a “Bad Leaver Event”), all options of the Beneficiary vested but not exercised at the time a Bad Leaver Event occurs shall forfeit and the SOP may be terminated in respect of that Beneficiary. In the event that a Director is not re-elected to the Board at an annual general meeting, this shall not constitute a Bad Leaver Event, except for cases where the non-re-election is justified by the behaviour of the Director.

 

The Committee may within its discretion decide whether to grant to a Beneficiary advantages as from a Good Leaver event even though the end of a Beneficiary’s service or employment relationship constitutes a Bad Leaver Event as described in B.2.

 

2.5.                  Amendment to Section II.C.2

 

The entirety of the section entitled “Termination” shall be deleted. 

 

2.6.                  Amendment to Section II.D

 

The entirety of Section II D shall be deleted and replaced by the following:

 

The Committee may at its sole discretion decide on the conditions for the inclusion of future participants other than those listed in Annex ./2 including but not limited to employees of the Company in accordance with the terms of this Stock Option Plan (“Future Participants”). The Committee shall have such right of decision in relation to Future Participants which are members of the Board.

 

 

2.7.                  Amendment to Section II.F.1

 

The second paragraph of Section II F.1 (“Stock Adjustments”) shall be amended so that the reference to “Supervisory Board” is deleted and replaced with reference to “Board” and the reference to “Management Board” is deleted and replace with reference to “Committee”

 

2.8.                  Amendment to Section II.F.4

 

The notification contact details contained in paragraph 4 will ne amended as follows:

Nabriva Therapeutics AG

Mihovil Spoljaric

Email: mihovil.spoljaric@nabriva.com

 

2.9.                  Amendment to Section II.F.7

 

The provisions of the paragraph entitled “Governing law and Jurisdiction” shall be deleted and replaced in its entirety by the following:

 

The terms of the SOP, its interpretation and all rights and obligations arising there from shall be governed by Irish law. The courts of Ireland shall, to the extent legally possible, have exclusive jurisdiction regarding all claims in connection with the SOP and the terms of the SOP.

 

2.10.           Amendments to Annex ./1 I Definitions

 

The following new definitions shall be added Annex ./1 “Definitions”

 

Board                                                means the board of directors for the time being of the Company or the directors present at a duly convened meeting of the board of the Company at which a quorum is present or a duly constituted committee of the Board.

 

Committee                     means a duly constituted committee of the Board constituted to consider and review the remuneration and compensation of directors and employees of the Group.

 

Group                                                means the Company and its Subsidiaries.

 

Subsidiary                         means any company which is, for the time being, a subsidiary of the Company within the meaning of Section 7 of the Companies Act, 2014

 

The definition of “Bankruptcy” shall be amended as follows:

 

Bankruptcy                 means the initiation of bankruptcy proceedings in regard to the assets of a Beneficiary, the dismissal of an application for bankruptcy due to a lack of assets or the initiation of private bankruptcy proceedings pursuant to applicable law in the relevant jurisdiction.

 

The definition of “Beneficiaries” shall be amended as follows:

 

Beneficiaries            are all employees (for the avoidance of doubt including Members of the Board) being employed with the Company for an indefinite period of time at 28 September 2007 and further participants (see below Annex ./2) subject to the provisions as set forth herein under this SOP.

 

The definition of “Company” shall be amended as follows:

 

Company:                       means Nabriva Therapeutics plc and its legal successors and, except where the context otherwise requires, the Company’s present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code and any other business

 

 

venture (including, without limitation, joint venture or limited liability company) in which the Company has a controlling interest, as determined by the Management Board.

 

The definition of Shares shall be amended as follows:

 

Shares                                              means the Ordinary Shares of the Company issued from time to time and each a “Share”.

 

 

2.11.           Amendment to Annex 3 — Form of Accession Statement

 

To:

Ms / Mr [·],

[address]

 

REF: SOP 2007 / Accession Statement

 

Dear Ms / Mr [·],

 

You will participate in this SOP 2007 with effect as of [·] (Participation Date).

 

As Participant in the SOP 2007 you will be granted options to acquire shares in the Company pursuant to this SOP 2007 in the amounts as set forth in the Vesting Table attached.

 

You may exercise your options by:

 

(i)                                     delivery of cash, certified or cashier’s check, money order or other cash equivalent acceptable to the [Company] in its discretion;

 

(ii)                                  a broker-assisted cashless exercise in accordance with Regulation T of the Board of Governors of the Federal Reserve System through a brokerage firm designated or approved by the [Company];

 

(iii)                               subject to such limits as the [Company] may impose from time to time, tender (via actual delivery or attestation) to the Company of other Shares of the Company which have a market value on the date of tender equal to the Exercise Price;

 

(iv)                              subject to such limits as the [Company] may impose from time to time, net share settlement;

 

(v)                                 any other method approved by the [Company]; or

 

(vi)                              any combination of the foregoing(1).

 

 

	
Nabriva Therapeutics Plc:
    	
 
    
	
DATE:
    	
 
    
	
 
    	
 
    
	
PARTICIPANT: DATE:
    	
 
    

 

(1) Note: Specific exercise provisions to be included on a grant by grant basis as approved by Company. Note that only the
 alternatives at (i) and (ii) will be available to beneficiaries who are not employees or executive directors of the Company.

 

 

2.12.           Amendments to Annex 4 — Form of Exercise Notice 

 

The following shall replace Annex 4 in its entirety:

 

Form of Exercise Notice

 

To:

Mihovil Spoljaric (mihovil.spoljaric@nabriva.com)

 

REF: SOP 2007 / Exercise Notice

 

Dear Sirs,

 

I am a participant in the SOP 2007. Capitalized terms not otherwise defined herein shall have the meaning assigned to such term in the SOP 2007. This is an Exercise Notice.

 

I hereby irrevocably declare to exercise [·] vested options granted to me [on ·]

 

·                  When exercising the above number of options, I wish to acquire [·] Shares as determined in the vesting table attached to my Accession Statement at the Exercise Price per Share. Such Shares shall be delivered to my securities account no. [·] with [·] against payment in cash (or such consideration as permitted by my Accession Statement) by me of the Exercise Price for each Share. I acknowledge that I must satisfy any applicable tax withholding (including social security contributions) resulting from the exercise of my options by making a cash payment(2) to the Company (or otherwise in a manner as the Company may permit) before any Shares will be delivered to me.

 

·                  Whereas in the case of a Liquation Event, (i) I acknowledge that in case of a distributable remainder the Company — in consideration of the Exercise Price — in its sole discretion may opt to provide me with Shares in the Company rather than with the cash amounts attributable to me according to the SOP 2007, (ii) I shall deposit the Exercise Price only upon notification by the Company that a distributable remainder exists, (iii) upon such notification, I shall deposit the Exercise Price within seven (7) business days.

 

I acknowledge that options have not been granted as remuneration or as a bonus for job performance but rather as a voluntary benefit to encourage motivation and solidarity with the Company and that I have no entitlement to any future comparable benefits.

 

 

	
Name 
    	
 
    
	
 
    	
 
    
	
Date
    	
 
    

 

(2) Note: Confirm that value of vested options not to be used to assist with tax liability.

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