Document:

Second Amended and Restated 2006 Stock Option and Incentive Plan

 Exhibit 10.1 

LEMAITRE VASCULAR, INC. 
  

 
 SECOND
AMENDED AND RESTATED 
 2006 STOCK OPTION AND INCENTIVE PLAN 

SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS 

The name of the plan is the LeMaitre Vascular, Inc. 2006 Stock Option and Incentive Plan (the “Plan”). The purpose of the Plan
is to encourage and enable the officers, employees, directors and other key persons (including Consultants and prospective employees) of LeMaitre Vascular, Inc. (the “Company”) and its Subsidiaries upon whose judgment, initiative and
efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer
identification of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain with the Company. 

The following terms shall be defined as set forth below: 

“Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 

“Administrator” is defined in Section 2(a). 

“Award” or “Awards,” except where referring to a particular category of grant under the Plan, shall
include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock Units, Restricted Stock Awards, Unrestricted Stock Awards and Cash-Based Awards. 

“Award Certificate” means a written or electronic document setting forth the terms and provisions applicable to an Award
granted under the Plan. Each Award Certificate is subject to the terms and conditions of the Plan. 
 “Board”
means the Board of Directors of the Company. 
 “Cash-Based Award” means an Award entitling the recipient to
receive a cash-denominated payment. 
 “Code” means the Internal Revenue Code of 1986, as amended, and any
successor Code, and related rules, regulations and interpretations. 

 “Consultant” means any natural person that provides bona fide services to
the Company, and such services are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities. 

“Committee” means a committee of the Board. 

“Covered Employee” means an employee who is a “Covered Employee” within the meaning of Section 162(m) of
the Code. 
 “Effective Date” means the date on which the Plan is approved by stockholders as set forth in
Section 19. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder. 
 “Fair Market Value” of the Stock on any given date means the fair market value of
the Stock determined in good faith by the Administrator; provided, however, that if the Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”), NASDAQ Global Market or another
national securities exchange, the determination shall be made by reference to market quotations. If there are no market quotations for such date, the determination shall be made by reference to the last date preceding such date for which there are
market quotations. 
 “Incentive Stock Option” means any Stock Option designated and qualified as an
“incentive stock option” as defined in Section 422 of the Code. 
 “Non-Qualified Stock Option”
means any Stock Option that is not an Incentive Stock Option. 
 “Option” or “Stock Option”
means any option to purchase shares of Stock granted pursuant to Section 5. 
 “Performance Cycle” means
one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more performance criteria will be measured for the purpose of determining a grantee’s right to
and the payment of a Restricted Stock Award, Restricted Stock Units or Cash-Based Award. 
 “Restricted Stock”
means Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant. 

“Restricted Stock Award” means an Award entitling the recipient to acquire shares of Stock subject to such restrictions
and conditions as the Administrator may determine at the time of grant. 
 “Restricted Stock Units” means an
Award of phantom stock units to a grantee. 
 “Section 409A” means Section 409A of the Code and the
regulations and other guidance promulgated thereunder. 
  

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 “Stock” means the Common Stock, par value $0.01 per share, of the Company,
subject to adjustments pursuant to Section 3. 
 “Stock Appreciation Right” means an Award entitling the
recipient to receive shares of Stock having a value equal to the excess of the Fair Market Value of the Stock on the date of exercise over the exercise price of the Stock Appreciation Right (except as otherwise provided for in Section 6).

 “Subsidiary” means any corporation or other entity (other than the Company) in which the Company has at
least a 50 percent interest, either directly or indirectly. 
 “Ten Percent Owner” means an employee who owns
or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation. 

“Unrestricted Stock” is defined in Section 9. 

“Unrestricted Stock Award” means any Award pursuant to which a grantee may receive shares of Stock free of any
restrictions. 
 SECTION 2. ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS 

(a) Committee. The Plan shall be administered by either the Board or one or more Committees of the Board (the
“Administrator”). 
 (b) Powers of Administrator. The Administrator shall have the power and authority to grant
Awards consistent with the terms of the Plan, including the power and authority: 
 (i) to select the individuals to whom Awards
may from time to time be granted; 
 (ii) to determine the time or times of grant, and the extent, if any, of Incentive Stock
Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock Units, Restricted Stock Awards, Unrestricted Stock Awards and Cash-Based Awards, or any combination of the foregoing, granted to any one or more grantees; 

(iii) to determine the number of shares of Stock to be covered by any Award; 

(iv) to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the
Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the forms of Award Certificates; 

(v) to accelerate at any time the exercisability or vesting of all or any portion of any Award; 

(vi) subject to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised; and

  

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 (vii) at any time to adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for
the administration of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 

All decisions and interpretations of the Administrator shall be binding on all persons, including the Company and Plan grantees.

 (c) Foreign Participants. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws
in other countries in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries
shall be covered by the Plan; (ii) determine which individuals outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to individuals outside the United States to comply
with applicable foreign laws; (iv) establish subplans and modify exercise procedures and other terms and procedures, to the extent the Committee determines such actions to be necessary or advisable (and such subplans and/or modifications shall
be attached to this Plan as appendices); provided, however, that no such subplans and/or modifications shall increase the share limitations contained in Section 3(a) of the Plan; and (v) take any action, before or after an
Award is made, that the Committee determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Committee may not take any actions hereunder,
and no Awards shall be granted, that would violate the Exchange Act or any other applicable United States securities law, the Code, or any other applicable United States governing statute or law. 

(d) Delegation of Authority to Grant Awards. The Administrator, in its discretion, may delegate to an officer (including the chief
executive officer) of the Company all or part of the Administrator’s authority and duties with respect to the granting of Awards to individuals who are not subject to the reporting and other provisions of Section 16 of the Exchange Act and
not Covered Employees. Any such delegation by the Administrator shall include a limitation as to the amount of Awards that may be granted during the period of the delegation and shall contain guidelines as to the determination of the exercise price
of any Stock Option or Stock Appreciation Right, the conversion ratio or price of other Awards and the vesting criteria. The Administrator may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior
actions of the Administrator’s delegate or delegates that were consistent with the terms of the Plan. 
 (e) Award
Certificate. Awards under the Plan shall be evidenced by Award Certificates that set forth the terms, conditions and limitations for each Award which may include, without limitation, the term of an Award and the provisions applicable in the
event employment or service terminates. 
 (f) Indemnification. Neither the Board nor the Committee, nor any member of
either or any delegate thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and

  

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the Committee (and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without
limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any
indemnification agreement between such individual and the Company. 
 SECTION 3. STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 (a) Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be
the sum of (i) 3,000,000 shares, and (ii) such number of shares as equals that number of stock options or awards returned to (A) the Company’s 1997 Stock Option Plan, as amended and in effect from time to time, following the
effective date of the original 2006 Stock Option and Incentive Plan, (B) the Company’s 1998 Stock Option Plan, as amended and in effect from time to time, following the effective date of the original 2006 Stock Option and Incentive Plan,
(C) the Company’s 2000 Stock Option Plan, as amended and in effect from time to time, following the effective date of the original 2006 Stock Option and Incentive Plan, and (D) the Company’s 2004 Stock Option Plan, as amended and
in effect from time to time, following the effective date of the original 2006 Stock Option and Incentive Plan, in each case as a result of the expiration, cancellation or termination of such stock options or awards, subject to adjustment as
provided in Section 3(b). For purposes of this limitation, the shares of Stock underlying any Awards that are forfeited, canceled, held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding,
reacquired by the Company prior to vesting, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. Subject to such overall
limitations, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that Stock Options or Stock Appreciation Rights with respect to no more than 3,000,000 shares of Stock may be granted to
any one individual grantee during any one calendar year period. In no event may shares of Stock granted in the form of Incentive Stock Options exceed 3,000,000 shares. The shares available for issuance under the Plan may be authorized but unissued
shares of Stock or shares of Stock reacquired by the Company. 
 (b) Changes in Stock. Subject to Section 3(c)
hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock are increased or
decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such
shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company or
any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, including the maximum number of shares
that may be issued in the form of Incentive Stock Options, (ii) the number of Stock Options or Stock Appreciation Rights that can be granted to any one individual grantee and the maximum number of shares that may be granted under a
Performance-based Award, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the 

 

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repurchase price, if any, per share subject to each outstanding Restricted Stock Award, and (v) the exercise price for each share subject to any then outstanding Stock Options and Stock
Appreciation Rights under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which such Stock Options and Stock Appreciation Rights remain
exercisable. The Administrator shall also make equitable or proportionate adjustments in the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration cash dividends paid
other than in the ordinary course or any other extraordinary corporate event. The adjustment by the Administrator shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such
adjustment, but the Administrator in its discretion may make a cash payment in lieu of fractional shares. 
 (c)
Consolidations, Mergers or Sales of Assets or Stock. If the Company is to be consolidated with or acquired by another person or entity in a merger, sale of all or substantially all of the Company’s assets or stock or otherwise (an
“Acquisition”), the Committee or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”) shall, with respect to outstanding Awards or shares acquired upon exercise of any
Award, take one or more of the following actions: (i) make appropriate provision for the continuation of such Award by substituting on an equitable basis for the shares then subject to such Award the consideration payable with respect to the
outstanding shares of Common Stock in connection with the Acquisition; (ii) accelerate the date of exercise of such Award or of any installment of any such Award; (iii) upon written notice to the optionees, provide that all Awards must be
exercised, to the extent then exercisable, within a specified number of days of the date of such notice, at the end of which period the Award shall terminate; (iv) terminate all Awards in exchange for a cash payment equal to the excess of the
fair market value of the shares subject to such Award (to the extent then exercisable) over the exercise price thereof; or (v) in the event of a stock sale, require that the optionee sell to the purchaser to whom such stock sale is to be made,
all shares previously issued to such optionee upon exercise of any Award, at a price equal to the portion of the net consideration from such sale which is attributable to such shares. 

(d) Substitute Awards. The Administrator may grant Awards under the Plan in substitution for stock and stock based awards held by
employees, directors or other key persons of another corporation in connection with the merger or consolidation of the employing corporation or affiliate thereof with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of
property or stock of the employing corporation or affiliate thereof. The Administrator may direct that the substitute awards be granted on such terms and conditions as the Administrator considers appropriate in the circumstances. Any substitute
Awards granted under the Plan shall not count against the share limitation set forth in Section 3(a). 
 SECTION 4. ELIGIBILITY

 Grantees under the Plan will be such full or part-time officers and other employees, directors and key persons (including
Consultants and prospective employees) of the Company and its Subsidiaries as are selected from time to time by the Administrator in its sole discretion. 
  

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 SECTION 5. STOCK OPTIONS 

Any Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve. 

Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be
granted only to employees of the Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it shall be
deemed a Non-Qualified Stock Option. 
 (a) Grants of Stock Options. Stock Options granted pursuant to this
Section 5(a) shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable. If the Administrator so
determines, Stock Options may be granted in lieu of cash compensation at the optionee’s election, subject to such terms and conditions as the Administrator may establish. 

(i) Exercise Price. The exercise price per share for the Stock covered by a Stock Option granted pursuant to this
Section 5(a) shall be determined by the Administrator at the time of grant but shall not be less than one hundred percent (100%) of the Fair Market Value on the date of grant. In the case of an Incentive Stock Option that is granted to a
Ten Percent Owner, the option price of such Incentive Stock Option shall be not less than one hundred ten (110%) percent of the Fair Market Value on the grant date. 

(ii) Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable more
than ten years after the date the Stock Option is granted. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the term of such Stock Option shall be no more than five years from the date of grant. 

(iii) Exercisability; Rights of a Stockholder. Stock Options shall become exercisable at such time or times, whether or not in
installments, as shall be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate the exercisability of all or any portion of any Stock Option. An optionee shall have the rights of a stockholder only
as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 (iv) Method of
Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods
to the extent provided in the Option Award Certificate: 
 (A) In cash, by certified or bank check or other
instrument acceptable to the Administrator; 
 (B) Through the delivery (or attestation to the ownership) of
shares of Stock that have been purchased by the optionee on the open market or that are beneficially owned by the optionee and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value
on the 
  

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exercise date. To the extent required to avoid variable accounting treatment under FAS 123R or other applicable accounting rules, such surrendered shares shall have been owned by the optionee for
at least six months; or 
 (C) By the optionee delivering to the Company a properly executed exercise notice
together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that in the event the optionee chooses to pay the purchase price as so
provided, the optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure. 

(D) With respect to Stock Options that are not Incentive Stock Options, by a “net exercise” arrangement
pursuant to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price. 

Payment instruments will be received subject to collection. The transfer to the optionee on the records of the Company or of the transfer agent of the
shares of Stock to be purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company of the full
purchase price for such shares and the fulfillment of any other requirements contained in the Option Award Certificate or applicable provisions of laws (including the satisfaction of any withholding taxes that the Company is obligated to withhold
with respect to the optionee). In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the optionee upon the exercise of the Stock
Option shall be net of the number of shares attested to. 
 (v) Annual Limit on Incentive Stock Options. To the extent
required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted under
this Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any Stock Option exceeds this limit, it
shall constitute a Non-Qualified Stock Option. 
 SECTION 6. STOCK APPRECIATION RIGHTS 

(a) Grant and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be granted by the Administrator independently of
any Stock Option granted pursuant to Section 5 of the Plan. 
 (b) Terms and Conditions of Stock Appreciation
Rights. Stock Appreciation Rights shall be subject to such terms and conditions as shall be determined from time to time by the Administrator. The term of a Stock Appreciation Right may not exceed 10 years. 

 

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 SECTION 7. RESTRICTED STOCK AWARDS 

(a) Purchase Price; Terms. Shares of Restricted Stock shall be issued under the Plan at such purchase price (which may be zero) as
determined by the Administrator. The grant of a Restricted Stock Award is contingent on the grantee executing the Restricted Stock agreement. The terms and conditions of each such Award Certificate shall be determined by the Administrator, and such
terms and conditions may differ among individual Awards and grantees. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. 

(b) Rights as a Stockholder. Upon execution of a written instrument setting forth the Restricted Stock Award and payment of any
applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained in the Restricted Stock Award Certificate. Unless the Administrator shall otherwise
determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or the transfer agent to the effect that they are subject to forfeiture until such Restricted Stock are vested as provided in
Section 7(d) below, and (ii) certificated Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in Section 7(d) below, and the grantee shall be required, as a condition of the
grant, to deliver to the Company such instruments of transfer as the Administrator may prescribe. 
 (c) Restrictions.
Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Restricted Stock Award Certificate. Except as may otherwise be provided by the Administrator
either in the Award Certificate or, subject to Section 16 below, in writing after the Award is issued, if any, if a grantee’s employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any
Restricted Stock that has not vested at the time of termination shall automatically and without any requirement of notice to such grantee from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its
original purchase price from such grantee or such grantee’s legal representative simultaneously with such termination of employment (or other service relationship), and thereafter shall cease to represent any ownership of the Company by the
grantee or rights of the grantee as a stockholder. Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates, a grantee shall surrender such certificates to the Company upon request without
consideration. 
 (d) Vesting of Restricted Stock. The Administrator at the time of grant shall specify the date or dates
and/or the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company’s right of repurchase or forfeiture shall lapse. Subsequent to such date or
dates and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions have lapsed shall no longer be Restricted Stock and shall be deemed “vested.” Except as may
otherwise be provided by the Administrator either in the Award Certificate or, subject to Section 16 below, in writing after the Award is issued, a grantee’s rights in any shares of Restricted Stock that have not vested shall automatically
terminate upon the grantee’s termination of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall be subject to the provisions of Section 7(c) above. 

 

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 SECTION 8. RESTRICTED STOCK UNITS 

(a) Nature of Restricted Stock Units. The Administrator shall determine the restrictions and conditions applicable to each
Restricted Stock Unit at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. The terms and conditions of each such Award
Certificate shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees. At the end of the deferral period, the Restricted Stock Units, to the extent vested, shall be settled in the form of
shares of Stock. To the extent that an award of Restricted Stock Units is subject to Section 409A, it may contain such additional terms and conditions as the Administrator shall determine in its sole discretion in order for such Award to comply
with the requirements of Section 409A. 
 (b) Election to Receive Restricted Stock Units in Lieu of Compensation.
The Administrator may, in its sole discretion, permit a grantee to elect to receive a portion of future cash compensation otherwise due to such grantee in the form of an award of Restricted Stock Units. Any such election shall be made in writing and
shall be delivered to the Company no later than the date specified by the Administrator and in accordance with Section 409A and such other rules and procedures established by the Administrator. Any such future cash compensation that the grantee
elects to defer shall be converted to a fixed number of Restricted Stock Units based on the Fair Market Value of Stock on the date the compensation would otherwise have been paid to the grantee if such payment had not been deferred as provided
herein. The Administrator shall have the sole right to determine whether and under what circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate. Any
Restricted Stock Units that are elected to be received in lieu of cash compensation shall be fully vested, unless otherwise provided in the Award Certificate. 

(c) Rights as a Stockholder. A grantee shall have the rights as a stockholder only as to shares of Stock acquired by the grantee
upon settlement of Restricted Stock Units. 
 (d) Termination. Except as may otherwise be provided by the Administrator
either in the Award Certificate or, subject to Section 16 below, in writing after the Award is issued, a grantee’s right in all Restricted Stock Units that have not vested shall automatically terminate upon the grantee’s termination
of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason. 
 SECTION 9. UNRESTRICTED STOCK
AWARDS 
 Grant or Sale of Unrestricted Stock. The Administrator may, in its sole discretion, grant (or sell at par
value or such higher purchase price determined by the Administrator) an Unrestricted Stock Award to any grantee pursuant to which such grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the Plan.
Unrestricted Stock Awards may be granted in respect of past services or other valid consideration, or in lieu of cash compensation due to such grantee. 

SECTION 10. CASH-BASED AWARDS 

The Administrator may, in its sole discretion, grant Cash-Based Awards to any grantee in such number or amount and upon such terms, and
subject to such conditions, as the 
  

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Administrator shall determine at the time of grant. The Administrator shall determine the maximum duration of the Cash-Based Award, the amount of cash to which the Cash-Based Award pertains, the
conditions upon which the Cash-Based Award shall become vested or payable, and such other provisions as the Administrator shall determine. Each Cash-Based Award shall specify a cash-denominated payment amount, formula or payment ranges as determined
by the Administrator. Payment, if any, with respect to a Cash-Based Award shall be made in accordance with the terms of the Award and may be made in cash or in shares of Stock, as the Administrator determines. 

SECTION 11. PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES 

Notwithstanding anything to the contrary contained herein, if any Restricted Stock Award, Restricted Stock Units or Cash-Based Award
granted to a Covered Employee is intended to qualify as “Performance-based Compensation” under Section 162(m) of the Code and the regulations promulgated thereunder (a “Performance-based Award”), such Award shall comply with
the provisions set forth below: 
 (a) Performance Criteria. The performance criteria used in performance goals governing
Performance-based Awards granted to Covered Employees may include any or all of the following: (i) the Company’s return on equity, assets, capital or investment: (ii) pre-tax or after-tax profit levels of the Company or any
Subsidiary, a division, an operating unit or a business segment of the Company, or any combination of the foregoing; (iii) net sales, gross margin, operating income, cash flow, funds from operations or similar measures; (iv) total
stockholder return; (v) changes in the market price of the Stock; (vi) sales or market share; (vii) earnings per share, (viii) status of clinical studies and other regulatory approvals and milestones, (ix) manufacturing
developments and/or progress, (x) achievement of sales milestones, and (xi) other operational objectives of the Company. 

(b) Grant of Performance-based Awards. With respect to each Performance-based Award granted to a Covered Employee, the Committee
shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the performance criteria for such grant, and the achievement targets with respect to each
performance criterion (including a threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-based Award will specify the amount payable, or the formula for determining the amount payable,
upon achievement of the various applicable performance targets. The performance criteria established by the Committee may be (but need not be) different for each Performance Cycle and different goals may be applicable to Performance-based Awards to
different Covered Employees. 
 (c) Payment of Performance-based Awards. Following the completion of a Performance Cycle,
the Committee shall meet to review and certify in writing whether, and to what extent, the performance criteria for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the Performance-based
Awards earned for the Performance Cycle. The Committee shall then determine the actual size of each Covered Employee’s Performance-based Award, and, in doing so, may reduce or eliminate the amount of the Performance-based Award for a Covered
Employee if, in its sole judgment, such reduction or elimination is appropriate. 
  

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 (d) Maximum Award Payable. The maximum Performance-based Award payable to any one
Covered Employee under the Plan for a Performance Cycle is 3,000,000 Shares (subject to adjustment as provided in Section 3(b) hereof) or $2,000,000 in the case of a Performance-based award that is a Cash-Based Award. 

SECTION 12. TRANSFERABILITY OF AWARDS 

(a) Transferability. Except as provided in Section 12(b) below, during a grantee’s lifetime, his or her Awards shall be
exercisable only by the grantee, or by the grantee’s legal representative or guardian in the event of the grantee’s incapacity. No Awards shall be sold, assigned, transferred or otherwise encumbered or disposed of by a grantee other than
by will or by the laws of descent and distribution or a domestic relations order. No Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind, and any purported transfer in violation hereof shall be null and void.

 (b) Committee Action. Notwithstanding Section 12(a), the Administrator, in its discretion, may provide either in
the Award Certificate regarding a given Award or by subsequent written approval that the grantee (who is an employee or director) may transfer his or her Awards (other than any Incentive Stock Options) to his or her immediate family members, to
trusts for the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the
applicable Award. 
 (c) Family Member. For purposes of Section 12(b), “family member” shall mean a
grantee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the grantee’s household (other than a tenant of the grantee), a trust in which these persons (or the grantee) have more than 50 percent of the beneficial interest, a foundation in which these persons (or the
grantee) control the management of assets, and any other entity in which these persons (or the grantee) own more than 50 percent of the voting interests. 

(d) Designation of Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or
beneficiaries to exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any such designation shall be on a form provided for that purpose by the Administrator and shall not be effective until received
by the Administrator. If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate. 

SECTION 13. TAX WITHHOLDING 

(a) Payment by Grantee. Each grantee shall, no later than the date as of which the value of an Award or of any Stock or other
amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local
taxes of any kind required by law to be withheld by the Company with respect to such income. The Company and its Subsidiaries shall, to the extent permitted by law, 

 

 12 

 
have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company’s obligation to deliver evidence of book entry (or stock certificates) to any
grantee is subject to and conditioned on tax withholding obligations being satisfied by the grantee. 
 (b) Payment in
Stock. Subject to approval by the Administrator, a grantee may elect to have the Company’s minimum required tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to
be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Stock owned by the
grantee with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due. 

SECTION 14. SECTION 409A AWARDS. 

To the extent that any Award is determined to constitute “nonqualified deferred compensation” within the meaning of
Section 409A (a “409A Award”), the Award shall be subject to such additional rules and requirements as specified by the Administrator from time to time in order to comply with Section 409A. In this regard, if any amount under a
409A Award is payable upon a “separation from service” (within the meaning of Section 409A) to a grantee who is then considered a “specified employee” (within the meaning of Section 409A), then no such payment shall be
made prior to the date that is the earlier of (i) six months and one day after the grantee’s separation from service, or (ii) the grantee’s death, but only to the extent such delay is necessary to prevent such payment from being
subject to interest, penalties and/or additional tax imposed pursuant to Section 409A. Further, the settlement of any such Award may not be accelerated except to the extent permitted by Section 409A. 

SECTION 15. TRANSFER, LEAVE OF ABSENCE, ETC. 

For purposes of the Plan, the following events shall not be deemed a termination of employment: 

(a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another;
or 
 (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if
the employee’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise so provides in writing. 

SECTION 16. AMENDMENTS AND TERMINATION 

The Board may, at any time, amend or discontinue the Plan and the Administrator may, at any time, amend or cancel any outstanding Award
for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s consent. Except as provided in Section 3(b) or 3(c), in no
event may the Administrator exercise its discretion to reduce the exercise price of outstanding Stock Options or Stock Appreciation Rights or effect repricing through cancellation and re-grants without shareholder approval. Any material Plan
amendments (other than amendments 
  

 13 

 
that curtail the scope of the Plan), including any Plan amendments that (i) increase the number of shares reserved for issuance under the Plan, (ii) expand the type of Awards available
under, materially expand the eligibility to participate in, or materially extend the term of, the Plan, or (iii) materially change the method of determining Fair Market Value, shall be subject to approval by the Company stockholders entitled to
vote at a meeting of stockholders. In addition, to the extent determined by the Administrator to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code or to ensure that
compensation earned under Awards qualifies as performance-based compensation under Section 162(m) of the Code, Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders. Nothing in
this Section 16 shall limit the Administrator’s authority to take any action permitted pursuant to Section 3(c). 
 SECTION 17.
STATUS OF PLAN 
 With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or
other consideration not received by a grantee, a grantee shall have no rights greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine in connection with any Award or Awards. In its sole
discretion, the Administrator may authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other
arrangements is consistent with the foregoing sentence. 
 SECTION 18. GENERAL PROVISIONS 

(a) No Distribution; Compliance with Legal Requirements. The Administrator may require each person acquiring Stock pursuant to an
Award to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof. 

No shares of Stock shall be issued pursuant to an Award until all applicable securities law and other legal and stock exchange or similar
requirements have been satisfied. The Administrator may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate. 

(b) Delivery of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes when
the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company. Uncertificated Stock shall be deemed
delivered for all purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail (with proof of receipt) or by United States mail, addressed to the grantee, at the grantee’s last known
address on file with the Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry” records). 

(c) Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any
right to continued employment with the Company or any Subsidiary. 
  

 14 

 (d) Trading Policy Restrictions. Option exercises and other Awards under the Plan
shall be subject to such Company’s insider trading policy and procedures, as in effect from time to time. 
 (e)
Forfeiture of Awards under Sarbanes-Oxley Act. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the
securities laws, then any grantee who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall reimburse the Company for the amount of any Award received by such individual under the
Plan during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting requirement. 

SECTION 19. EFFECTIVE DATE OF PLAN 

This Plan shall become effective upon approval by the holders of a majority of the votes cast at a meeting of
stockholders at which a quorum is present. No grants of Stock Options and other Awards may be made hereunder after the tenth
(10th) anniversary of the Effective Date and no
grants of Incentive Stock Options may be made hereunder after the tenth
(10th) anniversary of the date the Plan is approved
by the Board. 
 SECTION 20. GOVERNING LAW 

This Plan and all Awards and actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of
Delaware, applied without regard to conflict of law principles. 
 DATE APPROVED BY BOARD OF DIRECTORS: April 26, 2010 

DATE APPROVED BY STOCKHOLDERS: June 17, 2010 
  

 15Sublease Agreement

 Exhibit 10.2 

STATE OF NORTH CAROLINA 
 COUNTY OF WAKE

 SUBLEASE AGREEMENT 

THIS SUBLEASE AGREEMENT (“Sublease”) made and entered into this
14th day of June, 2010, by and between PPD
DEVELOPMENT, LP, a Texas limited partnership (“Sublessor”) and Furiex Pharmaceuticals, Inc., a Delaware corporation (“Sublessee”). 

WITNESSETH: 

WHEREAS, Sublessor has leased from Duke Realty Limited Partnership, an Indiana limited partnership doing business in North Carolina as
Duke Realty of Indiana Limited Partnership as successor by merger to Weeks Realty, L.P. (“Prime Landlord”) those certain premises (“Leased Premises”) more particularly described in that lease agreement dated June 26, 1998 by and
between Prime Landlord as landlord and PPD Pharmaco, Inc. predecessor in interest to Sublessor as tenant, and as amended by that certain First Amendment to Lease Agreement dated October 28, 1998, and as amended by that certain Second Lease Amendment
to Lease Agreement dated October 1, 2002, and as amended by that certain Third Lease Amendment to Lease Agreement dated September 22, 2003, and as amended by that certain Fourth Lease Amendment to Lease Agreement dated March 31, 2005, and as amended
by that certain Fifth Lease Amendment to Lease Agreement dated July 7, 2005, and as amended by that certain Sixth Lease Amendment to Lease Agreement dated December 30, 2005, and as amended by that certain Seventh Lease Amendment to Lease Agreement
dated February 6, 2006, and as amended by that certain Eighth Lease Amendment to Lease Agreement dated September 24, 2007 and as further amended by that certain Nineth Lease Amendment to Lease Agreement dated September 1, 2009
(collectively the “Prime Lease”); 
 WHEREAS, Sublessor desires to sublease a portion of the Leased Premises
(hereinafter the “Space”) described on Exhibit “A” attached hereto and made a part hereof to Sublessee; 

NOW THEREFORE, for and in consideration of the mutual covenants flowing between the parties hereto, the receipt and sufficiency of which
are hereby acknowledged, Sublessor and Sublessee do hereby covenant and agree as follows: 
 DEMISE 

1.01     Sublessee does hereby take and hire the Space from Sublessor, subject and subordinate to the terms and
conditions of said Prime Lease. 
 TERM 

2.01     The term of this Sublease shall commence on June 14, 2010 and shall terminate on June 13, 2012 unless sooner
terminated as hereinafter provided (the “Term”). Sublessee may extend the Term for one (1) year. Sublessee shall furnish written notice to Sublessor of Sublessee’s intent to extend the Term at least sixty (60) days prior to
the expiration of the then Term. Notwithstanding the foregoing, this Sublease shall immediately terminate upon the expiration or termination of the Prime Lease. Sublessor shall use commercially reasonable efforts to notify Sublessee at least thirty
(30) days prior to such termination. Upon expiration or earlier termination of this Sublease, Sublessee shall surrender the Space broom clean, in good order and condition, with all repairs and maintenance required by Sublessor hereunder having
been performed, ordinary wear and tear excepted, in a manner consistent with Section 13(b) of the Prime Lease. 

 RENTAL 

3.01     Sublessee shall pay to Sublessor, without offset or deduction, the following rent on the first day of each
month in advance for each month of the Term. In the event the Term shall commence or terminate on a day other than the first or last day of a calendar month, the rental for such month shall be prorated. 

 

			
	 Time Period
	 	 Monthly Rental Payments

	 6/14/2010 - 12/31/2010
	 	$7,606.43
	 1/1/2011 - 12/31/2011
	 	$7,758.56
	 1/1/2012 - 12/31/2012
	 	$7,913.73
	 1/1/2013 - 6/13/2013
	 	$8,072.01

 3.02
    Sublessee shall pay to Sublessor, without offset or deduction, 4.41% of Sublessor’s Proportionate Share of Operating Expenses (as that term is defined in the Prime Lease) under the Prime Lease. Sublessor shall invoice
Sublessee monthly for the costs and expenses specified in this paragraph 3.02 and Sublessee shall pay such costs and expenses within thirty (30) days of receipt of such invoices. 

3.03     Sublessee agrees to pay its proportionate share of “Additional Rent” (as that term is defined in
the Prime Lease and including any Annual Rent Adjustment) payable by Sublessor under the Prime Lease, and all other costs and expenses of Sublessor and Prime Landlord which are incurred in connection or associated with (A) the performance of
any of Sublessee’s obligations under this Sublease, (B) the adjustment, settlement or compromise of any insurance claims involving or arising from the Space, (C) the prosecution, defense or settlement of any litigation involving or
arising from the Space or this Sublease, in which Sublessor is the prevailing party, (D) the exercise or enforcement by Sublessor, its successors and assigns, of any of its rights under this Sublease, (E) the provision of the services
specified in Exhibit “B” attached hereto and made a part hereof (“Sublessor Services”), together with an administrative fee of 5% of the costs and expenses associated with such Sublessor Services, and (E) any other costs
associated with Sublessee’s use or occupancy of the Space or other items specifically required to be paid by Sublessee under this Sublease. Sublessor shall invoice Sublessee for the costs and expenses specified in this paragraph 3.03 and
Sublessee shall pay such costs and expenses within thirty (30) days of receipt of such invoices. 
 USE OF SPACE 

4.01     Sublessee shall use the Space for those purposes allowed in the Prime Lease and no other and at all times in
compliance with the terms of the Prime Lease. 
 CONDITION OF SPACE 

5.01     Sublessee accepts the Space in its existing condition, without representation or warranty, express or
implied, in fact or by law, and no representation, statement or warranty, express or implied, has been made by or on behalf of Sublessor as to such condition, or as to the use that may be made of said Space

 
and expressly waives, to the maximum extent permitted by law, any claim it has, may have, or ought to have against the Sublessor, based on or arising from any breach by Sublessor of those
representations and warranties set forth in this Sublease. Neither Prime Landlord nor Sublessor, nor any of Sublessor’s partners, officers, directors, shareholders, agents, employees or representatives, shall be liable to Sublessee, or any of
Sublessee’s agents, employees, servants, customers, guests, invitees, or contractors, for any injury, damage or loss to persons or property due to the condition, design, or any defect in the Space or its mechanical systems that may exist on the
effective date of this Sublease or that may subsequently occur. Sublessee, with respect to itself and its agents, employees, servants, customers, guests, invitees, and contractors, hereby expressly assumes all risks of damage to person or property,
either proximate or remote, by reason of the present or future condition of the Space. 
 MAINTENANCE / REPAIRS 

6.01     Sublessee shall maintain all parts of the Space (except those for which Prime Landlord is expressly
responsible under the terms of the Prime Lease) in good condition and repair, promptly making all necessary repairs and replacements as provided in the Prime Lease, including, but not limited to, Section 4 of the Prime Lease. 

6.02     Sublessee shall make all repairs to the Space desired by Sublessee or which are the responsibility of
Sublessor pursuant to the terms and conditions of the Prime Lease, and Sublessor shall have no obligation to perform any repairs whatsoever pursuant to this Sublease. 

6.03     Sublessee shall not make any alterations to the Space without the prior written consent of Sublessor. All
Sublessee alterations will be subject to the Prime Lease, including, but not limited to Section 5 of the Prime Lease. Sublessee shall be responsible for the costs and expenses associated with all such alterations. 

COMPLIANCE WITH PRIME LEASE 

7.01     Sublessor shall comply with all terms of the Prime Lease, and shall permit no default or breach thereunder
except to the extent relating to any acts or omissions of Sublessee. Sublessee acknowledges that Sublessor has provided Sublessee a true and correct copy of the Prime Lease. 

7.02     Relationship to Prime Lease. Sublessee hereby assumes and agrees to perform all obligations of
Sublessor as tenant under the Prime Lease to the extent and only to the extent the same relate to the Space, and Sublessee agrees to abide by and comply with all of the provisions of the Prime Lease during the Term of this Sublease, as the same
relate to the Space, except that: (i) the payment of rent by Sublessee will be replaced by the provisions of paragraph 3 of this Sublease; (ii) Sublessee shall not have any right to renew or extend the term of the Lease or expand the
Leased Premises granted to Sublessor in the Prime Lease, all parties hereby agreeing that such rights shall be exclusive to Sublessor; (iii) the value of the general commercial liability insurance policy required to be maintained by Sublessee
will be as provided in paragraph 11 of this Sublease, and (iv) Sublessee shall not have any right to any “Extension Allowance”, tenant improvement allowance, any payments due under any Profits Interest Agreement between Sublessor and
Landlord, or any other type of incentive or inducement granted to Sublessor as tenant under the Prime Lease. Except as otherwise specifically set forth in this Sublease, Sublessor expressly retains and reserves all rights and benefits applicable to
Sublessor as tenant under the Prime Lease and any Profits Interest Agreement. 
 7.03     Incorporation
of Prime Lease. Except as specifically excluded from application to Sublessee pursuant to Section 7.02 hereinabove, the provisions of the Prime Lease, to the extent that they 

 
do not conflict with specific provisions contained in this Sublease and relate to the Space are fully incorporated into this Sublease. In the event of any conflict between the provisions of the
Prime Lease and the provisions contained in this Sublease, the provisions of this Sublease will be controlling as between Sublessor and Sublessee. 

7.04     Neither Sublessor, nor any of Sublessor’s partners, officers, directors, shareholders, agents,
employees or representatives, be liable to Sublessee for any of the following: (i) any of the Prime Landlord’s obligations under the Prime Lease unless Prime Landlord fails to perform such obligations due to an uncured default by Sublessor
under the Prime Lease; (ii) any interruption in utilities or services to the Space unless caused by or resulting from the gross negligence or willful misconduct of Sublessor; (iii) any loss of or damage to any property of Sublessee or of
Sublessee’s employees, agents, contractors, customers, guests or invitees (whether by theft or otherwise), unless due to the gross negligence or willful misconduct of Sublessor, its employees, agents or contractors; or (iv) the failure of
Prime Landlord to perform any obligation of Prime Landlord under the Prime Lease unless it results from an uncured default by Sublessor under the Prime Lease; and (v) any damage or disturbance caused by others, provided that Sublessor shall
enforce the terms of the Prime Lease to the extent reasonably possible to eliminate such disturbance. Neither Sublessor nor any of Sublessor’s partners, officers, directors, shareholders, employees, agents or representatives has any personal
liability under this Sublease. The liability of Sublessor for any default by Sublessor under the terms of this Sublease will be limited to Sublessee’s actual direct, but not consequential, damages therefore, shall be limited to the amount of
Sublease Rent payable under this Sublease, and shall be recoverable solely from the equity interest of Sublessor in and to the Leased Premises and in, to and under the Prime Lease and the proceeds of any insurance required to be maintained by the
Sublessor under the Prime Lease. 
 RIGHT OF SUBLESSEE TO CURE DEFAULT 

UNDER PRIME LEASE 

8.01     Sublessor shall promptly furnish to Sublessee copies of any and all notices of default or termination under
the Prime Lease. In the event Sublessor defaults in the performance of any term or condition of the Prime Lease, Sublessee shall be entitled to cure such default, provided Sublessee notifies Sublessor of such curing simultaneously with the
performance thereof. In the event Sublessee shall so incur any expense by virtue of the curing of any such default, Sublessee shall be entitled to deduct such amount from its subsequent monthly installment or installments of rental payable to
Sublessor hereunder. 
 DEFAULT UNDER SUBLEASE 

9.01    (a) In the event Sublessee shall default in the payment of rent herein reserved, when due, and fails to cure
said default within ten (10) days after the giving of written notice thereof by Sublessor; or if Sublessee shall be in default in performing any of the terms or provisions of this Sublease other than the provision requiring the payment of rent,
and fails to cure such default within thirty (30) days after the date of receipt of written notice of default from Sublessor; or if Sublessee is adjudicated bankrupt; or if a permanent receiver is appointed for Sublessee’s property and
such receiver is not removed within thirty (30) days after written notice from Sublessor to Sublessee to obtain such removal; or if, whether voluntarily or involuntarily, Sublessee takes advantage of any debtor relief proceedings under any
present or future law, whereby the rent or any part thereof is, or is proposed to be, reduced or payment thereof deferred; or if Sublessee makes an assignment for benefit of creditors; or if Sublessee’s effects should be levied upon or attached
under process against Sublessee, not satisfied or dissolved within thirty (30) days after written notice from Sublessor to Sublessee to obtain satisfaction thereof; then, and in any of said events, Sublessor

 
at its option may (but only during continuance of such default or condition), (i) terminate this Sublease by written notice to Sublessee; whereupon this Sublease shall end, (ii) avail
itself of any remedy available to Prime Landlord under the Prime Lease, and (iii) avail itself of any remedy provided by the laws of the state in which the Space is located. Any notice provided in this paragraph 9 may be given by Sublessor, or
its attorney. Upon such termination by Sublessor, Sublessee will at once surrender possession of the Space to Sublessor and remove all of Sublessee’s effects therefrom. (b) Sublessor shall have the right, at Sublessor’s option,
without terminating this Sublease, upon Sublessee’s breaching this Sublease, to enter upon and, as Sublessee’s agent, rent the Space at the best price obtainable by reasonable effort, without advertisement and by private negotiations and
for any term Sublessor deems proper. Sublessee shall be liable to Sublessor for the deficiency, if any, between Sublessee’s rent payable hereunder and the price obtained by Sublessor on reletting. (c) All remedies granted Sublessor
hereunder shall be cumulative of and in addition to any other right or remedy given or hereafter existing in law. 
 INDEMNITY

 10.01     Sublessee hereby agrees to indemnify, defend (with counsel approved in advance in writing by
Sublessor) and hold harmless Sublessor, and Sublessor’s agents, from and against any and all claims, liability, causes of action, loss, damages, costs and expenses, including attorney’s fees and court costs, arising from (i) any
breach, violation or non-performance by Sublessee of any of the terms and provisions of the Prime Lease or this Sublease, (ii) Sublessee’s use or occupancy of the Space, or (iii) any personal or bodily injury to persons or damage to
property to the extent that such damage or injury was caused, either proximately or remotely, by any act or omission, whether negligent or not, of Sublessee or any of Sublessee’s agents, servants, employees, contractors, customers, guests, or
invitees or of any other person entering onto the Space under or with the express or implied invitation of Sublessee. Sublessee’s obligations of indemnification pursuant to this Section 10.01 will survive the expiration or earlier
termination of this Sublease. 
 INSURANCE 

11.01     Insurance. Sublessee shall provide and maintain during the Term a general commercial liability
insurance policy, with a company acceptable to Sublessor insuring against any and all liability arising out of the condition, use, alteration or maintenance of the Space and the Leased Premises by Sublessee or Sublessee’s agents, employees,
contractors, guests and invitees, and covering the contractual liability referred to in paragraph 10 of this Sublease, having a combined single limit for both bodily injury and property damage in an amount no less than ONE MILLION AND NO/100 DOLLARS
($1,000,000.00). In addition, Licensee shall maintain workers’ compensation insurance in any required statutory amounts covering all persons employed by Sublessee in connection with anything done on or about the Space or Leased Premises. Any
and all insurance required to be maintained by Sublessee hereunder must: (i) name Sublessor and Prime Landlord as additional loss payees and additional insureds; (ii) contain a waiver of subrogation applicable to Sublessor and Prime
Landlord; and (iii) require at least thirty (30) days’ advance written notice to Sublessor prior to the cancellation or modification. Sublessee shall furnish Sublessor with a certificate of insurance evidencing such coverage prior to
taking occupancy under this Sublease. 
 ENTIRE AGREEMENT 

12.01     This Sublease, including the Prime Lease, contains the entire agreement of Sublessor and Sublessee, and no
representations, warranties, inducements, promises or agreements, oral or written, between the parties not embodied herein shall be of any force or effect. 

 SUCCESSORS 

13.01     The within Sublease shall inure to the benefit of Sublessor, Sublessee, and their respective heirs,
successors and assigns. 
 13.02     Except upon the prior written consent of Sublessor, Sublessee will not
voluntarily or involuntarily transfer, convey, assign, mortgage or pledge this Sublease or any right or interest of Sublessee hereunder, nor sublet any part of the Space, nor permit the use or occupancy of any portion of the Space by anyone other
than Sublessee. 
 REPRESENTATIONS AND WARRANTIES 

14.01     Sublessor represents and warrants: (a) Sublessor has provided Sublessee with a true and complete copy
of the Prime Lease; (b) the Prime Lease is in full force and effect; (c) the Prime Lease has not been modified or amended in any manner, except as expressly mentioned herein; (d) the term of said Prime Lease expires on
November 30, 2023; (e) Sublessor has made no assignment, sublease, hypothecation or transfer of the Space under the Prime Lease. 

14.02     Sublessee represents and warrants that (i) Sublessee is a corporation existing and in good standing
under the laws of Delaware and is duly authorized to enter into this Sublease and (ii) the officer executing this Sublease on behalf of Sublessee is duly authorized to do so and to bind the Sublessee hereto. 

CONSENT OF PRIME LANDLORD 

15.01     This Sublease is subject to and conditioned upon the consent of the Prime Landlord. 

ACCESS TO SPACE 

16.01     Sublessor shall be permitted access to the Space at all reasonable times, upon advance notice, or in any
time in case of an emergency, to inspect the Space or to show the Space to other potential sublessees. Sublessor shall use commercially reasonable efforts to conduct its activities permitted hereunder in a manner which will not unreasonably
inconvenience, annoy or disturb Sublessee in its use and occupancy of the Space. 
 HOLDOVER 

17.01     Sublessee shall not be permitted to hold over after expiration or earlier termination of the Prime Lease,
and Sublessee shall indemnify Sublessor from and against any and all loss, cost, or damage resulting therefrom. 
 SIGNATURES
APPEAR ON NEXT PAGE 

 IN WITNESS WHEREOF, the parties hereto have caused this Sublease to be duly executed by
their proper officers and their respective corporate seals to be affixed hereunto as of the day and year first above written. 
  

													
	 SUBLESSOR:

PPD DEVELOPMENT, LP
	  	 SUBLESSEE

FURIEX PHARMACEUTICALS, INC.
	  	
		  	By: PPD GP, LLC	  		  		  		  	
		  	Its: General Partner	  		  		  		  	
							
		  	 BY:
	  	 /s/ David L. Grange
	  		  	 BY:
	  	 /s/ June Almenoff
	  	
		  	 NAME:
	  	David L. Grange	  		  	 NAME:
	  	June Almenoff, M.D., Ph.D.	  	
		  	 ITS:
	  	Chief Executive Officer	  		  	 ITS:
	  	President and CMO	  	

 Exhibit A 

Space 

The Space consists of 4,657 square feet and is commonly known as Suite 150, 3900 Paramount 

Parkway, Morrisville, Wake County, North Carolina 27560. 

 Exhibit B 

Sublessor Services 

WAN Connection 
 Sublessor shall provide
Sublessee employees located in the Space with access to Sublessor’s WAN connection. 
 Sublessee shall send requests to Sublessor for
access to Sublessor’s WAN connection that shall specify the name of the Sublessee employee. Sublessor shall grant the Sublessee employee with the non-exclusive, non-transferable limited right to use Sublessor’s WAN connection solely to
(i) access any e-mail services, document collaboration and file sharing services (if necessary) provided by Sublessor pursuant to that certain Transition Services Agreement between Sublessor and Sublessee, and (ii) facilitate general
access to the internet for Sublessee business matters. All such Sublessee employees shall be subject to Sublessor’s policies regarding internet usage and other reasonable rules and restrictions as Sublessor may implement from time to time.
Sublessor shall have no liability to Sublessee in the event the WAN connection is unavailable to any Sublessee employee or for any downtime of the WAN connection, including, but not limited to, any downtime resulting from the maintenance of the WAN
connection. 
 Sublessor may temporarily suspend or terminate a Sublessee employee’s access to the Sublessor WAN connection immediately
upon notice to Sublessee for any period of time in which such Sublessee employee breaches Sublessor’s policies regarding internet usage or any other reasonable rules and restrictions as Sublessor may implement from time to time until such time
as Sublessee provides Sublessor with assurances and security measurers deemed acceptable by Sublessor, in its sole discretion, as to the prevention of future breaches. Sublessor shall give written notice to Sublessee of any such breach and Sublessee
shall promptly undertake action to cure any such breach. 
 Information Technology Helpdesk Support Services 

With respect to those Sublessee employees with access to the WAN connection, the IT department of Sublessor shall provide substantially the same level of
helpdesk support services that is being delivered to Sublessor employee end users as of the effective date of this Sublease. These services include both helpdesk phone support, desk-side support, and warranty parts replacement for standard
equipment. Additional costs will be added for non-standard and non-warranty equipment on a per incident basis. In the event the Sublessee elects to upgrade or change Sublessee IT systems so that they are different than Sublessor IT systems,
Sublessor will use reasonable efforts to support such Sublessee IT systems; however, the parties acknowledge that Licensor may not be able to provide substantially the same level of helpdesk support services provided to Sublessor employees using
Sublessor IT systems. 
 Xerox Document Services 

Sublessee may use the “docutech” services provided by Xerox at the Leased Premises, which may include copying, binding, and publishing services
(“Xerox Services”). Sublessee’s use of the Xerox Services shall be subject to the reasonable terms and conditions specified by Xerox and/or Sublessor. Sublessee shall place orders for the Xerox Services directly with the Xerox
representatives located at the Leased Premises. Xerox will invoice Sublessor for the costs and expenses of the Xerox Services provided to Sublessee and Sublessor shall invoice Sublessee for such costs and expenses. Xerox Services shall be deemed to
be “Sublessor Services” for purposes of this Sublease. 
 Compensation 

In consideration of the Sublessor Services, Sublessee shall compensate Sublessor (i) on a time and materials basis using hourly rates calculated in
accordance with this paragraph, and (ii) SEVENTY-FIVE DOLLARS AND NO/100 ($75.00) per month for each Sublessee employee with access to Sublessor’s WAN connection. The Sublessor hourly rates shall be calculated based on the sum of:
(i) the gross annual pre-tax salary of the Sublessor or Sublessor affiliate employee providing the Sublessor Services, divided by 2080 hours, and (ii) a charge that includes fringes, benefits, facilities, IT, equipment and supplies
associated with such Sublessor or Sublessor affiliate employee to be determined by Sublessor in its reasonable discretion. In addition, Sublessee shall also reimburse Sublessor for the out-of-pocket expenses incurred in connection with providing the
Sublessor Services, including, but not limited to, the costs and expenses associated with the Xerox Services.

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