Document:

EX-10.2.2

 Exhibit 10.2.2 
 SECOND
AMENDMENT TO FACILITY AGREEMENT 
 SECOND AMENDMENT TO FACILITY AGREEMENT (this “Amendment”), dated as of December 17,
2015, by and among KEMPHARM, INC., a Delaware corporation (the “Borrower”) and, DEERFIELD PRIVATE DESIGN FUND III, L.P. (the “Lenders” and together with the Borrower, the “Parties”). 

RECITALS: 
 A. Borrower and Lenders have
entered into that certain Facility Agreement dated as of June 2, 2014 (as the same may be amended, modified, restated or otherwise supplemented from time to time, the “Facility Agreement”). 

B. The Parties desire to amend the Facility Agreement on the terms set forth herein. 

NOW, THEREFORE, in consideration of the mutual agreements contained herein, the Parties agree as follows: 

1. Defined Terms. Capitalized terms used herein which are defined in the Facility Agreement, unless otherwise defined herein, shall have the
meanings ascribed to them in the Facility Agreement. The Recitals to this Amendment are incorporated herein in their entirety by this reference thereto. 

2. Amendments to Facility Agreement. Upon the satisfaction of the conditions set forth in Section 3 of this Amendment the Facility Agreement
is hereby amended as follows: 
 a. Section 5.2(g) of the Facility Agreement is hereby deleted in its entirety and the following is inserted in
substitution therefor: 
 “(g) Intentionally Deleted.” 

b. Section 1.1 of the Facility Agreement is hereby amended to add the following new defined term: 

“Restricted Lender” means (i) the initial Lenders party to this Agreement and their Affiliates and (ii) any
assignee of any interest in a Note that notifies the Borrower in writing that it wishes to be deemed a Restricted Lender. 
 c. Section 5.1 of
the Facility Agreement is hereby amended by adding the following new provision to the end of such Section: 
 Notwithstanding anything set forth in
this Agreement to the contrary, if any notice or information required to be furnished contains material non-public information (any such notice or information, a “Public Notice”), the Borrower, instead of delivering such Public
Notice to all the Lenders shall promptly deliver such Public Notice to each Lender that is not a Restricted Lender and promptly notify each Restricted Lender in writing or orally that Borrower desires to deliver to such Restricted Lender a Public
Notice. Within five Business Days of receipt of such notification the Restricted Lender may either (i) refuse the delivery of such Public Notice, in which case Borrower’s obligations with respect to such Public Notice and such Restricted
Lender shall be deemed satisfied, or (ii) enter into good faith negotiations with the Parent to agree to the time period within which the Borrower will make the material non-public information contained in such Public Notice publicly available
by including such information in a filing with the SEC. If Borrower and such Restricted Lender agree on such time period, the Borrower shall promptly deliver to such Restricted Lender such Public Notice and shall cause Parent to include the
applicable material non-public information in a public filing with the SEC within such agreed to time period. The failure to agree on such time period will be deemed to satisfy Borrower’s obligations with respect to such Public Notice and such
Restricted Lender. 

  
 1. 

 3. Conditions Precedent. The effectiveness of this Amendment is subject to the following conditions
precedent: 
 a. Delivery of Documents. The Borrower and the Lenders shall each execute and deliver this Amendment. 

b. Performance; No Default. The Borrower shall have performed and complied with all material agreements and conditions contained in the Facility
Agreement and the other Loan Documents to be performed by or complied with by the Borrower prior to the date hereof. 
 4. Representations and
Warranties. The Borrower hereby represents and warrants to Lenders that, except as set forth in the disclosure schedules attached to and made a part of this Amendment: 

a. The execution, delivery and performance by the Borrower of this Amendment (i) are within the Borrower’s corporate powers, (ii) have
been duly authorized by all necessary action pursuant to its Organizational Documents, (iii) except for filings with the Securities Exchange Commission, require no further action by or in respect of, or filing with, any Government Authority,
and (iv) do not violate, conflict with or cause a breach or a default under any provision of applicable law or regulation or of Borrower’s Organizational Documents or of any agreement, judgment, injunction, order, decree or other
instrument binding upon Borrower, except to the extent such violation, conflict, breach or default would not individually or in the aggregate reasonably be expected to have a Material Adverse Effect; 

c. This Amendment constitutes the valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, or similar laws relating to the enforcement of creditor’s rights generally and by general equitable principles; and 

d. No Event of Default exists. 

  
 2. 

 5. No Further Amendments; Ratification of Liability. Except as amended hereby, the Facility
Agreement and each of the other Loan Documents shall remain in full force and effect in accordance with their respective terms. The Lenders’ agreement to the terms of this Amendment or any other amendment of the Facility Agreement or any other
Loan Document shall not be deemed to establish or create a custom or course of dealing among Borrower, Lenders, Assignees, or any of them. This Amendment, together with the other Loan Documents, contains the entire agreement among Borrower and
Lenders contemplated by this Amendment. 
 6. Legal fees and Expenses. The Borrower shall reimburse Lenders for all reasonable out-of-pocket
costs, fees and expenses, including reasonable attorneys’ fees and expenses, incurred by Lenders in connection with the negotiation, documentation and closing of this Amendment. 

7. Incorporation by Reference. The provisions of Article 6 of the Facility Agreement are incorporated herein by reference mutatis
mutandis. 
 [Remainder of Page Intentionally Left Blank, signature page follows] 

  
 3. 

 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set forth above. 

 

			
	 BORROWER:
  

KEMPHARM, INC.

		
	By:	 	 /s/ Travis C. Mickle

	Name:	 	Travis C. Mickle
	Title:	 	President
	
	 LENDERS:
  

DEERFIELD PRIVATE DESIGN FUND III, L.P.

		
	By:	 	Deerfield Mgmt. III, L.P., its General Partner
	By:	 	J.E. Flynn Capital III, LLC, its General Partner
		
	By:	 	 /s/ David J. Clark

	Name:	 	David J. Clark
	Title:	 	Authorized Signatory

  
 4.Exhibit

Exhibit 10.1

SHARE AWARD AGREEMENT

ELLINGTON RESIDENTIAL MORTGAGE REIT

2013 EQUITY INCENTIVE PLAN 
([Name])
[   ] shares
[date]

THIS SHARE AWARD AGREEMENT (the “Agreement”), dated as of the [  ] day of [       ], 20__, governs the Share Award granted by Ellington Residential Mortgage REIT, a Maryland real estate investment trust (the “Company”), to [       ] (the “Participant”), in accordance with and subject to the provisions of the Company’s 2013 Equity Incentive Plan (the “Plan”).  A copy of the Plan has been made available to the Participant.  All terms used in this Agreement that are defined in the Plan have the same meaning given them in the Plan.

1.    Grant of Share Award.  In accordance with the Plan, and effective as of [        ] [  ], 20__ (the “Date of Grant”), the Company granted to the Participant, subject to the terms and conditions of the Plan and this Agreement, a Share Award of [    ] Common Shares (the “Share Award”).

2.    Vesting.  The Participant’s interest in the Common Shares covered by the Share Award shall become vested and nonforfeitable to the extent provided in paragraphs (a), (b) and (c) below.

(a)    Continued Service with the Company.  The Participant’s interest in [        ] of the Common Shares covered by the Share Award shall become vested and nonforfeitable on [             ] if a Share Forfeiture Event (as defined below) has not occurred from the Date of Grant until such date.  A “Share Forfeiture Event” occurs if (i) Participant gives notice of the intention to resign his or her position with the Company, or (ii) a “Forfeiture Event” (as defined in Participant’s employment agreement with the Company, Ellington Residential Mortgage Management LLC (the “Manager”), or any affiliate of the Manager as applicable) occurs or the Company becomes aware that a Forfeiture Event occurred.

(b)    Change in Control.  The Participant’s interest in all of the Common Shares covered by the Share Award (if not sooner vested), shall become vested and nonforfeitable on a Control Change Date if a Share Forfeiture Event has not occurred from the Date of Grant until the Control Change Date.

(c)    Death or Disability.  The Participant’s interest in all of the Common Shares covered by the Share Award (if not sooner vested), shall become vested and nonforfeitable on the date that the Participant no longer provides services to the Company if (i) the Participant’s services end on account of the Participant’s death or permanent and total disability (as defined in Code section 22(e)(3)) and (ii) a Share Forfeiture Event has not occurred from the Date of Grant until the date of such cessation.

Except as provided in this Section 2, any Common Shares covered by the Share Award that are not vested and nonforfeitable on or before the date that a Share Forfeiture Event occurs shall be forfeited on the date that a Share Forfeiture Event occurs.

Exhibit 10.1

3.    Transferability.  Common Shares covered by the Share Award that have not become vested and nonforfeitable as provided in Section 2 cannot be transferred.  Common Shares covered by the Share Award may be transferred, subject to the requirements of applicable securities laws, after they become vested and nonforfeitable as provided in Section 2.

4.    Shareholder Rights.  On and after the Date of Grant and prior to their forfeiture, the Participant shall have all of the rights of a shareholder of the Company with respect to the Common Shares covered by the Share Award, including the right to vote the shares and to receive, free of all restrictions, all dividends declared and paid on the shares.  Notwithstanding the preceding sentence, the Company shall retain custody of any certificates evidencing the Common Shares covered by the Share Award until the date that the Common Shares become vested and nonforfeitable and the Participant hereby appoints the Company’s Secretary as the Participant’s attorney in fact, with full power of substitution, with the power to transfer to the Company and cancel any Common Shares covered by the Share Award that are forfeited under Section 2.

5.    No Right to Continued Service.  The grant of the Share Award does not give the Participant any rights with respect to continuing employment.

6.    Governing Law.  This Agreement shall be governed by the laws of the State of Maryland except to the extent that Maryland law would require the application of the laws of another State.

7.    Conflicts.  In the event of any conflict between the provisions of the Plan as in effect on the Date of Grant and this Agreement, the provisions of the Plan shall govern.  All references herein to the Plan shall mean the Plan as in effect on the Date of Grant.

8.    Participant Bound by Plan.  The Participant hereby acknowledges that a copy of the Plan has been made available to the Participant and the Participant agrees to be bound by all the terms and provisions of the Plan.

9.    Binding Effect.  Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon the Participant and his or her successors in interest and the Company and any successors of the Company.

[signature page follows]

IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as of the date first set forth above.

ELLINGTON RESIDENTIAL MORTGAGE REIT        [PARTICIPANT]

By:__________________________                _________________________

Title:_________________________

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