Document:

exv10w55

 

EXHIBIT 10.55

NOTE: Certain portions of this Advisory Services Agreement, which are
identified by the symbol “[*    *]”, have been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

ADVISORY SERVICES AGREEMENT

     This Agreement (the “Agreement”) is entered into as of the 28th day of
April, 2003 (the “Effective Date”) by and among Esperion Therapeutics, Inc., a
Delaware corporation (“Esperion”), Scheer & Company, Inc., a Connecticut
corporation, and David I. Scheer (“Mr. Scheer”).

     WHEREAS, the parties hereto desire, among other things, to set forth the
scope of the advisory services that Esperion may, from time to time, request be
provided to Esperion by Scheer & Company, Inc. and Mr. Scheer, and the
remuneration therefor; and

     WHEREAS, the parties hereto acknowledge that they may have existing
express or implied agreements, arrangements or understandings with respect to
the subject matter of this Agreement, which may include, among other things,
express or implied agreements, arrangements or understandings relating to an
advisory relationship among the parties, a transaction fee relating to a
merger, acquisition, licensing arrangement or other similar financial
transaction (a “Transaction Fee”), or transactions involving Esperion, which
shall be superceded by the terms of this Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual promises
set forth in this Agreement, the parties agree as follows:

	1.	 	Advisory Services.

     A.     From time to time through the date that is 12 months after the
Effective Date, Esperion may request that Scheer & Company, Inc. provide
general strategic advisory services to Esperion, which advisory services may
include, but not be limited to, general issues of corporate strategy and
business development, licensing arrangements, research and development funding,
strategic alliances, mergers, acquisitions, commercial agreements and any other
corporate matters with respect to which Esperion may request assistance. All
Esperion requests for advisory services under this Agreement shall be made in
writing by Esperion’s President and Chief Executive Officer and acknowledged by
Scheer & Company, Inc. Scheer & Company, Inc. agrees that it will make itself
available, at the request of Esperion at reasonable times upon reasonable prior
notice, to provide the foregoing advisory services. Esperion is under no
obligation to request any advisory services from Scheer & Company, Inc.
pursuant to this Agreement.

     B.     Scheer & Company, Inc. shall make available professional resources as
necessary to service the foregoing advisory relationship. The principal
contact for this advisory relationship shall be Mr. Scheer who shall make himself available for services
under this Agreement.

     C.     As compensation for the foregoing advisory services, Esperion shall pay
Scheer & Company, Inc. the following:

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(1)  a retainer of $30,000 (the “Retainer”), plus reasonable expenses related to
the provision of any such requested advisory services. Esperion has no
obligation to pay any additional retainer fees under this Section 1.C. upon
payment of the Retainer.

(2)  the sum of $60,000 (the “Advisory Fee”), which sum represents all amounts
due and owing Scheer & Company, Inc. as of the date hereof for previously
provided advisory services, plus expenses in the amount of $19,593.77 that were
incurred in connection with such services;

(3)  [*     *] and

There are no expenses incurred prior to the date hereof for which Mr. Scheer
has not yet received reimbursement in connection with his services as a
director of Esperion.

Esperion shall pay undisputed amounts of invoices for expense reimbursements in
Item (1) of this Section 1.C. within 30 days of receipt of such invoices.
Esperion and Scheer & Company, Inc. shall cooperate to resolve any disputed
invoice items as promptly as practical, and Esperion shall pay the mutually
agreed upon amounts for the disputed items as promptly as practical. Invoices
shall be delivered to Esperion promptly after the end of the month in which
expenses are incurred.

Esperion shall pay the Retainer, the Advisory fee and the expense amounts under
Items (2) and (3) of this Section 1.C. by wire, in accordance with wiring
instructions provided by Scheer & Company, Inc. to Esperion, upon final
execution of this Agreement.

2.     Transaction Fees. In the event that Esperion completes, or executes a
definitive agreement relating to, a merger, acquisition, licensing arrangement
or other similar financial transaction with [* *] or any of its successors,
affiliates or subsidiaries (together, “[* *]”) on or before the date that is 24
months after the Effective Date, then Esperion shall pay to Scheer & Company,
Inc. a Transaction Fee in an amount equal to 0.85% of the “Consideration” (as
such term is hereinafter defined). For purposes of this Section 2,
“Consideration” means the value of all cash payments received by Esperion
pursuant to the agreement related to such merger, acquisition, licensing
agreement or other similar financial transaction, including upfront cash,
equity investment, any amounts to fund research and development, licensing fees
and milestone fees (whether or not such milestone fees are creditable toward
future royalties); provided, however, that Consideration shall not include any
royalties of any kind received by Esperion. Payment of such fee shall be
contingent upon receipt of payment from [* *] and shall be made within 30 days
of receipt by Esperion of the applicable payment from [* *].

     Each of Esperion and Mr. Scheer (individually and on behalf of Scheer &
Company, Inc.) hereby represent for the benefit of the other party as of the
Effective Date that to its or his actual knowledge, there has been no material
adverse change [*      *].

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3.     Equity Awards. Esperion shall effect an amendment to each of the
outstanding equity option grants existing with Mr. Scheer, and take such steps
as are necessary to modify the option agreements between Esperion and Mr.
Scheer such that:

     A.     The vesting of the options originally granted on July 17, 2000 and May
22, 2001 at strike prices of $9.00 and $5.69 per share, respectively, and each
relating to 15,000 shares shall be accelerated so that all previously unvested
shares shall become fully vested as of the Effective Date and the expiration
period shall be adjusted so that Mr. Scheer shall have the right to exercise
such options until the date that is 12 months after the Effective Date.

	4.	 	    [*     *].

     A.     [*     *].

     B.     [*     *].

     C.     [*     *].

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     D.     [*     *].

     E.     Each of Esperion and Scheer & Company, Inc. represent that they are
authorized to execute this Agreement. Esperion represents that the committee
of its independent directors has approved the execution of this Agreement
pursuant to the provisions of Section 144 of the Delaware General Corporation
Law.

5.     Confidentiality of this Agreement. In consideration of the obligations of
the parties under this Agreement, the parties hereto agree that the terms of
this Agreement (other than those terms relating to advisory services and a
Transaction Fee) shall be and remain confidential, and shall not be disclosed
by any party hereto to any other party other than immediate family members,
attorneys or accountants (provided that such persons agree to keep such
information confidential), and except as may be required by applicable law or
regulation.

6.     Governing Law. This Agreement shall be interpreted and applied under the
laws of the State of Delaware.

7.     Notices. Any notice or communication required or permitted hereunder shall
be in writing and either delivered personally or telecopied or sent by
overnight courier, or by certified or registered mail, postage prepaid, and
shall be deemed to be given, dated and received when so delivered personally or
by courier or telecopied, or, if mailed, three (3) business days after the date
of mailing to the following respective address or telecopy number, or to such
other address or addresses as such person may subsequently designate by written
notice given hereunder:

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	 	if to Esperion, to:

Roger Newton, Ph.D., President and Chief Executive Officer

Esperion Therapeutics, Inc.

3621 South State Street

695 KMS Place

Ann Arbor, Michigan 48108

Facsimile: 734-622-8333

	 	if to Scheer & Company, Inc., to:

Scheer & Company, Inc.

250 W. Main

Branford, CT 06405

Facsimile: 203-481-4164

	 	if to Mr. Scheer, to:

David I. Scheer

c/o Scheer & Company, Inc.

250 W. Main

Branford, CT 06405

Facsimile: 203-481-4164

8.     Entire Agreement. This Agreement constitutes the entire agreement, and
supersedes all prior agreements, arrangements and understandings, both express
and implied, among the parties, with respect to the subject matter hereof,
including, but not limited to, any express or implied agreements pertaining to
advisory relationships, a Transaction Fee or transactions involving Esperion,
notwithstanding any language to the contrary in any such agreements,
arrangements or understandings, except (1) each of the stock option agreements
by and between Esperion and Mr. Scheer relating to Esperion’s equity option
grants to Mr. Scheer, except to the extent such award agreements shall be
modified pursuant to Section 3 of this Agreement and (2) the Confidential
Disclosure Agreement dated May 2, 2001 between Scheer & Company, Inc. and
Esperion. This Agreement may only be amended, modified or supplemented by a
written agreement signed by all parties hereto.

9.     Severability. If any term or other provision of the Agreement is invalid,
illegal or unenforceable, all other provisions of this Agreement shall remain
in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially
adverse to any party.

10.     Waiver. No waiver by any party to this Agreement of any breach or default
shall be effective unless the same shall be in writing and signed. No waiver
by any party of any breach or default of any term or provisions of this
Agreement shall be construed to constitute a waiver of, or consent to, the
present or future breach or default of that or any other term or provision
hereof.

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11.     Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of the parties hereto.

12.     Costs of Enforcement. In the event it becomes necessary for a party to
take legal action to enforce its rights under this Agreement, the party
prevailing in such action shall be entitled to an award including the costs and
expenses (including reasonable attorneys’ fees) incurred in connection with
such action.

13.     Recitals. The recitals form a substantive part of this Agreement.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by
or on behalf of each of the parties hereto as of the date first above written.

	 	 	 	 	 
	 	 	ESPERION THERAPEUTICS, INC.,

A Delaware Corporation
	 	 	 	 	 
	 	 	
By:
	 	/s/ Roger S. Newton

Roger S. Newton, Ph.D., its Pres. & CEO
	 
	 	 	 	 	 
	 
	 	 	SCHEER & COMPANY, INC.,

A Connecticut Corporation
	 	 	 	 	 
	 
	 	 	
By:
	 	/s/ David I. Scheer

David I. Scheer, its President
	 
	 	 	 	 	 
	 
	 	 	DAVID I. SCHEER
	 	 	 	 	 
	 
	 	 	/s/ David I. Scheer

David I. Scheer

7exv10w56

 

EXHIBIT 10.56

	 	 	 
		 	
Esperion Therapeutics, Inc.

3621 S. State St.

695 KMS Place

Ann Arbor, MI 48108
	 	 	 
	Pathways to new medicines	 	
Tel 734.332.0506

Fax 734.332.0516

June 4, 2003

Dr. Adeoye Y. Olukotun, M.D., M.P.H, F.A.C.C.

66 Witherspoon St. #355

Princeton, NJ 08542

Dear Oye,

     On behalf of Esperion Therapeutics, Inc. (the “Company”), we are pleased
to offer you a position with the Company. The following is an outline of the
terms of this offer:

	1.	 	The position offered is that of Senior Vice President of Clinical and
Regulatory and Chief Medical Officer.
	 
	2.	 	You shall be paid an initial monthly salary of $25,000 (for an average 4
day per week commitment to Esperion) plus a bonus of up to 25% of base
salary. The bonus for the first year of employment will be pro-rated
based upon the portion of the year which you are employed by Esperion.
The right to receive a bonus for the first year of employment or portion
thereof is dependent on continued employment during that period. The
magnitude of the bonus, if any, will be determined, based upon an annual
performance review that will evaluate your achievement of a series of
mutually agreed upon performance objectives/milestones. A proposed series
of objectives/milestones will be developed among us.
	 
	3.	 	A benefits package will be provided to you, which is equivalent to that
offered to other similarly situated employees within the Company.
	 
	4.	 	Subject to meeting eligibility requirements and the approval of the
Compensation Committee of our Board of Directors, we will grant you an
option to purchase up to 200,000 shares of the Company’s common stock
under one of the Company’s equity compensation plans. The options will
vest ratably over a period of two (2) years (1/8 per quarter), have a
strike price equal to the fair market value on the date of grant and must
be approved by the Compensation Committee of the Board of Directors. The
terms and conditions of the option will be set forth in a Stock Option
Agreement that you will be required to execute.

 

 

	5.	 	After 6 months of continuous satisfactory employment with Esperion, in
the event that your employment with the Company is terminated by the
Company for reasons other than cause, you will be provided a severance
package of six (6) months of salary, with continuation of benefits during
this period, excluding the items noted in Section 7 below. In the event
that your employment with the Company is terminated due to death or
“permanent and total disability” (as such term may be defined by the
Company’s insurer) the company will provide accelerated vesting such that
25% of your yet unvested stock options will immediately vest. If you
terminate your employment with the Company voluntarily or if your
employment is terminated by the Company for cause, you will forfeit the
severance package, as well as any of your unvested stock options. With
respect to any vested options, in the event that you voluntarily terminate
your employment with the Company, you will have 90 days to exercise these
options, or otherwise they will be forfeited.
	 
	6.	 	You will be asked to execute a standard confidentiality and assignment
agreement, as well as a standard non-compete agreement. You will be
expected to comply with the Company’s insider trading policy.
	 
	7.	 	Esperion will provide you certain relocation and commuting benefits.
During the first twelve (12) months of your employment with Esperion, and
renewable annually by mutual agreement thereafter, we will cover all of
your reasonable costs (including imputed taxes) of commuting to/from
Esperion. We will provide you an initial commuting allowance of $75,000,
paid $18,750 at the beginning of each quarter after the start of your
employment with Esperion, and to be used by you for weekly travel to/from
Esperion, a furnished apartment in Ann Arbor, a leased automobile in Ann
Arbor, automobile insurance, airport parking, gasoline, and related
commuting incidentals. The commuting allowance amount will be reviewed at
regular quarterly intervals and by mutual agreement can be modified.

     If the terms of this offer are acceptable to you, please so indicate by
executing in the space provided below and fax to 734-995-1814, as well as mail
(an original copy) to the Company. Please respond to this offer within two
weeks from the date hereof.

     Welcome to Esperion Therapeutics! We look forward to working with you to
bring new medicines to a world of unmet medical needs.

     Sincerely,

	 	 	 
	/s/ Roger S. Newton

Roger S. Newton

President and Chief Executive Officer	 	
/s/ Timothy M. Mayleben

Timothy M. Mayleben

Chief Operating Officer & CFO

AGREED AND ACCEPTED:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/
Adeoye Y. Olukotun, M.D.
	 	 	 	6/4/03	 	 	 	 	 
	

	 	 	 	 
	1
	 	ADEOYE Y. OLUKOTUN, M.D.	DATE	 	 	 	 

CC: S. Landauer

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