Document:

ccxi-ex102_16.htm

 

Exhibit 10.2

RIGHT TO INVEST AGREEMENT

 

THIS RIGHT TO INVEST AGREEMENT (this “Agreement”) is made as of January 8, 2020, by and between ChemoCentryx, Inc., a Delaware corporation (“ChemoCentryx”) and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as a Lender (in such capacity, the “Lender”).

 

RECITALS

 

A.ChemoCentryx and Lender have entered into that certain Loan and Security Agreement, among ChemoCentryx, Lender and certain other parties, dated as of the date hereof and as amended and/or restated and in effect from time to time (the “Loan Agreement”), and

 

B.As a condition to the closing of the transactions contemplated by the Loan Agreement, ChemoCentryx agreed to grant to Lender and its affiliates (each, a “Hercules Purchaser”, and collectively, the “Hercules Purchasers”) a conditional right (the “Right to Invest”) to participate in any Subsequent Financing (as defined below) in accordance with the terms and conditions of this Agreement, and herein.

C.ChemoCentryx and Hercules desire to set forth the terms of the Right to Invest

NOW, THEREFORE, in consideration of the agreements and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.Right to Invest.  The Hercules Purchasers shall have the right, in their discretion, to participate in any closing of any Subsequent Financing and purchase up to a maximum aggregate amount of Three Million Dollars ($3,000,000) of Subsequent Financing Securities; provided that with respect to any public offering of ChemoCentryx, ChemoCentryx agrees to use commercially reasonable efforts to provide the Hercules Purchasers with the opportunity to invest in each such Subsequent Financing if it is lawful to do so (or if the Subsequent Financing is an underwritten public offering pursuant to a registration statement under the Securities Act of 1933, as amended (a “Registered Offering”), to use commercially reasonable efforts to cause the underwriters for such offering to offer the Hercules Purchasers an allocation of securities in such offering), on the same terms, conditions and pricing afforded to other investors participating in such Subsequent Financing.  Each Hercules Purchaser purchasing Subsequent Financing Securities shall be an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”).

 

2.Terms.  The purchase by each Hercules Purchaser of Subsequent Financing Securities in any Subsequent Financing shall be made, subject to the provisions of this Agreement (and subject to Lender’s rights set forth in the Loan Agreement), upon the same terms and conditions (including, without limitation, price) as purchases by the other investor purchasers of Subsequent Financing Securities therein, and each such Hercules Purchaser shall execute the definitive stock or securities purchase agreement, investor rights agreement, registration rights agreement, stockholders agreement, voting agreement and other agreements and documents (collectively, the “Operative Documents”) executed by such other investor purchasers in connection with such Subsequent Financing.

1

 

 

3.Notice Requirement; Exercise.  ChemoCentryx shall give Lender not less than five (5) business days’ written notice prior to the anticipated closing of each Subsequent Financing summarizing the principal terms and conditions of such Subsequent Financing (including, without limitation, price and the potential principal institutional investor purchasers), and shall provide such drafts and definitive copies of the Operative Documents and other documents and information in connection with such Subsequent Financing as are provided to the other investor purchasers or prospective investor purchasers of Subsequent Financing Securities therein.  Notwithstanding the foregoing, Lender hereby acknowledges that it may not be possible to provide the aforementioned five (5) business days’ written notice in which case ChemoCentryx shall provide commercially reasonable notice to Lender.  Any Hercules Purchaser may exercise its purchase right hereunder by delivering written notice thereof to ChemoCentryx no later than the later to occur of (a) twenty-four (24) hours prior to such anticipated closing, and (b) forty-eight (48) hours after Lender’s actual receipt of such ChemoCentryx notice (or, if such 48th hour falls on a Saturday, Sunday or legal holiday, by not later than 1:00 PM Pacific time on the first business day following such 48th hour).  The Operative Documents and other materials and information provided by ChemoCentryx to Hercules Purchasers or Lender in connection with each Subsequent Financing shall be held and treated by each such person in confidence in accordance with the provisions of Section 11.12 of the Loan Agreement.

 

4.Term.  This Agreement, and all rights and obligations hereunder, shall expire on the earliest to occur of (a) expiration or other termination of the Loan Agreement, (b) as of immediately prior to the consummation of a Merger Event (as defined below), or (c) the closing of the purchase of Subsequent Financing Securities in any amount by any one or more Hercules Purchasers in a Subsequent Financing pursuant to the exercise of such Hercules Purchasers’ rights hereunder. As used herein, “Merger Event” means any of the following:  (i) a sale, lease or other transfer of all or substantially all assets of ChemoCentryx, (ii) any merger or consolidation involving ChemoCentryx in which ChemoCentryx is not the surviving entity or in which the outstanding shares of ChemoCentryx’s capital stock are otherwise converted into or exchanged for shares of capital stock or other securities or property of another entity, or (iii) any sale by holders of the outstanding voting equity securities of ChemoCentryx in a single transaction or series of related transactions of shares constituting a majority of the outstanding combined voting power of ChemoCentryx.

 

5.Definitions: As used herein:

 

	
 
	
a.
	
“Subsequent Financing” means the sale and issuance by ChemoCentryx on or after the date hereof, in a single transactions or series of related transactions and whether or not registered under the Act, of shares of its common stock, convertible preferred stock or other equity securities (or instruments exercisable for or convertible into shares of common stock, convertible preferred stock or other equity securities) to one or more investors for cash in an amount greater than $30,000,000, for financing purposes in an offering that is broadly marketed to multiple investors, other than sales effected pursuant to an At-the-Market-Offering. As used herein, an “At-the-Market-Offering” means sales by ChemoCentryx of shares of its capital stock that are (i) offered on a delayed or continuous basis under Rule 415 promulgated under the Act pursuant to an effective registration statement on Form S-3 under the Act, and (ii) sold from time to time at prevailing market prices through a designated broker-dealer pursuant to a written agreement between ChemoCentryx and such broker-dealer.

2

 

 

	
 
	
b.
	
“Subsequent Financing Securities” means, with respect to any Subsequent Financing, the class and series of common stock, convertible preferred stock or other equity security of ChemoCentryx (or instruments exercisable for or convertible into shares of common stock, convertible preferred stock or other equity securities) sold and issued by ChemoCentryx to the investor purchasers in such Subsequent Financing.

 

6.Notices.  Section 11.2 of the Loan Agreement is incorporated herein by reference.

 

7.Amendment.  Section 11.3 of the Loan Agreement is incorporated herein by reference.

 

8.Assignment.  Section 11.7 of the Loan Agreement is incorporated herein by reference.

 

9.Governing Law; Consent to Jurisdiction and Venue; Mutual Waiver of Jury Trial / Judicial Reference.  Sections 11.8, 11.9 and 11.10 of the Loan Agreement are incorporated herein by reference.

 

10.Further Assurances.  The parties shall execute such further documents and do any and all such further things as may be necessary to implement and carry out the intent of this Agreement.

 

11.Counterparts.  Section 11.15 of the Loan Agreement is incorporated herein by reference.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

 

3

 

IN WITNESS WHEREOF, Borrower, Agent and Lender have duly executed and delivered this Right to Invest Agreement as of the day and year first above written.

 

	
BORROWER:

	
 

	
CHEMOCENTRYX, INC.

	
 
	
 

	
Signature:
	
/s/Thomas J. Schall, Ph.D.

	
Print Name:
	
Thomas J. Schall, Ph.D.

	
Title:
	
President and Chief Executive Officer

 

[Signature Page to Right to Invest Agreement]

Jlfasdjoiuoi

[Siga

 

 

	
LENDER:

	
 

	
HERCULES CAPITAL, INC.

	
 
	
 

	
Signature:
	
/s/Jennifer Choe

	
Print Name:
	
Jennifer Choe

	
Title:
	
Assistant General Counsel

 

[Signature Page to Right to Invest Agreement]

Jlfasdjoiuoi

[Sigaccxi-ex103_15.htm

 

Exhibit 10.3

CHEMOCENTRYX, INC.

Non-Employee DIRECTOR COMPENSATION POLICY

(As Amended and Restated Effective March 3, 2020)

Non-employee members of the board of directors (the “Board”) of ChemoCentryx, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Non-Employee Director Compensation Policy (this “Policy”).  The cash and equity compensation described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”) who may be eligible to receive such cash or equity compensation, unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company. This Policy shall remain in effect until it is revised or rescinded by further action of the Board.  The terms and conditions of this Policy shall supersede any prior cash or equity compensation arrangements between the Company and its Non-Employee Directors.

1.Cash Compensation. 

(a)Annual Retainers.  Each Non-Employee Director shall be eligible to receive an annual retainer of $50,000 for service on the Board.  In addition, a Non-Employee Director shall receive the following additional annual retainers, as applicable:

(i)Lead Independent Director.  A Non-Employee Director serving as Lead Independent Director shall receive an additional annual retainer of $25,000 for such service.

(ii)Chairperson of the Audit Committee.  A Non-Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $20,000 for such service.

(iii) Member of the Audit Committee.  A Non-Employee Director serving as a member of the Audit Committee (other than the Chairperson) shall receive an additional annual retainer of $10,000 for such service.

(iv)Chairperson of the Compensation Committee.  A Non-Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $17,500 for such service.

(v) Member of the Compensation Committee.  A Non-Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional annual retainer of $10,000 for such service.

(vi) Chairperson of the Nominating and Corporate Governance Committee.  A Non-Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $10,000 for such service.

(vii) Member of the Nominating and Corporate Governance Committee.  A Non-Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $6,000 for such service.

1

 

(b)Payment of Retainers. The annual retainers described in Section 1(a) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifth business day following the end of each calendar quarter. In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described in Section 1(a), for an entire calendar quarter, the retainer paid to such Non-Employee Director shall be prorated for the portion of such calendar quarter actually served as a Non-Employee Director, or in such positions, as applicable. Non-Employee Directors may elect to receive vested shares of common stock in lieu of the foregoing retainers on the date on which such retainers would otherwise have been paid in cash in accordance with the terms and conditions of the Company’s 2012 Equity Incentive Award Plan (the “Equity Plan”). 

2.Equity Compensation. Non-Employee Directors shall be granted the equity awards described below. The awards described below shall be granted under and shall be subject to the terms and provisions of the Equity Plan and shall be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the same forms previously approved by the Board, setting forth the vesting schedule applicable to such awards and such other terms as may be required by the Equity Plan. 

(a)Initial Awards. A person who is initially elected or appointed to the Board following the Public Trading Date, and who is a Non-Employee Director at the time of such initial election or appointment, shall be automatically granted (i) such number of restricted stock units (or, if so elected by a Non-Employee Director prior to the date of such initial election or appointment, shares of restricted common stock) on the date of such initial election or appointment as is determined by dividing (A) $225,000 by (B) the 60-day trailing average trading price of the Company’s common stock preceding the date of grant and (ii) an option to purchase such number of shares of the Company’s common stock having a value of $100,000, calculated as of the date of grant in accordance with the Black-Scholes option pricing model (utilizing the same assumptions that the Company utilizes in preparation of its financial statements and the 60-day trailing average trading price of the Company’s common stock preceding the date of grant) (which options will have a term of ten years from the date of grant and an exercise price per share equal to the Fair Market Value (as defined in the Equity Plan) on the date of grant). The awards described in this Section 2(a) shall be referred to as “Initial Awards.” No Non-Employee Director shall be granted more than one Initial Award.

(b)Subsequent Awards. A person who is a Non-Employee Director immediately following each annual meeting of the Company’s stockholders and who will continue to serve as a Non-Employee Director immediately following such annual meeting shall be automatically granted (i) such number of restricted stock units (or, if so elected by a Non-Employee Director prior to the date of such annual meeting, shares of restricted common stock) on the date of such annual meeting of the Company’s stockholders as is determined by dividing (A) $225,000 by (B) the 60-day trailing average trading price of the Company’s common stock preceding the date of grant, and (ii) an option to purchase such number of shares of the Company’s common stock having a value of $100,000, calculated as of the date of grant in accordance with the Black-Scholes option pricing model (utilizing the same assumptions that the Company utilizes in preparation of its financial statements and the 60-day trailing average trading price of the Company’s common stock preceding the date of grant) (which options will have a term of ten years from the date of grant and an exercise price per share equal to the Fair Market Value (as defined in the Equity Plan) on the date of grant). The awards described in this Section 2(b) shall be referred to as “Subsequent Awards.”  For the avoidance of doubt, a Non-Employee Director elected for the first time to the Board at an annual meeting of the Company’s stockholders shall only receive an Initial Award in connection with such election, and shall not receive any Subsequent Awards on the date of such meeting as well. 

2

 

(c)Termination of Employment of Employee Directors. Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their employment with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(a) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from employment with the Company and any parent or subsidiary of the Company, Subsequent Awards as described in Section 2(b) above. 

(d)Vesting of Awards Granted to Non-Employee Directors.  Each Initial Award shall vest and become exercisable on the first anniversary of the date of grant, subject to the Non-Employee Director continuing in service on the Board through each such vesting date. Each Subsequent Award shall vest and/or become exercisable on the first anniversary of the date of grant, subject to the Non-Employee Director continuing in service on the Board through such vesting date. All of a Non-Employee Director’s Initial Awards and Subsequent Awards shall vest in full upon the occurrence of a Change in Control (as defined in the Equity Plan).

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]