Document:

Exhibit 4.13

 

SECOND AMENDED AND RESTATED
 VOTING AGREEMENT

 

This Second Amended and Restated Voting Agreement (this “Voting Agreement”) is made as of May 20, 2011, among TetraLogic Pharmaceuticals Corporation, a Delaware corporation (the “Company”), certain holders of the Company’s Preferred Stock, severally and not jointly, listed on Exhibit A hereto (each of which is herein referred to as an “Investor” and all of which are collectively referred to herein as the “Investors”), and certain holders of the Company’s outstanding Common Stock (the “Common Stock”), severally and not jointly, listed on Exhibit B hereto (each of which is herein referred to as a “Common Holder” and all of which are collectively referred to herein as the “Common Holders”). The Investors and the Common Holders are collectively referred to herein as the “Stockholders.”

 

RECITALS

 

WHEREAS, certain of the Investors (the “Existing Investors”) hold shares of the Company’s Series A Preferred, Series B Preferred, Series C Preferred and/or shares of Common Stock issued upon conversion thereof and possess certain rights to nominate directors of the Company and other rights pursuant to an Amended and Restated Voting Agreement dated as of July 26, 2010 between the Company, such Existing Investors and certain Common Holders (the “Prior Agreement”); and

 

WHEREAS, the Company’s Fourth Amended and Restated Certificate of Incorporation (as amended or restated from time to time, the “Restated Certificate”) provides that the holders of shares of the Company’s Series A Preferred Stock and Series B Preferred Stock, voting together as a single, separate class, shall be entitled to elect three (3) directors (the “Junior Preferred Directors”); (ii) the holders of the Company’s Series C Preferred Stock (the “Series C Preferred”) and Series C-1 Preferred Stock (the “Series C-1 Preferred”), voting together as a single, separate class, shall be entitled to elect two (2) directors (the “Series C Directors” and together with the Junior Preferred Directors known herein as the “Preferred Directors”); and (iii) the holders of the Common Stock and the Preferred Stock, voting together as a single class, shall be entitled to elect all other directors of the Corporation; and

 

WHEREAS, the Existing Investors are holders of at least sixty percent (60%) of the then outstanding shares of Series C Preferred Stock of the Company, and desire to amend and restate the Prior Agreement in its entirety and to accept the rights created pursuant to this Voting Agreement in lieu of the rights granted to them under the Prior Agreement; and

 

WHEREAS, certain of the Investors are parties to that certain Series C-1 Preferred Stock Purchase Agreement of even date herewith between the Company and certain of the Investors (the “Purchase Agreement”), under which certain of the Company’s and such Investors’ obligations are conditioned upon the execution and delivery of this Voting Agreement by such Investors, Existing Investors holding at least sixty percent (60%) of the then outstanding shares of Series C Preferred, holders of at least a majority of the Common Stock of the Company then held by the Common Stockholders listed on Exhibit A attached to the Prior Agreement and the Company.

 

 

NOW, THEREFORE, BE IT RESOLVED, the Existing Investors and the Common Stockholders listed on Exhibit A attached to the Prior Agreement hereby agree that the Prior Agreement shall be superseded and replaced in its entirety by this Voting Agreement, and the parties to this Voting Agreement further agree as follows:

 

AGREEMENT

 

1.                                      Shares Subject to Agreement. Each Stockholder agrees to hold all shares of Company voting securities beneficially owned or controlled by such Stockholder, whether now owned or hereafter acquired (hereinafter referred to as the “Voting Shares”), subject to, and to vote the Voting Shares in accordance with, the provisions of this Voting Agreement.

 

2.                                      Obligations to Vote Voting Shares for Specific Nominee.

 

2.1.                       Junior Preferred Directors. At any annual or special meeting called, or in connection with any other action (including the execution of written consents) taken for the purpose of electing directors to the Board of Directors (the “Board”), each of the Stockholders agrees, whether or not cumulative voting is in effect, to vote (or to act with respect to) such Stockholder’s Voting Shares in a manner that would cause the nomination and election of three (3) members of the Board designated by the holders of at least a majority of the then outstanding Series A Preferred Stock of the Company (the “Series A Preferred”) and Series B Preferred Stock of the Company (the “Series B Preferred”), voting together as a single class (each, a “Junior Preferred Director”), who initially shall be Harold Werner, Paul Schmitt and Brenda Gavin. Any amendment or waiver with respect to the rights under this Section 2.1, Section 2.5 and Section 2.6 shall require the prior written approval of the holders of at least a majority of the then outstanding Series A Preferred and Series B Preferred, voting together as a single class.

 

2.2.                       Series C Directors. At any annual or special meeting called, or in connection with any other action (including the execution of written consents) taken for the purpose of electing directors to the Board, each of the Stockholders agrees, whether or not cumulative voting is in effect, to vote (or to act with respect to) such Stockholder’s Voting Shares in a manner that would cause the nomination and election of two (2) members of the Board (each, a “Series C Director”) as follows: (a) one (1) designated by Clarus Lifesciences II, L.P. or its affiliates (“Clarus”) who initially shall be Michael Steinmetz; and (b) one (1) designated by Hatteras Venture Partners III, LP or its affiliates, who initially shall be Douglas Reed. The Clarus designee shall have the right to serve on any committee of the Board. Any amendment or waiver with respect to the rights under this Section 2.2, Section 2.5 and Section 2.6 shall require the prior written approval of the holders of at least sixty percent (60%) of the then outstanding Series C Preferred and Series C-1 Preferred, voting together as a single class.

 

2.3.                       CEO Director. At any annual or special meeting called, or in connection with any other action (including the execution of written consents) taken for the purpose of electing directors to the Board, each of the Stockholder [SIC] agrees, whether or not cumulative voting is in effect, to vote (or to act with respect to) such Stockholder’s Voting Shares in a manner that would cause the nomination and election of the Company’s then-current Chief Executive Officer to the Board (who shall become the “CEO Director”). The initial CEO Director designee shall be John Gill.

 

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2.4.                       Industry Directors. At any annual or special meeting called, or in connection with any other action (including the execution of written consents) taken for the purpose of electing directors to the Board, each of the Stockholders agrees, whether or not cumulative voting is in effect, to vote (or to act with respect to) such Stockholder’s Voting Shares in a manner that would cause the nomination and election of up to three (3) members of the Board designated jointly by a majority of the Preferred Directors (including at least one Series C Director) and the CEO Director, (the “Industry Directors”), each of whom shall be an industry expert who is not an employee or officer of the Company or any of the Investors or a partner or director of, or affiliated with, any of the Investors (except that Andrew Pecora and James Woody each may serve as an Industry Director, subject to the provisions hereof) who initially shall be Andrew Pecora and James Woody (who is acting as a director of the Company at the request and as a representative, but not as a designee, of Latterell Venture Partners III, L.P. together with its affiliates (“LVP”)) and the remaining Industry Director shall initially be vacant. Each Industry Director shall be elected for a term of one (1) year (each such term, an “Industry Director Term”); provided, however, that the Industry Director Term for James Woody shall be two (2) years (the “Woody Director Term”) following which James Woody shall cease to be a director of the Company and the size of the Board shall be decreased by one (1) member from its then existing size. Upon the expiration of an Industry Director Term, unless a majority of the Board, including at least one Series C Director, approves the re-election of the then-serving Industry Director for an additional Industry Director Term within thirty (30) days, the Industry Director shall cease to be a director of the Company and a majority of the Preferred Directors, including at least one Series C Director, and the CEO Director shall appoint a new individual (in accordance with the Company’s Restated Certificate and Bylaws) to serve as an Industry Director.

 

2.5.                       Appointment of Directors. In the event of the resignation, death, removal or disqualification of a director designated by the persons or classes or series of stock entitled to designate directors under Sections 2.1 through 2.4, as the case may be (in any such case the “Designating Party”), the Designating Party shall promptly designate a new director, and, after written notice of the such [SIC] designee’s nomination has been given by the Designating Party to the other Stockholders and to the Company, the Stockholders shall promptly vote or act with respect to their Voting Shares to elect such designee to the Board.

 

2.6.                       Removal. The Designating Party may remove its designated director at any time and from time to time, with or without cause (subject to the Bylaws of the Company as in effect from time to time and any requirements of law), in its or their sole discretion, and after written notice to each of the other Stockholders and the Company of the new designee to replace such director, the Stockholders shall promptly vote or act with respect to their Voting Shares to elect such designee to the Board. Additionally, if for any reason the individual serving as the CEO Director shall cease to serve as the chief executive officer of the Company, each of the Stockholders shall promptly vote their respective shares (i) to remove the former chief executive officer from the Board if such person has not resigned as a member of the Board and (ii) to elect such person’s replacement as chief executive officer of the Company as the new CEO Director.

 

2.7.                       Change in the Size of the Board. The Stockholders agree not to take any action, whether at any annual or special meeting of the Company’s stockholders or in connection with any other action (including the execution of written consents) taken, to increase or decrease

 

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the size of the Board from its current size of nine (9) members; provided, however, that such Board size may be subsequently increased or decreased pursuant to an amendment of this Voting Agreement in accordance with Section 12.10 hereof and in accordance with the Company’s Restated Certificate and Bylaws; provided, further, that pursuant to Section 2.4, following the expiration of the Woody Director Term the size of the Board shall be reduced by one (1) member from its then existing size.

 

2.8.                            Observer Rights.

 

(a)                                 Amgen Ventures, LLC (“Amgen”) shall be entitled to designate an individual (an “Amgen Observer”), who shall initally [SIC] be Janis Naeve (or some other individual approved by the Board, including at least one Series C Director), and who shall be entitled (i) to be present at all meetings of the Board, and (ii) to receive advance notice of all such meetings, including such meetings’ time and place, in the same manner as the directors. The Amgen Observer shall not have the right to vote at any meetings and shall not be entitled to any indemnification or insurance coverage provided by the Company particular to officers and directors of the Company. The Company, in its sole discretion, reserves the right to exclude the Amgen Observer from all or part of any meeting of the Board and to withhold information and redact portions or entire documents to the extent reasonably necessary to protect confidential information of the Company, maintain a legal privilege or address any actual or potential conflict of interest between the Amgen Observer or Amgen or any of Amgen’s affiliates, on the one hand, and the Company, on the other hand. The observer rights provided under this Section 2.8(a) shall terminate upon the date that Amgen owns less than the full amount of shares of Series C Preferred than it has purchased pursuant to the Purchase Agreement. Any amendment or waiver to this Section 2.8(a) shall require the prior written consent of Amgen.

 

(b)                                 Following the date James Woody shall cease to be a director of the Company, for so long as LVP holds at least five percent (5%) of the then outstanding shares of Preferred Stock of the Company, LVP shall be entitled to designate an individual (a “LVP Observer”) (i) to be present at all meetings of the Board, and (ii) to receive advance notice of all such meetings, including such meetings’ time and place, in the same manner as the directors. The LVP Observer shall not have the right to vote at any meetings and shall not be entitled to any indemnification or insurance coverage provided by the Company particular to officers and directors of the Company. The Company, in its sole discretion, reserves the right to exclude the LVP Observer from all or part of any meeting of the Board and to withhold information and redact portions or entire documents to the extent reasonably necessary to protect confidential information of the Company, maintain a legal privilege or address any actual or potential conflict of interest between the LVP Observer or LVP or any of LVP’s affiliates, on the one hand, and the Company, on the other hand. Any amendment or waiver to this Section 2.8(b) shall require the prior written consent of LVP.

 

(c)                                  For so long as The Vertical Group, L.P. together with its affiliates (“Vertical”) holds at least five percent (5%) of the then outstanding shares of Preferred Stock of the Company, Vertical shall be entitled to designate an individual (a “Vertical Observer”) (i) to be present at all meetings of the Board, and (ii) to receive advance notice of all such meetings, including such meetings’ time and place, in the same manner as the directors. The Vertical Observer shall not have the right to vote at any meetings and shall not be entitled to any

 

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indemnification or insurance coverage provided by the Company particular to officers and directors of the Company. The Company, in its sole discretion, reserves the right to exclude the Vertical Observer from all or part of any meeting of the Board and to withhold information and redact portions or entire documents to the extent reasonably necessary to protect confidential information of the Company, maintain a legal privilege or address any actual or potential conflict of interest between the Vertical Observer or Vertical or any of Vertical’s affiliates, on the one hand, and the Company, on the other hand. Any amendment or waiver to this Section 2.8(c) shall require the prior written consent of Vertical.

 

(d)                                 For so long as Nextech III  Oncology, LPCI (“Nextech”), together with its affiliates, holds at least fifty percent (50%) of the shares of Series C-1 Preferred originally purchased by it under the Purchase Agreement, Nextech shall be entitled to designate an individual (a “Nextech Observer”) (i) to be present at all meetings of the Board, and (ii) to receive advance notice of all such meetings, including such meetings’ time and place, in the same manner as the directors. The Nextech Observer shall not have the right to vote at any meetings and shall not be entitled to any indemnification or insurance coverage provided by the Company particular to officers and directors of the Company. The Company, in its sole discretion, reserves the right to exclude the Nextech Observer from all or part of any meeting of the Board and to withhold information and redact portions or entire documents to the extent reasonably necessary to protect confidential information of the Company, maintain a legal privilege or address any actual or potential conflict of interest between the Nextech Observer or Nextech or any of Nextech’s affiliates, on the one hand, and the Company, on the other hand. Any amendment or waiver of this Section 2.8(d) shall require the prior written consent of Nextech.

 

2.9.                       Termination of Designation Rights. In the event that the shares of the Company’s Preferred Stock held by any Stockholder are converted into Common Stock pursuant to Section B.3 of the Restated Certificate (each such Stockholder a “Converting Stockholder”), any right of such Converting Stockholder to nominate or designate a director of the Company pursuant to Section 2.1 or Section 2.2 above shall terminate at the time of such conversion.

 

3.                                 Sale of the Company. If an acquisition of the Company by another entity by means of any transaction or series of related transactions other than by means of a transaction or series of transactions (including, without limitation, any stock acquisition, reorganization, merger or consolidation but excluding any sale of stock by the Company for capital raising purposes) in which the holders of the voting securities of the Company outstanding immediately prior to such transaction continue to retain (either by such voting securities remaining outstanding or by such voting securities being converted into voting securities of the surviving entity or the entity whose securities are issued pursuant to such transaction or series of related transactions), at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or such issuing entity outstanding immediately after such transaction or series of transaction [SIC], or a sale of all or substantially all of the assets of the Company (such events referred to herein collectively, as a “Sale of the Company”), is approved by the Board, including at least one Series C Director, and the holders of a majority of the outstanding shares of Series C Preferred and Series C-1 Preferred (voting as a single class), including Clarus, (the “Sale Majority”) (whether at an annual or special meeting of stockholders or by written consent in lieu of a meeting of stockholders or by the tender of their shares, an “Approved Sale”), then

 

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each of the Stockholders hereby agrees, with respect to all Voting Shares of the Company over which he, she or it exercises voting or dispositive authority:

 

(i)                                after receiving proper notice of any meeting of stockholders of the Company to vote on the approval of the Approved Sale, to be present, in person or by proxy, as a holder of Voting Shares, at all such meetings and be counted for the purposes of determining the presence of a quorum at such meetings;

 

(ii)                             to vote (in person, by proxy or by action by written consent, as applicable) all of its Voting Shares for such the Approved Sale, and to sell, transfer or exchange all of such Stockholder’s shares of capital stock of the Company in connection with such transaction on the same terms as those consented to by such consenting holders of the Company’s voting capital stock as appropriate for the Common Stock and/or Preferred Stock held by such Stockholder; provided, however, that nothing herein shall obligate any Stockholder who is (or whose designee is) also a director to vote in any manner in such Stockholder’s capacity as a director;

 

(iii)                          to refrain from exercising any dissenters’ rights, appraisal rights or similar rights under applicable law at any time with respect to such Approved Sale;

 

(iv)                         to execute and deliver such instruments of conveyance and transfer and take such other action, including, as applicable, executing any purchase agreement, merger agreement, indemnity agreement, escrow agreement or related documents, as may be reasonably required by the Company in order to carry out the terms and provisions of this Section 3; and

 

(v)                            at the closing of such transaction to deliver, against receipt of the consideration payable in such transaction, certificates representing the capital stock of the Company which such Stockholder holds of record or beneficially, with all endorsements necessary for transfer.

 

No Stockholder shall be subject to the requirements of this Section 3 with respect to an Approved Sale if such Approved Sale (A) requires that the payment with respect to each share of stock in the Company held by such Stockholder is not in accordance with the Restated Certificate in accordance with its terms and applicable law but without reliance on this Section 3, if such Approved Sale were a “Liquidation” within the meaning of Article Four, Section 2(c) thereof (or such equivalent Article and Section thereof), (B) provides that such Stockholder will not receive the same form of consideration or the same per share consideration for their shares of Common Stock or Preferred Stock, as applicable, as all others holders of such Common Stock or Preferred Stock, as applicable, or (C) requires such Stockholder to agree to any indemnification obligations which (1) are joint and several, (2) are for breaches of representations and warranties of any person or entity other than the Company or such Stockholder, (3) provide for indemnification other than in proportion to such Stockholder’s ownership interest in the Company, determined on a fully-diluted as-converted to common stock basis (excluding: (i) all shares issuable pursuant to the exercise of an option wherein such right of exercise has not yet vested as of the closing of the Approved Sale; (ii) all shares exercisable pursuant to either a warrant or an option for which the exercise price is greater than the fair market value of the

 

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underlying shares as of the closing of the Approved Sale; and (iii) all options and shares reserved for the issuance of options under any of the Company’s equity incentive plans for which options have not yet issued as of the closing of the Approved Sale), and (4) are not limited to the value of the consideration actually received by such Stockholder pursuant to such Approved Sale (excluding liability for such Stockholder’s own fraud). In addition and without limitation to the foregoing, no Stockholder shall be subject to the requirements of this Section 3 with respect to an Approved Sale if such Stockholder is required to provide indemnification in connection with such Approved Sale and any of the Stockholders comprising a part of the Sale Majority are not required to provide indemnification or if such Stockholder’s indemnification obligations in connection with such Approved Sale are upon terms and conditions which are less favorable to such Stockholder than the terms and conditions upon which any of the Stockholders comprising a part of the Sale Majority are obligated to provide indemnification in connection with such Approved Sale.

 

4.                                 Other Matters. In the event that the taking of any one or more of the actions listed in Article Fourth, Section B.5(b)(i), (ii), and (vi) of the Restated Certificate (an “Approved Action”) would require a separate vote by the holders of the Series C-1 Preferred under Section 242(b)(ii) of the General Corporation Law of the State of Delaware, then each holder of Series C-1 Preferred hereby agrees, with respect to all shares of Series C-1 Preferred over which he, she or it exercises voting or dispositive authority, to vote (in person, by proxy or by written consent, as applicable) all of such Series C-1 Preferred shares in favor of the Approved Action if (a) the holders of at least fifty-three percent (53%) of the then outstanding Series C Preferred approve (by vote or written consent as provided by law) the taking of such Approved Action and (b) such Approved Action does not (i) alter or amend Article Fourth, Section B.3(h)(ii) of the Restated Certificate, or the rights of the holders of the Series C-1 Preferred pursuance [SIC] to such Article Fourth, Section B.3(h)(ii), prior to the Series C-1 Special Antidilution Termination Time (as defined in the Restated Certificate) or (ii) alter or change the powers, preferences or special rights of the Series C-1 Preferred so as to adversely affect the Series C-1 Preferred in a manner that is disproportionately unfavorable to the Series C-1 Preferred as compared with the Series C Preferred.

 

5.                                 Termination. This Voting Agreement shall terminate upon the earlier to occur of any one of the following events: (a) the consummation of the Company’s first offering of the Common Stock of the Company to the general public that is affected [SIC] pursuant to a registration statement filed with, and declared effective by, the Securities Exchange Commission under the Securities Act of 1933,  as amended; or (b) the merger or consolidation of the Company, provided that the Company’s stockholders of record as constituted immediately prior to such transaction hold less than fifty percent (50%) of the voting power of the surviving or acquiring entity.

 

6.                                 Successors in Interest. The provisions of this Voting Agreement shall be binding upon the successors in interest to any of the Voting Shares. The Company shall not permit the transfer of any of the Voting Shares on its books or issue a new certificate representing any of the Voting Shares unless and until the person to whom such security is to be transferred shall have executed a written agreement pursuant to which such person becomes a

 

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party to this Voting Agreement and agrees to be bound by all the provisions hereof as if such person were a Stockholder.

 

7.                                 Legend. Each certificate representing any of the Voting Shares shall be marked by the Company with a legend reading as follows:

 

THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT (A COPY OF WHICH MAY BE OBTAINED FROM THE ISSUER) AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON HOLDING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID VOTING AGREEMENT.

 

At any time after the termination of this Voting Agreement in accordance with Section 4, any holder of a stock certificate legended pursuant to this Section 7 may surrender such certificate to the Company for removal of the legend, and the Company will duly reissue a new certificate without the legend.

 

8.                                 No Liability for Election of Recommended Directors. Neither the Company nor any Stockholder, nor any officer, director, stockholder, partner, employee or agent of any such party, makes any representation or warranty as to the fitness or competence of the designee of any party hereunder to serve on the Board by virtue of such party’s execution of this Voting Agreement or by the act of such party in voting for such nominee pursuant to this Voting Agreement.

 

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9.                                 Grant of Proxy. If a Stockholder fails or refuses to vote or sell his, her or its Voting Shares as required by, or votes his, her or its Voting Shares in contravention of, this Voting Agreement, then each such Stockholder hereby grants to the individual selected by the holders of a majority of the Series C Preferred (the “Attorney-In-Fact”) an irrevocable (until such time as this Voting Agreement terminates or expires) proxy, coupled with an interest, to vote such Voting Shares in accordance with this Agreement and hereby appoints the Attorney-In-Fact as such Stockholder’s attorney-in-fact, only to vote such Stockholder’s Voting Shares and to sell such Stockholder’s capital stock in the Company in accordance with the terms of this Voting Agreement. In the event the Attorney-In-Fact is unable or unwilling to act as attorney in fact as set forth above, the holders of at least a majority of the Series C Preferred shall be entitled to appoint a new attorney-in-fact in substitution thereof.

 

10.                          Board Expenses. The Company will reimburse reasonable out-of-pocket expenses incurred by (a) any Designating Party’s representative member of the Board for the purpose of attending Board meetings and conducting other Company business in such person’s capacity as a director of the Company, and (b) the Nextech Observer or Nextech for the purpose of attending Board meetings and conducting other Company business in such person’s capacity as an observer to the Board, including coach class air travel to and from all Board meetings. If, on any flight, the Nextech Observer travels in an upgraded class, the Company only shall be required to reimburse the Nextech Observer or Nextech for the cost of a coach class fare on such flight. Any amendment or waiver of Section 10(b) shall require the prior written consent of Nextech.

 

11.                          Covenants of the Company.

 

11.1.                     Cooperation.  The Company agrees to use commercially reasonable efforts to provide that the parties to this Voting Agreement enjoy the benefits of this Voting Agreement. Such actions include, without limitation, the Company causing the nomination of the directors as provided above. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be performed under this Voting Agreement by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Voting Agreement and in the taking of all such actions as may be reasonably necessary to protect the rights of the parties to this Voting Agreement against impairment.

 

11.2.                     Additional Parties.  The Company shall [use its commercially reasonable efforts to] [SIC] have each of holder of Common Stock who owns three percent (3%) or more of the outstanding Common Stock (assuming the conversion, exercise or exchange of all outstanding securities that are directly or indirectly convertible into, or exercisable or exchangeable for, Common Stock (collectively, “Convertible Securities”)) become a party to this Voting Agreement as a Common Holder. The Stockholders and the Company hereby agree that each such Common Holder, by executing a Joinder Agreement in the form attached hereto as Exhibit C, shall automatically be joined as a party hereto pursuant to this Section 11.2 without the need to obtain the consent of any party, and shall be deemed to be a Common Holder for all purposes hereof.

 

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12.                          Miscellaneous.

 

12.1.                     Governing Law.  This Voting Agreement shall be governed in all respects by the laws of the State of Delaware without regard to choice of laws or conflict of laws provisions of Delaware or any other jurisdiction.

 

12.2.                     Successors and Assigns.  Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto. Nothing in this Voting Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Voting Agreement, except as expressly provided by this Voting Agreement.

 

12.3.                     Entire Agreement.  This Voting Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof and supersedes and replaces in its entirety the Prior Agreement. Subject to the provisions of Section 12.10 below, neither this Voting Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought, unless otherwise provided.

 

12.4.                Notices, Etc.  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, return receipt requested, or otherwise delivered by hand or by messenger or confirmed facsimile, addressed (a) if to a Stockholder, at such Stockholder’s address set forth the signatures page of this Voting Agreement, or at such other address as such Stockholder shall have furnished to the Company in writing, or (b) if to the Company, at its address set forth on the signature page of this Voting Agreement addressed to the attention of the Corporate Secretary, or at such other address as the Company shall have furnished to the Stockholders. Unless specifically stated otherwise, if notice is provided by mail, it shall be deemed to be delivered upon proper deposit in a mailbox, if notice is provided by facsimile, it shall be deemed to be delivered upon receipt by the sender of confirmation of facsimile transmission, and if notice is delivered by hand or by messenger, it shall be deemed to be delivered upon actual delivery.

 

12.5.                Delays or Omissions.  No delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or default of another party under this Voting Agreement shall impair any such right, power, or remedy of such party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent, or approval of any kind or character on the part of any party of any breach or default under this Voting Agreement, or any waiver on the part of any party of any provisions or conditions of this Voting Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing or as provided in this Voting Agreement. All remedies, either under this Voting Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

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12.6.    Dispute Resolution Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Voting Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and disbursements in addition to any other relief to which such party may be entitled.

 

12.7.    Counterparts. This Voting Agreement may be executed in any number of counterparts and signatures may be delivered by facsimile, each of which may be executed by less than all parties, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.

 

12.8.    Severability. If any provision of this Voting Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Voting Agreement and the balance of the Voting Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

12.9.    Titles and Subtitles.  The titles and subtitles used in this Voting Agreement are used for convenience only and are not to be considered in construing or interpreting this Voting Agreement.

 

12.10. Amendment and Waiver. Subject to the terms of Section 2.1, 2.2 and 2.8, any provision of this Voting Agreement other than Section 4 may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company, the holders of at least sixty percent (60%) of the then outstanding shares of Series C Preferred and Series C-1 Preferred, voting together as single class, and the holders of at least a majority-in-interest of the Common Stock held by the Common Holders (assuming for this purpose that each Common Holder holds, in addition to all then outstanding shares of Common Stock held by such Common Holder, all shares of Common Stock issuable upon the conversion, exercise or exchange of the then vested portion of all Convertible Securities then held by such Common Holder); provided that, no such amendment shall adversely affect any Stockholder in a different or disproportionate manner relative to the other Stockholders of the same class or series unless such amendment is agreed to in writing by such adversely affected Stockholder. Section 4 of this Voting Agreement may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) only with the prior written consent of the Company, the holders of at least sixty percent (60%) of the then outstanding shares of Series C Preferred and Series C-1 Preferred, voting together as single class, and the holders of at least fifty-one percent (51%) of the then outstanding shares of Series C-1 Preferred, voting as a separate class; provided that, no such amendment shall adversely affect any Stockholder in a different or disproportionate manner relative to the other Stockholders of the same class or series unless such amendment is agreed to in writing by such adversely affected Stockholder. Notwithstanding the foregoing, the Company may update and amend Exhibit A to this Voting Agreement and add parties to this Voting Agreement as Investors if such parties become holders of Voting Shares of the Company upon execution by such parties of a signature page to this Voting Agreement without the consent of any other party

 

11

 

hereto. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Stockholder and the Company.

 

12.11. Stock Splits, Stock Dividends, etc. In the event of any issuance of Voting Shares hereafter to any of the parties hereto (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization or the like), such shares shall become subject to this Voting Agreement and shall be endorsed with the legend set forth in Section 6.

 

[THIS SPACE LEFT BLANK INTENTIONALLY]

 

12

 

IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first above written.

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
TETRALOGIC PHARMACEUTICALS
   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John M. Gill
    
	
 
    	
 
    	
Name:
    	
John Gill
    
	
 
    	
 
    	
Its:
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Address:
    	
343 Phoenixville Pike
    
	
 
    	
 
    	
Malvern, PA 19355
    
					

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
ONC PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    
	
 
    	
Name:
    	
ONC General Partner Limited
    
	
 
    	
(print)
    
	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address: 26 New Street, St Helier, JE2 3RA, New Jersey [SIC]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEXTECH III ONCOLOGY, LPCI
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
Nextech III GP Ltd
    
	
 
    	
(print)
    
	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address: Scheuchzerstrasse 35 - CH - 8006 Zurich,
   Switzerland
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
ONC PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
ONC General Partner Limited
    
	
 
    	
(print)
    
	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address: 26 New Street, St Helier, JE2 3RA, New Jersey [SIC]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEXTECH III ONCOLOGY, LPCI
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    
	
 
    	
Name:
    	
Nextech III GP Ltd
    
	
 
    	
(print)
    
	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address: Scheuchzerstrasse 35 - CH - 8006 Zurich,
   Switzerland
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
PFIZER INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Barbara J. Dalton
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Barbara Dalton
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Vice President, [ILLEGIBLE] Capital
   Worldwide Business Development & Innovation
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
CLARUS LIFESCIENCES II, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Clarus Ventures II GP, LP, its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Clarus Ventures II, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
(print)
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
c/o Clarus Ventures, LLC
   101 Main Street, Suite 1210
   Cambridge MA 02142
    
				

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
HATTERAS VENTURE PARTNERS III, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
HATTERAS VENTURE ADVISORS, LLC, ITS
    
	
 
    	
GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
Name:
    	
Douglas Reed
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
c/o Hatteras Venture Partners
   280 S. Mangum Street, Suite 350
   Durham, NC 27701
    
	
 
    	
 
    	
 
    
	
 
    	
HATTERAS VENTURE AFFILIATES III, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
HATTERAS VENTURE ADVISORS, LLC, ITS
    
	
 
    	
GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
Name:
    	
Douglas Reed
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Address: 
    	
c/o Hatteras Venture Partners
   280 S. Mangum Street, Suite 350
   Durham, NC 27701
    
					

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
LATTERELL VENTURE PARTNERS III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Latterell Capital Management III, L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
Name:
    	
Patrick F. Latterell
    
	
 
    	
Its:
    	
Managing Member
    
	
 
    
	
 
    
	
 
    	
LVP III ASSOCIATES, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Latterell Capital Management III, L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
Name:
    	
Patrick F. Latterell
    
	
 
    	
Its:
    	
Managing Member
    
	
 
    
	
 
    
	
 
    	
LVP III PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Latterell Capital Management III, L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
Name:
    	
Patrick F. Latterell
    
	
 
    	
Its:
    	
Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
Address: 
    	
1 Embarcadero Center
    
	
 
    	
 
    	
Suite 4050
    
	
 
    	
 
    	
San Francisco, CA 94111
    
				

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
VERTICAL FUND I, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group, L.P.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group GPHC, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
John E. Runnells
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VERTICAL FUND II L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group, L.P.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group GPHC, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
John E. Runnells
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
Authorized Signatory
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
QUAKER BIOVENTURES, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, L.P.,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    	
 
    
	
 
    	
QUAKER BIOVENTURES TOBACCO FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, L.P.,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BIOADVANCE VENTURES, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BIOADVANCE GP I, L.P., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOADVANCE MANAGEMENT, L.P.,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Partner
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
AMGEN VENTURES LLC
    
	

    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Janis C. Naeve
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Janis C. Naeve
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Managing Director
    
				

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
/s/ [ILLEGIBLE]
    
	
 
    	
GEORGE MCLENDON
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
PECORA AND COMPANY, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Andrew Pecora
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Chairman
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
HEALTHCARE VENTURES VII, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
HealthCare Partners VII, L.P.,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
Name:
    	
Jeffrey B. Steinberg
    
	
 
    	
Title:
    	
Administrative Partner
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
NOVITAS CAPITAL III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Novitas Capital III GP, L.P.,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Novitas Capital III GP, Manager, LLC,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Paul J Schmitt
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Managing Director
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
KAMMERER & ASSOCIATES, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Rudolph Kammerer
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Manager
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
COMMON STOCKHOLDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ [ILLEGIBLE]
    
	
 
    	
GEORGE MCLENDON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Heather McLendon Irrevocable Trust
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
George Mclendon
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Audrey McLendon Irrevocable Trust
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
George Mclendon
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ [ILLEGIBLE]
    
	
 
    	
TERRY MCLENDON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JOHN M. GILL
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MARK MCKINLAY
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

	
 
    	
COMMON STOCKHOLDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GEORGE MCLENDON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Heather McLendon Irrevocable Trust
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Audrey McLendon Irrevocable Trust
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TERRY MCLENDON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ John M. Gill
    
	
 
    	
JOHN M. GILL
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ [ILLEGIBLE]
    
	
 
    	
MARK MCKINLAY
    

 

[SIGNATURE PAGE TO VOTING AGREEMENT]

 

 

Exhibit A

 

INVESTORS

 

ONC Partners, L.P.

 

Nextech III Oncology, LPCI

 

Pfizer, Inc.

 

Clarus Lifesciences II, L.P.

 

Hatteras Venture Partners III, LP

 

Hatteras Venture Affiliates III, LP 

 

Latterell Venture Partners III, L.P.

 

LVP III Associates, L.P.

 

LVP III Partners, L.P.

 

Vertical Fund I, LP

 

Vertical Fund II, LP

 

Quaker BioVentures, L.P.

 

Quaker BioVentures Tabacco Func, L.P. [SIC]

 

BioAdvance Ventures, L.P.

 

Amgen Ventures LLC

 

HealthCare Ventures VII, L.P.

 

Novitas Capital III, L.P. 

 

Kammerer & Associates, L.P.

 

George McLendon

 

Pecora and Company, LLC

 

A-1

 

Exhibit B

 

COMMON HOLDERS

 

 

George McLendon, Ph.D. 

 

John M. Gill

 

Heather McLendon Irrevocable Trust 

 

Audrey McLendon Irrevocable Trust

 

Mark McKinlay

 

Terry McLendon

 

T. Kavitha Rani

 

Susan Billings

 

Lynne and Alex Georgopoulos 

 

David Weng

 

Alexei Degterev

 

Junying Yuan

 

Yigong Shi

 

[Confirm no others to add] [SIC]

 

B-1

 

Exhibit C

JOINDER AGREEMENT

 

I,__________________________, a holder of shares of Common Stock of TetraLogic Pharmaceuticals Corporation, hereby agree to become a “Common Holder” pursuant to that certain Second Amended and Restated Voting Agreement dated as of May______, 2011 (as amended and/or restated from time to time), and further agree to be bound by and subject to all of the terms and conditions thereof, in my capacity as a Common Holder thereunder.

 

 

	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    
			

 

C-1Exhibit 4.14

 

SECOND AMENDED AND RESTATED 
 RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT

 

This Second Amended and Restated Right of First Refusal and Co-Sale Agreement (the “Agreement”) is made as of May 20, 2011 by and among certain holders of Common Stock listed on Exhibit A to this Agreement (“Common Holders”), TetraLogic Pharmaceuticals Corporation, a Delaware corporation (the “Company”), and the holders of capital stock of the Company listed on Exhibit B to this Agreement (each an “Investor” and collectively the “Investors”).

 

RECITALS

 

WHEREAS, the Company, the Common Holders and certain of the Investors (the “Prior Investors”) previously entered into an Amended and Restated Right of First Refusal and Co-Sale Agreement, dated July 26, 2010 (the “Prior Agreement”), in connection with the purchase of shares of Series C Preferred (as defined below); and

 

WHEREAS, the Prior Investors are the holders of at least sixty percent (60%) of the then outstanding shares of Series C Preferred, and desire to amend and restate the Prior Agreement in its entirety and to accept the rights created pursuant to this Agreement in lieu of the rights granted to them under the Prior Agreement; and

 

WHEREAS, certain of the Investors are parties to that certain Series C-1 Preferred Stock Purchase Agreement of even date herewith between the Company and certain of the Investors (the “Purchase Agreement”), under which certain of the Company’s and such investors’ obligations are conditioned upon the execution and delivery of this Agreement by such Investors, Prior Investors holding at least sixty percent (60%) of the outstanding shares of Series C Preferred, and the holders of at least a majority of the Common Stock of the Company held by the Common Stockholders listed on Exhibit A attached to the Prior Agreement and the Company.

 

NOW, THEREFORE, BE IT RESOLVED, the Existing Investors and the Common Stockholders listed on Exhibit A attached to the Prior Agreement hereby agree that the Prior Agreement shall be superseded and replaced in its entirety by this Agreement, and the parties to this Agreement further agree as follows:

 

AGREEMENT

 

1.             Certain Definitions. As used in this Agreement, the following terms have the following respective meanings:

 

1.1.         “Affiliate” has the same meaning as defined in that certain Amended and Restated Investor Rights Agreement of even date herewith between the Company, the Common Stockholders listed on Exhibit A thereto and the Investors listed on Exhibit B thereto.

 

 

1.2.         “Common Stock” means the Company’s Common Stock and shares of Common Stock issued or issuable upon conversion of other outstanding Company securities, the conversion of which may be made with or without payment of consideration.

 

1.3.         “Co-Sale Pro Rata Portion” means the ratio that (x) the sum of the number of shares of Common Stock then held by an Investor, bears to (y) the sum of the total number of shares of Common Stock then held by all Investors and the Common Holder proposing to transfer Shares. For purposes of determining an Investor’s Co-Sale Pro Rata Portion hereunder, such Investor shall be deemed to hold, in addition to the actual shares of Common Stock then held by such Investor, a number of shares of Common Stock equal to the number of shares of Common Stock issued or issuable upon conversion of other outstanding Company securities, the conversion of which may be made with or without payment of consideration.

 

1.4.         “Eligible Investor” means (a) an Investor who or which, together with its Affiliates, at the time in question, hold(s) at least two percent (2%) of the aggregate shares of Series C Preferred and Series C-1 Preferred (subject to appropriate and proportionate adjustments for stock dividends, stock splits and other subdivisions and combinations of, and capitalizations and like occurrences with respect to, the Series C Preferred and/or Series C-1 Preferred, as applicable), or (b) an Investor who or which, together with its Affiliates, at the time in question, hold(s) all of the shares of Series C Preferred and Series C-1 Preferred originally purchased by such Investor directly from the Company (subject to appropriate and proportionate adjustments for stock dividends, stock splits and other subdivisions and combinations of, and capitalizations and like occurrences with respect to, the Series C Preferred and/or Series C-1 Preferred, as applicable).

 

1.5.         “Preferred Stock” means shares of the Company’s Series A Preferred, Series B Preferred, Series C Preferred and/or Series C-1 Preferred.

 

1.6.         “Registrable Securities” has the same meaning as defined in that certain Amended and Restated Investor Rights Agreement of even date herewith between the Company, the Common Stockholders listed on Exhibit A thereto and the Investors listed on Exhibit B thereto.

 

1.7.         “ROFR Pro Rata Portion” means the ratio that (x) the sum of the number of shares of Common Stock then held by an Investor bears to (y) the sum of the total number of shares of Common Stock then held by all Investors. For purposes of determining an Investor’s ROFR Pro Rata Portion hereunder, such Investor shall be deemed to hold, in addition to the actual shares of Common Stock then held by such Investor, a number of shares of Common Stock equal to the number of shares of Common Stock issued or issuable upon conversion of other outstanding Company securities, the conversion of which may be made with or without payment of consideration.

 

1.8.         “Series A Preferred” means the Company’s Series A Convertible Preferred Stock, par value $0.0001 per share.

 

1.9.         “Series B Preferred” means the Company’s Series B Convertible Preferred Stock, par value $0.0001 per share.

 

2

 

1.10. “Series C Preferred” means the Company’s Series C Convertible Preferred Stock, par value $0.0001 per share.

 

1.11. “Series C-1 Preferred” means the Company’s Series C-1 Convertible Preferred Stock, par value $0.0001 per share.

 

1.12. “Shares” means any shares of Common Stock now owned or subsequently acquired by a Common Holder.

 

2.             Sales by the Common Holders or Investors.

 

2.1.         Notice of Sales. Should a Common Holder propose to sell or transfer any Shares or an Investor propose to sell or transfer any Registrable Securities, prior to such sale or transfer, such Common Holder or Investor (each a “Selling Stockholder”) shall deliver a written notice (the “Notice”) to the Company and the other Investors who are also Eligible Investors (the “Non-Selling Investors”). The Notice shall describe in reasonable detail the proposed sale or transfer, including, without limitation, the number and type of Shares or Registrable Securities, as applicable, to be sold or transferred, the nature of such sale or transfer, the consideration to be paid, the name and address of each prospective purchaser or transferee, and any other material terms and conditions upon which such sale or transfer is to be made, along with copies of all material proposed agreements relating to such sale, including but not limited to, purchase agreements, voting or proxy agreements, and other agreements or documents requested by the Company.

 

2.2.         Right of First Refusal.

 

(a)           Company Right of First Refusal. The Company shall have the option, exercisable upon written notice (“Company Notice”) to such Selling Stockholder and the Non-Selling Investors within fifteen (15) days after delivery of the Notice, to purchase some or all of the Shares or Registrable Securities, as applicable, proposed to be sold by the Selling Stockholder. The purchase price at which the Shares or Registrable Securities are offered to the Company, and the other terms of sale, shall be as specified in the Notice.

 

(b)           Non-Selling Investors’ Right of First Refusal. In the event that the Company declines to exercise in full its right of first refusal set forth in Section 2.2(a) above, each Non-Selling Investor shall then have the option, exercisable within fifteen (15) calendar days after delivery of the Company Notice upon written notice to such Selling Stockholder and the other Non-Selling Investors (the “Election Notice”), to purchase its ROFR Pro Rata Portion of the Shares or Registrable Securities, as applicable, not purchased by the Company. If less than the total number of Shares or Registrable Securities specified in the Notice (such amount that is less than the total number of Shares or Registrable Securities, as applicable, known herein as the “Shortfall”) is being purchased by all Non-Selling Investors, then each Non-Selling Investor who is purchasing its full ROFR Pro Rata Portion of the Shares or Registrable Securities, as applicable, (each a “Fully Participating Purchaser”) will have the right but not the obligation to purchase its pro rata share of the Shortfall. Such pro rata amount will be determined by multiplying the Shortfall by the following fraction: the total amount of Shares or Registrable Securities, as applicable, specified in the Notice that were purchased by such Fully Participating Purchaser divided by the total amount of all Shares specified in the Notice that

 

3

 

were purchased by all Fully Participating Purchasers who desire to purchase their pro rata amount of the Shortfall.

 

2.3.         Co-Sale Right. In the event that the Company and the Non-Selling Investors do not exercise their full rights of first refusal pursuant to Section 2.2, each Non-Selling Investor not purchasing Shares or Registrable Securities, as applicable, pursuant to Section 2.2 shall have the option, exercisable upon written notice to the Selling Stockholder within fifteen (15) calendar days after the last occurrence of the Company Notice or Election Notice, as the case may be, to participate in such Selling Stockholder’s sale of Shares or Registrable Securities, as applicable, pursuant to the specified terms and conditions of the Notice, up to such Non-Selling Investor’s Co-Sale Pro Rata Portion. Non-Selling Investors which elect to exercise their co-sale rights in full are referred to herein as “Participants.”

 

3.             Procedures Upon Exercise of Rights.

 

3.1.         Right of First Refusal. If any one or more of the Company or the Non-Selling Investors exercise the right of first refusal described in Section 2.2 above as to all of the Shares or Registrable Securities, as applicable, proposed to be sold by the Selling Stockholder, then within fifteen (15) days of the expiration of all required notice periods set forth above, (a) the Selling Stockholder shall deliver to the purchasers thereof one or more certificates representing the Shares or Registrable Securities, as applicable, so purchased by such purchaser, properly endorsed for transfer, and (b) the Company and the Non-Selling Investors, with respect to the Shares or Registrable Securities, as applicable, it has elected to purchase, shall deliver to the Selling Stockholder a check for the purchase price of the Shares or Registrable Securities, as applicable, it has elected to purchase, against delivery of such certificate(s). The Company agrees to effect the transfer of Shares or Registrable Securities, as applicable, on its stock ledger, to issue new certificate(s) representing such transferred Shares as appropriate, and to deliver the Non-Selling Investors’ checks, if any, to the Selling Stockholder.

 

3.2.         Right of Co-Sale.

 

(a)           Each Participant shall effect its participation in the sale by promptly delivering to the Selling Stockholder for transfer to the prospective purchaser one or more certificates, properly endorsed for transfer, which represent (i) the type and number of shares of Shares or Registrable Securities, as applicable, which such Participant elects to sell; or (ii) that number of shares of Series A Preferred, Series B Preferred, Series C Preferred or Series C-1 Preferred which is at such time convertible into the number of shares of Common Stock which such Participant elects to sell; provided, however, that if the prospective purchaser objects to the delivery of Series A Preferred, Series B Preferred, Series C Preferred or Series C-1 Preferred in lieu of Common Stock, such Participant shall convert such Series A Preferred, Series B Preferred, Series C Preferred or Series C-1 Preferred into Common Stock and deliver Common Stock as provided in this paragraph. The Company agrees to make any such conversion concurrent with the actual transfer of such shares to the purchaser.

 

(b)           The stock certificate or certificates that each Participant delivers to the Selling Stockholder pursuant to Section 3.2(a) shall be transferred to the prospective purchaser in consummation of the sale of the Shares or Registrable Securities, as applicable, pursuant to the terms and conditions specified in the Notice, and the Selling Stockholder shall

 

4

 

concurrently therewith remit to such Non-Selling Investor that portion of the sale proceeds to which such Non-Selling Investor is entitled by reason of its participation in such sale. To the extent that any prospective purchaser prohibits such assignment or otherwise refuses to purchase shares or other securities from a Participant, the Selling Stockholder shall not sell to such prospective purchaser or purchasers any Shares or Registrable Securities, as applicable, unless and until, simultaneously with such sale, the Selling Stockholder shall purchase such shares or other securities from such Participant on the same terms as described in the Notice.

 

4.             Exempt Transfers of Shares. The provisions of Sections 2.1, 2.2 and 2.3 shall not apply to: (a) any transfer of Shares or Registrable Securities by any Common Holder or Investor to any one or more of such Common Holder or Investor’s spouse, domestic partner, lineal descendant or antecedent, brother or sister, niece or nephew, adopted child or adopted grandchild, or the spouse or domestic partner of any child, adopted child, grandchild or adopted grandchild of such Common Holder or Investor or any other relative (whether by blood or marriage) approved by the Company’s board of directors, or to a trust or trusts for the exclusive benefit of such Common Holder or Investor or those members of Common Holder or Investor’s family or relatives specified in this section, or to any one or more entities, the sole equity owners of which are any one or more of such Common Holder or Investor or those members of such Common Holder or Investor’s family or relatives specified in this section, or to any beneficiary or equity owners of any trust or entity specified in this section; (b) any transfer of Shares or Registrable Securities by way of bequest or inheritance upon death; (c) any sale or transfer of Registrable Securities by an Investor to any one or more of such Investor’s Affiliates; (d) any sale or transfer of Shares or Registrable Securities to the Company; (e) any sale of Shares or Registrable Securities to the public pursuant to a registration statement filed with, and declared effective by, the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Act”); and (f) any transfer of Shares or Registrable Securities in connection with a Liquidation, as such term is defined in the Company’s Fourth Amended and Restated Certificate of Incorporation (as amended or restated from time to time); provided, however, that with respect to clauses (a), (b) and (c) hereof, any such transferee shall agree in writing to be bound by and comply with all provisions hereof; and provided further that with respect to clause (a), the Common Holder or Investor shall provide the notice set forth in Section 2.1 hereof, including a description in reasonable detail of the basis for his, her or its determination that such transfer or sale is exempt from the obligations of Sections 2.2 and 2.3 pursuant to this Section 4. Any Shares or Registrable Securities transferred pursuant to clauses (a), and (b) of this Section 4 shall remain “Shares” or “Registrable Securities” hereunder, and such transferee shall be treated as a “Common Holder” or “Investor” for purposes of this Agreement. The transferees to whom a Common Holder or Investor’s Shares or Registrable Securities, as applicable, are transferred or sold in accordance with this Section 4 are collectively referred to as the “Permitted  Transferees.”

 

5.           Prohibited Transfers of Shares.

 

5.1.         Prohibited Transfers. In the event a Selling Stockholder should sell any Shares or Registrable Securities, as applicable, in contravention of the co-sale rights of the Non-Selling Investors under Section 2.3 of this Agreement (a “Prohibited Transfer”), each Non-Selling Investor, in addition to such other remedies as may be available at law, in equity, or

 

5

 

hereunder, shall have the put option provided for in Section 5.2 below, and the Selling Stockholder shall be bound by the applicable provisions of such option.

 

5.2.         Put Option. In the event of a Prohibited Transfer, each Non-Selling Investor shall have the right to sell to the Selling Stockholder the type and number of shares of Shares Registrable Securities, as applicable, equal to the number of shares each Non-Selling Investor would have been entitled to transfer to the purchaser had the Prohibited Transfer been effected pursuant to and in compliance with the terms of Section 2.3 of this Agreement. Such sale shall be made on the following terms and conditions:

 

(a)           The price per share at which the shares are to be sold by the Non-Selling Investor to the Selling Stockholder shall be equal to the price per share paid by the purchaser to the Selling Stockholder in the Prohibited Transfer. The Selling Stockholder shall also reimburse each Non-Selling Investor for any and all fees and expenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Non-Selling Investor’s rights under this Section 5.2.

 

(b)           Within ninety (90) calendar days after the later of the dates on which the Non-Selling Investor (i) received notice of the Prohibited Transfer or (ii) otherwise became aware of the Prohibited Transfer, each Non-Selling Investor shall, if exercising the option created hereby, deliver to the Selling Stockholder the certificate or certificates representing shares to be sold, properly endorsed for transfer.

 

(c)           The Selling Stockholder shall, within twenty-four (24) hours of delivery of the certificate or certificates for the shares to be sold by an Non-Selling Investor pursuant to this subparagraph 5.2, pay the aggregate purchase price paid by the purchaser to the Selling Stockholder in the Prohibited Transfer and the amount of reimbursable fees and expenses as specified in subparagraph 5.2(a) in cash or by other means acceptable to the Non-Selling Investor.

 

(d)           Notwithstanding the foregoing, any attempt by the Selling Stockholder to transfer Shares Registrable Securities, as applicable, in violation of Section 2.3 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee as the holder of such Shares or Registrable Securities, as applicable, without the written consent of the holders of at least a majority of the shares held by the Non-Selling Investors, voting together as a separate class.

 

6.             Lapse and Reinstatement of Rights. If the Company and the Non-Selling Investors have not exercised the rights of first refusal described in Section 2.2 above as to all of the Shares or Registrable Securities, as applicable, proposed to be sold by the Selling Stockholder, then, subject to the rights of the Participants under Section 3.2, the Selling Stockholder shall have a period of sixty (60) days from the expiration of such rights in which to sell Shares or Registrable Securities, as applicable, specified in the Notice upon terms and conditions (including the purchase price) no more favorable than those specified in the Notice, to the third-party transferee(s) identified in the Notice; provided that such transferee agrees to be bound to the provisions of this Agreement as a “Common Holder” or “Investor,” as applicable. In the event Selling Stockholder does not consummate the sale or disposition of the Shares or Registrable Securities, as applicable, within the sixty (60) day period from the expiration of these

 

6

 

rights, the Company’s and the Non-Selling Investor’s rights of first refusal and the Non-Selling Investor’s co-sale rights shall continue to be applicable to any subsequent disposition of the Shares or Registrable Securities, as applicable, by the Selling Stockholder until such rights terminate in accordance with the terms of this Agreement.

 

7.             Legend.

 

7.1.        Legend. Each certificate representing Shares or Registrable Securities, as applicable, shall be endorsed with the following legend:

 

THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT AMONG THE HOLDER OF THE SECURITIES, THE COMPANY AND CERTAIN STOCKHOLDERS OF THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

 

7.2.        Transfer Agent Notification. Each Common Holder and Investor agrees that the Company may instruct its transfer agent to impose transfer restrictions on the shares represented by certificates bearing the legend referred to in Section 7.1 above to enforce the provisions of this Agreement and the Company agrees to promptly do so. The legend shall be removed upon termination of this Agreement.

 

7.3.        Legend Removal. At any time after the termination of this Agreement in accordance with Section 8, any holder of a stock certificate legended pursuant to this section may surrender such certificate to the Company for removal of such legend, and the Company will duly reissue a new certificate without the legend.

 

8.             Termination. This Agreement shall terminate upon the earliest to occur of any one of the following events: (a) the occurrence of a Liquidation; or (b) a sale by the Company of Company common stock to the public effected pursuant to a registration statement filed with, and declared effective by, the Securities and Exchange Commission under the Securities Act of 1933, as amended.

 

9.             Miscellaneous.

 

9.1.        Governing Law. This Agreement shall be governed in all respects by the laws of the State of Delaware without regard to choice of laws or conflict of laws provisions of Delaware or any other jurisdiction.

 

9.2.        Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors, and administrators of the parties hereto. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided by this Agreement. The right of first refusal granted under Section 2.2 of this Agreement may not be assigned or transferred.

 

7

 

except that such right is assignable in the case of any Investor, (i) by such Investor to any wholly-owned subsidiary or parent of, or to any corporation or entity that is, within the meaning of the Act, controlling, controlled by, or under common control with, any such Investor; (ii) by such Investor to any Permitted Transferee of such Investor of the type described in clause (a) and (b) of Section 4; or (iii) by such Investor to any one or more of the other Investors; provided, that in no event shall any Investor assign the right of first refusal granted hereunder to any person or entity that directly or indirectly is a supplier, customer or competitor of the Company or any of the Company’s subsidiaries.

 

9.3.        Entire Agreement. This Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof and supersedes and replaces in its entirety the Prior Agreement.

 

9.4.        Notices, Etc. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, return receipt requested, or otherwise delivered by hand or by messenger or confirmed facsimile, addressed (a) if to an Investor, at such Investor’s address set forth on the signature page hereto, or at such other address as such Investor shall have furnished to the Company in writing, (b) if to a Common Holder, to such Common Holder’s address set forth on the signature page hereto, or at such other address as such Common Holder shall have furnished to the Company in writing, or (c) if to the Company, at its address set forth on the signature page of this Agreement addressed to the attention of the Corporate Secretary, or at such other address as the Company shall have furnished to the Investors. Unless specifically stated otherwise, if notice is provided by mail, it shall be deemed to be delivered upon proper deposit in a mailbox, if notice is provided by facsimile, it shall be deemed to be delivered upon receipt by the sender of confirmation of facsimile transmission, and if notice is delivered by hand or by messenger, it shall be deemed to be delivered upon actual delivery.

 

9.5.        Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or default of another party under this Agreement shall impair any such right, power, or remedy of such party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing or as provided in this Agreement. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

9.6.        Counterparts. This Agreement may be executed in any number of counterparts and signatures may be delivered by facsimile, each of which may be executed by less than all parties, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.

 

8

 

9.7.         Severability. If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement and the balance of this Agreement shall be enforceable in accordance with its terms.

 

9.8.         Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

9.9.         Amendment and Waiver. Any provision of this Agreement may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of (a) the Company, (b) the Common Holders holding at least a majority of the Common Stock held by all Common Holders (assuming for this purpose that each Common Holder holds, in addition to all then outstanding shares of Common Stock held by such Common Holder, all shares of Common Stock issuable upon the conversion, exercise or exchange of the then vested portion of all securities of the Company convertible into, or exercisable or exchangeable for, Common Stock then held by such Common Holder), and (c) any individual Investor or group of Investors holding, in the aggregate, at least sixty percent (60%) of the then outstanding Series C Preferred and Series C-1 Preferred (voting together as a single class) held by all Investors; provided that no such amendment or waiver shall adversely affect any Investor or Common Holder in a different manner relative to the other Investors or Common Holders of the same class or series unless such amendment is agreed to in writing by such adversely affected Investor or Common Holder. Notwithstanding the foregoing, the Company may update and amend Exhibit A or Exhibit B to this Agreement and add parties to this Agreement as Common Holders upon execution by such parties of a signature page to this Agreement. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Investor, the Common Holders, and the Company. In addition, the Company may waive performance of any obligation owing to it, as to some or all of the Investors, or agree to accept alternatives to such performance, without obtaining the consent of any Investor.

 

9.10.       Additional Parties. The Company shall use its commercially reasonable efforts to have each of holder of Common Stock who owns one percent (1%) or more of the outstanding Common Stock become a party to this Agreement as a Common Holder. The Common Holders, the Investors and the Company hereby agree that each such Common Holder, by executing a Joinder Agreement in the form attached hereto as Exhibit C, shall automatically be joined as a party hereto pursuant to this Section 9.10 without the need to obtain the consent of any party, and shall be deemed to be a Common Holder for all purposes hereof.

 

9.11.       Aggregation of Stock. All shares of stock of the Company held or acquired by affiliated entities or persons or persons or entities under common management or control shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

[THIS SPACE LEFT BLANK INTENTIONALLY]

 

9

 

The parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
TETRALOGIC PHARMACEUTICALS CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John M. Gill
    
	
 
    	
 
    	
Name:
    	
John Gill
    
	
 
    	
 
    	
Its:
    	
Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
Address: 
    	
343 Phoenixville Pike
    
	
 
    	
 
    	
Malvern, PA 19355
    
					

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
ONC PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
ONC General Partner Limited
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address: 26 New Street, St Helier, JE2 3RA, New Jersey
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEXTECH III ONCOLOGY, LPCI
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Nextech III GP Ltd
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address: Scheuchzerstrasse 35 - CH - 8006 Zurich, Switzerland
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
PFIZER INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Barbara J. Dalton
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Barbara Dalton
    
	
 
    	
 
    	
(print)
    
	
 
    	
 
    	
Vice   President, venture Capital
    
	
 
    	
Title:
    	
Worldwide Business Development &   Innovation
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
CLARUS LIFESCIENCES II, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Clarus Ventures II GP, LP, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Clarus Ventures II, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
(print)
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address: c/o Clarus Ventures, LLC

101 Main Street, Suite 1210

Cambridge MA 02142
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
HATTERAS VENTURE PARTNERS III, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
HATTERAS VENTURE ADVISORS, LLC, ITS
    
	
 
    	
GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ Douglas Reed
    
	
 
    	
Name:
    	
Douglas Reed
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Address: c/o Hatteras Venture Partners

280 S. Mangum Street, Suite 350

Durham, NC 27701
    
	
 
    	
 
    	
 
    
	
 
    	
HATTERAS VENTURE AFFILIATES III, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
HATTERAS VENTURE ADVISORS, LLC, ITS
    
	
 
    	
GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ Douglas Reed
    
	
 
    	
Name:
    	
Douglas Reed
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Address: c/o Hatteras Venture Partners

280 S. Mangum Street, Suite 350

Durham, NC 27701
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
LATTERELL VENTURE PARTNERS III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Latterell Capital Management III, L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick F. Latterell
    
	
 
    	
Name:
    	
Patrick F. Latterell
    
	
 
    	
Its:
    	
Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LVP III ASSOCIATES, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Latterell Capital Management III, L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick F. Latterell
    
	
 
    	
Name:
    	
Patrick F. Latterell
    
	
 
    	
Its:
    	
Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LVP III PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Latterell Capital Management III, L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick F. Latterell
    
	
 
    	
Name:
    	
Patrick F. Latterell
    
	
 
    	
Its:
    	
Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
Address: 1 Embarcadero Center
    
	
 
    	
Suite 4050
    
	
 
    	
San Francisco, CA 94111
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
VERTICAL FUND I, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group, L.P.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group GPHC, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John E. Runnells
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
John E. Runnells
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VERTICAL FUND II L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group, L.P.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
The Vertical Group GPHC, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John E. Runnells
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
John E. Runnells
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
Authorized Signatory
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
QUAKER BIOVENTURES, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, L.P.,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
QUAKER BIOVENTURES TOBACCO FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, L.P.,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOVENTURES CAPITAL, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BIOADVANCE VENTURES, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
BIOADVANCE GP I, L.P., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER BIOADVANCE MANAGEMENT, L.P.,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
QUAKER   BIOVENTURES CAPITAL, LLC,
    
	
 
    	
 
    	
Its   general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Brenda D. Gavin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Partner
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
AMGEN VENTURES LLC
    
	
 
    	

    	
 
    
	
 
    
	
By:
    	
/s/ Janis C. Naeve
    
	
 
    	
 
    
	
Name:
    	
Janis C. Naeve 
    
	
 
    	
(print)
    
	
 
    	
Title:
    	
Managing Director
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
/s/   George McLendon
    
	
 
    	
GEORGE   MCLENDON
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
PECORA AND COMPANY, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew L. Pecora
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Andrew L. Pecora
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Chairman
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
HEALTHCARE VENTURES VII, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
HealthCare Partners VII, L.P.,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey B. Steinberg
    
	
 
    	
Name:
    	
Jeffrey B. Steinberg
    
	
 
    	
Title:
    	
Administrative Partner
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
NOVITAS CAPITAL III, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Novitas Capital III GP, L.P.,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Novitas Capital III GP, Manager, LLC,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul J. Schmitt
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Paul J. Schmitt
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Managing Director
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
KAMMERER & ASSOCIATES, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rudolph Kammerer
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Rudolph Kammerer
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Manager
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

	
 
    	
COMMON STOCKHOLDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ George McLendon
    
	
 
    	
GEORGE MCLENDON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Heather McLendon Irrevocable Trust
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ George McLendon
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
George McLendon
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Audrey McLendon Irrevocable Trust
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ George McLendon
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
George McLendon
    
	
 
    	
 
    	
(print)
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Terry McLendon
    
	
 
    	
TERRY MCLENDON
    
	
 
    	
 
    
	
 
    	
/s/ John M. Gill
    
	
 
    	
JOHN M. GILL
    
	
 
    	
 
    
	
 
    	
/s/ Mark McKinlay
    
	
 
    	
MARK MCKINLAY
    

 

[SIGNATURE PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT]

 

 

Exhibit A

 

COMMON HOLDERS

 

George McLendon, Ph.D. 

 

John M. Gill

 

Heather McLendon Irrevocable Trust

 

Audrey McLendon Irrevocable Trust 

 

Mark McKinlay

 

Terry McLendon 

 

T. Kavitha Rani 

 

Susan Billings

 

Lynne and Alex Georgopoulos

 

David Weng

 

Alexei Degterev 

 

Junying Yuan 

 

Yigong Shi

 

[Confirm no others to add]

 

A-1

 

Exhibit B

 

INVESTORS

 

ONC Partners, L.P.

 

Nextech III Oncology, LPCI

 

Pfizer, Inc.

 

Clarus Lifesciences II, L.P.

 

Hatteras Venture Partners III, LP 

 

Hatteras Venture Affiliates III, LP 

 

Latterell Venture Partners III, L.P.

 

LVP Associates, L.P.

 

LVP III Partners, L.P.

 

Vertical Fund I, L.P.

 

Vertical Fund II, L.P.

 

Quaker BioVentures, L.P.

 

Quaker BioVentures Tobacco Fund, L.P.

 

BioAdvance Ventures, L.P.

 

Amgen Ventures LLC

 

HealthCare Ventures VII, L.P.

 

Novitas Capital III, L.P.

 

Kammerer & Associates, L.P.

 

George McLendon

 

Pecora and Company, LLC

 

B-1

 

Exhibit C

 

JOINDER AGREEMENT

 

I,                                                , a holder of shares of Common Stock of TetraLogic Pharmaceuticals Corporation, hereby agree to become a “Common Holder” pursuant to that certain Second Amended and Restated Right of First Refusal and Co-Sale Agreement dated as of May     , 2011 (as amended and/or restated from time to time), and further agree to be bound by and subject to all of the terms and conditions thereof, in my capacity as a Common Holder thereunder.

 

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    
			

 

C-1

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