Document:

Exhibit 10.1

 

OMTHERA PHARMACEUTICALS, INC.
 2013 STOCK OPTION AND INCENTIVE PLAN

 

SECTION 1.  GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The name of the plan is the Omthera Pharmaceuticals, Inc. 2013 Stock Option and Incentive Plan (the “Plan”).  The purpose of the Plan is to encourage and enable the officers, employees, Non-Employee Directors and other key persons (including Consultants) of Omthera Pharmaceuticals, Inc. (the “Company”) and its Subsidiaries upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company.  It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain with the Company.

 

The following terms shall be defined as set forth below:

 

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

 

“Administrator” means either the Board or the compensation committee of the Board or a similar committee performing the functions of the compensation committee and which is comprised of not less than two Non-Employee Directors who are independent.

 

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

 

“Award Certificate” means a written or electronic document setting forth the terms and provisions applicable to an Award granted under the Plan.  Each Award Certificate is subject to the terms and conditions of the Plan.

 

“Board” means the Board of Directors of the Company.

 

“Cash-Based Award” means an Award entitling the recipient to receive a cash-denominated payment.

 

“Code” means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

 

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

 

 

“Covered Employee” means an employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code.

 

“Dividend Equivalent Right” means an Award entitling the grantee to receive credits based on cash dividends that would have been paid on the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the grantee.

 

“Effective Date” means the date on which the Plan is approved by the Company’s stockholders as set forth in Section 21.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

“Fair Market Value” of the Stock on any given date means the fair market value of the Stock determined in good faith by the Administrator; provided, however, that if the Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”), NASDAQ Global Market, the New York Stock Exchange or another national securities exchange, the determination shall be made by reference to the closing price of the Stock.  If there are is no closing price for such date, the determination shall be made by reference to the last date preceding such date for which there is a closing price; provided further, however, that if the date for which Fair Market Value is determined is the first day when trading prices for the Stock are reported on a national securities exchange, the Fair Market Value shall be the “Price to the Public” (or equivalent) set forth on the cover page for the final prospectus relating to the Company’s Initial Public Offering.

 

“Incentive Stock Option” means any Stock Option designated and qualified as an “incentive stock option” as defined in Section 422 of the Code.

 

“Initial Public Offering” means the consummation of the first underwritten, firm commitment public offering pursuant to an effective registration statement under the Act covering the offer and sale by the Company of its equity securities, or such other event as a result of or following which the Stock shall be publicly held.

 

“Non-Employee Director” means a member of the Board who is not also an employee of the Company or any Subsidiary.

 

“Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option.

 

“Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Performance-Based Award” means any Restricted Stock Award, Restricted Stock Units, Performance Share Award or Cash-Based Award granted to a Covered Employee that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations promulgated thereunder.

 

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“Performance Criteria” means the criteria that the Administrator selects for purposes of establishing the Performance Goal or Performance Goals for an individual for a Performance Cycle.  The Performance Criteria (which shall be applicable to the organizational level specified by the Administrator, including, but not limited to, the Company or a unit, division, group, or Subsidiary of the Company) that will be used to establish Performance Goals are limited to the following:  earnings before interest, taxes, depreciation and amortization, net income (loss) (either before or after interest, taxes, depreciation and/or amortization), changes in the market price of the Stock, economic value-added, funds from operations or similar measure, sales or revenue, development, clinical or regulatory milestones, acquisitions or strategic transactions, operating income (loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital, assets, equity, or investment, stockholder returns, return on sales, gross or net profit levels, productivity, expense, margins, operating efficiency, customer satisfaction, working capital, earnings (loss) per share of Stock, sales or market shares and number of customers, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group.

 

“Performance Cycle” means one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more Performance Criteria will be measured for the purpose of determining a grantee’s right to and the payment of a Restricted Stock Award, Restricted Stock Units, Performance Share Award or Cash-Based Award, the vesting and/or payment of which is subject to the attainment of one or more Performance Goals.  Each such period shall not be less than 12 months.

 

“Performance Goals” means, for a Performance Cycle, the specific goals established in writing by the Administrator for a Performance Cycle based upon the Performance Criteria.

 

“Performance Share Award” means an Award entitling the recipient to acquire shares of Stock upon the attainment of specified Performance Goals.

 

“Restricted Stock Award” means an Award of shares of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant.

 

“Restricted Stock Units” means an Award of phantom stock units to a grantee.

 

“Sale Event” shall mean (i) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (ii) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting power and outstanding stock immediately prior to such transaction do not own a majority of the outstanding voting power and outstanding stock or other equity interests of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion of such transaction, (iii) the sale of all of the Stock of the Company to an unrelated person, entity or group thereof acting in concert, or (iv) any other transaction in which the owners of the Company’s outstanding voting power immediately prior to such transaction do not own at least a majority of the outstanding voting power of the Company or any successor entity immediately upon completion of the transaction other than as a result of the acquisition of securities directly from the Company.

 

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“Sale Price” means the value as determined by the Administrator of the consideration payable, or otherwise to be received by stockholders, per share of Stock pursuant to a Sale Event.

 

“Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated thereunder.

 

“Stock” means the Common Stock, par value $0.001 per share, of the Company, subject to adjustments pursuant to Section 3.

 

“Stock Appreciation Right” means an Award entitling the recipient to receive shares of Stock having a value equal to the excess of the Fair Market Value of the Stock on the date of exercise over the exercise price of the Stock Appreciation Right multiplied by the number of shares of Stock with respect to which the Stock Appreciation Right shall have been exercised.

 

“Subsidiary” means any corporation or other entity (other than the Company) in which the Company has at least a 50 percent interest, either directly or indirectly.

 

“Ten Percent Owner” means an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation.

 

“Unrestricted Stock Award” means an Award of shares of Stock free of any restrictions.

 

SECTION 2.  ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

 

(a)           Administration of Plan.  The Plan shall be administered by the Administrator.

 

(b)           Powers of Administrator.  The Administrator shall have the power and authority to grant Awards consistent with the terms of the Plan, including the power and authority:

 

(i)            to select the individuals to whom Awards may from time to time be granted;

 

(ii)           to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Unrestricted Stock Awards, Cash-Based Awards, Performance Share Awards and Dividend Equivalent Rights, or any combination of the foregoing, granted to any one or more grantees;

 

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

 

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

 

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(v)           to accelerate at any time the exercisability or vesting of all or any portion of any Award provided that the Administrator generally shall not exercise such discretion to accelerate Awards subject to Sections 7 and 8 except in the event of the grantee’s death, disability or retirement, or a change in control (including a Sale Event);

 

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

 

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

 

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

 

(c)           Delegation of Authority to Grant Options.  Subject to applicable law, the Administrator, in its discretion, may delegate to the Chief Executive Officer of the Company all or part of the Administrator’s authority and duties with respect to the granting of Options to individuals who are (i) not subject to the reporting and other provisions of Section 16 of the Exchange Act and (ii) not Covered Employees.  Any such delegation by the Administrator shall include a limitation as to the amount of Options that may be granted during the period of the delegation and shall contain guidelines as to the determination of the exercise price and the vesting criteria.  The Administrator may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Administrator’s delegate or delegates that were consistent with the terms of the Plan.

 

(d)           Award Certificate.  Awards under the Plan shall be evidenced by Award Certificates that set forth the terms, conditions and limitations for each Award which may include, without limitation, the term of an Award and the provisions applicable in the event employment or service terminates.

 

(e)           Indemnification.  Neither the Board nor the Administrator, nor any member of either or any delegate thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Administrator (and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company’s articles or bylaws or any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the Company.

 

(f)            Foreign Award Recipients.  Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards, the

 

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

 

SECTION 3.  STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

(a)           Stock Issuable.(1)  The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 1,218,375 shares (the “Initial Limit”), subject to adjustment as provided in Section 3(c), plus on January 1, 2014 and each January 1 thereafter, the number of shares of Stock reserved and available for issuance under the Plan shall be cumulatively increased by four percent of the number of shares of Stock issued and outstanding on the immediately preceding December 31 or such lesser number of shares of Stock as determined by the Administrator (the “Annual Increase”). Subject to such overall limitation, the maximum aggregate number of shares of Stock that may be issued in the form of Incentive Stock Options shall not exceed the Initial Limit cumulatively increased on January 1, 2014 and on each January 1 thereafter by the lesser of the Annual Increase for such year or 1,433,383 shares of Stock, subject in all cases to adjustment as provided in Section 3(c).  The shares of Stock underlying any Awards under the Plan and under the Company’s 2010 Stock Option Plan that are forfeited, canceled, held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan.  In the event the Company repurchases shares of Stock on the open market, such shares shall not be added to the shares of Stock available for issuance under the Plan.  Subject to such overall limitations, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that Stock Options or Stock Appreciation Rights with respect to no more than 1,433,383 shares of Stock may be granted to any one individual grantee during any one calendar year period.  The shares available for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company.

 

(b)           [Reserved]

 

(c)           Changes in Stock.  Subject to Section 3(d) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or

 

(1)  Share numbers reflect the 1-for-1.3953 reverse stock split effected on April 1, 2013.

 

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other similar change in the Company’s capital stock, the outstanding shares of Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company or any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, including the maximum number of shares that may be issued in the form of Incentive Stock Options, (ii) the number of Stock Options or Stock Appreciation Rights that can be granted to any one individual grantee and the maximum number of shares that may be granted under a Performance-Based Award, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price, if any, per share subject to each outstanding Restricted Stock Award, and (v) the exercise price for each share subject to any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which such Stock Options and Stock Appreciation Rights remain exercisable.  The Administrator shall also make equitable or proportionate adjustments in the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration cash dividends paid other than in the ordinary course or any other extraordinary corporate event.  The adjustment by the Administrator shall be final, binding and conclusive.  No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the Administrator in its discretion may make a cash payment in lieu of fractional shares.

 

(d)           Mergers and Other Transactions.  Except as the Administrator may otherwise specify with respect to particular Awards in the relevant Award Certificate, in the case of and subject to the consummation of a Sale Event, the parties thereto may cause the assumption or continuation of Awards theretofore granted by the successor entity, or the substitution of such Awards with new Awards of the successor entity or parent thereof, with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree.  To the extent the parties to such Sale Event do not provide for the assumption, continuation or substitution of Awards, the Plan and all outstanding Awards hereunder will terminate at the effective time of such Sale Event.  Notwithstanding the foregoing, the Administrator may in its discretion, or to the extent specified in the relevant Award Certificate, cause certain Awards to become vested and/or exercisable immediately prior to such Sale Event.  In the event of the termination of Awards, (i) the Company shall have the option (in its sole discretion) to make or provide for a cash payment to the grantees holding Options and Stock Appreciation Rights, in exchange for the cancellation thereof, in an amount equal to the difference between (A) the Sale Price multiplied by the number of shares of Stock subject to outstanding Options and Stock Appreciation Rights (to the extent then exercisable at prices not in excess of the Sale Price) and (B) the aggregate exercise price of all such outstanding Options and Stock Appreciation Rights; or (ii) each grantee shall be permitted, within a specified period of time prior to the consummation of the Sale Event as determined by the Administrator, to exercise all outstanding Options and Stock Appreciation Rights (to the extent then exercisable) held by such grantee.

 

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

 

SECTION 4.  ELIGIBILITY

 

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

 

SECTION 5.  STOCK OPTIONS

 

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

 

Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options.  Incentive Stock Options may be granted only to employees of the Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code.  To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option.

 

Stock Options granted pursuant to this Section 5 shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable.  If the Administrator so determines, Stock Options may be granted in lieu of cash compensation at the optionee’s election, subject to such terms and conditions as the Administrator may establish.

 

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

 

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

 

(c)           Exercisability; Rights of a Stockholder.  Stock Options shall become exercisable at such time or times, whether or not in installments, as shall be determined by the Administrator at or after the grant date.  The Administrator may at any time accelerate the exercisability of all

 

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or any portion of any Stock Option.  An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options.

 

(d)                                 Method of Exercise.  Stock Options may be exercised in whole or in part, by giving written or electronic notice of exercise to the Company, specifying the number of shares to be purchased.  Payment of the purchase price may be made by one or more of the following methods to the extent provided in the Option Award Certificate:

 

(i)                                     In cash, by certified or bank check or other instrument acceptable to the Administrator;

 

(ii)                                  Through the delivery (or attestation to the ownership) of shares of Stock that are not then subject to restrictions under any Company plan.  Such surrendered shares shall be valued at Fair Market Value on the exercise date;

 

(iii)                               By the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; or

 

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

 

Payment instruments will be received subject to collection.  The transfer to the optionee on the records of the Company or of the transfer agent of the shares of Stock to be purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Option Award Certificate or applicable provisions of laws (including the satisfaction of any withholding taxes that the Company is obligated to withhold with respect to the optionee).  In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number of attested shares.  In the event that the Company establishes, for itself or using the services of a third party, an automated system for the exercise of Stock Options, such as a system using an internet website or interactive voice response, then the paperless exercise of Stock Options may be permitted through the use of such an automated system.

 

(e)                                  Annual Limit on Incentive Stock Options.  To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall

 

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not exceed $100,000.  To the extent that any Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

SECTION 6.  STOCK APPRECIATION RIGHTS

 

(a)                                 Exercise Price of Stock Appreciation Rights.  The exercise price of a Stock Appreciation Right shall not be less than 100 percent of the Fair Market Value of the Stock on the date of grant.

 

(b)                                 Grant and Exercise of Stock Appreciation Rights.  Stock Appreciation Rights may be granted by the Administrator independently of any Stock Option granted pursuant to Section 5 of the Plan.

 

(c)                                  Terms and Conditions of Stock Appreciation Rights.  Stock Appreciation Rights shall be subject to such terms and conditions as shall be determined from time to time by the Administrator.  The term of a Stock Appreciation Right may not exceed ten years.

 

SECTION 7.  RESTRICTED STOCK AWARDS

 

(a)                                 Nature of Restricted Stock Awards.  The Administrator shall determine the restrictions and conditions applicable to each Restricted Stock Award at the time of grant.  Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives.  The terms and conditions of each such Award Certificate shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees.

 

(b)                                 Rights as a Stockholder.  Upon the grant of the Restricted Stock Award and payment of any applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock and receipt of dividends; provided that if the lapse of restrictions with respect to the Restricted Stock Award is tied to the attainment of performance goals, any dividends paid by the Company during the performance period shall accrue and shall not be paid to the grantee until and to the extent the performance goals are met with respect to the Restricted Stock Award.  Unless the Administrator shall otherwise determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or the transfer agent to the effect that they are subject to forfeiture until such Restricted Stock are vested as provided in Section 7(d) below, and (ii) certificated Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in Section 7(d) below, and the grantee shall be required, as a condition of the grant, to deliver to the Company such instruments of transfer as the Administrator may prescribe.

 

(c)                                  Restrictions.  Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Restricted Stock Award Certificate.  Except as may otherwise be provided by the Administrator either in the Award Certificate or, subject to Section 18 below, in writing after the Award is issued, if a grantee’s employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock that has not vested at the time of termination shall automatically and without any requirement of notice to such grantee from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original

 

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purchase price (if any) from such grantee or such grantee’s legal representative simultaneously with such termination of employment (or other service relationship), and thereafter shall cease to represent any ownership of the Company by the grantee or rights of the grantee as a stockholder.  Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates, a grantee shall surrender such certificates to the Company upon request without consideration.

 

(d)                                 Vesting of Restricted Stock.  The Administrator at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company’s right of repurchase or forfeiture shall lapse.  Subsequent to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions have lapsed shall no longer be Restricted Stock and shall be deemed “vested.”  Except as may otherwise be provided by the Administrator either in the Award Certificate or, subject to Section 18 below, in writing after the Award is issued, a grantee’s rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee’s termination of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall be subject to the provisions of Section 7(c) above.

 

SECTION 8.  RESTRICTED STOCK UNITS

 

(a)                                 Nature of Restricted Stock Units.  The Administrator shall determine the restrictions and conditions applicable to each Restricted Stock Unit at the time of grant.  Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives.  The terms and conditions of each such Award Certificate shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees.  At the end of the deferral period, the Restricted Stock Units, to the extent vested, shall be settled in the form of shares of Stock.  To the extent that an award of Restricted Stock Units is subject to Section 409A, it may contain such additional terms and conditions as the Administrator shall determine in its sole discretion in order for such Award to comply with the requirements of Section 409A.

 

(b)                                 Election to Receive Restricted Stock Units in Lieu of Compensation.  The Administrator may, in its sole discretion, permit a grantee to elect to receive a portion of future cash compensation otherwise due to such grantee in the form of an award of Restricted Stock Units.  Any such election shall be made in writing and shall be delivered to the Company no later than the date specified by the Administrator and in accordance with Section 409A and such other rules and procedures established by the Administrator.  Any such future cash compensation that the grantee elects to defer shall be converted to a fixed number of Restricted Stock Units based on the Fair Market Value of Stock on the date the compensation would otherwise have been paid to the grantee if such payment had not been deferred as provided herein.  The Administrator shall have the sole right to determine whether and under what circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate.  Any Restricted Stock Units that are elected to be received in lieu of cash compensation shall be fully vested, unless otherwise provided in the Award Certificate.

 

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(c)                                  Rights as a Stockholder.  A grantee shall have the rights as a stockholder only as to shares of Stock acquired by the grantee upon settlement of Restricted Stock Units; provided, however, that the grantee may be credited with Dividend Equivalent Rights with respect to the phantom stock units underlying his Restricted Stock Units, subject to such terms and conditions as the Administrator may determine.

 

(d)                                 Termination.  Except as may otherwise be provided by the Administrator either in the Award Certificate or, subject to Section 18 below, in writing after the Award is issued, a grantee’s right in all Restricted Stock Units that have not vested shall automatically terminate upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason.

 

SECTION 9.  UNRESTRICTED STOCK AWARDS

 

Grant or Sale of Unrestricted Stock.  The Administrator may, in its sole discretion, grant (or sell at par value or such higher purchase price determined by the Administrator) an Unrestricted Stock Award under the Plan.  Unrestricted Stock Awards may be granted in respect of past services or other valid consideration, or in lieu of cash compensation due to such grantee.

 

SECTION 10.  CASH-BASED AWARDS

 

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

 

SECTION 11.  PERFORMANCE SHARE AWARDS

 

(a)                                 Nature of Performance Share Awards.  The Administrator may, in its sole discretion, grant Performance Share Awards independent of, or in connection with, the granting of any other Award under the Plan.  The Administrator shall determine whether and to whom Performance Share Awards shall be granted, the Performance Goals, the periods during which performance is to be measured, which may not be less than one year except in the case of a Sale Event, and such other limitations and conditions as the Administrator shall determine.

 

(b)                                 Rights as a Stockholder.  A grantee receiving a Performance Share Award shall have the rights of a stockholder only as to shares actually received by the grantee under the Plan and not with respect to shares subject to the Award but not actually received by the grantee.  A grantee shall be entitled to receive shares of Stock under a Performance Share Award only upon satisfaction of all conditions specified in the Performance Share Award Certificate (or in a performance plan adopted by the Administrator).

 

12

 

(c)                                  Termination.  Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 18 below, in writing after the Award is issued, a grantee’s rights in all Performance Share Awards shall automatically terminate upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason.

 

SECTION 12.  PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES

 

(a)                                 Performance-Based Awards.  Any employee or other key person providing services to the Company and who is selected by the Administrator may be granted one or more Performance-Based Awards in the form of a Restricted Stock Award, Restricted Stock Units, Performance Share Awards or Cash-Based Award payable upon the attainment of Performance Goals that are established by the Administrator and relate to one or more of the Performance Criteria, in each case on a specified date or dates or over any period or periods determined by the Administrator.  The Administrator shall define in an objective fashion the manner of calculating the Performance Criteria it selects to use for any Performance Cycle.  Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business unit, or an individual.  The Administrator, in its discretion, may adjust or modify the calculation of Performance Goals for such Performance Cycle in order to prevent the dilution or enlargement of the rights of an individual (i) in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or development, (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or (iii) in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions; provided, however, that the Administrator may not exercise such discretion in a manner that would increase the Performance-Based Award granted to a Covered Employee.  Each Performance-Based Award shall comply with the provisions set forth below.

 

(b)                                 Grant of Performance-Based Awards.  With respect to each Performance-Based Award granted to a Covered Employee (or any other eligible individual that the Administrator determines is reasonably likely to become a Covered Employee), the Administrator shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including a threshold level of performance below which no amount will become payable with respect to such Award).  Each Performance-Based Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various applicable performance targets.  The Performance Criteria established by the Administrator may be (but need not be) different for each Performance Cycle and different Performance Goals may be applicable to Performance-Based Awards to different Covered Employees.

 

(c)                                  Payment of Performance-Based Awards.  Following the completion of a Performance Cycle, the Administrator shall meet to review and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the Performance-Based Awards earned for the Performance Cycle.  The Administrator shall then determine the actual size of each Covered

 

13

 

Employee’s Performance-Based Award, and, in doing so, may reduce or eliminate the amount of the Performance-Based Award for a Covered Employee if, in its sole judgment, such reduction or elimination is appropriate.

 

(d)                                 Maximum Award Payable.(2)  The maximum Performance-Based Award payable to any one Covered Employee under the Plan for a Performance Cycle is 1,433,383 shares of Stock (subject to adjustment as provided in Section 3(c) hereof) or $2,000,000 in the case of a Performance-Based Award that is a Cash-Based Award.

 

SECTION 13.  DIVIDEND EQUIVALENT RIGHTS

 

(a)                                 Dividend Equivalent Rights.  A Dividend Equivalent Right may be granted hereunder to any grantee as a component of an award of Restricted Stock Units, Restricted Stock Award or Performance Share Award or as a freestanding award.  The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Certificate.  Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional equivalents.  Any such reinvestment shall be at Fair Market Value on the date of reinvestment or such other price as may then apply under a dividend reinvestment plan sponsored by the Company, if any.  Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment or installments.  A Dividend Equivalent Right granted as a component of an award of Restricted Stock Units or Restricted Stock Award with performance vesting or Performance Share Award shall provide that such Dividend Equivalent Right shall be settled only upon settlement or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award.

 

(b)                                 Interest Equivalents.  Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide in the grant for interest equivalents to be credited with respect to such cash payment.  Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant.

 

(c)                                  Termination.  Except as may otherwise be provided by the Administrator either in the Award Certificate or, subject to Section 18 below, in writing after the Award is issued, a grantee’s rights in all Dividend Equivalent Rights or interest equivalents granted as a component of an award of Restricted Stock Units, Restricted Stock Award or Performance Share Award that has not vested shall automatically terminate upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason.

 

SECTION 14.  TRANSFERABILITY OF AWARDS

 

(a)                                 Transferability.  Except as provided in Section 14(b) below, during a grantee’s lifetime, his or her Awards shall be exercisable only by the grantee, or by the grantee’s legal representative or guardian in the event of the grantee’s incapacity.  No Awards shall be sold, assigned, transferred or otherwise encumbered or disposed of by a grantee other than by will or

 

(2) Share number reflects the 1-for-1.3953 reverse stock split effected on April 1, 2013.

 

14

 

by the laws of descent and distribution or pursuant to a domestic relations order.  No Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind, and any purported transfer in violation hereof shall be null and void.

 

(b)                                 Administrator Action.  Notwithstanding Section 14(a), the Administrator, in its discretion, may provide either in the Award Certificate regarding a given Award or by subsequent written approval that the grantee (who is an employee or director) may transfer his or her Non-Qualified Options to his or her immediate family members, to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Award.  In no event may an Award be transferred by a grantee for value.

 

(c)                                  Family Member.  For purposes of Section 14(b), “family member” shall mean a grantee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the grantee’s household (other than a tenant of the grantee), a trust in which these persons (or the grantee) have more than 50 percent of the beneficial interest, a foundation in which these persons (or the grantee) control the management of assets, and any other entity in which these persons (or the grantee) own more than 50 percent of the voting interests.

 

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

 

SECTION 15.  TAX WITHHOLDING

 

(a)                                 Payment by Grantee.  Each grantee shall, no later than the date as of which the value of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company with respect to such income.  The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee.  The Company’s obligation to deliver evidence of book entry (or stock certificates) to any grantee is subject to and conditioned on tax withholding obligations being satisfied by the grantee.

 

(b)                                 Payment in Stock.  Subject to approval by the Administrator, a grantee may elect to have the Company’s minimum required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued pursuant to any

 

15

 

Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due.

 

SECTION 16.  SECTION 409A AWARDS

 

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

 

SECTION 17.  TRANSFER, LEAVE OF ABSENCE, ETC.

 

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

 

(a)                                 a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another; or

 

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

 

SECTION 18.  AMENDMENTS AND TERMINATION

 

The Board may, at any time, amend or discontinue the Plan and the Administrator may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s consent.  Except as provided in Section 3(c) or 3(d), without prior stockholder approval, in no event may the Administrator exercise its discretion to reduce the exercise price of outstanding Stock Options or Stock Appreciation Rights or effect repricing through cancellation and re-grants or cancellation of Stock Options or Stock Appreciation Rights in exchange for cash.  To the extent required under the rules of any securities exchange or market system on which the Stock is listed, to the extent determined by the Administrator to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code, or to ensure that compensation earned under Awards qualifies as performance-based compensation under Section 162(m) of the Code, Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders.  Nothing in this Section 18 shall limit the Administrator’s authority to take any action permitted pursuant to Section 3(c) or 3(d).

 

16

 

SECTION 19.  STATUS OF PLAN

 

With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have no rights greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine in connection with any Award or Awards.  In its sole discretion, the Administrator may authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing sentence.

 

SECTION 20.  GENERAL PROVISIONS

 

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

 

(b)                                 Delivery of Stock Certificates.  Stock certificates to grantees under this Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company.  Uncertificated Stock shall be deemed delivered for all purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail (with proof of receipt) or by United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry” records).  Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Award, unless and until the Administrator has determined, with advice of counsel (to the extent the Administrator deems such advice necessary or advisable), that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed, quoted or traded.  All Stock certificates delivered pursuant to the Plan shall be subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with federal, state or foreign jurisdiction, securities or other laws, rules and quotation system on which the Stock is listed, quoted or traded.  The Administrator may place legends on any Stock certificate to reference restrictions applicable to the Stock.  In addition to the terms and conditions provided herein, the Administrator may require that an individual make such reasonable covenants, agreements, and representations as the Administrator, in its discretion, deems necessary or advisable in order to comply with any such laws, regulations, or requirements.  The Administrator shall have the right to require any individual to comply with any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Administrator.

 

(c)                                  Stockholder Rights.  Until Stock is deemed delivered in accordance with Section 20(b), no right to vote or receive dividends or any other rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award, notwithstanding the exercise of a Stock Option or any other action by the grantee with respect to an Award.

 

17

 

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

 

(e)                                  Trading Policy Restrictions.  Option exercises and other Awards under the Plan shall be subject to the Company’s insider trading policies and procedures, as in effect from time to time.

 

(f)                                   Forfeiture of Awards.  If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any grantee who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall reimburse the Company for the amount of any Award received by such individual under the Plan during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting requirement.  The Administrator shall also have the authority to cause the forfeiture of Awards to the extent required under other applicable Federal law.

 

SECTION 21.  EFFECTIVE DATE OF PLAN

 

This Plan shall become effective immediately prior to the Company’s Initial Public Offering, following stockholder approval of the Plan in accordance with applicable state law, the Company’s bylaws and articles of incorporation, and applicable stock exchange rules or pursuant to written consent.  No grants of Stock Options and other Awards may be made hereunder after the tenth anniversary of the Effective Date and no grants of Incentive Stock Options may be made hereunder after the tenth anniversary of the date the Plan is approved by the Board.

 

SECTION 22.  GOVERNING LAW

 

This Plan and all Awards and actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law principles.

 

DATE APPROVED BY BOARD OF DIRECTORS: MARCH 29, 2013

 

DATE APPROVED BY STOCKHOLDERS: MARCH 30, 2013

 

18

 

INCENTIVE STOCK OPTION AGREEMENT
 UNDER THE OMTHERA PHARMACEUTICALS, INC.
 2013 STOCK OPTION AND INCENTIVE PLAN

 

	
Name of Optionee:
    	
 
    
	
 
    	
 
    
	
No. of   Option Shares:
    	
 
    
	
 
    	
 
    
	
Option   Exercise Price per Share:
    	
$
    
	
 
    	
[FMV   on Grant Date (110% of FMV if a 10% owner)]
    
	
 
    	
 
    
	
Grant   Date:
    	
 
    
	
 
    	
 
    
	
Expiration   Date:
    	
 
    
	
 
    	
[up   to 10 years (5 if a 10% owner)]
    

 

Pursuant to the Omthera Pharmaceuticals, Inc. 2013 Stock Option and Incentive Plan as amended through the date hereof (the “Plan”), Omthera Pharmaceuticals, Inc. (the “Company”) hereby grants to the Optionee named above an option (the “Stock Option”) to purchase on or prior to the Expiration Date specified above all or part of the number of shares of Common Stock, par value $0.001 per share (the “Stock”), of the Company specified above at the Option Exercise Price per Share specified above subject to the terms and conditions set forth herein and in the Plan.

 

1.                                      Exercisability Schedule.  No portion of this Stock Option may be exercised until such portion shall have become exercisable.  Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule hereunder, this Stock Option shall be exercisable with respect to the following number of Option Shares on the dates indicated so long as the Optionee remains an employee of the Company or a Subsidiary on such dates:

 

	
Incremental Number of
   Option Shares Exercisable*
    	
 
    	
Exercisability Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(      
    	
)%
    	
 
    	
 
    
	
(      
    	
)%
    	
 
    	
 
    
	
(      
    	
)%
    	
 
    	
 
    
	
(      
    	
)%
    	
 
    	
 
    
	
(      
    	
)%
    	
 
    	
 
    

* Max. of $100,000 per yr.

 

Once exercisable, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of the Plan.

 

 

2.                                      Manner of Exercise.

 

(a)                                 The Optionee may exercise this Stock Option only in the following manner:  from time to time on or prior to the Expiration Date of this Stock Option, the Optionee may give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice.  This notice shall specify the number of Option Shares to be purchased.

 

Payment of the purchase price for the Option Shares may be made by one or more of the following methods:  (i) in cash, by certified or bank check or other instrument acceptable to the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the Optionee on the open market or that are beneficially owned by the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; or (iii) by the Optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; or (iv) a combination of (i), (ii) and (iii) above.  Payment instruments will be received subject to collection.

 

The transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company’s receipt from the Optionee of the full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and (iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations.  In the event the Optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the Shares attested to.

 

(b)                                 The shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such transfer and with the requirements hereof and of the Plan.  The determination of the Administrator as to such compliance shall be final and binding on the Optionee.  The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have transferred the shares to the Optionee, and the Optionee’s name shall have been entered as the stockholder of record on the books of the Company.  Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such shares of Stock.

 

2

 

(c)                                  The minimum number of shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time.

 

(d)                                 Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date hereof.

 

3.                                      Termination of Employment.  If the Optionee’s employment by the Company or a Subsidiary (as defined in the Plan) is terminated, the period within which to exercise the Stock Option may be subject to earlier termination as set forth below.

 

(a)                                 Termination Due to Death.  If the Optionee’s employment terminates by reason of the Optionee’s death, any portion of this Stock Option outstanding on such date, to the extent exercisable on the date of death, may thereafter be exercised by the Optionee’s legal representative or legatee for a period of 12 months from the date of death or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of death shall terminate immediately and be of no further force or effect.

 

(b)                                 Termination Due to Disability.  If the Optionee’s employment terminates by reason of the Optionee’s disability (as determined by the Administrator), any portion of this Stock Option outstanding on such date, to the extent exercisable on the date of such disability, may thereafter be exercised by the Optionee for a period of 12 months from the date of disability or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of disability shall terminate immediately and be of no further force or effect.

 

(c)                                  Termination for Cause.  If the Optionee’s employment terminates for Cause, any portion of this Stock Option outstanding on such date shall terminate immediately and be of no further force and effect.  For purposes hereof, “Cause” shall mean, unless otherwise provided in an employment agreement between the Company and the Optionee, a determination by the Administrator  that the Optionee shall be dismissed as a result of (i) any material breach by the Optionee of any agreement between the Optionee and the Company; (ii) the conviction of, indictment for or plea of nolo contendere by the Optionee to a felony or a crime involving moral turpitude; or (iii) any material misconduct or willful and deliberate non-performance (other than by reason of disability) by the Optionee of the Optionee’s duties to the Company.

 

(d)                                 Other Termination.  If the Optionee’s employment terminates for any reason other than the Optionee’s death, the Optionee’s disability, or Cause, and unless otherwise determined by the Administrator, any portion of this Stock Option outstanding on such date may be exercised, to the extent exercisable on the date of termination, for a period of three months from the date of termination or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of termination shall terminate immediately and be of no further force or effect.

 

The Administrator’s determination of the reason for termination of the Optionee’s employment shall be conclusive and binding on the Optionee and his or her representatives or legatees.

 

3

 

4.                                      Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

 

5.                                      Transferability.  This Agreement is personal to the Optionee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.  This Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s legal representative or legatee.

 

6.                                      Status of the Stock Option.  This Stock Option is intended to qualify as an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), but the Company does not represent or warrant that this Stock Option qualifies as such.  The Optionee should consult with his or her own tax advisors regarding the tax effects of this Stock Option and the requirements necessary to obtain favorable income tax treatment under Section 422 of the Code, including, but not limited to, holding period requirements.  To the extent any portion of this Stock Option does not so qualify as an “incentive stock option,” such portion shall be deemed to be a non-qualified stock option.  If the Optionee intends to dispose or does dispose (whether by sale, gift, transfer or otherwise) of any Option Shares within the one-year period beginning on the date after the transfer of such shares to him or her, or within the two-year period beginning on the day after the grant of this Stock Option, he or she will so notify the Company within 30 days after such disposition.

 

7.                                      Tax Withholding.  The Optionee shall, not later than the date as of which the exercise of this Stock Option becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event.  The Company shall have the authority to cause the minimum required tax withholding obligation to be satisfied, in whole or in part, by withholding from shares of Stock to be issued to the Optionee a number of shares of Stock with an aggregate Fair Market Value that would satisfy the minimum withholding amount due.

 

8.                                      No Obligation to Continue Employment.  Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Optionee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the employment of the Optionee at any time.

 

9.                                      Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Stock Option and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

10.                               Data Privacy Consent.  In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number,

 

4

 

home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate.  The Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

 

11.                               Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Optionee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

 

	
 
    	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
The   foregoing Agreement is hereby accepted and the terms and conditions thereof   hereby agreed to by the undersigned.    Electronic acceptance of this Agreement pursuant to the Company’s   instructions to the Grantee (including through an online acceptance process)   is acceptable.
    
	
 
    
	
 
    
	
Dated:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Optionee’s   Signature
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Optionee’s   name and address:
    
	
 
    	
 
    	
 
    	
 
    
					

 

5

 

NON-QUALIFIED STOCK OPTION AGREEMENT
 FOR COMPANY EMPLOYEES
 UNDER OMTHERA PHARMACEUTICALS, INC.
 2013 STOCK OPTION AND INCENTIVE PLAN

 

	
Name   of Optionee:
    	
 
    
	
 
    	
 
    
	
No. of Option Shares:
    	
 
    
	
 
    	
 
    
	
Option Exercise Price per Share:
    	
$
    
	
 
    	
[FMV   on Grant Date]
    
	
 
    	
 
    
	
Grant Date:
    	
 
    
	
 
    	
 
    
	
Expiration Date:
    	
 
    

 

Pursuant to the Omthera Pharmaceuticals, Inc. 2013 Stock Option and Incentive Plan as amended through the date hereof (the “Plan”), Omthera Pharmaceuticals, Inc. (the “Company”) hereby grants to the Optionee named above an option (the “Stock Option”) to purchase on or prior to the Expiration Date specified above all or part of the number of shares of Common Stock, par value $0.001 per share (the “Stock”) of the Company specified above at the Option Exercise Price per Share specified above subject to the terms and conditions set forth herein and in the Plan.  This Stock Option is not intended to be an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended.

 

1.                                      Exercisability Schedule.  No portion of this Stock Option may be exercised until such portion shall have become exercisable.  Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule hereunder, this Stock Option shall be exercisable with respect to the following number of Option Shares on the dates indicated so long as Optionee remains an employee of the Company or a Subsidiary on such dates:

 

	
Incremental Number of
   Option Shares Exercisable
    	
 
    	
Exercisability Date
    
	
 
    	
 
    	
 
    
	
(      
    	
)%
    	
 
    
	
(      
    	
)%
    	
 
    
	
(      
    	
)%
    	
 
    
	
(      
    	
)%
    	
 
    
	
(      
    	
)%
    	
 
    

 

Once exercisable, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of the Plan.

 

 

2.                                      Manner of Exercise.

 

(a)                                 The Optionee may exercise this Stock Option only in the following manner:  from time to time on or prior to the Expiration Date of this Stock Option, the Optionee may give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice.  This notice shall specify the number of Option Shares to be purchased.

 

Payment of the purchase price for the Option Shares may be made by one or more of the following methods:  (i) in cash, by certified or bank check or other instrument acceptable to the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the Optionee on the open market or that are beneficially owned by the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the Optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; or (v) a combination of (i), (ii), (iii) and (iv) above.  Payment instruments will be received subject to collection.

 

The transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company’s receipt from the Optionee of the full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and (iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations.  In the event the Optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the Shares attested to.

 

(b)                                 The shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such transfer and with the requirements hereof and of the Plan.  The determination of the Administrator as to such compliance shall be final and binding on the Optionee.  The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have transferred the shares to the Optionee, and the Optionee’s name shall have been

 

2

 

entered as the stockholder of record on the books of the Company.  Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such shares of Stock.

 

(c)                                  The minimum number of shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time.

 

(d)                                 Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date hereof.

 

3.                                      Termination of Employment.  If the Optionee’s employment by the Company or a Subsidiary (as defined in the Plan) is terminated, the period within which to exercise the Stock Option may be subject to earlier termination as set forth below.

 

(a)                                 Termination Due to Death.  If the Optionee’s employment terminates by reason of the Optionee’s death, any portion of this Stock Option outstanding on such date, to the extent exercisable on the date of death, may thereafter be exercised by the Optionee’s legal representative or legatee for a period of 12 months from the date of death or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of death shall terminate immediately and be of no further force or effect.

 

(b)                                 Termination Due to Disability.  If the Optionee’s employment terminates by reason of the Optionee’s disability (as determined by the Administrator), any portion of this Stock Option outstanding on such date, to the extent exercisable on the date of such disability, may thereafter be exercised by the Optionee for a period of 12 months from the date of disability or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of disability shall terminate immediately and be of no further force or effect.

 

(c)                                  Termination for Cause.  If the Optionee’s employment terminates for Cause, any portion of this Stock Option outstanding on such date shall terminate immediately and be of no further force and effect.  For purposes hereof, “Cause” shall mean, unless otherwise provided in an employment agreement between the Company and the Optionee, a determination by the Administrator that the Optionee shall be dismissed as a result of (i) any material breach by the Optionee of any agreement between the Optionee and the Company; (ii) the conviction of, indictment for or plea of nolo contendere by the Optionee to a felony or a crime involving moral turpitude; or (iii) any material misconduct or willful and deliberate non-performance (other than by reason of disability) by the Optionee of the Optionee’s duties to the Company.

 

(d)                                 Other Termination.  If the Optionee’s employment terminates for any reason other than the Optionee’s death, the Optionee’s disability or Cause, and unless otherwise determined by the Administrator, any portion of this Stock Option outstanding on such date may be exercised, to the extent exercisable on the date of termination, for a period of three months from the date of termination or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of termination shall terminate immediately and be of no further force or effect.

 

3

 

The Administrator’s determination of the reason for termination of the Optionee’s employment shall be conclusive and binding on the Optionee and his or her representatives or legatees.

 

4.                                      Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in  Section 2(b) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

 

5.                                      Transferability.  This Agreement is personal to the Optionee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.  This Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s legal representative or legatee.

 

6.                                      Tax Withholding.  The Optionee shall, not later than the date as of which the exercise of this Stock Option becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event.  The Company shall have the authority to cause the minimum required tax withholding obligation to be satisfied, in whole or in part, by withholding from shares of Stock to be issued to the Optionee a number of shares of Stock with an aggregate Fair Market Value that would satisfy the minimum withholding amount due.

 

7.                                      No Obligation to Continue Employment.  Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Optionee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the employment of the Optionee at any time.

 

8.                                      Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Stock Option and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

9.                                      Data Privacy Consent.  In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate.  The Grantee shall have access to, and the right to change, the

 

4

 

Relevant Information.  Relevant Information will only be used in accordance with applicable law.

 

10.                               Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Optionee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

 

	
 
    	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
The   foregoing Agreement is hereby accepted and the terms and conditions thereof   hereby agreed to by the undersigned.    Electronic acceptance of this Agreement pursuant to the Company’s instructions   to the Grantee (including through an online acceptance process) is   acceptable.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Optionee’s   Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Optionee’s   name and address:
    
	
 
    	
 
    	
 
    
					

 

5

 

 

NON-QUALIFIED STOCK OPTION AGREEMENT
 FOR NON-EMPLOYEE DIRECTORS
 UNDER OMTHERA PHARMACEUTICALS, INC.
 2013 STOCK OPTION AND INCENTIVE PLAN

 

	
Name   of Optionee:
    	
 
    
	
 
    	
 
    
	
No. of   Option Shares:
    	
 
    
	
 
    	
 
    
	
Option   Exercise Price per Share:
    	
$
    
	
 
    	
[FMV   on Grant Date]
    
	
 
    	
 
    
	
Grant   Date:
    	
 
    
	
 
    	
 
    
	
Expiration   Date:
    	
 
    
	
 
    	
[No   more than 10 years]
    

 

Pursuant to the Omthera Pharmaceuticals, Inc. 2013 Stock Option and Incentive Plan as amended through the date hereof (the “Plan”), Omthera Pharmaceuticals, Inc. (the “Company”) hereby grants to the Optionee named above, who is a Director of the Company but is not an employee of the Company, an option (the “Stock Option”) to purchase on or prior to the Expiration Date specified above all or part of the number of shares of Common Stock, par value $0.001 per share (the “Stock”), of the Company specified above at the Option Exercise Price per Share specified above subject to the terms and conditions set forth herein and in the Plan.  This Stock Option is not intended to be an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended.

 

1.                                      Exercisability Schedule.  No portion of this Stock Option may be exercised until such portion shall have become exercisable.  Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule hereunder, this Stock Option shall be exercisable with respect to the following number of Option Shares on the dates indicated so long as the Optionee remains in service as a member of the Board on such dates:

 

	
Incremental Number of
   Option Shares Exercisable
    	
 
    	
Exercisability Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    

 

 

Once exercisable, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of the Plan.

 

2.                                      Manner of Exercise.

 

(a)                                 The Optionee may exercise this Stock Option only in the following manner:  from time to time on or prior to the Expiration Date of this Stock Option, the Optionee may give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice.  This notice shall specify the number of Option Shares to be purchased.

 

Payment of the purchase price for the Option Shares may be made by one or more of the following methods:  (i) in cash, by certified or bank check or other instrument acceptable to the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the Optionee on the open market or that are beneficially owned by the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the Optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; or (v) a combination of (i), (ii), (iii) and (iv) above.  Payment instruments will be received subject to collection.

 

The transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company’s receipt from the Optionee of the full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and (iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations.  In the event the Optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the Shares attested to.

 

(b)                                 The shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such transfer and with the requirements hereof and of the Plan.  The determination of the Administrator as to such compliance shall be final and binding on the Optionee.  The Optionee shall not be deemed to be the holder of, or to have any of the rights of a

 

2

 

holder with respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have transferred the shares to the Optionee, and the Optionee’s name shall have been entered as the stockholder of record on the books of the Company.  Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such shares of Stock.

 

(c)                                  The minimum number of shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time.

 

(d)                                 Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date hereof.

 

3.                                      Termination as Director. If the Optionee ceases to be a Director of the Company, the period within which to exercise the Stock Option may be subject to earlier termination as set forth below.

 

(a)                                 Termination Due to Death.  If the Optionee’s service as a Director terminates by reason of the Optionee’s death, any portion of this Stock Option outstanding on such date, to the extent exercisable on the date of death, may thereafter be exercised by the Optionee’s legal representative or legatee for a period of 12 months from the date of death or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of death shall terminate immediately and be of no further force or effect.

 

(b)                                 Other Termination.  If the Optionee ceases to be a Director for any reason other than the Optionee’s death, any portion of this Stock Option outstanding on such date may be exercised, to the extent exercisable on the date the Optionee ceased to be a Director, for a period of [six](1) months from the date the Optionee ceased to be a Director or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date the Optionee ceases to be a Director shall terminate immediately and be of no further force or effect.

 

4.                                      Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

 

5.                                      Transferability.  This Agreement is personal to the Optionee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.  This Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s legal representative or legatee.

 

(1)  Confirm longer period for directors.

 

3

 

6.                                      No Obligation to Continue as a Director.  Neither the Plan nor this Stock Option confers upon the Optionee any rights with respect to continuance as a Director.

 

7.                                      Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Stock Option and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

8.                                      Data Privacy Consent.  In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate.  The Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

 

4

 

9.                                      Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Optionee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

 

	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    

 

 

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s instructions to the Grantee (including through an online acceptance process) is acceptable.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Optionee’s   Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Optionee’s   name and address:
    
	
 
    	
 
    	
 
    

 

5

 

RESTRICTED STOCK UNIT AWARD AGREEMENT
 FOR COMPANY EMPLOYEES
 UNDER OMTHERA PHARMACEUTICALS, INC.
 2013 STOCK OPTION AND INCENTIVE PLAN

 

	
Name   of Grantee:
    	
 
    
	
 
    	
 
    
	
No.   of Restricted Stock Units:
    	
 
    
	
 
    	
 
    
	
Grant   Date:
    	
 
    

 

Pursuant to the Omthera Pharmaceuticals, Inc. 2013 Stock Option and Incentive Plan as amended through the date hereof (the “Plan”), Omthera Pharmaceuticals, Inc. (the “Company”) hereby grants an award of the number of Restricted Stock Units listed above (an “Award”) to the Grantee named above.  Each Restricted Stock Unit shall relate to one share of Common Stock, par value $0.001 per share (the “Stock”) of the Company.

 

1.                                      Restrictions on Transfer of Award.  This Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of by the Grantee, and any shares of Stock issuable with respect to the Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of until (i) the Restricted Stock Units have vested as provided in Paragraph 2 of this Agreement and (ii) shares of Stock have been issued to the Grantee in accordance with the terms of the Plan and this Agreement.

 

2.                                      Vesting of Restricted Stock Units.  The restrictions and conditions of Paragraph 1 of this Agreement shall lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains an employee of the Company or a Subsidiary on such Dates.  If a series of Vesting Dates is specified, then the restrictions and conditions in Paragraph 1 shall lapse only with respect to the number of Restricted Stock Units specified as vested on such date.

 

	
Incremental Number of
   Restricted Stock Units Vested
    	
 
    	
Vesting Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    	
 
    

 

The Administrator may at any time accelerate the vesting schedule specified in this Paragraph 2.

 

3.                                      Termination of Employment.  If the Grantee’s employment with the Company and its Subsidiaries terminates for any reason (including death or disability) prior to the satisfaction of the vesting conditions set forth in Paragraph 2 above, any Restricted Stock Units that have not vested as of such date shall automatically and without notice terminate and be forfeited, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal

 

 

representatives will thereafter have any further rights or interests in such unvested Restricted Stock Units.

 

4.                                      Issuance of Shares of Stock.  As soon as practicable following each Vesting Date (but in no event later than two and one-half months after the end of the year in which the Vesting Date occurs), the Company shall issue to the Grantee the number of shares of Stock equal to the aggregate number of Restricted Stock Units that have vested pursuant to Paragraph 2 of this Agreement on such date and the Grantee shall thereafter have all the rights of a stockholder of the Company with respect to such shares.

 

5.                                      Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Agreement shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

 

6.                                      Tax Withholding.   The Grantee shall, not later than the date as of which the receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event.  The Company shall have the authority to cause the required minimum tax withholding obligation to be satisfied, in whole or in part, by withholding from shares of Stock to be issued to the Grantee a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due.

 

7.                                      Section 409A of the Code.  This Agreement shall be interpreted in such a manner that all provisions relating to the settlement of the Award are exempt from the requirements of Section 409A of the Code as “short-term deferrals” as described in Section 409A of the Code.

 

8.                                      No Obligation to Continue Employment.  Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the employment of the Grantee at any time.

 

9.                                      Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Award and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

10.                               Data Privacy Consent.  In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv)

 

2

 

authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate.  The Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

 

11.                               Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

 

	
 
    	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    

 

 

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s instructions to the Grantee (including through an online acceptance process) is acceptable.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Grantee’s   Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Grantee’s   name and address:
    
	
 
    	
 
    	
 
    

 

3

 

RESTRICTED STOCK AWARD AGREEMENT
 UNDER THE OMTHERA PHARMACEUTICALS, INC.
 2013 STOCK OPTION AND INCENTIVE PLAN

 

Name of Grantee:

 

No. of Shares:

 

Grant Date:

 

Pursuant to the Omthera Pharmaceuticals, Inc. 2013 Stock Option and Incentive Plan (the “Plan”) as amended through the date hereof, Omthera Pharmaceuticals, Inc. (the “Company”) hereby grants a Restricted Stock Award (an “Award”) to the Grantee named above.  Upon acceptance of this Award, the Grantee shall receive the number of shares of Common Stock, par value $0.001 per share (the “Stock”) of the Company specified above, subject to the restrictions and conditions set forth herein and in the Plan.  The Company acknowledges the receipt from the Grantee of consideration with respect to the par value of the Stock in the form of cash, past or future services rendered to the Company by the Grantee or such other form of consideration as is acceptable to the Administrator.

 

1.                                      Award.  The shares of Restricted Stock awarded hereunder shall be issued and held by the Company’s transfer agent in book entry form, and the Grantee’s name shall be entered as the stockholder of record on the books of the Company.  Thereupon, the Grantee shall have all the rights of a stockholder with respect to such shares, including voting and dividend rights, subject, however, to the restrictions and conditions specified in Paragraph 2 below.  The Grantee shall (i) sign and deliver to the Company a copy of this Award Agreement and (ii) deliver to the Company a stock power endorsed in blank.

 

2.                                      Restrictions and Conditions.

 

(a)                                 Any book entries for the shares of Restricted Stock granted herein shall bear an appropriate legend, as determined by the Administrator in its sole discretion, to the effect that such shares are subject to restrictions as set forth herein and in the Plan.

 

(b)                                 Shares of Restricted Stock granted herein may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of by the Grantee prior to vesting.

 

(c)                                  If the Grantee’s employment with the Company and its Subsidiaries is voluntarily or involuntarily terminated for any reason (including death) prior to vesting of shares of Restricted Stock granted herein, all shares of Restricted Stock shall immediately and automatically be forfeited and returned to the Company.

 

3.                                      Vesting of Restricted Stock.  The restrictions and conditions in Paragraph 2 of this Agreement shall lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains an employee of the Company or a Subsidiary on such Dates.  If a series

 

 

of Vesting Dates is specified, then the restrictions and conditions in Paragraph 2 shall lapse only with respect to the number of shares of Restricted Stock specified as vested on such date.

 

	
Incremental Number
   of Shares Vested
    	
 
    	
Vesting Date
    
	
 
    	
 
    	
 
    
	
(    
    	
)%
    	
 
    
	
(    
    	
)%
    	
 
    
	
(    
    	
)%
    	
 
    
	
(    
    	
)%
    	
 
    
	
(    
    	
)%
    	
 
    

 

Subsequent to such Vesting Date or Dates, the shares of Stock on which all restrictions and conditions have lapsed shall no longer be deemed Restricted Stock.  The Administrator may at any time accelerate the vesting schedule specified in this Paragraph 3.

 

4.                                      Dividends.  Dividends on shares of Restricted Stock shall be paid currently to the Grantee.

 

5.                                      Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Award shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

 

6.                                      Transferability.  This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.

 

7.                                      Tax Withholding.  The Grantee shall, not later than the date as of which the receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event.  Except in the case where an election is made pursuant to Paragraph 8 below, the Company shall have the authority to cause the required minimum tax withholding obligation to be satisfied, in whole or in part, by withholding from shares of Stock to be issued or released by the transfer agent a number of shares of Stock with an aggregate Fair Market Value that would satisfy the minimum withholding amount due.

 

8.                                      Election Under Section 83(b).  The Grantee and the Company hereby agree that the Grantee may, within 30 days following the Grant Date of this Award, file with the Internal Revenue Service and the Company an election under Section 83(b) of the Internal Revenue Code.  In the event the Grantee makes such an election, he or she agrees to provide a copy of the election to the Company.  The Grantee acknowledges that he or she is responsible for obtaining the advice of his or her tax advisors with regard to the Section 83(b) election and that he or she is relying solely on such advisors and not on any statements or representations of the Company or any of its agents with regard to such election.

 

2

 

9.                                      No Obligation to Continue Employment.  Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the employment of the Grantee at any time.

 

10.                               Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Award and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

11.                               Data Privacy Consent.  In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate.  The Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

 

3

 

12.                               Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

 

	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    

 

 

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s instructions to the Grantee (including through an online acceptance process) is acceptable.

 

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Grantee’s   Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Grantee’s   name and address:
    

 

 

4

 

RESTRICTED STOCK UNIT AWARD AGREEMENT
 FOR NON-EMPLOYEE DIRECTORS
 UNDER OMTHERA PHARMACEUTICALS, INC.
 2013 STOCK OPTION AND INCENTIVE PLAN

 

	
Name   of Grantee:
    	
 
    
	
 
    	
 
    
	
No. of   Restricted Stock Units:
    	
 
    
	
 
    	
 
    
	
Grant   Date:
    	
 
    

 

Pursuant to the Omthera Pharmaceuticals, Inc. 2013 Stock Option and Incentive Plan as amended through the date hereof (the “Plan”), Omthera Pharmaceuticals, Inc. (the “Company”) hereby grants an award of the number of Restricted Stock Units listed above (an “Award”) to the Grantee named above.  Each Restricted Stock Unit shall relate to one share of Common Stock, par value $0.001 per share (the “Stock”) of the Company.

 

1.                                      Restrictions on Transfer of Award.  This Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of by the Grantee, and any shares of Stock issuable with respect to the Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of until (i) the Restricted Stock Units have vested as provided in Paragraph 2 of this Agreement and (ii) shares of Stock have been issued to the Grantee in accordance with the terms of the Plan and this Agreement.

 

2.                                      Vesting of Restricted Stock Units.  The restrictions and conditions of Paragraph 1 of this Agreement shall lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains in service as a member of the Board on such Dates.  If a series of Vesting Dates is specified, then the restrictions and conditions in Paragraph 1 shall lapse only with respect to the number of Restricted Stock Units specified as vested on such date.

 

	
Incremental Number of
   Restricted Stock Units Vested
    	
 
    	
Vesting Date
    
	
 
    	
 
    	
 
    
	
(      
    	
)%
    	
 
    
	
(      
    	
)%
    	
 
    
	
(      
    	
)%
    	
 
    
	
(      
    	
)%
    	
 
    

 

The Administrator may at any time accelerate the vesting schedule specified in this Paragraph 2.

 

3.                                      Termination of Service.  If the Grantee’s service with the Company and its Subsidiaries terminates for any reason (including death or disability) prior to the satisfaction of the vesting conditions set forth in Paragraph 2 above, any Restricted Stock Units that have not vested as of such date shall automatically and without notice terminate and be forfeited, and

 

 

neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such unvested Restricted Stock Units.

 

4.                                      Issuance of Shares of Stock.  As soon as practicable following each Vesting Date (but in no event later than two and one-half months after the end of the year in which the Vesting Date occurs), the Company shall issue to the Grantee the number of shares of Stock equal to the aggregate number of Restricted Stock Units that have vested pursuant to Paragraph 2 of this Agreement on such date and the Grantee shall thereafter have all the rights of a stockholder of the Company with respect to such shares.

 

5.                                      Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Agreement shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

 

6.                                      Section 409A of the Code.  This Agreement shall be interpreted in such a manner that all provisions relating to the settlement of the Award are exempt from the requirements of Section 409A of the Code as “short-term deferrals” as described in Section 409A of the Code.

 

7.                                      No Obligation to Continue as a Director.  Neither the Plan nor this Award confers upon the Grantee any rights with respect to continuance as a Director.

 

8.                                      Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Award and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

9.                                      Data Privacy Consent.  In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate.  The Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

 

2

 

10.                               Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

 

	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    

 

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s instructions to the Grantee (including through an online acceptance process) is acceptable.

 

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
Grantee’s   Signature
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Grantee’s   name and address:
    
	
 
    	
 
    

 

3Exhibit 10.3

 

EXECUTION VERSION

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

Omthera Pharmaceuticals, Inc.

 

License Agreement between

 

PVT Polyver Trust AG

 

and

 

Omthera Pharmaceuticals, Inc.

 

November 13, 2009

 

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

License Agreement

 

by and among

 

PVT POLYVER TRUST AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachseln Switzerland

 

(hereinafter referred to as “Polyver” or “Licensor” as the case may be),

 

and

 

Omthera Pharmaceuticals Inc., a company duly established under the laws of Delaware with registered offices at 1209 Orange Street, Wilmington, New Castle, Delaware 19801, USA

 

(hereinafter referred to as “Omthera” or “Licensee” as the case may be),

 

(hereinafter also referred to individually as “Party” or collectively as “Parties”)

 

concerning

 

Epanova®

 

(hereinafter referred to as “the Agreement” or “the License Agreement”)

 

WHEREAS Tillotts Pharma AG (“Tillotts”) is a pharmaceutical company specialized in the manufacture and development of pharmaceutical products, among other things, in the field of omega 3 fatty acids, and holds various intellectual property rights for such product;

 

WHEREAS Tillotts has been sold to Zeria Pharmaceutical Co., Ltd., Japan (hereinafter referred to as “Zeria”), and in this connection has divested all assets related to the product known as Epanova® (hereinafter “Product”, as defined in more detail below);

 

WHEREAS all assets related to the Product are currently held by Polyver;

 

WHEREAS Omthera is a pharmaceutical company, with which Tillotts has concluded a final non-binding Term Sheet on 25th of February, 2009 for the granting of an Exclusive License  of the Product, known as Epanova®, in the Territory (as hereinafter defined);

 

WHEREAS such Term Sheet was also assigned from Tillotts to Polyver;

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

WHEREAS Polyver intends to transfer all assets related to Epanova® to a new company yet to be established (“Newco”);

 

WHEREAS Licensor wishes to entrust Omthera with the development and thereafter commercialization of the Product for the Primary Indication and the Field and any other agreed to indications to be sold as a monotherapy or as a Combination Product (as hereinafter defined) worldwide;

 

WHEREAS Omthera desires and has agreed to use Commercially Reasonable Efforts (as hereinafter defined) to develop, register and commercialize the Product for the Primary Indication, the Field and in the Territory (as hereinafter defined); all on the terms as provided below,

 

NOW, THEREFORE, IT IS AGREED as follows:

 

1.    Definitions

 

The terms defined in this Section 1 shall, for all purposes of this Agreement and its Annexes, have the meanings specified as follows:

 

1.1.         “Additional Indications” shall mean those indications for the Product not already part of the Field of Use as defined hereafter that have been approved for clinical development and marketing by the JSC and have been given Licensor’s written consent as provided in Section 2.1 and can include Rx Indications as well as Non-Rx Uses;

 

1.2.         “Affiliate” shall mean and include in relation to each Party, any person, firm, corporation or other entity: (i) if at least fifty percent (50%) of the voting stock or other equity interest thereof is owned, directly or indirectly, by that Party; (ii) which owns, directly or indirectly, at least fifty percent (50%) of the voting stock or other equity interest of that Party; or (iii) if at least fifty percent (50%) of the voting stock or other equity interest thereof is owned, directly or indirectly, by a person, firm, corporation or other entity that owns, directly or indirectly, at least fifty percent (50%) of the voting stock or other equity interest of that Party, provided that with respect to Licensee, an institutional investor (and any entity that otherwise would be treated as an Affiliate through control exerted by such investor or controlling such investor) shall not be treated as an Affiliate of Licensee hereunder.

 

1.3.         “API” shall mean Active Pharmaceutical Ingredient of the Product, referred to as Omefas® for the Product known as Epanova® (see Annex G);

 

***Confidential Treatment Requested

 

3

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

1.4.         “Change of Control” shall mean a transaction or series of related transactions by the Licensee (other than an equity financing, the principal purpose of which is to raise new capital for the acquired Party or an initial public offering or follow-on public offering), that results directly in the change of:

 

(a)                                 control of more than half of the voting power of the issued share capital of the Licensee by an acquirer; or

 

(b)                                 control of more than half of the issued share capital (excluding any part thereof which carries no right to participate beyond a specified amount in the distribution of either profit or capital) of the Licensee by an acquirer; or

 

(c)                                  control of the power to direct or cause the direction of the management and policies of the Licensee by an acquirer, by virtue of any power conferred under the articles of association or other documents relating to the Licensee.

 

1.5.         “Clinical Trial” shall mean a trial, conducted by either the Licensor or the Licensee or an Affiliate or a Third Party, in which the Product is administered to humans with the goal of generating data (a) to support an application for Regulatory Approvals of such Product or (b) for purposes of marketing the Product;

 

1.6.         “Clinical Trial Costs” shall mean the direct and indirect costs incurred by one or both Parties and any Affiliates or Licensees thereof in connection with a particular Clinical Trial, including, without limitation, fees paid to clinical sites, clinical research organizations (“CRO’s”), patients or volunteers participating in such Clinical Trials and other overhead expense, if any, directly attributable to such Clinical Trial;

 

1.7.         “Combination Product” shall mean a product that includes at least one additional therapeutic agent other than the Product as defined in Section 1.43 below. The additional therapeutic agent in the Combination Product could be (a) co-formulated in a monoproduct to be administered as single capsule or tablet, (b) co-administered to the Product (i.e. in the same blister or package), and/or (c) co-administered separately as additional medication;

 

1.8.         “Commercial Launch” shall mean the date on which Omthera, or an Affiliate or, if applicable, a sub-licensee or any other party on Omthera’s behalf first sells the Product in commercial quantities to customers, including but not

 

***Confidential Treatment Requested

 

4

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

limited to wholesalers or pharmacists, in exchange for consideration in money or money’s worth. The transfer of a reasonable amount of the Product as samples or for any other non-commercial use (such as Clinical Trials) and for which no consideration in excess of costs passes to Omthera or its sub-licensee or to any other party on its behalf, shall not be considered as Commercial Launch;

 

1.9.         “Commercially Reasonable Efforts” shall mean those efforts in accordance with industry standards and resources that would be employed by the relevant Party in connection with developing, and commercializing its own products of similar market potential at a similar stage of product life, taking into account the apparent attributes of the Licensed Product, the competitiveness of the relevant marketplace, the proprietary positions of such product and Third Parties, regulatory structures, including the likelihood of obtaining an Approval, the anticipated profitability of such product, and other relevant factors including, without limitation, technical, legal, scientific or medical factors, and with respect to any objective, reasonable, diligent, good faith efforts to accomplish such objective as such Party would normally use to accomplish a similar objective under similar circumstances;

 

1.10.  “Competing Product” shall mean any Third Party, patented Rx-product which consists of a combination of at least EPA and DHA (as defined in the Product(s) (Section 1.43)) prescribed for the Primary Indication and in the Field of Use, and those Additional Indications agreed upon by the Parties;

 

1.11.  “Confidential Information” shall mean and include but not be limited to all Licensor’s Know How, Licensor’s Data, and proprietary information and materials not in the public domain relating to the Product (e.g. any formula, process, method of manufacture and any other information relating to the manufacture, distribution, sale or use of the Product), the business affairs, research and development activities, results of pre-clinical and clinical trials, national and multinational regulatory proceedings and affairs, finances, plans, contractual relationships and operations of either of the Parties. The terms and conditions of this Agreement, and any of the foregoing of Licensor primarily concerning Product, shall be considered Confidential Information of both Parties (see Section 15); for the sake of clarity, the fact that such Confidential Information shall be considered Confidential Information of both Parties does not confer any rights to such Confidential Information from Disclosing Party (as defined in Section 15.7 hereinafter) to Receiving Party

 

***Confidential Treatment Requested

 

5

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

(as defined in Section 15.7 hereinafter) other than expressly stipulated elsewhere in the Agreement;

 

1.12.  “Core Countries” shall mean [...***...];

 

1.13.  “Effective Date” shall mean the closing of the Financing Round A (see Section 1.21);

 

1.14.  “EMEA” shall mean the  European Medicines Evaluation Agency;

 

1.15.  “Epanova®” shall mean the Trademark owned by Licensor, used for the Product known as Epanova®;

 

1.16.  “Escrow Account” shall mean a bank account in which Omthera shall deposit upfront payments as specified in Section 10.2. and to be prepared by the Parties as necessary (see Annex H);

 

1.17.  “Escrow Agreement” shall mean the agreement between the Parties and an independent escrow agent according to which certain funds are deposited in an Escrow Account in the name of such independent escrow agent acting for both Parties pursuant to instructions (see Annex H) and to be prepared by the Parties as necessary;

 

1.18.  “Exclusive License” shall mean that only Omthera and its Affiliates (or if applicable its sub-licensees) has a license or sub-license from Licensor and its Affiliates for the Product as provided in Section 2.1, which license shall be exclusive even as to Licensor and its Affiliates as well;

 

1.19.  “FDA” shall mean the United States Food & Drug Administration;

 

1.20.  “Field (of Use)” or “Field” shall mean lipid metabolic and cardiovascular (CV) indications (including, without limitation, Primary Indication), as well as non-infectious liver disorders, and shall also include Additional Indications upon Licensor’s written consent as provided in Section 2.1; and can include Non-Rx Uses as well as Rx Indications;

 

1.21.  “Financing Round A” shall mean Omthera’s and venture capitalist’s (VC’s) signing of the first VC financial investment in Omthera, which could mean [...***...], the first payment of which would be no later than December 31, 2009, and for clarity, the “the closing date of Financing Round A” shall mean the first closing of at least  [...***...];

 

1.22.  “Generic Encroachment” shall mean any Competing Product(s) as in Section 1.10 and any product(s) that is off patent and/or has no patent

 

***Confidential Treatment Requested

 

6

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

protection that is sold as a prescription product which is launched taking [...***...]  over  a [...***...] - month period by reference to the pre-generic launch market share in the Primary Indication and Field as well as Additional Indications in a country after the launch of the Product, as measured by IMS Health or equivalent data bases in any of the Field and Primary Indication and in any Additional Indications and is sold at a substantially lower price [...***...]  than Product. [...***...];

 

1.23.  “IND” shall mean Investigational New Drug filing with the FDA;

 

1.24.  “Invention(s)” shall mean any invention, development, result, know-how or other information, and all intellectual property relating thereto, made, discovered or developed (i) solely by a Party and its employees or agents pursuant to work performed under the Agreement or (ii) jointly by the Parties and their employees or agents pursuant to work performed under the Agreement;

 

1.25.  “IP” shall mean intellectual property, Trademarks, Inventions and Know-how, and patent rights and other intellectual property rights arising therefrom;

 

1.26.  “Joint IP” shall mean all future IP developed by or on behalf of the Parties jointly together and will be owned by the Parties fifty-fifty (50/50); for clarity, a patent right will be Joint IP hereunder only if there are inventors thereon from each Party.  Licensor will grant its portion of Joint IP as part of the Exclusive License. Reciprocally Omthera shall grant Licensor world-wide, exclusive rights, free of costs, to its portion of Joint IP within the scope of the Exclusive License in the event that the rights granted to Omthera under the Agreement should revert back to Licensor upon termination as provided in Sections 19 to 21 so that this Omthera grant will apply on a country-by-country, region-by-region basis.;

 

1.27.  “JSC” shall mean Joint Steering Committee(s), which will be composed of Licensor’s and Omthera’s representatives (see Annex A);

 

1.28.  “KFDA” shall mean Korean Food and Drug Administration;

 

1.29.  “Know-how” shall mean all Confidential Information in connection with the Product and all creative and technical input with respect to the formula, process, method of manufacture, sale and use of the Product, including but not limited to Annex E;

 

***Confidential Treatment Requested

 

7

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

1.30.  “Licensed IP” shall mean Licensor’s Patents and Trademarks and Licensor’s Know-How;

 

All future IP developed jointly together will be Joint IP, as provided in that definition. IP developed independently or solely by or on behalf of either Party, including, without limitation, already filed patents or patents with inventors of only one Party, will remain solely owned IP of the developing Party;

 

1.31.  “Licensee” or “Omthera” shall mean Omthera Pharmaceuticals Inc.;

 

1.32.  “Licensor” or “Polyver” or “Newco” shall mean PVT Polyver Trust AG or Newco or one or more Affiliates or related companies thereof in which the rights to the Product may be vested;

 

1.33.  “NDA” shall mean a New Drug Application filed with the U.S. FDA;

 

1.34.  “Net Sales” shall mean the gross amount invoiced by Omthera, its Affiliates, and its sub-licensees, for any sale of a Product to a Third Party in a bona fide arm’s length transaction, less the following deductions to the extent actually allowed or specifically allocated to the Product by the selling party using generally accepted accounting standards:

 

1.34.1.                            transportation charges to the extent they are included in the price or otherwise paid by the purchaser, including insurance for transporting Product(s), provided always that such deduction shall not be greater than the balance between the selling price actually invoiced to the Third Party and the standard selling price which would have been charged to such Third Party for such Product exclusive of freight and insurance in the respective country or in a comparable country;

 

1.34.2.                            sales and excise taxes (including, without limitation, VAT) and any other governmental charges imposed upon the production, importation, use or sale of Product(s);

 

1.34.3.                            bad debts based on substantial proof for sales of Product that are actually written off;

 

1.34.4.                            customary trade, quantity and cash discounts, charge-back payments and rebates (including, without limitation, those granted to managed health care organizations or to federal, state and local governments (or their respective agencies, purchasers and reimbursers)), and allowances or credits for retroactive price reductions; excluding

 

***Confidential Treatment Requested

 

8

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

promotions and marketing discounts such as one-offs, quantity discounts, etc. that are clearly marketing promotional expenses; and

 

1.34.5.                            allowances or credits to customers or charge backs from customers actually paid on account of rejection or return or recall of a Product subject to royalty hereunder.

 

1.34.6.                            For the avoidance of doubt, for each Product the Net Sales shall be calculated only once for the first sale of such Product by either Omthera, its Affiliate, or its sub-licensee, as the case may be, to a Third Party which is neither an Affiliate or sub-licensee of Omthera. A sale of Product(s) to a wholesaler shall be regarded as the first sale of the Product for the purpose of calculating Net Sales.

 

In the case of Omthera or any Affiliates of Omthera selling the Product(s), the Net Sales refer to the sales directly generated from the sale of the Product(s) by Omthera or its Affiliates as the selling party to Third Parties such as, but not limited to, wholesalers, less usual deductions to the extent actually allowed or specifically allocated to the Product(s) by the selling party using generally accepted accounting standards.

 

In the case of sales by a sub-licensee, the Net Sales shall be as above but defined as that of the sub-licensee, and the royalty payable to Licensor shall be paid by the sub-licensee via Omthera as set out in Annex B.

 

In the event Product(s) are sold as part of a Combination Product (as defined below), the Net Sales of the Product(s), for the purposes of determining royalty payments, shall be determined by multiplying the Net Sales of the Combination Product by the fraction A/(A+B), where A is the weighted (by sales volume in such country) average sale price of Product(s) when sold separately in finished form and B is the weighted average sale price of the other product(s) sold separately in finished form in such country. In the event that such average sale price cannot be determined for the Product(s) and the other product(s) in combination, Net Sales for purposes of determining royalty payments shall be mutually agreed by the Parties within a reasonable period of time prior to the first Regulatory Approval of such Combination Product based on all relevant factors including relative cost and the relative value contributed by each component, and such agreement shall not be unreasonably withheld.

 

1.35.  “Non-Rx Uses” or “OTC” or “Non-Rx” or “over-the-counter” shall mean pharmaceutical products approved by the FDA or other regulatory

 

***Confidential Treatment Requested

 

9

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

authority to be sold over the counter (OTC) without a prescription for human use.

 

1.36.  “Omefas®” shall mean the trademark owned by Licensor and used as designation of the API for the Product known as Epanova®;

 

1.37.  “ONC” shall mean Ocean Nutrition Canada Limited, a privately held company in the business of researching, manufacturing, and marketing Omega-3 products and being the Third party presently responsible for the supply of Omefas® and being the company with whom Licensor has signed a supply agreement.

 

1.38.  “Other Payments” shall mean any non-royalty payments that Omthera receives from a sub-licensee in consideration of the sub-license of rights granted to Omthera under this License Agreement including such as, but not limited to, signing-fees and milestone payments and payments by Third Parties in the form of equity (see Section 9);

 

1.39.  “Out-of-Pocket Expenses” shall mean travel expenses (transport, meals and accommodation), telephone, and all expenses incurred in servicing;

 

1.40.  “Patent Royalty” shall mean the percentage of Total Annual Product Net Sales (as defined herein) generated by the Product and due to Licensor for as long as there is patent protection on Product or  fifteen years (15) from date of the Commercial Launch, whichever is longer, wherein “patent protection” for this Agreement means that the sale of Product by anyone else except for Omthera and/or its Affiliates and sub-licensees in the applicable country infringes a (i) valid, (ii) enforceable, and (iii) issued or applied for Licensor Patent in such country. The Patent Royalty applies on a country-by-country basis for the whole Territory cumulatively and for each patent protection individually. In case of a sub-license, the royalties due to Licensor apply to the total of sub-licensees’ Net Sales of Product (see Section 8);

 

1.41.  “PMDA” shall mean the Japanese Pharmaceutical and Medical Device Agency;

 

1.42.  “Primary Indication” shall mean each of (i) the reduction of “very high triglycerides” (triglyceride levels of more than or equal to 500 mg/dL) and (ii) prevention or treatment of pancreatitis; and can include Non-Rx Uses as well as Rx Indications;

 

1.43.  “Product(s)” shall mean an oral dosage form containing as an active principle a mixture of omega-3 polyunsaturated fatty acids in free acid form or

 

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pharmaceutically acceptable salts thereof, said mixture comprising (all-Z)-5,8,11,14,17-eicosapentaenoic acid (EPA) and (all-Z)-4,7,10,13,16,19-docosahexaenoic acid (DHA), provided that the resulting Product or such mixture falls within the scope of one or more of claims of the Licensor’s Patents listed in Annex G anywhere in the Territory, including a Product  of such mixture having EPA in the range of 50%-65% and DHA in the range of 10%-25%; for clarity, the expiration of, or a determination of invalidity or unenforceability of, any issued Licensor’s Patents shall not act to reduce the scope of this “Product” definition. Licensor hereby confirms that an example of a suitable mixture is Omefas®, used as API for Epanova®, and that in all events Epanova® and Omefas® will be “Products” hereunder.  “Product(s)” include Combination Products.  Where applicable, references to “Product” hereunder shall mean “Product(s)”, and vice-versa;

 

1.44.  “Regulatory Approval” shall mean all such approvals by any competent national or supranational drug regulatory body or agency, that are legally necessary to promote, market, store, distribute and otherwise handle, and/or sell the Product(s) in a country and/or territory;

 

1.45.  Rx Indications” shall mean all indications which are within the Primary Indication, Field and Additional Indications of the Product in which the Product is sold as a prescription drug;

 

1.46.  “SFDA” shall mean the Chinese Food and Drug Administration;

 

1.47.  “Territory” shall mean all countries of the world;

 

1.48.  “Third Party” shall mean an entity other than Licensor and its Affiliates and Omthera and its Affiliates;

 

1.49.  “Licensor’s Data” shall mean all data generated in the course of the development of the Product for the indication of Crohn’s Disease (Annex E);

 

1.50.  “Licensor’s Know-How” shall mean but not be limited to the information included in Annex E, such as:

 

·                  Technical, preclinical Know-how included and not included in patents

 

·                  Manufacturing Know-how

 

·                  Clinical Know-how (including, without limitation, Licensor’s Data)

 

·                  Regulatory Know-how and documentation

 

all of which is owned or controlled by Licensor or any of its Affiliates during the term of this Agreement and that is reasonably necessary to develop,

 

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register and commercialize the Product within the Territory.  Such Know-How shall not be transferred to Omthera and thus continue to belong to Licensor and be licensed to Omthera hereunder (save for the existing US IND for Product, which will be assigned by Licensor to Omthera pursuant to Section 2.5).  Licensor will provide Omthera with copies of Licensor’s Know-How and regulatory filings and approvals and will assist Omthera with the use of those items (see Annex E).

 

1.51.  “Licensor’s Patents” shall mean the legal rights under any patent or patent applications in the Territory, including any substitution, extension or supplementary protection certificate, reissue, re-examination, renewal, division, continuation or continuations-in-part, that (i) is owned or controlled by Licensor or any of its Affiliates during the term of this Agreement and (ii) in the absence of rights thereunder, would be infringed by the making, having made, using, offering for sale, selling, exporting or importing of Product (see Annex G);

 

1.52.  “Total Annual Product Net Sales” shall mean the total Net Sales (as defined herein) of the Product in one calendar year;

 

1.53.  “Trademark and Know-How Royalty” shall mean the percentage of Total Annual Product Net Sales due to Licensor for a period of  [...***...] years  after the end of the Patent Royalty in the applicable country for the licensing of the Trademark and of Licensor’s Know-How. The Trademark and Know-How Royalty applies on a country-by-country basis for the whole Territory cumulatively. The royalty rates due to Licensor will be reduced by [...***...] in relation to Patent Royalty during that period as provided on Annex B. In case of a sub-license, the royalties due to Licensor apply to the total of sub-licensees’ Net Sales of Product (see Section 8);

 

1.54.  “Trademarks” shall mean Omefas® and Epanova®, as well as any other trademarks appearing in Annex G, owned by Licensor licensed to Omthera for the duration of this Agreement;

 

1.55.  “Venture Capital Contract(s)” shall mean the signed contract(s) between Omthera and the venture capital firms for the Financing Round A, which Omthera will provide to Licensor upon signature and attached hereto as Annex D;

 

1.56.  “Venture Capital Term Sheet(s)” shall mean the signed term sheet(s) between Omthera and the venture capital firm(s) for the Financing Round A,

 

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which Omthera will provide to Licensor prior to the signature of this Agreement and which will be attached hereto as Annex D.

 

2.                           Patent License / Licensed Product

 

2.1.                 Licensor hereby grants Omthera and its Affiliates an Exclusive License in the Territory under Licensor’s Patents and Licensor’s Know-how to develop, commercialize, market, use, offer to sell, sell, promote, export and import the Product and to otherwise carry out activities in relation to the Product in any and all fields, but Omthera and its Affiliates and sub-licensees may exercise the Exclusive License only in the Field of Use, all as contemplated by this Agreement. The Exclusive License granted may be extended to include Additional Indications upon Omthera’s written request, subject to written approval by Licensor.

 

2.2.                  Licensor will assign control of manufacturing of the Product to Omthera as provided in Section 12, whereupon the Exclusive License in Section 2.1 will include the right to make and have made Product.

 

2.3.                  Omthera may sub-license any rights granted under this Agreement in accordance with Section 2.4, but only upon prior written approval by Licensor, any such approval only to be withheld by Licensor for “Good Reasons”. “Good Reason” shall be defined as follows:

 

a.                          the proposed sub-licensee does not have the financial funds available at the time of sub-licensing needed to fulfill its task in a professional manner; with the understanding that if such proposed sub-licensee (together with its Affiliates) has financial statements (using generally accepted accounting standards) at least as strong as Omthera’s financial statements at the time of sublicense, then this clause (a) shall not be a Good Reason for Licensor to withhold its approval; or

 

b.                          the proposed sub-licensee is promoting or/and selling or/and developing (Phase II or III and no intention to discontinue the clinical development) a prescription omega 3 polyunsaturated fatty acid formulation with an indication covered by Primary Indication and Field hereinabove, unless agreed by Licensor in writing; or

 

c.                           the proposed sub-licensee does not have the needed experience (through hiring [...***...] for example) and organization to promote diligently the Product.

 

Licensor shall indicate in writing within thirty (30) days upon Omthera’s written request whether a prospective sub-licensee of Omthera will not receive Licensor’s approval.

 

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2.4.                  Any sub-license by Omthera, of the rights granted to Omthera, shall be consistent with the terms of this License Agreement, shall contain provisions necessary to effectuate the terms of this License Agreement, and shall include an obligation that the sub-licensee comply with the applicable obligations of this License Agreement hereof pertaining to reports and audits, pertaining to intellectual property rights, and pertaining to confidentiality. Furthermore, Omthera shall notify Licensor in writing if any sub-licensee fails to materially comply with the applicable provisions of this License Agreement.  If this Agreement is terminated for any reason, then any sub-licensee in good standing may request by written notice to Licensor within thirty (30) days of such termination to have its rights derived from this Agreement licensed directly to such sub-licensee by Licensor in lieu of such sub-license through Omthera. Licensor may deny such request only for good reasons and within thirty (30) days from receipt of such written request. A good reason for the purposes of this Section 2.4 will be  [...***...] Licensor will not have the right to grant a direct license to such sub-licensee due to the application of US bankruptcy laws to Omthera. In case of approval by Licensor, such sub-licensee and Licensor shall promptly thereafter memorialize such license in writing, provided that (i) such license shall not place any additional obligations on Licensor, (ii) the payments made under such license by such sub-licensee shall be the same as Licensor would have received from Omthera on account of such sub-licensee’s activities, and (iii) Section 21 shall be modified accordingly to take account of the license to sub-licensee.

 

2.5.                  Omthera (not Licensor) will file the next US IND for Product.  Licensor will promptly assign to Omthera the existing US IND for Product.  Omthera will reimburse Licensor for all Out-of-Pocket Expenses incurred by Licensor after the Effective Date in assigning such existing US IND, including all payments made by Licensor to government and regulatory agencies for such assignment.

 

2.6.                  All additionally requested FTE and Out-of-Pocket expenses that have been agreed to be reimbursed by Omthera in writing and incurred after the February 25th, 2009 Term-Sheet will also be reimbursed upon submission of invoices (and, if applicable, time logs) from Licensor. These include time requested for [...***...] Annex I sets forth the total amounts to be reimbursed by Omthera that were accrued before the signature of this Agreement, and Omthera shall not have any obligation to pay any other amounts accrued before the signature of this Agreement. For clarity, each Party shall pay and be solely

 

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Under 17 C.F.R. Sections 200.80(b)(4)

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responsible for the fees and expenses of its financial and business advisors and legal counsel with respect to entering into this Agreement.

 

3.         Trademark and Know-How License

 

3.1                     For the duration of this Agreement, Licensor hereby grants Omthera and its Affiliates an exclusive license to use its Trademarks solely in connection with the API and the Product for use in the Field and all agreed to Additional Indications.  Omthera may elect to use a different trademark for Product, this does not relieve Omthera from the full payment of any Trademark and Know-how Royalty whatsoever. Notwithstanding the use of a different trademark, Omthera shall take all necessary measures to maintain all of Licensor’s rights to the Trademarks in all countries that it plans to market. Additionally, it will inform Licensor of any countries where Licensor’s Trademarks are in danger of being invalidated due to non-use.

 

3.2                     The license granted under Section 3.1 hereof includes the right of Omthera to grant sub-licenses, in accordance with the terms and conditions of the License Agreement, to approved sub-licensees according to Section 2.3.

 

3.3                     The future reasonable out-of-pocket costs associated with registering, prosecuting and maintaining of the Trademarks shall be shared equally by the Parties.

 

4.         Sequence of Commercial Launch

 

Notwithstanding the license being granted for the Territory, it is hereby understood that Omthera (or its Affiliates or sub-licensees) undertakes Commercially Reasonable Efforts for the Commercial Launch of the Product(s) (post Regulatory Approval) in all Core Countries in a timely manner, [...***...].

 

5.                           Development and Commercialization

 

5.1                     Omthera and/or its Affiliates and sub-licensees shall undertake Commercially Reasonable Efforts to develop, register and thereafter commercialize the Product for the Primary Indication first, and optionally in the rest of the Field and, subject to Section 2.1, in Additional Indications in the Core Countries. For clarity, once Product is approved and commercialized in the Primary Indication, the foregoing development obligations shall be deemed satisfied. In that regard, with respect to any particular country in the Territory, Omthera and/or its Affiliates and sub-licensees shall first undertake Commercially Reasonable Efforts to develop Product for Rx Indications as opposed to Non-Rx Use, provided that if the market

 

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conditions in such country recommend that such Product be developed and launched first for a Non-Rx Use instead of for an Rx Indication, then Omthera will inform Licensor and may proceed after approval by the JSC (as defined hereinafter).

 

5.2                     Omthera will draft a development plan for each indication in the Field it wishes to develop the Product and present it to the JSC for approval (see Section 6) prior to CRO contract signature by Omthera. In addition, Omthera will submit to the JSC clinical development reports quarterly (see also Annex A to this Agreement). The same will apply for any Additional Indications.

 

5.3                     Omthera will pay for all clinical and regulatory costs that are necessary for the development and commercialization of the Product in the Field and Primary Indication as agreed by the JSC. Initial clinical samples will be purchased by Omthera from Licensor’s Product suppliers (ONC) at  [...***...].

 

5.4                     If Omthera (or its Affiliates or sub-licensees) should not use Commercially Reasonable Efforts to commence a Clinical Trial program for the Product in the Primary Indication, as defined by the JSC (see Section 6), for the Regulatory Approval of at least the EMEA and the PMDA [...***...] months after [...***...], with respect to the EU or Japan for which the foregoing did not occur, the license shall revert back to Licensor for the EU or Japan as applicable and the Milestones (iii) and (iv) as per Section 11 for the reverted region shall not be applicable any longer. Commencement of a Clinical Trial program is understood as the first dosing of the first patient into the reasonably expected last study required to gain Regulatory Approval by the EMEA or PMDA.

 

6.         Joint Steering Committee(s)

 

6.1                   One or, as the case may be, several Joint Steering Committee(s) (JSC) will be set up by the Parties within ninety (90) days of the Effective Date. The JSC shall be composed of an equal number of Licensor’s and Omthera’s representatives (“Representatives”), whereas, in addition to the Representatives, each JSC will be chaired by a Chairperson. The JSC will have a maximum of three (3) members from each Party with the possibility to include other — non-voting — experts, if necessary.

 

6.2                   The task of the JSC shall be to make the necessary decisions for (i) the technical support required for clinical and commercial supply, (ii) the regulatory support, (iii) the supervision of IP and Trademarks related issues, (iv) the clinical development and (v) commercial issues (i.e. commercialization of Product, out-

 

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or sub-licensing of Product) in order to secure an efficient development and successful commercialization of the Product for the Primary Indication and Fields, as well as, if appropriate, Additional Indications, all subject to the terms and conditions of this Agreement.

 

6.3                   The role and function of the JSC is defined in more detail in Annex A to this Agreement; as described therein, each of Licensor and Omthera will have one vote on each JSC.

 

6.4                   Omthera will chair all but one JSC and thus through the Chairperson have one additional voting power in the case of a tie vote between the Parties. The JSC related to IP & Trademarks will be chaired by Licensor or its nominee. The Chairperson must vote in the case of a tie vote to break a tie vote between the Parties, but only after the Party’s CEOs (or senior persons designated by the CEOs) has been unsuccessful in resolving the disagreement in question, all pursuant to the terms of Annex A.

 

6.5                   The JSC will make every attempt to resolve disputes in good faith and by mutual agreement in accordance with the procedure outlined in Annex A to this Agreement.

 

6.6                   In case of any inconsistency between the provisions of Annex A and the provisions in this Section 6, the provisions in Annex A shall prevail.

 

7.                           Costs Refunded to Licensor for Clinical Development, Regulatory and Technical Support

 

7.1                   Licensor will provide support to Omthera as requested by Omthera and agreed by the JSC. Licensor’s FTE costs (human resources costs on the basis of full time equivalents) for clinical development, regulatory and technical support (manufacturing) will be charged to Omthera at  [...***...]. Licensor’s advisors, if their support is requested, will be charged at cost plus Out-of-Pocket Expenses.

 

Any regulatory and clinical expenses incurred by Licensor for work requested in writing by Omthera will be reimbursed by Omthera at  [...***...].

 

7.2                   These FTE rates in Section 7.1 will be used for all work requested and agreed to be paid by Omthera after 25 February 2009 (Effective Date of Term Sheet).  (see Section 2.6).

 

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8.         Royalty Rates

 

8.1                   The royalties to be paid to Licensor by Omthera are to be calculated as a percentage of annual Net Sales generated by the sales of Product on the terms and for the period of time specified in the definition of “Patent Royalty”.

 

8.2                   After the end of the Patent Royalty on a country-by-country basis, the rates of the royalties due to Licensor will be reduced by [...***...] on the terms and for the period of time specified in the definition of “Trademark and Know-How Royalty” and in Annex B.

 

8.3                   The annual royalties shall be calculated on a country-by-country basis for the whole Territory cumulatively. In case of a sub-license, the royalties due to Licensor apply to the total of Omthera’s and sub-licensees’ Net Sales of Product.

 

8.4                   In case (i) one or several of the patents belonging to the Licensed IP should be or become wholly or partly invalid or unenforceable in one or several countries (excluding the natural patent expiry of patents from the patent family 1 according to Annex G) and a Generic Encroachment occurs, (ii) the scope of one or several of the patents belonging to Licensed IP should be narrowed and a Generic Encroachment occurs, (iii) the Licensor is in material breach of any of its representations or warranties in Sections 23.3 or 23.4, or (iv) a Generic Encroachment is sold in a country with no valid or enforceable Licensed IP patent claims asserted against or infringed by the sale of such Generic Encroachment, the royalty rates shall be reduced by [...***...] in such country or countries. In the case of any inconsistencies between the provisions of this Section 8.4 and the provisions of Sections 1.40 and 1.53 the provisions of Sections 1.40 and 1.53 shall prevail. For the avoidance of doubt, the reduction by  [...***...]  of Patent Royalties may only occur  [...***...]. Thereafter, no further deductions will be possible for any royalty period other than as stipulated in Sections 8.5 and 8.7. For the further avoidance of doubt the Trademark & Know-How Royalty is not subject to any reduction following Generic Encroachment or for any other reason except under Sections 8.5 or 8.7 if applicable.

 

8.5                   In addition, if Licensee or any of its Affiliates or sub-licensees, based upon a decision of the JSC for commercial issues as described in Section 6 above, pays royalties to a Third Party for a license to any patent or other intellectual property rights with respect to the development or commercialization (including the manufacture, use, sale, offer for sale or importation) of Product, then the royalty rates set forth on Annex B due Licensor may be reduced as follows: [...***...]

 

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[...***...] of the royalties paid or payable to Third Parties may be deducted from the royalties otherwise due Licensor under this Agreement with a maximum deduction of  [...***...] under this Section 8.5.

 

8.6                   The Patent Royalties and Trademark and Know-How Royalties will be calculated in accordance with the scheme set forth in Section I of Annex B to this Agreement.

 

8.7                   In the event that the royalty share received and retained by Omthera from sub-licensee should be less than royalties share due to Licensor’s as defined in Annex B, Licensor agrees to reduce its royalty share so that in the end each of Omthera and Licensor (directly in the case of Omthera, and indirectly in the case of Licensor) retain the same royalty amount from such sub-licensee, but in no event shall Licensor’s royalty share be less than  [...***...] (as defined and described in Section II to Annex B to this Agreement).

 

8.8                   It is understood and agreed by the Parties that Royalties on Product sales arising from sales activities by sub-licensee(s) shall be due to Licensor by Omthera in accordance to the scheme set forth in Annex B and defined in this Agreement, including in Sections 1.40 and 1.53.

 

9.         Other Payments and Divestitures

 

9.1                   A percentage of all Other Payments will be due to Licensor (“Additional Payments”).

 

9.2                  However, any reimbursements for clinical studies and regulatory expenses, etc. will be excluded from Other Payments to the extent such reimbursements cover both incurred and/or future costs. For the case of doubt, milestone payments that are made after completion of clinical studies are milestone payments and not Clinical Trial Costs reimbursements. Third Parties generally reimburse clinical studies either as they go (such as quarterly or every six months), and these accompany a pre-set budget and clinical plan that is generally supervised by the Third Parties.

 

9.3                   The following scheme would apply for any Additional Payments defined in Section 9.1 which are due to Licensor:

 

·                   [...***...] of Other Payments paid to Omthera based on a transaction concluded by Omthera until [...***...],

 

·                    [...***...] of Other Payments paid to Omthera based on a transaction concluded by Omthera [...***...], or

 

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·                   [...***...]  of Other Payments paid to Omthera based on a transaction concluded by Omthera [...***...].

 

9.4                    In the event of a divestiture of its rights under this Agreement by Omthera,  [...***...] of the proceeds from such transaction will be paid to Licensor, if the company acquiring the rights is promoting or/and selling or/and developing (Phase II or III and no intention to discontinue the clinical development) a prescription omega-3 polyunsaturated fatty acid formulation with an indication covered by Primary Indication and Field hereinabove, such company to include, but not be limited to, [...***...] (“Acquiring Company”), unless such Acquiring Company confirms in writing provided to Licensor within ninety (90) days of completion of the acquisition that it (or its Affiliates and/or sub-licensees) undertakes Commercially Reasonable Efforts to develop and market the Product in the Territory according to Section 5 of this Agreement. For clarity, in no event shall any proceeds resulting from a divestiture of Omthera’s rights under this Agreement to a Third Party that is not an Acquiring Company be payable to Licensor.

 

9.5                    Omthera will need Licensor’s consent (which will not be withheld except for “good reason” as defined below) for every Change of Control of Omthera. The same will apply for a complete divestiture of Omthera. A “good reason” for Licensor to withhold its consent would be the fact that there is good reason by Licensor to assume that the successor does not have the financial funds at the time of transaction needed to fulfill all its obligations under the Agreement such as but not limited to clinical development and/or commercialization, with the understanding that if such successor (together with its Affiliates) has a financial statements (using generally accepted accounting standards) at least as strong as Omthera’s financial statements at the time of the Change of Control, then the foregoing shall not be a good reason for Licensor to withhold its consent.  Licensor shall indicate in writing within thirty (30) days upon Omthera’s written request whether a prospective acquirer in a Change of Control of Omthera will not receive Licensor’s consent.

 

10.       Upfront Payment

 

10.1             An upfront payment, which shall particularly serves the purpose of granting the initial clinical supply (“SCT batches”). The costs of the SCT batches will be made by Omthera to Licensor when due to ONC up to a maximum of  [...***...], unless Omthera pays ONC directly for same. (Relevant invoices to be shared with Licensor with immediate effect).

 

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10.2            This is under the provision that the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C is not assigned to Omthera pursuant to Section 12.1 (see Annex J: Letter of approval of assigning the ONC Supply Agreement from Licensor to Omthera). In case such assignment should not have taken place, the whole upfront payment of up to  [...***...] shall be payable to Licensor when due to ONC as payment for the SCT batches to the extent already ordered by Omthera, provided this Agreement is not terminated pursuant to Sections 12.1 or 19.2 b).

 

11.       Milestone Payments

 

11.1                        The following milestone payments are due for the Primary Indication including the sub-indication of prevention or treatment of pancreatitis, but excluding non-infectious liver disorder (e.g., hepatic steatosis; see Section 11.2.3):

 

  i.    [...***...];

 

 ii.    [...***...];

 

iii.    [...***...];

 

iv.   [...***...].

 

11.2                        The following milestone payments are due for other indications in the Field not addressed by Section 11.1 (Sections 11.2.1 and 11.2.2):

 

  11.2.1  [...***...]:

 

  i.       [...***...];

 

 ii.       [...***...];

 

iii.       [...***...];

 

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iv.      [...***...].

 

  11.2.2        US$ 10,000,000 (in total): Use of the Product either as monotherapy or in combination with other agents in atrial fibrillation, heart failure or CV indications for type II diabetes patients. These are payable as follows:

 

  i.       [...***...];

 

 ii.       [...***...];

 

iii.       [...***...];

 

iv.      [...***...];

 

  11.2.3        Use of the Product in non-infectious liver disorder (e.g., hepatic steatosis) will carry the same amount of milestone payments as in Section 11.2.2;

 

11.3                        Milestone payments for Additional Indications which are not defined above in Section 11.1 or 11.2 will be negotiated in good faith based on the indications’ size of the market, competitive scenario, etc.

 

11.4                        With respect to this Section 11 generally, the Parties understand and agree that Licensee will be obligated to pay a first series of milestone payments for development and approval of Product, likely Section 11.1 given the proposed development program for Product. However, Licensee will not be obligated to pay any additional series of milestone payments under any of Sections 11.1, 11.2, and 11.3 unless all four (4) of the following requirements are satisfied for the Product development and approval at issue: (1) a separate clinical development program was required (which shall not include, for example, additional clinical development agreed to or mandated as part of the regulatory approval process of a different clinical development program); (2) a separate Regulatory Approval was required; (3) the approved indication is new and substantially different from any indication already approved for Product; and (4) the newly approved indication will give a substantially expanded patient pool for Product. For the case of doubt, off-label use in an indication will not be considered. The same rules shall also apply to Combination Products.  If for Combination Products, the four requirements specified above in Section 11.4

 

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(1) to (4) are satisfied, [...***...] of the milestone payments as listed in Sections 11.1, 11.2, and 11.3 are due to the Licensor.

 

12.      Supply

 

12.1              It is understood and agreed by both Parties to assign the Licensor’s agreements related to the manufacturing and supply of the Product to Omthera immediately upon the closing date of Financing Round A and subject to the Third Party supplier’s prior approval. Omthera will meet all obligations of this contract (See Annex C) as the assignee in the name of Licensor (after the closing of the Financing Round A).  In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place within ninety (90) days after closing of Financing Round A, both Parties shall have the right to early terminate the Agreement (see Section 19.2b)) within thirty (30) days after the end of such ninety (90) days period. Post assignment Omthera shall have the right to source the Product  for development and commercialization from such or other Third Party supplier(s). See Annex C - Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®). Notwithstanding any such assignment to Omthera, the amounts payable to ONC under Section 4.4 of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C shall continue to be the responsibility of Licensor, and Licensor shall pay same when due under such agreement.  Once assigned, Omthera will be responsible for the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C as “Tillotts” thereunder, except as provided herein.

 

12.2              It is understood and agreed by the Parties that the API may be manufactured by a Third Party(ies) and encapsulation, coating and packaging thereof may be manufactured by various Third Parties, or by Omthera or any of its Affiliates or sub-licensees.

 

12.3              Licensor and its advisors will continue to advise and support Omthera at Omthera’s written request “at the agreed FTE costs” (see Section 7) in all questions related to the manufacture of Product unless otherwise agreed in writing. With regard to such advice given by employees of Tillotts to Omthera Licensor will secure such advice until 28 February 2011, and Tillotts agrees to respond on a reasonable basis to any reasonable request for such advice after such date.

 

12.4             Omthera shall pay and shall be liable for all supplies (samples, batches, etc.) of Product for Clinical Trials, pre-marketing or other purposes ordered by Omthera.

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

The Parties agree to work together in good faith to reduce Licensor’s cost exposure (such as the use of the Escrow Account etc.).

 

13.                    Liability, Indemnity and Product Recall

 

13.1              In case Omthera decides to manufacture the Product or have the Product manufactured either by ONC based on the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C or by a Third Party of its choice, Omthera shall manufacture or have the Product manufactured entirely at its own risk and responsibility and shall enter into and/or maintain until the expiry of the period of limitation of any potential product liability claim related to the Product a sufficient product liability insurance, according to industry standards for similar products, such insurance to cover the costs of patient law suits and a Product recall which enables it to immediately recall any Product manufactured by itself and/or by the local toll manufacturers, as well as any suits and damages incurred by use of the Product. A copy of this product liability insurance policy shall be delivered to Licensor prior to Omthera starting Clinical Trials. Annex F — Omthera Liability Insurance. Omthera will provide Licensor with any update of such insurance policy at its earliest convenience.

 

13.2              In case of a decision by Omthera to manufacture the Product or have the Product manufactured either by ONC based on the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C or by a Third Party of its choice, Omthera shall indemnify Licensor against all Third Party claims, loss, damage, liability or expenses including reasonable attorneys’ fees and court costs arising from acts or omissions by or on behalf of Omthera and/or its sub-licensees regarding Product, including, without limitation, any and all liability to Third Parties for death and injury arising in relation to alleged Product defects or to the use of the Product, except for gross negligence, willful misconduct or breach of this Agreement by Licensor. Such indemnification shall be subject to the following conditions:(i) Licensor shall notify Omthera promptly of any such claims and liabilities, (ii) Omthera shall be solely responsible for the defense, settlement and discharge of any such claims, and (iii) Licensor shall furnish Omthera with all assistance reasonably requested by Omthera in connection with the defense, settlement and discharge of any such claims and liabilities.

 

14.       Patent Prosecution and Enforcement

 

14.1            Licensor will control and be responsible for preparing, filing, prosecuting, defending, litigating and extending and maintaining Licensor’s Patents for the Product in the Territory using a patent attorney of Licensor’s choice (and

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

reasonably acceptable to Omthera), and subject to prior consultation with Omthera. Licensor will timely provide all materials regarding same for review by and consultation with Omthera (including before making any submissions or statements to any patent office or court).  Each Party will reasonably cooperate with the other in those activities. If Licensor elects not to pursue patent protection in a country with respect to any Licensor’s Patent, then Omthera may elect to do so under its own control.  All recoveries from enforcing any Licensor’s Patent will first be used to reimburse the Parties for their reasonable and evidenced out-of-pocket costs, and any remainder paid to the Parties in accordance with their relative economic interests under this Agreement.  Omthera will have the right to participate with Licensor in any court or administrative proceedings at their own costs.

 

14.2            Omthera will reimburse Licensor  [...***...] of all future out-of-pocket costs for such patent related activities. The JSC for IP issues will decide on all IP related matters; the tie breaking vote to be with Licensor for IP matters. If Omthera wishes to move forward with enforcement or defense of Licensed IP or trademarks licensed to Omthera hereunder in a country or countries and Licensor does not, then Omthera will be free to do so at its own cost with respect to Product or Competing Product (or any like product off patent or without patent protection) in any and all fields.  Omthera will have the right to initiate any such enforcement action by any deadline required to preserve applicable statutory rights (e.g., in the USA, the 30-month stay available upon a PIV generic challenge); at Omthera’s request if legally recommended or required, Licensor will become a named party to any such enforcement action (or if legally required Licensor will prosecute such action in its name alone) and Omthera will fully indemnify Licensor in such role (including, without limitation, reasonable attorneys’ fees); and Omthera will control such action.

 

15.       Confidentiality and Non-Disclosure

 

15.1             Both Parties hereby agree to keep all Confidential Information received from the other Party confidential and, accordingly, not to disclose any Confidential Information to any other person and not to use any Confidential Information for any purpose other than the proper performance of their obligations and exercise of their rights under this Agreement.

 

15.2             Receiving Party will not use any of the Confidential Information in any other way other than for the purposes of this Agreement.

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

15.3             Receiving Party will not disclose or supply either verbally or in writing (electronic or otherwise) any of the Confidential Information to anyone except as expressly authorised by Disclosing Party and in any event not use any of the Confidential Information, in each case except for the purposes of this Agreement. In case Omthera needs to disclose any of Licensor’s Confidential Information to any Third Party in order to fulfill its obligations and exercise its rights under this Agreement (“Permitted Recipients”), Omthera will prior to any disclosure of Confidential Information, conclude a Confidentiality Agreement with such Third Party, which shall be similar stringent as the confidentiality obligations contained in this Agreement.

 

15.4              Receiving Party will mark any copy, reproduction or reduction of to writing any part of the Confidential Information ‘confidential’ and any such copy shall remain the confidential property of Disclosing Party. Any extracts, copies, reproductions or reductions to writing so made shall be the sole property of Disclosing Party and treated in accordance with this Agreement.

 

15.5              The terms of this Agreement shall be binding upon Receiving Party’s (and with respect to Omthera, any Permitted Recipients’) employees, officers, agents and consultants. Receiving Party shall use its best endeavours to enforce such obligations at its expense insofar as breach thereof relates to Confidential Information and it shall restrict the access to Confidential Information and allow access to Confidential Information only to those of its employees or consultants who have a need to see such part of Confidential Information in order to progress the purposes of this Agreement and who have prior to any such disclosure to them been advised by Receiving Party of the restrictions hereby accepted by this in relation to Confidential Information and shall have ensured that they are bound in writing to observe the same by at least equal obligations of confidentiality.

 

15.6              Receiving Party shall return or, if so directed by Disclosing Party, destroy all Confidential Information and all copies, reproductions, reductions to writing of Confidential Information and any part thereof latest at the termination of this Agreement. Receiving Party shall also destroy any information proprietary to Disclosing Party in pursuance of this Agreement in its possession or under its control.  Notwithstanding the foregoing, each Party may retain a single copy of any Confidential Information solely for compliance purposes under the Agreement.

 

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26

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

15.7              This obligation of non-disclosure does not apply to Confidential Information which:

 

a)                            at the time of first disclosure to one Party (hereinafter “the Receiving Party”) by the other Party (hereinafter “the Disclosing Party”) was already in the Receiving Party’s possession, as shown by written evidence; or

 

b)                            through no fault or action of the Receiving Party is in the public domain at the time of disclosure or thereafter; or

 

c)                             has been received from a Third Party which did not acquire it directly or indirectly from the Disclosing Party; or

 

d)                            has to be disclosed pursuant to a legal or regulatory requirement provided that the Receiving Party shall notify the Disclosing Party of such legal or regulatory requirement in sufficient time to allow the Disclosing Party to take such measures as may be available to preserve the confidentiality of the Confidential Information required to be disclosed and the Receiving Party shall provide to the Disclosing Party all assistance as may be reasonably requested in this respect; or

 

e)                             the Receiving Party can demonstrate by competent proof was independently developed by the Receiving Party or its Associates, employees or consultants, without access to any Confidential Information.

 

15.8              This Section 15 shall remain in force for [...***...] years following the termination or expiration of this Agreement.

 

15.9              The terms of this Agreement are confidential and shall not be disclosed by either Party, except as required by law, with the exception that Omthera may disclose this Agreement and Confidential Information of Licensor to Venture Capitalists and other financial parties, and prospective and actual sub-licensees, suppliers, CROs, acquirers, for evaluating a potential financial or other deal to support further development, registration, promotion, etc. of the Product. Prior to any disclosure Omthera shall advise such Venture Capitalists and other Third Parties of the restrictions hereby accepted in relation to Confidential Information and shall have ensured that they are bound in writing to observe the same by at least equal obligations of confidentiality as contained in this Agreement.  Reference is hereby made to the Reciprocal Confidentiality Agreement between the Parties, dated 18 February 2009 (“CDA”) and the Founder Confidentiality Agreements (as defined in the CDA). This Agreement will supersede all the prior CDAs between Licensor and Omthera as well as the Founder Confidentiality

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

Agreements, with all Confidential Information as defined and disclosed under the CDA and the Founder Confidentiality Agreements treated as Confidential Information under this Agreement.

 

16.                    Press Announcements and Publications

 

16.1              Except as explicitly provided herein, and/or as may be required by applicable laws, rules or regulations, neither Party will originate any publicity, press or news release, or other public announcement, written or oral, whether to the public press or otherwise, relating to this Agreement without the prior written consent of the other Party, such consent not to be unreasonably withheld. In such event the Party wishing to so disclose such information shall provide to the other Party, at least [...***...] days before the intended publication, for its prior consent (such consent not to be unreasonably withheld or delayed) a written copy of such public announcement.  Notwithstanding the foregoing, Omthera will have the right to issue a press release after the Effective Date, and upon achievement of any clinical milestones regarding Product, in each case in a form to be mutually agreed upon.

 

16.2              Neither Party shall publish the results of the work carried out under this Agreement without the prior written consent of the other Party, not to be unreasonably withheld, provided that Omthera will have the right in all events to publish any Clinical Trial results regarding Product carried out pursuant to this Agreement without the need to follow the following procedure, but in each case in a form to be mutually agreed upon. Any proposed publication will be submitted to the other Party a minimum of [...***...] days prior to the intended date of publication. During such [...***...] day (or longer) period, the non-publishing Party will review the proposed publication and indicate whether the material may be published as proposed, may be published after a [...***...] day delay to permit the filing of patent application(s), or may be published after deletion or modification of specified confidential or proprietary information. If no indication is given by the non-publishing Party within [...***...] days from submission of the proposed publication by the publishing Party, then the publishing Party shall have the right to publish such proposed publication.

 

17.                    Effectiveness of License Agreement

 

The Parties agree that the License Agreement will come into effect on the Effective Date.

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

18.       Term and Termination

 

This Agreement shall remain in force until expiration of the royalty obligations by Omthera, unless terminated in accordance with the provisions under Sections 19 to 21 hereof.

 

19.                    Early Termination

 

19.1              This Agreement may be terminated by either Party, without prejudice to any other right or obligation of the Parties, at any time for good cause. A good cause will be a material breach of any terms or conditions of this Agreement committed by the other Party if not remedied within two (2) months after receipt of the written request.

 

19.2              Furthermore, a good cause for either Party will be

 

a)                            the fact that at any time, the other Party files in any court or agency pursuant to any statute or regulation of any state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of that Party or of its assets, or if the other Party shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof, or if the other Party shall propose or be a Party to any dissolution or liquidation, or if the other Party shall make an assignment for the benefit of its creditors;

 

b)                            the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place within ninety (90) days after closing of Financing Round A. In such case, either Party has the right to terminate the Agreement within thirty (30) days after the end of such ninety (90) days period.

 

19.3              Moreover, “Good Cause,” but only for the Licensor, will be deemed to occur if the Licensee is in default with any undisputed (“disputed” means for the purposes of this Agreement that an arbitration procedure was initiated) payment of the Milestone fees or Royalties according to Section 8 and Section 11 of this Agreement for more than ninety (90) days.

 

19.4              In the case of termination of the License Agreement by Licensor pursuant to Section 19.1 after Commercial Sale of a Product, then any such termination by Licensor will be limited to the Product and indication giving rise to the cause for termination in case such material breach can be attributed to a specific Product

 

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29

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

and indication. If such material breach is limited to the United States of America, all rights granted to Omthera under this Agreement in the United States of America will revert to Licensor. In case such material breach is limited to one or more countries outside the United States of America, all rights granted to Omthera under this Agreement in the Territory except for the United States of America will revert to Licensor. The remainder of this Agreement will continue in effect, and further, Omthera or Licensor, as the case may be, may manufacture or have manufactured Product outside of such Party’s applicable territory, but only for sale inside such Party’s applicable territory.

 

19.5              In the case of termination of the License Agreement in total or in part (by territory), Omthera shall terminate all activities in progress regarding Product for the country/countries in question in an orderly manner as soon as reasonably practical. Any liabilities due and owed to Third Parties for non-cancellable activities performed by Licensor up to the time of termination and all expenses in relation to the Product actually incurred at Omthera’s request shall be paid by Omthera upon submission of Licensor invoices and proof of cost.

 

20.                    Force Majeure

 

20.1              A breach of this Agreement by one Party shall not be deemed a good cause according to Section 19 for the termination if caused by strikes, fire, embargoes, any governmental act or regulation, acts of God, war, riot, civil disturbance or other conditions beyond the control of such Party, provided that the Party in default remedies the substantial breach within reasonable time after such cause or causes have ceased to exist.

 

20.2              Notwithstanding the aforementioned, either Party shall be entitled to terminate this Agreement with immediate effect by giving written notice to the other Party if the performance of this Agreement shall be hindered or prevented by such cause or causes for a period exceeding [...***...] months.

 

21.                    Effect of Termination

 

21.1              In the case of termination or partial termination pursuant to Section 19 or 20, the licenses granted in Sections 2.1 and 3.1 shall automatically terminate (in full or in part as provided in those Sections 19 and 20), and Licensee shall and does hereby automatically and without any further consideration assign and shall cause its Affiliates and sub-licensees (subject to Section 2.4) to assign to Licensor without further compensation therefor, all of its and their respective right, title and interest, if any, in and to all Regulatory Approvals, regulatory documentation, IND and clinical data for the Products (for the entire Territory or

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

for part thereof as provided in those Sections 19 and 20), and the license in Section 1.26 shall go into effect as provided in such Section 1.26.

 

All rights and licenses granted under or pursuant to this Agreement by Licensee or Licensor are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code or any foreign counterparts, licenses of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code (or as applicable those foreign counterparts). The Parties agree that the Parties, as licensees of such rights under this Agreement, shall retain and may fully exercise all of their rights and elections under the U.S. Bankruptcy Code and any foreign counterparts thereto. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against either Party under the U.S. Bankruptcy Code or such foreign counterpart, the Party hereto that is not a Party to such proceeding shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, which, if not already in the non-subject Party’s possession, shall be promptly delivered to it (a) upon any such commencement of a bankruptcy proceeding upon the non-subject Party’s written request therefor, unless the Party subject to such proceeding elects to continue to perform all of its obligations under this Agreement or (b) if not delivered under clause (a) above, following the rejection of this Agreement by or on behalf of the Party subject to such proceeding upon written request therefor by the non-subject Party.  To the extent that any foreign counterpart to the U.S. Bankruptcy Code does not grant at least equivalent rights to licensees as such Section 365(n) and elsewhere under the U.S. Bankruptcy Code, then the Parties shall hereby be deemed to have granted at least such equivalents rights to one another (to the extent not prohibited by law).

 

21.2              As provided in Section 21.1, Licensor has the right to access and/or use Omthera’s data related to the Product such as but not limited to clinical data as well as Omthera’s part of Joint IP  [...***...] in case of such termination and insolvency.

 

21.3             Licensor shall have the right to repurchase, or have repurchased by a Third Party of its choice, by informing the Licensee of its intention within  [...***...] months after the termination of this Agreement, any or all of the Product(s) in possession of the Licensee and the Licensee shall be obliged to ship such Product(s) to a destination as may be specified by Licensor. Such repurchase shall be at the cost prices. In addition, Licensor shall reimburse to the Licensee or pay directly the costs of delivering the repurchased Product(s) to the selected

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

destination. However, Licensor retains the right to reject and shall not be obliged to pay for any of the Product(s) Licensor considers not being in a marketable condition or which have less than [...***...] shelf life when returned to Licensor. Otherwise, Omthera and its Affiliates and sub-licensees may sell off all inventory of Product.

 

21.4              Immediately following such repurchase or the last sale of the Product(s) for stock liquidation’s purposes by the Licensee pursuant to this Section, whichever occurs later, the Licensee shall cease to use and make any reference whatsoever to the Trademarks, the Know-how and the Intellectual Property Rights as well as refrain from using Licensor’s Confidential Information.

 

21.5     Upon termination of this Agreement, all technical information including all copies thereof regarding Product in possession of the Licensee and/or the local toll manufacturers shall be returned or destroyed, or in case of electronic data expunged from any computer or electronic storage facility or any other device containing Confidential Information, without delay to Licensor or to a Third Party indicated by Licensor, save that Licensee may retain a single copy of any of the foregoing solely for compliance purposes under the Agreement.

 

22.                    Limitation of Indemnity

 

22.1              No claims for compensation may be lodged purely by reason of termination of this Agreement, unless such claims are based on negligence, willful misconduct or default of the other Party.

 

22.2            In any case, the Licensee shall not be entitled to any compensation for goodwill created for Licensor or for the Product(s) or for increasing Licensor’s business with regard to the Product.

 

22.3            SUBJECT TO SECTION 13.2 OF THIS AGREEMENT, BUT NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT OR OTHERWISE, NEITHER PARTY WILL BE LIABLE TO THE OTHER (OR ANY OTHER PERSON OR ENTITY) WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT FOR ANY INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, EVEN IF SUCH PARTY HAS BEEN INFORMED OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

 

23.       Non-Compete of Both Parties

 

23.1           For the duration of the Agreement, Licensor will not develop any product or indication (over-the-counter or prescription) whatsoever using the Licensed IP. It will also not appoint any other licensees or sub-licenses using the said IP. Licensor directly or through its Affiliates or licensees will not develop any

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

indications (over-the-counter or prescription) using Epanova® or other Licensor’s Trademarks or any other Product.

 

23.2            For the duration of the Agreement, Omthera and its sub-licensees as well as Licensor and its licensees will not develop and/or commercialize any Competing Product(s) (except for Product by Omthera and its sub-licensees), unless agreed by both Parties in writing.

 

23.3            Licensor (i) represents and warrants to Omthera that (A) it has not granted, and covenants that it will not grant, any right, license or interest in or to, or an option to acquire any of the foregoing with respect to, the Licensed IP that is in conflict with the licenses and other rights granted to Licensee under this Agreement, and that all Licensed IP has been assigned and transferred from Tillotts to Licensor prior to the signature of this Agreement, (B) the Licensor is not aware of any claim or challenge, or threat of any claim or challenge, which may invalidate or render unenforceable, either wholly or partially, any Licensor’s Patents or Trademarks, nor is it aware of anything which may give rise to any such claim or challenge, and (C) the Licensor is not aware of any claim or allegation that the Licensed IP infringes the rights of any other nor of any infringement or threat of infringement of any Licensed IP by any other; and (ii) covenants that any assignment or other transfer of any Licensed IP will not derogate from the licenses and other rights granted to Licensee under this Agreement, and further that all Licensed IP shall remain solely and exclusively owned by the entity party to this Agreement as “Licensor” and that any assignment, merger, consolidation, or sale of assets by Licensor shall not impair any of Omthera’s licenses or rights hereunder.

 

23.4            Each Party represents and warrants to the other as of the Effective Date that it has the legal right and power to enter into this Agreement, to extend the rights and licenses granted or to be granted to the other in this Agreement, and to fully perform its obligations hereunder.

 

24.                    Rights and Obligations of the Parties

 

24.1            Omthera and its sub-licensees shall maintain full, true and accurate books of account and other records containing all particulars which may be required to ascertain and verify the amounts payable by Omthera under this Agreement. Said books, records and all supporting data shall be available at all reasonable times and for a period of [...***...] years following the period of reporting or for a period consistent with generally acceptable accounting procedures, whichever is longer. Licensor has the right to have such books, records and all supporting

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

data of Omthera and its sub-licensee(s) audited [...***...] by an independent, internationally reputed accounting firm, such accounting firm being obliged to simply confirm the correct calculation of the Royalty Rates and Other Payments (see Sections 8,  9 and 11). The cost of the accounting firm shall be paid by Licensor unless the accounting firm confirms a deviation by more than [...***...] of the amount due.

 

24.2            Any payments by Omthera that are not paid, on or before the date such payments are due under this Agreement shall bear interest, to the extent permitted by applicable law, at the [...***...], calculated on the number of days payment is delinquent. [...***...].

 

24.3             In the case of doubt, all performance payments listed under Sections 8 to 11 are due Licensor by Omthera independent of whether Omthera and/or its sub-licensees affect the sale. Net Sales made by sub-licensees fall under Omthera’s commitments to Licensor.

 

25.       Headings and Annexes

 

25.1              The headings of the Sections are included solely for convenience and shall not be deemed part of this Agreement and shall not be used for the interpretation thereof.

 

25.2              All Annexes hereto form integral parts of this Agreement.

 

26.                    Notices

 

26.1              All notices, orders or other communication under this Agreement shall be in writing and shall be effective when received by the addressee at the address herein before specified or such other address as the addressee may have previously specified in writing as its address for service. If sent by airmail or courier a notice shall be deemed to have been received within seven (7) days of dispatch. If sent by facsimile a notice shall be deemed to have been received within twelve (12) hours of transmission as evidenced by the message confirmation generated by the facsimile machine.

 

26.2             Reference in this Agreement to “writing” or cognate expressions includes a reference to facsimile transmission or comparable means of communication provided in each case that proof of signature and receipt can be presented.

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

27.                    Non-Assignability and Change of Control

 

27.1              Subject to Section 27.2 hereafter, neither this Agreement as a whole nor any rights hereunder may be assigned by the Licensee to any Third Party or associate of the Licensee without prior written consent of Licensor, provided that, subject to Section 9.5, Licensee may assign this Agreement in full to an Affiliate or to its successor in connection with the merger, consolidation, or sale of all or substantially all of its assets or that portion of its business pertaining to the subject matter of this Agreement.

 

27.2            It is understood and agreed between the Parties that Licensor may assign this Agreement to Newco as a whole with liberating effect to Polyver without consent of Licensee provided that (i) Newco solely and exclusively owns all Licensed IP and (ii) Newco is assigned by Polyver all assets that were assigned by Tillotts to Polyver related to Product.

 

27.3            The rights and obligations stated in the Agreement shall be binding upon the successors, acquirers and permitted assignees of Omthera as well as Licensor.

 

28.                    Amendments

 

No variation or amendment of this Agreement shall bind either Party unless made in writing in the English language and agreed to in writing by duly authorized officers of the Parties.

 

29.                    Severability

 

If any provision of this Agreement shall, for any reason whatsoever, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement. As a substitute, the Parties shall agree upon a valid, legal and enforceable provision as close as possible to the invalid, illegal or unenforceable provision.

 

Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement.  Accordingly, the rule of construction that any ambiguity in this Agreement will be construed against the drafting Party will not apply.

 

30.                    No waiver

 

No waiver of any claim, provision or condition of this Agreement whether by conduct or otherwise in one or more instances shall be deemed to be or construed as a permanent or continuing waiver of any such claim, provision or condition, or of any other claim, provision or condition of this Agreement.

 

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Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

31.                    Governing Law

 

This Agreement shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles. The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

Nothing in this Agreement is intended or will be deemed to constitute a partnership, agency, employer-employee or joint venture relationship between the Parties.

 

32.                    Disputes and Arbitration

 

32.1              Any disputes arising out of this Agreement shall be amicably settled within [...***...] days between two responsible executives of each Party.

 

32.2              In case a settlement should not be reached, then such dispute shall be presented to the Chief Executive Officers of both Parties, or to senior persons designated by the Chief Executive Officers, for amicable settlement.

 

32.3              Should a settlement still not be reached within [...***...] days then such dispute shall be referred to arbitration in London, England in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce.

 

32.4            The arbitration shall be held in the English language, and the official and only language of this Agreement is English.

 

* * *

 

***Confidential Treatment Requested

 

36

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

IN WITNESS WHEREOF, the Parties hereto caused this Agreement to be executed in two original copies by their authorized officers who have prepared all pages of this Agreement and its Annexes and then signed this page:

 

 

	
Basel, 13 November 2009
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
For and on behalf of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PVT POLYVER TRUST   AG
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Martin Wepfer
    	
 
    	
Date:
    	
13 November 2009
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Martin Wepfer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Attorney-in-Fact for Chairman   Dr. Peter Mathys
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
                   ,                       
    	
 
    	
                     ,                   
    
	
 
    	
 
    	
 
    
	
For and on behalf of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
OMTHERA   PHARMACEUTICALS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Michael Davidson
    	
 
    	
Date: 
    	
Nov. 13, 2009
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Michael Davidson
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
CMO
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Gerald Wisler
    	
 
    	
Date: 
    	
Nov. 13, 2009
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Gerald Wisler
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
President & CEO
    	
 
    	
 
    

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

List of Annexes

 

Annex A

 

Role of the Joint Steering Committee(s)

 

Annex B

 

Royalty Rates

 

Annex C

 

Tillotts Pharma AG and Ocean Nutrition Canada Limited Supply Agreement Related to Supply of a OMEGA-3 Free Fatty Acid Concentrate (Omefas®)

 

Annex D

 

Signed Venture Capital Contract(s), to be provided upon execution

 

Signed Venture Capital Term-Sheet(s) to be provided prior to signature of this Agreement by either Party

 

Annex E

 

Licensor’s Know-how

 

·                  Know-how included and not included in Patents

 

·                  Licensor’s Data

 

·                  Manufacturing Know-how

 

·                  Clinical Know-how

 

·                  Regulatory Know-how

 

Annex F

 

Omthera’s Liability Insurance Policy, to be delivered pursuant to Section 13.1

 

Annex G

 

·                  Licensor’s Assets

 

·                  Patents (List)

 

·                  Trademark (List by country)

 

Annex H

 

Escrow Agreement, to be prepared by the Parties as necessary

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

Annex I

 

Amounts to be reimbursed by Omthera that were accrued before the signature of this Agreement.

 

Annex J

 

Letter of Approval of Assignment of ONC’s Supply Agreement from Licensor to Omthera by ONC ( to be supplied by Licensor within ninety (90) days after closing of Financing Round A

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

A

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

Annex A

 

Role of the Joint Steering Committee(s)

 

Composition: The Joint Steering Committee(s) (JSC) will be comprised of an equal number of members (to be decided) appointed by Licensor and by Omthera. Each Party will notify the other Party of its initial JSC members within ninety (90) days of the Effective Date. The Parties, through the JSC, may establish and later change the number of JSC as long as an equal number of members from Licensor and Omthera is maintained. Each Party may change its JSC members at any time by written notice to the other, however whenever possible at least 10 days prior to a scheduled JSC meeting and with notice to the other JSC Members.

 

The Chairperson shall be a member of the JSC, and the role of the Chairperson shall be to convene and preside at meetings of the JSC. Each Party will designate a senior member of management who will be the primary contact for that Party. Not later than thirty (30) days after the JSC is named, the Parties shall hold an organizational meeting. The primary contacts of the Parties shall be responsible for scheduling the meeting of the JSC for that purpose.

 

Responsibilities: The JSC(s) shall be responsible for the following:

 

(i)                                     the technical support for clinical and commercial supply,

 

(ii)                                  the regulatory support,

 

(iii)                               the supervision of IP and Trademarks related issues,

 

(iv)                              the clinical development and

 

(v)                                 commercial issues (i.e. commercialization of Product, out- or sublicensing of Product) in order to secure an efficient development and successful commercialization of the Product for the Primary Indication and Fields.

 

Omthera will chair all but one JSC and thus through the Chairperson have one additional voting power in case of a tie vote, as described below. The JSC related to IP & Trademarks will be chaired by Licensor or its nominee.

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

Meetings. The JSC will hold an in-person organizational meeting at Licensor’ office to establish the JSC’s operating procedures. After such initial meeting, the JSC will meet at such other times and places as are agreeable to a majority of the JSC members, but no less than once each calendar quarter before Commercial Launch and after Launch at least twice per calendar year. Meetings may be face-to-face (at least once per calendar year), via videoconference, or via teleconference. Omthera will bear the expense of all respective JSC members’ participation in JSC meetings except the IP JSC which will be at Licensor’s own expense for Licensor’s members. Omthera will pay Out-of-Pocket Expenses and FrE expenses for all others (which shall not exceed in total [...***...], provided that if Licensor expects that the expenses for its JSC members will exceed such amounts, then the Parties shall communicate to discuss and Licensee agrees to modify the duration or content of or attendance at such JSC meeting to reduce expenses). Each Party shall provide written notice to the other Party at least fourteen (14) days prior to each JSC meeting of agenda items proposed by such Party for discussion or decision-making at such meeting, together with appropriate information related thereto. The JSC Chairperson shall be responsible for sending the invitations and agenda for the meetings at least seven (7) days before the meeting. Material decisions reached at a meeting will be documented and signed by both Parties before the meeting ends. Reasonably detailed written minutes will be kept of all JSC meetings and will reflect, without limitation, material decisions made at such meetings. The JSC Chairperson shall be responsible for drafting and distributing minutes of the meetings within ten (10) days after the meeting for review and approval. Minutes will be deemed approved unless a member of the JSC objects to the accuracy of such minutes within ten (10) days of receipt.

 

Decisions. All JSC decisions shall be made by majority vote of the JSC, and each Party will have one vote on each JSC, and member for each Party will be designated to cast such Party’s one vote. The Chairperson of the applicable JSC is only allowed to vote in the case of a tie vote, as provided below.

 

Dispute Resolution and Deadlocks of the Joint Steering Committees: Should the JSC be unable to decide or resolve by majority vote, any matter properly presented to it for action, at the written request of either Party, the issue shall be referred to both Parties’ Chief Executive Officers, or to senior persons designated by the Chief Executive Officers, who shall promptly meet and attempt in good faith to resolve such issue within thirty (30) days. If unable to resolve such issue within such

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

thirty (30) day period, the Chairperson of the applicable JSC shall have the tie-breaking vote.

 

Other Committees: The JSC may create such other committees or subcommittees as it may deem desirable. All such committees shall have equal representation from each of the Parties and the voting rights and process described above unless the JSC expressly directs otherwise.

 

Omthera shall keep Licensor informed on an ongoing basis of following items in writing: (time frequency of below reports may be changed by mutual agreement)

 

·                  Quarterly update reports on clinical development and clinical results

 

·                  Quarterly, or if necessary more often, update on regulatory matters

 

·                  Quarterly update on sales on a country-by-country basis

 

·                  Quarterly update reports on financing and sub-licensing activities.

 

·                  Quarterly, or if necessary more often update, on pricing/reimbursement matters as well as the finally obtained pricing/reimbursement for the Product in each Core Country. Such activities include also the pricing strategy or results of competitors or new pricing/reimbursement regulations in each Core Country.

 

·                  Yearly, or if necessary more often, update on major competitors (including but not limited to sales volumes, strategies, prices in most important markets, counter-measurements)

 

·                  Yearly, or if necessary more often, updates on products in development with Omefas®

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

B

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

Annex B

 

Royalty Rates

 

Patent Royalty: The Patent Royalty to be paid to Licensor by Omthera is to be calculated as a percentage of Net Sales generated by the sale of Product at the royalty rates shown in the table below for as long as there is “patent protection” (as per Section 8) on the Product or for  fifteen (15) years from the date of the Commercial Launch, whichever is longer (according to Sections 1.40 and 8 of the License Agreement).

 

Trademark and Know-How Royalty: After the end of the Patent Royalty period, the rates of the Trademark and Know-How Royalty due to Licensor will be reduced by  [...***...]  for an additional [...***...] years compared to the initial Patent Royalty, as shown in the table below (according to Sections 1.53 and 8 of the License Agreement).

 

Calculation of Patent Royalty and Trademark and Know-How Royalty: The royalties shall be calculated on a country-by-country basis for the whole Territory cumulatively. In case of a sub-licensee, the royalties due to Licensor apply to the sub- licensee’s Net Sales of the Product.

 

Section 1:

 

Table 1: Royalty Rates scheme

 

	
Total Annual Product Net Sales
    	
 
    	
Patent Royalty
    	
 
    	
Trademark and
   Know-How Royalty
    
	
[...***...]
    	
 
    	
[...***...]
    	
 
    	
[...***...]
    
	
[...***...]
    	
 
    	
[...***...]
    	
 
    	
[...***...]
    
	
[...***...]
    	
 
    	
[...***...]
    	
 
    	
[...***...]
    
	
[...***...]
    	
 
    	
[...***...]
    	
 
    	
[...***...]
    

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

Example 1) for the royalty calculation:

 

[...***...]

 

Section II

 

[...***...]: In the event of sub-licensing by Omthera that one- half of the realizable royalty share received by Omthera from an independent third party is less than Licensors’ entitlement to royalties, Licensor will reduce its royalty entitlement with respect to such sub-license as follows: the Parties agree to split the royalty [...***...]. Licensor will be guaranteed a minimum of [...***...] of the Royalty Rates listed in Table 1 (“the [...***...] Licensor Royalty Floor”).

 

In addition, Licensor will receive higher Additional Payments as illustrated below with respect to such sub-license. This scheme will then shift to the following for such sub-license:

 

·        [...***...] of Other Payments paid to Omthera based on [...***...];

 

·        [...***...] of Other Payments paid to Omthera based on [...***...]; or

 

·        [...***...] of Other Payments paid to Omthera based on [...***...].

 

Example 2) for the royalty calculation in the case that the maximum realizable royalty share received by Omthera is less than Licensors’ royalties:

 

If the Total Annual Product Net Sales generated by the Product in a certain calendar year during the period of Patent Royalty are [...***...] and the royalty received by Omthera from its sublicensees is [...***...], the applicable Patent Royalty rate for Licensor for that calendar year will be [...***...] for [...***...],[...***...] or [...***...] for the next [...***...], and [...***...]

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

[...***...] or [...***...] for the last [...***...]. After the end of the period of Patent Royalty, the Trademark and Know -How Royalty rate for the following [...***...]  years will be calculated as described above for each year, and this Section II or [...***...] share will be applied if applicable based on the royalties paid by the sublicense and the amounts of annual sales.

 

Example 3) for the royalty calculation In the case that the maximum realizable royalty share received by Omthera is less than Licensors’ royalties and the [...***...] applies:

 

In the case the royalty received by Omthera from its sublicensees is [...***...] without the [...***...], Licensor would receive only [...***...] for Patent Royalties. Taking however into account the [...***...], the royalties are calculated as follows: If the Total Annual Product Net Sales generated by the Product in a certain calendar year during the period of Patent Royalty are [...***...] the applicable Patent Royalty rate for Licensor will be [...***...] for [...***...] and [...***...] for the next [...***...] and [...***...] for the last [...***...]. After the end of the period of Patent Royalty, the Trademark and Know-How Royalty rate for the following [...***...] will be calculated as described above for each year, and this Section II [...***...]  and [...***...] will be applied if applicable based on the royalties paid by the sublicense and the amounts of annual sales.

 

For clarity, none of the foregoing examples take in to account Sections 8.4 and 8.5 of the License Agreement, which will be applied in all cases.

 

Sales by Sub-licensees: It is understood and agreed by the Parties that any Royalties on Product sales arising from sales activities by one or several sub-licensees shall be due to Licensor by Omthera.

 

For clarity, this Annex B and the License Agreement, including Sections 1.40 and 1.53, shall be read together, and any inconsistency between this Annex Band the License Agreement shall be governed by the License Agreement.

 

***Confidential Treatment Requested

 

 

AMENDMENT NO. 1 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 1 TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of January 13, 2010, by and between PVT Polver Trust AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland (“Licensor”), and Omthera Pharmaceuticals Inc., a company duly established under the laws of Delaware with registered offices at 1209 Orange Street, Wilmington, New Castle, Delaware 19801, USA (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties wish to amend the Original Agreement as set forth below in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee.

 

C.            Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.             Section 12.1.  The third sentence in Section 12.1 is hereby amended as follows:

 

“In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place within one hundred eighty (180) days after closing of Financing Round A, both Parties shall have the right to early terminate the Agreement (see Section 19.2b) within thirty (30) days after the end of such one hundred eighty (180) days period.”

 

2.             Section 19.2(b).  Section 19.2(b) is hereby amended as follows:

 

“the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place within one hundred eighty (180) days after closing of Financing Round A.  In such case, either Party has the right to terminate the Agreement within thirty (30) days after the end of such one hundred eighty (180) days period.”

 

3.             No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

 

4.             Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

5.             Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
PVT POLYVER   TRUST AG
    	
 
    	
OMTHERA PHARMACEUTICALS INC.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Dr. Peter Mathys
    	
 
    	
By:
    	
/s/ Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Dr. Peter Mathys
    	
 
    	
Name:
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Chairman
    	
 
    	
Title:
    	
President & CEO
    

 

2

 

AMENDMENT NO. 2 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 2 TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of May 28, 2010, by and between PVT Polyver Trust AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland (“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 1209 Orange Street, Wilmington, New Castle, Delaware 19801, USA (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13, 2010, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”).

 

C.            The Parties wish to enter into this Amendment to further extend the period of time for the assignment of the Supply Agreement.

 

D.            Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.             Section 12.1.  The third sentence in Section 12.1 is hereby amended as follows:

 

“In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to July 15, 2010 (the “Assignment Deadline”), both Parties shall have the right to early terminate the Agreement (see Section 19.2b) within thirty (30) days after the Assignment Deadline.”

 

2.             Section 19.2(b).  Section 19.2(b) is hereby amended as follows:

 

“the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to the Assignment Deadline.  In such case, either Party has the right to terminate the Agreement within thirty (30) days after the Assignment Deadline.”

 

3.             No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

 

4.             Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

5.             Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
PVT POLYVER   TRUST AG
    	
 
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/Peter Mathys
    	
 
    	
By:
    	
/s/Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Peter Mathys
    	
 
    	
Name:
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Chairman of the Board
    	
 
    	
Title:
    	
CEO
    

 

2

 

AMENDMENT NO. 3 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 3 TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of June 30, 2010, by and between Chrysalis Pharma AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland (“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 90 Washington Valley Road, Bedminster, NJ 07921 (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13, 2010, and that certain Amendment No. 2 to License Agreement, dated as of May 28, 2010, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”).

 

C.            The Parties wish to enter into this Amendment to further extend the period of time for the assignment of the Supply Agreement.

 

D.            Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.             Section 12.1.  The third sentence in Section 12.1 is hereby amended as follows:

 

“In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to September 30, 2010 (the “Assignment Deadline”), both Parties shall have the right to early terminate the Agreement (see Section 19.2b) within thirty (30) days after the Assignment Deadline.”

 

2.             Section 19.2(b).  Section 19.2(b) is hereby amended as follows:

 

“the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to the Assignment Deadline.  In such case, either Party has the right to terminate the Agreement within thirty (30) days after the Assignment Deadline.”

 

 

3.             No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

4.             Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

5.             Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
CHRYSALIS PHARMA AG
    	
 
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ R Bufton
    	
 
    	
By: 
    	
/s/ Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
R Bufton
    	
 
    	
Name: 
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Chairman
    	
 
    	
Title: 
    	
CEO
    

 

2

 

AMENDMENT NO. 4 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 4 TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of September 15, 2010, by and between Chrysalis Pharma AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland, as successor to PVT Polyver Trust AG (“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 90 Washington Valley Road, Bedminster, NJ 07921 (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13, 2010, that certain Amendment No. 2 to License Agreement, dated as of May 28, 2010, and that certain Amendment No. 3 to License Agreement, dated as of June 30, 2010, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”).

 

C.            The Parties wish to enter into this Amendment to further extend the period of time for the assignment of the Supply Agreement.

 

D.            Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.             Section 12.1.  The third sentence in Section 12.1 is hereby amended as follows:

 

“In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to November 1, 2010 (the “Assignment Deadline”), both Parties shall have the right to early terminate the Agreement (see Section 19.2b) within thirty (30) days after the Assignment Deadline.”

 

2.             Section 19.2(b).  Section 19.2(b) is hereby amended as follows:

 

“the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to the Assignment Deadline.  In such case, either Party has the right to terminate the Agreement within thirty (30) days after the Assignment Deadline.”

 

 

3.             No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

4.             Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

5.             Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
CHRYSALIS   PHARMA AG
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/R. Bufton
    	
 
    	
By:
    	
/s/Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
R. Bufton
    	
 
    	
Name:
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Chairman
    	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/Johannes Spleiss
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Johannes Spleiss
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Member of the Board
    	
 
    	
 
    	
 
    

 

2

 

AMENDMENT NO. 5 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 5 TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of October 24, 2010, by and between Chrysalis Pharma AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland, as successor to PVT Polyver Trust AG (“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 90 Washington Valley Road, Bedminster, NJ 07921 (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13, 2010, that certain Amendment No. 2 to License Agreement, dated as of May 28, 2010, that certain Amendment No. 3 to License Agreement, dated as of June 30, 2010, and that certain Amendment No. 4 to License Agreement, dated as of September 15, 2010, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”).

 

C.            The Parties wish to enter into this Amendment to  further extend the period of time for the assignment of the Supply Agreement.

 

D.            Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.                                      Section 12.1.  The third sentence in Section 12.1 is hereby amended as follows:

 

“In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to January 1, 2011 (the “Assignment Deadline”), both Parties shall have the right to early terminate the Agreement (see Section 19.2b) within thirty (30) days after the Assignment Deadline.”

 

2.                                      Section 19.2(b).  Section 19.2(b) is hereby amended as follows:

 

“the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to the Assignment Deadline.  In such case, either Party has the right to terminate the Agreement within thirty (30) days after the Assignment Deadline.”

 

 

3.             No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

4.             Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

5.             Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
CHRYSALIS   PHARMA AG
    	
 
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ R. Bufton
    	
 
    	
By:
    	
/s/ Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
R. Bufton
    	
 
    	
Name:
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Chairman
    	
 
    	
Title:
    	
CEO
    

 

2

 

AMENDMENT NO. 6 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 6 TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of December 7th, 2010, by and between Chrysalis Pharma AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland, as successor to PVT Polyver Trust AG (“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 90 Washington Valley Road, Bedminster, NJ 07921 (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13, 2010, that certain Amendment No. 2 to License Agreement, dated as of May 28, 2010, that certain Amendment No. 3 to License Agreement, dated as of June 30, 2010, that certain Amendment No. 4 to License Agreement, dated as of September 15, 2010, and that certain Amendment No. 5 to License Agreement, dated as of October 24, 2010, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”).

 

C.            The Parties wish to enter into this Amendment to further extend the period of time for the assignment of the Supply Agreement.

 

D.            Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.             Section 12.1.  The third sentence in Section 12.1 is hereby amended as follows:

 

“In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to March 1, 2011 (the “Assignment Deadline”), both Parties shall have the right to early terminate the Agreement (see Section 19.2b) within thirty (30) days after the Assignment Deadline.”

 

2.             Section 19.2(b).  Section 19.2(b) is hereby amended as follows:

 

“the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on

 

 

or prior to the Assignment Deadline.  In such case, either Party has the right to terminate the Agreement within thirty (30) days after the Assignment Deadline.”

 

3.             No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

4.             Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

5.             Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
CHRYSALIS   PHARMA AG
    	
 
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ R. Bufton
    	
 
    	
By:
    	
/s/ Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
R. Bufton
    	
 
    	
Name:
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Chairman
    	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ P. Mathys
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
P. Mathys
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    	
 
    	
 
    

 

2

 

AMENDMENT NO. 7 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 7 TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of February 4, 2011, by and between Chrysalis Pharma AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland, as successor to PVT Polyver Trust AG (“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 90 Washington Valley Road, Bedminster, NJ 07921 (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.                                    Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.                                    The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13, 2010, that certain Amendment No. 2 to License Agreement, dated as of May 28, 2010, that certain Amendment No. 3 to License Agreement, dated as of June 30, 2010, that certain Amendment No. 4 to License Agreement, dated as of September 15, 2010, that certain Amendment No. 5 to License Agreement, dated as of October 24, 2010, and that certain Amendment No. 6 to License Agreement, dated as of December 7, 2010, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”).

 

C.                                    The Parties wish to enter into this Amendment to further extend the period of time for the assignment of the Supply Agreement.

 

D.                                    Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.                                      Section 12.1.  The third sentence in Section 12.1 is hereby amended as follows:

 

“In case such take over of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on or prior to July 1, 2011 (the “Assignment Deadline”), both Parties shall have the right to early terminate the Agreement (see Section 19.2b) within thirty (30) days after the Assignment Deadline.”

 

2.                                      Section 19.2(b).  Section 19.2(b) is hereby amended as follows:

 

“the fact that the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C will not take place on

 

 

or prior to the Assignment Deadline.  In such case, either Party has the right to terminate the Agreement within thirty (30) days after the Assignment Deadline.”

 

3.                                      No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

4.                                      Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

5.                                      Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
CHRYSALIS   PHARMA AG
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
By: 
    	
/s/ R. Bufton
    	
 
    	
By: 
    	
/s/ Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
R. Bufton
    	
 
    	
Name: 
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Chairman
    	
 
    	
Title: 
    	
CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ J. Spleiss
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name: 
    	
J. Spleiss
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title: 
    	
Director
    	
 
    	
 
    

 

2

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

AMENDMENT NO. 8 TO LICENSE AGREEMENT

 

This AMENDMENT NO. 8 TO LICENSE AGREEMENT (this “Amendment”) is made and entered into as of February    , 2011, by and between Chrysalis Pharma AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH, Chilchgasse 8, 6072 Sachsein Switzerland, as successor to PVT Polyver Trust AG (“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 90 Washington Valley Road, Bedminster, NJ 07921 (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (as amended by Amendment Nos. 1 through 7 set forth below, the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13, 2010, that certain Amendment No. 2 to License Agreement, dated as of May 28, 2010, that certain Amendment No. 3 to License Agreement, dated as of June 30, 2010, that certain Amendment No. 4 to License Agreement, dated as of September 15, 2010, that certain Amendment No. 5 to License Agreement, dated as of October 24, 2010, that certain Amendment No. 6 to License Agreement, dated as of December 7, 2010 and that certain Amendment No. 7 to License Agreement, dated as of February 4, 2011, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”).

 

C.            The Parties wish to enter into this Amendment to provide for certain modifications to the terms of the Original Agreement, and to confirm certain matters relating to the Original Agreement.

 

D.            Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions outlined herein, Licensor and Licensee hereby agree as follows:

 

1.             Amendment to Section 23.2.  Section 23.2 of the Original Agreement is hereby amended and restated in its entirety to read as follows:

 

“23.2  For the duration of this Agreement, Omthera and its sub-licensees, as well as Licensor and its licensees, will not develop and/or commercialize any Competing Product(s) (except for Product by Omthera and its sub-licensees), unless agreed by both Parties in writing, provided that this Section 23.2 shall not apply [...***...]

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

[...***...]  (a “Transaction”) with respect to [...***...]  (and for clarity, Section 9.4 will continue to apply).”

 

2.             Amendment to Section 9.4.  Section 9.4 of the Original Agreement is hereby amended and restated to add the phrase “and beyond” after the phrase “(Phase II or III”.

 

3.             Deletion of Section 9.5.  Section 9.5 of the Original Agreement is hereby deleted in its entirety and shall be of no further force or effect.

 

4.             Amendment to Section 12.1.  Section 12.1 of the Original Agreement is hereby amended and restated in its entirety to read as follows:

 

“Omthera shall indemnify Licensor against all claims by, and all losses, damages, liability or expenses of Licensor to, ONC, including reasonable attorneys’ fees and court costs, arising from acts or omissions by or on behalf of Omthera and/or its sub-licensees under the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C, except for acts or omissions by Licensor (other than those taken by Licensor at the express written request of Omthera).  Such indemnification shall be subject to the following conditions:(i) Licensor shall notify Omthera promptly of any such claims and liabilities, (ii) Omthera shall be solely responsible for the defense, settlement and discharge of any such claims, and (iii) Licensor shall furnish Omthera with all assistance reasonably requested by Omthera in connection with the defense, settlement and discharge of any such claims and liabilities.  For clarity, the parties understand and agree that the indemnification provided for in this paragraph shall apply whether or not the Supply Agreement has been assigned by Licensor to Omthera.

 

The amounts payable to ONC under Section 4.4 of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C shall continue to be the responsibility of Licensor, and Licensor shall pay same when due under such agreement.”

 

5.             Amendments to Article 19.

 

(a)           Section 19.1.  Section 19.1 of the Original Agreement is hereby amended and restated in its entirety to read as follows:

 

“19.1  This Agreement may be terminated by either Party, without prejudice to any other right or obligation of the Parties, at any time for Good Cause (as hereinafter defined in Sections 19.1 through 19.3 only).  “Good Cause” will be deemed to occur upon a material breach of any term or condition of this Agreement committed by the other Party if not remedied within [...***...] months after receipt of written notice of such breach.”

 

***Confidential Treatment Requested

 

2

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

(b)           Section 19.2.  Section 19.2 of the Original Agreement is hereby amended and restated in its entirety to read as follows:

 

“19.2  Furthermore, “Good Cause” for either Party will be deemed to occur if at any time, the other Party files in any court or agency pursuant to any statute or regulation of any state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of that Party or of its assets, or if the other Party shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof, or if the other Party shall propose to be a party to any dissolution or liquidation, or if the other Party shall make an assignment for the benefit of its creditors.”

 

For the avoidance of doubt, Section 19.2(b) of the Original Agreement is hereby deleted in its entirety and shall be of no further force or effect.

 

(c)           Section 19.3.  Section 19.3 of the Original Agreement is hereby amended and restated in its entirety to read as follows:

 

“19.3  Moreover, “Good Cause,” but only for the Licensor, will be deemed to occur if the Licensee is in default with any undisputed (“disputed” means for the purposes of this Agreement that an arbitration procedure was initiated) payment of the Milestone fees or Royalties according to Section 8 and Section 11 of this Agreement for more than [...***...] days.”

 

6.             Confirmation Regarding Original Agreement.  Each Party hereby confirms to the other that to its knowledge, neither Party is in breach of any of the terms and provisions of the Original Agreement.

 

7.             No Other Changes.  Except as specifically amended hereby, the Original Agreement shall remain in full force and effect and in accordance with its terms.

 

8.             Governing Law.  This Amendment shall exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

9.             Counterparts.  This Amendment may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

[remainder of this page intentionally left blank]

 

***Confidential Treatment Requested

 

3

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Amendment as of the date first set forth above.

 

	
CHRYSALIS PHARMA AG
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
By:
    	
/s/Roland Bufton
    	
 
    	
By:
    	
/s/ Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Roland Bufton
    	
 
    	
Name: 
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Chariman
    	
 
    	
Title: 
    	
CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Johannes Spleiss
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Johannes Spleiss
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Director
    	
 
    	
 
    

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

SIDE LETTER TO AMENDMENT NO. 8 TO LICENSE AGREEMENT

 

This SIDE LETTER TO AMENDMENT NO. 8 TO LICENSE AGREEMENT (this “Amendment”) is made and entered into as of February 28, 2011, by and between Chrysalis Pharma AG, a corporation duly established under the laws of Switzerland with registered offices at c/o Buetler Legal GmbH. Chilchgasse 8, 6072 Sachsein Switzerland, as successor to PVT Polyver Trust AG (‘“Licensor”), and Omthera Pharmaceuticals, Inc., a company duly established under the laws of Delaware with registered offices at 90 Washington Valley Road, Bedminster, NJ 07921 (“Licensee”).  Licensor and Licensee are also referred to individually as “Party” and collectively as “Parties.”

 

A.            Licensor and Licensee are parties to that certain License Agreement, dated as of November 13, 2009 (as amended by Amendment Nos. 1 through 8 set forth below, the “Original Agreement”), pursuant to which, among other things, Licensor granted an exclusive license to Licensee to develop and commercialize the Product for the Primary Indication in the Field worldwide.

 

B.            The Parties entered into that certain Amendment No. 1 to License Agreement, dated as of January 13. 2010, that certain Amendment No. 2 to License Agreement, dated as of May 28, 2010, that certain Amendment No. 3 to License Agreement, dated as of June 30, 2010, that certain Amendment No. 4 to License Agreement, dated as of September 15, 2010, that certain Amendment No. 5 to License Agreement, dated as of October 24, 2010, that certain Amendment No. 6 to License Agreement, dated as of December 7, 2010 and that certain Amendment No. 7 to License Agreement, dated as of February 4, 2011, in order to extend the period of time for the assignment of the Supply Agreement Relating To Supply Of A OMEGA-3 Fatty Acid Concentrate (Omefas®) in Annex C from Licensor to Licensee (the “Supply Agreement”) and into that certain Amendment No. 8 to License Agreement, dated as of February 28, 2011, in order to amend Sections 23.2, 9.4, 12.1 and Article 19 of the License Agreement.

 

C.            The Parties agree to negotiate in good faith further modifications to the terms of the Original Agreement and to sign an Amendment No. 9 to License Agreement if ever possible on or before March, 4, 2011, but in any case on or before March 31, 2011.  In particular, the Parties will seek modifications to Sections 1.22 and 9.4 and an introduction of a new Section 8.9 of the License Agreement with a content mutually acceptable for both Parties and to the greatest extent possible corresponding to Chrysalis’ proposals hereinafter:

 

1.             Proposal by Chrysalis:  Amendment to Section 1.22. Section 1.22 of the Original Agreement would be amended and restated in its entirety as follows:

 

““Generic Encroachment” shall mean any Competing Product(s) as in Section 1.10 and any product(s) that is off patent and/or has no patent protection that is sold as a prescription product which is launched taking [...***...]  market share over a [...***...]-month period by reference to the pre-generic launch

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

market share in the Primary Indication and Field as well as Additional Indications in a country after the launch of the Product, as measured by IMS Health or equivalent data bases in any of the Field and Primary Indication and in any Additional Indications and is sold at a substantially lower price [...***...]  than Product.  Only thereafter, will the Competing Product become a Generic Encroachment and not before.  For the following and all subsequent [...***...]-month period, Generic Encroachment will be defined the same. [...***...];”

 

2.             Proposal by Chrysalis:  Amendment to Article 8. Introduction of a new Section 8.9 into the Original Agreement. The new Section 8.9 would read as follows:

 

“Royalties under this Agreement are net, i.e. exclusive of applicable VAT, if any.  Any VAT to be paid on royalties is the responsibility of Omthera.  Royalty payments will be due on the last working day of the third month after the closing date of Omthera’s respective fiscal year.”

 

3.             Proposal by Chrysalis:  Amendment to Section 9.4. Section 9.4 of the Original Agreement would be amended and restated by replacement of the full text in the parenthesis following the wording ‘‘...or/and developing...” by the following text:  “(Phase II and beyond through to launch)”.

 

4.             No Other Changes.  Except as specifically amended by Amendment No. 9 to the License Agreement, the Original Agreement will remain in full force and effect and in accordance with its terms.

 

5.             Governing Law.  Amendment No. 9 will exclusively be governed by and interpreted according to the material laws of Switzerland without regard to its conflict of laws principles.  The application of the UN-Convention on Contracts for the International Sale of Goods is expressly excluded.

 

6.             Counterparts.  This Side Letter as well as Amendment No. 9 may be executed in counterparts, by confirmed facsimile, or both, each of which will be considered an original, but all of which together will constitute the same instrument.

 

[remainder of this page intentionally left blank]

 

***Confidential Treatment Requested

 

2

 

IN WITNESS WHEREOF, the parties have caused their authorized representatives to execute this Side Letter as of the date First set forth above.

 

	
CHRYSALIS   PHARMA AG
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
By:   
    	
/s/   Roland Bufton
    	
 
    	
By:
    	
/s/   Gerald Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Roland   Bufton
    	
 
    	
Name:
    	
Gerald   Wisler
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:   
    	
Chairman
    	
 
    	
Title:
    	
President &   CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
By:   
    	
/s/   Johannes Spleiss
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:   
    	
Johannes   Spleiss
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title:   
    	
Director
    	
 
    	
 
    

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

September 10, 2012

 

Chrysalis Pharma AG

 

Dear Sir:

 

Reference is hereby made to the following three agreements:

 

·                  The License Agreement now by and between Chrysalis Pharma AG (“Chrysalis”) and Omthera Pharmaceuticals, Inc. (“Omthera”), dated November 13, 2009, as amended (the “License Agreement”);

 

·                  The Supply Agreement originally by and between Ocean Nutrition Canada Limited (“ONC”) and Tillotts Pharma AG (“Tillotts”), dated February 25, 2009 (the “ONC Supply Agreement”);

 

·                  The Release Agreement presently by and between Ocean Nutrition Canada Limited and Omthera, dated March 12, 2012 (the “Release Agreement”).

 

In connection with the request by Omthera that Chrysalis, PVT Polyver Trust AG (“Polyver”), and Tillotts each execute the Release Agreement on the terms set forth therein, Omthera hereby confirms that Omthera has entered into a supply agreement with ONC entitled “Intermediate Feedstock Supply Agreement”, dated March 12, 2012.  Omthera has provided to Chrysalis a copy of such Intermediate Feedstock Supply Agreement.  Omthera further confirms that the proviso set forth in Section 1, last sentence is fulfilled and consequently all payment obligations under the ONC Supply Agreement are extinguished.  Chrysalis hereby confirms that Chrysalis, Polyver and Tillotts will execute the Release Agreement.

 

With the termination of the ONC Supply Agreement, the assignment of manufacturing rights to Omthera as originally contemplated under the License Agreement was completed, so that as contemplated in Section 2.2 of the License Agreement, Licensor has assigned control of manufacturing of the Product to Omthera.  Notwithstanding anything to the contrary, the Parties to the License Agreement understand and agree that the Exclusive License hereby includes the right to make and have made Product as specified in such Section 2.2.  Nothing in this letter will be construed to imply that the ONC Supply Agreement has not already been terminated and such transfer has not already occurred.

 

Upon receiving the Release Agreement executed by each of Chrysalis, Polyver and Tillotts, Omthera will pay Chrysalis the milestone payment of [...***...] set forth in Section 11.1(i) of the License Agreement.

 

To the extent required by the terms hereof, this letter agreement will be treated as amending the terms of the License Agreement, and each of the undersigned parties hereby confirms that the individual executing this letter agreement on such party’s behalf is a duly authorized officer of such party.  Capitalized terms used, but not defined, herein will have the meanings set forth in the License Agreement.

 

***Confidential Treatment Requested

 

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 230.406

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
Omthera   Pharmaceuticals, Inc.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/Gerald   Wisler
    	
 
    
	
Name:   
    	
Gerald   Wisler
    	
 
    
	
Title:   
    	
President   and CEO
    	
 
    
	
 
    	
 
    
	
Agreed   and Accepted:
    	
 
    
	
 
    	
 
    
	
Chrysalis   Pharma AG
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/Johannes   Sleiss
    	
 
    
	
Name:   
    	
Johannes   Spleiss
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/Thomas   Toth von Kisker
    	
 
    
	
Name:
    	
Thomas   Toth von Kisker
    	
 
    
	
Title:
    	
Director
    	
 
    

 

***Confidential Treatment Requested

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}]]