Document:

exv10w12

 

Exhibit 10.12

PLEDGE AGREEMENT

     AGREEMENT made as of March 21, 2002 by and between Denis M. O’Donnell,
M.D., residing at 5 Westgate Road, Winchester, Massachusetts 01890 (the
“Pledgor”) and Novavax, Inc., a Delaware corporation with an address 8320
Guilford Road, Columbia, Maryland 21046 (the “Pledgee”).

     WHEREAS, the Pledgor has borrowed monies from the Pledgee to acquire stock
of Pledgee upon the exercise of options held by Pledgor, as evidenced by a
Secured Promissory Note of even date herewith (the “Note”); and

     WHEREAS, as a condition to the Note the Pledgee requires that the Pledgor
pledge all shares of capital stock acquired pursuant to the exercise of such
stock options;

     NOW, THEREFORE, in consideration of the foregoing and for $1.00 and other
good and valuable consideration, the receipt of which the Pledgor hereby
acknowledges, the Pledgor hereby agrees as follows:

     1.  Pledge.  The Pledgor hereby assigns, transfers, sets over and pledges to
the Pledgee as collateral to secure the payment and performance of any and all
liabilities and obligations of the Pledgor to the Pledgee arising under the
Note, 166,667 shares of common stock of Novavax, Inc. (the “Pledged Shares”),
and herewith delivers to the Pledgee the certificates evidencing the same,
endorsed in blank or with duly executed stock powers attached.

     2.  Representations; Covenants.  The Pledgor represents and warrants that he
has good and marketable title to all of the Pledged Shares, free and clear of
any mortgage, pledge, lien, encumbrance or charge of any nature whatsoever,
except the pledge created by this Agreement in favor of the Pledgee, and duly
and validly pledged hereby with the Pledgee in accordance with applicable law.
The Pledgor covenants that it will defend the Pledgee’s right, title, special
property and security interest in and to the Pledged Shares against the claims
of all persons whomsoever.

     3.  Rights Prior to Declaration of Default.

		
	 	     (a)  Unless an Event of Default (as hereafter defined) shall have occurred
and be continuing, the Pledged Shares shall continue to be registered in the
name of the Pledgor and the Pledgor shall have the right to vote the same at
all stockholders meetings at which the same or any part thereof may be voted
and to receive any cash dividends (other than liquidating or similar dividends)
allocable thereto. Stock dividends and any other distribution with respect to
the Pledged Shares shall be pledged as additional collateral and held by the
Pledgee subject to the terms and conditions hereof.

		
	 	     (b)  If the stock of any corporation whose shares are pledged hereunder
shall be changed into or exchanged for a different number of kind of shares of
stock or other securities of such corporation or of another corporation,
whether through merger, consolidation, reorganization, recapitalization, stock split, or combination of shares, there
shall be substituted 

 

 

		
	 	for each of the Pledged Shares held by the Pledgee under
this Agreement the number of shares of stock or other securities into which
each outstanding share of such capital stock shall be so changed or for which
each share shall be exchanged. The Pledgor hereby agrees that any securities
so substituted for the Pledged Shares pursuant to the terms of such change or
exchange shall be delivered directly to the Pledgee, to be held and disposed of
by the Pledgee in accordance with the terms and provisions of this Agreement.
The Pledgor authorizes the Pledgee to surrender the Pledged Shares or take
whatever other action is required to be taken with respect to the Pledged
Shares under the terms of such change or exchange and further agrees to execute
and deliver to the Pledgee such stock powers as may be necessary to carry out
the purposes of this Agreement in view of such substitution.

     4.  Default.  If any of the following events (“Events of Default”) shall occur:

		
	 	     (a)  The Pledgor shall be in breach of any covenant contained herein or in
the Note; or

		
	 	     (b)  If the Pledgor shall admit in writing its inability to pay its debts;
or make an assignment for the benefit of creditors or suffer a receiver or
trustee for all or substantially all of its property to be appointed and, if
appointed without its consent, not to be discharged within 60 days; or suffer
proceedings under any law relating to bankruptcy, insolvency or the
reorganization or relief of debtors to be instituted by or against it and, if
contested by it, not to be dismissed or stayed within 60 days; or suffer any
judgment to be entered against it, or any writ of attachment or execution or
any similar process to be issued or levied against a substantial part of its
property, which judgment, writ or process is not satisfied, discharged,
released, stayed, bonded or vacated within 60 days after its entry, issue or
levy;

		
	 	then, and in every such event, the Pledgee may declare the Pledgor in default
and exercise the rights and remedies of a secured party under the Uniform
Commercial Code and any other rights and remedies set forth in this Agreement.

     5.  Rights on Default.

		
	 	     (a)  If an Event of Default shall have occurred and be continuing, the
Pledgee is hereby irrevocably authorized to cause the Pledged Shares to be
transferred into its name or the name of its nominee on the books of the
corporation issuing the same; provided, however, that all such Pledged Shares
so transferred shall continue to be held and disposed of by the Pledgee in
accordance with this Agreement. The Pledgor agrees that any transfer of the
Pledged Shares pursuant to this paragraph shall not be deemed a sale or
disposition under the provisions of Article 9 of the Uniform Commercial Code
nor an acceptance of such stock in satisfaction of the obligations of the
Pledgor to the Pledgee or any portion thereof.

		
	 	     (b)  The Pledgee, upon compliance with any mandatory requirements of laws,
but without further demand, attachment or notice of any kind, all of which are
hereby expressly waived by the Pledgor, may sell the Pledged Shares, in whole
at any time or in part from time to time, for cash, upon credit or for future
delivery, at public sale or at any brokers’ board or exchange or at private sale, all at the option and in the complete discretion
of the Pledgee. The 

2

 

		
	 	Pledgee may be a purchaser at any such public or private
sale and may apply the amount outstanding on obligations of the Pledgor to the
Pledgee, plus interest accrued, towards the payment of the purchase price of
the Pledged Shares. Any such sale shall be free from any right or equity of
redemption in the Pledgor, which right or equity is hereby expressly waived and
released by the Pledgor.

		
	 	     (c)  In case of any sale by the Pledgee of any of the Pledged Shares on
credit or for future delivery, the Pledged Shares sold may be retained by the
Pledgee until the sales price is paid by the purchaser, but the Pledgee shall
incur no liability in case of failure of the purchaser to take up and pay for
the Pledged Shares so sold. In case of any such failure, such Pledged Shares
so sold may be again similarly sold.

		
	 	     (d)  After deducting all costs or expenses of every kind, including
reasonable attorneys’ fees, the Pledgee shall apply the proceeds from the sale
of the Pledged Shares towards payment of all outstanding obligations of the
Pledgor to the Pledgee under the Note. Any proceeds remaining after the
payment in full of all such obligations shall be paid by the Pledgee to the
Pledgor or to whomsoever may be lawfully entitled to receive the same or as a
court of competent jurisdiction may direct.

		
	 	     (e)  Except as otherwise expressly provided herein, after an Event of
Default the Pledgee may deal with the Pledged Shares and the proceeds thereof
in all respects as if the Pledged Shares and the proceeds thereof were its own
property.

		
	 	     (f)  No course of dealing or delay in taking or failure to take any action
with respect to any Event of Default shall affect the Pledgee’s right to take
such action at a later time. No waiver as to any one Event of Default shall
affect the Pledgee’s rights upon any other Event of Default.

		
	 	     (g)  The Pledgee may exercise any or all of its rights or remedies after
an Event of Default concurrently with, or independent of, and without regard
to, the provisions of any other security agreement or other instrument which
secures any obligation of the Pledgor to the Pledgee.

		
	 	     (h)  The requirement of the Uniform Commercial Code that the Pledgee give
the Pledgor reasonable notice of any proposed sale or disposition of the
Collateral shall be met if such notice is given at least seven days before the
time of such sale or disposition.

     6.  Notices.  Any notice under this Agreement shall be in writing and shall be
deemed delivered if mailed by certified mail, postage prepaid, return receipt
requested, if addressed to the Company or the Pledgee, as the case may be, at
the respective addresses given at the beginning of this Agreement or at such
other address of a party as may be specified by notice in writing given by such
party to the other party after the date hereof. If notice is given by mail and
is not delivered within three days of the date of the postmark, any applicable
notice period shall be extended by two days. Nothing contained herein shall
prevent the giving of actual written notice in any other effective manner.

3

 

     7.  Successors and Assigns.  This Agreement shall be binding upon, and inure to
the benefit of, the Pledgor and his heirs, executors, successors and assigns.
This Agreement shall be binding upon, and inure to the benefit of, the Pledgee
and its successors and assigns.

     8.  Term.  The term of this Agreement shall be until all obligations of the
Pledgor to the Pledgee under the Note have been paid and performed in full.
Upon payment in full of all such obligations, this Agreement shall terminate
and the Pledgee shall surrender to the Pledgor the Pledged Shares which have
not theretofore been sold or otherwise disposed of pursuant to this Agreement,
together with any excess proceeds from any sale of the Pledged Shares which at
the time may be held by the Pledgee hereunder.

     9.  Waivers.  With respect both to obligations of the Pledgor to the Pledgee
and with respect to any collateral securing said obligations, including the
Pledged Shares, the Pledgor assents to any extension or postponement of the
time of payment or any other indulgence, to any substitution, exchange or
release of collateral, to the addition or release of any party or person
primarily or secondarily liable, to the acceptance of partial payment thereof
and the settlement, compromising or adjusting of any thereof, all in such
manner and at such time or times as the Pledgee may deem advisable. The
Pledgee may exercise its rights with respect to the Pledged Shares without
resorting to and without regard to other collateral or sources for
reimbursement for liability. The Pledgee shall not be deemed to have waived
any of its rights upon or under any obligation of the Pledgor to the Pledgee or
with respect to the Pledged Shares unless such waiver is in writing and signed
by the Pledgee. No delay or omission on the part of the Pledgee in exercising
any right shall operate as a waiver of such right or any other right. A waiver
on any one occasion shall not be construed as a bar to or waiver of any right
on any future occasion. All rights and remedies of the Pledgee with respect to
obligations of the Pledgor to the Pledgee or the Pledged Shares, whether
evidenced hereby or by any other instrument or document, shall be cumulative
and may be exercised separately or concurrently.

     10.  Governing Law.  This Agreement and the rights and obligations of the
parties hereunder shall be governed by and construed in accordance with the
laws of the State of Delaware applicable to contracts made and to be performed
entirely within such State, and shall have the effect of a sealed instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, under
seal, as of the day, month and year first written above.

	 	 	 
	 	 	 
	NOVAVAX, INC	 	 
	 	 	 
	 	 	 
	By:

 	 	 

Denis M. O’Donnell, M.D.

4exv10w13

 

Exhibit 10.13

CIBC World Market Corp.

One World Financial Center

200 Liberty Street

New York, NY 10261

GUARANTY OF ACCOUNT

Gentlemen:

     1.  In consideration of your opening, and/or continuing, an account or
accounts (which separately or jointly, with and all renewals thereof, are
hereinafter referred to as “said guaranteed account”) with, or otherwise
giving credit in said guaranteed account to Dr. Denis O’Donnell and Mrs.
Claudia O’Donnell (hereinafter referred to as the “Customer”), on such terms
and conditions as may, from time to time, be agreed to between you and the
Customer (notice of which is hereby waived). The undersigned (hereinafter
referred to as the “Guarantor”) hereby subject to Section 3 hereof, agrees
to pay to you, on demand, any indebtedness which may now or hereafter be
owing to you by the Customer on said guaranteed account, up to $500,000
(five hundred thousand).

     2.  The Guarantor agrees that this guaranty shall be effective not only with
respect to said guaranteed account but also with respect to any and all
renewals thereof; that said guaranteed account may be changed from time to
time by the purchase or sale or exchange of securities or other property, or
by payments or by deliveries of securities or other property by or to or
upon the order of the customer, and that said guaranteed account may be
closed out by you at any time; that, in general, you may deal with and
accept the orders of the Customer with respect to transactions in said
guaranteed account, without notice to the Guarantor, the same as if the
guaranty had not been given; and that the death of the Guarantor shall not
affect the liability of the Guarantor or his estate with respect to
transactions in said guaranteed account, subsequent to the death of the
Guarantor and prior to the receipt by you or written notice thereof.

     3.  Prior to demanding payment from Guarantor, you agree to first make demand
for payment by Customer, then to liquidate the account and only thereafter
to demand payment from Guarantor.

     4.  The Guarantor hereby waives (a) any notices whatsoever as to the current
condition of said guaranteed account or any changes therein from time to
time and the manner of conducting or closing the same or otherwise; and (b)
in the event of default by the Customer, any requirement of legal or
equitable proceedings or otherwise on your part against the Customer as a
condition precedent to enforcing the obligations of the Guarantor hereunder.

     5.  This guaranty shall be binding upon the Guarantor, its successors and
assigns and shall inure to the benefit of your present firm and of any
successor firm or firms, irrespective of any change or changes at any time
in the personnel thereof, for any cause whatsoever, and of the assigns of
your present firm or any successor firm.

 

 

     6.  By written notice to you, the Guarantor may at any time terminate his
obligations and your rights hereunder in respect to future transactions in
said guaranteed account, and such termination, in respect to future
transactions, shall also take place loso facto on receipt by you of written
notice of the Guarantor’s death; but notwithstanding such termination as to
future transactions the obligations of the Guarantor hereunder with respect
to any indebtedness in said guaranteed account. Including any losses
incurred in liquidating said guaranteed account during a reasonable time
subsequent to the receipt of such notice, shall continue in full force and
effect until such indebtedness with the interest to date of payment thereon
has been paid to you.

     7.  This guaranty and its enforcement shall be governed by the laws of the
State of New York without giving effect to the choice of law or conflict of
laws provisions thereof.

     8.  ARBITRATION: The Guarantor agrees to submit all controversies with you to
arbitration in accordance with the provisions set forth below ad my
understanding that:

	 	•	 	Arbitration is final and binding on the parties.
	 
	 	•	 	The parties are waiving their right to seek remedies
in court, including the right to a jury trial.
	 
	 	•	 	Pre-arbitration discovery is generally more limited
and different from court proceeding.
	 
	 	•	 	The arbitrator’s award is not required to include
factual findings or legal reasoning and any party’s right to
appeal or to seek modification of rulings by arbitrators is
strictly limited.
	 
	 	•	 	The panel of arbitrators will typically include a
minority of arbitrators who were or are affiliated with the
securities industry.

     All controversies which may arise between us concerning any transaction or
the construction, performance or breach of this or any other agreement between
us, whether entered into prior, on, or subsequent to the date hereof, shall be
determined by arbitration in accordance with the Federal Arbitration Act to the
fullest extent permitted by law. The arbitration shall be determined only
before and in accordance with the rules then in effect of either the New York
Stock Exchange, Inc. or the National Association of Securities Dealers, Inc. or
any other exchange or self-regulatory organization of which you are a member,
as the Guarantor may elect. The award of the arbitrators, or of the majority of
them, shall be final, and judgment upon the award may be entered by any court
of competent jurisdiction without notice to the Guarantor. Notice preliminary
to, in conjunction with, or incident to such arbitration may be sent to the
Guarantor by mail and the Guarantor waives personal service thereof. No person
shall bring putative or certified class action to arbitration, nor seek to
enforce any pre-dispute arbitration agreement against any person who has
initiated in court a putative class action; or who is a member of a putative
class who has not opted out of the class with respect to any claims encompassed
by the putative class action until: (i) the class certification is denied; or (ii)

 

 

the class is decertified; or (iii) the customer is excluded from the class
by the court. Such forbearance to enforce an agreement to arbitrate shall not
constitute a waiver of any rights under this guaranty except to the extent
stated herein.

NOTICE OF THE ACCEPTANCE OF THIS GUARANTY IS HEREBY ACKNOWLEDGED

	 	 	 	 	 
	 
	Dated, April 29, 2002
	 
	 
	 	Columbia	 	MD	 
	 	
	 
	 	(City)	 	(State)	 

	 	 	 
	 	 	 
	 	 	/s/ John Spears, President and CEO

	 	 	 
	NOTARY (REQUIRED)	 	 
	 	 	 
	 	 	/s/ Jim Mirto, COO

	 	 	 
	Dated:

	 	 
	 	 	 
	ACCEPTED:	 	 
	 	 	 
	 	By:	/s/ CIBC World Markets Corp.

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