Document:

Exhibit 10.13

 

AMENDED AND RESTATED STOCK PURCHASE AND RESTRICTION AGREEMENT

 

THIS AMENDED AND RESTATED STOCK PURCHASE AND RESTRICTION AGREEMENT (this “Agreement”), made as of November 13, 2009 by and between Omthera Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Michael Davidson (the “Stockholder”).

 

WHEREAS, pursuant to the Stock Purchase and Restriction Agreement dated as of January 12, 2009 by and between the Company and Stockholder (the “Original Agreement”), the Company sold to Stockholder, Two Million (2,000,000) shares (the “Shares”) of common stock, par value $0.001 per share, of the Company (the “Common Stock”); and

 

WHEREAS, it was a condition of the Company’s willingness to sell the Shares to Stockholder that Stockholder and the Company enter into the Original Agreement placing certain restrictions on transfer of the Shares and giving the Company certain rights to purchase the Shares.

 

WHEREAS, the Company and Stockholder desire to amend and restate the Original Agreement in its entirety;

 

NOW, THEREFORE, for good and valuable consideration, the parties hereby agree as follows:

 

1. Purchase Transfer of Shares.  Stockholder has purchased, and the Company has sold to Stockholder the Shares at a purchase price of $0.001 per share (the “Purchase Price”), or $2,000.00 in the aggregate, which Purchase Price was delivered to the Company.

 

2. Prohibited Transfers.  Stockholder will not (whether voluntarily, involuntarily, by operation of law or otherwise) sell, assign, gift, loan, pledge, mortgage, hypothecate, encumber or otherwise transfer or dispose of (collectively, “transfer”) any Shares or any interest in any of the Shares, except (i) to the Company, (ii) as permitted by Section 8, or (iii) in the case of Vested Shares (as defined below), in compliance with Section 5, and then only in compliance with the terms of this Agreement.

 

3. Vesting of Shares.

 

(a) Time Vesting.  As long as Stockholder maintains a Business Relationship (as defined below) with the Company on each of the following dates, the number of Shares set forth opposite each such date will vest on such date:

 

	
Date
    	
 
    	
Vested Shares
    
	
As   of the date of this Agreement
    	
 
    	
500,000 (25% of the   Shares)
    
	
 
    	
 
    	
 
    
	
On   the last day of each calendar month commencing one year from the date of this   Agreement
    	
 
    	
41,667   Shares (2.083% of the Shares); such that all Shares shall be vested on the   fourth anniversary of the date hereof.
    

 

For purposes of this Agreement, Stockholder will be deemed to have a “Business Relationship” with the Company as long as Stockholder is rendering substantial services as a director, employee or consultant to the Company.  The Board of Directors of the Company (the “Board”) will have the discretion to determine whether the Business Relationship between Stockholder and the Company has terminated and the effective date of that termination.

 

(b) Acceleration of Vesting upon Acquisition Event.  If an Acquisition Event (as defined below) occurs while Stockholder has a Business Relationship with the Company, then immediately prior to the closing of such Acquisition Event, all of the remaining Unvested Shares will vest, provided,

 

 

however, that if the acquirer of the Company requests that Stockholder continues to work with the acquirer of the Company (provided that the compensation paid to the Stockholder for this work is at least comparable to his compensation by the Company at the time of the Acquisition Event) for a period of up to two years after the Acquisition Event, then 25% of the consideration received by the Stockholder for his Shares in connection with the Acquisition Event (the “Unvested Consideration”) shall be subject to vesting to secure the Stockholders continued work with the acquirer of the Company, and the amount of consideration set forth opposite each such date will vest on such date:

 

	
Date
    	
 
    	
Vested Consideration
    
	
As   of the First Anniversary of the Acquisition Event
    	
 
    	
50% of the Unvested   Consideration
    
	
 
    	
 
    	
 
    
	
As   of the Second Anniversary of the Acquisition Event
    	
 
    	
50% of the Unvested   Consideration
    

 

For purposes of this Agreement, the term “Acquisition Event” will mean, in one or a series of related transactions, (1) the sale or other disposition of all or substantially all of the assets of the Company, (2) the sale or other disposition of all of the issued and outstanding stock of the Company, or (3) the merger or consolidation of the Company with or into another entity in which all of the issued and outstanding stock of the Company is converted into or exchanged for cash, securities of another entity, or other property; provided, in each case, that the stockholders of the Company immediately before such transaction do not, immediately thereafter, beneficially own (as such term is used in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) a majority of the outstanding equity of the entity that acquires the Company’s assets or stock or of the surviving or resulting entity in such a merger or consolidation.

 

(c) Definitions.

 

(i) For purposes of this Agreement, the term “Cause” will mean (i) Stockholder’s intentional, willful or knowing failure or refusal to perform Stockholder’s duties (other than as a result of physical or mental illness, accident or injury) or any other material breach by Stockholder of the Consulting Agreement between the Company and Stockholder (the “Consulting Agreement”); (ii) dishonesty, willful or gross misconduct, or illegal conduct by Stockholder in connection with Stockholder’s consulting to the Company; (iii) Stockholder’s conviction of, or plea of guilty or nolo contendere to, a charge of commission of a felony (exclusive of any felony relating to negligent operation of a motor vehicle); provided, however, in the case of clause (i) above, the Company shall be required to give Stockholder fifteen (15) calendar days prior written notice of its intention to terminate Stockholder for Cause and Stockholder shall have the opportunity during such fifteen (15) day period to cure such event if such event is capable of being cured; provided, further, that in the event that Stockholder terminates his consulting to the Company during such fifteen (15) day period for any reason, such termination shall be considered a termination for Cause.

 

(ii) For purposes of this Agreement, the term “Good Reason” will mean ny material breach by the Company of its obligations under the Consulting Agreement; provided that in any case Stockholder provides the Company with written notice of Stockholder’s intention to terminate Stockholder’s consulting for Good Reason within thirty (30) days after the occurrence of the event that Stockholder believes would constitute Good Reason, give the Company an opportunity to cure for thirty (30) days following receipt of such notice from Stockholder, if the event is capable of being cured or, if not capable of being cured, to have the Company’s representatives meet with Stockholder and Stockholder’s counsel to be heard regarding whether Good Reason exists for Stockholder to terminate Stockholder’s consulting to the Company.

 

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(d) Vested and Unvested Shares.  The term “Vested Shares” will mean all of the Shares that have vested pursuant to Sections 3(a), 3(b) and 3(c).  The term “Unvested Shares” will mean all of the Shares other than Vested Shares.

 

4. Company’s Purchase Option for Unvested Shares.

 

(a) Purchase Option.  Upon the occurrence of one or more of the following events, the Company will have the option (the “Purchase Option”) to purchase any or all of the Unvested Shares from Stockholder or her personal representative, as the case may be, at the Purchase Price per Share and on the other terms set forth in Section 4(b):

 

(A) Stockholder ceases to maintain a Business Relationship with the Company for any reason, including because of Stockholder’s resignation, death, disability or involuntary termination or removal, with or without cause; or

 

(B) Stockholder purports to transfer any Shares (whether voluntarily, involuntarily or by operation of law) in violation of the terms of this Agreement, including (i) any such transfer pursuant to a decree of divorce, dissolution or separate maintenance, any property settlement or any separation or other agreement under which any Shares are transferred or awarded to a spouse or required to be transferred (a “Divorce or Separation Transfer”), (ii) any such transfer pursuant to execution of judgment against any Shares, or (iii) any such transfer in connection with any bankruptcy or insolvency proceeding.

 

(b) Exercise of Purchase Option.  If the Company desires to exercise the Purchase Option, it will do so by delivering or sending to Stockholder, within one hundred and twenty (120) days after the Company first has written notice of the occurrence of the triggering event described in Section 4(a), a written notice specifying the number of Unvested Shares which the Company elects to purchase, the aggregate Purchase Price, and a date for the closing under this Section 4, which date will not be more than thirty (30) days from the date of such notice.  The closing of the purchase and sale of such Shares will take place at the principal offices of the Company or such other place as the Company and Stockholder may agree.  At the closing, Stockholder (along with any transferees permitted pursuant to the terms of Section 8 of this Agreement) will transfer to the Company the number of Unvested Shares specified in the Company’s notice, free of all liens, encumbrances and rights of others, by delivery of a certificate or certificates representing those Shares, duly endorsed for transfer or accompanied by duly executed stock powers.  Upon its receipt of such certificate or certificates, the Company will pay for such Unvested Shares by any of the following methods, chosen in sole discretion: (i) by delivery to Stockholder of a check in the amount of the aggregate Purchase Price; (ii) by reduction of indebtedness owed by Stockholder to the Company in that amount; or (iii) by a combination of the foregoing methods; provided, however, that in the event the funds of the Company legally available are insufficient to make such payment, in whatever method the Company may choose, those funds which are legally available will be used to make such payment and any unpaid portion of such payment will be paid at such time as funds become legally available.  Alternatively, the Company may assign the Purchase Option to one or more Persons.

 

5. Company’s Repurchase Right on Vested Shares.  If the Stockholder is terminated for Cause or leaves without Good Reason before the first anniversary of the date of this Agreement, the Company shall have the right (the “Repurchase Right”) to repurchase from the Stockholder (or any transferees permitted pursuant to the terms of Section 8 of this Agreement) 15% of the total number of Shares held by the Stockholder (or any transferees permitted pursuant to the terms of Section 8 of this Agreement) at the Purchase Price per Share.  The Repurchase Right may be exercised by the Company within the six (6) months following the date of such termination (the “Repurchase Period”).  The Repurchase Right shall be exercised by the Company by giving the Stockholder (or any transferees permitted pursuant to the terms

 

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of Section 8 of this Agreement) written notice on or before the last day of the Repurchase Period of its intention to exercise the Repurchase Right, and, together with such notice, tendering to the Stockholder (or any transferees permitted pursuant to the terms of Section 8 of this Agreement) an amount equal to the Purchase Price per Share.  The Company may assign the Repurchase Right to one or more Persons.  Upon such notification, the Stockholder (or any transferees permitted pursuant to the terms of Section 8 of this Agreement) shall promptly surrender to the Company any certificates representing the Vested Shares being purchased, together with a duly executed stock power for the transfer of such Vested Shares to the Company or the Company’s assignee or assignees.

 

6. Company’s Right of First Refusal on Vested Shares.

 

(a) Notice and Offer.  Subject to termination pursuant to Section 6(d), before any sale or other transfer of any Vested Shares in any manner (whether voluntary, involuntary, by operation of law or otherwise), Stockholder will give written notice thereof to the Company identifying the proposed transferee, the purchase price, if any, the terms of the proposed transaction, and offering such Shares (the “Offered Shares”) to the Company for purchase or other acquisition by it at the same price, if any, and on the same terms.  If the proposed transaction is a transfer for value, Stockholder must have a good faith reasonable expectation of being able to effect the transfer at the purchase price set forth in the notice, and the notice will state the basis for that expectation.

 

(b) Right of Refusal.  The Company will have thirty (30) days after actual receipt of such offer (the “Option Period”) to notify Stockholder in writing whether the Company elects to purchase or otherwise acquire all or any part of the Offered Shares.  Any such notice will specify the number of Offered Shares which the Company elects to purchase or otherwise acquire and a date for the closing under this Section 6, which date will not be more than thirty (30) days from the date of such notice.  The closing of the purchase or other acquisition of such Shares will take place at the principal offices of the Company or such other place as the Company and Stockholder may agree.  At the closing, Stockholder will transfer to the Company the number of Offered Shares specified in the Company’s notice, free of all liens, encumbrances and rights of others, by delivery of a certificate or certificates representing those Shares, duly endorsed for transfer or accompanied by duly executed stock powers, against payment therefor at the same price, if any, and according to the same terms as were offered by the proposed transferee (or, at the Company’s option, in full on the closing date).  In the event that all or part of the price, if any, stated in Stockholder’s offer is not cash or cash equivalents, the Company may elect instead to pay the fair value in cash (as determined by the Board) of that part of the stated price.  The Company will have no obligation to purchase or otherwise acquire any of the Offered Shares, and failure by the Company to notify Stockholder within the Option Period of an election to purchase will be deemed an election not to purchase.

 

(c) Transfer to Third Party.  If the Company has not elected within the Option Period to purchase all of the Offered Shares, then within thirty (30) days from the end of the Option Period Stockholder may transfer any Offered Shares which the Company has not elected to purchase or otherwise acquire, but only to the proposed transferee at the same price, if any, and according to the same terms as Stockholder previously notified the Company.  Shares that are so transferred will remain subject to the rights of the Company set forth in this Agreement.

 

(d) Lapse.  All of Stockholder’s obligations, and all of the Company’s rights, with respect to future transfer of Vested Shares under this Section 5 will terminate and will be of no further force or effect upon the earlier to occur of (i) an underwritten public offering of the Company’s equity pursuant to an effective registration statement under the Securities Act of 1933, as amended, or (ii) an Acquisition Event.

 

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7. Further Agreements Regarding Transfers.

 

(a) Stock Transfer Records.  Any attempted transfer of any Shares in violation of the terms of this Agreement will be ineffective to vest any legal or beneficial interest in the Shares in any transferee and will be null and void.  The Company will not be required to transfer any Shares on its stock transfer records unless the transfer is in compliance with the provisions of this Agreement.  Nor will the Company be required to treat as the owner of the Shares, or to accord the right to vote or to pay dividends to, any person or entity to which such Shares have purportedly been transferred in violation of this Agreement.  Nevertheless, the Board may in any particular circumstances waive any of the restrictions on transfer of the Shares provided for hereunder.

 

(b) Custody of Certificates.  To facilitate the exercise of the Company’s rights hereunder, the Company or its counsel will hold all certificates representing Unvested Shares, together with such number of undated and otherwise blank stock powers executed by Stockholder as the Company may request in the form of Exhibit A attached hereto.  Without limiting the generality of the foregoing, the Company will have the right to cause transfers of such Unvested Shares to be effected pursuant to Section 4(b) of this Agreement; provided, however that no transfer of Unvested Shares will be effected hereunder unless the Company has complied with its obligations under this Agreement.

 

8. Certain Permitted Transfers.  Notwithstanding the foregoing, Stockholder may transfer any or all of the Shares to: (i) any member of Stockholder’s immediate family or any trust for the benefit of Stockholder or any such family member, other than pursuant to any Divorce or Separation Transfer; or (ii) by will or the laws of descent and distribution.  Prior to and as a condition of any transfer described in the preceding sentence, the transferee will agree (in a written agreement which will be satisfactory in form and substance to the Company and its counsel) to be bound by all of the provisions of this Agreement in the same manner as Stockholder, and, whether or not the transferee so agrees, the Shares will remain subject to, and the transferee will be bound by, those provisions (including the vesting provisions, which will continue to relate to Stockholder’s Business Relationship with the Company).  Upon any permitted transfer and absent the Company’s prior written approval to the contrary, the number of Unvested Shares and Vested Shares transferred to the transferee will be in the same proportion as the number of Unvested and Vested Shares held by Stockholder immediately prior to the transfer, and all subsequent vesting of Unvested Shares will be attributed in the same proportion between Stockholder and the transferee.  For purposes of this Section 8, “immediate family” will mean Stockholder’s spouse and lineal descendants (including stepchildren and adopted children).

 

9. Adjustments for Stock Splits, Mergers, etc.

 

(a) If from time to time during the term of this Agreement there is any stock split, stock dividend, combination of shares, recapitalization or reclassification affecting the Common Stock, then the provisions of this Agreement will apply to all securities received by Stockholder in respect of the Shares, in the same manner and to the same extent as the Shares, and thereafter such securities will for all purposes be deemed to be Shares hereunder.  In any such event, the Purchase Price and the other provisions hereof will be appropriately adjusted, if necessary, so that they will continue to apply with similar effect to such newly constituted Shares.

 

(b) If the Shares are converted into or exchanged for, or stockholders of the Company receive by reason of any distribution in total or partial liquidation, securities of another entity, or other property (including cash), pursuant to any merger or consolidation of the Company or acquisition of its assets, then provided that the agreement by which any such transaction is effected does not expressly provide otherwise, the rights of the Company under this Agreement will inure to the benefit of the Company’s successor and the provisions of this Agreement will apply to all securities or other property received by Stockholder upon such conversion, exchange or distribution in respect of the Shares, in the

 

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same manner and to the same extent as the Shares, and thereafter such securities or other property will for all purposes be deemed to be Shares hereunder.  In any such event, the Purchase Price and the other provisions hereof will be appropriately adjusted, if necessary, so that they will continue to apply with similar effect to such newly constituted Shares.

 

10. Certain Remedies of the Company.

 

(a) Failure to Deliver Shares to the Company.  The Company will have a continuing right and option (but not an obligation) to purchase or acquire the Shares purported to be transferred by or for Stockholder for a price, if any, and on terms the same as those at which such Shares could have been purchased hereunder at the time of the transfer.  Thus, if Stockholder becomes obligated to sell any Shares to the Company under this Agreement and fails to deliver such Shares in accordance with the terms of this Agreement, the Company, may, at its option at any time, in addition to all other remedies it may have, send to Stockholder the purchase price for such Shares which is specified in this Agreement.  Thereupon, upon written notice to Stockholder, the Company may cancel on its books the certificate or certificates representing the Shares to be sold, and may issue, in lieu thereof, in the name of the Company a new certificate or certificates representing such Shares, and thereupon all of Stockholder’s rights in and to such Shares will terminate.

 

(b) Specific Enforcement.  Stockholder expressly agrees that the Company will be irreparably damaged if this Agreement is not specifically enforced.  Upon a breach or threatened breach of this Agreement by Stockholder, the Company will, in addition to all other remedies, be entitled to a temporary or permanent injunction or a decree for specific performance, without showing any actual damage or posting any bond, in accordance with the provisions hereof.

 

(c) Cumulative.  The rights and remedies of the Company hereunder will be cumulative and in addition to all other rights and remedies the Company may have, at law, in equity, or otherwise.

 

11. Representations and Acknowledgments of Stockholder.  Stockholder hereby represents, warrants and agrees that:

 

(a) Investment.  Stockholder is acquiring the Shares for Stockholder’s own account, and not directly or indirectly for the account of any other person or entity.  Stockholder is acquiring the Shares for investment and not with a view to distribution or resale thereof except in compliance with the Act and any applicable state law regulating securities.

 

(b) Access to Information.  Stockholder has had the opportunity to ask questions of, and to receive answers from, appropriate executive officers of the Company with respect to the transactions contemplated hereby and with respect to the business, affairs, financial condition and results of operations of the Company.  Stockholder has had access to such financial and other information as is necessary in order for Stockholder to make a fully informed decision as to investment in the Company, and has had the opportunity to obtain any additional information necessary to verify any of such information to which Stockholder has had access.

 

(c) Pre-Existing Relationship.  Stockholder further represents and warrants that Stockholder has either (i) a pre-existing relationship with the Company or one or more of its officers or directors consisting of personal or business contacts of a nature and duration which enable Stockholder to be aware of the character, business acumen and general business and financial circumstances of the Company or the officer or director with whom such relationship exists or (ii) such business or financial expertise as to be able to protect Stockholder’s own interests in connection with the purchase of the Shares.

 

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(d) Speculative Investment.  Stockholder’s investment in the Company represented by the Shares is highly speculative in nature and is subject to a high degree of risk of loss in whole or in part; the amount of such investment is within Stockholder’s risk capital means and is not so great in relation to Stockholder’s total financial resources as would jeopardize the personal financial needs of Stockholder and Stockholder’s family in the event such investment were lost in whole or in part.

 

(e) Unregistered Securities.  Stockholder will bear the economic risk of investment for an indefinite period of time because the Shares have not been registered under the under the Securities Act of 1933, as amended, (the “Act”) and therefore cannot and will not be sold unless they are subsequently registered under the Act or an exemption from such registration is available.  The Company has made no representations, warranties or covenants whatsoever as to whether any exemption from the Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 under the Act, will become available and any such exemption pursuant to Rule 144, if available at all, will not be available unless: (i) a public trading market in the Common Stock then exists, (ii) adequate information as to the Company’s financial and other affairs is then available to the public, and (iii) all requirements of Rule 144 have been satisfied.  Transfer of the Shares has not been registered or qualified under any applicable state law regulating securities and therefore the Shares cannot and will not be sold unless they are subsequently registered or qualified under any such law or an exemption therefrom is available.  The Company has made no representations, warranties or covenants whatsoever as to whether any exemption from any such act will become available.

 

12. Legends.  Stockholder hereby agrees that the Company may maintain “stop transfer” orders with respect to the Shares, and that each certificate or other document evidencing the Shares will bear conspicuous legends in substantially the following forms as well as such other legends as the Company may reasonably require:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THE SECURITIES MAY NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SUCH ACT, OR AN OPINION OF COUNSEL FOR THE CORPORATION THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES OR “BLUE SKY” LAWS OF ANY JURISDICTION.  THEY MAY NOT BE OFFERED OR SOLD WITHOUT AN OPINION OF COUNSEL TO THE CORPORATION TO THE EFFECT THAT THE PROPOSED TRANSACTION WILL BE EXEMPT FROM REGISTRATION, QUALIFICATION AND FILINGS IN ALL APPLICABLE JURISDICTIONS.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RIGHTS OF PURCHASE AND RESTRICTIONS ON TRANSFER SET FORTH IN AN AMENDED AND RESTATED STOCK PURCHASE AND RESTRICTION AGREEMENT DATED AS OF NOVEMBER       , 2009, A COPY OF WHICH THE COMPANY WILL FURNISH TO THE HOLDER OF THIS CERTIFICATE UPON REQUEST AND WITHOUT CHARGE.

 

13. “Lock-Up” Agreement.  Stockholder will not sell, offer, pledge, contract to sell, grant any option or contract to purchase, purchase any option or contract to sell, grant any right or warrant to purchase, lend or otherwise transfer or encumber, directly or indirectly, any Shares or other securities of the Company, nor will Stockholder enter into any swap, hedging or other arrangement that transfers to

 

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another, in whole or in part, any of the economic consequences of ownership of any Shares or other securities of the Company, during the period from the filing of the first registration statement of the Company under the Act that includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the Act through the end of the 180-day period following the effective date of such registration statement (or such other period as may be requested by the Company or the underwriters to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, without limitation, the restrictions contained in NASD Rule 2711, or any successor provisions or amendments thereto).  Stockholder further agrees, if so requested by the Company or any representative of the underwriters, to enter into such underwriter’s standard form of “lockup” or “market standoff” agreement in a form satisfactory to the Company and such underwriter.  The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of any such restriction period.

 

14. Tax Matters.

 

(a) No Reliance.  Stockholder acknowledges that Stockholder has not relied and will not rely upon the Company or the Company’s counsel with respect to any tax consequences related to the ownership, purchase, or disposition of the Shares.  Stockholder assumes full responsibility for all such consequences and for the preparation and filing of all tax returns and elections which may or must be filed in connection with such Shares.

 

(b) 83(b) Election.  Stockholder understands that Section 83(a) of the Internal Revenue Code of 1986, as amended (the “Code”) taxes as ordinary income the difference between the amount paid for the Shares and the fair market value of the Shares as of the date any restrictions on the Shares lapse.  In this context, “restriction” means the right of the Company to buy back the Unvested Shares pursuant to Section 4.  Stockholder understands that Stockholder may elect to be taxed at the time the Shares are purchased, rather than when and as the Purchase Option expires, by filing an election under Section 83(b) (an “83(b) Election”) of the Code with the Internal Revenue Service within 30 days from the date of purchase.  Even if the fair market value of the Shares at the time of the execution of this Agreement equals the amount paid for the Shares, the election must be made to avoid income under Section 83(a) in the future.  Stockholder understands that failure to file such an election in a timely manner may result in adverse tax consequences for Stockholder.  Stockholder further understands that an additional copy of such election form should be filed with her federal income tax return for the calendar year in which the date of this Agreement falls.  Stockholder acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to purchase of the Shares hereunder, and does not purport to be complete.  Stockholder further acknowledges that the Company has directed Stockholder to seek independent advice regarding the applicable provisions of the Code, the income tax laws of any municipality, state or foreign country in which Stockholder may reside, and the tax consequences of Stockholder’s death.

 

(c) Stockholder Decision.  Stockholder agrees that she will execute and deliver to the Company with this executed Agreement a copy of the Acknowledgment and Statement of Decision Regarding Section 83(b) Election (the “Acknowledgment”), attached hereto as Exhibit B.

 

15. General.

 

(a) Notices.  Any and all notices, requests or other communications hereunder will be given in writing and delivered in person or sent by registered or certified mail, return receipt requested, postage prepaid; and such notices will be addressed: (i) if to the Company, to the President of the Company at its principal office, and (ii) if to Stockholder, to the address of Stockholder as reflected in the records of the Company, unless notice of a change of address is furnished to all parties by written notice in accordance with this Section 15(a).  Any notice which is required to be made within a stated period of

 

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time will be considered timely if delivered or mailed as provided above before midnight of the last day of such period.

 

(b) Severability.  The invalidity or unenforceability of any provision of this Agreement will not affect the other provisions hereof, and each provision of this Agreement will be enforced to the maximum extent permitted by law and, to the extent invalid or unenforceable, will be severable.  Without limiting the generality of the foregoing, if the exercise of the Company’s right of first refusal set forth in Section 6 is deemed to be unenforceable by a court of competent subject matter because the price paid or to be paid by the Company in accordance with the terms of Section 6 would give rise to an inequitable result on account of Stockholder, the Company will have the right, but not the obligation, to pay the fair market value, as determined by the Board, for the Offered Shares in lieu of such price.

 

(c) Independent Counsel.  Stockholder acknowledges that this Agreement has been prepared on behalf of the Company by Goodwin Procter LLP, counsel to the Company, and that Goodwin Procter LLP does not represent, and is not acting on behalf of, Stockholder.  Stockholder has been provided with an opportunity to consult with Stockholder’s own counsel with respect to this Agreement.

 

(d) Benefit and Burden; Assigns.  This Agreement will inure to the benefit of, and be binding upon, the Company and its successors and assigns and Stockholder and Stockholder’s legal representatives, heirs, legatees, distributees, assigns and transferees, provided this will not limit any of Company’s rights hereunder, and whether or not any such person or entity will have become a party to this Agreement and have agreed in writing to join herein and be bound by the terms hereof.  Without limiting the foregoing, the Company may assign its rights under Sections 3 and 5, in whole or in part, to one or more persons or entities designated by the Board.

 

(e) Participation by Stockholder in Company Decisions.  Stockholder will not participate (whether as a director, stockholder or otherwise) in any decision of the Company whether to exercise its purchase rights or any other rights or remedies hereunder in relation to the Shares, except that, if Stockholder’s vote as a director or stockholder is required for valid corporate action she will vote in accordance with the decision of the majority of the other directors or stockholders, as the case may be.

 

(f) Withholding Taxes.  If, with respect to the transactions contemplated by this Agreement, including the 83(b) Election described in Section 14, the Company will be required to withhold amounts under applicable federal, state, local or other tax laws, the Company will be entitled, at its option, to (i) deduct and withhold such amounts from any cash payment to be made by the Company to Stockholder or to such other person or entity with respect to whom such withholding may arise, (ii) require Stockholder (or such other person or entity) to make payment to the Company in such amount as is required to be withheld, or (iii) retain and withhold such number of Shares as will have a fair market value, valued on the date on which such withholding requirement arises, equal to such amount as is required to be withheld.

 

(g) Headings; Construction.  The headings, subheadings and other captions in this Agreement are for convenience of reference only and will not be used in interpreting, construing or enforcing any of the provisions of this Agreement.  Except as may be expressly provided to the contrary, all Section references in this Agreement refer to the sections of this Agreement.  As used herein, “including” will mean “including but not limited to,” and “herein” and “hereunder” refer to this Agreement as a whole.

 

(h) Other Agreements and Restrictions.  This Agreement does not and will not be construed to limit or impair the rights of the Company under any other agreement or understanding with Stockholder, now in effect or arising hereafter.  The restrictions on transfer of the Shares set forth in this Agreement are in addition to any other restrictions on transfer of the Shares, including restrictions arising under contract and applicable securities laws.

 

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(i) Entire Agreement; Amendments.  This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and neither this Agreement nor any provision hereof may be modified, amended or terminated except by a written agreement signed by the parties hereto.  This Agreement replaces the Original Agreement.

 

(j) Governing Law; Jurisdiction.  This Agreement, and any claims relating to the relationship of the parties contemplated herein, whether or not arising directly under this Agreement, will be governed by the laws of the State of New Jersey without reference to its conflicts of laws provisions.  All litigation arising from or relating to this Agreement will be filed and prosecuted before any court of competent subject matter jurisdiction in the State of New Jersey.  Stockholder consents to the jurisdiction of such courts over Stockholder, stipulates to the convenience, efficiency and fairness of proceeding in such courts, and covenants not to allege or assert the inconvenience, inefficiency or unfairness of proceeding in such courts.

 

(k) Stockholder Undertaking.  Stockholder hereby agrees to take whatever additional action and execute whatever additional documents the Company may in its judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on Stockholder or the Shares pursuant to this Agreement.

 

(l) Waivers.  No waiver of any breach or default hereunder will be considered valid unless in writing, and no such waiver will be deemed a waiver of any subsequent breach or default of the same or similar nature.

 

(m) No Right to Employment.  Nothing in this Agreement will impose any obligation on the Company to hire, appoint or retain Stockholder as an employee, officer, director, consultant or otherwise, or to maintain any Business Relationship with Stockholder.

 

(n) Counterparts.  This Agreement may be executed in two counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 

[remainder of this page intentionally left blank]

 

10

 

IN WITNESS WHEREOF, this Amended and Restated Stock Purchase and Restriction Agreement has been executed as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gerald Wisler
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Gerald   Wisler
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
President   and CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
MICHAEL   DAVIDSON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Michael Davidson
    

 

CONSENT OF SPOUSE
 (if applicable)

 

By execution of this Agreement, the undersigned spouse of Stockholder agrees to be bound by the terms of this Agreement as to his or her interest, whether as community property or otherwise, if any, in the Shares purchased hereby.  The undersigned spouse acknowledges that he or she has been advised to obtain independent counsel to represent his or her interests with respect to this Agreement but that he or she have declined to do so and he or she hereby expressly waives his or her right to such independent counsel.

 

	
 
    	
 
    
	
 
    	
Stockholder’s   Spouse, if applicable
    

 

 

Exhibit A

 

STOCK POWER

 

FOR VALUE RECEIVED,                                          hereby sell(s), assign(s) and transfer(s) unto Omthera Pharmaceuticals, Inc. (the “Company”)                                      (                        ) shares of the Common Stock of the Company standing in                              name on the books of the Company represented by Certificate No.            herewith and do hereby irrevocably constitute and appoint                                              Attorney to transfer the said stock on the books of the Company with full power of substitution in the premises.

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Michael   Davidson
    

 

 

Exhibit B

 

ACKNOWLEDGEMENT AND STATEMENT OF DECISION
 REGARDING SECTION 83(b) ELECTION

 

The undersigned, a purchaser of shares of Common Stock of Omthera Pharmaceuticals, Inc. (the “Company”) and a party to a Stock Purchase and Restriction Agreement with the Company (the “Agreement”), hereby states as follows:

 

1.     I acknowledge receipt of a copy of the Agreement.  I have carefully reviewed the Agreement and in particular Section 14 of the Agreement.

 

2.     I either [check as applicable]

 

o (a)                                          have consulted, and have been fully advised by, my tax advisor, whose name and business address are:

 

regarding the federal, state, and local tax consequences of purchasing shares of Common Stock under the Agreement, and particularly regarding the advisability of making elections pursuant to Section 83(b) of the Internal Revenue Code of 1986, (the “Code”), and pursuant to any corresponding provisions of applicable state laws; or

 

o (b)                                          have knowingly chosen not to consult such a tax advisor.

 

3.     I have decided [check as applicable]:

 

o (a)                                          to make an election pursuant to Section 83(b) of the Code by filing an election form with the appropriate tax authorities within 30 days of the undersigned’s purchase under the Agreement, and am submitting to the Company, together with my executed Agreement, a copy of an executed election form; or

 

o (b)                                          not to make an election pursuant to Section 83(b) of the Code.

 

I acknowledge that, even if the Company files, or engages another party to file, a Section 83(b) election form with the Internal Revenue Service as an accommodation to me, I have the primary responsibility for timely filing any Section 83(b) election with the Internal Revenue Service and any state revenue authorities, and will hold the Company and its agents harmless from any failure to timely file a copy of the Section 83(b) election.

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Michael   Davidson
    

 

 

ELECTION UNDER SECTION 83(b)
 OF THE INTERNAL REVENUE CODE

 

I hereby elect, under Section 83(b) of the Internal Revenue Code, to include in gross income any excess of the fair market value of the property described in paragraph 2, disregarding any lapse restrictions on that property, over the amount I paid for such property, as described below.

 

1.     My name, address and taxpayer identification number are:

 

	
Name:
    	
Michael   Davidson
    
	
 
    	
 
    
	
Address:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Social   Security Number:
    	
 
    

 

2.              The property with respect to which this election is made consists of 2,000,000 shares of common stock (the “Shares”) of Omthera Pharmaceuticals, Inc. (the “Company”).

 

3.              The date on which the Shares were acquired was December       , 2008, and the taxable year to which this election relates is calendar year 2008.

 

4.              The Shares are subject to the following restrictions: the right of the Company to repurchase 75% of the Shares at the initial purchase price.  This right lapses based on my continued performance of services over time.

 

5.              The fair market value of the Shares at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) was $         per share.

 

6.              The amount paid for the Shares was $0.001 per share.

 

7.              A copy of this election has been furnished to the Company.  I am the person performing services and the transferee of the Shares.

 

	
 
    	
 
    	
 
    
	
Signature
    	
Date
    

 

 

The spouse of the taxpayer acknowledges the making of this election.

 

	
 
    	
 
    
	
 
    	
 
    
	
SignatureExhibit 10.15

 

OMTHERA PHARMACEUTICALS, INC.

NOTE AND WARRANT PURCHASE AGREEMENT

 

This  NOTE AND WARRANT PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of February 15, 2013, by and among  Omthera Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and each of the purchasers named on the Schedule of Purchasers attached hereto as Schedule I (the “Schedule of Purchasers”) (each individually a “Purchaser,” and collectively the “Purchasers”).

 

WHEREAS, the Company desires to issue and sell the Notes (as defined herein) and Warrants (as defined herein) to the Purchasers, and the Purchasers desire to purchase the Notes and Warrants from the Company.

 

NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

 

1.                                      DEFINITIONS.

 

1.1                               “Affiliate” of a party shall mean any other person or entity who, directly or indirectly, controls, is controlled by, or is under common control with such party, including without limitation any general partner, managing member, officer or director of such party or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such party.

 

1.2                               “Business Day” shall mean and include any day other than Saturdays, Sundays, or other days on which commercial banks in New York, New York are required or authorized to be closed.

 

1.3                               “Company Intellectual Property” shall mean all know how, patents, patent applications, inventions (whether or not patentable), discoveries, improvements, ideas, concepts, formulas, technical data, medical analysis, product development data, research data, trademarks, trademark applications, service marks, tradenames, copyrights, trade secrets, licenses, domain names, mask works, designs, information and proprietary rights and processes as are necessary to the conduct of the Company’s business as now conducted and as presently proposed to be conducted.

 

1.4                               “Investor Rights Agreement” shall mean the Amended and Restated Investors’ Rights Agreement, dated February 28, 2011, by and among the Company and the parties listed therein as Investors, as the same may be amended and/or restated from time to time.

 

1.5                               “Material Adverse Effect” shall mean any event, change, circumstance or effect that is, individually or in the aggregate, materially adverse to the financial condition, capitalization, properties, employees, assets (including intangible assets), liabilities, business, prospects, operations or results of operations of the Company.

 

1.6                               “Notes” shall mean the secured convertible promissory notes issued to the Purchasers pursuant to Section 2.1, in substantially the form attached hereto as Exhibit A.

 

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1.7                               “Requisite Holders” shall mean the holders of at least 72% of the outstanding principal amount of all Notes issued hereunder (or, at any time after the Notes have been fully repaid or converted into equity securities of the Company, the holders of at least 72% in interest of all equity securities then issued or issuable upon exercise of the Warrants issued hereunder); provided, that if the only Purchasers hereunder are New Enterprise Associates 13, L.P. (“NEA”) and Sofinnova Capital VI FCPA (“Sofinnova”) and/or their respective Affiliates, then “Requisite Holders” shall mean both NEA and Sofinnova.

 

1.8                               “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

1.9                               “Security Agreement” shall mean the Security Agreement, by and among the Company (as Borrower) and the Purchasers (as Secured Parties), to be entered into on the date hereof, in substantially the form attached hereto as Exhibit C.

 

1.10                        “Venture Debt Financing” shall mean up to $20,000,000 in secured convertible or nonconvertible debt issued by the Company to one or more commercial lenders on or before the first anniversary of the date hereof.

 

2.                                      LOANS; CLOSING.

 

2.1                               Loans; Warrants.

 

(a)                                 Loans.  At the Closing (as defined below), the Company shall issue and sell to each Purchaser, and each of the Purchasers shall purchase, severally and not jointly, Notes in the original principal amount set forth on Schedule I opposite each Purchaser’s name, pursuant to the terms and conditions hereof.  The purchase price for the Notes shall be paid by the Purchasers by wire transfer of immediately available funds.

 

(b)                                 Warrants.  At the Closing, the Company shall issue and sell to each Purchaser, and each of the Purchasers shall purchase, severally and not jointly, a warrant in substantially the form attached hereto as Exhibit B (each, a “Warrant” and collectively the “Warrants”), pursuant to the terms and conditions hereof.  Each such Warrant shall be exercisable for up to that number of shares of equity securities of the Company, as is equal to twenty-five percent (25%) of the principal amount of the Notes purchased by the Purchaser at the Closing, divided by the purchase price of the applicable equity securities as more fully described in the Warrants.  The Company and the Purchasers agree that: (i) neither the Purchasers nor any of their respective Affiliates has rendered any services to the Company in connection with this Agreement; (ii) the Warrants are not being issued as compensation; (iii) the Notes and the Warrants constitute an “investment unit” for purposes of Section 1273(c)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”); (iv) the fair market value of each Note authorized for issuance hereunder, if issued apart from the corresponding Warrant, is 99% of the principal amount of the Note, and the aggregate fair market value of each Warrant authorized for issuance hereunder, if issued apart from the corresponding Note, is 1% of the principal amount of such Note; (v) the Company believes that the amount of original issue discount that will accrue on the Notes will be de minimis and (vi) all tax returns and other information of each party relative to this Agreement and the Notes and Warrants issued pursuant hereto shall

 

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consistently reflect the matters agreed to in (i) through (v) above unless required by the Code or other applicable tax law.

 

(c)                                  Loan Closing.

 

(i)                                     Closing.  The closing of the sale by the Company of Notes and Warrants and the purchase by the Purchasers of Notes and Warrants (the “Closing”) shall take place on February 15, 2013, subject to the satisfaction or waiver of the conditions set forth in Article 5 hereof, at which time each Purchaser shall purchase a Note in the aggregate principal amount set forth opposite its name on Schedule I and a Warrant exercisable for equity securities of the Company as described in Section 2.1(b).  The Closing shall be held remotely via the exchange of documents and signatures.

 

(ii)                                  Transactions at Closing.  At the Closing, the Company shall issue and the Purchasers shall purchase, on a several and not joint basis, the Notes and the Warrants as provided in this Section 2.1.  At the Closing, the Company shall issue to each Purchaser (A) a Note representing the principal amount of the Note purchased by the Purchaser at the Closing and (B) a Warrant exercisable for equity securities of the Company as described in Section 2.1(b).

 

3.                                      REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  In connection with the transactions provided for herein, the Company hereby represents and warrants to the Purchasers as of the date hereof as follows:

 

3.1                               Organization, Qualifications and Corporate Power.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is duly licensed or qualified to transact business as a foreign corporation and is in good standing in each jurisdiction in which the nature of the business transacted by it or the character of the properties owned or leased by it requires such licensing or qualification, except where the failure to be so licensed or qualified would not have a Material Adverse Effect.  The Company has the corporate power and authority to own and hold its properties and to carry on its business as now conducted, to execute, deliver and perform this Agreement, the Security Agreement, the Notes and the Warrants, and to issue, sell and deliver the Notes and the Warrants to the Purchasers.

 

3.2                               Authorization of Agreements, Compliance with Laws.  The execution and delivery by the Company of this Agreement, the Security Agreement, the Notes and the Warrants and the performance by the Company of its obligations hereunder and thereunder, and the issuance, sale and delivery of the Notes and the Warrants to the Purchasers have been duly authorized by all requisite corporate action and will not violate any provision of law, any order of any court or other governmental authority, the Company’s certificate of incorporation, or the Bylaws of the Company, and will not result in a violation of any provision of any indenture, agreement or other instrument to which the Company, or any of its properties or assets is bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or result in the creation or imposition of any lien, charge, restriction, encumbrance, or, to the Company’s knowledge, claim of any nature whatsoever upon any of the properties or assets of the Company, the result of any

 

3

 

of which would have a Material Adverse Effect.  Without limiting the foregoing, the issuance and sale of the Notes and the Warrants hereunder will not violate any pre-emptive rights or rights of first refusal granted by the Company that will not have been validly complied with or waived at or prior to the Closing.  The Company has complied in all material respects with all laws, rules, regulations, judicial orders and other governmental obligations applicable to the Company.

 

3.3                               Validity.  This Agreement has been duly executed and delivered by the Company and constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.  The Security Agreement, the Notes and the Warrants, when executed and delivered in accordance with this Agreement, will constitute the valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms.

 

3.4                               OFAC Compliance.  None of the Company or any of its directors, officers or employees is an OFAC Sanctioned Person.  The Company and its directors, officers and employees are in compliance with, and have not previously violated, the USA Patriot Act of 2001, to the extent applicable to the Company and such persons, and all other applicable United States anti-money laundering laws.  None of (i) the payment for the Notes and the Warrants, (ii) the use of the proceeds, (iii) the execution, delivery and performance of this Agreement or the agreements contemplated hereby, or (iv) the consummation of any transaction contemplated hereby or thereby, or the fulfillment of the terms hereof, will result in a violation by anyone, including without limitation the Purchasers, of any of the OFAC Sanctions or of any anti-money laundering laws of the United States or any other jurisdiction.

 

For the purposes of this Section 3.4:

 

“OFAC Sanctions” means any sanctions program administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) under authority delegated to the Secretary of the Treasury (the “Secretary”) by the President of the United States or provided to the Secretary by statute, and any order or license issued by, or under authority delegated by, the President or provided to the Secretary by statute in connection with a sanctions program thus administered by OFAC. For ease of reference, and not by way of limitation, OFAC Sanctions programs are described on OFAC’s website at http://www.treas.gov/offices/enforcement/ofac/.

 

“OFAC Sanctioned Person” means any government, country, corporation or other entity, group or individual with whom or which the OFAC Sanctions prohibit a U.S. Person from engaging in transactions, and includes without limitation any individual or corporation or other entity that appears on the current OFAC list of Specially Designated Nationals and Blocked Persons (the “SDN List”).  For ease of reference, and not by way of limitation, OFAC Sanctioned Persons other than governments and countries can be found on the SDN List on OFAC’s website at http://www.treas.gov/offices/enforcement/ofac/sdn/.

 

“U.S. Person” means any U.S. citizen, permanent resident alien, entity organized under the laws of the United States (including foreign branches), or any person (individual or entity) in the United States, and, with respect to the Cuban Assets Control Regulations, also includes any corporation or other entity that is owned or controlled by one of the foregoing, without regard to where it is organized or doing business.

 

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3.5                               Foreign Corrupt Practices Act.  Neither the Company, nor its subsidiaries nor any of their respective directors, officers or employees have made, directly or indirectly, any payment or promise to pay, or gift or promise to give or authorized such a promise or gift, of any money or anything of value, directly or indirectly, to (i) any foreign official (as such term is defined in the U.S. Foreign Corrupt Practices Act (the “FCPA”)) for the purpose of influencing any official act or decision of such official or inducing him or her to use his or her influence to affect any act or decision of a governmental entity or (ii) any foreign political party or official thereof or candidate for foreign political office for the purpose of influencing any official act or decision of such party, official or candidate or inducing such party, official or candidate to use his, her or its influence to affect any act or decision of a foreign governmental entity, in the case of both (i) and (ii) above in order to assist the Company or any of its affiliates to obtain or retain business for, or direct business to the Company or any of its affiliates, as applicable.  None of the Company or its directors, officers or employees has made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment of funds or received or retained any funds in violation of any law

 

3.6                               Clinical Procedures.  The Company is conducting (or is causing to be conducted), and has conducted (or caused to be conducted) all aspects of its research and development activities related to the products that it is developing (the “Products”), including, without limitation, the preclinical and clinical tests and studies of such Products, in compliance in all material respects with experimental protocols, procedures and controls pursuant to accepted professional scientific standards and applicable local, state and federal laws, rules, regulations and guidances, including, but not limited to, the principles of Good Clinical Practice, the Federal Food, Drug and Cosmetic Act and implementing regulations at 21 C.F.R. Parts 50, 54, 56, 58 and 312, and has made all reports, filings and notifications required thereunder, including, but not limited to, the reports required by 21 C.F.R. § 312.32.  To the Company’s knowledge after reasonable investigation, research involving human subjects conducted by or for the Company has (i) been conducted in compliance in all material respects with all applicable federal, state, and foreign statutes and regulations governing the protection of human subjects and (ii) not involved any investigator who has been disqualified as a clinical investigator by the FDA or any other agency.  To the Company’s knowledge after reasonable investigation, the Company has conducted its clinical investigations in accordance in all material respects with Institutional Review Board approvals and requirements, if applicable, and, to its knowledge has obtained informed patient consent where required by the applicable requirements of 21 C.F.R. Part 50 and any other requirements of the applicable jurisdiction, except where the failure to obtain such consent would not materially and adversely affect the Company.  To the Company’s knowledge, the Company is not the subject of any investigation by the FDA or any other agency.  Neither the FDA nor any other regulatory authority has issued any clinical hold orders, warning letters, notices of violation, or similar correspondence or communications with respect to such tests, studies or Products.

 

3.7                               Private Offering.  Based on the representations of the Purchasers set forth in Article 4 below, the offer, sale and issuance of the Notes and the Warrants in accordance with the terms of this Agreement are exempt from the registration requirements of Section 5 of the Securities Act and the registration requirements of applicable state securities laws.  Neither the Company nor anyone acting on its behalf has offered the Notes, the Warrants or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached

 

5

 

or negotiated in respect thereof with, any person through any form of general solicitation or general advertising.  Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes and the Warrants to the registration requirements of Section 5 of the Securities Act, or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

 

3.8                               Governmental Consents.  No consent, approval, order, or authorization of or registration, qualification, designation, declaration, or filing with, any federal, state, or local governmental authority is required on the part of the Company in order to enable the Company to execute, deliver, and perform its obligations under this Agreement, the Security Agreement, the Notes and the Warrants except for such qualifications or filings under applicable securities laws as may be required in connection with the transactions contemplated by this Agreement.  All such qualifications and filings shall, in the case of qualifications, be effective on the Closing and shall, in the case of filings, be made within the time prescribed by applicable law.

 

3.9                               Litigation.  There is no material action, claim, suit, proceeding or investigation pending or, to the Company’s knowledge, threatened against the Company or its assets, except as described on Schedule 3.8 hereto.  To the Company’s knowledge, there is no legitimate basis for or threat of an action, claim, suit, or proceeding, or governmental inquiry or investigation, against the Company that could reasonably be expected to have a Material Adverse Effect.  The Company is not a party to or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality.  There is no action, suit or proceeding initiated by the Company currently pending or which the Company currently intends to initiate.

 

3.10                        IP Non-Infringement.  No infringement, misuse or misappropriation of the Company Intellectual Property by a third party has come to the Company’s attention.  To the Company’s knowledge, the Company has taken all steps reasonably necessary to ensure that it has not violated, interfered with, infringed upon, misappropriated or otherwise come into conflict with any intellectual property right of any person or entity.  To the Company’s knowledge, no product or service marketed or sold (or proposed to be marketed or sold) by the Company violates, interferes with, misappropriates or otherwise comes into conflict with, or will violate, interfere with, misappropriate or otherwise come into conflict with, any license of any intellectual property rights of any other person or entity.  The Company has not received any communications alleging that the Company has violated, interfered with, infringed upon, misappropriated or otherwise come into conflict with or, by conducting its business, would violate, interfere with, infringe upon, misappropriate or otherwise come into conflict with any of the patents, trademarks, service marks, tradenames, copyrights, trade secrets, mask works or other proprietary rights or processes of any other person or entity.

 

3.11                        Complete Disclosure.  The Company has made available to the Purchasers all the information that the Purchasers have requested in making their decision to acquire the Notes and the Warrants.  To the Company’s knowledge, neither this Agreement nor any other documents or certificates furnished or to be furnished in connection herewith, when taken as a whole, contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.

 

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4.                                      REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS.

 

In connection with the transactions provided for herein, each Purchaser hereby represents and warrants to the Company as follows:

 

4.1                               Authorization.  Such Purchaser is validly existing and has the requisite power and authority to execute and deliver this Agreement.  This Agreement has been duly executed and delivered by such Purchaser, and constitutes the valid and legally binding obligation of such Purchaser, enforceable in accordance with its terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and (b) laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

4.2                               Purchase Entirely for Own Account.  Such Purchaser acknowledges that this Agreement is made with such Purchaser in reliance upon such Purchaser’s representation to the Company that the Notes and the Warrants, together with any and all securities issuable upon conversion of the Notes or exercise of the Warrants (collectively, the “Securities”), will be acquired for investment for such Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that such Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same.  By executing this Agreement, such Purchaser further represents that such Purchaser does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Notes or Warrants.

 

4.3                               Disclosure of Information.  Such Purchaser acknowledges that it has received all the information it considers necessary or appropriate for deciding whether to acquire the Notes and the Warrants.  Such Purchaser further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Notes and Warrants.

 

4.4                               Investment Experience.  Such Purchaser is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and it or its investment adviser has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities.

 

4.5                               Accredited Investor.  Such Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act and has not been organized solely for the purpose of acquiring any of the Securities.

 

4.6                               Restricted Securities.  Such Purchaser understands that the Securities are and will be characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction or transactions not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Act only in certain limited circumstances.  Such Purchaser represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

 

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4.7                               Legends.  It is understood that the Securities may bear the legend in substantially the form set forth below, as well as other legends:

 

“THIS SECURITY AND ANY SECURITIES ISSUABLE UPON THE CONVERSION OR EXERCISE OF THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THIS SECURITY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.”

 

5.                                      CONDITIONS TO CLOSING.

 

The respective and several obligations of each Purchaser to purchase and pay for the Notes and Warrants to be purchased by it at the Closing are subject to the fulfillment or waiver, on or before the Closing, of each of the following conditions:

 

5.1                               Representations and Warranties.  Each of the representations and warranties of the Company set forth in Article III hereof shall be true in all material respects on the date of the Closing, except that any such representations and warranties shall be true and correct in all respects where such representation and warranty is qualified with respect to materiality.

 

5.2                               Performance by the Company.  The Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing and shall have obtained all approvals, consents and qualifications necessary to complete the purchase and sale and exchange described herein and shall have delivered copies of such consents and approvals to the Purchasers.

 

5.3                               Delivery of Notes.  The Company shall have executed and delivered to each Purchaser a Note, in the aggregate principal amount set forth opposite the Purchaser’s name on the Schedule of Purchasers.

 

5.4                               Delivery of Warrants.  The Company shall have executed and delivered to each Purchaser a Warrant exercisable for equity securities of the Company as described in Section 2.1(b).

 

5.5                               Security Agreement.  The Company (as Borrower) and each of the Purchasers other than the Purchaser relying on such condition (as Secured Parties) shall have entered into the Security Agreement.

 

5.6                               Financing Statement.  The Company shall have filed a UCC-1 financing statement with the Secretary of State of the State of Delaware in connection with the security interest granted in favor of the Purchasers under the Security Agreement.

 

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6.                                      MISCELLANEOUS.

 

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

 

6.2                               Governing Law.  This Agreement, the Security Agreement, the Notes and the Warrants shall be governed by and construed under the laws of the State of Delaware, without regard to conflict of law principles.

 

6.3                               Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Signatures delivered by facsimile or electronic transmission shall be as effective as original signatures.

 

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

 

6.5                               Notices.  All notices and other communications given or made pursuant to this Agreement, the Security Agreement, the Notes or the Warrants shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not so confirmed, then on the next Business Day, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) Business Day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the respective parties at the following addresses (or at such other addresses as shall be specified by notice given in accordance with this Section 6.5):

 

If to the Company:

 

Omthera Pharmaceuticals, Inc.
 707 State Road

Princeton, NJ 08540
 Attention:  Chief Financial Officer

 

With a copy (which shall not constitute notice) to:

 

Goodwin Procter LLP

53 State Street

Boston, MA 02109
 Attention:  Kingsley L. Taft

Facsimile:  617-523-1231

 

If to Purchasers:

 

9

 

At the respective addresses shown on the Schedule of Purchasers.

 

6.6                               Entire Agreement. This Agreement, the Security Agreement, the Notes, the Warrants and the other documents delivered pursuant hereto or thereto constitute the full and entire understanding and agreement between and among the parties with regard to the subjects hereof and thereof.  The Company’s agreements with each of the Purchasers are separate agreements, and the sales of the Notes and Warrants to each of the Purchasers are separate sales.

 

6.7                               Amendment; Waiver; Exercise of Remedies.  This Agreement, the Security Agreement, the Notes and the Warrants may be amended and any provision hereof or thereof may be waived as to all Purchasers only with the written consent of the Company and the Requisite Holders; provided that in the event any such amendment or waiver, on its face, adversely affects any individual Purchaser in a manner different from and disproportionate to the adverse effect on the other Purchasers, the written consent of such affected Purchaser shall also be required.

 

6.8                               Compliance with Applicable Law; Further Assurances.  Notwithstanding anything to the contrary in this Agreement, the Security Agreement, the Notes or the Warrants, in the event the compliance with any term or provision hereof or thereof would constitute or otherwise result in a violation of any applicable law, rule, regulation or judicial order (“Applicable Law”), such compliance shall be delayed, and/or the Company and the Purchasers shall take such other action as they may deem reasonably appropriate in order to comply with Applicable Law while giving effect, as nearly as practicable, to the intent of the parties hereto.  The Purchasers and the Company shall use their commercially reasonable efforts to cooperate with one another in the filing or submission of any and all notices, reports and other documents that may be required to be filed with any governmental authority or other third party in order to comply with Applicable Law; and, in addition, shall execute and deliver such subordination agreements and other documents reasonably acceptable to the Purchasers as may be required by a commercial lender in connection with any Venture Debt Financing.

 

6.9                               Exculpation Among Purchasers.  Each Purchaser acknowledges that it is not relying upon any person, firm, corporation or stockholder, other than the Company and its officers and directors in their capacities as such, in making its investment or decision to invest in the Company.  Each Purchaser agrees that no other Purchaser nor the respective controlling persons, officers, directors, partners, agents, shareholders or employees of any other Purchaser shall be liable for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase and sale of the Notes and the Warrants.

 

6.10                        Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

6.11                        Expense Reimbursement.  The Company shall reimburse the Purchasers for all reasonable fees and expenses incurred by the Purchasers in connection with the transactions contemplated hereby, including the legal and other expenses incurred by counsel for

 

10

 

the Purchasers in connection with the preparation and negotiation of this Agreement, the Notes and the Warrants, in an amount not to exceed $50,000 in the aggregate.

 

6.12                        Waiver of Right of First Offer.  The undersigned Purchasers, constituting the holders of a majority of the outstanding Registrable Securities (as defined in the Investor Rights Agreement) hereby waive on behalf of themselves and all other Investors (as defined in the Investor Rights Agreement), such waiver to apply to all such Investors in the same fashion, the Investors’ right of first offer set forth in Section 4.1 of the Investor Rights Agreement, including any and all notice rights associated with the right of first offer, with respect to the issuance of the Notes and Warrants, and any securities issuable upon conversion of the Notes or exercise of the Warrants.

 

6.13                        Market Stand-Off; Transfer Restrictions.  Each of the undersigned Purchasers agrees that any and all Securities issued or issuable to such Purchaser shall be subject to, and such Purchaser shall be bound by, the “market stand-off” provisions under Section 2.11 of the Investor Rights Agreement and the transfer restrictions under Section 2.12 of the Investor Rights Agreement as and to the same extent as such provisions and restrictions are applicable to Investors and Registrable Securities under the Investor Rights Agreement.

 

6.14                        Waiver of Conflicts.  Each party to this Agreement acknowledges that Goodwin Procter LLP, counsel for the Company, has in the past performed and may continue to perform legal services for certain of the Purchasers in matters unrelated to the transactions described in this Agreement, including the representation of such Purchasers in equity and debt financings and other matters.  Accordingly, each party to this Agreement hereby (a) acknowledges that it has had an opportunity to ask for information relevant to this disclosure; and (ii) gives its informed consent to Goodwin Procter LLP’s representation of certain of the Purchasers in such unrelated matters and to Goodwin Procter LLP’s representation of the Company in connection with this Agreement and the transactions contemplated hereby.

 

[Signature pages follow]

 

11

 

IN WITNESS WHEREOF, the parties have executed this Note and Warrant Purchase Agreement as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Gerald Wisler
    
	
 
    	
Name:
    	
Gerald   Wisler
    
	
 
    	
Title:
    	
President   and Chief Executive Officer
    

 

[SIGNATURE PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT]

 

 

	
PURCHASERS:
    	
SOFINNOVA   CAPITAL VI FCPR  
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Graziano Seghezzi 
    
	
 
    	
Name:
    	
Graziano   Seghezzi
    
	
 
    	
Title:
    	
Partner   
    

 

[SIGNATURE PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT]

 

 

	
PURCHASERS:
    	
NEW   ENTERPRISE ASSOCIATES 13, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
NEA   Partners 13, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
NEA   13 GP, LTD
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis S. Citron
    
	
 
    	
Name:
    	
Louis   S. Citron
    
	
 
    	
Title:
    	
Chief   Legal Officer 
    
				

 

[SIGNATURE PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT]

 

 

	
PURCHASERS:
    	
T.   ROWE PRICE ASSOCIATES, INC., as investment adviser on behalf of the   funds and accounts set forth in Schedule I hereto, and listed below,   severally and not jointly
    
	
 
    	
 
    
	
 
    	
T.   ROWE PRICE HEALTH SCIENCES FUND, INC.
    
	
 
    	
T.   ROWE PRICE HEALTH SCIENCES PORTFOLIO
    
	
 
    	
TD   MUTUAL FUNDS — TD HEALTH SCIENCES FUND
    
	
 
    	
VALIC   COMPANY I — HEALTH SCIENCES FUND
    
	
 
    	
JOHN   HANCOCK VARIABLE INSURANCE TRUST — HEALTH SCIENCES TRUST
    
	
 
    	
JOHN   HANCOCK FUNDS II — HEALTH SCIENCES FUND
    
	
 
    	
T.   ROWE PRICE NEW HORIZONS FUND, INC.
    
	
 
    	
T.   ROWE PRICE NEW HORIZONS TRUST
    
	
 
    	
T.   ROWE PRICE U.S. EQUITIES TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Taymour Tamaddon
    
	
 
    	
Name:
    	
Taymour   Tamaddon
    
	
 
    	
Title:
    	
Vice   President 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Francisco Alonso
    
	
 
    	
Name:
    	
Francisco   Alonso
    
	
 
    	
Title:
    	
Vice   President 
    

 

[SIGNATURE PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT]

 

 

	
PURCHASERS:
    	
JAWZ   II LLC
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   James M. Wisler
    
	
 
    	
Name:   
    	
James   M. Wisler
    
	
 
    	
Title:
    	
Manager
    

 

[SIGNATURE PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT]

 

 

	
PURCHASERS:
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Gerald Wisler
    
	
 
    	
Gerald   L. Wisler
    

 

[SIGNATURE PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT]

 

 

SCHEDULE 1

 

SCHEDULE OF PURCHASERS

 

	
Name and Address of Purchaser
    	
 
    	
Principal Amount of Note
    	
 
    
	
Sofinnova Capital VI FCPR

17 rue de Serene

Paris   75008

France
    	
 
    	
$
    	
5,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
New   Enterprise Associates 13, L.P.

1954   Greenspring Drive, Suite 600

Timonium,   Maryland 21093

USA
    	
 
    	
$
    	
5,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
T.   Rowe Price Health Sciences Fund, Inc. (Lobstercrew & Co.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202

Telephone:   (410) 345-2090

Facsimile:   (410) 345-6575

E-mail:   Andrew_Baek@troweprice.com
    	
 
    	
$
    	
2,379,632
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TD   Mutual Funds - TD Health Sciences Fund (Mac & Co.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202

Telephone:   (410) 345-2090

Facsimile:   (410) 345-6575

E-mail:   Andrew_Baek@troweprice.com
    	
 
    	
$
    	
98,480
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
VALIC   Company I - Health Sciences Fund (Squidrig & Co.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202
    	
 
    	
$
    	
146,408
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
T.   Rowe Price Health Sciences Portfolio (HorizonBeach & Co.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202

Telephone:   (410) 345-2090

Facsimile:   (410) 345-6575

E-mail:   Andrew_Baek@troweprice.com
    	
 
    	
$
    	
81,092
    	
 
    

 

 

	
John   Hancock Variable Insurance Trust - Health Sciences Trust (Lamppost &   Co.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202

Telephone:   (410) 345-2090

Facsimile:   (410) 345-6575

E-mail:   Andrew_Baek@troweprice.com
    	
 
    	
$
    	
83,324
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
John   Hancock Funds II - Health Sciences Fund (ANNUITANT & CO.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202

Telephone:   (410) 345-2090

Facsimile:   (410) 345-6575

E-mail:   Andrew_Baek@troweprice.com
    	
 
    	
$
    	
211,064
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
T.   Rowe Price New Horizons Fund, Inc. (BRIDGE & CO.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202

Telephone:   (410) 345-2090

Facsimile:   (410) 345-6575

E-mail:   Andrew_Baek@troweprice.com
    	
 
    	
$
    	
1,830,236
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
T.   Rowe Price New Horizons Trust (AMIDSPEED & CO.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202
    	
 
    	
$
    	
165,356
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
T.   Rowe Price U.S. Equities Trust (ICECOLD & CO.)

c/o   T. Rowe Price Associates, Inc.

Attn:   Andrew Baek, Vice President and Senior Legal Counsel

100   East Pratt Street

Baltimore,   MD  21202

Telephone:   (410) 345-2090

Facsimile:   (410) 345-6575

E-mail:   Andrew_Baek@troweprice.com
    	
 
    	
$
    	
4,408
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
JAWZ   II LLC

8400   Park Meadows Drive

Lone   Tree, Colorado 80124

USA
    	
 
    	
$
    	
2,500,000
    	
 
    

 

 

	
Gerald   L. Wisler

c/o   Omthera Pharmaceuticals, Inc.

707   State Road

Princeton,   NJ  08540

USA
    	
 
    	
$
    	
100,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TOTAL:
    	
 
    	
$
    	
17,600,000.00
    	
 
    

 

 

Exhibit A

 

Form of Note

 

 

Exhibit B

 

Form of Warrant

 

 

Exhibit C

 

Security Agreement

 

 

Schedule 3.8

 

One of the two patents covering Epanova’s time-release coating is undergoing reexamination by the U.S. Patent and Trademark Office.  In Europe, the patent covering the composition of Epanova’s gelatin capsule was opposed after grant, but successfully upheld during Opposition Proceedings. One of the three Opponents has filed a Notice of Appeal seeking to overturn the judgments previously rendered in favor of patentability by both the Examining Division and the Opposition Division of the European Patent Office. A second Opponent has the right to file a Notice of Appeal until February 14, 2013.

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