Document:

Exhibit 4.9

 

STOCKHOLDERS’ VOTING AGREEMENT

 

STOCKHOLDERS’ VOTING AGREEMENT made this 22nd day of December, 2005 by and among (i) Supernus Pharmaceuticals, Inc., a Delaware corporation (the “Company”), (ii) holders of Common Stock or options to acquire Common Stock whose names are set forth under the heading “Holders” on Exhibit A hereto and each person (other than an Investor) who shall, after the date hereof, acquire shares of Common Stock and join in and become a party to this Agreement by executing and delivering to the Company an Instrument of Accession in the form of Exhibit B hereto (the persons described in this clause (ii) being referred to collectively as the “Holders” and singularly as a “Holder”) and (iii) those persons whose names are set forth under the heading “Investors” on Exhibit A hereto and each person who shall, after the date hereof, acquire shares of Series A Preferred Stock and join in and become a party to this Agreement by executing and delivering to the Company an Instrument of Accession in the form of Exhibit B hereto (the persons described in this clause (iii) being referred to collectively as the “Investors”).

 

WHEREAS, the Investors are purchasing from the Company shares of its Series A Convertible Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) pursuant to the terms of a certain Series A Convertible Preferred Stock Agreement (the “Purchase Agreement”) dated as of the date hereof among the Company and the Investors; and

 

WHEREAS, it is a condition precedent to the closing of the purchase of Series A Preferred Stock pursuant to the Purchase Agreement that this Agreement be entered into by the parties hereto.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and the consummation of the sale and purchase of shares of capital stock of the Company pursuant to the Purchase Agreement, and for other valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1                                 Common Definitions. Unless otherwise defined in this Agreement, capitalized terms used in this Agreement that are defined in the Purchase Agreement shall have the meanings assigned to them in the Purchase Agreement, and the rules of construction and documentary convention set forth in the Purchase Agreement shall apply to this Agreement.

 

1.2                                 Certain Defined Terms. As used in this Agreement, the following terms shall have the following respective meanings:

 

“Affiliate” means, with respect to any Person, any other Person who, directly or indirectly, controls, is controlled by or is under common control with such Person.

 

“Conversion Shares” shall mean shares of Common Stock issued or issuable upon conversion of the shares of Series A Preferred Stock. For the purposes of this Agreement, all of

 

 

the Conversion Shares which any Investor has the right to acquire from the Company upon the conversion of any shares of Series A Preferred Stock then owned by such Investor shall be deemed to be Conversion Shares then owned by such Investor.

 

“OrbiMed Entities” shall mean Caduceus Private Investments II, LP, Caduceus Private Investments II (QP), LP, and UBS Juniper Crossover Fund, LLC.

 

“Person” means an individual, corporation, partnership, joint venture, trust, or unincorporated organization, or a government or any agency or political subdivision thereof.

 

“Stock” shall mean and include all shares of capital stock of the Company owned by a Stockholder, whether presently held or hereafter acquired, including, without limitation, shares of Common Stock and preferred stock of the Company, and all other securities of the Company which may be issued upon conversion or exercise of, in exchange for, or in respect of, shares of Common Stock or preferred stock. For the purposes of this Agreement, all of the shares of Stock which such Stockholder has the right to acquire from the Company upon the conversion, exercise or exchange of any of the securities of the Company then owned by such Stockholder shall be deemed to be Stock then owned by such Stockholder.

 

“Stockholders” shall mean and include the Investors and the Holders.

 

ARTICLE II

 

THE BOARD OF DIRECTORS; ELECTIONS

 

2.1                                 Number of Directors. Subject to the provisions of the certificate of incorporation of the Company, the number of directors constituting the entire Board of Directors of the Company shall be five (5), unless otherwise approved by a majority of the members of the Board of Directors, including a majority of the directors designated by holders of the Series A Preferred Stock.

 

2.2                                 Election of Directors. At any time at which stockholders of the Company will have the right to, or will vote for or consent in writing to, the election of directors of the Company, then, and in each such event, the Stockholders shall vote all their respective shares of Common Stock and/or Series A Preferred Stock, as applicable, to cause and maintain the election to the Board of Directors the following persons:

 

(a)                                            for so long as NEA Partners 11, L.P. (“NEA”) owns any Stock, two (2) designated representatives of NEA (the “NEA Directors”), whom shall be initially M. James Barrett, Ph.D. and Charles W. Newhall, III, which NEA Directors shall be directors elected by the holders of the Series A Preferred Stock, voting as a separate class;

 

(b)                                           for so long as any of the OrbiMed Entities (“OrbiMed”) owns any Stock, one (1) designated representative of OrbiMed (the “OrbiMed Director”), who shall be initially Michael B. Sheffery, which OrbiMed Director shall be a director elected by the holders of the Series A Preferred Stock, voting as a separate class;

 

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(c)                                            for so long as any shares of Common Stock are outstanding, one (1) independent person, to be designated by holders of the outstanding shares of Common Stock and acceptable to all other members of the Board of Directors of the Company (the “Independent Director”), which Independent Director shall be a director elected by the holders of the Common Stock, voting as a separate class; and

 

(d)                                           for so long as any shares of Common Stock are outstanding, the Chief Executive Officer of the Company (the “CEO Director”), who shall initially be Jack Khattar, which CEO Director shall be a director elected by the holders of the Common Stock, voting as a separate class; provided, that, if for any reason the CEO Director shall cease to serve as the Chief Executive Officer of the Company, each of the Stockholders shall promptly vote their respective Stock (i) to remove him from the Board of Directors if he has not resigned from such position and (ii) to elect the person who replaces him or her as Chief Executive Officer of the Company as the new CEO Director.

 

2.3                                 Vacancies and Removal.

 

(a)                                            At any time at which stockholders of the Company will have the right to, or will vote for or consent in writing to, remove any director from the Board of Directors of the Company, then, and in each such event, the Stockholders shall not vote any of their respective shares of Stock in favor of the removal of any director who shall have been designated pursuant to Section 2.2, unless the Person or Persons entitled to designate such director shall have consented to such removal in writing; provided that, if the Person or Persons entitled to designate any director pursuant to Section 2.2 shall request in writing the removal, with or without cause, of such director, the Stockholders shall vote all of their respective shares of Stock in favor of such removal.

 

(b)                                           If, as a result of death, disability, retirement, resignation, removal (with or without cause) or otherwise, there shall exist or occur any vacancy on the Board of Directors of the Company: (i) the Person or Persons entitled under Section 2.2 to designate such director whose death, disability, retirement, resignation or removal resulted in such vacancy, subject to the provisions of Section 2.2, may designate another individual to fill such vacancy and serve as a director on the Board of Directors; and (ii) subject to Section 2.2, the Stockholders then entitled to vote for the election of directors to the Board of Directors of the Company shall vote all of their respective shares of Stock in favor of election to the Board of Directors of such individual designated to sub-clause (i) above.

 

2.4                                 Observer Rights. For so long as the OrbiMed Entities own not less than fifty percent (50%) of the shares of Series A Preferred Stock the OrbiMed Entities purchases under the Purchase Agreement (or an equivalent amount of Common Stock issued upon conversion thereof) (appropriately adjusted to reflect any stock split, stock dividend, combination, reorganization, recapitalization, reclassification or other similar event involving a change in the capitalization of the Company), the OrbiMed Entities may, with notice to the Company, designate one individual who shall be reasonably satisfactory to the Board of Directors of the Company to attend all meetings of the Board of Directors of the Company in a non-voting observer capacity. Such observer shall have the right to receive notice of all meetings of the Board of Directors of the Company and to receive all other information made available to the directors, except such information as the Board of Directors of the Company reasonably believes

 

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may be injurious or disruptive to the business and affairs of the Board of Directors of the Company or the Company. Notwithstanding the foregoing, the failure of such observer to be given notice of a meeting of the Board of Directors of the Company or to attend such meeting shall not in any way affect the authority of the Board of Directors of the Company to have or to adopt resolutions at such meeting or the legitimacy of any actions taken by the Board at such meeting. Such observer may participate in discussions of matters brought at each meeting of the Board of Directors of the Company, provided, that nothing in this Section 2.4 shall be construed as to confer any other function, position or title to such observer. Notwithstanding the foregoing, in the event that a majority of the members of the Board of Directors of the Company reasonably determines that such observer’s attendance at such meeting or access to documents or information in connection therewith could adversely affect the attorney-client privilege between the Company and its counsel, result in disclosure of trade secrets or a conflict of interest, or that the institution that such observer represents is a competitor of the Company, then a majority of the members of the Board of Directors of the Company shall have the discretion to exclude such observer from any meeting, or portion thereof, and, in addition, the Company shall not send any materials relating to such meeting, or portion thereof, to any such observer.

 

2.5                                 Attendance at Meetings. Each of the Stockholders shall attend, in person or by proxy to the extent reasonably practicable, and vote its shares of the capital stock of the Company in accordance with this Agreement at, each annual meeting of the stockholders of the Company and each special meeting of the stockholders of the Company involving the election of directors of the Company.

 

2.6                                 Committees of the Board of Directors. The Board of Directors of the Company shall establish (a) a Compensation Committee (which shall be charged with administering all equity compensation plans and arrangements and making all recommendations to the Board of Directors of the Company regarding all management compensation levels and arrangements), and (b) such other committees as the Board of Directors shall deem necessary or convenient from time to time. Except to the extent otherwise required by applicable law or regulation, (i) the Compensation Committee shall consist of no more than three (3) members, one of whom shall be the NEA Director who shall chair the Compensation Committee and (ii) each other committee shall consist of a majority of members who are non-employee directors, including at least one NEA Director. The Board of Directors of the Company shall have the power and authority to accept or reject any recommendation of the Compensation Committee but shall not be authorized to approve a change in an employee’s compensation level or arrangement if such change was not recommended by the Compensation Committee.

 

ARTICLE III

 

MISCELLANEOUS

 

3.1                                 Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been given when delivered or three (3) days after mailing by first class, registered or certified mail (air mail if to or from outside the United States), return receipt requested, postage prepaid, if to each Holder or Investor at his or its respective address set forth on Exhibit A hereto or on the Instrument of Accession pursuant to which he or it became a party to this Agreement, and if to the Investors, at their respective addresses set forth on Exhibit A

 

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hereto or to such other address as the addressee shall have furnished to the other parties hereto in the manner prescribed by this Section 3.1.

 

3.2                                 Transfers, Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, personal representatives, successors and permitted assigns and shall be binding upon any person, firm, company or other entity to whom any shares of Stock are transferred (even if in violation of the provisions of this Agreement) and the heirs, executors, personal representatives, successors and assigns of such person, firm, company or other entity and as a condition to such transfer, each such transferee shall execute and deliver an Instrument of Accession in the form of Exhibit B agreeing to be bound by the provisions of this Agreement. No provision of this Agreement shall be construed to provide a benefit to any party hereto who no longer owns any Stock.

 

3.3                                 Termination.

 

(a)                                            This Agreement shall terminate (i) upon the completion of a fully underwritten, firm commitment public offering pursuant to an effective registration under the Securities Act covering the offering or sale by the Company of its Common Stock in which (x) the gross proceeds received by the Company shall be at least $35 million, and (y) the price paid by the public for such shares shall be at least three (3) times the original purchase price per share paid to the Company for the Series A Preferred Stock pursuant to the Purchase Agreement (appropriately adjusted to reflect any subdivision or combination of the Common Stock) or (ii) immediately prior to the consummation of any consolidation or merger of the Company into or with any other entity or entities (except a consolidation or merger with or into a wholly-owned subsidiary of the Company, or except a consolidation or a merger in which the Company’s voting shares outstanding immediately prior to such transaction continue to represent a majority by voting power of the voting shares of the corporation outstanding immediately following the transaction).

 

(b)                                           Upon the termination of this Agreement under this Section 3.3, except as otherwise set forth herein, the restrictions and obligations set forth herein shall terminate and be of no further effect, except that such termination shall not affect rights perfected or obligations incurred under this Agreement prior to such termination, and the Company, upon the request of Stockholder, shall issue to such requesting Stockholder certificate(s) representing such holder’s shares without the legend required by Section 3.4 herein upon the surrender of the certificate(s) representing such shares to the Company.

 

3.4                                 Restrictive Legend. During the term of this Agreement, the certificate(s) evidencing the Stock subject to this Agreement may be inscribed by the Company with the following legend, or one substantially similar thereto:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO VOTING AGREEMENTS AS SET FORTH IN A STOCKHOLDERS’ VOTING AGREEMENT AS AMENDED FROM TIME TO TIME, A COPY OF WHICH THE COMPANY WILL FURNISH TO THE HOLDER OF THIS CERTIFICATE UPON REQUEST AND WITHOUT CHARGE.

 

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3.5                                 Entire Agreement. This Agreement (including any and all exhibits, schedules and other instruments contemplated thereby) constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings between them or any of them as to such subject matter.

 

3.6                                 No Waiver and Further Agreements. Any waiver by any party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of that provision or of any other provision hereof. Each of the parties hereto agrees to execute all such further instruments and documents and to take all such further action as any other party may reasonably require in order to effectuate the terms and purposes of this Agreement.

 

3.7                                 Amendments and Waivers.

 

(a)                                            Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Company and Investors holding at least a majority in interest of the outstanding Conversion Shares; provided, however, that (i) (A) Section 2.2(a) shall not be amended, waived or modified without the consent of NEA; (B) Section 2.2(b) shall not be amended, waived or modified without the consent of OrbiMed; and (C) Sections 2.2(c) and 2.2(d) shall not be amended, waived or modified without the consent of the Company and Holders holding at least a majority in interest of the outstanding shares of Stock then owned collectively by the Holders, (ii) no such amendment, waiver or modification that would adversely affect the rights of, or impose any additional obligation on, any Investor under this Agreement in a manner which is not the same as or similar in all material respects to the manner in which the other Investors would be affected shall be effective without the prior written consent of that Investor, and (iii) no such amendment, waiver or modification to (I) Sections 3.7(a)(i) shall be effective without the prior written unanimous consent of all of the Investors and (II) any other provision of Section 3.7 that is for the benefit of one or more Investors but not for all of the Investors or that would be more favorable to one or more Investors shall be effective without the prior written consent of holders of at least a majority in interest of the outstanding Conversion Shares held by the disinterested or less favored Investors, as the case may be. Any such amendment or modification effected in accordance with this Section 3.7 shall be binding on all parties hereto, even if they do not execute such amendment, modification or consent.

 

(b)                                           The Company shall deliver copies of such consent in writing to any holders of any Shares who did not execute such consent. Any waiver or consent may be given subject to satisfaction of conditions stated therein and any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

3.8                                 Governing Law. This agreement shall be governed by and construed in accordance with the State of Delaware, without giving effect to the principles of the conflicts of laws thereof.

 

3.9                                 Additional Parties. The Company shall take all necessary action to ensure that each person who shall after the date hereof acquires any issued and outstanding shares of the capital stock of the Company or securities of the Company exercisable or convertible into such number of shares of capital stock of the Company shall become a party to this Agreement by

 

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executing and delivering to the Company an Instrument of Accession in the form of Exhibit B hereto, and such additional party shall thereafter be added to Exhibit A hereto and be deemed an Investor or Holder, as the case may be, for all purposes of this Agreement without the requirement of consent of the other parties hereto.

 

3.10                           Severability. If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render illegal, invalid or unenforceable any other provision of this Agreement, and this Agreement shall be carried out as if any such illegal, invalid or unenforceable provision were not contained herein.

 

3.11                           Section Headings. The headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

3.12                           Aggregation. All shares of Stock held or acquired by affiliates of Investors shall be aggregated together for purposes of determining availability of any rights under this Agreement.

 

3.13                           Counterparts. This Agreement may be executed and delivered (including by facsimile transmission) in more than one counterpart, each of which shall be deemed to be an original and which, together, shall constitute one and the same instrument.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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

 

	
 
    	
 
    	
SUPERNUS PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jack Khattar
    
	
 
    	
 
    	
Name:
    	
Jack Khattar
    
	
 
    	
 
    	
Title: 
    	
President & CEO
    
	
 
    	
 
    	
 
    
	
HOLDERS:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Jack Khattar
    	
 
    	
 
    
	
Jack Khattar
    	
 
    	
 
    

 

[Signature Page to Stockholders’ Voting Agreement]

 

 

INVESTORS:

 

 

	
NEW ENTERPRISE ASSOCIATES 11, LIMITED PARTNERSHIP
    	
 
    
	
 
    	
 
    
	
By: 
    	
NEA Partners 11, Limited Partnership, its general partner
    	
 
    
	
By: 
    	
NEA 11 GP, LLC, its general partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Eugene A. Trainor
    	
, Manager
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
NEA VENTURES 2005, LIMITED PARTNERSHIP
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela J. Clark
    	
, Vice President
    	
 
    

 

[Signature Page to Stockholders’ Voting Agreement]

 

 

INVESTORS:

 

	
 
    	
 
    
	
CADUCEUS PRIVATE INVESTMENTS II, LP
    	
 
    
	
 
    	
 
    
	
By: 
    	
OrbiMed Capital II LLC
    	
 
    
	
Its:
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael Sheffery 
    	
 
    
	
Name: 
    	
Michael Sheffery 
    	
 
    
	
Title: 
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CADUCEUS PRIVATE INVESTMENTS (QP) II, LP
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
OrbiMed Capital II LLC
    	
 
    
	
Its:
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael Sheffery 
    	
 
    
	
Name: 
    	
Michael Sheffery
    	
 
    
	
Title: 
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
UBS JUNIPER CROSSOVER FUND, L.L.C.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
OrbiMed Advisors LLC
    	
 
    
	
Its:
    	
Member
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael Sheffery 
    	
 
    
	
Name:
    	
Michael Sheffery 
    	
 
    
	
Title:
    	
General Partner
    	
 
    

 

[Signature Page to Stockholders’ Voting Agreement]

 

 

	
INVESTORS:
    	
 
    
	
 
    	
 
    
	
SHIRE LABORATORIES INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/  Scott Applebaum
    	
 
    
	
Name:
    	
 Scott Applebaum
    	
 
    
	
Title:
    	
Secretary
    	
 
    

 

[Signature Page to Stockholders’ Voting Agreement]

 

 

EXHIBIT A

 

SUPERNUS PHARMACEUTICALS, INC.

 

Names and Addresses

 

HOLDERS:

 

Jack Khattar

 

INVESTORS:

 

New Enterprise Associates 11, Limited Partnership 

1119 St. Paul Street

Baltimore, MD 21202

 

NEA Ventures 2005, Limited Partnership 

1119 St. Paul Street

Baltimore, MD 21202

 

Caduceus Private Investments II, LP 

c/o OrbiMed Advisors LLC

767 Third Avenue, 30th Floor

New York, NY 10017

Attn: Michael B. Sheffery

 

Caduceus Private Investments II (QP), LP 

c/o OrbiMed Advisors LLC

767 Third Avenue, 30th Floor

New York, NY 10017

Attn: Michael B. Sheffery

 

UBS Juniper Crossover Fund, LLC 

c/o OrbiMed Advisors LLC

767 Third Avenue, 30th Floor 

New York, NY 10017

Attn: Michael B. Sheffery

 

Shire Laboratories Inc.

c/o 11200 Gundry Lane

Owings Mills, Maryland 21117 

Attention:  Richard Couch

 

 

EXHIBIT B

 

SUPERNUS PHARMACEUTICALS, INC.
 INSTRUMENT OF ACCESSION

 

The undersigned,_________________, in order to become the owner or holder of _________ shares of the capital stock of Supernus Pharmaceuticals, Inc., a Delaware corporation (the “Company”), hereby agrees to become a party to the Stockholders’ Voting Agreement (the “Agreement”) dated as of December 22, 2005, among the Company and the other parties thereto, and to be bound by all provisions thereof. The undersigned agrees to become a [Investor] [Holder] (as defined in the Agreement) under the terms of the Agreement. This Instrument of Accession shall take effect and shall become a part of said Agreement immediately upon execution by the undersigned hereto and acceptance thereof by the Company.

 

EXECUTED as a contract under seal as of the date set forth below:

 

	
 
    	
Signature:
    	
 
    

 

	
 
    	
 
    
	
 
    	
Name:
    	
 
    

 

	
 
    	
 
    
	
 
    	
By:
    	
 
    

 

	
 
    	
 
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

	
 
    	
Social Security No.:
    	
 
    

 

	
 
    	
 
    
	
 
    	
Date:
    	
 
    

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Accepted :
    
	
 
    	
 
    
	
 
    	
SUPERNUS PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    
				

 

 

AMENDMENT NO. 1 TO
 STOCKHOLDERS’ VOTING AGREEMENT

 

This AMENDMENT NO. 1 TO STOCKHOLDERS’ VOTING AGREEMENT (this “Amendment”) is made as of February 3, 2006, by and among Supernus Pharmaceuticals, Inc., a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), and the Investors listed on Exhibit A attached to the Voting Agreement (as defined below). Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Voting Agreement (as defined below).

 

WHEREAS, pursuant to the terms of the Series A Convertible Preferred Stock Agreement by and among the Company and the Investors dated as of December 22, 2005, as amended by Amendment No. 1 dated as of the date hereof (collectively, the “Purchase Agreement”), the Company proposes to issue and sell to certain existing and new investors an aggregate of Seventeen Million Five Hundred Thousand (17,500,000) shares of Series A Preferred Stock at the Second Closing (as defined in the Purchase Agreement);

 

WHEREAS, the parties hereto desire to amend the Stockholders’ Voting Agreement dated as of December 22, 2005 (the “Voting Agreement”), by and among the Company, the Holders and the Investors;

 

WHEREAS, pursuant to Section 3.7(a) of the Voting Agreement, the written consent of the Company and Investors holding a majority in interest of the outstanding Conversion Shares is required to amend the Voting Agreement;

 

WHEREAS, the undersigned Investors represent the holders of at least a majority of the outstanding Conversion Shares; and

 

WHEREAS, it is a condition precedent to the Second Closing of the purchase of Series A Preferred Stock pursuant to the Purchase Agreement that this Amendment be entered into by the parties hereto;

 

NOW THEREFORE, in consideration of the mutual covenants herein contained and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.                                      Section 1.2 of the Voting Agreement shall be amended to add the following definition:

 

““Abingworth” shall mean Abingworth Bioventures IV LP and Abingworth Bioventures IV Executives LP.”

 

2.                                      Section 2.1 of the Voting Agreement shall be amended and restated in its entirety to read as follows:

 

“2.1        Number of Directors. Subject to the provisions of the certificate of incorporation of the Company, the number of directors constituting the entire Board of Directors of the Company shall be nine (9), unless otherwise approved by a majority of

 

 

the members of the Board of Directors, including a majority of the directors designated by holders of the Series A Preferred Stock.”

 

3.                                      Section 2.2 of the Voting Agreement shall be amended to add the following provisions:

 

“(e)                            three (3) people to be designated by any member of the Board of Directors of the Company, subject to the approval of a majority of the other members of the Board of Directors of the Company (the “Group Directors”), which Group Directors shall be directors elected by the holders of the Common Stock and the Series A Preferred Stock, voting together as a single class; and

 

(f)                                   for so long as Abingworth owns any Stock, one (1) designated representative of Abingworth (the “Abingworth Director”), who shall be initially Michael F. Bigham, which Abingworth Director shall be a director elected by the holders of the Series A Preferred Stock, voting as a separate class.

 

4.                                      Section 3.7(a)(i) of the Voting Agreement shall be amended to add the following provisions:

 

“and (D) Section 2.2(f) shall not be amended, waived or modified without the consent of Abingworth,”

 

5.                                      Exhibit A to the Voting Agreement shall be replaced in its entirety with the Schedule of Holders and Investors attached as Exhibit A to this Amendment.

 

6.                                      Entire Agreement. This Amendment and the Voting Agreement (including any and all exhibits, schedules and other instruments contemplated hereby and thereby) constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings between them or any of them as to such subject matter. Except as amended by this Amendment, the Voting Agreement remains in full force and effect.

 

7.                                      Governing Law. This Amendment shall be governed by and construed in accordance with the State of Delaware, without giving effect to the principles of the conflicts of laws thereof.

 

8.                                      Severability. If any provision of this Amendment shall be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render illegal, invalid or unenforceable any other provision of this Amendment, and this Amendment shall be carried out as if any such illegal, invalid or unenforceable provision were not contained herein.

 

9.                                      Counterparts. This Amendment may be executed and delivered (including by facsimile transmission) in more than one counterpart, each of which shall be deemed to be an original and which, together, shall constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the parties have duly executed this Amendment No. 1 to Stockholders’ Voting Agreement as of the date first above written.

 

	
 
    	
SUPERNUS PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jack Khattar
    
	
 
    	
Name:
    	
Jack Khattar
    
	
 
    	
Title:
    	
President & CEO
    

 

[Signature Page to Amendment No. 1 to Stockholders’ Voting Agreement]

 

 

INVESTORS:

 

 

NEW ENTERPRISE ASSOCIATES 11, LIMITED PARTNERSHIP

 

By: NEA Partners 11, Limited Partnership, its general partner

By: NEA 11 GP, LLC, its general partner

 

	
By:
    	
/s/ Eugene A. Trainor
    	
, Manager
    	
 
    
	
 
    	
Eugene A. Trainor, III
    	
 
    
	
 
    	
 
    	
 
    
	
NEA VENTURES 2005, LIMITED   PARTNERSHIP
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Pamela J. Clark
    	
, Vice President
    	
 
    
	
 
    	
Pamela J. Clark
    	
 
    

 

[Signature Page to Amendment No. 1 to Stockholders’ Voting Agreement]

 

 

	
INVESTORS:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CADUCEUS PRIVATE   INVESTMENTS II, LP
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
OrbiMed Capital II LLC
    	
 
    
	
Its:
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael Sheffery 
    	
 
    
	
Name: 
    	
Michael Sheffery 
    	
 
    
	
Title:
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CADUCEUS PRIVATE   INVESTMENTS (QP) II, LP
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
OrbiMed Capital II LLC
    	
 
    
	
Its:
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael Sheffery 
    	
 
    
	
Name: 
    	
Michael Sheffery 
    	
 
    
	
Title:
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
UBS JUNIPER CROSSOVER   FUND, L.L.C.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
OrbiMed Advisors LLC
    	
 
    
	
Its:
    	
Member
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael Sheffery 
    	
 
    
	
Name: 
    	
Michael Sheffery 
    	
 
    
	
Title:
    	
General Partner
    	
 
    

 

[Signature Page to Amendment No. 1 to Stockholders’ Voting Agreement]

 

 

	
INVESTORS:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SHIRE LABORATORIES INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Angus Russell
    	
 
    
	
Name: 
    	
Angus Russell
    	
 
    
	
Title:
    	
Director
    	
 
    

 

[Signature Page to Amendment No. 1 to Stockholders’ Voting Agreement]

 

 

EXHIBIT A

 

SUPERNUS PHARMACEUTICALS, INC.

 

Names and Addresses

 

HOLDERS:

 

Jack Khattar

 

INVESTORS:

 

New Enterprise Associates 11, Limited Partnership

1119 St. Paul Street

Baltimore, MD 21202

 

NEA Ventures 2005, Limited Partnership

1119 St. Paul Street

Baltimore, MD 21202

 

Caduceus Private Investments II, LP

c/o OrbiMed Advisors LLC

767 Third Avenue, 30th Floor

New York, NY 10017

Attn: Michael B. Sheffery

 

Caduceus Private Investments II (QP), LP

c/o OrbiMed Advisors LLC

767 Third Avenue, 30th Floor

New York, NY 10017

Attn: Michael B. Sheffery

 

UBS Juniper Crossover Fund, LLC

c/o OrbiMed Advisors LLC

767 Third Avenue, 30th Floor

New York, NY 10017

Attn: Michael B. Sheffery

 

Shire Laboratories Inc.

c/o 11200 Gundry Lane

Owings Mills, Maryland 21117

Attention: Richard Couch

 

 

Abingworth Bioventures IV LP

38 Jermyn Street

London SW1Y 6DN

Attention: General Counsel

 

with a copy to:

Abingworth Management, Inc.

890 Winter Street

Waltham, MA 02451

 

Abingworth Bioventures IV Executives LP

38 Jermyn Street

London SW1Y 6DN

Attention: General Counsel

 

with a copy to:

Abingworth Management, Inc.

890 Winter Street

Waltham, MA 02451Exhibit 10.25

 

SUPERNUS PHARMACEUTICALS, INC.

2012 EQUITY INCENTIVE PLAN

 

1.                                      DEFINED TERMS

 

Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets forth certain operational rules related to those terms.

 

2.                                      PURPOSE

 

The Plan has been established to advance the interests of the Company by providing for the grant to Participants of Stock-based and other incentive Awards.

 

3.                                      ADMINISTRATION

 

The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; determine eligibility for and grant Awards; determine, modify or waive the terms and conditions of any Award; prescribe forms, rules and procedures; and otherwise do all things necessary to carry out the purposes of the Plan.  In the case of any Award intended to be eligible for the performance-based compensation exception under Section 162(m), the Administrator will exercise its discretion consistent with qualifying the Award for that exception.  Determinations of the Administrator made under the Plan will be conclusive and will bind all parties.

 

4.                                      LIMITS ON AWARDS UNDER THE PLAN

 

(a)                                 Number of Shares.  The maximum number of shares of Stock that may be delivered in satisfaction of Awards under the Plan is 2,500,000.  Up to the total number of shares of Stock available for awards to employee Participants may be issued in satisfaction of ISOs, but nothing in this Section 4(a) shall be construed as requiring that any, or any fixed number of, ISOs be awarded under the Plan.  For purposes of the preceding sentences, the number of shares of Stock delivered in satisfaction of Awards is to be determined net of shares of Stock withheld by the Company in payment of the exercise price of the Award or in satisfaction of tax withholding requirements with respect to the Award and, for the avoidance of doubt, without including any shares of Stock underlying Awards that are settled in cash, that otherwise expire or become unexercisable without having been exercised or that are forfeited to or repurchased by the Company for cash. The limits set forth in this Section 4(a) shall be construed to comply with Section 422.  To the extent consistent with the requirements of Section 422 and with other applicable requirements (including applicable stock exchange requirements), Stock issued under awards of an acquired company that are converted, replaced, or adjusted in connection with the acquisition shall not reduce the number of shares available for Awards under the Plan.

 

(b)                                 Type of Shares.  Stock delivered by the Company under the Plan may be

 

 

authorized but unissued Stock or previously issued Stock acquired by the Company.  No fractional shares of Stock will be delivered under the Plan.

 

(c)                                  Section 162(m) Limits.  The maximum number of shares of Stock for which Stock Options may be granted to any person in any calendar year and the maximum number of shares of Stock subject to SARs granted to any person in any calendar year will each be 300,000.  The maximum number of shares subject to other Awards granted to any person in any calendar year will be 300,000 shares.  The maximum amount payable to any person in any year under Cash Awards will be USD $400,000.  The foregoing provisions will be construed in a manner consistent with Section 162(m).

 

5.                                      ELIGIBILITY AND PARTICIPATION

 

The Administrator will select Participants from among those key Employees and directors of, and consultants and advisors to, the Company and its Affiliates who, in the opinion of the Administrator, are in a position to make a significant contribution to the success of the Company and its Affiliates; provided, that, subject to such express exceptions, if any, as the Administrator may establish, eligibility shall be further limited to those persons as to whom the use of a Form S-8 registration statement is permissible.  Eligibility for ISOs is limited to employees of the Company or of a “parent corporation” or “subsidiary corporation” of the Company as those terms are defined in Section 424 of the Code.  Eligibility for Stock Options other than ISOs is limited to individuals described in the first sentence of this Section 5 who are providing direct services on the date of grant of the Stock Option to the Company or to a subsidiary of the Company that would be described in the first sentence of Treas. Regs. §1.409A-1(b)(5)(iii)(E).

 

6.                                      RULES APPLICABLE TO AWARDS

 

(a)                                 All Awards.

 

(1)  Award Provisions.  The Administrator will determine the terms of all Awards, subject to the limitations provided herein.  By accepting (or, under such rules as the Administrator may prescribe, being deemed to have accepted) an Award, the Participant shall be deemed to have agreed to the terms of the Award and the Plan.  Notwithstanding any provision of this Plan to the contrary, awards of an acquired company that are converted, replaced or adjusted in connection with the acquisition may contain terms and conditions that are inconsistent with the terms and conditions specified herein, as determined by the Administrator.

 

(2)  Term of Plan.  No Awards may be made after April 2, 2022, but previously granted Awards may continue beyond that date in accordance with their terms.

 

(3)  Transferability.  Neither ISOs nor, except as the Administrator otherwise expressly provides in accordance with the second sentence of this Section 6(a)(3), other Awards may be transferred other than by will or by the laws of descent and distribution, and during a Participant’s lifetime, ISOs (and, except as the Administrator otherwise

 

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expressly provides in accordance with the second sentence of this Section 6(a)(3), other Awards requiring exercise) may be exercised only by the Participant.  The Administrator may permit Awards other than ISOs to be transferred by gift, subject to such limitations as the Administrator may impose.

 

(4)  Vesting, etc.  The Administrator may determine the time or times at which an Award will vest or become exercisable and the terms on which an Award requiring exercise will remain exercisable.  Without limiting the foregoing, the Administrator may at any time accelerate the vesting or exercisability of an Award, regardless of any adverse or potentially adverse tax or other consequences resulting from such acceleration.  Unless the Administrator expressly provides otherwise, however, the following rules will apply if a Participant’s Employment ceases:

 

(A)  Immediately upon the cessation of the Participant’s Employment and except as provided in (B) and (C) below, each Stock Option and SAR that is then held by the Participant or by the Participant’s permitted transferees, if any, will cease to be exercisable and will terminate, and all other Awards that are then held by the Participant or by the Participant’s permitted transferees, if any, to the extent not already vested will be forfeited.

 

(B)  Subject to (C) and (D) below, all Stock Options and SARs held by the Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment, to the extent then exercisable, will remain exercisable for the lesser of (i) a period of three months or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.

 

(C)  All Stock Options and SARs held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the Participant’s death or permanent disability (as determined by the Administrator), to the extent then exercisable, will remain exercisable for the lesser of (i) the one year period ending with the first anniversary of the Participant’s death or permanent disability, as applicable, or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.

 

(D)  All Stock Options and SARs (whether or not exercisable) held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment will immediately terminate upon such cessation of Employment if the termination is for Cause or occurs in circumstances that in the determination of the Administrator would have constituted grounds for the Participant’s Employment to be terminated for Cause.

 

(5)  Competing Activity.  The Administrator may cancel, rescind, withhold or otherwise limit or restrict any Award at any time if the Participant is not in compliance with all applicable provisions of the applicable Award agreement and the Plan, or if the

 

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Participant breaches any agreement with the Company or an Affiliate with respect to non-competition, non-solicitation or confidentiality, or to the extent disgorgement or forfeiture of the Award or any amounts received under the Award is required under a policy of the Company or any successor, or its or their subsidiaries, adopted to comply with applicable requirements of law (including Section 10D of the Securities Exchange Act of 1934, as amended) or of any applicable stock exchange.

 

(6)  Taxes.  The delivery, vesting and retention of Stock under an Award are conditioned upon full satisfaction by the Participant of all tax withholding requirements with respect to the Award.  The Administrator will prescribe such rules for the withholding of taxes as it deems necessary.  The Administrator may, but need not, hold back shares of Stock from an Award or permit a Participant to tender previously owned shares of Stock in satisfaction of tax withholding requirements (but not in excess of the minimum withholding required by law).

 

(7)  Dividend Equivalents, Etc.  The Administrator may provide for the payment of amounts (on terms and subject to conditions established by the Administrator) in lieu of cash dividends or other cash distributions with respect to Stock subject to an Award whether or not the holder of such Award is otherwise entitled to share in the actual dividend or distribution in respect of such Award.  Any entitlement to dividend equivalents or similar entitlements shall be established and administered either consistent with an exemption from, or in compliance with, the requirements of Section 409A.

 

(8)  Rights Limited.  Nothing in the Plan will be construed as giving any person the right to continued employment or service with the Company or its Affiliates, or any rights as a stockholder except as to shares of Stock actually issued under the Plan.  The loss of existing or potential profit in Awards will not constitute an element of damages in the event of termination of Employment for any reason, even if the termination is in violation of an obligation of the Company or any Affiliate to the Participant.

 

(9)  Section 162(m).

 

(A)  Awards Intended to Qualify for Performance-Based Compensation Exception.  This Section 6(a)(9)(A) applies to any Performance Award (other than a Stock Option or SAR) intended to qualify for the performance-based compensation exception under Section 162(m).  In the case of any Performance Award to which this Section 6(a)(9)(A) applies, the Plan and such Award will be construed to the maximum extent permitted by law in a manner consistent with qualifying the Award for such exception.  With respect to such Performance Awards, the Administrator will preestablish, in writing, one or more specific Performance Criteria no later than 90 days after the commencement of the period of service to which the performance relates (or at such earlier time as is required to qualify the Award as performance-based under Section 162(m)).  Prior to grant, vesting or payment of the Performance Award, as the case may be, the Administrator will certify whether the applicable Performance Criteria have been

 

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attained and such determination will be final and conclusive.

 

(B)  Certain Transition Awards.  Awards intended to be exempt from the limitations of Section 162(m) shall not be required to comply with the provisions of Section 6(a)(9)(A) if and to the extent they are eligible (as determined by the Administrator) for exemption from such limitations by reason of the post-initial public offering transition relief in Section 1.162-27(f) of the Treasury Regulations.

 

(10)  Coordination with Other Plans.  Awards under the Plan may be granted in tandem with, or in satisfaction of or substitution for, other Awards under the Plan or awards made under other compensatory plans or programs of the Company or its Affiliates.  For example, but without limiting the generality of the foregoing, awards under other compensatory plans or programs of the Company or its Affiliates may be settled in Stock (including, without limitation, Unrestricted Stock) if the Administrator so determines, in which case the shares delivered shall be treated as awarded under the Plan (and shall reduce the number of shares thereafter available under the Plan in accordance with the rules set forth in Section 4).  In any case where an award is made under another plan or program of the Company or its Affiliates and such award is intended to qualify for the performance-based compensation exception under Section 162(m), and such award is settled by the delivery of Stock or another Award under the Plan, the applicable Section 162(m) limitations under both the other plan or program and under the Plan shall be applied to the Plan as necessary (as determined by the Administrator) to preserve the availability of the Section 162(m) performance-based compensation exception with respect thereto.

 

(11)  Section 409A.  Each Award shall contain such terms as the Administrator determines, and shall be construed and administered, such that the Award either (i) qualifies for an exemption from the requirements of Section 409A, or (ii) satisfies such requirements.

 

(12)  Certain Requirements of Corporate Law.  Awards shall be granted and administered consistent with the requirements of applicable Delaware law relating to the issuance of stock and the consideration to be received therefor, and with the applicable requirements of the stock exchanges or other trading systems on which the Stock is listed or entered for trading, in each case as determined by the Administrator.

 

(13)  Fair Market Value.  In determining the fair market value of any share of Stock under the Plan, the Administrator shall make the determination in good faith consistent with the rules of Section 422 and Section 409A to the extent applicable.

 

(b)                                 Awards Requiring Exercise

 

(1)  Time And Manner Of Exercise.  Unless the Administrator expressly provides otherwise, each Stock Option or SAR will not be deemed to have been exercised until the Administrator receives a notice of exercise (in form acceptable to the Administrator), which may be an electronic notice, signed (including electronic signature

 

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in form acceptable to the Administrator) by the appropriate person and accompanied by any payment required under the Award.  If the Award is exercised by any person other than the Participant, the Administrator may require satisfactory evidence that the person exercising the Award has the right to do so.

 

(2)  Exercise Price.  The exercise price (or the base value from which appreciation is to be measured) of each Award requiring exercise shall be 100% (or in the case of an ISO granted to a ten-percent shareholder within the meaning of subsection (b)(6) of Section 422, 110%) of the fair market value of the Stock subject to the Award, determined as of the date of grant, or such higher amount as the Administrator may determine in connection with the grant.  No such Award, once granted, may be repriced other than with stockholder approval.

 

(3)  Payment Of Exercise Price.  Where the exercise of an Award is to be accompanied by payment, payment of the exercise price shall be by cash or check acceptable to the Administrator, or, if so permitted by the Administrator and if legally permissible, (i) through the delivery of unrestricted shares of Stock that have a fair market value equal to the exercise price, subject to such minimum holding period requirements, if any, as the Administrator may prescribe, (ii) through a broker-assisted exercise program acceptable to the Administrator, (iii) by other means acceptable to the Administrator, or (iv) by any combination of the foregoing permissible forms of payment.  The delivery of shares in payment of the exercise price under clause (i) above may be accomplished either by actual delivery or by constructive delivery through attestation of ownership, subject to such rules as the Administrator may prescribe.

 

(4)  Maximum Term.  Awards requiring exercise will have a maximum term not to exceed ten (10) years from the date of grant (five (5) years from the date of grant in the case of an ISO granted to a ten-percent shareholder described in Section 6(b)(2) above).

 

7.                                      EFFECT OF CERTAIN TRANSACTIONS

 

(a)                                 Mergers, etc.  Except as otherwise provided in an Award, the following provisions shall apply in the event of a Covered Transaction:

 

(1)  Assumption or Substitution.  If the Covered Transaction is one in which there is an acquiring or surviving entity, the Administrator may (but, for the avoidance of doubt, need not) provide (i) for the assumption or continuation of some or all outstanding Awards or any portion thereof or (ii) for the grant of new awards in substitution therefor by the acquiror or survivor or an affiliate of the acquiror or survivor.

 

(2)  Cash-Out of Awards.  Subject to Section 7(a)(5) below the Administrator may (but, for the avoidance of doubt, need not) provide for payment (a “cash-out”), with respect to some or all Awards or any portion thereof, equal in the case of each affected Award or portion thereof to the excess, if any, of (A) the fair market value of one share of Stock (as determined by the Administrator in its reasonable discretion) times the number of shares of Stock subject to the Award or such portion, over (B) the aggregate exercise or purchase price, if any, under the Award or such portion (in the case of an SAR, the

 

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aggregate base value above which appreciation is measured), in each case on such payment terms (which need not be the same as the terms of payment to holders of Stock) and other terms, and subject to such conditions, as the Administrator determines.

 

(3)  Acceleration of Certain Awards.  Subject to Section 7(a)(5) below, the Administrator may (but, for the avoidance of doubt, need not) provide that each Award requiring exercise will become exercisable in full or in part and/or that the delivery of any shares of Stock remaining deliverable under each outstanding Award of Stock Units (including Restricted Stock Units and Performance Awards to the extent consisting of Stock Units) will be accelerated in full or in part, in each case on a basis that gives the holder of the Award a reasonable opportunity, as determined by the Administrator, following exercise of the Award or the delivery of the shares, as the case may be, to participate as a stockholder in the Covered Transaction with respect to the portion of the Award so accelerated.

 

(4)  Termination of Awards Upon Consummation of Covered Transaction.  Each Award will terminate upon consummation of the Covered Transaction, other than the following:  (i) Awards assumed pursuant to Section 7(a)(1) above, and (ii) outstanding shares of Restricted Stock (which shall be treated in the same manner as other shares of Stock, subject to Section 7(a)(5) below).

 

(5)  Additional Limitations.  Any share of Stock and any cash or other property delivered pursuant to Section 7(a)(2) or Section 7(a)(3) above with respect to an Award may, in the discretion of the Administrator, contain such restrictions, if any, as the Administrator deems appropriate to reflect any performance or other vesting conditions to which the Award was subject and that did not lapse (and were not satisfied) in connection with the Covered Transaction.  For purposes of the immediately preceding sentence, a cash-out under Section 7(a)(2) above or acceleration under Section 7(a)(3) above shall not, in and of itself, be treated as the lapsing (or satisfaction) of a performance or other vesting condition.  In the case of Restricted Stock that does not vest in connection with the Covered Transaction, the Administrator may require that any amounts delivered, exchanged or otherwise paid in respect of such Stock in connection with the Covered Transaction be placed in escrow or otherwise made subject to such restrictions as the Administrator deems appropriate to carry out the intent of the Plan.

 

(b)                                 Changes in and Distributions With Respect to Stock

 

(1)  Basic Adjustment Provisions.  In the event of a stock dividend, stock split or combination of shares (including a reverse stock split), recapitalization or other change in the Company’s capital structure that constitutes an equity restructuring within the meaning of FASB ASC 718, the Administrator shall make appropriate adjustments to the maximum number of shares specified in Section 4(a) that may be delivered under the Plan and to the maximum share limits described in Section 4(c), and shall also make appropriate adjustments to the number and kind of shares of stock or securities subject to Awards then outstanding or subsequently granted, any exercise prices relating to Awards and any other provision of Awards affected by such change.

 

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(2)  Certain Other Adjustments.  The Administrator may also make adjustments of the type described in Section 7(b)(1) above to take into account distributions to stockholders other than those provided for in Section 7(a) and 7(b)(1), or any other event, if the Administrator determines that adjustments are appropriate to avoid distortion in the operation of the Plan and to preserve the value of Awards made hereunder, having due regard for the qualification of ISOs under Section 422, the requirements of Section 409A, and for the performance-based compensation rules of Section 162(m), where applicable.

 

(3)  Continuing Application of Plan Terms.  References in the Plan to shares of Stock will be construed to include any stock or securities resulting from an adjustment pursuant to this Section 7.

 

8.                                      LEGAL CONDITIONS ON DELIVERY OF STOCK

 

The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or to remove any restriction from shares of Stock previously delivered under the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance and delivery of such shares have been addressed and resolved; (ii) if the outstanding Stock is at the time of delivery listed on any stock exchange or national market system, the shares to be delivered have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all conditions of the Award have been satisfied or waived.  If the sale of Stock has not been registered under the Securities Act of 1933, as amended, the Company may require, as a condition to exercise of the Award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of the Securities Act or any applicable state or foreign securities laws.  The Company may require that certificates evidencing Stock issued under the Plan bear an appropriate legend reflecting any restriction on transfer applicable to such Stock, and the Company may hold the certificates pending lapse of the applicable restrictions.

 

9.                                      AMENDMENT AND TERMINATION

 

The Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by law, and may at any time terminate the Plan as to any future grants of Awards; provided, that except as otherwise expressly provided in the Plan the Administrator may not, without the Participant’s consent, alter the terms of an Award so as to affect materially and adversely the Participant’s rights under the Award, unless the Administrator expressly reserved the right to do so at the time the Award was granted.  Any amendments to the Plan shall be conditioned upon stockholder approval only to the extent, if any, such approval is required by law (including the Code and applicable stock exchange requirements), as determined by the Administrator.

 

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10.                               OTHER COMPENSATION ARRANGEMENTS

 

The existence of the Plan or the grant of any Award will not in any way affect the Company’s right to Award a person bonuses or other compensation in addition to Awards under the Plan.

 

11.                               MISCELLANEOUS

 

(a)                                 Waiver of Jury Trial.  By accepting an Award under the Plan, each Participant waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan and any Award, or under any amendment, waiver, consent, instrument, document or other agreement delivered or which in the future may be delivered in connection therewith, and agrees that any such action, proceedings or counterclaim shall be tried before a court and not before a jury.  By accepting an Award under the Plan, each Participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of any action, proceeding or counterclaim, seek to enforce the foregoing waivers.

 

(b)                                 Limitation of Liability.  Notwithstanding anything to the contrary in the Plan, neither the Company, nor any Affiliate, nor the Administrator, nor any person acting on behalf of the Company, any Affiliate, or the Administrator, shall be liable to any Participant or to the estate or beneficiary of any Participant or to any other holder of an Award by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of the failure of an Award to satisfy the requirements of Section 422 or Section 409A or by reason of Section 4999 of the Code, or otherwise asserted with respect to the Award; provided, that nothing in this Section 11(b) shall limit the ability of the Administrator or the Company, in its discretion, to provide by separate express written agreement with a Participant for a gross-up payment or other payment in connection with any such acceleration of income or additional tax.

 

12.                               ESTABLISHMENT OF SUB-PLANS

 

The Administrator may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of various jurisdictions.  The Administrator will establish such sub-plans by adopting supplements to the Plan setting forth (i) such limitations on the Administrator’s discretion under the Plan as it deems necessary or desirable and (ii) such additional terms and conditions not otherwise inconsistent with the Plan as it deems necessary or desirable.  All supplements so established will be deemed to be part of the Plan, but each supplement will apply only to Participants within the affected jurisdiction and the Company will not be required to provide copies of any supplement to Participants in any jurisdiction that is not affected.

 

13.                               GOVERNING LAW

 

Except as otherwise provided by the express terms of an Award agreement or under a sub-plan described in Section 12, the provisions of the Plan and of Awards under the Plan and all

 

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claims or disputes arising out of our based upon the Plan or any Award under the Plan or relating to the subject matter hereof or thereof will be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

 

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EXHIBIT A

 

Definition of Terms

 

The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below:

 

“Administrator”:  The Board, except that the Board may delegate its authority under the Plan to a committee of the Board (or one or more members of the Board), in which case references herein to the Board will refer to such committee (or members of the Board).  The Board may delegate (i) to one or more of its members such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power to grant rights or options to the extent permitted by Section 157(c) of the Delaware General Corporation Law; and (iii) to such Employees or other persons as it determines such ministerial tasks as it deems appropriate.  In the event of any delegation described in the preceding sentence, the term “Administrator” shall include the person or persons so delegated to the extent of such delegation.

 

“Affiliate”:  Any corporation or other entity that stands in a relationship to the Company that would result in the Company and such corporation or other entity being treated as one employer under Section 414(b) and Section 414(c) of the Code.

 

“Award”:  Any or a combination of the following:

 

(i) Stock Options.

 

(ii) SARs.

 

(iii) Restricted Stock.

 

(iv) Unrestricted Stock.

 

(v) Stock Units, including Restricted Stock Units.

 

(vi) Performance Awards.

 

(vii) Cash Awards.

 

(viii) Awards (other than Awards described in (i) through (vii) above) that are convertible into or otherwise based on Stock.

 

“Board”:  The Board of Directors of the Company.

 

“Cash Award”:  An Award denominated in cash.

 

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“Cause”:  In the case of any Participant who is party to an employment or severance-benefit agreement that contains a definition of “Cause,” the definition set forth in such agreement will apply with respect to such Participant under the Plan.  In the case of any other Participant, “Cause” will mean (i) substantial or intentional misconduct that is materially injurious to the Company or an Affiliate, or (ii) the commission by the Participant of an act of embezzlement, fraud or other crime of dishonesty (iii) deliberate disregard of the rules or policies of the Company or an Affiliate which results in material economic loss, damage or injury to the Company or an Affiliate; (iv) the unauthorized disclosure of any trade secret or confidential information of the Company or an Affiliate or any third party who has a business relationship with the Company or an Affiliate or the violation of any noncompetition or nonsolicitation covenant or assignment of inventions obligation with the Company or an Affiliate; (v) the commission of any act which induces, or reasonably could be expected to induce, any customer or prospective customer of the Company or an Affiliate to break a contract with the Company or an Affiliate or to decline to do business with the Company or an Affiliate; (vi) the commission of (A) a felony or (B) other crime involving any financial impropriety or moral turpitude or which would materially interfere with the Participant’s ability to perform his or services for the Company or an Affiliate or otherwise would be injurious to the Company or an Affiliate; or (vii) the failure to perform in a material respect his or her employment (or other service) obligations (including, without limitation, the duties and responsibilities of the Participant’s position) without proper cause (as determined by the Administrator in its sole discretion).

 

“Code”:  The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or any successor statute as from time to time in effect.

 

“Company”:  Supernus Pharmaceuticals, Inc.

 

“Covered Transaction”:  Any of (i) a consolidation, merger, or similar transaction or series of related transactions, including a sale or other disposition of stock, in which the Company is not the surviving corporation or which results in the acquisition of all or substantially all of the Company’s then outstanding common stock by a single person or entity or by a group of persons and/or entities acting in concert, (ii) a sale or transfer of all or substantially all the Company’s assets, or (iii) a dissolution or liquidation of the Company.  Where a Covered Transaction involves a tender offer that is reasonably expected to be followed by a merger described in clause (i) (as determined by the Administrator), the Covered Transaction shall be deemed to have occurred upon consummation of the tender offer.

 

“Employee”:  Any person who is employed by the Company or an Affiliate.

 

“Employment”:  A Participant’s employment or other service relationship with the Company and its Affiliates.  Employment will be deemed to continue, unless the Administrator expressly provides otherwise, so long as the Participant is employed by, or otherwise is providing services in a capacity described in Section 5 to the Company or an Affiliate.  If a Participant’s employment or other service relationship is with an Affiliate and that entity ceases to be an Affiliate, the Participant’s Employment will be deemed to have terminated when the entity ceases to be an Affiliate unless the Participant transfers Employment to the Company or its remaining Affiliates.  Notwithstanding the foregoing and the definition of “Affiliate” above, in

 

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construing the provisions of any Award relating to the payment of “nonqualified deferred compensation” (subject to Section 409A) upon a termination or cessation of Employment, references to termination or cessation of employment, separation from service, retirement or similar or correlative terms shall be construed to require a “separation from service” (as that term is defined in Section 1.409A-1(h) of the Treasury Regulations) from the Company and from all other corporations and trades or businesses, if any, that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations. The Company may, but need not, elect in writing, subject to the applicable limitations under Section 409A, any of the special elective rules prescribed in Section 1.409A-1(h) of the Treasury Regulations for purposes of determining whether a “separation from service” has occurred.  Any such written election shall be deemed a part of the Plan.

 

“ISO”:  A Stock Option intended to be an “incentive stock option” within the meaning of Section 422.  Each Stock Option granted pursuant to the Plan will be treated as providing by its terms that it is to be a NQSO unless, as of the date of grant, it is expressly designated as an ISO.

 

“NQSO”:  A Stock Option that is not intended to be an “incentive stock option” within the meaning of Section 422.

 

“Participant”:  A person who is granted an Award under the Plan.

 

“Performance Award”:  An Award subject to Performance Criteria.  The Administrator in its discretion may grant Performance Awards that are intended to qualify for the performance-based compensation exception under Section 162(m) and Performance Awards that are not intended so to qualify.

 

“Performance Criteria”:  Specified criteria, other than the mere continuation of Employment or the mere passage of time, the satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment of an Award.  For purposes of Awards that are intended to qualify for the performance-based compensation exception under Section 162(m), a Performance Criterion will mean an objectively determinable measure of performance relating to any or any combination of the following (measured either absolutely or by reference to an index or indices and determined either on a consolidated basis or, as the context permits, on a divisional, subsidiary, line of business, project or geographical basis or in combinations thereof): sales; revenues; assets; expenses; earnings before or after deduction for all or any portion of interest, taxes, depreciation, or amortization, whether or not on a continuing operations or an aggregate or per share basis; return on equity, investment, capital or assets; one or more operating ratios; borrowing levels, leverage ratios or credit rating; market share; capital expenditures; cash flow; stock price; stockholder return; sales of particular products or services; customer acquisition or retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic alliances; spin-offs, split-ups and the like; reorganizations; or recapitalizations, restructurings, financings (issuance of debt or equity) or refinancings.  A Performance Criterion and any targets with respect thereto determined by the Administrator need not be based upon an increase, a positive or improved result or avoidance of loss.  To the extent consistent with the requirements for satisfying the performance-based compensation exception under Section 162(m), the Administrator may provide in the case of any Award intended to

 

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qualify for such exception that one or more of the Performance Criteria applicable to such Award will be adjusted in an objectively determinable manner to reflect events (for example, but without limitation, acquisitions or dispositions) occurring during the performance period that affect the applicable Performance Criterion or Criteria.

 

“Plan”:  The Supernus Pharmaceuticals, Inc. 2012 Equity Incentive Plan as from time to time amended and in effect.

 

“Restricted Stock”:  Stock subject to restrictions requiring that it be redelivered or offered for sale to the Company if specified conditions are not satisfied.

 

“Restricted Stock Unit”:  A Stock Unit that is, or as to which the delivery of Stock or cash in lieu of Stock is, subject to the satisfaction of specified performance or other vesting conditions.

 

“SAR”:  A right entitling the holder upon exercise to receive an amount (payable in cash or in shares of Stock of equivalent value) equal to the excess of the fair market value of the shares of Stock subject to the right over the base value from which appreciation under the SAR is to be measured.

 

“Section 409A”:  Section 409A of the Code.

 

“Section 422”:  Section 422 of the Code.

 

“Section 162(m)”:  Section 162(m) of the Code.

 

“Stock”:  Common Stock of the Company, par value $0.001 per share.

 

“Stock Option”:  An option entitling the holder to acquire shares of Stock upon payment of the exercise price.

 

“Stock Unit”:  An unfunded and unsecured promise, denominated in shares of Stock, to deliver Stock or cash measured by the value of Stock in the future.

 

“Unrestricted Stock”:  Stock not subject to any restrictions under the terms of the Award.

 

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