Exhibit 4.3
ESPERION THERAPEUTCS, INC.
AMENDMENT NO. 2 TO THE INVESTORS' RIGHTS AGREEMENT
This AMENDMENT NO. 2 TO THE INVESTORS' RIGHTS AGREEMENT (this "Agreement")
is made and entered into as of January 7, 2000, by and among ESPERION
THERAPEUTICS, INC., a Delaware corporation (the "Company"), the Purchasers (as
such term is defined in the Original Agreement defined below), and the
Additional Purchasers set forth on Exhibit 1 attached hereto under the heading
"Additional Purchasers."
WHEREAS, the Company and the Purchasers are parties to an Investors' Rights
Agreement made and entered into as of July 6, 1998 (the "Original Agreement");
and
WHEREAS, the Original Agreement was amended as of August 11, 1998 pursuant
to Amendment No. 1 to the Investors' Rights Agreement ("Amendment No. 1"), to
provide for the addition of the Additional Purchasers as Purchasers thereunder
with respect to the issuance of the Series B Shares; and
WHEREAS, the parties to the Original Agreement, as amended, desire to amend
further such agreement, to provide for the addition of the Additional Purchasers
as Purchasers thereunder with respect to the issuance of the Series C Shares,
among other things, on the terms and conditions stated herein and in the
Original Agreement as amended;
NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth herein, the parties hereto agree as follows:
1. Defined Terms.
(a) Capitalized terms used and not otherwise defined in this Agreement
shall have the meanings given to such terms in the Original Agreement.
(b) The following definitions set forth in Section 1 of the Original
Agreement are hereby amended and restated as follows:
"Preferred Shares" shall mean the Series A Shares, the Series B Shares,
the Series C Shares and shares of any additional series of preferred
stock of the Company, the issuance of which is approved by the holders of
at least 51 % of the Preferred Shares as required by the Restated
Certificate.
"Restated Certificate" shall mean the Company's Amended and Restated
Certificate of Incorporation, as amended from time to time.
"Transaction Documents" shall mean, collectively, the Series A Agreement,
the Securities Purchase Agreement dated as of August 11, 1998 (the
"Series B Agreement"), the Securities Purchase Agreement dated as of
January , 2000
(the "Series C Agreement"), the Restated Certificate, this Agreement and
the other Ancillary Agreements (as defined in the Series A Agreement, the
Series B Agreement and the Series C Agreement).
(c) The definition of the term "New Securities" set forth in Section 1 of
the Original Agreement is hereby amended to delete the number "380,000" in
subsection (vi) thereof and substitute therefor the number "680,000."
(d) A new definition is hereby added to Section 1 of the Original
Agreement, to read in its entirety as follows:
"Series C Shares" shall mean the Company's Series C Convertible Preferred
Stock, par value $0.01 per share.
2. Exhibit A. Exhibit A to the Original Agreement is amended and restated
in the form of Exhibit A hereto.
3. Request for Registration. Section 1.5(a) of the Original Agreement is
hereby amended (i) to delete the date "July 6, 2002" in subsection (A) thereof
and substitute therefor the date "January , 2003," (ii) to delete the defined
term "("Initiating Holders")" and add after the words "then outstanding
Registrable Securities" in subsection (B) thereof the words "other than the
Series C Shares (or any Common Stock issued or issuable upon conversion thereof,
with respect thereto or in exchange therefor) (the "Non-Series C Initiating
Holders") or 30% of the then outstanding Registrable Securities consisting of
Series C Shares (and any Common Stock issued or issuable upon conversion
thereof, with respect thereto or in exchange therefor) (the "Series C Initiating
Holders"), and with reference to either or both the Series C Initiating Holders
and/or the Non-Series C Initiating Holders, the "Initiating Holders")" and (iii)
to amend and restate subsection (C) thereof to read in its entirety as follows:
(C) After the Company has effected two such registrations pursuant to
this Section 1.5, one such registration at the request of the
Non-Series C Initiating Holders and one such registration at the
request of the Series C Initiating Holders, which registrations have
been declared or ordered effective and pursuant to which the securities
have been sold; or
4. Additional Information and Rights. Section 2.2(a) of the Original
Agreement is hereby amended to add the words "to such Holder" after the word
"issued" therein.
5. Termination of Financial Information Rights. Section 2.3 of the Original
Agreement is hereby amended to delete the term "Series B" and the number
"$15,000,000" therein and substitute therefor the term "Series C" and the number
"$30,000,000," respectively.
6. Employee and Other Stock Agreements. Section 2.5(a)(ii) of the Original
Agreement is hereby amended to delete the number "380,000" and substitute
therefor the number "680,000."
7. Section 2.16 of the Original Agreement is hereby amended to add the
words "to such Holder" after the word "issued" therein.
8. Waiver of Antidilution Adjustment. Section 3.6 of the Original Agreement
is hereby amended to delete the words "Series B Shares" in subsection (a)(3),
(b), (c) and (d) thereof and substitute therefor the words "Series A Shares,
Series B Shares or Series C Shares."
9. Successors and Assigns; Assignment of Rights. Section 4.2 of the
Original Agreement is hereby amended to add at the end of the first sentence
thereof the following:
;provided that the registration rights of a Holder of any Registrable
Securities, as described in Sections 1.5 through 1.15 hereof, may be
transferred or assigned only to a transferee or assignee who (i)
acquires at least 500,000 shares of Registrable Securities, (ii) is
already a Holder of Registrable Securities and already possesses such
registration rights, (iii) acquires ten percent (10%) or more of the
outstanding capital stock of the Company and the Company is given prior
written notice thereof or (iv) is a transferee described in Section
1.4(A), (B), (C), (D) or (E) hereof.
10. Entire Agreement; Amendment; Waiver. Section 4.3 is hereby amended to
add at the end of the second sentence thereof the following:
provided that no such amendment, waiver, discharge or termination may
amend or modify the provisions of this Section 4.3, amend, modify or
terminate the amount of the Series C Liquidation Value (as such term is
defined in the Restated Certificate) or the respective rights of the
holders of the Series C Shares relating thereto, or subordinate the
rights of the holders of the Series C Shares to the holders of any
other class or series of capital stock of the Company in existence on
the date hereof, in any such case without the prior written consent of
each holder of the Series C Shares.
11. Joinder. The Additional Purchasers hereby agree to be bound by and
subject to the terms and conditions of the Original Agreement and the parties
hereto agree that the Additional Purchasers shall be entitled to all of the
rights and benefits of the Purchasers under the Original Agreement.
12. Governing Law. This Agreement shall be governed in all respects by the
laws of the State of Delaware, as applied to agreements among Delaware residents
entered into and to be performed entirely within Delaware.
13. Effective Date. In accordance with the terms of the Original Agreement,
this Agreement will become effective upon execution by the Company and the
holders of at least fifty one percent (51 %) of the Preferred Shares.
14. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Investors'
Rights Agreement effective as of the day and year first above written.
THE COMPANY: ESPERION THERAPEUTICS, INC.
By: /s/ Xxxxx Xxxxxx
-----------------------------------
Name: Xxxxx Xxxxxx
Title: President and CEO
THE PURCHASERS: CANAAN EQUITY II L.P.
By: Canaan Equity Partners II LLC,
Its Member/Manager
By:
-----------------------------------
Name:
Title:
TL VENTURES III L.P.
By: TL VENTURES III Management L.P.,
its general partner
By: TL VENTURES III LLC,
its general partner
By:
------------------------------
Name:
Title: Managing Director
TL VENTURES III OFFSHORE L.P.
By: TL VENTURES III Offshore
Partners L.P.,
its general partner
By: TL VENTURES III Offshore Ltd.,
its general partner
By:
------------------------------
Name:
Title: Vice President
TL VENTURES III INTERFUND L.P.
By: TL VENTURES III LLC,
its general partner
By:
------------------------------
Name:
Title:
TL VENTURES IV L.P.
By: TL VENTURES IV Management L.P.,
its general partner
By:
------------------------------
Name:
Title:
TL VENTURES IV INTERFUND L.P.
By: TL VENTURES IV LLC,
its general partner
By:
------------------------------
Name:
Title:
OAK INVESTMENT PARTNERS VII, LIMITED
PARTNERSHIP
By: OAK ASSOCIATES VII, LLC
Its General Partner
By:
------------------------------
A Member
OAK AFFILIATES FUND, LIMITED
By: OAK VII AFFILIATES, LLC
Its General Partner
By:
------------------------------
A Member
TECNO VENTURE MANAGEMENT
By:
------------------------------
A Member
AVALAON INVESTMENTS
By:
------------------------------
A Member
HEALTHCAP KB
By: HealthCap AB
its general partner
By: /s/ Bjorn Odlander
------------------------------
Bjorn Odlander
Director
By: /s/ Xxxxx Xxxxxxxxxx
------------------------------
Xxxxx Xxxxxxxxxx
Director
HEALTHCAP COINVEST KB
By: HealthCap AB
its general partner
By: /s/ Bjorn Odlander
------------------------------
Bjorn Odlander
Director
By: /s/ Xxxxx Xxxxxxxxxx
------------------------------
Xxxxx Xxxxxxxxxx
Director
/s/ Xxxxxx Xxxxxxx
------------------------------
Xxxxxx Xxxxxxx, M.D.
/s/ Lennart Philipsson
------------------------------
Lennart Philipsson
/s/ Xxxxx Xxxxxx
------------------------------
Xxxxx Xxxxxx, Ph.X.
XXXXXX INVESTMENT HOLDINGS II, L.L.C.
By: /s/ Xxxxx X. Xxxxxx
------------------------------
Xxxxx X. Xxxxxx
Managing Member
/s/ Xxxxxx Xxxxxxx
------------------------------
Xxxxxx Xxxxxxx
/s/ Xxxxxx Xxxxxxxxx
------------------------------
Xxxxxx Xxxxxxxxx, M.D.
/s/ Xxxx X. Xxxxxxx
------------------------------
Xxxx X. Xxxxxxx
SCHEDULE OF PURCHASERS
--------------------------------------------------------------------------------
Purchaser's Name No. of Cash Consideration
---------------- ------ ------------------
and Address Series C Shares
--------------------------------------------------------------------------------
Canaan Equity II, L.P. 2,280,093 $4,925,000.88
000 Xxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
--------------------------------------------------------------------------------
Xxxx X. Xxxxxxx 34,722 74,999.52
0000 Xxxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxx Xxxx, Xxxxx Xxxxxxxx 00000
--------------------------------------------------------------------------------
TL Ventures III, L.P. 1,491,055 3,220,678.80
000 Xxxxxxxxx Xxxxxxxx
000 Xxxxx Xxxx Xxxxx
Xxxxx, Xxxxxxxxxxxx 00000-0000
--------------------------------------------------------------------------------
TL Ventures III Offshore L.P. 312,110 674,157.80
000 Xxxxxxxxx Xxxxxxxx
000 Xxxxx Xxxx Xxxxx
Xxxxx, Xxxxxxxxxxxx 00000-0000
--------------------------------------------------------------------------------
TL Ventures III Interfund L.P. 48,687 105,163.92
000 Xxxxxxxxx Xxxxxxxx
000 Xxxxx Xxxx Xxxxx
Xxxxx, Xxxxxxxxxxxx 00000-0000
--------------------------------------------------------------------------------
TL Ventures IV L.P. 902,088 1,948,510.08
000 Xxxxxxxxx Xxxxxxxx
000 Xxxxx Xxxx Xxxxx
Xxxxx, Xxxxxxxxxxxx 00000-0000
--------------------------------------------------------------------------------
TL Ventures IV Interfund L.P. 23,838 51,490.08
000 Xxxxxxxxx Xxxxxxxx
000 Xxxxx Xxxx Xxxxx
Xxxxx, Xxxxxxxxxxxx 00000-0000
--------------------------------------------------------------------------------
Oak Investment Partners VII, LP 1,806,481 3,901,998.96
0 Xxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
--------------------------------------------------------------------------------
Oak VII Affiliates Fund, LP 45,371 98,001.36
0 Xxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
--------------------------------------------------------------------------------
Tecno Venture Management 1,851,852 4,000,000.32
000 Xxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxxxxxxx 00000
--------------------------------------------------------------------------------
Avalon Investments 1,157,408 2,500,001.28
000 Xxxx Xxxx Xxxxxx
Xxx Xxxxx, Xxxxxxxx 00000
--------------------------------------------------------------------------------
HealthCap KB 583,335 1,260,003.60
x/x Xxxxxxxx, Xxxxxxxxxx & Xx. XX
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Xxxxxxxxxx 00
X-X 000 00 Xxxxxxxxx, Xxxxxx
--------------------------------------------------------------------------------
HealthCap CoInvest KB 805,554 1,739,996.64
x/x Xxxxxxxx, Xxxxxxxxxx & Xx. XX
Xxxxxxxxxx 00
X-X 000 00 Xxxxxxxxx, Xxxxxx
--------------------------------------------------------------------------------
Xxxxxx Xxxxxxx 462,963 1,000,000.08
Institute of Pharmacological Sciences
Xxx Xxxxxxxxxx 0
00000 Xxxxxx
Xxxxx
--------------------------------------------------------------------------------
Lennart Philipsson 102,315 221,000.40
Karolinska Institute
Department of Cell and Molecular
Biology
von Eulers vag 3
XX-00000 Xxxxxxxxx
--------------------------------------------------------------------------------
Xxxxx Xxxxxx 95,741 0
c/o Esperion Therapeutics Inc.
0000 Xxxxx Xxxxx Xxxxxx
000 XXX Xxxxx
Xxx Xxxxx, Xxxxxxxx 00000
--------------------------------------------------------------------------------
Xxxxxx Investment Holdings II, LLC 46,296 99,999.36
000 Xxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
--------------------------------------------------------------------------------
Xxxxxx Xxxxxxx 31,673 0
000 Xxxxxx Xxxxx
Xxxxxxxxxxx, Xxx Xxxxxx
--------------------------------------------------------------------------------
Xxxxxx Xxxxxxxxx 23,149 50,001.84
00 Xxxxx Xxx
Xxxxxxx, Xxxxxxxxxxx 00000
--------------------------------------------------------------------------------
TOTALS 12,104,731 25,871,004.72
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