EX-10.4



 Exhibit 10.4 

LOCK-UP AGREEMENT 

This LOCK-UP AGREEMENT, as may be amended, supplemented or modified from time to time in accordance with the terms hereof, is made as
September 21, 2015 (this “Agreement”) by and between TransEnterix, Inc., a Delaware corporation (the “Company”) and SOFAR, S.p.A., an Italian societa’ per azioni (the “Investor”).

 WHEREAS, the Company and the Investor have entered into that certain Purchase Agreement pursuant to which the Company acquired all of the
membership interests of the entity to which Investor had conferred its medical robotic division related to the advanced robotic system for minimally invasive laparoscopic surgery known as TELELAP ALF-X (the “Transaction”); 

WHEREAS, in consideration for the acquisition of all of the issued and outstanding membership interests of VULCANOS S.r.l., an Italian
societa’ a responsabilita’ limitata solely owned by the Investor, the Company has issued to the Investor shares of the Company’s common stock, par value $0.001 per share, equal to or less than 19.99% of the outstanding shares
of the Company (the “Shares”) as a transaction under Regulation S; and 
 WHEREAS, as a condition and inducement to the
Company entering into the Transaction and incurring the obligations set forth therein, the Investor agrees to be bound by the covenants contained in this Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  

	1.	Definitions and Interpretation. 

  

	 	(a)	Certain Definitions. As used in this Agreement, the following terms have the meanings indicated: 


“Agreement” has the meaning set forth in the Preamble. 

“Affiliate” means any Person who is an “affiliate” as defined in Rule 12b-2 promulgated under the Exchange Act.

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

“Business Day” means a day other than a Saturday, Sunday or other day on which banks located in New York, New York are
authorized or required by law to close. 
 “Closing Date” shall mean the date as of which the Transaction has been
consummated. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Shares” has the meaning set forth in the Recitals, provided, however, that for the avoidance of doubt Shares
shall not include shares of the Company’s common stock acquired by the Investor in the open market or in any other private placement transaction occurring after the Closing Date. 







 “Escrow Agreement” means the Escrow Agreement entered into among the Investor,
the Company and the Escrow Agent in connection with the Purchase Agreement. 
 “Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 “Investor” has the meaning set forth in
the Preamble. 
 “Lock-up Period,” means each of (i) the period commencing on the Closing Date to and including the
date that is twelve (12) months following the Closing Date (the “First Lock-up Period”); (ii) the period commencing on the Closing Date to and including the date that is
eighteen (18) months following the Closing Date (the “Second Lock-up Period”); and (iii) the period commencing on the Closing Date to and including the date that is twenty-four (24) months following the Closing Date
(the “Third Lock-up Period”). 
 “Permitted Transfer” has the meaning set forth in Section 2(c). 

“Person” means any individual, firm, corporation, partnership, limited liability company, trust, incorporated or
unincorporated association, joint venture, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind, and shall include any successor (by merger or otherwise) of such entity. 

“Purchase Agreement” means that certain Membership Interest Purchase Agreement, dated as of September 18, 2015, among
the Company, the Investor and other parties signatory thereto. 
 “SEC” means the U.S. Securities Exchange Commission, or
any successor entity thereto. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder. 
 “Transfer” means, with respect to the Shares, the offer for sale, sale, sale of any
option or contract to purchase, purchase of any option or contract to sell, grant of any option, right or warrant to purchase, or other transfer or disposition or encumbrance (or any transaction or device that is designed to or could be expected to
result in the transfer or the disposition by any Person at any time in the future), whether directly or indirectly, of such Shares, and shall include the entering into of any swap, hedge or other derivatives transaction or other transaction that
transfers to another, in whole or in part, any rights, economic benefits or consequences, or risks of ownership, including by way of settlement by delivery of such Shares or other securities in cash or otherwise or transferring, by gift or
otherwise, any of the Shares to owners of the Investor; provided, however, that Transfer shall not include (a) any transfer to an Affiliate of the Investor provided that such transferee agrees to be bound by the
terms and restrictions of this Agreement, or (b) any pledge of, or the granting of any Encumbrance (as defined in the Purchase Agreement) on, the Shares, it being understood that the Investor shall be permitted to use all or any portion of the
Shares to secure the Investor’s payment and performance of any of its 

  
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obligations to a third party; provided, further, however, that (i) such third party must acknowledge in writing to the Company that it takes such Encumbrance subject to
all restrictions in this Agreement and, for as long as the Investor is subject to the restrictions imposed on the sale of any of the Shares by an affiliate of the Company, to the applicable U.S. securities law obligations regarding any sale of the
Shares pledged, and (ii) the right to pledge the Shares or otherwise create a Encumbrance applies to the Investor and not to any Affiliate to whom Shares may be transferred under clause (a) of this definition. 

 

	 	(b)	Interpretation. Unless otherwise noted: 

  

	 	(i)	All references to laws, rules, regulations and forms in this Agreement shall be deemed to be references to such laws, rules, regulations and forms, as amended from time to time or, to the extent replaced, the comparable
successor thereto in effect at the time. 

  

	 	(ii)	All references to agencies, self-regulatory organizations or governmental entities in this Agreement shall be deemed to be references to the comparable successor thereto. 


 

	 	(iii)	All references to agreements and other contractual instruments shall be deemed to be references to such agreements or other instruments as they may be amended from time to time. 


 

	 	(iv)	Whenever the words “include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 


 

	 	(v)	All references to “50% of all Shares” or “75% of all Shares” shall be deemed to mean 50% or 75% (as the case may be) of the number of Shares issued to the Investor in connection with the consummation
of the Transaction, adjusted in each case for any stock split, stock dividend, recapitalization, reorganization or similar event that occurs after the date of this Agreement. 


 

	2.	Transfers. During the applicable Lock-up Period, Transfers of the Shares shall not be permitted except: (i) as approved by the Board of Directors, (ii) as conducted in accordance with this
Section 2, or (iii) as set forth in Section 3: 

  

	 	(a)	The Investor agrees not to Transfer any portion of the Shares during the First Lock-up Period. 

  

	 	(b)	 The Investor agrees that, except as otherwise provided in Section 2(c), it may Transfer (i) no more than fifty percent (50%)of all Shares in
the aggregate , from the period beginning on the first calendar day following the end of the First Lock-up Period until the last calendar day of the Second Lock-up Period; and (ii) no more than seventy-five percent (75%)of all Shares in the
aggregate (including with any Shares transferred in any prior Lock-up Period), from the period beginning on the first calendar day following the end of the Second Lock-up 



  
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Period until the last calendar day of the Third Lock-up Period. The transfer restrictions set forth in this Agreement shall cease to apply commencing on the first calendar day immediately
following the last day of the Third Lock-up Period unless earlier terminated as provided in Section 2(c). 

  

	 	(c)	Notwithstanding the foregoing, the limitation on Transfers contained in Sections 2(a) and 2(b) shall immediately terminate upon (x) the announcement by any third party of an offer to acquire at least 51% of the
issued and outstanding shares of the Company’s common stock; (y) the entry by the Company into an agreement for the sale of at least 51% of the Company’s common stock or assets to, or the merger or consolidation with, a third party;
or (z) if one of Second Tranche or Third Tranche of the Purchase Price (as defined in the Purchase Agreement) has not yet been paid to the Investor, the date on which there is a decrease in the trading price of the Company’s common stock
to a closing price below U.S. $1.50 per share for at least thirty (30) consecutive Trading Days (as defined in the Purchase Agreement), it being understood that any relief of the Investor from the foregoing restrictions pursuant to clause
(z) shall not relieve the Company from its obligations to pay the Second Tranche and the Third Tranche 3 of the Purchase Price, (each, a “Restrictions Release Event”). 


 

	 	(d)	Notwithstanding the foregoing, the provisions of this Agreement shall have no effect on the obligations under the Escrow Agreement, and the impact of the Escrow Agreement shall control with respect to any Shares covered
by the Escrow Agreement. 

  

	3.	Permitted Transfers; No Effect of Transfers. 

  

	 	(a)	The Investor shall be entitled to transfer the Shares to the equity holders of the Investor upon a dissolution of the Investor, or other transaction involving a reorganization of the Investor; provided,
however, the Company’s consent is required prior to any such Transfer, which consent shall not be unreasonably withheld (a “Permitted Transfer”). No Transfer shall be deemed a Permitted Transfer hereunder unless and
until at the time of such Transfer, such transferee executes and delivers to the Company a joinder agreement in form and substance attached as Exhibit A hereto, to evidence its agreement to be bound by, and to comply with, this Agreement.


  

	 	(b)	No Transfer of any Shares in violation of any provision of this Agreement will be effective to pass any title to, or create any interest in favor of, any Person. If Investor intentionally and knowingly attempts to so
effect a Transfer in violation of this Agreement, Investor will be deemed to have committed a material breach of its obligations to the Company hereunder. 


  
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	4.	Restrictive Legend; Stop Transfer Instruction. 

  

	 	(a)	Certificates representing the Shares issued on or after the Closing Date must bear the following legend: 


“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK- UP AGREEMENT BETWEEN THE OWNER OF SUCH SECURITIES OF TRANSENTERIX,
INC. AND THE COMPANY THAT MATERIALLY RESTRICTS THE TRANSFERABILITY OF THE SECURITIES. BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID
AGREEMENT. A COPY OF THE AGREEMENT IS ON FILE WITH THE SECRETARY OF TRANSENTERIX, INC.” 
  

	 	(b)	In order to ensure compliance with the provisions contained herein, the Investor agrees that the Company may issue appropriate “stop transfer” certificates or instructions with the Company’s transfer
agent and registrar against the transfer of the Investor’s Shares, or otherwise make adequate provision to restrict the transferability of the Shares, in the event of a transfer other than in compliance with the provisions of this Agreement and
that it may make appropriate notations to the same effect in its records. 

  

	 	(c)	The Company shall, as promptly as practicable after receipt of the certificates representing the Shares from the Investor, cause the legend set forth in Section 4(a) to be removed from the certificates representing
Shares, and shall immediately revoke the “stop transfer” instructions described in Section 4(b) with respect to Shares, as and when such Shares cease to be subject to the limitations on Transfer imposed by this Agreement (whether
pursuant to Section 2(b) and 2(c) of this Agreement or upon termination of this Agreement pursuant to Section 6 hereof). 

  

	5.	Successors and Assigns; Third Party Beneficiaries. The Investor understands that this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties hereto as
provided herein. No Person other than the parties hereto and their successors and permitted assigns is intended to be a beneficiary of this Agreement. This Agreement shall not be assigned by the Company except as provided herein. The Company shall
cause any successor or assign (whether by merger, consolidation, sale of assets, recapitalization, reorganization or otherwise) to assume this Agreement as a condition to any such transaction. 


 

	6.	Termination. This Agreement shall automatically terminate and be of no further force or effect upon the earlier to occur of (a) the first Business Day following the expiration of the Third Lock-up Period,
and (b) as provided in Section 2(c) on a Restriction Release Event; except that Section 3(b), 4(c) and Sections 5 through 20 of this Agreement shall survive termination under this Section 6. 


 

	7.	Remedies. The Investor and the Company, in addition to being entitled to exercise all rights granted by law, shall be entitled to specific performance of their rights under this Agreement. The Company and the
Investor agree that monetary damages would not be adequate compensation for any loss incurred by reason of breach of the provisions of this Agreement and hereby agree to waive in any action for specific performance the defense that a remedy at law
would be adequate or that there is need for a bond. 


  
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	8.	Notices. All notices, demands and other communications provide for or permitted hereunder shall be made in writing and shall be made by registered or certified first-class mail, return receipt requested,
telecopy, electronic transmission, courier service or personal delivery: 

  

	 	(a)	If to the Company: 

 TransEnterix, Inc. 

635 Davis Drive 
 Suite 300 

Morrisville, NC 27560 
 Telecopy
No.: 919-765-8459 
 Attention: Todd Pope 

Email: tpope@transenterix.com 

With a copy to: 
 Ballard Spahr
LLP 
 1735 Market Street, 51st Floor 

Philadelphia, PA 19103 
 Telecopy:
(215) 864-8999 
 Attention: Mary J. Mullany 

Email: mullany@ballardspahr.com 
  

	 	(b)	If to the Investor: 

 SOFAR, S.p.A 

Via Firenze 40 
 20060 Trezzano
Rosa (MI), Italy 
 Fax: 02-90967239 

Phone: 02-9093621 
 With a copy
to: 
 Stefano Candela 

Franzosi Dal Negro Setti 
 Via
Brera, 5 
 20121 Milan, Italy 

Fax: 02-80299259 
 Phone:
02-85909220 
  

	 	(c)	If to any transferee, as set forth in the applicable joinder agreement. 

 All such notices,
demands and other communications shall be deemed to have been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by international commercial courier service; five Business Days after being deposited
in the mail, postage prepaid, if mailed; and when receipt is acknowledged, if telecopied or electronically transmitted. Any party to be given notice in accordance with this section may designate another address or Person for receipt of notices
hereunder. 

  
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	9.	Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 


 

	10.	Governing Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under
applicable principles of conflict of laws. Each of the parties (a) irrevocably submits itself to the personal jurisdiction of each state or federal court sitting in the State of Delaware, as well as to the jurisdiction of all courts to which an
appeal may be taken from such courts, in any suit, action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated herein, (b) agrees that every such suit, action or proceeding shall be brought, heard
and determined exclusively in the Court of Chancery of the State of Delaware (provided that, in the event subject matter jurisdiction is unavailable in or declined by the Court of Chancery, then all such claims shall be brought, heard
and determined exclusively in any other state or federal court sitting in the State of Delaware), (c) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such court,
(d) agrees not to bring any suit, action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated herein in any other court, and (e) waives any defense of inconvenient forum to the maintenance of
any suit, action or proceeding so brought. 

  

	11.	WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT KNOWINGLY AND VOLUNTARILY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

  

	12.	Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 


 

	13.	Rules of Construction. Unless the context otherwise requires, references to sections or subsections refer to sections or subsections of this Agreement. Terms defined in the singular have a comparable meaning when
used in the plural, and vice versa. 

  

	14.	Interpretation. The parties hereto acknowledge and agree that (a) each party hereto and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision,
(b) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement and (c) the terms and provisions of this Agreement shall be construed
fairly as to all parties hereto, regardless of which party was generally responsible for the preparation of this Agreement. 


  
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	15.	Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto
with respect to the subject matter contained herein. There are no restrictions, promises, representations, warranties or undertakings with respect to the subject matter contained herein, other than those set forth or referred to herein. This
Agreement supersedes all prior agreements and understandings among the parties with respect to such subject matter. 

  

	16.	Further Assurances. Each of the parties shall execute such documents and perform such further acts as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement.


  

	17.	Other Agreements. Nothing contained in this Agreement shall be deemed to be a waiver of, or release from, any obligations any party hereto may have under, or any restrictions on the transfer of securities of the
Company imposed by any other agreement. 

  

	18.	Counterparts; Facsimile Signatures. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement. Facsimile or other electronically scanned and transmitted signatures, including by email attachment, shall be deemed originals for all purposes of this Agreement.


  

	19.	Amendments and Waivers. The terms of this Agreement may be amended and the observance of any term hereof may be waived only by consent of the Company and the Investor. 


 

	20.	Stock Splits, Stock Dividends & Other Issuances. In the event of any issuance of Company common stock hereafter to the Investor (including, without limitation, in connection with any stock split, stock
dividend, recapitalization, reorganization or the like) such shares shall become subject to this Agreement and shall be endorsed with the legend set forth in Section 4 of this Agreement to the extent that such shares are then subject to the
restrictions on Transfer imposed by this Agreement. 

 [Remainder of page intentionally left blank.] 

  
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 IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Lock-Up
Agreement on the date first written above. 
  

			
	TRANSENTERIX, INC.
		
	By:	 	 /s/ Todd M. Pope

	Name:	 	 Todd Pope

	Title:	 	 Chief Executive Officer

	
	SOFAR, S.P.A.
		
	By:	 	 /s/ Andrea Biffi

	Name:	 	 Andrea Biffi

	Title:	 	 Chief Executive Officer



 [Signature Page to Lock Up Agreement] 







 Exhibit A 

Form of Joinder 

Agreement 

ACKNOWLEDGMENT AND 

AGREEMENT 

Joinder to Lock-Up Agreement Relating to TransEnterix, Inc. Common Stock 

WHEREAS, the undersigned (the “Transferee”) wishes to receive from SOFAR, S.p.A., an Italian societa’ per azioni
(the “Transferor”)                  shares, par value $0.001 per share, of common stock (the “Common Stock”) of TransEnterix, Inc., a
Delaware corporation (the “Company”); 
 WHEREAS, the Common Stock is subject to that certain Lock-Up Agreement, dated as
of September 21, 2015 and as further amended from time to time (the “Agreement”), by and between the Company and Transferor. Capitalized terms used herein and not otherwise defined are given the meaning assigned to such terms
in the Agreement; 
 WHEREAS, the Transferee has been given a copy of the Agreement and afforded ample opportunity to read it, and the
Transferee is thoroughly familiar with its terms; and 
 WHEREAS, pursuant to the terms of the Agreement, the Transferor may not Transfer
all or any portion of the Transferor’s Common Stock unless in compliance with the Agreement and in accordance with Section 2 and Section 3 thereof. This Acknowledgment and Agreement constitutes a joinder agreement as contemplated by
Section 3(a) of the Agreement. 
 NOW, THEREFORE, in consideration of the mutual premises contained herein and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and to induce the Transferor to transfer such Common Stock to the Transferee and the Company to permit such transfer, the Transferee does hereby acknowledge and
agree that (i) the Transferee has been given a copy of the Agreement and ample opportunity to read it, and is thoroughly familiar with its terms, (ii) the shares of Common Stock are subject to the terms and conditions set forth in the
Agreement and (iii) the Transferee shall become a party to the Agreement and shall be fully bound by, and subject to, all of the covenants, terms and conditions of the Agreement as though an original party thereto. 

[Remainder of page intentionally left blank.] 

  
 A-1 








 Signed this      day of
            , 20    , 
  

			
	TRANSFEREE
		
	By:	 	  

	Name:	 	
	Title:	 	


 [Signature Page to Joinder Agreement]