Document:

Prepared by R.R. Donnelley Financial -- Form of Registration Rights Agreement

 EXHIBIT 10.6 
  
 REGISTRATION RIGHTS AGREEMENT 
  

This Registration Rights Agreement (this “Agreement”) is made and entered into as of August
            , 2003, by and among Cardima, Inc., a Delaware corporation (the “Company”), and the investors signatory hereto (each a “Purchaser” and
collectively, the “Purchasers”). 
  
 This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof among the Company and the Purchasers (the “Purchase Agreement”). 
  
 The Company and the Purchasers hereby agree as follows: 
  
 1. Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement
shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 
  
 “Effectiveness Date” means, with respect to the initial Registration Statement required to be filed hereunder, the
earlier of (a) the 90th calendar day following the Closing Date and (b) the fifth Trading Day following the date on which the Company is notified by the Commission that such Registration Statement will not be reviewed or is no longer subject to
further review and comments and with respect to any additional Registration Statements required pursuant to Section 2(c), the earlier of (x) the 60th calendar day following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement is required hereunder and (y) the fifth Trading Day
following the date on which the Company is notified by the Commission that such Registration Statement will not be reviewed or is no longer subject to further review and comments. 
  
 “Effectiveness Period” shall have the meaning set forth in Section 2(a). 
  
 “Filing Date” means, with respect to the
initial Registration Statement required to be filed hereunder, the 30th calendar day following the Closing Date and,
with respect to any additional Registration Statements which may be required pursuant to Section 2(c), the 30th
calendar day following the date on which the Company first knows, or reasonably should have known that such additional Registration Statement is required hereunder. 
  
 “Holder” or “Holders” means the holder or holders, as the case may be,
from time to time of Registrable Securities. 
  
 “Indemnified Party” shall have the meaning set forth in Section 5(c). 
  
 “Indemnifying Party” shall have the meaning set forth in Section 5(c). 
  
 “Losses” shall have the meaning set forth
in Section 5(a). 

 “Proceeding” means an action, claim, suit, investigation or proceeding
(including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened. 
  
 “Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that
includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by
reference or deemed to be incorporated by reference in such Prospectus. 
  
 “Registrable Securities” means the Shares, together with any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the
foregoing. 
  
 “Registration
Statement” means the registration statements required to be filed hereunder, including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 
  
 “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
  
 “Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Shares” solely for the purpose of this
Agreement means the Shares (as defined in the Purchase Agreement) together with the Warrant Shares issuable upon exercise of the Warrants. 
  
 2. Registration. 
  
 (a) On or prior to each Filing Date, the Company shall use commercially reasonable efforts to prepare and file with the Commission a
Registration Statement covering the resale of all of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415. A Registration Statement required hereunder shall be on Form S-3 (except if the Company is not
then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance herewith). Each Registration Statement required 
  

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hereunder shall contain (except if otherwise directed by the Holders) the “Plan of Distribution” attached hereto as Annex A. The
Company shall use commercially reasonable efforts to cause such Registration Statement to become effective and remain effective as provided herein. The Company shall use commercially reasonable efforts to cause each Registration Statement to be
declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event not later than the Effectiveness Date, and shall use commercially reasonable efforts to keep such Registration Statement continuously
effective under the Securities Act until the date when all Registrable Securities covered by such Registration Statement have been sold or may be sold without volume restrictions pursuant to Rule 144(k) as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent (the “Effectiveness Period”). 
  
 (b) If: (i) a Registration Statement is not filed on or prior to its Filing Date (if the Company files a
Registration Statement without affording the Holder the opportunity to review and comment on the same as required by Section 3(a), the Company shall not be deemed to have satisfied this clause (i)), or (ii) the Company fails to file with the
Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that a
Registration Statement will not be “reviewed,” or not subject to further review, or (iii) prior to the date when such Registration Statement is first declared effective by the Commission, the Company fails to file a pre-effective amendment
and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement within ten Trading Days after the receipt of comments by or notice from the Commission that such amendment is required in order for a
Registration Statement to be declared effective, or (iv) a Registration Statement filed or required to be filed hereunder is not declared effective by the Commission on or before the Effectiveness Date, or (v) after a Registration Statement is first
declared effective by the Commission, it ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective, or the Holders are not permitted to utilize the Prospectus therein to resell
such Registrable Securities, for in any such cases ten Trading Days (which need not be consecutive days) in the aggregate during any 12-month period (any such failure or breach being referred to as an “Event,” and for purposes of
clause (i) or (iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which such five Trading Day period is exceeded, or for purposes of clauses (iii) the date which such ten Trading Day period is exceeded, or for
purposes of clause (v) the date on which such ten Trading Day period is exceeded being referred to as “Event Date”), then in addition to any other rights the Holders may have hereunder or under applicable law: (x) on each such Event
Date the Company shall pay to each Holder an amount in cash, as liquidated damages and not as a penalty, equal to 1% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement for any Registrable Securities then held by
such Holder; and (y) on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as liquidated
damages and not as a penalty, equal to 1% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement for any Registrable Securities then held by such 

  

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Holder. If the Company fails to pay any liquidated damages pursuant to this Section in full within seven days after the date payable, the Company will pay
interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such liquidated damages are due until such amounts, plus all such interest
thereon, are paid in full. 
  
 (c) If during the
Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable but in any case
prior to the applicable Filing Date, an additional Registration Statement covering the resale of by the Holders of not less than 100% of the number of such Registrable Securities. 
  
 3. Registration Procedures 
  

In connection with the Company’s registration obligations hereunder, the Company shall: 
  
 (a) Not less than three Trading Days prior to the filing of
a Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall, (i) furnish to the Holders copies of all such documents proposed to be filed (including documents incorporated or deemed incorporated by
reference to the extent requested by such Person) which documents will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be
necessary, in the reasonable opinion of respective counsel to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements
thereto to which the Holders of a majority of the Registrable Securities shall reasonably object. 
  
 (b) (i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional
Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or
amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible, and in any event within fifteen days, to any comments received from the Commission with respect to a Registration Statement or any amendment thereto and, as
promptly as reasonably possible, upon request, provide the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance with the intended methods of disposition by the Holders thereof set

  

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forth in a Registration Statement as so amended or in such Prospectus as so supplemented. 
  
 (c) Notify the Holders of Registrable Securities to be sold l as promptly as reasonably possible (and, in
the case of (i)(A) below, not less than three Trading Days prior to such filing) and (if requested by any such Person) confirm such notice in writing promptly following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “review” of a Registration Statement and whenever the Commission comments in writing on such Registration
Statement (the Company shall upon request provide true and complete copies thereof and all written responses thereto to each of the Holders); and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become
effective; (ii) of any request by the Commission or any other Federal or state governmental authority during the period of effectiveness of a Registration Statement for amendments or supplements to a Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or
any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus
or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 (d) Use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 
  
 (e) Furnish to each Holder, without charge, at least one
conformed copy of each Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Person, and all
exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission. 
  

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 (f) Promptly deliver to each Holder, without charge, as many copies of the Prospectus or
Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the
selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 
  
 (g) Prior to any public offering of Registrable Securities, use commercially reasonable efforts to register or qualify or cooperate with
the selling Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the
United States as any Holder reasonably requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary or
advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is
not then so qualified, subject the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such jurisdiction. 
  
 (h) Cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all
restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request. 
  
 (i) Upon the occurrence of any event contemplated by Section 3(c), as promptly as reasonably possible, prepare a supplement or amendment,
including a post-effective amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter
delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (ii) through (v) of Section 3(c) above to suspend the use of the use of any Prospectus until the requisite changes to such
Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company shall be
entitled to exercise its right under this Section 3(i) to suspend the availability of a Registration Statement and Prospectus, subject to the payment of liquidated damages pursuant to Section 2(b), for a period not to exceed 60 days (which need not
be consecutive days) in any 12 month period. 
  
 (j) Comply with all applicable rules and regulations of the Commission. 
  

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 (k) The Company may require each selling Holder to furnish to the Company a certified
statement as to the number of shares of Common Stock beneficially owned by such Holder and, if requested by the Commission, the controlling person thereof. 
  
 4. Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by
the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (A) with respect to filings required to be made with the Trading Market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii)
printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable
Securities included in a Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi)
fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and
the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. 
  
 5. Indemnification 
  
 (a) Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, agents and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors,
agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and
expenses (collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions are based solely upon
information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the 

  

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Holder has approved Annex A hereto for this purpose) or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use
by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d). The Company
shall notify the Holders promptly of the institution, threat or assertion by any third party of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement. 
  
 (b) Indemnification by Holders. Each Holder shall,
severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and
the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or based solely upon: (x) such Holder’s failure to comply with
the prospectus delivery requirements of the Securities Act or (y) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (i) to the extent, but only to the
extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company specifically for inclusion in such Registration Statement or such Prospectus or (ii) to the extent that (1) such
untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this
purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d). In no event shall the liability of any selling Holder
hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. 
  
 (c) Conduct of Indemnification Proceedings. If any
Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally 
  

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determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have prejudiced the
Indemnifying Party. 
  
 An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding;
or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel for all Indemnified Parties
at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying
Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such
Proceeding. 
  
 All reasonable fees and expenses
of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party,
as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such
actions for which such Indemnified Party is not entitled to indemnification hereunder, determined based upon the relative faults of the parties. 
  
 (d) Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason of
public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or
omission. The amount paid or 
  

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payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys’
or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such
party in accordance with its terms. 
  
 The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such
Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission,
except in the case of fraud by such Holder. 
  
 The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 
  
 6. Miscellaneous 
  
 (a) Remedies. In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company
and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate. 
  
 (b) No Piggyback on Registrations. Except as set forth on Schedule 6(b) attached hereto, neither the Company nor any of its
security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in a Registration Statement other than the Registrable Securities, and the Company shall not after the date hereof enter into any
agreement providing any such right to any of its security holders to include securities on the Registration Statement. The Company shall not file any other registration statement until after the Effective Date. 
  
 (c) Compliance. Each Holder covenants and agrees that
it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to a Registration Statement. 
  
 (d) Discontinued Disposition. Each Holder agrees by
its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence 
  

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of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration
Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus
may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop
orders to enforce the provisions of this paragraph. 
  
 (e) Piggy-Back Registrations. If at any time during the Effectiveness Period there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or
their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option or other employee benefit plans, then the Company
shall send to each Holder a written notice of such determination and, if within fifteen days after the date of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such
Registrable Securities such Holder requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights. 
  
 (f) Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and each Holder of the then outstanding Registrable Securities. 
  
 (g) Notices. Any and all notices or other
communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile number provided for below prior to 6:30 p.m. (New York City time) on a Trading Day, (ii) the Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number provided for
below later than 6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or
(iv) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be delivered and addressed as set forth in the Purchase Agreement 
  
 (h) Successors and Assigns. This Agreement shall
inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without the prior written consent
of each Holder. Each Holder may assign 
  

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their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement. 
  
 (i) Execution and Counterparts. This Agreement may be
executed in any number of 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. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof. 

 
 (j) Governing Law. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts of law thereof.
Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers,
shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of San Francisco, California. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of San Francisco, California for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of the any of
this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each
party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to
this Agreement or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party
for its attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
  
 (k) Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law. 

 
 (l) Severability. If any term, provision, covenant
or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect
and shall in no way be affected, impaired or 
  

 12 

 
invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and
restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
  
 (m) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof. 
  
 (n) Independent Nature of
Purchasers’ Obligations and Rights. The obligations of each Purchaser hereunder are several and not joint with the obligations of any other Purchaser hereunder, and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each
Purchaser shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for
such purpose. 
  
 ************************* 
  

 13 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

	CARDIMA, INC.
		
	 By:
  
	 	

	 	 	 Name:

	 	 	 Title:

  
 [SIGNATURE PAGE
OF HOLDERS FOLLOWS] 

 [SIGNATURE PAGE OF HOLDERS TO RRA] 
  

	 By:
  
	 	

	 	 	 Name:

	 	 	 Title:

  

 15 

 ANNEX A 
  
 Plan of Distribution 
  
 The Selling Stockholders and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of Common
Stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Stockholders may use any one or more of the following methods when
selling shares: 
  

	 	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

  

	 	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

  

	 	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	 	•	 	an exchange distribution in accordance with the rules of the applicable exchange; 

  

	 	•	 	privately negotiated transactions; 

  

	 	•	 	settlement of short sales; 

  

	 	•	 	broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share; 

  

	 	•	 	a combination of any such methods of sale; and 

  

	 	•	 	any other method permitted pursuant to applicable law. 

  
 The Selling Stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus. 
  
 Broker-dealers engaged by the Selling Stockholders may arrange for other
brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated. The
Selling Stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved. 
  
 The Selling Stockholders may from time to time pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act of 1933 
  

 16 

 
amending the list of Selling Stockholders to include the pledgee, transferee or other successors in interest as Selling Stockholders under this prospectus.

  
 The Selling Stockholders and any broker-dealers or agents that
are involved in selling the shares may be deemed to be “underwriters” within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. The Selling Stockholders have informed the Company that it does not have any agreement or understanding, directly or
indirectly, with any person to distribute the Common Stock. 
  
 The Company is required to pay all fees and expenses incident to the registration of the shares. The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act. 
  

 17 

 SCHEDULE 6(b) 
  

	 	1.	 	Please refer to Annex I—Disclosure Schedule to the Securities Purchase Agreement, Section 3.1(v)—Registration Rights. 

  
 All Shares sold under the same form of Purchase Agreement on any business day from August 13,
2003 through August 19, 2003, inclusive (such Purchase Agreements to be considered the same form despite differences in Date, Per Share Purchase Price, Warrant exercise price, and revisions to Section 4.11 after the August 13, 2003 form, and to be
limited to one such form of Purchase Agreement per day) shall be included on one Registration Statement. The Closing Date for purposes of this Agreement, with respect to Shares issued under any such Purchase Agreement dated August 13, 2003 through
August 19, 2003, inclusive, shall be August 19, 2003. 
  

 18Third Amended nd Restated Employee Agreement

 Exhibit (10)(bb) 
  
 THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
  
         THIS AGREEMENT, made this 15th day of June, 2003, by and between C-COR.net CORP., a Pennsylvania Business Corporation with its principal place of business at 60 Decibel Road, State
College, Pennsylvania (“Corporation”), 
  
 -AND-

  
         DAVID A. WOODLE, an
individual, of 110 Berwick Drive, Boalsburg, Pennsylvania 16827 (“Employee”). 
  
 BACKGROUND 
  
         A.    Employee has been employed by Corporation since July 20, 1998. Employee now serves as Corporation’s Chairman, President and Chief Executive Officer. 

 
         B.    Corporation and
Employee entered into an Amended and Restated Employment Agreement on September 14, 1999 and an Amendment to Employment Agreement on January 18, 2000 (the “Employment Contracts”). 
  
         C.    On June 18, 2002,
Corporation and Employee entered into a Second Amended and Restated Employment Agreement making amendments to the Employment Contracts and an Amended and Restated Change of Control Agreement. 
  
         D.    On November 13,
2002, Corporation and Employee entered into a First Amendment to the Amended and Restated Change of Control Agreement. 
  
         E.    Corporation and Employee desire to consolidate the documents referred to in Background Sections
C and D above into this Third Amended and Restated Employment Agreement. 
  
         NOW, THEREFORE, in consideration of the mutual promises contained herein, and intending to be legally bound thereby, the parties hereto agree as follows: 

 SECTION I 
  

Description of Employment 
  
         1.01.    Employment and Term. The term of Employee’s employment with Corporation commenced
on July 20, 1998 and shall extend to June 30, 2008 (the “Term”). 
  
         1.02.    Capacity. During the balance of the Term, Employee shall serve as Corporation’s Chairman, Chief Executive Officer and President, or in such other
offices or capacities as shall be determined by Corporation’s Board of Directors. Further, if elected by Corporation’s shareholders, Employee shall, without additional compensation therefor, serve as a member of Corporation’s Board of
Directors. 
  
         1.03.    Time and Efforts. During the Term, Employee shall diligently and conscientiously devote his best efforts and his full time and attention to the discharge of
his duties as Chairman, Chief Executive Officer and President and of such other duties as may be determined by the Board of Directors of Corporation. Employee acknowledges that during the period of his employment pursuant to this Agreement as the
Chairman, Chief Executive Officer and President of Corporation, he will not have any other employment or business affiliations without the prior approval of the Board of Directors of Corporation. 
  
 SECTION II 
  
 Compensation 
  
         2.01.    Salary.
During the period of Employee’s employment hereunder as Chairman, Chief Executive Officer and President (irrespective of such other offices or titles as may be held by Employee) the Corporation shall pay to Employee a salary at an annual rate
of Four Hundred Thousand and 00/100 ($400,000) Dollars, payable bi-weekly, for services rendered. The amount of Employee’s salary shall be reviewed annually by the Compensation Committee of the Board of Directors and may be adjusted as
determined by the committee. 
  
         2.02.    Business Expenses. Employee shall be reimbursed by Corporation for all reasonable expenses incurred in carrying out his employment duties or in otherwise
promoting the business of Corporation by presenting to the designated officer of Corporation an itemized expense account report with receipts attached. 
  

 2 

         2.03.    Incentive Compensation. During the
Term, Corporation shall include Employee as a participant under Corporation’s “Profit Incentive Plan.” Employee will be entitled to such awards as are declared from time to time by the Board of Directors under the terms of the
“Profit Incentive Plan.” 
  
         2.04.    Additional Retirement Benefit. Employee shall receive an annual additional retirement benefit of Fifty Thousand and 00/100 ($50,000.00) Dollars commencing
at Employee’s “retirement,” as defined below and continuing until Employee’s death. For this purpose “retirement” shall have the same definition as under the C-COR.net Corp. Incentive Plan. 
  
         2.05.    Life
Insurance Coverage. Corporation will provide to Employee group term life insurance in a face amount equal to three times the Employee’s salary. Changes in life insurance coverage will occur at the same time Employee’s salary is changed
pursuant to Section 2.01 hereof. 
  
         2.06.    Automobile Allowance. During the Term, Corporation shall pay Employee, on or about the first of each month, a monthly allowance of Eight Hundred and 00/100
($800.00) Dollars to be used to defray Employee’s automobile expenses. 
  
         2.07.    Financial and Tax Planning Reimbursement. Corporation agrees to reimburse Employee for expenses incurred in his personal financial and tax planning up to an
amount not exceeding One Thousand Five Hundred and 00/100 ($1,500.00) Dollars per year during the Term of this Agreement. 
  
         2.08.    Other Benefit Plans. Employee shall also be eligible to participate in
Corporation’s other fringe benefit plans, including both those plans presently existing and those which may in the future be adopted, in accordance with the terms and provisions of such plans. 
  
         2.09.    Vacation.
Employee shall be entitled to a reasonable amount of vacation but not less than three (3) weeks per year. 
  
         2.10.    Club Memberships. Corporation agrees to reimburse Employee for annual dues he is required to pay as a condition of membership at the
Centre Hills Country Club during the Term of this Agreement. 
  

 3 

         2.11.    Physical Examination. Corporation
agrees to reimburse Employee for the expense of an annual physical examination by a physician selected by Employee. 
  
 SECTION III 
  
 Intellectual Property 
  
         3.01.    Disclosure. Employee agrees to promptly and fully disclose to Corporation all inventions, improvements, original works of authorship, formulas, processes,
computer programs, techniques, know-how and data (hereinafter collectively referred to as “Inventions”), whether or not patentable or copyrightable, made or conceived or first reduced to practice or learned by Employee either alone or
jointly with others, whether during Employee’s regular hours of employment and directly or indirectly relating to or capable of being used for the benefit of Corporation’s business. Employee agrees, without compensation additional to that
provided for in Section II of this Agreement, to assign all rights in and to such Inventions to Corporation and to execute, at Corporation’s request, appropriate documents effectuating such assignments. 
  
         3.02.    Maintenance
of Records. Employee agrees to maintain accurate and current written records of all such Inventions, in the form of notes, sketches, drawings, or reports which shall be and will remain the property of and be available to Corporation at all
times. 
  
         3.03.    Provision of Assistance. Employee agrees, upon Corporation’s request, during and after the Term of employment set forth herein, to assist Corporation,
its attorneys, and nominees at its or their expense in preparing and prosecuting applications for letters patent on Inventions created by him and applications to register copyrights on inventions created by him providing, however, that time actually
spent by Employee at such work after termination of employment, at Corporation’s request, shall be paid for by Corporation at a reasonable rate, and that necessary expenses incurred by Employee in connection with Employee’s duties under
this paragraph shall be paid by Corporation. 
  
         3.04.    Previous Inventions. Employee expressly retains an interest in and title to Inventions patented or unpatented which Employee conceived prior to his Term of
employment with Corporation. 
  

 4 

 3.05.    Term of Obligations. Employee’s termination of employment by
Corporation under this Agreement shall not affect the obligations imposed on Employee by Paragraphs 3.01, 3.02 and 3.03 and such obligations shall be binding on Employee’s heirs, executors and administrators. 
  
 SECTION IV 
  
 Confidentiality and Noncompetition 
  
 4.01.    Confidentiality. Employee agrees, during
and after his Term of employment hereunder, without the prior written consent of Corporation, not to disclose to any person other than Corporation, by publication or otherwise, or use for his own benefit, any confidential information of Corporation
or any Inventions, whether conceived in whole or in part by Employee or by others. Employee’s duty under this paragraph includes but is not limited to the nondisclosure of trade secrets or confidential information, knowledge or data of
Corporation which he may obtain during the course of his employment relating to Corporation’s business, technical or otherwise, including but not limited to manufacturing methods, processes, techniques, products, engineering development
products, computer programs, customer lists, machines, research, compositions, inventions or discoveries. Employee agrees that upon leaving the employ of Corporation, he will not take with him any original or copy of documents, or records relating
to the foregoing matters, without the written consent of Corporation. This Section does not apply to any Inventions described in Section 3.04 above. 
  
 4.02.    Noncompetition. In consideration of Employee’s employment, for the duration of his employment by Corporation, and
for a period of two (2) years after the termination thereof, Employee agrees: 
  
 (a)    Not to, on behalf of himself or any other entity or corporation, directly or indirectly, as an employee, agent, independent contractor, owner, stockholder, partner, officer, director or
otherwise, engage in the business of the manufacture or sale of electronic equipment for use in cable television or broadband data transmission systems in North America, Central America and 

  

 5 

 
South America, Europe, the Middle East and the Far East, including the Pacific Rim. 
  
 (b)    Not to call on or solicit, on behalf of himself or on behalf of any other entity
or corporation, any of the customers of Corporation for the purpose of selling or distributing to any of said customers any product or service comparable to or competitive with products or services developed, sold and/or distributed by Corporation
or products or services which Corporation may have under development during the period of time Employee was employed by Corporation (“Corporation’s Products”); nor will Employee in any way, directly or indirectly, for himself or on
behalf of any other entity or corporation, solicit, divert or take away any customer of Corporation. For purposes of this Agreement, “customer” shall mean any person, entity or corporation which has purchased Corporation’s Products,
or has received a price quotation from Corporation for Corporation’s Products, at any time within the three (3) year period prior to the date of termination of Employee’s employment. 
  
 (c)    Not to enter or attempt to enter
into an employment or agency relationship with any person who, at the time of such entry (or attempted entry), or at the time of termination of Employee’s service with Corporation, was an officer, director, employee, principal or agent of
Corporation if, but only if, such employment or agency relationship is with respect to a business in competition with Corporation. 
  
 (d)    Not to induce or attempt to induce any person described in subparagraph (c) to leave his or her employment,
agency, directorship or office with Corporation to enter into a business in competition with Corporation. 
  
 It is understood by and between the parties to this Agreement that the aforesaid covenants set forth in this Section 4.02 are essential elements of this Agreement, and that, but for the agreement of Employee to comply
with such covenants, Corporation would not have agreed to the terms of employment set forth in this Agreement. Such covenants by Employee shall be construed as agreements independent of any other provisions in this Agreement. The existence 

  

 6 

 
of any claim or cause of action by Employee against Corporation, whether predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by Corporation of such covenants. In addition to all other legal remedies available to Corporation for enforcement of the covenants of this Section 4.02, the parties agree that Corporation shall be entitled to an injunction by any court
of competent jurisdiction to prevent or restrain any breach or threatened breach hereof. The parties to this Agreement agree that, if any court of competent jurisdiction determines the specified time period or the specified geographical area of
application, or the definition of Corporation’s Products in such covenants to be unreasonable, arbitrary or against public policy, then a lesser time period and/or a smaller geographical area and/or a less encompassing definition of
Corporation’s Products which are determined to be reasonable, nonarbitrary and not against public policy may be enforced against Employee. The parties to this Agreement agree and acknowledge that they are familiar with the present and proposed
operations of Corporation and believe that the restrictions set forth in this Section 4.02 are reasonable with respect to its subject matter, duration and geographical application. The provisions of this Section 4.02 may be waived, in part or fully,
in writing by Corporation at its option. These restrictive covenants shall survive the termination of this Agreement. 
  
 SECTION V 
  
 Indemnification for Service as Director and Officer 
  
 5.01.    Indemnity of Employee. Should Employee serve Corporation as a director or officer during the Term, Corporation shall
hold harmless and indemnify Employee as a director or officer to the full extent authorized or permitted by the provisions of the Pennsylvania Business Corporation Law (the “State Statute”), or by any amendment thereof or other statutory
provisions authorizing or permitting such indemnification which is adopted after the date hereof. 
  
 5.02.    Maintenance of Insurance and Self-Insurance. 
  
 (a)    Corporation represents that it presently has in force and effect policies of
Directors and Officers Liability Insurance (“D&O Insurance”) in insurance companies and amounts as determined from time to time by Corporation (the “Insurance Policies”). Subject only to the provisions of Section 

  

 7 

 
5.02(b) hereof, Corporation hereby agrees that, so long as Employee shall serve as a director or officer of Corporation (or shall continue at the request of
Corporation to serve as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and thereafter so long as Employee shall be subject to any possible claim or threatened, pending or
completed action, suit or proceeding, whether civil, criminal or investigative by reason of the fact that Employee was a director or officer of Corporation (or served in any of said other capacities), Corporation will purchase and maintain in effect
for the benefit of Employee one or more valid, binding and enforceable policy or policies of D&O Insurance providing, in all respects, coverage at least comparable to that presently provided pursuant to the Insurance Policies. 
  
 (b)    Corporation shall not be required
to maintain said policy or policies of D&O Insurance in effect if said insurance is not reasonably available or if, in the reasonable business judgment of the then directors of Corporation, either (i) the premium cost for such insurance is
substantially disproportionate to the amount of coverage or (ii) the coverage provided by such insurance is so limited by exclusions that there is insufficient benefit from such insurance. 
  
 (c)    In the event Corporation does not
purchase and maintain in effect said policy or policies of D&O Insurance pursuant to the provisions of Section 5.02(b) hereof, Corporation agrees to hold harmless and indemnify Employee to the full extent of the coverage which would otherwise
have been provided for the benefit of Employee pursuant to the Insurance Policies. 
  
 5.03.    Additional Indemnity. Subject only to the exclusions set forth in Section 5.04 hereof, Corporation hereby further agrees to hold harmless and indemnify Employee: 
  
 (a)    Against any and all expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by Employee in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (including an action by or in the right of the Corporation) to which Employee is, was or at 

  

 8 

 
any time becomes a party, or is threatened to be made a party, by reason of the fact that Employee is, was or at any time becomes a director, officer,
employee or agent of Corporation, or is or was serving or at any time serves at the request of Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise; and 
  
 (b)    Otherwise to the fullest extent as
may be provided to Employee by Corporation under the non-exclusivity provisions of Section 7-1 of the Bylaws of Corporation and the State Statute. 
  
 5.04.    Limitations on Additional Indemnity. No indemnity pursuant to Section 5.03 hereof shall be paid by Corporation:

  
 (a)    except to the
extent the aggregate of losses to be indemnified thereunder exceeds the sum of One Thousand and 00/100 ($1,000.00) Dollars plus the amount of such losses for which Employee is indemnified either pursuant to Sections 5.01 or 5.02 hereof or pursuant
to any D&O Insurance purchased and maintained by the Corporation; 
  
 (b)    in respect to remuneration paid to Employee if it shall be determined by a final judgment or other final adjudication that such remuneration was in violation of law; 
  
 (c)    on account of any suit in which
judgment is rendered against Employee for an accounting of profits made from the purchase or sale by Employee of securities of Corporation pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or
similar provisions of any federal, state or local statutory law; 
  
 (d)    on account of Employee’s conduct which is finally adjudged by a court of competent jurisdiction to have been knowingly fraudulent or deliberately dishonest or to have constituted
willful misconduct or recklessness; and 
  
 (e)    if a final decision by a court of competent jurisdiction shall determine that such indemnification is not lawful. 
  

 9 

 5.05.    Continuation of Indemnity. All agreements and obligations of
Corporation contained herein shall continue during the period Employee is a director, officer, employee or agent of Corporation (or is or was serving at the request of Corporation as a director, officer, employee or agent of another corporations,
partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Employee shall be subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal or investigative,
by reason of the fact that Employee was a director of Corporation or serving in any other capacity referred to herein. 
  
 5.06.    Notification and Defense of Claim. Promptly after receipt by Employee of notice of the commencement of any action,
suit or proceeding, Employee will, if a claim in respect thereof is to be made against Corporation under this Section V, notify Corporation of the commencement thereof; but the omission so to notify Corporation will not relieve it from any liability
which it may have to Employee otherwise than under this Section V. With respect to any such action, suit or proceeding as to which Employee notifies Corporation of the commencement thereof: 
  
 (a)    Corporation will be entitled to
participate therein at its own expense; and 
  
 (b)    Except as otherwise provided below, to the extent that it may wish, Corporation jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel
satisfactory to Employee. After notice from Corporation to Employee of its election so to assume the defense thereof, Corporation will not be liable to Employee under this Section V for any legal or other expenses subsequently incurred by Employee
in connection with the defense thereof other than reasonable costs of investigation or as otherwise provided below. Employee shall have the right to employ Corporation’s counsel in such action, suit or proceeding but the fees and expenses of
such counsel incurred after notice from Corporation of its assumption of the defense thereof shall be at the expense of Employee unless (i) the employment of counsel by Employee has been authorized by Corporation, (ii) Employee shall 
  

 10 

 have reasonably concluded that there may be a conflict of interest between Corporation and Employee in
the conduct of the defense of such action or (iii) Corporation shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel shall be at the expense of Corporation. Corporation
shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of Corporation or as to which Employee shall have made the conclusion provided for in (ii) above. 
  
         (c)    Corporation shall not be liable to indemnify Employee under this Section V for any amounts paid in settlement of any action or claim effected without its written
consent. Corporation shall not settle any action or claim in any manner which would impose any penalty or limitation on Employee with Employee’s written consent. Neither Corporation nor Employee will unreasonably withhold its or his consent to
any proposed settlement. 
  
           5.07.    Repayment of Expenses. Employee will reimburse Corporation for all reasonable expenses paid by Corporation in defending any civil or criminal
action, suit or proceeding against Employee in the event and only to the extent that it shall be ultimately determined that Employee is not entitled to be indemnified by Corporation for such expenses under the provisions of the State Statute, the
Bylaws of Corporation, this Section V or otherwise. 
  
           5.08.    Enforcement. 
  
  

 11 

 (a)    Corporation expressly confirms and agrees that it has entered
into this Section V and assumed the obligations imposed on Corporation hereby in order to induce Employee to, if elected, serve as a director of Corporation, and acknowledges that Employee is relying upon this Section V in agreeing to serve
Corporation in such capacity. 
  
 (b)    In the event Employee is required to bring any action to enforce rights or to collect monies due under this Agreement and is successful in such action, Corporation shall reimburse Employee for all of
Employee’s reasonable fees and expenses in bringing and pursuing such action. 
  
 SECTION VI 
  
 Change in
Control 
  
         6.01.    Background. Corporation is concerned that upon a possible or threatened change in control (as defined below), Employee may have concerns about the
continuation of his employment status and responsibilities and may be approached by others with employment opportunities, and desires to provide Employee some assurance as to the continuation of his employment status and responsibilities on a basis
consistent with that which he has earned in the event of such possible or threatened change in control. Further: 
  

	 	Ÿ	 	Corporation desires to assure that if a possible change in control situation arises and Employee is involved in deliberations or negotiations in connection therewith, that Employee
will be in a secure position to consider and negotiate such transaction as objectively as possible and without implied threat to his financial well-being. 

  

	 	Ÿ	 	Corporation is concerned about the possible effect on Employee of the uncertainties created by any proposed change in control of Corporation. 

  

	 	Ÿ	 	Employee is willing to continue to serve but desires that in the event of such a change in control he will continue to have the responsibility, status, income, benefits and
perquisites that he received immediately prior to that event. 

  
         6.02.    Change in Control. The provisions of Sections 6.03, 6.04, and 6.05 of this Agreement shall become operative upon a change in control of Corporation, as
hereinafter 

  

 12 

 
defined. For purposes of this Agreement, a “change in control” shall be deemed to have occurred if and when: 
  
 (a)    Subsequent to the date of this
Agreement, any person or group of persons acting in concert shall have acquired ownership of or the right to vote or to direct the voting of shares of capital stock of Corporation representing 30% or more of the total voting power of Corporation, or

  
 (b)    Corporation shall
have merged into or consolidated with another corporation, or merged another corporation into corporation, on a basis whereby less than 50% of the total voting power of the surviving corporation is represented by shares held by former shareholders
of Corporation prior to such merger or consolidation, or 
  
 (c)    Corporation shall have sold more than 50% of its assets to another corporation or other entity or person, or 
  
 (d)    As the result of, or in connection with, any cash tender or exchange offer,
merger or other business combination, sale of assets or contested election, the persons who were Directors of Corporation before such transaction cease to constitute a majority of Directors of Corporation. 
  
 6.03.    Acceleration of Options Upon Change in
Control. In the event of a change in control (without regard to whether the Employee’s employment is terminated by reason of the change in control), all outstanding options held by Employee, both exercisable and nonexercisable, shall be
immediately exercisable regardless of the time the option has been held by Employee and shall remain exercisable until their original expiration date, subject to applicable requirements of the Internal Revenue Code (the “Code”).

  
 6.04.    Termination Within Eighteen
(18) Months. In the event that the employment of Employee with Corporation is terminated involuntarily, other than for gross misconduct, within eighteen (18) months after a change in control occurs: 
  
 (a)    Employee shall be entitled to
receive an amount of cash equal to the sum of the following amounts: 
  
 (i)    five (5) times his annual salary at his rate on the date of termination of employment (but not less than five (5) times Employee’s annual salary prior to the change in control); and

  

 13 

 (ii)    an amount equal to five (5) times the annual amount of
Corporation’s matching contributions with respect to Employee’s Employee-Directed Contributions to the C-COR.net Corp. Retirement Savings and Profit Sharing Plan (the “401(k) Plan”) and deferral contributions to the C-COR.net
Corp. Supplemental Executive Retirement Plan (the “SERP”), determined based on the rate(s) of Corporation’s matching contribution(s) and the rate(s) of Employee’s deferral contribution(s) to the 401(k) Plan and SERP, as
applicable, on the date of Employee’s termination of employment (but not less than such rates as in effect on the date immediately preceding the change in control). Such amount shall be paid to Employee in a single sum in cash and shall not be
contributed to either the 401(k) Plan or the SERP; and 
  
 (iii)    if Employee terminates employment with Corporation during but before the last day of a plan year for which Corporation makes an Employer Discretionary Contribution to the 401(k) Plan, an amount equal to the
amount that would have been contributed as an Employer Discretionary Contribution to the 401(k) Plan with respect to the Employee, based on his actual compensation for the plan year taken into account for purposes of the 401(k) Plan, and assuming
that he had satisfied all other requirements (e.g., 1000 hours, employment on the last day of the plan year) needed to share in the allocation of such contribution. Such amount will be paid to Employee as soon as practicable after the
Corporation’s Employer Discretionary Contribution for the plan year is paid to the 401(k) Plan; and 
  
 (iv)    if Employee terminates employment with Corporation prior to acquiring a 100% nonforfeitable interest in, as
applicable, his Employer Matching Contribution Account and Employer Discretionary Contribution Account under the 401(k) Plan and/or his Employer Matching Contribution Account under the SERP, an amount equal to the fair market value of the nonvested
portion of such account(s) under the 401(k) Plan and the SERP, determined as of the date Employee terminates employment with Corporation and including the value of any investment carnings accrued with respect to the nonvested portion of such
account(s) which have accrued but are unallocated as of such date; provided, however, that if Employee should be re-employed by Corporation and receive the restoration of the nonvested portion of his Employer Matching Contribution
Account and/or Employer 

  

 14 

 
Discretionary Contribution Account under the 401(k) Plan, then Employee shall be obligated, within 30 days of Corporation’s demand following such
restoration, to repay the full amount that had been paid to him under this Section 6.04(a)(iv) representing the fair market value of his nonvested account(s) under the 401(k) Plan. 
  
 (b)    Employee shall be entitled to receive an amount of cash equal to five (5) times
the average of the Profit Incentive Plan or the successor to such plan (“PIP”) payments of the last five (5) years awarded to him under the PIP of Corporation pursuant to the terms of such PIP as in effect immediately prior to such change
in control. Such amount will be paid to Employee within ten (10) days after termination of Employee’s employment. If Employee has not received PIP payments for twenty (20) full quarters at the officer level, the average annual PIP will be
calculated by averaging the number of full quarters for which Employee’s officer level PIP has been accrued (whether already paid or not paid) and annualizing that amount. 
  
 (c)    Employee shall continue for a period of five (5) years from the date of his
termination to be covered at the expense of Corporation by the same or equivalent health, dental, accident, life and disability insurance coverages as he was enrolled in immediately prior to termination of his employment; provided, however, that
Employee may elect to be paid in cash within thirty (30) days after termination of his employment an amount equal to Corporation’s cost of providing such coverages during such period. 
  
 (d)    On the date of termination,
Employee shall become eligible for the benefits payable under Section 2.04 (Additional Retirement Benefit) of this Agreement and such benefits shall be paid to Employee, or if applicable, Employee’s beneficiary, in the same manner, amounts and
intervals as if Employee had, on the date of his termination of employment following a change in control, met the age and service requirements for normal retirement as defined in Section 2.04 of this Agreement. In the event the Employee’s
benefit from Section 2.04 Additional Retirement Benefit of this Agreement begins to be paid before normal retirement, it shall not be actuarially adjusted to reflect its early commencement. 
  
 (e)    All outstanding options held by
Employee, both exercisable and nonexercisable, shall be immediately exercisable regardless of the time the option has been 

  

 15 

 
held by Employee and shall remain exercisable until their original expiration date, subject to applicable requirements of the Code. 
  
 6.05.    Other Events.    If
Employee resigns from Corporation within eighteen (18) months after a change in control due to a “Good Reason”, Employee shall be entitled to receive all payments and enjoy all of the benefits specified in Section 6.04 hereof. For purposes
of this Agreement, a “Good Reason” shall be if any one or more of the following events has occurred between the change in control and Employee’s resignation: 
  
 (a)    A reduction or alteration in the nature or status of Employee’s authorities,
duties or responsibilities from those in effect immediately prior to the change in control; or 
  
 (b)    If the base salary paid by Corporation to Employee is reduced by more than ten (10%) percent from his salary
immediately prior to the change in control; or 
  
 (c)    If Corporation requires Employee to relocate his principal place of work to a location more than forty (40) miles from Employee’s former place of work. 
  
 6.06.    Excise Tax
Gross-Up.     
  
 (a)    Notwithstanding any contrary provision in this Agreement, in the event it shall be determined that (i) any payment by Corporation to or for the benefit of Employee pursuant to Sections 6.04, 6.05 of this
Agreement, or a portion thereof (a “Payment”), or (ii) any actual or deemed compensation income to Employee, for purposes of Section 280G of the Code, resulting from the acceleration of the exercisability of the Employee’s outstanding
options pursuant to Section 6.03 of the Agreement (“Option Income”), would be subject to the excise tax imposed by Section 4999 of the Code (relating to excess parachute payments as described in Section 280G of the Code) (the “Excise
Tax”), Employee shall be entitled to receive from Corporation an additional payment (a “Gross-Up Payment”) in an amount such that after payment by Employee of all taxes (but not including any interest or penalties imposed with respect
to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payment and Option Income. 
  
 (b)    All determinations required to be
made under this Section 6.06, including whether a Gross-Up Payment is required, the amount of such Gross-Up Payment and amounts relevant to the last sentence of this Section 6.06(b), shall be made by the firm of 

  

 16 

 
independent accountants engaged to audit Corporation’s financial statements (the “Accounting Firm”) which shall provide its determination (the
“Determination”), together with detailed supporting calculations regarding the amount of any Gross-Up Payment and any other relevant matter, both to Corporation and Employee within thirty (30) business days after (i) in the case of Option
Income, the date of the change in control or such later date as such Option Income is treated as a payment in the nature of compensation for purposes of Section 280G of the Code, or (ii) the date Employee terminates employment with the Corporation
and is eligible for Payments under Section 6.04 or 6.05 of this Agreement (or such earlier time as is requested by Corporation). If the Accounting Firm determines that no Excise Tax is payable by Employee, it shall furnish Employee with a written
statement that such Accounting Firm has concluded that no Excise Tax is payable (including the reasons therefore) and that he has substantial authority not to report any Excise Tax on his federal income tax return. If a Gross-Up Payment is
determined to be payable, it shall be paid to Employee within ten (10) business days after the Determination is delivered to Corporation. Any determination by the Accounting Firm shall be binding upon Corporation and Employee with respect to
Corporation’s obligation to pay the Gross-Up Payment, absent manifest error. As a result of uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that a Gross-Up Payment not made by Corporation should have been made (an “Underpayment”), or that a Gross-Up Payment will have been made by Corporation which should not have been made (an “Overpayment”). In either such event,
the Accounting Firm shall determine the amount of the Underpayment or Overpayment that has occurred. In the case of an Underpayment, following a final determination by a court or the Internal Revenue Service that any portion of the Payment or Option
Income is subject to Excise Tax, the amount of such Underpayment shall be promptly paid by Corporation to or for the benefit of Employee. In the case of an Overpayment, Employee shall, at the direction and expense of Corporation, take such steps as
are reasonably necessary (including the filing of returns and claims for refund), follow reasonable instructions from, and procedures established by, Corporation, and otherwise reasonably cooperate with Corporation to correct such Overpayment;
provided,however, that (i) Employee shall not in any event be obligated to return to Corporation an amount greater 

  

 17 

 
than the net after-tax portion of the Overpayment that he has retained or has recovered as a refund from the applicable taxing authorities and (ii) this
provision shall be interpreted in a manner consistent with the intent of Section 6.06(a), which is to make Employee whole, on an after-tax basis, from the application of the Excise Tax, it being understood that the correction of an Overpayment may
result in Employee repaying to Corporation an amount which is less than the Overpayment. 
  
         6.07.    Agreements Not Exclusive. The specific agreements referred to in this Section VI are not intended to exclude Employee’s
participation in other benefits available to executive personnel generally or to preclude other compensation benefits as may be authorized by the Board of Directors of Corporation at any time and shall be in addition to such compensation and
benefits. 
  
         6.08.    Enforcement Costs. Corporation is aware that upon the occurrence of a change in control, the Board of Directors or a shareholder of Corporation may then
cause or attempt to cause Corporation to institute, or may institute, litigation seeking to have this Section VI declared unenforceable, or may take, or attempt to take, other action to deny Employee the benefits intended under this Section VI. In
these circumstances, the purpose of this Section VI could be frustrated. It is the intent of Corporation that Employee not be required to incur the expenses associated with the enforcement of his rights under this Section VI by litigation or other
legal action because the cost and expense thereof would substantially detract from the benefits extended to Employee hereunder, nor be bound to negotiate any settlement of his rights hereunder under threat of incurring such expenses. Accordingly, if
following a change in control, it should appear to Employee that Corporation has failed to comply with any of its obligations under this Section VI or in the event that Corporation or any other person takes any action to declare this Agreement void
or unenforceable, or institutes any litigation or other legal action designed to deny, diminish or to recover from Employee the benefits intended to be provided to Employee hereunder and that Employee has complied with all reasonable obligations
related to Employee’s employment with Corporation, Corporation irrevocably authorizes Employee from time-to-time to retain counsel of his choice at the direct expense and liability of Corporation as provided in this Section 6.08 to represent
Employee in connection with the initiation or defense of any litigation or other legal action, 

  

 18 

 
whether by or against Corporation or any director, officer, shareholder or other person affiliated with Corporation, in any jurisdiction. Notwithstanding any
existing or prior attorney-client relationship between Corporation and such counsel, the Corporation irrevocably consents to Employee entering into an attorney-client relationship with such counsel, and in that connection Corporation and Employee
agree that a confidential relationship shall exist between Employee and such counsel. The reasonable fees and expenses of counsel selected from time-to-time by Employee as hereinabove provided shall be paid or reimbursed to Employee by Corporation
on a regular, periodic basis upon presentation by Employee of a statement or statements prepared by such counsel in accordance with its customary practices up to a maximum aggregate amount of $500,000, said amount to be “grossed up” to
cover federal and state income taxes. The amount of the gross up shall be calculated in accordance with the following formula: A/ (1-R), where A is the amount of legal fees and R is the combined highest marginal tax rate applicable to Employee in
the tax year that the payment is made. 
  
         6.09.    No Set-Off. Corporation shall not be entitled to set-off against the amount payable to Employee any amounts earned by Employee in other employment after
termination of his employment with Corporation, or any amounts which might have been earned by Employee in other employment had he sought other employment. The amounts payable to Employee under this Section VI shall not be treated as damages but as
severance compensation to which Employee is entitled by reason of termination of his employment in the circumstances contemplated by this Agreement. However, a set-off may be taken by Corporation against the amounts payable to Employee for expenses
covering the same or equivalent hospital, medical, accident, and disability insurance coverages as set forth in Section 6.04(c) of this Section VI if such benefits are paid for Employee by a new employer after Employee’s termination of
employment by Corporation under Section 6.04 hereof or after Employee’s resignation under Section 6.05 hereof. 
  
         6.10.    Successors and Assigns. The provisions of this Section VI shall be binding upon and
inure to the benefit of Corporation and its successors and assigns, and shall be binding upon and inure the benefit of Employee and his legal representatives, heirs, and assigns. Corporation shall require any successor or surviving entity in any
change in control 

  

 19 

 
(“Successor”), by agreement in form and substance satisfactory to Employee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that Corporation would be required to perform if no such succession had taken place. Regardless of whether such agreement is executed, this Agreement shall be binding upon any Successor in accordance with the operation
of law and such Successor shall be deemed “Corporation” for purposes of this Agreement. This Agreement shall inure to the benefit of and be enforceable by Employee and his personal or legal representative, executors, administrators,
successors, heirs, distributes, devisees and legatees. 
  
 SECTION VII 
  
 Miscellaneous 
  
         7.01.    Use of
Name. Employee agrees to allow Corporation to have his name or picture used by Corporation for advertising or trade purposes during the Term of this Agreement. 
  
         7.02.    Binding Effect. This Agreement shall inure to the
benefit of and be binding upon Employee and upon Corporation, their successors and assigns, including, without limitation, any person, partnership, company or corporation which may acquire substantially all of Corporation’s assets or business
or into which Corporation may be consolidated, merged or otherwise combined. 
  
         7.03.    Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania. 
  
         7.04.    Legal
Construction. In the event any one or more of the provisions contained in this Agreement shall for any reason beheld invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision thereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 
  
         7.05.    Amendment. No amendment, modification or alteration of the terms hereof shall be
binding unless the same be in writing, dated subsequent to the date hereof and duly executed by the parties hereto. 
  

 20 

         7.06.    Integration. This Agreement
constitutes the entire understanding and agreement between Corporation and Employee with regard to the subject matter hereof and supersedes all other agreements and understandings between Corporation and Employee. 
  
         7.07.    Severability. In the event that any section, clause or other provision of this Agreement shall be determined to be invalid or unenforceable in any
jurisdiction for any reason, such section, clause or other provision shall be enforceable in any other jurisdiction in which valid and enforceable and, in any event, the remaining sections, clauses and other provisions of this Agreement shall be
unaffected and shall remain in full force and effect to the fullest extent permitted by law. 
  
         7.08.    Headings. The headings used in this Agreement are for ease of reference only and are not intended to affect the meaning or
interpretation of any of the terms hereof. 
  
 [THE REMAINDER OF
THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 21 

         IN WITNESS WHEREOF, the parties hereto have executed this
Agreement with the intent to be legally bound thereby on the day and year first above written. 
  

	
	 CORPORATION:

	
	C-COR.net CORP.
	
	 By:    /s/ Donald M.
Cook                                        
  

	 Print Name:    Donald M.
Cook                                

	 Title:    Chair,
Compensation                                   
 

	
	 EMPLOYEE:

	
	                         /s/  David A.
Woodle                        

	DAVID A. WOODLE

  
  
  
  
  
  
  

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