Document:

Addendum No. 1 to MPA

 Exhibit 10.3 
 Addendum No. 1 to Master Purchase Agreement dated February 14, 2006 
 between 
 RAINMAKER SYSTEMS, INC. 
 and 
 SUN
MICROSYSTEMS, INC. 
 This Addendum Number 1 (“Addendum”), effective the 31st day of March, 2009 (“Addendum 1
Effective Date”), is made by and between Rainmaker Systems, Inc., with a place of business at 900 East Hamilton, Suite 400, Campbell, CA 95008 (“Supplier”) and Sun Microsystems, Inc., with a place of business at 4150 Network Circle,
Santa Clara, CA 95054 (“Sun”). 
 WHEREAS Supplier and Sun entered into a certain Master Purchase Agreement effective
February 14, 2006, Sun Contract Reference No. 3451-0207, under which Sun hired Supplier to perform labor, telesales and hosting services (the “Agreement”); 
 WHEREAS, Supplier and Sun will execute this Addendum on the Addendum 1 Effective Date; and 
 WHEREAS, Supplier and Sun desire to amend the Agreement and replace in its entirety the Hosting Services Exhibit with Exhibit A
(“Application Services Agreement”) attached hereto and extend the Agreement, as amended; and 
 WHEREAS, Supplier and
Sun desire the terms of the Agreement, as amended by this Addendum, to apply to all SOWs executed or superseded after the Effective Date of this Addendum 1. 
 NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, it is hereby agreed by and between Supplier and Sun as follows: 
  

	A.	Cancellation of the Hosting Services Exhibit to the Agreement. 

 The parties hereby cancel and terminate the Hosting Services Exhibit in full, per the terms of the Agreement, and incorporate into the Agreement by this reference the terms of the License Agreement for
Rainmaker Technology, entitled the “Application Services Agreement,” attached hereto as Exhibit A. 
  

	B.	Licensed Technology. 

 The license terms
related to any Rainmaker technology and any third party technology provided by Supplier referenced or required by Sun for performance of the Services will be set forth in the separate License Agreement between the parties, a copy of which is
attached as Exhibit A. 
  
 Confidential treatment has been
requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [****]. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission. 

	C.	New Definitions to the Agreement. 

 Section 2, Definitions, of the Agreement is amended to add in the following new definitions: 
 25. “Service
Information” means any information, including Personal Information, data, software, or files received by Supplier from or on behalf of Sun in connection with the performance of the Services hereunder. 
 26. “Sun Facilities” means the Sun site or facility identified by the parties that will be used by Supplier and Workers to the
extent necessary to provide the Services. 
 27. “Supplier Facilities” means the Supplier site or facility identified
by the parties that will be used by Sun and its employees, agents and contractors to the extent necessary to provide the Services. 
 28. “Sun Direct Competitor” means any entity, as well as their Affiliated Companies, which provide products or services that compete with the products or services provided by Sun to its customers as determined, and may be revised
annually, by Sun; provided however that any such revisions shall not have a retroactive effect. A list of the Sun Direct Competitors as of the Addendum 1 Effective Date are set forth on Exhibit C. 
  

	D.	Revised, Deleted and New Sections of the Agreement. 

 1. Section 1 (“Scope”) of the Agreement is amended to add in the following new sub-Sections: 
 1.4 Country Joining Agreement. The parties agree that the performance of the programs and services under the Agreement may be provided in multiple countries. All of the parties’ rights and
obligations shall apply with the same force and effect to any of Supplier and Sun’s Affiliated Companies (defined below) that are covered by the Agreement or those entities of Supplier and Sun that execute a “Country Joining
Agreement.” The parties will negotiate in good faith any additional terms, conditions and schedules that are required to conduct business or provide services in any particular country. Any additional terms and conditions will be reflected in
the Country Joining Agreement together with the corresponding schedules. Each Country Joining Agreement and the corresponding schedules will apply only to the country or geographic region for which the Country Joining Agreement was executed.

 1.5 The Agreement is Binding on Affiliated Companies. The Agreement applies to and binds affiliated companies of
Supplier and Sun that provide written notice of their acceptance of these terms. Written issuance of, or acknowledgment of acceptance of, a purchase order referencing the Agreement or execution of a Country Joining Agreement will constitute
acceptance of the terms. 
 2. The parties wish to revise sub-Section 6.2.1 (“Compliance with Laws”) in the first
sentence as follows: “In connection with the performance of this Agreement and any SOW, Supplier will obtain ....” The remainder of this section will remain as written. 
  
 [****]=Certain information has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 3. Sub-Section 3.5.4 (“No Hire Agreement”) is deleted in its entirety and
replaced with the following: 
 3.5.4 Non-Solicitation. Except as expressly set forth herein, during the Term of any SOW
and ****, will not solicit for employment directly or indirectly, any employees of ****. Except as expressly set forth herein in connection with the expiration or termination of this Agreement, during the Term, **** will not solicit for employment
directly or indirectly, any ****. In each case, the prohibition on solicitation shall **** under this Agreement. This provision shall not operate or be construed to prevent or limit any employee’s right to practice his or her profession or to
utilize his or her skills for another employer or to restrict any employee’s freedom of movement or association. Neither the publication of classified advertisements in newspapers, periodicals, Internet bulletin boards, or other publications of
general availability or circulation nor the consideration and hiring of persons responding to such advertisements shall be deemed a breach of this Section, unless the advertisement and solicitation is undertaken as a means to circumvent or conceal a
violation of this provision. 
 4. Section 3.5 (“Workers”) is amended to add the following new Sub-Sections:

 3.5.6 Communications to Employees. Supplier shall only communicate with Sun employees in accordance with the terms of
this Agreement and any SOW or for the purposes of providing Services under this Agreement and its Ancillary Documents. Sun and Supplier each agree that they shall not communicate employment and contractual terms on behalf of the other. 

3.5.7 Travel and Relocation Costs. Supplier shall be financially and operationally responsible for all travel and relocation
requirements and costs caused by the transfer of location of Workers under this Agreement. Notwithstanding the foregoing, travel expenses of Workers may be reimbursed by Sun to Supplier in accordance with Sun’s Contractor Travel Guidelines as
set forth in an SOW. 
 3.5.8 Material Staffing Changes. Supplier shall staff the projects to be performed in the SOW in
accordance with the terms of the SOW. The expected staffing plan for the Services will be set forth in the SOW, as applicable. Material proposed or actual changes to the staffing levels and positions during the first twelve (12) months
following the corresponding SOW Effective Date must be reported to Sun each month. A material change in staffing is considered to be any change of **** or more from each figure within the Workers projection tables of the SOW, if applicable. Any
material proposed changes to staffing levels during this period are subject to Sun’s approval, which approval will be based on Sun’s reasonable satisfaction that such changes will not have an adverse impact on the Supplier’s ability
to perform its obligations under the Agreement. The Parties agree that this review and approval does not constitute a derogation of Supplier’s management responsibilities. 
 3.5.9 Compensation. Supplier shall be responsible for determining the compensation and any bonuses paid to Workers. 
  
 [****]=Certain information has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 3.5.10 Workers Are Not Sun Employees. Except as otherwise expressly set forth in this
Agreement, the Parties intend to create an independent contractor relationship. No officer, director, employee, agent, affiliate, contractor or Subcontractor retained by Supplier to perform work on Sun’s behalf hereunder shall be an officer,
director, employee, affiliate, contractor or Subcontractor respectively of Sun and no individual will be an agent of the other. Supplier, not Sun, has the right, power, authority and duty to supervise and direct the activities of the Workers and to
compensate such Workers for any work performed by them on behalf of Sun pursuant to this Agreement. Supplier, and not Sun, shall be responsible and therefore solely liable for all acts and omissions of Supplier and Workers. 
 3.5.11 Replacement, Qualifications and Retention of Workers 
 3.5.11(a) Sufficiency and Suitability of Workers. Supplier shall assign sufficient Workers to provide the Services in accordance
with this Agreement and such Workers shall possess suitable competence, ability and qualifications and shall be properly educated and trained for the Services they are to perform. Supplier shall ensure that the Workers it assigns to perform the
Services for Sun under the terms of this Agreement are not included in any exclusion lists published by the United States government. It will also ensure that the most recent country of citizenship or permanent residency of these Workers is not
subject to any trade embargoes or restrictions imposed by the United States government. 
 3.5.11(b) Requested
Replacement. In the event that Sun determines that the continued assignment to Sun of any individual Workers is not in the best interests of Sun for any reason, then Sun shall give Supplier written notice to that effect requesting that such
Workers be replaced and stating the reasons for such request. Supplier shall have **** following Sun’s request for removal of such Workers in which to investigate the matters forming the basis of such request, correct any deficient
performance****. If, following such **** period, Sun is not reasonably satisfied with the results of Supplier’s efforts to correct the deficient performance and/or to use reasonable commercial efforts to prevent its recurrence, Supplier shall,
****, remove and replace such Workers with an individual of suitable ability and qualifications, ****. Nothing in this provision shall operate or be construed to limit Supplier’s responsibility for the acts or omission of the Supplier and
Workers. 
 3.5.11(c) Retention/Turnover. Supplier will use commercially reasonable efforts to keep the turnover rate of
Workers to a level comparable or better than the industry average for large, well-managed telesales services companies in the relevant jurisdiction. If Sun determines that the turnover rate of Workers is unacceptable and so notifies Supplier,
Supplier shall within ten (10) business days: (i) provide Sun with data concerning Supplier’s turnover rate; (ii) meet with Sun to discuss the reasons for the turnover rate; and (iii) submit a proposal, at no additional cost
to Sun, for Sun’s review and approval regarding reducing the turnover rate. Notwithstanding any transfer or turnover of Workers, Supplier shall remain obligated to perform the Services in accordance with the terms of the SOW. 
  
 [****]=Certain information has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 3.5.12 Restrictions on Performing Services to Competitors. Supplier shall not****.
This restriction shall not apply ****. In these cases, the restrictions set forth in this section shall not apply and ****. Notwithstanding the foregoing, all obligations and restrictions set forth in the Confidential Information section of the
Agreement shall survive and apply ****. 
 3.5.13 Conduct and Compliance. While at Sun Facilities, Workers shall;
(a) comply with the Sun Rules and other rules and regulations regarding personal and professional conduct generally applicable to personnel at such Sun Facilities (and communicated to and received by Supplier in advance in writing or by any
other means generally used by Sun to disseminate such information to its employees or contractors), other than those rules and regulations only applicable to Sun Personnel; (b) comply with reasonable requests of Sun personnel pertaining to
personal and professional conduct; (c) attend workplace training offered by Sun at Sun’s request; and (d) otherwise conduct themselves in a businesslike manner. In addition and as permitted by applicable Laws, any Workers who works
(or is scheduled to work) at Sun Facilities may be subject to a background check. 
 3.5.14 Identification of Workers.
All Workers shall clearly identify themselves at Sun Facilities as Workers and not as employees of Sun. This requirement shall apply to any and all communications with Sun employees, whether oral, written or electronic. 
 3.5.15 Substance Abuse. Supplier agrees to immediately remove any Workers who engage in substance abuse while on Sun Facilities,
while driving a vehicle, or while performing Services. Substance abuse includes (a) the purchase, sale, attempted sale, possession or use of illegal drugs, and/or drug paraphernalia, (b) the misuse of prescription or non-prescription
drugs, or (c) the irresponsible use or abuse of alcohol. Supplier represents and warrants that it has and will maintain substance abuse policies, in each case in conformance with Applicable Laws, (including the Drug Free Workplace Act of 1988,
in the United States) and Workers will be subject to such policies. Supplier represents and warrants that it shall require its Subcontractors and Affiliated Companies providing Services to have and maintain such policy in conformance with Applicable
Law and to adhere to this provision. 
 3.5.16 Union Agreements. Supplier shall provide Sun not less than ninety
(90) days notice of the expiration of any collective agreement with unionized Workers who are Rainmaker employees. 
 3.5.17 Non-Disclosure Agreement. Each party shall ensure that all third parties to whom it provides Confidential Information under this Agreement shall be subject to a Confidentiality Agreement with provisions similar to those that
exist between the parties. 
  
 [****]=Certain information has been
omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 5. Section 6 (“Compliance”) is amended to add the following new sub-Sections:

 6.2.3 Compliance Data and Reports. At no additional charge, Supplier shall provide, at Sun’s reasonable request,
Sun with data and reports in Supplier’s possession necessary for Sun to comply with all Applicable Laws. 
 6.2.4
Awareness of Laws. Supplier shall maintain general familiarity with the legal and regulatory requirements applicable specifically to the principal businesses of Supplier (including laws generally applicable to telesales and labor services). At
Sun’s request, Workers shall participate in Sun provided legal compliance training programs. 
 6.2.5 Absence of
Litigation. Each Party represents and warrants that no claim, litigation, proceeding, arbitration, investigation or material controversy is pending, has been threatened or is contemplated which, in its reasonable opinion, would have a material
adverse effect on a Party’s ability to enter into this Agreement or perform its obligations hereunder. 
 6. A new
Section 6.5 (“Sarbanes-Oxley Compliance”) is added to the Agreement as follows: 
  

	6.5	Sarbanes-Oxley Compliance. 

 6.5.1 Cooperation. 
 Upon Sun’s reasonable request, Supplier shall cooperate with Sun in respect to
compliance with the Sarbanes-Oxley Act of 2002 and implementing regulations, (“SOX”), including in particular but without limitation the adequacy of internal control over financial reporting pursuant to Section 404 of SOX if and to
the extent that Supplier’s services affect Sun’s SOX compliance. Accordingly, Supplier agrees to the following: 
 (a)
Supplier shall maintain complete and accurate records and documentation of transactions, processes and controls performed for Sun, if any, , especially as they relate to Sun’s financial information and any required disclosures thereof, which
records and documentation will be subject to audit by Sun or its representatives as provided in Section 7 below; and 
 (b)
Supplier shall notify Sun immediately of any organization, security-related or other issues that Supplier knows or suspects may reasonably affect the ability of Sun to comply with SOX, including but not limited to any security-related issue that
affects any Deliverable. 
 6.5.2 SAS Audit. 
 In addition to obligations under Section 6.5.1, if Supplier is providing any Services that (a) in whole or in part interface with,
add to or modify any part of Sun’s information systems that process financial transactions, (b) are used in or support the preparation of financial reports, or (c) support the general control environment of such information systems,
including without limitation program or project management and systems access or administration of the financial control environment (“Financial Control Services”), then this Section 6.5.2 applies. Otherwise, the provisions in this
section 6.5.2 shall not apply. 
 (a) Supplier agrees to be subject to a security audit , no more than once each year, as it
relates to this Agreement and the operations of Supplier in relation to the Financial Control Services provided pursuant to this Agreement (“Compliance Audit”). The Compliance Audit shall cover all of Supplier’s facilities and
operations involved with the 
  
 [****]=Certain information has
been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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performance of the Financial Control Services and activities related to this Agreement, including an inspection of facilities, access to relevant systems, a review of relevant records and a
review of relevant internal controls and procedures. If necessary for the proper conduct of such Compliance Audits, upon Supplier’s request, Sun shall, and shall use reasonable efforts to cause its auditors to, provide reasonable information to
and cooperation with Supplier and its auditors, and to coordinate the related efforts of the auditors. 
 (b) The reports
resulting from Compliance Audits shall be those known as “readiness reports” (reports on policies and procedures placed in operation and tests of operating effectiveness) in relation to SAS 70, or such other form as agreed to in writing by
Sun (“Reports”). Sun may provide the Reports to its auditors, examiners, and other appropriate Third Parties. In addition, at any time at Sun’s request, Supplier shall provide Sun with a confidential copy of the then-current Report
within ten (10) days of Sun’s request that Sun may provide to its auditors on a confidential basis. Sun acknowledges that the Reports will address multi-client purposes and that Supplier may use the Reports for other purposes in
Supplier’s discretion, including by sharing such Reports with its own auditors and other customers. 
 (c) Each calendar
quarter, an officer of Supplier shall certify to Sun in writing that Supplier maintains an adequate internal control structure and procedures for financial reporting that in all events complies with Applicable Laws. 
 (e) The Compliance Audit and other procedures conducted pursuant to this Section 6.5.2 shall be designed and conducted in a manner
consistent with prevailing industry standards for comparable audits or procedures, as such standards evolve, including as mutually agreed, changing from the SAS No. 70 standard to another standard in the future. 
 6.5.3 Further Cooperation. 
 The parties acknowledge that its obligations under the Compliance Rules, including without limitation Section 404 of SOX may change. Accordingly, the parties agree to cooperate to modify the
requirements and obligations set forth in this Section 6.5 based on the evaluation and determination of these obligations by Sun’s auditors acting reasonably from time to time including such obligations as may arise due to changes in
Compliance Rules, other Applicable Laws, or standard practices 
 7. Section 7 (“Records, Audit Rights”) is
amended to add in the following new sub-Section: 
 7.4 Audit of Service Information. During the Term of
this Agreement and continuing until Supplier no longer has possession of any Service Information, Supplier shall permit Sun, or Sun’s independent, professionally qualified representative bound by a duty of confidentiality to audit, examine, and
inspect, at Supplier’s facilities and during normal business hours all processes and controls performed for Sun or as part of this Agreement to comply with the requirements of this Section 7.4 and to review and make copies of all relevant
records and documentation for the purpose of determining such Supplier compliance. 
  
 [****]=Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 8. Section 8.2 (“Data Privacy”) of the Agreement is deleted in its entirety
and replaced with the following: 
 8.2 Data Privacy and Protection of Personal Information 
 8.2.1 “Sun Personal Information” means any information or data received by Supplier from or on behalf of Sun in connection with
the performance of the Services hereunder that (1) identifies an individual person or from which identification of an individual person can be derived, including name, tax payer or other identification number, address, telephone number, email
address or credit card information; or (2) is linked to an identified individual, such as birth date, gender or marital status. 
 “Supplier Personal Information” means any information or data received by Sun from or on behalf of Supplier in connection with this Agreement that (1) identifies an individual person or from which identification of an
individual person can be derived, including name, tax payer or other identification number, address, telephone number, email address or credit card information; or (2) is linked to an identified individual, such as birth date, gender or marital
status. 
  

	 	8.2.2	Use of Personal Information. Supplier use of any Sun Personal Information shall be done solely on behalf of Sun for the purpose of providing the Services to Sun.
Supplier shall use Sun Personal Information only in accordance with such instructions as Sun may from time to time provide or as reasonably necessary for the purpose of providing the Services; Supplier shall not use any Sun Personal Information in
any manner that is not specifically required to provide the Services. 

  

	 	8.2.3	Request for Access. Unless explicitly directed to do so by Sun, Supplier shall not respond to any requests for access to Sun Personal Information from anyone
other than Sun or from a governmental agency with a subpoena or similar legal document compelling disclosure by Supplier. In the event of any request for access to Sun Personal Information, Supplier shall immediately notify Sun in writing, unless
such notice is expressly prohibited by law. 

  

	 	8.2.4	Transfer Across International Borders. Sun hereby acknowledges that Services will require Supplier to receive, access, or transmit Sun Personal Information
across international borders, and that Sun will assure its own compliance with relevant laws. The parties agree that they will each enter into appropriate data transfer agreements with Sun and/or others as necessary to assure compliance with
applicable laws related to data privacy, security, and data protection across international borders. 

  

	 	8.2.5	Security Breach and Notice. Supplier will immediately notify Sun of any actual or suspected unauthorized access to, disclosure of, or breach in the security of
Sun Personal Information in Supplier’s possession or control (a “Security Incident”). In the event of a Security Incident, Supplier shall cooperate with Sun with respect to preventing the Security Incident from continuing or
recurring, investigating the cause, and prosecuting Sun’s rights as reasonably determined by Sun. If Sun reasonably determines that it is necessary for Sun to notify any individuals, regulators, law enforcement agencies, consumer reporting
agencies, or others about the occurrence of the Security Incident or if Sun 

  
 [****]=Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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determines that credit monitoring-type or similar remediation shall be offered to affected persons as a result of the Security Incident, then, without limiting Sun’s remedies with respect to
the Security Incident, Supplier shall be responsible for the cost and expense of any such notice, and/or remediation if the Security Incident was caused by Supplier or its agents. 

  

	 	8.2.6	Inability to Comply. Supplier shall promptly inform Sun if for any reason Supplier cannot comply with the obligations in this Section 8.2 and its subparts.
In such event Sun is entitled to suspend Supplier’s access, use and/or transfer of Sun Personal Information until such time as Supplier is able to comply and/or, at Sun’s sole discretion, to terminate this Agreement, or relevant part
thereof, without penalty. 

  

	 	8.2.7	Return or Destruction. All Sun Personal Information is and will remain the property of Sun and all Supplier Personal information shall remain the property of
Supplier. Upon either party’s written request at any time during the term of the Agreement, the other party shall (a) return the Sun Personal Information to Sun or its agent or the Supplier Personal Information to Supplier or its agent or
(b) destroy the Sun Personal Information or Supplier Personal Information as set forth in such written request. To the extent that Supplier’s performance of Services is contingent upon use of such recalled or destroyed Sun Personal
Information, Supplier’s further performance of such Services shall be excused. 

  

	 	8.2.8	Duty to Protect. This section applies if in the course of Supplier’s performance under this Agreement, Supplier has access to Sun Personal Information or
Sun has access to Supplier’s Personal Information. At all times during the term of this Agreement, each party shall (a) maintain appropriate technical and organizational measures to protect Personal Information that it uses under the terms
of this Agreement against unauthorized or unlawful transfer, processing or alteration and against accidental access, loss, damage, processing, use, transfer or destruction; (b) provide reliable and secure systems operated by it or on its behalf
of that process Personal Information in connection with this Agreement; and (c) comply with all applicable privacy and data protection laws governing customer, contractor and/or employee data. 

  

	 	8.2.9	Duration. Notwithstanding any other terms of this Agreement, each party’s obligations to keep Personal Information in strict confidence shall continue so
long as such party maintains any such Personal Information. Also notwithstanding the terms of the confidentiality provisions of this Agreement, there shall be no exception to any confidentiality obligations with respect to Personal Information on
account of any of the Personal Information being publicly known or available through alternate (i.e., non-confidential or non-private) sources. 

  

	 	8.2.10	Notice to Supplier Employee. Supplier shall assure that all of its employees, agents, and Subcontractors that perform any Services related to Sun’s Personal
Information shall be advised of, trained, and required by Supplier to 

  
 [****]=Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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comply with the requirements of this Section 8.2. In all events, Supplier shall be liable to Sun for any breach of these obligations by any of such employees, agents, and Subcontractors.

  

	 	8.2.11	Survival. The obligations to protect the Personal Information as set forth herein shall survive termination and expiration of this Agreement until all of the
Personal Information is destroyed or returned. Each party shall ensure the continued confidentiality and security of the Personal Information under no less strict standards than those imposed herein, and shall not make any use of the Personal
Information, except as may be required by law. Supplier shall maintain documentation of the destruction and at Sun’s request shall certify the destruction of the Sun Personal Information. 

  

	 	8.2.12	Indemnification. In the event of any breach of its obligations under this Section 8.2, the breaching party will defend the indemnified party and its
affiliated companies, and their respective customers, officers, directors, employees, agents, contractors, service providers, assigns and successors from and against any and all claims, demands, actions, proceedings, or suits, and hold them harmless
from any resulting loss, damage, expense, cost (including attorney’s fees) and liability. 

  

	 	8.2.13	Compliance with Data Privacy Laws. Without limiting the foregoing, with respect to any Personal Information, each party shall provide the other with such
assistance as may reasonably required to fulfill the respective party’s responsibilities under all Applicable Laws related to privacy. Such laws include all existing and future laws related to processing, collection, dissemination, storage and
destruction of Personal Information, data privacy, trans-border data flow or data protection, including the implementing legislation and regulations of the European Union member states under the European Union Directive 95/46/EC.

  

	 	8.2.14	Consumer Calling Campaigns. The parties acknowledge and agree that Supplier is not providing consumer calling campaigns for Sun and shall not provide any such
services, nor shall the parties enter into any SOW or Ancillary Document for such services without amending this Addendum or the Agreement to include representations and warranties, and provisions for division of responsibilities and indemnities
related thereto, regarding Federal and State Do-Not-Call, Privacy and SPAM laws. 

 9. New Section 17
(“Sun Facilities and Assets Associated with the Provision of Services”), is added as follows: 
 17. Sun Facilities,
Supplier Facilities and Assets Associated with the Provision of Services 
 17.1 Physical Security. Sun is
responsible for the physical security of the Sun Facilities, provided that Supplier shall be responsible for: (i) compliance with Sun’s physical security standards, requirements and procedures then in effect at the Sun Facilities as
described in Exhibit B, and any minimum legal requirements; and (ii) the safety and 
  
 [****]=Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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physical access and control of the areas that Supplier is using in performing the Services and Supplier shall not permit any person to have access to, or control of, any such area unless such
access or control is permitted in accordance with control procedures approved by Sun or any higher standard agreed to by Sun and Supplier. Supplier shall be solely responsible for compliance by Workers with such control procedures, including
obtaining advance approval to the extent required. 
 17.2 Security. Supplier shall maintain and enforce and be
responsible for Supplier’s employees’, agents’ and Subcontractors’ compliance with the operational, safety and security standards, requirements and procedures then in effect at the Sun Facilities described in Exhibit B, as
such standards, requirements and procedures may be modified by Sun from time to time provided Sun gives Supplier prior written notice of such operational, safety and security standards, requirements and procedures (including modifications) then in
effect at the Sun Facilities. 
 17.3 Sun Rules and Compliance. Sun is responsible for the physical security of the Sun
Facilities, provided that in performing the Services and using the Sun Facilities, Supplier shall observe and comply with all Sun policies, rules, and regulations applicable to Sun Facilities or applicable to the provision of the Services, which
have been provided to and received by Supplier or Workers in advance by such means as are generally used by Sun to disseminate such information to its employees or contractors, including any Sun rules of conduct and those applicable to specific Sun
Facilities, to the extent provided to Supplier, but excluding those aspects of Sun’s rules that are expressly stated as only being applicable to Sun employees. Supplier shall be responsible for the distribution of Sun Rules to Workers to the
extent necessary and appropriate. Additions or modifications to the Sun Rules will be communicated by Sun to Supplier or Workers by such means generally used by Sun to disseminate such information to its employees or contractors. Supplier and
Workers shall observe and comply with such additional or modified Sun Rules, it receives but excluding those aspects of the Sun Rules that are expressly stated as only being applicable to Sun employees. 
 17.4 Compliance with Applicable Laws at the Supplier and Sun Facilities. Supplier, Workers and Sun employees, agents and contractors
shall familiarize themselves with the premises and operations at each Sun or Supplier Facility at or from which Services are rendered and the Sun or Supplier rules applicable to each such site and provided by Sun or Supplier as applicable. Supplier,
Workers and Sun employees, agents and contractors shall observe and comply with all Applicable Laws related to the use of each Sun or Supplier Facility or the provision of the services at the Sun or Supplier Facility, including environmental laws
and laws regarding all industrial insurance, security, occupational health and safety, and export compliance. 
 17.4.1
In providing Services and performing its obligations under this Agreement, Supplier shall: be responsible for the equipment, software, systems and services supplied by Supplier in accordance with all Applicable Laws and shall be responsible for any
acts or omissions of Workers in contravention of such Applicable Laws. Supplier and Workers also shall observe and comply with all Sun Rules with respect to safety, health, security and the environment, to the extent provided to and received by
Supplier, and shall take all necessary and appropriate precautions to avoid injury, property damage, 
  
 [****]=Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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spills or emissions of hazardous substances, materials or waste, and other dangers to persons, property or the environment. To the extent required by Sun, Workers shall receive prescribed
training prior to entering certain Sun Facilities. 
 17.5 Condition of the Facilities. The Parties agree that the Sun or
Supplier Facilities to be used by the other Party in performance of the Services will be in suitable and good working condition consistent with the industry and will contain all necessary tools and utilities (e.g., phone lines, computers, work
stations, etc.) for the Workers or the Sun employees to perform its obligations under the SOW. Workers and Sun employees using the Sun or Supplier Facilities will be treated in line with each Party’s treatment of its own employees and
consistent with the terms of this Agreement and any SOW. 
 10. New Section 21, Security Procedures, is added as follows:

 21. SECURITY PROCEDURES 
 Supplier shall comply with Sun Security Procedures described on Exhibit C or otherwise provided to Supplier. Subject to applicable security requirements, Sun will permit Workers to use certain facilities
(e.g., designated parking facilities, cafeteria, and common facilities) at the Sun facilities that are generally made available to contractors of Sun. Workers will not be permitted to use Sun Facilities designated by Sun for the exclusive use of
certain Sun employees and will not be entitled to the provision or reimbursement of paid parking by Sun. 
 11.
Section 12.1 (“Supplier Indemnification”) is amended to add the following new sub-Sections: 
 12.1.1
(d) Government Claims. Claims by government regulators or agencies for fines, penalties, sanctions, underpayments or other remedies to the extent such fines, penalties, sanctions, underpayments or other remedies caused by Supplier’s
failure to perform its responsibilities under this Agreement. 
 12.1.1(e) Employment Claims. Any claim arising from any;
(i) violation by Supplier, Supplier Affiliated Companies or Subcontractors, or their respective officers, directors, employees, representatives or agents, of any Applicable Laws or of any common law protecting persons or members of protected
classes or categories, including Applicable Laws prohibiting discrimination or harassment on the basis of a protected characteristic; (ii) liability arising or resulting from ****(iii) payment or failure to pay any salary, wages or other
compensation due and owing to any Workers; (iv) employee pension or other benefits of any Workers; (v) other aspects of the employment relationship of Workers with Supplier, Supplier’s Affiliated Companies or Subcontractors or the
termination of such relationship with Supplier, Supplier Affiliated Companies or Subcontractors, ****(vi) any breach by Supplier, Supplier Affiliated Companies or Subcontractors of ****and/or (vii) Workers opposing at any time****.

  
 [****]=Certain information has been omitted and filed
separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 12 

 12.1.1(f) Exceptions to Indemnification for Employment Claims. Notwithstanding the
foregoing, where applicable, Sun agrees that Supplier shall not be required to indemnify Sun for claims arising out of Sun and/or it’s employee’s actions (i) directed toward Workers in violation of laws prohibiting harassment on the
basis of a protected characteristic, (ii) directed toward Workers in violation of Applicable Laws pertaining to treatment of Workers, or (iii) involving workplace health or safety claims pertaining to a violation of Applicable Laws on
Facilities, but excluding claims for workers’ compensation, health and welfare benefits, time off benefits and similar state mandated benefit claims. 
 Section 12.1 is additionally amended as follows: 
 Section 12.1.1(a)
shall be amended to read as follows: “personal injury (including death) or tangible property damage caused by any negligent or intentional acts or omissions of Supplier.” 
 12. Section 16.5 is revised to include the following at the end of the Section: 
 ... Supplier, in furnishing services to Sun, is acting as an independent contractor, and Supplier has the sole obligation to supervise, manage, contract,
direct, procure, perform or cause to be performed, all work to be performed by Supplier under this Agreement. 
 13. A new
Section 16.10 (“Force Majeure: Disaster Recovery”) is added as follows: 
 16.10 Force Majeure: Disaster
Recovery. No Party shall be liable for any default or delay in the performance of its obligations under this Agreement or any Companion Agreement if and to the extent such default or delay is caused, directly or indirectly, by fire, flood,
earthquake, elements of nature or acts of God, wars, riots, civil disorders (other than strikes or other labor action that are specific to Supplier), rebellions or revolutions, acts of terrorism or any other similar cause beyond the reasonable
control of such Party except to the extent that the non-performing Party is at fault in failing to prevent or causing such default or delay, and provided that such default or delay can not reasonably be circumvented by the non-performing Party
through the use of commercially reasonable alternate sources, workaround plans or other means. A strike, lockout or labor dispute involving Workers shall not excuse Supplier from its obligations hereunder. 
 14. A new Section 14.3.5 (“Procedure upon Termination”) shall be added as follows: 
 Upon any termination of an SOW by Sun for any reason, at Sun’s request Supplier will assist Sun by providing transition services which
shall be agreed upon by the parties and Sun shall be obligated to pay for such services at rates agreed upon by the parties in writing. Upon expiration of the Transition Period, if applicable, or if not applicable, then upon any termination of an
SOW or this Agreement, (a) Supplier shall cease providing Services,; and (b) Supplier shall, within ten (10) days or such reasonable time after termination, provide or return to Sun all Sun Resources, Sun Confidential Information, and
other Deliverables owned by Sun pursuant to the Agreement. 
  
 [****]=Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 13 

 15. Section 16.1 (“Notices”) shall be amended as follows: 
 Notices to Supplier shall be sent to Rainmaker Systems Inc., 

	 	Attn:	CFO/Legal 

 900 East Hamilton
Ave. Suite 400, 
 Campbell, CA 95008. 
 16. A new section 16.11 (“Government Calls”) shall be added as follows: 
 16.11 Government Calls. If the scope of any Statement of Work includes Supplier’s handling of calls or related to data associated with Sun contracts with US government agencies (“Government
Contracts”), such calls will be processed in the United States by Rainmaker Personnel who are US Citizens, and who are Rainmaker employees, not contractors. Such calls will be processed in a discrete portion of the Rainmaker or Sun Facility
servicing such calls and will be received via a separate phone number from other services provided by Rainmaker in such facility. Additionally, Rainmaker will maintain the data on IT systems that are located in the United States, and access to those
systems will be limited to US citizens only (including all Workers, end users and back-end system administrators). This requirement shall exist as the result of a specific US governmental regulation or requirement contained in Sun’s Government
Contracts. Rainmaker will establish a process for verifying US citizenship of affected employees, and, at Sun’s request, will certify to Sun that the Rainmaker Personnel providing services associated with Government Contracts are US citizens.

 17. All terms and conditions of the Agreement which are not inconsistent with the terms of this Addendum shall remain in full
force and effect. 
  

									
	RAINMAKER SYSTEMS, INC.	 		 	SUN MICROSYSTEMS, INC.
					
	By	 	 /s/ Steve Valenzuela
	 		 	By	 	 /s/ Mary Beth Walker

			
	Printed Name: Steve Valenzuela	 		 	Printed Name: Mary Beth Walker
			
	Title: Chief Financial Officer	 		 	Title: Vice President - GBO

  
 [****]=Certain
information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 14Form of Warrant

 Exhibit 4.1 
 NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT
OR OTHER LOAN SECURED BY SUCH SECURITIES. 
 THRESHOLD PHARMACEUTICALS, INC. 
 WARRANT 
  

			
	Warrant No. 2009-«No»	 	Dated: October 5, 2009

 Threshold Pharmaceuticals, Inc., a Delaware corporation (the
“Company”), hereby certifies that, for value received, «Name_of_Investor» or its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of «Warrants» shares
of common stock, $0.001 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at an exercise price equal to $2.23
per share (as adjusted from time to time as provided in Section 9, the “Exercise Price”), at any time and on or after the date hereof (the “Initial Exercise Date”) and through and including the date that is
sixty (60) months from the date hereof (the “Expiration Date”), subject to the following terms and conditions. This Warrant (this “Warrant”) is one of a series of similar warrants issued pursuant to that
certain Securities Purchase Agreement, dated as of September 29, 2009, by and among the Company and the Investors identified therein (the “Purchase Agreement”). All such warrants are referred to herein, collectively, as the
“Warrants.” 
 1. Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Purchase Agreement. 
 2.
Registration of Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company
may deem and treat the registered Holder of record of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 

 3. Registration of Transfers. The Company shall register the transfer of any portion
of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified in the Purchase Agreement. Upon any such registration of
transfer, a new warrant to purchase Common Stock, in substantially the form of this Warrant (any such new warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New
Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of
the rights and obligations of a holder of a Warrant. 
 4. Exercise and Duration of Warrants. 
 (a) This Warrant shall be exercisable by the registered Holder at any time and from time to time on or after the Initial Exercise Date and
including the Expiration Date. At 6:30 p.m., New York City time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value. 
 (b) A Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached hereto (the
“Exercise Notice”), appropriately completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form of a “cashless
exercise” if so indicated in the Exercise Notice), and the date such items are delivered to the Company (as determined in accordance with the notice provisions hereof) is an “Exercise Date.” The Holder shall not be required to
deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase
the remaining number of Warrant Shares. 
 5. Delivery of Warrant Shares. 
 (a) Upon exercise of this Warrant, the Company shall promptly issue or cause to be issued and cause to be delivered to or upon the written
order of the Holder and in such name or names as the Holder may designate, a certificate for the Warrant Shares issuable upon such exercise, free of restrictive legends unless a legend is required to be placed on the certificate pursuant to
Section 4.1 of the Purchase Agreement. The Holder, or any Person so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date. The Company shall, upon
the written request of the Holder and provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, use its commercially reasonable efforts, to credit such
aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system (“DWAC”);
provided, that the Holder provides the Company the reasonably necessary details to effect the foregoing DWAC delivery. 
  

 2 

 (b) This Warrant is exercisable, either in its entirety or, from time to time, for a portion
of the number of Warrant Shares. Upon surrender of this Warrant following one or more partial exercises, the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number of Warrant
Shares. 
 (c) The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are
absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or
any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and
irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. The Company acknowledges that the remedy at law for a breach of its obligations under
this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5, that the Holder shall be entitled, in addition to all other available remedies, to an order
and/or injunction restraining any breach and requiring immediate issuance and delivery of certificates representing shares of Common Stock upon the exercise of this Warrant as required pursuant to the terms hereof without the necessity of showing
economic loss and without any bond or other security being required. 
 6. Charges, Taxes and Expenses. Issuance and
delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any
certificates for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon
exercise hereof. 
 7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft
or destruction and customary and reasonable bond or indemnity, if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party
costs as the Company may prescribe. 
 8. Reservation of Warrant Shares. The Company covenants that it will at all times
reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of
Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (after giving effect to the adjustments and
restrictions of Section 9, if any). The Company covenants that all Warrant

  

 3 

 
Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid
and nonassessable. The Company will take all such action as may be necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any securities
exchange or automated quotation system upon which the Common Stock may be listed. 
 9. Certain Adjustments. The Exercise
Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 9. 
 (a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of
capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each
such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or
distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. 
 (b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, distributes to holders of Common Stock
(i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding paragraph), (iii) rights or warrants to subscribe for or purchase any security, or (iv) cash or any other
asset (in each case, “Distributed Property”), then in each such case the Holder shall be entitled, upon exercise of this Warrant for the purchase of any or all of the Warrant Shares, to receive the amount of Distributed Property
which would have been payable to the Holder had such Holder been the holder of such Warrant Shares on the record date for the determination of stockholders entitled to such Distributed Property. The Company will at all times set aside in escrow and
keep available for distribution to such holder upon exercise of this Warrant a portion of the Distributed Property to satisfy the distribution to which such Holder is entitled pursuant to the preceding sentence. 
 (c) Fundamental Transactions. If, at any time while this Warrant is outstanding, (i) the Company effects any merger or
consolidation of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders of Common Stock owning more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making or affiliated with the
Persons making the tender or exchange offer) tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the
Common Stock is effectively converted into or exchanged for other

  

 4 

 
securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 9(a) above) (in any such case, a “Fundamental
Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, on a per share basis, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the
occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise of this Warrant (the “Alternate Consideration”).
The aggregate Exercise Price for this Warrant will not be affected by any such Fundamental Transaction, but the Company shall apportion such aggregate Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as
to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder’s request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the
Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (c) and insuring that the Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental Transaction. 
 (d) Subsequent Equity Sales. If the
Company, at any time while this Warrant is outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise issue any Common Stock or Common Stock Equivalents (as defined below) entitling any person to
acquire shares of Common Stock, at an effective price per share less than the then Exercise Price (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (if the holder of
the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per
share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share which is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise
Price on such date of the Dilutive Issuance), then if such Dilutive Issuance shall occur, the Exercise Price shall be reduced to be equal to the Base Share Price; provided, however, that in no event may the Exercise Price be less than
the Per Share Price as defined in the Purchase Agreement. Notwithstanding the foregoing, no adjustments shall be made, paid or issued under this Section 9(d) in respect of an Exempt Issuance. For purposes of this Warrant: Common Stock
Equivalents shall mean securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly, shares of Common Stock; and Exempt Issuance shall mean the issuance of: (a) shares of Common Stock or
Common Stock Equivalents, or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose by the Board of Directors or a majority of the members of a committee established for such
purpose by the Board of Directors; (b) securities issuable upon the exercise of the Warrants and/or the exercise or conversion of Common Stock Equivalents issued and outstanding on the date of this Warrant; provided, that such securities
have not been amended since the date of the Warrants to increase the number of such securities or to decrease the exercise, exchange or conversion price

  

 5 

 
of such securities; (c) securities issuable in accordance with existing obligations of the Company to Company employees, officers, directors, consultants or agents; (d) securities
issuable to any employees or former agents of the Company in satisfaction of or in settlement of any disputes or controversies concerning the terms of such person’s employment or separation from the Company; (e) securities issued for
consideration other than cash pursuant to a merger, consolidation, acquisition, licensing or similar business combination the primary purpose of which is not to raise equity capital; (f) securities issued in connection with any stock split,
stock dividend, recapitalization or similar transaction by the Company; (g) securities issued as consideration, whether in whole or in part, to any person or entity for providing services or supplying goods to the Company; (h) securities
issued to any entity which is or will be, itself or through its subsidiaries or affiliates, an operating company in a business related to or complementary with the business of the Company and in which the Company receives material benefits in
addition to the investment of funds; (i) securities issued pursuant to any equipment leasing arrangement; and (j) securities issued to pay all or a portion of any investment banking, finders or similar fee or commission, which entitles the
holders thereof to acquire shares of Common Stock at a price not less than the market price of the Common Stock on the date of such issuance and which is not subject to any adjustments other than on account of stock splits and reverse stock splits.

 (e) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to Section 9(a),
the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be adjusted proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares,
as applicable, shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment. 
 (f)
Calculations. All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or
held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock. 
 (g) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly compute such adjustment in accordance with the terms of
this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable),
describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the
Transfer Agent. 
 (h) Notice of Corporate Events. If the Company (i) declares a dividend or any other distribution
of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves,
enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company,

  

 6 

 
then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction, at least ten (10) calendar days prior to the applicable record or
effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical
opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of
the corporate action required to be described in such notice. 
 10. Payment of Exercise Price. The Holder shall pay the
Exercise Price (i) in cash in immediately available funds or (ii) through a “cashless exercise,” in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows: 
  

			
		  	X = Y [(A-B)/A]
		
	where:	  	
		
		  	X = the number of Warrant Shares to be issued to the Holder.
		
		  	Y = the number of Warrant Shares with respect to which this Warrant is being exercised.
		
		  	A = the average of the Closing Prices for the five Trading Days immediately prior to (but not including) the Exercise Date.
		
		  	B = the Exercise Price.

 For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was
originally issued pursuant to the Purchase Agreement. 
 11. Fractional Shares. The Company shall not be required to
issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant. If any fraction of a Warrant Share would, except for the provisions of this Section, be issuable upon exercise of this Warrant, the number of Warrant Shares to be
issued will be rounded up to the nearest whole share. 
 12. Notices. Any and all notices or other communications or
deliveries hereunder (including without limitation any Exercise Notice) 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 specified in the Purchase Agreement prior to 6:30 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in the Purchase Agreement on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to

  

 7 

 
whom such notice is required to be given. The address for such notices or communications shall be as set forth in the Purchase Agreement with respect to the Company and, with respect to the
Holder, the Holder’s last address as shown on the Warrant Register. 
 13. Warrant Agent. The Company shall serve as
warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any
consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or stockholder services business shall be a successor
warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last
address as shown on the Warrant Register. 
 14. Investment Intent; Limited Transferability. 
 (a) The Holder represents, by accepting this Warrant, that it understands that this Warrant and any securities obtainable upon exercise of
this Warrant have not been registered for sale under Federal or state securities or blue sky laws and are being offered and issued to the Holder pursuant to one or more exemptions from the registration requirements of such securities laws. In the
absence of an effective registration of such securities or an exemption therefrom, any certificates for such securities shall bear a legend substantially similar to the legend set forth on the first page hereof. The Holder understands that it must
bear the economic risk of its investment in this Warrant and any securities obtainable upon exercise of this Warrant for an indefinite period of time, as this Warrant and such securities have not been registered under Federal or state securities or
blue sky laws. 
 (b) The Holder represents that it has been afforded: (i) the opportunity to ask such questions as it has
deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of this Warrant or the exercise of the Warrant and the finance, operations and business of the Company; and (ii) the
opportunity to request such additional information which the Company possesses or can acquire without unreasonable effort or expense. Nothing contained in this Section 14(b) shall alter, amend or change the Holder’s reliance on the
representations, covenants or warranties contained herein. 
 (c) The Holder represents that it did not (i) receive or
review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or broadcast over television or radio, whether closed circuit, or generally available, or (ii) attend any seminar, meeting or
investor or other conference whose attendees were, to such Holder’s knowledge, invited by any general solicitation or general advertising. 
 (d) The Holder represents that it is an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act and that it is acquiring the Warrants for its own account
and not with a present view to, or for sale in connection with, any distribution thereof in violation of the registration requirements of the Securities Act, without prejudice, however, to such Holder’s right, subject to the provisions of this
Warrant, at all times to sell or otherwise dispose of all or any part of the Warrant and Warrant Shares. 
  

 8 

 (e) The Holder represents that it, either by reason of such Holder’s business or
financial experience or the business or financial experience of its professional advisors (who are unaffiliated with and who are not compensated by the Company or any affiliate, finder or selling agent of the Company, directly or indirectly), has
such sophistication, knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in the Company and the capacity to protect such Holder’s interests in connection with the
transactions contemplated by this Warrant and the Purchase Agreement. 
 (f) The Holder represents that it has the ability to
bear the economic risks of its investment for an indefinite period of time and could afford a complete loss of its investment. 
 (g) The Holder agrees and acknowledges that the representations made by the Holder in this Section 14 are conditions to the exercise of this Warrant. 
 15. Limitation on Exercise. 
 [(a) Notwithstanding
anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following
such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for
purposes of Section 13(d) of the Securities Exchange Act of 1934 (“Exchange Act”), does not exceed 9.9% (the “Maximum Percentage”) of the total number of issued and outstanding shares of Common Stock (including
for such purpose the shares of Common Stock issuable upon such exercise). For purposes of this Warrant, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. By written notice to the Company, the Holder may waive the provisions of this Section or increase or decrease the Maximum Percentage to any other percentage specified in such notice, but (i) any such waiver or increase will not be
effective until the 61st day after such notice is delivered to the Company and (ii) any such waiver or increase or decrease will apply only to the Holder and not to any other holder of Warrants.]1 
 (b) Notwithstanding anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof)
shall be limited to the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial
ownership of Common Stock would be aggregated with the Holder’s for purposes of the rules of the Nasdaq Stock Market does not exceed 19.9% of the total number of issued and outstanding shares of Common Stock (including for such purpose the
shares of Common Stock issuable upon such exercise). 
 (c) Each delivery of an Exercise Notice hereunder will constitute a
representation by the Holder that it has evaluated the limitation set forth in this paragraph and determined that issuance of the full number of Warrant Shares requested in such Exercise Notice is permitted under this paragraph. Upon the written or
oral request of a Holder, the Company 
  
  
  
  
  
  
  
  
  
  
  
  

	1	 This option is optional; subject to preference of the Holder. 

  

 9 

 
shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by such Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.
The Company’s obligation to issue shares of Common Stock in excess of the limitation referred to in this Section shall be suspended (and shall not terminate or expire notwithstanding any contrary provisions hereof) until such time, if any, as
such shares of Common Stock may be issued in compliance with such limitation, but in no event later than the Expiration Date. 
 16. Miscellaneous. 
 (a) Subject to the restrictions on transfer set forth on the first page hereof, this
Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company except to a successor in the event of a Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the parties hereto and their
respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant.
This Warrant may be amended only in writing signed by the Company and the Holder and their successors and assigns. 
 (b) The
Company will not, by amendment of its governing documents or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder
against impairment. Without limiting the generality of the foregoing, the Company (i) will not increase the par value of any Warrant Shares above the amount payable therefor on such exercise, (ii) will take all such action as may be
reasonably necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares on the exercise of this Warrant, and (iii) will not close its stockholder books or records in any manner
which interferes with the timely exercise of this Warrant. 
 (c) All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the city of New York, borough of Manhattan, 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 any of the
transaction documents), 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, or that such suit, action or proceeding is
improper. Each party 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 Section 12 hereof 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. The Company hereby waives all rights to a trial by jury. 
  

 10 

 (d) The headings herein are for convenience only, do not constitute a part of this Warrant
and shall not be deemed to limit or affect any of the provisions hereof. 
 (e) In case any one or more of the provisions of
this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to
agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant. 
 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK, 
 SIGNATURE PAGE
FOLLOWS 
  

 11 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its
authorized officer as of the date first indicated above. 
  

			
	THRESHOLD PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 12 

 FORM OF EXERCISE NOTICE 
 (To be executed by the Holder to exercise the right to purchase shares of 
 Common Stock under the foregoing Warrant) 
 To Threshold Pharmaceuticals, Inc.: 
 The undersigned is the Holder of Warrant No.              (the
“Warrant”) issued by Threshold Pharmaceuticals, Inc., a Delaware corporation (the “Company”). As a condition to this exercise, the undersigned Holder hereby represents and warrants to the Company that the
representations and warranties set forth in Section 14 of the Warrant are true and correct as of the date hereof as if they had been made on such date with respect to the Warrant Shares. The undersigned Holder further acknowledges that the
sale, transfer, assignment or hypothecation of the Warrant Shares to be issued upon exercise of this Warrant is subject to the terms and conditions contained in Section 14 and Section 15 of this Warrant. Capitalized terms used herein and
not otherwise defined have the respective meanings set forth in the Warrant. 
  

	1.	The Warrant is currently exercisable to purchase a total of
                     Warrant Shares. 

  

	2.	The undersigned Holder hereby exercises its right to purchase
                     Warrant Shares pursuant to the Warrant. 

  

	3.	The Holder intends that payment of the Exercise Price shall be made as (check one): 

              “Cash Exercise” under Section 10       
              “Cashless Exercise” under Section 10

  

	4.	If the holder has elected a Cash Exercise, the holder shall pay the sum of $         to the Company in accordance with
the terms of the Warrant. 

  

	5.	Pursuant to this exercise, the Company shall deliver to the holder
                     Warrant Shares in accordance with the terms of the Warrant. 

  

	6.	Following this exercise, the Warrant shall be exercisable to purchase a total of
                     Warrant Shares. 

  

							
	Dated:                      ,
            	 		 	Name of Holder:
				
		 		 	(Print)	 	  

				
		 		 	By:	 	  

		 		 	Name:	 	  

		 		 	Title:	 	  

							
		 		 		 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
		 		 		 	  

		 		 		 	Taxpayer Identification Number
			
	 ACKNOWLEDGED AND AGREED TO this      day
of
            , 20    
  
 THRESHOLD PHARMACEUTICALS, INC.
	 		 	
				
	 By:
	 	  
	 		 	
	 Name:
	 	  
	 		 	
	 Title:
	 	  
	 		 	

 FORM OF ASSIGNMENT 
 [To be completed and signed only upon transfer of Warrant] 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto                      the right represented by the within
Warrant to purchase                      shares of Common Stock of Threshold Pharmaceuticals, Inc. to which the within Warrant relates and
appoints                      attorney to transfer said right on the books of Threshold Pharmaceuticals, Inc. with full power of substitution
in the premises. As a condition to this assignment, the Holder acknowledges that its assignee must deliver a written instrument to the Company that the representations and warranties of Section 14 of the Warrant are true and correct as of the
date hereof as if they had been made by such assignee on such date with respect to the Warrants. 
  

					
	Dated:                     ,
        	 		 	
			
		 		 	  

		 		 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
			
		 		 	  

		 		 	Address of Transferee
			
		 		 	  

			
		 		 	  

			
		 		 	  

		 		 	Taxpayer Identification Number
	In the presence of:

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