Document:

Senior Notes Exchange Agreement dated February 22,2008

 Exhibit 10.2 
 SENIOR NOTES EXCHANGE AGREEMENT 
 This Senior Notes Exchange Agreement (the
“Agreement”) is entered into as of the 22nd day of February, 2008, by and among Verenium Corporation, a Delaware corporation (“Verenium”), and each of the holders listed on the schedules hereto (each a
“Holder” and, collectively, the “Holders”), with reference to the following facts: 
 WHEREAS, each Holder
is the beneficial owner of certain of the outstanding 5.50% Convertible Senior Notes due 2027 (the “Old Notes”) of Verenium as set forth on such Holder’s Schedule I hereto; 
 WHEREAS, each Holder wishes to exchange those Old Notes owned by it that are listed on its Schedule I for (i) new 8.00% Senior Convertible
Notes due 2012 (the “New Notes”) of Verenium in an amount as set forth on such Holder’s Schedule I, and (ii) warrants (the “Warrants”) to acquire up to that number of additional shares of Verenium’s
stock (the “Warrant Shares”) as set forth on such Holder’s Schedule I, and on the basis set forth in this Agreement and on the terms and conditions described on Exhibit A; 
 WHEREAS, Verenium wishes to effectuate such exchange on the basis set forth in this Agreement and on the terms and conditions described on Exhibit
A; 
 WHEREAS, simultaneously with the execution of this Agreement, the parties are entering into a securities purchase agreement, (the
“Securities Purchase Agreement”) whereby each Holder is purchasing New Notes and Warrants from Verenium in amounts listed on Schedule I (the “New Note Purchase”). 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree as follows:

 1. Exchange. Subject to the terms and conditions of this Agreement and those set forth on Exhibit A, each Holder severally,
and not jointly agrees to sell, and Verenium agrees to purchase, the Old Notes owned by such Holder and set forth on such Holder’s Schedule I in exchange for the New Notes and Warrants. At the Closing (as defined below), or thereafter in
the case of interest payments, the following transactions shall occur (such transactions in this Section 1 with respect to each Holder, the “Exchange”): 
 1.1 Each Holder shall severally, and not jointly sell, assign and transfer to Verenium (or its designee) all right, title and interest in and to, and all
Claims in respect of, or arising or having arisen as a result of such Holder’s status as a holder of, such Holder’s Old Notes listed on Schedule I for such Holder, free and clear of all Liens. 
 1.2 Verenium shall pay or cause to be paid to each Holder in cash the sum of (a) all accrued and unpaid interest on the Old Notes transferred by
such Holder pursuant to Section 1.1 to, but not including, the Closing Date (as defined below), on the basis set forth in the Old Notes, and (b) in lieu of issuing fractional interests in New Notes, an amount equal to the principal amount
(not to exceed $1,000 for any Holder) of any fractional interests in New Notes which would have been issued but for the last sentence of Section 1.3. Such payment shall be made within three business days following the Closing Date. 

 1.3 In exchange for the transfer, sale and assignment of the Old Notes by each Holder to Verenium,
Verenium shall deliver or cause to be delivered to such Holder the principal amount of New Notes and Warrants as set forth on such Holder’s Schedule I hereto. New Notes shall be issued only in minimum denominations of $1,000 and integral
multiples thereof, and no fractional interests in New Notes shall be issued. 
 1.4 The New Notes and Warrants shall contain terms as
substantially set forth on Exhibit A, together with such terms agreed to in writing by Verenium and the Holders. Verenium shall enter into a registration rights agreement (the “Registration Rights Agreement”) with each Holder
on customary terms and conditions, including those on Exhibit A. Verenium and each Holder shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary to effectuate the Exchange in connection with
the Closing. 
 1.5 Closing. Upon confirmation that the other conditions to closing specified herein have been satisfied or duly
waived by the Holders or Verenium, as applicable, the closing of the Exchange (the “Closing”) shall occur on February 27, 2008 or such other date (the “Closing Date”) as is mutually acceptable to the Holders
and Verenium. 
 2. Representations and Warranties of Verenium. Verenium represents and warrants to each Holder, as of the date
hereof, and as of the Closing Date that: 
 2.1 Organization and Qualification. Verenium is duly organized, validly existing and in
good standing under the laws of Delaware and has the requisite corporate power and authority to enter into and perform its obligations under the Transaction Documents to which it is a party. 
 2.2 Authorization and Binding Obligation. Verenium has full corporate power to execute and deliver the Transaction Documents. The execution and
delivery of this Agreement by Verenium and the performance of its obligations hereunder have been, and the execution and delivery by Verenium of the other Transaction Documents and the performance of their respective obligations thereunder have been
duly authorized by all necessary corporate action, and no other corporate proceedings (other than shareholders’ meetings whereby Verenium will seek shareholder approval of certain share issuances under the Transaction Documents in order that
such share issuances will comply with applicable Nasdaq rules and regulations) on Verenium’s part are necessary for the execution and delivery of this Agreement and the other Transaction Documents, and the performance of Verenium’s
obligations provided for herein and therein. This Agreement has been, and the other Transaction Documents have been, or on or prior to the Closing Date will be, duly executed and delivered by and, assuming this Agreement and the other Transaction
Documents are or, on or prior to the Closing Date, will be binding obligations of each Holder party thereto, this Agreement constitutes, and the other Transaction Documents constitute, or on or prior to the Closing Date will constitute, valid and
binding obligations of Verenium, enforceable against Verenium in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to
general equity principles. 
  

 2 

 2.3 No Conflict; Required Filings and Consents. 
 (a) The execution and delivery of this Agreement and the other Transaction Documents by Verenium, and the performance of Verenium’s obligations
hereunder and thereunder, will not (i) conflict with or violate organizational documents, (ii) conflict with or violate any Legal Requirement applicable to Verenium, or by which any of their respective properties is bound or affected, or
(iii) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other
instrument to which Verenium is a party or by which Verenium or any of its properties is bound or affected, except where, in the case of clauses (ii) and (iii), any of the foregoing would not, either individually or in the aggregate, have or
reasonably be expected to have a Material Adverse Effect. 
 (b) The execution and delivery of this Agreement and the other Transaction
Documents by Verenium, and the performance of their obligations hereunder and thereunder, will not require any prior consent, approval or authorization, or prior filing with or notification to, any Governmental Authority, except for an 8-K filing
and filings of one or more registration statements on Form S-3 under the Registration Rights Agreement and except where the failure to obtain such prior consents, approvals or permits, or to make such prior filings or notifications, would not have
or reasonably be expected to have a Material Adverse Effect. 
 2.4 Material Disclosure. There has been no change in the business or
financial condition of Verenium and its subsidiaries, taken as a whole, since September 30, 2007, which would reasonably be expected to have a Material Adverse Effect, except as has been disclosed or contained or reflected in any press release
issued prior to the date of this Agreement or in any report, schedule, form, statement or other document (together with all exhibits, financial statements, schedules and any amendments thereto) that has been filed by Verenium with the Securities
Exchange Commission (the “SEC”) prior to the date of this Agreement. 
 2.5 No Integration. Neither Verenium nor any
of its affiliates (as defined in Rule 501(b) of Regulation D of the Securities Act (“Regulation D”)) has, directly or through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any
security (as defined in the Securities Act), that is or will be integrated with the sale of the New Notes or Warrants in a manner that would require registration of the New Notes or Warrants under the Securities Act. 
 2.6 No General Solicitation. Neither Verenium nor any of its affiliates or any other person acting on its or their behalf (other than the Holders
or their affiliates or any other person acting on their behalf, as to which no representation is made) has solicited offers for, or offered or sold, the New Notes or Warrants by means of any form of general solicitation or general advertising within
the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
 2.7 Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Holders contained herein and their compliance with their agreements set forth herein, it is not necessary, in
connection with the issuance and sale of the New Notes or Warrants to the Holders, to register the New Notes or Warrants under the Securities Act. 
  

 3 

 2.8 Public Documents. Verenium has filed all reports, registration statements, proxy statements,
and other materials, together with any amendments required to be made with respect thereto, that were required to be filed with the SEC under the Securities Act or the Exchange Act from and after December 31, 2006 (all such reports and
statements are collectively referred to herein as the “Commission Filings”). As of their respective filing dates, the Commission Filings, including the financial statements contained therein, complied in all material respects with
all of the statutes and published rules and regulations enforced or promulgated by the regulatory authority with which the Commission Filings were filed, including, without limitation, that the Commission Filings did not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. 
 2.9 Underlying Shares. As of the Closing, a number of shares of Common Stock shall have been duly authorized and reserved for issuance which
equals or exceeds 150% of the aggregate of the maximum number of shares of Common Stock issuable (i) upon conversion of the New Notes, (ii) upon exercise of the Warrants and (iii) as Interest Shares pursuant to the terms of the New
Notes. Upon conversion or exercise in accordance with the New Notes or the Warrants, as the case may be, the Conversion Shares, the Interest Shares and the Warrant Shares, respectively, will be validly issued, fully paid and nonassessable and free
from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. 
 2.10 Common Stock. All of the outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and non-assessable.

 2.11 Further Representations. In addition to the representations and warranties made by Verenium herein, Holder may rely on the
representations and warranties made by Verenium in Sections 3(f), (i), (j), (l) and (n) through (mm) of the Securities Purchase Agreement. 
 3. Representations and Warranties of each Holder. 
 Each Holder represents and warrants to Verenium,
as of the date hereof and as of the Closing Date, as follows: 
 3.1 Organization’s Authority. Such Holder is an entity duly
organized and validly existing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents to which it is a party and
otherwise to carry out its obligations hereunder and thereunder. 
 3.2 Ownership of Securities. Such Holder owns, beneficially, all
of the Old Notes set forth in Column I on such Holder’s Schedule I attached hereto. Such Holder owns all of such Old Notes free and clear of any Liens (other than the obligations pursuant to this Agreement). Without limiting the
foregoing, except for such Holder’s obligations under this Agreement, such Holder has sole power of disposition with respect to all such Old Notes, with no restrictions on its rights of disposition pertaining thereto and no person or entity
other than such Holder has any right to direct or approve the disposition of any such Old Notes. All of such Holder’s Old Notes are held for the account of such Holder by the entity named on its signature page of this Agreement. 
  

 4 

 3.3 No Sale or Distribution. Such Holder is acquiring the New Notes and the Warrants, and upon
conversion of the New Notes and exercise of the Warrants (other than pursuant to a Cashless Exercise (as defined in the Warrants)) will acquire the Conversion Shares issuable upon conversion of the New Notes, the Warrant Shares issuable upon
exercise of the Warrants, and the Interest Shares pursuant to the terms of the New Notes for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered
or exempted under the Securities Act; provided, however, that by making the representations herein, such Holder does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities
at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act and pursuant to the applicable terms of the Transaction Documents. Such Holder is acquiring the Securities hereunder in the ordinary
course of its business. Such Holder does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. 
 3.4 Accredited Investor Status. Such Holder is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D. 
 3.5 Reliance on Exemptions. Such Holder understands that the Securities are being offered and exchanged in reliance on specific exemptions from
the registration requirements of United States federal and state securities laws and that Verenium is relying in part upon the truth and accuracy of, and such Holder’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Holder set forth herein and in the Transaction Documents in order to determine the availability of such exemptions and the eligibility of such Holder to acquire the Securities. 
 3.6 Information. Such Holder and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of
Verenium and materials relating to the offer and sale of the Securities that have been requested by such Holder. Such Holder and its advisors, if any, have been afforded the opportunity to ask questions of Verenium. Neither such inquiries nor any
other due diligence investigations conducted by such Holder or its advisors, if any, or its representatives shall modify, amend or affect such Holder’s right to rely on Verenium’s representations and warranties contained herein. Such
Holder understands that its investment in the Securities involves a high degree of risk and is able to afford a complete loss of such investment. Such Holder has sought such accounting, legal and tax advice from Persons other than Verenium as it has
considered necessary to make an informed investment decision with respect to its acquisition of the Securities. 
 3.7 No Governmental
Review. Such Holder understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the
investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 
  

 5 

 3.8 Transfer or Resale. Such Holder understands that except as provided in the Registration Rights
Agreement and the Transaction Documents: (i) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless
(A) subsequently registered thereunder, (B) such Holder shall have delivered to Verenium an opinion of counsel, in a generally acceptable form, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or
transferred pursuant to an exemption from such registration, or (C) such Holder provides Verenium with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the
Securities Act, as amended (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule
144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person) through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with
some other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and (iii) neither Verenium nor any other Person is under any obligation to register the Securities under the Securities Act or any state
securities laws or to comply with the terms and conditions of any exemption thereunder. The Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge of
Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Holder effecting a pledge of Securities shall be required to provide Verenium with any notice thereof or otherwise make any delivery to Verenium
pursuant to this Agreement or any other Transaction Document, including, without limitation, this Section 3.7. 
 3.9 Legends.
Such Holder understands that the certificates or other instruments representing the New Notes and the Warrants and, until such time as the resale of the Conversion Shares and the Warrant Shares have been registered under the Securities Act as
contemplated by the Registration Rights Agreement, the stock certificates representing the Conversion Shares and the Warrant Shares, except as set forth below, shall bear any legend as required by the “blue sky” laws of any state and a
restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates): 
 [NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE] [EXERCISABLE] HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN]
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 
  

 6 

 The legend set forth above shall be removed and Verenium shall issue a certificate without such legend to the holder of
the Securities upon which it is stamped, if, unless otherwise required by state securities laws, (i) such Securities are registered for resale under the Securities Act and sold under an effective registration statement in a transaction either
exempt from the prospectus delivery requirements or in which the prospectus delivery requirements were satisfied, (ii) in connection with a sale, assignment or other transfer, such holder provides Verenium with an opinion of a law firm
reasonably acceptable to Verenium (with Paul, Hastings, Janofsky & Walker LLP being deemed acceptable), in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration
under the applicable requirements of the Securities Act, or (iii) such holder provides Verenium with reasonable assurance that the Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A. 
 3.10 Validity; Enforcement. This Agreement, the Registration Rights Agreement and the Transaction Documents have been duly and validly authorized,
executed and delivered on behalf of such Holder and shall constitute the legal, valid and binding obligations of such Holder enforceable against such Holder in accordance with their respective terms, except as such enforceability may be limited by
general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

3.11 No Conflicts. The execution, delivery and performance by such Holder of this Agreement and the Registration Rights Agreement and the
Transaction Documents, and the consummation by such Holder of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Holder or (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Holder is a party,
or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Holder, except in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Holder to perform its obligations hereunder. 
 3.12 Residency. Such Holder is a resident of that jurisdiction specified below its address on the Holder’s signature page to the Exchange
Agreement. 
 3.13 Certain Trading Activities. Other than with respect to this agreement and the transactions contemplated herein,
since the time that such Holder was first contacted by Verenium, the Agents or any other Person regarding this investment in Verenium, neither the Holder nor any Affiliate (as defined by Rule 405 promulgated pursuant to the Securities Act) of such
Holder which (i) had knowledge of the transactions contemplated hereby, (ii) has or shares discretion relating to such Holder’s investments and trading or information concerning such Holder’s investments and (iii) is subject
to such Holder’s review or input concerning such 

  

 7 

 
Affiliate’s investments or trading (collectively, “Trading Affiliates”) has directly or indirectly, nor has any Person acting on behalf of or
pursuant to any understanding with such Holder or Trading Affiliate, effected or agreed to effect any transactions in the securities of Verenium. Such Holder hereby covenants and agrees not to, and shall cause its Trading Affiliates not to, engage,
directly or indirectly, in any transactions in the securities of Verenium or involving Verenium’s securities during the period from the date hereof until such time as (a) the transactions contemplated by this Agreement are first publicly
announced as described in Section 4.3 hereof or (b) this Agreement is terminated in full. Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any
actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect short sales or similar transactions in the future. 
 4. Covenants. 
 4.1 Reasonable Best
Efforts to Close. Verenium and each Holder shall use commercially reasonable best efforts to take such actions as are necessary or desirable to consummate the transactions contemplated by this Agreement. 
 4.2 Limitations on Transfer. During the period between the execution of this Agreement and ending at the earlier of (a) the termination of
this Agreement, or (b) the Closing Date, no Holder shall sell, assign or transfer any interest in its Old Notes which are the subject of this Agreement, or otherwise take any action which would inhibit or impair such Holder’s ability to
deliver such Old Notes at the Closing in compliance with the terms of this Agreement. 
 4.3 Confidentiality. Each Holder shall keep
the existence and terms of the transaction confidential until the issuer publicly announces the transaction. Verenium will publicly announce the transaction promptly following the closing. 
 4.4 No Integration. Neither Verenium, nor any of its affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through any agent,
sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities Act), that is or will be integrated with the sale of the New Notes or Warrants in a manner that would require registration
of the New Notes or Warrants under the Securities Act. 
 4.5 No General Solicitation. None of Verenium or any of its affiliates or
any other person acting on its or their behalf (other than the Holders and its affiliates, as to which no covenant is given) will solicit offers for, or offer or sell, the New Notes or Warrants by means of any form of general solicitation or general
advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
 4.6 Cancellation; No Distribution of Old Notes. Upon receipt of the Old Notes by Verenium, such Old Notes will be cancelled and will cease to be outstanding. Verenium shall not resell or reissue the Old Notes
in any manner that would cause the Holder to be engaged in a distribution of the Old Notes under the Securities Act. 
 4.7 Tax
Treatment. The parties agree to treat the issuance of the New Notes and Warrants in exchange for the Old Notes as a taxable exchange for United States federal income tax purposes, unless otherwise required by law, and acknowledge that, depending
upon the circumstances, the New Notes may bear original issue discount. 
  

 8 

 5. Conditions to Closing. 
 5.1 Conditions to the Obligations of each Holder. The obligations of each Holder to close the Exchange are subject to the fulfillment on or before
the Closing Date of the following: 
 (a) No Injunction or Proceeding. As of the Closing, there shall be no injunction, stay or
restraining order in effect with respect to the transactions provided for herein and there shall not be pending any action, proceeding or investigation involving such Holder challenging or seeking damages from such Holder in connection with the
Exchange or seeking to restrain or prohibit the consummation of the Exchange. 
 (b) Accuracy of Representations. The representations
and warranties made by Verenium in this Agreement shall have been accurate in all material respects as of the date of this Agreement and shall be accurate in all material respects as of the Closing Date as if made on the Closing Date (except those
qualified by Material Adverse Effect, which shall be accurate in all respects). 
 (c) Performance. The covenants and obligations
that Verenium is required to comply with or to perform pursuant to this Agreement at or prior to the Closing shall have been complied with and performed in all material respects. 
 (d) Execution and Delivery of Transaction Documents. The Transaction Documents shall have been executed and delivered by all parties thereto
(other than the Holders) and delivered to the Holder. 
 (e) Opinion. Skadden, Arps, Slate, Meagher & Flom LLP, counsel for
Verenium, shall have furnished to the Holders, their written opinion, dated the Closing Date and addressed to the Holders, in form and substance customary and appropriate for a transaction of this type and reasonably satisfactory to the Holders.

 (f) Closing of New Note Purchase. The New Note Purchase shall have been consummated. 
 5.2 Conditions to the Obligations of Verenium. The obligations of Verenium to close the Exchange are subject to the fulfillment on or before the
Closing Date of the following: 
 (a) No Injunction or Proceeding. As of the Closing, there shall be no injunction, stay or
restraining order in effect with respect to the transactions provided for herein and there shall not be pending any action, proceeding or investigation challenging or seeking damages in connection with the Exchange or seeking to restrain or prohibit
the consummation of the Exchange. 
  

 9 

 (b) Accuracy of Representations. The representations and warranties made by each Holder in this
Agreement shall have been accurate in all material respects as of the date of this Agreement and shall be accurate in all material respects as of the Closing Date as if made on the Closing Date. 
 (c) Performance. The other covenants and obligations that each Holder is required to comply with or to perform pursuant to this Agreement at or
prior to such Closing shall have been complied with and performed in all material respects. 
 (d) Execution and Delivery of Transaction
Documents. The Transaction Documents shall have been executed and delivered by all parties thereto (other than Verenium) and delivered to Verenium. 
 (e) Closing of New Note Purchase. The New Note Purchase shall have been consummated and the Holder shall have purchased pursuant to the Securities Purchase Agreement the amount of New Notes specified in Column
IV of Schedule I hereto. 
 6. Termination. 
 6.1 By Mutual Consent. This Agreement may be terminated at any time prior to the Closing Date by the mutual written consent of Verenium and the Holder. 
 6.2 By Holder. This Agreement may be terminated by the Holder, upon a material breach of any representation, warranty, covenant or agreement on
the part of Verenium set forth in this Agreement, such that the conditions set forth in Section 5.1(b) or 5.1(c) would not be satisfied and in such case not less than ten (10) business days after written notice of such breach by the
Holders to Verenium if Verenium has not cured such breach. 
 6.3 By Verenium. This Agreement may be terminated by Verenium, upon a
material breach of any representation, warranty, covenant or agreement on the part of any Holder set forth in this Agreement, such that the conditions set forth in Section 5.2(b) or Section 5.2(c) would not be satisfied and in such case
not less than ten (10) business days after written notice of such breach by Verenium to the Holder(s) if such Holder has not cured such breach. 
 6.4 Failure to Close. If the Closing does not occur on or before five business days from the date hereof, then any Holder or Verenium may terminate this Agreement by delivery of written notice of termination to
the other parties hereto; provided, however, any party that is in material breach of this Agreement shall not have the right to terminate this Agreement pursuant to this Section 6.4. 
 6.5 Effect of Termination. If this Agreement is terminated as provided in this Section 6, then this Agreement will forthwith become null and
void and there will be no liability on the part of any party hereto to any other party hereto or any other person or entity in respect thereof, provided that: (i) the obligations of the parties described in Section 7.3 will survive
any such termination; and (ii) no such termination will relieve any party from liability for breach of its obligations under this Agreement, and in such event the other parties shall have all rights and remedies available at law or equity,
including the right of specific performance against such party. 
  

 10 

 7. Miscellaneous. 
 7.1 Governing Law. This Agreement shall be governed in all respects by the internal laws of the State of New York without regard to principles of conflicts of law or choice of law. 
 7.2 Further Assurances; Additional Documents. The parties shall take any actions and execute any other documents that may be necessary or
desirable to the implementation and consummation of this Agreement upon the reasonable request of the other party. 
 7.3 Fees and
Expenses. Each party shall be responsible for its own fees and expenses incurred in connection with this Agreement. 
 7.4
Severability. If any term or provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other terms and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon determination that any term or other
provision of this Agreement is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to attempt to agree on a modification of this Agreement so as to effect the original intent of the parties as closely as
possible to the fullest extent permitted by law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the greatest extent possible. 
 7.5 Entire Agreement. This Agreement and the other Transaction Documents represent the entire agreement and understandings between the parties
concerning the Exchange and the other matters described therein and supersedes and replaces any and all prior agreements and understandings. 
 7.6 No Oral Modification. This Agreement may only be amended in writing signed by Verenium and by each Holder. 
 7.7
Notices. All notices, requests and other communications hereunder shall be in writing and shall be deemed to have been duly given at the time of receipt if delivered by hand, by reputable overnight courier or by facsimile transmission (with
receipt of successful and full transmission) to the applicable parties hereto at the address stated on the signature pages hereto or if any party shall have designated a different address or facsimile number by notice to the other party given as
provided above, then to the last address or facsimile number so designated. 
 7.8 Submission to Jurisdiction. Each of the parties
hereto (a) consents to submit itself to the personal jurisdiction of any federal court located in the state of New York or any New York state court in the event any dispute arises out of this Agreement or any of the transactions contemplated
hereby, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (c) agrees that it will not bring any action relating to this Agreement or any of the
transactions contemplated hereby in any court other than a federal or state court sitting in the state of New York. 
  

 11 

 7.9 EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 7.10 Counterparts. This Agreement
may be executed in one or more counterparts each of which shall be deemed an original and all of which together shall constitute one instrument. Facsimile signatures shall constitute original signatures. 
 8. Certain Definitions. 
 8.1
Definitions. For purposes of this Agreement, the following terms shall have the following meanings (capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Securities Purchase Agreement): 

“Claims” means any claims, actions, causes of action, liabilities, agreements, demands, damages, debts, rights, interests,
obligations, suits, judgments and charges of whatever nature, whether liquidated or unliquidated, fixed or contingent, matured or unmatured, foreseen or unforeseen, known or unknown, that exist or may exist as of the date of this Agreement, or
thereafter arising in law, equity or otherwise. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended and
the rules and regulations thereunder. 
 “Governmental Authority” means the United States of America, any state,
commonwealth, territory or possession of the United States of America, any foreign state and any political subdivision or quasi governmental authority of any of the same, including any court, tribunal, department, commission, board, bureau, agency,
county, municipality, province, parish or other instrumentality of any of the foregoing. 
 “Legal Requirement” means
applicable common law and any statute, ordinance, code or other law, rule, regulation, order, technical or other written standard, requirement, policy or procedure enacted, adopted, promulgated, applied or followed by any Governmental Authority,
including any judgment or order and all judicial decisions applying common law or interpreting any other Legal Requirement, in each case, as amended. 
 “Lien” means any security interest, any interest retained by the transferor under a conditional sale or other title retention agreement, mortgage, lien, pledge, option, encumbrance, adverse interest,
constructive exception to, defect in or other condition affecting title or other ownership interest of any kind, which constitutes an interest in or claim against property, whether or not arising pursuant to any Legal Requirement. 
 “Material Adverse Effect” means a material adverse effect on (i) the business or condition (financial or otherwise) of Verenium and
its direct and indirect subsidiaries, taken as a whole, (ii) the ability of Verenium to perform its obligations under this Agreement or (iii) the ability of Verenium to issue the New Notes in accordance with the terms of this Agreement.

  

 12 

 “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof, including in U.S. 
 “Securities” means the New Notes, the Conversion Shares, the Interest Shares, the Warrants and the Warrant Shares. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 
 “Transaction Documents” means this Agreement and the other documents and instruments to be executed and delivered in connection herewith at or prior to the Closing, including without limitation the New Notes and the
Warrants and the Registration Rights Agreement as contemplated by Section 1.4 of this Agreement. 
 [NEXT PAGE IS SIGNATURE PAGE]

  

 13 

 VERENIUM’S SIGNATURE PAGE TO EXCHANGE AGREEMENT 
 IN WITNESS WHEREOF the parties have executed this Agreement on the date set forth below. 
  

					
	Dated: February 22, 2008	 	VERENIUM
		 	Verenium Corporation
			
		 	By:	 	 /s/ Carlos A. Riva

		 	Name:	 	Carlos A. Riva
		 	Its:	 	President and Chief Executive Officer
		 		 	
		 		 	

  

									
	Notice Address:	  	With a copy to:	  	
			
	Verenium Corporation	  	Skadden, Arps, Slate, Meagher & Flom LLP	  	
	55 Cambridge Parkway	  	525 University Avenue, Suite 1100	  	
	Cambridge, MA 02142	  	Palo Alto, CA 94301	  	
	Facsimile:	  	(617) 674-5353	  	Facsimile:	  	(650) 470-4570	  	
	Attention:	  	Gerald M. Haines, Esq.	  	Attention:	  	Thomas Ivey, Esq.	  	

 HOLDER’S SIGNATURE PAGE TO EXCHANGE AGREEMENT 
  

							
	Dated: February 22, 2008	 		 	HIGHBRIDGE INTERNATIONAL, LLC
			
		 		 	
		 		 	By:	 	Highbridge Capital Management, LLC
		 		 	Its:	 	Trading Manager
			
		 		 	 /s/ Mark J. Vanacore

		 		 	By:	 	Mark Vanacore
		 		 	Its:	 	Managing Director
			
		 		 	HIGHBRIDGE CONVERTIBLE ARBITRAGE MASTER FUND, L.P.
			
		 		 	
		 		 	By:	 	Highbridge Capital Management, LLC
		 		 	Its:	 	Trading Manager
			
		 		 	 /s/ Mark J. Vanacore

		 		 	By:	 	Mark Vanacore
		 		 	Its:	 	Managing Director

  

							
	Notice Address:	 		 	
			
		 		 	Highbridge Capital Management, LLC
		 		 	9 West 57th Street, 27th Floor
		 		 	New York, NY 10019
				
		 		 	Attention:	 	Mark Vanacore
		 		 		 	Ari J. Storch
		 		 		 	Adam J Chill

 Name of nominee holder or DTC Participant(s) holding Old Notes for the benefit of Holder: 

							
	
	 Highbridge International: Citigroup        Highbridge Convertible
Arb: CSFB

			
	DTC Participant Number:	 		  	 Highbridge International: 418        Highbridge Convertible
Arb: 0355

			
	Holder Name and Address:	 		  	Highbridge Capital Management, LLC
		 		  	9 West 57th Street, 27th Floor
		 		  	New York, NY 10019
				
		 		  	Fax Number:	  	 (212) 751-0755

 SCHEDULE I 
 Highbridge Capital Management 
  

														
	 Entity
	  	 Title of old notes to be exchanged
	  	COLUMN I	  	COLUMN II	  	COLUMN III	  	COLUMN IV
	  	  	Principal
Amount of
Old Notes
owned by
Holder to be
Exchanged
Pursuant to
Section 1.1	  	Principal
Amount of
New Notes to
be received in
exchange for
Old Notes	  	Number of
Warrant
Shares	  	Principal
Amount of
New Notes to
be Purchased
for cash
	 Highbridge International, LLC
	  	 5.50% Convertible Senior Notes due 2027
	  	$	10,525,000	  	$	9,472,500	  	1,065,673	  	$	10,525,000
	 Highbridge Convertible Arbitrage Master Fund, L.P.
	  	 5.50% Convertible Senior Notes due 2027
	  	$	1,475,000	  	$	1,327,500	  	149,346	  	$	1,475,000Upper Call Option Transaction

 Exhibit 10.3 
 Upper Call Option Transaction 
 February 22, 2008 
 THE SECURITIES REPRESENTED HEREBY (THE “OPTIONS”) WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE OPTIONS MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN APPLICABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS THEREOF. 
  

			
	 To:
	  	 Verenium Corporation
 55 Cambridge Parkway

Cambridge, MA 02142
 Attention: Chief Financial
Officer

		
	 From:
	  	 Capital Ventures International
 By: Heights Capital
Management, Inc., Its Authorized Agent
 101 California Street, Suite 3250
 San Francisco, CA 94111
 Attention: Martin Kobinger

 Ladies and Gentlemen: 
 The purpose of this agreement (this “Confirmation”) is to confirm the terms and conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between Capital Ventures International (“Party A”) and Verenium Corporation (“Party B”). This communication constitutes a “Confirmation” as
referred to in the ISDA Master Agreement specified below. 
  

	1.	This Confirmation is subject to, and incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the “2000
Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions” and, together with the 2000 Definitions, the “Definitions”), in
each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern.

 This Confirmation evidences a complete and binding agreement between Party A and Party B as to the terms of the Transaction
to which this Confirmation relates. This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement (the “ISDA Form”) as if Party A and Party B had
executed an agreement in such form (without any Schedule but with the elections set forth in this Confirmation, it being understood the “Cross-Default” shall not apply to this Transaction). 
 All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein. In the
event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern. 
  

 UPPER CALL OPTION TRANSACTION 
  

	2.	The general terms relating to the Transaction are as follows: 

  

	 Option Style: 
	European 

  

	 Option Seller: 
	Party B 

  

	 Option Buyer: 
	Party A 

  

	 Strike Price: 
	$5.16 

  

	 Trade Date: 
	February 22, 2008 

  

	 Effective Date: 
	February 27, 2008 

  

	 Option Type: 
	Call 

  

	 Components: 
	The Transaction will be divided into individual Components, each with the terms set forth in this Confirmation, and, in particular, with the Number of Options and Expiration Dates set forth in this
Confirmation. The payments and deliveries to be made upon settlement of the Transaction will be determined separately for each Component as if each Component were a separate Transaction under the Agreement. To the extent that Party A reasonably
concludes that it is desirable for purposes of Party A staying under 9.9% “beneficial ownership” (within the meaning of the Exchange Act and the rules promulgated thereunder) of Shares, Party A may increase the number of Components and
change the Number of Options and Expiration Dates of the Components so long as the average Expiration Date of all Components remains April 1, 2014. 

  

	 Issuer: 
	Verenium Corporation 

  

	 Shares: 
	The shares of common stock of the Issuer, par value $0.001 per Share (Ticker Symbol: VRNM). 

  

	 Number of Options: 
	For each Component, as provided in Annex A to this Confirmation. 

  

	 Option Entitlement: 
	One Share per Option 

  

	 Market Disruption Event: 
	Section 6.3(a) of the Equity Definitions is hereby amended by replacing clause (ii) thereof in its entirety with the following: “(ii) an Exchange Disruption, or” and inserting immediately
following clause (iii) thereof the following: “; in each case that the Calculation Agent reasonably determines is material.” 

  

 2 

 UPPER CALL OPTION TRANSACTION 
  

	 Relevant Price: 
	VWAP Price 

  

	 VWAP Price: 
	The “Volume Weighted Average Price” per Share on such day, as displayed on Bloomberg Page “VRNM UQ<equity>AQR” (or any successor thereto) for the Issuer with respect to the period
from 9:30 a.m. to 4:00 p.m. (New York City time) on such day, as determined by the Calculation Agent. If no price at such time is available, or there is a Market Disruption Event on such Expiration Date, the Calculation Agent shall determine the
VWAP Price in a commercially reasonable manner. 

  

	 Premium: 
	$4,678,994 

  

	 Premium Payment Date: 
	Effective Date 

  

	 Exchange: 
	The Nasdaq Global Market 

  

	 Related Exchange: 
	Any exchange on which options or futures on the relevant Shares are traded. 

  

	 Clearance System: 
	DTC 

  

	 Calculation Agent: 
	Party A. Whenever the Calculation Agent acts or makes a determination, it will do so in good faith and in a commercially reasonable manner consistent with its obligations under the Equity Definitions.

  

	 Procedures for Exercise: 
	

 In respect of each Component: 
  

	 Expiration Time: 
	The close of trading on the Exchange 

  

	 Expiration Date: 
	Each of the ten (10) consecutive Scheduled Trading Days occurring immediately prior to the Component Expiration Date, provided that if any Expiration Date shall not be an Exchange Business Day,
such Expiration Date shall be postponed to the immediately succeeding Exchange Business Day and the corresponding Expiration Date for each subsequent Daily Number of Options shall be moved back an equal number of Exchange Business Days reflecting
such postponement. 

  

 3 

 UPPER CALL OPTION TRANSACTION 
  

	 Component Expiration Date: 
	The Component Expiration Date provided in Annex A to this Confirmation. 

  

	 Daily Number of Options: 
	One-tenth the Number of Options provided in Annex A to this Confirmation with respect to each Component. 

  

	 Automatic Exercise: 
	Applicable. 

 Settlement Terms: 
  

	 Settlement Method Election: 
	Applicable; provided that (i) any such election shall apply to all Exercise Dates (in accordance with the terms below) and may be for Cash Settlement or Net Share Settlement; (ii) references
to “Physical Settlement” in Section 7.1 of the Equity Definitions shall be replaced by references to “Net Share Settlement”; (iii) Party B may elect Cash Settlement only if Party B represents and warrants to Party A in
writing on the date of such election that, as of such date, Party B is not aware of any material nonpublic information concerning itself or the Shares and is electing Cash Settlement in good faith and not as part of a plan or scheme to evade
compliance with the federal securities laws; and (iv) any election of settlement method shall apply to all Components. At any time prior to making a Settlement Method Election, Party B may, without the consent of Party A, amend this
Confirmation by notice to Party A to eliminate Party B’s right to elect Cash Settlement. 

  

	 Electing Party: 
	Party B 

  

	 Settlement Method Election Date: 
	The thirtieth (30th) Scheduled Trading Day immediately preceding the first Expiration Date. 

  

	 Default Settlement Method: 
	Net Share Settlement 

  

	 Settlement Date: 
	For the Daily Number of Options exercised or deemed exercised on each Expiration Date prior to the Component Expiration Date, the third Exchange Business Day following the Component Expiration Date.

  

 4 

 UPPER CALL OPTION TRANSACTION 
  

	 Cash Settlement: 
	If Cash Settlement applies, then, notwithstanding any contrary terms of Article 8 of the Equity Definitions, for any Daily Number of Options exercised or deemed exercised on any Expiration Date, Party B
shall pay, on the Settlement Date, the Cash Settlement Amount to Party A. The Cash Settlement Amount shall be determined as follows: 

 (i) If the Settlement Price is less than or equal to the Strike Price, then the Cash Settlement Amount shall equal zero. 
 (ii) If
the Settlement Price is greater than the Strike Price, then the Cash Settlement Amount shall equal the product of (x) the Daily Number of Options, (y) the Option Entitlement and (z) the Settlement Price minus the Strike Price.

  

	 Net Share Settlement: 
	On a Settlement Date, Party B shall deliver to Party A a number of Shares equal to the Number of Shares to be Delivered and will pay to Party A the Fractional Share Amount, if any. 

 

	 Number of Shares to be Delivered: 
	The Cash Settlement Amount (determined as if Cash Settlement were applicable) divided by the Settlement Price, rounded down to the nearest whole number. 

  

	 Cash Settlement Payment Date: 
	For all Daily Number of Options exercised or deemed exercised on each Expiration Date, the third Exchange Business Day following the Component Expiration Date. 

  

	 Settlement Currency: 
	USD 

  

	 Settlement Price: 
	For any Daily Number of Options, the VWAP Price of the Shares on the relevant Expiration Date determined by Calculation Agent at the Expiration Time on the relevant Expiration Date for such Daily Number of
Options. If no price at such time is available, or there is a Market Disruption Event on such Expiration Date, the Calculation Agent shall determine the Settlement Price in a commercially reasonable manner. 

  

	 Failure to Deliver: 
	Applicable 

  

	 Other Applicable Provisions: 
	To the extent Party B is obligated to deliver Shares hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the Representation and Agreement contained in Section 9.11 of the
Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws as a result of the fact that Party B is the issuer of the Shares) and
9.12 of the Equity Definitions will be applicable as if “Physical Settlement” applied to the Transaction. 

  

 5 

 UPPER CALL OPTION TRANSACTION 
  

 Adjustments: 
  

	         Method of Adjustment: 
	Calculation Agent Adjustment 

  

	 Extraordinary Dividend: 
	Any dividend or distribution that has an ex-dividend date occurring on or after the Trade Date and on or prior to the date on which Party B satisfies all of its delivery obligations hereunder.

 Extraordinary Events: 
         Consequences of Merger Events and Tender Offers: 
  

	                 (a) Share-for-Share:

	Modified Calculation Agent Adjustment, or at Party A’s election, Cancellation and Payment (Calculation Agent Determination) 

  

	                 (b) Share-for-Other:

	Cancellation and Payment (Calculation Agent Determination) 

  

	                 (c)
Share-for-Combined: 
	Component Adjustment, or at Party A’s election, Cancellation and Payment (Calculation Agent Determination) 

  

	 Tender Offer: 
	Applicable 

  

	 Nationalization, Insolvency or Delisting: 
	Cancellation and Payment (Calculation Agent Determination) 

 Additional Disruption
Events: 
  

	 (a) Change in Law: 
	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase
“or announcement or statement of the formal or informal interpretation” and (ii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging
Party on the Trade Date”. 

  

	 (b) Failure to Deliver 
	Applicable 

  

	 (c) Insolvency Filing: 
	Applicable 

  

 6 

 UPPER CALL OPTION TRANSACTION 
  

	 (d) Hedging Disruption: 
	Applicable 

  

	 (e) Increased Cost of Hedging: 
	Applicable 

  

	 (f) Loss of Stock Borrow: 
	Applicable 

  

	         Maximum Stock Loan Rate: 
	5% 

  

	 Hedging Party: 
	Party A for all applicable Additional Disruption Events 

  

	 Determining Party: 
	Party A for all applicable Additional Disruption Events 

  

	 Non-Reliance: 
	Applicable 

  

	 Agreements and Acknowledgments 
Regarding Hedging Activities: 
	Applicable 

  

	 Additional Acknowledgments: 
	Applicable 

  

	 Additional Termination Events: 
	Applicable. The following will constitute an Additional Termination Event: 

 (a)
Party B shall send Party A an Early Exercise Notice under the terms of the lower call option Transaction entered into herewith, and the sole Affected Party will be Party B. 
  

	 Additional Termination at Party B election: 
	Party B may elect at any time with advance written notice of thirty (30) Scheduled Trading Days to early terminate this Transaction; provided that that termination amount shall be determined by
Calculation Agent in accordance with Section 6(e) of the Agreement where Party B is the sole affected party, and such amount shall be paid in cash on the scheduled termination date. 

  

	3.	Account Details: 

 Party A Payment Instructions:

 To be provided by Party A. 
 Party B Payment Instructions: 
 To be provided by Party B. 
  

 7 

 UPPER CALL OPTION TRANSACTION 
  

	4.	Offices: 

 The Office of Party A for the Transaction
is: 
 Capital Ventures International 
 C/O Heights Capital Management, Inc. 
 101 California Street, Suite 3250 
 San Francisco, CA 94111 
 The Office of Party
B for the Transaction is: 
 Verenium Corporation 
 55 Cambridge Parkway 
 Cambridge, MA 02142 
  

	5.	Notices: For purposes of this Confirmation: 

  

	 	(a)	Address for notices or communications to Party B: 

  

					
	 To:   Verenium Corporation
          55 Cambridge Parkway
 Cambridge,MA 02142
 Attn:Gerald M. Haines, Esq.
 Telephone:(617) 674-5300
 Facsimile:(617) 674-5393

  

	 	(b)	Address for notices or communications to Party A: 

  

			
	 To:   Capital Ventures International
 C/O  Heights Capital Management, Inc.
 101  California Street, Suite 3250
 San  Francisco, CA 94111
  
 Attention:Martin Kobinger
 Telephone:(415) 403-6500
 Facsimile:(415) 403-6525

 With a copy to: 
  

			
	 To:   Paul, Hastings, Janofsky & Walker LLP
 1117California Avenue
 Palo Alto, CA 94304-1106
  
 Attention:Robert A. Claassen, Esq.
 Telephone:(650) 320-1888
 Facsimile:(650) 320-1984

  

 8 

 UPPER CALL OPTION TRANSACTION 
  

	6.	If any of the transactions contemplated by the Securities Purchase Agreement dated as of February 22, 2008 (the “Purchase Agreement”) among Party B and
each of the Buyers specified therein relating to the sale of senior convertible notes of Party B (the “Notes”) and warrants, shall fail to close on the date specified therein for any reason, or any subsequent date allowed
thereunder for postponements permitted under the terms thereof, the entirety of this Transaction shall terminate automatically and Party B shall be the sole Affected Party and this Transaction shall be the sole Affected Transaction and such
termination shall be treated as an Additional Termination Event. For purposes of determining Loss in relation to any Additional Termination Events or otherwise, it shall be assumed that all conditions to the exercise of these Options have occurred.

  

	7.	Additional agreements, representations, warranties and covenants: 

  

	 	(a)	In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Party B represents and warrants to and for the benefit of, and agrees with,
Party A as follows: 

  

	 	(i)	In relation to the Transaction, Party B acknowledges its responsibilities under applicable federal securities laws, including without limitation Rule 10b-5 under the Exchange Act.
Party B represents and warrants on the Effective Date, except for the Issuer’s financial results for the year ended December 31, 2007, (A) none of Party B and its officers and directors is aware of any material nonpublic information
regarding Party B or the Shares and (b) all reports and other documents filed by Party B with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) when
considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do 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 the light of the circumstances in which they were made, not misleading. 

  

	 	(ii)	Prior to the Trade Date, Party B shall deliver to Party A a resolution of Party B’s board of directors authorizing the Transaction and such other certificate or certificates as
Party A shall reasonably request. 

  

	 	(iii)	Party B is not entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to
manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act. 

  

	 	(iv)	Party B is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended. 

  

	 	(v)	On any Expiration Date, Party B shall not, and shall cause its affiliates and affiliated purchasers (each as defined in Rule 10b-18 under the Exchange Act (“Rule
10b-18”)) not to, directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence
any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares, except
through Party A. 

  

 9 

 UPPER CALL OPTION TRANSACTION 
  

	 	(vi)	On the Trade Date (A) the assets of Party B at their fair valuation exceed the liabilities of Party B, including contingent liabilities, (B) the capital of Party B is
adequate to conduct the business of Party B and (C) Party B has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts
mature. 

  

	 	(vii)	The execution and delivery of this Confirmation does not violate the terms of Regulation M (“Regulation M”) under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). 

  

	 	(viii)	Any Shares, when issued and delivered in a Net Share Settlement of the Options or a Share Termination Alternative settlement in accordance with the terms of this Confirmation,
will be duly authorized and validly issued, fully paid and nonassessable, and the issuance thereof will not be subject to any preemptive or similar rights. 

  

	 	(b)	Each of Party A and Party B agrees and represents that it is an “eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as
amended. 

  

	 	(c)	Each of Party A and Party B acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended
(the “Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Party A represents and warrants to Party B that (i) it has the financial ability to bear the economic risk of its investment in the Transaction
and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own
account and without a view to the distribution or resale thereof, and (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this
Confirmation, the Securities Act and state securities laws. 

  

	 	(d)	The parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the
Title 11 of the United States Code (the “Bankruptcy Code”), with respect to which each payment and delivery hereunder is a “settlement payment,” as such term is defined in Section 741(8) of the Bankruptcy Code,
and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder is a “transfer,” as such term is defined in Section 101(54)
of the Bankruptcy Code, and (B) that Party A is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code. 

  

	8.	Other Provisions: 

  

	 	(a)	 Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. If Party B shall owe Party A any amount pursuant to
Section 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an Insolvency, a Nationalization, a Tender Offer or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders of Shares
consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which Party B is the Defaulting Party or a Termination Event in which Party B is the Affected Party, that resulted from an
event or events within Party B’s control) (a “Payment Obligation”), Party B shall have the right, in its sole discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by
giving irrevocable telephonic notice to Party A, confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 AM and 12:00 PM, New York City time, on the relevant Merger Date, Tender Offer Date, Announcement Date or Early
Termination Date, as applicable (“Notice of Share Termination”). Upon such Notice of Share Termination, the following provisions shall apply on the 

  

 10 

 UPPER CALL OPTION TRANSACTION 
  

	 	 
Scheduled Trading Day immediately following the Merger Date, Tender Offer Date, Announcement Date or Early Termination Date, as applicable:

  

	 Share Termination Alternative: 
	Applicable and means that Party B shall deliver to Party A the Share Termination Delivery Property on the date on which the Payment Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of
the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable (the “Share Termination Payment Date”), in satisfaction of the Payment Obligation. 

  

	 Share Termination Delivery Property: 
	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price. The Calculation Agent shall adjust the Share
Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price.

  

	 Share Termination Unit Price: 
	The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as determined by the
Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Party B at the time of notification of the Payment Obligation. 

  

	 Share Termination Delivery Unit: 
	In the case of a Termination Event, Event of Default or Delisting, one Share or, in the case of a Merger Event, a Tender Offer, a Nationalization or an Insolvency, a unit consisting of the number or amount
of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Merger Event, Tender Offer, Nationalization or
Insolvency. If such Merger Event, Tender Offer, Nationalization or Insolvency involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash.

  

	 Failure to Deliver: 
	Applicable 

  

	 Other applicable provisions: 
	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.10, 9.11 (except that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be
modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws as a result of the fact that Party B is the issuer of the Shares) and 9.12 of the Equity
Definitions will be applicable, as if “Physical Settlement” were applicable and all references to “Shares” shall be read as references to “Share Termination Delivery Units”. 

  

 11 

 UPPER CALL OPTION TRANSACTION 
  

	 	(b)	Registration/Private Placement Procedures. (i) If, in the reasonable judgment of Party A or Party B, based on the advice of counsel, either (a) any securities of
Party B or its affiliates comprising any Share Termination Delivery Units or (b) any Shares, in either case deliverable to Party A hereunder (any such securities or Shares, “Delivered Securities”) would not be
immediately freely transferable by Party A under Rule 144 without restriction or condition under the Securities Act, then the provisions set forth in this Section 8(b) shall apply. At the election of Party B by notice to Party A within one
Exchange Business Day after the relevant delivery obligation arises, but in any event at least one Exchange Business Day prior to the date on which such delivery obligation is due, either (A) all Delivered Securities, delivered by Party B to
Party A shall be covered by an effective registration statement of Party B for immediate resale by Party A (such registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any
sections describing the plan of distribution) in form and content commercially reasonably satisfactory to Party A) or (B) Party B shall deliver additional Delivered Securities so that the value of such Delivered Securities, as determined by the
Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number of Delivered Securities that would otherwise be deliverable if such Delivered Securities were freely tradeable (without prospectus delivery) upon receipt
by Party A (such value, the “Freely Tradeable Value”); provided that Party B may not make the election described in this clause (B) if, on the date of its election, it has taken, or caused to be taken, any action
that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the delivery by Party B to Party A (or any affiliate designated by Party A) of the Delivered Securities or the exemption pursuant to
Section 4(1) or Section 4(3) of the Securities Act for resales of the Delivered Securities by Party A (or any such affiliate of Party A). (For the avoidance of doubt, as used in this paragraph (b) only, the term “Party B”
shall mean the issuer of the relevant securities, as the context shall require.) 

  

	 	(i)	If Party B makes the election described in clause (b)(i)(A) above: 

  

	 	(A)	Party A (or an Affiliate of Party A designated by Party A) shall be afforded a reasonable opportunity to conduct a “due diligence” investigation with respect to Party B
that is customary in scope for underwritten follow-on offerings of equity securities of companies of comparable size, maturity and lines of business; provided that if Party A is not reasonably satisfied with the results of the investigation
described in this subclause (A) or Party B’s compliance with clause (b)(i)(A) above and subclause (ii)(B) below, then Party B shall be deemed to have made the election described in clause (b)(i)(B) above; provided, however, that
Party A has given Party B reasonable notice of its determination and provided Party B with reasonable opportunity to satisfy Party A’s concerns; and 

  

	 	(B)	 Party A (or an Affiliate of Party A designated by Party A) and Party B shall enter into an agreement (a “Registration Agreement”) on
commercially reasonable terms in connection with the public resale of such Delivered Securities by Party A or such Affiliate substantially similar to underwriting agreements customary for underwritten follow-on offerings of equity securities of
companies of comparable size, maturity and lines of business, in form and substance commercially reasonably satisfactory to Party A or such Affiliate and Party B, which Registration Agreement shall include, without limitation, provisions
substantially similar to those contained in such underwriting agreements relating to the indemnification of, and contribution in connection with the liability of, Party A and its Affiliates and Party B, shall provide for the payment by Party B of
all reasonable registration expenses in connection with such resale, including all registration costs and reasonable expenses of counsel for Party A (provided that such fees and expenses shall not exceed $100,000 in the aggregate), 

  

 12 

 UPPER CALL OPTION TRANSACTION 
  

	 	 
and shall provide for the delivery of accountants’ “comfort letters” to Party A or such Affiliate with respect to the financial statements and
certain financial information contained in or incorporated by reference into the Prospectus as are customarily requested in comfort letters covering underwritten follow-on offers of equity securities of companies of comparable size, maturity and
lines of business. 

  

	 	(ii)	If Party B makes or is deemed to make the election described in clause (b)(i)(B) above: 

  

	 	(A)	All Delivered Securities shall be delivered to Party A (or any Affiliate of Party A designated by Party A) pursuant to the exception from the registration requirements of the
Securities Act provided by Section 4(2) thereof; 

  

	 	(B)	Party A (or an Affiliate of Party A designated by Party A) and any potential institutional purchaser of any such Delivered Securities from Party A or such Affiliate identified by
Party A shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation in compliance with applicable law with respect to Party B customary in scope for private placements of equity securities of companies of
comparable size, maturity and lines of business (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by
them); 

  

	 	(C)	Party A (or an Affiliate of Party A designated by Party A) and Party B shall enter into an agreement (a “Private Placement Agreement”) on commercially
reasonable terms in connection with the private placement of such Delivered Securities by Party B to Party A or such Affiliate and the private resale of such shares by Party A or such Affiliate, substantially similar to private placement purchase
agreements customary for private placements of equity securities of companies of comparable size, maturity and lines of business, in form and substance commercially reasonably satisfactory to Party A and Party B, which Private Placement Agreement
shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating to the indemnification of, and contribution in connection with the liability of, Party A and its Affiliates
and Party B, shall provide for the payment by Party B of all reasonable expenses in connection with such resale, including all reasonable fees and expenses of counsel for Party A (provided that such fees and expenses shall not exceed $50,000 in the
aggregate), shall contain representations, warranties and agreements of Party B reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales,
and shall use commercially reasonable efforts to provide for the delivery of accountants’ “comfort letters” to Party A or such Affiliate with respect to the financial statements and certain financial information contained in or
incorporated by reference into the offering memorandum prepared for the resale of such Shares as are customarily requested in comfort letters covering private placements of equity securities of companies of comparable size, maturity and lines of
business; 

  

	 	(D)	 Party B agrees that any Delivered Securities so delivered to Party A, (i) may be transferred by and among Party A and its Affiliates, and Party B shall effect
such transfer without any further action by Party A and (ii) after the holding period has elapsed under Rule 144 under the Securities Act following which the Delivered Securities are freely tradable without condition or restriction, Party B
shall promptly remove, or cause the transfer agent for such Delivered Securities to remove, any legends referring to any such restrictions or requirements from such Delivered Securities upon delivery by Party A (or such Affiliate of Party A) to
Party B or such transfer agent of seller’s and broker’s representation letters customarily delivered by Party A in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, without any further
requirement for the 

  

 13 

 UPPER CALL OPTION TRANSACTION 
  

	 	 
delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or
any other action by Party A (or such affiliate of Party A); and 

  

	 	(E)	Party B and Party A shall not take, or cause to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the
delivery by Party B to Party A (or any affiliate designated by Party A) of the Delivered Securities or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Delivered Securities by Party A (or any
such affiliate of Party A). 

  

	 	(c)	Make-whole. If (x) Party B elects to deliver Share Termination Delivery Units pursuant to Section 8(a) hereof or (y) Party B makes the election described in
clause (b)(i)(B) of Section 8(b) hereof, then in either case Party A or its affiliate may sell such Shares or Share Termination Delivery Units, as the case may be, during a period (the “Resale Period”) commencing on the
Exchange Business Day following delivery of such Shares or Share Termination Delivery Units, as the case may be, and ending on the Exchange Business Day on which Party A completes the sale of all such Shares or Share Termination Delivery Units, as
the case may be, or a sufficient number of Shares or Share Termination Delivery Units, as the case may be, so that the realized net proceeds of such sales exceed the amount of the Payment Obligation (in the case of clause (x), or in the case that
both clause (x) and clause (y) apply) or the Freely Tradeable Value (in the case that only clause (y) applies) (such amount of the Payment Obligation or Freely Tradeable Value, as the case may be, the “Required
Proceeds”). If any of such delivered Shares or Share Termination Delivery Units remain after such realized net proceeds exceed the Required Proceeds, Party A shall return such remaining Shares or Share Termination Delivery Units to
Party B. If the Required Proceeds exceed the realized net proceeds from such resale, Party B shall transfer to Party A by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately following the last day of the
Resale Period the amount of such excess (the “Additional Amount”) in cash or in a number of additional Shares (“Make-whole Shares”) in an amount that, based on the Relevant Price on the last day of the
Resale Period (as if such day was the “Valuation Date” for purposes of computing such Relevant Price), has a dollar value equal to the Additional Amount. The Resale Period shall continue to enable the sale of the Make-whole Shares in the
manner contemplated by this Section 8(c). This provision shall be applied successively until the Additional Amount is equal to zero, subject to Section 8(g). 

  

	 	(d)	Repurchase Notices. Party B shall, on any day on which Party B effects any repurchase of Shares, use its best efforts to promptly give Party A a written notice of such
repurchase (a “Repurchase Notice”) on such day if, following such repurchase, the Notice Percentage as determined on such day is (i) greater than 8.9% and (ii) greater by 0.5% than the Notice Percentage included in
the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof). The “Notice Percentage” as of any day is the fraction, expressed as
a percentage, the numerator of which is the Number of Shares and the denominator of which is the number of Shares outstanding on such day. 

  

	 	(e)	 Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this Confirmation, in no event shall Party A be entitled to receive, or
shall be deemed to receive, any Shares if, upon such receipt of such Shares, the “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated thereunder) of Shares by Party A or any entity
that directly or indirectly controls Party A (collectively, “Party A Group”) would be equal to or greater than 9.9% or more of the outstanding Shares. If any delivery owed to Party A hereunder is not made, in whole or in
part, as a result of this provision, Party B’s obligation to make such delivery shall not be extinguished and Party B shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day 

  

 14 

 UPPER CALL OPTION TRANSACTION 
  

	 	 
after, Party A gives notice to Party B that such delivery would not result in Party A Group directly or indirectly so beneficially owning in excess of 9.9%
of the outstanding Shares. 

  

	 	(f)	Limitations on Settlement by Party B. Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Party B be required to deliver Shares in
connection with the Transaction in excess of 26,577,018 Shares (the “Capped Number”). Party B represents and warrants (which shall be deemed to be repeated on each day that the Transaction is outstanding) that the Capped
Number is equal to or less than the number of authorized but unissued Shares of Party B that are not reserved for future issuance in connection with transactions in the Shares (other than the Transaction) on the date of the determination of the
Capped Number (such Shares, the “Available Shares”). In the event Party B shall not have delivered the full number of Shares otherwise deliverable as a result of this Section 8(f) (the resulting deficit, the
“Deficit Shares”), Party B shall be continually obligated to deliver, from time to time until the full number of Deficit Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that
(i) Shares are repurchased, acquired or otherwise received by Party B or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (ii) authorized and unissued Shares
reserved for issuance in respect of other transactions prior to such date which prior to the relevant date become no longer so reserved and (iii) Party B additionally authorizes unissued Shares that are not reserved for other transactions.
Party B shall immediately notify Party A of the occurrence of any of the foregoing events (including the number of Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered) and promptly deliver
such Shares thereafter. Party B shall not take any action to decrease the number of Available Shares below the Capped Number. 

  

	 	(g)	Right to Extend. Party A may postpone any Exercise Date or any other date of valuation or delivery with respect to some or all of the relevant Options (in which event the
Calculation Agent shall make appropriate adjustments to the Number of Shares to be Delivered with respect to one or more Components) for up to an aggregate number of thirty (30) Exchange Business Days, if Party A determines, in its reasonable
discretion, that such extension is reasonably necessary or appropriate to preserve Party A’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions or to enable Party A to effect purchases of Shares in connection
with its hedging, hedge unwind or settlement activity hereunder in a manner that would, if Party A were Party B or an affiliated purchaser of Party B, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with
related policies and procedures applicable to Party A. 

  

	 	(h)	Equity Rights. Party B intends that all documentation with respect to this Transaction is intended to qualify this Transaction as an equity instrument for purposes of SFAS
150 and EITF 00-19. Party A acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Party B’s bankruptcy. For the
avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Party B’s bankruptcy to any claim arising as a result of a breach by Party B of any of its obligations under this Confirmation or
the Agreement. For the avoidance of doubt, the parties acknowledge that this Confirmation is not secured by any collateral that would otherwise secure the obligations of Party B hereinunder or pursuant to any other agreement.

  

	 	(i)	Transfer and Assignment. Party B may not transfer or assign its rights and obligations hereunder and under the Agreement without the prior written consent of Party A. Party A
may transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, at any time without the consent of Party B, subject to the restrictions set forth in the legend appearing at the top of this Confirmation.

  

 15 

 UPPER CALL OPTION TRANSACTION 
  

	 	(j)	Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Party B and each of its employees, representatives, or other agents may
disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Party B relating to such tax
treatment and tax structure. 

  

	 	(k)	Designation by Party A. Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Party A to purchase, sell, receive or deliver any
Shares or other securities to or from Party B, Party A may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Party A’s obligations in respect of the Transaction and
any such designee may assume such obligations. Party A shall be discharged of its obligations to Party B to the extent of any such performance. 

  

	 	(l)	Additional Termination Event. If Party A reasonably determines based on advice of counsel that it is advisable to terminate a portion of the Transaction so that Party
A’s hedging activities related to the Transaction will comply with applicable securities laws, rules or regulations, an Additional Termination Event shall occur in respect of which (1) Party B shall be the sole Affected Party and
(2) the Transaction shall be the sole Affected Transaction. 

  

	 	(m)	Opinion. Party B shall deliver to Party A an opinion of counsel, dated as of the Trade Date and reasonably acceptable to Party A in form and substance covering the matters
specified in Annex I hereto. 

  

	 	(n)	Waiver of Trial by Jury. EACH OF PARTY B AND PARTY A HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS
STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF PARTY A OR ITS AFFILIATES OR PARTY B OR ITS AFFILIATES
IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF. 

  

	 	(o)	Governing Law. THE AGREEMENT AND THIS CONFIRMATION AND ANY OTHER MATTERS ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF PARTY A OR ITS AFFILIATES
OR PARTY B OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE). THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT
FORUM WITH RESPECT TO, THESE COURTS. 

 Party B hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so
that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Party A) correctly sets forth the terms of the agreement between Party A and Party B with respect to the
Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Heights Capital Management, Inc., 101
California Street, Suite 3250, San Francisco, CA 94111, Facsimile (415) 403-6525. 
  

 16 

 UPPER CALL OPTION TRANSACTION 
  

 Please confirm that the foregoing correctly sets forth the terms of your agreement by signing and
returning this Confirmation. 
  

			
	Very truly yours,
	
	 CAPITAL VENTURES INTERNATIONAL
 BY: HEIGHTS
CAPITAL MANAGEMENT, INC,
 Its Authorized Agent
 (Party A)

		
	By:	 	/s/Martin Kobinger
	Name:	 	Martin Kobinger
	Title:	 	Investment Manager

  

			
	Agreed and Accepted By:
	
	 Verenium Corporation
 (Party
B)

		
	By:	 	/s/ Carlos A. Riva
	Name:	 	Carlos A. Riva
	Title:	 	President and Chief Executive Officers

  

 17 

 UPPER CALL OPTION TRANSACTION 
  

 Annex A 
 For each Component of the Transaction, the Number of Options and Expiration Date are set forth below. 
  

					
	Component Number	  	Number of Options	  	Component Expiration Date
			
	 1
	  	4,429,503	  	October 1, 2013
			
	 2
	  	4,429,503	  	April 1, 2014
			
	 3
	  	4,429,503	  	October 1, 2014

  

 18 

 UPPER CALL OPTION TRANSACTION 
  

 ANNEX I 
 Matters to be covered in Opinion of Counsel to Party B 
 1. Party B is validly existing as a
corporation in good standing under the laws of the State of Delaware. 
 2. Party B has the requisite corporate power and authority to enter
into the Transaction (for purposes of this Annex 1, the “Agreement”) and to carry out the Transactions contemplated thereby. 
 3. The execution and delivery by Party B of the Transaction, and the performance by Party B of its obligations under the Transaction, have been duly authorized by all necessary corporate action on the part of Party B.

 4. The Transaction has been duly authorized, executed and delivered by Party B. 
 5. No consent, approval or authorization of, or registration, filing or declaration with, any governmental or public body or authority is required in
connection with the execution, delivery or performance by Party B of the Transaction. 
 6. The execution, delivery and performance by Party
B of the Transaction and compliance by Party B with the terms and provisions thereof will not, whether with or without the giving of notice or lapse of time or both, result in a breach or violation of any of the terms and provisions of, or
constitute a default under, (A) any material indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or instrument to which Party B or any subsidiary is bound or by
which Party B or any subsidiary or any of their respective properties may be bound or affected, or (B) any Delaware or federal law, statute, rule, regulation or order or any judgment, order, writ or decree of any governmental agency or body or
any court having jurisdiction over Party B or any of its properties. 
 7. Neither Party B nor any subsidiary is an “investment
company” or a company “controlled” by an “investment company”, in each case within the meanings ascribed to such terms in the Investment Company Act of 1940, as amended, nor is Party B or any subsidiary subject to regulation
under said Act. 
  

 19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]