Document:

Document

Exhibit 10.34

CONFIDENTIAL
Execution Version

EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into by and between Bionano Genomics, Inc. (the “Company”) and Soheil Shams (“Executive”). The Company and Executive are hereinafter collectively referred to as the “Parties”, and individually referred to as a “Party”.
RECITALS
Concurrently with the execution and delivery of this Agreement, the Company; Starship Merger Sub I, Inc., a California corporation and a wholly-owned subsidiary of Company (“Merger Sub I”); Starship Merger Sub II, LLC, a California limited liability company (“Merger Sub II”); BioDiscovery, Inc., a California corporation (the “Seller”); and Soheil Shams, as Securityholders’ Representative, are entering into that certain Agreement and Plan of Merger (as amended, modified, or supplemented from time to time in accordance with its terms, the “Merger Agreement”), pursuant to which Seller shall be acquired by the Company, by means of a merger of Merger Sub I with and into Seller, pursuant to which Seller will survive and become a wholly owned subsidiary of the Company (“Merger I”), and, as part of the same overall transaction, promptly after Merger I, the surviving entity of Merger I will merge with and into Merger Sub II, with Merger Sub II surviving such merger (“Merger II” and, together with Merger I, the “Mergers”), on the terms and subject to the conditions set forth in the Merger Agreement.
This Agreement and Executive’s employment hereunder are conditional upon the closing of the transactions contemplated in the Merger Agreement. This Agreement will become effective as of the Closing Date as defined in the Merger Agreement (the “Effective Date”). If the anticipated transactions contemplated in the Merger Agreement do not close, this Agreement will have no effect (even if it has been executed), will not be binding on the Company (or any of its affiliates) or on Executive, and neither Executive, the Company nor any of the Sellers (or any of their respective affiliates) shall have rights or obligations hereunder.
The Company desires assurance of the association and services of Executive in order to retain Executive’s experience, skills, abilities, background and knowledge, and is willing to continue to the engagement of Executive’s services on the terms and conditions set forth in this Agreement.
Executive desires to be in the employ of the Company and is willing to accept employment on the terms and conditions set forth in this Agreement.
AGREEMENT
In consideration of the foregoing Recitals and mutual promises and covenants contained herein, and for other good and valuable consideration, the Parties, intending to be legally bound, agree as follows:
1.EMPLOYMENT.
1.1Title. Executive’s position shall be Chief Informatics Officer of the Company, subject to the terms and conditions set forth in this Agreement.
1.2Term. The term of this Agreement shall begin on the Effective Date and shall continue until terminated in accordance with Section 4 herein (the “Term”).
1.3Duties. Executive shall do and perform all services, acts or things necessary or advisable to manage and conduct the business of the Company and that are normally associated with the position of Chief Informatics Officer, and such other duties as may from time to time be assigned to Executive. Executive shall report to the Chief Executive Officer of the Company.
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1.4Policies and Procedures. The employment relationship between the Parties shall be governed by this Agreement and by the policies and practices established by the Company and/or the Company’s Board of Directors (the “Board”), or any designated committee thereof. In the event the terms of this Agreement differ from or are in conflict with the Company’s policies and practices or the Company’s Employee Handbook, this Agreement shall control.
1.5Location. Unless the Parties otherwise agree in writing, during the Term Executive shall perform the services Executive is required to perform pursuant to this Agreement at the Company’s offices in El Segundo, California provided, however, that the Company may from time to time require Executive to travel temporarily to other locations in connection with the Company’s business.
2.LOYALTY; NON-COMPETITION; NON-SOLICITATION.
2.1Loyalty. Except as expressly provided herein or the Company otherwise consents in writing, during Executive’s employment by the Company, Executive shall devote Executive’s full business energies, interest, abilities and productive time to the proper and efficient performance of Executive’s duties under this Agreement. Notwithstanding the foregoing, Executive shall be permitted to continue to provide ongoing consultation, board and/or advisory services to certain entities with the prior written consent of the Chief Executive Officer or Chairman of the board of directors of the Company (such consent not to be unreasonably withheld).
2.2Agreement not to participate in Company’s Competitors. During Executive’s employment with the Company, Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company, its business, or prospects, financial or otherwise, or in any company, person or entity that is, directly or indirectly, in competition with the business of the Company or any of its Affiliates (as defined below). Ownership by Executive, in professionally managed funds over which Executive does not have control or discretion in investment decisions, or as a passive investment, of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock listed on a national securities exchange or publicly traded on a national securities exchange or in the over-the-counter market shall not constitute a breach of this Section. For purposes of this Agreement, “Affiliate” means, with respect to any specific entity, any other entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with such specified entity.
2.3Covenant not to Compete. During Executive’s employment with the Company, Executive shall not engage in competition with the Company and/or any of its Affiliates, either directly or indirectly, in any manner or capacity, as adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant, or member of any association or otherwise, in any phase of the business of developing, manufacturing and marketing of products or services that are in the same field of use or which otherwise compete with the products or services of the Company except with the prior written consent of the Company.
3.COMPENSATION OF EXECUTIVE.
3.1Base Salary. The Company shall pay Executive a base salary at the annualized rate of $325,000 per year (the “Base Salary”), less payroll deductions and all required withholdings, payable in regular bi-weekly payments or otherwise in accordance with Company policy. Such Base Salary shall be prorated for any partial year of employment on the basis of a 365-day fiscal year.
3.2Discretionary Bonus. At the sole discretion of the Company, following each calendar year of employment, Executive shall be eligible to receive a discretionary cash bonus with a target amount of up to forty percent (40%) of Executive’s then-current base salary (the “Bonus”), based on Executive’s achievement relative to certain performance goals (“Performance Goals”) to be established by the Company. The determination of whether Executive has met the Performance Goals for 
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any given year, and if so, the amount of any Bonus that will be paid for such year (if any), shall be determined by the Company in its sole and absolute discretion. In order to be eligible to earn or receive any Bonus, Executive must remain employed by the Company through and including the end of the year with respect to which such Bonus is earned.
3.3Expense Reimbursement. The Company will reimburse Executive for all reasonable business expenses Executive incurs in conducting Executive’s duties hereunder, pursuant to the Company’s usual expense reimbursement policies; provided that Executive supplies the appropriate substantiation for such expenses no later than the end of the calendar month following the month in which such expenses were incurred by Executive. For the avoidance of doubt, to the extent that any expense reimbursements payable to Executive under this Agreement are taxable income and subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”): (i) to be eligible to obtain reimbursement for such expenses Executive must supply the appropriate documentation substantiating such expenses no later than the end of the calendar month following the month in which such expenses were incurred by Executive, (ii) any such reimbursements will be paid by the Company as soon as administratively practicable after submission of such documentation, but in no event later than December 31 of the year following the year in which the expense was incurred, (iii) the amount of expenses reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and (iv) the right to expense reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.
3.4Changes to Compensation. Executive’s compensation will be reviewed annually and may be increased from time to time in the Company’s sole discretion.
3.5Employment Taxes. All of Executive’s compensation and payments under this Agreement shall be subject to customary withholding taxes and any other employment taxes as are commonly required to be collected or withheld by the Company.
3.6Benefits. Executive shall, in accordance with Company policy and the terms of the applicable plan documents, be eligible to participate in benefits under any benefit plan or arrangement which may be in effect from time to time and made available to the Company’s executive or key management employees.
3.7Holidays and Vacation. Executive shall be eligible for paid holiday and vacation time in accordance with Company policy as in effect from time to time and made available to Company’s senior management employees.
3.8Equity. Subject to approval by the Board (or a committee thereof), and as an inducement material to Executive’s entering into employment with the Company, Executive shall be granted an option to purchase 400,000 shares of common stock in the Company at the fair market value on the date of grant (the “Option”). The shares subject to the Option will vest over four years of continuous service to the Company, with twenty-five percent (25%) of the shares subject to the Option vesting on the first year anniversary of the Effective Date, and the remaining shares vesting in equal monthly installments over the subsequent thirty-six (36) months of continuous service thereafter. The Option shall be governed in all respects by the terms of the Company’s 2020 Inducement Plan (the “Plan”), as amended, and option agreement between Executive and the Company. Executive shall be entitled to be considered for additional stock option grants under the Plan, as approved by the Board (or a committee thereof) in its sole discretion.
4.TERMINATION.
4.1Termination by the Company. Executive’s employment with the Company is at will and may be terminated by the Company or Executive at any time and for any reason, or for no reason, including, but not limited to, under the following conditions:
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4.1.1Termination by the Company for Cause. The Company may terminate Executive’s employment under this Agreement for Cause by delivery of written notice to Executive. Any notice of termination given pursuant to this Section shall effect termination as of the date of the notice, or as of such other date specified in the notice.
4.1.2Termination by the Company without Cause. The Company may terminate Executive’s employment under this Agreement without Cause at any time and for any reason, or for no reason. Such termination shall be effective on the date Executive is so informed by the Company.
4.2Termination by Executive. Executive may terminate Executive’s employment with the Company at any time and for any reason, or for no reason, upon 30 days’ written notice to the Company.
4.3Termination for Death or Complete Disability. Executive’s employment with the Company shall automatically terminate effective upon the date of Executive’s death or Complete Disability (as defined below).
4.4Termination by Mutual Agreement of the Parties. Executive’s employment with the Company may be terminated at any time upon a mutual agreement in writing of the Parties. Any such termination of employment shall have the consequences specified in such agreement.
4.5Compensation upon Termination.
4.5.1Death or Complete Disability. If Executive’s employment with the Company is terminated as a result of Executive’s death or Complete Disability, the Company shall pay to Executive, or to Executive’s heirs, Executive’s base salary and accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of termination, less standard deductions and withholdings (collectively the “Accrued Obligations”). The Company shall thereafter have no further obligations to Executive and/or Executive’s heirs under this Agreement, except as otherwise provided by law (and except as provided otherwise in Executive’s stock option agreements with the Company).
4.5.2With Cause or Without Good Reason. If Executive’s employment with the Company is terminated at any time either by the Company for Cause or by Executive without Good Reason, the Company shall pay the Accrued Obligations, and the Company shall thereafter have no further obligations to Executive under this Agreement, except as otherwise provided by law (and except as provided otherwise in Executive’s stock option agreements with the Company).
4.5.3Without Cause or for Good Reason. If Executive’s employment with the Company is terminated by the Company without Cause or by Executive for Good Reason, and in either case Executive signs a separation agreement including a comprehensive waiver and release of claims in such form as the Company may require (the “Release”) on or within the time period set forth therein, but in no event later than 45 days after Executive’s termination date, and allows such Release to become effective in accordance with its terms (such latest permitted date on which the Release could become effective, the “Release Deadline”), then Executive will receive the Accrued Obligations and the following benefits:
4.5.3.1Severance Payment. Cash payments in the form of continuation of Executive’s Base Salary at the rate in effect at the time of termination for a period of six (6) months following the termination date (“Severance Payment”); and
4.5.3.2Benefits. Provided that Executive is eligible for and timely elects continued group health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) following Executive’s termination date, the Company shall pay directly to the insurance provider the premium for COBRA continuation coverage for Executive and Executive’s family for a 
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period that will expire upon the earliest of (i) six (6) months following the termination date (the “COBRA Payment Period”), (ii) the effective date that Executive becomes eligible for new healthcare coverage eligibility available through new employment, or (iii) the date Executive is no longer eligible for COBRA coverage, whichever comes first.
4.5.4General Severance Benefit Terms.
4.5.4.1The provisions in this Section shall control and supersede anything to the contrary set forth in this Agreement. For all purposes of this Agreement, references to COBRA premiums shall not include any amounts payable by Executive under a Section 125 health care reimbursement plan under the Code. If at any time the Company determines, in its sole discretion, that it cannot pay the COBRA premiums without potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then regardless of whether Executive elects continued health coverage under COBRA, and in lieu of providing COBRA premiums, the Company will instead pay Executive on the last day of each remaining month of the COBRA Payment Period a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings, which payments shall continue until the earlier of expiration of the COBRA Payment Period of the date when Executive becomes eligible for health insurance coverage in connection with new employment. If Executive becomes eligible for coverage under another employer’s group health plan, Executive must immediately notify the Company of such event, and all COBRA severance benefit payments and obligations under this Agreement shall cease effective as of such date of Executive’s eligibility.
4.5.4.2If all severance payments made under this Agreement will be subject to standard payroll deductions and withholdings and will be made on the Company’s regular payroll cycle, provided, however, that any severance payments otherwise scheduled to be made prior to the effective date of the Release shall instead accrue and be paid in the first payroll period that follows such effective date. Following provisions of any severance benefits to which Executive may be entitled under Section 4.5.3, the Company shall thereafter have no further obligations to Executive under this Agreement, except as otherwise provided by law (and except as provided otherwise in Executive’s stock option agreements with the Company).
4.6Additional Definitions. For the purposes of this Agreement, the following terms shall have the following meanings:
4.6.1“Complete Disability” shall mean with respect to Executive, the inability of Executive to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and will be determined in good faith by the Board based on the basis of such reasonable medical evidence as the Board deems warranted under the circumstances.
4.6.2“Cause” shall mean the occurrence of any of the following events: (i) Executive’s conviction of any felony or any crime involving fraud or dishonesty that has a material adverse effect on the Company; (ii) Executive’s active participation (whether by affirmative act or material omission) in a fraud, act of dishonesty or other act of misconduct against the Company; (iii) Executive’s material violation of any statutory or fiduciary duty owed to the Company; (iv) Executive’s breach of any material term of any material contract between such Executive and the Company; and (v) Executive’s repeated violation of any material the Company policy; provided, however, that termination by the Company due to Sections 1.5(b)(iii)–1.5(b)(vi) shall only be deemed for Cause if Executive fails to cure such conduct, violation, or breach within 30 days following Executive’s receipt of written notice from the Company, unless such conduct, violation, or breach is not capable of being cured in the good faith determination of the Company. The Executive’s Disability shall not constitute Cause as set forth herein. The determination that a termination is for Cause and whether the specified conduct, violation or breach, as applicable, has been satisfactorily cured shall be made in good faith by the Company in its sole and exclusive judgement and discretion. The term “Company” for purposes of this definition will be interpreted to include any Affiliate, as appropriate.
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4.6.3“Good Reason” shall mean the occurrence of any of the following events without Executive’s consent; provided, however, that any resignation by Executive due to any of the following conditions shall only be deemed for Good Reason if: (A) Executive gives the Company written notice of the intent to terminate for Good Reason within 90 days following the first occurrence of the condition(s) that Executive believes constitutes Good Reason, which notice shall describe such condition(s); (B) the Company fails to remedy such condition(s) within 30 days following receipt of the written notice (the “Cure Period”) of such condition(s) from Executive; and (C) Executive actually resigns Executive’s employment within the first 15 days after expiration of the Cure Period:
4.6.3.1material breach by the Company of any material provision in this Agreement or in any other material written agreement between the Company and Executive;
4.6.3.2a material reduction (which the parties agree is a reduction of at least 10%) by the Company of Executive’s base salary on the effective date hereof or as the same may be increased from time to time, unless such reduction is part of a reduction program equally applicable to other executive employees of the Company;
4.6.3.3a material reduction in Executive’s authority, duties or responsibilities, provided, however, that a change in job position (including a change in title) shall not be deemed a “material reduction” in and of itself unless Executive’s new duties are materially reduced from the prior duties; or
4.6.3.4the Company relocates the facility that is Executive’s principal place of business with the Company to a location that requires an increase in Executive’s one-way driving distance by more than 30 miles.
4.7Survival of Certain Provisions. Sections 2, 3.3, 3.5, and 4 through 19 of this Agreement shall survive the termination of this Agreement.
4.8Parachute Payments. Except as otherwise provided in an agreement between Executive and the Company, if any payment or benefit Executive would receive from the Company or otherwise in connection with a change in control (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount (as defined herein). The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, the reduction shall occur in the manner that results in the greatest economic benefit to Executive.
The independent registered public accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the event described in Section 280G(b)(2)(A)(i) of the Code shall perform the foregoing calculations. If the independent registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting such event, the Company shall appoint a nationally recognized independent registered public accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder. The independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within thirty (30) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as reasonably requested by the Company or Executive. Any good faith determinations of the independent registered 
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public accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.
4.9Application of Internal Revenue Code Section 409A.
All benefits under this Agreement are intended to qualify for an exemption from application of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (“Section 409A”) or to comply with its requirements to the extent necessary to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly.
Notwithstanding anything to the contrary set forth herein, any severance benefits that constitute “deferred compensation” within the meaning of Section 409A shall not commence in connection with Executive’s termination of employment unless and until Executive has also incurred a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h)) (“Separation From Service”), unless the Company reasonably determines that such amounts may be provided to Executive without causing Executive to incur the additional 20% tax under Section 409A.
It is intended that each installment of the severance benefit payments provided for in this Agreement is a separate “payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that payments of the severance benefits set forth in this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable, the successor entity thereto) determines that the severance benefits constitute “deferred compensation” under Section 409A and Executive is, on the termination of service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the severance benefit payments shall be delayed until the earlier to occur of: (i) the date that is six months and one day after Executive’s Separation From Service, or (ii) the date of Executive’s death. None of the severance benefits will be paid or otherwise delivered prior to the effective date of the Release. If the severance benefits are not covered by one or more exemptions from the application of Section 409A and the Release could become effective in the calendar year following the calendar year in which Executive’s Separation From Service occurs, the Release will not be deemed effective any earlier than the Release Deadline. Except to the minimum extent that payments must be delayed because Executive is a “specified employee” or until the effectiveness of the Release, all amounts will be paid as soon as practicable in accordance with the Company’s normal payroll practices.
The severance benefits are intended to qualify for an exemption from application of Section 409A or comply with its requirements to the extent necessary to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly.
5.CONFIDENTIAL AND PROPRIETARY INFORMATION; NONSOLICITATION.
5.1As a condition of employment, Executive agrees to execute and abide by the Company’s Confidential Information and Inventions Assignment Agreement attached hereto as EXHIBIT A.
5.2While employed by the Company and for one year thereafter, Executive agrees that in order to protect the Company’s trade secrets and confidential and proprietary information from unauthorized use, Executive will not, either directly or through others, solicit or attempt to solicit any employee, consultant or independent contractor of the Company to terminate his or her relationship with the Company in order to become an employee, consultant or independent contractor to or for any other person or business entity.
6.ASSIGNMENT AND BINDING EFFECT.
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This Agreement shall be binding upon and inure to the benefit of Executive and Executive’s heirs, executors, personal representatives, assigns, administrators and legal representatives. Because of the unique and personal nature of Executive’s duties under this Agreement, neither this Agreement nor any rights or obligations under this Agreement shall be assignable by Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives.
7.NOTICES.
All notices or demands of any kind required or permitted to be given by the Company or Executive under this Agreement shall be given in writing and shall be personally delivered (and receipted for) or faxed during normal business hours or mailed by certified mail return receipt requested, postage prepaid, address as follows,
						
	If to the Company:
Bionano Genomics, Inc.
9540 Towne Centre Drive, Suite 100
San Diego, CA, 92121
Attn: Chief Executive Officer
Company
	If to Executive:
Soheil Shams
[***]
[***]

Any such written notice shall be deemed given on the earlier of the date on which such notice is personally delivered or three days after its deposit in the United States mail as specified above. Either Party may change its address for notices by giving notice to the other Party in the manner specified in this Section.
8.CHOICE OF LAW.
This Agreement shall be construed and interpreted in accordance with the internal laws of the State of California without regard to its conflict of laws principles.
9.INTEGRATION.
This Agreement, including Exhibit A, contains the complete, final and exclusive agreement of the Parties relating to the terms and conditions of Executive’s employment and the termination of Executive’s employment, and supersedes all prior and/or contemporaneous oral and written employment agreements or arrangements between the Parties.
10.AMENDMENT.
This Agreement cannot be amended or modified except by a written agreement signed by Executive and the Company.
11.WAIVER.
No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach.
12.SEVERABILITY.
The finding by a court of competent jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, 
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invalid or illegal. Such court shall have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or provision which most accurately represents the Parties’ intention with respect to the invalid or unenforceable term or provision.
13.INTERPRETATION; CONSTRUCTION.
The headings set forth in this Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but Executive has been encouraged to consult with, and have consulted with, Executive’s own independent counsel and tax advisors with respect to the terms of this Agreement. The Parties acknowledge that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.
14.REPRESENTATIONS AND WARRANTIES.
Executive represents and warrants that Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that Executive’s execution and performance of this Agreement will not violate or breach any other agreements between Executive and any other person or entity.
15.COUNTERPARTS; FACSIMILE.
This Agreement may be executed in two counterparts, each of which shall be deemed an original, all of which together shall contribute one and the same instrument. Facsimile signatures shall be treated the same as original signatures.
16.DISPUTE RESOLUTION.
To ensure the timely and economical resolution of disputes that may arise between Executive and the Company, both Executive and the Company mutually agree that pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by applicable law, Executive and the Company will submit solely to final, binding and confidential arbitration any and all disputes, claims, or causes of action arising from or relating to: (i)  the negotiation, execution, interpretation, performance, breach or enforcement of this Agreement; or (ii) Executive’s employment with the Company (including but not limited to all statutory claims); or (iii) the termination of Executive’s employment with the Company (including but not limited to all statutory claims). By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such disputes through a trial by jury or judge or through an administrative proceeding.
16.1Arbitrator Authority. The arbitrator shall have the sole and exclusive authority to determine whether a dispute, claim or cause of action is subject to arbitration under this Section and to determine any procedural questions which grow out of such disputes, claims or causes of action and bear on their final disposition.
16.2Individual Capacity Only. All claims, disputes, or causes of action under this Section, whether by Executive or the Company, must be brought solely in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity. The arbitrator may not consolidate the claims of more than one person or entity, and may not preside over any form of representative or class proceeding. To the extent that the preceding sentences in this Section are found to violate applicable law or are otherwise found unenforceable, any claim(s) alleged or brought on behalf of a class shall proceed in a court of law rather than by arbitration.
16.3Arbitration Process. Any arbitration proceeding under this Section shall be presided over by a single arbitrator and conducted by Judicial Arbitration and Mediation Services, Inc. 
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(“JAMS”) in San Diego, California, or as otherwise agreed to by Executive and the Company, under the then applicable JAMS rules for the resolution of employment disputes (available upon request and also currently available at http://www.jamsadr.com/rules-employment-arbitration/). Executive and the Company both have the right to be represented by legal counsel at any arbitration proceeding, at each party’s own expense. The arbitrator shall: (i) have the authority to compel adequate discovery for the resolution of the dispute; (ii) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award; and (iii) be authorized to award any or all remedies that Executive or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS arbitration fees in excess of the amount of court fees that would be required of Executive if the dispute were decided in a court of law.
16.4Excluded Claims. This Section shall not apply to any action or claim that cannot be subject to mandatory arbitration as a matter of law, including, without limitation, claims brought pursuant to the California Private Attorneys General Act of 2004, as amended, the California Fair Employment and Housing Act, as amended, and the California Labor Code, as amended, to the extent such claims are not permitted by applicable law to be submitted to mandatory arbitration and such applicable law is not preempted by the Federal Arbitration Act or otherwise invalid (collectively, the “Excluded Claims”). In the event Executive intends to bring multiple claims, including one of the Excluded Claims listed above, the Excluded Claims may be filed with a court, while any other claims will remain subject to mandatory arbitration.
16.5Injunctive Relief and Final Orders. Nothing in this Section is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any final award in any arbitration proceeding hereunder may be entered as a judgment in the federal and state courts of any competent jurisdiction and enforced accordingly.
17.TRADE SECRETS OF OTHERS.
It is the understanding of both the Company and Executive that Executive shall not divulge to the Company and/or its subsidiaries any confidential information or trade secrets belonging to others, including Executive’s former employers, nor shall the Company and/or its Affiliates seek to elicit from Executive any such information. Consistent with the foregoing, Executive shall not provide to the Company and/or its Affiliates, and the Company and/or its Affiliates shall not request, any documents or copies of documents containing such information.
18.ADVERTISING WAIVER.
Executive agrees to permit the Company and/or its affiliates, subsidiaries, or joint ventures currently existing or which shall be established during Executive’s employment by the Company (collectively, “Affiliates”), and persons or other organizations authorized by the Company and/or its Affiliates, to use, publish and distribute advertising or sales promotional literature concerning the products and/or services of the Company and/or its Affiliates, or the machinery and equipment used in the provision thereof, in which Executive’s name and/or pictures of Executive taken in the course of Executive’s provision of services to the Company and/or its Affiliates, appear. Executive hereby waives and releases any claim or right Executive may otherwise have arising out of such use, publication or distribution. The Company agrees that, following termination of Executive’s employment, it will not create any new such literature containing Executive’s name and/or pictures without Executive’s prior written consent.
19.INDEMNIFICATION.
Subject to applicable law, Executive will be provided indemnification to the maximum extent permitted by the Company’s Bylaws and Articles of Incorporation, including coverage, if applicable, under any directors and officers insurance policies, with such indemnification determined by the Board or any of its committees in good faith based on principles consistently applied (subject to such limited 
10

exceptions as the Board may approve in cases of hardship) and on terms no less favorable than provided to any other Company executive officer or director.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

11

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

COMPANY:
BIONANO GENOMICS, INC.

						
	By:	/s/ R. Erik Holmlin, Ph.D.
		Name: R. Erik Holmlin, Ph.D.
		Title:   President and Chief Executive Officer
		
	Date:	October 8, 2021

(Signature Page to Employment Agreement)

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

EXECUTIVE:

						
	/s/ Soheil Shams
	Soheil Shams
		
		
	Date:	October 8, 2021

(Signature Page to Employment Agreement)

EXHIBIT A

CONFIDENTIAL INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT
Exhibit A-1Document

Exhibit 10.35

CONFIDENTIAL
Execution Version

STOCK RESTRICTION AGREEMENT 

    This STOCK RESTRICTION AGREEMENT (this “Agreement”), dated for reference purposes only as October 8, 2021, is made and entered into by and between Bionano Genomics, Inc., a Delaware corporation (“Parent”), and the undersigned stockholder of the Company (the “Holder”). Each of Parent and the Holder are collectively referred to from time to time herein as the “Parties,” and each, individually, as a “Party.”  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Merger Agreement (as defined below).

RECITALS
    WHEREAS, Parent, Starship Merger Sub I, Inc., a California corporation and a wholly owned Subsidiary of Parent (“Merger Sub I”), Starship Merger Sub II, LLC, a California limited liability company and a wholly owned Subsidiary of Parent (“Merger Sub II” and, together with Merger Sub I, the “Merger Subs”), BioDiscovery, Inc., a California corporation (the “Company”), and Soheil Shams solely in its capacity as the representative of the Participating Securityholders (the “Stockholder Representative”), have entered into that certain Agreement and Plan of Merger, dated as of October 8, 2021 (as such agreement may be amended from time to time, the “Merger Agreement”), pursuant to which the Company shall be acquired by Parent, by means of a merger of Merger Sub I with and into the Company, pursuant to which the Company will survive and become a wholly owned subsidiary of Parent (“Merger I”), and, as part of the same overall transaction, promptly after Merger I, the surviving entity of Merger I will merge with and into Merger Sub II, with Merger Sub II surviving such merger (“Merger II” and, together with Merger I, the “Mergers”), on the terms and subject to the conditions set forth in the Merger Agreement; 

    WHEREAS, at the Closing, as part of the Merger Consideration, the Holder will receive shares of Parent Common Stock (the “Shares”);  and

    WHEREAS, as a condition and inducement to Parent and the Merger Subs entering into the Merger Agreement and as a condition to the consummation of the Mergers and the other transactions contemplated by the Merger Agreement, the Holder is executing and delivering this Agreement. 

    NOW THEREFORE, in consideration of the premises, covenants and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
ARTICLE I
REVESTED STOCK CONSIDERATION

1.1Revesting of Certain Merger Consideration. The Holder hereby acknowledges and agrees that 5,006,479 of the Shares shall be subject to provisions set forth in this Agreement (such Shares subject to such provisions, the Holder’s “Revested Stock Consideration”).
1.2Vesting of Revested Stock Consideration.  
(a)The Revested Stock Consideration will be unvested as of its issuance to the Holder at the Closing. 
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(b)One-third of the Revested Stock Consideration shall vest on the first anniversary of the Closing Date and one-twelfth (1/12th) of the Revested Stock Consideration shall vest every three (3) months following the first anniversary of the Closing Date (for illustrative purposes only, if the Closing Date is October 15, 2021, the first vesting will occur on October 15, 2022, the second vesting will occur on January 15, 2023 and the third vesting will occur on April 15, 2023 and so on until the final vesting date on October 15, 2024). The number of shares of Revested Stock Consideration that vest upon each vesting date shall be rounded down to the nearest whole share, with the balance of any shares that did not vest as a result of such rounding to vest on the final vesting date, subject to rounding.
(c)Subject to Section 1.2(d) below, the vesting of the Revested Stock Consideration on a particular vesting date shall be subject to the Holder’s continuous Service (as defined below) through and including the day of the applicable calendar month on which the vesting date occurs. The Holder shall, for purposes of this Agreement, be deemed to provide “Service” for so long as the Holder remains an employee of, or a consultant or advisor (pursuant to a mutually negotiated consulting or advisor agreement) to, Parent or one of Parent’s Subsidiaries. For the avoidance of doubt, termination of employment with or service to Parent or any of its Subsidiaries to take employment with or provide service to another of Parent or any of its Subsidiaries shall not be considered termination of Service. 
(d)Upon the termination of Service (i) by Parent or a Subsidiary of Parent other than for Cause, (ii) by the Holder for Good Reason or (iii) as a result of the Holder’s death or Disability, any then unvested Revested Stock Consideration shall automatically vest in full as of such date of termination of Service; provided, however, in the event of termination of Service pursuant to subclauses (i) or (ii) of this Section 1.2(d), such Revested Stock Consideration will not vest or be released to the Holder until the Holder has executed and delivered to Parent (and not revoked) a customary release of claims arising out of the Holder’s employment (including any claims for discrimination, harassment or wrongful termination), in form and substance reasonably acceptable to Parent and subject to reasonable and customary exclusions, including exclusions for earned and unpaid compensation, unreimbursed business expenses, rights of indemnification and rights as a holder of equity securities, and such release shall have become effective.    
1.3Forfeiture of Revested Stock Consideration. Subject to Section 1.2(d), in the event that the Holder’s Service terminates at any time after the Closing, then all of the Revested Stock Consideration that has not vested pursuant to Section 1.2 prior to the date of such termination shall be automatically forfeited by the Holder and redeemed by Parent for no consideration, without the requirement for any further action on the part of the Holder, Parent or any other Person.
1.4Right to Satisfy Claims from the Revested Stock Consideration. Parent is expressly authorized to set off up to 100% of (i) any Damages for which it is entitled to indemnification under the Merger Agreement, or (ii) any negative Adjustment Amount determined pursuant to Section 1.17 (Post-Closing Adjustment) of the Merger agreement for which it is entitled to indemnification under the Merger Agreement against Holder, against any Shares subject to the Revested Stock Consideration, subject to any limitations on such setoff set forth in the Merger Agreement.
1.5Definitions. For purposes of this Agreement:
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(a)“Board” shall mean the Board of Directors of Parent; provided, however, that if the Board has delegated relevant authority to the Compensation Committee of the Board, then “Board” shall also mean the Compensation Committee.
(b)“Cause” shall have the meaning ascribed to such term in the Key Employee Agreement between the Holder and Parent executed in connection with the Mergers, as amended from time to time (the “Key Employee Agreement”), and, in the absence of such agreement or in the event that such agreement in effect is less favorable to the Holder, shall mean the occurrence of any of the following events: (i) the Holder’s conviction of any felony or any crime involving fraud or dishonesty that has a material adverse effect on Parent; (ii) the Holder’s active participation (whether by affirmative act or material omission) in a fraud, act of dishonesty or other act of misconduct against Parent; (iii)  the Holder’s material violation of any statutory or fiduciary duty owed to Parent; (iv) the Holder’s breach of any material term of any material contract between such Holder and Parent; and (v) the Holder’s repeated violation of any material Parent policy; provided, however, that termination by Parent due to Sections 1.5(b)(iii)–1.5(b)(vi) shall only be deemed for Cause if the Holder fails to cure such conduct, violation, or breach within 30 days following the Holder’s receipt of written notice from Parent, unless such conduct, violation, or breach is not capable of being cured in the good faith determination of Parent. The Holder’s Disability shall not constitute Cause as set forth herein. The determination that a termination is for Cause and whether the specified conduct, violation or breach, as applicable, has been satisfactorily cured shall be made in good faith by Parent in its sole and exclusive judgement and discretion. The term “Parent” for purposes of this definition will be interpreted to include any Affiliate, as appropriate.
(c) “Disability” shall have the meaning ascribed to such term or a similar term in the Key Employee Agreement, and, in the absence of such agreement or in the event that such agreement in effect is less favorable to the Holder, shall mean with respect to the Holder, the inability of the Holder to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and will be determined in good faith by the Board based on the basis of such reasonable medical evidence as the Board deems warranted under the circumstances.
(d)“Good Reason” for the Holder’s resignation shall have the meaning ascribed to such term in the Key Employee Agreement, and, in the absence of such agreement or in the event that such agreement in effect is less favorable to the Holder, shall mean the occurrence of any of the following events without the Holder’s consent; provided, however, that any resignation by the Holder due to any of the following conditions shall only be deemed for Good Reason if: (A) the Holder gives Parent written notice of the intent to terminate for Good Reason within 90 days following the first occurrence of the condition(s) that the Holder believes constitutes Good Reason, which notice shall describe such condition(s); (B) Parent fails to remedy such condition(s) within 30 days following receipt of the written notice (the “Cure Period”) of such condition(s) from the Holder; and (C) the Holder actually resigns the Holder’s employment within the first 15 days after expiration of the Cure Period:
(i)material breach by Parent of any material provision in this Agreement or in any other material written agreement between Parent and the Holder;
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(ii)a material reduction (which the parties agree is a reduction of at least 10%) by Parent of the Holder’s base salary on the effective date hereof or as the same may be increased from time to time, unless such reduction is part of a reduction program equally applicable to other executive employees of Parent;
(iii)a material reduction in the Holder’s authority, duties or responsibilities, provided, however, that a change in job position (including a change in title) shall not be deemed a “material reduction” in and of itself unless the Holder’s new duties are materially reduced from the prior duties; or
(iv)Parent relocates the facility that is the Holder’s principal place of business with Parent to a location that requires an increase in the Holder’s one-way driving distance by more than 30 miles.
(e)The Holder will be deemed to have effected a “Transfer” of Restricted Stock Consideration if the Holder, whether voluntarily or involuntarily, directly or indirectly (i) sells, pledges, encumbers, hypothecates, leases, assigns, gifts, grants an option with respect to, transfers, exchanges, tenders or disposes (by merger, by testamentary disposition, by operation of law or otherwise) all or any portion of such Restricted Stock Consideration or any interest in such Restricted Stock Consideration, (ii) creates or permits to exist any lien, pledge, charge, claim, mortgage, security interest or other encumbrance on the Restricted Stock Consideration, or (iii) agrees to take any of the actions referred to in the foregoing clauses (i) through (iii).
1.6Dividend and Voting Rights. During any period in which the Revested Stock Consideration has not fully vested pursuant to Section 1.2(b) and has not been forfeited pursuant to Section 1.3, the Holder shall be deemed to be the legal and beneficial owner of such shares (subject to the terms of this Agreement) of Parent Common Stock and shall have the right to (i) receive any cash dividends declared thereupon (any stock dividends declared shall be deemed additional Revested Stock Consideration and shall be subject to the same vesting schedule set forth in Section 1.2(b) and be released to the Holder or forfeited as provided herein) and (ii) vote any such shares in the Holder’s discretion with respect to each matter for which holders of shares of Parent Common Stock are entitled to vote.
1.7Tax Matters.  
(a)Each Party agrees that the Revested Stock Consideration has been issued to the Holder as consideration in respect of the Holder’s Company Capital Stock and is not subject to wage withholding except to the extent that another treatment is required by either (i) a change in Law or (ii) a final determination within the meaning of Section 1313 of the Code; provided, that no Party shall be prevented from taking a tax position inconsistent with such tax treatment in settlement of a tax controversy, and no Party shall be required to litigate in order to support a tax position. The Holder agrees that the Holder shall make a protective election under Section 83(b) of the Code, with respect to the Revested Stock Consideration within 30 days after the receipt of such Revested Stock Consideration, using the form attached hereto as Exhibit A, and will provide to Parent a copy of such election promptly after it is filed. Notwithstanding the foregoing, the Holder acknowledges that the Holder is relying solely on its own Tax advisors in connection with this Agreement.
(b)The Holder agrees to submit a properly completed and executed Internal Revenue Service Form W-9 to Parent at the Closing.
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1.8No Guarantee of Employment. In no event shall any provision of this Agreement or the transactions contemplated hereby give or be deemed to give the Holder any right to continued employment by Parent or any of its Subsidiaries or affect in any manner the right of the Holder’s Employer to terminate the Holder’s employment at any time.
1.9Equitable Adjustments. In the event of any stock split, reverse stock split, stock dividend (including any dividend or distribution of securities convertible into capital stock), reorganization, reclassification, combination, recapitalization or other like change with respect to the Parent Common Stock occurring after the Merger I Effective Time, all references in this Article I to specified numbers or types of shares, and all calculations provided for that are based upon numbers or types of shares affected thereby, shall be equitably adjusted to the extent necessary to provide the parties the same economic effect as contemplated by this Article I prior to such stock split, reverse stock split, stock dividend, reorganization, reclassification, combination, recapitalization or other like change.  
1.10Transfer Restrictions; Additional Legend.  
(a)The Holder shall not Transfer (or cause or permit the Transfer of) any Revested Stock Consideration that has not vested in accordance with the terms of Section 1.2, or enter into any agreement relating thereto.
(b)The Holder understands that any Revested Stock Consideration that has not vested in accordance with the terms of Section 1.2 shall bear the following restrictive legend (in addition to any other legend required by law or the Merger Agreement):
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REACQUISITION RIGHT AND OTHER RESTRICTIONS AND CONDITIONS SET FORTH IN A STOCK RESTRICTION AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE COMPANY’S PRINCIPAL CORPORATE OFFICE. ANY SALE, PLEDGE, HYPOTHECATION OR OTHER TRANSFER, OR ATTEMPT TO DO ANY OF THE FOREGOING, WITH RESPECT TO ANY SECURITIES SUBJECT TO SUCH RIGHT, RESTRICTIONS OR CONDITIONS IN CONTRAVENTION OF SUCH AGREEMENT IS NULL AND VOID WITHOUT THE PRIOR EXPRESS WRITTEN CONSENT OF THE COMPANY.
ARTICLE II
MISCELLANEOUS
2.1Specific Performance.  
(a)The Parties agree that, in the event of any breach or threatened breach by the other Party or Parties hereto of any covenant, obligation or other agreement set forth in this Agreement, (i) each Party shall be entitled, without any proof of actual damages (and in addition to any other remedy that may be available to it), to specific performance to enforce the observance and performance of such covenant, obligation or other agreement and an injunction preventing or restraining such breach or threatened breach, and (ii) no Party shall be required to provide or post any bond or other security or collateral in connection with any such decree, order or injunction or in connection with any related Legal Proceeding. 
5

(b)Any and all remedies expressly conferred herein upon a Party hereunder shall be deemed to be cumulative with, and not exclusive of, any other remedy conferred hereby, or by Law or in equity upon such Party, and the exercise by a Party of any one remedy will not preclude the exercise of any other remedy.
2.2Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of Law provision or rule (whether of the State of Delaware or any other jurisdiction).
2.3Exclusive Jurisdiction; Waiver of Jury Trial.  
(a)ANY LEGAL PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE MERGER AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED FIRST, IN THE COURT OF CHANCERY WITHIN NEW CASTLE COUNTY IN THE STATE OF DELAWARE (AND ANY APPELLATE COURT THEREOF LOCATED WITHIN SUCH COUNTY) AND TO THE EXTENT SUCH COURT OF CHANCERY (OR APPELLATE COURT THEREOF LOCATED WITHIN SUCH COUNTY) LACKS JURISDICTION OVER THE MATTER, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED WITHIN NEW CASTLE COUNTY IN THE STATE OF DELAWARE (OR APPELLATE COURT THEREOF LOCATED WITHIN SUCH COUNTY), AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH LEGAL PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY LEGAL PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY LEGAL PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH LEGAL PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
(b)EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE MERGER AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE MERGER AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL PROCEEDING, (II) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 2.3(B).
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2.4Entire Agreement; Assignment. This Agreement, the Merger Agreement, the Non-Competition and Non-Solicitation Agreement and the Key Employee Agreement (a) constitute the entire agreement among the Parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof and thereof, (b) are not intended to confer upon any other Person any rights or remedies hereunder (other than in the case of the Holder’s estate or legal representative in the event of the Holder’s death or disability), and (c) shall not be assigned by the Holder by operation of law or otherwise. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and permitted assigns. Any purported assignment not permitted under this Section 2.4 shall be null and void.
2.5Amendment; Waiver. This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement, signed by the Parties hereto. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
2.6Notices. Any notice or other communication required or permitted to be delivered to any Party under this Agreement shall be in writing and shall be deemed properly delivered, given and received (a) upon receipt when delivered by hand, (b) upon transmission, if sent by electronic mail transmission, or (c) one Business Day after being sent by courier or express delivery service; provided, that in each case the notice or other communication is sent to the address or electronic mail address as specified for such party below (or to such other address or electronic mail address as such party shall have specified in a written notice given to the other parties hereto):
(a)If to Parent, then as provided for in Section 10.9 (Notices) of the Merger Agreement; and
(b)If to the Holder, then to the address set forth on the Holder’s signature page hereto.
2.7Severability. In the event that any provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement shall continue in full force and effect and the application of such provision to other Persons or circumstances shall be interpreted so as reasonably to effect the intent of the Parties hereto. The Parties further agree to replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that shall achieve, to the extent possible, the economic, business and other purposes of such illegal, void or unenforceable provision. 
2.8Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument. A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which the signature of or on 
7

behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective for all purposes.
2.9Interpretation. The words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation.” The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The words “hereof,” “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. Article, section and paragraph references are to the articles, sections and paragraphs of this Agreement unless otherwise specified. The meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term, and words denoting any gender shall include all genders. The word “extent” and the phrase “to the extent” when used in this Agreement shall mean the degree to which a subject or other things extends, and such word or phrase shall not merely mean “if.” The term “or” is not exclusive, and shall be interpreted as “and/or” unless the context clearly requires otherwise. A reference to any specific legislation or to any provision of any legislation shall include any amendment to, and any modification or re-enactment thereof, any legislative provision substituted therefor and all regulations and statutory instruments issued thereunder or pursuant thereto.
2.10Termination. This Agreement shall terminate upon the earlier of (a) the valid termination of the Merger Agreement in accordance with the provisions of Section 9 (Termination) of the Merger Agreement and (b) the termination of this Agreement by mutual consent of the Parties (each individually a “Termination Event”) and shall be null and void in all respects after a Termination Event; provided, that, nothing herein shall relieve any Party from liability in connection with any breach of such party’s representations, warranties or covenants contained herein occurring prior to a Termination Event.
2.11Acknowledgments. Each party to this Agreement acknowledges that (a) Pillsbury Winthrop Shaw Pittman LLP, counsel for the Company, represented the Company in connection with the Mergers and related transactions, (b) Cooley LLP, counsel for Parent and the Merger Subs, represented Parent and the Merger Subs in connection with this Agreement, the Mergers and related transactions, and (c) neither of the foregoing firms has represented the Holder in connection with this Agreement, the Mergers or related transactions.
2.12Effective Date. Notwithstanding the date of execution of this Agreement, this Agreement shall only become effective upon the Closing, and if the Merger Agreement shall terminate in accordance with its terms prior to the Closing, this Agreement shall never become effective.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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    IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above written.
                    
                    
                        PARENT:

                        BIONANO GENOMICS, INC.

						
	By:	/s/ R. Erik Holmlin, Ph.D.
		Name: R. Erik Holmlin, Ph.D.
		Title:   President and Chief Executive Officer
		

                        

                        
(SIGNATURE PAGE TO STOCK RESTRICTION AGREEMENT)

                    HOLDER:

						
	By:	/s/ Soheil Shams

		Name: Soheil Shams

                    

                    Address: 
                        
                         [***]                                                    

                         [***]                                                    

                         [***]                                                    

                    Email:      [***]                                                                                          
                    Shares:       5,006,479                
                        
            
                                            
(SIGNATURE PAGE TO STOCK RESTRICTION AGREEMENT)

EXHIBIT A
SECTION 83(b) ELECTION

____________ _____, 2021
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002
Re:    Election Under Section 83(b)
Ladies and Gentlemen:
The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in gross income as compensation for services the excess (if any) of the fair market value of the shares described below over the amount paid for those shares. The following information is supplied in accordance with Treasury Regulation § 1.83-2:
1.    The name, social security number, address of the undersigned, and the taxable year for which this election is being made are:
Name:         
Social Security Number:         
Address:        
        
    Taxable year:    Calendar year 2021. 
2.    The property that is the subject of this election:  _____________1 shares of common stock (the “Shares”) of Bionano Genomics, Inc., a Delaware corporation (“Parent”).
3.    The Shares were transferred on: ____________ _____, 2021.2
4.    The Shares are subject to the following restrictions:  The Shares are subject to forfeiture if the undersigned does not continue to provide services for Parent for a designated period of time. The risk of forfeiture lapses over a specified vesting period.
5.    The fair market value of the Shares at the time of transfer (determined without regard to any lapse restriction as defined in Treasury Regulation § 1.83-3(i)):  ___________________.3
6.    The amount paid by the undersigned for the Shares:  ___________________. 4  The Shares were transferred as part of the consideration received by the undersigned incident to the acquisition of BioDiscovery, Inc., a California corporation (the “Company”) by Parent in a transaction qualifying as a “reorganization” within the meaning of Internal Revenue Code section 368(a). Gain or loss with respect to the undersigned’s shares of Company capital stock will be recognized to the extent provided by Internal Revenue Code section 356.  See Revenue Ruling 2007-49, 2007-2 C.B. 237.

1    The quotient of (i) the product of (A) $30 million and (B) taxpayer’s Ownership Percentage, divided by (ii) the Parent Trading Price.
2    Closing Date.
3     $30 million multiplied by taxpayer’s Ownership Percentage.
4     $30 million multiplied by taxpayer’s Ownership Percentage.
4845-5418-2909.v4

The undersigned taxpayer will file this election with the Internal Revenue Service office with which taxpayer files his annual income tax return not later than 30 days after the date of transfer of the Shares. A copy of the election also will be furnished to the person for whom the services were performed. The undersigned is the person performing the services in connection with which the Shares were transferred.
Very truly yours,
    
[Name]

4845-5418-2909.v4

RETURN SERVICE REQUESTED

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002
Re:    Election Under Section 83(b) of the Internal Revenue Code 
Dear Sir or Madam:
Enclosed please find an executed election under Section 83(b) of the Internal Revenue Code of 1986, as amended, filed with respect to shares of common stock of Bionano Genomics, Inc.
Also enclosed is a copy of this letter and a stamped, self-addressed envelope. Please acknowledge receipt of these materials by marking the copy when received and returning it to the undersigned.
Thank you very much for your assistance.
Very truly yours,
    
[Name]
Enclosures

4845-5418-2909.v4

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