Document:

Form of Non-Qualified Stock Option Agreement under 1995 Stock Incentive Plan

 Exhibit 10.3 
 1995-NQSO-         
 THEROX, INCORPORATED

 NONQUALIFIED STOCK OPTION AGREEMENT 
 This Nonqualified Stock Option Agreement (the “Agreement”) is entered into as of
                    , by and between THEROX, INCORPORATED, a Delaware corporation (the “Company”), and
                    , (the “Optionee”) pursuant to the Company’s 1995 Stock Incentive Plan (the “Plan”). 

R E C I T A L S : 
 A.
Optionee is eligible to receive options under the Plan. 
 B. The Company desires to grant to Optionee, and Optionee desires to receive the
grant of, options under the Plan on the terms, provisions and conditions, and subject to the restrictions and agreements, hereinafter provided. 
 NOW, THEREFORE, for good and valuable consideration, the parties agree as follows: 
 1. Grant of
Option. The Company hereby grants to Optionee an option (the “Option”) to purchase all or any portion of a total of             
(            ) shares (the “Shares”) of the Common Stock of the Company at a purchase price of          Cents
($0.        ) per share (the “Exercise Price”), subject to the terms and conditions set forth herein and the provisions of the Plan. This Option is intended to constitute a “nonqualified
stock option” within the meaning of the Plan.  
 2. Vesting of Option. The right to exercise this
Option shall vest in forty-eight (48) equal cumulative monthly installments of                      and
             One-Hundredths (                 /100) shares each, commencing on
                    , and continuing until
                    , when this Option, unless sooner terminated, will have become exercisable as to all the Shares issuable hereunder. This
Option shall be exercisable, in the manner set forth in Section 4 hereof, from time to time in whole or in part as to any and all vested installments, provided, however, that this Option shall not be exercised as to any fractional shares. 

 No additional Shares shall vest after the date of termination of Optionee’s “Continuous Service” (as defined in Section 3 below),
but this Option shall continue to be exercisable in accordance with Section 3 hereof with respect to that number of Shares that have vested as of the date of termination of Optionee’s Continuous Service. 
 3. Term of Option. Optionee’s right to exercise this Option shall terminate upon the first to occur of the following:
 
 (a) the expiration of ten (10) years from the date of this Agreement; 
 (b) the expiration of twelve (12) months from the date of termination of Optionee’s Continuous Service; 

 (c) the expiration of one (1) month from the date of termination of Optionee’s Continuous
Service if such termination occurs due to voluntary resignation; provided, however, that if Optionee dies during such one-month period the provisions of Section 3(e) below shall apply; 
 (d) the expiration of one (1) year from the date of termination of Optionee’s Continuous Service if such termination is due to permanent
disability of the Optionee (as defined in Section 22(e)(3) of the Code); or 
 (e) the expiration of one (1) year from the date of
termination of Optionee’s Continuous Service if such termination is due to Optionee’s death or if death occurs during either the three-month or one-month period following termination of Optionee’s Continuous Service pursuant to
Section 3(b) or 3(c) above, as the case may be. 
 As used herein, the term “Continuous Service” means (i) employment by
either the Company or any parent or subsidiary corporation of the Company, or by a corporation or a parent or subsidiary of a corporation issuing or assuming a stock option in a transaction to which Section 424(a) of the Code applies, which is
uninterrupted except for vacations, illness (except for permanent disability, as defined in Section 22(e)(3) of the Code), or leaves of absence which are approved in writing by the Company or any of such other employer corporations, if
applicable, (ii) service as a member of the Board of Directors of the Company, or (iii) so long as Optionee is engaged as a consultant or service provider to the Company or other corporation referred to in clause (i) above.

 4. Exercise of Option. On or after the vesting of any portion of this Option in accordance with Section 2
above, and until termination of this Option in accordance with Section 3 above, the portion of this Option which has vested may be exercised in whole or in part by the Optionee (or, after Optionee’s death, by the successor designated in
Section 5 below) upon delivery of the following to the Company at its principal executive offices:  
 (a) a written notice of
exercise which identifies this Agreement and states the number of Shares then being purchased (but no fractional Shares may be purchased); 
 (b) a check or cash in the amount of the Exercise Price (or payment of the Exercise Price in such other form of lawful consideration as the Administrator may approve from time to time under the provisions of Section 5.3 of the Plan);

 (c) a check or cash in the amount reasonably requested by the Company to satisfy the Company’s withholding obligations under federal,
state or other applicable tax laws with respect to the taxable income, if any, recognized by the Optionee in connection with the exercise of this Option (unless the Company and Optionee shall have made other arrangements for deductions or
withholding from Optionee’s wages, bonus or other compensation payable to Optionee, or by the withholding of Shares issuable upon exercise of this Option or the delivery of Shares owned by the Optionee in accordance with Section 10.1 of
the Plan, provided such arrangements satisfy the requirements of applicable tax laws); and 
 (d) a letter, if requested by the Company, in
such form and substance as the Company may require, setting forth the investment intent of the Optionee, or person designated in Section 5 below, as the case may be. 
  

 2 

 5. Death of Optionee; No Assignment. The rights of the Optionee under this
Agreement may not be assigned or transferred except by will or by the laws of descent and distribution, and may be exercised during the lifetime of the Optionee only by such Optionee. Any attempt to sell, pledge, assign, hypothecate, transfer or
dispose of this Option in contravention of this Agreement or the Plan shall be void and shall have no effect. If the Optionee’s Continuous Service terminates as a result of Optionee’s death, and provided Optionee’s rights hereunder
shall have vested pursuant to Section 2 hereof, Optionee’s legal representative, Optionee’s legatee, or the person who acquired the right to exercise this Option by reason of the death of the Optionee (individually, a
“Successor”) shall succeed to the Optionee’s rights and obligations under this Agreement. After the death of the Optionee, only a Successor may exercise this Option.  
 6. Representations and Warranties of Optionee.  
 (a) Optionee represents and warrants that this Option is being acquired by Optionee for Optionee’s personal account, for investment purposes only, and not with a view to the distribution, resale or other
disposition thereof. 
 (b) Optionee acknowledges that the Company may issue Shares upon the exercise of the Option without registering such
Shares under the Securities Act of 1933, as amended (the “Act”), on the basis of certain exemptions from such registration requirement. Accordingly, Optionee agrees that Optionee’s exercise of the Option may be expressly conditioned
upon Optionee’s delivery to the Company of an investment certificate including such representations and undertakings as the Company may reasonably require in order to assure the availability of such exemptions, including a representation that
Optionee is acquiring the Shares for investment and not with a present intention of selling or otherwise disposing thereof and an agreement by Optionee that the certificates evidencing the Shares may bear a legend indicating such non-registration
under the Act and the resulting restrictions on transfer. Optionee acknowledges that, because Shares received upon exercise of an Option may be unregistered, Optionee may be required to hold the Shares indefinitely unless they are subsequently
registered for resale under the Act or an exemption from such registration is available. 
 (c) Optionee acknowledges receipt of a copy of
the Plan and understands that all rights and obligations connected with this Option are set forth in this Agreement and in the Plan. 
 7. Restrictive Legends. Optionee hereby acknowledges that federal securities laws and the securities laws of the state in which Optionee resides may require the placement of certain restrictive legends upon the
Shares issued upon exercise of this Option, and Optionee hereby consents to the placing of any such legends upon certificates evidencing the Shares as the Company, or its counsel, may deem necessary or advisable.  
 8. Limitation of Company’s Liability for Nonissuance. The Company agrees to use its reasonable best efforts to obtain
from any applicable regulatory agency such authority or approval as may be required in order to issue and sell the Shares to the Optionee pursuant to this Option. Inability of the Company to obtain, from any such regulatory agency, authority or
approval deemed by the Company’s counsel to be necessary for the lawful issuance and sale of the Shares hereunder and under the Plan shall relieve the Company of any liability in respect of the nonissuance or sale of such shares as to which
such requisite authority or approval shall not have been obtained.  
  

 3 

 9. Right of First Refusal.  
 (a) The Shares acquired pursuant to the exercise of this Option may be sold by the Optionee only in compliance with the provisions of this Section 9,
and subject in all cases to compliance with the provisions of Section 6(b) hereof. Prior to any intended sale, Optionee shall first give written notice (the “Offer Notice”) to the Company specifying (i) Optionee’s bona fide
intention to sell or otherwise transfer such Shares, (ii) the name and address of the proposed purchaser(s), (iii) the number of Shares the Optionee proposes to sell (the “Offered Shares”), (iv) the price for which Optionee
proposes to sell the Offered Shares, and (v) all other material terms and conditions of the proposed sale. 
 (b) Within 30 days after
receipt of the Offer Notice, the Company or its nominee(s) may elect to purchase all or any portion of the Offered Shares at the price and on the terms and conditions set forth in the Offer Notice by delivery of written notice (the “Acceptance
Notice”) to the Optionee specifying the number of Offered Shares that the Company or its nominees elect to purchase. Within 15 days after delivery of the Acceptance Notice to the Optionee, the Company and/or its nominee(s) shall deliver to the
Optionee a check (or, at the discretion of the Company, such other form of consideration set forth in the Offer Notice) in the amount of the purchase price of the Offered Shares to be purchased pursuant to this Section 9, against delivery by
the Optionee of a certificate or certificates representing the Offered Shares to be purchased, duly endorsed for transfer to the Company or such nominee(s), as the case may be. If the Company and/or its nominee(s) do not elect to purchase all of the
Offered Shares, the Optionee shall be entitled to sell the balance of the Offered Shares to the purchaser(s) named in the Offer Notice at the price specified in the Offer Notice or at a higher price and on the terms and conditions set forth in the
Offer Notice, provided, however, that such sale or other transfer must be consummated within 60 days from the date of the Offer Notice and any proposed sale after such 60-day period may be made only by again complying with the procedures set forth
in this Section 9. 
 (c) The Optionee may transfer all or any portion of the Shares to a trust established for the sole benefit of the
Optionee and/or his or her spouse or children without such transfer being subject to the right of first refusal set forth in this Section 9, provided that the Shares so transferred shall remain subject to the terms and conditions of this
Agreement and no further transfer of such Shares may be made without complying with the provisions of this Section 9. 
 (d) Any
Successor of Optionee pursuant to Section 5 hereof, and any transferee of the Shares pursuant to this Section 9, shall hold the Shares subject to the terms and conditions of this Agreement and no further transfer of the Shares may be made
without complying with the provisions of this Section 9. 
  

 4 

 (e) All stock certificates evidencing the Shares shall be imprinted with a legend substantially as
follows: 
 “THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS AGAINST TRANSFER, INCLUDING A RIGHT
OF FIRST REFUSAL IN FAVOR OF THE COMPANY, AS SET FORTH IN A STOCK OPTION AGREEMENT DATED                     . TRANSFER OF THESE SHARES MAY BE
MADE ONLY IN COMPLIANCE WITH THE PROVISIONS OF SAID AGREEMENT, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.” 
 (f) The rights provided the Company and its nominee(s) under this Section 9 shall terminate upon the closing of an underwritten public offering of shares of the Company’s Common Stock pursuant to an effective registration
statement under the Securities Act of 1933, as amended (the “Securities Act”). 
 10. Repurchase Option. 

 (a) In the event Optionee ceases Continuous Service with the Company for any reason (the “Termination”), any Shares acquired
or which may thereafter be acquired pursuant to the exercise of this Option (the “Purchased Shares”) (whether held by Optionee or one or more of Optionee’s transferees) will be subject to repurchase by the Company (or its nominee(s))
pursuant to the terms and conditions set forth in this Section 10 (the “Repurchase Option”). 
 (b) The purchase price for
each Purchased Share will be the “Fair Market Value” (as defined below) for such share as determined on the date of Termination (the “Repurchase Price”). 
 (c) The Company’s board of directors (the “Board”) (or its nominee(s)) may elect to purchase all or any portion of the Purchased Shares by
delivering written notice (the “Repurchase Notice”) to the holder or holders of the Purchased Shares within 120 days after the Termination. The Repurchase Notice will set forth the number of Purchased Shares to be acquired from Optionee,
the aggregate consideration to be paid for such shares and the time and place for the closing of the transaction. The number of Purchased Shares to be repurchased shall first be satisfied to the extent possible from the Purchased Shares held by
Optionee at the time of delivery of the Repurchase Notice. If the number of Purchased Shares then held by Optionee is less than the total number of Purchased Shares which the Company (or its nominee(s)) has elected to purchase, the Company (or its
nominee(s)) shall purchase the remaining Purchased Shares elected to be purchased from the other holder(s) of Purchased Shares under this Agreement, pro rata according to the number of Purchased Shares held by such other holder(s) at the time of
delivery of such Repurchase Notice (determined as nearly as practicable to the nearest share). 
 (d) The closing of the purchase of the
Purchased Shares pursuant to the Repurchase Option shall take place on the date designated by the Company (or its nominee(s)) in the Repurchase Notice, which date shall not be more than one (1) month nor less than five (5) days after the
delivery of such notice (the “Repurchase Date”). The Company may, at its option, pay for the Purchased Shares to be purchased pursuant to the Repurchase Option either (i) in one lump sum payment by delivery of a check or wire transfer
on the Repurchase Date in an amount equal to the 

  

 5 

 
Repurchase Price, or (ii) by delivery on the Repurchase Date of (A) a check or wire transfer in an amount equal to the sum of the aggregate
original cost of the Purchased Shares to be repurchased, in any event not exceeding in the aggregate the Repurchase Price (the “Cash Repurchase Payment”), and (B) a promissory note of the Company in a principal amount equal to the
Repurchase Price minus the Cash Repurchase Payment, bearing interest at the rate of nine percent (9%) per annum non-compounded commencing on the Repurchase Date and providing for payment of the principal amount, plus accrued interest, in twelve
(12) installments on the last day of each calendar month for the next twelve (12) months following the Repurchase Date. In addition, the Company may pay the Repurchase Price for such shares by offsetting amounts outstanding under any bona
fide debts owed by Optionee to the Company. The Company (or its nominee(s)) will be entitled to receive customary representations and warranties from the sellers regarding such sale and to require all sellers’ signatures be guaranteed.

 (e) Notwithstanding anything to the contrary contained in this Agreement, all repurchases of Purchased Shares by the Company shall be
subject to applicable restrictions contained in the Delaware General Corporation Law and in the Company’s and its subsidiaries’ debt and equity financing agreements. If any such restrictions prohibit the repurchase of Purchased Shares
hereunder which the Company has otherwise elected to make, the Company may make such repurchases as soon as it is permitted to do so under such restrictions; provided, however, that, notwithstanding such restrictions, the Company shall deliver the
Repurchase Notice as provided in paragraph 10(c) above, and shall remain bound by the terms of such Repurchase Notice until such time as the Purchased Shares are actually purchased by the Company pursuant to such notice. 
 (f) For purposes of this Section 10, the Fair Market Value will be the fair value of the Common Stock determined in good faith by the Board.

 (g) The rights provided the Company under this Section 10 shall terminate upon the closing of an underwritten public offering of
shares of the Company’s Common Stock pursuant to an effective registration statement under the Securities Act. 
 11.
Adjustments Upon Changes in Capital Structure. In the event that the outstanding shares of Common Stock of the Company are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of a recapitalization, stock split, combination of shares, reclassification, stock dividend or other change in the capital structure of the Company, then appropriate adjustment shall be made by the Administrator
to the number of Shares subject to the unexercised portion of this Option and to the Exercise Price per share, in order to preserve, as nearly as practical, but not to increase, the benefits of the Optionee under this Option, in accordance with the
provisions of Section 4.2 of the Plan. 
 12. Mergers and Other Reorganizations. In the event that the Company at
any time proposes to enter into any transaction approved by the Board to sell substantially all of its assets or merge or consolidate with any other entity as a result of which either the Company is not the surviving corporation or the Company is
the surviving corporation and the ownership of the voting power of the Company’s capital stock changes by more than 50% as a result of such transaction, or in the event of a “Recommended Share Purchase Offer” (as defined below), this
Option shall terminate upon the effective date of such transaction unless provision is made in writing in connection with such transaction for the continuance or assumption of this Option or the substitution for this Option of a new option of
comparable value covering shares of a successor corporation, with appropriate 

  

 6 

 
adjustments as to the number and kind of shares and the Exercise Price, in which event this Option or the new option substituted therefor shall continue in
the manner and under the terms so provided. If such provision is not made in such transaction, then the Administrator shall cause written notice of the proposed transaction to be given to Optionee not less than ten (10) days prior to the
anticipated effective date of the proposed transaction, and the Optionee shall have the right to exercise the Option in respect to any or all of the vested and unvested Shares immediately prior to the consummation of such transaction. For purposes
of this Section 12, a “Recommended Share Purchase Offer” shall be a transaction in which an offer is made to purchase outstanding securities of the Company constituting more than 50% of the voting power of the Company’s capital
stock, which offer is recommended to the Company’s securityholders by the Company’s Board. 
 13. No Employment
Contract Created. Neither the granting of this Option nor the exercise hereof shall be construed as granting to the Optionee any right with respect to continuance of employment by the Company or any of its subsidiaries. The right of
the Company or any of its subsidiaries to terminate at will the Optionee’s employment at any time (whether by dismissal, discharge or otherwise), with or without cause, is specifically reserved, subject to any other written employment agreement
to which the Company and Optionee may be a party.  
 14. Rights as Shareholder. The Optionee (or
transferee of this option by will or by the laws of descent and distribution) shall have no rights as a shareholder with respect to any Shares covered by this Option until the date of the issuance of a stock certificate or certificates to him or her
for such Shares, notwithstanding the exercise of this Option.  
 15. “Market Stand-Off” Agreement.
Optionee agrees that, if requested by the Company or the managing underwriter of any proposed public offering of the Company’s securities, Optionee will not sell or otherwise transfer or dispose of any Shares held by Optionee without the prior
written consent of the Company or such underwriter, as the case may be, during such period of time, not to exceed 180 days following the effective date of the registration statement filed by the Company with respect to such offering, as the Company
or the underwriter may specify. 
 16. Interpretation. This Option is granted pursuant to the terms of the Plan,
and shall in all respects be interpreted in accordance therewith. The Administrator shall interpret and construe this Option and the Plan, and any action, decision, interpretation or determination made in good faith by the Administrator shall be
final and binding on the Company and the Optionee. As used in this Agreement, the term “Administrator” shall refer to the committee of the Board of Directors of the Company appointed to administer the Plan, and if no such committee has
been appointed, the term Administrator shall mean the Board of Directors.  
 17. Notices. Any notice,
demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed given when delivered personally or three (3) days after being deposited in the United States mail, as certified or registered mail,
with postage prepaid, and addressed, if to the Company, at its principal place of business, Attention: the Chief Financial Officer, and if to the Optionee, at Optionee’s most recent address as shown in the employment or stock records of the
Company.  
 18. Annual and Other Periodic Reports. During the term of this Agreement, the Company will
furnish to the Optionee copies of all annual and other periodic financial and informational reports that the Company distributes generally to its shareholders.  
  

 7 

 19. Severability. Should any provision or portion of this Agreement be held
to be unenforceable or invalid for any reason, the remaining provisions and portions of this Agreement shall be unaffected by such holding.  
 20. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be deemed one instrument.  
 21. California Corporate Securities Law. The sale of the shares that are the subject of this Agreement has not been qualified
with the Commissioner of Corporations of the State of California and the issuance of such shares or the payment or receipt of any part of the consideration therefor prior to such qualification is unlawful, unless the sale of such shares is exempt
from such qualification by Section 25100, 25102 or 25105 of the California Corporate Securities Law of 1968, as amended. The rights of all parties to this Agreement are expressly conditioned upon such qualification being obtained, unless the
sale is so exempt.  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

							
	THEROX, INCORPORATED	 		 	OPTIONEE
				
	By:	 	  
	 		 	  

		 	 Kevin T. Larkin
 Chief Executive
Officer
	 		 	Name

  

 8Form of Restricted Stock Agreement under 1995 Stock Incentive Plan

 Exhibit 10.4 
 1995-SPA-         
 THEROX, INCORPORATED

 STOCK PURCHASE AGREEMENT 
 This Stock Purchase Agreement (the “Agreement”) is entered into as of             ,         , by and between TherOx,
Incorporated, a Delaware corporation (the “Company”), and                      (the “Purchaser”) pursuant to the
Company’s 1995 Stock Incentive Plan (the “Plan”). 
 R E C I T A L S: 
 A. Purchaser is an officer of the Company and is eligible to purchase shares of the Company’s Common Stock under the Plan. 
 B. The Company desires to sell to Purchaser, and Purchaser desires to purchase from the Company, shares of the Company’s Common Stock under the Plan
on the terms, provisions and conditions, and subject to restrictions and agreements, hereinafter provided. 
 C. Concurrently herewith,
Purchaser will execute a promissory note (the “Note”) in favor of the Company and Purchaser and the Company will enter into a Stock Pledge Agreement (the “Stock Pledge Agreement”) securing payment of such Note. 
 NOW, THEREFORE, for good and value consideration, the parties agree as follows: 
 1. Purchase of Shares.  
 (a) The Company hereby sells to Purchaser, and Purchaser hereby purchases,          shares of the Company’s Common Stock (the “Shares”). The purchase price for the Shares is
$0.     per share, or an aggregate purchase price of $            . The purchase price is payable by check in the amount of
$            , representing payment of the par value of the Shares as required under Delaware law, and the Note in the amount of
$             secured by a pledge of the Shares, receipt of which is hereby acknowledged. 
 (b) The certificates representing the Shares hereunder shall be held in escrow by the Secretary of the Company as provided in Section 11 hereof. 
 2. Stockholder Rights. Until such time as the Company actually exercises its repurchase rights under this Agreement, if ever,
Purchaser (or any successor in interest) shall have all the rights of a stockholder (including voting rights) with respect to the Shares, including the Shares held in escrow under Section 11, subject, however, to the transfer restrictions of
Section 6. 

 3. Vesting of Shares. 
 The Shares shall vest in twenty-four equal cumulative monthly installments of one-forty-eighths
(1/48th) of each share, commencing on             ,
        , and continuing until             ,         , when all of the Shares issued
hereunder shall be fully vested. 
 Additionally, in the event that the Company at any time proposes to enter into any transaction approved
by the board of directors to sell substantially all of its assets or merge or consolidate with any other entity as a result of which either the Company is not the surviving corporation or the Company is the surviving corporation and the ownership of
the voting power of the Company’s capital stock changes by more than 50% as a result of such transaction, or in the event of a “Recommended Share Purchase Offer” (as defined below), all Shares shall vest immediately prior to the
effective date of such transaction. For the purposes of this Section 3, a “Recommended Share Purchase Offer” shall be a transaction in which an offer is made to purchase outstanding securities of the Company constituting more than 50%
of the voting power of the Company’s capital stock, which offer is recommended to the Company’s securityholders by the Company’s board of directors. 
 All Shares which have not become Vested Shares are hereinafter sometimes referred to as “Nonvested Shares.” As used herein, the term “Continuous Service” means (i) employment by either the
Company or any parent or subsidiary corporation of the Company, which is uninterrupted except for vacations, illness, or leaves of absence which are approved in writing by the Company or any of such other employer corporations, if applicable,
(ii) service as a member of the board of directors of the Company, or (iii) so long as Purchaser is engaged as a consultant or service provider to the Company or other corporation referred to in clause (i) above. 
 4. Repurchase of Nonvested Shares. 
 (a) At such time as Purchaser’s Continuous Service ceases for any reason, including death (hereinafter an “Event of Resale”), then, in such event, the Company shall have the option (but not the
obligation) to purchase (hereinafter the “Nonvested Shares Repurchase Option”) from Purchaser or Purchaser’s successors or personal representatives, as the case may be, all or any part of the Nonvested Shares. 
 (b) The purchase price for the Nonvested Shares shall be the price paid by Purchaser for such Nonvested Shares, $.__ per share, plus simple interest
thereon at the rate of 6% per annum for the period from the date hereof through the date the Company elects to purchase the Nonvested Shares. The purchase price shall be paid in a lump sum at the time the election is made. 
 (c) For 120 days after the occurrence of the Event of Resale, the Company shall have the right to exercise the Nonvested Shares Repurchase Option by
giving to Purchaser written notice of such exercise, specifying the number of Nonvested Shares to be repurchased by the Company and the aggregate purchase price thereof. Such notice shall be accompanied by the Company’s check. Concurrently
therewith, the Company shall receive from escrow certificates evidencing the Nonvested Shares and shall cancel such number of Nonvested Shares purchased hereunder in accordance with Section 11(c). 
  

 2 

 (d) The Nonvested Shares Repurchase Option shall terminate with respect to any Nonvested Shares for which
it is not timely exercised under Section 4(c). 
 (e) No fractional shares shall be repurchased by the Company. Accordingly, should the
Nonvested Shares Repurchase Option extend to a fractional share at the time Purchaser’s Continuous Service ceases, then such fractional share shall be added to any fractional share in which Purchaser is at such time vested in order to make one
whole vested share no longer subject to the Nonvested Shares Repurchase Option. 
 5. Right of First Refusal.

 (a) The Shares acquired by Purchaser may be sold only in compliance with the provisions of this Section 5, and subject in all cases to
compliance with the provisions of Section 7 hereof. Prior to any intended sale, Purchaser shall first give written notice (the “Offer Notice”) to the Company specifying (i) Purchaser’s bona fide intention to sell or
otherwise transfer such Shares, (ii) the name and address of the proposed purchaser(s), (iii) the number of Shares Purchaser proposes to sell (the “Offered Shares”), (iv) the price for which Purchaser proposes to sell the
Offered Shares, and (v) all other material terms and conditions of the proposed sale. Notwithstanding anything in this Agreement to the contrary, Nonvested Shares may not be sold, transferred, assigned, pledged, or otherwise disposed of,
directly or indirectly. 
 (b) Within 30 days after receipt of the Offer Notice, the Company or its nominee(s) may elect to purchase all or
any portion of the Offered Shares at the price and on the terms and conditions set forth in the Offer Notice by delivery of written notice (the “Acceptance Notice”) to Purchaser specifying the number of Offered Shares that the Company or
its nominees elect to purchase. Within 15 days after delivery of the Acceptance Notice to Purchaser, the Company and/or its nominee(s) shall deliver a check (or, at the discretion of the Company, such other form of consideration set forth in the
Offer Notice) in the amount of the purchase price of the Offered Shares to be purchased pursuant to this Section 5, against delivery by Purchaser of a certificate or certificates representing the Offered Shares to be purchased, duly endorsed
for transfer to the Company or such nominee(s), as the case may be. If the Company and/or its nominee(s) do not elect to purchase all of the Offered Shares, Purchaser shall be entitled to sell the balance of the Offered Shares to the purchaser(s)
named in the Offer Notice at the price specified in the Offer Notice or at a higher price and on the terms and conditions set forth in the Offer Notice, provided, however, that such sale or other transfer must be consummated within 60 days from the
date of the Offer Notice and any proposed sale after such 60-day period may be made only by again complying with the procedures set forth in this Section 5. 
 (c) Purchaser may transfer all or any portion of the Shares to a trust established for Purchaser’s sole benefit and/or Purchaser’s spouse or children without such transfer being subject to the right of first
refusal set forth in this Section 5, provided that the Shares so transferred shall remain subject to the terms and conditions of this Agreement and no further transfer of such Shares may be made without complying with the provisions of this
Section 5. 
  

 3 

 (d) Any successor of Purchaser, and any transferee of the Shares pursuant to this Section 5, shall
hold the Shares subject to the terms and conditions of this Agreement and no further transfer of the Shares may be made without complying with the provisions of this Section 5. 
 (e) All stock certificates evidencing the Shares shall be imprinted with a legend substantially as follows: 
 “THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS AGAINST TRANSFER, INCLUDING A RIGHT OF FIRST REFUSAL IN
FAVOR OF THE COMPANY, AS SET FORTH IN A STOCK PURCHASE AGREEMENT DATED             ,         . TRANSFER OF THESE SHARES MAY BE MADE
ONLY IN COMPLIANCE WITH THE PROVISIONS OF SAID AGREEMENT, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.” 
 (f) The
rights provided the Company and its nominee(s) under this Section 5 shall terminate upon the closing of an underwritten public offering of shares of the Company’s Common Stock pursuant to an effective registration statement under the
Securities Act. 
 6. Recapitalizations, Exchanges, Etc. The provisions of this Agreement shall apply to the full extent
set forth herein with respect to any and all shares of capital stock of the Company or successor of the Company which may be issued in respect of, in exchange for, or in substitution for the Shares by reason of any stock dividend, split, reverse
split, combination, recapitalization, reclassification, merger, consolidation or otherwise which does not terminate this Agreement. Except as otherwise provided herein, this Agreement is not intended to confer upon any other person except the
parties hereto any rights or remedies hereunder. 
 7. Investment Representations and Warranties. 
 (a) Purchaser represents and warrants that the Shares are being acquired for personal account, for investment purposes only, and not with a view to the
distribution, resale or other disposition thereof. 
 (b) Purchaser acknowledges that the Company is issuing the Shares without registering
such Shares under the Securities Act on the basis of certain exemptions from such registration requirement. Accordingly, concurrently herewith, Purchaser is delivering to the Company an Investment Letter on which the Company is relying for purposes
of such issuance. 
 8. Restrictive Legends. Purchaser hereby acknowledges that federal securities laws and the
securities laws of the state in which Purchaser resides may require the placement of certain restrictive legends upon the Shares issued, and Purchaser hereby consents to the placing of such legends on certificates evidencing the Shares as the
Company or its counsel deems advisable. 
  

 4 

 9. Section 83(b) Election. Purchaser understands that under Section 83 of
the Internal Revenue Code of 1986, as amended (the “Code”), the excess of the fair market value of the Shares on the date any forfeiture restrictions applicable to such Shares lapse over the purchase price paid for such Shares will be
reportable as ordinary income at that time. For this purpose, the term “forfeiture restrictions” includes the right of the company to repurchase the Shares pursuant to Section 4 of this Agreement. Purchaser understands, however, that
Purchaser may elect to be taxed at the time the Shares are acquired hereunder, rather than when and as such Shares cease to be subject to such forfeiture restrictions, by filing an election under Section 83(b) of the Code with the Internal
Revenue Service within thirty (30) days after the date of this Agreement. Even if the fair market value of the Shares at the date of this Agreement equals the purchase price paid (and thus no tax is payable), the election must be made to avoid
adverse tax consequences in the future. 
 Purchaser understands that failure to make this filing within the thirty (30) day period will result in the
recognition of ordinary income by Purchaser as the forfeiture restrictions lapse. PURCHASER ACKNOWLEDGES THAT IT IS PURCHASER’S SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b), EVEN IF PURCHASER
REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS BEHALF. 
 10. Escrow For the Shares. 

(a) Upon issuance, the certificates for the Shares shall be deposited in escrow with the Company to be held in accordance with the provisions of this
Section 10. Each deposited certificate shall be accompanied by a duly executed stock transfer power executed in blank. The deposited certificates, together with any other assets or securities from time to time deposited with the Company
pursuant to the requirements of this Agreement, shall remain in escrow until such time or times as the certificates (or other assets and securities) are to be released or otherwise surrendered for cancellation in accordance with Section 10(c)
below. 
 (b) Any cash dividends on the Shares (or other securities at the time held in escrow) shall be paid directly to Purchaser and shall
not be held in escrow. However, in the event of any stock dividend, stock split, recapitalization, or other change affecting the Company’s outstanding Common Stock as a class effected without receipt of consideration, any new, substituted, or
additional securities or other property which is by reason of such event distributed with respect to the Shares shall be immediately delivered to the Company to be held in escrow under this Section 10, but only to the extent the Shares are at
the time subject to the escrow requirements of Section 10(a). 
 (c) The Shares, together with any other assets or securities held in
escrow hereunder, shall be subject to the following terms and conditions relating to their release from escrow or their surrender to the Company for repurchase and cancellation: 
 (i) Should the Company (or its assignees) elect to exercise the Nonvested Shares Repurchase Option under Section 4 with respect to any Nonvested
Shares, then the escrowed certificates for such Nonvested Shares (together with any other assets or securities issued with respect thereto) shall be delivered to the Company for cancellation, concurrently with the payment to Purchaser, in cash or
cash equivalent (including the cancellation of any purchase-money indebtedness), of an amount equal to the aggregate purchase price for such Nonvested Shares, and Purchaser shall cease to have any further rights or claims with respect to such
Nonvested Shares (or other assets or securities). 
  

 5 

 (ii) Prior to the full repayment of the Note, as the interest of Purchaser in the Shares (or any other
assets or securities issued with respect thereto) vests in accordance with the provisions of this Section 10, the certificates for such Vested Shares (as well as all other vested assets and securities) shall be remain in escrow. 
 (iii) Subsequent to the full repayment of the Note, as the interest of Purchaser in the Shares (or any other assets or securities issued with respect
thereto) vests in accordance with the provisions of this Section 10, the certificates for such Vested Shares (as well as all other vested assets and securities) shall be released from escrow and delivered to the Purchaser upon the request of
Purchaser, but in no event more frequently than semi-annually. 
 (iv) All Shares (or other assets or securities) released from escrow in
accordance with the provisions of Section 10(c)(iii) above shall nevertheless remain subject to (A) the Company’s right of first refusal under Section 5, and (B) the market stand-off provisions of Section 12 until such
provisions terminate in accordance therewith. 
 11. No Employment Contract Created. The issuance of the Shares shall
not be construed as granting to Purchaser any right with respect to continuance of employment or engagement by the Company or any of its subsidiaries. The right of the Company or any of its subsidiaries to terminate at will Purchaser’s
employment at any time (whether by dismissal, discharge or otherwise), with or without cause, is specifically reserved, subject to any other written employment agreement to which the Company and Purchaser may be a party. 
 12. “Market Stand-Off” Agreement. Purchaser agrees that, if requested by the Company or the managing underwriter of any
proposed public offering of the Company’s securities, Purchaser will not sell or otherwise transfer or dispose of any Shares without the prior written consent of the Company or such underwriter, as the case may be, during such period of time,
not to exceed 180 days following the effective date of the registration statement filed by the Company with respect to such offering, as the Company or the underwriter may specify. 
 13. Interpretation. The Shares are being issued pursuant to the terms of the Plan, and shall in all respects be interpreted in
accordance therewith. The Administrator shall interpret and construe this Agreement and the Plan, and any action, decision, interpretation or determination made in good faith by the Administrator shall be final and binding on the Company and
Purchaser. As used in this Agreement, the term “Administrator” shall refer to the committee of the Board appointed to administer the Plan, and if no such committee has been appointed, the term Administrator shall mean the Board.

  

 6 

 14. Notices. Any notice, demand or request required or permitted to be given under
this Agreement shall be in writing and shall be deemed given when delivered personally or three days after being deposited in the United States mail, as certified or registered mail, with postage prepaid, and addressed, if to the Company, at its
principal place of business, Attention: the Chief Financial Officer, and if to Purchaser, at the most recent address as shown in the employment or stock records of the Company. 
 15. Severability. Should any provision or portion of this Agreement be held to be unenforceable or invalid for any reason, the
remaining provisions and portions of this Agreement shall be unaffected by such holding. 
 16. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be deemed one instrument. 
 17. Binding Agreement. Upon acceptance of this Agreement, this Agreement shall become a Stock Purchase Agreement, within the meaning of the Plan, and binding on Purchaser and the Company. This
Agreement shall inure to and be binding on the heirs, successors and assigns of both Purchaser and the Company. 
  

			
	THEROX, INCORPORATED
		
	By:	 	  

	Its:	 	  

 I hereby accept the foregoing offer and by this acceptance I agree to purchase
         shares of Common Stock of TherOx, Incorporated on all of the terms and conditions set forth hereinabove. My address of record is
                                        ,
and my Social Security No. is         . 
  

	
	“PURCHASER”
	
	  

  

 7 

 SPOUSE’S CONSENT TO AGREEMENT 
 I acknowledge that I have read the Stock Purchase Agreement (the “Agreement”) by and between TherOx, Incorporated (the “Company”) and
                     concerning the Common Stock of the Company, and that I know its contents. I am aware that my spouse has agreed therein to
the imposition of certain repurchase options and restrictions on transferability, including rights of first refusal, with respect to the Shares the subject of the Agreement, including with respect to my community interest therein, if any, on the
occurrence of certain events described in the Agreement. I hereby consent to and approve of the provisions of the Agreement, and agree that I will abide by the Agreement and bequeath any interest in the Shares which represents a community interest
of mine to my spouse or to a trust subject to my spouse’s control or for my spouse’s benefit or the benefit of our children if I predecease him. 
  

							
	Dated:                     	 		 	  

				
		 		 	Print Name:	 	  

 INVESTMENT LETTER 
 TherOx, Incorporated 
 2400 Michelson Drive 
 Irvine, California 92612-1310 
 Gentlemen: 
 1. (a) In connection with the acquisition of          shares of the Common Stock of TherOx, Incorporated, a Delaware corporation (the “Company”), by the
undersigned, the undersigned represents that the shares which the undersigned is acquiring are being acquired for investment and not with a view to the sale or distribution of any part thereof, and that the undersigned has no present intent of
selling or otherwise distributing the same. 
 You have advised the undersigned that the shares have not been registered under the
Securities Act of 1933 (the “Act”), as the offering of the shares is to be effected pursuant to an exemption from the registration provisions of such Act, and, in this connection, you are relying in part on the representations of the
undersigned set forth herein. 
 Without in any way limiting the representations set forth above, the undersigned further agrees in no event
to make any disposition of all or any part of said shares unless and until (i) the undersigned shall have notified you of the proposed disposition; (ii) the undersigned shall have furnished you with an opinion of counsel to the effect that
such disposition will not require registration of such shares under the Act; and (iii) such opinion of counsel shall have been concurred in by the Company’s counsel and the Company shall have advised you of such concurrence. 
 (b) The undersigned acknowledges receipt of all such information as the undersigned deems necessary and appropriate to enable the undersigned to evaluate
the financial risk inherent in acquiring said shares and acknowledges receipt of satisfactory and complete information covering the business and financial condition of the Company, including the opportunity to obtain information regarding the
Company’s financial status, in response to all inquiries in respect thereof. 
 2. The undersigned understands and agrees that the
certificate evidencing said shares will bear the following legend: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933; THEY HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT AS MAY BE AUTHORIZED UNDER THE SECURITIES ACT OF 1933, AND THE RULES AND
REGULATIONS PROMULGATED THEREUNDER. 
 3. (a) The undersigned recognizes that said shares are unregistered and must be held indefinitely
unless they are subsequently registered under the Act or an exemption from such registration is available, and further recognizes that you are under no obligation to register said shares or to comply with any exemption from such registration.

 (b) The undersigned understands that Rule 144 under the Act does not presently apply and may never apply
to the Company’s securities because the Company does not now, and may never, file reports required by the Securities Exchange Act of 1934, as amended (“Exchange Act”), and has not made, and may never make, publicly available the
information required by Rule 15c2-11 of the Exchange Act. Furthermore, if Rule 144 were available, the undersigned understands that sales of securities made in reliance thereof could be made only in certain limited amounts, after certain holding
periods and only when there was available specified current public information, all in accordance with the terms and conditions of said Rule. The undersigned understands that, in the case of securities to which said Rule is not applicable,
compliance with some other exemption under the Act will be required. 
 4. The undersigned acknowledges and represents that (i) the
undersigned has a preexisting personal or business relationship with the Company and with certain of the Company’s officers and directors, and (ii) the undersigned has the business and financial experience necessary to evaluate this
investment. 
  

							
	Dated:             ,

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]